Chongqing Changan Automobile
Company Limited
2015 Annual Report
April,2016
Chapter 1 Important Notice, Contents, and Definitions
The Board of Directors, the Board of Supervisors, Directors, Supervisors and Senior
Executives of our company hereby guarantee that no false or misleading statement or major
omission was made to the materials in this report and that they will assume all the responsibilities,
individually and jointly, for the trueness, accuracy and completeness of the contents of this report.
Chairman of the Board Xu Liuping, the Chief Financial Officer Wang Kun and the responsible
person of the accounting institution (Accountant in charge) Hua Zhanbiao hereby declare that the
Financial Statements enclosed in this annual report are true, accurate and complete.
All directors attended the board meeting for reviewing the annual report.
The prospective description regarding future business plan and development strategy in this
report does not constitute virtual commitment. The investors shall pay attention to the risk.
The preplan profit distribution of the Company deliberated and approved by the Board is:
taking the total shares as of Dec. 31, 2015 as the radix, sending cash dividends of RMB 6.4Yuan
(tax included) per every 10 shares to all shareholders, and not converting capital reserve into share
capital.
CONTENTS
Chapter 1 Important Notice, Contents, and Definitions ............................................. 1
Chapter 2 Company Profile & Main Financial Indexes ............................................. 5
Chapter 3 Analysis of Main Business ...................................................................... 10
Chapter 4 Management Discussion and Analysis .................................................... 12
Chapter 5 Important Matters .................................................................................... 29
Chapter 6 Changes in the shareholding of the company and shareholders .............. 43
Chapter7 Information about Directors, Supervisors, Senior Management and
Employees ................................................................................................................... 49
Chapter 8 Corporate Governance ............................................................................. 61
Chapter 9 Auditor’s Report ...................................................................................... 68
Chapter 10 Documents for Future Reference......................................................... 206
Definitions
ITEM Definition
Changan Auto., the
Refers to Chongqing Changan Automobile Company Limited
Company
South Industries Refers to China South Industries Group Corp. Company’s actual controller
China Changan Automobile Group Corporation, old name: China South
China Changan Refers to
Industries automobile Co., Ltd., a subsidiary company of South Industries
Chongqing Changan Industry (Group) Co., Ltd., old name: Changan
Automobile Co., Ltd., Changan Automobile (Group) Co., Ltd., a
Changan Industry Refers to
subsidiary company of South Industries, the controlling shareholder of the
Company before December, 2005
Nanjing Changan Automobile Co., Ltd., a subsidiary company of the
Nanjing Changan Refers to
Company
Hebei Changan Automobile Co., Ltd., a subsidiary company of the
Hebei Changan Refers to
Company
Hefei Changan Automobile Co., Ltd., a subsidiary company of the
Hefei Changan Refers to
Company
Changan Bus Refers to Baoding Changan Bus Co., Ltd., a subsidiary company of the Company
International Company Refers to Chongqing Changan Automobile International Sale Service Co., Ltd.
Changan Ford Refers to Changan Ford Automobile Co.,,a JV of the Company
Changan Mazda Refers to Changan Mazda Automobile Co., a JV of the Company
CFME Refers to Changan Ford Mazda Engine Co., a JV of the Company
Changan Suzuki Refers to Chognqing Changan Suzuki Auto. Co.Ltd., a JV of the Company
CAPSA Refers to Changan PSA Automobiles Co., Ltd,a JV of the Company
Jiangling Holding Refers to Jiangling Holding Co., a JV of the Company
Chongqing Auto Finance Refers to Chongqing Auto Finance Co.Ltd Company's Joint Stock Company
Financial Co. of CSGC Refers to Financial Co. of China South Industries Group Corporation
United Prosperity (Hong Kong)Investment Co., Ltd,a subsidiary company
UPI Refers to
of China Changan
Harbin Hafei Automobile Industry Group Co., Ltd., a subsidiary company
Hafei Group Refers to
of China Changan
Chongqing Changan Minsheng APLL Logistics Co., Ltd, a subsidiary
CMAL Refers to
company of Changan Industry
Matrial Risk Notice
In the fourth chapter of Management's Discussion and Analysis, the company describes the
competition pattern and development trend of the automobile industry, the company’s business plan
in 2016, the possible risks. Please refer to the relevant part. The prospective description regarding
future business plan and development strategy in this report does not constitute virtual commitment.
The investors shall pay attention to the risk.
Chapter 2 Company Profile & Main Financial Indexes
I. Basic Information
Stock abbreviation Changan Automobile 、Changan B Stock Code 000625、200625
Listed on Shenzhen Stock Exchange
Company in Chinese
重庆长安汽车股份有限公司
name
Company abbreviation in
长安汽车
Chinese name
Company name in
Chongqing Changan Automobile Company Limited
English
Legal representative Xu LiuPing
Registered address No. 260, East Jianxin Road Jiangbei District, Chongqing
Post code of the
registered address
Office address No. 260, East Jianxin Road, Jiangbei District, Chongqing
Post code of the office
address
Website http://www.changan.com.cn
E-mail address cazqc@changan.com.cn
Ⅱ. Contact Information
Secretary of the Board of Directors Securities affairs representative
Name Wangkun( On behalf),Lijun
No. 260, East Jianxin Road, Jiangbei
Contact address
District, Chongqing
TEL: 023-67594008
FAX: 023-67866055
E-mail address cazqc@changan.com.cn
Ⅲ. Information Disclosure and Filing Site
Newspaper selected by the Company for
China Securities Journal, Securities Daily and Hong Kong Commercial Daily
information disclosure
Website selected by CSRC for publishing www.cninfo.com.cn
this annual report
The place where this annual report is
Secretary's Office of Board of Directors
prepared and kept
IV. Changes of Registration Information
Organization Code 9150000020286320X6
Changes in the main business since
No Change
the company's listing(if have)
1. In Oct. 2005, according to the restructuring program on automobile business, the
Company’s actual controller, China South Industries Group Corporation made
transferring of all state-owned shares of the Company as part of funding for China
South Industries Automobile Company Limited. In March 2006, all shares held by
Changan Group have been transferred to China South Industries Automobile Company
All previous changes of dominant
Limited. China South Industries Automobile Company Limited became the majority
stockholders
shareholder of the Company, and Changan Group holds zero share since then.
2. In July 2009, with the approval of State Administration for Industry and Commerce,
“China South Industries Automobile Company Limited”, changed its name to “China
Changan Automobile Group Co., Ltd.”. After change of its name, its property,
ownership and control relation are without change.
V. Other Relevant Information
The accounting firm employed by the Company:
Name of the accounting firm ERNST&YOUNG Hua Ming LLP
Level 16, Ernst & Young Tower, Oriental Plaza, No. 1 East
Address of the accounting firm
Chang An Avenue, Dong Cheng District, Beijing, China
Name of the certified public accountant for signature Qiao Chun,Ai Wei
The recommendation agency engaged by the Company executing the persistant supervision responsibilities in the
report period
□ Applicable √ Not applicable
The financial consultant engaged by the Company performing the duties of persistant supervision and guidance in
the report period
□ Applicable √ Not applicable
VI. Summary of Accounting Data and Financial Indexes
Increase/decrease
on a
2015 2014 year-on-year
basis Before adjustment Adjusted
(%)Adjusted
Operating
66,771,580,527.66 52,913,332,100.83 26.19% 38,481,862,261.90 39,141,703,050.19
revenue (Yuan)
Net profit
belonging to
shareholders of
9,952,714,168.09 7,561,081,585.81 31.63% 3,505,640,520.04 3,368,591,105.89
the listed
company
(Yuan)
Net profit
belonging to
shareholders of
the listed
company after 9,560,013,288.84 7,279,008,679.47 31.34% 3,323,415,945.67 3,120,551,968.04
deduction of
non-recurring
profit and loss
(Yuan)
Net cash flow
arising from
operating 5,414,890,769.50 3,779,921,774.57 43.25% 1,832,646,224.37 1,537,154,348.43
activities
(Yuan)
Basic earnings
per share 2.13 1.62 31.48% 0.75 0.72
(Yuan/Share)
Diluted earnings
per share Not applicable Not applicable Not applicable Not applicable Not applicable
(Yuan/Share)
Return on
equity (ROE) 33.14% 34.20% -1.06% 20.44% 21.77%
(%)
Increase/decrease
of
End of 2015 End of 2014 the end of
current year Before adjustment Adjusted
compared with
that of
the previous year
(%)
Total assets
89,413,988,669.66 69,687,352,890.82 28.31% 53,364,694,275.91 54,612,107,747.02
(Yuan)
Net assets
belonging to
shareholders of
the listed
company
(Owner's equity 34,385,189,070.36 25,637,298,549.80 34.12% 18,778,354,427.87 18,857,112,774.61
belonging to
shareholders of
the listed
company)
(Yuan)
VII. The differences between domestic and international accounting standards
(1).Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial
reports of differences in net income and net assets.
□ Applicable √ Not applicable
No difference
(2). Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards.
□ Applicable √ Not applicable
No difference
VIII. Key financial indicators for the quarter
Unit: Yuan
First Quarter Second Quarter Third Quarter Forth Quarter
Business income 18,197,185,337.09 14,855,769,840.40 15,055,000,317.76 18,663,625,032.41
Net profit attributable to shareholders of listing
2,494,491,155.26 2,590,775,371.87 1,655,576,666.88 3,211,870,974.08
Corporation
Net profit attributable to shareholders of the
listing Corporation after deducting non recurring 2,349,996,871.48 2,539,914,388.21 1,546,606,695.04 3,123,495,334.11
gains and losses
Net cash flows from operating activities 2,773,784,253.36 3,662,364,724.67 1,606,902,933.58 -2,628,161,142.11
Whether or not the above mentioned financial indicators and the total number of the company has disclosed the major difference
between quarterly reports and semi-annual report
□ Yes √ No
IX. Non recurring items and amounts
□ Applicable √ Not applicable
Unit: Yuan
2013amount
Item 2015 amount 2014 amount
(Restated)
Non recurring items and amounts(including accrued reversal assets
-34,314,067.34 -17,293,198.19 14,249,629.45
impairment part)
Government subsidies included in the profit and loss of the current
period (Except closely related to business operations, in accordance
441,926,607.20 339,001,795.70 234,412,047.68
with the national unified standard quota or quantitative enjoyment
of government subsidies)
The current net profit and loss of the subsidiary period from the
- -43,390,581.51 -
same control to the consolidated day
Except the normal operation of the company's business related to
the effective hedging business , changes in the fair value of the
transaction of financial assets and transaction financial liabilities ,
- - -332,407.00
and dealing with transaction financial assets, transaction financial
liabilities ,and Investment income available for sale of financial
assets
Except the above other operating income and expenses 16,816,296.11 40,605,150.13 2,181,517.38
Interest on deferred payment of funds received by non financial
38,457,111.56 36,729,835.74 44,444,713.09
enterprises
Reduce: the impact of income tax 65,174,314.56 66,584,968.46 45,704,294.34
Impact of minority shareholders' equity (after tax) 5,010,753.72 6,995,127.07 1,212,068.41
Total 392,700,879.25 282,072,906.34 248,039,137.85
According to “Public offering of securities information disclosure of the company's information disclosure announcement No. first -
non recurring gains and losses “Public offering of securities information disclosure of the company's information disclosure
announcement No. first - non recurring gains and losses” defined non recurring items ,and Public offering of securities information
disclosure of the company's information disclosure announcement No. first - non recurring gains and losses “The items listed in the
non recurring items defined as recurring items shall be explained .
□ Applicable √Not applicable
The company in the reporting period does not base on the definition and listing of “Public offering of securities information
disclosure of the company's information disclosure announcement No. first - non recurring gains and losses” about non recurring
gains and losses to define a case of recurring profit or loss.
Chapter 3 Analysis of Main Business
I. Overview
The main business of the Company is the development, production and sales of vehicles and sedans, manufacturing automotive
engine series products. During the reporting period, the main products include sedans of CS series SUV, Raeton Series, Eado Series,
Alsvin series and commercial car of Honor,Oulove, Changan Star series and Oushang MPV.
II. Major changes in assets
1、 Major changes in assets
No significant changes in major assets during the reporting period
2、 Main Overseas Assets
□Applicable √ Not applicable
III. Core Competence Analysis
During 12th Five-Year, R & D investment from Changan amounted to 37.8 billion yuan, involving 16 areas, such as vibration
noise, collision safety, braking performance, chassis test, and driving system etc, 194 international advanced laboratories(among
which , automotive noise vibration and Safety Technology Laboratory are Key State Laboratories ), and Changan spent 2 billion
yuan in building Changan Dianjiang car-testing ground , which is the internationally first-class and the largest one in the Western
China.
1、Actively improve the R & D system
Changan has constantly improved the R & D system, built four R&D systems of the CA-TDS, CA-PAS, CA-PDS, CA-PIS, to
precisely guide the product development, built Changan product test and verification system(CA-TVS) to meet the users’needs of
10 years /26 mil