Chongqing Changan Automobile Company Limited
2020 Semi-annual Report
August 2020
Chapter 1 Important Notice, Contents, and Definitions
The Board of Directors, the Board of Supervisors, Directors, Supervisors and Senior Executivesof the company hereby guarantee that no false or misleading statement or major omission was madeto the materials in this report and that they will assume all the responsibilities, individually andjointly, for the trueness, accuracy and completeness of the contents of this report.All the directors attended the board meeting for reviewing the semi-annual report.For the first half of 2020, the Company has no plans of cash dividend, no bonus shares and noshare converted from capital reserve.The Chairman of the Board Zhu Huarong, the Chief Financial Officer Zhang Deyong and theresponsible person of the accounting institution (Accountant in charge) Chen Jianfeng herebydeclare that the Financial Statements enclosed in this annual report are true, accurate and complete.The prospective description regarding future business plan and development strategy in thisreport does not constitute virtual commitment. The investors shall pay attention to the risk.The report shall be presented in both Chinese and English, and should there be any conflictingunderstanding of the text, the Chinese version shall prevail.
CONTENTS
Chapter 1 Important Notice, Contents, and Definitions ...... 1
Chapter 2 Company Profile & Main Financial Indexes ...... 4
Chapter 3 Analysis of Main Business ...... 8
Chapter 4 Business Discussion and Analysis ...... 10
Chapter 5 Important Matters ...... 22
Chapter 6 Changes in the shareholding of the company and shareholders ...... 31
Chapter 7 Information about Directors, Supervisors, Senior Management ...... 36
Chapter 8 Corporate Bonds ...... 37
Chapter 9 The Financial Statements ...... 38
Chapter 10 Documents for Future Reference ...... 159
Definitions
Items | Definitions | |
Changan Auto., the Company | Refers to | Chongqing Changan Automobile Company Limited |
South Industries | Refers to | China South Industries Group Co., Ltd., the Company’s actual controller |
China Changan | Refers to | China Changan Automobile Group Co., Ltd., old name: China South Industries automobile Co., Ltd., a subsidiary company of South Industries |
Changan Industry | Refers to | Chongqing Changan Industry (Group) Co., Ltd., old name: Changan Automobile (Group) Co., Ltd., a subsidiary company of South Industries |
Nanjing Changan | Refers to | Nanjing Changan Automobile Co., Ltd., a subsidiary company of the Company |
Hebei Changan | Refers to | Hebei Changan Automobile Co., Ltd., a subsidiary company of the Company |
Hefei Changan | Refers to | Hefei Changan Automobile Co., Ltd., a subsidiary company of the Company |
Changan Bus | Refers to | Baoding Changan Bus Co., Ltd., a subsidiary company of the Company |
International Company | Refers to | Chongqing Changan Automobile International Sale Service Co., Ltd., a subsidiary company of the Company |
Changan Suzuki | Refers to | Chongqing Changan Suzuki Automobile Co., Ltd., a subsidiary company of the Company |
Changan Ford | Refers to | Changan Ford Automobile Co., Ltd., a JV of the Company |
Changan Mazda | Refers to | Changan Mazda Automobile Co., Ltd., a JV of the Company |
CME | Refers to | Changan Mazda Engine Co., Ltd., a JV of the Company |
Jiangling Holding | Refers to | Jiangling Holding Co., Ltd., an associate of the Company |
Changan Finance | Refers to | Changan Automobile Finacing Co., Ltd., an associate of the Company |
South Industries Finance | Refers to | China South Industries Group Finance Co., Ltd., a subsidiary company of South Industries |
UPI | Refers to | United Prosperity (Hong Kong)Investment Co., Ltd., a subsidiary company of China Changan |
Hafei Group | Refers to | Harbin Hafei Automobile Industry Group Co., Ltd., a subsidiary company of China Changan |
CMAL | Refers to | Chongqing Changan Minsheng APLL Logistics Co., Ltd., an associate of China Changan |
Chapter 2 Company Profile & Main Financial IndexesI. Basic Information
Stock abbreviation | Changan Automobile 、Changan B | Stock Code | 000625、200625 |
Listed on | Shenzhen Stock Exchange | ||
Company in Chinese name | 重庆长安汽车股份有限公司 | ||
Company abbreviation in Chinese name | 长安汽车 | ||
Company name in English | Chongqing Changan Automobile Company Limited | ||
Legal representative | Zhu Huarong |
II. Contact Information
Secretary of the Board of Directors | Securities affairs representative | |
Name | Li Jun | |
Contact address | No. 260, East Jianxin Road, Jiangbei District, Chongqing | |
Telephone | 023-67594008 | |
Fax | 023-67866055 | |
E-mail address | cazqc@changan.com.cn |
III. Others
1. Way of contact
Whether registration address, office address and its post code as well as website and email of the Company changed in thereporting period or not
□ Applicable √ Not applicable
The registration address, office address and post code as well as website and email of the Company did not change in thereporting period. See more details in Annual Report 2019.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, the website for the publishment of the semi-annual report appointed byCSRC and the preparation place for semi-annual report did not change in the reporting period. See more details in Annual Report2019.
3. Other relevant information
Whether other relevant information changed in the reporting period or not
□ Applicable √ Not applicable
IV. Summary of Accounting Data and Financial IndexesDoes the company conduct the retrospective adjustment or restatement over previous years accounting data due to changes ofaccounting policies or accounting errors?
□ Yes √ No
Report period | Same period of last year | Increase/decrease y-o-y (%) | |
Operating revenue (Yuan) | 32,781,657,479.10 | 29,875,780,096.84 | 9.73% |
Net profit belonging to shareholders of the listed company (Yuan) | 2,602,166,402.68 | -2,240,039,761.11 | 216.17% |
Net profit belonging to shareholders of the listed company after deduction of non-recurring profit and loss (Yuan) | -2,616,888,301.47 | -2,911,767,596.44 | 10.13% |
Net cash flow arising from operating activities (Yuan) | 6,912,586,693.60 | 4,220,263,630.95 | 63.80% |
Basic earnings per share (Yuan/Share) | 0.54 | -0.47 | 215.28% |
Diluted earnings per share (Yuan/Share) | Not applicable | Not applicable | Not applicable |
Return on equity (ROE) (%) | 5.74% | -4.97% | Up 10.71 points |
Report period | Same period of last year | Increase/decrease y-o-y (%) | |
Total assets (RMB) | 102,801,758,302.93 | 97,617,053,590.38 | 5.31% |
the listed company(RMB) | 46,668,569,340.78 | 44,028,312,743.66 | 6.00% |
V. The differences between domestic and international accounting standards
1. Simultaneously pursuant to both Chinese accounting standards and international accounting standardsdisclosed in the financial reports of differences in net income and net assets.
□ Applicable √ Not applicable
No difference
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas andChinese accounting standards.
□ Applicable √ Not applicable
No difference
3. Explanation of the differences in accounting data under domestic and overseas accounting standards
□ Applicable √ Not applicable
VI. Non-recurring items and amounts
√ Applicable □ Not applicable
In RMB Yuan
Item | Amount | Illustration |
Non-recurring items and amounts(including accrued reversal assets impairment part) | 3,547,727,244.56 | |
Government subsidies included in the profit and loss of the current period (Except closely related to business operations, in accordance with the national unified standard quota or quantitative enjoyment of government subsidies) | 215,977,955.28 | |
Current net profit from beginning to combined date of business combination under common control | ||
In addition to the effective hedging business related to the normal business of the company, the gains and losses from changes in fair value arising from the holding of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities, and disposal of transactional financial assets, derivative finance Investment income from assets, trading financial liabilities, derivative financial liabilities and other debt investments | 1,753,674,697.00 | |
Gains and losses from entrusted loans | 6,884,080.21 | |
Other non-business income and expenditures other than the above items | -20,172,785.69 | |
Interest on deferred payment of funds received by non-financial enterprises | 21,549,119.75 | |
Subtract: Influenced amount of income tax | 293,310,943.88 | |
Influenced amount of miniority shareholders’ equity (after tax) | 13,274,663.08 | |
Total | 5,219,054,704.15 | -- |
According to “Public offering of securities information disclosure of the company's information disclosure announcement No. 1 –non-recurring gains and losses” defined non-recurring items ,and“Public offering of securities information disclosure of thecompany's information disclosure announcement No. 1 - non-recurring gains and losses”The items, defined as recurring items, arelisted in the announcement No. 1 and shall be explained.
□ Applicable √ Not applicable
The company in the reporting period does not base on the definition and listing of “Public offering of securities informationdisclosure of the company's information disclosure announcement No. 1 – non-recurring gains and losses” about non-recurring gainsand losses to define a case of recurring profit or loss.
Chapter 3 Analysis of Main BusinessI. The main business of the Company in the reporting period
Does the Company need to comply with the disclosure requirements of special industry
□ Yes √ No
During the reporting period, the company's main business is the R&D, manufacturing and sale of cars, the R&D and productionof automobile engine products. Besides, the company integrates advantageous resources to actively develop travel services, newretail and carry out multi-dimensional industrial layout.Changan automobile always adheres to the mission of "leading the car civilization for the benefit of human life", and theconcept of "energy conservation, environmental protection, scientific and technological intelligence", vigorously develops newenergy and smart cars, guides the automobile civilization by the use of scientific and technological innovation, and providescustomers with high quality products and services. After years of development, the company's vehicle segment mainly includesChangan Passenger car, Changan Oushang, Changan Kaicheng, and joint ventures/joint companies Changan Ford and ChanganMazda. Up to now, the company has successfully launched a series of classic brands such as CS series, Eado series, UNI sequence,Oushang series and Shenqi Series; a series of famous JV products such as all new Focus, Escort, Escape, Edge, Explorer, Corsair,Axela, CX-5, CX-8, CX-30 and so on. At the same time, we have launched new energy vehicles such as CS55 E-Rock, Eado EV,new Benben EV and CS15EV, which are admired by the market and loved by the consumers.
II. Major changes in assets
1. Major changes in assets
No significant changes in major assets during the reporting period
2. Main Overseas Assets
□ Applicable √ Not applicable
III. Core Competence AnalysisThe Company sticks to the principle of innovation and technology-led development, and the Company has built up aworld-class R&D capability, backed by the industry-leading Global R&D system. With the creation of classic products as its core, theCompany accelerated the "Beidou Tianshu" and "Shangrila" projects to transform into smart travel technology company. As the coreof the intelligent strategy, the global software center of Chang'an automobile is located in Xiantao Data Valley. The center isdedicated to building the largest, world-leading, autonomous, safe and controllable software technology and mobile intelligentplatform in China. The company has 16 fields including vibration and noise, collision safety, braking performance, chassis test, drivesystem, 194 international advanced laboratories and the world's leading data center with cloud technology. As of June 2020, a total of14,411 patent applications have been filed at home and abroad, including 4,449 for invention patents.
Continue to build classic products. The first new car UNI-T from Passenger car high-end product series "UNI" was officiallylaunched; the sales number of Eado PLUS amounted to more than 10,000 three months in a row; the 2020 new CS75, Benben E-star,Keshang EV and other models were successfully launched. The Chang'an Oushang X5 was officially unveiled, and the first prototypeof the 2.0 T vertical engine was successfully fired. CS55 pure electric version was launched in July, the NEDC range was up to 605
km with the fast charge up to 30% ~ 80% in 35 minutes. The sales number of CS75 Plus came to more than 150,000 units since itslaunch of last September, overtaking many joint-venture brands and leading the pack in the same category.Innovative Technology accelerates. The L3 class autopilot uses UNI-T to achieve the first domestic mass production, including40 km/h under the congestion of automatic driving function and 40 km/h above high-speed automatic driving auxiliary function,freeing hands, feet and eyes; blue whale power platform NE15 with UNI-T, fuel consumption as low as 6.3 l/100km, comparable tothe first-class joint venture brand. "PM0.1" composite anti-bacterial and anti-toxic high-efficiency filter passed the CertificationCenter "CATARC CN95" certification issued by China Automotive Technology Research Center, carrying with the Eado PLUS.Ultraviolet lamp sterilization system was carried with UNI-T debut. Breakthroughs have been made in such advanced technologies asload distribution and structural optimization of carbon fiber body, integrated design of carbon fiber body and aluminum alloy frame,connection technology of various lightweight materials, etc. , to achieve carbon fiber, aluminum alloy and other lightweight materialsintegrated applications.The brand is poised to rise. The group business brands develop separately, and the revision consummates the group brandmanagement principle, and two business brands positioning of Oushang and the Kaicheng is conducted; the Company formulates thegoal and the policy for the passenger brand upward, advances the key match weight to fall on the ground, achieves the continuousinnovation in brand communication forms, conducts the planning live events, builds the direct links with customers, achieves doublegrowth in traffic and value, and accelerates the brand image upgrade; the Company optimizes the public opinion monitoring andmaintenance system, continues to build design, intelligence, service, power, health and other positive public opinion label image, andraises the brand attention steadily.
Chapter 4 Business Discussion and Analysis
I. OverviewAt the beginning of the New Year in 2020, the sudden spread of the new coronavirus epidemic in China and many countriesaround the world has not only brought about a "grey Rhinoceros" in China's economy, but also a shock to the global economy, thatshut down global economic activity and disrupted normal social life. China's auto industry has been on a downward trend in recentyears, the epidemic situation further exacerbated the decline of the auto market, and the normal operation of the entire industrialchain. The sales number of auto industry came to 3.672 million vehicles in the first quarter of 2020, down 42.4 % from the sameperiod of last year.In the face of the epidemic, under the strong leadership of the Central Committee of the Communist Party of China withComrade Xi Jinping at its core, the Chinese people have worked together with one heart and one mind to overcome difficulties andgiven full play to the advantages of the socialist system with Chinese characteristics, to rally the troops against the epidemic. Withthe joint efforts of the whole country and the broad masses of the people, the situation of epidemic prevention and control throughoutthe country has continued to improve, and the situation of accelerating the restoration of order in production and life has continued toconsolidate and expand. The car market has also gradually shaken off the impact of the epidemic and began to gradually pick up. Inthe first half of 2020, China's auto market recorded cumulative production and sales of 10.112 million vehicles and 10.257 millionvehicles respectively, down 16.8 percent and 16.9 percent respectively from the same period of last year. Passenger car sales fell by
22.4% to 7.873 million units, with passenger car sales down by 26.0% and SUV sales down by 14.9%. The production and salesnumber of new energy passenger cars amounted to 267,000, down by 40.8% from the same period of last year. The outbreak has alsoaccelerated the reshuffle of the industry, with sales of 9.139 million vehicles by the top 10 groups in the first half of the year, downby 16.5% from the same period of last year, a slightly smaller decline than the industry and accounting for 89.1% of total vehiclesales, 0.4 percentage points higher than a year earlier. (The above data from China automobile industry production and MarketingNews by China Automobile Industry Association and its industry information release)
In the first half of 2020, in the face of the sudden new coronavirus epidemic situation, the company took solid steps to preventand control the epidemic situation, and quickly organized the resumption of work and production, ensuring that both the epidemicsituation prevention and control and the production and operation work moved forward in a strong and orderly manner. In the firsthalf of 2020, the company effectively seized the opportunity of market recovery after the outbreak of the disease. The total salesreached 831,000 units, a year-on-year increase of 1.3%, ranking the fifth in the Chinese automobile industry in terms of sales volume.During the reporting period, the main work is as follows:
1. Fully guard against the new coronavirus epidemic, "pull, grab, force" to fully promote the resumption of work andproduction,
In the face of the epidemic, the Company resolutely implemented the decisions and plans of the Party Central Committee,regarded the disease prevention and control as a priority task, established the emergency work leading group for the first time,clarified the responsibilities and working mechanisms for epidemic prevention and control, provided comprehensive guidance forspecific work such as epidemic prevention and control, supplies, security, and resumption of work and production, and ensured therapid implementation of various measures. While firmly winning the battle of preventing and controlling the epidemic, the Companyhas always put the safety and health of its workers and staff at the top of its agenda, and has made full use of various channels tospread knowledge of epidemic prevention to its employees, arranged a special person to collect the health condition of each unitevery day and sent several batches of emergency materials to each unit, and set up a mask production line to ensure the safety of theemployees.
In order to effectively ensure the resumption of work and production, the Company quickly responded to production demand,coordinated production materials, and carried forward three major actions (supporting suppliers to resume work, seizing inventory
materials, and rationalizing logistics and transportation) , implement the three key points (key areas, key materials, key risksuppliers) , set up 10 major resource coordination groups, seize resources, pull inventory, spare materials, and fully coordinate thesupply of materials. In the National Epidemic Prevention and control situation, the Company promoted the entire industrial chainback to work through "pull, grab, force", and achieved a year-on-year outperformance of the industry, 303,000 units sold in the firstquarter with year-on-year decline less than the industry; In the first half of 2020, sales volume of the Company increased by 1.5%year-on-year, which showed a good momentum of development.
2. Strengthen the implementation of the strategy, and steadily advance the reform and adjustmentThe Company fully advanced the "third pioneering plan for Innovation and entrepreneurship" , focus on the strategic main lineof "strengthening the main business, steadily transforming, expanding the market, building the ecology, and grasping the guarantee" ,focus on "customer-oriented, firmly reform, innovative marketing, ultimate efficiency" , focus on the implementation of key work toensure the strategic landing. Major reform projects have made steady progress, completing the reform of Chang'an Oushang andKaicheng. The Company will actively promote organizational change, complete organizational changes such as the Liangjiangfactory, and carry out functional adjustments. The Company will set up software and technology companies and other organizations,and constantly push for the implementation of "small headquarters+ enterprise clusters + shared platforms + incubation centers." TheCompany will push forward the reform of the talent pool, continue to optimize the personnel structure, make solid progress inmatching talents and posts, and make the talent pool more stable.
3. Adhere to the bottom line thinking, and improve the quality of operation
While fighting the new coronavirus epidemic, the Company continued to make overall efforts to improve the quality ofoperation based on the "16 words" policy. The work of "increasing revenue, reducing cost, cutting expenditure, controllinginvestment, lowering storage, financing, cashing out and reforming" has been thoroughly carried out. The average price ofautonomous brand cars has been continuously raised, and significant results have been achieved in reducing costs and expenditures,and the scale of aged vehicles has been reduced significantly, and the overall quality of operations has picked up in an orderlymanner. In the face of the impact of the epidemic on the entire industry, the Company has followed the general strategy of "fastcontraction, save expenditure, scramble resources, sustainable, change direction, build ecology, stabilize the team and ensure safety"based on the general idea of "resource protection, group heating, steady cost reduction", the strategy of cost reduction is steadilyintroduced to enhance the company's plan reserve to deal with market changes. The Company will continue to push forward theaction plan of "fast contraction and low expenditure", and continue to reduce manufacturing costs and interim costs. The Companyformulated the short, medium and long-term supply guarantee program to effectively deal with the risk of supply guarantee. TheCompany further strengthened the lean labor, increased the level of personnel between the bases, reduced human resources waste,and saved recruitment and labor costs.
4. The remarkable effect of the product structure adjustment, the innovative dissemination pushing up the brand
The new products performed well in the market one after another, the pre-sale order of Eado PLUS for 16 days breaks tenthousand and its sales breaks ten thousand for three months in a row since the official launch by the online direct broadcast on March
27. The first new car UNI-T from the new high-end product series of "UNI" officially launched, and the pre-sale order for 32 daysexceeded more than 16,000; as a future technology mass producer, UNI-T endowed with a new design language, a new intelligentvehicle system, a new blue whale power, a new platform architecture, "four new" blessing for consumers to bring unprecedentedcontrol quality. Lincoln adventurer smoothly took off the line, which fully reflected the determination of Lincoln brand deeply rootedin the Chinese market. Changan Ford has launched a large, high-end flagship SUV, dubbed as the new sixth-generation FordExplorer, the first in the $400,000 series to adopt a new generation of luxury performance longitudinal rear-drive layout and set anew standard in the market segment.
Innovative brand communication will promote the battlefield from offline to online, and the passenger cars build the onlinecommunication of "Chang'an live studio", and have the direct access to the new generation of consumers; the live coverage of UNI-Tdebut broadcast across 38 regions around the world, Eado PLUS "cloud listing" becomes a counter-trend explosion. Through the"thermal imaging anti-epidemic vehicle" public events, the first car brand pro-poor live broadcast events with goods and other events,
the Company aimed to build a good brand image. UNI-T achieved the new crowd expansion, face-to-face joint venture brandcompetition, its new product design and technology concept to further strengthen the brand positioning of Chang'an passenger car,"Technology Chang'an, smart partner".
5. Accelerating the implementation of the "Beidou Tianshu" and "shangri-la" programs, and the application ofinnovative technologies
The Company advanced the "Beidou Tianshu" and "Shangri-la" programs; "intelligent cockpit domain control system" has beenselected by the Ministry of Industry and Information Technology (miit) as one of the "new generation of key tasks for artificialintelligence industry innovation"; The Company held the event with the L3 production system, and UNI-T can easily handle all kindsof road conditions under the condition of public open road, which proves the strength of Chang'an's L3 self-driving technology. Thecore of the intelligent strategy of "Beidou Tianshu" ——global software center has been set up in Xiantao Data Valley, dedicated tobuilding the largest software technology and mobile intelligent platform in China. With NEDC's 301 km long range and 30 minutesDC fast charging speed, Benben E-star has truly freed users from range anxiety and charging anxiety; the first pure electric car with acarbon fiber body has come off the line smoothly, which marks the important achievement of the new energy vehicle project, and thenational key research and development plan of the 13th five-year plan undertaken by the Company, and the successful ignition of thefirst prototype of the Chang'an blue whale 2.0 t longitudinal engine at the Global R & D Center, further speeding up the use of bluewhale power in light vehicles.
To speed up the application of innovative technologies to the ground, CS75 PLUS conducted a parade in densely populatedareas with an AI intelligent thermal imaging temperature measurement system, and covered more than 10,000 people for six days;the "PM0.1" grade composite anti-bacterial and anti-toxic high-efficiency air-conditioning filter with Eado PLUS listed on themarket, with plasma generator, custom fresh air system and other configurations to achieve better than the "N95 mask" level ofprotection; UV sterilization system with UNI-T debut helped to defend the epidemic through science and technology. Core ProductCS75PLUS acquired 6 outstanding (G) results in "Zhongbaoyan" collision test, showing strong safety strength.
6. Strengthen the marketing, and enhance the customer experience
The Company strengthened the marketing, and the overall trend of the Company business continues to improve. The Chang'anpassenger car brands bucked the trend, with 308,000 units sold in the first half, up by 1.2% year-on-year, while the sales volume andprices of Oushang both rose with 72,000 units, up by 7.7% on the year-on-year basis and an average unit price increase of more than20%. Key products have performed admirably with the CS75 series breaking 20,000 and the Eado PLUS breaking 10,000 for threemonths in a row. In the first half of the year, the CS35 PLUS ranked first in the segment of the autonomous small SUV market(retail) . In June, the wholesale of Eado PLUS amounted to more than 16,000 vehicles, retail number ranking first among Chinesebrands of the Compact car. The Company continued to promote the quality and efficiency of marketing channels, maintain the scaleof traditional channels, exhibit the new retail channels through the full scene layout, and continue to expand the coverage. Oushangautomobile continued to promote the process of producing passenger cars with the significant increase of the proportion withYunying standard product, and the average price increased significantly, and the channel coverage continued to increase. In the newenergy area, the Company launched the country's first "car to the countryside", and stimulated the rural areas of new energy carconsumption.
Focus on the improvement of customer experience, build customer service system, improve customer satisfaction; resolutelyimplement the "double project" in products, customers, and marketing and other resources. Strong focus on customer service TOPproblem solving, and customer satisfaction indicators continue to improve. The first 5G + Ar Remote Service Center was set up inChina to solve the problems of vehicle owners and service stations by 5G + AR technology, and provide users with the ultimateservice experience. Driven by user demand as the origin of the product refresh, and the main core product design two-year renovation,the Company ensured the user's voice feedback to the full development process to achieve a solid foundation for the launch ofUNI-T, and PLUS series.
7. The joint venture has risen to the challenge and steadily improved its quality of operation
The joint ventures continued to deepen communication and exchanges with its partners around key projects such as Lincoln's
and electric vehicles. The company has also steadfastly advanced the "revitalization plan" of Chang'an Ford, with 97,000 units sold inthe first half of 2020, up by 29.7% year-on-year. Ford Edge, Lincoln Adventurer, Ford Explorer and many other brand-new modelswere listed on the market. Among them, the Lincoln adventurer has months of better than expected end retail sales. Changan Mazdacontinued to implement product planning and conducted the on-line and off-line linkage of the new product CX-30 with the audienceof more than 60 million people; Changan Mazda continued to pay close attention to improving the quality of business, cost reductionand efficiency.
8. Actively fulfill the social responsibility of listed companies and exhibit the responsibility of the state-owned enterpriseWhile doing a good job in the prevention and control of the epidemic, the Company also jumped into the front line of theepidemic and worked together with the people of the whole country to tide over the difficulties and help each other, and activelyfulfilled corporate social responsibility. During the outbreak, the Company and its affiliated enterprises donated 10 million yuan tofully support the epidemic prevention and control work, and over 10,000 party members donated 1.22 million yuan. The Companystarted the production of ambulances, and delivered more than 1500 negative pressure ambulances. The Chang 'an new energytechnology enterprise joined hands with T3 travel and Chelai travel to provide free commuting, official and emergency mission travelservices for medical staff. The Company also took the advantage of the Global Research and Development Center Network "sixcountries and nine places" as well as overseas bases to actively purchase anti-epidemic masks and protective clothing, and timelyoffered the assistance to the domestic anti-epidemic front. In order to protect the rights and interests of customers, the Company takesthe initiative to provide care and protection to customers from two aspects: Vehicle Care and humanistic care. The service includesdelay of maintenance, pick-up and delivery of vehicles, national road rescue, epidemic situation care reminder, vehicle maintenancereminder and other intimate services.
II. Analysis of Main Business
1. Overview
Are they identical with those disclosed in the "I. Overview" in the Chapter of Business Discussion and Analysis?
√ Yes □ No
Please refer to the content of "I. Overview" in the Chapter of Business Discussion and Analysis.
2. Y-o-y changes of main financial data
In RMB Yuan
Current period | Same period of last year(restated) | Y-o-y increase/decrease | Reasons for changes | |
Operating revenue | 32,781,657,479.10 | 29,875,780,096.84 | 9.73% | |
Operating cost | 29,734,615,697.63 | 27,419,410,626.92 | 8.44% | |
Operating expenses | 1,270,717,082.07 | 1,443,216,541.30 | -11.95% | |
General and administrative expenses | 1,164,152,772.91 | 843,160,552.62 | 38.07% | Mainly due to changes in organization and prepaid wages |
R&D expenses | 1,464,554,423.42 | 1,720,159,658.88 | -14.86% |
Financial expenses | -98,053,545.38 | -96,832,709.15 | -1.26% | |
Income tax expense | 189,931,296.64 | 116,567,696.08 | 62.94% | Mainly due to changes in the fair value of transactional financial assets leading to an increase in deferred income tax liabilities |
Subtotal of cash inflow from operating activities | 6,912,586,693.60 | 4,220,263,630.95 | 63.80% | Mainly due to the significant decrease in "cash paid for purchasing goods and receiving labor services" compared with the previous year |
Subtotal of cash inflow from investment activities | -1,252,707,158.77 | -3,684,509,162.66 | 66.00% | Mainly because the "cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets" and "cash paid for investment" decreased compared with the previous year |
Subtotal of cash inflow from financing activity | 1,809,378,548.18 | -65,487,944.32 | 2862.92% | Mainly due to the increase in "cash received from borrowings" compared with the previous year |
Net increase in cash and cash equivalents | 7,460,644,506.35 | 499,453,398.49 | 1393.76% | Mainly due to the net cash inflow from operating activities and financing activities during the current period |
Major changes on profit composition or profit resources in reporting period
√ Applicable □ Not applicable
The company's profit during the reporting period was greatly affected by non-recurring gains and losses. For details, please refer toChapter 2 " VI. Non-recurring items and amounts" in this report.
3. Composition of Main Business
In RMB Yuan
Operating revenue | Operating cost | Gross profit | Increase or decrease of operating revenue y-o-y | Increase or decrease of operating cost y-o-y | Increase or decrease of gross profit y-o-y | |
According to industries | ||||||
Production | 32,781,657,479.10 | 29,734,615,697.63 | 9.29% | 9.73% | 8.44% | Up 1.07% |
According to products | ||||||
Vehicles | 32,049,653,469.63 | 28,965,284,746.97 | 9.62% | 7.50% | 5.97% | Up 1.30% |
According to region | ||||||
China | 31,119,150,931.79 | 28,129,352,859.96 | 9.61% | 9.51% | 8.27% | Up 1.03% |
III. Analysis of non principal business
□ Applicable √ Not applicable
IV. Assets and liability
1. The significant changes of the assets and liability
In RMB Yuan
Item | Current period | Same period of last year | decrease (%) | YoY change (%) | ||
Amount | Ratio in total assets(%) | Amount | Ratio in total assets(%) | |||
Monetary capital | 17,326,421,237.43 | 16.85% | 10,066,171,353.48 | 10.31% | 6.54% | Mainly due to the net cash inflow from operating activities and financing activities during the current period |
Accounts receivable | 2,299,982,425.41 | 2.24% | 838,314,076.82 | 0.86% | 1.38% | Mainly due to the changes in the scope of consolidation in the current period, the accounts receivable in the original consolidation scope were turned into accounts receivable outside the consolidation scope |
Inventory | 4,040,392,469.99 | 3.93% | 3,375,441,488.37 | 3.46% | 0.47% | |
Investment property | 6,989,493.94 | 0.01% | 7,102,849.72 | 0.01% | 0.00% | |
Long-term equity investment | 12,808,010,205.56 | 12.46% | 11,008,336,989.09 | 11.28% | 1.18% | |
Fixed assets | 25,896,056,062.39 | 25.19% | 26,939,490,554.19 | 27.60% | -2.41% | |
Construction in progress | 1,793,015,326.03 | 1.74% | 1,729,803,028.43 | 1.77% | -0.03% | |
Short-term loan | 365,525,472.30 | 0.36% | 229,580,000.00 | 0.24% | 0.12% | Due to new loans from the company's subsidiaries |
Long-term loan | 1,555,300,000.00 | 1.51% | 55,300,000.00 | 0.06% | 1.46% | Due to the company's new special loan this year |
2. Assets and liabilities measured by fair value
√ Applicable □ Not applicable
In RMB Yuan
Item | Amount at year beginning | Profit and loss from changes in fair value in the current period | Accumulated fair value changes included in equity | Impairment provisions in the reporting period | Amount purchased in the current period | Amount sold in the current period | Amount at year end |
Financial assets | |||||||
Transactional financial assets | 2,419,476,200.00 | 1,753,674,697.00 | 4,173,150,897.00 | ||||
Equity instrument investment | 734,506,100.00 | 734,506,100.00 | |||||
Subtotal of financial assets | 3,153,982,300.00 | 1,753,674,697.00 | 4,907,656,997.00 | ||||
Others | |||||||
Total | 3,153,982,300.00 | 1,753,674,697.00 | 4,907,656,997.00 | ||||
Financial liabilities | - | - | - | - | - | - |
Whether the measurement attributes of main assets in the reporting period have significantly changed
□ Yes √ No
3. Property rights limits by the end of report period
In RMB Yuan
Item | book value at the end of this year | Limited Reason |
Monetary fund | 505,302,056.19 | Mainly acceptance bond |
Notes receivable | 6,153,373,909.00 | Pledge for issuing bills payable |
Intangible assets | 17,870,990.16 | Bank mortgage |
Fixed assets | 23,577,247.06 | Collateral to obtain working capital |
Total | 6,700,124,202.41 |
V. Analysis of Investment
1. General information
√ Applicable □ Not applicable
External investment | ||
Investment Amount in the report period(Yuan) | Investment Amount in the same period of last year(Yuan) | Variance rate |
2,290,000,000 | 1,800,000,000 | 27.22% |
Particulars of investees | ||
Company Name | Principal business | Proportion in the investees’ equity (% |
Zhongqi Chuangzhi Technology Co., Ltd. | General projects: technical services, technology development, technical consultation, technical exchanges, technology transfer, technology promotion; industrial design services; software development; industrial automatic control system device manufacturing; industrial automatic control system device sales; mechanical parts and components sales; electric power Sales of electronic components; sales of electronic products; research and development of auto parts; retail of auto parts; wholesale of auto parts; sales of new energy vehicle production and testing equipment; sales of new energy vehicles; motor vehicle modification services; integrated circuit manufacturing; electronic components Device manufacturing; engineering and technical research and experimental development; electrical signal equipment manufacturing; sales of new catalytic materials and additives; research and development of electronic special materials; battery sales; battery manufacturing (except for items subject to approval according to law, independent of business license Carry out business activities) | 3.125% |
Chongqing Changan Kaicheng Automobile Technology Co., Ltd. | General items: new automobile sales, automobile parts wholesale, automobile parts and accessories manufacturing, new energy automobile sales, new energy automobile electrical accessories sales, automobile parts research and development, technical services, technical development, technical consultation, technical exchanges, Technology transfer, technology | 83.64% |
Note: The above are investment projects approved by the board of directors during the reporting period. For specific information,please refer to the "Announcement on Related Party Transactions of T3 Technology Platform Companies" (Announcement Number:
2020-06) and "Announcement on Resolutions of the First Meeting of the Eighth Board of Directors" (Announcement Number:
2020-56).
2. Major equity investment in the reporting period
□ Applicable √ Not applicable
3. Major non-equity investment in the reporting period
Please refer to Notes 7 Item 13 “Construction in progress” in the Financial Statement.
4. Investment of Financial Assets
(1)Equity-holdings in financial enterprises
√ Applicable □ Not applicable
promotion, engineering and technology research and experimentaldevelopment, software development, information consulting services (notincluding licensing information consulting services), mold manufacturing,mold sales, domestic cargo transportation agency, energy saving managementservices, energy recovery system research and development, New energyprime mover equipment manufacturing, emerging energy technology researchand development, Internet sales (except for the sale of commodities thatrequire licenses), old automobile sales, automobile spare parts retail, motorvehicle repair and maintenance (except for items subject to legal approval,business operations License to carry out business activities independentlyaccording to law)Securitiesvariety
Securities variety | Securities code | Securities short name | Initial investment cost(Yuan) | Number of shares held at the beginning of the period(Share) | Percentage of shares held at the beginning of the period | Number of shares held at the end of the period(Share) | Percentage of shares held at the end of the period | (Yuan) | (Yuan) | Accounting account | Source of shares |
Stock | 600369 | Southwest Securities | 50,000,000 | 35,500,000 | 0.63% | 35,500,000 | 0.63% | 162,945,000 | -18,459,709.66 | Transactional financial assets | Initial investment |
Stock | 300750 | CATL | 1,000,000,821 | 22,999,575 | 1.06% | 22,999,575 | 1.04% | 4,010,205,897 | 1,780,037,549.74 | Transactional financial assets | Initial investment |
Total | 1,050,000,821 | 58,499,575 | -- | 58,499,575 | -- | 4,173,150,897 | 1,761,577,840.08 | -- | -- |
(2) Derivative Investments
□ Applicable √ Not applicable
5. Use of raised funds
□ Applicable √ Not applicable
VI. Selling of major assets and major equity
1. Selling of major assets
□ Applicable √ Not applicable
There is no selling of major assets.
2. Selling of Equity
√ Applicable □Not applicable
On December 3, 2019, Chongqing Changan New Energy Vehicle Technology Co., Ltd. (hereinafter referred to as "new energytechnology company"), a wholly-owned subsidiary of Changan Automobile, introduced four strategic investors. After the capitalincrease is completed, the company's share of the new energy technology company's equity has dropped from 100% to 48.9546%,losing control of the new energy technology company. For details, please refer to the “Announcement on the Public InvestmentIncrease of the Wholly-owned Subsidiary Subsidiary Company and the Company’s Abandonment of Priority Subscription of CapitalContributions to Capital Increase and Capital Increase” ( Announcement number: 2019-67). On January 13, 2020, the matter wasreviewed and approved by the first extraordinary general meeting of shareholders in 2020 (Announcement No. 2020-04). On January20, 2020, new energy technology company completed the industrial and commercial change registration. For details, please refer tothe "Announcement on the Progress of the Wholly-owned Subsidiary Subsidiary's Capital Increase by Public Listing and theCompany's Abandonment of Capital Increase and Share Priority Subscription of Investment Rights" (Announcement Number :
2020-04).
On December 30, 2019, Changan Automobile and Shenzhen Qianhai Ruizhi Investment Co., Ltd. (hereinafter referred to as"Qianhai Ruizhi") signed the "Equity Transfer Agreement" and transferred all the 50% equity of Changan PSA to Qianhai Ruizhi. Fordetails, please refer to the "Announcement on the Sale of Equity Interests in Joint Ventures" (Announcement No. 2020-02). OnJanuary 13, 2020, the matter was reviewed and approved by the first extraordinary general meeting of shareholders in 2020(Announcement No. 2020-04). On May 21, 2020, the company completed the industrial and commercial change registration. Fordetails, please refer to the "Announcement on the Progress of the Sale of Equity in Joint Ventures" (Announcement Number:
2020-42).VII. Analysis of main holding companies and equity companies
√ Applicable □ Not applicable
Basic information of main subsidiary companies and shareholding companies which have an impact on over 10% of net profits
Unit: Ten Thousand Yuan
Name | Registered capital | Equity held | Main businesses | Total assets | Main operating income | Net profit |
Zhenjiang Demao Hairun Equity Investment Fund Partnership (Limited | 150,001 | 100% | Engaged in non-securities equity investment activities and | 401,021 | 0 | 151,379 |
Partnership) | related consulting business | |||||
Changan Mazda Automobile Co. Ltd | 11,097USD | 50% | Produce and sell auto and parts | 1,257,352 | 694,057 | 65,911 |
Changan Ford Automobile Co., Ltd | 24,100USD | 50% | Produce and sell auto and parts | 4,721,117 | 1,650,111 | -114,048 |
Subsidiaries acquired and sold in the reporting period
√ Applicable □ Not applicable
During the reporting period, Changan Automobile established a wholly-owned subsidiary, Chongqing Changan AutomobileSoftware Technology Co., Ltd., and acquired Changan Weilai New Energy Automobile Technology Co., Ltd., and the two companieswere included in the scope of the consolidated statement. Chongqing Changan New Energy Automobile Technology Co., Ltd.introduced strategic investors. The company lost control and its shareholding ratio was reduced to 48.96%. It was no longer includedin the scope of consolidation, and subsequent measurement was carried out according to the equity method.
Name | Acquisition and disposal of subsidiaries during the reporting period | On the overall production and operation and performance impact |
Chongqing Changan Automobile Software Technology Co., Ltd. | Newly established | No major influence |
Changan Weilai New Energy Automobile Technology Co., Ltd. | Business combination not under common control | No major influence |
Chongqing Changan New Energy Automobile Technology Co., Ltd. | Dilution of equity and loss of control | Major influence |
VIII. Structural main business under the company control
□ Applicable √ Not applicable
IX. Forecast for the operating performance of Jan.-Sep. 2020
The accumulated net profit forecast for the beginning of the year to the end of the next reporting period may be a loss or a warningand explanation of a significant change compared with the same period of the previous year
□ Applicable √ Not applicable
X. Possible risks and coresponding measuresThe overseas epidemic situation continues to spread with the emergence of the long tail effect, and the epidemic is still difficultto control effectively before the vaccine is released on a large scale. It is expected that by the middle of next year, the prevention andcontrol of the epidemic situation in major global economies and economic repair will become normal, economic growth is stillstruggling to return to normal levels before the outbreak. Combined with the intensification of international trade disputes, theChina's exports and imports will be faced with a significant negative impact. The global economy will shrink by more than 5% thisyear, according to projections by the IMF and other international groups, and China's economy will grow only modestly. At present,with the economy facing downward pressure and increasing uncertainties in the external environment, residents' consumerconfidence is obviously insufficient, while the short-term demand for automobiles, as an optional consumption, is obviouslyrestrained. The decline in the auto market led to the company's current operating pressure.
Countermeasures: On the one hand, the company will continue to increase market expansion efforts, reduce the impact ofexternal factors to the minimum, maintain the basic stability of business scale, on the other hand, strengthen the sense of hardship,continue to carry out internal potential, improve quality, reduce costs, increase efficiency, improve the quality and efficiency ofbusiness operations to ensure the achievement of strategic objectives.XI. Interviews and visits in the reporting period
√ Applicable □ Not applicable
Date | Manner | Object | Content discussed and material offered |
2020.01.14 | On-Site Survey | Institution | For details, see the January 16, 2020 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: January 14, 2020 investor relations activities record sheet |
2020.01.21 | On-Site Survey | Institution | For details, see the January 21, 2020 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: January 21, 2020 investor relations activities record sheet |
2020.04.30 | "Panorama·Roadshow World" Webcast | All investors | For details, see the May 6, 2020 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: April 30, 2020 investor relations activities record sheet |
2020.05.07 | On-Site Survey | Institution | For details, see the May 9, 2020 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: May 7, 2020 investor relations activities record sheet |
2020.05.08 | On-Site Survey | Institution | For details, see the May 9, 2020 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: May 8, 2020 investor relations activities record sheet |
2020.05.12 | On-Site Survey | Institution | For details, see the May 14, 2020 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: May 12, 2020 investor relations activities record sheet(1) |
2020.05.12 | On-Site Survey | Institution | For details, see the May 14, 2020 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: May 12, 2020 investor relations activities record sheet(2) |
2020.06.24 | On-Site Survey | Institution | For details, see the June 28, 2020 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: June 24, 2020 investor relations activities record sheet |
Chapter 5 Important Matters
I. Annual shareholders meeting and interim shareholders meeting during the reportingperiod
1. Shareholders meeting during the reporting period
Meeting Session | Type | Investors' participation ratio | Holding Date | Disclosure Date | Disclosure Index |
2020 The First Interim Shareholders Meeting | Interim | 44.572% | January 13, 2020 | January 14, 2020 | 2020 The First Interim Shareholders Meeting Resolution Announcement(Announcement Number: 2020-04) |
2019 Annual Shareholders Meeting | Annual | 59.488% | May 22, 2020 | May 23, 2020 | 2019 Annual Shareholders Meeting Resolution Announcement(Announcement Number: 2020-44) |
2020 The Second Interim Shareholders Meeting | Interim | 46.695% | June 22, 2020 | June 23, 2020 | 2020 The Second Interim Shareholders Meeting Resolution Announcement(Announcement Number: 2020-55) |
2. Preferred shareholders’ request to hold the interim shareholders meeting with restoration of votingrights
□ Applicable √ Non-applicable
II. Preplan for Company common stock profit distribution and capital reserves convertinginto share capital in the reporting period
□ Applicable √ Non-applicable
The company plans not to distribute cash dividends, not to send bonus shares, not to increase equity by provident fund in the first halfof the year.
III. Commitments finished in implementation by the Company, shareholders, actualcontroller,acquirer, directors, supervisors, senior executives or other related parties inthe reporting period and commitments unfinished in implementation at the end of thereporting period
□ Applicable √ Non-applicable
IV. The appointment and dismissal of accounting firmsIs the semi-annual financial report audited?
□ Yes √ No
V. The board of directors, and supervisors explaining the "non standard audit report" fromthe accounting firm during the reporting period
□ Applicable √ Not-applicable
VI. The board of directors explaining the "non standard audit report" of last year
□ Applicable √ Not-applicable
VII. Bankruptcy restructuring related matters
□ Applicable √ Not-applicable
During the report period, no matters related to bankruptcy restructuring occur.VIII. Crucial litigation events
Crucial litigation and arbitration events
□ Applicable √ Not-applicable
During the report period, the company has no crucial litigation or arbitration events.Other litigation events
□ Applicable √ Not-applicable
IX. Punishment and rectification
□ Applicable √ Not-applicable
During the reporting period, there’s no punishment and rectification.
X. The integrity of company and its controlling shareholder, actual controller
□ Applicable √ Not-applicable
XI. Company equity incentive plan, the implementation of the employee stock ownership planor other staff incentives.
√ Applicable □ Not-applicable
On April 28, 2020, the 65th meeting of the seventh board of directors of Chongqing Changan Automobile Co., Ltd. deliberatedand approved the "Proposal on Cancellation of Certain Stock Options of the Company", and planned to cancel 8.81 million stockoptions. For details, please refer to "Announcement on the Cancellation of Part of the Company’s Stock Options" (AnnouncementNumber: 2020-31) disclosed by the company on April 30. On June 4, 2020, the company disclosed the "Announcement onCompletion of Cancellation of Stock Options" (Announcement Number: 2020-46). According to relevant regulations, the companyhas completed the cancellation of stock options in China Securities Depository and Clearing Co., Ltd. Shenzhen Branch.XII. Significant related party transactions
1. Related transactions related to day-to-day operation
For details, please refer to Note 12 "Related Party Relationships and Transactions" in the Financial Statements.
2. Assets or equity acquisition, sales related transactions
√ Applicable □ Not-applicable
For details, please refer to Note 12 "Related Party Relationships and Transactions" in the Financial Statements.
3. Related transactions of common investment
√ Applicable □ Not-applicable
On January 17, 2020, Changan Automobile signed an agreement with China First Automobile Co., Ltd., Dongfeng Motor GroupCo., Ltd., China North Industries Group Co., Ltd., and Nanjing Jiangning Economic Development Technology Development Co., Ltd.to jointly initiate the establishment of China Automobile Chuangzhi Technology Co., Ltd., with a registered capital of 16 billion yuan,of which Changan Automobile invested 500 million yuan, holding 3.125% of the shares. For details, please refer to the"Announcement on Related Party Transactions of T3 Technology Platform Companies" (Announcement No.: 2020-06).
4. Related rights and debt relations
√ Applicable □ Not-applicable
For details, please refer to Note 12 "Related Party Relationships and Transactions" in the Financial Statements.Whether there is any non-business related credits and debts
□ Applicable √ Not-applicable
There is no non-operating associated credits and debts during the reporting period.
5. Other significant related transactions
√ applicable □ not applicable
Related queries in disclosure website of temporary announcement of related transactions
XIII. The non-operating occupation for the capital by the controlling shareholder of the listedcompany and its related parties
□ Applicable √ Not-applicable
XIV. Major contract and its performance
1. Trusteeship, contracting, leasing matters
(1) Trusteeship
□ Applicable √ Not-applicable
Information about TrusteeshipThere is no Trusteeship during the reporting period.
(2) Contracting
□ Applicable √ Not-applicable
Information about contractingThere is no contracting during the reporting period.
(3) Leasing
√ Applicable □ Not-applicable
Information about leasingRelated party rental situation can be found in the note 12 of financial statements 4 (3) related party relationships and transactions.Projects whose profit and loss to the company during the reporting period is more than 10% of total profits
□ Applicable √ Not-applicable
Projects whose profit and loss to the company during the reporting period can’t be more than 10% of total profits
2. Major guarantee
□ Applicable √ Not-applicable
There’s no major guarantee during the report period.
Name of temporary announcements | Temporary announcement date | Temporary announcement site name |
Announcement on related party transactions regarding the subscription of non-publicly issued A shares by related parties | April 28, 2020 | http://www.cninfo.com.cn |
Announcement about increasing estimated amount of 2020 daily related transaction | April 30, 2020 | http://www.cninfo.com.cn |
Announcement on related party transactions concerning the extension of entrusted loans to Jiangling Holdings for one year | June 23, 2020 | http://www.cninfo.com.cn |
3. Other major contract
□ Applicable √ Not-applicable
There’s no other major contract during the reporting period.XV. Social responsibility
1. Significant environmental protection
Whether the listed companies and their subsidiaries belong to the key pollutant discharge units announced by the environmentalprotection department
√ Yes □ No
Basic status
Changan Automobile mainly produces engines and automobiles. The main pollutants are chemical oxygen demand, ammonianitrogen, total nickel, toluene, xylene and non-methane hydrocarbon, etc. Wastewater mainly comes from pre-treatment wastewater,paint spray wastewater and oily wastewater from engine manufacturing machines. The wastewater is discharged to the urban sewagepipe network after physical and biochemical treatment at the wastewater treatment station of each production base, and discharged tothe standard after being treated by the urban sewage treatment plant. The exhaust gas is mainly paint spraying waste gas and ovenwaste gas. The paint spraying waste gas is concentrated by adsorption and incineration, and the waste gas from the oven is dischargedafter incineration. Sulfur dioxide and nitrogen oxides mainly come from the exhaust gas from the combustion of clean energy naturalgas, and they are all discharged in an organized manner. The company's headquarters and branch companies have a soundenvironmental management system, all of which have passed tripartite audits and obtained environmental management systemcertification.Pollution discharge informationDuring the reporting period, there were 412 pollutant outlets and 17 water pollutant outlets. The emission standards were strictlyimplemented according to the national sewage comprehensive discharge standard, the water pollutant discharge standard in Beijing,the national standard for the comprehensive emission of air pollutants, the standard for the emission of air pollutants on the surface ofautomobile manufacturing in Chongqing, the standard for the comprehensive emission of air pollutants, and the vehicleManufacturing industry (painting process) air pollutant emission standard in Beijing, national industrial enterprise boundaryenvironmental noise emission standard and so on. The total emission of major pollutants: 641.11 tons of chemical oxygen, 58.33 tonsof ammonia nitrogen, 26.98 tons of sulfur dioxide, 163.45 tons of nitrogen oxides and quantitative volatile organic compounds2245.02 tons. All the pollutants in the company are discharged, and there is no excess total emission.Solid wastes are separately collected and stored. Main dangerous wastes are wastewater and sludge treatment, paint slag,phosphated residue and waste solvent, etc. The units with hazardous waste business qualification are entrusted to dispose hazardouswastes. The general industrial solid wastes and household garbage are disposed by the units with qualification according to therequirement of the local government. The waste electrical and electronic products are disassembled by the units with qualificationand are safely disposed by the units with hazardous waste business qualification. During the reporting period, we entrusted thedisposal of 3,500 tons of hazardous waste and the use of 42,300 tons of general industrial solid waste.Construction and operation of pollution prevention facilitiesDuring the reporting period, the main waste gas prevention and control facilities include foundry dust removal anddeodorization facilities in engine factories, welding dust removal facilities in vehicle factories and treatment facilities for coatingvolatile organic waste gas; together with wastewater treatment facilities, they are included in preventive maintenance management ofequipment, with account books, operation instructions, preventive maintenance rules, preventive maintenance plans and
implementation records, and equipment inspection, dosing, slag removal, filter bag replacement, etc. The facilities are runningnormally. The key pollutant discharge units are all equipped with automatic wastewater monitoring facilities and entrusted thetripartite company to operate and maintain the facilities.Administrative licensing of environmental impact assessment and other environmental protection for construction projectsIn accordance with the "Environmental Impact Assessment Law of the People's Republic of China", "Construction ProjectEnvironmental Protection Management Regulations", "Chongqing Municipal Environmental Protection Regulations", "InterimMeasures for Environmental Protection Acceptance of Construction Projects" and other laws and regulations, the company developsenvironmental impacts of new, renovated and expanded projects Evaluation and completion of environmental protection acceptancework, strictly implement the environmental impact assessment system and the "three simultaneous" system.
During the reporting period, we have obtained the solid waste acceptance approval of the global R&D center project and theNE1 phase I project, and completed the environmental protection acceptance of the construction project.Emergency preparedness and exercise of emergency environmental eventsContinue to carry out environmental protection emergency drills to improve the emergency response capabilities ofenvironmental emergencies. During the reporting period, all bases had environmental risk assessment reports and emergencyresponse plans for environmental emergencies. The Mould Division, General Automobile Research Institute and Power ResearchInstitute of Chongqing headquarters are revising emergency plans for environmental emergencies. All bases formulate emergencydrill plans in accordance with the requirements of laws and regulations, and carry out emergency drills according to the plan tocontinuously improve the practicability of emergency plans and the emergency response capabilities of employees. During thereporting period, no environmental emergencies occurred.Programming and implementation of self-monitoring of the environmentDuring the reporting period, Changan Automobile’s key pollutants were: Liangjiang Plant, Jiangbei Engine Factory, YubeiFactory, Beijing Changan, Hefei Changan. All the key sewage made self-monitoring schemes, and self-monitoring has been carriedout, and information disclosure has been carried out according to the requirements of the local ecological environment department.Others
During the reporting period, Liangjiang Factory, Jiangbei Engine Factory, Yubei Factory, and Mould Division carried out the2019 environmental credit evaluation work in accordance with the requirements of the local ecological environment authority.
2. Fulfill social responsibility of targeted poverty alleviation
√ Applicable □ Not applicable
The year 2020 will be a decisive year in the fight against poverty. By implementing General Secretary Xi Jinping's importantstatement on poverty alleviation, the Company will fulfill its political responsibility in the fight against poverty in accordance withthe decisions and plans of the CPC Central Committee, the State Council and the overall arrangements of the group companies. TheCompany will continue to pursue the basic strategy of precision poverty reduction and eradication, and make overall progress inpoverty alleviation and reduction so as to make new and greater contributions to building the well-off society in all respects andachieving the first centenary goal.
(1)Targeted poverty alleviation in 2020
4.5 million RMB donated to Luxi County for poverty alleviation
On the Education Poverty Alleviation Project: Firstly, invest 1.5 million funds to improve the facilities of Zhuma primary schoolin Xiangyang Township, Luxi County. The construction content: Teaching building, school road hardening, basketball court, etc.Secondly, a new type of vocational skills training program for rural farmers in Luxi County with 500,000 funds invested to provideskills training to 100 farmers with the intention and ability to find employment (no less than 50 poor households with file-sharingcards), and the training content includes welder, electrician skills-based. Through the “one helps each other” approach to training,
they could master a skill, and increase income through the transfer of labor.On Health and poverty alleviation projects: the Company supported the allocation project of negative-pressure ambulances inLuxi County with a total investment of 390,000 yuan. According to relevant procurement requirements, the Company centralized theprocurement of two negative-pressure ambulances. The vehicles will be used by the Luxi County People's Hospital and the LuxiCounty Hospital of traditional Chinese medicine. Through the deployment of negative pressure ambulance, the prevention andtreatment capacity of infectious disease in Luxi County improved, and the emergency response capacity of the infectious diseaseenhanced.
On the people's livelihood poverty alleviation project: Firstly, the Luxi County Fund for Dynamic Monitoring the preventionand control of poverty with 1.51 million yuan. The fund is mainly used for poverty-stricken households, marginal households,monitoring households and other disadvantaged groups. The implementation of the project will consolidate Luxi County'sachievements in poverty alleviation, improve the quality of poverty alleviation, and prevent the returning to poverty and theemergence of new poor people. Secondly, the Company invested 600,000 in the emergency rescue vehicle configuration project inLuxi County for the procurement of fire engines. In accordance with the relevant procurement requirements, the Company procuredfour small emergency water tanker vehicles for fire fighting operations with their property rights to the Luxi County fire rescuebrigade. The implementation of the project can effectively avoid the occurrence of poverty due to disaster.6 million RMB donated to Yanshan County for poverty alleviationOn Industrial Development and poverty alleviation projects: the Company invested 2.36 million yuan in the project for thepurchase of heat removal equipment for black-feathered chick-rearing houses in Panlong Township, and the project was organizedand implemented by the People's Government of Panlong Township. The Company adopted the cooperative development model of"government + co-operatives + industries + posts (poor households) " , the government will help fund the project of purchasingtemperature-removing equipment for black-feathered chick-rearing in breeding cooperative in Yanshan County. A ProjectCooperation Agreement was operated and managed by the cooperative itself for a period of 60 months. The cooperative shallvoluntarily pledge the farm and its property as collateral for the venture capital of the cooperative, and shall pay 180,000 yuan of thecooperative income every 12 months, and the cooperative income funds are mainly used for labor remuneration of public welfareposts and public welfare undertakings, so as to consolidate the achievements of poverty eradication.On the education and poverty alleviation projects: firstly, all the universities and primary schools in the town of AMeng carriedout school affiliated projects with an investment of 1.1 million yuan and built 200 meters of fences, 900 meters of retaining walls and1,200㎡ of hardened playing fields, 90㎡of new Bathroom,18㎡of duty room and a gate. In this way, the county improved theconditions of running schools so that schools can meet the requirements of compulsory education balanced development. Secondly,the Yanshan County, the Campus Love Bathhouse Construction Project, invested 2 million for the implementation of 15 lovebathhouses (a total of 540 square meters) , and supporting solar energy and shower equipment. The implementation of the project hasmet the needs of 15 rural schools, improved school conditions, and promoted the healthy growth of rural students.On Health Poverty Alleviation Projects: the Yanshan County, Negative Pressure Ambulance Project, invested 540,000 funds topurchase two Chang'an Ruixing M90 negative pressure ambulances. On the basis of standard configuration, the ambulances wereequipped with transshipment suction machine and defibrillator. The current lack of negative pressure ambulances in Yanshan Countyis not conducive to the transfer of infectious disease cases, in particular the current epidemic of pneumonia with novel coronavirusinfection prevention and control work.
0.3 million RMB donated to Pengshui County for poverty alleviation
In accordance with the spirit of the circular of the Office of the Leading Group of the Poverty Alleviation Group of theChongqing Development and Reform Commission on the publication of the 2020 work for counterpart assistance to PengshuiCounty (No.1 [2020] of the Chongqing Development and Reform Commission) ,the Company has invested 300,000 yuan inChongqing Pengshui County.
(2)Poverty alleviation through consumption in 2020
The Company together with People's Daily has completed the first-ever online public welfare live broadcast with the theme of"poverty alleviation, love and innovation" in Luxi and Yanshan counties of Yunnan Province. The total number of viewers reached
34.1 million, the number of likes broke 10 million, and the consumption sales of helping the poor live broadcast amounted to
1.133493 million yuan.
Changan Automobile Statistics on Poverty Alleviation in the first half of 2020
(3)Follow-up precision poverty alleviation plan
According to the document "on the 2020 Jiangbei · Youyang Tujia and Miao Autonomous County counterpart Assistance WorkProgram Notice" (No. 2[2020] of the District counterpart Assistance Work Leading Group Office of Chongqing Municipality) , thecounterpart assistance work for Chongqing Youyang Tujia and Miao Autonomous County County will be completed by the Company.The Company will continue to help the poor through consumption, disseminate the concept of "love the world", and build up theimage of the Company as an excellent enterprise.
Indicator | Unit | Quantity / Details |
Ⅰ. Total | —— | —— |
1.funds | 10 thousand RMB | 1080 |
2. Material | 10 thousand RMB | 0 |
Ⅱ. Subdivision | —— | —— |
1. Industrial poverty alleviation | —— | 236 |
1.1 Industrial poverty alleviation project type | —— | 1) The project for the purchase of heat removal equipment for black-feathered chick-rearing houses in Panlong Township; 236 |
2. Education poverty alleviation | —— | 510 |
2.1 Funding for poor students | 10 thousand RMB | 2) Construction project of love Bath Hall in Yanshan County; 200 3) Upgrading Project of Zhuma Primary School in Xiangyang Township, Luxi County; 150 4) skills training project of new type professional farmers in Luxi County; 50 |
3. Medical and health poverty alleviation | —— | 93 |
3.1 Medical and health resources invested in poverty areas | 10 thousand RMB | 2)Yanshan County, Negative Pressure Ambulance Project; 54 |
4. Other projects - people's livelihood poverty alleviation | —— | 241 |
4.1 Amount of investment | 10 thousand RMB | 2) Luxi County, Yunnan Emergency Vehicle Allocation Project; 60 3) Pengshui County; 30 |
XVI. Other important matters
√Applicable □Not-applicable
For details, please refer to "2、Selling of major equity" in Section IV "VI. Selling of major assets and major equity" of this report.
XVII. Important matters of company subsidiaries
√Applicable □Not-applicable
For details, please refer to "2、Selling of major equity" in Section IV "VI. Selling of major assets and major equity" of this report.
Chapter 6 Changes in the shareholding of the company and
shareholdersI. Change in shareholdings
1. Change in shareholdings
Unit: one share
Balance before current change | Addition and deduction(+,-) during change | Balance after current change | |||||||
Quantity | (%) | Additional issued | Stock dividend | Provident fund transfer | other | Quantity | (%) | Quantity | |
Non-circulated shares | 18,900 | 0.00% | - | - | - | - | - | 18,900 | 0.00% |
1. State-owned legal person shares | 0 | 0.00% | - | - | - | - | - | 0 | 0.00% |
2. Senior management personnel shares | 18,900 | 0.00% | - | - | - | - | - | 18,900 | 0.00% |
Circulated shares | 4,802,629,611 | 100.00% | - | - | - | - | - | 4,802,629,611 | 100.00% |
1. Domestic listed RMB shares | 3,900,643,469 | 81.22% | - | - | - | - | - | 3,900,643,469 | 81.22% |
2. Domestic listed foreign shares | 901,986,142 | 18.78% | - | - | - | - | - | 901,986,142 | 18.78% |
Total shares | 4,802,648,511 | 100.00% | - | - | - | - | - | 4,802,648,511 | 100.00% |
Reason of stock changes
□ Applicable √ Not-applicable
Approval of stock changes
□ Applicable √ Not-applicable
Ownership transfer of stock change
□ Applicable √ Not-applicable
Progress of Share Repurchase
□ Applicable √ Not-applicable
Implementation Progress of Reducing Holdings of Repurchase Shares by Centralized Bidding
□ Applicable √ Not-applicable
The influence of share changes on financial indicators, such as the latest year and the latest basic earnings per share anddiluted earnings per share, the net assets per share belonging to the common shareholder of the company
□ Applicable √ Not-applicable
Other contents which the company regards necessary and securities supervising institution requires the Company to disclose
□ Applicable √ Not-applicable
2. Change in Non-circulated shares
√ Available □ Not-available
Unit: one share
Name of shareholders | Non-circulated shares held at the year-beginning | Decrease during the reporting period | Increase during the reporting period | Non-circulated shares held at the year-end | Reason for non-circulated shares | Date for the circulated shares |
Zhu Huarong | 18,900 | - | - | 18,900 | Executive lock stocks | 6 months after the retirement |
Total | 18,900 | - | - | 18,900 | -- | -- |
II. Issuing and listing of securities
1. Securities issuance (excluding preferred stocks) during the reporting period
√Applicable □Not-applicable
On April 27, 2020, the company held the 64th meeting of the seventh board of directors, at which 13 proposals including the"Proposal on the Company's Non-public Issuance of A Shares" were reviewed and approved, and the company plans to issuenon-public shares to specific targets. The total amount of raised funds does not exceed 6 billion yuan (including this figure). Fordetails, please refer to the relevant announcement disclosed by the company on the http://www.cninfo.com.cn on April 28, 2020. OnMay 22, 2020, this matter was approved by the 2019 Annual General Meeting of Shareholders (Announcement No.: 2020-44).
2. Changes in the total number of shares of the Company and changes in the structure of the shareholdersand in the structure of the Company's assets and liabilities
√Applicable □Not-applicable
On April 18, 2020, the company disclosed the "Indicative Announcement Concerning the Gratuitous Transfer of 0.71% Equityof the Company by the Actual Controller" (Announcement No.: 2020-18). The company’s actual controller, China South IndustriesGroup has signed a free transfer agreement with China Power Technology Investment Holdings Co., Ltd. (hereinafter referred to as“China Power Technology Investment Holdings”) to transfer 34,232,588 shares of Changan Automobile for free., which accounts for
0.71% of the company’s total issued shares.
On May 29, 2020, the company disclosed the "Announcement on Obtaining the Approval of the State-owned Assets Supervisionand Administration Commission of the State Council for the Gratuitous Transfer of the Company's Equity by the Actual Controller"(Announcement No.: 2020-45). On June 19, 2020, the company disclosed the "Announcement on the Completion of Transfer
Registration for the Gratuitous Transfer of State-owned Equity of the Actual Controller" (Announcement No.: 2020-54), confirmingthat the transfer and registration procedures of the above-mentioned freely transferred shares was completed, and the transfer datewas June 18, 2020.
3. Existing internal staff shares
□ Applicable √ Not-applicable
III. Shareholding and shareholders of the company
Unit: one share
At the end of the report period, the total number of shareholders | 136,260 | Number of preferred shareholders with resumed voting rights at the period-end | 0 | ||||||||
Holding more than 5% of the shareholders, or top 10 shareholders situation | |||||||||||
Name of shareholders | Nature of Shareholders | (%) | Shares held at the year-end | Increases and decreases during the report period | Non-circulated shares held at the year-end | Circulated shares held at the year-end | Pledged/ Frozen cases | ||||
Share status | amount | ||||||||||
China South Industries Group Co., Ltd. | State-owned legal person shares | 20.84% | 1,001,080,085 | -34,232,588 | - | - | No pledge or freeze | ||||
China Changan Automobile Co., Ltd. | State-owned legal person shares | 19.32% | 928,044,946 | - | - | - | No pledge or freeze | ||||
China securities finance Co, Ltd | domestic general legal person shares | 4.88% | 234,265,333 | - | - | - | No pledge or freeze | ||||
Hong Kong Central Settlement Co., Ltd. | foreign legal person shares. | 4.05% | 194,470,755 | 76,774,027 | |||||||
United Prosperity Investment Co., Limited | foreign legal person shares | 3.21% | 154,120,237 | - | - | - | No pledge or freeze | ||||
Central Huijin Investment Ltd. | domestic general legal person shares | 1.15% | 55,393,100 | - | - | - | No pledge or freeze | ||||
DRAGON BILLION SELECT MASTER FUND | foreign legal person shares | 0.76% | 36,547,305 | -1,459,431 | - | - | No pledge or freeze | ||||
GIC PRIVATE LIMITED | foreign legal person shares | 0.73% | 35,283,393 | - | - | - | No pledge or freeze |
China Power Investment Holdings Co., Ltd. | State-owned legal person shares | 0.71% | 34,232,588 | 34,232,588 | - | - | No pledge or freeze | ||||
CAPE ANN GLOBAL DEVELOPING MARKETS FUND | foreign legal person shares | 0.51% | 24,423,660 | 2,572,535 | - | - | No pledge or freeze | ||||
Explanation on the relationship and the action alike of above shareholders | Among the top 10 shareholders, China South Industries Group Co., Ltd., the actual controller; China Changan Automobile Group Co., Ltd., the controlling shareholder, and its wholly owned subsidiary United Prosperity (Hong Kong) Investment Co., Limited. belong to the concerted actor regulated by “Disclosure Administration of Shares Change Information of The Listed Company”. | ||||||||||
The ten largest circulated shareholders | |||||||||||
Name of shareholders | Shares at the year end | Shares type | |||||||||
Type | Amount | ||||||||||
China South Industries Group Co., Ltd. | 1,001,080,085 | RMB ordinary shares | 1,001,080,085 | ||||||||
China Changan Automobile Co., Ltd. | 928,044,946 | RMB ordinary shares | 928,044,946 | ||||||||
China securities finance Co, Ltd | 234,265,333 | RMB ordinary shares | 234,265,333 | ||||||||
Hong Kong Central Settlement Co., Ltd. | 194,470,755 | RMB ordinary shares | 194,470,755 | ||||||||
United Prosperity Investment Co., Limited | 154,120,237 | Domestic listed foreign shares | 154,120,237 | ||||||||
Central Huijin Investment Ltd. | 55,393,100 | RMB ordinary shares | 55,393,100 | ||||||||
DRAGON BILLION SELECT MASTER FUND | 36,547,305 | Domestic listed foreign shares | 36,547,305 | ||||||||
GIC PRIVATE LIMITED | 35,283,393 | Domestic listed foreign shares | 35,283,393 | ||||||||
China Power Investment Holdings Co., Ltd. | 34,232,588 | RMB ordinary shares | 34,232,588 | ||||||||
CAPE ANN GLOBAL DEVELOPING MARKETS FUND | 24,423,660 | Domestic listed foreign shares | 24,423,660 | ||||||||
The top 10 shareholders to sell circulated shares, and the infinite tradable relationship between shareholders and top 10 shareholders or concerted action | Among the top 10 shareholders, China South Industries Group Co., Ltd., the actual controller; China Changan Automobile Group Co., Ltd., the controlling shareholder, and its wholly owned subsidiary United Prosperity (Hong Kong) Investment Co., Limited belong to the concerted actor regulated by “Disclosure Administration of Shares Change Information of The Listed Company”. |
Whether the company top 10 shareholders of ordinary shares, and the top 10 circulated shareholders agreed on the repurchasetransactions during the report period
□ Available √ Not- available
The company top 10 shareholders of ordinary shares, and the top 10 circulated shareholders did not agree on the repurchasetransactions during the reporting period
IV. The change of the controlling shareholders and theactual controllers
During the reporting period the change of controlling shareholders
□ Available √ Not- available
No changes in controlling shareholders during the reporting period.The change of the actual controllers during the reporting period
□ Available √ Not- available
No changes in the actual controllers during the reporting period.
Chapter 7 Information about Directors, Supervisors, Senior
Management
I. Share ownership of directors, supervisors and senior managers
□ Available √ Not- available
The share ownership of the directors, supervisors and senior managers has no change during the reporting period. For details, plaeserefer to 2019 annual report.II. Departure and Hiring information of the directors, supervisors and senior manager
√ Available □ Not-available
Name | Duties | Type | Date | Reason |
Zhu Huarong | Director ,Chairman | Election | June 22th, 2020 | Appointment due to work |
Tan Xiaogang | Director | Election | June 22th, 2020 | Appointment due to work |
Lv Laisheng | Director | Election | June 22th, 2020 | Appointment due to work |
Zhou Zhiping | Director | Election | June 22th, 2020 | Appointment due to work |
Wang Jun | Director | Election | June 22th, 2020 | Appointment due to work |
Zhang Deyong | Director | Election | June 22th, 2020 | Appointment due to work |
Liu Jipeng | independent director | Election | June 22th, 2020 | Appointment due to work |
Li Qingwen | independent director | Election | June 22th, 2020 | Appointment due to work |
Chen Quanshi | independent director | Election | June 22th, 2020 | Appointment due to work |
Ren Xiaochang | independent director | Election | June 22th, 2020 | Appointment due to work |
Pang Yong | independent director | Election | June 22th, 2020 | Appointment due to work |
Tan Xiaosheng | independent director | Election | June 22th, 2020 | Appointment due to work |
Wei Xinjiang | independent director | Election | June 22th, 2020 | Appointment due to work |
Cao Xingquan | independent director | Election | June 22th, 2020 | Appointment due to work |
Yan Ming | Supervisory board chairman | Election | June 22th, 2020 | Appointment due to work |
Sun Dahong | Supervisor | Election | June 22th, 2020 | Appointment due to work |
Zhao Jun | Supervisor | Election | June 22th, 2020 | Appointment due to work |
Wang Yanhui | Employee Supervisor | Election | June 19th, 2020 | Appointment due to work |
Luo Yan | Employee Supervisor | Election | June 19th, 2020 | Appointment due to work |
Zhu Huarong | President, Party Secretary | recruitment | July 13th, 2020 | Appointment due to work |
Wang Jun | Deputy Secretary of the Party Committee (Identified as a senior manager) | recruitment | July 13th, 2020 | Appointment due to work |
Yuan Mingxue | Executive Vice President | recruitment | July 13th, 2020 | Appointment due to work |
Liu Bo | Deputy Vice Director | recruitment | July 13th, 2020 | Appointment due to work |
He Chaobing | Deputy Vice Director | recruitment | July 13th, 2020 | Appointment due to work |
Li Wei | Deputy Vice Director | recruitment | July 13th, 2020 | Appointment due to work |
Hua Zhanbiao | Secretary of the Commission for Discipline Inspection (identified as a senior manager) | recruitment | July 13th, 2020 | Appointment due to work |
Tan Benhong | Deputy Vice Director | recruitment | July 13th, 2020 | Appointment due to work |
Liu Zhengjun | Deputy Vice Director | recruitment | July 13th, 2020 | Appointment due to work |
Zhang Deyong | The chief accountant | recruitment | July 13th, 2020 | Appointment due to work |
Ye Pei | Vice President | recruitment | July 13th, 2020 | Appointment due to work |
Zhao Fei | Vice President | recruitment | July 13th, 2020 | Appointment due to work |
Chen Wei | Vice President | recruitment | July 13th, 2020 | Appointment due to work |
Li Mingcai | Vice President | recruitment | July 13th, 2020 | Appointment due to work |
Li Jun | Board Sectary | recruitment | July 13th, 2020 | Appointment due to work |
Zhang Baolin | Chairman | Departure | June 5th, 2020 | Job change |
Zhang Dongjun | Director | Departure | June 22th, 2020 | General election |
Zhao Huixia | Supervisor | Departure | June 22th, 2020 | General election |
Zhang Jingjing | Deputy Vice Director | Departure | July 13th, 2020 | General election |
Chapter 8 Corporate Bonds
Is there a corporate bond that is publicly issued and listed on the stock exchange and fails to be fully paidup or not due on maturity until the approval of the semi-annual report
□ Yes √ No
Chapter 9 The Financial Statements
I. Auditing ReportSemi-annual report is audited
□ Yes √ No
No audit on the semi-annual financial report.
II. Financial statement mentFinancial in notes to the statements of the unit is: RMB yuan
1. Consolidated Balance Sheet
In RMB Yuan
Account | June 30, 2020 | December 31, 2019 |
Current assets: | ||
Cash | 17,326,421,237.43 | 10,066,171,353.48 |
Transactional financial assets | 4,173,150,897.00 | 2,419,476,200.00 |
Notes receivable | 21,629,277,146.93 | 26,805,635,587.19 |
Accounts receivable | 2,299,982,425.41 | 838,314,076.82 |
Prepayments | 636,088,225.27 | 623,801,896.07 |
Other receivables | 1,042,027,106.65 | 3,731,755,992.46 |
Inventories | 4,040,392,469.99 | 3,375,441,488.37 |
Contract assets | 2,055,476,727.43 | |
Other current assets | 1,100,242,219.66 | 1,746,120,128.04 |
Total current assets | 54,303,058,455.77 | 49,606,716,722.43 |
Non-current assets: | ||
Long-term receivables | 12,808,010,205.56 | 11,008,336,989.09 |
Other equity investment | 734,506,100.00 | 734,506,100.00 |
Investment properties | 6,989,493.94 | 7,102,849.72 |
Fixed assets | 25,896,056,062.39 | 26,939,490,554.19 |
Construction in progress | 1,793,015,326.03 | 1,729,803,028.43 |
Intangible assets | 5,048,286,334.37 | 5,209,619,313.49 |
Devlopment expenditure | 516,943,366.86 | 814,745,464.20 |
Goodwill | 42,586,584.41 | 9,804,394.00 |
Long-term deferred expenses | 11,768,576.59 | 14,327,639.90 |
Deferred tax assets | 1,640,537,797.01 | 1,542,600,534.93 |
Total non-current assets | 48,498,699,847.16 | 48,010,336,867.95 |
Total assets | 102,801,758,302.93 | 97,617,053,590.38 |
Current liabilities: | ||
Short-term loans | 365,525,472.30 | 229,580,000.00 |
Notes payable | 17,021,001,941.49 | 13,430,543,294.23 |
Accounts payable | 18,206,448,534.41 | 18,905,725,271.50 |
Advances from customers | 2,315,641,685.78 | |
Contract liabilities | 2,162,739,729.94 | |
Payroll payable | 899,656,704.69 | 1,046,335,781.91 |
Taxes payable | 448,654,660.12 | 889,092,442.80 |
Other payables | 3,074,351,444.31 | 4,809,918,141.45 |
Interest payables | 1,167,776.43 | 40,384.93 |
Other current liabilities | 4,569,806,449.83 | 4,253,942,761.77 |
Total current liabilities | 46,748,184,937.09 | 45,880,779,379.44 |
Non-current liabilities: | ||
Long-term loans | 1,555,300,000.00 | 55,300,000.00 |
Long-term payable | 702,461,540.35 | 857,356,423.71 |
Long term payroll payable | 43,359,523.52 | 45,932,000.00 |
Estimated liabilities | 3,169,800,842.14 | 3,352,580,839.28 |
Deferred earnings | 3,450,963,103.29 | 3,194,291,079.21 |
Deferred tax liabilities | 557,904,374.46 | 296,742,890.29 |
Total non-current liabilities | 9,479,789,383.76 | 7,802,203,232.49 |
Total liabilities | 56,227,974,320.85 | 53,682,982,611.93 |
Owners’ equity: | ||
Share capital | 4,802,648,511.00 | 4,802,648,511.00 |
Capital reserves | 5,366,097,594.66 | 5,366,097,594.66 |
Other Comprehensive Income | 146,761,519.56 | 139,994,580.19 |
Special reserves | 78,399,497.78 | 47,076,242.71 |
Surplus reserves | 2,401,324,255.50 | 2,401,324,255.50 |
Retained earnings | 33,873,337,962.28 | 31,271,171,559.60 |
Equity attributable to owners | 46,668,569,340.78 | 44,028,312,743.66 |
Minority interests | -94,785,358.70 | -94,241,765.21 |
Total equity | 46,573,783,982.08 | 43,934,070,978.45 |
Total liabilities and owener’s equity | 102,801,758,302.93 | 97,617,053,590.38 |
Legal person: Zhu Huarong Chief financial officer: Zhang Deyong The head of accounting department: Chen Jianfeng
2. Balance sheet
In RMB Yuan
Account | June 30, 2020 | December 31, 2019 |
Current assets: | ||
Cash | 13,159,786,888.55 | 6,563,020,335.56 |
Transactional financial assets | 162,945,000.00 | 184,245,000.00 |
Notes receivable | 20,639,888,071.96 | 25,837,326,483.09 |
Accounts receivable | 5,793,044,421.21 | 5,094,270,365.72 |
Prepayments | 477,501,198.01 | 403,105,316.24 |
Other receivables | 2,087,736,557.44 | 2,597,314,344.40 |
Inventories | 2,692,995,183.22 | 1,735,570,691.28 |
Contract assets | 1,412,177,092.60 | |
Other current assets | 413,864,092.40 | 798,430,035.62 |
Total current assets | 46,839,938,505.39 | 43,213,282,571.91 |
Non-current assets: | ||
Long-term equity investments | 15,927,040,641.38 | 16,052,319,271.82 |
Other equity investment | 724,309,400.00 | 724,309,400.00 |
Fixed assets | 19,696,145,485.76 | 20,301,231,002.41 |
Construction in progress | 1,630,762,467.34 | 1,545,211,000.22 |
Intangible assets | 3,851,090,092.12 | 4,030,438,649.57 |
Development expenditure | 436,066,340.39 | 431,774,377.27 |
Long-term deferred expenses | 7,742,327.63 | 9,719,259.84 |
Deferred tax assets | 1,401,475,134.44 | 1,318,884,054.48 |
Total non-current assets | 43,674,631,889.06 | 44,413,887,015.61 |
Total assets | 90,514,570,394.45 | 87,627,169,587.52 |
Current liabilities: | ||
Short-term loans | 29,580,000.00 | 29,580,000.00 |
Notes payable | 15,032,991,305.12 | 11,983,445,725.06 |
Accounts payable | 15,706,279,887.99 | 15,601,432,751.74 |
Advances from customers | 1,870,992,349.08 | |
Contract liabilities | 1,807,709,690.50 | |
Payroll payable | 597,737,081.03 | 641,340,149.30 |
Taxes payable | 307,533,461.81 | 453,619,905.66 |
Other payables | 2,664,677,248.88 | 4,301,257,819.04 |
Interest payables | 1,167,776.43 | 40,384.93 |
Other current liabilities | 3,747,004,808.36 | 3,400,065,879.02 |
Total current liabilities | 39,893,513,483.69 | 38,281,734,578.90 |
Non-current liabilities: | ||
Long-term loans | 1,555,300,000.00 | 55,300,000.00 |
Long-term payable | 130,720,735.03 | 285,768,478.89 |
Long term payroll payable | 20,430,629.02 | 22,747,000.00 |
Estimated liabilities | 2,330,116,808.17 | 2,413,434,397.36 |
Deferred earnings | 2,169,871,239.55 | 2,135,615,106.85 |
Deferred tax liabilities | 78,580,341.60 | 81,775,341.60 |
Total non-current liabilities | 6,285,019,753.37 | 4,994,640,324.70 |
Total liabilities | 46,178,533,237.06 | 43,276,374,903.60 |
Owners' equity: | ||
Share capital | 4,802,648,511.00 | 4,802,648,511.00 |
Capital reserves | 5,014,772,792.87 | 5,014,772,792.87 |
Other comprehensive income | 259,380,413.58 | 259,380,413.58 |
Special reserves | 21,702,787.13 | 19,917,658.63 |
Surplus reserves | 2,401,324,255.50 | 2,401,324,255.50 |
Retained earnings | 31,836,208,397.31 | 31,852,751,052.34 |
Total owners' equity | 44,336,037,157.39 | 44,350,794,683.92 |
Total liabilities and owners’ equity | 90,514,570,394.45 | 87,627,169,587.52 |
3. Consolidated Income Statement
In RMB Yuan
Account | Current Period | Prior Period |
1.Total operating revenue | 32,781,657,479.10 | 29,875,780,096.84 |
Less:Operating cost | 29,734,615,697.63 | 27,419,410,626.92 |
Tax and surcharges | 1,206,286,383.45 | 1,080,270,474.78 |
Operating expenses | 1,270,717,082.07 | 1,443,216,541.30 |
General and administrative expenses | 1,164,152,772.91 | 843,160,552.62 |
Research and development expenses | 1,464,554,423.42 | 1,720,159,658.88 |
Financial expenses | -98,053,545.38 | -96,832,709.15 |
Interest expense | 20,373,153.36 | 28,216,059.24 |
Interest income | 131,048,028.86 | 128,484,820.10 |
Add: Other income | 215,977,955.28 | 620,733,074.11 |
Investment income | 3,000,803,663.99 | -108,336,709.94 |
Including: Investment income from associates and joint venture | -528,282,156.89 | -108,336,709.94 |
Gains from changes in fair value | 1,753,674,697.00 | 40,337,151.27 |
Credit impairment loss | -23,300,119.01 | -9,529,733.66 |
Asset impairment loss | -208,242,617.71 | -152,676,538.06 |
Gain on disposal of assets | 33,428,646.97 | 9,392,459.28 |
3.Operating profit | 2,811,726,891.52 | -2,133,685,345.51 |
Add: Non-operating income | 31,178,860.44 | 18,836,680.44 |
Less: Non-operating expenses | 51,351,646.13 | 12,645,067.20 |
4.Total profit | 2,791,554,105.83 | -2,127,493,732.27 |
Less: Income tax expense | 189,931,296.64 | 116,567,696.08 |
5.Net profit | 2,601,622,809.19 | -2,244,061,428.35 |
Classification by going concern | ||
Net profit from continuing operations | 2,601,622,809.19 | -2,244,061,428.35 |
Net profit from discontinued operations | ||
Classification by ownership attribution | ||
Net profit attributable to owners | 2,602,166,402.68 | -2,240,039,761.11 |
Minority interests | -543,593.49 | -4,021,667.24 |
6.Other comprehensive income, net of tax | 6,766,939.37 | 22,567,848.13 |
Net after-tax net of other comprehensive income attributable to the parent company owner | 6,766,939.37 | 22,567,848.13 |
Other comprehensive income that will be reclassified into profit or loss | 6,766,939.37 | 22,567,848.13 |
Foreign currency financial statement translation difference | 6,766,939.37 | 22,567,848.13 |
7.Total comprehensive income | 2,608,389,748.56 | -2,221,493,580.22 |
Total comprehensive income attributable to owners | 2,608,933,342.05 | -2,217,471,912.98 |
Total comprehensive income attributable to minority interest | -543,593.49 | -4,021,667.24 |
8.Earnings per share | ||
Basic earnings per share | 0.54 | -0.47 |
Diluted earnings per share | Not applicable | Not applicable |
4. Income Statement
In RMB Yuan
Account | Current Period | Prior Period |
1.Operating revenue | 29,758,919,897.37 | 26,805,108,322.22 |
Less: Operating cost | 27,911,858,903.03 | 24,637,906,770.95 |
Tax and surcharges | 762,021,502.79 | 855,166,897.03 |
Operating expenses | 961,039,656.72 | 902,216,576.48 |
General and administrative expenses | 726,483,524.17 | 307,874,508.68 |
Research and development expenses | 1,380,814,145.22 | 1,710,222,941.73 |
Financial expenses | -97,970,764.79 | -88,753,361.46 |
Interest expense | 4,888,747.72 | 14,997,114.41 |
Interest income | 110,304,548.86 | 109,584,194.58 |
Add: Other income | 57,884,810.14 | 406,839,978.09 |
Investment income | 2,317,139,772.66 | -73,898,822.33 |
Including: Investment income from associates and joint venture | -430,245,711.08 | -78,048,193.41 |
Gains from changes in fair value | -21,300,000.00 | 51,830,000.00 |
Credit impairment loss | -21,114,561.28 | -4,381,254.25 |
Asset impairment loss | -162,746,163.89 | -141,818,001.51 |
Gain on disposal of assets | -10,976,304.75 | 6,747,426.61 |
2.Operating profit | 273,560,483.11 | -1,274,206,684.58 |
Add: Non-operating income | 22,925,521.70 | 14,232,341.29 |
Less: Non-operating expenses | 43,916,807.17 | 8,718,726.38 |
3.Total profit | 252,569,197.64 | -1,268,693,069.67 |
Less: Income tax expense | -85,786,079.95 | 99,788,296.30 |
4.Net profit | 338,355,277.59 | -1,368,481,365.97 |
Net profit from continuing operations | 338,355,277.59 | -1,368,481,365.97 |
Net profit from discontinued operations | ||
5.Other comprehensive income, net of tax | ||
6.Total comprehensive income | 338,355,277.59 | -1,368,481,365.97 |
7.Earnings per share | ||
Basic earnings per share | 0.07 | -0.28 |
Diluted earnings per share | 不适用 | 不适用 |
5. Consolidated cash flow statement
In RMB Yuan
Account | Current Period | Prior Period |
1.Cash flows from operating activities: | ||
Cash received from sale of goods or rendering of services | 39,547,166,284.75 | 37,501,789,702.13 |
Refunds of taxes | 212,875,606.35 | 305,232,064.00 |
Cash received relating to other operating activities | 1,460,594,720.28 | 3,464,749,370.24 |
Subtotal of cash inflows | 41,220,636,611.38 | 41,271,771,136.37 |
Cash paid for goods and services | 26,823,061,336.77 | 29,029,097,098.22 |
Cash paid to and on behalf of employees | 2,602,751,432.93 | 2,984,764,831.32 |
Cash paid for all types of taxes | 1,774,453,965.05 | 1,743,016,544.47 |
Cash paid relating to other operating activities | 3,107,783,183.03 | 3,294,629,031.41 |
Subtotal of cash outflows | 34,308,049,917.78 | 37,051,507,505.42 |
Net cash flows from operating activities | 6,912,586,693.60 | 4,220,263,630.95 |
2.Cashflows from investing activities: | ||
Cash received from investment income | 52,200,268.08 | |
Net cash received from disposal of fixed assets, intangible assets | 50,925,772.51 | 5,214,056.34 |
and other long-term assets | ||
Cash received relating to other investing activities | 2,401,804.55 | 1,478,695.29 |
Subtotal of cash inflows | 105,527,845.14 | 6,692,751.63 |
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | 1,240,508,778.71 | 2,438,475,206.69 |
Cash paid for acquisition of investments | 13,494,996.00 | 936,788,517.00 |
Cash paid relating to other investing activities | 104,231,229.20 | 315,938,190.60 |
Subtotal of cash outflows | 1,358,235,003.91 | 3,691,201,914.29 |
Net cash flows from investing activities | -1,252,707,158.77 | -3,684,509,162.66 |
3.Cash flows from financing activities: | ||
Absorb cash received from investment | ||
Cash received relating to other financing activities | 1,661,945,472.30 | 41,000,000.00 |
Cash received relating to other financing activities | 330,073,299.87 | 37,159,887.74 |
Subtotal of cash inflows | 1,992,018,772.17 | 78,159,887.74 |
Cash repayments of borrowings | 26,000,000.00 | 27,708,100.00 |
Cash paid for distribution of dividends or profits and interest expenses | 14,711,837.52 | 23,367,744.44 |
Cash paid relating to other financing activities | 141,928,386.47 | 92,571,987.62 |
Subtotal of cash outflows | 182,640,223.99 | 143,647,832.06 |
Net cash flows from financing activities | 1,809,378,548.18 | -65,487,944.32 |
4.Effect of changes in exchange rate on cash | -8,613,576.66 | 29,186,874.52 |
5.Net increase in cash and cash equivalents | 7,460,644,506.35 | 499,453,398.49 |
Add: Opening balance of cash and cash equivalents | 9,360,474,674.89 | 9,648,153,614.80 |
6.Closing balance of cash and cash equivalents | 16,821,119,181.24 | 10,147,607,013.29 |
6. Cash flow statement
In RMB Yuan
Account | Current Period | Prior Period |
1.Cash flows from operating activities: | ||
Cash received from sale of goods or rendering of services | 35,373,943,984.62 | 34,665,878,858.45 |
Cash received relating to other operating activities | 307,884,774.24 | 2,199,853,209.77 |
Subtotal of cash inflows | 35,681,828,758.86 | 36,865,732,068.22 |
Cash paid for goods and services | 24,853,008,533.51 | 26,688,730,896.99 |
Cash paid to and on behalf of employees | 1,869,061,222.17 | 2,093,118,245.08 |
Cash paid for all types of taxes | 745,408,673.77 | 1,228,855,624.27 |
Cash paid relating to other operating activities | 1,991,778,401.18 | 3,878,425,262.91 |
Subtotal of cash outflows | 29,459,256,830.63 | 33,889,130,029.25 |
Net cash flows from operating activities | 6,222,571,928.23 | 2,976,602,038.97 |
2.Cashflows from investing activities: | ||
Cash received from return on investments | 56,622,717.45 | 4,398,333.33 |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 93,034.76 | |
Subtotal of cash inflows | 56,715,752.21 | 4,398,333.33 |
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | 992,736,013.34 | 2,281,259,200.99 |
Cash paid for acquisition of investments | 186,108,581.00 | 997,294,972.55 |
Cash paid relating to other investing activities | 300,000,000.00 | |
Subtotal of cash outflows | 1,178,844,594.34 | 3,578,554,173.54 |
Net cash flows from investing activities | -1,122,128,842.13 | -3,574,155,840.21 |
3.Cash flows from financing activities: | ||
Cash received from borrowings | 1,500,000,000.00 | |
Subtotal of cash inflows | 1,500,000,000.00 | |
Cash paid for distribution of dividends or profits and interest expenses | 3,676,533.11 | 14,997,114.41 |
Subtotal of cash outflows | 3,676,533.11 | 14,997,114.41 |
Net cash flows from financing activities | 1,496,323,466.89 | -14,997,114.41 |
4.Effect of changes in exchange rate on cash | ||
5.Net increase in cash and cash equivalents | 6,596,766,552.99 | -612,550,915.65 |
Add: Opening balance of cash and cash equivalents | 6,563,020,335.56 | 7,310,973,018.99 |
6.Closing balance of cash and cash equivalents | 13,159,786,888.55 | 6,698,422,103.34 |
7. Consolidated statement of changes in shareholders’ equity
In RMB Yuan
Items | Current period | |||||||||
Equity attributable to owners | Minority interest | Total equity | ||||||||
Share capital | Capital reserves | Less: Treasury shares | Special reserves | Surplus reserves | General reserves | Retained earnings | Other comprehensive income | |||
I. At end of last year | 4,802,648,511.00 | 5,366,097,594.66 | 47,076,242.71 | 2,401,324,255.50 | 31,271,171,559.60 | 139,994,580.19 | -94,241,765.21 | 43,934,070,978.45 | ||
II. At beginning of year | 4,802,648,511.00 | 5,366,097,594.66 | 47,076,242.71 | 2,401,324,255.50 | 31,271,171,559.60 | 139,994,580.19 | -94,241,765.21 | 43,934,070,978.45 | ||
III. Changes during the year | 31,323,255.07 | 2,602,166,402.68 | 6,766,939.37 | -543,593.49 | 2,639,713,003.63 | |||||
1.Total comprehensive income | 2,602,166,402.68 | 6,766,939.37 | -543,593.49 | 2,608,389,748.56 | ||||||
2. Capital contributed by owners and capital decreases | ||||||||||
3. Distribution of profit | ||||||||||
Distribution to owners | ||||||||||
4. Special reserves | 31,323,255.07 | 31,323,255.07 | ||||||||
(1) Pick-up in current period | 58,125,436.05 | 58,125,436.05 | ||||||||
(2) Used in current period | -26,802,180.98 | -26,802,180.98 | ||||||||
IV. At end of current period | 4,802,648,511.00 | 5,366,097,594.66 | 78,399,497.78 | 2,401,324,255.50 | 33,873,337,962.28 | 146,761,519.56 | -94,785,358.70 | 46,573,783,982.08 |
Prior period
In RMB Yuan
Items | Prior period | |||||||||
Equity attributable to owners | Minority interest | Total equity | ||||||||
Share capital | Capital reserves | Less: Treasury shares | Special reserves | Surplus reserves | General reserves | Retained earnings | Other comprehensive income | |||
I. At end of last year | 4,802,648,511.00 | 5,057,242,440.17 | 41,222,369.10 | 2,401,324,255.50 | 33,707,011,170.31 | 235,509,930.44 | -92,036,723.19 | 46,152,921,953.33 | ||
II. At beginning of year | 4,802,648,511.00 | 5,057,242,440.17 | - | 41,222,369.10 | 2,401,324,255.50 | 33,707,011,170.31 | 235,509,930.44 | -92,036,723.19 | 46,152,921,953.33 | |
III. Changes during the year | - | - | - | 31,431,730.08 | - | -2,326,487,434.31 | 22,567,848.13 | -4,021,667.24 | -2,276,509,523.34 | |
1.Total comprehensive income | -2,240,039,761.11 | 22,567,848.13 | -4,021,667.24 | -2,221,493,580.22 | ||||||
2. Capital contributed by owners and capital decreases | - | |||||||||
3. Distribution of profit | -86,447,673.20 | -86,447,673.20 | ||||||||
Distribution to owners | -86,447,673.20 | -86,447,673.20 | ||||||||
4. Special reserves | 31,431,730.08 | 31,431,730.08 | ||||||||
(1) Pick-up in current period | 36,229,412.78 | 36,229,412.78 | ||||||||
(2) Used in current period | -4,797,682.70 | -4,797,682.70 | ||||||||
IV. At end of current period | 4,802,648,511.00 | 5,057,242,440.17 | - | 72,654,099.18 | 2,401,324,255.50 | - | 31,380,523,736.00 | 258,077,778.57 | -96,058,390.43 | 43,876,412,429.99 |
8. Statement of changes in shareholders’ equity
In RMB Yuan
Items | Current period | |||||||
Share capital | Capital reserves | Less: Treasury shares | Special reserves | Surplus reserves | Retained earnings | Other comprehensive income | Total equity | |
I. At end of last year | 4,802,648,511.00 | 5,014,772,792.87 | 19,917,658.63 | 2,401,324,255.50 | 31,852,751,052.34 | 259,380,413.58 | 44,350,794,683.92 | |
Add: others | -354,897,932.62 | -354,897,932.62 | ||||||
II. At beginning of year | 4,802,648,511.00 | 5,014,772,792.87 | 19,917,658.63 | 2,401,324,255.50 | 31,497,853,119.72 | 259,380,413.58 | 43,995,896,751.30 | |
III. Changes during the year | 1,785,128.50 | 338,355,277.59 | 340,140,406.09 | |||||
1.Total comprehensive income | 338,355,277.59 | 338,355,277.59 | ||||||
2. Capital contributed by owners and capital decreases | ||||||||
The amount of shares paid into the owner's equity | ||||||||
3. Distribution of profit | ||||||||
Distribution to owners | ||||||||
4. Special reserves | 1,785,128.50 | 1,785,128.50 | ||||||
(1) Pick-up in current period | 23,380,155.36 | 23,380,155.36 | ||||||
(2) Used in current period | -21,595,026.86 | -21,595,026.86 | ||||||
IV. At end of current period | 4,802,648,511.00 | 5,014,772,792.87 | 21,702,787.13 | 2,401,324,255.50 | 31,836,208,397.31 | 259,380,413.58 | 44,336,037,157.39 |
Prior period
In RMB Yuan
Items | Prior period | |||||||
Share capital | Capital reserves | Less: Treasury shares | Special reserves | Surplus reserves | Retained earnings | Other comprehensive income | Total equity | |
I. At end of last year | 4,802,648,511.00 | 4,705,917,638.38 | 19,835,367.61 | 2,401,324,255.50 | 34,682,279,143.32 | 149,525,803.58 | 46,761,530,719.39 | |
II. At beginning of year | 4,802,648,511.00 | 4,705,917,638.38 | - | 19,835,367.61 | 2,401,324,255.50 | 34,682,279,143.32 | 149,525,803.58 | 46,761,530,719.39 |
III. Changes during the year | - | - | - | 6,116,128.10 | - | -1,454,929,039.17 | - | -1,448,812,911.07 |
1.Total comprehensive income | -1,368,481,365.97 | - | -1,368,481,365.97 | |||||
2. Capital contributed by owners and capital decreases | - | |||||||
The amount of shares paid into the owner's equity | ||||||||
3. Distribution of profit | -86,447,673.20 | -86,447,673.20 | ||||||
Distribution to owners | -86,447,673.20 | -86,447,673.20 | ||||||
4. Special reserves | 6,116,128.10 | 6,116,128.10 | ||||||
(1) Pick-up in current period | 23,037,668.82 | 23,037,668.82 | ||||||
(2) Used in current period | -16,921,540.72 | -16,921,540.72 | ||||||
IV. At end of current period | 4,802,648,511.00 | 4,705,917,638.38 | - | 25,951,495.71 | 2,401,324,255.50 | 33,227,350,104.15 | 149,525,803.58 | 45,312,717,808.32 |
III. CORPORATE INFORMATION
Chongqing Changan Automobile Company Limited (hereafter referred to as the “Company”) is a company limited by shares registered in Chongqing, People’s Republic of China. It was establish on 31 October 1996 with an indefinite business period. The ordinary A shares of Renminbi issued by the company and the B shares of domestically listed foreign shares have been listed on the Shenzhen Stock Exchange. Changan Group is headquartered at 260 Jianxin East Road, Jiangbei District, Chongqing, China. After the establishment of the company, the share capital and shareholding structure have undergone several changes. As of June 30, 2020, the company’s controlling shareholder China Changan Automobile Group Company Limited (hereinafter referred to as “China Changan”) and its wholly-owned subsidiary Zhonghui Futong (Hong Kong) Investment Company Limited held a total of ordinary shares of the company 1,082,165,183 shares with an equity ratio of 22.53%. China South Industries Group Co., Ltd. (hereinafter referred to as “China South Group”), the parent company of China Changan, and its wholly-owned subsidiary, South Industries International Holdings (Hong Kong) Company Limited, hold 1,003,625,399 ordinary shares of the company, with a 20.90% shareholding ratio. China Changan and W China South Group holds ordinary shares 2,085,790,582 in total with a shareholding ratio of 43.43%. The Company and its subsidiaries collectively refer to as the Group, and its main business activities are: the manufacturing and sales of automobiles (including cars), automobile engine products, and supporting parts. The holding company and ultimate holding company of the Company are China Changan and China South Group respectively. The scope of consolidation in the consolidated financial statement is determined based on control. For the consolidation scope of this year, please refer to Note VIII. |
IV. BASIS OF PREPERATION
V. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
According to the actual production and operation characteristics, the group formulated the specific accounting policies andaccounting estimates, mainly reflected in provision of accounts receivables (note 5 (9)), inventory valuation (Note 5 (10)),depreciation of fixed assets, intangible assets amortization (Note 5 (15) (18)), condition of capitalization of research and developmentexpense (Note 5 (18)) and revenue recognition and measurement (Note 5 (24)).
1. Statement of compliance with Accounting Standards for Business Enterprises
2. Accounting year
The financial statements present fairly and fully, the financial position of the Company as at 30 June 2020 and the financial resultsand the cash flows for the half year then ended in accordance with Accounting Standards for Business Enterprises.The accounting year of the Group is from 1 January to 31 December of each calendar year.
3. Functional currency
The accounting year of the Group is from 1 January to 31 December of each calendar year.The Group’s functional and reporting currency is the Renminbi (“RMB”). Unless otherwise stated, the unit of the currency is Yuan.Each entity in the Group determines its own functional currency in accordance with the operating circumstances. At the end of thereporting period, the foreign currency financial statements are translated into the reporting currency of the Company of RMB.
4. Business combination
The Group’s functional and reporting currency is the Renminbi (“RMB”). Unless otherwise stated, the unit of the currency is Yuan.Each entity in the Group determines its own functional currency in accordance with the operating circumstances. At the end of thereporting period, the foreign currency financial statements are translated into the reporting currency of the Company of RMB.
Business combinations are classified into business combinations involving entities under common control and business combinationsinvolving entities not under common control.
Business combination involving entities under common control A business combination involving entities under common control is a business combination in which all of the combining entities are ultimately controlled by the same party or parties both before and after the combination, and that control is not transitory. For a business combination involving entities under common control, the party which, on the combination date, obtains control of another entity participating in the combination is the acquiring party, while that other entity participating in the combination is a party being acquired. Combination date is the date on which the acquiring party effectively obtains control of the party being acquired. Assets and liabilities that are obtained by the acquiring party in a business combination involving entities under common control shall be measured at their carrying amounts at the combination date as recorded by the party being acquired. The difference between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination (or the aggregate face value of shares issued as consideration) shall be adjusted to capital reserve. If the capital reserve is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings. Business combination involving entities not under common control A business combination involving entities not under common control is a business combination in which all of the combining entities |
5. Consolidated financial statements
are not ultimately controlled by the same party or parties both before and after the combination. For a business combinationinvolving entities not under common control, the party that, on the acquisition date, obtains control of another entity participating inthe combination is the acquirer, while that other entity participating in the combination is the acquiree. Acquisition date is the date onwhich the acquirer effectively obtains control of the acquiree.
The acquirer shall measure the acquiree’s identifiable assets, liabilities and contingent liabilities acquired in the business combinationat their fair values on the acquisition date.
Goodwill is initially recognised and measured at cost, being the excess of the aggregate of the fair value of the considerationtransferred (or the fair value of the equity securities issued) and any fair value of the Group’s previously held equity interest in theacquiree over the Group’s interest in the fair value of the acquiree’s net identifiable assets. After initial recognition, goodwill ismeasured at cost less any accumulated impairment losses. Where the aggregate of the fair value of the consideration transferred (orthe fair value of the equity securities issued) and any fair value of the Group’s previously held equity interest in the acquiree is lowerthan the Group’s interest in the fair value of the acquiree’s net identifiable assets, the Group reassesses the measurement of the fairvalue of the acquiree’s identifiable assets, liabilities and contingent liabilities and the fair value of the consideration transferred (orthe fair value of the equity securities issued), together with the fair value of the Group’s previously held equity interest in theacquiree. If after that reassessment, the aggregate of the fair value of the consideration transferred (or the fair value of the equitysecurities issued) and the Group’s previously held equity interest in the acquiree is still lower than the Group’s interest in the fairvalue of the acquiree’s net identifiable assets, the Group recognise the remaining difference in profit or loss.
The scope of the consolidated financial statements, which include the financial statements of the Company and all of its subsidiaries,is determined on the basis of control. A subsidiary is an entity that is controlled by the Company (such as an enterprise, a deemedseparate entity, or a structured entity controlled by the Company).
In the preparation of the consolidated financial statements, the financial statements of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. When the current loss belong to minorities of the subsidiary exceeds the beginning equity of the subsidiary belong to minorities, the exceeded part will still deduct the equity belong to minorities. With respect to subsidiaries acquired through business combinations involving entities not under common control, the operating results and cash flows of the acquiree should be included in the consolidated financial statements, from the day that the Group gains control, till the Group ceases the control of it. While preparing the consolidated financial statements, the acquirer should adjust the subsidiary’s financial statements, on the basis of the fair values of the identifiable assets, liabilities and contingent liabilities recognized on the acquisition date. With respect to subsidiaries acquired through business combinations involving entities under common control, the operating results and cash flows of the acquiree should be included in the consolidated financial statements from the beginning of the period in which the combination occurs. |
If the changes of relevant facts and circumstances will result in the changes of one or more control elements, then the Group should reassess whether it has taken control of the investee. |
6. Joint venture arrangement classification and joint operation
Any joint venturer shall recognize the following items related to its share of benefits in the joint operation and conduct accounting treatment in accordance with relevant accounting standards for business enterprises: assets it solely holds and its share of jointly-held assets based on its percentage; liabilities it solely assumes and its share of jointly-assumed liabilities based on its percentage; incomes from sale of output enjoyed by it from the joint operation; incomes from sale of output from the joint operation based on its percentage; and separate costs and costs for the joint operation based on its percentage. |
7. Cash and cash equivalents
8. Foreign currency translation
Cash comprises cash on hand and bank deposits which can be used for payment at any time; Cash equivalents are short-term, highlyliquid investments held by the Group, that are readily convertible to known amounts of cash and which are subject to an insignificantrisk of changes in value.
The Group translates the amount of foreign currency transactions occurred into functional currency.
The foreign currency transactions are recorded, on initial recognition in the functional currency, by applying to the foreign currency amount at the spot exchange rate on the transaction dates. Foreign currency monetary items are translated using the spot exchange rate quoted by the People’s Bank of China at the balance sheet date. The exchange gains or losses arising from occurrence of transactions and exchange of currencies, except for those relating to foreign currency borrowings specifically for construction and acquisition of fixed assets capitalized, are dealt with in the profit and loss accounts. Non-monetary foreign currency items measured at historical cost remain to be translated at the spot exchange rate prevailing on the transaction date, and the amount denominated in the functional currency should not be changed. Non-monetary foreign currency items measured at fair value should be translated at the spot exchange rate prevailing on the date when the fair values are determined. The exchange difference thus resulted should be charged to the current income or other comprehensive income account of the current period. When preparing consolidated financial statements, the financial statements of the subsidiaries presented in foreign currencies are translated into Renminbi as follows: asset and liability accounts are translated into Renminbi at exchange rates ruling at the balance sheet date; shareholders’ equity accounts other than retained profits are translated into Renminbi at the applicable exchange rates ruling at the transaction dates; income and expense in income statement are translated into Renminbi at spot exchange rates on transaction occurrence; total difference between translated assets and translated liabilities and shareholders’ equity is separately listed as “foreign currency exchange differences” below retained profits. The translation difference arising from the settlement of oversea |
Foreign currency cash flows and the cash flows of foreign subsidiaries should be translated using the average exchange rate prevailing on the transaction month during which the cash flows occur. The amount of the effect on the cash arising from the change in the exchange rate should be separately presented as an adjustment item in the cash flow statement. |
9. Financial instruments
When the Group no longer reasonably expects to be able to fully or partially recover the contractual cash flows of financial assets, the Group directly writes down the book balance of the financial asset. Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts; and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously. Transfer of financial assets If the Group transfers substantially all the risks and rewards of ownership of the financial asset, the Group derecognizes the financial asset; and if the Group retains substantially all the risks and rewards of the financial asset, the Group does not derecognize the financial asset. If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset, the Group determines whether it has retained control of the financial asset. In this case: (i) if the Group has not retained control, it derecognizes the financial asset and recognize separately as assets or liabilities any rights and obligations created not retained in the transfer; (ii) if the Group has retained control, it continues to recognize the financial asset to the extent of its continuing involvement in the transferred financial asset and recognizes an associated liability. |
10. Inventories
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The impairment provision should be made on a basis of each item of inventories according to the difference between cost and net realizable value. For large numbers of inventories at relatively low unit prices, the provision for loss on decline in value of inventories should be made by category. |
11. Contract assets and contract liabilities
Contract assets Contract assets refer to the right to receive consideration for the transfer of goods or services to customers, and this right depends on factors other than the passage of time. For the determination method and accounting treatment method of the expected credit loss of the contract assets of the Group, please refer to the notes V.9. Contract liabilities Contract liabilities refer to the obligation to transfer goods or services to customers for the consideration received or receivable from customers, such as the payment received before the transfer of promised goods or services. |
12. Assets related to contract costs
If the book value of assets related to contract costs is higher than the difference between the following two items, the Group will make provision for impairment of the excess part and recognize it as an asset impairment loss: (1) The remaining consideration that the enterprise is expected to obtain due to the transfer of goods or services related to the asset; (2) Estimate the costs that will be incurred for the transfer of the relevant goods or services. If the depreciation factors of the previous period have changed, and the difference of (1) minus (2) is higher than the book value of the asset, the original provision for asset depreciation should be reversed and included in the current profit and loss, but reversed The subsequent book value of the asset should not exceed the book value of the asset on the date of reversal under the assumption that no impairment provision is made. |
13. Long-term equity investments
The long-term investments are initially recorded at costs on acquisition. Long-term investments acquired from business combination under common control shall be initially measured at the carrying value of the held interest of the party being acquired; The difference between the initial measured amounts and the book value of consideration, adjust the capital reserves (if the capital reserve is insufficient to be offset, retained earnings should be adjusted); Long-term investments acquired from business combination not under common control shall be initially measured at the cost (or, the sum of the cost and the carrying value of the previously held equity interest in the acquire for the business combination achieved by stages), which include the fair value of the consideration paid, the liabilities beard and the fair value of issued equity instrument; the other comprehensive income produced from the investment before the acquisition should be transferred into the current year investment income on disposal.Long-term investments acquired not from business combination are initially measured at 1)the consideration together with the cost necessary incurred; 2) the fair value of the equity instruments; and 3) the consideration agreed in the investment agreement by the investors, otherwise the agreed consideration were not fair. The Company adopted cost method to account for long-term investments in the subsidiaries in the separate financial statements of the Company. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Under cost method, the long-term equity investment is valued at the cost of the initial investment. The cost of long-term equity investment should be adjusted in case of additional investment or disinvestments. When cash dividends or profits are declared by the invested enterprise is recognized as investment income in current period. The equity method is applied to account for long-term equity investments, when the Group has jointly control, or significant influence on the investee enterprise. Joint control is the contractually agreed sharing of control over an economic activity, and exists only when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control (the venturers). Significant influence is the power to participate in the financial and operating policy decisions of an economic activity but is not control or joint control over those policies. Under equity method, when the initial investment cost of a long-term equity investment exceeds the investing enterprise’s interest in |
Under equity method, the Group recognizes its share of post-acquisition equity in the investee enterprise for the current period as a gain or loss on investment, and also increases or decreases the carrying amount of the investment. When recognizing its share in the net profit or loss of the investee entities, the Group should, based on the fair values of the identifiable assets of the investee entity when the investment is acquired, in accordance with the Group’s accounting policies and periods, after eliminating the portion of the profits or losses, arising from internal transactions with joint ventures and associates, attributable to the investing entity according to the share ratio (but losses arising from internal transactions that belong to losses on the impairment of assets, should be recognized in full), recognize the net profit of the investee entity after making appropriate adjustments. The book value of the investment is reduced to the extent that the Group’s share of the profit or cash dividend declared to be distributed by the investee enterprise. However, the share of net loss is only recognized to the extent that the book value of the investment is reduced to zero, except to the extent that the Group has incurred obligations to assume additional losses. The Group shall adjust the carrying amount of the long-term equity investment for other changes in owners’ equity of the investee enterprise (other than net profits or losses), and include the corresponding adjustments in equity, which should be realized through profit or loss in subsequent settlement of the respective long-term investment. On settlement of a long-term equity investment, the difference between the proceeds actually received and the carrying amount shall be recognized in the income statement for the current period. As to other comprehensive income recognized based on measurement of the original equity investment by employing the equity method, accounting treatment shall be made on the same basis as would be required if the invested entity had directly disposed of the assets or liabilities related thereto when measurement by employing the equity method is terminated. As to any change in owners' equity of the invested entity other than net profit or loss, other comprehensive income and profit distribution, the investing party shall be transferred to the income statement for the current period. If the remaining equities still be measured under the equity method, accumulative change previously recorded in other comprehensive income shall be transferred to current profit or loss, in measurement on the same basis as the invested entity had directly disposed of the assets or liabilities related thereto. The income or loss recorded in the equity directly should been transferred to the current income statement on settlement of the equity investment on the disposal proportion. |
14. Investment property
The initial measurement of the investment property shall be measured at its actual cost. The follow-up expenses pertinent to an investment property shall be included in the cost of the investment property, if the economic benefits pertinent to this real estate are likely to flow into the enterprise, and, the cost of the investment property can be reliably measured. Otherwise, they should be included in the current profits and losses upon occurrence. The group adopts the cost method to make follow-up measurement to the investment property. The buildings are depreciated under straight-line method. |
15. Fixed assets
Fixed assets are initially measured at actual cost on acquisition. The cost of a purchased fixed asset comprises the purchase price, relevant taxes and any directly attributable expenditure for bringing the asset to working condition for its intended use, such as delivery and handling costs, installation costs and other surcharges. |
Fixed assets are depreciated on straight-line basis. The estimated useful lives, estimated residual values and annual depreciation ratesfor each category of fixed assets are as follows:
Category | Deprecation period | Residual rate (%) | Yearly deprecation rate (%) |
Buildings | 20 to 35 years | 3% | 2.77%-4.85% |
Machinery (Note) | 5 to 20 years | 3% | 4.85%-19.40% |
Vehicles | 4 to 10 years | 3% | 9.70%-24.25% |
Others | 3 to 21 years | 3% | 4.62%-32.33% |
Note: the molds in machinery should be depreciated in units-of-production method. |
16. Construction in progress
The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at least at theend of each year and makes adjustments if necessary.
The cost of construction in progress is determined according to the actual expenditure for the construction, including all necessaryconstruction expenditure incurred during the construction period, borrowing costs that should be capitalized before the constructionreaches the condition for intended use and other relevant expenses.
Construction in progress is transferred to fixed assets when the asset is ready for its intended use. |
17. Borrowing costs
The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized, otherwise the borrowing costs are expensed in the period during which they are incurred. A qualifying asset is an asset (an item of |
The capitalization of borrowing costs is as part of the cost of a qualifying asset shall commence when: 1) expenditure for the asset is being incurred; 2) borrowing costs are being incurred; and 3) activities that are necessary to prepare the asset for its intended use or sale are in progress. Capitalization of borrowing costs shall be ceased when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale have been done. And subsequent borrowing costs are recognized in the income statement. During the capitalization period, the amount of interest to be capitalized for each accounting period shall be determined as follows: 1) where funds are borrowed for a specific-purpose, the amount of interest to be capitalized is the actual interest expense incurred on that borrowing for the period less any bank interest earned form depositing the borrowed funds before being used on the asset or any investment income on the temporary investment of those funds; 2) where funds are borrowed for a general-purpose, the amount of interest to be capitalized on such borrowings is determined by applying a weighted average interest rate to the weighted average of the excess amounts of cumulative expenditure on the asset over and above the amounts of specific-purpose borrowings. During the construction or manufacture of assets that are qualified for capitalization, if abnormal discontinuance, other than procedures necessary for their reaching the expected useful conditions, happens, and the duration of the discontinuance is over three months, the capitalization of the borrowing costs is suspended. Borrowing costs incurred during the discontinuance are recognized as expense and charged to the income statement of the current period, till the construction or manufacture of the assets resumes. |
18. Intangible assets
Land use rights that are purchased or acquired through the payment of land use fees are accounted for as intangible assets. With respect to self-developed properties, the corresponding land use right and buildings should be recorded as intangible and fixed assets separately. As to the purchased properties, if the reasonable allocation of outlays cannot be made between land and buildings, all assets purchased will be recorded as fixed assets. The cost of a finite useful life intangible asset is amortized using the straight-line method during the estimated useful life. For an intangible asset with a finite useful life, the Group reviews the estimated useful life and amortization method at least at the end of each year and adjusts if necessary. The Group should test an intangible asset with an indefinite useful life for impairment by comparing its recoverable amount with its carrying amount annually, whenever there is an indication that the intangible asset may be impaired. An intangible asset with an indefinite useful life shall not be amortized. The useful life of an intangible asset that is not being amortised shall be reviewed each period to determine whether events and circumstances continue to support an indefinite useful life assessment for that asset. If there are indicators that the intangible asset has finite useful life, the accounting treatment would be in accordance with the intangible asset with finite useful life. |
19. Research and development expenditures
The expenditures in research stage are charged to the current income on occurrence. The expenditures in development stage are capitalized that should meet all the conditions of (a) it is technically feasible to finish intangible assets for use or sale; (b) it is intended to finish and use or sell the intangible assets; (c) the usefulness of methods for intangible assets to generate economic benefits shall be proved, including being able to prove that there is a potential market for the products manufactured by applying the intangible assets or there is a potential market for the intangible assets itself or the intangible assets will be used internally; (d) it is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with the support of sufficient technologies, financial resources and other resources; and (e) the development expenditures of the intangible assets can be reliably measured. Expenses incurred that don’t meet the above requirements unanimously should be expensed in the income statement of the reporting period. The Group discriminates between research and development stage with the condition that the project research has been determined, in which the relevant research complete all the fractionalization of products measurements and final product scheme under final approval of management. The expenditures incurred before project-determination stage is charged to the current income, otherwise it is recorded as development cost. |
20. Impairment of assets
The recoverable amount of an asset is the higher of its fair value less costs to sell and the present value of the future cash flow expected to be derived from the asset. The Group estimates the recoverable amount on an individual basis. If it is not possible to estimate the recoverable amount of the individual asset, the Group determines the recoverable amount of the asset group to which the asset belongs. Identification of an asset group is based on whether major cash flows generated by the asset group are independent of the cash flows from other assets or asset groups. When the recoverable amount of an asset or asset group is less than its carrying amount, the carrying amount is reduced to the recoverable amount. The impairment of asset is provided for and the impairment loss is recognized in the income statement for the current period. For the purpose of impairment testing, the carrying amount of goodwill acquired in a business combination is allocated, on a reasonable basis, to related asset groups; if it is impossible to allocate to the related asset groups, it is allocated to each of the related sets of asset groups. Each of the related asset groups or related sets of asset groups is a group or set of asset group that is able to benefit from the synergies of the business combination and shall not be larger than a reportable segment determined by the Group. When an impairment test is conducted on an asset group or a set of asset groups that contains goodwill, if there is any indication of impairment, the Group firstly tests the asset group or the set of asset groups excluding the amount of goodwill allocated for impairment, i.e., it determines and compares the recoverable amount with the related carrying amount and then recognize impairment loss if any. Thereafter, the Group tests the asset group or set of asset groups including goodwill for impairment, the carrying amount (including the portion of the carrying amount of goodwill allocated) of the related asset group or set of asset groups is compared to its recoverable amount. If the carrying amount of the asset group or set of asset groups is higher than its recoverable amount, the amount of the impairment loss is firstly eliminated by and amortized to the book value of the goodwill included in the asset group or set of asset groups, and then eliminated by the book value of other assets according to the proportion of the book values of assets other than the goodwill in the asset group or set of asset groups. Once the above impairment loss is recognized, it cannot be reversed in subsequent periods. |
21. Long-term deferred expenses
22. Employee benefits
The long-term deferred expenses represent the payment for the improvement on buildings and other expenses, which have been paidand should be deferred in the following years. Long-term deferred expenses are amortized on the straight-line basis over the expectedbeneficial period and are presented at actual expenditure net of accumulated amortization.Employee benefits refer to all kinds of remunerations or compensation made by enterprises to their employees in exchange for
23. Provisions
services provided by the employees or termination of labor relation. Employee compensation includes short-term compensation andpost-employment benefits. The benefits offered by enterprises to the spouse, children, the dependents of the employee, the familymember of deceased employee and other beneficiaries are also employee compensation.
Short-term employee salaries
During the accounting period of employee rendering service, the actural employees salaries and are charged to the statement of profitor loss as they become payable in balance sheet.
Post-employment benefits (Defined contribution plans)
The employees of the Group participate in pension insurance, which is managed by local government and the relevant expenditure, isrecognized, when incurred, in the costs of relevant assets or the profit and loss for the current period.
Post-employment benefits (Defined benefit plan)
The Group operates a defined benefit pension plan which requires contributions to be made to a separately administered fund. Thebenefits are unfunded. The cost of providing benefits under the defined benefit plan is determined using the projected unit creditactuarial valuation method.
Remeasurements arising from defined benefit pension plans are recognised immediately in the consolidated statement of financialposition with a corresponding debit or credit to retained profits through other comprehensive income in the period in which theyoccur. Remeasurements are not reclassified to profit or loss in subsequent periods.
Past service costs are recognised in profit or loss at the earlier of: the date of the plan amendment or curtailment; and the date that theGroup recognises restructuring-related costs.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group recognises thefollowing changes in the net defined benefit obligation under administrative expenses in the consolidated statement of profit or lossby function: ?service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routinesettlements;net interest expense or income.
Termination benefits
Termination benefits are recognised at the earlier of when the Group can no longer withdraw the offer of those benefits and when theGroup recognises restructuring costs involving the payment of termination benefits.An obligation related to a contingency shall be recognised by the Group as a provision when all of the following conditions aresatisfied, except for contingent considerations and contingent liabilities assumed in a business combination not involving entities
24. Share-based payments
under common control:
1) the obligation is a present obligation of the Group;
2) it is probable that an outflow of economic benefits from the Group will be required to settle the obligation;
3) a reliable estimate can be made of the amount of the obligation.
Contingent liabilities are initially measured according to the current best estimate for the expenditure necessary for the performanceof relevant present obligations, with comprehensive consideration given to factors such as the risks, uncertainty and time value ofmoney relating to contingencies. The book value of the contingent liabilities should be reviewed at each balance sheet date. If there isobjective evidence showing that the book value cannot reflect the present best estimate, the book value should be adjusted accordingto the best estimate.
The contingent liabilities of the acquiree acquired in the business combination involving entities not under common control aremeasured at fair value upon initial recognition. After initial recognition, the balance of the amount recognized according to theestimated liabilities and the amount initially recognized after deducting the accumulated amortization determined by the revenuerecognition principle is subsequently measured at the higher of the two.
The share-based payments shall consist of equity-settled share-based payments and cash-settled share-based payments. The term"equity-settled share-based payment" refers to a transaction in which an enterprise grants shares or other equity instruments as aconsideration in return for services.
The equity-settled share-based payment in return for employee services shall be measured at the fair value of the equity instruments granted to the employees. As to an equity-settled share-based payment in return for services of employees, if the right may be exercised immediately after the grant, the fair value of the equity instruments shall, on the date of the grant, be included in the relevant cost or expense and the capital reserves shall be increased accordingly. As to a equity-settled share-based payment in return for employee services, if the right cannot be exercised until the vesting period comes to an end or until the prescribed performance conditions are met, then on each balance sheet date within the vesting period, the services obtained in the current period shall, based on the best estimate of the number of vested equity instruments, be included in the relevant costs or expenses and the capital reserves at the fair value of the equities instruments on the date of the grant. The fair value is determined using Black-Scholes model (Note 13). Within the vesting period or before the prescribed performance conditons are met, the relevant costs or expenses and capital reserves shall be determined and increased based on the best estimate of the number of vested equity instruments on each balance sheet date. For awards that do not ultimately vest because non-market performance and/or service conditions have not been met, no expense is recognised. Where awards include a market or non-vesting condition, the transactions are treated as vesting irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied. Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been modified, if the original terms of the award are met. In addition, an expense is recognised for any modification that increases the total |
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. This includes any award where non-vesting conditions within the control of either the Group or the employee are not met. However, if a new award is substituted for the cancelled award, and is designated as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award, as described in the previous paragraph. |
25. Revenue generated from contracts with customers
Reward Points Program The Group grants customers reward points when selling goods or providing services, and customers can exchange reward points for free or discounted goods or services. The reward points program provides customers with a major right. The Group regards it as a single performance obligation, and allocates part of the transaction price to reward points in proportion to the stand-alone selling price of the goods or services provided and the reward points. Revenue is recognized when the points are exchanged for control of goods or services or when the points expire. Principal/agent For the Group to lead a third party to provide services to customers on behalf of the Group, the Group has the right to independently determine the price of the goods or services traded, that is, the Group can control the relevant goods before transferring the goods to the customers, so the Group is the main responsible person , And recognize revenue based on the total consideration received or receivable. Otherwise, the Group acts as an agent and recognizes revenue based on the amount of commission or handling fee expected to be entitled to receive. This amount shall be the net amount of the total consideration received or receivable minus the price payable to other related parties, or based on The established commission amount or ratio is determined. |
26. Government grants
A government grant which is specified by the government documents to be used to purchase and construct the long-term assets shall be recognized as the government grant related to assets. A government grant which is not specified by the government documents shall be judged based on the basic conditions to obtain the government grant. The one whose basic condition was to purchase and construct the long-term assets shall be recognized as the government grant related to assets. The Group uses the gross method to account for government grants. Government grants related to income to be used as compensation for future expenses or losses shall be recognized as deferred income and shall be charged to the current profit or loss or be used to write down the relevant loss, during the recognition of the relevant cost expenses or losses; or used as compensation for relevant expenses or losses already incurred by enterprises shall be directly charged to the profit and loss account in the current period or used to write down the relevant cost. The government grants related to assets shall be used to write down the book value of the relevant assets or be recognized as deferred income. The government grants related to assets, recognized as deferred income, shall be charged to the profit and loss reasonably and systematically in stages over the useful lives of the relevant assets. The government grants measured at nominal amount shall be |
27. Income taxes
directly charged to the current profit and loss. The remaining book value of the government grants related to assets should becharged to the profit and loss account in the current period when the relative assets sold, transferred, disposed or damaged.
Income tax comprises current and deferred tax. Income tax is recognized as an income or an expense and include in the incomestatement for the current period, except to the extent that the tax arises from a business combination or if it relates to a transaction orevent which is recognized directly in equity.
Current income tax liabilities or assets for the current and prior periods, are measured at the amount expected to be paid (orrecovered) according to the requirements of tax laws.
For temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts, andtemporary differences between the carrying amounts and the tax bases of items, the tax bases of which can be determined for taxpurposes, but which have not been recognized as assets and liabilities, deferred taxes are provided using the liability method.
A deferred tax liability is recognized for all taxable temporary differences, except:
(1) to the extent that the deferred tax liability arises from the initial recognition of goodwill or the initial recognition of an asset
or liability in a transaction which contains both of the following characteristics: the transaction is not a business combinationand at the time of the transaction, it affects neither the accounting profit nor taxable profit or loss.
(2) in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests injointly-controlled enterprises, where the timing of the reversal of the temporary differences can be controlled and it is probable thatthe temporary differences will not reverse in the foreseeable future.
A deferred tax asset is recognized for deductible temporary differences, carry forward of unused tax credits and unused tax losses, tothe extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carryforward of unused tax credits and unused tax losses can be utilized except:
(1) where the deferred tax asset relating to the deductible temporary differences arises from the initial recognition of an asset or
liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accountingprofit nor taxable profit or loss; and
(2) in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, deferred tax assets are only recognized to the extent that it is probable that the temporary differences will reverse inthe foreseeable future and taxable profit will be available against which the temporary differences can be utilized.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period whenthe asset is realized or the liability is settled, according to the requirements of tax laws. The measurement of deferred tax assets anddeferred tax liabilities reflects the tax consequences that would follow from the manner in which the Group expects at the balance
28. Leases
sheet date, to recover the assets or settle the liabilities.
At the balance sheet date, the Group reviews the book value of deferred tax assets. If it is probable that sufficient taxable incomecannot be generated to use the tax benefits of deferred tax assets, the book value of deferred tax assets should be reduced. When it isprobable that sufficient taxable income can be generated, the amount of such reduction should be reversed. When it is probable thatsufficient taxable income can be generated, the amount of such reduction should be reversed.
When the following conditions are met at the same time, the deferred tax assets and deferred tax liabilities are listed at the net amountafter offset: the legal right to settle the current income tax assets and current income tax liabilities at the net amount; the deferred taxassets and deferred tax liabilities are related to the income tax levied by the same tax collection and management department on thesame taxable subject or different taxpaying subjects However, in the future, during each period when the significant deferred taxassets and deferred tax liabilities are reversed, the tax payer involved intends to settle the current income tax assets and currentincome tax liabilities with net amount or obtain assets and pay off debts at the same time.
A finance lease is a lease that transfers in substance all the risks and rewards incident to ownership of an asset. An operating lease is alease other than a finance lease.
The Group recording the operating lease as a lessee Lease payments under an operating lease are recognized by a lessee on a straight-line basis over the lease term, and either included in the cost of another related asset or charged to the income statement for the current period. The contingent rents shall be recorded in the profits and losses of the period in which they actually arise. The Group recording the operating lease as a lessor Rental income from operating leases is recognized by the lesser in the income statement on a straight-line basis over the lease term. The contingent rents shall be recorded in the profits and losses of the period in which they actually arise. |
29. Profit distribution
30. Safety fund
The cash dividend of the Group is recognized as liabilities after the approval of general meeting of stockholders.The safety fund extracted by the Group shall be recognized as the cost of the related products or income statement, while berecognized as special reserve. When using safety fund, it shall be distinguished whether it will form fixed assets or not. Theexpenditure shall write down the special reserve; the capital expenditure shall be recognized as fixed assets when meet the expectedconditions for use, and write down the special reserve while recognizing accumulated depreciation with the same amount.
31. Fair value measurement
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: Level 1 – based on quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 – based on valuation techniques for which the lowest level input that is significant to the fair value measurement is observable, either directly or indirectly; Level 3 – based on valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. |
32. Significant accounting judgments and estimates
Deferred tax assets The Group should recognize the deferred income tax assets arising from all the existing unutilized tax deficits and deductible temporary differences to the extent of the amount of the taxable income which it is most likely to obtain and which can be deducted from the deductible temporary differences. Enormous accounting judgments, as well as the tax planning are compulsory for management to estimate the time and amount of prospective taxable profits and thus determine the appropriate amount of the deferred tax assets concerned. Warranty The Group provides warranties on automobile and undertakes to repair or replace items that fail to perform satisfactorily based on certain pre-determined conditions. Factors that influence estimation of related warranty claim include: 1) renewal of laws and regulations; 2) quality promotion of Group products; 3) change of parts and labour cost. In general, the Group records warranty based on selling volume and estimated compensatory unit warranty cost, deduction multi-agreed compensation from suppliers. As at balance sheet day, the Group launches retrospective analysis on warranty carrying amount in consideration of accrual warranty payment during relative warranty period, and recent trends of product renovation and replacement, and further adjustment if necessary. Any increase or decrease in the provision would affect profit or loss in future years. Depreciation and amortization The Group’s management determines the estimated useful lives and residual value of fixed assets and intangible assets. This estimate is based on the historical experience of actual useful lives of fixed assets and intangible assets of similar nature and functions. Management will increase the depreciation and amortization charges where useful lives are less than previously estimated. |
33. Changes in accounting policies and estimates
In 2017, the Ministry of Finance issued the revised "Accounting Standards for Business Enterprises No. 14-Revenue" (referred to as the "New Revenue Standards"). Since January 1, 2020, the Group will conduct accounting treatment in accordance with the newly revised standards. According to the convergence regulations, the comparable period information will not be adjusted. The difference between the implementation of the new standards and the current standards on the first day will be retrospectively adjusted for retained earnings at the beginning of the reporting period . According to the time set by the Ministry of Finance, the company will implement the new revenue standards from January 1, 2020. According to the convergence regulations, no adjustment will be made to the comparable period information. The new revenue standard establishes a new revenue recognition model for regulating revenue generated from contracts with customers. According to the new revenue standards, the method of revenue recognition should reflect the entity's transfer of goods or services to customers, and the amount of revenue should reflect the amount of consideration that the entity expects to be entitled to because of the transfer of these goods or services to customers. At the same time, the new revenue standard also regulates the judgments and estimates required for each link of revenue recognition. The Group only adjusts the cumulative impact of contracts that have not been completed on January 1, 2020. For contract changes or changes that occurred before January 1, 2020, the Group adopts a simplified approach to all contracts that are subject to contract changes. The final arrangement is to identify the fulfilled and unfulfilled performance obligations, determine the transaction price, and allocate the transaction price between the fulfilled and unfulfilled performance obligations. The impact of the implementation of the new revenue standard on the 2020 financial statements is as follows: Consolidated balance sheet In RMB Yuan | |||||
Account | December 31, 2019 | January 01, 2020 | Adjustment | ||
Current assets: | |||||
Cash | 10,066,171,353.48 | 10,066,171,353.48 | |||
Transactional financial assets | 2,419,476,200.00 | 2,419,476,200.00 | |||
Notes receivable | 26,805,635,587.19 | 26,805,635,587.19 | |||
Accounts receivable | 838,314,076.82 | 838,314,076.82 | |||
Prepayments | 623,801,896.07 | 623,801,896.07 | |||
Other receivables | 3,731,755,992.46 | 269,534,090.37 | -3,462,221,902.09 | ||
Inventories | 3,375,441,488.37 | 3,375,441,488.37 | |||
Contract assets | 3,462,221,902.09 | 3,462,221,902.09 | |||
Other current assets | 1,746,120,128.04 | 1,746,120,128.04 | |||
Total current assets | 49,606,716,722.43 | 49,606,716,722.43 | |||
Non-current assets: | |||||
Long-term receivables | 11,008,336,989.09 | 11,008,336,989.09 |
Other equity investment | 734,506,100.00 | 734,506,100.00 | |
Investment properties | 7,102,849.72 | 7,102,849.72 | |
Fixed assets | 26,939,490,554.19 | 26,939,490,554.19 | |
Construction in progress | 1,729,803,028.43 | 1,729,803,028.43 | |
Intangible assets | 5,209,619,313.49 | 5,209,619,313.49 | |
Devlopment expenditure | 814,745,464.20 | 814,745,464.20 | |
Goodwill | 9,804,394.00 | 9,804,394.00 | |
Long-term deferred expenses | 14,327,639.90 | 14,327,639.90 | |
Deferred tax assets | 1,542,600,534.93 | 1,542,600,534.93 | |
Total non-current assets | 48,010,336,867.95 | 48,010,336,867.95 | |
Total assets | 97,617,053,590.38 | 97,617,053,590.38 | |
Current liabilities: | |||
Short-term loans | 229,580,000.00 | 229,580,000.00 | |
Notes payable | 13,430,543,294.23 | 13,430,543,294.23 | |
Accounts payable | 18,905,725,271.50 | 18,905,725,271.50 | |
Advances from customers | 2,315,641,685.78 | -2,315,641,685.78 | |
Contract liabilities | 2,315,641,685.78 | 2,315,641,685.78 | |
Payroll payable | 1,046,335,781.91 | 1,046,335,781.91 | |
Taxes payable | 889,092,442.80 | 889,092,442.80 | |
Other payables | 4,809,918,141.45 | 4,809,918,141.45 | |
Other current liabilities | 4,253,942,761.77 | 4,253,942,761.77 | |
Total current liabilities | 45,880,779,379.44 | 45,880,779,379.44 | |
Non-current liabilities: | |||
Long-term loans | 55,300,000.00 | 55,300,000.00 | |
Long-term payable | 857,356,423.71 | 857,356,423.71 | |
Long term payroll payable | 45,932,000.00 | 45,932,000.00 | |
Estimated liabilities | 3,352,580,839.28 | 3,352,580,839.28 | |
Deferred earnings | 3,194,291,079.21 | 3,194,291,079.21 | |
Deferred tax liabilities | 296,742,890.29 | 296,742,890.29 | |
Total non-current liabilities | 7,802,203,232.49 | 7,802,203,232.49 | |
Total liabilities | 53,682,982,611.93 | 53,682,982,611.93 | |
Owners’ equity: | |||
Share capital | 4,802,648,511.00 | 4,802,648,511.00 | |
Capital reserves | 5,366,097,594.66 | 5,366,097,594.66 |
Other Comprehensive Income | 139,994,580.19 | 139,994,580.19 | |
Special reserves | 47,076,242.71 | 47,076,242.71 | |
Surplus reserves | 2,401,324,255.50 | 2,401,324,255.50 | |
Retained earnings | 31,271,171,559.60 | 31,271,171,559.60 | |
Equity attributable to owners | 44,028,312,743.66 | 44,028,312,743.66 | |
Minority interests | -94,241,765.21 | -94,241,765.21 | |
Total equity | 43,934,070,978.45 | 43,934,070,978.45 | |
Total liabilities and owener’s equity | 97,617,053,590.38 | 97,617,053,590.38 |
Balance sheet 单位:元 | |||||
Account | December 31, 2019 | January 01, 2020 | Adjustment | ||
Current assets: | |||||
Cash | 6,563,020,335.56 | 6,563,020,335.56 | |||
Transactional financial assets | 184,245,000.00 | 184,245,000.00 | |||
Notes receivable | 25,837,326,483.09 | 25,837,326,483.09 | |||
Accounts receivable | 5,094,270,365.72 | 5,094,270,365.72 | |||
Prepayments | 403,105,316.24 | 403,105,316.24 | |||
Other receivables | 2,597,314,344.40 | 941,161,145.80 | -1,656,153,198.60 | ||
Inventories | 1,735,570,691.28 | 1,735,570,691.28 | |||
Contract assets | 1,656,153,198.60 | 1,656,153,198.60 | |||
Other current assets | 798,430,035.62 | 798,430,035.62 | |||
Total current assets | 43,213,282,571.91 | 43,213,282,571.91 | |||
Non-current assets: | |||||
Long-term equity investments | 16,052,319,271.82 | 16,052,319,271.82 | |||
Other equity investment | 724,309,400.00 | 724,309,400.00 | |||
Fixed assets | 20,301,231,002.41 | 20,301,231,002.41 | |||
Construction in progress | 1,545,211,000.22 | 1,545,211,000.22 | |||
Intangible assets | 4,030,438,649.57 | 4,030,438,649.57 | |||
Development expenditure | 431,774,377.27 | 431,774,377.27 | |||
Long-term deferred expenses | 9,719,259.84 | 9,719,259.84 | |||
Deferred tax assets | 1,318,884,054.48 | 1,318,884,054.48 | |||
Total non-current assets | 44,413,887,015.61 | 44,413,887,015.61 | |||
Total assets | 87,627,169,587.52 | 87,627,169,587.52 |
Current liabilities: | |||
Short-term loans | 29,580,000.00 | 29,580,000.00 | |
Notes payable | 11,983,445,725.06 | 11,983,445,725.06 | |
Accounts payable | 15,601,432,751.74 | 15,601,432,751.74 | |
Advances from customers | 1,870,992,349.08 | -1,870,992,349.08 | |
Contract liabilities | 1,870,992,349.08 | 1,870,992,349.08 | |
Payroll payable | 641,340,149.30 | 641,340,149.30 | |
Taxes payable | 453,619,905.66 | 453,619,905.66 | |
Other payables | 4,301,257,819.04 | 4,301,257,819.04 | |
Other current liabilities | 3,400,065,879.02 | 3,400,065,879.02 | |
Total current liabilities | 38,281,734,578.90 | 38,281,734,578.90 | |
Non-current liabilities: | |||
Long-term loans | 55,300,000.00 | 55,300,000.00 | |
Long-term payable | 285,768,478.89 | 285,768,478.89 | |
Long term payroll payable | 22,747,000.00 | 22,747,000.00 | |
Estimated liabilities | 2,413,434,397.36 | 2,413,434,397.36 | |
Deferred earnings | 2,135,615,106.85 | 2,135,615,106.85 | |
Deferred tax liabilities | 81,775,341.60 | 81,775,341.60 | |
Total non-current liabilities | 4,994,640,324.70 | 4,994,640,324.70 | |
Total liabilities | 43,276,374,903.60 | 43,276,374,903.60 | |
Owners' equity: | |||
Share capital | 4,802,648,511.00 | 4,802,648,511.00 | |
Capital reserves | 5,014,772,792.87 | 5,014,772,792.87 | |
Other comprehensive income | 259,380,413.58 | 259,380,413.58 | |
Special reserves | 19,917,658.63 | 19,917,658.63 | |
Surplus reserves | 2,401,324,255.50 | 2,401,324,255.50 | |
Retained earnings | 31,852,751,052.34 | 31,852,751,052.34 | |
Total owners' equity | 44,350,794,683.92 | 44,350,794,683.92 | |
Total liabilities and owners’ equity | 87,627,169,587.52 | 87,627,169,587.52 |
VI. Taxes
1. Main taxes and tax rates
Value added tax (“VAT”)
Value added tax (“VAT”) | - | deductible VAT input for the current year. |
And VAT output of income from providing labor services has been calculated by applying a rate of 6% to the taxable value during this year. | ||
Consumption tax | - | Consumption tax is calculated at 1%, 3% or 5% of taxable income. |
City maintenance and construction tax | - | 7% of the turnover tax paid is calculated and paid. |
Educational surcharge | - | 3% of the actual turnover tax paid is calculated and paid. |
Local educational surcharge | - | 2% of the turnover tax actually paid is calculated and paid. |
Corporate income tax | - | Corporate income tax is paid at 15% or 25% of taxable income. |
2. Tax benefits
In accordance to Circular for Further Implementation of Tax Incentives In the Development of Western Regions (Cai Shui [2011] No. 58) collectively issued by the ministry of Finance, the Customs General Administration and the National Taxation Bureau of PRC, from 1 January 2011 to 31 December 2020, enterprises located in the Western Region and engaged in encouraged business would be entitled to a preferential CIT rate of 15%. The Company’s subsidiaries, including Chongqing Changan Special Automobile Co., Ltd, Chongqing Changan Automobile Supporting Service Co., Ltd. and Chongqing Changan Suzuki Automobile Co., Ltd. are qualified to the requirement and are subjected to the preferential tax rate of 15%. |
VII. Notes to the consolidated financial statements
1. Cash
In RMB Yuan
Item | Ending | Beginning |
Cash | 14,977.41 | 18,280.08 |
Cash at bank | 16,821,104,203.83 | 9,360,456,394.81 |
Other cash | 505,302,056.19 | 705,696,678.59 |
Total | 17,326,421,237.43 | 10,066,171,353.48 |
As at 30 June 2020, the book value of restricted cash and cash equivalents is RMB 505,302,056.19, which was mainly restricted forthe issuance of acceptance bill.As at 30 June 2020, the cash at bank oversea is equivalent to RMB 219,602,378.35.
2. Transactional financial assets
Item | Ending | Beginning |
Financial assets measured at fair value and whose changes are included in the current profit and loss-equity instrument investment | 4,173,150,897.00 | 2,419,476,200.00 |
Total | 4,173,150,897.00 | 2,419,476,200.00 |
3. Notes receivable
(1) Classification of notes receivable
In RMB Yuan
Type | Ending | Beginning |
Commercial acceptance bill | 2,109,965,475.65 | 7,475,629,607.72 |
Bank acceptance bill | 19,519,311,671.28 | 19,330,005,979.47 |
Total | 21,629,277,146.93 | 26,805,635,587.19 |
(2) The notes receivable pledged as follows:
Type | 30 June 2019 | 31 December 2018 |
Commercial acceptance bill | 361,829,675.00 | 365,040,070.00 |
Bank acceptance bill | 5,791,544,234.00 | 2,760,059,280.00 |
Total | 6,153,373,909.00 | 3,125,099,350.00 |
The bank acceptance bill of the above amount has been pledged for the notereceivable on 30 June 2020 and 31 December 2019.
(3) Endorsed or discounted but unexpired notes receivable as at the end of reporting period are as follows:
In RMB Yuan
Type | Ending | Beginning | ||
Derecognition | Un-derecognition | Derecognition | Un-derecognition | |
Commercial acceptance bill | 662,937,930.00 | |||
Bank acceptance bill | 993,166,843.10 | 1,937,078,894.54 | ||
Total | 993,166,843.10 | - | 2,600,016,824.54 | - |
4. Accounts receivable
(1)Aging analysis of the accounts receivable is as follows:
In RMB Yuan
Aging | Ending | Beginning |
Within 1 year | 2,129,247,041.33 | 678,737,828.90 |
1 to 2 years | 124,986,062.13 | 141,612,978.25 |
2 to 3 years | 49,822,288.08 | 33,700,863.10 |
Over 3 years | 98,670,214.99 | 68,414,880.58 |
Total | 2,402,725,606.53 | 922,466,550.83 |
Less: Provision | - 102,743,181.12 | -84,152,474.01 |
Total | 2,299,982,425.41 | 838,314,076.82 |
(2)The movements in provision for impairment of accounts receivable are as follows:
Beginning balance | Addition | Deduction | Ending balance | |||
Provision | Other | Reversal | Write-off | |||
2020 | 84,152,474.01 | 19,762,832.77 | 1,172,125.66 | 102,743,181.12 | ||
2019 | 90,614,319.90 | 13,362,617.00 | 6,450,000.00 | 13,374,462.89 | 84,152,474.01 |
(3)Analysis of accounts receivable by category is as follows:
Item | Ending | |||
Balance | Provision | |||
Amount | (%) | Amount | (%) | |
Individually analyzed for provision | 1,644,201,932.79 | 68.43 | 64,203,085.58 | 3.90 |
Accounts receivable analyzed as groups for provision | 758,523,673.74 | 31.57 | 38,540,095.54 | 5.08 |
Total | 2,402,725,606.53 | 100.00 | 102,743,181.12 | 4.28 |
Item | Beginning | |||
Balance | Provision | |||
Amount | (%) | Amount | (%) | |
Individually analyzed for provision | 216,876,810.50 | 23.51 | 49,267,460.68 | 22.72 |
Accounts receivable analyzed as groups for provision | 705,589,740.33 | 76.49 | 34,885,013.33 | 4.94 |
Total | 922,466,550.83 | 100.00 | 84,152,474.01 | 9.12 |
(4)The Group’s accounts receivable was analyzed for provision by expected credit loss model
Ending | Beginning | |||||
Estimated face value for default | Expected credit loss rate (%) | Expected credit loss for the entire duration | Face balance | Provision ratio (%) | Provision for bad debt | |
Within 1 year | 659,634,029.05 | 1.11 | 7,354,250.99 | 601,963,326.69 | 0.80 | 4,799,025.50 |
1 to 2 years | 54,905,522.87 | 7.04 | 3,866,061.16 | 56,368,999.03 | 7.54 | 4,250,219.24 |
2 to 3 years | 11,522,151.00 | 33.80 | 3,894,643.60 | 20,043,284.25 | 31.23 | 6,258,614.71 |
3 to 4 years | 14,417,151.43 | 43.31 | 6,243,620.13 | 10,355,210.70 | 42.66 | 4,417,566.60 |
4 to 5 years | 1,531,440.86 | 46.89 | 718,141.13 | 2,411,538.03 | 45.52 | 1,097,691.19 |
Over 5 years | 16,513,378.53 | 99.70 | 16,463,378.53 | 14,447,381.63 | 97.33 | 14,061,896.09 |
Total | 758,523,673.74 | 5.08 | 38,540,095.54 | 705,589,740.33 | 4.94 | 34,885,013.33 |
(5)As at June 30, 2020, accounts receivable from Top 5 clients amounted to RMB1,526,610,729.58, accounted for 63.54% of thetotal accounts receivable (December 31, 2019:RMB191,520,443.31,accounted for 20.76% of the total amount).
(6) As of June 30, 2020, the Group has no accounts receivable that are derecognized as the transfer of financial assets (2018: Nil).
5. Prepayments
(1) An aged analysis of the prepayments is as follows:
In RMB Yuan
Aging | Ending | Beginning | ||
Amount | % | Amount | % | |
Within 1 year | 516,320,018.74 | 81.17 | 427,508,750.42 | 68.53 |
1 to 2 years | 110,947,847.63 | 17.44 | 190,277,683.92 | 30.50 |
2 to 3 years | 7,818,383.63 | 1.23 | 4,480,529.56 | 0.72 |
Over 3 years | 1,001,975.27 | 0.16 | 1,534,932.17 | 0.25 |
Total | 636,088,225.27 | 100.00 | 623,801,896.07 | 100.00 |
(2)As at 30 June 2020, the total amount of the top five prepayments was RMB 371,147,084.34, accounting for 58.35% of the totalamount of prepayments (2019: RMB 465,836,148.17, accounting for 74.68%).
6. Other receivables
(1)Aging analysis of other receivables is as follows:
Ending | Beginning | |
Within 1 year | 960,768,073.61 | 130,092,224.20 |
1 to 2 years | 51,044,853.03 | 133,414,975.39 |
2 to 3 years | 24,464,905.99 | 1,265,977.01 |
Over 3 years | 18,827,421.03 | 17,715,984.88 |
Total | 1,055,105,253.66 | 282,489,161.48 |
Provision | -13,078,147.01 | - 12,955,071.11 |
Total | 1,042,027,106.65 | 269,534,090.37 |
(2)Other receivables are classified by nature as follows:
Nature | Ending | Beginning |
New energy subsidy | 96,341,496.10 | 5,401,842.90 |
Reserve | 32,179,103.25 | 41,810,604.18 |
Equity transfer receivable | 798,700,000.00 | |
Other | 114,806,507.30 | 222,321,643.29 |
Total | 1,042,027,106.65 | 269,534,090.37 |
(3)In 2020, the changes in the provision for bad debts for other receivables based on the 12-month expected credit losses and theexpected credit losses for the entire duration are as follows:
12-month ECLs | Lifetime ECLs | Credit-impaired financial assets (Lifetime ECLs) | ||
Balance at the end of the previous year | 291,182.01 | 111,686,526.12 | 13,616,375.98 | 125,594,084.11 |
Changes in accounting policies | 0.00 | -111,066,213.00 | -1,572,800.00 | -112,639,013.00 |
Opening balance | 291,182.01 | 620,313.12 | 12,043,575.98 | 12,955,071.11 |
Changes due to the opening balance | ||||
- Transfer to Stage 2 | -274,825.18 | 274,825.18 | ||
- Transfer to Stage 3 | -826,113.91 | 826,113.91 | ||
- Turn back Stage 2 | ||||
- Turn back Stage 1 | ||||
Provision | 81,146.21 | 57,668.33 | 138,814.54 | |
Reversal | -15,738.64 | -15,738.64 |
Ending balance | 81,764.40 | 126,692.72 | 12,869,689.89 | 13,078,147.01 |
Movement of other account receivable balance as follow:
12-month ECLs | Lifetime ECLs | Credit-impaired financial assets (Lifetime ECLs) | ||
Balance at the end of the previous year | 2,205,778,389.26 | 1,637,955,311.33 | 13,616,375.98 | 3,857,350,076.57 |
Changes in accounting policies | -1,940,287,730.49 | -1,633,000,384.60 | -1,572,800.00 | -3,574,860,915.09 |
Opening balance | 265,490,658.77 | 4,954,926.73 | 12,043,575.98 | 282,489,161.48 |
Changes due to the opening balance | ||||
- Transfer to Stage 2 | -2,700,041.57 | 2,700,041.57 | ||
- Transfer to Stage 3 | -826,113.91 | 826,113.91 | ||
- Turn back Stage 2 | ||||
- Turn back Stage 1 | ||||
Addition | 876,669,396.33 | 222,877.06 | 876,892,273.39 | |
Derecognition | -102,971,320.63 | -4,918.00 | -102,976,238.63 | |
Write-off | -1,299,942.58 | -1,299,942.58 | ||
Ending balance | 1,035,188,750.32 | 7,046,813.45 | 12,869,689.89 | 1,055,105,253.66 |
(4)In 2019, the changes in the provision for bad debts for other receivables based on the 12-month expected credit losses and theexpected credit losses for the entire duration are as follows:
12-month ECLs | Lifetime ECLs | Credit-impaired financial assets (Lifetime ECLs) | ||
Opening balance | 688,784.69 | 473,328.51 | 6,686,050.38 | 7,848,163.58 |
Changes due to the opening balance | ||||
- Transfer to Stage 2 | - | - | - | - |
- Transfer to Stage 3 | -150,000.00 | -348,425.91 | 498,425.91 | - |
- Turn back Stage 2 | - | - | - | - |
- Turn back Stage 1 | - | - | - | - |
Provision | 135,958.46 | 111,637,659.12 | 7,431,094.18 | 119,204,711.76 |
Reversal | -383,561.14 | -76,035.60 | - | -459,596.74 |
Transfer | - | - | - | - |
Write-off | - | - | -999,194.49 | -999,194.49 |
Closing balance | 291,182.01 | 111,686,526.12 | 13,616,375.98 | 125,594,084.11 |
Movement of other account receivable balance as follow:
12-month ECLs | Lifetime ECLs | Credit-impaired financial assets (Lifetime ECLs) | ||
Opening balance | 3,228,443,949.91 | 5,738,281.45 | 6,686,050.38 | 3,240,868,281.74 |
Changes due to the opening balance | ||||
- Transfer to Stage 2 | -2,203,754,203.78 | 2,203,754,203.78 | - | - |
- Transfer to Stage 3 | -5,079,519.22) | -2,850,000.87 | 7,929,520.09 | - |
- Turn back Stage 2 | - | - | - | - |
- Turn back Stage 1 | - | - | - | - |
Addition | 1,603,831,056.07 | 667,724.40 | - | 1,604,498,780.47 |
Derecognition | -417,662,893.72 | -569,354,897.43 | - | -987,017,791.15 |
Write-off | - | - | -999,194.49 | -999,194.49 |
Closing balance | 2,205,778,389.26 | 1,637,955,311.33 | 13,616,375.98 | 3,857,350,076.57 |
(5)As at June 30, 2020, top five debtors of other receivables are as follows:
Debtors | Amount | Aging | Proportion of total other receivables (%) |
First | 798,700,000.00 | Within 6 months | 75.70 |
Second | 124,312,677.99 | 1-2 years | 11.78 |
Third | 76,449,253.20 | Within 6 months | 7.25 |
Fourth | 10,944,887.98 | Within 6 months | 1.04 |
Fifth | 8,403,835.35 | Within 6 months | 0.80 |
Total | 1,018,810,654.52 | 96.56 |
As at 31 December 2019, top five debtors of other receivables are as follows:
Debtors | Amount | Aging | Proportion of total other receivables (%) |
First | 1,770,677,411.60 | 0-4 years | 45.90 |
Second | 1,071,115,340.00 | Within 1year | 27.77 |
Third | 430,588,852.51 | 0-5 years | 11.16 |
Fourth | 131,582,160.00 | Within 1 year | 3.41 |
Fifth | 124,312,677.94 | 1-2 years | 3.22 |
Total | 3,528,276,442.05 | 91.46 |
(6) As of June 30, 2020, the Group has no other receivables derecognized as financial asset transfers. (December 31, 2019: Nil).
7. Inventory
(1) Classification of inventory
In RMB Yuan
Item | Ending | Beginning | ||||
Balance | Provision | Net value | Balance | Provision | Net value | |
Raw materials | 757,653,010.63 | 353,832,972.07 | 403,820,038.56 | 843,669,443.37 | 350,525,510.02 | 493,143,933.35 |
Work in transit | 74,730,000.00 | - | 74,730,000.00 | 293,575,861.15 | - | 293,575,861.15 |
Work in progress | 1,017,286,537.93 | 91,270,247.87 | 926,016,290.06 | 657,730,109.07 | 28,324,925.14 | 629,405,183.93 |
Commodity stock | 2,758,195,870.81 | 156,547,980.65 | 2,601,647,890.16 | 1,958,389,227.87 | 83,956,153.45 | 1,874,433,074.42 |
Revolving materials | - | - | - | 51,101,639.03 | - | 51,101,639.03 |
Spare parts | 34,178,251.21 | - | 34,178,251.21 | 33,781,796.49 | - | 33,781,796.49 |
Total | 4,642,043,670.58 | 601,651,200.59 | 4,040,392,469.99 | 3,838,248,076.98 | 462,806,588.61 | 3,375,441,488.37 |
(2) Provision for inventory
In RMB Yuan
Type | Beginning | Provision | Deduction | Ending | |
Reversal | Write-off | ||||
Raw materials | 350,525,510.02 | 13,899,766.91 | 5,905,198.31 | 4,687,106.55 | - |
Work in progress | 28,324,925.14 | 71,004,875.39 | 708,212.46 | 7,351,340.20 | - |
Commodity stock | 83,956,153.45 | 132,318,652.44 | 3,372,139.06 | 28,491,314.07 | 27,863,372.11 |
Total | 462,806,588.61 | 217,223,294.74 | 9,985,549.83 | 40,529,760.82 | 27,863,372.11 |
8. Contract assets (applicable from January 1, 2020)
(1) Classification of Contract assets
In RMB Yuan
Item | Ending | Beginning | ||||
Balance | Provision for impairment | Net value | Balance | Provision for impairment | Net value | |
New energy business | 2,172,702,076.43 | 117,225,349.00 | 2,055,476,727.43 | 3,574,860,915.09 | 112,639,013.00 | 3,462,221,902.09 |
Total | 2,172,702,076.43 | 117,225,349.00 | 2,055,476,727.43 | 3,574,860,915.09 | 112,639,013.00 | 3,462,221,902.09 |
(2) Current contract assets provision for impairment
In RMB Yuan
Balance at the end of the previous year | Changes in accounting policies | Provision for this year | Deduction | Ending balance | ||
Reversal | Write-off | |||||
2020 | 112,639,013.00 | 4,586,336.00 | 117,225,349.00 |
(3) The contract assets with provision for impairment losses using the simplified method are as follows:
In RMB Yuan
Item | Ending | ||
Estimated book balance in default | Expected credit loss rate | Lifetime expected credit loss | |
New energy business | 2,172,702,076.43 | 5.40 | 117,225,349.00 |
Total | 2,172,702,076.43 | 5.40 | 117,225,349.00 |
9. Other current assets
In RMB Yuan
Item | Ending | Beginning |
Accrual input tax | 794,281,653.55 | 1,428,518,317.99 |
Entrusted Loan | 300,000,000.00 | 300,000,000.00 |
Others | 5,960,566.11 | 17,601,810.05 |
Total | 1,100,242,219.66 | 1,746,120,128.04 |
10. Other equity instrument investments
Accumulative changes in fair value included in other comprehensive income | Fair value | Dividends Income | as fair value through other comprehensive income | |
Corun Hybrid Power Technology Co. Ltd | 4,820,300.00 | 204,820,300.00 | - | Unlisted equity instruments |
China South Industry Group Finance Co., Ltd. | 158,945,000.00 | 315,965,800.00 | - | Unlisted equity instruments |
Guoqi (Beijing) Intelligent Network Association Automotive Research Institute Co., Ltd. | 50,000,000.00 | 100,000,000.00 | - | Unlisted equity instruments |
Guoqi Automobile Power Cell Research Co., Ltd. | 12,538,500.00 | 52,538,500.00 | - | Unlisted equity instruments |
China North Industries Group Financial Leasing Co., Ltd. | 3,629,500.00 | 34,181,500.00 | - | Unlisted equity instruments |
Zhong Fa Lian Investment Co., Ltd. | - | 21,000,000.00 | - | Unlisted equity instruments |
Chongqing Ante trading Co., Ltd | - | 3,000,000.00 | - | Unlisted equity instruments |
CAERI(Beijing) automobile Lightweight Technology Research Institution Co., Ltd. | - | 3,000,000.00 | - | Unlisted equity instruments |
Sichuan Glass Co., Ltd. | - | - | - | Unlisted equity instruments |
合计 | 229,933,300.00 | 734,506,100.00 |
11. Long-term equity investment
In RMB Yuan
Investee | Beginning balance | Increase or decrease | Investment income under equity method | Other equity variation | Cash dividends declared | Other Deduction | Provision | Ending balance | Provision ending balance |
Joint Venture | |||||||||
Changan Ford Automobile Co., Ltd. | 1,782,823,327.91 | -570,006,507.40 | 1,212,816,820.51 | ||||||
Changan Mazda Automobile Co., Ltd. | 2,177,010,905.02 | 323,202,621.60 | 2,500,213,526.62 | ||||||
Changan Mazda Engine Co., Ltd. | 830,272,340.69 | 11,597,486.28 | -37,000,000.00 | 804,869,826.97 | |||||
Changan PSA Automobiles Co., Ltd. | 346,038,983.87 | -114,234,986.00 | -231,803,997.87 | ||||||
Automobile Technology Co., Ltd. | -12,871,719.42 | -18,666,611.81 | 31,538,331.23 | ||||||
Nanchang Jiangling Holding Co., Ltd. | 2,081,815,165.31 | 34,848,792.52 | 2,116,663,957.83 | ||||||
Associates | |||||||||
Chongqing Changan Kuayue Automobile Co., Ltd. | 192,005,274.10 | 27,957,230.96 | 219,962,505.06 | ||||||
Chongqing Changan Kuayue Automobile Sales Co., Ltd. (note1) | |||||||||
Beijing Fang’an cresent taxi Co., Ltd. (note1) | |||||||||
Changan Automobile Financing Co.,Ltd | 2,195,040,654.44 | 123,493,951.66 | 2,318,534,606.10 | ||||||
Hainan Anxinxing Information Technology Co., Ltd. | 3,560,384.10 | -795,039.88 | 2,765,344.22 | ||||||
Nanjing Chelai Travel Technology Co., | 1,474,945.09 | -143,024.65 | 1,331,920.44 |
Ltd. | |||||||||
Hunan Guoxin Semiconductor Technology Co., Ltd. | 25,152,447.20 | -126,648.85 | 25,025,798.35 | ||||||
Nanjing Leading Equity Investment Partnership | 935,218,323.32 | 32.16 | 935,218,355.48 | ||||||
Nanjing Leading Equity Investment Management Co., Ltd. | 1,445,415.69 | -93,594.67 | 1,351,821.02 | ||||||
Jiangling Holdings Co., Ltd. | 398,992,953.62 | -94,049,105.60 | 304,943,848.02 | ||||||
Chongqing Changan New Energy Automobile Technology Co., Ltd. (Note 2) | 2,565,221,040.00 | -232,817,307.40 | 2,332,403,732.60 | ||||||
Anhe (Chongqing) Equity Investment Fund Management Co., Ltd. | 1,939,605.86 | -419,202.42 | 1,520,403.44 | ||||||
Hangzhou Chelizi Intelligent Technology Co., Ltd. | 7,527,572.23 | 1,753,349.94 | 9,280,922.17 | ||||||
Beijing Wutong Chelian Technology Co., Ltd. | 4,094,510.40 | -17,183,381.33 | -13,088,870.93 | ||||||
Pakistan Master Automobile Co., Ltd. | 36,795,899.66 | -2,600,212.00 | 34,195,687.66 | ||||||
Total | 11,008,336,989.09 | 2,565,221,040.00 | -528,282,156.89 | -37,000,000.00 | -200,265,666.64 | 12,808,010,205.56 | -- |
Note1: As at June 30, 2020, the Group is not responsible for extra loss from Chongqing Changan Kuayue Automobile Sales Co., Ltd. and Beijing Fang’an cresent taxi Co., Ltd. Therefore, when
excess losses of these two associates occurred, the Group just reduced its correspondent long-term equity investment to zero, and did not recognize contingent liabilities accordingly.
Note2: In 2020, Chongqing Changan New Energy Automobile Technology Co., Ltd. introduced a strategic investor. The company lost control over it, and its shareholding ratio was reduced to
48.96%. It will no longer be included in the scope of consolidation and will be followed up by the equity method. Metering.
12. Investment property
According to the cost of the investment real estate
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending |
I. Original cost | 10,050,100.00 | 10,050,100.00 | ||
Buildings | 10,050,100.00 | 10,050,100.00 | ||
II. Accumulated depreciationand amortization | 2,947,250.28 | 113,355.78 | 3,060,606.06 | |
Buildings | 2,947,250.28 | 113,355.78 | 3,060,606.06 | |
III. Net Value | 7,102,849.72 | -113,355.78 | 6,989,493.94 | |
Buildings | 7,102,849.72 | -113,355.78 | 6,989,493.94 | |
IV. Impairment Provision | 7,102,849.72 | -113,355.78 | 6,989,493.94 | |
Buildings | 7,102,849.72 | -113,355.78 | 6,989,493.94 |
13. Fixed assets
Beginning | Ending | |
Fixed assets | 25,896,056,062.39 | 26,939,490,554.19 |
Fixed assets cleanup | ||
total | 25,896,056,062.39 | 26,939,490,554.19 |
Fixed assets
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending |
I. Original cost | 46,410,278,338.13 | 362,437,404.30 | 349,430,828.47 | 46,423,284,913.96 |
Buildings | 11,144,160,050.01 | 391,688.99 | 791,082.72 | 11,143,760,656.28 |
Machinery | 25,623,584,497.53 | 301,790,428.81 | 231,669,579.38 | 25,693,705,346.96 |
Vehicles | 1,355,868,955.84 | 853,112.65 | 100,357,287.31 | 1,256,364,781.18 |
Other Equipments | 8,286,664,834.75 | 59,402,173.85 | 16,612,879.06 | 8,329,454,129.54 |
II. Accumulated depreciation | 18,610,392,441.59 | 1,341,667,160.44 | 199,611,157.36 | 19,752,448,444.67 |
Buildings | 2,515,402,360.27 | 173,789,227.82 | 326,755.36 | 2,688,864,832.73 |
Machinery | 11,496,523,762.29 | 889,236,401.15 | 123,506,026.96 | 12,262,254,136.48 |
Vehicles | 629,232,960.52 | 86,129,280.66 | 71,207,725.68 | 644,154,515.50 |
Other Equipments | 3,969,233,358.51 | 192,512,250.81 | 4,570,649.36 | 4,157,174,959.96 |
III. Net Value | 27,799,885,896.54 | -979,229,756.14 | 149,819,671.11 | 26,670,836,469.29 |
Buildings | 8,628,757,689.74 | -173,397,538.83 | 464,327.36 | 8,454,895,823.55 |
Machinery | 14,127,060,735.24 | -587,445,972.34 | 108,163,552.42 | 13,431,451,210.48 |
Vehicles | 726,635,995.32 | -85,276,168.01 | 29,149,561.63 | 612,210,265.68 |
Other Equipments | 4,317,431,476.24 | -133,110,076.96 | 12,042,229.70 | 4,172,279,169.58 |
IV.Impairment Provision | 860,395,342.35 | 1,004,872.80 | 86,619,808.25 | 774,780,406.90 |
Buildings | 85,592,184.71 | - | 85,592,184.71 | |
Machinery | 631,047,449.99 | 78,191,258.02 | 552,856,191.97 | |
Vehicles | 36,761,889.19 | 1,004,872.80 | 7,970,158.80 | 29,796,603.19 |
Other Equipments | 106,993,818.46 | 458,391.43 | 106,535,427.03 | |
V. Book Value | 26,939,490,554.19 | -980,234,628.94 | 63,199,862.86 | 25,896,056,062.39 |
Buildings | 8,543,165,505.03 | -173,397,538.83 | 464,327.36 | 8,369,303,638.84 |
Machinery | 13,496,013,285.25 | -587,445,972.34 | 29,972,294.40 | 12,878,595,018.51 |
Vehicles | 689,874,106.13 | -86,281,040.81 | 21,179,402.83 | 582,413,662.49 |
Other Equipments | 4,210,437,657.78 | -133,110,076.96 | 11,583,838.27 | 4,065,743,742.55 |
The depreciation during the reporting period is RMB 1,341,667,160.44. During the period the construction in progress amounting toRMB 366,499,861.3 is transferred to the fixed asset.
14. Construction in progress
(1) Details of construction in progress
In RMB Yuan
Item | Closing balance | Openning balance | ||||
Balance | Provision | Book value | Balance | Provision | Book value | |
Vehicle production equipment | 131,759,496.47 | 131,759,496.47 | 163,180,665.02 | - | 163,180,665.02 | |
Yuzui motor city project | 105,456,656.33 | 105,456,656.33 | 39,547,629.19 | - | 39,547,629.19 | |
Engine plant | 985,844,453.47 | 985,844,453.47 | 880,128,770.64 | - | 880,128,770.64 | |
Vehicle research institution | 56,076,752.30 | 56,076,752.30 | 40,087,119.45 | - | 40,087,119.45 | |
Vehicle moulds | 208,172,446.27 | 208,172,446.27 | 284,573,714.88 | - | 284,573,714.88 | |
Light vehicle technical transformation project of Baoding Changan bus | 48,832,435.33 | 48,832,435.33 | 65,394,282.59 | - | 65,394,282.59 | |
Beijing vehicle construction | 71,002,689.79 | 71,002,689.79 | 60,307,306.09 | - | 60,307,306.09 |
project | ||||||
Car production Project Of Hefei Changan | 4,218,237.16 | 4,218,237.16 | 6,491,703.97 | - | 6,491,703.97 | |
Others | 231,050,886.91 | 49,398,728.00 | 181,652,158.91 | 239,490,564.60 | 49,398,728.00 | 190,091,836.60 |
Total | 1,842,414,054.03 | 49,398,728.00 | 1,793,015,326.03 | 1,779,201,756.43 | 49,398,728.00 | 1,729,803,028.43 |
(2) Movement of major construction in progress projects
In RMB Yuan
Item | Beginning | Addition | Transferred to fixed assets | Deduction | Ending |
Vehicle production equipment | 163,180,665.02 | 38,172,278.22 | 69,593,446.77 | 131,759,496.47 | |
Yuzui motor city project | 39,547,629.19 | 71,463,192.85 | 5,554,165.71 | 105,456,656.33 | |
Engine plant | 880,128,770.64 | 126,482,988.92 | 20,767,306.09 | 985,844,453.47 | |
Vehicle research institution | 40,087,119.45 | 35,444,551.49 | 19,454,918.64 | 56,076,752.30 | |
Vehicle moulds | 284,573,714.88 | 61,338,065.13 | 137,739,333.74 | 208,172,446.27 | |
Light vehicle technical transformation project of Baoding Changan bus | 65,394,282.59 | 57,177,161.14 | 73,739,008.40 | 48,832,435.33 | |
Beijing vehicle construction project | 60,307,306.09 | 10,834,303.92 | 138,920.22 | 71,002,689.79 | |
Car production Project Of Hefei Changan | 6,491,703.97 | 8,206,689.90 | 10,480,156.71 | 4,218,237.16 | |
Others | 190,091,836.60 | 20,753,118.07 | 29,032,605.02 | 160,190.74 | 181,652,158.91 |
Total | 1,729,803,028.43 | 429,872,349.64 | 366,499,861.30 | 160,190.74 | 1,793,015,326.03 |
(3) Provision for impairment of construction in progress
On June 30, 2020, the balance of impairment provision for construction in progress was RMB 49,398,728.00. There was no accruedor resold amount in the current year. (As of December 31, 2019, the amount of impairment provision for construction in progress wasRMB 49,398,728.00).
15. Intangible assets
Details of intangible assets
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending |
I. Original cost | 10,490,391,183.90 | 379,638,618.07 | 28,911,602.62 | 10,841,118,199.35 |
Land use rights | 2,753,082,390.28 | 2,753,082,390.28 | ||
Software use rights | 705,159,803.48 | 2,892,485.99 | 708,052,289.47 | |
Trademark use rights | 211,784,400.00 | 1,536.47 | 211,782,863.53 | |
Non-patent technology | 6,820,364,590.14 | 376,746,132.08 | 28,910,066.15 | 7,168,200,656.07 |
II. Accumulated amortization | 5,003,686,933.67 | 514,642,717.04 | 2,582,722.47 | 5,515,746,928.24 |
Land use rights | 461,981,506.33 | 27,980,857.36 | 489,962,363.69 | |
Software use rights | 564,665,067.35 | 14,506,702.89 | 579,171,770.24 | |
Trademark use rights | 188,453,466.62 | 8,749,999.98 | 197,203,466.60 | |
Non-patent technology | 3,788,586,893.37 | 463,405,156.81 | 2,582,722.47 | 4,249,409,327.71 |
III. Net value | 5,486,704,250.23 | -135,004,098.97 | 26,328,880.15 | 5,325,371,271.11 |
Land use rights | 2,291,100,883.95 | -27,980,857.36 | 2,263,120,026.59 | |
Software use rights | 140,494,736.13 | -11,614,216.90 | 128,880,519.23 | |
Trademark use rights | 23,330,933.38 | -8,749,999.98 | 1,536.47 | 14,579,396.93 |
Non-patent technology | 3,031,777,696.77 | -86,659,024.73 | 26,327,343.68 | 2,918,791,328.36 |
IV. Impairment provision | 277,084,936.74 | 277,084,936.74 | ||
Land use rights | - | |||
Software use rights | 23,617,923.17 | 23,617,923.17 | ||
Non-patent technology | 253,467,013.57 | 253,467,013.57 | ||
V. Book value | 5,209,619,313.49 | -135,004,098.97 | 26,328,880.15 | 5,048,286,334.37 |
Land use rights | 2,291,100,883.95 | -27,980,857.36 | 2,263,120,026.59 | |
Software use rights | 116,876,812.96 | -11,614,216.90 | 105,262,596.06 | |
Trademark use rights | 23,330,933.38 | -8,749,999.98 | 1,536.47 | 14,579,396.93 |
Non-patent technology | 2,778,310,683.20 | -86,659,024.73 | 26,327,343.68 | 2,665,324,314.79 |
As at 30 June 2020, the intangible assets from internal research and development account for 52.8% of total intangible assets.
16. Development expenditure
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending | ||
Included in current profit and loss | Recognized as intangible assets | Other reductions | ||||
Automobile Development | 814,745,464.20 | 366,481,969.95 | 22,883,914.03 | 376,296,822.32 | 265,103,330.94 | 516,943,366.86 |
Total | 814,745,464.20 | 366,481,969.95 | 22,883,914.03 | 376,296,822.32 | 265,103,330.94 | 516,943,366.86 |
Note: On June 30, 2020, Chongqing Changan New Energy Automobile Technology Co., Ltd. was no longer included in the scope ofconsolidation, and its development expenditure balance at the beginning of the year was transferred from other reductions.
17. Goodwill
In RMB Yuan
Investee | Beginning | Addition | Deduction | Ending | Impairment provision |
Hebei Changan Automobile Co., Ltd | 9,804,394.00 | 9,804,394.00 | |||
Nanjing Changan Automobile Co., Ltd | 73,465,335.00 | ||||
Changan Weilai New Energy Automobile Technology Co., Ltd. | 32,782,190.41 | 32,782,190.41 | |||
Total | 9,804,394.00 | 32,782,190.41 | 42,586,584.41 | 73,465,335.00 |
18. Long-term deferred expenses
In RMB Yuan
Item | Beginning | Addition | Amortization | Ending |
Long-term deferred expenses | 14,327,639.90 | 166,065.12 | 2,725,128.43 | 11,768,576.59 |
Total | 14,327,639.90 | 166,065.12 | 2,725,128.43 | 11,768,576.59 |
19. Deferred tax assets and liabilities
Recognized deferred tax assets and liabilities:
In RMB Yuan
Item | Ending | Beginning |
Deferred tax assets: | ||
Provision for the impairment of assets | 195,653,594.70 | 164,441,555.61 |
Accrued expenses and contingent liabilities | 863,580,630.22 | 868,144,392.63 |
Unpaid tech development expense and advertisement expense | 100,553,896.97 | 53,515,293.21 |
Deferred income | 412,073,835.87 | 410,605,039.66 |
Unpaid salary and bonus and others | 68,675,839.25 | 45,894,253.82 |
Subtotal | 1,640,537,797.01 | 1,542,600,534.93 |
Deferred tax liabilities: | ||
Changes in fair value of trading financial assets | 507,030,506.4 | 243,979,301.85 |
Fair value adjustment of business combination not under the same control | 39,335,008.50 | 41,224,728.88 |
Others | 11,538,859.56 | 11,538,859.56 |
Subtotal | 557,904,374.46 | 296,742,890.29 |
20. Provision for the impairment of assets
In RMB Yuan
Item | Beginning | Current | Deduction | Ending |
accrual | Reversal | Write-off | Other reduction | |||
I. Bad debt provision | 97,107,545.12 | 19,901,647.31 | 1,187,864.30 | - | 115,821,328.13 | |
II. Provision for impairment of contract assets | 112,639,013.00 | 4,586,336.00 | 117,225,349.00 | |||
III. Provision for obsolete inventory | 462,806,588.61 | 217,223,294.74 | 9,985,549.83 | 40,529,760.82 | 27,863,372.11 | 601,651,200.59 |
IV. Provision for the impairment of fixed assets | 860,395,342.35 | 1,004,872.80 | 86,619,808.25 | 774,780,406.90 | ||
V. Provision for the impairment of intangible assets | 277,084,936.74 | 277,084,936.74 | ||||
VI. Provision for the impairment of goodwill | 73,465,335.00 | 73,465,335.00 | ||||
VII. Provision for the impairment of available-for-sale financial assets | 49,398,728.00 | 49,398,728.00 | ||||
Total | 1,932,897,488.82 | 242,716,150.85 | 11,173,414.13 | 127,149,569.07 | 27,863,372.11 | 2,009,427,284.36 |
21. Short-term loans
In RMB Yuan
Item | Ending | Beginning |
Pledge loans | 50,000,000.00 | 50,000,000.00 |
Credit loans | 315,525,472.30 | 179,580,000.00 |
Total | 365,525,472.30 | 229,580,000.00 |
22. Notes payable
In RMB Yuan
Item | Ending | Beginning |
Commercial acceptance bill | 2,803,761,463.16 | 2,551,863,471.51 |
Bank acceptance bill | 14,217,240,478.33 | 10,878,679,822.72 |
Total | 17,021,001,941.49 | 13,430,543,294.23 |
23. Accounts payable
In RMB Yuan
Item | Ending | Beginning |
Accounts payable | 18,206,448,534.41 | 18,905,725,271.50 |
total | 18,206,448,534.41 | 18,905,725,271.50 |
24. Contract liabilities (applicable from January 1, 2020)
In RMB Yuan
Item | Ending | Beginning |
Payment | 2,162,739,729.94 | 2,315,641,685.78 |
total | 2,162,739,729.94 | 2,315,641,685.78 |
Note: Contract liabilities are mainly the advance receipts collected by the Group from customers before the performance obligationsare fulfilled. The related revenue of the contract will be recognized when the Group fulfills its performance obligations.
25. Payroll payable
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending |
Short term salary benefits | 972,606,354.60 | 2,355,576,601.66 | 2,567,610,264.06 | 760,572,692.20 |
Defined contribution plans | 68,484,427.31 | 165,667,817.43 | 103,828,904.94 | 130,323,339.80 |
Early retirement benefits and others | 5,245,000.00 | 22,477,102.71 | 18,961,430.02 | 8,760,672.69 |
Total | 1,046,335,781.91 | 2,543,721,521.80 | 2,690,400,599.02 | 899,656,704.69 |
Short term salary benefits as follows: | ||||||||||||
In RMB Yuan | ||||||||||||
Item | Beginning | Addition | Deduction | Ending | ||||||||
and subsidy | 777,811,109.08 | 1,861,583,042.41 | 2,167,875,073.48 | 471,519,078.01 | ||||||||
Employee benefit | 11,657,039.54 | 120,191,337.32 | 127,527,360.08 | 4,321,016.78 | ||||||||
Social insurance | 11,380,417.43 | 155,106,082.91 | 95,196,580.81 | 71,289,919.53 | ||||||||
Housing accumulation fund | 2,797,302.45 | 135,252,535.37 | 124,882,733.53 | 13,167,104.29 | ||||||||
education fund | 168,960,486.10 | 83,443,603.65 | 52,128,516.16 | 200,275,573.59 | ||||||||
Total | 972,606,354.60 | 2,355,576,601.66 | 2,567,610,264.06 | 760,572,692.20 | ||||||||
Defined contribution plans as follows: | ||||||||||||
In RMB Yuan | ||||||||||||
Item | Beginning | Addition | Deduction | Ending | ||||||||
Basic retirement security | 61,036,996.88 | 160,243,022.88 | 99,301,280.64 | 121,978,739.12 | ||||||||
Unemployment insurance | 7,447,430.43 | 5,424,794.55 | 4,527,624.30 | 8,344,600.68 | ||||||||
Total | 68,484,427.31 | 165,667,817.43 | 103,828,904.94 | 130,323,339.80 |
26. Taxes payable
In RMB Yuan
Item | Ending | Beginning |
Value-added tax | 100,005,350.24 | 84,852,296.03 |
Consumption tax | 297,692,384.99 | 629,406,972.37 |
Corporate income tax | 23,178,777.31 | 120,351,092.86 |
City maintenance and construction tax, education additional expenses | 13,725,286.76 | 34,455,756.66 |
Others | 14,052,860.82 | 20,026,324.88 |
Total | 448,654,660.12 | 889,092,442.80 |
27. Other payables
Item | Ending | Beginning |
Dividend payable | 1,167,776.43 | 40,384.93 |
Other payables | 3,073,183,667.88 | 4,809,877,756.52 |
合计 | 3,074,351,444.31 | 4,809,918,141.45 |
Dividend payable
In RMB Yuan
Item | Ending | Beginning |
Interest on long-term borrowings with interest payments due | 1,138,824.98 | 8,216.67 |
Interest payable on short-term loans | 28,951.45 | 32,168.26 |
Total | 1,167,776.43 | 40,384.93 |
Other payables
In RMB Yuan
Item | Ending | Beginning |
Deposits of dealer and supplier | 152,403,024.39 | 284,705,119.28 |
Maintenance fees | 71,072,432.97 | 158,503,895.70 |
Advertising fees | 215,104,111.47 | 405,752,873.43 |
Warehousing and transport fees | 429,551,017.85 | 247,969,064.86 |
Advance receipt of equity transfer | - | 831,300,000.00 |
Purchase and construction of fixed assets, intangible assets and project deposits | 1,225,514,269.65 | 2,091,437,803.04 |
Others | 979,538,811.55 | 790,209,000.21 |
Total | 3,073,183,667.88 | 4,809,877,756.52 |
28. Estimated liabilities
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending |
product quality assurance | 2,762,766,347.50 | 362,013,019.76 | 499,183,282.39 | 2,625,596,084.87 |
Supplier compensation | 589,814,491.78 | 45,609,734.51 | 544,204,757.27 | |
Total | 3,352,580,839.28 | 362,013,019.76 | 544,793,016.90 | 3,169,800,842.14 |
Note: The product quality assurance is the maintenance cost of the estimated three-package period of the sold vehicle.
29. Other current liabilities
In RMB Yuan
Item | Ending | Beginning |
Accrued utilities | 13,728,982.55 | 25,777,106.11 |
Accrued transportation fee | 531,631,020.43 | 501,351,278.96 |
Accrued maintenance fee | 45,276,063.03 | 39,493,497.48 |
Accrued technology transfer and development fee | 308,326,480.76 | 101,005,700.82 |
Accrued commercial discount payable | 2,830,265,407.90 | 3,028,296,317.93 |
Accrued market development expense | 482,066,300.72 | 355,903,653.68 |
Accrued rental fee | 79,555,300.00 | 83,111,810.66 |
Others | 278,956,894.44 | 119,003,396.13 |
Total | 4,569,806,449.83 | 4,253,942,761.77 |
30. Non-current liabilities due within one year
In RMB Yuan
Item | Ending | Beginning |
Credit loan | 1,555,300,000.00 | 55,300,000.00 |
Total | 1,555,300,000.00 | 55,300,000.00 |
31.Long-term payables
Item | Ending | Beginning |
Special payables | 702,461,540.35 | 857,356,423.71 |
Total | 702,461,540.35 | 857,356,423.71 |
Special payables
Item | Beginning | Addition | Deduction | Ending |
New vehicle product | 13,397,745.48 | 2,032,200.00 | 906,362.96 | 14,523,582.52 |
Land relocation compensation | 555,350,709.40 | 555,350,709.40 | ||
industrialization of C206 pure electric cars | 31,167.55 | 23,196.00 | 7,971.55 | |
project | 167,757,531.08 | 2,238,300.00 | 140,724,363.46 | 29,271,467.62 |
automobile structure | 48,960,118.00 | 13,153,605.26 | 35,806,512.74 | |
Others | 71,859,152.20 | 10,761,953.00 | 15,119,808.68 | 67,501,296.52 |
Total | 857,356,423.71 | 15,032,453.00 | 169,927,336.36 | 702,461,540.35 |
32. Deferred income
30 June, 2020
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending |
Government grants related to assets | 2,858,873,083.08 | 267,690,549.97 | 146,117,354.84 | 2,980,446,278.21 |
Government grants related to income | 209,830,081.10 | 300,000,000.00 | 39,313,256.02 | 470,516,825.08 |
Others | 125,587,915.03 | 8,118,378.89 | 133,706,293.92 | |
Total | 3,194,291,079.21 | 575,808,928.86 | 319,136,904.78 | 3,450,963,103.29 |
As at 30 June 2020, details of liabilities related to government grants are as follows:
Item | Beginning | Addition | Recorded to other income | Ending | Relates to asset/gain |
Project subsidy funds | 2,259,609,252.14 | 142,587,149.97 | 65,267,136.32 | 2,336,929,265.79 | Related to asset |
Subsidies for plant construction | 400,927,900.80 | 125,103,400.00 | 35,929,748.82 | 490,101,551.98 | Related to asset |
Technical innovation funds | 16,150,000.00 | 16,150,000.00 | Related to asset | ||
Other asset - related subsidies | 182,185,930.14 | - | 44,920,469.70 | 137,265,460.44 | Related to asset |
Income-related government subsidies | 209,830,081.10 | 300,000,000.00 | 39,313,256.02 | 470,516,825.08 | Related to income |
Total | 3,068,703,164.18 | 567,690,549.97 | 185,430,610.86 | 3,450,963,103.29 |
33. Share capital
In RMB Yuan
Beginning | Current movement | Ending | |||||
Issuance of shares | Stock dividend | Transfer of reserve to common shares | others | Subtotal | |||
The sum of shares | 4,802,648,511.00 | - | - | - | - | - | 4,802,648,511.00 |
34. Capital reserves
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending |
Share premium | 4,938,329,830.94 | 4,938,329,830.94 | ||
Capital reserve transferred arising from the old standards | 44,496,899.00 | 44,496,899.00 | ||
Restricted capital reserve of equity investments | 17,015,985.20 | 17,015,985.20 | ||
Others | 366,254,879.52 | 366,254,879.52 | ||
Total | 5,366,097,594.66 | 5,366,097,594.66 |
35. Other comprehensive income
In RMB Yuan
2019/1/1 | Increase or decrease | 2019/12/31 | Increase or decrease | 2020/6/30 | |
Remeasure the net liabilities or changes in net assets of defined benefit plans | 1,175,000.00 | 254,000.00 | 1,429,000.00 | 1,429,000.00 | |
Under the equity method, the invested unit's share of other comprehensive income that cannot be reclassified into profit and loss | -2,088,068.00 | -2,088,068.00 | -2,088,068.00 | ||
Changes in the fair value of other equity instrument investments | 131,858,460.00 | 63,584,845.00 | 195,443,305.00 | 195,443,305.00 | |
Translation differences of foreign currency financial statements | -60,928,211.01 | 6,138,554.20 | -54,789,656.81 | 6,766,939.37 | -48,022,717.44 |
Total | 70,017,180.99 | 69,977,399.20 | 139,994,580.19 | 6,766,939.37 | 146,761,519.56 |
36. Surplus reserves
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending |
Statutory surplus | 2,401,324,255.50 | - | - | 2,401,324,255.50 |
Total | 2,401,324,255.50 | - | - | 2,401,324,255.50 |
37. Retained earnings
In RMB Yuan
Item | Sum |
Retained earnings at beginning of year | 31,271,171,559.60 |
Add: Net profit belong to parent company | 2,602,166,402.68 |
Retained earnings at the end | 33,873,337,962.28 |
38. Operating revenue and cost
In RMB Yuan
Report period | Same period of last year | |||
Revenue | Cost | Revenue | Cost | |
Main business | 32,014,959,151.44 | 29,353,108,421.60 | 29,100,899,960.18 | 26,869,270,640.75 |
Other business | 766,698,327.66 | 381,507,276.03 | 774,880,136.66 | 550,139,986.17 |
Total | 32,781,657,479.10 | 29,734,615,697.63 | 29,875,780,096.84 | 27,419,410,626.92 |
39. Tax and surcharges
In RMB Yuan
Item | Report period | Same period of last year |
Consumption tax | 954,339,591.94 | 858,219,663.65 |
City maintenance and construction tax | 79,821,375.83 | 66,201,215.72 |
Education additional expenses | 50,469,342.13 | 48,193,289.93 |
Others | 121,656,073.55 | 107,656,305.48 |
Total | 1,206,286,383.45 | 1,080,270,474.78 |
40. Operating expenses
In RMB Yuan
Item | Report period | Same period of last year |
Payroll and welfare | 204,419,163.59 | 217,259,045.38 |
Promotional advertising fees and sales service fees | 863,454,318.26 | 315,728,251.14 |
Transportation expenses | 110,198,692.55 | 840,974,104.51 |
Travelling expenses | 21,867,777.56 | 39,917,298.97 |
Package expenses | 4,637,273.00 | 12,659,730.13 |
Administrative expenses | 1,929,938.37 | 2,538,568.31 |
Consulting fee | 993,897.25 | 3,900,858.69 |
Training fee | 1,557,051.04 | 3,755,007.88 |
Others | 61,658,970.45 | 6,483,676.29 |
Total | 1,270,717,082.07 | 1,443,216,541.30 |
41. General and administrative expenses
In RMB Yuan
Item | Report period | Same period of last year |
Payroll and welfare | 710,197,732.15 | 511,834,200.57 |
Administrative expenses | 1,813,546.15 | 8,543,521.30 |
Depreciation and amortization | 133,684,029.10 | 138,824,075.95 |
Miscellaneous service charges | 11,389,441.25 | 5,974,056.43 |
Traffic and travelling expenses | 19,024,299.22 | 22,241,582.82 |
Entertainment expenses | 450,275.19 | 1,162,489.46 |
Others | 287,593,449.85 | 154,580,626.09 |
Total | 1,164,152,772.91 | 843,160,552.62 |
42. Research and development expenses
Item | Report period | Same period of last year |
Wages and benefits | 519,844,836.98 | 868,126,885.03 |
Material fee | 58,974,839.13 | 85,090,579.88 |
Subcontract fee | 171,587,497.89 | 119,210,568.21 |
Travel research fee | 10,103,859.15 | 17,519,367.04 |
Test fee | 43,007,880.00 | 49,958,628.39 |
Depreciation and amortization | 580,661,427.53 | 501,999,298.39 |
other fee | 80,374,082.74 | 78,254,331.94 |
Total | 1,464,554,423.42 | 1,720,159,658.88 |
43. Financial expenses
In RMB Yuan
Item | Report period | Same period of last year |
Interest expense | 20,373,153.36 | 28,216,059.24 |
Less: interest income | 131,048,028.86 | 128,484,820.10 |
Exchange gain or loss | 4,908,537.21 | -2,640,391.42 |
Others | 7,712,792.91 | 6,076,443.13 |
Total | -98,053,545.38 | -96,832,709.15 |
44. Assets disposal income
In RMB Yuan
Item | Report period | Same period of last year | Included in 2018 non-recurring gains and losses |
Fixed assets disposal income | 33,428,646.97 | 9,392,459.28 | 33,428,646.97 |
Total | 33,428,646.97 | 9,392,459.28 | 33,428,646.97 |
45. Impairment loss on assets
In RMB Yuan
Item | Report period | Same period of last year |
1. Bad debt loss | 207,237,744.91 | 152,676,538.06 |
2. Impairment provision of obsolete inventory | 1,004,872.80 | |
Total | 208,242,617.71 | 152,676,538.06 |
46. Credit impairment loss (applicable from January 1, 2019)
Item | Report period | Same period of last year |
I. Notes receivable and bad debts of accounts receivable | 18,590,707.11 | 7,380,783.24 |
2. Impairment of contranct assets | 123,075.90 | 2,148,950.42 |
3. Loss of bad debts of other receivables | 4,586,336.00 | |
Total | 23,300,119.01 | 9,529,733.66 |
47. Changes in fair value gains and losses
Sources of income from changes in fair value | Report period | Same period of last year |
Transactional financial assets | 1,753,674,697.00 | 40,337,151.27 |
Total | 1,753,674,697.00 | 40,337,151.27 |
48. Investment income
In RMB Yuan
Item | Report period | Same period of last year |
1.Long-term equity investment income under equity method | -528,282,156.89 | -108,336,709.94 |
2.Investment income from disposal of long-term equity investments | 3,514,298,597.59 | |
3.Investment income obtained during the period of holding trading financial assets | 7,903,143.08 | |
4.Others | 6,884,080.21 | |
Total | 3,000,803,663.99 | -108,336,709.94 |
49. Other income
In RMB Yuan
Item | Report period | Same period of last year | Explain |
R&D special funds | 49,313,256.03 | 476,456,238.65 | |
Deferred revenue amortization | 146,117,354.84 | 110,976,095.19 | |
Other government subsidies | 20,547,344.41 | 33,300,740.27 | |
Total | 215,977,955.28 | 620,733,074.11 | -- |
50. Non-operating income
In RMB Yuan
Item | Report period | Same period of last year |
Fines and others | 31,178,860.44 | 18,836,680.44 |
Total | 31,178,860.44 | 18,836,680.44 |
51. Non-operating expenses
In RMB Yuan
Item | Report period | Same period of last year |
Donation | 16,759,250.00 | 2,300,000.00 |
Vehicle reward | 6,029,776.00 | |
Fines and late fees | 130,851.84 | 1,065,115.94 |
Others | 34,461,544.29 | 3,250,175.26 |
Total | 51,351,646.13 | 12,645,067.20 |
52. Income tax expenses
In RMB Yuan
Item | Report period | Same period of last year |
Current income tax expense | 26,707,074.55 | 31,508,825.01 |
Deferred income tax adjustment | 163,224,222.09 | 85,058,871.07 |
Total | 189,931,296.64 | 116,567,696.08 |
53. Notes to cash flow statement
(1) The major cash received relating to other operating activities
In RMB Yuan
Item | Amount |
Interest income | 120,704,400.68 |
Government grants related to operating activities | 474,224,889.28 |
Others | 865,665,430.32 |
Total | 1,460,594,720.28 |
(2) The major cash paid relating to other operating activities
In RMB Yuan
Item | Amount |
Selling expenses | 933,772,246.27 |
Administrative expenses | 1,025,434,454.14 |
R&D expensess | 401,581,519.34 |
Others | 746,994,963.28 |
Total | 3,107,783,183.03 |
(3) The major cash received relating to other investing activities
In RMB Yuan
Item | Amount |
Others | 2,401,804.55 |
Total | 2,401,804.55 |
(4) The major cash paid relating to other investing activities
In RMB Yuan
Item | Amount |
Disposal of subsidiary equity | 104,231,229.20 |
Total | 104,231,229.20 |
(5) The major cash received relating to other financing activities
In RMB Yuan
Item | Amount |
Redemption of the deposit for acceptance | 330,073,299.87 |
Total | 330,073,299.87 |
(6) The major cash paid relating to other financing activities
Item | Amount |
Payment of acceptance billsother | 129,678,677.47 |
Others | 12,249,709.00 |
Total | 141,928,386.47 |
54. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
In RMB Yuan
Supplementary information | Current Amount | Prior-period Amount |
1. Cash flow relating to operating activities calculated by adjusting the net profit | ||
Net profit | 2,601,622,809.19 | -2,244,061,428.35 |
Add: credit impairment loss | 23,300,119.01 | 9,529,733.66 |
Add: provision for assets impairment | 208,242,617.71 | 152,676,538.06 |
Depreciation of fixed assets, oil and gas assets, productive biological assets | 1,341,780,516.22 | 1,412,926,235.60 |
Amortization of intangible assets | 514,642,717.04 | 485,234,277.39 |
Amortization of long-term deferred expense | 2,725,128.43 | 1,190,008.24 |
Disposal loss/(income) on fixed assets, intangible assets and others long-term assets(with “-” for gains) | -33,428,646.97 | -9,392,459.28 |
Loss of fair value change (revenue is marked with "-") | -1,753,674,697.00 | -40,337,151.27 |
Financial expense(with “-” for gains) | 20,373,153.36 | 28,216,059.24 |
Investment loss(with “-” for gains) | -3,000,803,663.99 | 108,336,709.94 |
Decrease in deferred tax assets(with “-” for gains) | -97,937,262.08 | 91,826,434.28 |
Increase in deferred tax debts(with “-” for gains) | 261,161,484.17 | -6,753,936.40 |
Decrease in inventory(with “-” for gains) | -664,950,981.62 | -787,955,680.07 |
Decrease in operating receivables(with “-” for gains) | 4,982,533,829.23 | 3,615,249,233.77 |
Increase in operating payables(with “-” for gains) | 2,756,790,261.85 | 1,406,660,271.88 |
Others | -249,790,690.95 | -3,081,215.74 |
Net cash flows from operating activities | 6,912,586,693.60 | 4,220,263,630.95 |
2. Investment and financing activities involving no cash incomings / outgoings | ||
3. Movement of cash and cash equivalents | ||
Ending balance of cash equivalents | 16,821,119,181.24 | 10,147,607,013.29 |
Less: beginning balance of cash equivalents | 9,360,474,674.89 | 9,648,153,614.80 |
Net increase in cash and cash equivalents | 7,460,644,506.35 | 499,453,398.49 |
(2) Cash and cash equivalents
In RMB Yuan
Item | Ending balance | Beginning balance |
I. Cash | ||
Including: Cash on hand | 14,977.41 | 18,280.08 |
Bank deposits that can be readily used | 16,821,104,203.83 | 9,360,456,394.81 |
II. Ending balance of cash and cash equivalents | 16,821,119,181.24 | 9,360,474,674.89 |
VIII. The change of consolidation scope
1. Business combination not under the Same Control
The company originally held 50% of the equity of Changan Weilai New Energy Automobile Technology Co., Ltd. (hereinafterreferred to as "Changan Weilai"), and was able to exercise joint control over it, accounting for the equity method. In 2020, thecompany will increase its investment in Changan Weilai through cash increase and other methods. The transaction date is June 4,2020. After the capital increase is completed, the company holds a total of 95.38% of the equity of Changan Weilai and confirmedgoodwill of RMB 32,782,190.41.
2. Combination under the same control
□ Applicable √ Not Applicable
3. Counter purchase
□ Applicable √ Not Applicable
4. Disposing subsidiary
Whether there is a single disposal of the subsidiary company investment that is the loss of control of the situation
□ Applicable √ Not Applicable
Whether there is a situation of the loss of control over the period of the investment and the loss of control of the subsidiary companythrough multiple transactions
□ Applicable √ Not Applicable
5. Change of consolidation scope due to other reasons
(1) Newly established subsidiary companies during the reporting period
Name | Registered Address | Type of business | Registered Capital(Ten Thousand Yuan) | Proportion of shares enjoyed by the group |
Chongqing Changan Automobile Software Technology Co., Ltd. | Chongqing | Sales | 9900 | 100% |
(2) Subsidiary clearing during the reporting period
□ Applicable √ Not Applicable
Subsidiary clearing during the reporting period and related circumstances:
□ Applicable √ Not Applicable
(3) Other reduced subsidiaries during the reporting period
Chongqing Changan New Energy Automobile Technology Co., Ltd. introduced a strategic investor. The company lost control over it,and its shareholding ratio was reduced to 48.96%. It was no longer included in the scope of consolidation and was subsequentlymeasured by the equity method.IX. Stake in other entities
1. Rights in subsidaries
The subsidiaries of the Company are as follows:
Company name | Main operating place | Registered place | Nature of business | Registered capital (ten thousand) | Total proportion of shareholders (%) | |
Direct | Indirect | |||||
I. The subsidiary formed by establishment or investment | ||||||
Hebei Changan Automobile Co., Ltd. (Note 1) | Dingzhou | Dingzhou | Manufacturing | 46,469 | 94.22 | - |
Chongqing Changan International Automobile Sales Co., Ltd. | Chongqing | Chongqing | Sales | 1,376 | 100.00 | - |
Chongqing Changan Vehicle Networking Technology Co., Ltd. | Chongqing | Chongqing | Lease | 8,850 | 100.00 | - |
Chongqing Changan Special Automobile Sales Co., Ltd (Note 2) | Chongqing | Chongqing | Sales | 2,000 | 50.00 | - |
Chongqing Changan Automobile Supporting Service Co., Ltd. | Chongqing | Chongqing | Sales | 3,000 | 99.00 | 1.00 |
Chongqing Changan New Energy | Chongqing | Chongqing | R&D | 2,900 | 100.00 | - |
Automobile Co. Ltd. | ||||||
Chongqing Changan Europe Design Academy Co., Ltd. | Turin, Italy | Turin, Italy | R&D | EUR1,738.36 | 100.00 | - |
Changan United Kingdom R&D Center Co., Ltd. | Nottingham, United Kingdom | Nottingham, United Kingdom | R&D | GBP2,482 | 100.00 | - |
Beijing Changan R&D Center Co., Ltd. | Beijing | Beijing | R&D | 100 | 100.00 | - |
Changan Japan Designing Center Co.,Ltd | Habin | Habin | R&D | JPY2,000 | 100.00 | - |
Changan United States R&D Center Co., Ltd. | Troy, United states | Troy, United states | R&D | USD154 | 100.00 | - |
Changan Automobile Russia Co., Ltd. | Moscow, Russia | Moscow, Russia | Sales | RUB220,382 | 100.00 | - |
Changan Brazil Holdings Limited | St. Paul, Brazil | St. Paul, Brazil | Sales | BRL100 | 100.00 | - |
Shenzhen Changan New Energy Automobile Service Co., Ltd | Shenzhen | Shenzhen | Sales | 14,800 | 100.00 | - |
Hangzhou Changan Yixing Technology Co., Ltd. | Hangzhou | Hangzhou | Lease | 500 | 100.00 | - |
Hefei Changan Yixing Technology Co., Ltd. | Hefei | Hefei | Lease | 500 | 100.00 | - |
Nanjing Changan Connected Car Technology Co., Ltd. | Nanjing | Nanjing | Lease | 500 | 100.00 | - |
Nanjing Changan New Energy Automobile Sales & Service Co., Ltd. | Nanjing | Nanjing | Sales | 5,000 | 100.00 | |
Fuzhou Fuqing Changan New Energy Automobile Sales & Service Co., Ltd. | Fuzhou | Fuzhou | Sales | 200 | 100.00 | - |
Xiamen Changan New Energy Automobile Sales & Service Co., Ltd. | Xiamen | Xiamen | Sales | 200 | 100.00 | - |
Guangzhou Changan New Energy Automobile Sales & Service Co., Ltd. | Guangzhou | Guangzhou | Sales | 400 | 100.00 | - |
Chongqing Chehemei Technology Co., Ltd. | Chongqing | Chongqing | Sales | 1,000 | 100.00 | |
Chongqing Changan Automobile Software Technology Co., Ltd. | Chongqing | Chongqing | R&D | 9900 | 100.00 | - |
II. The subsidiary formed by business combination not under common control | ||||||
Nanjing Changan Automobile Co., Ltd.(Note1) | Nanjing | Nanjing | Manufacturing | 60,181 | 84.73 | - |
Chongqing Changan Suzuki Automobile Co., Ltd. | Chongqing | Chongqing | Manufacturing | 133,764 | 100.00 | |
Zhenjiang Demao Hairun Equity Investment Fund Partnership (Limited Partnership) | Zhenjiang | Zhenjiang | Financial industry | 150,001 | 100.00 | |
Changan Weilai New Energy Automobile | Nanjing | Nanjing | Manufacturing | 18800 | 95.38 |
Note 1: The Company owns 93.79% and 95.70% of voting shares of Nanjing Changan Automobile Co., Ltd. And Hebei ChanganAutomobile Co., Ltd. respectively, the difference between proportion of voting shares and proportion of shares held is due to thevoting right consigned from minority shareholders.Note 2: The remaining shareholders of Chongqing Changan Special Automobile Co., Ltd. made an agreement with the Company thatthe remaining shareholders are to vote in accordance with the Company. The main financial and operating policies have beencontrolled by the Company, so it is included in the scope of consolidated financial statements.
As at June 30, 2020, the Group has no subsidiaries with important minority interests.
2. Transctions result in change of holdingshare proportion but no effect in control of subsidiaries
□ Applicable √ Not applicable
3. Stakes in joint ventures and associates
Sales & Service Co., Ltd. | ||||||
III. The subsidiary formed by business combination under common control | ||||||
Hebei Baoding Changan Bus Co., Ltd. | Dingzhou | Dingzhou | Manufacturing | 3,000 | 100.00 | - |
Hefei Changan Automobile Co.,Ltd. | Hefei | Hefei | Manufacturing | 77,500 | 100.00 | - |
Company name | Main operating place | Registered place | Nature of business | Registered capital (ten thousand) | Total proportion of shareholders (%) | Accounting treatment | |
Direct | Inderect | ||||||
I. Joint ventures | |||||||
Changan Ford Automobile Co., Ltd. | Chongqing | Chongqing | Manufacture and sale ofautomobiles, and components | USD24,100 | 50.00 | - | Equity |
Changan Mazda Automobile Co., Ltd. | Nanjing | Nanjing | Manufacture and sale ofautomobiles, and components | USD11,097 | 50.00 | - | Equity |
Changan Mazda Engine Co., Ltd. (Note 1) | Nanjing | Nanjing | Manufacture and sale ofautomobiles, and components | USD20,996 | 50.00 | - | Equity |
Jiangling Investment Co., Ltd. | Nanchang | Nanchang | Manufacture and sale ofautomobiles, and components | 100,000 | 50.00 | - | Equity |
II. Associates | |||||||
Chongqing Changan Kuayue Automobile Co., Ltd. | Chongqing | Chongqing | Develop, product and sale of automobile and components; import and export goods. | 6,533 | 34.30 | - | Equity |
Chongqing Changan Kuayue Automobile Sales Co., Ltd. | Chongqing | Chongqing | Sale of Changan Kuayue’ s automobile | 300 | 34.30 | - | Equity |
and agricultural cars and components. Technical advisory services for automobile | |||||||
Beijing Fang’an Taxi Co., Ltd. | Beijing | Beijing | For the car loan business | 2,897.96 | 20.70 | - | Equity |
Chongqing Auto Finance Co., ltd. | Chongqing | Chongqing | Provide car loan; provide vehicle loans and operating equipment loans to car dealers, including the construction loans of exhibition hall,spare parts loans and maintenance equipment loans, etc. | 476,843.1 | 28.66 | - | Equity |
Hainan Anxinxing Information Technology Co., Ltd. | Chengmai County | Chengmai County | Software and hardware technology development, technical consulting, auto parts sales | 3,000 | 30.00 | - | Equity |
Nanjing Chelai Travel Technology Co., Ltd. | Nanjing | Nanjing | Car sales, leasing, software technology development, technical services | 10,000 | 10.00 | - | Equity |
Hunan Guoxin Semiconductor Technology Co., Ltd. | Zhuzhou | Zhuzhou | Technology development consulting, technical services, technology transfer in the field of power semiconductors | 50,000 | 25.00 | - | Equity |
Beijing Wutong Chelian Technology Co., Ltd. | Beijing | Beijing | Technology development, technical consulting, technical services, technology transfer | 20,000 | - | - | Equity |
Anhe (Chongqing) Equity Investment Fund Management Co., Ltd. | Chongqing | Chongqing | Equity investment management | 1,000 | - | - | Equity |
Hangzhou Chelizi Intelligent Technology Co., Ltd. | Hangzhou | Hangzhou | Car travel service | 630 | - | - | Equity |
Pakistan Master Motors Co., Ltd. | Lahore, Pakistan | Lahore, Pakistan | Manufacture and sale ofautomobiles, and components | PKR75,000 | 30,000 | Equity |
X. Risks associated with financial instruments
1. Classification of financial instruments
As at balance sheet day, the book values of financial instruments are as follows:
Financial assets
In RMB Yuan
2019.6.30 | Financial Assets Measured at Fair Value and Their Changes Included in Current Profits and Losses | Measured at amortized cost | Measured at fair value and its changes are included in other comprehensive income |
Cash | 17,326,421,237.43 | ||
Transactional financial assets | 4,173,150,897.00 | ||
Notes receivable | 21,629,277,146.93 | ||
Accounts receivable | 2,299,982,425.41 | ||
Other receivables | 1,042,027,106.65 | ||
Other current assets | 315,431,147.57 | ||
Investment in other equity instruments | 734,506,100.00 | ||
Total | 4,173,150,897.00 | 42,613,139,063.99 | 734,506,100.00 |
In RMB Yuan
2019.12.31 | Financial assets measured at fair value and whose changes are included in the current profit and loss (standard requirements) | Financial assets measured at amortized cost | Financial assets measured at fair value with changes included in other comprehensive income (designated) |
Cash | - | 10,066,171,353.48 | - |
Transactional financial assets | 2,419,476,200.00 | - | - |
Jiangling Holding Co., Ltd. | Nanchang | Nanchang | Manufacture and sale ofautomobiles, and components | 200,000 | 25.00 | - | Equity |
Nanjing Leading Equity Investment Partnership | Nanjing | Nanjing | Equity investment, venture capital investment | 976,000 | 15.00 | - | Equity |
Nanjing Leading Equity Investment Management Co., Ltd. | Nanjing | Nanjing | Equity investment management | 1,000 | 16.39 | - | Equity |
Notes receivable | - | 26,805,635,587.19 | - |
Accounts receivable | - | 838,314,076.82 | - |
Other receivables | - | 3,731,755,992.46 | - |
Other current assets | - | 317,546,789.66 | - |
Investment in other equity instruments | - | - | 734,506,100.00 |
Total | 2,419,476,200.00 | 41,759,423,799.61 | 734,506,100.00 |
Financial liabilities
In RMB Yuan
2020.6.30 | 2019.12.31 | |
Short-term loans | 365,525,472.30 | 229,580,000.00 |
Notes payable | 17,021,001,941.49 | 13,430,543,294.23 |
Accounts payable | 18,206,448,534.41 | 18,905,725,271.50 |
Other payables | 3,074,351,444.31 | 4,809,918,141.45 |
Long-term loan | 1,555,300,000.00 | 55,300,000.00 |
Total | 40,222,627,392.51 | 37,431,066,707.18 |
2. Transfer of financial assets
The transferred financial assets that entirely derecognized but continuing involved
As at June 30, 2020, the book value of the bank acceptance bill that the Group has endorsed to the supplier to settle accounts payableis RMB 991,651,260.00 (December 31, 2019: RMB 1,894,125,685.18). On June 30, 2020, its maturity date is 1 to 6 months.According to the relevant provisions of the "Negotiable Instruments Law", if the accepting bank refuses to pay, its holder has theright to recourse against the Group ("continued involvement "). The Group believes that the Group has transferred almost all of itsrisks and rewards, and therefore, terminates the confirmation of the book value of the settlement accounts payable and the relatedaccounts payable. The maximum loss and undiscounted cash flow of continuing involvement and repurchase are equal to its bookvalue. The Group believes that continued involvement in fair value is not significant.
In the first half of 2020, the Group did not recognize gains or losses on its transfer date. The Group shall continue to be involved inthe proceeds or expenses of the year in which the recognition of financial assets has been terminated and the cumulative recognitionthereof. Endorsements occur roughly and evenly during the year.
3. Risks of financial instruments
The Group’s principal financial instruments, except for derivatives, include bank loans, bonds payable, cash, etc. The main purposeof these financial instruments is to raise finance for the Group’s operations. The Group has various other financial assets andliabilities such as accounts receivable and accounts payable, which arise directly from its operations.
The main risks arising from the Group’s financial instruments are credit risk, liquidity risk and market risk. The Group’s riskmanagement policies are summarized below:
Credit risk
The Group trades only with recognized, creditworthy third parties. It is the Group’s policy that all customers who wish to trade oncredit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis with theresult that the Group’s exposure to bad debts is not significant. For transactions that do not occur in the country of the relevantoperating unit, the Group does not offer credit terms without the approval of the special department of credit control.
Since the counterparties of monetary funds and bank acceptance bills receivable are banks with good reputation and high credit ratings, these financialinstruments have low credit risk.
With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents,available-for-sale financial assets, other receivables, dividend receivables and certain derivatives financial instruments, the Group’sexposure to credit risk arising from default of the counterparty, with a maximum exposure equal to the carrying amount of theseinstruments, listed as book value of financial assets in consolidated financial statements. In 2020, there was no credit risk arisingfrom financial guarantee.
No gage is required since the Group trades only with recognized, creditworthy third parties. Credit risks are managed by clients andindustries collectively. As at 30 June 2020, among the Group’s collections with specific credit risk, 63.54% of accounts receivables ofthe Group are due from top five clients. The Group does not hold any gage from or enhance credit limit to these clients.
Credit Risk Increasing the Judgment Criteria Significantly
The Group assesses whether the credit risk of the relevant financial instruments has increased significantly since the initialconfirmation on each balance sheet day. In determining whether credit risk has increased significantly since the initial confirmation,
the Group considers that reasonable and valid information, including qualitative and quantitative analysis based on the Group'shistorical data, external credit risk rating and forward-looking information, can be obtained without unnecessary additional costs orefforts. Based on a single financial instrument or a portfolio of financial instruments with similar credit risk characteristics, the Groupcompares the risk of default of financial instruments on the balance sheet date with the risk of default on the initial confirmation dateto determine the change of default risk of financial instruments during the expected lifetime.
When triggering one or more of the following quantitative and qualitative criteria, the Group believes that the credit risk of financialinstruments has increased significantly:
Quantitative criteria are that the probability of default of the remaining duration of the reporting day rises by more than a certainpercentage compared with the initial confirmationQualitative criteria include major adverse changes in the debtor's business or financial situation, early warning customer lists, etc.The upper limit indicator is that the debtor's contract payments (including principal and interest) are overdue for more than [30] days.Other financial assets of the Group include monetary funds, sellable financial assets, other receivables, etc. The credit risk of thesefinancial assets originates from the default of the counterparty, and the maximum risk exposure equals the book value of theseinstruments. The Group faces no credit risk in this year due to the provision of financial guarantees.
Definition of assets with impaired credit
In order to determine whether credit impairment occurs, the defining criteria adopted by the Group are consistent with the internalobjectives of credit risk management for relevant financial instruments, taking into account quantitative and qualitative indicators.When assessing whether the debtor has suffered credit impairment, the Group mainly considers the following factors:
Major financial difficulties occur to the issuer or debtor;
The debtor breaches the contract, such as defaulting of the interest or overdue principal, etc.The creditor gives the debtor concessions in no other case for economic or contractual considerations related to the debtor's financialdifficulties;The debtor is likely to go bankrupt or undergo other financial restructuring;The financial difficulties of the issuer or debtor lead to the disappearance of the active market of the financial assets;Purchase or derivation of a financial asset at a substantial discount reflects the credit losses.
Credit impairment of financial assets may be caused by the interaction of multiple events, not necessarily by separate identifiableevents.
Parameters for Measuring Expected Credit Loss
Depending on whether credit risk has increased significantly and whether credit impairment has occurred, the Group measuresimpairment provision for different assets by anticipated credit losses for 12 months or the whole life period, respectively. The keyparameters of anticipated credit loss measurement include default probability, default loss rate and default risk exposure. Consideringthe quantitative analysis and forward-looking information of historical statistics (such as counterparty ratings, guarantees and
collateral types, repayment methods, etc.), the Group establishes a default probability, default loss rate and default risk exposuremodel.
The relevant definitions are as follows:
The probability of default refers to the possibility that the debtor will not be able to fulfil its obligation to pay in the next 12 monthsor throughout the remaining period. The default probability of the group is adjusted based on the results of XX model, andforward-looking information is added to reflect the default probability of the debtor under the current macroeconomic environment.The default loss rate refers to the group's expectation of the extent of loss from exposure to default risk. According to the type ofcounterparty, the way and priority of recourse, and the different collateral, the loss rate of breach of contract is also different. Thedefault loss rate is the percentage of risk exposure loss at the time of default, which is calculated on the basis of the next 12 monthsor the whole duration.The default risk exposure is the amount that the group should be repaid in the event of default in the next 12 months or throughoutthe remaining period.
Prospective informationThe assessment of significant increase in credit risk and the calculation of anticipated credit losses involve forward-lookinginformation. Through historical data analysis, the Group identifies key economic indicators affecting credit risk and expected creditloss of various business types.
The impact of these economic indicators on default probability and default loss rate varies with different business types. In thisprocess, the Group applies expert judgment to forecast these economic indicators annually based on the results of expert judgment,and determines the impact of these economic indicators on default probability and default loss rate through [regression analysis].
Liquidity risk
The Group adopts cycle liquidity planning instrument to manage capital shortage risks. The instrument takes into consideration thematurity date of financial instruments plus estimated cash flow from the Group’s operations.
The Group’s objective is to maintain a balance between continuity of funding and flexibility and sufficient cash to support operatingcapital through financing functions by the use of bank loans, debentures, etc.
Market risk
Interest rate risk
The Group’s revenue and operating cash flows are seldomly influenced by the interest fluctuation. As at 30 June 2019, the Group’sloans are bearing fixed interest rate and the Group is not hedging the risk currently.
Foreign currency risk
The Group’s exposures to fluctuation in foreign currency exchange rate mainly arise from operating activities where transactions aresettled in currencies other than the units' functional currency and net investment to offshore subsidiary.
In 30 June, 2019, the Group only has limited transactional currency exposures of its total revenue that is valued in currencies otherthan the units' functional currency. Since most of the Group’s businesses are operated in China mainland, the estimated influence offluctuation of foreign currency is insignificant; therefore, the Group hasn’t carried out large amount of hedging to reduce the risk.
Equity instruments investment price risk
The Group is exposed to equity price risk arising from individual equity investments classified as transactional financial investments(Note VII 2) as at 30 June 2020. The Group’s listed investments are listed on the Shanghai and Shenzhen stock exchanges and valuedat quoted market prices at the end of the reporting period. The following table demonstrates the sensitivity to every 5% change (basedon the carrying amount as at the end of reporting period) in the Group’s net profit and fair value of the equity investments, with allother variables held constant, based on their carrying amounts at the end of the reporting period.
Carrying amount of equity investments | Change in fair value | Increase/(decrease) in equity | |
2020.6.30 | |||
Shanghai- Transactional financial assets | 162,945,000.00 | 5% | 6,925,162.50 |
Shanghai- Transactional financial assets | 162,945,000.00 | -5% | -6,925,162.50 |
Shenzhen-Transactional financial assets | 4,010,205,897.00 | 5% | 170,433,750.62 |
Shenzhen-Transactional financial assets | 4,010,205,897.00 | -5% | -170,433,750.62 |
2019.12.31 | |||
Shanghai- Available for sale | 184,245,000.00 | 5% | 7,830,412.50 |
Shanghai- Available for sale | 184,245,000.00 | -5% | -7,830,412.50 |
Shenzhen- Available for sale | 2,235,231,200.00 | 5% | 94,997,326.00 |
Shenzhen- Available for sale | 2,235,231,200.00 | -5% | -94,997,326.00 |
4. Capital management
The main goal of the Group’s capital management is to ensure that the ability of continuous operation, and maintain a healthy capitalratios in order to support business development, and to maximize shareholder value.
The Group manages the capital structure and adjusts it with the change of economy trend and the risk feature of the assets. Tomaintain or adjust the capital structure, the Group can rectify dividend distribution, return capital to shareholders or issue new shares.The Group is not subject to external mandatory capital requirements constraints. The goal, principle and procedure of capitalmanagement stay the same in 2019 and 30, June 2020.
The Group’s leverage ratio on the balance sheet date is as follows:
30 June 2020 31 December 2019
Leverage ratio 54.70% 54.99%XI. Disclosure of fair value
1. Assets and liabilities measured at fair value
June 30, 2020
In RMB Yuan
Input measured at fair value | ||||
(The first level) | (The second level) | Important but unobservable input (The third level) | Total | |
Transactional financial assets | 4,173,150,897.00 | 4,173,150,897.00 | ||
Other equity instruments | 734,506,100.00 | 734,506,100.00 | ||
Total | 4,173,150,897.00 | 734,506,100.00 | 4,907,656,997.00 |
December 31, 2019
In RMB Yuan
Input measured at fair value | ||||
(The first level) | (The second level) | Important but unobservable input (The third level) | Total | |
Transactional financial assets | 184,245,000.00 | 2,235,231,200.00 | - | 2,419,476,200.00 |
Other equity instruments | - | - | 734,506,100.00 | 734,506,100.00 |
Total | 184,245,000.00 | 2,235,231,200.00 | 734,506,100.00 | 3,153,982,300.00 |
2. Fair value valuation
The management has assessed the monetary funds, notes receivable and accounts receivable, other receivables, short-term loans,other payables, bills payable and accounts payable. The fair value is equal to the book value because the remaining period is not long.
The fair value of financial assets and financial liabilities is determined by the amount of voluntarily exchange of assets or debtsettlement between the parties to the transaction in a fair transaction, rather than the amount of money that is forced to sell orliquidate.
Long-term borrowings and long-term borrowings due within one year are determined using the discounted future cash flow methodto determine the fair value, using the market yields of other financial instruments with similar contractual terms, credit risk and
remaining maturity as the discount rate. On June 30, 2020 the risk assessment of long-term borrowings and long-term borrowingsdue within one year was not significant.
The equity instruments listed by the Company include unrestricted ordinary shares and restricted shares. The unrestricted ordinaryshares investment determines the fair value by market quotation, and the restricted stock investment uses the discounted valuationmodel to estimate the fair value. We believe that the fair value and its changes estimated by valuation techniques are reasonable andare also the most appropriate value on the balance sheet date.XII. Related parties and related party transactions
1. Parent company of the Company
Parent company | Place of registration | Registered capital | Nature of the business | Proportion of shares in the Company (%) | Proportion of voting rights in the company (%) |
China Changan Automobile Group Co ,Ltd. | Beijing | 6,092,273,400.00 | Manufacture and sale of automobiles, engine, and components | 22.53% | 22.53% |
The Final controlling party is China South Industries Group corporation
2. Subsidiaries
See subsidiaries in IX. Stake in other entities.
3. Joint ventures and associates
See Joint ventures and associates in IX.3 Stake in other entities.
4. Other related parties
Other related parties | Relationship |
Chongqing Qingshan Transmission Sales Co., Ltd. | Subordinate company of South Industries |
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. | Subordinate company of South Industries |
Chongqing Changrong Machinery Co., Ltd. | Subordinate company of South Industries |
Chengdu Lingchuan Special Industry Co., Ltd. | Subordinate company of South Industries |
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. | Subordinate company of South Industries |
Chongqing Changfeng Jiquan Machinery Co., Ltd. | Subordinate company of South Industries |
Chongqing Construction Tongda Industrial Co., Ltd. | Subordinate company of South Industries |
Yunnan Xiyi Industries Co., Ltd. | Subordinate company of South Industries |
Chongqing Shangfang Auto Parts Co., Ltd. | Subordinate company of South Industries |
Other related parties | Relationship |
Chongqing Dajiang Xinda Vehicle Co., Ltd. | Subordinate company of South Industries |
Chongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd. | Subordinate company of South Industries |
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. | Subordinate company of South Industries |
China South Industries Group Finance Co., Ltd. | Subordinate company of South Industries |
Southwest Ordnance Industry Corporation | Subordinate company of South Industries |
Chengdu Wanyou Filter Co., Ltd. | Subordinate company of South Industries |
Chongqing Yihong Engineering Plastic Products Co., Ltd. | Subordinate company of South Industries |
Beijing Beiji Mechanical and Electrical Industry Co., Ltd. | Subordinate company of South Industries |
Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. | Subordinate company of South Industries |
Chongqing Nexteer Steering System Co., Ltd. | Subordinate company of South Industries |
Chongqing Dajiang Jiexin Forging Co., Ltd. | Subordinate company of South Industries |
Chongqing Jialing Yimin Special Equipment Co., Ltd. | Subordinate company of South Industries |
Chengdu Guangming Tianzhong Environmental Technology Co., Ltd. | Subordinate company of South Industries |
Chongqing Xiyi Automobile Connecting Rod Co., Ltd. | Subordinate company of South Industries |
Chongqing Changan Industry (Group) Co., Ltd. | Subordinate company of South Industries |
Hubei Huazhong Marelli Automotive Lighting Co., Ltd. | Subordinate company of South Industries |
Chongqing Changan Real Estate Development Co., Ltd. | Subordinate company of Changan Industry |
Chongqing Changan Construction Engineering Co., Ltd. | Subordinate company of Changan Industry |
Chongqing Changan Property Management Co., Ltd. | Subordinate company of Changan Industry |
China Changan Automobile Group Co., Ltd. | Parent company |
China Changan Automobile Group Co., Ltd. Chongqing Qingshan Transmission Branch | China Changan Branch |
Sichuan Jian'an Industry Co., Ltd. | Subordinate company of China Changan |
Southern Inte Air Conditioning Co., Ltd. | Subordinate company of China Changan |
Sichuan Ningjiang Shanchuan Machinery Co., Ltd. | Subordinate company of China Changan |
Chengdu Huachuan Denso Co., Ltd. | Subordinate company of China Changan |
Chongqing Automotive Air Conditioner Co., Ltd. | Subordinate company of China Changan |
Southern Trina Chassis Systems Co., Ltd. | Subordinate company of China Changan |
Chongqing Changan Minsheng Logistics Co., Ltd. | Subordinate company of China Changan |
Chongqing Wanyou Automobile Sales Service Co., Ltd. | Subordinate company of China Changan |
Chongqing Wanyou Longrui Automobile Sales Service Co., Ltd. | Subordinate company of China Changan |
Chongqing Wanyou Longxing Automobile Sales Service Co., Ltd. | Subordinate company of China Changan |
Chengdu Wanyou Xiangyu Automobile Sales Service Co., Ltd. | Subordinate company of China Changan |
Chengdu Wanyou Trading Co., Ltd. | Subordinate company of China Changan |
Other related parties | Relationship |
Hafei Automobile Co., Ltd. | Subordinate company of China Changan |
Chongqing Anfu Automobile Marketing Co., Ltd. | Subordinate company of China Changan |
China Changan Automobile Group Tianjin Sales Co., Ltd. | Subordinate company of China Changan |
Chengdu Ningjiang Showa Auto Parts Co., Ltd. | Subordinate company of China Changan |
Harbin Dongan Automobile Power Co., Ltd. | Subordinate company of China Changan |
Harbin Dongan Automobile Engine Manufacturing Co., Ltd. | Subordinate company of China Changan |
Zhonghui Fortis (Hong Kong) Investment Co., Ltd. | Subordinate company of China Changan |
China North Industries Group Financial Leasing Co., Ltd. | Subordinate company of China Changan |
Wanyou Automobile Investment Co., Ltd. | Subordinate company of China Changan |
Chengdu Wanyou Automobile Trading Service Co., Ltd. | Subordinate company of China Changan |
Chongqing Wanyou Economic Development Co., Ltd. | Subordinate company of China Changan |
Chongqing Wanyou Zunda Automobile Sales Service Co., Ltd. . | Subordinate company of China Changan |
Yunnan Wanyou Automobile Sales Service Co., Ltd. | Subordinate company of China Changan |
Guizhou Wanyou Automobile Sales Service Co., Ltd. | Subordinate company of China Changan |
Yunnan Xiangyu Automobile Sales Service Co., Ltd. | Subordinate company of China Changan |
Guangxi Wanyou Automobile Sales Service Co., Ltd. | Subordinate company of China Changan |
Nanning Wanyou Automobile Sales Service Co., Ltd. | Subordinate company of China Changan |
Chongqing Fuji Supply Chain Management Co., Ltd. | Subordinate company of China Changan |
Panzhihua Wanyou Automobile Sales Service Co., Ltd | Subordinate company of China Changan |
Ya'an Wanyou Automobile Sales Service Co., Ltd. | Subordinate company of China Changan |
Chongqing Wanyou Ducheng Automobile Sales Service Co., Ltd | Subordinate company of China Changan |
Chongqing Wanyou Xingjian Automobile Sales Service Co., Ltd. | Subordinate company of China Changan |
Luzhou Wanyou Automobile Service Co., Ltd. | Subordinate company of China Changan |
Southern Faurecia Auto Parts Co., Ltd. | Subordinate company of China Changan |
Chengdu Wanyou Automobile Sales Service Co., Ltd. | Subordinate company of China Changan |
Bazhong Wanyou Automobile Sales Service Co., Ltd. | Subordinate company of China Changan |
Harbin Broadcom Auto Parts Manufacturing Co., Ltd. | Subordinate company of China Changan |
China Changan Automobile Group Hefei Investment Co., Ltd. | Subordinate company of China Changan |
5. Related-party transaction
(1) Goods purchased and services received
In RMB Yuan
Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
Changan Ford Automobile Co., Ltd. | Purchase of spare parts | 4,825,291.25 | 4,161,704.83 | Yes | 1,290,483.83 |
Changan Mazda Automobile Co., Ltd. | Purchase of spare parts | - | 24,596,000.00 | No | - |
Changan Auto Finance Co., Ltd. | Purchase of spare parts | - | 1,100,000.00 | No | - |
Hangzhou Cherizi Intelligent Technology Co., Ltd. | Purchase of spare parts、Accept service | 32,858.40 | 2,477,105.19 | No | 3,150,482.79 |
Chongqing Changan New Energy Automobile Technology Co., Ltd. | Purchase of spare parts | 292,316,059.70 | 2,913,152,000.00 | No | - |
Chongqing Qingshan Transmission Sales Co., Ltd. | Purchase of spare parts | 3,951,626.52 | 10,380,349.56 | No | 3,559,602.32 |
Hubei Xiaogan Huazhong Automotive Lamp Co., Ltd. | Accept service | 38,549,124.98 | 100,294,692.47 | No | 46,683,372.83 |
Chongqing Changrong Machinery Co., Ltd. | Accept service | 68,484,512.99 | 87,999,257.12 | No | 6,433,171.02 |
Chengdu Lingchuan Special Industry Co., Ltd. | Purchase of spare parts | - | 81,402,637.59 | No | 9,930,016.99 |
Chengdu Lingchuan Vehicle Fuel Tank Co., Ltd. | Accept service | 4,856,159.30 | 24,721,523.51 | No | 18,186,753.45 |
Chongqing Changfeng Jiquan Machinery Co., Ltd. | Purchase of spare parts | 39,562.52 | 13,116,014.09 | No | 10,396,114.98 |
Chongqing Construction Tongda Industrial Co., Ltd. | Purchase of spare parts | 15,227,209.83 | 37,741,834.31 | No | - |
Yunnan Xiyi Industry Co., Ltd. | Purchase of spare parts | 31,247,072.00 | 85,283,366.75 | No | 30,665,985.08 |
Chongqing Shangfang Auto Parts Co., Ltd. | Purchase of spare parts | 18,227,944.17 | 46,753,393.44 | No | 15,447,216.43 |
Chongqing Dajiang Xinda Vehicle Co., Ltd. | Purchase of spare parts | - | 9,208.73 | No | 7,009,231.20 |
Chongqing Dajiang Yuqiang Plastic Products Co., Ltd. | Purchase of spare parts | 60,582,775.09 | 181,289,169.09 | No | 70,660,688.47 |
Chongqing Jianshe Vehicle Air Conditioner Co., Ltd. | Purchase of spare parts | 50,801,423.79 | 120,259,712.43 | No | 45,884,509.86 |
Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
Chengdu Wanyou Filter Co., Ltd. | Purchase of spare parts | 47,326,318.61 | 110,217,592.57 | No | 56,809,638.72 |
Chongqing Yihong Engineering Plastic Products Co., Ltd. | Purchase of spare parts | 1,785,587.35 | 6,841,082.30 | No | 3,943,111.25 |
Beijing Beiji Electromechanical Industry Co., Ltd. | Purchase of spare parts、Accept service | 262,158.45 | 697,033.72 | No | 21,611.25 |
Chengdu Jialing Huaxi Optical Precision Machinery Co., Ltd. | Accept service | 6,983,371.89 | 15,441,943.93 | No | 6,120,347.20 |
Chongqing Nexteer Steering System Co., Ltd. | Accept service | 303,123,612.34 | 850,598,822.58 | No | 319,878,978.48 |
Chongqing Dajiang Jiexin Forging Co., Ltd. | Accept service | 1,330,537.16 | 2,830,268.77 | No | 1,178,761.66 |
Chengdu Guangming Tianzhong Environmental Technology Co., Ltd. | Accept service | - | - | No | (1,885.21) |
Chongqing Xiyi Automobile Connecting Rod Co., Ltd. | Accept service | (1,571.72) | - | No | (5,769.12) |
Chongqing Changan Industry (Group) Co., Ltd. | Purchase of spare parts | 2,646,670.74 | 10,123,723.73 | No | 348,568.01 |
Hubei Huazhong Marelli Automotive Lighting Co., Ltd. | Purchase of spare parts | 379,667,416.38 | 354,480,088.86 | Yes | - |
Chongqing Changan Construction Engineering Co., Ltd. | Purchase of spare parts | - | 190,379,474.50 | No | 7,313,785.24 |
Chongqing Changan Property Management Co., Ltd. | Accept service | 2,933,009.46 | 4,252,500.00 | No | 1,812,064.04 |
China Changan Automobile Group Co., Ltd. Chongqing Qingshan Transmission Branch | Purchase of spare parts、Accept service | 1,091,053,146.70 | 1,956,447,808.69 | No | 455,343,757.53 |
Sichuan Jian'an Industry Co., Ltd. | Accept service | 300,829,143.28 | 905,645,453.27 | No | 353,770,028.01 |
Southern Inte Air Conditioning Co., Ltd. | Accept service | 173,331,986.97 | 414,801,618.97 | No | 153,661,141.06 |
Sichuan Ningjiang Shanchuan Machinery Co., Ltd. | Accept service | 97,803,118.73 | 207,425,439.69 | No | 51,016,595.30 |
Chengdu Huachuan Denso Co., Ltd. | Accept service | 196,376,880.72 | 402,906,003.30 | No | 130,426,180.96 |
Southern Trina Chassis Systems Co., Ltd. | Accept service | 307,409,807.58 | 602,765,517.99 | No | 202,875,095.90 |
Chongqing Changan Minsheng Logistics | Accept service | 865,998,486.41 | 2,728,794,918.17 | No | 827,152,859.32 |
Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
Co., Ltd. | |||||
Chengdu Wanyou Xiangyu Automobile Sales Service Co., Ltd. | Accept service | 426,011.37 | 865,631.43 | No | 248,627.10 |
Chengdu Wanyou Trading Co., Ltd. | Accept service | 10,555.36 | 82,713.89 | No | 18,514.24 |
Chongqing Anfu Automobile Marketing Co., Ltd. | Purchase of spare parts | 43,818.58 | - | Yes | - |
China Changan Automobile Group Tianjin Sales Co., Ltd. | Accept service | 6,413.27 | 51,612.68 | No | 25,144.55 |
Chengdu Ningjiang Showa Auto Parts Co., Ltd. | Accept service | 43,467,720.96 | 130,921,565.82 | No | 47,772,865.85 |
Harbin Dongan Automobile Power Co., Ltd. | Purchase of spare parts | 451,467,256.21 | 1,063,183,700.68 | No | 420,102,474.82 |
Harbin Dongan Automobile Engine Manufacturing Co., Ltd. | Purchase of spare parts | 417,266,451.54 | 1,260,355,536.15 | No | 353,143,739.85 |
Chengdu Wanyou Automobile Trading Service Co., Ltd. | Purchase of spare parts | 411,726.27 | 1,566,868.08 | No | 464,001.50 |
Chongqing Wanyou Economic Development Co., Ltd. | Purchase of spare parts | 571,494,801.82 | 583,856,955.71 | No | 134,932,176.36 |
Yunnan Wanyou Automobile Sales Service Co., Ltd. | Purchase of spare parts | 780,899.66 | 3,099,140.81 | No | 1,084,974.53 |
Guizhou Wanyou Automobile Sales Service Co., Ltd. | Purchase of spare parts | 655,606.26 | 2,661,096.18 | No | 986,717.54 |
Yunnan Xiangyu Automobile Sales Service Co., Ltd. | Purchase of spare parts | 79,915.55 | 361,697.69 | No | 124,427.22 |
Panzhihua Wanyou Automobile Sales Service Co., Ltd. | Purchase of spare parts | 90,562.92 | 219,811.59 | No | 13,092.15 |
Ya'an Wanyou Automobile Sales Service Co., Ltd. | Purchase of spare parts | 112,581.31 | 390,845.20 | No | 128,960.48 |
Chongqing Wanyou Ducheng Automobile Sales Service Co., Ltd. | Purchase of spare parts | 274,639.05 | 1,034,263.79 | No | 327,791.37 |
Chongqing Wanyou Xingjian Automobile Sales Service Co., Ltd. | Purchase of spare parts | 160,585.36 | 699,496.18 | No | 257,093.48 |
Luzhou Wanyou Automobile Service Co., Ltd. | Purchase of spare parts | 84,600.36 | 138,350.93 | No | 20,198.04 |
Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
Southern Faurecia Auto Parts Co., Ltd. | Purchase of spare parts | 200,998,771.72 | 421,007,240.46 | No | 114,560,039.57 |
Bazhong Wanyou Automobile Sales Service Co., Ltd. | Purchase of spare parts | 41,138.48 | 52,948.05 | No | 14,698.71 |
Harbin Broadcom Auto Parts Manufacturing Co., Ltd.Changan Ford Automobile Co.,Ltd. | Purchase of spare parts | - | 167,559.70 | No | - |
Total | 6,055,875,357.64 | 15,970,104,295.17 | 3,915,188,036.21 |
The price of the Group’s purchase from related parties is based on contracts agreed by both parties.Note:The company calculated the actual amount of related party transactions according to the related parties under the same controlof the South Group, and compared with the transaction amount approved at the beginning of the year.
(2) Goods sold and services offered
In RMB Yuan
Related parties | Nature of the transaction | Current amount | Prior-period Amount |
Changan Ford Automobile Co., Ltd. | Sales of spare parts、staff support | 743,941.88 | 856,081.97 |
Changan Mazda Automobile EngCo., Ltd. | Sales of spare parts、staff support | 4,036,655.18 | 2,683,010.71 |
Changan Mazda Engine Co., Ltd. | Sales of spare parts、staff support | - | 12,830.19 |
Nanjing Chelai Travel Technology Co., Ltd. | Sales of spare parts | - | 50,442.48 |
Chongqing Changan Kuayue Automobile Co., Ltd. | Training fee | 137,603.78 | 5,913.00 |
Hangzhou Chelizi Intelligent Technology Co., Ltd. | Car rental income | - | 8,193,799.97 |
Chongqing Changan New Energy Automobile Technology Co., Ltd. | Income from trademark right | 972,051,413.45 | - |
Chongqing Changan Industrial (Group) Co., Ltd. | Sales of spare parts | - | 124,339.62 |
Chengdu Lingchuan Special Industry Co., Ltd. | Electricity fee | - | 2,011.39 |
Chengdu Lingchuan Vehicle Fuel Tank Co., Ltd. | Sales of spare parts | 1,668,185.97 | 1,362,120.82 |
Yunnan Xiyi Industry Co., Ltd. | Sales of vehicles and spare parts | 2,559,166.80 | 2,876,531.50 |
Chongqing Shangfang Auto Parts Co., Ltd. | Sales of spare parts | - | 20,037.74 |
Chongqing Dajiang Yuqiang Plastic | Sales of vehicles and spare parts | 558,413.01 | 345,391.14 |
Related parties | Nature of the transaction | Current amount | Prior-period Amount |
Products Co., Ltd. | |||
Chongqing Jianshe Vehicle Air Conditioner Co., Ltd. | Sales of vehicles and spare parts | - | 12,037.74 |
Ordnance Equipment Group Finance Co., Ltd. | Sales of vehicles and spare parts | - | 1,260,010.87 |
Chengdu Wanyou Filter Co., Ltd. | Sales of spare parts、Training fee | - | 76,460.18 |
Chongqing Yihong Engineering Plastic Products Co., Ltd. | Electricity fee | - | 943.30 |
Chongqing Changan Industry (Group) Co., Ltd. | Sales of vehicles and spare parts | - | 312,427.84 |
Chongqing Changan Construction Engineering Co., Ltd. | Sales of vehicles and spare parts | - | 19,563.79 |
China Changan Automobile Group Co., Ltd. Chongqing Qingshan Transmission Branch | Sales of vehicles and spare parts | 1,579,125.47 | 270,959.66 |
Sichuan Ningjiang Shanchuan Machinery Co., Ltd. | Sales of vehicles | 305,799.06 | - |
Chongqing Changan Minsheng Logistics Co., Ltd. | Sales of vehicles and spare parts | 507,924.04 | 9,676,923.83 |
Chengdu Wanyou Xiangyu Automobile Sales Service Co., Ltd. | Sales of spare parts | 514,114,179.34 | 414,364,744.60 |
Chongqing Anfu Automobile Marketing Co., Ltd. | Sales of spare parts | 7,627,054.89 | 34,296,238.49 |
China Changan Automobile Group Tianjin Sales Co., Ltd. | Sales of spare parts | 62,075,372.58 | 62,048,690.92 |
Chengdu Ningjiang Showa Auto Parts Co., Ltd. | Sales of vehicles and spare parts | - | 559,797.07 |
Harbin Dongan Automobile Power Co., Ltd. | Sales of vehicles and spare parts | 31,887.37 | 6,860,735.86 |
Harbin Dongan Automobile Engine Manufacturing Co., Ltd. | Sales of vehicles and spare parts | 23,028,367.10 | 11,294,757.38 |
China North Industries Group Financial Leasing Co., Ltd. | Sales of vehicles and spare parts | 77,547.17 | - |
Wanyou Automobile Investment Co., Ltd. | Sales of vehicles and spare parts | 264,690,859.01 | 194,731,627.80 |
Chengdu Wanyou Automobile Trading Service Co., Ltd. | Sales of vehicles and spare parts | 190,745,183.84 | 173,518,730.23 |
Chongqing Wanyou Economic Development Co., Ltd. | Sales of vehicles and spare parts | 695,050,958.14 | 602,957,695.96 |
Chongqing Wanyou Zunda Automobile Sales Service Co., Ltd. | Sales of vehicles and spare parts | 131,579,690.10 | 150,130,921.74 |
Yunnan Wanyou Automobile Sales | Sales of vehicles and spare parts | 437,318,866.83 | 309,384,958.88 |
Related parties | Nature of the transaction | Current amount | Prior-period Amount |
Service Co., Ltd. | |||
Guizhou Wanyou Automobile Sales Service Co., Ltd. | Sales of vehicles and spare parts | 370,715,806.38 | 347,551,447.54 |
Yunnan Xiangyu Automobile Sales Service Co., Ltd. | Sales of vehicles and spare parts | 43,517,953.51 | 45,082,563.98 |
Panzhihua Wanyou Automobile Sales Service Co., Ltd. | Sales of vehicles and spare parts | 144,054.09 | - |
Ya'an Wanyou Automobile Sales Service Co., Ltd. | Sales of vehicles and spare parts | 252,146.29 | - |
Chongqing Wanyou Ducheng Automobile Sales Service Co., Ltd. | Sales of vehicles and spare parts | 347,013.72 | 5,998.70 |
Chongqing Wanyou Xingjian Automobile Sales Service Co., Ltd. | Sales of vehicles and spare parts | 496,623.26 | - |
Luzhou Wanyou Automobile Service Co., Ltd. | Sales of vehicles and spare parts | 284,227.69 | - |
Chengdu Wanyou Automobile Sales Service Co., Ltd. | Sales of vehicles and spare parts | (196,660.99) | 3,373,560.20 |
Bazhong Wanyou Automobile Sales Service Co., Ltd. | Sales of vehicles and spare parts | 183,115.86 | - |
China Changan Automobile Group Hefei Investment Co., Ltd. | Sales of vehicles and spare parts | 66,969,966.54 | - |
Total | 3,793,202,441.36 | 2,384,324,307.09 |
The price of the Group’s purchase from related parties is based on contracts agreed by both parties.
(3) Related-party leasing
Rent assets to related parties
In RMB Yuan
Lessee | Type of leased assets | Starting date | Expiring date | Report period recognized rental |
Chongqing Changan Industrial (Group) Co., Ltd. | Building | 2018.01.01 | 2032.12.31 | 3,283,373.71 |
Chongqing Changan New Energy Automobile Technology Co., Ltd. | Building | 2020.01.01 | 2020.12.31 | 2,098,588.40 |
Chongqing Changan New Energy Automobile Technology Co., Ltd. | Battery workshop | 2020.01.01 | 2020.12.31 | 1,175,045.73 |
Chongqing Changan Min Sheng Logistics Co., Ltd. | Building | 2019.10.01 | 2020.09.30 | 601,461.41 |
Rent assets from related parties
In RMB Yuan
Lessor | Type of leased assets | Starting date | Expiring date | Report period recognized rental |
(4) Other related transactions
Integrated service charges
In RMB Yuan
Related parties | Nature of the transaction | Report period Amount | Same period of last period Amount |
Changan Industries (Group) Co. Ltd | Payment of land rental fees | 13,960,191.76 | 13,960,191.76 |
Payment of building rental fees | 2,129,622.09 | 2,320,098.28 | |
Payment of utilities | 62,495,905.46 | 41,936,461.05 | |
Payment of fire fighting fees | - | - | |
Others | 4,286,872.15 | 5,598,032.75 | |
Total | 82,872,591.46 | 63,814,783.84 |
Purchase of project materials
In RMB Yuan
Related parties | Report period Amount | Same period of last period Amount |
Chongqing Changan Construction Co., Ltd | 66,354,530.30 | 219,003,991.17 |
Chongqing Changan Min Sheng Logistics Co., Ltd. | 1,646,984.15 | 510,059.11 |
Changan Industries (Group) Co. Ltd | 17,522.13 | 6,163.00 |
Total | 68,019,036.58 | 219,520,213.28 |
Staff expenses for technical supporting
In RMB Yuan
Related parties | Report period Amount | Same period of last period Amount |
Changan Mazda Automobile Co.,Ltd. | 7,021,656.61 | 7,242,531.36 |
Changan Ford Automobile Co.,Ltd. | 9,057,020.82 | 10,419,283.74 |
Changan Mazda Engine Co., Ltd. | - | 833,481.46 |
Jiangling Holding Co., Ltd. | - | 884,649.40 |
Changan PSA Automobiles Co., Ltd. | - | 242,271.06 |
Hainan Anxinxing Information Technology Co., Ltd. | - | 652,302.36 |
Total | 16,078,677.43 | 20,274,519.38 |
Techonology development service charges
In RMB Yuan
Related parties | Report period Amount | Same period of last period Amount |
Changan Ford Automobile Co.,Ltd. | - | 769,811.32 |
Harbin Dongan Auto Engine Co., Ltd. | - | 11,320,754.71 |
Total | - | 12,090,566.03 |
Collection of trademark use rights fees
In RMB Yuan
Related parties | Report period Amount | Same period of last period Amount |
Chongqing Changan Kuayue Automobile Co., Ltd. | 9,596,603.77 | 8,689,641.51 |
Related party monetary funds
In RMB Yuan
Related parties | Ending Amount | Beginning Amount |
China South Industries Group Finance Co., Ltd | 5,495,658,697.16 | 5,352,685,473.98 |
Changan Automobile Finance Co., Ltd | 3,500,000,000.00 | 1,200,000,000.00 |
In the first half of 2020, the annual rate of return of the company in the financial limited liability company of China South IndustriesGroup Finance Co., Ltd and Changan automobile finance co., ltd is 1.81% and 2.89% respectively.
BorrowingShort-term borrowing
In RMB Yuan
Related parties | Ending Amount | Beginning Amount |
China South Industries Group Finance Co., Ltd | 330,000,000.00 | 200,000,000.00 |
Interest income of deferred payment
In RMB Yuan
Related parties | Report period Amount | Same period of last period Amount |
Wanyou Automobile Investment Co., Ltd. | 18,756.64 | - |
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. | 624,381.42 | 373,037.00 |
China Changan Automobile Group Tianjin Sales Co., Ltd. | - | 14,735.00 |
Related parties | Report period Amount | Same period of last period Amount |
Chengdu Wanyou Auto Trade Service Co., Ltd. | 165,392.98 | 193,056.00 |
Yunnan Wanyou Automobile Sales & Service Co., Ltd. | 54,715.93 | 349,378.00 |
Guizhou Wanyou Automobile Sales & Service Co., Ltd. | 200,337.69 | 97,614.00 |
Guangxi Wanyou Automobile Sales & Service Co., Ltd. | - | 64,825.00 |
Nanning Wanyou Automobile Sales & Service Co., Ltd. | - | 34,018.00 |
Chongqing Wanyou Economic Development Co., Ltd. | 81,141.59 | 153,555.00 |
Yunnan Xiangyu Auto Sales and Service Co., Ltd. | - | 78,469.00 |
Co., Ltd. | 20,224.78 | - |
Total | 1,164,951.03 | 1,358,687.00 |
6. Payment and receivables of related parties
Payment receivables of related listed companies
In RMB Yuan
Items | Related parties | Ending balance | Beginning balance | ||
Book balance | Provision for bad-debts | Book balance | Provision for bad-debts | ||
Notes receivable | Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | 13,938,175.05 | - | 9,190,280.17 | - |
Notes receivable | Wanyou Automobile Investment Co., Ltd. | 2,191,420,000.00 | - | 2,602,280,000.00 | - |
Notes receivable | Chengdu Wanyou Automobile Trading Service Co., Ltd. | 26,500,000.00 | - | 9,500,000.00 | - |
Notes receivable | Chongqing Wanyou Economic Development Co., Ltd. | 15,000,000.00 | - | 8,000,000.00 | - |
Notes receivable | Guizhou Wanyou Automobile Sales and Service Co., Ltd | 16,500,000.00 | - | 3,500,000.00 | - |
Subtotal | 2,263,358,175.05 | - | 2,632,470,280.17 | - | |
Account receivable | Jiangling Holding Co., Ltd. | 39,964,487.77 | - | 40,768,788.19 | - |
Account receivable | Chongqing Changan Minsheng Logistics Co., Ltd. | 31,032,040.00 | - | 31,516,680.23 | - |
Account receivable | Changan Ford Automobile Co., Ltd. | 174,282.81 | - | 19,811,465.27 | - |
Account | Changan Weilai New Energy Automobile | - | - | 16,596,799.90 | - |
Items | Related parties | Ending balance | Beginning balance | ||
Book balance | Provision for bad-debts | Book balance | Provision for bad-debts | ||
receivable | Technology Co., Ltd. | ||||
Account receivable | Chongqing Changan Crossing Vehicle Co., Ltd. | 12,275,376.76 | - | 11,194,267.89 | - |
Account receivable | Harbin Dongan Automobile Engine Manufacturing Co., Ltd. | 5,077,565.84 | - | 9,855,355.88 | - |
Account receivable | Changan Mazda Automobile Co., Ltd. | - | - | 5,775,176.73 | - |
Account receivable | Changan Mazda Engine Co., Ltd. | - | - | 5,042,050.65 | - |
Account receivable | China Changan Automobile Group Co., Ltd. Chongqing Qingshan Transmission Branch | 1,647,356.43 | - | 1,737,782.37 | - |
Account receivable | Chongqing Changan Industry (Group) Co., Ltd. | 719,539.69 | - | 719,539.69 | - |
Account receivable | Hainan Anxinxing Information Technology Co., Ltd. | - | - | 555,058.16 | - |
Account receivable | - | - | 13,398.00 | - | |
Account receivable | Guangxi Wanyou Automobile Sales Service Co., Ltd. | - | - | 997.60 | - |
Account receivable | Chongqing Wanyou Economic Development Co., Ltd. | - | - | 50.00 | - |
Account receivable | Changan Auto Finance Co., Ltd. | 34,280.44 | - | - | - |
Account receivable | Chongqing Changan New Energy Automobile Technology Co., Ltd. | 1,125,261,727.03 | - | - | - |
Subtotal | 1,216,186,656.77 | - | 143,587,410.56 | - | |
Other receivable | Changan Ford Automobile Co.,Ltd. | 124,312,677.99 | - | 124,312,677.99 | - |
Other receivable | Ordnance Equipment Group Finance Co., Ltd. | 222,083.89 | - | - | - |
Other receivable | Ordnance Equipment Group Finance Co., Ltd. | 1,157,446.69 | - | 1,157,446.69 | - |
Other | Hafei Automobile Co., Ltd. | 1,500,000.00 | - | 1,500,000.00 | - |
Items | Related parties | Ending balance | Beginning balance | ||
Book balance | Provision for bad-debts | Book balance | Provision for bad-debts | ||
receivable | |||||
Other receivable | Changan Mazda Automobile Co., Ltd. | - | 8,505,710.03 | - | |
Other receivable | Chongqing Changan Minsheng Logistics Co., Ltd. | - | 2,000.00 | - | |
Subtotal | 127,192,208.57 | - | 135,477,834.71 | - | |
Advanced payment | Chongqing Changan New Energy Automobile Technology Co., Ltd. | 1,746,847.67 | - | - | - |
Advanced payment | Sichuan Ningjiang Shanchuan Machinery Co., Ltd. | 698.29 | - | - | - |
Subtotal | 1,747,545.96 | - | - | - |
Accounts payable to related parties of listed companies
In RMB Yuan
Items | Related parties | Ending balance | Beginning balance |
Notes payable | Chongqing Changan New Energy Automobile Technology Co., Ltd. | 50,758,200.00 | - |
Notes payable | Hubei Xiaogan Huazhong Automotive Lamp Co., Ltd. | 14,190,000.00 | 10,780,000.00 |
Notes payable | Chongqing Construction Tongda Industrial Co., Ltd. | 9,790,000.00 | 1,830,000.00 |
Notes payable | Chongqing Shangfang Auto Parts Co., Ltd. | 13,430,000.00 | 4,290,000.00 |
Notes payable | Chongqing Dajiang Yuqiang Plastic Products Co., Ltd. | 76,250,000.00 | 53,810,000.00 |
Notes payable | Chongqing Jianshe Vehicle Air Conditioner Co., Ltd. | 54,807,896.33 | 33,330,000.00 |
Notes payable | Chengdu Wanyou Filter Co., Ltd. | 13,590,000.00 | 21,280,000.00 |
Notes payable | Chengdu Jialing Huaxi Optical Precision Machinery Co., Ltd. | 7,820,000.00 | 5,990,000.00 |
Notes payable | Chongqing Nexteer Steering System Co., Ltd. | 335,060,000.00 | 74,380,000.00 |
Items | Related parties | Ending balance | Beginning balance |
Notes payable | Chongqing Changan Industry (Group) Co., Ltd. | 1,052,750.94 | - |
Notes payable | Hubei Huazhong Marelli Automotive Lighting Co., Ltd. | 35,970,000.00 | 20,220,000.00 |
Notes payable | Chongqing Changan Construction Engineering Co., Ltd. | 73,390,060.00 | 121,867,838.20 |
Notes payable | China Changan Automobile Group Co., Ltd. Chongqing Qingshan Transmission Branch | 481,590,000.00 | 2,340,000.00 |
Notes payable | Sichuan Jian'an Industry Co., Ltd. | 8,900,000.00 | 9,040,000.00 |
Notes payable | Southern Inte Air Conditioning Co., Ltd. | 175,960,000.00 | 23,620,000.00 |
Notes payable | Sichuan Ningjiang Shanchuan Machinery Co., Ltd. | 41,910,000.00 | 20,130,000.00 |
Notes payable | Chengdu Huachuan Denso Co., Ltd. | 3,970,000.00 | 5,250,000.00 |
Notes payable | Southern Trina Chassis Systems Co., Ltd. | 1,800,000.00 | - |
Notes payable | Chongqing Changan Minsheng Logistics Co., Ltd. | 245,490,874.09 | 208,474,669.94 |
Notes payable | Chengdu Ningjiang Showa Auto Parts Co., Ltd. | 53,630,000.00 | 33,410,000.00 |
Notes payable | Harbin Dongan Automobile Power Co., Ltd. | 448,020,000.00 | 456,350,000.00 |
Notes payable | Harbin Dongan Automobile Engine Manufacturing Co., Ltd. | 272,510,000.00 | 215,280,000.00 |
Notes payable | Southern Faurecia Auto Parts Co., Ltd. | 10,900,000.00 | 10,430,000.00 |
Notes payable | Chongqing Wanyou Economic Development Co., Ltd. | - | 85,000,000.00 |
Notes payable | Chongqing Dajiang Jiexin Forging Co., Ltd. | - | 990,000.00 |
Notes payable | Chongqing Changfeng Jiquan Machinery Co., Ltd. | - | 6,530,000.00 |
Notes payable | Chengdu Lingchuan Special Industry Co., Ltd. | - | 11,750,000.00 |
Items | Related parties | Ending balance | Beginning balance |
Subtotal | 2,430,789,781.36 | 1,436,372,508.14 | |
Account payable | Changan Ford Automobile Co., Ltd. | 2,205,450.09 | - |
Account payable | Jiangling Holdings Co., Ltd. | 102,373.73 | 54,252,872.36 |
Account payable | Hangzhou Cherizi Intelligent Technology Co., Ltd. | 47,430.00 | 10,300.00 |
Account payable | Chongqing Changan New Energy Automobile Technology Co., Ltd. | 51,067,341.49 | - |
Account payable | Chongqing Qingshan Transmission Sales Co., Ltd. | 4,688,757.02 | 6,000,654.43 |
Account payable | Hubei Xiaogan Huazhong Automotive Lamp Co., Ltd. | 20,321,529.68 | 16,125,402.98 |
Account payable | Chongqing Changrong Machinery Co., Ltd. | 31,588,885.68 | 34,631,661.73 |
Account payable | Chengdu Lingchuan Special Industry Co., Ltd. | 83,416.46 | 11,517,508.37 |
Account payable | Chengdu Lingchuan Vehicle Fuel Tank Co., Ltd. | 1,322,372.50 | 2,314,165.15 |
Account payable | Chongqing Changfeng Jiquan Machinery Co., Ltd. | 18,385.26 | 771,021.74 |
Account payable | Chongqing Construction Tongda Industrial Co., Ltd. | 12,686,425.28 | 13,392,905.91 |
Account payable | Yunnan Xiyi Industry Co., Ltd. | 10,359,553.43 | 10,260,364.91 |
Account payable | Chongqing Shangfang Auto Parts Co., Ltd. | 10,053,054.65 | 9,623,137.04 |
Account payable | Chongqing Dajiang Yuqiang Plastic Products Co., Ltd. | 22,871,520.77 | 43,490,517.76 |
Account payable | Chongqing Jianshe Vehicle Air Conditioner Co., Ltd. | 23,175,345.06 | 36,717,236.76 |
Account payable | Chengdu Wanyou Filter Co., Ltd. | 24,267,680.72 | 14,735,390.09 |
Account payable | Chongqing Yihong Engineering Plastic Products Co., Ltd. | 635,885.86 | 2,483,796.69 |
Account | Chengdu Jialing Huaxi Optical Precision Machinery Co., Ltd. | 2,361,138.41 | 2,296,210.05 |
Items | Related parties | Ending balance | Beginning balance |
payable | |||
Account payable | Chongqing Nexteer Steering System Co., Ltd. | 262,870,488.08 | 275,441,045.49 |
Account payable | Chongqing Dajiang Jiexin Forging Co., Ltd. | 705,714.98 | 407,750.93 |
Account payable | Chongqing Jialing Yimin Special Equipment Co., Ltd. | 104,496.50 | 104,496.50 |
Account payable | Chengdu Guangming Tianzhong Environmental Technology Co., Ltd. | 83,175.03 | 83,175.03 |
Account payable | Chongqing Xiyi Automobile Connecting Rod Co., Ltd. | 42,457.58 | 44,233.62 |
Account payable | Chongqing Changan Industry (Group) Co., Ltd. | 355,985.02 | 1,091,699.47 |
Account payable | Hubei Huazhong Marelli Automotive Lighting Co., Ltd. | 131,231,660.26 | 124,726,255.34 |
Account payable | China Changan Automobile Group Co., Ltd. Chongqing Qingshan Transmission Branch | 232,087,750.72 | 394,961,436.10 |
Account payable | Sichuan Jian'an Industry Co., Ltd. | 74,999,608.58 | 92,109,316.98 |
Account payable | Southern Inte Air Conditioning Co., Ltd. | 56,895,179.13 | 166,469,317.60 |
Account payable | Sichuan Ningjiang Shanchuan Machinery Co., Ltd. | 18,709,148.33 | 9,726,316.79 |
Account payable | Chengdu Huachuan Denso Co., Ltd. | 40,851,167.54 | 37,881,398.09 |
Account payable | Southern Trina Chassis Systems Co., Ltd. | 128,293,897.03 | 113,131,244.68 |
Account payable | Chongqing Changan Minsheng Logistics Co., Ltd. | 10,442,349.66 | 77,014,716.44 |
Account payable | Hafei Automobile Co., Ltd. | 661,117.68 | 661,117.68 |
Account payable | Chengdu Ningjiang Showa Auto Parts Co., Ltd. | 28,498,953.39 | 49,157,712.35 |
Account payable | Harbin Dongan Automobile Power Co., Ltd. | 218,070,561.01 | 203,956,811.46 |
Account | Harbin Dongan Automobile Engine Manufacturing Co., Ltd. | 133,347,777.10 | 228,154,563.74 |
Items | Related parties | Ending balance | Beginning balance |
payable | |||
Account payable | Chongqing Wanyou Economic Development Co., Ltd. | 216,078,209.48 | 75,873,758.78 |
Account payable | Chongqing Wanyou Xingjian Automobile Sales Service Co., Ltd. | 9,264.78 | - |
Account payable | Southern Faurecia Auto Parts Co., Ltd. | 76,765,551.38 | 90,040,708.53 |
Account payable | Chongqing Dajiang Xinda Vehicle Co., Ltd. | - | 4,267,143.49 |
Account payable | Chongqing Automotive Air Conditioner Co., Ltd. | - | 205,041.51 |
Account payable | Chongqing Changan Crossing Vehicle Co., Ltd. | - | 47,749.88 |
Account payable | Beijing Beiji Mechanical and Electrical Industry Co., Ltd. | - | 6,129.88 |
Account payable | Changan Ford Automobile Co., Ltd. | - | 5,890.05 |
Subtotal | 1,848,961,059.35 | 2,204,192,176.38 | |
Contract liabilities | Changan Mazda Automobile Co., Ltd. | 1,423,660.83 | - |
Contract liabilities | Changan Mazda Engine Co., Ltd. | 3,256,185.92 | - |
Contract liabilities | Chongqing Shangfang Auto Parts Co., Ltd. | 3,980.00 | 3,980.00 |
Contract liabilities | China Changan Automobile Group Co., Ltd. Chongqing Qingshan Transmission Branch | 1.57 | - |
Contract liabilities | Chongqing Wanyou Automobile Sales Service Co., Ltd. | 86,425.66 | - |
Contract liabilities | Chengdu Wanyou Xiangyu Automobile Sales Service Co., Ltd. | 27,144,500.69 | 65,138,573.75 |
Contract liabilities | Hafei Automobile Co., Ltd. | 670,500.00 | 670,500.00 |
Contract liabilities | Chongqing Anfu Automobile Marketing Co., Ltd. | 2,180,268.00 | 1,507,840.00 |
Contract | China Changan Automobile Group Tianjin Sales Co., Ltd. | 3,680,686.89 | 2,144,856.26 |
Items | Related parties | Ending balance | Beginning balance |
liabilities | |||
Contract liabilities | Wanyou Automobile Investment Co., Ltd. | 5,347,008.74 | 69,383,313.74 |
Contract liabilities | Chengdu Wanyou Automobile Trading Service Co., Ltd. | 7,890,116.87 | 39,526,387.91 |
Contract liabilities | Chongqing Wanyou Economic Development Co., Ltd. | 44,265,770.78 | 142,137,256.41 |
Contract liabilities | Chongqing Wanyou Zunda Automobile Sales Service Co., Ltd. | 7,282,961.81 | 755,716.55 |
Contract liabilities | Yunnan Wanyou Automobile Sales Service Co., Ltd. | 18,994,713.86 | 42,896,658.83 |
Contract liabilities | Guizhou Wanyou Automobile Sales Service Co., Ltd. | 27,977,493.85 | 52,269,285.08 |
Contract liabilities | Yunnan Xiangyu Automobile Sales Service Co., Ltd. | 1,971,343.67 | 5,542,733.67 |
Contract liabilities | Panzhihua Wanyou Automobile Sales Service Co., Ltd. | 2,173.15 | - |
Contract liabilities | Ya'an Wanyou Automobile Sales Service Co., Ltd. | 21,840.00 | - |
Contract liabilities | Chongqing Wanyou Ducheng Automobile Sales Service Co., Ltd. | 87,279.35 | - |
Contract liabilities | Chongqing Wanyou Xingjian Automobile Sales Service Co., Ltd. | 77,522.48 | - |
Contract liabilities | Luzhou Wanyou Automobile Service Co., Ltd. | 24,390.55 | - |
Contract liabilities | Chengdu Wanyou Automobile Sales Service Co., Ltd. | 500,317.00 | 1,489,422.47 |
Contract liabilities | Bazhong Wanyou Automobile Sales Service Co., Ltd. | 89,330.80 | 50,000.00 |
Contract liabilities | Jiangling Holdings Co., Ltd. | - | 6,854,200.00 |
Contract liabilities | China Changan Automobile Group Hefei Investment Co., Ltd. | 4,776,515.65 | 4,033,352.74 |
Contract liabilities | Changan Auto Finance Co., Ltd. | - | 41,300.00 |
Contract | Chongqing Changan Minsheng Logistics Co., Ltd. | - | 259.00 |
Items | Related parties | Ending balance | Beginning balance |
liabilities | |||
Subtotal | 157,754,988.12 | 434,445,636.41 | |
Other payables | Yunnan Wanyou Automobile Sales Service Co., Ltd. | 10,599.68 | 108,223.30 |
Other payables | Guizhou Wanyou Automobile Sales Service Co., Ltd. | 5,475.56 | 5,016.48 |
Other payables | Panzhihua Wanyou Automobile Sales Service Co., Ltd. | 13,793.08 | 16,219.40 |
Other payables | Ya'an Wanyou Automobile Sales Service Co., Ltd. | 1,853.44 | 12,267.46 |
Other payables | Chongqing Wanyou Ducheng Automobile Sales Service Co., Ltd. | 3,116.82 | 5,889.92 |
Other payables | Chongqing Changan Minsheng Logistics Co., Ltd. | 442,398,207.89 | 191,519,531.45 |
Other payables | Chongqing Changan Crossing Vehicle Co., Ltd. | - | 64,412,855.00 |
Other payables | Chongqing Changan Industry (Group) Co., Ltd. | 19,834,668.85 | 4,770,656.96 |
Other payables | Chongqing Changan Construction Engineering Co., Ltd. | 1,105,910.99 | 2,356,505.24 |
Other payables | Chongqing Changan Property Management Co., Ltd. | 4,656,723.41 | 1,655,478.59 |
Other payables | Changan Ford Automobile Co., Ltd. | - | 1,461,694.00 |
Other payables | Sichuan Jian'an Industry Co., Ltd. | 6,188.00 | 579,179.33 |
Other payables | Chongqing Wanyou Economic Development Co., Ltd. | 23,882.15 | 415,466.55 |
Other payables | Southern Inte Air Conditioning Co., Ltd. | - | 190,324.96 |
Other payables | Changan Mazda Engine Co., Ltd. | - | 144,115.79 |
Other payables | Chengdu Wanyou Filter Co., Ltd. | 120,000.00 | 121,303.84 |
Other payables | Nanning Wanyou Automobile Sales Service Co., Ltd. | - | 120,520.60 |
Items | Related parties | Ending balance | Beginning balance |
Other payables | China Changan Automobile Group Tianjin Sales Co., Ltd. | - | 100,000.00 |
Other payables | Harbin Dongan Automobile Power Co., Ltd. | - | 67,239.90 |
Other payables | Southern Trina Chassis Systems Co., Ltd. | 36,431.20 | 65,122.43 |
Other payables | Chengdu Wanyou Automobile Trading Service Co., Ltd. | - | 58,295.80 |
Other payables | Chengdu Huachuan Denso Co., Ltd. | 31,591.08 | 51,037.08 |
Other payables | Chongqing Dajiang Xinda Vehicle Co., Ltd. | - | 50,000.00 |
Other payables | Guangxi Wanyou Automobile Sales Service Co., Ltd. | - | 48,424.07 |
Other payables | Chengdu Lingchuan Special Industry Co., Ltd. | - | 26,343.16 |
Other payables | Chengdu Wanyou Xiangyu Automobile Sales Service Co., Ltd. | - | 20,493.00 |
Other payables | Hubei Xiaogan Huazhong Automotive Lamp Co., Ltd. | - | 10,951.72 |
Other payables | Sichuan Ningjiang Shanchuan Machinery Co., Ltd. | - | 8,324.53 |
Other payables | Luzhou Wanyou Automobile Service Co., Ltd. | - | 3,770.68 |
Other payables | Bazhong Wanyou Automobile Sales Service Co., Ltd. | - | 2,683.74 |
Other payables | Chengdu Wanyou Trading Co., Ltd. | 816.23 | 1,176.14 |
Other payables | Chongqing Changfeng Jiquan Machinery Co., Ltd. | - | 800.00 |
Other payables | Hubei Huazhong Marelli Automotive Lighting Co., Ltd. | - | 389,785.41 |
Other payables | Chongqing Nexteer Steering System Co., Ltd. | - | 307,910.00 |
Other payables | Harbin Dongan Automobile Engine Manufacturing Co., Ltd. | 290,793.25 | 304,924.09 |
Items | Related parties | Ending balance | Beginning balance |
Other payables | Chongqing Anfu Automobile Marketing Co., Ltd. | - | 300,000.00 |
Other payables | Chongqing Changrong Machinery Co., Ltd. | - | 299,999.63 |
Other payables | Chongqing Changan New Energy Automobile Technology Co., Ltd. | 177,488.10 | - |
Other payables | Chongqing Changan Minsheng Logistics Co., Ltd. | 20,000.00 | - |
Other payables | Chongqing Wanyou Zunda Automobile Sales Service Co., Ltd. | 550,000.00 | - |
Other payables | Luzhou Wanyou Automobile Service Co., Ltd. | 4,544.61 | - |
Other payables | Southern Faurecia Auto Parts Co., Ltd. | 254,250.00 | - |
Subtotal | 469,546,334.34 | 270,012,530.25 |
XIII. Share-based payments
1. General information
2020.06 | |
The total amount of the employee services as a result of the share-based payments |
The equity settled share based payments are as follows:
2019.06 | |
The accumulated amount of equity settled share-based payments included in capital reserve | |
The amount of equity settled share-based payments included in expense |
2. Share-based payment scheme
On 23 September 2016, the share option was approved to be granted on 23 September 2016 by the 12th meetingof the seventh session of the Board of Directors and the 8th meeting of the seventh session of Board ofSupervisors. According to the share option scheme, the Company granted 29,140,000 options to 202 employees,conferring rights to purchase 1 A share of Changan Automobile for each option before the expiration date. Shareoptions are granted to directors, chief executive officers and key technical and management personnel.
The share option will expire in 5 years. After the vesting period of 24 month since the grant date, the option shallbe exercised in three periods. In each exercise period, 1/3 of the total options could be exercised when theprescribed performance conditions are met. The exercise price is RMB14.12 per share. The options granted shallbe exercised before the expiration date. The share should not be exercised unless the prescribed conditions are met.The exercisable shares not exercised in above periods will be written off by the Company. The company hasdisclosed in June 1, 2017 "The 2016 annual notice of the implementation of equity distribution".According to thecompany's stock option incentive plan (Revised Draft), the relevant provisions on the stock option priceadjustment, if dividends and capital reserve capitalization, stock dividends, stock split delivery, allotment,issuance or reduced matters occur before the stock exercise, the stock option price should be adjusted. Theexercise price of the adjusted stock option is 13.478 yuan. The incentive object must be exercised within thevalidity period of the option exercise. If the exercise conditions are not met, the current stock options may not beexercised. If part of the stock options that meet the exercise conditions but are not exercised in the above exerciseperiod are cancelled by the company.
The performance indicators of the share option includes:
(1) Return on equity (ROE)
(2) Net profit growth rate attributable to owners
(3) Economic value added (EVA), and
(4) The ratio of prime operating revenue to operating revenue
The above net profit and ROE are based on net profit and weighted average net assets attributable to ownersdeducting non-recurring gains and losses.
The exercise terms of share options:
Exercise Period | Exercise Ratio | Exercise Time | Exercise Terms |
The 1st exercise period | 1/3 | The 1st trading day since 24 month after the grant date to the last trading day since 36 month after the grant date | ROE≥15% The above indicators≥benchmark average, and ≥75 quartile △EVA>0; The ratio of prime operating revenue to operating revenue≥95% |
The 2nd exercise period | 1/3 | The 1st trading day since 36 month after the grant date to the last trading day since 48 month after the grant date | ROE≥15% The above indicators≥benchmark average, and ≥75 quartile △EVA>0; The ratio of prime operating revenue to operating |
The 3rd exercise period | 1/3 | The 1st trading day since 48 month after the grant date to the last trading day since 60 month after the grant date | ROE≥15% The above indicators≥benchmark average, and ≥75 quartile △EVA>0; The ratio of prime operating revenue to operating revenue≥95% |
On the grant date, the fair value of the above stock options of the Company was RMB 139,527,600.00. As theperformance appraisal target of the first and second exercise periods of the stock option incentive plan of thecompany has not reached the target, and a total of 21 incentive objects have respectively terminated the laborcontract with the company, the company no longer meets the stock option incentive conditions. On December 31,2019, a total of 29.14 million stock options were cancelled. The share option fee confirmed by the company inJune 2019 is RMB 0.00.
The fair value of the equity-settled share option is determined using Black-Scholes model based on the estimate inaccordance with the terms and conditions of the share options. The input variables are as follows:
Valuation factors | 2016 |
Dividend rate (%) | 0% |
Expected volatility (%) | 29.78% |
Historical volatility (%) | 29.78% |
Risk-free rate (%) | 2.4987% |
Expected duration (year) | 4 |
Share price as at the grant date (Yuan) | 15.43 |
The expected duration of the option is based on the historical data of the past, which is not necessarily reflected inthe exercise of the right in future.The expected volatility is based on the assumption that the historical volatilityreflects the future trend, but not necessarily the actual results.XIV. Commitments and Contingencies
1. Significant commitments
Investment commitmentBy June 30th 2020, the group has no investment commitment that has been signed but not yet fully fulfilled.
2. Contingencies
By June 30th 2020, the company has no significant contingencies that need to be published.XV. Events after the balance sheet date
1. Significant non-adjusting events
□ Applicable √Not Applicable
2. Distribution of profit
□ Applicable √ Not Applicable
3. Sales return
□ Applicable √ Not Applicable
XVI. Other important events
1. Correction of accounting error of earlier stage
□ Applicable √ Not Applicable
2. Debt restructuring
□ Applicable √ Not Applicable
3. Asset replacement
□ Applicable √ Not Applicable
4. Annuity plan
□ Applicable √ Not Applicable
5. Discontinuing operation
□ Applicable √ Not Applicable
6. Information on business branch
Identify business branch of the group according to internal organization structure, management requirements, internal reporting rules,and identify the report and information disclosed of the brand based on the identified branch.Identify business branch of the group according to internal organization structure, management requirements, internal reporting rules,
and identify the report and information disclosed of the brand based on the identified branch.business branch refers to the component of the group that meets the following conditions:
(1) the component has income and expenditure incurred in routine activities;
(2) the management of the company regularly evaluates the operation performance of the component to decide the company’sresource distribution and evaluate its overall performance
(3) The group receives related accounting information on the financial situation, operation performance and cash flow.If two or more components have similar economic features and meet the conditions, they should be consolidated into one branch.Income and profit of the group consists of automobile manufacturing and domestic sales. Main asset of the group is in China. Themanagement of the group evaluates the performance of the group as a whole. Thus, report of the branch is not included in this year’sreport.
XVII. Notes to the main items of the parent company’s financial statements
1. Account Receivables
(1)The aging analysis is as follow:
In RMB Yuan
Account receivable age | Ending | Beginning |
Within 1 year | 4,258,303,879.00 | 3,555,684,864.42 |
1 to 2 years | 644,991,910.51 | 822,210,403.02 |
2 to 3 years | 568,696,835.44 | 482,665,541.27 |
Over 3 years | 360,166,448.23 | 256,419,059.60 |
Total | 5,832,159,073.18 | 5,116,979,868.31 |
Bad debt provision | -39,114,651.97 | -22,709,502.59 |
5,793,044,421.21 | 5,094,270,365.72 |
(2) The changes in the provision for bad debts of accounts receivable are as follows
In RMB Yuan
Items | Beginning balance | Provision | Decrease | Ending balance |
2020.06.30 | 22,709,502.59 | 16,405,289.98 | 140.60 | 39,114,651.97 |
2019.12.31 | 15,559,782.05 | 7,149,720.54 | 22,709,502.59 |
(3) Disclosure of accounts receivable
In RMB Yuan
Ending | ||
Book balance | Provision for bad-debts |
Amount | (%) | Amount | (%) | |
Individual assessment of credit expected loss and provision for bad debts | 5,533,699,691.47 | 94.88 | 10,079,188.59 | 0.18 |
Assess bad debt provision for expected credit expected loss according to credit risk characteristics combination | 298,459,381.71 | 5.12 | 29,035,463.38 | 9.73 |
Total | 5,832,159,073.18 | 100.00 | 39,114,651.97 | 0.67 |
Items | Beginning | |||
Book balance | Provision for bad-debts | |||
Amount | (%) | Amount | (%) | |
Individual assessment of credit expected loss and provision for bad debts | 4,991,086,298.96 | 97.54 | ||
Assess bad debt provision for expected credit expected loss according to credit risk characteristics combination | 125,893,569.35 | 2.46 | 22,709,502.59 | 18.04 |
Total | 5,116,979,868.31 | 100.00 | 22,709,502.59 | 0.44 |
(4) The parent company's portfolio of expected credit losses based on credit risk assessment is as follows:
In RMB Yuan
Ending | Beginning | |||||
Estimated book balance in default | Expected credit loss rate (%) | Lifetime expected credit loss | Estimated book balance in default | Expected credit loss rate (%) | Lifetime expected credit loss | |
Within 1 year | 262,887,578.65 | 2.66 | 6,990,427.49 | 90,224,930.90 | 2.49 | 2,248,850.10 |
1 to 2 years | 65.00 | 10.82 | 7.03 | 26.00 | 22.04 | 5.73 |
2 to 3 years | 10,885,166.00 | 34.02 | 3,703,548.10 | 18,843,871.50 | 32.27 | 6,080,101.72 |
3 to 4 years | 12,760,271.43 | 50.27 | 6,415,180.13 | 4,898,440.32 | 50.10 | 2,454,244.41 |
4 to 5 years | - | - | - | - | - | - |
Over 5 years | 11,926,300.63 | 100.00 | 11,926,300.63 | 11,926,300.63 | 100.00 | 11,926,300.63 |
Total | 298,459,381.71 | 9.73 | 29,035,463.38 | 125,893,569.35 | 18.04 | 22,709,502.59 |
(5)As of June 30, 2020, the top five accounts receivable totaled RMB 4,928,714,691.57, accounting for 84.51% of the totalaccounts receivable (As of December 31, 2019, the top five accounts receivable totaled RMB 4,011,467,403.94 , Accounting for
78.40% of the total accounts receivable).
(6)As of June 30, 2020, the Group has no accounts receivable that are derecognized as the transfer of financial assets (December31, 2019: None)
2. Other receivables
(1)The aging analysis is as follow:
In RMB Yuan
Account receivable age | Ending | Beginning |
Within 1 year | 1,833,502,273.67 | 601,025,929.83 |
1 to 2 years | 44,921,624.68 | 334,100,615.63 |
2 to 3 years | 203,660,776.86 | 259,642.21 |
Over 3 years | 9,493,155.47 | 9,493,155.47 |
Total | 2,091,577,830.68 | 944,879,343.14 |
Bad debt provision | -3,841,273.24 | - 3,718,197.34 |
2,087,736,557.44 | 941,161,145.80 |
(2)Other receivables are classified by nature as follows:
In RMB Yuan
Items | Ending | Beginning |
Equity transfer receivable | 798,700,000.00 | |
Subsidy | 5,318,000.00 | 3,458,000.00 |
Loans to subsidiaries | 1,077,303,980.00 | 640,557,716.20 |
Reserve fund | 31,996,661.76 | 36,352,884.22 |
Asset disposal | 5,789,491.11 | 23,424,046.17 |
Other receivables | 168,628,424.57 | 237,368,499.21 |
Total | 2,087,736,557.44 | 941,161,145.80 |
(3)The changes in bad debt provision for other receivables based on 12-month expected credit losses and the entire lifetimeexpected credit losses are as follows(Only for 2020):
In RMB Yuan
Bad debt provision | The first stage | The second stage | The second stage | Total |
Expected credit losses in the next 12 months | Expected credit loss for the entire life (Single evaluation) | Expected credit loss for the entire life (Group evaluation) | ||
Balance at the end of the previous year | 1,095,164,331.54 | 1,614,084,422.33 | 2,850,000.87 | 2,712,098,754.74 |
Changes in accounting policies | -157,274,027.00 | -1,609,945,384.60 | -1,767,219,411.60 | |
Balance on January 1, 2020 | 937,890,304.54 | 4,139,037.73 | 2,850,000.87 | 944,879,343.14 |
In this period, Balance on January 1, 2020 | ||||
--Transfer to the second stage | -2,700,041.57 | 2,700,041.57 | ||
--Transfer to the third stage | -826,113.91 | 826,113.91 | ||
--Turn back to the second stage | ||||
--Turn back to the first stage | ||||
Current provision | 1,241,942,939.89 | 1,241,942,939.89 | ||
Current return | -95,244,452.35 | -95,244,452.35 | ||
Ending balance |
The changes in the balance of other receivables are as follows:
In RMB Yuan
Bad debt provision | The first stage | The second stage | The second stage | Total |
Expected credit losses in the next 12 months | Expected credit loss for the entire life (Single evaluation) | Expected credit loss for the entire life (Group evaluation) | ||
Balance at the end of the previous year | 1,095,164,331.54 | 1,614,084,422.33 | 2,850,000.87 | 2,712,098,754.74 |
Changes in accounting policies | 102,251,573.00 | -1,609,945,384.60 | 0.00 | -1,507,693,811.60 |
Balance on January 1, 2019 | 1,197,415,904.54 | 4,139,037.73 | 2,850,000.87 | 1,204,404,943.14 |
In this period, Balance on January 1, 2019 | ||||
--Transfer to the second stage | -2,700,041.57 | 2,700,041.57 | ||
--Transfer to the third stage | -826,113.91 | 826,113.91 | ||
--Turn back to the second stage | ||||
--Turn back to the first stage | ||||
New in this period | 982,417,339.89 | 982,417,339.89 | ||
Termination confirmation | -95,244,452.35 | -95,244,452.35 | ||
Write off this year | ||||
Total | 2,081,888,750.51 | 6,012,965.39 | 3,676,114.78 | 2,091,577,830.68 |
(4)The changes in bad debt provision for other receivables based on 12-month expected credit losses and the entire lifetimeexpected credit losses are as follows(Only for 2019):
In RMB Yuan
Bad debt provision | The first stage | The second stage | The second stage | Total |
Expected credit losses in the next 12 months | Expected credit loss for the entire life (Single evaluation) | Expected credit loss for the entire life (Group evaluation) | ||
Balance on January 1, 2019 | 155,223.55 | 348,425.91 | 99,781.94 | 603,431.40 |
In this period, Balance on January 1, 2019 | ||||
--Transfer to the second stage | - | - | - | - |
--Transfer to the third stage | -348,425.91 | 348,425.91 | ||
--Turn back to the second stage | - | - | - | - |
--Turn back to the first stage | - | - | - | - |
Current provision | 135,958.46 | 111,643,227.46 | 2,501,574.96 | 114,280,760.88 |
Current return | - | - | - | - |
Resale of the current period | - | - | -99,781.94 | -99,781.94 |
Write off this year | - | - | - | - |
Other changes | - | - | - | - |
Total | 291,182.01 | 111,643,227.46 | 2,850,000.87 | 114,784,410.34 |
The changes in the balance of other receivables are as follows:
In RMB Yuan
Bad debt provision | The first stage | The second stage | The second stage | Total |
Expected credit losses in the next 12 months | Expected credit loss for the entire life (Single evaluation) | Expected credit loss for the entire life (Group evaluation) | ||
Balance on January 1, 2019 | 2,326,952,103.37 | 436,899.38 | 99,781.94 | 2,326,952,103.37 |
In this period, Balance on January 1, 2019 | ||||
--Transfer to the second stage | -1,664,613,313.78 | 1,664,613,313.78 | - | -1,664,613,313.78 |
--Transfer to the third stage | -2,413,101.49 | -436,899.38 | 2,850,000.87 | -2,413,101.49 |
--Turn back to the second stage | - | - | - | - |
(5) As of June 30, 2020, the top five other receivables are as follows:
In RMB Yuan
(6)As of June 30, 2020, the Group had no other receivables derecognized as financial asset transfers (December 31, 2019:
None).
--Turn back to the first stage | - | - | - | - |
New in this period | 706,450,278.94 | 516,085,890.00 | 1,222,536,168.94 | |
Termination confirmation | -271,211,635.50 | -566,614,781.45 | - | -837,826,416.95 |
Write off this year | - | - | -99,781.94 | -99,781.94 |
Other changes | - | |||
Total | 1,095,164,331.54 | 1,614,084,422.33 | 2,850,000.87 | 2,712,098,754.74 |
company name | Amount | Aging | Proportion to the total balance of other receivables (%) |
First place | 877,303,980.00 | within half year | 41.94 |
Second place | 798,700,000.00 | In half year | 38.19 |
Third place | 200,000,000.00 | 2 to 3 years | 9.56 |
Fourth place | 124,312,677.99 | within 5 year | 5.94 |
Fifth place | 10,944,887.98 | within 6 mounths | 0.52 |
Total | 2,011,261,545.97 | 96.15 |
3. Long-term equity investment
In RMB Yuan
Invested in | beginning amount | increase/decrease | Investment gains and losses under the equity method | Other equity changes | cash bonus in current period | Other reduction | impairment provision in current period | Ending balance | Impairment |
1、Joint ventures | |||||||||
Changan Ford Automobile Co., Ltd | 1,782,823,327.91 | -570,006,507.40 | 1,212,816,820.51 | ||||||
Changan Mazda Automobile Co.,Ltd. | 2,177,010,905.02 | 323,202,621.60 | 2,500,213,526.62 | ||||||
Changan Ford Mazda Engine Co., Ltd. | 830,272,340.69 | 11,597,486.28 | -37,000,000.00 | 804,869,826.97 | |||||
Changan PSA Automobiles Co., Ltd. | 346,038,983.87 | -114,234,986.00 | -231,803,997.87 | - | |||||
Changan Weilai New Energy Automobile Technology Co., Ltd. | -12,871,719.42 | -18,666,611.81 | 31,538,331.23 | - | |||||
Jiangling Investment Co., Ltd. | 2,081,815,165.31 | 34,848,792.52 | 2,116,663,957.83 | ||||||
2、Associated Enterprises | |||||||||
Chongqing Changan Kuayue Automobile Co., Ltd | 192,005,274.10 | 27,957,230.96 | 219,962,505.06 | ||||||
Chongqing Changan Kuayue Automobile Marketing Co., Ltd. | - | - | |||||||
Beijing Fang’an Xinyue taxi | - | - |
Invested in | beginning amount | increase/decrease | Investment gains and losses under the equity method | Other equity changes | cash bonus in current period | Other reduction | impairment provision in current period | Ending balance | Impairment |
Co., Ltd | |||||||||
Chongqing Auto Finance Co., Ltd. | 2,195,040,654.44 | 123,493,951.66 | 2,318,534,606.10 | ||||||
Hainan Anxinxing Information Technology Co., Ltd. | 3,560,384.10 | -795,039.88 | 2,765,344.22 | ||||||
Nanjing Chelai Travel Technology Co., Ltd. | 1,474,945.09 | -143,024.65 | 1,331,920.44 | ||||||
Hunan Guoxin Semiconductor Technology Co., Ltd. | 25,152,447.20 | -126,648.85 | 25,025,798.35 | ||||||
Nanjing Leading Equity Investment Partnership | 935,218,323.32 | 32.16 | 935,218,355.48 | ||||||
Nanjing Lingxing Equity Investment Management Co., Ltd. | 1,445,415.69 | -93,594.67 | 1,351,821.02 | ||||||
Jiangling Holding Co., Ltd. | 398,992,953.62 | -94,049,105.60 | 304,943,848.02 | ||||||
Chongqing Changan New Energy Automobile Technology Co., Ltd. | 1,610,174,778.05 | -153,230,307.40 | 1,456,944,470.65 | ||||||
3、Subsidiaries | |||||||||
Nanjing Changan Automobile Co., Ltd. | 422,533,259.00 | 422,533,259.00 | |||||||
Hebei Changan Automobile | 438,223,236.00 | 438,223,236.00 |
Invested in | beginning amount | increase/decrease | Investment gains and losses under the equity method | Other equity changes | cash bonus in current period | Other reduction | impairment provision in current period | Ending balance | Impairment |
Co., Ltd. | |||||||||
Chongqing Changan Automobile International Sales Service Co., Ltd. | 13,068,581.00 | 13,068,581.00 | |||||||
Chongqing Changan Automobile Customer Service Co., Ltd. | 29,700,000.00 | 29,700,000.00 | |||||||
Chongqing Changan Chelian Technology Co., Ltd. | 88,500,000.00 | 88,500,000.00 | |||||||
Chongqing Changan Special Vehicle Co., Ltd. | 2,500,000.00 | 2,500,000.00 | |||||||
Chongqing Changan Europe Design Center Co., Ltd | 155,469,913.50 | 155,469,913.50 | |||||||
Chongqing Changan new Engergy Automobile Co. Ltd | - | - | |||||||
Changan United Kingdom R&D Center Co., Ltd. | 250,093,850.95 | 250,093,850.95 | |||||||
Beijing Changan Automotive engineering and Technology Reseach Co., Ltd. | 1,000,000.00 | 1,000,000.00 | |||||||
Changan Japan Design Center Co., Ltd. | 1,396,370.15 | 1,396,370.15 | |||||||
Changan United States R&D | 10,243,460.00 | 10,243,460.00 |
Invested in | beginning amount | increase/decrease | Investment gains and losses under the equity method | Other equity changes | cash bonus in current period | Other reduction | impairment provision in current period | Ending balance | Impairment |
Center Co., Ltd. | |||||||||
Baoding Changan Bus Manufacturing Co., Ltd. | 176,002,613.18 | 176,002,613.18 | |||||||
Hefei Changan Automobile Co., Ltd | 35,367,765.23 | 35,367,765.23 | |||||||
Changan Automobile Russia Co., Ltd. | 251,242,589.15 | 251,242,589.15 | |||||||
Changan Brazil Holding Co., Ltd | 2,584,556.97 | 2,584,556.97 | |||||||
Shenzhen Changan New Engergy Automobile Service Co. Ltd | 184,800,000.00 | 13,338,871.00 | 198,138,871.00 | ||||||
Nanjing Changan New Energy Automobile Sales & Service Co., Ltd. | 50,000,000.00 | 50,000,000.00 | |||||||
Fuzhou Changan New Energy Automobile Sales & Service Co., Ltd. | 2,000,000.00 | 2,000,000.00 | |||||||
Xiamen Changan New Energy Automobile Sales & Service Co., Ltd. | 2,000,000.00 | 2,000,000.00 | |||||||
Guangzhou Changan New Energy Automobile Sales & | 4,000,000.00 | 4,000,000.00 |
Invested in | beginning amount | increase/decrease | Investment gains and losses under the equity method | Other equity changes | cash bonus in current period | Other reduction | impairment provision in current period | Ending balance | Impairment |
Service Co., Ltd. | |||||||||
Chongqing Changan New Energy Automobile Technology Co., Ltd. | 1,238,742,571.54 | -1,238,742,571.54 | - | ||||||
Changan Suzuki Automobile Co., Ltd. | 594,949,059.30 | 594,949,059.30 | |||||||
Zhenjiang Demao Hairun Equity Investment Fund Partnership (Limited Partnership) | 1,129,922,044.91 | 1,129,922,044.91 | |||||||
Chongqing Chehemei Technology Co., Ltd. | 10,000,000.00 | 10,000,000.00 | |||||||
Chongqing Changan Automobile Software Technology Co., Ltd. | - | 99,000,000.00 | 99,000,000.00 | ||||||
Changan Weilai New Energy Automobile Technology Co., Ltd. | - | 58,461,669.77 | 58,461,669.77 | ||||||
Total | 16,052,319,271.82 | 1,780,975,318.82 | -430,245,711.08 | -37,000,000.00 | -1,439,008,238.18 | - | 15,927,040,641.38 | - |
4. Operating revenue and cost
In RMB Yuan
Report period | Same period of last year | |||
Revenue | Cost | Revenue | Cost | |
Main business | 28,058,352,585.87 | 26,601,356,969.23 | 25,956,607,065.04 | 24,182,358,106.88 |
Other business | 1,700,567,311.50 | 1,310,501,933.80 | 848,501,257.18 | 455,548,664.07 |
Total | 29,758,919,897.37 | 27,911,858,903.03 | 26,805,108,322.22 | 24,637,906,770.95 |
5. Investment income
(1) Details of investment income
In RMB Yuan
Items | Current amount | Prior-period amount |
Long-term equity investment income measured by cost method | 608,962,802.11 | |
Long-term equity investment income measured by equity method | -430,245,711.08 | -78,048,193.41 |
investment income from long -term equity investment disposition | 2,124,526,141.26 | |
Investment income obtained during the period of holding trading financial assets | 2,840,290.34 | |
others | 11,056,250.03 | 4,149,371.08 |
Total | 2,317,139,772.66 | -73,898,822.33 |
(2) Long-term equity investment incomemeasured by cost accounting method
In RMB Yuan
Items | Current amount | Prior-period amount |
Chongqing Changan Automobile Customer Service Co., Ltd. | 603,900,000.00 | |
Zhenjiang Demao Hairun Equity Investment Fund Partnership (Limited Partnership) | 5,062,802.11 | |
Total | 608,962,802.11 |
(3) Long-term equity investment income measured by equity accounting method
In RMB Yuan
Invested in company | Current amount | Prior-period amount |
Changan Ford Automobile Co., Ltd | -570,006,507.40 | -388,312,379.14 |
Changan Mazda Automobile Engine Co., Ltd | 11,597,486.28 | 22,279,051.96 |
Hainan Anxinxing Information Technology Co., Ltd. | -795,039.88 | -775,195.24 |
Nanjing Chelai Travel Technology Co., Ltd. | -143,024.65 | -238,955.00 |
Jiangling Holding Co., Ltd | -94,049,105.60 | -236,679,161.41 |
Changan Mazda Automobile Co., Ltd | 323,202,621.60 | 431,236,189.88 |
Chongqing Changan Kuayue Automobile Co., Ltd | 27,957,230.96 | 39,038,877.69 |
Changan Suzuki Automobile Co., Ltd. | -114,234,986.00 | -37,577,002.31 |
Changan Auto Finance Co., Ltd. | 123,493,951.66 | 121,622,360.91 |
Changan Weilai New Energy Automobile Technology Co., Ltd. | -18,666,611.81 | -16,493,522.92 |
Hunan Guoxin Semiconductor Technology Co., Ltd. | -126,648.85 | -145,569.13 |
Jiangling Investment Co., Ltd. | 34,848,792.52 | |
Chongqing Changan New Energy Automobile Technology Co., Ltd. | -153,230,307.40 |
Nanjing Leading Equity Investment Partnership (Limited Partnership) | 32.16 | -12,002,888.70 |
Nanjing Leading Equity Investment Management Co., Ltd. | -93,594.67 | |
Total | -430,245,711.08 | -78,048,193.41 |
XVIII. Additional information
1. Non-recurring profit and loss statement of current period
In RMB Yuan
Items | Amount | Explanation |
Profit and loss of non-current assets disposition | 3,547,727,244.56 | |
Government subsidies counted in current profit and loss (except the government subsidies which are closely related with business events, and given certain amount according to national standards) | 215,977,955.28 | |
In addition to the effective hedging business related to the normal business of the company, the gains and losses from changes in fair value arising from the holding of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities, and disposal of transactional financial assets, derivative finance, investment income from trading financial assets, trading financial liabilities, derivative financial liabilities and other debt investments | 1,753,674,697.00 | |
Gains and losses from entrusted loans | 6,884,080.21 | |
Interest on deferred payment of funds received from non - financial enterprises | 21,549,119.75 | |
Other non-business incomings and outgoings except above-mentioned items | -20,172,785.69 | |
Less: amount influenced by income tax | 293,310,943.88 | |
Amount influenced by minority shareholders’ interest (after tax) | 13,274,663.08 | |
Total | 5,219,054,704.15 |
Notes:Profit and loss of non-current assets disposition are mainly from the disposal of the equity of Chongqing Changan NewEnergy Automobile Technology Co., Ltd. and Changan PSA Peugeot Citroen Automobile Co., Ltd. held during the period.
If the company identifies non-recurring profit and loss defined by Information Disclosure by Companies Offering Securities to thePublic No. 1--non-recurring profit and loss and non-recurring profit and loss defined by Information Disclosure by CompaniesOffering Securities to the Public No. 1--non-recurring profit and loss as recurring profit and loss, explain the reasons.
□ Applicable √ Not applicable
2. Return on equity and earnings per share
In RMB Yuan
Profit in report period | Weighted average return on equity | Earnings per share | |
Basic EPS | Basic EPS | ||
Net profit belonging to the Company’s common stockholders | 5.74% | 0.54 | Not applicable |
Net profit belonging to the Company’s common stockholders after deducting non-recurring profit and loss | -5.75% | -0.54 | Not applicable |
3. Accounting data difference by domestic and foreign accouting standards
(1) Net profit and net asset differences from financial statements by global GAAC and prc GAAC
□ Applicable √ Not applicable
(2) Net profit and net asset differences from financial statements by GAAC abroad and PRC GAAP
□ Applicable √ Not applicable
(3) Description on accounting data differences by domestic and foreign accounting standards. If auditing institutions abroadhave adjusted the data differences, identify the name of the auditing institution abroad.None
4. Others
□ Applicable √ Not applicable
Chapter 10 Documents for Future Reference
Catalogue of Reference Files |
2、Financial statements, with the signatures and seals of legal representative, person in charge of accounting, and person in accounting agency; 3、BOD resolutions and written confirmation documents signed by board members and senior executives; 4、Written auditing opinions in form of resolution by the Board of Supervisors; 5、All original copies of company documents and announcements disclosed in China Securities Journal, Securities Time, and Hong Kong Commercial Daily in reporting period. The company will provide the the abovementioned reference files timely when required by China Securities Regulatory Commission and Shenzhen Stock Exchange, and required by shareholders according to law and corporate regulations. |
Chairman and CEO: Zhu Huarong
Chongqing Changan Automobile Company LimitedAugust 31, 2020