Chongqing Changan Automobile
Company Limited
2022 Semi-Annual Report
August 2022
Chapter 1 Important Notice, Contents, and Definitions
1. The Board of Directors (or the “Board”), the Supervisory Board as well as the directors, supervisorsand senior managers of Chongqing Changan Automobile Co., Ltd. hereby guarantee the factuality,accuracy and completeness of the contents of this Report and its summary, and shall be jointly andseverally liable for any misrepresentations, misleading statements or material omissions therein.
2. Zhu Huarong, the Company’s legal representative, Zhang Deyong, the Company’s Chief FinancialOfficer and Chen Jianfeng, the person-in-charge of the accounting organ hereby guarantee that thefinancial statements carried in this Report are factual, accurate and complete.
3. All the directors have attended the board meeting for reviewing this Report.
4. Any prospective description such as future business plans and development strategies in this Reportshall not be considered as the Company’s commitment to investors. Investors and relevant personsshall be sufficiently mindful of risks, and undertake the difference in plans, predictions andcommitment.
5. Section III “Management Discussion and Analysis” of this Report describes the possible risks andcountermeasures of the Company, and investors shall pay attention to the relevant content.
6. For the first half of 2022, the Company has no plans of cash dividend, no bonus shares and no shareconverted from capital reserve.This Report has been prepared in both Chinese and English. Should there be any discrepancies ormisunderstandings between the two versions, the Chinese version shall prevail.
CONTENTS
Chapter 1 Important Notice, Contents, and Definitions ...... 1
Chapter 2 Company Profile and Main Financial Indexes ...... 4
Chapter 3 Management Discussion and Analysis ...... 7
Chapter 4 Corporate Governance ...... 23
Chapter 5 Environment and social responsibility ...... 26
Chapter 6 Important Matters ...... 37
Chapter 7 Changes in the Shareholding of the Company and Shareholders ...... 42
Chapter 8 Preferred Shares ...... 49
Chapter 9 Bonds ...... 50
Chapter 10 The Financial Statements ...... 51
Documents Available for Reference
I. Financial statements carrying the signatures and seals of the Company’s legal representative, the Chief FinancialOfficer, and the person-in-charge of the accounting organ.Ⅱ. During the reporting period, the original copies of all company documents and announcements publicly disclosedby the Company in China Securities Journal, Securities Times, Securities Daily, Shanghai Securities News, andHong Kong Commercial Daily.
Definitions
| Items | Definitions | |
| Changan Auto, Changan Automobile, the Company | Refers to | Chongqing Changan Automobile Co., Ltd. |
| CSG | Refers to | China South Industries Group Corporation, the Company’s actual controller |
| China Changan | Refers to | China Changan Automobile Group Co., Ltd., formerly known as China South Industries Automobile Co., Ltd., a subsidiary company of CSG |
| Changan Industry | Refers to | Chongqing Changan Industry (Group) Co., Ltd., formerly known as Changan Automobile (Group) Co., Ltd., a subsidiary company of CSG |
| 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 |
| CIC | Refers to | Chongqing Changan Automobile International Sale Service 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 Financing Co., Ltd., an associate of the Company |
| CSG Finance | Refers to | China South Industries Group Finance Co., Ltd., a subsidiary company of South Industries |
| UPI | Refers to | United Prosperity Investment Co., Ltd., a subsidiary company of China Changan |
| AVATR | Refers to | AVATR. Co., Ltd, an associate of the Company |
Chapter 2 Company Profile and Main Financial Indexes
I. 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 Co., Ltd. | ||
| Legal representative | Zhu Huarong | ||
II. Contact Information
| Secretary of the Board of Directors | Securities affairs representative | |
| Name | Zhang Deyong, Li Jun | |
| Contact address | Building T2, No. 2, Financial City, No. 61 Dongshengmen Road, Jiangbei District, Chongqing | |
| TEL | 023-67594008 | |
| FAX | 023-67866055 | |
| E-mail address | cazqc@changan.com.cn |
III. Others
1. Contact information
Whether registration address, office address and its post code as well as website and email of the Company changed in the reportingperiod 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 the reportingperiod. See more details in Annual Report 2021.
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 Report 2021.
3. Other relevant information
Whether other relevant information changed in the reporting period or not
□ Applicable √ Not applicable
IV. Key Accounting Data and Financial Indexes
Does the Company need to retrospectively adjust or restate the accounting data of previous years?
□Yes √ No
| The reporting period | The same period of last year | YoY change (%) | |
| Operating revenue (RMB) | 56,573,568,393.71 | 56,784,631,899.07 | -0.37% |
| Net profit attributable to shareholders of the Company (RMB) | 5,857,626,135.78 | 1,729,245,208.60 | 238.74% |
| Net profit after deduction of non-recurring gains or losses attributable to shareholders of the Company(RMB) | 3,100,113,819.34 | 739,756,972.08 | 319.07% |
| Net cash flow from operating activities (RMB) | 5,852,236,420.20 | 17,698,826,870.37 | -66.93% |
| Basic earnings per share (RMB/share) | 0.60 | 0.17 | 252.94% |
| Diluted earnings per share (RMB/share) | 0.59 | 0.17 | 247.06% |
| Weighted average ROE (%) | 10.06% | 3.22% | 6.84% |
| 30 June 2022 | 31 December 2021 | YoY change (%) | |
| Total assets (RMB) | 138,812,360,580.91 | 135,404,623,479.63 | 2.52% |
| Net assets attributable to shareholders of the Company (RMB) | 60,688,859,608.34 | 55,732,932,103.72 | 8.89% |
V. The Differences between Chinese Accounting Standards and International FinancialReporting Standards
1. Differences in net profit and net asset attributable to shareholders in financial report disclosed inaccordance with International Financial Reporting Standards and Chinese Accounting Standards.
□ Applicable √ Not applicable
No difference during the reporting period.
2. Differences of net profit and net assets disclosed in financial reports prepared under Overseas FinancialReporting Standards and Chinese Accounting Standards.
□ Applicable √ Not applicable
No difference during the reporting period.
3. Reasons for differences in accounting data under Chinese Accounting Standards and InternationalFinancial Reporting Standards.
□ Applicable √ Not applicable
VI. Items and Amounts of Non-Recurring Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
| Item | Amount | Illustration |
| Non-recurring items and amounts (including accrued reversal assets impairment part) | 68,244,082.28 | |
| 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) | 525,001,514.96 | |
| Capital occupation fees charged to non-financial enterprises included in the current profit and loss | 12,993,036.40 | |
| 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 | 26,136,888.77 | The subsidiary AVATR. Co., Ltd. introduced investors to increase capital. Based on the evaluation results with March 11, 2022 as the evaluation base date, the income from the statement was confirmed. For details, please refer to the information disclosed on the (http://www.cninfo.com.cn) |
| Gains on fair value remeasurement of remaining equity after loss of control | 2,128,305,938.85 | |
| Other non-operating income and expenses other than the above items | 49,496,422.28 | |
| Subtract: Influenced amount of income tax | 37,348,447.66 | |
| Influenced amount of miniority shareholders’ equity (after tax) | 15,317,119.44 | |
| Total | 2,757,512,316.44 | -- |
Explanation of why the Company reclassifies recurrent gain/loss as an Extraordinary gain/loss item listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gain/LossItems
□ Applicable √ Not applicable
No such cases for the reporting period.
Chapter 3 Management Discussion and AnalysisI. The main business of the Company in the reporting period
1. Business overview
As an automobile manufacturer, Changan Automobile’s businesses cover the R&D, manufacturing, and sales of vehicles(including passenger vehicles and commercial vehicles), as well as the R&D and production of engines. At the same time, weproactively develop new businesses such as mobility, car services, new marketing and sales, and battery swapping, and steps up effortsin exploring finance, used cars and other fields to build a comprehensive industrial ecology and become an intelligent, and low-carbonmobility technology company.With “Leading Auto Culture for Better Life” as our mission, we make efforts to develop NEVs and intelligent vehicles whileadhering to the philosophy of “low-carbon and environmental protection, technology and intelligence”. By leading auto culture throughscientific innovation, we strive to provide customers with high-quality products and services. We have homegrown brands such asChangan, Changan Shenlan, AVATR, Oshan, and Kaicene, and joint venture brands such as Changan Ford and Changan Mazda toproduce and sell joint venture brand vehicles. We launched many iconic homegrown brands models including the CS series, Eadoseries, UNI series, Oshan series and Shenqi. Meanwhile, Changan Automobile rolls out new energy vehicles such as BenBen E-starLumin and Shenlan SL03; the joint venture companies have many famous products such as the all-new Focus, Escape, Explorer, Corsair,Aviator, Zephyr, Axela, CX-5 and CX-30 that are well received among consumers.Our operation attaches “equal importance to homegrown and joint venture brands”. We make determined efforts in developingiconic homegrown brands, with Changan, Changan Shenlan, AVATR, Oshan, and Kaicene brands as independent entities. For ChanganFord, Changan Mazda and other joint ventures, we adopt investment management and control and continue to deepen mutual trust andcooperation with partners.
2. Industry situation
In the first half of 2022, in the face of pandemic resurgence, industry chain cycle disruption, sharp decline in demand and otherunfavorable factors, the automotive industry struggled to overcome the risks and pull businesses back on track. The NEV marketcontinued to maintain high-speed growth among other markets, and Chinese brands embraced this opportunity to expand their marketshare significantly compared to the last reporting period. Industry specifics are as follows:
In the first half of 2022, the automotive industry achieved a cumulative production and sales of 12.117 million units and 12.057million units, down 3.7% and 6.6% YoY respectively. The overall sales is in a “V” shape trend. The YoY growth rate of sales turnedfrom positive to negative and continued to decline since the outbreak in Shanghai and other places in March. After bottoming out inApril, with the pandemic slowing down and the realization of a series of national and local relief policies in May-June, the industrygrowth rate gradually recovered until it turned positive in June. Passenger car sales in the first half of the year totaled 10.355 millionunits, up 3.4% YoY, achieving counter-trend growth.
The NEV market is hot with production and sales hitting new record highs. In the first half of 2022, NEV production and salescompleted 2.661 million and 2.6 million units respectively, both up nearly 120% YoY. And within the Chinese brand passenger cars,the share of NEV reached 39.9%, an increase of 100% YoY.
Chinese brands seized the NEV growth opportunity and significantly increased their market share, effectively compensating forthe drop in volume caused by the sharp decline in the traditional power market. In the first half of 2022, the market share of Chinesebrand passenger car reached 47.3%, an increase of 5.8 percentage points YoY.
(The above data/information is collected from “China Automotive Industry Production and Sales Express” published by ChinaAssociation of Automobile Manufacturers and its industry information release)
3. Company market performance
In the first half of 2022, under the guidance of Xi Jinping's thought of socialism with Chinese characteristics in the new era,
Changan Automobile adhered to the principle of "stability first and progress in the midst of stability". The company solidly promotedthe third start-up plan, the innovation and entrepreneurship plan, and actively responded to the triple pressure of "demand contraction,supply shock and weak expectations". The company has been actively focusing on strategy execution, supply chain stabilization, newenergy and intelligent industrial development, and firmly promoting transformation and upgrading with high-quality development. Inthe face of unfavorable factors such as shortage of spare parts and materials and recurring pandemic, we maintained production andsupply while carried out pandemic prevention efforts firmly, we took active countermeasures to prevent and resolve operation risks,and did our best to minimize the impact of the above unfavorable factors on production and operation. Under the circumstances ofrestricted production supplies and local Covid outbreak, the company achieved sales of 1.126 million units in the first half of the year,
0.3 percentage points better than the industry; among them, the company's sales of NEV products reached 90,000 units, an increase ofover 140% YoY, with a growth rate 26.3% faster than the NEV industry.During the reporting period, Changan Automobile strived to overcome the challenges of "chip and battery shortage", pandemicdisturbance and other risks, and coordinated the efforts of R&D, sales and other sectors to cope with the supply impact. The companyimplemented precise sales demand and production plans, optimized resource allocation for high-value products, and did everythingpossible to meet market demand. By insisting on independent innovation, our product lineup "moves upward", with seven new andupdated products such as the second generation CS75PLUS, UNI-K iDD, UNI-V, Oshan Z6 and Changan Lumin launched in the firsthalf of the year. The company continues to lift the brand upward, accelerating the transformation to intelligent and new energy,launching the Blue Core iDD hybrid power system, and the first model with UNI-K iDD was well received by users when it waslaunched; officially launched the new digital electric brand Changan Shenlan, and released its first model Shenlan SL03 for pre-sale,which accelerated the market share expanding of the mainstream electric vehicle market; by joining hands with Huawei and CATL, wecreated CHN, the world's leading platform for electric vehicles, and AVATR 11 and its limited edition made their official debut. Withinnovative ideas we built the "cloud - network - platform - scenes" business model, which accelerated the renewal of marketing models.With the electric products launched in the first half of the year, the Lumin project piloted the new model of intelligent marketingthrough the integration of online and offline sales to achieve the ultimate experience with the best cost, efficient and agility. Wecontinued to lead scientific and technological innovations by breaking through core technologies of new energy and intelligence, andaccelerated the mass production of innovative technology. In summary, in the first half of the year, Changan Automobile activelyresponded to internal and external challenges, and overall the production and operation remained stable. The quality of operation wassteadily improved, strategic transformation was solidly promoted, and positive results were achieved in corporate development.
II. Core Competence AnalysisIn 2022, Changan Automobile will focus on building technological strength, adhere to the general idea of "stability, focus, sharingand innovation", and make every effort to build Changan into a world-class brand with firmer transformation, more solid foundation,more innovative mode and more extreme efficiency. The following core competitiveness is formed.
1. Product definition capability. The company is customer experience oriented to continuously update the product definitionmodel, and further improves the match between products and user needs. We continuously update the product-market equation, for fueland electrified products, life cycle and competitive object assumptions are further improved, personalized configuration and carsoftware and other attractions are further strengthened; for new automotive products, by reviewing the user operation segment andresource matching segment, the product is transforming into a whole life cycle user experience. In the first half of the year, the companylaunched seven new and updated products, which were well received by the market. In the second half of the year, a number ofelectrified products will be launched to continuously improve the product lineup.
2. R&D capability. The company insists on innovation-oriented development and continues to increase investment in science andtechnology innovation. The R&D capabilities are continuously improved and core technologies are mastered. In the new energy field,the Changan seven-in-one intelligent core and all-in-one electric drive were developed independently, and have achieved massproduction and small batch trial production respectively. The generalization rate of specialized electrified platform has increased to
86%. In the field of intelligence, we achieved a breakthrough in the technology of intelligent parking system, and UNI-V won the“Intelligent Parking Gold Award” in the 2022 WIDC World Intelligent Driving Challenge; pilot intelligent driving assistance functioncompleted real vehicle operation, which indicates the intelligent driving technology took a key step towards mass production andapplication; pioneered the development of three international standards for intelligent network linkage; awarded “OutstandingEnterprise of China's Intelligent and Connected Automobile” by the China Intelligent and Connected Vehicle Industry DevelopmentAlmanac. As of June 2022, we had 7,256 domestic and foreign patents, including 1,953 invention patents.
3. Brand operation capability. The company insists on strengthening brand value management. By further deepening the brandlabel of “intelligent” and “electrified” and improving the brand’s customer satisfaction, the brand image is moving upward. In termsof brand value management, the brand promotion projects such as “With You” and “2060 Leading the Future” have been awarded the“2021 Example Branding Cases of State-owned Enterprises” and “IAI Advertising Award” by the State-owned Assets Supervision andAdministration Commission of the State Council. In terms of deepening the brand label of “intelligent” and “electrified”, the companyreleased the new digital electrified brand - Changan Shenlan, to fully demonstrate the achievements of the Mission Shangri-La andconsolidated the image of “intelligent and low-carbon mobility technology company”; in terms of customer satisfaction, in the firsthalf of 2022 customer satisfaction (SSI/CSI, i.e. sales/service satisfaction index) exceeded 99%. In addition, the company won thesecond place in J.D. Power’s 2022 China Auto Sales and Service Satisfaction Ranking, and the industry ranking rose for fiveconsecutive years. The brand IP of “high quality service provider" was gradually established.
4. Cultural leadership. The company insists on improving the culture environment, the concept of “leading culture” is upgraded,and employees' sense of access and happiness are enhanced. The company established the "Changan Automobile employees’ demandsmanagement methods” to promote the satisfiction of employees’ need. The company also carried out a series of activities to tellChangan’s story, spread Changan’s voice and inherit Changan’s culture by focusing on the main line of “Vibrant Changan” and thecampaign of 160th anniversary of Changan. The atmosphere of “Leading Culture Wolf Changan” has become stronger.
5. Mechanism and efficiency capacity. The company insists on improving the organization mechanism, replenishing the talentteam and optimizing the incentive scheme to inject new vitality into the transformation and development. We have established a “smilecurve” management logic, formed a matrix and flat management model, and built organizational capabilities to support the realizationof new automotive products; continued to introduce cutting-edge talents in the fields of intelligence, software and modeling externally,and promoted the transformation of talents in the fields of intelligent network, “three-electric” and new platform internally. Thecompany also promotes the tenure system and contract management to further enhance the vitality of cadres and stimulate themotivation of managing officers; improves the incentive “team leader” mechanism to help tackle important and difficult technicalprojects; implements the equity incentive plan to further stimulate the vitality and motivation of employees and promote theachievement of strategic tasks; carries out the follow-up mechanism of product projects in depth, and the core personnel of the wholevalue chain of the project are closely bound to the successful implementation of the product; the construction of a comprehensive honorsystem to stimulate a greater sense of mission, achievement and striving with spiritual incentives; the deferred bonus incentive policyhas been increased again, and the enthusiasm of the staff is greatly strengthened.III. Analysis of Main Business
OverviewWhether it is the same as the company’s main business disclosure during the reporting period
√ Yes □ No
Please refer to the relevant content of "I. The main business of the Company in the reporting period" in chapter 3 of this report.
Y-o-y changes in key financial data
Unit: RMB
| The reporting period | The same period of last year | YoY change (%) | Reasons for changes | |
| Operating revenue | 56,573,568,393.71 | 56,784,631,899.07 | -0.37% | |
| Operating cost | 45,360,090,482.20 | 48,086,677,229.21 | -5.67% | |
| Sales expense | 2,285,329,821.77 | 2,146,115,312.19 | 6.49% | |
| General and administrative expenses | 2,184,034,305.10 | 2,217,147,044.50 | -1.49% | |
| Financial expenses | -437,998,348.99 | -233,776,490.65 | -87.36% | Mainly due to the increase in interest income. |
| Income tax expense | -103,280,125.74 | 59,373,446.09 | -273.95% | Mainly due to the increase in the recognized deferred tax assets. |
| R&D expenses | 1,932,294,144.67 | 1,495,583,362.16 | 29.20% | |
| Subtotal of cash inflow from operating activities | 5,852,236,420.20 | 17,698,826,870.37 | -66.93% | Mainly due to the year-on-year increase in the acceptance and payment of the current notes payable due and the year-on-year decrease in the due collection of the notes receivable |
| Subtotal of cash inflow from investment activities | -2,383,212,310.03 | -665,883,342.87 | -257.90% | Mainly due to increased investment in associates. |
| Net cash flow from financing activities | -2,013,951,932.20 | -1,415,888,692.05 | -42.24% | Mainly due to the receipt of equity incentive payments in the last reporting period. |
| Net increase in cash and cash equivalents | 1,514,350,653.16 | 15,613,435,542.38 | -90.30% | Mainly due to the decrease in "net cash flow from operating activities" and "net cash flow from investing activities" |
| Investment income | 2,354,040,073.27 | 327,872,465.08 | 617.97% | Mainly because the company lost control over AVATR, and the remaining equity was remeasured at fair value |
Major changes on profit composition or profit resources in reporting period
√ Applicable □ Not applicable
During the reporting period, the company's profit was greatly affected by non-recurring gains and losses. For details, please refer to"VI. Items and Amounts of Non-Recurring Gains and Losses " in Chapter 2 of this report.
Composition of the operating revenue
| The reporting period | The same period of last year | YoY increase/decrease (%) | |||
| Amount (RMB) | Proportion of operating revenue（%） | Amount (RMB) | Proportion of operating revenue (%) | ||
| Operating revenue | 56,573,568,393.71 | 100% | 56,784,631,899.07 | 100% | -0.37% |
| By industry | |||||
| Automotive business | 56,573,568,393.71 | 100% | 56,784,631,899.07 | 100% | -0.37% |
| By product | |||||
| Vehicles | 53,462,409,290.12 | 94.50% | 54,067,846,898.72 | 95.22% | -1.12% |
| Services and others | 3,111,159,103.59 | 5.50% | 2,716,785,000.35 | 4.78% | 14.52% |
| By region | |||||
| China | 49,995,769,261.71 | 88.37% | 52,728,042,749.91 | 92.86% | -5.18% |
| Overseas | 6,577,799,132.00 | 11.63% | 4,056,589,149.16 | 7.14% | 62.15% |
The business, products and regions accounting for over 10% of the Company’s operating revenue oroperating profit
√ Applicable □ Not applicable
| Operating Revenue (RMB) | Operating Cost (RMB) | Gross margin (%) | YoY increase/decrease of operating income (%) | YoY increase/decrease of operating cost (%) | YoY increase/decrease of gross margin (%) | |
| By business | ||||||
| Automotive business | 56,573,568,393.71 | 45,360,090,482.20 | 19.82% | -0.37% | -5.67% | 4.50% |
| By product | ||||||
| Vehicles | 53,462,409,290.12 | 42,931,781,971.38 | 19.70% | -1.12% | -6.71% | 4.82% |
| By region | ||||||
| China | 49,995,769,261.71 | 39,071,420,400.59 | 21.85% | -5.18% | -11.44% | 5.52% |
| Overseas | 6,577,799,132.00 | 6,288,670,081.61 | 4.40% | 62.15% | 58.50% | 2.21% |
Where the statistical caliber of the main business data of the Company is adjusted, the data is subject to the main business dataafter adjustment according to the caliber of the end of the report period in the latest year.
□ Applicable √ Not applicable
IV. Analysis of Non-Main Business
√ Applicable □ Not applicable
| Amount (RMB) | Proportion of profits (%) | Explanation | Whether it is sustainable or not | |
| Return on investment | 2,354,040,073.27 | 41.04% | Please refer to the Item 51, Note 7 “Supplementary Information of the Cash Flow Statement” in the In Chapter 10 of this report. | Except for 2.13 billion yuan, which is the gain from the company's loss of controlling interest in Avita and the re-measurement of the remaining equity at fair value. |
| Profits or losses of fair value change | 26,136,888.77 | 0.46% | No | |
| Impairment losses on assets | -241,827,585.46 | -4.22% | Please refer to the Item 54, Note 7 “Supplementary Information of the Cash Flow Statement” in the In Chapter 10 of this report. | No |
| Non-operating income | 54,366,637.51 | 0.95% | No | |
| Non-operating expenses | 4,870,215.23 | 0.08% | No |
V. Analysis of Assets and Liabilities
1. Major Changes in Asset Composition
| 30 June 2022 | 31 December 2021 | Increase/Decrease in Proportion (%) | Description of significant changes | |||
| Amount (RMB) | Proportion of total assets (%) | Amount (RMB) | Proportion of total assets (%) | |||
| Monetary fund | 53,421,783,239.85 | 38.48% | 51,976,242,149.37 | 38.39% | 0.09% | There was no significant change in the composition of assets during the reporting period |
| Receivables | 3,597,002,110.54 | 2.59% | 1,675,427,534.87 | 1.24% | 1.35% | |
| Contract assets | 1,036,757,897.63 | 0.75% | 1,151,292,247.36 | 0.85% | -0.10% | |
| Inventories | 7,024,925,792.62 | 5.06% | 6,852,874,420.59 | 5.06% | 0.00% | |
| Investment property | 6,536,070.82 | 0.00% | 6,649,426.60 | 0.00% | 0.00% | |
| Long-term equity investment | 17,304,612,282.75 | 12.47% | 13,245,374,860.55 | 9.78% | 2.69% | |
| Fixed assets | 20,513,654,898.34 | 14.78% | 21,325,959,850.16 | 15.75% | -0.97% | |
| Construction in | 1,130,381,106.58 | 0.81% | 1,460,176,539.43 | 1.08% | -0.27% | |
| progress | |||||
| Right-of-use assets | 50,017,632.80 | 0.04% | 66,313,062.98 | 0.05% | -0.01% |
| Short-term loans | 46,166,500.00 | 0.03% | 19,000,000.00 | 0.01% | 0.02% |
| Contract liabilities | 4,956,070,974.92 | 3.57% | 9,840,509,514.39 | 7.27% | -3.70% |
| Long-term loans | 40,000,000.00 | 0.03% | 600,000,000.00 | 0.44% | -0.41% |
| Lease liabilities | 28,202,020.25 | 0.02% | 38,679,735.59 | 0.03% | -0.01% |
2. Major overseas assets
□ applicable √ not applicable
3. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
| Item | Opening Balance | Changes in Fair Value Gains and Losses in Current Period | Accumulated Fair Value Changes Included in Equity | Provision for Impairment in Current Period | Amount of Purchase in Current Period | Amount of Sales in Current Period | Other Changes | Closing Balance |
| Financial assets | ||||||||
| 1.Financial assets held for trading (excluding derivative financial assets) | 195,798,300.00 | 26,136,888.77 | 98,999,997.80 | 14,967,612.00 | 305,967,574.57 | |||
| 2.Investments in other equity instruments | 701,409,600.00 | 701,409,600.00 | ||||||
| Subtotal financial assets | 897,207,900.00 | 26,136,888.77 | 98,999,997.80 | 14,967,612.00 | 1,007,377,174.57 | |||
| Total | 897,207,900.00 | 26,136,888.77 | 98,999,997.80 | 14,967,612.00 | 1,007,377,174.57 | |||
| Financial liabilities | - | - | - | - | - | |||
Note: The trading financial assets and investments in other equity instruments in the table above are detailed in “2. Trading FinancialAssets” and “11. Investments in Other Equity Instruments” in Note 7 of the Financial Statements.Whether there are major changes on measurement attributes for main assets of the Company in reporting period
□ Yes √ No
4. Property rights limits by the end of report period
Unit: RMB
| Item | book value at the end of this year | Limited Reason |
| Monetary fund | 2,389,515,751.70 | Deposit of acceptance bill |
| Notes receivable | 8,258,455,824.79 | Pledge for issuing bills payable |
| Intangible assets | 17,033,287.44 | Collateral to obtain working capital |
| Fixed assets | 32,955,152.32 | Collateral to obtain working capital |
| Total | 10,697,960,016.25 |
VI. Analysis of Investment
1. Overall situation
√ Applicable □ Not applicable
| Item | Investment amount for the reporting period (RMB) | Investment amount for the previous reporting period (RMB) | YoY Change (%) |
| Equity investments | 1,860,368,900.00 | - | - |
| Fixed assets | 52,569,218.29 | 3,776,627.15 | 1291.96% |
| Construction in progress | 787,512,886.09 | 604,256,608.18 | 30.33% |
| Intangible assets | 95,564,437.69 | 20,872,889.71 | 357.84% |
| Total | 2,796,015,442.07 | 628,906,125.04 | 344.58% |
2.The major equity investment obtained in reporting period
□ Applicable √ Not applicable
3. The ongoing major non-equity investment in reporting period
□ Applicable √ Not applicable
4. Investment of Financial Assets
(1) Security investments
√ Applicable □ Not applicable
| Security type | Stock code | Abbreviation | Initial investment cost（RMB） | Accounting measurement model | Book value at the beginning of the reporting period（RMB） | Gains and losses from changes in fair value during the period | Accumulated fair value changes included in equity | Purchase amount during the reporting period（RMB） | Sales amount during the reporting period（RMB） | Gains and losses of the reporting period（RMB） | Book value at the end of the reporting period（RMB） | Accounting subject | Source of funds |
| （RMB） | （RMB） | |||||||||||||
| Stock | 600369 | Southwest Securities | 50,000,000 | Fair value measurement | 177,902,700.00 | -44,391,600.00 | 0.00 | 0.00 | 0.00 | -41,701,200.00 | 133,511,100.00 | Trading financial assets | Self-owned funds | |
| Stock | 301215 | CPG Securities | 98,999,997.80 | Fair value measurement | - | 70,400,076.77 | 0.00 | 0.00 | 0.00 | 70,400,076.77 | 169,400,074.57 | Trading financial assets | Self-owned funds | |
| Total | 148,999,997.80 | -- | 177,902,700.00 | 26,008,476.77 | 0.00 | 0.00 | 0.00 | 28,698,876.77 | 302,911,174.57 | -- | -- | -- | ||
(2) Derivative Investments
□ Applicable √ Not applicable
There was no derivative investment in the company's reporting period.
5. Use of raised funds
√ Applicable □ Not applicable
(1) Overall use of raised funds
√ Applicable □ Not applicable
Unit: 10,000 RMB
| Year | Types of raised funds | Total funds raised | The used amount of total funds raised in the current period | Total accumulated use of funds raised | The total amount of raised funds with purpose changed in reporting period | Cumulative total amount of raised funds with purpose changed | Proportion of total raised funds with purpose changed | The total amount of unused funds | The purpose and placement of the unused funds | Amount of funds raised idle for more than two years |
| 2020 | Non-public offering of shares | 598,608.41 | 23,139.35 | 423,069.26 | 160,545.86 | 160,545.86 | 26.82% | 175,539.15 | Deposited in a dedicated account for raised funds | 0 |
| Total | -- | 598,608.41 | 23,139.35 | 423,069.26 | 160,545.86 | 160,545.86 | 26.82% | 175,539.15 | -- | 0 |
| Description of the overall use of raised funds | ||||||||||
| 1. The board of directors of the Company believes that the Company has disclosed the storage and actual use of the Company’s raised funds in a timely, true, accurate and complete manner in accordance with the “Guidelines for the Standardized Operation of Listed Companies on the Shenzhen Stock Exchange” and relevant format guidelines. There are no violations in the management of raised funds. The Company has faithfully fulfilled its obligation to disclose the investment direction and progress of the raised funds. 2. The initial total amount of raised fund was RMB 5,988,059,154.12. The Company used the raised funds of RMB 3,252,079,253.48, RMB 747,219,811.57, and RMB 231,393,524.48 respectively in 2020, 2021 and first half of 2022. As of December 31, 2021, the Company has used a total of RMB 4,230,692,589.53 of the raised funds. | ||||||||||
(2) Use of the raised funds in committed projects
√ Applicable □ Not applicable
Unit: 10,000 RMB
| Committed projects and placement of extra funds raised | Whether the project has been changed | Total committed investment of raised funds | Adjusted total investment (1) | Amount invested this year | Cumulative investment amount as of the end of the period (2) | Investment progress as of the end of the period% (3) = (2)/(1) | Whether the project has reached the intended usable state | Benefits realized this year | Whether it meets the expected return | Whether the feasibility of the project has changed significantly |
| Committed projects | ||||||||||
| H series fifth phase, NE1 series first phase engine production capacity construction project | Yes | 141,568.38 | 103,313.68 | 15,908.18 | 99,707.32 | 97% | No | Not applicable | Not applicable | No |
| Crash Laboratory Capacity Upgrade Project | Yes | 11,505.75 | 8,251.85 | 1,450.38 | 7,416.32 | 90% | No | Not applicable | Not applicable | No |
| CD569 production line construction project | Yes | 15,576.22 | 9,418.59 | 3,841.18 | 8,353.08 | 89% | No | Not applicable | Not applicable | No |
| Hefei Changan Automobile Co., Ltd. adjustment and upgrade project | Yes | 249,958.06 | 142,399.78 | 1,939.61 | 127,592.54 | 90% | No | Not applicable | Not applicable | No |
| Supplementary working capital | No | 180,000.00 | 180,000.00 | - | 180,000.00 | 100% | No | Not applicable | Not applicable | No |
| A new generation of energy-saving products transformation and upgrading projects | No | - | 160,545.86 | - | - | - | No | Not applicable | Not applicable | No |
| Total | 598,608.41 | 603,929.76 | 23,139.35 | 423,069.26 | 70% | - | - | - | - | |
| The reasons for not reaching the planned progress or expected benefits (by specific projects) | N/A | |||||||||
| Description of major changes in the feasibility of the project | N/A | |||||||||
| The amount, use and progress of extra raised funds | Not applicable | |||||||||
| Change in implementation location of the committed projects | N/A | |||||||||
| Adjustment to implementation method of committed project | N/A | |||||||||
| Upfront investment and replacement of committed projects | On November 18, 2020, the Ninth Meeting of the Eighth Session of the Board of Directors of the Company reviewed and approved the “Proposal on the Use of Raised Funds to Replace Early Investment in Self-Own Funds”, and agreed to use raised funds of RMB 1,378,818,553.05 to replace pre-invested sell-raised funds for the project. The replacement of the raised funds has been verified by the Ernst & Young Hua Ming (2020) Special Zi No. 60662431_D05 special report issued by Ernst & Young Hua Ming Certified Public Accountants (special general partnership). |
| Use of idle raised funds for temporary supplement of working capital | N/A |
| Amount and cause of surplus of funds raised for project implementation | The company originally planned to invest in four fundraising projects, including the H series phase five, the NE1 series phase I engine production capacity construction project, the collision test room capacity upgrade construction project, the CD569 production line construction project, and the adjustment and upgrading project of Hefei Changan Automobile Co., Ltd. Compared with the planning, there is some unused founds, mainly because the company has reduced the actual investment amount by means of localized substitution of imported equipment in the process of project implementation in order to reduce the impact of the overseas epidemic on the project construction cycle. In the process of project construction, the scheme has been continuously optimized, and the lean investment process management has realized the control of the investment scale. According to the company's long-term strategic planning and development needs at the current stage, after comprehensive research and judgment by the company, in order to further improve the use efficiency of raised funds, the company plans to adjust the investment scale of the original raised funds investment projects, and use the estimated surplus funds of RMB 1,605,458,600 for the company's new generation of energy conservation Product transformation and upgrading project. |
| The purpose and placement of the unused raised funds | Deposited in a dedicated account by the Company for raised funds |
| Defects and other problems in utilization and disclosure of the raised funds | N/A |
(3) Changes of projects supported by raised funds
√ Applicable □ Not applicable
Unit: 10,000 RMB
| Changed project | The commitment of the original project | Total amount of funds to be invested in the project after the change (1) | The amount actually invested during the reporting period | Actual cumulative investment amount as of the end of the period (2) | Investment progress as of the end of the period (%) (3)=(2)/(1) | The date when the project reached the intended availability status | Benefits achieved during the reporting period | Whether the expected benefits have been achieved | Significant changes in the feasibility of the project after the change |
| A new generation of energy-saving products transformation and upgrading projects | 1. H series fifth phase, NE1 series first phase engine production capacity construction project 2. Crash Laboratory Capacity Upgrade C | 160,545.86 | -- | -- | -- | In the year of 2023 | Not applicable | Not applicable | Not applicable |
| onstruction Project 3. CD569 production line construction project 4. Hefei Changan Automobile Co., Ltd. adjustment and upgrade project | |||||||||
| 合计 | -- | 160,545.86 | -- | -- | -- | -- | -- | -- | -- |
| Reasons for change, decision-making procedures and information disclosure (by specific project) | 1. There was a balance of the original project investment funds compared to upfront planning. The main reason is that in order to reduce the impact of the overseas epidemic on the project construction cycle, the company has reduced the actual investment amount through the localization of imported equipment in the project implementation process in order to reduce the investment in the project construction cycle, and at the same time, the company has continuously optimized the program in the project construction process in order to continuously improve the quality of operation, and lean investment process management has realized the control of the scale and rhythm of investment. According to the company’s long-term strategic planning and the current development needs, after the company’s comprehensive research. In order to further improve the efficiency of the use of the raised funds, the company intends to adjust the investment scale of the original raised funds investment projects, and the expected balance of RMB 1,605.46 million for the company’s new generation of energy-saving product transformation and upgrading projects. 2. Decision-making procedure: The Company held the 38th meeting of the 8th Board of Directors on April 26, 2022, and approved the proposal of “Adjusting and Changing the Use of Part of the Raised Funds”. The proposal has yet to be submitted to the Company’s General Meeting of Shareholders for consideration. 3. Information disclosure: Please refer to the announcement of “Adjusting and Changing the Use of Part of the Raised Funds” (Announcement No.: 2022-23) on http://www.cninfo.com.cn. | ||||||||
| Reasons for failure to meet the planned schedule or projected benefits (by project) | Not applicable | ||||||||
| Description of significant changes in the feasibility of the project after the change | Not applicable | ||||||||
VII. Sale of significant Assets and Equity
1. Sale of significant assets
□ Applicable √ Not applicable
2. Sale of significant equity
□ Applicable √ Not applicable
VIII. Analysis of Major Shareholding and Joint Stock Companies
√ Applicable □ Not applicable
Major subsidiaries and joint stock companies that affect the company’s net profit by more than 10%
Unit: 10,000 RMB
| Name | Type | Main businesses | Registered capital | Total assets | Net assets | Operating income | Operating Profit | Net profit |
| Changan Ford Automobile Co., Ltd. | Joint Stock Company | Produce and sell auto and parts | 24,100USD | 4,042,348.61 | 702,416.19 | 2,337,780.25 | 121,051.29 | 104,520.33 |
| Chongqing Chang'an New Energy Vehicle Technology Co., Ltd. | shareholding company | Produce and sell auto and parts | 32,810.83 | 1,179,251.90 | 281,186.55 | 414,914.54 | -147,245.48 | -147,247.26 |
| AVATR. Co., Ltd. | shareholding company | New energy vehicle and parts development | 117,224.26 | 287,037.36 | 197,298.30 | 0.33 | -25,199.67 | -25,227.72 |
Subsidiaries acquired and sold in the reporting period
√ Applicable □ Not applicable
| Name | Acquisition and disposal of subsidiaries during the reporting period | Impact on overall production, operation and performance |
| Chongqing Xingzhi Technology Co., Ltd. | Newly established company | N/A |
| AVATR. Co., Ltd | Dilution of equity, loss of control | have a significant impact |
Description of major holding and participating companies
1. Changan Ford Automobile Co., Ltd has an increase in profit compared to the last reporting period, mainly due to the receipt ofincome-related subsidies.
2. Chongqing Chang'an New Energy Vehicle Technology Co., Ltd suffered a year-on-year loss due to declining subsidies, batteryprice hikes, and increased strategic investment.
3. AVATR. Co., Ltd has changed from the company's holding subsidiary to an associate, and is no longer included in the company'sconsolidated financial statements. The equity method is used for subsequent accounting, which has a significant impact on the company.For details, please refer to www.cninfo.com.cn (Announcement No.: 2022-29).IX. Structural main business under the company control
□ Applicable √ Not applicable
X. Possible risks and coresponding measures
1. Supply chain stability risk
First, the pandemic is still full of variables, international investment and trade are still disturbed, and the stability of the globalsupply chain is still under stress. Second, regional conflicts reshape the global geopolitical landscape fast. For security reasons, somecountries and enterprises are trying to relocate supply chain in a counter-globalized way, increasing risks global supply chainfluctuations in the automotive industry. Shortage of chip, battery and other parts will suppress automotive supply chain for a period oftime, and the production and supply is still under pressure.
Countermeasures: First, ensure normal production by optimizing operation methods; second, strengthen the cooperation with thesupply chain and reserve critical components at the right time; third, continue to promote the replacement program for some keycomponents.
2. Risk of raw material price increase
No sign of geopolitical conflicts slowing down in the short term. The commodity and raw materials, such as crude oil, will pricehigh for a period of time and resulting price increase for the automotive industry, especially the battery raw materials and chips are inthe prolonged up-price circle. In the medium and long term, with the easing of pandemic the commodity supply is expected to graduallyimprove. However, based on geopolitics, carbon emission constraints and other factors, energy, metals and other commodity price isstill full of uncertainties, which may lead to increased production costs and operating pressure for automotive enterprises.
Countermeasures: reduce the impact of raw material price increase by cutting internal costs. At the production end, we willcontinue to optimize the process to cut production costs; at the R&D end, we will optimize the cost structure by applying new materialsor alternative solutions while improving product quality and competitiveness; at the procurement end, we will optimize the suppliersystem and facilitate suppliers to apply new processes to control costs.
3. Market fluctuation risk
Since the beginning of this year, the pressure of domestic Covid prevention and control has increased significantly. Residents'spending is suppressed while expectations have turned weaker, preventive savings have increased and consumer confidence hasdeclined. Such trends have obivious impacts on the automotive market. In the second half of the year, with the easing of the pandemicand the support of national auto consumption policy, the auto market will gradually recover, but the risk of sporadic Covid distributionhas not yet been eliminated, which may lead to a limited recovery for auto market and a expanded fluctuation of market sales pace.
Countermeasures: First, make full use of the national purchase tax exemption and other policy support window to increasepromotion investments; second, accelerate the process of new marketing deployment, increase intelligent marketing efforts, strengthencontacts with users and minimize the market impact.XI. Reception Research, Communication, Interviews and Other Activities during the ReportingPeriod
| Date | Reception place | Research Type | Type of Research Object | Index |
| On February 22, 2022 | Chongqing | Field research | Institution | For details, see the On February 24, 2022 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: February 22, 2022 investor relations activities record sheet |
| On April 29, 2022 | Oneline | “Panorama · Road Show World” webcast | All investors | For details, see the May 6, 2022 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: April 29, 2022 investor relations activities record sheet |
| On May 5, 2022 | Telephone conference | Telephone conference | Institution | For details, see the May 6, 2022Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: May 5, 2022 investor relations activities record sheet |
| On May 6, 2022 | Telephone conference | Telephone conference | Institution | For details, see the May 9, 2022 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: May 6, 2022 investor relations activities record sheet |
| On May 7, 2022 | Telephone conference | Telephone conference | Institution | For details, see the May 9, 2022 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: On May 7, 2022 investor relations activities record sheet |
| On May 9, 2022 | Telephone conference | Telephone conference | Institution | For details, see the June 3, 2022 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: June 1, 2022 investor relations activities record sheet |
| On May 10, 2022 | Telephone conference | Telephone conference | Institution | For details, see the On May 11, 2022 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: May 10, 2022 investor relations activities record sheet |
| On May 11, 2022 | Telephone conference | Telephone conference | Institution | For details, see the May 13, 2022Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: May 11, 2022 investor relations activities record sheet |
| On May 12, 2022 | Telephone conference | Telephone conference | Institution | For details, see the July 9, 2022 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: July 7, 2022 investor relations activities record sheet |
| On May 18, 2022 | Telephone conference | Telephone conference | Institution | For details, see the May 20, 2022 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: May 18, 2022 investor relations activities record sheet |
| On May 19, 2022 | Telephone conference | Telephone conference | Institution | For details, see the May 20, 2022 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: May 19, 2022 investor relations activities record sheet |
| On May 23, 2022 | Telephone conference | Telephone conference | Institution | For details, see the May 24, 2022 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: May 23, 2022 investor relations activities record sheet |
| On May 25, 2022 | Telephone conference | Telephone conference | Institution | For details, see the May 27, 2022 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: May 25, 2022 investor relations activities record sheet |
| On May 26, 2022 | Telephone conference | Telephone conference | Institution | For details, see the May 27, 2022 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: May 26, 2022 investor relations activities record sheet |
| On June 7, 2022 | Telephone conference | Telephone conference | Institution | For details, see the June 8, 2022 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: June 7, 2022 investor relations activities record sheet |
| On June 10, 2022 | Telephone conference | Telephone conference | Institution | For details, see the June 10, 2022 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: June 10, 2022 investor relations activities record sheet |
| On June 15, 2022 | Telephone conference | Telephone conference | Institution | For details, see the June 16, 2022 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: June 15, 2022 investor relations activities record sheet |
| On June 16, 2022 | Telephone conference | Telephone conference | Institution | For details, see the June 17, 2022 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: June 16, 2022 investor relations activities record sheet |
| On June 20, 2022 | Telephone conference | Telephone conference | Institution | For details, see the June 22, 2022 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: June 20, 2022 investor relations activities record sheet |
| On June 23, 2022 | Telephone conference | Telephone conference | Institution | For details, see the June 24, 2022 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: June 23, 2022 investor relations activities record sheet |
Chapter 4 Corporate Governance
I. Annual Shareholders Meeting and Extraordinary General Meeting during the ReportingPeriod
1. Shareholders meeting during the reporting period
| Meeting Session | Type | Investors’ participation Ratio | Opening Time | Disclosure Time | Meeting Decision |
| 2022 The First Extraordinary General Meeting | EGM | 40.917% | March 17, 2022 | March 18, 2022 | http//www.cninfo.com.cn 2022 The First Extraordinary General Meeting Resolution Announcement (Announcement Number: 2022-14) |
| 2021 Annual Shareholders Meeting | Annual | 50.718% | June 15, 2022 | June 16, 2022 | http//www.cninfo.com.cn 2021 Annual Shareholders Meeting Resolution Announcement (Announcement Number: 2022-44) |
2. The shareholders of preferred shares with voting right restored request to convene an extraordinarygeneral meeting
□ Applicable √ Non-applicable
II. Departure and Hiring information of the directors, supervisors and senior manager
√ Available □ Not-available
| Name | Position | Type | Date | Reason |
| Zhang Xiaoyu | Vice President | Appointed | January 12, 2022 | Appointment |
| Wang Xiaofei | Vice President | Appointed | January 12, 2022 | Appointment |
| Li Mingcai | Executive Vice President | Appointed | January 28, 2022 | Appointment |
| Zhang Deyong | Board secretary | Appointed | January 28, 2022 | Appointment |
| Ye Wenhua | Director | Elected | March 17, 2022 | Appointment |
| Li Keqiang | Independent Director | Elected | June 15, 2022 | Appointment |
| Ding Wei | Independent Director | Elected | June 15, 2022 | Appointment |
| Tang Guliang | Independent Director | Elected | June 15, 2022 | Appointment |
| Zhang Ying | Independent Director | Elected | June 15, 2022 | Appointment |
| Xian Zhigang | Director | Elected | July 26, 2022 | Appointment |
| Li Wei | Executive Vice President | Outgoing | January 12, 2022 | Job change |
| Li Mingcai | Vice President | Outgoing | January 28, 2022 | Job change |
| Liu Jipeng | Independent Director | Outgoing | June 15, 2022 | Resign after six years of term |
| Li Qingwen | Independent Director | Outgoing | June 15, 2022 | Resign after six years of term |
| Chen Quanshi | Independent Director | Outgoing | June 15, 2022 | Resign after six years of term |
| Tan Xiaosheng | Independent Director | Outgoing | June 15, 2022 | Resign after six years of term |
| Ye Wenhua | Director | Outgoing | July 8, 2022 | Job change |
III. 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.IV. Implementation of company equity incentive plans, employee stock incentive plans or otherincentive measures
√ Applicable □ Not-applicable
On July 13, 2020, the 2nd meeting of the 8
thSession of Board of Directors and the 2nd meeting of the 8th Session of Board ofSupervisors reviewed and approved proposals such as “Proposal on <The Company's A-Share Restricted Stock Incentive Plan (Draft)>and its Summary” and “Proposal on <The Company's A-Share Restricted Stock Incentive Plan Implementation AssessmentManagement Measures>”. The independent directors expressed their independent agreement on the incentive plan.
On February 1, 2021, the 11th meeting of the 8th Session of Board of Directors and the 7th meeting of the 8th Session of Boardof Supervisors reviewed and approved proposals such as “Proposal on <The Company's A-Share Restricted Stock Incentive Plan(Revised Draft) > and its Summary” and “Proposal on <The Company's A-Share Restricted Stock Incentive Plan ImplementationAssessment Management Measures> (Revision)”. The independent directors expressed their independent agreement on the incentiveplan revision.On February 18, 2021, the Company held the first extraordinary general meeting in 2021, and reviewed and approved proposalssuch as “Proposal on <The Company's A-Share Restricted Stock Incentive Plan (Revised Draft) > and its Summary”, “Proposal on<The Company’s A-Share Restricted Stock Incentive Plan Implementation Assessment Management Measures (Revision) >” and“Proposal on General Meeting Granting Full Authority to the Board of Directors to Handle Matters Related to Equity Incentives”.
On February 22, 2021, the Company held the twelfth meeting of the Session of Board of Directors and the 8th meeting of theSession of Board of Supervisors, which reviewed and approved proposals such as “Proposal on Adjusting the List of Incentive Objectsand Incentive Quantity of the A-Share Restricted Stock Incentive Plan under Initial Granting” and “Proposal on Granting RestrictedStocks for the First Time to Incentive Objects of A-Share Restricted Stock Incentive Plan”. The independent directors expressed theirindependent agreement.
On March 3, 2021, the Company completed the registration of restricted stocks and disclosed the “Announcement on theCompletion of the Registration of the Initial Granting of the A-Share Restricted Stock Incentive Plan”. 1,247 people were actually
granted with 76,195,400 restricted shares. The listing date of restricted shares was March 5, 2021.On August 30, 2021, the Company held the 25th meeting of the 8th Session of Board of Directors and the 12th meeting of the 8thSession of Board of Supervisors, which reviewed and approved the “Proposal on Adjusting the Repurchase Price of A-Share RestrictedStock Incentive Plan” and “Proposal on Repurchase and Cancellation of Certain Restricted Shares Granted to Incentive Objects butstill with Sales Restriction”. The independent directors expressed independent agreement.On September 17, 2021, the Company held the second extraordinary general meeting in 2021, and reviewed and approved the“Proposal on Repurchase and Cancellation of Certain Restricted Shares Granted to Incentive Objects but still with Sales Restriction”.On November 19, 2021, the Company held the 29th meeting of the 8th Session of Board of Directors and the 15th meeting of the8th Session of Board of Supervisors, and reviewed and approved the “Proposal on Adjusting the Amount of Reserved A-ShareRestricted Stock Incentive Plan” and “Proposal on Granting Reserved Restricted Stocks to the Incentive Objects of the A-ShareRestricted Stock Incentive Plan”. The independent expressed independent agreement.On December 21, 2021, the Company completed the repurchase and cancellation of all 1.036 million restricted shares that hadbeen granted to the original 11 incentive objects but still had sales restrictions.
On December 30, 2021, the Company completed the registration of the reserved restricted stock and disclosed the “Announcementon the Completion of the Grant of the Reserved A-Share Restricted Stock of the Incentive Plan”; 356 people were granted with17,761,200 reserved restricted stocks. The listing date of reserved restricted stocks was December 31, 2021.
Chapter 5 Environment and social responsibilityI. Major Environment Concerns
Whether the listed companies and their subsidiaries are the key pollutant discharge units published by the environmental protectiondepartment
√ Yes □ No
| Name of the company or subsidiary | Main pollutants and specific pollutants | Discharge means | Number of discharge outlets | Distribution of discharge outlets | Discharge concentration (mg/L) | Pollutant discharge standards | Total discharge (ton/year) | Total approved discharge (ton/year) | Excessive discharge | |
| Chongqing Changan Automobile Co., Ltd. Yubei Plant | Wastewater | COD | Intermittent discharge | 3 | Two outlets for workshop facilities, and one main outlet for the Plant | 44.07 | Integrated Wastewater Discharge Standard (GB8978-1996); The Influent Water Quality Requirements set by the Yubei District Sewage Treatment Plant in Chongqing | 8.32 | 347.9 | — |
| Ammonia nitrogen | 1.42 | 0.26 | 31.31 | — | ||||||
| Total nickel | 0.2 | 0.03 | 0.17 | — | ||||||
| Total zinc | 0.12 | 0.03 | 3.48 | — | ||||||
| Phosphate | 0.18 | 0.04 | 0.7 | — | ||||||
| Exhaust gas | Sulfur dioxide | Organized discharge | 28 | Outlets around the Plant | 3.36 | Emission Standard of Air Pollutants for Surface Coating of Automobile Manufacturing Industry (DB 50/577-2015); Emission Standards of Air Pollutants for Industrial Kiln and Furnace (DB 50/659-2016); Integrated Emission Standards of Air Pollutants (DB 50/418-2016); Emission Standards of Air Pollutants for Boiler (DB 50/658-2016) | 0.56 | 16.95 | — | |
| Nitrogen oxides | 37.55 | 18.47 | 75.4 | — | ||||||
| Particulate matter | 4.05 | 5.00 | 94.33 | — | ||||||
| Volatile organic compounds | 1.27 | 1.72 | 221.21 | — | ||||||
| Toluene + Xylene | 0.06 | 0.04 | 50 | — | ||||||
| Soil | During the reporting period, the Yubei Plant of Chongqing Changan Automobile Co., Ltd. was included in the List of Key Pollutant Discharge Units of Chongqing in 2022 with a total of 889.71 tons of hazardous waste generated in this period. 889.71 tons have been legally disposed of by manufacturers with hazardous waste operation qualifications. | — | ||||||||
| Chongqing Changan Automobile Co., Ltd. (Liangjiang Plant, Campus No. 1) | Wastewater | COD | Intermittent emissions | 2 | An outlet for workshop facilities, and one main outlet for the Plant | 18.78 | Integrated Wastewater Discharge Standard (GB8978-1996); The Influent Water Quality Requirements set by Guoyuangang Sewage Treatment Plant in Chongqing | 2.53 | 11.40 | — |
| Ammonia nitrogen | 0.12 | 0.0338 | 1.14 | — | ||||||
| Total nickel | 0.03 | 0.006 | 0.06 | — | ||||||
| Total zinc | 0.08 | 0.0005 | 0.07 | — | ||||||
| Exhaust gas | Sulfur dioxide | Organized emissions | 32 | Outlets around the Plant | 6 | Emission standard of Air Pollutants for Surface Coating of Automobile Manufacturing Industry (DB 50/577-2015); Emission Standards of Air Pollutants for Industrial Kiln and Furnace (DB 50/659-2016); Integrated Emission Standards of Air Pollutants (DB 50/418-2016); Emission Standards of Air Pollutants for Boiler (DB 50/658-2016) | 0.53 | 4.82 | — | |
| Nitrogen oxides | 26.06 | 2.58 | 19.3 | — | ||||||
| Particulate matter | 9.4 | 5.63 | 41.54 | — | ||||||
| Volatile organic compounds | 8.84 | 3.2 | 58.59 | — | ||||||
| Toluene + xylene | 0.16 | 0.41 | 4.18 | — | ||||||
| Soil | During the reporting period, Liangjiang Plant, Campus No. 1 of Changan Automobile was included in the List of Key Pollutant Discharge Units of Chongqing in 2022 with a total of 1,162.49 tons of hazardous waste in this period. A total of 1,005.76 tons were legally disposed of by manufacturers with hazardous waste operation qualifications. | — | ||||||||
| Chongqing Changan Automobile Co., Ltd. (Liangjiang Plant, Campus No. 2) | Wastewater | COD | Intermittent emissions | 2 | An outlet for workshop facilities, and one main outlet for the Plant | 51 | Integrated Wastewater Discharge Standard (GB8978-1996); The Influent Water Quality Requirements set by the Guoyuangang Sewage Treatment Plant in Chongqing | 15.04 | 46 | — |
| Ammonia nitrogen | 1.875 | 1.17 | 4.6 | — | ||||||
| Total nickel | 0.043 | 0.002 | 0.14 | — | ||||||
| Total zinc | 0.06 | 0.01 | 1.38 | — | ||||||
| Exhaust gas | Sulfur dioxide | Organized emissions | 47 | Outlets around the Plant | 0 | Emission standard of Air Pollutants for Surface Coating of Automobile Manufacturing Industry (DB 50/577-2015); Emission Standards of Air Pollutants for Industrial Kiln and | 0 | 4.12 | — | |
| Nitrogen oxides | 60.8 | 13.09 | 26.6 | — | ||||||
| Particulate matter | 7.765 | 20.43 | 50.61 | — | ||||||
| Volatile organic compounds | 10.194 | 165.88 | 414.1 | — | ||||||
| Toluene + xylene | 0.649 | 0.48 | 1.54 | — | ||||||
| Furnace（DB 50/659-2016); Integrated Emission Standards of Air Pollutants（DB 50/418-2016); Emission Standards of Air Pollutants for Boiler（DB 50/658-2016) | ||||||||||
| Soil | During the reporting period, Liangjiang Plant, Campus NO. 2 was included in the List of Key Pollutant Discharge Units of Chongqing in 2022 with a total of 1,455.52 tons of hazardous waste. 1,455.52 tons were legally disposed of by manufacturers with hazardous waste operation qualifications. | — | ||||||||
| Chongqing Changan Automobile Co., Ltd. (Liangjiang Plant, Campus No. 3) | Wastewater | COD | Intermittent emissions | 2 | An outlet for workshop facilities, and one main outlet for the Plant | 47 | Integrated Wastewater Discharge Standard（GB8978-1996); The Influent Water Quality Requirements set by the Guoyuangang Sewage Treatment Plant in Chongqing | 9.08 | 45 | — |
| Total nickel | 0.13 | 0.01 | 0.1 | — | ||||||
| Ammonia nitrogen | 2.22 | 0.39 | 1.6 | — | ||||||
| Total zinc | 0.14 | 0.01 | 0.79 | — | ||||||
| Exhaust gas | Particulate matter | Organized emissions | 41 | Outlets around the Plant | 10.6 | Emission Standard of Air Pollutants for Surface Coating of Automobile Manufacturing Industry (DB 50/577-2015); Emission Standards of Air Pollutants for Industrial Kiln and Furnace (DB 50/659-2016); Integrated Emission Standards of Air Pollutants (DB 50/418-2016); Emission Standards of Air Pollutants for Boiler (DB 50/658-2016) | 7.88 | 62.42 | — | |
| VOCs | 18.8 | 5.75 | 230.72 | — | ||||||
| SO2 | 0 | 0.28 | 5 | — | ||||||
| Toluene + xylene | 0.491 | 0.19 | 0.85 | — | ||||||
| NOx | 19 | 2.46 | 23.32 | — | ||||||
| Soil | During the reporting period, Liangjiang Plant, Campus NO. 3 was included in the List of Key Pollutant Discharge Units in Chongqing in 2022 with a total of 1,140.87 tons of hazardous waste generated in this period. 1,147.73 tons were legally disposed of by manufacturers with hazardous waste operation qualifications. | — | ||||||||
| COD | 1 | 119.9 | 10.03 | 22.5 | — | |||||
| Chongqing Changan Automobile Co., Ltd. (Jiangbei Engine Plant) | Wastewater | Ammonia nitrogen (NH3-N) | Intermittent emissions | Main outlet for the Plant | 4.705 | Integrated Wastewater Discharge Standard（GB8978-1996); The Influent Water Quality Requirements set by the Guoyuangang Sewage Treatment Plant in Chongqing | 0.33 | 2.25 | — | |
| Exhaust gas | Particulate matter | Organized emissions | 91 | Outlets around the Plant | 9.2 | Emission Standards of Air Pollutants for Industrial Kiln and Furnace (DB 50/659-2016); Integrated Emission Standards of Air Pollutants (DB 50/418-2016) | 7.41 | — | — | |
| SO2 | 3 | 3.44 | — | — | ||||||
| VOCs | 7.5 | 0.19 | — | — | ||||||
| NOx | 8 | 4.62 | — | — | ||||||
| Soil | During the reporting period, Jiangbei Engine Plant, Plant NO. 1 was included in the List of Key Pollutant Discharge Units in Chongqing in 2022, and a total of 1,550 tons of hazardous waste was generated in this period. 1,550 tons were legally disposed of by manufacturers with hazardous waste operation qualifications. | — | ||||||||
| Chongqing Changan Automobile Co., Ltd. (Jiangbei Engine Plant, Plant No. 2） | Wastewater | COD | Intermittent emissions | 1 | Main outlet for the Plant | 16.4 | Integrated Wastewater Discharge Standard (GB8978-1996); The Influent Water Quality Requirements set by Guoyuangang Sewage Treatment Plant in Chongqing | 4.70 | 11.08 | — |
| Ammonia nitrogen (NH3-N) | 7.64 | 0.05 | 1.11 | — | ||||||
| Exhaust gas | Non- methane total hydrocarbons | Organized emissions | 35 | Outlets around the factory | 7.155 | Emission Standards of Air Pollutants for Industrial Kiln and Furnace (DB 50/659-2016); Integrated Emission Standards of Air Pollutants (DB 50/418-2016) | 3.22 | — | — | |
| Nitrogen oxides | 63.5 | 1.47 | — | — | ||||||
| Particulate matter | 19.45 | 4.17 | — | |||||||
| Phenols | 3.426 | 1.07 | — | |||||||
| Sulfur dioxide | 3 | 0.83 | — | — | ||||||
| Formaldehyde | 0.021 | 0.01 | — | — | ||||||
| Soil | During the reporting period, Jiangbei Engine Plant, Plant NO. 2 was included in the List of Key Pollutant Discharge units in Chongqing in 2022, and a total of 2,865 tons of hazardous waste was generated in this period. 2,865 tons were legally disposed of by manufacturers with hazardous waste operation qualifications. | — | ||||||||
| Chongqing Lingyao | Wastewater | COD | Intermittent emissions | 3 | An outlet for workshop facilities, | 36.19 | Integrated Wastewater Discharge Standard (GB8978-1996); The | 2.99 | 25.76 | — |
| Ammonia nitrogen | 1.79 | 0.17 | 3.48 | — | ||||||
| Automobile Co., Ltd. | Total nickel | and two main outlets for the Plant | 0.04 | Inlet Water Quality Requirements set by Guoyuangang Sewage Treatment Plant in Chongqing | 0 | 0.03 | — | |||
| Total zinc | 0.04 | 0.003 | 0.13 | — | ||||||
| Phosphate | 0.1 | 0.01 | 0.7 | — | ||||||
| Exhaust gas | Particulate matter | Organized emissions | 36 | Outlets around the Plant | 10.2 | Emission Standard of Air Pollutants for Surface Coating of Automobile Manufacturing Industry (DB 50/577-2015); Emission Standards of Air Pollutants for Industrial Kiln and Furnace（DB 50/659-2016); Integrated Emission Standards of Air Pollutants (DB 50/418-2016); Emission Standards of Air Pollutants for Boiler (DB 50/658-2016) | 12.85 | 19.24 | — | |
| Volatile organic compounds | 2.38 | 4.02 | 213.66 | — | ||||||
| Toluene + xylene | 0.07 | 0.97 | 51.95 | — | ||||||
| Soil | During the reporting period, Chongqing Lingyao Automobile Co., Ltd. (Changan Suzuki) was included in the List of Key Pollutant Discharge Units in Chongqing in 2022, and a total of 847.66 tons of hazardous waste was generated in this period. 847.66 tons were legally disposed of by manufacturers with hazardous waste operation qualifications. | — | ||||||||
| Chongqing Changan Automobile Co., Ltd. Beijing Changan Automobile Company | Wastewater | COD | Intermittent emissions | 2 | An outlet for workshop facilities, and a main outlet for the Plant | 78.58 | Integrated Discharge Standard of Water Pollutants (DB11/307-2013) | 7.25 | 63.68 | — |
| Ammonia nitrogen | 6.99 | 0.29 | 3.81 | — | ||||||
| Total nickel | 0.038 | 0.0003 | 0.01 | — | ||||||
| Phosphate | 2.19 | 0.02 | 5.71 | — | ||||||
| Exhaust gas | Nitrogen oxides | Organized emissions | 53 | Outlets around the Plant | 37.1 | Emission standard of Air Pollutants for Surface Coating of Automobile Manufacturing Industry (DB11/1227-2015); Integrated Emission Standards of Air Pollutants (DB11/501-2017） | 0.12 | 3.21 | — | |
| Volatile organic compounds | 2.26 | 4.13 | 458.76 | — | ||||||
| Soil | During the reporting period, Chongqing Changan Automobile Co., Ltd. Beijing Changan Automobile Company was included in the List of Key Pollutant Discharge units in Beijing in 2022. A total of 248.81 tons of hazardous waste was generated in this period, which was legally disposed of by manufacturers with hazardous waste operation qualifications. | — | ||||||||
| Hefei Changan Automobile Co., Ltd. | Wastewater | COD | Intermittent emissions | 3 | Two outlets for workshop facilities, and a main outlet for the Plant | 35.16 | Integrated Wastewater Discharge Standard (GB8978-1996); The Pipe Standards set by Hefei West Group Sewage Treatment Plant | 12.47 | 144.13 | — |
| Total nitrogen | 6.18 | 2.25 | 39.44 | — | ||||||
| Total nickel | 0.03 | 0.0027 | 0.09 | — | ||||||
| Total phosphorus | 0.15 | 0.058 | 4.73 | |||||||
| Ammonia nitrogen | 4.98 | 0.15 | 14.41 | — | ||||||
| Exhaust gas | VOCs | Organized emissions | 88 | Outlets around the Plant | 4.5 | Emission Control Standard for Industrial Enterprises Volatile Organic Compounds of Tianjin (DB12/524-2020) | 3.72 | 1139.6 | — | |
| Soil | During the reporting period, Hefei Changan Automobile Co., Ltd. was included in the List of Key Pollutant Discharge Units in Hefei in 2022, and a total of 898 tons of hazardous waste was generated in this period, which was legally disposed of by manufacturers with hazardous waste operation qualifications. | — | ||||||||
| Nanjing Changan Automobile Co., Ltd. | Wastewater | COD | Intermittent emissions | 2 | An outlet for workshop facilities, and a main outlet for the Plant | 37.55 | Integrated Wastewater Discharge Standard（GB8978-1996); The Pipe Standards set by Nanjing Lishui Qinyuan Sewage Treatment Co., Ltd. | 0.90 | 13.34 | — |
| Total nitrogen | 2.83 | 0.06 | 14.24 | — | ||||||
| Total nickel | 0.19 | 0.002 | 0.06 | |||||||
| Total phosphorus | 0.19 | 0.004 | 0.08 | — | ||||||
| Ammonia nitrogen（NH3-N） | 0.94 | 0.02 | 0.26 | — | ||||||
| Exhaust gas | NOx | Organized emissions | 6 | Outlets around the Plant | 9.67 | Emission Standard of Air Pollutants for Surface Coating of Automobile Manufacturing Industry (DB32/2862 – 2016); Integrated Emission Standards of Air Pollutants (GB 16297 - 1996); Emission Standards of Air Pollutants for Boiler (GB13271-2014) | 0.48 | 8.79 | — | |
| Particulate matter | 0.6 | 0.52 | 10.24 | — | ||||||
| VOCs | 4.3 | 3.39 | 38.48 | — | ||||||
| SO2 | 3 | 0.06 | 53.4 | — | ||||||
| Soil | During the reporting period, Nanjing Changan Automobile Co., Ltd. was included in the List of Key Pollutant Discharge Units in Nanjing in 2022, and a total of 223.50 tons of hazardous waste was generated in this period. 258.62 tons were legally disposed of by manufacturers with hazardous waste operation qualifications. | — | ||||||||
| Chongqing Changan Kaicene Automobile Technology Co., Ltd. Campus NO.1 | Wastewater | Ammonia nitrogen | Intermittent emissions | 2 | An outlet for workshop facilities, and a main outlet for the Plant | 8.44 | Integrated wastewater discharge standard (GB8978-1996); The Influent Water Quality Requirements Set by Gezhouba Water Dingzhou Branch | 0.10 | 4.8 | — |
| COD | 156 | 5.13 | 63.71 | — | ||||||
| Total nitrogen | 17.46 | 0.21 | 7.32 | — | ||||||
| Total phosphorus | 0.12 | 0.05 | 0.92 | |||||||
| Total nickel | 0.05 | 0.001 | 0.03 | — | ||||||
| Exhaust gas | Sulfur dioxide | Organized emissions | 46 | Outlets around the plant | 7.5 | Integrated Emission Standards of Air Pollutants GB16297-1996; Emission Standards of Air Pollutants for Industrial Kiln and Furnace DB1640-2012; Emission Control Standards for Volatile Organic Compounds by Industrial Enterprises DB13/2322-2016; Emission Standards of Air Pollutants for Boiler（DB13/5161-2020) | 0.12 | 30.01 | — | |
| Non-methane total hydrocarbons | 1.505 | 4.25 | 570.34 | — | ||||||
| Particulate matter | 5.3 | 3.17 | 53.4 | — | ||||||
| Nitrogen oxides | 23.5 | 4.10 | 31.47 | — | ||||||
| Soil | During the reporting period, Campus NO.2 of Chongqing Changan Kaicene Automobile Technology Co., Ltd. (formerly known as Hebei Changan) was included in the List of Key Pollutant Discharge Units in Dingzhou In 2022, with a total of 305.34 tons of hazardous waste generated in this period, of which 295.58 tons have been legally disposed of by suppliers with hazardous waste operation qualifications. | — | ||||||||
| Chongqing Changan Kaicene Automobile Technology Co., Ltd. Campus NO.2 | Wastewater | COD | Intermittent emissions | 2 | A workshop facility discharge outlet, and one factory total discharge outlet | 185 | Integrated Wastewater Discharge Standard (GB8978-1996); The Influent Water Quality Requirements Set by Gezhouba Water Dingzhou Branch | 4.23 | 63.71 | — |
| Ammonia nitrogen | 9.56 | 0.18 | 4.8 | — | ||||||
| Total nitrogen | 11.61 | 0.44 | 7.32 | — | ||||||
| Total phosphorus | 1.43 | 0.14 | 0.92 | |||||||
| Nickel | 0.05 | 0.003 | 0.03 | — | ||||||
| Exhaust gas | Sulfur dioxide | Organized emissions | 82 | Outlets around the plant | 3 | Integrated Emission Standards of Air Pollutants GB16297-1996; Emission Standards of Air Pollutants for Industrial Kiln and Furnace DB1640-2012; Emission Control | 1.39 | 88.23 | — | |
| Nitrogen oxides | 24.33 | 5.40 | 33.75 | — | ||||||
| Particulate matter | 5.77 | 9.02 | 850.8 | — | ||||||
| Volatile organic compounds | 2.87 | 50.84 | 880.62 | — | ||||||
| Standards for Volatile Organic Compounds by Industrial Enterprises DB13/2322-2016; Emission Standards of Air Pollutants for Boiler (DB13/5161-2020) | ||||
| Soil | During the reporting period, Campus NO.2 of Chongqing Changan Kaicene Automobile Technology Co., Ltd. (formerly known as Changan Bus) was included in the List of Key Pollutant Discharge Units in Dingzhou in 2022. A total of 481.48 tons of hazardous waste were generated in this period, and 463.98 tons were legally disposed of by suppliers with hazardous waste operation qualifications. | — | ||
Construction and operation of pollution prevention facilitiesNo new pollution prevention facilities were built during the reporting period. The main waste gas management facilities includefoundry dust removal and deodorization facilities in engine factories, oil mist filtration facilities, welding dust removal facilities invehicle factories and treatment facilities for coating volatile organic waste gas. Together with wastewater treatment facilities, they areincluded in preventive maintenance management of equipment, with account books, operation instructions, preventive maintenancerules, preventive maintenance plans and implementation records as well as operating records including equipment spot inspection,dosing, de-slagging and consumables replacement. The facilities are running normally. The key pollutant discharge units are allequipped with automatic wastewater and waste gas monitoring facilities and entrusted the third-party company to operate and maintainthe facilities.Administrative licensing of environmental impact assessment and other environmental protection for construction projectsIn accordance with the Law of the People’s Republic of China on Evaluation of Environmental Effects, the Regulations on theAdministration of Construction Project Environmental Protection, Chongqing’s Regulation on Environmental Protection, and theInterim Measures for the Construction Project Completion of Environmental Protection and Acceptance, the environmental impactevaluation and completion acceptance of the newly built, renovated and expanded projects strictly implement the environmental impactevaluation system and the “three-simultaneous” system.During the reporting period, the company obtained the approval of renovation project of new series of NEV assembly line in Plant1 of Liangjiang Plant and the technical renovation project of X70A series MPV. The company received environmental acceptance ofthe CD569 production line project, B561 series passenger vehicle technical renovation project and Q612 production line technicalrenovation project.For details of the changes in emission permits of each manufacturing base during the reporting period, please refer to the “NationalEmission Permit Management Information Platform” (Website: http:// permit.mee.gov.cn).Emergency preparedness and exercises of emergency environmental events
The company continues to carry out environmental protection emergency exercises and improve the ability to deal withenvironmental emergencies. During the reporting period, Jiangbei Engine Plant, Plant No. 2 and Nanjing Changan Automobile Co.,Ltd. revised and recorded plans for environmental emergencies as follows.
| Units | Emergency Plans | File Number | Government Branches | Major Risky Materials | Environment Risk Level |
| Jiangbei Engine Plant, Plant No. 2 | Chongqing Changan Automobile Co., Ltd. Jiangbei Engine Plant (Campus No. 1) Emergency Plan for Emergency Accidents | 5001282022050009 | Chongqing Municipal Ecology and Environment Bureau, Liangjiang New Area Branch | Emulsion, cutting fluid, gasoline, engine oil, etc. | High |
| Nanjing Changan Automobile Co., Ltd. | Nanjing Changan Emergency Plan for Environment Accidents | 3201242022087L | Nanjing Municipal Lishui Ecology and Environment Bureau | Sulfuric acid, hydrochloric acid, lubricating oil, gasoline, etc. | Medium |
Each base formulated emergency drill plans in accordance with laws and regulations, carried out emergency drills according to theplan, and continuously improved the practicability of the emergency plan and the emergency response skills of employees. Noenvironmental emergencies occurred during the reporting period.Formulation and implementation of environment self-monitoring plansDuring the reporting period, key discharge units of Changan Automobile formulated and implemented self-monitoring plans.Information disclosure has been made at websites according to the requirements of the local ecological environment authorities. Thewebsites are as follows.
| Units | Platform of Releasing Self-Monitoring Plans | Websites |
| Yubei Plant, Liangjiang Plant, Jiangbei Engine Plant, Lingyao Auto | Key pollution source monitoring data release platform | http://119.84.149.34:20003/publish2/dataSearchPub/entList.aspx |
| Beijing Changan Automobile Company | Beijing Municipal Release Platform of Business and Public Institutions Environmental Information | http://xxgk.bevoice.com.cn/monitor-pub/index.do |
| Hefei Changan Automobile Co., Ltd. | Anhui Provincial Release Platform of Discharging Units Self-Monitoring Information | http://39.145.0.253:8081/index |
| Nanjing Changan Automobile Co., Ltd. | Jiangsu Provincial Release Platform of Discharging Units Self-Monitoring Information | http://218.94.78.61:8080/newPub/web/home.htm |
| Kaicene Automobile Technology Co., Ltd. (formerly known as Hebei Changan or Baoding Changan Bus) | National Pollution Source Monitoring Information Management and Sharing Platform | https://wryjc.cnemc.cn/gkpt/mainZxjc/130000 |
Administrative penalties for environmental problems during the reporting periodNone.Measures taken to reduce carbon emissions and the results during the reporting period
√ Applicable □ Not applicable
Our carbon peak and carbon neutrality goals: to peak carbon emissions by 2027 and achieve carbon neutrality by 2045. Thecompany strives to reduce the carbon emission intensity per unit of production by 30% by 2025 and reduce the carbon emission of thesupply chain by 30% in 2030 compared to 2020.
To fulfill these goals, in the first half of 2022, Changan manufacturing units have taken solid steps in energy saving and carbonreduction, with carbon emissions per unit down by 12% from the end of the “13
th
Five-Year Plan”. We actively carried forward energyrestructuring. Hefei and Hebei bases have built 42MW photovoltaic power plants. We took the initiative in generating and using greenand clean energy. In the first half of the year, Changan consumed a total of 19 million kWh of green power with a carbon emission
reduction of 16,000 tons. Chongqing and Nanjing bases have been steadily building photovoltaic plants, which will add 57MW installedcapacity, about 46.64 million kWh green power every year. The equivalent carbon emission reduction will be 41,000 tons every year.We will scale up the share of green power to reduce carbon emissions.
The company carried out low-carbon technology research in multiple fields. In the field of new energy, we mastered 25 coretechnologies including Cell to Chassis, X-in-one e-powertrain, central controller development and VEM testing. We aim to build a newenergy powertrain system platform with excellent performance, quality and cost efficiency and provide users with a worry-free, safeand reliable low-carbon mobility experience. In the field of new power, we focus on the layout of high-efficiency hybrid power,intelligent plug-in hybrid systems and hydrogen engines to offer solutions with multiple powertrain options and build an industry-leading BlueCore powertrain platform to provide users with “efficient, low-carbon and intelligent” interaction experience. In the fieldof new materials, we focused on the R&D in integrated aluminum alloy die-casting technology, advanced thermoforming technology,steel and aluminum hybrid body technology. The company completed research on the performance of key low-carbon materials suchas recycled aluminum alloy, recycled PP, recycled fabrics and bio-based nylon. By 2030, the application of low-carbon materials willbe more than 40%, which will reduce the carbon emission of vehicle material by 30%.In the future, Changan will continue to strengthen technology and system innovation, and make breakthroughs in green low-carbon core technologies and accelerate the application. With carbon reduction as the key strategic direction, the company will promotethe reduction of pollution and carbon emissions in manufacturing, products, supply chain, etc. Also, Changan will promote the overallgreen transformation of economic and social development and improve the ecological and environmental quality from quantitativechange to qualitative change.Others (environmental credit evaluation and solid waste disposal)During the reporting period, Liangjiang Plant, Jiangbei Engine Plant, Yubei Plant, Lingyao Automobile and other production basescarried out environmental credit evaluation in 2021 according to the requirements of the local authorities of ecological environment.During the reporting period, 74,003 tons of general industrial solid waste were generated, of which 73,893 tons were disposed.12,122 tons of hazardous waste were generated, of which 11,981 tons were disposed. The company has verified the qualifications andtechnical capabilities of the third party entrusted to dispose of the waste.II. Social Responsibility
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, Changan Auto fully applied the guidingprinciples of the 19th CPC National Congress and all the plenary sessions of the 19th CPC Central Committee. The company deeplyimplemented the spirit of the State Council of the Central Committee on Promoting Rural Revitalization in 2022, and firmlyimplemented the decisions and plans of the government, highlighted annual tasks, targeted initiatives and practical orientation. Changaneffectively advanced dedicated poverty alleviation efforts, fulfilled the political and social responsibilities and contributed our part tothe comprehensive promotion of rural revitalization.
1. Strengthening organizational leadership
(1) The company held two meetings of the leading group for dedicated poverty alleviation to study the annual work plan andreview and adjust the company’s leading group for dedicated poverty alleviation.
(2) The company held 21 meetings on the theme of dedicated poverty alleviation for rural revitalization to identify key assistanceprojects, study the plan, formulate measures and promote the work.
2. Promoting assistance projects
(1) Industrial support
The company implemented the local government’s overall plan for implementing rural revitalization, with the new mode of“enterprises joining hands with enterprises to drive industry”. By promoting marketing and sales channels, improving the brand andcorporate image, building business management system, we fully boosted the Youyang Camellia Oil assistance project for ruralrevitalization and strived to create a new form of cross-field charity, fulfilling social responsibility as a state-owned enterprise. In thefirst half of the year, we helped to achieve sales of camellia oil of RMB 18,716,000.For industries with distinctive features in Chongqing, the company formulated the assistance plan and encouraged employees topurchase Tan Mei Zi chili products and sold the products through Changan Mall, achieving a sales assistance of RMB43,500.
(2) Skills support
To give full play to the advantages of the automobile industry by skill training, the company signed a project cooperationagreement and an agreement on the integration of industry and education with Chongqing Youyang Vocational Education Center topromote local employment. We implemented campus recruitment in Youyang, Chongqing and recruited a total of 120 students.
(3) Support through consumption
The pro-consumption projects were launched to promote rural revitalization. In the first half of the year, RMB426,400 ofagricultural products were sold from the areas targeted for assistance. Trade union organizations at all levels gave priority to agriculturaland subsidiary agricultural products for targeted assistance when purchasing gifts and rewards for employees. The trade union madefull use of various traditional media and new forms of media of increase support through consumption and encouraged employees topurchase and help to sell the products, broadened the sales channels and promoted the industrial development of the areas and increasedstable income of the people.
3. Review and mobilization campaign
The company reviewed the work of rural revitalization and mobilize all units to take the initiative and committed to the work tocreate a good atmosphere for jointly promoting rural revitalization. The project management team of designated assistance for ruralrevitalization was awarded the honorary title of “Chongqing Pioneer Worker” by the Chongqing Municipal Federation of Trade Unions.
Chapter 6 Important Matters
I. Commitments finished in implementation by the Company, shareholders, actual controller,acquirer, directors, supervisors, senior executives or other related parties in the reportingperiod and commitments unfinished in implementation at the end of the reporting period
√ Applicable □Not applicable
| Undertakings | Undertaking party | Type of undertaking | Description | Date | Duration | Performance |
| Undertakings made at the IPO or refinancing | China South Industries Group Co., Ltd.; China Changan Automobile Group Co., Ltd.; Southern Industry Asset Management Co., Ltd. | Sales restrictions for shares | The shares of Changan Automobile subscribed through this offering shall not be transferred in any way within 36 months after the offering, including but not limited to public transfer through the securities market or by agreement. | October, 2020 | 36 Months | In normal progress |
| Whether the promise is fulfilled as scheduled | Yes | |||||
II. Non-operating funds the listed company occupied by controlling shareholders and theirrelated parties
□ Applicable √ Not applicable
During the reporting period, there was no non-operating funds of the listed company occupied by the controlling shareholder andrelated parties.III. Irregular external guarantee
□ Applicable √ Not applicable
The Company has no irregular external guarantee during the reporting period.IV. Appointment and dismissal of the accounting firm
Is 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 and restructuring
□ Applicable √ Not applicable
During the report period, there is no bankruptcy or restructuring.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
X. The integrity of company, its controlling shareholder and actual controller
□ Applicable √ Not applicable
XI. Significant related-party transactions
1. Related-party transactions related to daily operation
√Applicable □Not-applicable
For details, please refer to Note 12 “Related Party Relationships and Transactions” under Chapter 10.
2. Related-party transaction of acquisition or sales of assets or equity
□ Applicable √ Not applicable
3. Related-party transactions of common foreign investment
□ Applicable √ Not applicable
4. Related rights and debt relations
√Applicable □Not-applicable
For details, please refer to Note 12 “Related Party Relationships and Transactions” under Chapter 10.
Whether there is any non-business-related credits and debts
□Yes √ No
There is no non-operating associated credits and debts during the reporting period.
5. Transactions with associated financial companies
√ Applicable □Not applicable
Deposit
| Related party | Relationship | Maximum daily deposit limit (RMB: 10,000) | Interest rate | Beginning balance (RMB: 10,000) | Amount incurred in the current period | Ending balance (RMB: 10,000) | |
| Total deposit amount (RMB: 10,000) | Total withdrawal amount (RMB: 10,000) | ||||||
| China South Industries Group Finance Co., Ltd. | A company controlled by the actual controller of Changan Automobile | 2,000,000 | 0.35%-2.1% | 1,965,298 | 14,841,430 | 15,120,446 | 1,686,282 |
| Changan Automobile Finance Co., LTD | A company controlled by the actual controller of Changan Automobile | 1,500,000 | 2.25% | 1,200,000 | 330,000 | 480,000 | 1,050,000 |
Loan
| Related party | Relationship | Loan amount (RMB: 10,000) | Interest rate | Beginning balance (RMB: 10,000) | Amount incurred in the current period | Ending balance (RMB: 10,000) | |
| Total amount of loan (RMB: 10,000) | Total repayment amount (RMB: 10,000) | ||||||
| China South Industries Group Finance Co., Ltd. | A company controlled by the actual controller of Changan Automobile | 50,000 | 1%-4.75% | 7,330 | 6,807 | 90 | 14,047 |
Credit granting or other financial business
| Related party | Relationship | Business | Total amount (RMB: 10,000) | Actual amount incurred (RMB: 10,000) |
| China South Industries | A company controlled by | Credit granting | 950,000 | 313,250 |
| Group Finance Co., Ltd. | the actual controller of Changan Automobile |
6. Transactions between the financial company controlled by the company and related parties
□ Applicable √ Not applicable
7. Other significant related-party transactions
√ Applicable □Not applicable
Interim announcement of major related-party transactions on the website
XII. Major contracts and their performance
1. Custody, contracting and leasing
（1）Custody
□Applicable √ Not-applicable
Custody informationThere is no custody during the reporting period.
（2）Contracting
□Applicable √ Not-applicable
There is no contracting during the reporting period.
（3）Leasing
√Applicable □Not-applicable
Leasing informationLeasing of related parties can be found in Item 5 (2) of Note twelve of Financial Statements “Related Party and Related Transactions”.Projects whose profit and loss to the company account for more than 10% of total profits during the reporting period.
□Applicable √ Not-applicable
There was no project whose profit and loss to the company accounted for more than 10% of total profits during the reporting period.
2. Guarantee
□Applicable √ Not-applicable
There’s no guarantee during the report period.
3. Entrust wealth management
□Applicable √ Not-applicable
There’s no entrusting wealth management during the reporting period.
| Interim announcement | Interim announcement date | Wsebsite |
| Announcement of Expected Related-party Transactions in the Ordinary Course of 2022 | April 28, 2022 | http://www.cninfo.com.cn |
| Announcement on Related-party Transactions of China South Industries Group Finance Co., Ltd. Providing Financial Services for Changan Automobile | May 21, 2022 | |
| Announcement on Related-party Transactions of Changan Automobile Finance Co., Ltd. Providing Financial Services for Changan Automobile | May 21, 2022 |
4. Other major contracts
□ Applicable √ Not applicable
There are no other major contracts of the Company during the reporting period.XIII. Other important events
□ Applicable √ Not applicable
XIV. Important matters of the Company's subsidiary
□ Applicable √ Not applicable
Chapter 7 Changes in the Shareholding of the Company and
Shareholders
I. Change in shareholdings
1. Change in shareholdings
Unit: One share
| Before change | Changes（+，-） | After change | |||||||
| Quantity | Ratio | Additional issued | Stock dividend | Provident fund transfer | Other | Subtotal | Quantity | Ratio | |
| I.Shares with sales restrictions | 519,818,865 | 6.81% | 155,945,659 | 155,945,659 | 675,764,524 | 6.81% | |||
| 1. State-owned legal person shares | 396,393,645 | 5.19% | 118,918,093 | 118,918,093 | 515,311,738 | 5.19% | |||
| 2. Other domestic shares | 122,490,320 | 1.61% | 36,747,096 | 36,747,096 | 159,237,416 | 1.61% | |||
| Including: Domestic legal person shares | |||||||||
| Domestic natural person shares | 122,490,320 | 1.61% | 36,747,096 | 36,747,096 | 159,237,416 | 1.61% | |||
| 3. Foreign shares | 934,900 | 0.01% | 280,470 | 280,470 | 1,215,370 | 0.01% | |||
| Including: Foreign legal person shares | |||||||||
| Foreign natural person shares | 934,900 | 0.01% | 280,470 | 280,470 | 1,215,370 | 0.01% | |||
| II.Shares without sales restrictions | 7,112,334,537 | 93.19% | 2,133,700,361 | 2,133,700,361 | 9,246,034,898 | 93.19% | |||
| 1.Ordinary shares denominated in RMB | 5,849,553,939 | 76.64% | 1,754,866,182 | 1,754,866,182 | 7,604,420,121 | 76.64% | |||
| 2. Domestic listed foreign shares | 1,262,780,598 | 16.55% | 378,834,179 | 378,834,179 | 1,641,614,777 | 16.55% | |||
| III.Total shares | 7,632,153,402 | 100.00% | 2,289,646,020 | 2,289,646,020 | 9,921,799,422 | 100.00% | |||
Reasons for share change
√ Applicable □ Not applicable
The company implemented the 2021 annual equity distribution (see the "Announcement on the Implementation of 2021 AnnualDividend Distribution and Capital Share Increase by Transfer" for more information). The distribution plan went: based on the totalcapital share of 7,632,153,402, distribute RMB 2.33 for each 10 shares Cash (tax included) to all shareholders and increase bytransferring 3 shares for each 10 shares to all shareholders by capital reserve. The total number of capital share was 9,921,799,422 afterthe transfer.Approval of share change
√ Applicable □ Not applicable
The matter was reviewed and approved by the 38th meeting of the 8th Session of Board of Directors on April 26, 2022, and was
reviewed and approved by the company's 2021 annual general meeting of shareholders on June 15, 2022.Transfer of shares
√ Applicable □ Not applicable
See Chapter 7, I, 1, "Reasons for share change" for details.Implementation progress of share repurchase
□ Applicable √ Not applicable
Implementation progress of reducing and repurchasing shares by means of centralized bidding
□ Applicable √ Not applicable
Impact of share changes on financial indicators such as basic earnings per share and diluted earnings per share in the latestyear and the latest period, and net assets per share attributable to ordinary shareholders of the company
√ Applicable □ Not applicable
The basic earnings per share at the beginning of the reporting period was RMB 0.17 yuan per share, and at the end of the periodis 0.60 yuan per share. The diluted earnings per share at the beginning of the reporting period was RMB 0.17 yuan per share, and atthe end of the period is 0.59 yuan per share. The net assets per share attributable to ordinary shareholders at the beginning were RMB
7.30 per share, and at the end of the period is RMB 6.12 per share.
Other information deemed necessary by the company or required by securities regulators to disclose
□ Applicable √ Not applicable
2. Changes in restricted shares
√ Applicable □ Not applicable
Unit: share(s)
| Name of shareholders | Number of restricted shares at the beginning of the period | Number of shares with sales restriction removed during the reporting period | Increase during the reporting period | Number of restricted shares at the end of the period | Reasons for restrictions | Date of removal of sales restriction |
| China South Industries Group Co., Ltd. | 3,870,280 | - | 1,161,084 | 5,031,364 | Non-public issuance of A shares in 2020 | 2023-10-26 |
| China Changan Automobile Group Co., Ltd. | 130,841,122 | - | 39,252,336 | 170,093,458 | Non-public issuance of A shares in 2020 | 2023-10-26 |
| Southern Industry Asset Management Co., Ltd. | 261,682,243 | - | 78,504,673 | 340,186,916 | Non-public issuance of A shares in 2020 | 2023-10-26 |
| Zhu Huarong | 26,460 | - | 7,938 | 34,398 | Lock-up stocks for executives | 6 months after the retirement |
| A-share restricted stock | 34,860,395 | - | 10,458,118 | 45,318,513 | Equity incentive | 2023-03-05 |
| A-share restricted stock | 34,860,395 | - | 10,458,118 | 45,318,513 | Equity incentive | 2024-03-05 |
| A-share restricted stock | 35,916,770 | - | 10,775,032 | 46,691,802 | Equity incentive | 2025-03-05 |
| A-share restricted stock | 5,861,196 | - | 1,758,359 | 7,619,555 | Equity incentive | 2023-12-31 |
| A-share restricted stock | 5,861,196 | - | 1,758,359 | 7,619,555 | Equity incentive | 2024-12-31 |
| A-share restricted stock | 6,038,808 | - | 1,811,642 | 7,850,450 | Equity incentive | 2025-12-31 |
| Total | 519,818,865 | - | 155,945,659 | 675,764,524 | -- | -- |
II. Issuing and listing of securities
□ Applicable √ Not-applicable
III. Shareholding and shareholders of the company
Unit: share(s)
| At the end of the report period, the total number of shareholders | 664,305 | Number of shareholders holding preference shares with restored voting rights at the end of the reporting period | 0 | ||||||
| Shareholders holding more than 5% of the shares, or top 10 shareholders | |||||||||
| Name | Nature | Percentage | Number of shares held as of the end of the reporting period | Increase/ decrease during the Reporting Period | Number of shares held with sales restrictions | Number of shares held without sales restrictions | Condition of shares (pledged, labeled or frozen) | ||
| Status | Amount | ||||||||
| China Changan Automobile Group Co., Ltd. | State-owned legal person | 17.97% | 1,783,090,143 | 411,482,340 | 170,093,458 | 1,612,996,685 | Not pledged, labeled or frozen | ||
| China South Industries Group Co., Ltd. | State-owned legal person | 14.22% | 1,410,747,155 | 285,364,756 | 5,031,364 | 1,405,715,791 | |||
| Southern Industry Asset Management Co., Ltd. | State-owned legal person | 5.10% | 506,243,257 | 49,175,367 | 340,186,916 | 166,056,341 | |||
| China Securities Finance Co., Ltd. | Domestic general legal person | 4.30% | 426,362,905 | 98,391,439 | 426,362,905 | ||||
| United Prosperity Investment Co., Ltd. | Foreign legal person | 2.83% | 280,498,832 | 64,730,500 | 280,498,832 | ||||
| Hong Kong Securities Clearing Co., Ltd. | Foreign legal person | 1.67% | 165,913,975 | -74,772,465 | 165,913,975 | ||||
| China Merchants Securities (HK) Co., Ltd. | State-owned legal person | 0.50% | 50,022,341 | -5,669,661 | 50,022,341 | ||||
| China Construction Bank Corporation - Huaxia Energy Reform Equity Securities Investment Fund | Funds, wealth management products, etc. | 0.49% | 49,073,312 | -6,799,132 | 49,073,312 | ||||
| GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED | Foreign legal person | 0.46% | 45,203,695 | 15,039,257 | 45,203,695 | ||||
| China Construction Bank Co., Ltd. - China Guangfa Securities Co., Ltd. (all index auto) initiated securities | Funds, wealth management products, etc. | 0.44% | 43,352,836 | 20,339,989 | 43,352,836 | ||||
| investment fund | ||||
| Description of the related party relationship or acting in concert among the above shareholders | Among the top 10 shareholders, the actual controller China South Industries Group Co., Ltd. and its wholly-owned subsidiary Southern Industry Asset Management Co., Ltd., the controlling shareholder China Changan Automobile Group Co., Ltd. and its wholly-owned subsidiary United Prosperity Investment Co., Ltd. are parties acting in concert by “Measures for the Administration of Takeover of Listed Companies”. | |||
| Description of the above-mentioned shareholders entrusting/being entrusted with voting rights and waiver of voting rights | None | |||
| Shareholdings of the top 10 ordinary shareholders of unrestricted shares | ||||
| Shareholders | Number of shares without sales restrictions at the end of the reporting period | Shares type | ||
| Type | Number | |||
| China Changan Automobile Group Co., Ltd. | 1,612,996,685 | RMB ordinary shares | 1,612,996,685 | |
| China South Industries Group Co., Ltd. | 1,405,715,791 | RMB ordinary shares | 1,405,715,791 | |
| China Securities Finance Co., Ltd. | 426,362,905 | RMB ordinary shares | 426,362,905 | |
| United Prosperity Investment Co., Limited | 280,498,832 | Domestic listed foreign shares | 280,498,832 | |
| Southern Industry Asset Management Co., Ltd. | 166,056,341 | RMB ordinary shares | 166,056,341 | |
| Hong Kong Securities Clearing Co., Ltd. | 165,913,975 | RMB ordinary shares | 165,913,975 | |
| China Merchants Securities (HK) Co., Ltd. | 50,022,341 | Domestic listed foreign shares | 50,022,341 | |
| China Construction Bank Corporation - Huaxia Energy Reform Equity Securities Investment Fund | 49,073,312 | RMB ordinary shares | 49,073,312 | |
| Guotai Junan Securities(Hongkong) Limited | 45,203,695 | Domestic listed foreign shares | 45,203,695 | |
| China Construction Bank Co., Ltd. - China Guangfa Securities Co., Ltd. (all index auto) initiated securities investment fund | 43,352,836 | RMB ordinary shares | 43,352,836 | |
| Description of the related relationship or acting in concert among the top 10 shareholders of unrestricted circulating shares, and between the top 10 shareholders of unrestricted tradable shares and the top 10 shareholders | Among the top 10 shareholders, the actual controller China South Industries Group Co., Ltd. and its wholly-owned subsidiary Southern Industry Asset Management Co., Ltd., the controlling shareholder China Changan Automobile Group Co., Ltd. and its wholly-owned subsidiary United Prosperity Investment Co., Ltd. are parties acting in concert as stipulated in the “Measures for the Administration of Takeover of Listed Companies”. | |||
| Description of the top 10 ordinary shareholders participating in the margin trading and securities lending business | None | |||
Whether the top 10 shareholders of ordinary shares, and the top 10 shareholders of ordinary shares without sales restrictionsagreed on the repurchase transactions during the report period
□ Yes √ No
The top 10 shareholders of ordinary shares, and the top 10 shareholders of ordinary shares without sales restrictions did notagree on the repurchase transactions during the reporting period.
IV. Changes in the shareholding of directors, supervisors and senior management
√ Applicable □ Not applicable
| Name | Duties | Employment status | Number of shares held at the beginning of the period (shares) | Increase (shares) | Reduce (shares) | Number of shares held at the end of the period (shares) | Number of restricted stocks granted at the beginning of the period (shares) | Number of restricted stocks granted in the current period (shares) | Number of restricted stocks granted at the end of the period (shares) |
| Zhu Huarong | Chairman, Secretary of the Party Committee | Incumbent | 385,280 | 500,864 | 350,000 | 455,000 | |||
| Xian Zhigang | Director | Incumbent | |||||||
| Zhang Bo | Director | Incumbent | |||||||
| Liu Gang | Director | Incumbent | |||||||
| Zhou Kaiquan | Director | Incumbent | |||||||
| Wang Jun | Director, President and Deputy Party Secretary | Incumbent | 280,000 | 364,000 | 280,000 | 364,000 | |||
| Zhang Deyong | Director, CFO, Secretary of the Board of Directors | Incumbent | 271,600 | 353,080 | 271,600 | 353,080 | |||
| Ren Xiaochang | Independent Director | Incumbent | |||||||
| Wei Xinjiang | Independent Director | Incumbent | |||||||
| Cao Xingquan | Independent Director | Incumbent | |||||||
| Yang Xinmin | Independent Director | Incumbent | |||||||
| Li Keqiang | Independent Director | Incumbent | |||||||
| Ding Wei | Independent Director | Incumbent | |||||||
| Tang | Independent | Incumbent |
| Guliang | Director | ||||||||
| Zhang Ying | Independent Director | Incumbent | |||||||
| Lian Jian | Chairman of the Supervisory Board | Incumbent | |||||||
| Sun Dahong | Supervisor | Incumbent | |||||||
| Shi Shengwei | Employee Supervisory Board Member | Incumbent | |||||||
| Luo Yan | Employee Supervisory Board Member | Incumbent | |||||||
| Yuan Mingxue | Deputy Secretary of the Party Committee | Incumbent | 280,000 | 364,000 | 280,000 | 364,000 | |||
| He Chaobing | Executive Vice President | Incumbent | 271,600 | 353,080 | 271,600 | 353,080 | |||
| Hua Zhanbiao | Secretary of Discipline Inspection Commission | Incumbent | 271,600 | 353,080 | 271,600 | 353,080 | |||
| Tan Benhong | Executive Vice President | Incumbent | 271,600 | 353,080 | 271,600 | 353,080 | |||
| Ye Pei | Executive Vice President | Incumbent | 271,600 | 353,080 | 271,600 | 353,080 | |||
| Zhao Fei | Executive Vice President | Incumbent | 271,600 | 353,080 | 271,600 | 353,080 | |||
| Chen Wei | Executive Vice President | Incumbent | 271,600 | 353,080 | 271,600 | 353,080 | |||
| Li Mingcai | Executive Vice President | Incumbent | 271,600 | 353,080 | 271,600 | 353,080 |
| Yang Dayong | Vice President | Incumbent | 194,000 | 252,200 | 194,000 | 252,200 | |||
| Peng Tao | Vice President | Incumbent | 191,240 | 248,612 | 191,240 | 248,612 | |||
| Zhang Xiaoyu | Vice President | Incumbent | 191,240 | 248,612 | 191,240 | 248,612 | |||
| Wang Xiaofei | Vice President | Incumbent | 132,300 | 171,990 | 132,300 | 171,990 | |||
| Li Jun | Secretary of the Board | Incumbent | 191,240 | 248,612 | 191,240 | 248,612 | |||
| Li Wei | Executive Vice President | Outgoing | 271,600 | 353,080 | 271,600 | 353,080 | |||
| Liu Jipeng | Independent Director | Outgoing | |||||||
| Li Qingwen | Independent Director | Outgoing | |||||||
| Chen Quanshi | Independent Director | Outgoing | |||||||
| Tan Xiaosheng | Independent Director | Outgoing | |||||||
| Ye Wenhua | Director | Outgoing | |||||||
| Total | 4,289,700 | 5,576,610 | 4,254,420 | 5,530,746 |
Note: 1.The above employment status is as of the disclosure date of this report.
2. Number of shares at the end of the reporting period has been adjusted according to the implementation of the Company’s2021 equity distribution plan.
V. The change of the controlling shareholders and theactual controllers
During the reporting period the change of controlling shareholders
□ Applicable √ Not-applicable
No changes in controlling shareholders during the reporting period.The change of the actual controllers during the reporting period
□ Applicable √ Not-applicable
No changes in the actual controllers during the reporting period.
Chapter 8 Preferred Shares
□ Available √ Not- available
During the reporting period, there were no preferred shares in the company.
Chapter 9 Bonds
□ Available √ Not- available
Chapter 10 The Financial Statements
I. Auditing ReportNo audit on the semi-annual financial report.II. Financial statementsFinancial in notes to the statements of the unit is: RMB yuan
1. Consolidated Balance Sheet
In RMB Yuan
| Account | 2022.6.30 | 2022.1.1 |
| Current assets: | ||
| Cash | 53,421,783,239.85 | 51,976,242,149.37 |
| Trading financial assets | 305,967,574.57 | 195,798,300.00 |
| Notes receivable | 21,178,905,132.66 | 24,267,633,416.65 |
| Accounts receivable | 3,597,002,110.54 | 1,675,427,534.87 |
| Prepayments | 3,863,981,393.89 | 3,241,248,831.28 |
| Other receivables | 509,614,847.86 | 632,122,942.37 |
| Including: dividends receivable | 255,356,145.11 | |
| Inventories | 7,024,925,792.62 | 6,852,874,420.59 |
| Contract assets | 1,036,757,897.63 | 1,151,292,247.36 |
| Other current assets | 782,671,443.74 | 1,147,798,871.42 |
| Total current assets | 91,721,609,433.36 | 91,140,438,713.91 |
| Non-current assets: | ||
| Long-term equity investments | 17,304,612,282.75 | 13,245,374,860.55 |
| Investment in other equity instruments | 701,409,600.00 | 701,409,600.00 |
| Investment properties | 6,536,070.82 | 6,649,426.60 |
| Fixed assets | 20,513,654,898.34 | 21,325,959,850.16 |
| Construction in progress | 1,130,381,106.58 | 1,460,176,539.43 |
| Right-of-use asset | 50,017,632.80 | 66,313,062.98 |
| Intangible assets | 4,365,838,896.35 | 4,385,997,657.67 |
| Development expenditure | 551,480,202.86 | 727,568,248.78 |
| Goodwill | 9,804,394.00 | 48,883,188.37 |
| Long-term deferred expenses | 21,707,099.51 | 15,032,814.19 |
| Deferred tax assets | 2,435,308,963.54 | 2,280,819,516.99 |
| Total non-current assets | 47,090,751,147.55 | 44,264,184,765.72 |
| TOTAL ASSETS | 138,812,360,580.91 | 135,404,623,479.63 |
| Current liabilities: | ||
| Short-term loans | 46,166,500.00 | 19,000,000.00 |
| Notes payable | 26,921,406,502.22 | 24,292,268,371.12 |
| Accounts payable | 23,994,999,761.80 | 23,650,604,870.98 |
| Contract liability | 4,956,070,974.92 | 9,840,509,514.39 |
| Payroll payable | 3,326,799,792.65 | 2,566,570,928.52 |
| Taxes payable | 707,493,157.04 | 1,121,313,397.52 |
| Other payables | 5,116,328,239.99 | 4,562,626,344.69 |
| Non-current liabilities within one year | 887,576,604.11 | 533,839,583.57 |
| Other current liabilities | 5,462,299,176.16 | 5,680,959,029.22 |
| Total current liabilities | 71,419,140,708.89 | 72,267,692,040.01 |
| Non-current liabilities: | ||
| Long-term loans | 40,000,000.00 | 600,000,000.00 |
| Lease liability | 28,202,020.25 | 38,679,735.59 |
| Long-term payables | 631,003,313.51 | 825,473,490.08 |
| Long-term payroll payable | 36,636,829.52 | 39,103,000.00 |
| Estimated liabilities | 4,280,005,759.73 | 3,839,015,677.84 |
| Deferred Revenue | 499,479,412.93 | 924,749,731.12 |
| Deferred tax liabilities | 219,704,466.04 | 217,441,992.37 |
| Other non current liabilities | 843,750,617.87 | 786,227,868.42 |
| Total non-current liabilities | 6,578,782,419.85 | 7,270,691,495.42 |
| Total liabilities | 77,997,923,128.74 | 79,538,383,535.43 |
| Owners’ equity (or Shareholders’ equity): | ||
| Share capital | 9,921,799,422.00 | 7,632,153,402.00 |
| Capital reserves | 8,342,424,351.08 | 9,776,193,360.38 |
| Less: treasury shares | 655,812,327.60 | 655,812,327.60 |
| Other comprehensive income | 69,564,124.34 | 69,442,469.53 |
| Special reserves | 49,147,155.48 | 27,988,260.61 |
| Surplus reserves | 2,982,292,413.67 | 2,982,292,413.67 |
| Retained earnings | 39,979,444,469.37 | 35,900,674,525.13 |
| Equity attributable to owners | 60,688,859,608.34 | 55,732,932,103.72 |
| Minority interests | 125,577,843.83 | 133,307,840.48 |
| Total Owners’ equity (or Shareholders’ equity) | 60,814,437,452.17 | 55,866,239,944.20 |
| Liabilities and owners' equity (or shareholders' equity) in total | 138,812,360,580.91 | 135,404,623,479.63 |
Legal person: Zhu Huarong Chief financial officer: Zhang Deyong The head of accounting department: Chen Jianfeng
2. Balance sheet
In RMB Yuan
| Account | 2022.6.30 | 2022.1.1 |
| Current assets: | ||
| Cash | 44,526,884,736.20 | 41,917,770,676.45 |
| Trading financial assets | 305,967,574.57 | 195,798,300.00 |
| Notes receivable | 19,281,640,756.74 | 21,500,746,660.99 |
| Accounts receivable | 7,313,681,453.36 | 7,931,510,606.59 |
| Prepayments | 3,354,924,945.47 | 2,935,068,191.78 |
| Other receivables | 395,603,079.15 | 1,756,623,581.93 |
| Including: dividends receivable | 255,356,145.11 | - |
| Inventories | 3,808,502,003.65 | 4,137,987,048.19 |
| Contract assets | 549,523,080.93 | 635,112,994.60 |
| Other current assets | 140,555,294.49 | 21,082,615.46 |
| Total current assets | 79,677,282,924.56 | 81,031,700,675.99 |
| Non-current assets: | ||
| Long-term equity investments | 19,822,504,132.39 | 17,660,819,978.70 |
| Investment in other equity instruments | 691,156,200.00 | 691,156,200.00 |
| Fixed assets | 15,162,124,350.57 | 16,001,089,813.79 |
| Construction in progress | 654,797,708.06 | 475,209,255.90 |
| Right-of-use asset | 43,061,415.97 | 53,789,648.12 |
| Intangible assets | 3,123,873,620.38 | 3,205,472,940.52 |
| Development expenditure | 567,105,376.03 | 422,291,074.50 |
| Long-term deferred expenses | 19,041,553.35 | 12,065,475.24 |
| Deferred tax assets | 2,033,945,656.36 | 1,893,957,371.71 |
| Total non-current assets | 42,117,610,013.11 | 40,415,851,758.48 |
| TOTAL ASSETS | 121,794,892,937.67 | 121,447,552,434.47 |
| Current liabilities: | ||
| Notes payable | 22,566,103,314.88 | 19,118,739,562.85 |
| Accounts payable | 17,431,485,816.58 | 20,181,845,700.58 |
| Contract liability | 3,846,513,444.50 | 8,446,500,016.04 |
| Payroll payable | 2,939,028,593.14 | 2,074,732,440.77 |
| Taxes payable | 551,456,570.67 | 784,928,251.22 |
| Other payables | 4,564,570,374.41 | 4,330,506,737.23 |
| Non-current liabilities within one year | 674,264,461.90 | 374,210,756.73 |
| Other current liabilities | 4,885,358,872.53 | 4,955,516,106.11 |
| Total current liabilities | 57,458,781,448.61 | 60,266,979,571.53 |
| Non-current liabilities: | ||
| Long-term loans | 40,000,000.00 | 600,000,000.00 |
| Lease liability | 20,496,001.72 | 30,751,928.99 |
| Long-term payables | 156,022,915.60 | 120,409,242.99 |
| Long-term payroll payable | 19,776,760.32 | 21,995,000.00 |
| Estimated liabilities | 3,536,358,417.91 | 3,050,701,028.41 |
| Deferred Revenue | 150,000,000.00 | 150,000,000.00 |
| Deferred tax liabilities | 182,484,595.31 | 178,583,323.79 |
| Other non current liabilities | 772,610,007.20 | 715,087,257.75 |
| Total non-current liabilities | 4,877,748,698.06 | 4,867,527,781.93 |
| Total liabilities | 62,336,530,146.67 | 65,134,507,353.46 |
| Owners’ equity (or Shareholders’ equity): | ||
| Share capital | 9,921,799,422.00 | 7,632,153,402.00 |
| Capital reserves | 7,859,296,325.61 | 9,293,065,334.91 |
| Less: treasury shares | 655,812,327.60 | 655,812,327.60 |
| Other comprehensive income | 166,197,564.29 | 166,051,336.11 |
| Special reserves | 16,551,301.25 | 7,552,984.45 |
| Surplus reserves | 2,982,292,413.67 | 2,982,292,413.67 |
| Retained earnings | 39,168,038,091.78 | 36,887,741,937.47 |
| Total Owners’ equity (or Shareholders’ equity) | 59,458,362,791.00 | 56,313,045,081.01 |
| Liabilities and owners' equity (or shareholders' equity) in total | 121,794,892,937.67 | 121,447,552,434.47 |
3. Consolidated Income Statement
In RMB Yuan
| Account | Current Period | Prior Period |
| 1.Operating revenue | 56,573,568,393.71 | 56,784,631,899.07 |
| Less: Operating cost | 45,360,090,482.20 | 48,086,677,229.21 |
| Tax and surcharges | 1,946,300,231.77 | 2,087,694,667.07 |
| Operating expenses | 2,285,329,821.77 | 2,146,115,312.19 |
| General and administrative expenses | 2,184,034,305.10 | 2,217,147,044.50 |
| Research and development expenses | 1,932,294,144.67 | 1,495,583,362.16 |
| Financial expenses | (437,998,348.99) | (233,776,490.65) |
| Interest expense | 17,892,411.14 | 26,372,186.29 |
| Interest income | 438,428,075.90 | 281,294,223.92 |
| Add: Other income | 186,910,289.65 | 106,783,041.12 |
| Investment income | 2,354,040,073.27 | 327,872,465.08 |
| Including: Investment income from associates and joint venture | 78,821,605.75 | 250,708,951.37 |
| Gains from changes in fair value | 26,136,888.77 | 15,734,698.73 |
| Credit impairment loss | (10,774,686.62) | (3,486,242.35) |
| Asset impairment loss | (241,827,585.46) | (195,687,107.11) |
| Gain on disposal of assets | 68,244,082.28 | 601,066,861.33 |
| 2.Operating profit | 5,686,246,819.08 | 1,837,474,491.39 |
| Add: Non-operating income | 54,366,637.51 | 40,983,845.94 |
| Less: Non-operating expenses | 4,870,215.23 | 14,103,602.29 |
| 3.Total profit | 5,735,743,241.36 | 1,864,354,735.04 |
| Less: Income tax expense | (103,280,125.74) | 59,373,446.09 |
| 4.Net profit | 5,839,023,367.10 | 1,804,981,288.95 |
| Classification by going concern | ||
| Net profit from continuing operations | 5,839,023,367.10 | 1,804,981,288.95 |
| Net profit from discontinued operations | ||
| Classification by ownership attribution | ||
| Net profit attributable to owners | 5,857,626,135.78 | 1,729,245,208.60 |
| Minority interests | (18,602,768.68) | 75,736,080.35 |
| 5.Other comprehensive income, net of tax | 121,654.81 | 21,820,284.63 |
| Net after-tax net of other comprehensive income attributable to the parent company owner | 121,654.81 | 21,820,284.63 |
| Other comprehensive income that will be reclassified into profit or loss | 121,654.81 | 21,820,284.63 |
| Other comprehensive income that can be transferred to profit or loss under the equity method | 146,228.18 | |
| Foreign currency financial statement translation difference | (24,573.37) | 21,820,284.63 |
| 6.Total comprehensive income | 5,839,145,021.91 | 1,826,801,573.58 |
| Total comprehensive income attributable to owners | 5,857,747,790.59 | 1,751,065,493.23 |
| Total comprehensive income attributable to minority interest | (18,602,768.68) | 75,736,080.35 |
| 7.Earnings per share | ||
| Basic earnings per share | 0.60 | 0.17 |
| Diluted earnings per share | 0.59 | 0.17 |
Legal person: Zhu Huarong Chief financial officer: Zhang Deyong The head of accounting department: Chen Jianfeng
4. Income Statement
In RMB Yuan
| Account | Current Period | Prior Period |
| 1.Operating revenue | 50,290,300,571.12 | 52,828,405,180.72 |
| Less: Operating cost | 40,914,984,492.63 | 45,513,544,394.59 |
| Tax and surcharges | 1,434,768,916.69 | 1,525,114,802.32 |
| Operating expenses | 1,475,590,737.64 | 1,736,500,574.77 |
| General and administrative expenses | 1,915,207,107.81 | 1,878,247,754.81 |
| Research and development expenses | 1,851,660,640.99 | 1,298,099,887.53 |
| Financial expenses | (342,363,432.16) | (204,613,231.91) |
| Interest expense | 13,595,854.23 | 21,764,130.34 |
| Interest income | 365,385,141.66 | 236,842,142.30 |
| Add: Other income | 54,300,000.00 | |
| Investment income | 986,054,122.33 | 428,119,303.94 |
| Including: Investment income from associates and joint venture | (92,372,274.55) | 349,815,853.13 |
| Gains from changes in fair value | 26,136,888.77 | (17,151,300.00) |
| Credit impairment loss | (286,476.97) | (2,086,388.91) |
| Asset impairment loss | (128,723,015.24) | (213,509,747.87) |
| Gain on disposal of assets | 42,691,501.37 | 4,920,912.69 |
| 2.Operating profit | 4,020,625,127.78 | 1,281,803,778.46 |
| Add: Non-operating income | 25,372,227.33 | 11,549,617.96 |
| Less: Non-operating expenses | 2,696,319.99 | 10,500,438.13 |
| 3.Total profit | 4,043,301,035.12 | 1,282,852,958.29 |
| Less: Income tax expense | (136,087,013.13) | (103,215,762.03) |
| 4.Net profit | 4,179,388,048.25 | 1,386,068,720.32 |
| Net profit from continuing operations | 4,179,388,048.25 | 1,386,068,720.32 |
| Net profit from discontinued operations | ||
| 5.Other comprehensive income, net of tax | 146,228.18 | |
| Other comprehensive income to be reclassified into profit or loss | 146,228.18 | |
| Other comprehensive income that can be transferred to profit or loss under the equity method | 146,228.18 | |
| 6.Total comprehensive income | 4,179,534,276.43 | 1,386,068,720.32 |
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 | 61,813,960,686.95 | 63,916,698,589.71 |
| Refunds of taxes | 896,338,589.28 | 479,978,596.74 |
| Cash received relating to other operating activities | 1,401,417,655.54 | 1,798,083,078.94 |
| Subtotal of cash inflows | 64,111,716,931.77 | 66,194,760,265.39 |
| Cash paid for goods and services | 46,918,151,331.30 | 37,506,989,506.50 |
| Cash paid to and on behalf of employees | 3,773,793,442.65 | 3,273,064,979.18 |
| Cash paid for all types of taxes | 4,028,962,242.26 | 4,360,350,113.07 |
| Cash paid relating to other operating activities | 3,538,573,495.36 | 3,355,528,796.27 |
| Subtotal of cash outflows | 58,259,480,511.57 | 48,495,933,395.02 |
| Net cash flows from operating activities | 5,852,236,420.20 | 17,698,826,870.37 |
| 2.Cashflows from investing activities: | ||
| Cash received from investment recovery | 14,839,200.00 | |
| Cash received from investment income | 381,628,412.00 | 10,806,875.00 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 280,603,391.85 | 47,111,653.89 |
| Cash received relating to other investing activities | - | 300,000,000.00 |
| Subtotal of cash inflows | 677,071,003.85 | 357,918,528.89 |
| Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | 783,516,340.12 | 1,022,801,871.76 |
| Cash paid for acquisition of investments | 1,461,640,640.00 | 1,000,000.00 |
| Cash paid relating to other investing activities | 815,126,333.76 | |
| Subtotal of cash outflows | 3,060,283,313.88 | 1,023,801,871.76 |
| Net cash flows from investing activities | (2,383,212,310.03) | (665,883,342.87) |
| 3.Cash flows from financing activities: | ||
| Absorb cash received from investment | 507,461,364.00 | |
| Cash received from borrowing | 68,070,000.00 | 20,000,000.00 |
| Cash received relating to other financing activities | 715,239,432.26 | 312,220,372.75 |
| Subtotal of cash inflows | 783,309,432.26 | 839,681,736.75 |
| Cash repayments of borrowings | 300,903,500.00 | 146,000,000.00 |
| Cash paid for distribution of dividends or profits and interest expenses | 1,797,127,172.44 | 1,690,977,626.11 |
| Cash paid relating to other financing activities | 699,230,692.02 | 418,592,802.69 |
| Subtotal of cash outflows | 2,797,261,364.46 | 2,255,570,428.80 |
| Net cash flows from financing activities | (2,013,951,932.20) | (1,415,888,692.05) |
| 4.Effect of changes in exchange rate on cash | 59,278,475.19 | (3,619,293.07) |
| 5.Net increase in cash and cash equivalents | 1,514,350,653.16 | 15,613,435,542.38 |
| Add: Opening balance of cash and cash equivalents | 49,517,916,834.99 | 30,655,968,057.63 |
| 6.Closing balance of cash and cash equivalents | 51,032,267,488.15 | 46,269,403,600.01 |
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 | 51,488,841,934.67 | 55,145,607,987.10 |
| Cash received relating to other operating activities | 46,609,602.87 | - |
| Cash received relating to other operating activities | 676,108,022.43 | 1,092,865,948.69 |
| Subtotal of cash inflows | 52,211,559,559.97 | 56,238,473,935.79 |
| Cash paid for goods and services | 38,192,576,888.27 | 31,953,727,307.50 |
| Cash paid to and on behalf of employees | 2,615,212,696.17 | 2,404,181,310.34 |
| Cash paid for all types of taxes | 2,892,112,750.99 | 3,332,896,561.58 |
| Cash paid relating to other operating activities | 2,383,343,811.11 | 2,779,051,429.05 |
| Subtotal of cash outflows | 46,083,246,146.54 | 40,469,856,608.47 |
| Net cash flows from operating activities | 6,128,313,413.43 | 15,768,617,327.32 |
| 2.Cashflows from investing activities: | ||
| Cash received from investment recovery | 14,839,200.00 | - |
| Cash received from return on investments | 381,628,412.00 | 12,015,208.33 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 255,368,088.61 | 7,594,323.89 |
| Other cash received relating to investing activities | - | 500,000,000.00 |
| Subtotal of cash inflows | 651,835,700.61 | 519,609,532.22 |
| Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | 633,161,880.29 | 883,493,763.31 |
| Cash paid for acquisition of investments | 1,461,640,640.00 | 1,000,000.00 |
| Subtotal of cash outflows | 2,094,802,520.29 | 884,493,763.31 |
| Net cash flows from investing activities | (1,442,966,819.68) | (364,884,231.09) |
| 3.Cash flows from financing activities: | ||
| Absorb cash received from investment | - | 507,461,364.00 |
| Cash received from borrowings | 40,000,000.00 | - |
| Subtotal of cash inflows | 40,000,000.00 | 507,461,364.00 |
| Cash paid for debt repayment | 300,000,000.00 | 100,000,000.00 |
| Cash paid for distribution of dividends or profits and interest expenses | 1,795,680,672.36 | 1,689,755,862.22 |
| Cash paid relating to other financing activities | 12,551,861.64 | 31,241,289.74 |
| Subtotal of cash outflows | 2,108,232,534.00 | 1,820,997,151.96 |
| Net cash flows from financing activities | (2,068,232,534.00) | (1,313,535,787.96) |
| 4.Effect of changes in exchange rate on cash | ||
| 5.Net increase in cash and cash equivalents | 2,617,114,059.75 | 14,090,197,308.27 |
| Add: Opening balance of cash and cash equivalents | 41,889,838,553.29 | 25,190,870,784.06 |
| 6.Closing balance of cash and cash equivalents | 44,506,952,613.04 | 39,281,068,092.33 |
7. Consolidated statement of changes in shareholders’ equity
Current Period
In RMB Yuan
| Items | Current period | ||||||||
| Equity attributable to owners | Minority interest | Total equity | |||||||
| Share capital | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Retained earnings | |||
| I. At end of last year | 7,632,153,402.00 | 9,776,193,360.38 | 655,812,327.60 | 69,442,469.53 | 27,988,260.61 | 2,982,292,413.67 | 35,900,674,525.13 | 133,307,840.48 | 55,866,239,944.20 |
| II. At beginning of year | 7,632,153,402.00 | 9,776,193,360.38 | 655,812,327.60 | 69,442,469.53 | 27,988,260.61 | 2,982,292,413.67 | 35,900,674,525.13 | 133,307,840.48 | 55,866,239,944.20 |
| III. Changes during the year | 2,289,646,020.00 | (1,433,769,009.30) | 121,654.81 | 21,158,894.87 | 4,078,769,944.24 | (7,729,996.65) | 4,948,197,507.97 | ||
| 1.Total comprehensive income | 121,654.81 | 5,857,626,135.78 | (18,602,768.68) | 5,839,145,021.91 | |||||
| 2. Capital contributed by owners and capital decreases | 855,877,010.70 | 855,877,010.70 | |||||||
| (1) The amount of share-based payment included in owner's equity | 192,310,900.00 | 192,310,900.00 | |||||||
| (2) Others | 663,566,110.70 | 663,566,110.70 | |||||||
| 3. Distribution of profit | (1,778,856,191.54) | (1,778,856,191.54) | |||||||
| Distribution to owners | (1,778,856,191.54) | (1,778,856,191.54) | |||||||
| 4.Internal carry forward of owner's equity | 2,289,646,020.00 | (2,289,646,020.00) | |||||||
| Capital reserve converted into capital (or share capital) | 2,289,646,020.00 | (2,289,646,020.00) | |||||||
| 5. Special reserves | 21,158,894.87 | 21,158,894.87 | |||||||
| (1) Pick-up in current period | 46,183,489.83 | 46,183,489.83 | |||||||
| (2) Used in current period | (25,024,594.96) | (25,024,594.96) | |||||||
| 6.Others | 10,872,772.03 | 10,872,772.03 | |||||||
| IV. At end of current period | 9,921,799,422.00 | 8,342,424,351.08 | 655,812,327.60 | 69,564,124.34 | 49,147,155.48 | 2,982,292,413.67 | 39,979,444,469.37 | 125,577,843.83 | 60,814,437,452.17 |
Prior period
In RMB Yuan
| Items | Prior period | ||||||||
| Equity attributable to owners | Minority interest | Total equity | |||||||
| Share capital | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Retained earnings | |||
| I. At end of last year | 5,363,396,174.00 | 10,930,781,918.64 | 78,420,720.78 | 40,847,443.41 | 2,681,698,087.00 | 34,315,048,892.26 | 70,114,229.66 | 53,480,307,465.75 | |
| II. At beginning of year | 5,363,396,174.00 | 10,930,781,918.64 | 78,420,720.78 | 40,847,443.41 | 2,681,698,087.00 | 34,315,048,892.26 | 70,114,229.66 | 53,480,307,465.75 | |
| III. Changes during the year | 76,195,400.00 | 538,440,967.78 | 21,820,284.63 | 36,025,649.05 | 63,001,848.06 | 75,736,080.35 | 811,220,229.87 | ||
| 1.Total comprehensive income | 21,820,284.63 | 1,729,245,208.60 | 75,736,080.35 | 1,826,801,573.58 | |||||
| 2. Capital contributed by owners and capital decreases | 76,195,400.00 | 538,440,967.78 | 614,636,367.78 | ||||||
| The amount of share-based payment included in owner's equity | 76,195,400.00 | 538,440,967.78 | 614,636,367.78 | ||||||
| 3. Distribution of profit | (1,666,243,360.54) | (1,666,243,360.54) | |||||||
| Distribution to owners | (1,666,243,360.54) | (1,666,243,360.54) | |||||||
| 4. Special reserves | 36,025,649.05 | 36,025,649.05 | |||||||
| (1) Pick-up in current period | 61,973,559.99 | 61,973,559.99 | |||||||
| (2) Used in current period | (25,947,910.94) | (25,947,910.94) | |||||||
| IV. At end of current period | 5,439,591,574.00 | 11,469,222,886.42 | 100,241,005.41 | 76,873,092.46 | 2,681,698,087.00 | 34,378,050,740.32 | 145,850,310.01 | 54,291,527,695.62 | |
8. Statement of changes in shareholders’ equity
Current Period
In RMB Yuan
| Items | Current period | |||||||
| Share capital | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Retained earnings | Total equity | |
| I. At end of last year | 7,632,153,402.00 | 9,293,065,334.91 | 655,812,327.60 | 166,051,336.11 | 7,552,984.45 | 2,982,292,413.67 | 36,887,741,937.47 | 56,313,045,081.01 |
| II. At beginning of year | 7,632,153,402.00 | 9,293,065,334.91 | 655,812,327.60 | 166,051,336.11 | 7,552,984.45 | 2,982,292,413.67 | 36,887,741,937.47 | 56,313,045,081.01 |
| III. Changes during the year | 2,289,646,020.00 | (1,433,769,009.30) | 146,228.18 | 8,998,316.80 | 2,280,296,154.31 | 3,145,317,709.99 | ||
| 1.Total comprehensive income | 146,228.18 | 4,179,388,048.25 | 4,179,534,276.43 | |||||
| 2. Capital contributed by owners and capital decreases | 855,877,010.70 | 855,877,010.70 | ||||||
| (1) The amount of share-based payment included in owner's equity | 192,310,900.00 | 192,310,900.00 | ||||||
| (2) Others | 663,566,110.70 | 663,566,110.70 | ||||||
| 3. Distribution of profit | (1,778,856,191.54) | (1,778,856,191.54) | ||||||
| Distribution to owners | (1,778,856,191.54) | (1,778,856,191.54) | ||||||
| 4.Internal carry forward of owner's equity | 2,289,646,020.00 | (2,289,646,020.00) | ||||||
| Capital reserve converted into capital (or share capital) | 2,289,646,020.00 | (2,289,646,020.00) | ||||||
| 5. Special reserves | 8,998,316.80 | 8,998,316.80 | ||||||
| (1) Pick-up in current period | 30,492,980.10 | 30,492,980.10 | ||||||
| (2) Used in current period | (21,494,663.30) | (21,494,663.30) | ||||||
| 6.Disposal of subsidiaries | (120,235,702.40) | (120,235,702.40) | ||||||
| IV. At end of current period | 9,921,799,422.00 | 7,859,296,325.61 | 655,812,327.60 | 166,197,564.29 | 16,551,301.25 | 2,982,292,413.67 | 39,168,038,091.78 | 59,458,362,791.00 |
Prior period
In RMB Yuan
| Items | Prior period | |||||||
| Share capital | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Retained earnings | Total equity | |
| I. At end of last year | 5,363,396,174.00 | 10,440,896,902.52 | 159,954,052.00 | 7,505,438.57 | 2,681,698,087.00 | 35,848,636,357.95 | 54,502,087,012.04 | |
| II. At beginning of year | 5,363,396,174.00 | 10,440,896,902.52 | 159,954,052.00 | 7,505,438.57 | 2,681,698,087.00 | 35,848,636,357.95 | 54,502,087,012.04 | |
| III. Changes during the year | 76,195,400.00 | 538,440,967.78 | 8,974,402.20 | (280,174,640.22) | 343,436,129.76 | |||
| 1.Total comprehensive income | 1,386,068,720.32 | 1,386,068,720.32 | ||||||
| 2. Capital contributed by owners and capital decreases | 76,195,400.00 | 538,440,967.78 | 614,636,367.78 | |||||
| The amount of share-based payment included in owner's equity | 76,195,400.00 | 538,440,967.78 | 614,636,367.78 | |||||
| 3. Distribution of profit | (1,666,243,360.54) | (1,666,243,360.54) | ||||||
| Distribution to owners | (1,666,243,360.54) | (1,666,243,360.54) | ||||||
| 4. Special reserves | 8,974,402.20 | 8,974,402.20 | ||||||
| (1) Pick-up in current period | 26,035,435.80 | 26,035,435.80 | ||||||
| (2) Used in current period | (17,061,033.60) | (17,061,033.60) | ||||||
| IV. At end of current period | 5,439,591,574.00 | 10,979,337,870.30 | 159,954,052.00 | 16,479,840.77 | 2,681,698,087.00 | 35,568,461,717.73 | 54,845,523,141.80 | |
III. CORPORATE INFORMATIONChongqing Changan Automobile Company Limited (hereafter referred to as “the Company”) is a company limited by shares registeredin Chongqing, People’s Republic of China. It was established on 31 October 1996 with an indefinite business period. The ordinary Ashares of Renminbi issued by the company and the B shares of domestically listed foreign shares have been listed on the ShenzhenStock Exchange. The company is headquartered at 260 Jianxin East Road, Jiangbei District, Chongqing, China, and its office addressis T2 Building, No. 2, Financial City, No. 61 Dongshengmen Road, Jiangbei District, Chongqing, China.
After the establishment of the company, the share capital and shareholding structure have undergone several changes. As of June 30,2022, the company’s controlling shareholder China Changan Automobile Group Company Limited (hereinafter referred to as “ChinaChangan”) and its wholly-owned subsidiary United Prosperity Investment Co., Ltd. held a total of ordinary shares of the company2,063,588,975 shares with an equity ratio of 20.80%. China South Industries Group Co., Ltd. (hereinafter referred to as “China SouthGroup”), the parent company of China Changan, and its wholly-owned subsidiary, South Industries International Holdings (Hong Kong)Company Limited, hold 1,921,622,884 ordinary shares of the company, with a 19.37% shareholding ratio. China Changan and ChinaSouth Group holds ordinary shares 3,985,211,859 in total with a shareholding ratio of 40.17%.
The Company and its subsidiaries collectively refer to as the Group, and its main business activities are: the manufacturing and salesof 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 thisyear, please refer to Note VIII.
IV. BASIS OF PREPERATIONThe financial statements have been prepared in accordance with Accounting Standards for Business Enterprises-Basic Standard andthe specific standards issued and modified subsequently, and the implementation guidance, interpretations and other relevant provisionsissued subsequently by the MOF (correctly referred to as “Accounting Standards for Business Enterprises”).
The financial statements are presented on a going concern basis.
The financial statements have been prepared under the historical cost convention, except for certain financial instruments. If the assetsare impaired, the corresponding provisions should be made accordingly.V. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
According to the actual production and operation characteristics, the group formulated the specific accounting policies and accountingestimates, mainly reflected in provision of accounts receivables, inventory valuation, depreciation of fixed assets, intangible assetsamortization, condition of capitalization of research and development expense and revenue recognition and measurement.
1. Statement of compliance with Accounting Standards for Business Enterprises
The financial statements present fairly and fully, the financial position of the company on 30 June 2022 and the financial results andthe cash flows in the half year of 2022 then ended in accordance with Accounting Standards for Business Enterprises.
2. Accounting year
The accounting year of the Group is from 1 January to 31 December of each calendar year.
3. Functional currency
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
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 controlA business combination involving entities under common control is a business combination in which all of the combining entities areultimately controlled by the same party or parties both before and after the combination, and that control is not transitory. For a businesscombination involving entities under common control, the party which, on the combination date, obtains control of another entityparticipating 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 shallbe measured at their carrying amounts at the combination date as recorded by the party being acquired. The difference between thecarrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination (or the aggregate facevalue 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 controlA business combination involving entities not under common control is a business combination in which all of the combining entitiesare not ultimately controlled by the same party or parties both before and after the combination. For a business combination involvingentities not under common control, the party that, on the acquisition date, obtains control of another entity participating in thecombination 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 recognized and measured at cost, being the excess of the aggregate of the fair value of the consideration transferred(or the fair value of the equity securities issued) and any fair value of the Group’s previously held equity interest in the acquiree overthe Group’s interest in the fair value of the acquiree’s net identifiable assets. After initial recognition, goodwill is measured at costless any accumulated impairment losses. Where the aggregate of the fair value of the consideration transferred (or the fair value ofthe equity securities issued) and any fair value of the Group’s previously held equity interest in the acquiree is lower than the Group’sinterest in the fair value of the acquiree’s net identifiable assets, the Group reassesses the measurement of the fair value of the acquiree’sidentifiable assets, liabilities and contingent liabilities and the fair value of the consideration transferred (or the fair value of the equitysecurities issued), together with the fair value of the Group’s previously held equity interest in the acquiree. If after that reassessment,the aggregate of the fair value of the consideration transferred (or the fair value of the equity securities issued) and the Group’spreviously held equity interest in the acquiree is still lower than the Group’s interest in the fair value of the acquiree’s net identifiableassets, the Group recognize the remaining difference in profit or loss.
5. Consolidated financial statements
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 samereporting period as the Company, using consistent accounting policies. All intra-group assets and liabilities, equity, income, expensesand 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, theexceeded 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 resultsand 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’sfinancial statements, on the basis of the fair values of the identifiable assets, liabilities and contingent liabilities recognized on theacquisition date.
With respect to subsidiaries acquired through business combinations involving entities under common control, the operating resultsand cash flows of the acquiree should be included in the consolidated financial statements from the beginning of the period in whichthe combination occurs.
If the changes of relevant facts and circumstances will result in the changes of one or more control elements, then the Group shouldreassess whether it has taken control of the investee.
6. Joint venture arrangement classification and joint operation
Joint venture arrangements are classified into joint operation and joint venture. Joint operation refers to those joint venture arrangements,relevant assets and liabilities of which are enjoyed and assumed by the joint ventures. Joint ventures refer to those joint venturearrangements, only the right to net assets of which is enjoyed by the joint ventures.
Any joint venture shall recognize the following items related to its share of benefits in the joint operation and conduct accountingtreatment in accordance with relevant accounting standards for business enterprises: assets it solely holds and its share of jointly-heldassets based on its percentage; liabilities it solely assumes and its share of jointly-assumed liabilities based on its percentage; incomesfrom 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
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.
8. Foreign currency translation
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 currencyamount at the spot exchange rate on the transaction dates. Foreign currency monetary items are translated using the spot exchange ratequoted by the People’s Bank of China at the balance sheet date. The exchange gains or losses arising from occurrence of transactionsand exchange of currencies, except for those relating to foreign currency borrowings specifically for construction and acquisition offixed assets capitalized, are dealt with in the profit and loss accounts. Non-monetary foreign currency items measured at historical costremain to be translated at the spot exchange rate prevailing on the transaction date, and the amount denominated in the functionalcurrency should not be changed. Non-monetary foreign currency items measured at fair value should be translated at the spot exchangerate prevailing on the date when the fair values are determined. The exchange difference thus resulted should be charged to the currentincome or other comprehensive income account of the current period.
When preparing consolidated financial statements, the financial statements of the subsidiaries presented in foreign currencies aretranslated into Renminbi as follows: asset and liability accounts are translated into Renminbi at exchange rates ruling at the balancesheet date; shareholders’ equity accounts other than retained profits are translated into Renminbi at the applicable exchange rates rulingat the transaction dates; income and expense in income statement are translated into Renminbi average exchange rate of the period inwhich the transaction occurred (unless the exchange rate fluctuation makes it inappropriate to adopt this exchange rate for conversion,the spot exchange rate on the date of cash flow shall be adopted for conversion); total difference between translated assets and translatedliabilities and shareholders’ equity is separately listed as “foreign currency exchange differences” below retained profits. The translationdifference arising from the settlement of oversea subsidiaries is charged to the current liquidation profit and loss in proportion to thesettlement ratio of the assets concerned.
Foreign currency cash flows and the cash flows of foreign subsidiaries should be translated using the average exchange rate prevailingon the transaction month during which the cash flows occur (unless the exchange rate fluctuation makes it inappropriate to adopt thisexchange rate for conversion, the spot exchange rate on the date of cash flow shall be adopted for conversion). The amount of the effecton 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
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument ofanother entity.
Recognition and derecognition
The Group recognizes a financial asset or a financial liability, when the Group becomes a party to the contractual provision of theinstrument.
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized(i.e., removed from the Group’s consolidated balance sheet) when:
1) the rights to receive cash flows from the financial asset have expired;
2) the Group has transferred its rights to receive cash flows from the financial asset, or has assumed an obligation to pay the receivedcash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) has transferred substantiallyall the risks and rewards of the financial asset, or (b) has neither transferred nor retained substantially all the risks and rewards of theasset, but has transferred control of the financial asset.
A financial liability is derecognized when the obligation under the liability is discharged or cancelled, or expires. When an existingfinancial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability aresubstantially modified, such an exchange or modification is treated as a derecognition of the original liability and a recognition of anew liability, and the difference between the respective carrying amounts is recognized in profit or loss.
Regular way purchases and sales of financial assets are recognized and derecognized using trade date accounting. Regular waypurchases or sales are purchases or sales of financial assets that require delivery within the period generally established by regulationor convention in the marketplace. The trade date is the date that the Group committed to purchase or sell a financial asset.
Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and theGroup’s business model for managing them: financial assets at fair value through profit or loss, financial assets at amortized cost andfinancial assets at fair value through other comprehensive income. All affected related financial assets will be reclassified only if theGroup changes its business model for managing financial assets.
Financial assets are measured at fair value on initial recognition, but accounts receivable or notes receivable arising from the sale ofgoods or rendering of services that do not contain significant financing components or for which the Group has applied the practicalexpedient of not adjusting the effect of a significant financing component due within one year, are initially measured at the transactionprice.
For financial assets at fair value through profit or loss, relevant transaction costs are directly recognized in profit or loss, and transactioncosts relating to other financial
The subsequent measurement of financial assets depends on their classification as follows:
Debt investments measured at amortized costThe Group measures financial assets at amortized cost if both of the following conditions are met: the financial asset is held within abusiness model with the objective to hold financial assets in order to collect contractual cash flows; the contractual terms of the financialasset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.Financial assets at amortized cost are subsequently measured using the effective interest method. Gains and losses are recognized inprofit or loss when the asset is derecognized, modified or impaired.
Debt investments at fair value through other comprehensive incomeThe Group measures debt investments at fair value through other comprehensive income if both of the following conditions are met:
the financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling; thecontractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest onthe principal amount outstanding. Interest income is recognized using the effective interest method. The interest income, impairmentlosses and foreign exchange revaluation are recognized in profit or loss. The remaining fair value changes are recognized in othercomprehensive income. Upon derecognition, the cumulative fair value change recognized in other comprehensive income is recycledto profit or loss.
Equity investments at fair value through other comprehensive incomeThe Group can elect to classify irrevocably its equity investments which are not held for trading as equity investments designated atfair value through other comprehensive income. Only the relevant dividend income (excluding the dividend income explicitly recoveredas part of the investment cost) is recognized in profit or loss. Subsequent changes in the fair value are included in other comprehensiveincome,and no provision for impairment is made. When the financial asset is derecognized, the accumulated gains or losses previously includedin other comprehensive income are transferred from other comprehensive income to retained earnings.
Financial assets at fair value through profit or lossThe financial assets other than the above financial assets measured at amortized cost and financial assets at fair value through othercomprehensive income are classified as financial assets at fair value through profit or loss. Such financial assets are subsequentlymeasured at fair value with net changes in fair value recognized in profit or loss.
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, other financialliabilities. For financial liabilities at fair value through profit or loss, relevant transaction costs are directly recognized in profit or loss,and transaction costs relating to other financial assets are included in the initial recognition amounts.
The subsequent measurement of financial liabilities depends on their classification as follows:
Financial liabilities at fair value through profit or lossFinancial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designatedupon initial recognition as at fair value through profit or loss. Financial liabilities held for trading are subsequently measured at fairvalue with net changes in fair value recognized in profit or loss. Gains or losses on liabilities designated at fair value through profit orloss are recognized in profit or loss, except for the gains or losses arising from the Group’s own credit risk which are presented in othercomprehensive income with no subsequent reclassification to profit or loss.
Other financial liabilitiesOther financial liabilities are subsequently measured at amortized cost using the effective interest method.
Impairment of financial assets
On the basis of expected credit loss, the Group carries out impairment treatment on financial assets, measured at amortized cost andcontract assets and recognizes loss reserves
For receivables and contract assets that do not contain significant financing components, the Group uses a simplified measurementmethod to measure the loss provision based on the expected credit loss amount for the entire duration.
For financial assets other than the simplified measurement method mentioned above, the Group assesses on each balance sheet datewhether its credit risk has not increased significantly since initial recognition, it is in the first stage. The Group measures the lossprovision based on the amount equivalent to the expected credit loss in the next 12 months, and calculates the interest income basedon the book balance and the actual interest rate; if the credit risk has increased significantly since initial recognition but has not yetsuffered credit impairment, it is in the second at this stage, the Group measures the loss provision based on the amount equivalent tothe expected credit loss for the entire duration, and calculates the interest income based on the book balance and the actual interest rate;If credit impairment occurs after initial recognition, it is in the third stage. The amount of expected credit losses is measured over theentire duration of the loss allowance, and interest income is calculated based on amortized cost and effective interest rate. For financialinstruments with low credit risk on the balance sheet date, the Group assumes that their credit risk has not increased significantly sinceinitial recognition.
The Group assesses the expected credit losses of financial instruments based on individual items and portfolios. The Group hasconsidered the credit risk characteristics of different customers and evaluated the expected credit losses of accounts receivable andother receivables based on the ageing combination.
Please refer to Note VII,3 for the disclosure of the Group’s judgment criteria for significant increase in credit risk, the definition ofcredit impairment assets that have occurred, and assumptions about the expected credit loss measurement.
When the Group no longer reasonably expects to be able to fully or partially recover the contractual cash flows of financial assets, theGroup 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 enforceablelegal right to offset the recognized amounts; and there is an intention to settle on a net basis, or to realize the assets and settle theliabilities 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 financialasset; and if the Group retains substantially all the risks and rewards of the financial asset, the Group does not derecognize the financialasset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset, the Group determineswhether it has retained control of the financial asset. In this case: (i) if the Group has not retained control, it derecognizes the financialasset 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 assetand recognizes an associated liability.
10. Inventories
Inventory includes raw materials, goods in transit, work in progress, finished goods, consigned processing materials, low-valueconsumables.
Inventory is initially carried at the actual cost. Inventory costs comprise all costs of purchase, costs of conversion and other costsincurred in bringing the inventory to its present location and condition. Weighted average method is assigned to the determination ofactual costs of inventories. One-off writing off method is adopted in amortization of low-value consumables.
The Group applies a perpetual counting method of inventory.
At the balance sheet date, the inventory is stated at the lower of cost and net realizable value. If the cost is higher than the net realizablevalue, provision for the inventory should be made through profit or loss. If factors that resulted in the provision for the inventory havedisappeared and made the net realizable value higher than their book value, the amount of the write-down should be reversed, to theextent of the amount of the provision for the inventory, and the reversed amount should be recognized in the income statement for thecurrent period.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and theestimated costs necessary to make the sale. The impairment provision should be made on a basis of each item of inventories accordingto the difference between cost and net realizable value. For large numbers of inventories at relatively low unit prices, the provision forloss on decline in value of inventories should be made by category.
11. Long-term equity investments
Long-term equity investments include investments in subsidiaries, joint ventures and associates.
Long-term equity investments are recognized at initial investment cost upon acquisition. For a long-term equity investment acquiredthrough a business combination under common control, the initial investment cost of the long-term equity investment shall be theabsorbing party’s share of the carrying amount of the owners’ equity of the party being absorbed in the consolidated financial statementsof the ultimate controlling party at combination date. The difference between the initial investment cost and the carrying amount ofcash paid, non-cash assets transferred and liabilities assumed shall be adjusted to capital reserve. If the balance of capital reserve is notsufficient, any excess shall be adjusted to retained earnings. Any other comprehensive income previously recognized shall be accountedfor on the same basis as would have been required if the investee had directly disposed of the related assets or liabilities. The portionrecognized based on changes in the investee’s equity (other than net profit or loss, other comprehensive income and profit appropriation)is charged to profit or loss upon disposal of such long-term equity investment. For those partially disposed equity investments, gainsor losses upon disposal are proportionately recognized in profit or loss when they still constitute long-term equity investments after thedisposal and are fully charged to profit or loss when they are reclassified to financial instruments after the disposal. For businesscombination involving entities not under common control, the initial investment cost should be the cost of acquisition (for stepacquisitions not under common control, the initial investment cost is the sum of the carrying amount of the equity investment in theacquiree held before the acquisition date and the additional investment cost paid on the acquisition date), which is the sum of the fairvalue of assets transferred, liabilities incurred or assumed and equity instruments issued. If the equity investments in the acquireeinvolve other comprehensive income prior to the acquisition date, when disposing of the investments, the relevant other comprehensiveincome will be accounted for on the same basis as would have been required if the investee had directly disposed of the related assetsor liabilities. The portion recognized based on changes in the investee’s equity (other than net profit or loss, other comprehensiveincome and profit appropriation) is charged to profit or loss upon disposal of such long-term equity investment. The initial investmentcost of a long-term equity investment acquired otherwise than through a business combination shall be determined as follows: for along-term equity investment acquired by paying cash, the initial investment cost shall be the actual purchase price has been paid plusthose costs, taxes and other necessary expenditures directly attributable to the acquisition of the long-term equity investment; for thoseacquired by the issue of equity securities, the initial investment cost shall be the fair value of the equity securities issued.
The Company adopted cost method to account for long-term investments in the subsidiaries in the separate financial statements of theCompany. 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 equityinvestment should be adjusted in case of additional investment or disinvestments. When cash dividends or profits are declared by theinvested 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 influenceon the investee enterprise. Joint control is the contractually agreed sharing of control over an economic activity, and exists only whenthe strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control (theventures). Significant influence is the power to participate in the financial and operating policy decisions of an economic activity butis 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 inthe fair values of the investee’s identifiable net assets at the acquisition date, the difference is accounted for as an initial cost. As to theinitial investment cost is less than the investing enterprise’s interest in the fair values of the investee’s identifiable net assets at theacquisition date, the difference shall be charged to the income statement for the current period, and the cost of the long-term equityinvestment shall be adjusted accordingly.
Under equity method, the Group recognizes its share of post-acquisition equity in the investee enterprise for the current period as again or loss on investment, and also increases or decreases the carrying amount of the investment. When recognizing its share in thenet profit or loss of the investee entities, the Group should, based on the fair values of the identifiable assets of the investee entity whenthe investment is acquired, in accordance with the Group’s accounting policies and periods, after eliminating the portion of the profitsor losses, arising from internal transactions with joint ventures and associates, attributable to the investing entity according to the shareratio (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 theextent that the Group’s share of the profit or cash dividend declared to be distributed by the investee enterprise. However, the share ofnet loss is only recognized to the extent that the book value of the investment is reduced to zero, except to the extent that the Grouphas incurred obligations to assume additional losses. The Group shall adjust the carrying amount of the long-term equity investmentfor other changes in owners’ equity of the investee enterprise (other than net profits or losses), and include the correspondingadjustments 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 shallbe recognized in the income statement for the current period. As to other comprehensive income recognized based on measurement ofthe original equity investment by employing the equity method, accounting treatment shall be made on the same basis as would berequired if the invested entity had directly disposed of the assets or liabilities related thereto when measurement by employing theequity method is terminated. As to any change in owners' equity of the invested entity other than net profit or loss, other comprehensiveincome and profit distribution, the investing party shall be transferred to the income statement for the current period. If the remainingequities still be measured under the equity method, accumulative change previously recorded in other comprehensive income shall betransferred to current profit or loss, in measurement on the same basis as the invested entity had directly disposed of the assets orliabilities related thereto. The income or loss recorded in the equity directly should been transferred to the current income statement onsettlement of the equity investment on the disposal proportion.
12. Investment property
Investment property are properties held to earn rentals or for capital appreciation, or both, including rented land use right, land useright which is held and prepared for transfer after appreciation, and rented building.
The initial measurement of the investment property shall be measured at its actual cost. The follow-up expenses pertinent to aninvestment property shall be included in the cost of the investment property, if the economic benefits pertinent to this real estate arelikely to flow into the enterprise, and, the cost of the investment property can be reliably measured. Otherwise, they should be includedin 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 understraight-line method.
13. Fixed assets
A fixed asset probably shall be recognized only when the economic benefits associated with the asset will flow to the Group and thecost of the asset can be measured reliably. Subsequent expenditure incurred for a fixed asset that meet the recognition criteria shall beincluded in the cost of the fixed asset, and the book value of the component of the fixed asset that is replaced shall be derecognized.Otherwise, such expenditure shall be recognized in the income statement in the period during which they are incurred.
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 deliveryand 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 rates
for 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. | |||
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.
14. Construction in progress
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.
15. Borrowing costs
Borrowing costs are interest and other costs incurred by the Group in connection with the borrowing of the funds. Borrowing costsinclude interest, amortization of discounts or premiums related to borrowings, ancillary costs incurred in connection with thearrangement of borrowings, and exchange differences arising from foreign currency borrowings.
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 ofproperty, plant and equipment and inventory etc.) that necessarily takes a substantial period of time to get ready for its intended use ofsale.
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 activitiesnecessary to prepare the qualifying asset for its intended use or sale have been done. And subsequent borrowing costs are recognizedin 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 incurredon that borrowing for the period less any bank interest earned form depositing the borrowed funds before being used on the asset orany 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 byapplying a weighted average interest rate to the weighted average of the excess amounts of cumulative expenditure on the asset overand above the amounts of specific-purpose borrowings.During the construction or manufacture of assets that are qualified for capitalization, if abnormal discontinuance, other than proceduresnecessary for their reaching the expected useful conditions, happens, and the duration of the discontinuance is over three months, thecapitalization of the borrowing costs is suspended. Borrowing costs incurred during the discontinuance are recognized as expense andcharged to the income statement of the current period, till the construction or manufacture of the assets resumes.
16. Right-of-use assets
The Group's right-of-use assets are mainly buildings.
At the commencement date of the lease period, the Group recognizes its right to use the leased assets during the lease period as a right-of-use asset, including: the initial measured amount of the lease liability; the amount of lease payments paid on or before the start dateof the lease period, in addition, the relevant amount of lease incentive should be deducted; Initial direct expenses incurred by the lessee;the estimated cost incurred by the lessee for dismantling and removing the leased assets, restoring the site where the leased assets arelocated, or restoring the leased assets to the state agreed in the lease terms. the Group adopts the average age method to depreciate the
assets of the right of use. If it can be reasonably determined that the ownership of the leased asset is obtained at the expiration of thelease term, the Group adopts depreciation within the remaining service life of the leased asset. If it is impossible to reasonably determinethat the ownership of the leased asset can be obtained at the expiration of the lease term, the Group adopts depreciation within theshorter of the lease term and the remaining service life of the leased asset.
When the Group remeasures the lease liability according to the present value of the changed lease payment and adjusts the book valueof the right of use asset, if the carrying amount of the right-of-use assets has been reduced to zero but the lease liabilities still need tobe further reduced, the Group will include the remaining amount in the profit or loss of the current period.
17. Intangible assets
An intangible asset probably shall be recognized only when the economic benefits associated with the asset will flow to the Group andthe cost of the asset can be measured reliably. Intangible assets are initially measured at cost. The cost of intangible assets acquired ina business combination is the fair value as at the date of acquisition, if the fair value can be reliably measured.
The useful life of the intangible assets shall be assessed according to the estimated beneficial period expected to generate economicbenefits. An intangible asset shall be regarded as having an indefinite useful life when there is no foreseeable limit to the period overwhich the asset is expected to generate economic benefits for the Group.
The useful lives of the intangible assets are as follow:
Useful life
Land use right 43 to 50 yearsSoftware 2 yearsTrademark 10 yearsNon-patent technology 5 yearsPatent technology 10 years
Land use rights that are purchased or acquired through the payment of land use fees are accounted for as intangible assets. With respectto 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 purchasedwill be recorded as fixed assets. The cost of a finite useful life intangible asset is amortized using the straight-line method during theestimated useful life. For an intangible asset with a finite useful life, the Group reviews the estimated useful life and amortizationmethod 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 itscarrying amount annually, whenever there is an indication that the intangible asset may be impaired. An intangible asset with anindefinite 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 andcircumstances continue to support an indefinite useful life assessment for that asset. If there are indicators that the intangible asset hasfinite useful life, the accounting treatment would be in accordance with the intangible asset with finite useful life.
18. Research and development expenditures
The Group classified the internal research and development expenditures as follows: research expenditures and development cost.
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 finishintangible assets for use or sale; (b) it is intended to finish and use or sell the intangible assets; (c) the usefulness of methods forintangible assets to generate economic benefits shall be proved, including being able to prove that there is a potential market for theproducts manufactured by applying the intangible assets or there is a potential market for the intangible assets itself or the intangibleassets 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 theintangible assets can be reliably measured. Expenses incurred that don’t meet the above requirements unanimously should be expensedin 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, inwhich 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 recordedas development cost.
19. Impairment of assets
The Group determines the impairment of assets, other than the impairment of inventory, contract assets, deferred income taxes, andfinancial assets, using the following methods:
The Group assesses at the balance sheet date whether there is any indication that an asset may be impaired. If any indication exists thatan asset may be impaired, the Group estimates the recoverable amount of the asset and performs impairment tests. Goodwill arisingfrom a business combination and an intangible asset with an indefinite useful life are tested for impairment at least at the end of everyyear, irrespective of whether there is any indication that the asset may be impaired. An intangible asset which is not ready for itsintended use is tested for impairment at least at the end of every year.
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 expectedto be derived from the asset. The Group estimates the recoverable amount on an individual basis. If it is not possible to estimate therecoverable 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 flowsfrom 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 therecoverable amount. The impairment of asset is provided for and the impairment loss is recognized in the income statement for thecurrent period.
For the purpose of impairment testing, the carrying amount of goodwill acquired in a business combination is allocated, on a reasonablebasis, 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 assetgroups. 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 thesynergies 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 ofimpairment, 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 (includingthe portion of the carrying amount of goodwill allocated) of the related asset group or set of asset groups is compared to its recoverableamount. If the carrying amount of the asset group or set of asset groups is higher than its recoverable amount, the amount of theimpairment loss is firstly eliminated by and amortized to the book value of the goodwill included in the asset group or set of assetgroups, and then eliminated by the book value of other assets according to the proportion of the book values of assets other than thegoodwill in the asset group or set of asset groups.
Once the above impairment loss is recognized, it cannot be reversed in subsequent periods.
20. Long-term deferred expenses
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.
21. Employee benefits
Employee benefits refer to all kinds of remunerations or compensation made by enterprises to their employees in exchange for servicesprovided by the employees or termination of labor relation. Employee compensation includes short-term compensation and post-employment benefits. The benefits offered by enterprises to the spouse, children, the dependents of the employee, the family memberof deceased employee and other beneficiaries are also employee compensation.
Short-term employee salaries
During the accounting period of employee rendering service, the actual 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 recognized 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 they occur.Remeasurements are not reclassified to profit or loss in subsequent periods.
Past service costs are recognized in profit or loss at the earlier of: the date of the plan amendment or curtailment; and the date that theGroup recognizes restructuring-related costs.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group recognizes the followingchanges in the net defined benefit obligation under administrative expenses in the consolidated statement of profit or loss by function:
?service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; netinterest expense or income.
Termination benefits
Termination benefits are recognized at the earlier of when the Group can no longer withdraw the offer of those benefits and when theGroup recognizes restructuring costs involving the payment of termination benefits.
22. Lease liabilities
At the commencement date of the lease period, the Group recognizes the present value of the outstanding lease payments as a leaseliability, excluding short-term leases and leases of low-value assets. When calculating the present value of the lease payment, the Groupuses the lease implied rate as the discount rate, and if the lease implied interest rate cannot be determined, the lessee incrementalborrowing rate is used as the discount rate. The Group calculates the interest expense of the lease liability in each period of the leaseterm according to the fixed periodic interest rate and records it into the current profit and loss, unless otherwise specified, it is includedinto the cost of relevant assets. Variable lease payments that are not included in the measurement of lease liabilities are included in theprofit or loss of the current period when actually incurred, unless otherwise specified to be included in the cost of the underlying assets.
After the commencement date of the lease period, the Group remeasures the lease liability against the present value of the changedlease payment amount when there is a change in the amount of substantial fixed payments, a change in the amount expected to pay dueto the residual value of the guarantee, a change in the index or ratio used to determine the amount of the lease payment, the assessmentof the purchase option, the renewal option or the option to terminate the lease.
23. Provisions
An obligation related to a contingency shall be recognized by the Group as a provision when all of the following conditions are satisfied,except for contingent considerations and contingent liabilities assumed in a business combination not involving entities under commoncontrol:
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 performance ofrelevant present obligations, with comprehensive consideration given to factors such as the risks, uncertainty and time value of moneyrelating to contingencies. The book value of the contingent liabilities should be reviewed at each balance sheet date. If there is objectiveevidence showing that the book value cannot reflect the present best estimate, the book value should be adjusted according to the bestestimate.
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 the estimatedliabilities and the amount initially recognized after deducting the accumulated amortization determined by the revenue recognition
principle is subsequently measured at the higher of the two.
24. Share-based payments
A share-based payment is classified as either an equity-settled share-based payment or a cash-settled share-based payment. An equity-settled share-based payment is a transaction in which the Group receives services and uses shares or other equity instruments asconsideration for settlement.
An equity-settled share-based payment in exchange for services received from employees is measured at the fair value of the equityinstruments granted to the employees. If such equity-settled share-based payment could vest immediately, related costs or expenses atan amount equal to the fair value on the grant date are recognized, with a corresponding increase in capital reserves; if such equity-settled share-based payment could not vest until the completion of services for a vesting period, or until the achievement of a specifiedperformance condition, the Group at each balance sheet date during the vesting period recognizes the services received for the currentperiod as related costs and expenses, with a corresponding increase in capital reserves, at an amount equal to the fair value of the equityinstruments at the grant date, based on the best estimate of the number of equity instruments expected to vest. The fair value isdetermined using the closing price of the company's shares on the grant date.
For awards that do not ultimately vest because non-market performance and/or service conditions have not been met, no expense isrecognized. Where awards include a market or non-vesting condition, the transactions are treated as vesting irrespective of whetherthe 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 share-based award are modified, as a minimum an expense is recognized as if the terms had notbeen modified. In addition, an expense is recognized for any modification that increases the total fair value of the share-basedpayment or is otherwise beneficial to the employee as measured at the date of modification.
Where an equity-settled share-based award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense notyet recognized for the award is recognized immediately. This includes any award where non-vesting conditions within the control ofeither the Group or the employee are not met. However, if a new award is substituted for the cancelled award and is designated as areplacement on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award.
25. Revenue from contracts with customers
The Group has fulfilled its performance obligations in the contracts, that is, the revenue is recognized when the customer obtains controlof the relevant goods or services. Obtaining control over related goods or services means being able to lead the use of the goods or theprovision of the services and obtain almost all of the economic benefits from it.
Contracts for the sale of goods
A contract for the sale of goods between the Group and the customer usually includes the performance obligation to transfer of goods,transportation services and free maintenance. The Group allocates the transaction price to each individual performance obligation inaccordance with the relative proportion of the stand-alone selling price of the goods or services promised by each individualperformance obligation on the date of contract commencement. Regarding the performance obligations of the transferred goods, theGroup usually recognizes revenue at the point when the performance obligations are fulfilled based on the following indicators, whichinclude: a present right to payment for goods, the transfer of significant risks and rewards of ownership of goods, the transfer of legaltitle to goods, the transfer of physical possession of goods, the customer’s acceptance of goods.
Provide service contract
The performance obligations of the service provision contract between the Group and the customer are due to the fact that the customerobtains and consumes the economic benefits brought by the performance of the Group at the same time the Group performs the contract,and the Group has the right to accumulate the economic benefits during the entire contract period. The Group regards it as a performanceobligation performed within a period, and recognizes the revenue according to the performance progress, unless the performanceprogress cannot be reasonably determined. In accordance with the output method, the Group determines the progress of the performanceof the service provided based on the completed or delivered products. When the performance progress cannot be reasonably determined,if the cost incurred by the Group is expected to be compensated, the revenue will be recognized according to the amount of the costincurred until the performance progress can be reasonably determined.
Variable consideration
Some contracts between the Group and customers have sales rebate arrangements, forming variable consideration. The Groupdetermines the best estimate of the variable consideration based on the expected value or the most likely amount, but the transaction
price including the variable consideration does not exceed the amount that the accumulated recognized revenue will most likely not bematerially reversed when the relevant uncertainty is eliminated.
Warranty obligations
In accordance with contractual agreements and legal provisions, the Group provides quality assurance for the goods sold. For guaranteequality assurance to ensure that the products sold meet the established standards, the Group conducts accounting treatment inaccordance with Note V, 23. For the service quality assurance that provides a separate service in addition to the established standardsto ensure that the goods sold meet the established standards, the Group regards it as a single performance obligation, based on thestand-alone selling price of the quality assurance of the goods and services provided. In a relative proportion, part of the transactionprice is allocated to service quality assurance, and revenue is recognized when the customer obtains control of the service. Whenassessing whether the quality assurance provides a separate service in addition to ensuring that the products sold meet the establishedstandards, the Group considers whether the quality assurance is a legal requirement, the quality assurance period, and the nature of theGroup's commitment to perform tasks.
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 independentlydetermine the price of the goods or services traded, that is, the Group can control the relevant goods before transferring the goods tothe customers, so the Group is the main responsible person, and recognize revenue based on the total consideration received orreceivable. Otherwise, the Group acts as an agent and recognizes revenue based on the amount of commission or fees expected to becharged. This amount should be based on the net amount of the total consideration received or receivable minus the price payable toother related parties, or based on the established commission amount or proportions, etc.
26. Contract assets and contract liabilities
The Group lists contract assets or contract liabilities in the balance sheet based on the relationship between performance obligationsand customer payments. The Group offsets the contract assets and contract liabilities under the same contract as net amount.
Contract assets
Contract assets refer to the right to receive consideration for the transfer of goods or services to customers, and this right depends onfactors other than the passage of time.
The determination method and accounting treatment method of the expected credit loss of the contract assets of the Group refer to NoteIII, 9.
Contract liabilities
Contract liabilities refer to the obligation to transfer goods or services to customers for the consideration received or receivable fromcustomers, such as the payment received by companies before the transfer of promised goods or services.
27. Government grants
A government grant is recognized only when there is reasonable assurance that the entity will comply with any conditions attached tothe grant and the grant will be received. Monetary grants are accounted for at received or receivable amount. Non-monetary grants areaccounted for at fair value. If there is no reliable fair value available, the grants are accounted for a nominal amount.
A government grant which is specified by the government documents to be used to purchase and construct the long-term assets shallbe recognized as the government grant related to assets. A government grant which is not specified by the government documents shallbe judged based on the basic conditions to obtain the government grant. The one whose basic condition was to purchase and constructthe long-term assets shall be recognized as the government grant related to assets.
The Group uses the net 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 incomeand shall be charged to the current profit or loss or be used to write down the relevant loss, during the recognition of the relevant costexpenses or losses; or used as compensation for relevant expenses or losses already incurred by enterprises shall be directly charged tothe 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 deferredincome. The government grants related to assets, recognized as deferred income, shall be charged to the profit and loss reasonably andsystematically in stages over the useful lives of the relevant assets. The government grants measured at nominal amount shall be directlycharged to the current profit and loss. The remaining book value of the government grants related to assets should be charged to theprofit and loss account in the current period when the relative assets sold, transferred, disposed or damaged.
28. Income taxes
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 (or recovered)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:
to the extent that the deferred tax liability arises from the initial recognition of goodwill or the initial recognition of an asset or liabilityin a transaction which contains both of the following characteristics: the transaction is not a business combination and at the time ofthe 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 in jointly-controlled enterprises, where the timing of the reversal of the temporary differences can be controlled and it is probable that thetemporary 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 orliability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nortaxable profit or loss; and
(2) in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in jointventures, deferred tax assets are only recognized to the extent that it is probable that the temporary differences will reverse in theforeseeable 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 sheetdate, 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 income cannotbe generated to use the tax benefits of deferred tax assets, the book value of deferred tax assets should be reduced. When it is probablethat sufficient taxable income can be generated, the amount of such reduction should be reversed. When it is probable that sufficienttaxable 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 tax assetsand deferred tax liabilities are reversed, the tax payer involved intends to settle the current income tax assets and current income taxliabilities with net amount or obtain assets and pay off debts at the same time.
29. Leases
Identification of leases
At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if thecontract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whethera contract conveys the right to control the use of an identified asset for a period of time, the Group assesses whether, throughout theperiod of use, the customer has both of the right to obtain substantially all of the economic benefits from use of the identified asset andthe right to direct the use of the identified asset.
Assessment of the lease term
The lease term is the non-cancellable period of a lease for which the Group has the right to use an underlying asset. If the Group hasan option to extend the lease, that is, the Group has the right to extend the lease, and is reasonably certain to exercise that option, thelease term also includes periods covered by an option to extend the lease. If the Group has an option to terminate the lease, that is,the Group has the right to terminate the lease, but is reasonably certain not to exercise that option, the lease term includes periodscovered by an option to terminate the lease. The Group reassesses whether it is reasonably certain to exercise an extension option,purchase option, or not to exercise a termination option, upon the occurrence of either a significant event or a significant change in thecircumstances that is within the control of the Group and affects whether the Group is reasonably certain to exercise an option notpreviously included in its determination of the lease term.
As lessee
The Group's general accounting treatment as a lessee is provided in Notes III, 16 and 22.
Short-term leases and leases of low-value assetsThe Group considers a lease that, at the commencement date of the lease, has a lease term of 12 months or less, and does not containsany purchase option as a short-term lease; and a lease with a lower value of a single leased asset is recognized as a low value assetlease.
As lessor
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlyingasset, except that a lease is classified as an operating lease at the inception date.
The Group recording the operating lease as a lessor
Rental income under an operating lease is recognized on a straight-line basis over the lease term, through profit or loss. Variable leasepayments that are not included in the measurement of lease receivables are charged to profit or loss as incurred.
The Group accounts for a modification to an operating lease as a new lease from the effective date of the modification, considering anyprepaid or accrued lease payments relating to the original lease as part of the lease payments for the new lease.
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.
30. Profit distribution
The cash dividend of the Group is recognized as liabilities after the approval of general meeting of stockholders.
31. Safety fund
The safety fund extracted by the Group shall be recognized as the cost of the related products or income statement, while be recognizedas special reserve. When using safety fund, it shall be distinguished whether it will form fixed assets or not. The expenditure shall writedown the special reserve; the capital expenditure shall be recognized as fixed assets when meet the expected conditions for use, andwrite down the special reserve while recognizing accumulated depreciation with the same amount.
32. Fair value measurement
The Group measures its equity investments at fair value at the end of each reporting period. Fair value is the price that would bereceived to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place eitherin the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the assetor liability. The principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a liability ismeasured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participantsact in their economic best interest.
The Group measures equity investments at fair value at the end of each reporting period. Fair value is the price that would be receivedto sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fairvalue measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place in the principalmarket for the asset or liability or in the most advantageous market for the asset or liability when a principal market is absent. Theprincipal or the most advantageous market must be accessible to by the Group. The fair value of an asset or a liability is measuredusing the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act intheir economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits byusing 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 bestuse.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data and other supportinginformation are available to measure fair value, giving priority to the use of relevant observable inputs, and using unobservable inputsonly when observable inputs are unavailable or not feasible to obtain.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair valuehierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectlyobservable
Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines whether transfershave occurred between levels in the hierarchy by reassessing categorization at the end of each reporting period.
33. Significant accounting judgments and estimates
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the amountsand disclosures of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the balance sheet date.However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to thecarrying amounts of the assets or liabilities affected in the future.
Judgments
In the process of applying the Group’s accounting policies, management has made the following judgments which have significanteffect on the financial statements:
(1) Business model
The classification of financial assets at initial recognition depends on the business model of the Group’s management of financial assets.When judging the business model, the Group considers the methods including enterprise evaluation and reporting of financial assetperformance to key management personnel, risks affecting financial asset performance and its arangement method and the way inwhich related business managers get paid. When evaluating whether to take contract cash flow as the goal, the Group needs to analyzeand judge the reasons, time, frequency and value of the sale of financial assets before the due date.
(2) Contract cash flow characteristics
The classification of financial assets at initial recognitions depends on the contractual cash flow characteristics of the financial assets.It is necessary to determine whether the contractual cash flow is only for the payment of principal and interest based on outstandingprincipal, including correction of the time value of money during the evaluation, it is necessary to determine whether there is asignificant difference compared to the benchmark cash flow. For financial assets that include prepayment characteristics, it is necessaryto determine whether the fair value of the prepayment characteristics is very small, etc.
Uncertainty of accounting estimates
The crucial assumptions of significant accounting estimates in future and other crucial sources of estimated uncertainty, which mayresult in the significant adjustments to the book value of the subsequent accounting period, are as the following:
(1) Impairment of financial instruments and contract assets
The Group uses the expected credit loss model to assess the impairment of financial instruments and contract assets. The applicationof the expected credit loss model requires significant judgments and estimates. All reasonable and valid information must be considered,including forward-looking information. In making these judgments and estimates, the Group infers the expected changes in the creditrisk of the debtor based on historical repayment data combined with economic policies, macroeconomic indicators, industry risks andother factors. Different estimates may affect the provision for impairment losses. The provision for impairment losses may not be equalto the actual amount of future impairment losses.
(2) Impairment of non-current assets other than financial assets (goodwill excluded)
The Group assesses at each reporting date whether there is an indication that non-current assets other than financial assets may beimpaired. If there is any sign of possible assets impairment, the assets concerned should be subject to impairment test. When thecarrying amount of an asset or the relevant assets group exceeds its recoverable amount which is the higher one of the net amount ofthe fair value of the asset minus the disposal expenses and the present value of the expected future cash flow of the asset, the asset isconsidered impaired. The fair value minus the disposal expenses is determined by reference to the recent market transactions price orobserved market price less any directly attributable expenditure for disposing. When making an estimate of the present value of thefuture cash flow of an asset, the Group should estimate the future cash flows of the asset or the relevant assets group, with theappropriate discount rate selected to reflect the present value of the future cash flows.
(3) Fair value of unlisted equity investments
For unlisted equity instrument investments, several valuation models are used to estimate the fair value. This requires the Group tomake estimates of unobservable market parameters such as price-to-book ration, discount rate, sustainable growth rate, asset priceindex, etc., and is therefore uncertain.
(4) Development expenditures
When determining the capitalization amount, management should make assumptions such as the expected cash flows of the assetsrelated, the applicable discount rate and expected benefit period.
(5) Deferred tax assets
The Group should recognize the deferred income tax assets arising from all the existing unutilized tax deficits and deductible temporarydifferences to the extent of the amount of the taxable income which it is most likely to obtain and which can be deducted from thedeductible temporary differences. Enormous accounting judgments, as well as the tax planning are compulsory for management toestimate the time and amount of prospective taxable profits and thus determine the appropriate amount of the deferred tax assetsconcerned.
(6) Warranty
The Group provides warranties on automobile and undertakes to repair or replace items that fail to perform satisfactorily based oncertain pre-determined conditions. Factors that influence estimation of related warranty claim include: 1) renewal of laws andregulations; 2) quality promotion of Group products; 3) change of parts and labour cost. In general, the Group records warranty basedon selling volume and estimated compensatory unit warranty cost, deduction multi-agreed compensation from suppliers. As at balancesheet day, the Group launches retrospective analysis on warranty carrying amount in consideration of accrual warranty payment duringrelative warranty period, and recent trends of product renovation and replacement, and further adjustment if necessary. Any increaseor decrease in the provision would affect profit or loss in future years.
(7) Depreciation and amortization
The Group’s management determines the estimated useful lives and residual value of fixed assets and intangible assets. This estimateis 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.
(8) Lessee Incremental Borrowing Rate
For leases for which the interest rate implicit in the lease cannot be determined, the Group uses the lessee's incremental borrowing rateas the discount rate to calculate the present value of lease payments. When determining the incremental borrowing rate, the Grouptakes the observable interest rate as the reference basis for determining the incremental borrowing rate according to the economicenvironment in which it is located. The reference interest rate is adjusted according to the specific conditions of the leasing business toobtain the applicable incremental borrowing rate.
34. Changes in accounting policies and estimates
(1) Changes in accounting policies
□ Applicable √ Not applicable
(2) Changes in significant accounting estimates
□ Applicable √ Not applicable
VI. TAXES
1. Main taxes and tax rates
Value added tax (“VAT”) - The income from the sale of goods and the income from the provision of services are calculated atthe tax rates of 13% and 6%, respectively, and the VAT is calculated on the basis of the difference after deducting the input tax that isallowed to be deducted in the current period.
Consumption tax - Consumption tax is calculated at 1%, 3% or 5% of taxable income.
City maintenance and construction tax - 5% or 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
According to the relevant provisions of the national high-tech identification and relevant tax preferential policies, the followingcompanies of the Group are identified as high-tech enterprises and are subjected to the preferential corporate income tax rate of 15%within the prescribed period: the company (2021-2023), and the Company’s subsidiaries including Hebei Changan AutomobileCompany Limited (2020-2022), Baoding Changan Bus Manufacturing Company Limited (2020-2022).
According to the Announcement on Continuing the Income Tax Policy for Enterprises in the Large-scale Development of the WesternRegion jointly issued by the Ministry of Finance, the State Administration of Taxation and the National Development and ReformCommission, from January 1, 2021 to December 31, 2030, enterprise income tax will be levied at a reduced rate of 15% for encouragedindustrial enterprises located in the western region. Chongqing Changan Automobile International Sales Service Co., Ltd., ChongqingChangan Special Purpose Vehicle Co., Ltd., Chongqing Changan Automobile Customer Service Co., Ltd., Chongqing LingyaoAutomobile Co., Ltd. and Chongqing Chehemei Technology Co., Ltd., subsidiaries of the Company, meet the above requirements andare subject to corporate income tax calculated at a 15% corporate income tax rate.
According to the Announcement on Enterprise Income Tax Policies on Promoting the High-quality Development of the IntegratedCircuit Industry and the Software Industry jointly issued by the Ministry of Finance, the State Administration of Taxation, theDevelopment and Reform Commission and the Ministry of Industry and Information Technology, software enterprises encouraged bythe state are exempt from enterprise income tax from the first to second year from the year of profit, and from the third to the fifth year,the statutory tax rate of 25% is halved. Chongqing Changan Automobile Software Technology Co., Ltd., a subsidiary of the Company,meets the above conditions, and this year is the third profit year and the statutory tax rate of 25% is halved.VII. Notes to the consolidated financial statements
1. Cash
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Cash | 6,321.16 | 36,881.35 |
| Cash at bank | 51,032,261,166.99 | 49,517,879,953.64 |
| Other cash | 2,389,515,751.70 | 2,458,325,314.38 |
| Total | 53,421,783,239.85 | 51,976,242,149.37 |
As at 30 June 2022, the book value of restricted cash and cash equivalents is RMB 1,451,938,642.9, which was mainly restricted forthe issuance of acceptance bill (December 31, 2021: RMB 2,458,325,314.38).
As at 30 June 2022, the cash at bank oversea is equivalent to RMB 235,680,963.02 (December 31, 2021: RMB 300,347,944.86).
As of June 30, 2022, the monetary capital deposited by the group in the financial company of the related party was RMB27,362,815,259.42 (December 31, 2021: RMB 31,652,980,551.77). See note XII and 5 for details.
The interest income of bank demand deposits is obtained according to the interest rate of bank demand deposits. 7-day bank calldeposits and time deposits can be withdrawn at any time according to the group's cash demand, and interest income is obtainedaccording to the corresponding bank deposit interest rate.
2. Transactional financial assets
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Equity instrument investment | 302,911,174.57 | 177,902,700.00 |
| Others | 3,056,400.00 | 17,895,600.00 |
| Total | 305,967,574.57 | 195,798,300.00 |
As of June 30, 2022, the trading financial assets measured at fair value are 33.63 million ordinary shares of Southwest Securities Co.,Ltd. held by the group (December 31, 2021: 33.63 million shares), and 26.05 million restricted shares held by the group in ChinaAutomobile Research automobile testing ground Co., Ltd. (December 31, 2021: Nil).
3. Notes receivable
(1) Classification of notes receivable
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Commercial acceptance bill | 15,064,718,344.41 | 17,187,270,560.03 |
| Bank acceptance bill | 6,114,186,788.25 | 7,080,362,856.62 |
| Total | 21,178,905,132.66 | 24,267,633,416.65 |
(2)Notes receivable pledged
In RMB Yuan
| Item | Pledged amount |
| Commercial acceptance bill | 6,334,050,284.91 |
| Bank acceptance bill | 1,924,405,539.88 |
| Total | 8,258,455,824.79 |
As of June 30, 2022, the bills receivable of the above amount had been pledged for issuing bills payable.
(3)Endorsed or discounted but unexpired notes receivable as at the end of reporting period
In RMB Yuan
| Item | Amount derecognized at the end of the period | Amount not derecognized at the end of the period |
| Commercial acceptance bill | 1,836,816,065.23 | - |
| Bank acceptance bill | 17,900,000.00 | - |
| Total | 1,854,716,065.23 | - |
(4)At the end of the period, the company transferred the bills to accounts receivable due to the drawer's non performance
As at 30 June 2022, there was no note receivables converted to accounts receivable due to the inability of the drawer to perform thecontract. (As at 31 December 2021: Nil)
4. Accounts receivable
(1)Aging analysis of the accounts receivable
In RMB Yuan
| Aging | Ending balance | Beginning balance |
| Within 1 year | 3,520,437,677.86 | 1,605,244,476.97 |
| 1 to 2 years | 45,103,667.98 | 28,484,908.94 |
| 2 to 3 years | 99,726,316.58 | 116,846,682.50 |
| Over 3 years | 152,921,931.80 | 140,125,844.08 |
| Total | 3,818,189,594.22 | 1,890,701,912.49 |
| Less: Provision | (221,187,483.68) | (215,274,377.62) |
| Total | 3,597,002,110.54 | 1,675,427,534.87 |
(2)The movements in provision for impairment of accounts receivable are as follows:
In RMB Yuan
| Category | Beginning balance | Change amount in the current period | Ending balance | ||
| Provision | Withdrawal or reversal | Write-off | |||
| 2022.6.30 | 215,274,377.62 | 14,793,773.74 | 3,880,667.68 | 5,000,000.00 | 221,187,483.68 |
| 2021.12.31 | 189,491,038.22 | 31,121,598.40 | 3,933,948.00 | 1,404,311.00 | 215,274,377.62 |
(3)Analysis of accounts receivable by category
In RMB Yuan
| Category | Ending balance | ||||
| Balance | Provision | Book value | |||
| Amount | % | Amount | % | ||
| Individually analyzed for provision | 2,984,570,203.17 | 78.17 | 154,440,110.83 | 5.17 | 2,830,130,092.34 |
| Accounts receivable analyzed as groups for provision | 833,619,391.05 | 21.83 | 66,747,372.85 | 8.01 | 766,872,018.20 |
| Total | 3,818,189,594.22 | 100.00 | 221,187,483.68 | 5.79 | 3,597,002,110.54 |
| Category | Beginning balance | ||||
| Balance | Provision | Book value | |||
| Amount | % | Amount | % | ||
| Individually analyzed for provision | 1,116,005,410.48 | 59.03 | 161,822,950.43 | 14.50 | 954,182,460.05 |
| Accounts receivable analyzed as groups for provision | 774,696,502.01 | 40.97 | 53,451,427.19 | 6.90 | 721,245,074.82 |
| Total | 1,890,701,912.49 | 100.00 | 215,274,377.62 | 11.39 | 1,675,427,534.87 |
(4)The Group’s accounts receivable was analyzed for provision by expected credit loss model
In RMB Yuan
| Aging | Ending balance | ||
| Estimated face value for default | Expected credit loss rate (%) | Expected credit loss for the entire duration | |
| Within 1 year | 638,311,708.75 | 0.11 | 678,498.74 |
| 1 to 2 years | 6,032,150.00 | 8.61 | 519,124.72 |
| 2 to 3 years | 67,434,401.51 | 17.55 | 11,832,231.58 |
| Over 3 years | 121,841,130.79 | 44.09 | 53,717,517.81 |
| Total | 833,619,391.05 | 8.01 | 66,747,372.85 |
| Aging | Beginning balance | ||
| Estimated face value for default | Expected credit loss rate (%) | Expected credit loss for the entire duration | |
| Within 1 year | 572,882,251.72 | 0.13 | 759,937.11 |
| 1 to 2 years | 28,352,246.25 | 8.57 | 2,429,794.47 |
| 2 to 3 years | 92,634,562.67 | 12.47 | 11,548,535.79 |
| Over 3 years | 80,827,441.37 | 47.90 | 38,713,159.82 |
| Total | 774,696,502.01 | 6.90 | 53,451,427.19 |
(5) Accounts receivable with top five ending balances collected by debtors
As at June 30, 2022, accounts receivable from Top 5 clients amounted to RMB 2,159,307,798.64, accounted for 56.55% of the totalaccounts receivable (December 31, 2021: RMB 924,920,983.66, accounted for 48.92% of the total amount).
(6) Accounts receivable derecognized due to transfer of financial assets
As of June 30, 2022, the Group has no accounts receivable that are derecognized as the transfer of financial assets (December 31, 2021:
Nil).
5. Prepayments
In RMB Yuan
| Aging | Ending balance | Beginning balance | ||
| Amount | % | Amount | % | |
| Within 1 year | 3,849,485,631.49 | 99.62 | 3,223,697,503.44 | 99.46 |
| 1 to 2 years | 10,246,950.08 | 0.27 | 12,192,890.74 | 0.38 |
| 2 to 3 years | 1,748,527.01 | 0.05 | 3,934,439.12 | 0.12 |
| Over 3 years | 2,500,285.31 | 0.06 | 1,423,997.98 | 0.04 |
| Total | 3,863,981,393.89 | 100.00 | 3,241,248,831.28 | 100.00 |
As at 30 June 2022, the total amount of the top five prepayments was RMB 1,474,271,190.88, accounting for 38.15% of the totalamount of prepayments (2021: RMB 1,151,298,912.20, accounting for 35.52%).
6. Other receivables
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Dividend receivable | 255,356,145.11 | |
| Other receivables | 254,258,702.75 | 632,122,942.37 |
| Total | 509,614,847.86 | 632,122,942.37 |
(1)Dividend receivable
In RMB Yuan
| Project (or investee) | Ending balance | Beginning balance |
| Weaponry Group Finance Co., Ltd | 143,737,428.00 | |
| China Ordnance Equipment Group Finance Leasing Co., Ltd | 411,666.67 | |
| Guolian automobile power battery Research Institute Co., Ltd | 73,034.00 | |
| Chang'an Auto Finance Co., Ltd | 66,943,616.44 | |
| Chang'an Mazda Engine Co., Ltd | 41,500,000.00 | |
| Southwest Securities Co., Ltd | 2,690,400.00 | |
| Total | 255,356,145.11 |
(2)Other receivables
1) Aging analysis of other receivables
In RMB Yuan
| Aging | Ending balance | Beginning balance |
| Within 1 year | 178,523,769.16 | 617,564,020.74 |
| 1 to 2 years | 64,284,604.28 | 1,762,913.64 |
| 2 to 3 years | 1,981,904.94 | 2,737,081.98 |
| Over 3 years | 16,796,244.89 | 17,525,165.97 |
| Total | 261,586,523.27 | 639,589,182.33 |
| Less: Provision | (7,327,820.52) | (7,466,239.96) |
| Total | 254,258,702.75 | 632,122,942.37 |
2) Other receivables are classified by nature
In RMB Yuan
| Nature | Ending balance | Beginning balance |
| Subsidies for new energy vehicles | 50,998,795.00 | 409,468,872.96 |
| Bond | 18,205,007.69 | 84,465,512.53 |
| Petty cash | 37,717,721.77 | 23,921,846.41 |
| Other | 147,337,178.29 | 114,266,710.47 |
| Total | 254,258,702.75 | 632,122,942.37 |
3) The changes in the provision for bad debts for other receivables based on the 12-month expected credit losses and the expectedcredit losses for the entire duration
In RMB Yuan
| Category | Beginning balance | Change amount in the current period | Ending balance | |||
| Provision | Withdrawal or reversal | Write-off | Other | |||
| 2022.6.30 | 7,466,239.96 | 64,762.57 | 203,182.01 | 7,327,820.52 | ||
| 2021.12.31 | 11,821,252.79 | 68,455.17 | 4,205,241.00 | 218,227.00 | 7,466,239.96 | |
4) Other receivables with top five ending balances collected by debtors
In RMB Yuan
| Name | Nature | Ending balance | Aging | Proportion in ending balance of other receivables (%) | Ending balance of bad debt provision |
| First | Subsidies for new energy vehicles | 50,998,795.00 | Within 1 year | 19.50 |
| Second | Disposal of assets | 48,350,040.00 | 1 to 2 years | 18.48 | |
| Third | Bond | 15,900,000.00 | Within 1 year | 6.08 | |
| Fourth | Electricity fee | 10,815,169.74 | Within 1 year | 4.13 | |
| Fifth | Gas fee | 6,143,019.88 | Within 1 year | 2.35 | |
| Total | 132,207,024.62 | - | 50.54 |
5) Other receivables derecognized due to transfer of financial assets
As of June 30, 2022, the Group has no other receivables derecognized as financial asset transfers. (December 31, 2021: Nil).
7. Inventory
(1) Classification of inventory
In RMB Yuan
| Item | Ending balance | Beginning balance | ||||
| Balance | Provision for impairment of inventories or provision for impairment of contract performance costs | Net value | Balance | Provision for impairment of inventories or provision for impairment of contract performance costs | Net value | |
| Raw materials | 1,251,525,114.27 | 276,722,893.12 | 974,802,221.15 | 814,952,436.64 | 313,721,126.17 | 501,231,310.47 |
| Work in transit | 107,432,641.94 | - | 107,432,641.94 | 355,550,319.54 | - | 355,550,319.54 |
| Work in progress | 2,609,892,441.73 | 60,788,411.49 | 2,549,104,030.24 | 2,759,775,787.47 | 72,995,707.72 | 2,686,780,079.75 |
| Commodity stock | 3,438,230,207.70 | 76,638,247.43 | 3,361,591,960.27 | 3,420,908,192.91 | 166,294,516.69 | 3,254,613,676.22 |
| Revolving materials | - | - | - | 29,535,580.80 | - | 29,535,580.80 |
| Spare parts | 31,994,939.02 | - | 31,994,939.02 | 25,163,453.81 | - | 25,163,453.81 |
| Total | 7,439,075,344.66 | 414,149,552.04 | 7,024,925,792.62 | 7,405,885,771.17 | 553,011,350.58 | 6,852,874,420.59 |
(2) Provision for inventory
In RMB Yuan
| Item | Beginning balance | Increase | Decrease | Ending balance | ||
| Provision | Other | Reversal | Write-off | |||
| Raw materials | 313,721,126.17 | 10,874,321.00 | 82,454.04 | 47,790,100.01 | 276,722,893.12 | |
| Work in progress | 72,995,707.72 | 48,387,421.87 | 320,089.45 | 60,274,628.65 | 60,788,411.49 | |
| Commodity stock | 166,294,516.69 | 17,364,083.57 | 4,091,297.35 | 102,929,055.48 | 76,638,247.43 | |
| Total | 553,011,350.58 | 76,625,826.44 | 4,493,840.84 | 210,993,784.14 | 414,149,552.04 | |
8. Contract assets
In RMB Yuan
| Item | Ending balance | Beginning balance | ||||
| Balance | Provision for impairment | Net value | Balance | Provision for impairment | Net value | |
| Contract assets | 1,208,077,390.13 | 171,319,492.50 | 1,036,757,897.63 | 1,320,954,229.34 | 169,661,981.98 | 1,151,292,247.36 |
| Total | 1,208,077,390.13 | 171,319,492.50 | 1,036,757,897.63 | 1,320,954,229.34 | 169,661,981.98 | 1,151,292,247.36 |
Current contract assets provision for impairment：
In RMB Yuan
| Beginning balance | Provision | Turn back | Resale | Ending balance | |
| 2022.6.30 | 169,661,981.98 | 1,807,510.52 | 150,000.00 | - | 171,319,492.50 |
| 2021.12.31 | 134,148,932.88 | 49,094,830.06 | 7,431,781.00 | 6,149,999.96 | 169,661,981.98 |
9. Other current assets
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Accrual input tax | 633,540,441.95 | 1,140,996,871.24 |
| Prepaid taxes | 139,504,217.70 | 3,078,565.10 |
| Others | 9,626,784.09 | 3,723,435.08 |
| Total | 782,671,443.74 | 1,147,798,871.42 |
10. Long-term equity investments
In RMB Yuan
| Investee | Beginning balance | Increase / decrease | Ending balance | Provision ending balance | |||
| Addition | Investment income under equity method | Other comprehensive income adjustment | Declaration of cash dividends or profits | ||||
| I. Joint Venture | |||||||
| Changan Ford Automobile Co., Ltd. | 2,934,876,043.99 | 522,860,908.17 | 3,457,736,952.16 | ||||
| Changan Mazda Automobile Co., Ltd. | 1,867,086,106.67 | 236,050,510.98 | (381,500,000.00) | 1,721,636,617.65 | |||
| Changan Mazda Engine Co., Ltd. | 835,121,564.38 | 15,784,275.65 | (41,500,000.00) | 809,405,840.03 | |||
| Nanchang Jiangling Holding Co., Ltd. | 1,630,596,420.97 | 88,264,113.54 | 1,718,860,534.51 | ||||
| Subtotal | 7,267,680,136.01 | 862,959,808.34 | (423,000,000.00) | 7,707,639,944.35 | |||
| II. Associates | |||||||
| Chongqing Changan Kuayue Automobile Co., Ltd. | 242,792,196.86 | (20,594,524.55) | 222,197,672.31 | ||||
| Changan Automobile Financing Co.,Ltd | 2,520,349,332.44 | 152,764,747.43 | (66,943,616.44) | 2,606,170,463.43 | |||
| Hainan Anxinxing Information Technology Co., Ltd. (note 1) | 368,900.00 | (368,900.00) | |||||
| Nanjing Chelai Travel Technology Co., Ltd. | 866,888.90 | (97,213.22) | 769,675.68 | ||||
| Hunan Guoxin Semiconductor Technology Co., Ltd. | 25,285,116.95 | (552,714.09) | 24,732,402.86 | ||||
| Nanjing Leading Equity Investment Management Co., Ltd. (Limited Partnership) | 2,424,143,949.52 | (42,899.72) | 2,424,101,049.80 | ||||
| Nanjing Leading Equity Investment Partnership | 1,133,065.60 | (9,266.61) | 1,123,798.99 | ||||
| Chongqing Changan New Energy Vehicles Technology Co., Ltd. | 425,266,071.28 | 2,023,566,110.70 | (730,298,424.67) | 1,718,533,757.31 | |||
| Zhongqi Chuangzhi Technology Co., Ltd. | 190,534,997.15 | (9,012,542.48) | 181,522,454.67 | ||||
| Chongqing Changxin Zhiqi Private Equity Investment Fund Partnership (Limited Partnership) | 25,007,587.62 | (5,754.39) | 25,001,833.23 | ||||
| Anhe (Chongqing) Equity Investment Fund Management Co., Ltd. | 2,199,216.74 | (222,996.33) | 1,976,220.41 | ||||
| Hangzhou Chelizi Intelligent Technology Co., Ltd. | 9,456,236.58 | (559,728.73) | 8,896,507.85 | ||||
| Master Changan Automobile Co., Ltd. | 40,167,274.82 | (2,584,892.67) | 37,582,382.15 | ||||
| Jiangling Holding Co., Ltd. | 70,492,790.08 | (41,202,595.77) | 29,290,194.31 | ||||
| AVATR. Co., Ltd. (note 2) | 2,446,278,194.01 | (131,350,496.79) | 146,228.18 | 2,315,073,925.40 | |||
| Chongqing Changan Kuayue Automobile Sales Co., Ltd. (note 1) | |||||||
| Beijing Fang’an cresent taxi Co., Ltd. (note 1) | |||||||
| Chongqing Wutong Chelian Technology Co., Ltd. (note 1) | |||||||
| Subtotal | 5,977,694,724.54 | 4,470,213,204.71 | (784,138,202.59) | 146,228.18 | (66,943,616.44) | 9,596,972,338.40 | |
| Total | 13,245,374,860.55 | 4,470,213,204.71 | 78,821,605.75 | 146,228.18 | (489,943,616.44) | 17,304,612,282.75 |
Note 1: On 2022 June 30, the Group of Chongqing Changan Kuayue Automobile Co., Ltd., Beijing Fang’an cresent taxi Co., Ltd., Chongqing Wutong Chelian Technology Co., Ltd. and HainanAnxinxing Information Technology Co., Ltd. did not have the obligation to undertake extra losses, so the excess loss when it occurs, only the long-term equity investment was written down tozero. The excess losses related to the investment in the above three companies were not recognized.Note 2: In March 2022, AVATR. Co., Ltd., a subsidiary of the company, completed capital increase and share expansion and introduced new investors. After the capital increase was completed,AVATR. Co., Ltd. changed from a subsidiary to an associate enterprise.
11. Investment in other equity instruments
In RMB Yuan
| Item | Accumulative changes in fair value included in other comprehensive income | Fair value | Dividends Income | Reason for being designated as fair value through other comprehensive income |
| Corun Hybrid Power Technology Co. Ltd | 5,959,600.00 | 205,959,600.00 | Unlisted equity instruments | |
| China South Industry Group Finance Co., Ltd. | 174,979,200.00 | 332,000,000.00 | 143,737,428.00 | Unlisted equity instruments |
| Guoqi (Beijing) Intelligent Network Association Automotive Research Institute Co., Ltd. | 100,000.00 | 50,100,000.00 | Unlisted equity instruments | |
| Guoqi Automobile Power Cell Research Co., Ltd. | 6,700,000.00 | 46,700,000.00 | 73,034.00 | Unlisted equity instruments |
| China South Industry Group Financial Leasing Co., Ltd. | 12,098,000.00 | 42,650,000.00 | 411,666.67 | Unlisted equity instruments |
| Zhong Fa Lian Investment Co., Ltd. | 21,000,000.00 | 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 | |||
| Total | 199,836,800.00 | 701,409,600.00 | 144,222,128.67 |
12. Investment property
Cost Model
In RMB Yuan
| Item | Buildings | Total |
| I. Original cost | ||
| 1. Opening balance | 10,050,100.00 | 10,050,100.00 |
| 2. Increase in current period | ||
| 3. Decrease in current period | ||
| 4. Ending balance | 10,050,100.00 | 10,050,100.00 |
| II. Accumulated depreciationand amortization | ||
| 1. Opening balance | 3,400,673.40 | 3,400,673.40 |
| 2. Increase in current period | 113,355.78 | 113,355.78 |
| 3. Decrease in current period | ||
| 4. Ending balance | 3,514,029.18 | 3,514,029.18 |
| III. Net Value | ||
| 1. Ending | 6,536,070.82 | 6,536,070.82 |
| 2. Beginning | 6,649,426.60 | 6,649,426.60 |
The investment property is rented to third parties in the form of operating lease.
As at 30 June 2022, there was no investment property without property certificate (As at 31 December 2021: Nil).
13. Fixed assets
(1) Details of fixed assets
In RMB Yuan
| Item | Buildings | Machinery | Vehicles | Other Equipment | Total |
| I. Original cost | |||||
| Beginning | 9,881,301,151.22 | 26,013,931,324.85 | 1,421,170,657.53 | 9,442,094,973.15 | 46,758,498,106.75 |
| Purchase | 1,027,877.86 | 24,462,217.92 | 27,079,122.51 | 52,569,218.29 | |
| Transfer from Construction in progress | 3,092,478.77 | 130,267,336.64 | 452,607,358.73 | 380,740,958.65 | 966,708,132.79 |
| Disposal | 37,092,534.12 | 39,875,006.43 | 88,671,767.66 | 68,810,766.15 | 234,450,074.36 |
| Government grants | 45,824,900.00 | 86,596,292.00 | 132,421,192.00 | ||
| Other decrease | 12,196,144.18 | 7,082,213.50 | 433,482.76 | 8,540,318.14 | 28,252,158.58 |
| Ending | 9,836,132,829.55 | 26,075,878,759.48 | 1,698,076,473.84 | 9,772,563,970.02 | 47,382,652,032.89 |
| II.Accumulated depreciation | |||||
| Beginning | 2,830,770,398.43 | 14,770,986,696.00 | 537,352,883.68 | 4,988,689,213.76 | 23,127,799,191.87 |
| Accrual | 187,735,732.35 | 886,707,955.54 | 99,288,960.32 | 261,948,492.69 | 1,435,681,140.90 |
| Disposal | 26,061,113.31 | 35,323,317.76 | 64,225,749.84 | 16,129,740.61 | 141,739,921.52 |
| Other decrease | 205,021.23 | 993,150.09 | 1,198,171.32 | ||
| Ending | 2,992,445,017.47 | 15,622,371,333.78 | 572,211,072.93 | 5,233,514,815.75 | 24,420,542,239.93 |
| III.Impairment Provision | |||||
| Beginning | 99,421,052.16 | 1,772,417,722.74 | 99,933,602.55 | 332,966,687.27 | 2,304,739,064.72 |
| Accrual | 123,779,668.17 | 318,225.48 | 41,020,062.45 | 165,117,956.10 | |
| Disposal | 147,418.54 | 677,471.46 | 16,391,541.84 | 4,185,694.36 | 21,402,126.20 |
| Ending | 99,273,633.62 | 1,895,519,919.45 | 83,860,286.19 | 369,801,055.36 | 2,448,454,894.62 |
| IV. Net Value | |||||
| Ending | 6,744,414,178.46 | 8,557,987,506.25 | 1,042,005,114.72 | 4,169,248,098.91 | 20,513,654,898.34 |
| Beginning | 6,951,109,700.63 | 9,470,526,906.11 | 783,884,171.30 | 4,120,439,072.12 | 21,325,959,850.16 |
(2) Fixed assets that are temporarily unused
On June 30, 2022, the fixed assets with a book value of RMB 125,476,018.72 (December 31, 2021: RMB 150,232,534.30) were temporarily idle due to product upgrading and other reasons.
(3) The fixed assets which are rented out under operating leases
In RMB Yuan
| Item | Ending |
| Buildings | 293,881,396.48 |
| Machinery | 47,076,051.90 |
| Vehicles | 1,007,156,364.29 |
| Other Equipment | 4,084,478.11 |
14. Construction in progress
(1) Details of construction in progress
In RMB Yuan
| Item | Ending balance | Beginning balance | ||||
| Balance | Provision | Carrying amount | Balance | Provision | Carrying amount | |
| Mini-bus production equipment | 153,198,664.88 | 153,198,664.88 | 110,892,336.09 | 110,892,336.09 | ||
| Car production equipment | 285,522,690.10 | 21,313,648.08 | 264,209,042.02 | 304,941,771.34 | 21,313,648.08 | 283,628,123.26 |
| Engine plant | 163,363,062.61 | 163,363,062.61 | 127,069,581.90 | 127,069,581.90 | ||
| Vehicle research institution | 17,612,321.21 | 17,612,321.21 | 27,661,450.64 | 27,661,450.64 | ||
| Car production Project of Hefei Changan | 22,273,791.97 | 22,273,791.97 | 13,073,052.88 | 13,073,052.88 | ||
| Light vehicle project | 20,953,663.84 | 20,953,663.84 | 20,953,663.84 | 20,953,663.84 | ||
| Others | 511,656,556.17 | 22,885,996.12 | 488,770,560.05 | 927,276,352.74 | 50,378,021.92 | 876,898,330.82 |
| Total | 1,174,580,750.78 | 44,199,644.20 | 1,130,381,106.58 | 1,531,868,209.43 | 71,691,670.00 | 1,460,176,539.43 |
(2) Movements of significant construction in progress
In RMB Yuan
| Item | Budget | Beginning balance | Addition | Transferred to fixed assets | Other deduction | Ending balance | The project investments’ proportion of budget (%) | Progress of construction (%) | Source of funds |
| Mini-bus production equipment | 1,093,490,000.00 | 110,892,336.09 | 76,807,358.31 | 34,431,295.01 | 69,734.51 | 153,198,664.88 | 78.00 | 78.00 | Self-funded |
| Car production equipment | 3,650,155,000.00 | 283,628,123.26 | 6,581,219.57 | 26,000,300.81 | 264,209,042.02 | 76.00 | 76.00 | Self-raised and additional issuance | |
| Engine plant | 4,659,071,200.00 | 127,069,581.90 | 57,103,331.39 | 20,809,850.68 | 163,363,062.61 | 77.00 | 77.00 | Self-raised and additional issuance | |
| Vehicle research institution | 2,099,060,000.00 | 27,661,450.64 | 18,263,706.59 | 28,312,836.02 | 17,612,321.21 | 86.00 | 86.00 | Self-funded | |
| Car production project of Hefei Changan | 3,949,800,000.00 | 13,073,052.88 | 9,200,739.09 | 22,273,791.97 | 87.00 | 87.00 | Self-raised and additional issuance | ||
| Light vehicle project | 520,083,400.00 | 20,953,663.84 | 20,953,663.84 | 68.00 | 68.00 | Self-funded | |||
| Car-sharing project | 721,192,899.46 | 451,943,328.88 | 45,371,719.67 | 223,877,850.91 | Self-funded | ||||
| Others | 155,705,431.36 | 619,556,531.14 | 405,210,521.39 | 105,158,731.97 | 264,892,709.14 | Self-funded | |||
| Total | 1,460,176,539.43 | 787,512,886.09 | 966,708,132.79 | 150,600,186.15 | 1,130,381,106.58 |
(3) The movement of impairment for construction in progress is as follows:
In RMB Yuan
| Item | Beginning balance | Addition | Deduction | Ending balance |
| June 30, 2022 | 71,691,670.00 | 27,492,025.80 | 44,199,644.20 | |
| December 31, 2021 | 71,352,959.12 | 558,034.00 | 219,323.12 | 71,691,670.00 |
15. Right-of-use assets
In RMB Yuan
| Item | Buildings | Total |
| I. Original cost | ||
| 1. Beginning | 92,864,546.90 | 92,864,546.90 |
| 2. Purchase | 77,438,068.15 | 77,438,068.15 |
| 3. Disposal | 2,689,483.42 | 2,689,483.42 |
| 4. Other deduction | 78,792,400.21 | 78,792,400.21 |
| 5. Ending | 88,820,731.42 | 88,820,731.42 |
| II. Accumulated depreciation | ||
| 1. Beginning | 26,551,483.92 | 26,551,483.92 |
| 2. Purchase | 16,605,322.98 | 16,605,322.98 |
| 3. Disposal | 582,721.40 | 582,721.40 |
| 4. Other deduction | 3,770,986.88 | 3,770,986.88 |
| 5. Ending | 38,803,098.62 | 38,803,098.62 |
| III. Carrying amount | ||
| 1. Ending | 50,017,632.80 | 50,017,632.80 |
| 2. Beginning | 66,313,062.98 | 66,313,062.98 |
16. Intangible assets
(1) Details of intangible assets
In RMB Yuan
| Item | Land use rights | Patent | Non-patent technology | Software use rights | Trademark use rights | Total |
| I. Original cost | ||||||
| Beginning | 2,284,655,025.60 | 6,643,349,368.90 | 785,360,545.01 | 211,864,157.55 | 9,925,229,097.06 | |
| Purchase | 85,556,571.30 | 2,950,592.78 | 7,057,273.61 | 95,564,437.69 | ||
| Internal research and development | 441,434,828.55 | 441,434,828.55 | ||||
| Disposal | 46,688,334.00 | 46,688,334.00 | ||||
| Ending | 2,237,966,691.60 | 85,556,571.30 | 7,087,734,790.23 | 792,417,818.62 | 211,864,157.55 | 10,415,540,029.30 |
| II. Accumulated amortization | ||||||
| Beginning | 440,258,024.63 | 3,969,781,572.32 | 671,428,815.01 | 211,786,800.00 | 5,293,255,211.96 |
| Accrual | 25,049,708.12 | 2,851,885.71 | 481,902,072.11 | 18,236,655.74 | 77,357.55 | 528,117,679.23 |
| Disposal | 20,568,118.91 | - | - | - | 20,568,118.91 | |
| Ending | 444,739,613.84 | 2,851,885.71 | 4,451,683,644.43 | 689,665,470.75 | 211,864,157.55 | 5,800,804,772.28 |
| III. Impairment provision | ||||||
| Beginning | 222,358,304.26 | 23,617,923.17 | 245,976,227.43 | |||
| Accrual | 2,920,133.24 | 2,920,133.24 | ||||
| Ending | 225,278,437.50 | 23,617,923.17 | 248,896,360.67 | |||
| IV、Carrying amount | ||||||
| Ending | 1,793,227,077.76 | 82,704,685.59 | 2,410,772,708.30 | 79,134,424.70 | 4,365,838,896.35 | |
| Beginning | 1,844,397,000.97 | 2,451,209,492.32 | 90,313,806.83 | 77,357.55 | 4,385,997,657.67 |
As of June 30, 2022, intangible assets formed through internal research and development accounted for 55.22% of the year-end bookvalue of intangible assets (December 31, 2021: 55.89%).
As of June 30, 2022, there is no land use rights that have not completed the land use right certificate (December 31, 2021: Nil).
17. Development expenditure
In RMB Yuan
| Item | Beginning balance | Addition Internal research and development | Deduction | Ending balance | ||
| Recognized as intangible assets | Charged to income Statement of the current year | Other deduction | ||||
| Automobile Development | 727,568,248.78 | 602,999,114.43 | 441,434,828.55 | 86,143,252.73 | 251,509,079.07 | 551,480,202.86 |
| Total | 727,568,248.78 | 602,999,114.43 | 441,434,828.55 | 86,143,252.73 | 251,509,079.07 | 551,480,202.86 |
18. Development expenditure
(1) Original book value of goodwill
In RMB Yuan
| Item | Beginning balance | Addition | Deduction | Ending balance |
| Hebei Changan Automobile Co., Ltd | 9,804,394.00 | 9,804,394.00 | ||
| Nanjing Changan Automobile Co., Ltd | ||||
| AVATR. Co., Ltd | 39,078,794.37 | 39,078,794.37 | ||
| Total | 48,883,188.37 | 39,078,794.37 | 9,804,394.00 |
Note: The deduction of goodwill of AVATR. Co., Ltd in the current period is due to the impact of changes in the scope of consolidationcaused by the loss of control.
(2) Provision for goodwill
In RMB Yuan
| Item | Beginning balance | Addition | Deduction | Ending balance |
| Nanjing Changan Automobile Co., Ltd. | 73,465,335.00 | 73,465,335.00 | ||
| Total | 73,465,335.00 | 73,465,335.00 |
19. Long-term deferred expenses
In RMB Yuan
| Item | Beginning balance | Addition | Deduction | Other deduction | Ending balance |
| Long-term deferred expenses | 15,032,814.19 | 8,501,069.16 | 1,826,783.84 | 21,707,099.51 | |
| Total | 15,032,814.19 | 8,501,069.16 | 1,826,783.84 | 21,707,099.51 |
20. Deferred tax assets and liabilities
(1) Deferred income tax assets that are not offset:
In RMB Yuan
| Item | Ending balance | Beginning balance | ||
| Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |
| Assets provision | 2,871,396,575.12 | 430,709,486.27 | 2,777,356,777.37 | 416,729,166.66 |
| Accrued expenses and contingent liabilities | 6,989,431,192.52 | 1,048,414,678.88 | 6,824,636,821.50 | 1,034,344,964.94 |
| Unpaid tech development expense and advertisement expense | 571,216,316.77 | 85,682,447.52 | 371,602,577.37 | 55,740,386.60 |
| Deferred income | 2,938,710,999.31 | 440,806,649.89 | 2,897,724,045.52 | 434,658,606.83 |
| Unpaid salary and bonus and others | 2,864,638,006.49 | 429,695,700.98 | 2,252,471,662.68 | 339,346,391.96 |
| Total | 16,235,393,090.21 | 2,435,308,963.54 | 15,123,791,884.44 | 2,280,819,516.99 |
(2) Deferred income tax liabilities that are not offset:
In RMB Yuan
| Item | Ending balance | Beginning balance | ||
| Taxable temporary differences | Deferred tax liabilities | Taxable temporary differences | Deferred tax liabilities | |
| Changes in fair value of financial assets | 392,235,421.84 | 58,835,313.28 | 366,226,945.07 | 54,934,041.76 |
| Fair value adjustment of business combination not under common control | 214,453,003.57 | 32,167,950.54 | 223,598,108.60 | 33,539,716.29 |
| Long-term equity investment | 824,671,946.85 | 123,700,792.03 | 824,671,946.85 | 123,700,792.03 |
| Other | 33,336,067.93 | 5,000,410.19 | 35,116,281.93 | 5,267,442.29 |
| Total | 1,464,696,440.19 | 219,704,466.04 | 1,449,613,282.45 | 217,441,992.37 |
(3) Details of unrecognized deferred tax assets
In RMB Yuan
| Item | Ending balance | Beginning balance |
| The deductible temporary difference | 1,772,143,525.42 | 2,557,584,132.14 |
| The deductible tax loss | 4,693,437,982.83 | 7,599,963,296.27 |
| Total | 6,465,581,508.25 | 10,157,547,428.41 |
Note: Due to the uncertainty of whether there will be enough taxable profit in future to utilize the above deductible loss, no deferredtax assets have been recognized accordingly.
(4) Maturity period for unrecognized deductible tax losses:
In RMB Yuan
| Year | Ending balance | Beginning balance |
| 2022 | 160,009,422.55 | 186,827,208.01 |
| 2023 | 651,217,805.08 | 719,486,343.29 |
| 2024 | 642,608,818.28 | 644,243,430.69 |
| 2025 | 662,132,493.46 | 804,477,322.53 |
| 2026 | 177,704,323.94 | 191,081,327.12 |
| 2027 and beyond | 2,399,765,119.52 | 5,053,847,664.63 |
| Total | 4,693,437,982.83 | 7,599,963,296.27 |
21. Short-term loans
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Mortgage loans | 19,000,000.00 | 19,000,000.00 |
| Guaranteed loan | 27,166,500.00 | |
| Total | 46,166,500.00 | 19,000,000.00 |
As at 30 June 2022, there was no overdue short-term loan (as at 31 December 2021: Nil).
22. Notes payable
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Commercial acceptance bill | 3,438,819,091.41 | 5,419,108,409.88 |
| Bank acceptance bill | 23,482,587,410.81 | 18,873,159,961.24 |
| Total | 26,921,406,502.22 | 24,292,268,371.12 |
As at 30 June 2022, there were no significant accounts payable aged over one year (as at 31 December 2021: Nil).
23. Accounts payable
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Accounts payable | 23,994,999,761.80 | 23,650,604,870.98 |
| Total | 23,994,999,761.80 | 23,650,604,870.98 |
As at 30 June 2022, there were no significant accounts payable aged over one year (as at 31 December 2021: Nil).
24. Contract liabilities
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Advance payment | 4,267,583,038.93 | 9,274,445,050.60 |
| Advance service payment | 688,487,935.99 | 566,064,463.79 |
| Total | 4,956,070,974.92 | 9,840,509,514.39 |
25. Payroll payable
(1) Payroll payable
In RMB Yuan
| Item | Beginning balance | Addition | Deduction | Ending balance |
| Short term salary benefits | 2,474,414,390.26 | 4,166,290,955.51 | 3,428,026,533.58 | 3,212,678,812.19 |
| Defined contribution plans | 89,216,538.26 | 295,145,597.47 | 271,516,773.31 | 112,845,362.42 |
| Early retirement benefits | 2,940,000.00 | - | 1,664,381.96 | 1,275,618.04 |
| Total | 2,566,570,928.52 | 4,461,436,552.98 | 3,701,207,688.85 | 3,326,799,792.65 |
(2) Short term salary benefits：
In RMB Yuan
| Item | Beginning balance | Addition | Deduction | Ending balance |
| 1. Salary, bonus, allowance and subsidy | 2,051,402,711.53 | 3,545,065,703.78 | 2,739,493,804.21 | 2,856,974,611.10 |
| 2. Employee benefit | 50,630,435.22 | 143,683,960.45 | 192,022,028.36 | 2,292,367.31 |
| 3. Social insurance | 33,522,353.03 | 226,556,597.67 | 206,451,388.46 | 53,627,562.24 |
| Medical insurance | 21,021,344.24 | 206,179,667.73 | 186,302,126.78 | 40,898,885.19 |
| Industrial injury insurance | 11,118,683.26 | 20,113,506.84 | 18,503,897.89 | 12,728,292.21 |
| Maternity insurance | 1,382,325.53 | 263,423.10 | 1,645,363.79 | 384.84 |
| 4. Housing accumulation fund | 82,772,742.30 | 120,578,347.77 | 138,180,124.15 | 65,170,965.92 |
| 5. Labor fund and employee education fund | 256,086,148.18 | 118,762,733.07 | 146,235,575.63 | 228,613,305.62 |
| 6. Others | 11,643,612.77 | 5,643,612.77 | 6,000,000.00 | |
| Total | 2,474,414,390.26 | 4,166,290,955.51 | 3,428,026,533.58 | 3,212,678,812.19 |
(3) Defined contribution plans：
In RMB Yuan
| Item | Beginning balance | Addition | Deduction | Ending balance |
| 1. Basic retirement | 79,483,988.05 | 285,176,572.20 | 262,988,606.04 | 101,671,954.21 |
| security | ||||
| 2. Unemployment insurance | 9,732,550.21 | 9,969,025.27 | 8,528,167.27 | 11,173,408.21 |
| Total | 89,216,538.26 | 295,145,597.47 | 271,516,773.31 | 112,845,362.42 |
The salary, bonus, allowance and subsidy, employee benefits and other social insurances mentioned above are paid in time accordingto related laws and regulations and sets of the Group.
26. Taxes payable
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Value-added tax | 283,161,424.83 | 226,203,631.00 |
| Consumption tax | 313,679,284.06 | 677,686,833.74 |
| Corporate income tax | 21,973,424.89 | 105,632,071.69 |
| City maintenance and construction tax | 62,868,525.34 | 40,480,950.08 |
| Others | 25,810,497.92 | 71,309,911.01 |
| Total | 707,493,157.04 | 1,121,313,397.52 |
27. Other payables
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Purchase and construction of fixed assets, intangible assets and engineering deposits | 828,054,799.13 | 949,561,307.22 |
| New energy subsidy collection and payment | 807,637,855.00 | 169,127,065.00 |
| Customer and supplier margin | 755,711,023.28 | 614,910,836.94 |
| Treasury stock repurchase | 655,812,327.60 | 655,812,327.60 |
| Advertisement fees | 435,181,058.99 | 890,826,555.71 |
| Storage fees and freight | 381,651,926.24 | 159,463,618.29 |
| Maintenance fees | 206,984,685.67 | 212,946,188.78 |
| Advanced receipt of land and plant disposal fees | 140,000,000.00 | |
| Capital increase from third parties received in advance by subsidiaries | 253,750,000.00 | |
| Equity disposal payment | 89,444,954.88 | 61,787,880.00 |
| Others | 815,849,609.20 | 594,440,565.15 |
| Total | 5,116,328,239.99 | 4,562,626,344.69 |
28. Non-current liability within 1 year
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Long-term loan within 1 year | 654,300,000.00 | 354,300,000.00 |
| Long-term payables within 1 year | 213,312,142.21 | 154,593,759.05 |
| Lease liabilities within 1 year | 19,964,461.90 | 24,945,824.52 |
| Total | 887,576,604.11 | 533,839,583.57 |
29. Other current liabilities
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Accrued commercial discount payable | 3,260,659,595.98 | 3,367,324,452.66 |
| Accrued transportation fee | 805,314,435.84 | 729,390,155.06 |
| Accrued market development expense | 564,309,358.38 | 808,031,552.57 |
| Accrued technology royalty | 402,214,421.99 | 342,675,110.58 |
| Accrued integrated services fee | 79,555,300.00 | 79,555,300.00 |
| Accrued labor service fee | 76,656,610.57 | 63,197,022.32 |
| Accrued utilities | 41,279,074.15 | 48,068,943.51 |
| Accrued negative points for fuel consumption | - | 33,239,495.00 |
| Others | 232,310,379.25 | 209,476,997.52 |
| Total | 5,462,299,176.16 | 5,680,959,029.22 |
30. Long-term Loan
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Credit loan | 694,300,000.00 | 954,300,000.00 |
| Deduction: Loan within 1 year | 654,300,000.00 | 354,300,000.00 |
| Net Long-term Loan | 40,000,000.00 | 600,000,000.00 |
As at June 30, 2022, the interest rates of the above loans were 1.00%-3.00% (as at 31 December 2021: 1.00%-3.00%).
As at June 30, 2022, there is no overdue long-term loans (as at 31 December 2021: Nil).
31. Lease liabilities
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Lease liabilities | 48,166,482.15 | 63,625,560.11 |
| Less：Lease liabilities within 1 year | 19,964,461.90 | 24,945,824.52 |
| Net lease liabilities | 28,202,020.25 | 38,679,735.59 |
32. Long-term payables
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Long-term payables | 467,780,397.91 | 642,513,537.69 |
| Special payables | 163,222,915.60 | 182,959,952.39 |
| Total | 631,003,313.51 | 825,473,490.08 |
(1) Long-term payables:
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Purchase of fixed assets | 681,092,540.12 | 797,107,296.74 |
| Less：Long-term payables within 1 year | 213,312,142.21 | 154,593,759.05 |
| Total | 467,780,397.91 | 642,513,537.69 |
(2) Special payables:
In RMB Yuan
| Item | Beginning balance | Addition | Deduction | Ending balance |
| Land relocation compensation of Nanjing changan | 55,350,709.40 | 55,350,709.40 | ||
| Intelligent manufacturing project | 82,777,201.36 | 35,740,700.00 | 11,318,391.82 | 107,199,509.54 |
| Lightweight design of automobile structure | 18,903,766.50 | 2,800,000.00 | 4,801,572.92 | 16,902,193.58 |
| Others | 25,928,275.13 | 16,140,816.00 | 2,947,878.65 | 39,121,212.48 |
| Total | 182,959,952.39 | 54,681,516.00 | 74,418,552.79 | 163,222,915.60 |
33. Long-term payroll payable
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Net obligation of defined benefit plan | 27,665,760.32 | 30,917,000.00 |
| Early retirement | 8,971,069.20 | 8,186,000.00 |
| Total | 36,636,829.52 | 39,103,000.00 |
34. Contingent liabilities
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Warranty | 3,770,948,830.71 | 3,295,272,783.50 |
| Contingent liabilities of contract performance | 509,056,929.02 | 543,742,894.34 |
| Total | 4,280,005,759.73 | 3,839,015,677.84 |
35. Deferred income
In RMB Yuan
| Item | Beginning balance | Addition | Deduction | Ending balance |
| Government grants related to assets | 224,903,605.46 | 121,411,192.00 | 132,421,192.00 | 213,893,605.46 |
| Government grants related to gains | 699,846,125.66 | 10,531,250.00 | 424,791,568.19 | 285,585,807.47 |
| Total | 924,749,731.12 | 131,942,442.00 | 557,212,760.19 | 499,479,412.93 |
Details of government grants are as follows:
In RMB Yuan
| Liability | Beginning balance | Addition | Deduction | Ending balance |
| Related to assets: | 224,903,605.46 | 121,411,192.00 | 132,421,192.00 | 213,893,605.46 |
| Production and construction subsidies | 158,141,323.00 | 121,411,192.00 | 121,411,192.00 | 158,141,323.00 |
| Other government subsidies | 66,762,282.46 | 11,010,000.00 | 55,752,282.46 | |
| Related to gains: | 699,846,125.66 | 10,531,250.00 | 424,791,568.19 | 285,585,807.47 |
| R&D technology subsidies | 569,842,539.65 | 359,884,872.76 | 209,957,666.89 | |
| Other government subsidies | 130,003,586.01 | 10,531,250.00 | 64,906,695.43 | 75,628,140.58 |
| Total | 924,749,731.12 | 131,942,442.00 | 557,212,760.19 | 499,479,412.93 |
36. Other non-current liabilities
In RMB Yuan
| Item | Ending balance | Beginning balance |
| Advance service payment | 1,532,238,553.86 | 1,352,292,332.21 |
| Deduction: Advance service payment within 1 year | 688,487,935.99 | 566,064,463.79 |
| Net other non-current liabilities | 843,750,617.87 | 786,227,868.42 |
37. Share capital
In RMB Yuan
| Beginning balance | Changes（+，-） | Ending balance | ||||
| Additional issued | Stock dividend | Provident fund transfer | Others | |||
| I. Shares with sales restrictions | 519,818,865.00 | 155,945,659.00 | 675,764,524.00 | |||
| 1. State-owned legal person shares | 396,393,645.00 | 118,918,093.00 | 515,311,738.00 | |||
| 2. Other domestic shares | 122,490,320.00 | 36,747,096.00 | 159,237,416.00 | |||
| Including: Domestic legal person shares | ||||||
| Domestic natural person | 122,490,320.00 | 36,747,096.00 | 159,237,416.00 | |||
| shares | ||||||
| 3. Foreign shares | 934,900.00 | 280,470.00 | 1,215,370.00 | |||
| Including: Foreign legal person shares | ||||||
| Foreign natural person shares | 934,900.00 | 280,470.00 | 1,215,370.00 | |||
| II. Shares without sales restrictions | 7,112,334,537.00 | 2,133,700,361.00 | 9,246,034,898.00 | |||
| 1.Ordinary shares denominated in RMB | 5,849,553,939.00 | 1,754,866,182.00 | 7,604,420,121.00 | |||
| 2. Domestic listed foreign shares | 1,262,780,598.00 | 378,834,179.00 | 1,641,614,777.00 | |||
| III. Total shares | 7,632,153,402.00 | 2,289,646,020.00 | 9,921,799,422.00 |
According to the 2021 profit distribution and provident fund transfer plan, the capital reserve will be converted to 3 shares for every10 shares. After the conversion, the total share capital will increase by RMB 2,289,646,020 and the capital reserve will decrease byRMB 2,289,646,020.
38. Capital reserves
In RMB Yuan
| Item | Beginning balance | Addition | Deduction | Ending balance |
| Share premium | 8,774,823,352.59 | 2,289,646,020.00 | 6,485,177,332.59 | |
| Share-based payments | 268,539,867.92 | 192,310,900.00 | 460,850,767.92 | |
| Capital reserve transferred arising from the old standards | 44,496,899.00 | 44,496,899.00 | ||
| reserve of equity investments | 17,015,985.20 | 17,015,985.20 | ||
| Others | 671,317,255.67 | 663,566,110.70 | 1,334,883,366.37 | |
| Total | 9,776,193,360.38 | 855,877,010.70 | 2,289,646,020.00 | 8,342,424,351.08 |
In 2022, the increase in other capital reserves amounting to RMB 663,566,110.70 was due to the capital increase of the minorityshareholders of Chongqing Changan New Energy Vehicle Technology Co., Ltd., an associate company of the Company.
39. Treasury stock
In RMB Yuan
| Item | Beginning balance | Addition | Deduction | Ending balance |
| Treasury stock | 655,812,327.60 | 655,812,327.60 | ||
| Total | 655,812,327.60 | 655,812,327.60 |
40. Other comprehensive income
In RMB Yuan
| Item | Beginning balance | Amount for this reporting period | Ending balance | |||||
| Amount before tax | Deduct: amounts transferred to income statement which were recognized in other comprehensive income in prior period | Deduct: other comprehensive income in the previous period and transferred to retained earnings in the current period | Deduct: Income tax | Amount attributable to owners | Amount attributable to minority interests | |||
| I. Other comprehensive income that cannot be transferred to profit or loss under the equity method | 166,196,226.11 | 166,196,226.11 | 166,196,226.11 | |||||
| Change in net liability or assets from defined benefit plan | (297,000.00) | (297,000.00) | (297,000.00) | |||||
| Other comprehensive income that cannot be transferred to profit or loss under the equity method | (3,368,053.89) | (3,368,053.89) | (3,368,053.89) | |||||
| Changes in the fair value of other equity instrument investments | 169,861,280.00 | 169,861,280.00 | 169,861,280.00 | |||||
| II. Other comprehensive income will be reclassified to profit or loss in subsequent period | (96,753,756.58) | 121,654.81 | (96,632,101.77) | (96,632,101.77) | ||||
| Other comprehensive income that can be transferred to profit or loss under the equity method | 146,228.18 | 146,228.18 | 146,228.18 | |||||
| Foreign currency translation difference | (96,753,756.58) | (24,573.37) | (96,778,329.95) | (96,778,329.95) | ||||
| Total | 69,442,469.53 | 121,654.81 | 69,564,124.34 | 69,564,124.34 | ||||
41. Special reserves
In RMB Yuan
| Item | Beginning balance | Addition | Deduction | Ending balance |
| Safety fund | 27,988,260.61 | 46,183,489.83 | 25,024,594.96 | 49,147,155.48 |
| Total | 27,988,260.61 | 46,183,489.83 | 25,024,594.96 | 49,147,155.48 |
42. Surplus reserves
In RMB Yuan
| Item | Beginning balance | Addition | Deduction | Ending balance |
| Statutory surplus | 2,982,292,413.67 | 2,982,292,413.67 | ||
| Total | 2,982,292,413.67 | 2,982,292,413.67 |
43. Retained earnings
In RMB Yuan
| Item | Current period | Prior period |
| Retained earnings at beginning of the year | 35,900,674,525.13 | 34,315,048,892.26 |
| Add: Profits attributable to parent company for the current year | 5,857,626,135.78 | 1,729,245,208.60 |
| Less: Ordinary share dividend of cash | 1,778,856,191.54 | 1,666,243,360.54 |
| Retained earnings at the end of year | 39,979,444,469.37 | 34,378,050,740.32 |
44. Operating revenue and cost
In RMB Yuan
| Item | Amount for this period | Amount for prior period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 55,281,269,652.99 | 44,486,900,457.55 | 55,859,466,497.39 | 47,581,200,934.60 |
| Other business | 1,292,298,740.72 | 873,190,024.65 | 925,165,401.68 | 505,476,294.61 |
| Total | 56,573,568,393.71 | 45,360,090,482.20 | 56,784,631,899.07 | 48,086,677,229.21 |
45. Tax and surcharges
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
| Consumption tax | 1,469,234,309.60 | 1,599,192,250.70 |
| City maintenance and construction tax | 194,046,087.99 | 196,961,006.14 |
| Educational surcharge | 133,244,356.31 | 134,489,938.43 |
| Others | 149,775,477.87 | 157,051,471.80 |
| Total | 1,946,300,231.77 | 2,087,694,667.07 |
46. Operating expenses
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
| Sales service fee | 1,151,982,258.69 | 871,026,270.21 |
| Promotion, advertising fee | 552,426,701.41 | 791,462,570.10 |
| Payroll and welfare | 297,621,384.05 | 240,101,135.80 |
| Transportation and storage fees | 205,973,233.78 | 168,961,271.58 |
| Travelling expenses | 30,218,731.48 | 30,394,898.13 |
| Package expenses | 28,619,986.39 | 14,493,447.37 |
| Others | 18,487,525.97 | 29,675,719.00 |
| Total | 2,285,329,821.77 | 2,146,115,312.19 |
47. General and administrative expenses
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
| Payroll and welfare | 1,766,803,412.30 | 1,216,671,339.99 |
| Depreciation and amortization | 110,312,454.37 | 117,765,985.28 |
| Traffic expenses and travelling expenses | 21,235,281.45 | 27,865,566.05 |
| Negative points for fuel consumption | - | 636,271,194.34 |
| Others | 285,683,156.98 | 218,572,958.84 |
| Total | 2,184,034,305.10 | 2,217,147,044.50 |
48. Research and development expenses
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
| Payroll and welfare | 819,010,682.93 | 592,150,357.04 |
| Depreciation and amortization | 614,117,321.15 | 607,589,508.63 |
| Subcontract fee | 272,218,189.13 | 147,374,115.88 |
| Material fee | 112,662,406.81 | 70,981,081.39 |
| Travelling research fee | 20,043,210.47 | 12,194,021.56 |
| Test fee | 17,479,289.63 | 35,455,478.77 |
| Others | 76,763,044.55 | 29,838,798.89 |
| Total | 1,932,294,144.67 | 1,495,583,362.16 |
49. Financial income
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
| Interest income | 438,428,075.90 | 281,294,223.92 |
| Less: Foreign exchange gain or loss | (40,733,323.13) | 8,533,687.86 |
| Interest expense | 17,892,411.14 | 26,372,186.29 |
| Others | 23,270,638.90 | 12,611,859.12 |
| Total | 437,998,348.99 | 233,776,490.65 |
50. Other income
Government subsidies related to daily activities
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
| Production and construction subsidies | 186,910,289.65 | 106,783,041.12 |
51. Investment income
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
| Long-term equity investment losses accounted for by the equity method | 78,821,605.75 | 250,708,951.37 |
| The investment income of financial asset held for trading during its holding period | 2,690,400.00 | |
| Dividend income from remaining investments in other equity instruments | 144,222,128.67 | 70,204,197.65 |
| Gains from the remeasurement of the remaining equity at fair value after the loss of control | 2,128,305,938.85 | |
| Interest income from entrusted loan | 6,959,316.06 | |
| Total | 2,354,040,073.27 | 327,872,465.08 |
52. Fair value change
In RMB Yuan
| Source of income from changes in fair value | Amount for this period | Amount for prior period |
| Financial assets held for trading | 26,136,888.77 | 15,734,698.73 |
| Total | 26,136,888.77 | 15,734,698.73 |
53. Impairment loss of credit
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
| Bad debt for account receivable | 10,913,106.06 | 3,471,684.54 |
| Bad debt for other receivables | (138,419.44) | 14,557.81 |
| Total | 10,774,686.62 | 3,486,242.35 |
54. Impairment loss on assets
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
| Impairment of inventory | 72,131,985.60 | 75,510,749.47 |
| Impairment of fixed assets | 165,117,956.10 | 133,683,760.35 |
| Impairment of intangible assets | 2,920,133.24 | 6,685,373.29 |
| Impairment of contract assets | 1,657,510.52 | (20,192,776.00) |
| Total | 241,827,585.46 | 195,687,107.11 |
55. Gain on disposal of assets
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
| Gain on disposal of fixed-assets | 60,093,947.79 | 119,487,419.99 |
| Gain on disposal of intangible assets | 8,150,134.49 | 481,579,441.34 |
| Total | 68,244,082.28 | 601,066,861.33 |
56. Non-operating income
In RMB Yuan
| Item | Amount for this period | Amount for prior period | Amount recognized in current period as non-recurring profit and loss |
| Fines, penalties and others | 54,366,637.51 | 40,983,845.94 | 54,366,637.51 |
| Total | 54,366,637.51 | 40,983,845.94 | 54,366,637.51 |
57. Non-operating expenses
In RMB Yuan
| Item | Amount for this period | Amount for prior period | Amount recognized in current period as non-recurring profit and loss |
| Donation | 10,500,000.00 | ||
| Vehicle reward | 1,711,728.00 | 1,711,728.00 | |
| Fines and penalties | 1,327,232.91 | 559.05 | 1,327,232.91 |
| Others | 1,831,254.32 | 3,603,043.24 | 1,831,254.32 |
| Total | 4,870,215.23 | 14,103,602.29 | 4,870,215.23 |
58. Income tax expense
(1) Table of income tax expense
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
| Current income tax expense | 48,946,847.14 | 188,574,027.41 |
| Deferred income tax expense | (152,226,972.88) | (129,200,581.32) |
| Total | (103,280,125.74) | 59,373,446.09 |
(2) The relationship between profit before tax and income tax expense
In RMB Yuan
| Item | Amount for this period |
| Tax at the applicable tax rate | 5,735,743,241.36 |
| Tax at the applicable tax rate | 860,361,486.20 |
| Impact of different tax rates of subsidiaries | -26,497,167.12 |
| Adjustments to current income tax of previous period | -7,652,635.70 |
| Non-taxable income | -409,245,890.83 |
| Non-deductible costs, expenses and losses | 7,931,779.52 |
| Usage previous deductible losses | -431,737,260.12 |
| Unrecognized deductible temporary differences and deductible losses | -3,568,697.46 |
| Profit or loss attributable to joint ventures and associates | -11,823,240.86 |
| Additional deduction | -81,048,499.38 |
| Income tax expense | (103,280,125.74) |
59. Other comprehensive income
Please refer to notes V, 40.
60. Notes to cash flow statement
(1) Items of cash received relating to other operating activities
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
| Interest income | 438,428,075.90 | 287,599,749.93 |
| Government grants | 401,800,087.37 | 973,828,265.22 |
| Others | 561,189,492.27 | 536,655,063.79 |
| Total | 1,401,417,655.54 | 1,798,083,078.94 |
(2) Items of cash paid relating to other operating activities
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
| Selling expense | 1,980,235,740.95 | 1,705,305,653.87 |
| Administrative expense | 569,553,555.35 | 833,833,985.36 |
| Research and development expenses | 609,764,742.34 | 579,603,711.64 |
| Others | 379,019,456.72 | 236,785,445.40 |
| Total | 3,538,573,495.36 | 3,355,528,796.27 |
(3) Items of cash received relating to other investing activities
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
| Entrusted loan received | 300,000,000.00 | |
| Total | 300,000,000.00 |
(4) Items of cash paid relating to other investing activities
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
| Cash transferred out from the loss of control of the subsidiary | 815,126,333.76 | |
| Total | 815,126,333.76 |
(5) Items of cash received relating to other financing activities
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
| Withdraw for deposit of bill | 715,239,432.26 | 312,220,372.75 |
| Total | 715,239,432.26 | 312,220,372.75 |
(6) Items of cash paid relating to other financing activities
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
| Payment for deposit of bill | 669,560,830.95 | 418,351,512.95 |
| Others | 29,669,861.07 | 241,289.74 |
| Total | 699,230,692.02 | 418,592,802.69 |
61. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
In RMB Yuan
| Supplementary information | Amount for this period | Amount for prior period |
| 1. Cash flows from operating activities calculated by adjusting the net profit | ||
| Net profit | 5,839,023,367.10 | 1,804,981,288.95 |
| Add: Impairment provision for assets | 252,602,272.08 | 199,173,349.46 |
| Depreciation of fixed assets | 1,435,681,140.90 | 1,515,838,567.70 |
| Right-of-use assets depreciation | 16,605,322.98 | 12,224,609.69 |
| Amortization of intangible assets | 528,117,679.23 | 545,011,292.13 |
| Amortization of long-term deferred expense | 1,826,783.84 | 2,670,879.81 |
| Increase in deferred income | (139,049,041.50) | 438,381,053.36 |
| Disposal income on fixed assets, intangible assets and others | (68,244,082.28) | (601,066,861.33) |
| Income of fair value movement | (26,136,888.77) | (15,734,698.73) |
| Financial expense | 17,892,411.14 | 26,372,186.29 |
| Investment income | (2,354,040,073.27) | (327,872,465.08) |
| Increase in deferred tax assets | (154,489,446.55) | (126,334,690.62) |
| Decrease in deferred tax liabilities | 2,262,473.67 | (2,865,890.70) |
| Decrease in inventory | (244,183,357.63) | 1,878,025,569.26 |
| Decrease in operating payables | 1,273,807,337.63 | (206,172,573.97) |
| Increase in operating payables | (722,465,767.08) | 12,441,654,173.66 |
| Share-based payments cost | 192,310,900.00 | 107,618,400.00 |
| Others | 715,388.71 | 6,922,680.49 |
| Net cash flows from operating activities | 5,852,236,420.20 | 17,698,826,870.37 |
| 2．Movement of cash and cash equivalents: | ||
| Ending balance of cash | 51,032,267,488.15 | 46,269,403,600.01 |
| Less: beginning balance of cash | 49,517,916,834.99 | 30,655,968,057.63 |
| Increase in cash and cash equivalents | 1,514,350,653.16 | 15,613,435,542.38 |
(2) Cash and cash equivalents
In RMB Yuan
| Item | Ending balance | Beginning balance |
| I. Cash | ||
| Including: Cash | 6,321.16 | 36,881.35 |
| Bank deposits that can be readily used | 51,032,261,166.99 | 49,517,879,953.64 |
| II. Ending balance of cash and cash equivalents | 51,032,267,488.15 | 49,517,916,834.99 |
62. The assets with ownership or right restricted
In RMB Yuan
| Item | Ending balance | Explanation |
| Cash and cash equivalents | 2,389,515,751.70 | Acceptance bill deposit |
| Note receivables | 8,258,455,824.79 | Pledge for issuing bills payable |
| Fixed assets | 32,955,152.32 | Collateral to obtain working capital |
| Intangible assets | 17,033,287.44 | Collateral to obtain working capital |
| Total | 10,697,960,016.25 |
63. Foreign Monetary Item
In RMB Yuan
| Item | Original Currency | Exchange Rate | Translated to RMB |
| Cash | |||
| Including: USD | 70,006,606.27 | 6.7114 | 469,842,337.32 |
| GBP | 27,395,650.46 | 7.0084 | 191,999,676.68 |
| EUR | 7,877,112.64 | 8.1365 | 64,092,127.00 |
| JPY | 160,087,076.00 | 0.0491 | 7,860,275.43 |
| RUB | 88,621,924.78 | 0.1285 | 11,387,917.33 |
| BRL | 572,874.98 | 1.2825 | 734,712.16 |
| THB | 4,436,622.85 | 0.1906 | 845,620.32 |
| INR | 2,411,981.46 | 0.0852 | 205,500.82 |
| AED | 1.44 | 1.8275 | 2.63 |
| Accounts receivable | |||
| Including: USD | 62,765,596.93 | 6.7114 | 421,245,027.24 |
| EUR | 81,481,822.52 | 7.0084 | 571,057,204.95 |
| GBP | 5,805,891.60 | 8.1365 | 47,239,637.00 |
| Other receivables | |||
| Including: USD | 93,933.61 | 6.7114 | 630,426.03 |
| EUR | 13,240,524.98 | 7.0084 | 92,794,895.27 |
| GBP | 334,950.32 | 8.1365 | 2,725,323.28 |
| JPY | 12,208,320.00 | 0.0491 | 599,428.51 |
| Accounts Payable | |||
| Including: USD | 4,883.96 | 6.7114 | 32,778.21 |
| EUR | 16,652,197.69 | 7.0084 | 116,705,262.29 |
| GBP | 109,663.79 | 8.1365 | 892,279.43 |
| Other Payables | |||
| Including: USD | 119,620.00 | 6.7114 | 802,817.67 |
| GBP | 313,751.00 | 8.1365 | 2,552,835.01 |
64. Government grants
The government grants accounted by the Group with the net method offset the book value of relevant assets and related costs as follows:
In RMB Yuan
| Amount for this period | Amount for prior period | |
| Government grants related to assets | 132,421,192.00 | 143,531,402.87 |
| Write down: Fixed assets | 132,421,192.00 | 143,531,402.87 |
| Intangible assets | ||
| Government grants related to income | 177,846,131.22 | 255,909,824.92 |
| Write down: Operating cost | 73,489,574.95 | 78,668,498.38 |
| Operating expenses | 964,950.11 | 370,369.44 |
| General and administrative expenses | 10,761,122.82 | 9,492,897.61 |
| Research and development expenses | 92,433,583.34 | 167,378,059.49 |
| Financial income | 196,900.00 |
For other government grants, refer to notes V, 35 and 50.VIII. The change of consolidation scope
1. Business combination not under the Same Control
□ Applicable √ Not Applicable
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
| Company name | Registered place | Nature of business | Registered capital (ten thousand yuan) | The total shareholding ratio of the Group |
| Chongqing Xingzhi Technology Co., Ltd. | Chongqing | Sale | 4,900.00 | 100% |
(2) Subsidiary clearing during the reporting period
AVATR. Co., Ltd has changed from the company's holding subsidiary to an associate, and is no longer included in the company'sconsolidated financial statements. The equity method is used for subsequent accounting, which has a significant impact on the company.For details, please refer to www.cninfo.com.cn (Announcement No.: 2022-29).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 | ||||||
| Chongqing Changan International Automobile Sales Co., Ltd. | Chongqing | Chongqing | Sales | 1,376.00 | 100.00 | - |
| Chongqing Changan Vehicle Networking Technology Co., Ltd. | Chongqing | Chongqing | Lease | 8,850.00 | 100.00 | - |
| Chongqing Changan Special Automobile Sales Co., Ltd (Note 1) | Chongqing | Chongqing | Sales | 2,000.00 | 50.00 | - |
| Chongqing Changan Automobile Supporting Service Co., Ltd. | Chongqing | Chongqing | Sales | 3,000.00 | 99.00 | 1.00 |
| Chongqing Changan New Energy Automobile Co. Ltd. | Chongqing | Chongqing | R&D | 2,900.00 | 100.00 | - |
| Chongqing Changan Europe Design Academy Co., Ltd. | Turin, Italy | Turin, Italy | R&D | EUR 1,738 | 100.00 | - |
| Changan United Kingdom R&D Center Co., Ltd. | Nottingham, United Kingdom | Nottingham, United Kingdom | R&D | GBP 2,639 | 100.00 | - |
| Beijing Changan R&D Center Co., Ltd. | Beijing | Beijing | R&D | 100.00 | 100.00 | - |
| Changan Japan Designing Center Co.,Ltd | Habin | Habin | R&D | JYP1,000 | 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 | RUB 220,382 | 100.00 | - |
| Changan Brazil Holdings Limited | St. Paul, Brazil | St. Paul, Brazil | Sales | BRL 100 | 99.00 | 1.00 |
| Changan Automobile Investment (Shenzhen) Co., Ltd. | Changan Automobile Investment (Shenzhen) Co., Ltd. | Changan Automobile Investment (Shenzhen) Co., Ltd. | Changan Automobile Investment (Shenzhen) Co., Ltd. | 23,789.00 | 100.00 | |
| Nanjing Changan New Energy Automobile Sales & Service Co., Ltd. | Nanjing | Nanjing | Sales | 5,000.00 | 100.00 | - |
| Chongqing Anyi Automotive Technology Service Co., Ltd. | Chongqing | Chongqing | Sales | 200.00 | 100.00 | - |
| Xiamen Changan New Energy Automobile Sales & Service Co., Ltd. | Xiamen | Xiamen | Sales | 200.00 | 100.00 | - |
| Guangzhou Changan New Energy Automobile Sales & Service Co., Ltd. | Guangzhou | Guangzhou | Sales | 400.00 | 100.00 | - |
| Chongqing Chehemei Technology Co., Ltd. | Chongqing | Chongqing | Sales | 1,000.00 | 100.00 | |
| Chongqing Changan Kaicheng Automobile Technology Co., Ltd. | Chongqing | Chongqing | Sales | 100,000.00 | 83.64 | |
| Chongqing Changan Automobile Software Technology Co., Ltd. | Chongqing | Chongqing | R&D | 9,900.00 | 100.00 | |
| Chongqing Chehemei Technology Co., Ltd. | Chongqing | Chongqing | Sales | 4,900.00 | 100.00 | |
| II. The subsidiary formed by business combination not under common control | ||||||
| Nanjing Changan Automobile Co., Ltd.(Note 2) | Nanjing | Nanjing | Manufacturing | 60,181.00 | 84.73 | - |
| Chongqing Lingyao Automobile Co., Ltd. | Chongqing | Chongqing | Manufacturing | 133,764.00 | 100.00 | - |
| III. The subsidiary formed by business combination under common control | ||||||
| Hefei Changan Automobile Co.,Ltd. | Hefei | Hefei | Manufacturing | 227,500.00 | 100.00 | - |
Note 1: 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 been controlledby the Company, so it is included in the scope of consolidated financial statements.
Note 2: The Company owns 91.53% of voting shares of Nanjing Changan Automobile Co., Ltd., the difference between proportion ofvoting shares and proportion of shares held is due to the voting right consigned from minority shareholders.
As at June 30, 2022, 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
(1) Significant joint ventures or associates
| Company name | Registered place | Nature of business | Registered capital (ten | Total proportion of shareholders (%) | Accounting treatment |
| Main operating place | thousand) | 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 | 47.50 | - | 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. | 6,533.00 | 34.30 | - | Equity |
| Chongqing Changan Kuayue Automobile Sales Co., Ltd. | Chongqing | Chongqing | Sale of Changan Kuayue’ s automobile and agricultural cars and components. Technical advisory services for automobile | 300.00 | 34.30 | - | Equity |
| Chongqing Changan New Energy Automobile Technology Co., Ltd. | Chongqing | Chongqing | Sales | 32,810.83 | 40.6559 | - | Equity |
| Beijing Fang’an Taxi Co., Ltd. | Beijing | Beijing | For the car loan business | 2,897.96 | 22.24 | - | 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. | 476,843.10 | 28.66 | - | Equity |
| Hainan Anxinxing Information Technology Co., Ltd. | Chengmai County | Chengmai County | Software and hardware technology development, technical consulting, auto parts sales | 3,000.00 | 30.00 | - | Equity |
| Nanjing Chelai Travel Technology Co., Ltd. | Nanjing | Nanjing | Car sales, leasing, software technology development, technical services | 10,000.00 | 10.00 | - | Equity |
| Hunan Guoxin Semiconductor Technology Co., Ltd. | Zhuzhou | Zhuzhou | Technology development consulting, technical services, technology transfer in the field of power semiconductors | 50,000.00 | 25.00 | - | Equity |
| Beijing Wutong Chelian Technology Co., Ltd. | Beijing | Beijing | Technology development, technical consulting, technical services, technology transfer | 56,055.88 | - | 27.05 | Equity |
| Anhe (Chongqing) Equity Investment Fund Management Co., Ltd. | Chongqing | Chongqing | Equity investment management | 1,260.00 | - | 23.81 | Equity |
| Hangzhou Chelizi Intelligent Technology Co., Ltd. | Hangzhou | Hangzhou | Car travel service | 630.00 | - | 20.00 | Equity |
| Pakistan Master Motors Co., Ltd. | Lahore, Pakistan | Lahore, Pakistan | Manufacture and sale ofautomobiles, and components | PKR75,000 | 30.00 | Equity | |
| Jiangling Holding Co., Ltd. | Nanchang | Nanchang | Manufacture and sale ofautomobiles, and components | 200,000.00 | 25.00 | - | Equity |
| Nanjing Leading Equity Investment Partnership | Nanjing | Nanjing | Equity investment and related services | 976,000.00 | 16.39 | - | Equity |
| Nanjing Leading Equity Investment Management Co., Ltd. | Nanjing | Nanjing | Private equity investment fund management and related services | 1,000.00 | 15.00 | - | Equity |
| Zhongqi Chuangzhi Technology Co., Ltd. | Nanjing | Nanjing | R&D | 1,600,000.00 | 3.125 | - | Equity |
| Chongqing Changxin | Chongqing | Chongqing | Equity Investment | 50,200.00 | 49.80 | - | Equity |
(2) Key financial information of significant joint ventures
Changan Ford Automobile Co., Ltd. is the important joint venture to the Group and makes great influence in the share of profit andloss in joint venture and associates, the Group adopts equity method to deal with the investment to it.
The table below shows the financial status of Changan Ford Automobile Co., Ltd., and all the information has been adjusted to eliminatethe difference of the accounting policies.
In RMB Yuan
| Ending balance/Amount for this period | Beginning balance/Amount for prior period | |
| Current assets | 14,444,919,999.92 | 13,985,198,069.48 |
| Including: cash and cash equivalent | 4,673,625,631.71 | 5,495,088,974.00 |
| Non-current assets | 25,978,566,147.38 | 26,699,638,720.51 |
| 40,423,486,147.30 | 40,684,836,789.99 | |
| Total assets | 25,000,894,365.01 | 28,816,791,001.00 |
| Non-current liabilities | 8,398,429,884.54 | 5,889,087,187.00 |
| Total liabilities | 33,399,324,249.55 | 34,705,878,188.00 |
| Minority interests | - | - |
| Equity attributable to owners | 7,024,161,897.75 | 5,978,958,603.00 |
| Net asset owned according to share proportion | 3,512,080,948.88 | 2,989,479,301.50 |
| Adjustment | (54,343,996.72) | (54,603,257.51) |
| Book value of investment | 3,457,736,952.16 | 2,934,876,043.99 |
| Operating income | 23,377,802,470.94 | 26,114,465,788.42 |
| Financial expenses | 228,432,281.92 | 252,032,973.23 |
| Income tax expense | 158,336,533.41 | 59,987,347.20 |
| Net profit | 1,045,203,295.40 | 726,486,736.96 |
(3) The financial status of the less important joint ventures and associates
In RMB Yuan
| Ending balance | Beginning balance | |
| Joint venture: | ||
| Total book value of the investment | 4,249,902,992.19 | 4,332,804,092.02 |
| Total amount calculated by shareholding proportion | ||
| --Net profit | 340,098,900.17 | 374,325,525.72 |
| --Other comprehensive income | ||
| --Total comprehensive income | 340,098,900.17 | 374,325,525.72 |
| Associates: | ||
| Total book value of the investment | 9,596,972,338.40 | 5,977,694,724.54 |
| Total amount calculated by shareholding |
Zhiqi Private EquityInvestment FundPartnership (LimitedPartnership)
| Zhiqi Private Equity Investment Fund Partnership (Limited Partnership) | |||||||
| AVATR. Co., Ltd | Nanjing | Nanjing | R&D | 117,224.26 | 39.018 | Equity |
| proportion | ||
| --Net profit | (784,138,202.60) | (486,569,024.38) |
| --Other comprehensive income | 146,228.18 | |
| --Total comprehensive income | (783,991,974.42) | (486,569,024.38) |
(4) Excessive losses incurred by joint ventures or associates
As at 30 June 2022, since the Group has no obligation to undertake the extra loss of Chongqing Changan Kuayue Automobile SalesCo., Ltd, Beijing Fang’an cresent taxi Co., Ltd., Chongqing Wutong Chelian Technology Co., Ltd and Hainan Anxinxing InformationTechnology Co., Ltd. When extra loss occurs, the Group writes down the long-term investment to zero without recognizing the extraloss.
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
| 2022.6.30 | Financial assets measured at fair value and whose changes are recorded in the current profit and loss (standard required) | Financial assets measured at amortized cost | Financial assets measured at fair value and whose changes are recorded in Other comprehensive income (specified) | Total |
| Cash | 53,421,783,239.85 | 53,421,783,239.85 | ||
| Financial assets for trading | 305,967,574.57 | 305,967,574.57 | ||
| Notes receivable | 21,178,905,132.66 | 21,178,905,132.66 | ||
| Accounts receivable | 3,597,002,110.54 | 3,597,002,110.54 | ||
| Other receivables | 509,614,847.86 | 509,614,847.86 | ||
| Other current assets | 9,626,784.09 | 9,626,784.09 | ||
| Investment in other equity instrument | 701,409,600.00 | 701,409,600.00 | ||
| Total | 305,967,574.57 | 78,716,932,115.00 | 701,409,600.00 | 79,724,309,289.57 |
In RMB Yuan
| 2021.12.31 | Financial assets measured at fair value and whose changes are recorded in the current profit and loss (standard required) | Financial assets measured at amortized cost | Financial assets measured at fair value and whose changes are recorded in Other comprehensive income (specified) | Total |
| Cash | 51,976,242,149.37 | 51,976,242,149.37 | ||
| Financial assets for trading | 195,798,300.00 | 195,798,300.00 | ||
| Notes receivable | 24,267,633,416.65 | 24,267,633,416.65 | ||
| Accounts receivable | 1,675,427,534.87 | 1,675,427,534.87 | ||
| Other receivables | 632,122,942.37 | 632,122,942.37 | ||
| Other current assets | 3,723,435.08 | 3,723,435.08 |
| Investment in other equity instrument | 701,409,600.00 | 701,409,600.00 | ||
| Total | 195,798,300.00 | 78,555,149,478.34 | 701,409,600.00 | 79,452,357,378.34 |
Financial liabilities
In RMB Yuan
| 2022.6.30 | 2021.12.31 | |
| Short-term loans | 46,166,500.00 | 19,000,000.00 |
| Notes payable | 26,921,406,502.22 | 24,292,268,371.12 |
| Accounts payable | 23,994,999,761.80 | 23,650,604,870.98 |
| Other payables | 5,116,328,239.99 | 4,562,626,344.69 |
| Non-current liabilities due within 1 year | 887,576,604.11 | 533,839,583.57 |
| Long-term loan | 40,000,000.00 | 600,000,000.00 |
| Lease liabilities | 28,202,020.25 | 38,679,735.59 |
| Long-term payables | 467,780,397.91 | 642,513,537.69 |
| Total | 57,502,460,026.28 | 54,339,532,443.64 |
2. Transfer of financial assets
The transferred financial assets that entirely derecognized but continuing involved
As at June 30, 2022, the book value of the bank acceptance bill that the Group has endorsed to the supplier to settle accounts payableis RMB 1,854,716,065.23 (December 31, 2021: RMB 2,391,567,055.84). On June 30, 2022, 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 the rightto recourse against the Group ("continued involvement "). The Group believes that the Group has transferred almost all of its risks andrewards, and therefore, terminates the confirmation of the book value of the settlement accounts payable and the related accountspayable. The maximum loss and undiscounted cash flow of continuing involvement and repurchase are equal to its book value. TheGroup believes that continued involvement in fair value is not significant.
In the first half of 2022, the Group did not recognize gains or losses on its transfer date. The Group shall continue to be involved in theproceeds or expenses of the year in which the recognition of financial assets has been terminated and the cumulative recognition thereof.Endorsements occur roughly and evenly during the year.
3. Risks of financial instruments
The Group faces risks of various financial instruments in its daily activities, mainly including credit risk, liquidity risk and market risk(including exchange rate risk, interest rate risk and price risk). The main financial instruments of the Group include monetary funds,equity investments, loans, bills receivable, accounts receivable, bills payable, accounts payable, lease liabilities, etc. The risksassociated with these financial instruments and the risk management strategies adopted by the Group to reduce these risks are describedbelow.
The Group has formulated risk management policies to identify and analyze the risks faced by the Group, set appropriate risk acceptancelevels and design corresponding internal control procedures to monitor the Group's risk levels. The Group will periodically re-examinethese risk management policies and related internal control systems to adapt to changes in market conditions or the Group ’s operatingactivities. The internal audit department also regularly and irregularly checks whether the implementation of the internal control systemcomplies with the risk management policy.
Credit risk
The Group only deals with recognized and reputable customers. In accordance with the Group's policy, a credit review is required forall customers who require credit transactions. In addition, the Group continuously monitors the balance of accounts receivable to ensurethat the Group does not face significant bad debt risk. For transactions that are not settled with the relevant business unit's bookkeepingstandard currency, the Group does not provide credit transaction conditions unless specifically approved by the Group's credit control
department.
Since the counterparties of monetary funds and bank acceptance receivables are reputable banks with higher credit ratings, thesefinancial instruments have lower credit risk.
With respect to credit risk arising from the other financial assets of the Group, which comprise accounts receivable, other receivables,dividend receivables and certain derivatives financial instruments, the Group’s exposure to credit risk arising from default of thecounterparty, with a maximum exposure equal to the carrying amount of these instruments, listed as book value of financial assets inconsolidated financial statements. In 2021, there was no credit risk arising from financial guarantee.
Since the Group only trades with approved and reputable customers, there is no need for collateral. Credit risk is centralized andmanaged according to customers. As at the balance sheet date, the Group has a specific concentration of credit risks. 56.55% of theGroup's accounts receivable (December 31, 2021: 48.92%) originated from the top five customers with the balance of accountsreceivable. The Group does not hold any collateral or other credit enhancements for the balance of accounts receivable.
Judgment criteria for significant increase in credit risk
The Group evaluates on each balance sheet date whether the credit risk of the relevant financial instruments has increased significantlysince the initial recognition. In determining whether credit risk has increased significantly since the initial recognition, the Groupconsiders that reasonable and evidence-based information can be obtained without unnecessary additional cost or effort, includingqualitative and quantitative analysis based on the Group's historical data, external credit risk ratings and forward-looking information.Based on a single financial instrument or a portfolio of financial instruments with similar credit risk characteristics, the Group comparesthe default risk of financial instruments on the balance sheet date with the default risk on the initial confirmation date to determine thechange of default risk of financial instruments during their expected duration.
When one or more of the following quantitative or qualitative criteria are triggered, the Group believes that the credit risk of financialinstruments has significantly increased:
? the quantitative criterion is that the default probability of the remaining duration on the report date increases by more than a certainpercentage compared with the initial confirmation;? qualitative criteria mainly include material adverse changes in the operating or financial situation of the debtor, early warningcustomer list, etc.;
Definition of assets that have incurred credit impairment
In order to determine whether credit impairment occurs, the Group adopts a definition standard consistent with the internal credit riskmanagement objectives for relevant financial instruments, and considers both quantitative and qualitative indicators. The Group mainlytakes the following factors into consideration when evaluating whether the debtor has credit impairment:
? significant financial difficulties of the issuer or debtor;? debtor breaches the contract, such as default or overdue payment of interest or principal;? the creditor gives the debtor concessions that the debtor would not have made under any other circumstances for economic orcontractual reasons related to the debtor's financial difficulties;? the debtor is likely to go bankrupt or undergo other financial restructuring;? the financial difficulties of the issuer or debtor result in the disappearance of an active market for the financial asset;? purchase or source a financial asset at a substantial discount that reflects the fact that a credit loss has occurred.
The credit impairment of financial assets may be caused by the joint action of multiple events, but not by events that can be identifiedseparately.
A parameter for measuring expected credit losses
According to whether the credit risk has significantly increased and whether the credit impairment has occurred, the Group measuresthe impairment provision for different assets with the expected credit loss of 12 months or the whole duration respectively. The keyparameters of expected credit loss measurement include default probability, default loss rate and default risk exposure. The Group takesinto account the quantitative analysis and forward-looking information of historical statistical data (such as counterparty rating,guarantee method and types of collateral, repayment method, etc.) to establish default probability, default loss rate and default riskexposure models.
The relevant definition is as follows:
? probability of default is the probability that the debtor will not be able to meet its repayment obligations in the next 12 months orthroughout the remaining period. The default probability of the Group is adjusted based on the results of the historical credit loss modeland forward-looking information is added to reflect the default probability of the debtor in the current macroeconomic environment.? the default loss rate refers to the Group's expectation of the extent of losses from default risk exposure. Default loss rates also varydepending on the type of counterparty, the type and priority of recourse, and the collateral. The default loss rate is the percentage ofthe risk exposure loss at the time of default, calculated on the basis of the next 12 months or the whole duration;? default exposure is the amount that should be paid to the Group at the time of default over the next 12 months or throughout theremaining duration.
The assessment of a significant increase in credit risk and the calculation of expected credit losses involve forward-looking information.Through the analysis of historical data, the Group identifies the key economic indicators that affect the credit risks and expected creditlosses of each business type.
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 2022, 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, 2022, the Group only has limited transactional currency exposures of its total revenue that is valued in currencies other thanthe units' functional currency. The estimated influence of fluctuation of foreign currency is insignificant; therefore, the Group hasn’tcarried out large amount of hedging to reduce the risk.
Equity instruments investment price risk
The price risk of equity instrument investment refers to the risk that the fair value of equity securities is reduced due to changes in thelevel of stock indexes and changes in the value of individual securities. On June 30, 2022, the Group's listed equity instrumentinvestment (Note VII 2) was listed on the Shanghai Stock Exchange and measured on the basis of market quotes on the balance sheetdate. The following table illustrates the sensitivity of the Group’s net profit and loss to every 5% change in the fair value of equityinstrument investments (based on the book value at the balance sheet date) under the assumption that all other variables remain constant.
In RMB Yuan
| Carrying amount of equity investments | Change in fair value | Increase/(decrease) in equity | |
| 2022.6.30 | |||
| Shanghai- Equity investment included in financial assets at fair value through profit or loss | 302,911,174.57 | 5% | 12,873,724.92 |
| Shanghai- Equity investment included in financial assets at fair value through profit or loss | 302,911,174.57 | -5% | (12,873,724.92) |
| 2021.12.31 | |||
| Shanghai- Equity investment included in financial assets at | 177,902,700.00 | 5% | 7,560,864.75 |
| fair value through profit or loss | |||
| Shanghai- Equity investment included in financial assets at fair value through profit or loss | 177,902,700.00 | -5% | (7,560,864.75) |
4. Capital management
The main goal of the Group’s capital management is to ensure that the ability of continuous operation and maintain 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. To maintainor adjust the capital structure, the Group can rectify dividend distribution, return capital to shareholders or issue new shares. The Groupis not subject to external mandatory capital requirements constraints. The goal, principle and procedure of capital management stay thesame in 2021 and 30, June 2022.
The Group’s leverage ratio on the balance sheet date is as follows:
| June 30, 2022 | December 31, 2021 | |
| Leverage ratio | 56.19% | 58.74% |
XI. Disclosure of fair value
1. Assets and liabilities measured at fair value
June 30, 2022
In RMB Yuan
| Input measured at fair value | ||||
| Quoted price in active market (The first level) | Important and observable input (The second level) | Important but unobservable input (The third level) | Total | |
| Trading financial assets | ||||
| Equity instrument investment | 133,511,100.00 | 169,400,074.57 | 302,911,174.57 | |
| Derivative financial assets | 3,056,400.00 | 3,056,400.00 | ||
| Other equity instruments | 701,409,600.00 | 701,409,600.00 | ||
| Total | 133,511,100.00 | 169,400,074.57 | 704,466,000.00 | 1,007,377,174.57 |
December 31, 2021
In RMB Yuan
| Input measured at fair value | ||||
| Quoted price in active market (The first level) | Important and observable input (The second level) | Important but unobservable input (The third level) | Total | |
| Trading financial assets | ||||
| Equity instrument investment | 177,902,700.00 | 177,902,700.00 | ||
| Derivative financial assets | 17,895,600.00 | 17,895,600.00 | ||
| Other equity instruments | 701,409,600.00 | 701,409,600.00 | ||
| Total | 177,902,700.00 | 719,305,200.00 | 897,207,900.00 | |
2. Fair value estimation
Management has assessed and concluded accounts, including cash, notes receivable, accounts receivable, other receivables, otherpayables, notes payable and accounts payable and so on, whose fair value equals to book value because of its short term to overdue.
Financial assets and financial liabilities are measured at the amount that an asset could be exchanged for or by which a liability couldbe incurred or settled by knowledge, willing parties in a current arm’s-length transaction, other than liquidation or unwilling sales.Methods and hypothesis followed are used for determining fair value.
Long-term loans and long-term payables use discounted cash flow method to determine its fair value, with discount rate in accordancewith market return of other financial instruments based on similar terms, credit risks and remaining terms. As at 31 December 2021,the default risk of long-term loans and short-term loans were considered immaterial.
The equity instruments listed by the Group are ordinary shares with unrestricted sale conditions, and their fair value is determined atthe quoted market price. The Group's unlisted equity instruments use a series of valuation models to estimate the fair value, and theassumptions used are not supported by observable market prices or interest rates. The Group mainly refers to the evaluation reports ofindependent qualified professional appraisers. The Group believes that the fair value and its changes estimated by valuation techniquesare reasonable and are also the most appropriate value on the balance sheet date.
The Group entered into a derivative financial instrument contract with the bank. The Group's derivative financial instruments areforeign exchange forward contracts, which are measured using valuation techniques similar to the present value method. The observableinput value of the market covered by the model is the forward exchange rate. The book value of a foreign exchange forward contractis the same as the fair value.
3. Unobservable input
The following is an overview of the important unobservable input value of the third level fair value measurement:
| Fair value | Valuation techniques | Non-observable input value | |
| Investment in other equity instrument | |||
| 2022.6.30 | 701,409,600.00 | Market approach/ Income approach | Comparable transaction value multiplier / Post-tax discount rate |
| 2021.12.31 | 701,409,600.00 | Market approach/ Income approach | Comparable transaction value multiplier / Post-tax discount rate |
| Financial asset held for trading-Others | |||
| 2022.6.30 | 3,056,400.00 | Expected yield as per the contract | Expected yield contained in the contract |
| 2021.12.31 | 17,895,600.00 | Expected yield as per the contract | Expected yield contained in the contract |
XII. Related party relationships and transactions
1. Parent company of the Company
| Parent company | Place of registration | Nature of the business | Registered capital | Proportion of shares in the Company (%) | Proportion of voting rights in the company (%) |
| China Changan Automobile Group Co ,Ltd. | Beijing | Manufacture and sale of automobiles, engine, and components | 6,092,273,400.00 | 20.80% | 20.80% |
The Final controlling party is China South Industries Group corporation
2. Subsidiaries
See subsidiaries in IX（1）. 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
| Related parties | Relationship |
| Chongqing Tsingshan Industrial Co., Ltd. | Controlled by the same ultimate holding company |
| Anhui Wanyou Automobile Sales Service Co., Ltd. | Controlled by the same ultimate holding company |
| Bazhong Wanyou Auto Sales & Service Co., Ltd. | Controlled by the same ultimate holding company |
| Chengdu Huachuan Electric Equipment Co., Ltd. | Controlled by the same ultimate holding company |
| Chengdu Wanyou Trading Co., Ltd. | Controlled by the same ultimate holding company |
| Chengdu Wanyou Auto Sales and Service co.,Ltd. | Controlled by the same ultimate holding company |
| Chengdu Wanyou Auto Trade Service Co., Ltd. | Controlled by the same ultimate holding company |
| Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. | Controlled by the same ultimate holding company |
| Guizhou Wanyou Auto Sales and Service Co., Ltd. | Controlled by the same ultimate holding company |
| Harbin Dongan Auto Engine Co., Ltd. | Controlled by the same ultimate holding company |
| Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | Controlled by the same ultimate holding company |
| Jiangsu Wanyou Automobile Sales Service Co., Ltd. | Controlled by the same ultimate holding company |
| Luzhou Wanyou Automobile Service Co., Ltd. | Controlled by the same ultimate holding company |
| Panzhihua Wanyou Auto Sales & Service Co., Ltd. | Controlled by the same ultimate holding company |
| Sichuan Jian'an Industrial Co.,Ltd. | Controlled by the same ultimate holding company |
| Sichuan Ningjiang Shanchuan Machinery Co, Ltd. | Controlled by the same ultimate holding company |
| Wanyou Automobile Investment Co., Ltd. | Controlled by the same ultimate holding company |
| Ya'an Wanyou Auto Sales and Service Co., Ltd. | Controlled by the same ultimate holding company |
| Yunnan Wanyou Auto Sales and Service Co., Ltd. | Controlled by the same ultimate holding company |
| China South Industries Group Financial Leasing Co., Ltd. | Controlled by the same ultimate holding company |
| China Changan Automobile Group Hefei Investment Co., Ltd. | Controlled by the same ultimate holding company |
| China Changan Automobile Group Tianjin Sales Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Anfu Automobile Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Wanyou Ducheng Auto Sales Service Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Wanyou Xingjian Auto Sales & Service Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Wanyou Economic Development Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing Beiji Mechanical and Electrical Industry Co., Ltd. | Controlled by the same ultimate holding company |
| China South Industry Group Finance Co., Ltd. | Controlled by the same ultimate holding company |
| Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. | Controlled by the same ultimate holding company |
| Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. | Controlled by the same ultimate holding company |
| Chengdu Wanyou Filter Co., Ltd. | Controlled by the same ultimate holding company |
| Hubei Huazhong Marelli Automobile Lighting Co., Ltd. | Controlled by the same ultimate holding company |
| Hubei Xiaogan Huazhong Automobile Light Co., Ltd. | Controlled by the same ultimate holding company |
| Yunnan Xiyi Industries Co., Ltd. | Controlled by the same ultimate holding company |
| China South Industries Group Commercial Factoring Co., Ltd. | Controlled by the same ultimate holding company |
| China South Industries Group Information Center Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Dajiang Jiexin Forging Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Jianshe Automobile Air-conditioner Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing construction industry (Group) Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Construction Tongda Industrial Co., Ltd. | Controlled by the same ultimate holding company |
| Related parties | Relationship |
| Chongqing Shangfang Automobile Fittings Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Qingshan Transmission Sales Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Changfeng Jiquan Machinery Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Chang'an industry (Group) Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Changan Property Management Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Changan Construction Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Changan Intelligent Industrial Technology Service Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Pingshan Tk Carburetor Co., Ltd. | Controlled by the same ultimate holding company |
| Longchang Shanchuan Precision Welded Tube Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Changrong Machinery Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Yihong Engineering Plastic Products Co., Ltd. | Controlled by the same ultimate holding company |
| Yunnan Wanxing Auto Sales Service Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Qingshan transmission branch of China Chang'an Automobile Group Co., Ltd | Controlled by the same ultimate holding company |
| Hunan Tianyan Machinery Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Changan Minsheng Dingjie Logistics Co.,Ltd. | Controlled by the same ultimate holding company |
| Southwest Ordnance Industry Chongqing Environmental Protection Research Institute Co., Ltd. | Controlled by the same ultimate holding company |
| China Ordnance News Agency | Controlled by the same ultimate holding company |
| Chongqing Wanyou Advertising Co.,Ltd. | Controlled by the same ultimate holding company |
| Chongqing Jialing Yimin Special Equipment Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Xiyi Automobile Connecting Rod Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Jianshe Mechanical & Electrical Equipment Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. | Controlled by the same ultimate holding company |
| Chengdu Lingchuan Special Industry Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Automobile Air-conditioner Co., Ltd. | Controlled by the same ultimate holding company |
| Chongqing Changjiang Electrician Industry Group Co.,Ltd. | Controlled by the same ultimate holding company |
| Guangxi Wanyou Auto Sales and Service Co., Ltd. | Controlled by the same ultimate holding company |
| Ya'an Changan Affordable Housing Construction Co., Ltd. | Controlled by the same ultimate holding company |
| SIAMC Management Co., Ltd. | Controlled by the same ultimate holding company |
| Hunan Tianyan Machinery Co., Ltd | Participated by the Ultimate holding company |
| CDGM Tanaka Environmental Catalyst Co.,Ltd. | Participated by the Ultimate holding company |
| Hafei Motor Co., Ltd. | Participated by the Ultimate holding company |
| Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. | Participated by the Ultimate holding company |
| Southern Fojiya Auto Parts Co., Ltd. | Participated by the Ultimate holding company |
| South Tianhe Chassis System Co., Ltd. | Participated by the Ultimate holding company |
| South Inter Air-conditioner Co.,Ltd. | Participated by the Ultimate holding company |
| Chongqing Chang'an Minsheng Boyu Logistics Co., Ltd. | Participated by the Ultimate holding company |
| Chongqing Changan Minsheng Logistics Co. Ltd. | Participated by the Ultimate holding company |
| Chongqing Dajiang Yuqiang Plastic Co., Ltd. | Participated by the Ultimate holding company |
| Chongqing Nexteer Steering System Co.,Ltd. | Participated by the Ultimate holding company |
| Beijing Zhongbing Insurance Brokerage Co., Ltd. | Participated by the Ultimate holding company |
| Lear Chang'an (Chongqing) Automotive System Co., Ltd | Participated by the Ultimate holding company |
| United Automotive Electronics (Chongqing) Co., Ltd | Participated by the Ultimate holding company |
| Nattiefu transmission system (Chongqing) Co., Ltd | Participated by the Ultimate holding company |
| Tiannak Lingchuan (Chongqing) exhaust system Co., Ltd | Participated by the Ultimate holding company |
| Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd | Participated by the Ultimate holding company |
| Related parties | Relationship |
| Chongqing Dajiang Tongyang Plastics Co., Ltd. | Participated by the Ultimate holding company |
| Chongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd. | Participated by the Ultimate holding company |
| Dajiang Yapp Automotive Systems Co., Ltd. | Participated by the Ultimate holding company |
| Chongqing Hanon Jianshe Automotive Thermal Systems Co., Ltd. | Participated by the Ultimate holding company |
| Chongqing Lingchuan Auto Parts Manufacturing Technology Co., Ltd. | Participated by the Ultimate holding company |
| Beijing Wutong Chelian Technology Co., Ltd. | Companies in which the company participates |
| Nanjing LingHang Technology Co., Ltd. | Companies in which the company participates |
| Ald Fortune Auto Leasing & Renting (Shanghai) Co., Ltd. | Companies in which the company participates |
5. Related-party transaction
(1) Transactions of goods and services
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. | Procurement of parts | 33,177.65 | 1,921,855.70 | No | 186,186.55 |
| Jiangling Holdings Co., Ltd. | Accept labor | 585,345.00 | - | Yes | 737,706.14 |
| Changan Auto Finance Co., Ltd. | Accept labor | 154,563,517.61 | 123,988,448.87 | Yes | 8,153,781.57 |
| Hangzhou Chelizi Intelligent Technology Co., Ltd. | Procurement of parts | - | 3,750,000.00 | No | - |
| Chongqing Changan New Energy Vehicles Technology Co., Ltd. | Purchasing parts and accepting labor services | 716,672,719.94 | 3,011,467,834.39 | No | 82,033,905.11 |
| Beijing Wutong Chelian Technology Co., Ltd. | Purchasing parts and accepting labor services | 67,885,814.09 | 199,395,069.81 | No | 38,062,628.50 |
| China Changan Automobile Group Co., Ltd. | Accept labor | - | 180,000.00 | No | 60,000.00 |
| Chongqing Qingshan transmission branch of China Chang'an Automobile Group Co., Ltd. | Procurement of parts | - | 928,269.34 | No | - |
| Anhui Wanyou Automobile Sales Service Co., Ltd. | Accept labor | 2,284,126.26 | 3,758,297.12 | No | 626,024.86 |
| Bazhong Wanyou Auto Sales & Service Co., Ltd. | Accept labor | - | 111,000.00 | No | 73,330.36 |
| Chengdu Huachuan Electric Equipment Co., Ltd. | Procurement of parts | 201,518,601.15 | 805,483,679.59 | No | 227,227,857.41 |
| Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. | Procurement of parts | 7,248,464.81 | 148,609,447.22 | No | 39,951,396.48 |
| Chengdu Wanyou Trading Co., Ltd. | Accept labor | 22,527.44 | 58,417.52 | No | 12,164.16 |
| Chengdu Wanyou Auto Sales and Service co.,Ltd. | Accept labor | 368,483.54 | 281,414.61 | Yes | - |
| Chengdu Wanyou Auto Trade Service Co., Ltd. | Accept labor | 5,421,148.49 | 11,584,348.61 | No | 3,584,234.21 |
| Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
| Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. | Accept labor | 6,376,107.26 | 15,596,129.17 | No | 5,262,969.51 |
| Guizhou Wanyou Auto Sales and Service Co., Ltd. | Accept labor | 6,881,968.71 | 20,824,040.79 | No | 6,240,583.45 |
| Harbin Dongan Auto Engine Co., Ltd. | Purchasing parts and accepting labor services | 263,267,944.07 | 1,231,859,413.46 | No | 417,231,892.67 |
| Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | Purchasing parts and accepting labor services | 653,853,009.25 | 2,527,626,318.31 | No | 855,901,689.16 |
| Hunan Tianyan Machinery Co., Ltd | Procurement of parts | 2,617,013.13 | 124,012,774.49 | No | 52,452,744.77 |
| Jiangsu Wanyou Automobile Sales Service Co., Ltd. | Accept labor | 2,015,418.16 | 3,553,700.27 | No | 651,038.61 |
| Luzhou Wanyou Automobile Service Co., Ltd. | Accept labor | 307,508.81 | 1,079,823.97 | No | 380,083.72 |
| Southern Fojiya Auto Parts Co., Ltd. | Procurement of parts | 252,639,803.32 | 1,000,969,656.80 | No | 280,222,308.44 |
| South Tianhe Chassis System Co., Ltd. | Procurement of parts | 459,025,340.96 | 1,950,314,552.53 | No | 486,779,984.60 |
| South Inter Air-conditioner Co.,Ltd. | Procurement of parts | 202,161,276.20 | 863,478,799.74 | No | 200,511,859.90 |
| Panzhihua Wanyou Auto Sales & Service Co., Ltd. | Accept labor | 257,324.00 | 771,827.92 | No | 263,159.87 |
| Sichuan Jian'an Industrial Co.,Ltd. | Purchasing parts and accepting labor services | 534,985,354.14 | 1,645,997,268.09 | No | 483,719,852.19 |
| Sichuan Ningjiang Shanchuan Machinery Co, Ltd. | Procurement of parts | 159,762,835.80 | 560,841,224.45 | No | 171,000,224.81 |
| Ya'an Wanyou Auto Sales and Service Co., Ltd. | Accept labor | 846,681.30 | 2,612,656.06 | No | 908,456.37 |
| Yunnan Wanyou Auto Sales and Service Co., Ltd. | Accept labor | 13,728,699.67 | 31,476,537.76 | No | 10,743,446.13 |
| Yunnan Wanxing Auto Sales Service Co., Ltd. | Accept labor | 92,971.05 | 1,839,395.79 | No | 132,323.01 |
| China Changan Automobile Group Hefei Investment Co., Ltd. | Accept labor | - | 1,794,366.59 | No | 951,991.17 |
| China Changan Automobile Group Tianjin Sales Co., Ltd. | Accept labor | 692,160.09 | 3,014,067.66 | No | 111,409.95 |
| Chongqing Tsingshan Industrial Co., Ltd. | Purchasing parts and accepting labor services | 3,637,088,928.81 | 11,430,694,983.63 | No | 2,700,637,434.06 |
| Chongqing Wanyou Ducheng Auto Sales Service Co., Ltd. | Accept labor | 2,584,670.89 | 5,504,274.33 | No | 1,721,447.53 |
| Chongqing Wanyou Xingjian Auto Sales & Service Co., Ltd. | Accept labor | 716,753.30 | 3,916,714.79 | No | 1,092,633.98 |
| Chongqing Wanyou Economic Development Co., Ltd. | Purchasing parts and accepting labor services | 40,779,608.17 | 1,009,788,555.92 | No | 369,796,951.53 |
| Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. | Procurement of parts | 114.95 | - | Yes | - |
| Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
| Chongqing Chang'an Minsheng Boyu Logistics Co., Ltd. | Logistics cost | - | 71,441.28 | No | - |
| Chongqing Changan Minsheng Logistics Co. Ltd. | Purchasing parts and accepting labor services | 1,760,470,945.02 | 6,545,621,081.26 | No | 1,388,787,441.14 |
| Beijing Beiji Mechanical and Electrical Industry Co., Ltd. | Procurement of parts | 18,410.18 | 6,092.98 | Yes | 2,086.86 |
| Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. | Procurement of parts | 1,538,164.71 | 17,353,897.32 | No | 6,216,741.79 |
| Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. | Purchasing parts and accepting labor services | 18,148,367.15 | 67,178,945.71 | No | 17,816,531.05 |
| Chengdu Wanyou Filter Co., Ltd. | Procurement of parts | 76,561,417.56 | 252,486,835.70 | No | 84,479,587.54 |
| Hubei Huazhong Marelli Automobile Lighting Co., Ltd. | Procurement of parts | 473,880,131.14 | 2,221,189,276.10 | No | 465,100,075.04 |
| Hubei Xiaogan Huazhong Automobile Light Co., Ltd. | Procurement of parts | 51,876,744.41 | 202,976,991.90 | No | 61,893,517.73 |
| Yunnan Xiyi Industries Co., Ltd. | Procurement of parts | 53,637,731.83 | 204,846,321.43 | No | 59,269,771.21 |
| China South Industries Group Information Center Co., Ltd. | Accept labor | - | 42,000.00 | No | - |
| Chongqing Dajiang Jiexin Forging Co., Ltd. | Procurement of parts | 1,845,245.27 | 10,924,319.90 | No | 3,022,294.47 |
| Chongqing Dajiang Yuqiang Plastic Co., Ltd. | Procurement of parts | 344,226.01 | 77,509,963.48 | No | 88,514,947.10 |
| Chongqing Jianshe Automobile Air-conditioner Co., Ltd. | Procurement of parts | 38,555,506.77 | 306,037,760.69 | No | 105,174,591.95 |
| Chongqing construction industry (Group) Co., Ltd | Procurement of parts | 726,973.62 | 7,075,684.69 | No | 780,297.42 |
| Chongqing Construction Tongda Industrial Co., Ltd. | Procurement of parts | 16,331,004.84 | 84,644,649.65 | No | 19,335,699.51 |
| Chongqing Nexteer Steering System Co.,Ltd. | Procurement of parts | 400,416,384.73 | 1,701,967,636.08 | No | 378,981,317.38 |
| Chongqing Shangfang Automobile Fittings Co., Ltd. | Procurement of parts | 52,075,600.58 | 198,487,628.70 | No | 51,123,910.13 |
| Chongqing Qingshan Transmission Sales Co., Ltd. | Procurement of parts | 18,687,536.60 | 36,131,038.29 | No | 10,226,693.15 |
| Chongqing Yihong Engineering Plastic Products Co., Ltd. | Procurement of parts | 14,407,672.87 | 45,640,634.47 | No | 8,668,811.99 |
| Chongqing Changfeng Jiquan Machinery Co., Ltd. | Procurement of parts | - | 10,881.36 | No | - |
| Chongqing Chang'an industry (Group) Co., Ltd | Accept labor | 6,341,330.87 | 196,627,170.00 | No | 4,811,062.11 |
| Chongqing Changan Property Management Co., Ltd. | Accept labor | 1,928,927.46 | 6,265,367.91 | No | 1,911,249.38 |
| Beijing Zhongbing Insurance Brokerage Co., Ltd. | Purchasing parts and accepting labor services | 45,762.00 | 285,274.84 | No | 5,554.42 |
| Lear Chang'an (Chongqing) Automotive System Co., Ltd | Procurement of parts | 229,595,709.77 | 1,000,861,210.19 | No | 297,535,098.14 |
| Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
| United Automotive Electronics (Chongqing) Co., Ltd | Purchasing parts and accepting labor services | 411,241,559.03 | 958,944,741.07 | No | 237,298,829.56 |
| Nattiefu transmission system (Chongqing) Co., Ltd | Procurement of parts | 210,241,479.79 | 715,778,771.46 | No | 192,065,903.94 |
| Nanjing LingHang Technology Co., Ltd. | Purchasing parts and accepting labor services | 304,110.83 | 600,000.00 | No | - |
| Tiannak Lingchuan (Chongqing) exhaust system Co., Ltd | Purchasing parts and accepting labor services | 30,942,900.59 | 80,962,093.44 | No | 29,000,980.23 |
| Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd | Procurement of parts | - | 34,390,957.65 | No | 601,568.93 |
| Chongqing Dajiang Tongyang Plastics Co., Ltd. | Procurement of parts | 191,978,923.57 | 541,885,026.38 | No | 4,831,358.42 |
| Chongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd. | Procurement of parts | 167,524,798.04 | 635,843,953.00 | No | 135,836,367.95 |
| Dajiang Yapp Automotive Systems Co., Ltd. | Procurement of parts | 167,401,222.48 | 714,950,383.10 | No | 176,074,670.02 |
| Chongqing Hanon Jianshe Automotive Thermal Systems Co., Ltd. | Procurement of parts | 71,943,120.72 | 348,601,720.25 | No | 117,174,891.64 |
| Chongqing Lingchuan Auto Parts Manufacturing Technology Co., Ltd. | Procurement of parts | 67,077,513.30 | 205,879,742.29 | No | 61,042,625.94 |
| Chongqing Chang'an Intelligent Industrial Technology Service Co., Ltd | Accept labor | 513,085.15 | 955,650.00 | No | - |
| Chongqing Changan Minsheng Dingjie Logistics Co.,Ltd. | Procurement of parts | - | 183,402.83 | No | - |
| Chongqing Pingshan Tk Carburetor Co., Ltd. | Procurement of parts | 113,625.19 | 384,399.00 | No | - |
| Longchang Shanchuan Precision Welded Tube Co., Ltd. | Procurement of parts | 16,006,962.03 | 55,926,791.60 | No | - |
| Chongqing Changrong Machinery Co., Ltd. | Procurement of parts | 105,095,477.66 | 431,805,778.38 | No | 108,378,855.15 |
| Chongqing Wutong Chelian Technology Co., Ltd. | Accept labor | 18,867,924.00 | - | Yes | - |
| Southwest Ordnance Industry Chongqing Environmental Protection Research Institute Co., Ltd. | Procurement of parts | 643,025.04 | - | Yes | - |
| Chongqing Yihong Engineering Plastic Products Co., Ltd. | Procurement of parts | 495,852.05 | - | Yes | - |
| China Ordnance News Agency | Accept labor | 8,235.84 | - | Yes | - |
| Chongqing Wanyou Advertising Co.,Ltd. | Procurement of parts | 144,000.00 | - | Yes | - |
| Ald Fortune Auto Leasing & Renting (Shanghai) Co., Ltd. | Procurement of parts | 2,081,065.28 | - | Yes | - |
| Total: | 12,077,344,092.00 | 44,660,420,679.68 | 10,563,387,032.07 | ||
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 materials and parts | 1,977,509.38 | 1,855,571.93 |
| Jiangling Holdings Co., Ltd. | Training fee | 384,888.69 | - |
| Changan Automobile Finacing Co., Ltd. | Financial service fee | 233,886,141.47 | 235,922,452.68 |
| Hainan Anxinxing Information Technology Co., Ltd. | warehouse service charge | 28,301.89 | 180,405.38 |
| Chongqing Changan Kuayue Automobile Co., Ltd. | Sales of engines | 35,175,120.00 | 25,113,180.83 |
| Chongqing Changan Kuayue Automobile Sales Co., Ltd. | Selling parts | 84,044.68 | - |
| Chongqing Changan New Energy Vehicles Technology Co., Ltd. | Sales of complete vehicles and parts | 941,495,311.87 | 1,507,513,718.25 |
| Anhui Wanyou Automobile Sales Service Co., Ltd. | Sales of complete vehicles and parts | 101,714,909.87 | 94,893,670.51 |
| Chengdu Huachuan Electric Equipment Co., Ltd. | Training fee | - | 51,886.79 |
| Chengdu Wanyou Trading Co., Ltd. | Sales of materials and parts | 8,176.99 | - |
| Chengdu Wanyou Auto Sales and Service Co.,Ltd. | Sales of complete vehicles and parts | 472,725.21 | 34,563.77 |
| Chengdu Wanyou Auto Trade Service Co., Ltd. | Sales of complete vehicles and parts | 312,041,141.75 | 316,249,425.28 |
| Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. | Sales of complete vehicles and parts | 699,738,917.76 | 794,544,935.13 |
| Guizhou Wanyou Auto Sales and Service Co., Ltd. | Sales of complete vehicles and parts | 501,259,585.12 | 588,046,422.66 |
| Harbin Dongan Auto Engine Co., Ltd. | Sales of materials and parts, maintenance services | 1,173.00 | 15,930.30 |
| Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | Sales of materials and parts | 24,251,252.09 | 31,522,892.41 |
| Jiangsu Wanyou Automobile Sales Service Co., Ltd. | Sales of complete vehicles and parts | 105,718,270.77 | 104,011,720.99 |
| Luzhou Wanyou Automobile Service Co., Ltd. | Sales of materials and parts | 450,709.55 | 519,692.06 |
| Panzhihua Wanyou Auto Sales & Service Co., Ltd. | Sales of materials and parts | 383,700.50 | 263,050.52 |
| Sichuan Ningjiang Shanchuan Machinery Co, Ltd. | Training fee | - | 51,886.79 |
| Wanyou Automobile Investment Co., Ltd. | Sales of complete vehicles | 327,743,125.35 | 349,917,081.21 |
| Ya'an Wanyou Auto Sales and Service Co., Ltd. | Sales of complete vehicles and parts | 889,767.43 | 655,115.77 |
| Yunnan Wanyou Auto Sales and Service Co., Ltd. | Sales of complete vehicles and parts | 546,916,400.91 | 671,843,881.62 |
| Yunnan Wanxing Auto Sales Service Co., Ltd. | Sales of complete vehicles and parts | 18,951,586.08 | 46,605,045.84 |
| China South Industries Group Financial Leasing Co., Ltd. | service charge | 7,077,169.81 | 47,547.17 |
| China Changan Automobile Group Hefei Investment Co., Ltd. | Sales of complete vehicles and parts | - | 41,156,064.45 |
| China Changan Automobile Group Tianjin Sales Co., Ltd. | Sales of complete vehicles and parts | 113,428,610.55 | 137,135,092.41 |
| Chongqing Anfu Automobile Co., Ltd. | Sales of complete vehicles and parts | 7,775,221.22 | 6,189,380.58 |
| Chongqing Tsingshan Industrial Co., Ltd. | Sales of materials and parts | 72,087,696.68 | 35,512,076.07 |
| Related parties | Nature of the transaction | Current amount | Prior-period Amount |
| Chongqing Wanyou Ducheng Auto Sales Service Co., Ltd. | Sales of materials and parts | 1,472,801.11 | 1,161,570.19 |
| Chongqing Wanyou Xingjian Auto Sales & Service Co., Ltd. | Sales of materials and parts | 853,360.20 | 697,236.79 |
| Chongqing Wanyou Economic Development Co., Ltd. | Sales of complete vehicles and parts | 924,172,360.80 | 1,049,808,179.31 |
| Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. | Sales of materials and parts | 319,697,765.86 | 206,745,318.62 |
| Chongqing Chang'an Minsheng Boyu Logistics Co., Ltd. | Sales of complete vehicles and training expenses | 23,716.98 | 85,818,614.19 |
| Chongqing Changan Minsheng Logistics Co. Ltd. | Sales of materials and parts, utilities | 1,018,913.85 | 928,663.27 |
| China South Industry Group Finance Co., Ltd. | Others | 550,714.07 | - |
| Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. | Sales of materials and parts | 938,416.81 | 938,476.80 |
| Yunnan Xiyi Industries Co., Ltd. | Sales of materials and parts | 663,752.00 | 2,746,914.24 |
| China South Industries Group Commercial Factoring Co., Ltd. | service charge | 44,333.22 | 84,853.12 |
| Chongqing Dajiang Yuqiang Plastic Co., Ltd. | Sales of materials and parts | 131,400.00 | -716,798.50 |
| Chongqing Jianshe Automobile Air-conditioner Co., Ltd. | testing expenses | 11,946.90 | - |
| Chongqing construction industry (Group) Co., Ltd | Sales of materials and parts | 193,218.11 | 171,959.13 |
| Chongqing Nexteer Steering System Co.,Ltd. | Sales of materials and parts | 1,552,230.09 | - |
| Nanjing LingHang Technology Co., Ltd. | operating charges | 1,873,252.38 | - |
| Ald Fortune Auto Leasing & Renting (Shanghai) Co., Ltd. | operating charges | 13,010,318.55 | - |
| Tiannak Lingchuan (Chongqing) exhaust system Co., Ltd | Sales of materials and parts | 2,651,092.85 | 6,228,241.00 |
| Chongqing Dajiang Tongyang Plastics Co., Ltd. | Sales of materials and parts | 533,842.98 | 1,181,692.00 |
| Chongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd. | Outsourcing processing, sales materials and parts | 14,217,387.85 | 10,746.64 |
| Chongqing Lingchuan Auto Parts Manufacturing Technology Co., Ltd. | Sales of materials and parts | 1,214,708.00 | 9,518,232.82 |
| Avita Technology (Chongqing) Co., Ltd. | Technical commissions | 52,471,011.00 | - |
| Pakistan Master Automobile Co., Ltd. | Sales of complete vehicles and parts | 686,073,063.37 | - |
| Total: | 6,077,311,065.60 | 6,355,176,591.02 | |
(2) Related-party leasing
Rent assets to related parties
In RMB Yuan
| Lessee | Type of leased assets | Report period Amount | Same period of last period Amount |
| South Inter Air-conditioner Co.,Ltd. | Vehicle | 67,752.21 | - |
| Chongqing Changan Industries Group Co. Ltd. | Building | 3,397,373.71 | 3,283,373.71 |
| Nanjing LingHang Technology Co., Ltd. | Vehicle | 63,932,417.73 | 45,919,893.28 |
| Ald Fortune Auto Leasing & Renting (Shanghai) Co., Ltd. | Vehicle | 2,696,360.42 | - |
| Chongqing Changan New Energy Vehicles Technology Co., Ltd. | Building, land and battery Workshop | 10,675,075.50 | 9,829,396.15 |
| Chongqing Changan Minsheng Logistics Co. Ltd. | Building | 354,900.63 | 356,642.49 |
| Chongqing Wanyou Economic Development Co., Ltd. | Building and land | 321,100.92 | 321,100.92 |
| Total | 81,444,981.12 | 59,710,406.55 | |
Rent assets from related parties
In RMB Yuan
| Lessor | Type of leased assets | Rent paid | |
| Report period Amount | Same period of last period Amount | ||
| Chongqing Chang'an Minsheng Logistics Co., Ltd | Land | 1,730,062.80 | 251,047.99 |
(3) 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
| Changan Industries (Group) Co. Ltd | Payment of land rental fees | 3,091,095.90 | 8,592,223.08 |
| Payment of building rental fees | 1,197,968.00 | 1,197,968.00 | |
| Payment of utilities | 27,574,790.98 | 34,902,256.18 | |
| Others | 513,677.67 | 1,234,867.44 | |
| Total | 32,377,532.55 | 45,927,314.70 | |
Purchase of project materials
In RMB Yuan
| Related parties | Report period Amount | Same period of last period Amount |
| Chongqing Chang'an Minsheng Logistics Co., Ltd | 8,150.95 | 1,266,884.27 |
Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd
| Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd | 7,830,088.50 | 5,616,000.00 |
| Total | 7,838,239.45 | 6,882,884.27 |
Staff expenses for technical supporting
In RMB Yuan
| Related parties | Report period Amount | Same period of last period Amount |
Chang'an Mazda Automobile Co., Ltd
| Chang'an Mazda Automobile Co., Ltd | 222,474.38 | 5,349,433.96 |
| Changan Ford Motor Co., Ltd | 7,943,502.33 | 8,106,439.00 |
Changan Mazda Engine Co., Ltd.
| Changan Mazda Engine Co., Ltd. | 242,821.56 | - |
| Hainan Anxinxing Information Technology Co., Ltd. | 634,354.87 | - |
| Chongqing Chang'an New Energy Vehicle Technology Co., Ltd | - | 1,223,495.73 |
| Chongqing Shangfang Auto Parts Co., Ltd | - | 53,900.00 |
Total
| Total | 9,043,153.14 | 14,733,268.69 |
Techonology development service charges
In RMB Yuan
| Related parties | Report period Amount | Same period of last period Amount |
| Chongqing Tsingshan Industrial Co., Ltd. | - | 2,558,531.66 |
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. | 270,188.68 | - |
Related party monetary funds
In RMB Yuan
| Related parties | Ending Amount | Beginning Amount |
| China South Industries Group Finance Co., Ltd | 16,862,815,259.42 | 19,652,980,551.77 |
Changan Automobile Finance Co., Ltd
| Changan Automobile Finance Co., Ltd | 10,500,000,000.00 | 12,000,000,000.00 |
Total
| Total | 27,362,815,259.42 | 31,652,980,551.77 |
In 2022, the annual interest rate of deposits deposited with related parties is 0.35% - 2.25%, and the term is 0-12 months.
BorrowingShort-term borrowing
In RMB Yuan
| Related parties | Ending Amount | Beginning Amount |
| China South Industries Group Finance Co., Ltd | 140,466,500.00 | 73,300,000.00 |
Interest income of deferred payment
In RMB Yuan
| Related parties | Report period Amount | Same period of last period Amount |
| Wanyou Automobile Investment Co., Ltd | - | 15,340.71 |
Chengdu Wanyou Xiangyu Automobile Sales ServiceCo., Ltd
| Chengdu Wanyou Xiangyu Automobile Sales Service Co., Ltd | - | 50,616.82 |
| Chengdu Wanyou Automobile Trade Service Co., Ltd | - | 58,781.86 |
Yunnan Wanyou Automobile Sales Service Co., Ltd
| Yunnan Wanyou Automobile Sales Service Co., Ltd | - | 31,071.82 |
| Guizhou Wanyou Automobile Sales Service Co., Ltd | - | 70,417.82 |
Anhui Wanyou Automobile Sales Service Co., Ltd
| Anhui Wanyou Automobile Sales Service Co., Ltd | - | 1,862.83 |
| Jiangsu Wanyou Automobile Sales Service Co., Ltd | - | 199.12 |
| Chongqing Wanyou Economic Development Co., Ltd | 6,588.40 | 21,953.77 |
China Changan Automobile Group Hefei InvestmentCo., Ltd
| China Changan Automobile Group Hefei Investment Co., Ltd | - | - |
China Changan Automobile Group Tianjin Sales Co.,Ltd.
| China Changan Automobile Group Tianjin Sales Co., Ltd. | 2,489.29 | - |
| Total | 9,077.69 | 250,244.75 |
6. Payment and receivables of related parties
(1) 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 | Chongqing Chang'an Kuayue Vehicle Co., Ltd | - | - | 13,841,516.24 | - |
| Notes receivable | Chongqing Changan Kuayue Automobile Sales Co., Ltd. | 1,850,000.00 | - | 1,450,000.00 | - |
| Notes receivable | Chongqing Changan New Energy Vehicles Technology Co., Ltd. | 875,195,214.16 | - | 1,707,657,373.40 | - |
| Notes receivable | Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | 23,354,574.52 | - | 9,132,765.60 | - |
| Notes receivable | Wanyou Automobile Investment Co., Ltd. | 1,417,640,000.00 | - | 2,175,240,000.00 | - |
| Notes receivable | Chongqing Changan Minsheng Logistics Co. Ltd. | - | - | 1,895,178.03 | - |
| Notes receivable | Chongqing Wanyou Economic Development Co., Ltd. | 15,000,000.00 | - | 25,500,000.00 | - |
| Notes receivable | Chengdu Wanyou Auto Trade Service Co., Ltd. | 9,700,000.00 | - | 24,800,000.00 | - |
| Notes receivable | Yunnan Wanyou Auto Sales and Service Co., Ltd. | 24,000,000.00 | - | 47,000,000.00 | - |
| Items | Related parties | Ending balance | Beginning balance | ||
| Book balance | Provision for bad-debts | Book balance | Provision for bad-debts | ||
| Notes receivable | Guizhou Wanyou Auto Sales and Service Co., Ltd. | 3,950,000.00 | - | 5,500,000.00 | - |
| Notes receivable | Chongqing Tsingshan Industrial Co., Ltd. | 38,121,507.00 | - | 7,995,373.20 | - |
| Subtotal | 2,408,811,295.68 | - | 4,020,012,206.47 | - | |
| Account receivable | Changan Ford Automobile Co., Ltd. | 1,197,831.91 | - | 27,571,894.33 | - |
| Account receivable | Chang'an Mazda Automobile Co., Ltd | 10,664,563.95 | - | 10,443,141.10 | - |
| Account receivable | Chongqing Chang'an Kuayue Vehicle Co., Ltd | 39,757,144.90 | - | 31,600,512.92 | - |
| Account receivable | Chongqing Changan Kuayue Automobile Sales Co., Ltd. | - | - | 128,646.00 | - |
| Account receivable | Changan Auto Finance Co., Ltd. | 56,057,800.00 | - | 27,000,000.00 | - |
| Account receivable | Beijing Fang’an cresent taxi Co., Ltd. | 38,600,000.00 | - | 38,600,000.00 | - |
| Account receivable | Jiangling Holdings Co., Ltd. | 39,202,448.16 | - | 43,263,418.79 | - |
| Account receivable | Chongqing Changan New Energy Vehicles Technology Co., Ltd. | 1,677,622,417.76 | - | 664,390,126.60 | - |
| Account receivable | Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | 2,114,270.93 | - | 21,179,345.59 | - |
| Account receivable | Chongqing Chang'an industry (Group) Co., Ltd | 3,640,174.57 | - | 192,632.17 | - |
| Account receivable | Chongqing Changan Minsheng Logistics Co. Ltd. | 16,394,639.72 | - | 32,259,206.05 | - |
| Account receivable | China South Industries Group Commercial Factoring Co., Ltd. | 1,841.34 | - | 1,841.34 | - |
| Account receivable | Tiannak Lingchuan (Chongqing) exhaust system Co., Ltd | 0.03 | - | 0.03 | - |
| Account receivable | Chongqing Tsingshan Industrial Co., Ltd. | 17,242,386.53 | - | 15,547,355.69 | - |
| Account receivable | Nanjing LingHang Technology Co., Ltd. | 19,626,985.18 | - | 16,622,454.93 | - |
| Account receivable | Pakistan Master Automobile Co., Ltd. | 54,883,729.42 | - | 70,424,616.57 | - |
| Account receivable | Ald Fortune Auto Leasing & Renting (Shanghai) Co., Ltd. | 3,046,887.28 | - | - | - |
| Account receivable | Chongqing Nexteer Steering System Co.,Ltd. | 1,754,020.00 | - | - | - |
| Account receivable | Avita Technology (Chongqing) Co., Ltd. | 40,037,966.09 | - | - | |
| Subtotal | 2,021,845,107.77 | - | 999,225,192.11 | - | |
| Other receivable | Chongqing Changan New Energy Vehicles Technology Co., Ltd. | - | - | 25,935,000.00 | - |
| Other receivable | Chongqing Changxin Zhiqi Private Equity Investment Fund Partnership (Limited Partnership) | - | - | 26,670,000.00 | - |
| Other receivable | 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 | ||
| Other receivable | Chongqing Chang'an industry (Group) Co., Ltd | 1,157,446.69 | - | 1,157,446.69 | - |
| Other receivable | Chongqing Changan Minsheng Logistics Co. Ltd. | - | - | 596,131.62 | - |
| Other receivable | Nanjing LingHang Technology Co., Ltd. | - | - | 1,027,352.32 | - |
| Other receivable | China South Industry Group Finance Co., Ltd. | 143,925,948.49 | - | - | - |
| Other receivable | Changan Mazda Engine Co., Ltd. | 41,500,000.00 | - | - | - |
| Other receivable | Changan Auto Finance Co., Ltd. | 66,943,616.44 | - | - | - |
| Other receivable | China South Industries Group Financial Leasing Co., Ltd. | 411,666.67 | - | - | - |
| Subtotal | 255,438,678.29 | - | 56,885,930.63 | - | |
| Advanced payment | Chongqing Changan New Energy Vehicles Technology Co., Ltd. | 7,436,914.50 | - | 5,660,917.50 | - |
| Advanced payment | Beijing Wutong Chelian Technology Co., Ltd. | 13,221,118.24 | - | 21,982,556.75 | - |
| Advanced payment | Chongqing Nexteer Steering System Co.,Ltd. | 50,000,000.00 | - | 50,000,000.00 | - |
| Advanced payment | Chongqing Tsingshan Industrial Co., Ltd. | 180,000,000.00 | - | 180,000,000.00 | - |
| Advanced payment | Chongqing Shangfang Automobile Fittings Co., Ltd. | 800,000.00 | - | - | - |
| Subtotal | 251,458,032.74 | - | 257,643,474.25 | - | |
(2) Accounts payable to related parties of listed companies
In RMB Yuan
| Items | Related parties | Ending balance | Beginning balance |
| Notes payable | Chongqing Changan New Energy Vehicles Technology Co., Ltd. | 73,653,575.22 | 100,200,000.00 |
| Notes payable | South Inter Air-conditioner Co.,Ltd. | 154,858,407.08 | 76,300,000.00 |
| Notes payable | South Tianhe Chassis System Co., Ltd. | 30,657,216.00 | 33,896,189.65 |
| Notes payable | Harbin Dongan Auto Engine Co., Ltd. | 84,212,389.38 | 144,790,000.00 |
| Notes payable | Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | 317,309,734.51 | 449,050,000.00 |
| Notes payable | Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. | 2,486,725.66 | 29,530,000.00 |
| Notes payable | Sichuan Ningjiang Shanchuan Machinery Co, Ltd. | 60,891,849.56 | 71,204,039.75 |
| Notes payable | Chongqing Changan Minsheng Logistics Co. Ltd. | 127,360,601.45 | 293,970,489.20 |
| Notes payable | Chongqing Changan Construction Co., Ltd. | - | 2,417,746.00 |
| Notes payable | Chongqing Shangfang Automobile Fittings Co., Ltd. | 47,265,458.94 | 40,747,850.00 |
| Notes payable | Chongqing Yihong Engineering Plastic Products Co., Ltd. | 424,778.76 | 7,990,000.00 |
| Notes payable | Hubei Xiaogan Huazhong Automobile Light Co., Ltd. | 23,964,601.77 | 15,230,000.00 |
| Items | Related parties | Ending balance | Beginning balance |
| Notes payable | Chongqing Jianshe Automobile Air-conditioner Co., Ltd. | 32,477,876.11 | 57,320,000.00 |
| Notes payable | Chengdu Wanyou Filter Co., Ltd. | 26,495,575.22 | 34,230,000.00 |
| Notes payable | Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. | 2,115,044.25 | 4,420,000.00 |
| Notes payable | Chongqing Dajiang Jiexin Forging Co., Ltd. | 1,469,026.55 | 2,230,000.00 |
| Notes payable | Chongqing Nexteer Steering System Co.,Ltd. | 397,106,194.69 | 345,500,000.00 |
| Notes payable | Southern Fojiya Auto Parts Co., Ltd. | 47,407,079.65 | 27,690,000.00 |
| Notes payable | Chongqing Construction Tongda Industrial Co., Ltd. | 13,920,353.98 | 12,789,350.84 |
| Notes payable | Hubei Huazhong Marelli Automobile Lighting Co., Ltd. | 195,194,690.27 | 115,860,000.00 |
| Notes payable | Hunan Tianyan Machinery Co., Ltd. | - | 45,800,000.00 |
| Notes payable | Tiannak Lingchuan (Chongqing) exhaust system Co., Ltd | 16,132,743.36 | 9,110,000.00 |
| Notes payable | Dajiang Yapp Automotive Systems Co., Ltd. | 175,796,460.18 | 172,180,000.00 |
| Notes payable | Chongqing Hanon Jianshe Automotive Thermal Systems Co., Ltd. | 60,973,451.33 | 83,160,000.00 |
| Notes payable | Nattiefu transmission system (Chongqing) Co., Ltd | 118,628,318.58 | 76,420,000.00 |
| Notes payable | Chongqing Tsingshan Industrial Co., Ltd. | 1,469,914,925.37 | 997,630,000.00 |
| Notes payable | Chongqing Dajiang Tongyang Plastics Co., Ltd. | 231,237,035.40 | 72,710,000.00 |
| Notes payable | Chongqing Lingchuan Auto Parts Manufacturing Technology Co., Ltd. | 52,238,938.05 | 50,210,000.00 |
| Notes payable | Changan Reis (Chongqing) Robotic Intelligent Equipment Co., Ltd. | 2,332,739.20 | 16,298,837.60 |
| Notes payable | Longchang Shanchuan Precision Welded Tube Co., Ltd. | 3,168,141.59 | 700,000.00 |
| Notes payable | Sichuan Jian'an Industrial Co.,Ltd. | 188,739.00 | - |
| Notes payable | Hunan Tianyan Machinery Co., Ltd | 2,761,061.95 | - |
| Notes payable | Chongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd. | 750,000.00 | - |
| Subtotal | 3,773,393,733.06 | 3,389,584,503.04 | |
| Account payable | Changan Ford Automobile Co., Ltd. | 1,876,397.28 | 1,943,909.28 |
| Account payable | Chongqing Chang'an Kuayue Vehicle Co., Ltd | 1,382.56 | 5,271,250.56 |
| Account payable | Jiangling Holdings Co., Ltd. | - | 37,578,608.85 |
| Account payable | Chongqing Changan New Energy Vehicles Technology Co., Ltd. | 569,161,014.38 | 45,785,722.56 |
| Account payable | Beijing Wutong Chelian Technology Co., Ltd. | 1,890,124.42 | 5,798,358.99 |
| Account payable | Sichuan Jian'an Industrial Co.,Ltd. | 77,788,415.77 | 114,453,923.31 |
| Account payable | South Inter Air-conditioner Co.,Ltd. | 73,709,692.40 | 156,165,656.54 |
| Account payable | South Tianhe Chassis System Co., Ltd. | 100,903,509.05 | 218,042,109.95 |
| Account payable | Hafei Automobile Co., Ltd | 585,059.89 | 949,114.25 |
| Account payable | Harbin Dongan Auto Engine Co., Ltd. | 80,984,236.14 | 155,019,007.24 |
| Items | Related parties | Ending balance | Beginning balance |
| Account payable | Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | 61,479,413.92 | 79,164,395.58 |
| Account payable | Chengdu Huachuan Electric Equipment Co., Ltd. | 37,181,494.47 | 42,505,846.09 |
| Account payable | Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. | 2,216,025.30 | 8,406,255.55 |
| Account payable | Sichuan Ningjiang Shanchuan Machinery Co, Ltd. | 20,879,087.61 | 24,528,900.28 |
| Account payable | Chongqing Chang'an industry (Group) Co., Ltd | 230,300.45 | 601,702.05 |
| Account payable | Chongqing Changan Minsheng Logistics Co. Ltd. | 15,738,483.05 | 26,921,418.99 |
| Account payable | Chongqing Shangfang Automobile Fittings Co., Ltd. | 13,992,129.08 | 26,347,971.01 |
| Account payable | Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. | 8,136,111.93 | 16,297,923.33 |
| Account payable | Chongqing Yihong Engineering Plastic Products Co., Ltd. | 8,402,004.46 | 1,278,419.64 |
| Account payable | Hubei Xiaogan Huazhong Automobile Light Co., Ltd. | 14,894,483.07 | 22,108,475.58 |
| Account payable | Yunnan Xiyi Industries Co., Ltd. | 11,932,179.26 | 1,815,316.79 |
| Account payable | Chongqing Jianshe Automobile Air-conditioner Co., Ltd. | 14,076,145.30 | 22,265,092.41 |
| Account payable | Chongqing Wanyou Economic Development Co., Ltd. | 5,873,696.66 | 3,256,626.28 |
| Account payable | Chengdu Wanyou Filter Co., Ltd. | 24,009,421.78 | 14,085,492.47 |
| Account payable | Chongqing Dajiang Yuqiang Plastic Co., Ltd. | 4,817,919.08 | 4,627,147.80 |
| Account payable | Chongqing Changrong Machinery Co., Ltd. | 42,596,502.91 | 48,459,589.80 |
| Account payable | Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. | 223,713.10 | 1,137,544.54 |
| Account payable | Chongqing Dajiang Jiexin Forging Co., Ltd. | 202,240.50 | 103,404.61 |
| Account payable | Chongqing Jialing Yimin Special Equipment Co., Ltd. | 92,474.78 | 104,496.50 |
| Account payable | Chongqing Nexteer Steering System Co.,Ltd. | 244,007,757.31 | 303,819,542.94 |
| Account payable | Southern Fojiya Auto Parts Co., Ltd. | 77,443,544.95 | 111,176,628.27 |
| Account payable | Chongqing Wanyou Xingjian Auto Sales & Service Co., Ltd. | 20,842.80 | 20,842.80 |
| Account payable | Chongqing Xiyi automobile connecting rod Co., Ltd | 34,001.89 | 38,422.14 |
| Account payable | Chongqing Construction Tongda Industrial Co., Ltd. | 9,123,901.09 | 16,219,154.70 |
| Account payable | Hubei Huazhong Marelli Automobile Lighting Co., Ltd. | 109,758,388.95 | 276,099,169.78 |
| Account payable | Hunan Tyen Machinery Co., Ltd. | - | 2,083,314.54 |
| Account payable | Tiannak Lingchuan (Chongqing) exhaust system Co., Ltd | - | 8,304,368.73 |
| Items | Related parties | Ending balance | Beginning balance |
| Account payable | Chongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd. | 5,077,519.43 | 14,889,297.76 |
| Account payable | Dajiang Yapp Automotive Systems Co., Ltd. | 106,359,451.72 | 130,308,165.60 |
| Account payable | United Automotive Electronics (Chongqing) Co., Ltd | 73,333,178.48 | 43,729,758.05 |
| Account payable | Chongqing Hanon Jianshe Automotive Thermal Systems Co., Ltd. | 26,538,929.09 | 22,651,086.10 |
| Account payable | Lear Chang'an (Chongqing) Automotive System Co., Ltd | 47,581.98 | 59,478,481.96 |
| Account payable | Nattiefu transmission system (Chongqing) Co., Ltd | 54,552,553.70 | 67,131,433.77 |
| Account payable | Chongqing Tsingshan Industrial Co., Ltd. | 491,172,400.35 | 289,136,235.05 |
| Account payable | Chongqing Dajiang Tongyang Plastics Co., Ltd. | 55,435,639.23 | 122,247,111.17 |
| Account payable | Chongqing Lingchuan Auto Parts Manufacturing Technology Co., Ltd. | 32,841,577.74 | 23,129,987.81 |
| Account payable | Changan Reis (Chongqing) Robotic Intelligent Equipment Co., Ltd. | 14,909,734.42 | 129,036.87 |
| Account payable | Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. | 1,544.70 | |
| Account payable | Guizhou Wanyou Auto Sales and Service Co., Ltd. | - | |
| Account payable | Chongqing Jianshe Mechanical & Electrical Equipment Co., Ltd. | 41,828.24 | 47,265.91 |
| Account payable | Longchang Shanchuan Precision Welded Tube Co., Ltd. | 2,617,874.56 | 2,359,553.08 |
| Account payable | CDGM Tanaka Environmental Catalyst Co.,Ltd. | - | 83,175.03 |
| Account payable | Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. | 56,251.08 | 56,251.08 |
| Account payable | Chongqing Changfeng Jiquan Machinery Co., Ltd. | - | 1,850,577.35 |
| Account payable | China Changan Automobile Group Co., Ltd. | - | 14,756.94 |
| Account payable | Chongqing Qingshan Transmission Sales Co., Ltd. | 9,814,025.62 | 10,260,951.97 |
| Account payable | Beijing Beiji Mechanical and Electrical Industry Co., Ltd. | 10,471.18 | 29,268.25 |
| Account payable | Chengdu Lingchuan Special Industry Co., Ltd. | 317,173.63 | 325,142.83 |
| Account payable | Chongqing Automobile Air-conditioner Co., Ltd. | 205,041.51 | 205,041.51 |
| Account payable | Chongqing Pingshan Tk Carburetor Co., Ltd. | 12,590.46 | 70,083.18 |
| Account payable | Chongqing Jianshe Industry (Group) Co., Ltd. | 723,638.35 | 857,195.55 |
| Account payable | Hangzhou Chelizi Intelligent Technology Co., Ltd. | 12,350.00 | 12,350.00 |
| Account payable | Chongqing Changjiang Electrician Industry Group Co.,Ltd. | 8,995.09 | - |
| Account payable | Chongqing Changan Minsheng Dingjie Logistics Co.,Ltd. | 5,005.12 | - |
| Items | Related parties | Ending balance | Beginning balance |
| Account payable | Southwest Ordnance Industry Chongqing Environmental Protection Research Institute Co., Ltd. | 726,118.30 | - |
| Account payable | Hunan Tianyan Machinery Co., Ltd | 938,809.93 | - |
| Account payable | Nanchang Jiangling Group Tianren Auto Parts Co., Ltd. | 40,473.56 | - |
| Subtotal | 2,510,061,308.36 | 2,591,788,876.25 | |
| Contract liabilities | Changan Mazda Engine Co., Ltd. | 3,256,185.92 | 3,060,368.00 |
| Contract liabilities | Chongqing Anfu Automobile Co., Ltd. | - | 73,268.00 |
| Contract liabilities | Hafei Automobile Co., Ltd | 670,500.00 | 670,500.00 |
| Contract liabilities | China Changan Automobile Group Tianjin Sales Co., Ltd. | 28,700,026.13 | 37,209,408.83 |
| Contract liabilities | Wanyou Automobile Investment Co., Ltd. | 19,883,325.74 | 68,334,467.34 |
| Contract liabilities | Chongqing Shangfang Automobile Fittings Co., Ltd. | 12,979.98 | 12,979.98 |
| Contract liabilities | Chongqing Wanyou Economic Development Co., Ltd. | 127,296,062.70 | 269,281,235.61 |
| Contract liabilities | Chengdu Wanyou Auto Trade Service Co., Ltd. | 10,551,862.75 | 51,006,262.19 |
| Contract liabilities | Yunnan Wanyou Auto Sales and Service Co., Ltd. | 45,547,345.95 | 101,043,742.82 |
| Contract liabilities | Guizhou Wanyou Auto Sales and Service Co., Ltd. | 43,657,174.14 | 133,567,022.54 |
| Contract liabilities | Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. | 82,528,018.07 | 118,480,778.11 |
| Contract liabilities | Yunnan Wanxing Auto Sales Service Co., Ltd. | - | 15,033,974.67 |
| Contract liabilities | Panzhihua Wanyou Auto Sales & Service Co., Ltd. | 25,444.47 | 17,855.01 |
| Contract liabilities | Ya'an Wanyou Auto Sales and Service Co., Ltd. | 59,061.55 | 23,611.57 |
| Contract liabilities | Chongqing Wanyou Ducheng Auto Sales Service Co., Ltd. | 91,454.74 | 21,566.76 |
| Contract liabilities | Chongqing Wanyou Xingjian Auto Sales & Service Co., Ltd. | 81,681.75 | 68,346.03 |
| Contract liabilities | Luzhou Wanyou Automobile Service Co., Ltd. | 33,250.36 | 50,528.84 |
| Contract liabilities | Chengdu Wanyou Auto Sales and Service co.,Ltd. | 70,485.86 | 30,005.78 |
| Contract liabilities | Bazhong Wanyou Auto Sales & Service Co., Ltd. | 50,426.48 | 50,426.48 |
| Contract liabilities | China Changan Automobile Group Hefei Investment Co., Ltd. | 10,273.00 | 10,273.00 |
| Contract liabilities | Chongqing Hanon Jianshe Automotive Thermal Systems Co., Ltd. | - | 147,080.20 |
| Contract liabilities | Jiangling Holdings Co., Ltd. | - | 6,854,200.00 |
| Contract liabilities | Anhui Wanyou Automobile Sales Service Co., Ltd. | 12,059,637.03 | 36,775,197.75 |
| Items | Related parties | Ending balance | Beginning balance |
| Contract liabilities | Jiangsu Wanyou Automobile Sales Service Co., Ltd. | 17,289,631.06 | 41,137,071.23 |
| Contract liabilities | Chongqing Chang'an Minsheng Boyu Logistics Co., Ltd. | 593,181.33 | 2,646,426.62 |
| Contract liabilities | Guangxi Wanyou Auto Sales and Service Co., Ltd. | - | 302.40 |
| Contract liabilities | Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. | 12,497,423.10 | 22,362,432.39 |
| Contract liabilities | Ya'an Changan Affordable Housing Construction Co., Ltd. | - | 10,000.00 |
| Contract liabilities | Chongqing Chang'an industry (Group) Co., Ltd | 114,000.00 | - |
| Contract liabilities | Pakistan Master Automobile Co., Ltd. | 13,261,676.93 | - |
| Contract liabilities | Chengdu Wanyou Trading Co., Ltd. | 11,564.00 | - |
| Contract liabilities | Chongqing Changan Minsheng Logistics Co. Ltd. | 37,040.33 | - |
| Contract liabilities | Nanchang Jiangling Group Tianren Auto Parts Co., Ltd. | 6,854,200.00 | - |
| Subtotal | 425,243,913.37 | 907,979,332.15 | |
| Other payables | Chongqing Chang'an Kuayue Vehicle Co., Ltd | 163,007,855.00 | 163,007,855.00 |
| Other payables | Jiangling Holdings Co., Ltd. | - | 1,182,839.61 |
| Other payables | Chongqing Changan New Energy Vehicles Technology Co., Ltd. | 699,271,551.58 | 28,204,667.10 |
| Other payables | Sichuan Jian'an Industrial Co.,Ltd. | 62,545.95 | 709,839.37 |
| Other payables | Chongqing Anfu Automobile Co., Ltd. | 100,000.00 | 200,000.00 |
| Other payables | South Inter Air-conditioner Co.,Ltd. | - | 425,490.20 |
| Other payables | South Tianhe Chassis System Co., Ltd. | 553,186.42 | 606,242.21 |
| Other payables | Harbin Dongan Auto Engine Co., Ltd. | - | 4,839.23 |
| Other payables | Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | 1,180,233.02 | 1,258,466.14 |
| Other payables | Chengdu Huachuan Electric Equipment Co., Ltd. | - | 356,673.20 |
| Other payables | Chongqing Chang'an industry (Group) Co., Ltd | 899,884.90 | 2,010,787.85 |
| Other payables | Chongqing Changan Minsheng Logistics Co. Ltd. | 415,254,444.97 | 123,243,509.52 |
| Other payables | Chongqing Changan Construction Co., Ltd. | 26,375,786.10 | 26,391,448.08 |
| Other payables | Chongqing Changan Property Management Co., Ltd. | 1,450,735.65 | 1,587,169.00 |
| Other payables | Chongqing Shangfang Automobile Fittings Co., Ltd. | 22,600.00 | 3,390.00 |
| Other payables | Hubei Xiaogan Huazhong Automobile Light Co., Ltd. | - | 1,349.36 |
| Items | Related parties | Ending balance | Beginning balance |
| Other payables | Yunnan Xiyi Industries Co., Ltd. | - | 25,130.48 |
| Other payables | Chongqing Wanyou Economic Development Co., Ltd. | 122,799.84 | 245,798.56 |
| Other payables | Chengdu Wanyou Auto Trade Service Co., Ltd. | 69,894.53 | 1,296,988.78 |
| Other payables | Chengdu Wanyou Filter Co., Ltd. | 153,622.59 | 143,553.10 |
| Other payables | Yunnan Wanyou Auto Sales and Service Co., Ltd. | 136,272.10 | 3,756,167.26 |
| Other payables | Guizhou Wanyou Auto Sales and Service Co., Ltd. | 71,521.60 | 828,912.03 |
| Other payables | Panzhihua Wanyou Auto Sales & Service Co., Ltd. | 13,141.40 | 24,646.80 |
| Other payables | Ya'an Wanyou Auto Sales and Service Co., Ltd. | 8,309.50 | 733,079.80 |
| Other payables | Chongqing Wanyou Ducheng Auto Sales Service Co., Ltd. | - | 42,215.90 |
| Other payables | Luzhou Wanyou Automobile Service Co., Ltd. | 5,399.80 | 4,401.62 |
| Other payables | Chengdu Wanyou Auto Sales and Service co.,Ltd. | - | 350,000.00 |
| Other payables | Chongqing Construction Tongda Industrial Co., Ltd. | - | 21,164.90 |
| Other payables | Hubei Huazhong Marelli Automobile Lighting Co., Ltd. | - | 530,196.00 |
| Other payables | Hunan Tyen Machinery Co., Ltd. | - | 951,324.40 |
| Other payables | United Automotive Electronics (Chongqing) Co., Ltd | 317,527.48 | 263,423.01 |
| Other payables | Nattiefu transmission system (Chongqing) Co., Ltd | 1,072,449.10 | 89,857.60 |
| Other payables | Chongqing Tsingshan Industrial Co., Ltd. | 1,721,008.08 | 565,792.16 |
| Other payables | Chongqing Dajiang Tongyang Plastics Co., Ltd. | - | 1,067,850.00 |
| Other payables | Chongqing Lingchuan Auto Parts Manufacturing Technology Co., Ltd. | 56,239.83 | 332,961.91 |
| Other payables | Changan Reis (Chongqing) Robotic Intelligent Equipment Co., Ltd. | 517,902.06 | 18,027,403.31 |
| Other payables | Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. | - | 5,204,000.00 |
| Other payables | Jiangsu Wanyou Automobile Sales Service Co., Ltd. | 548.00 | 504,400.00 |
| Other payables | Chongqing Chang'an Intelligent Industrial Technology Service Co., Ltd | 1,101,001.00 | 1,507,567.09 |
| Other payables | Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. | - | 50,000.00 |
| Other payables | China Changan Automobile Group Co., Ltd. | 1,000.00 | 1,000.00 |
| Other payables | Chengdu Wanyou Trading Co., Ltd. | 1,795.00 | 12,333.20 |
| Other payables | Ald Fortune Auto Leasing & Renting (Shanghai) Co., Ltd. | 9,000,000.00 | 1,500,000.00 |
| Items | Related parties | Ending balance | Beginning balance |
| Other payables | SIAMC Management Co., Ltd. | - | 253,750,000.00 |
| Other payables | Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. | 950,000.00 | - |
| Other payables | Hunan Tianyan Machinery Co., Ltd | 695,176.00 | - |
| Other payables | Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. | 10,227.70 | - |
| Other payables | Chongqing Nexteer Steering System Co.,Ltd. | 316,400.00 | - |
| Other payables | Chongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd. | 423,750.00 | - |
| Subtotal | 1,324,944,809.20 | 641,024,733.78 | |
XIII. Share-based payments
1. General information
√ Applicable □ Non-applicable
Unit: share currency: RMB
| Total amount of equity instruments granted by the company in the current period | 0.00 |
| Total amount of equity instruments exercised by the company in the current period | 0.00 |
| Total amount of various equity instruments expired in the current period of the company | 0.00 |
| The scope of exercise price of stock options issued by the company at the end of the period and the remaining term of the contract | No |
| The scope of exercise price of other equity instruments issued at the end of the period and the remaining term of the contract | Restricted shares were granted for the first time in February 2021, the grant price was 6.66 yuan/share (before adjustment), and the remaining term is 44 months; Restricted shares were reserved for grant in November 2021, the grant price was 9.93 yuan/share (before adjustment), and the remaining term is 54 months |
2. Equity settled share based payment
√ Applicable □ Non-applicable
In RMB Yuan
| Determination method of fair value of equity instruments on the grant date | Market price method model calculation |
| Basis for determining the number of exercisable equity instruments | Based on the best estimate of the number of exercisable equity instruments, the relevant expenses and costs are calculated according to the fair value of the equity instruments on the grant date |
| Reasons for significant differences between the current estimate and the previous estimate | No |
| Cumulative amount of equity settled share based payment included in capital reserve | 460,850,767.92 |
| Total recognized expenses of equity settled share based payment in the current period | 192,310,900.00 |
3. Cash settled share based payment
□ Applicable √ Not applicable
4. Modification and termination of share based payment
□ Applicable √ Not applicable
5. Other
□ Applicable √ Not applicable
XIV. Commitments and Contingencies
1. Significant commitments
Contracted, but not provided for
| Items | 2022.6.30 | 2021.12.31 |
| Capital commitments | 8,259,320,378.94 | 9,188,776,086.05 |
| Investment commitments | 1,319,000,000.00 | 1,509,000,000.00 |
| Total | 9,578,320,378.94 | 10,697,776,086.05 |
2. Contingencies
By June 30, 2022, no material contingencies needed to be disclosed.
XV. Events after the balance sheet dateNone
XVI. Other important events
1. Segment information
The Group identifies operating segments based on the internal organization structure, managerial requirements and internal reportingsystem, and identifies reportable segments based on operating segments and discloses segment information by operating segment.
An operating segment is a component of the Group that meets all the following conditions:
(1) it engages in business activities from which it may earn revenues and incur expenses;
(2) its operating results are regularly reviewed by the Company’s management to make decisions about resources to be allocated tothe segment and assess its performance; and
(3) the Group can obtain relevant accounting information such as its financial position, operating results and cash flows.
If two or more segments have similar economic characteristics and meet certain conditions, they can be aggregated into a singleoperating segment.
The revenue and profit of the Group mainly consist of the automobile manufacturing and domestic sales. The Group’s principalassets are in China. The operating performance of the Group has been evaluated as a whole by the management. So the segmentreport has not been prepared for this year.
2. Lease arrangements
(1) As lessor
The Group leases buildings, machinery and equipment and vehicles for a lease term of 1-15 years, forming an operating lease.Details for investment property and operating leased fixed assets refer to note VII 12 and 13.
The income related to operating leases are listed as follows:
In RMB Yuan
| Report period Amount | |
| Leasehold Income | 145,340,699.18 |
According to the lease contract signed with the lessee, the minimum lease collection amount of irrevocable lease is as follows:
In RMB Yuan
| Ending balance | |
| Less than 1 year (including 1 year) | 426,395,931.18 |
| 1 to 2 years (including 2 years) | 700,674,461.93 |
| 2 to 3 years (including 3 years) | 512,269,235.96 |
| 3 to 4 years (including 3 years) | 124,012,765.96 |
| 4 to 5 years (including 3 years) | 8,836,477.17 |
| Over 5 years | 27,684,118.42 |
| Total | 1,799,872,990.62 |
(2) As lessee
In RMB Yuan
| Report period Amount | |
| Interest expense of lease liabilities | 1,957,921.01 |
| Short term lease expenses with simplified treatment included in current profit and loss | 27,691,557.40 |
| Lease expense of low value assets with simplified treatment included in current profit and loss | 1,334,969.44 |
| Total cash outflow related to leasing | 64,511,685.33 |
The leased assets leased by the Group include buildings and other equipment used in the operation activities. The lease term ofhouses and buildings is usually 1-5 years, and that of other equipment is usually 2-5 years.XVII. Notes to the main items of the parent company’s financial statements
1. Account Receivables
(1) Aging analysis of accounts receivable is as follow:
In RMB Yuan
| Account receivable age | Ending balance | Beginning balance |
| Less than 1 year (including 1 year) | 6,254,482,878.15 | 6,741,369,355.22 |
| 1 to 2 years (including 2 years) | 818,651,527.87 | 353,774,325.51 |
| 2 to 3 years (including 3 years) | 19,917,931.12 | 227,529,170.91 |
| Over 3 years | 323,296,410.52 | 711,074,867.37 |
| Total | 7,416,348,747.66 | 8,033,747,719.01 |
| Minus：Provision | (102,667,294.30) | (102,237,112.42) |
| 7,313,681,453.36 | 7,931,510,606.59 |
(2) Movements of provision for accounts receivable are as follows:
In RMB Yuan
| Items | Beginning balance | Report period Amount | Ending balance | |||
| Accrual | Reversal | Write-off | Others | |||
| 2022.6.30 | 102,237,112.42 | 1,613,021.49 | 1,182,839.61 | 102,667,294.30 | ||
| 2021.12.31 | 93,484,241.66 | 8,752,870.76 | 102,237,112.42 | |||
The amount of bad debt provision recovered or reversed in the current period:
In RMB Yuan
| Company name | Reversal amount | Reversal way |
| Jiangling Holdings Co., Ltd. | 1,182,839.61 | Recover money |
| Total | 1,182,839.61 |
(3) Disclosure of accounts receivable
In RMB Yuan
| Items | Ending balance | ||||
| Book balance | Provision for bad-debts | Book value | |||
| Amount | （%） | Amount | （%） | ||
| Individual assessment of credit expected loss and provision for bad debts | 6,954,854,852.70 | 93.78 | 76,456,236.54 | 1.10 | 6,878,398,616.16 |
| Assess bad debt provision for expected credit expected loss according to credit risk characteristics combination | 461,493,894.96 | 6.22 | 26,211,057.76 | 5.68 | 435,282,837.20 |
| Total | 7,416,348,747.66 | 100.00 | 102,667,294.30 | 1.38 | 7,313,681,453.36 |
| Items | Beginning balance | ||||
| Book balance | Provision for bad-debts | Book value | |||
| Amount | （%） | Amount | （%） | ||
| Individual assessment of credit expected loss and provision for bad debts | 7,844,348,937.41 | 97.64 | 77,639,076.15 | 0.99 | 7,766,709,861.26 |
| Assess bad debt provision for expected credit expected loss according to credit risk | 189,398,781.60 | 2.36 | 24,598,036.27 | 12.99 | 164,800,745.33 |
| characteristics combination | |||||
| Total | 8,033,747,719.01 | 100.00 | 102,237,112.42 | 1.27 | 7,931,510,606.59 |
2. Other receivables
In RMB Yuan
| Items | Ending balance | Beginning balance |
| Dividends receivable | 255,356,145.11 | |
| Other receivables | 140,246,934.04 | 1,756,623,581.93 |
| Total | 395,603,079.15 | 1,756,623,581.93 |
(1) Dividends receivable
In RMB Yuan
| Items ( or invested units ) | Ending balance | Beginning balance |
| China South Industry Group Finance Co., Ltd. | 143,737,428.00 | |
| China South Industries Group Financial Leasing Co., Ltd. | 411,666.67 | |
| China Automotive Power Battery Research Institute Co., Ltd. | 73,034.00 | |
| Changan Auto Finance Co., Ltd. | 66,943,616.44 | |
| Changan Mazda Engine Co., Ltd. | 41,500,000.00 | |
| Southwest Securities Co.,Ltd. | 2,690,400.00 | |
| Total | 255,356,145.11 |
(2) Other receivables
1) Aging analysis of other receivables is as follows:
In RMB Yuan
| Account receivable age | Ending balance | Beginning balance |
| Within 1 year | 115,234,097.54 | 1,745,128,693.03 |
| 1 to 2 years | 15,575,042.47 | 1,413,046.51 |
| 2 to 3 years | 219,332.85 | 497,065.04 |
| Over 3 years | 16,293,996.23 | 16,804,017.31 |
| Total | 147,322,469.09 | 1,763,842,821.89 |
| Minus：Provision | (7,075,535.05) | (7,219,239.96) |
| 140,246,934.04 | 1,756,623,581.93 |
2) Analysis of other receivables by nature is as follows:
In RMB Yuan
| Items | Ending balance | Beginning balance |
| Energy-saving and new energy subsidy | 358,470,077.96 |
| Prepaid equity investment | 526,670,000.00 | |
| Petty cash | 37,672,721.77 | 21,998,665.75 |
| Disposal income of assets | 3,984,842.15 | |
| Internal transactions | 46,193,815.58 | 791,370,940.07 |
| Others | 56,380,396.69 | 54,129,056.00 |
| Total | 140,246,934.04 | 1,756,623,581.93 |
3) The changes in the provision for bad debts for other receivables based on the 12-month expected credit loss and theexpected credit loss for the entire duration are as follows:
In RMB Yuan
| Items | Beginning balance | Report period Amount | Ending balance | |||
| Accrual | Reversal | Write-off | Others | |||
| 2022.6.30 | 7,219,239.96 | 59,477.10 | 203,182.01 | 7,075,535.05 | ||
| 2021.12.31 | 7,154,284.79 | 64,955.17 | 7,219,239.96 | |||
Among them, the amount of bad debt provision reversed or recovered in the current period is important:
In RMB Yuan
| Company name | Reversal amount | Reversal way |
| Jiangling Holdings Co., Ltd. | 203,182.01 | Recover money |
| Total | 203,182.01 |
4) Top five debtors of other receivables are as follows:
In RMB Yuan
| Items | Nature of payment | Ending balance | Aging | Proportion of total other receivables (%) | Ending balance of provision |
| First place | Internal transactions | 20,677,497.16 | Within 1 year | 14.04 | |
| Second place | Electricity expense | 10,815,169.74 | Within 1 year | 7.34 | |
| Third place | Gas costs | 6,143,019.88 | Within 1 year | 4.17 | |
| Fourth place | Margin | 3,213,301.80 | 1 to 2 years | 2.18 | |
| Fifth place | Extended insurance premiums | 3,000,000.00 | Within 1 year | 2.04 | |
| Total | 43,848,988.58 | 29.76 |
5) Other receivables derecognized due to transfer of financial assets
As of June 30, 2022, the Group had no other receivables derecognized as financial asset transfers (December 31, 2021: None).
3. Long-term equity investment
（1） Investment in subsidiaries
In RMB Yuan
| Investee | Opening Balance | Changes during report period | Ending Balance | Ending Balance of provision | |||
| Addition | reduce investment | Provision for impairment | Other reduction | ||||
| Nanjing Changan Automobile Co., Ltd. | 422,533,259.00 | 422,533,259.00 | |||||
| Chongqing Changan International Automobile Sales Co., Ltd. | 13,068,581.00 | 13,068,581.00 | |||||
| Chongqing Changan Automobile Supporting Service Co., Ltd. | 29,700,000.00 | 29,700,000.00 | |||||
| Chongqing Changan Special Automobile Co., Ltd. | 2,500,000.00 | 2,500,000.00 | |||||
| Chongqing Changan Europe Design Academy Co., Ltd. | 155,469,913.50 | 155,469,913.50 | |||||
| Chongqing Changan New Energy Automobile Co. Ltd. | - | 49,194,195.00 | |||||
| Changan United Kingdom R&D Center Co., Ltd. | 250,093,850.95 | 250,093,850.95 | |||||
| Chongqing Changan Connected Car Technology Co., Ltd. | 88,500,000.00 | 88,500,000.00 | |||||
| Beijing Changan R&D Center Co., Ltd. | 1,000,000.00 | 1,000,000.00 | |||||
| Changan United States R&D Center Co., Ltd. | 10,243,460.00 | 10,243,460.00 | |||||
| Changan Japan Designing Center Co.,Ltd. | 1,396,370.15 | 1,396,370.15 | |||||
| Hefei Changan Automobile Co.,Ltd. | 1,535,367,765.23 | 1,535,367,765.23 | |||||
| Changan Automobile Russia Co., Ltd. | 251,242,589.15 | 251,242,589.15 | |||||
| Chongqing Changan Lingyao Automobile Co., Ltd. | 594,949,059.30 | 594,949,059.30 | |||||
| Changan Brazil Holdings Limited | 2,584,556.97 | 2,584,556.97 | |||||
| Changan Automobile Investment (Shenzhen) | 235,248,871.00 | 2,640,640.00 | 237,889,511.00 | ||||
| Co., Ltd. | |||||||
| Chongqing Anyi Automobile Technical Service Co., Ltd. | 2,000,000.00 | 2,000,000.00 | |||||
| Guangzhou Changan New Energy Automobile Co. Ltd. | 4,000,000.00 | 4,000,000.00 | |||||
| Xiamen Changan New Energy Automobile Co. Ltd. | 2,000,000.00 | 2,000,000.00 | |||||
| Chongqing Chehemei Technology Co., Ltd. | 10,000,000.00 | 10,000,000.00 | |||||
| Nanjing Changan New Energy Automobile Sales & Service Co., Ltd. | 50,000,000.00 | 50,000,000.00 | |||||
| Chongqing Changan Automobile Software Technology Co., Ltd. | 99,000,000.00 | 99,000,000.00 | |||||
| Chongqing Changan Kaicheng Automobile Technology Co., Ltd. | 977,793,971.55 | 977,793,971.55 | |||||
| Avatr Technology (Chongqing) Co., Ltd. | 153,841,669.77 | （153,841,669.77） | |||||
| Chongqing Xingzhi Technology Co., Ltd. (Note 1) | |||||||
| Total | 4,892,533,917.57 | 2,640,640.00 | （153,841,669.77） | 4,741,332,887.80 | 49,194,195.00 |
Note 1: In May 2022, Chongqing Xingzhi Technology Co., Ltd. was added as a subsidiary.
（2） Investment in associates and joint ventures
In RMB Yuan
| Investee | Opening Balance | Changes during report period | Ending Balance | |||||||
| Addition | reduce investment | Investment income/loss under equity method | Other comprehensive income | Other changes in equity | Dividend of cash declared | Provision for impairment | Others | |||
| 1. Joint ventures | ||||||||||
| Changan Ford Automobile Co., Ltd. | 2,934,876,043.99 | 522,860,908.17 | 3,457,736,952.16 | |||||||
| Changan Mazda Automobile Co., Ltd. | 1,867,086,106.67 | 236,050,510.98 | (381,500,000.00) | 1,721,636,617.65 | ||||||
| Changan Mazda Engine Co., Ltd. | 835,121,564.38 | 15,784,275.65 | (41,500,000.00) | 809,405,840.03 | ||||||
| Nanchang Jiangling Investment Co., Ltd. | 1,630,596,420.97 | 88,264,113.54 | 1,718,860,534.51 | |||||||
| Subtotal | 7,267,680,136.01 | 862,959,808.34 | (423,000,000.00) | 7,707,639,944.35 | ||||||
| 2. Associates | ||||||||||
| Jiangling Holding Co., Ltd. | 70,492,790.08 | (41,202,595.77) | 29,290,194.31 | |||||||
| Chongqing Changan Kuayue Automobile Co., Ltd. | 242,792,196.86 | (20,594,524.55) | 222,197,672.31 | |||||||
| Changan Automobile Finacing Co., Ltd. | 2,520,349,332.44 | 152,764,747.43 | (66,943,616.44) | 2,606,170,463.43 | ||||||
| Chongqing Changan New Energy Vehicles Technology Co., Ltd. | - | 1,360,000,000.00 | (953,589,718.33) | 663,566,110.70 | 1,069,976,392.37 | |||||
| Avatr Technology (Chongqing) Co., Ltd. | 871,119,835.57 | (82,620,701.16) | 146,228.18 | 788,645,362.59 | ||||||
| Hainan Anxinxing Information Technology Co., Ltd. | - | 368,900.00 | (368,900.00) | |||||||
| Nanjing Chelai Travel Technology Co., Ltd. | 866,888.90 | (97,213.22) | 769,675.68 | |||||||
| Coresing Semiconductor Technology Co., Ltd. | 25,285,116.95 | (552,714.09) | 24,732,402.86 | |||||||
| Nanjing Leading Equity Investment Management Co., Ltd. | 1,133,065.60 | (9,266.61) | 1,123,798.99 | |||||||
| Nanjing Leading Equity Investment Partnership (Limited Partnership) | 2,424,143,949.52 | (42,899.72) | 2,424,101,049.80 | |||||||
| Zhongqi Chuangzhi Technology Co., Ltd. | 190,534,997.15 | (9,012,542.48) | 181,522,454.67 | |||||||
| Chongqing Changxin Zhiqi Private Equity Investment Fund Partnership (Limited Partnership) | 25,007,587.62 | (5,754.39) | 25,001,833.23 | |||||||
| Subtotal | 5,500,605,925.12 | 2,231,488,735.57 | (955,332,082.89) | 146,228.18 | 663,566,110.70 | (66,943,616.44) | 7,373,531,300.24 | |||
| Total | 12,768,286,061.13 | 2,231,488,735.57 | (92,372,274.55) | 146,228.18 | 663,566,110.70 | (489,943,616.44) | 15,081,171,244.59 |
4. Operating revenue and cost
In RMB Yuan
| Items | Report period | Same period of last year | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 47,015,290,808.29 | 39,177,855,123.67 | 49,511,486,065.29 | 43,920,794,847.39 |
| Other business | 3,275,009,762.83 | 1,737,129,368.96 | 3,316,919,115.43 | 1,592,749,547.20 |
| Total | 50,290,300,571.12 | 40,914,984,492.63 | 52,828,405,180.72 | 45,513,544,394.59 |
5. Investment income
In RMB Yuan
| Items | Current amount | Prior-period amount |
| Long-term equity investment losses accounted for by the cost method | 594,000,000.00 | |
| Long-term equity investment losses accounted for by the equity method | (92,372,274.55) | 349,815,853.13 |
| The investment income of financial asset held for trading during its holding period | 2,690,400.00 | |
| Dividend income from remaining investments in other equity instruments | 144,222,128.67 | 70,204,197.65 |
| Gains from the remeasurement of the remaining equity at fair value after the loss of control | 337,513,868.21 | |
| Interest income from entrusted loan | 8,099,253.16 | |
| Total | 986,054,122.33 | 428,119,303.94 |
Long-term equity investment income under equity method
In RMB Yuan
| Investee | Current amount | Prior-period amount |
| Changan Ford Automobile Co., Ltd. | 522,860,908.17 | 362,952,450.03 |
| Changan Mazda Engine Co., Ltd. | 15,784,275.65 | 15,721,810.83 |
| Hainan Anxinxing Information Technology Co., Ltd. | (368,900.00) | (1,009,343.24) |
| Nanjing Chelai Travel Technology Co., Ltd. | (97,213.22) | (134,310.36) |
| Jiangling Holding Co., Ltd. | (41,202,595.77) | (48,302,837.53) |
| Changan Mazda Automobile Co., Ltd. | 236,050,510.98 | 280,357,717.64 |
| Chongqing Changan Kuayue Automobile Co., Ltd. | (20,594,524.55) | 4,994,618.02 |
| Changan Automobile Finacing Co., Ltd. | 152,764,747.43 | 129,697,153.59 |
| Avatr Technology (Chongqing) Co., Ltd. | (82,620,701.16) | |
| Coresing Semiconductor Technology Co., Ltd. | (552,714.09) | (514,689.73) |
| Nanchang Jiangling Investment Co., Ltd. | 88,264,113.54 | 78,245,997.25 |
| Chongqing Changan New Energy Vehicles Technology Co., Ltd. | (953,589,718.33) | (471,341,755.14) |
| Nanjing Leading Equity Investment Partnership (Limited Partnership) | (42,899.72) | (33,139.50) |
| Nanjing Leading Equity Investment Management Co., Ltd. | (9,266.61) | (64,190.89) |
| Zhongqi Chuangzhi Technology Co., Ltd. | (9,012,542.48) | (753,627.84) |
| Chongqing Changxin Zhiqi Private Equity Investment Fund Partnership (Limited Partnership) | (5,754.39) | |
| Total | (92,372,274.55) | 349,815,853.13 |
XVIII. Additional information
1. Non-recurring profit and loss statement of current period
√ Applicable □ Non-applicable
In RMB Yuan
| Items | Amount | explanation |
| Profit and loss of non-current assets disposition | 68,244,082.28 | |
| 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) | 525,001,514.96 | |
| Interest on late payment of funds charged to non-financial enterprises | 12,993,036.40 | |
| In addition to the effective hedging business related to the company's normal business operations, the fair value changes in gains and losses arising from holding trading financial assets | 26,136,888.77 | |
| Gains from the remeasurement of the remaining equity at fair value after the loss of control | 2,128,305,938.85 | |
| Other non-operating income and expenses other than the above | 49,496,422.28 | |
| Minus:Income tax impact | 37,348,447.66 | |
| Minority shareholders' equity impact (after tax) | 15,317,119.44 | |
| Total | 2,757,512,316.44 | -- |
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 Companies OfferingSecurities to the Public No. 1--non-recurring profit and loss as recurring profit and loss, explain the reasons.
2. Return on equity and earnings per share
| Profit in report period | Weighted average return on equity（%） | Earnings per share | |
| Basic EPS(yuan/share) | Diluted EPS(yuan/share) | ||
| Net profit belonging to the Company’s common stockholders | 10.06 | 0.60 | 0.59 |
| Net profit belonging to the Company’s common stockholders after deducting non-recurring profit and loss | 5.33 | 0.31 | 0.31 |
The group's presentation of return on net assets and earnings per share is in accordance with the preparation rules for informationdisclosure of companies offering securities to the public No. 9 - Calculation and disclosure of return on net assets and earnings pershare (revised in 2010) of the CSRC.
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