Chongqing Changan Automobile Company Limited
2019 Semi-annual Report
August 2019
Chapter 1 Important Notice, Contents, and DefinitionsThe Board of Directors, the Board of Supervisors, Directors, Supervisors and Senior Executivesof the company hereby guarantee that no false or misleading statement or major omission was madeto the materials in this report and that they will assume all the responsibilities, individually andjointly, for the trueness, accuracy and completeness of the contents of this report.All the directors attended the board meeting for reviewing the semi-annual report.For the first half of 2019, the Company has no plans of cash dividend, no bonus shares and noshare converted from capital reserve.The Chairman of the Board Zhang Baolin, the Chief Financial Officer Zhang Deyong and theresponsible person of the accounting institution (Accountant in charge) Chen Jianfeng herebydeclare that the Financial Statements enclosed in this annual report are true, accurate and complete.
The prospective description regarding future business plan and development strategy in thisreport does not constitute virtual commitment. The investors shall pay attention to the risk.The report shall be presented in both Chinese and English, and should there be any conflictingunderstanding of the text, the Chinese version shall prevail.
CONTENTS
Chapter 1 Important Notice, Contents, and Definitions ...... 1
Chapter 2 Company Profile & Main Financial Indexes ...... 4
Chapter 3 Analysis of Main Business ...... 8
Chapter 4 Business Discussion and Analysis ...... 10
Chapter 5 Important Matters ...... 23
Chapter 6 Changes in the shareholding of the company and shareholders ...... 31
Chapter 7 Information about Directors, Supervisors, Senior Management ...... 35
Chapter 8 Corporate Bonds ...... 35
Chapter 9 The Financial Statements ...... 36
Chapter 10 Documents for Future Reference ...... 163
Definitions
| Items | Definitions | |
| Changan Auto., the Company | Refers to | Chongqing Changan Automobile Company Limited |
| South Industries | Refers to | China South Industries Group Co., Ltd., the Company’s actual controller |
| China Changan | Refers to | China Changan Automobile Group Co., Ltd., old name: China South Industries automobile Co., Ltd., a subsidiary company of South Industries |
| Changan Industry | Refers to | Chongqing Changan Industry (Group) Co., Ltd., old name: Changan Automobile Co., Ltd., Changan Automobile (Group) Co., Ltd., a subsidiary company of South Industries, the controlling shareholder of the Company before December, 2005 |
| Nanjing Changan | Refers to | Nanjing Changan Automobile Co., Ltd., a subsidiary company of the Company |
| Hebei Changan | Refers to | Hebei Changan Automobile Co., Ltd., a subsidiary company of the Company |
| Hefei Changan | Refers to | Hefei Changan Automobile Co., Ltd., a subsidiary company of the Company |
| Changan Bus | Refers to | Baoding Changan Bus Co., Ltd. , a subsidiary company of the Company |
| International Company | Refers to | Chongqing Changan Automobile International Sale Service Co., Ltd. , a subsidiary company of the Company |
| Changan Suzuki | Refers to | Chongqing Changan Suzuki Automobile Co., Ltd, a subsidiary company of the Company |
| Changan Ford | Refers to | Changan Ford Automobile Co. Ltd，a JV of the Company |
| Changan Mazda | Refers to | Changan Mazda Automobile Co. Ltd, a JV of the Company |
| CME | Refers to | Changan Mazda Engine Co. Ltd, a JV of the Company |
| CAPSA | Refers to | Changan PSA Automobiles Co., Ltd，a JV of the Company |
| Jiangling Holding | Refers to | Jiangling Holding Co., Ltd., a JV of the Company |
| Changan Finance | Refers to | Changan Auto Finance Co.Ltd Company's Joint Stock Company |
| Financial Co. of CSGC | Refers to | Financial Co. of China South Industries Group Co., Ltd. , |
| UPI | Refers to | United Prosperity (Hong Kong)Investment Co., Ltd,a subsidiary company of China Changan |
| Hafei Group | Refers to | Harbin Hafei Automobile Industry Group Co., Ltd., a subsidiary company of China Changan |
| CMAL | Refers to | Chongqing Changan Minsheng APLL Logistics Co., Ltd, a Joint Stock Company of China Changan. |
Chapter 2 Company Profile & Main Financial IndexesI. Basic Information
| Stock abbreviation | Changan Automobile 、Changan B | Stock Code | 000625、200625 |
| Listed on | Shenzhen Stock Exchange | ||
| Company in Chinese name | 重庆长安汽车股份有限公司 | ||
| Company abbreviation in Chinese name | 长安汽车 | ||
| Company name in English | Chongqing Changan Automobile Company Limited | ||
| Legal representative | Zhang Baolin | ||
II. Contact Information
| Secretary of the Board of Directors | Securities affairs representative | |
| Name | Li Jun | |
| Contact address | No. 260, East Jianxin Road, Jiangbei District, Chongqing | |
| Telephone | 023-67594008 | |
| Fax | 023-67866055 | |
| E-mail address | cazqc@changan.com.cn |
III. Others
1. Way of contact
Whether registration address, office address and its post code as well as website and email of the Company changed in thereporting period or not
□ Applicable √ Not applicable
The registration address, office address and post code as well as website and email of the Company did not change in thereporting period. See more details in Annual Report 2018.
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 Report2018.
3. Other relevant information
Whether other relevant information changed in the reporting period or not
□ Applicable √ Not applicable
IV. Summary of Accounting Data and Financial Indexes
Does the company conduct the retrospective adjustment or restatement over previous years accounting data due to changes ofaccounting policies or accounting errors?
□ Yes √ No
| Report period | Same period of last year | Increase/decrease y-o-y (%) | |
| Operating revenue (Yuan) | 29,875,780,096.84 | 35,642,832,190.04 | -16.18% |
| Net profit belonging to shareholders of the listed company (Yuan) | -2,240,039,761.11 | 1,609,606,578.84 | -239.17% |
| Net profit belonging to shareholders of the listed company after deduction of non-recurring profit and loss (Yuan) | -2,911,767,596.44 | 695,716,688.41 | -518.53% |
| Net cash flow arising from operating activities (Yuan) | 4,220,263,630.95 | 4,401,401,760.15 | -4.12% |
| Basic earnings per share (Yuan/Share) | -0.47 | 0.34 | -238.24% |
| Diluted earnings per share (Yuan/Share) | Not applicable | Not applicable | Not applicable |
| Return on equity (ROE) (%) | -4.97% | 3.39% | Down 8.36 points |
| Report period | Same period of last year | Increase/decrease y-o-y (%) | |
| Total assets (RMB) | 92,648,982,677.77 | 93,488,854,098.95 | -0.90% |
| the listed company(RMB) | 43,972,470,820.42 | 46,244,958,676.52 | -4.91% |
V. The differences between domestic and international accounting standards
1. Simultaneously pursuant to both Chinese accounting standards and international accounting standardsdisclosed in the financial reports of differences in net income and net assets.
□ Applicable √ Not applicable
No difference
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas andChinese accounting standards.
□ Applicable √ Not applicable
No difference
3. Explanation of the differences in accounting data under domestic and overseas accounting standards
□ Applicable √ Not applicable
VI. Non-recurring items and amounts
√ Applicable □ Not applicable
In RMB Yuan
| Item | Amount | Illustration |
| Non-recurring items and amounts(including accrued reversal assets impairment part) | 9,392,459.28 | |
| 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) | 620,733,074.11 | |
| Current net profit from beginning to combined date of business combination under common control | ||
| In addition to the effective hedging business related to the normal business of the company, the gains and losses from changes in fair value arising from the holding of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities, and disposal of transactional financial assets, derivative finance Investment income from assets, trading financial liabilities, derivative financial liabilities and other debt investments | 40,337,151.27 | |
| Other non-business income and expenditures other than the above items | 6,191,613.24 | |
| Interest on deferred payment of funds received by non-financial enterprises | 18,205,918.42 | |
| Subtract: Influenced amount of income tax | 13,119,121.76 | |
| Influenced amount of miniority shareholders’ equity (after tax) | 10,013,259.23 | |
| Total | 671,727,835.33 | -- |
According to “Public offering of securities information disclosure of the company's information disclosure announcement No. 1 –non-recurring gains and losses” defined non-recurring items ,and“Public offering of securities information disclosure of thecompany's information disclosure announcement No. 1 - non-recurring gains and losses”The items, defined as recurring items, arelisted in the announcement No. 1 and shall be explained.
□ Applicable √ Not applicable
The company in the reporting period does not base on the definition and listing of “Public offering of securities information
disclosure of the company's information disclosure announcement No. 1 – non-recurring gains and losses” about non-recurring gainsand losses to define a case of recurring profit or loss.
Chapter 3 Analysis of Main BusinessI. The main business of the Company in the reporting periodDoes the Company need to comply with the disclosure requirements of special industry
□ Yes √ No
During the reporting period, the company's main business is the R&D, manufacturing and sale of cars, the R&D and productionof automobile engine products. Besides, the company integrates advantageous resources to actively develop travel services, newretail and so on and carry out multi-dimensional industrial layout.Changan automobile always adheres to the mission of "leading the car civilization for the benefit of human life", and theconcept of "energy conservation, environmental protection, scientific and technological intelligence", vigorously develops newenergy and smart cars, guides the automobile civilization by the use of scientific and technological innovation, and providescustomers with high quality products and services. After years of development, the company now owns many famous brands such asChangan passenger car, Oushang automobile, Kaicheng automobile, Changan Ford, Changan Mazda and so on. Up to now, thecompany has successfully launched a series of classic brands such as CS series, Eado series, Raeton series, Honor and Oushangseries; a series of famous JV products such as all new Focus, new Mondeo, Kuga, Edge, Axela, CX-5, CX-8, DS7 and so on. At thesame time, we have launched new energy vehicles such as Eado EV, new Benben EV and CS15EV, which are admired by the marketand loved by the consumers.
II. Major changes in assets
1. Major changes in assets
No significant changes in major assets during the reporting period
2. Main Overseas Assets
□ Applicable √ Not applicable
III. Core Competence AnalysisChangan builds a research and development system based on the realization of classic products，focusing on breakthroughs inintelligent technology, new energy technologies, product experience design, etc. Based on the long-term development, Changancontinuously invest on research and development. In the first half of 2019, nearly 400 science and technology projects were launched.As of June 2019, the company has applied for 11,611 domestic and foreign patents, including 3,414 invention patents. Changan isdeepening the “Beidou Tianshu” strategy and building differentiated competitiveness. As the acceleration of the "shangri-la" program,Changan obtained initial results of leading technology. The global R&D center with a total investment of 4.3 billion yuan wasofficially put into use, and Changan entered the "open sharing, global synergy" R&D 4.0 era.
New products delivery released on schedule. The new products such as CS85 COUPE, new CS15, new CS95, Keshang, EadoET, KaichengF70, CS75 PLUS were put into production on tim. Auchan X7 was released. We first released the first brand of modularpower technology platform of China brand - Blue Whale NE platform, fully embraced electrification, created a strong power, andopened the Changan Automobile Power 3.0 era. All products are smoothly switched to the sixth national standards.
R&D technology is progressing steadily. APA5.0 automatic parking technology achieves first volume production in the CS75PLUS. CS75 PLUS debuted at the Shanghai Auto Show "Equipped with BLUECORE 2.0TGDI + Aisin 8AT strongest powercombination" and "BLUECORE 1.5TGDI+ Aisin 6AT classic power combination". L2 level technology continues to spread. CS85COUPE and CS75 PLUS equipped with a car system developed by the joint venture company "Wu Tong Che Lian" realized massproduction. Changan leads the industry in terms of ecological resources. A new generation of voice interactive system launched in thenew CS95, reaching industry leading level. For the first time, the industry realized the demonstration road operation of Xiantao DataValley public road. Core technologies such as battery safety and big data platform have achieved initial results. Eado EV520 finisheda comprehensive cruising range of 612 kilometers and won over more than 10 models with absolute advantage in the 6th QinghaiLake Electric Vehicle Challenge.Open cooperation and win-win development. "Changan-Huawei Joint Innovation Center" and "Changan-Tencent JointInnovation Center" formally unveiled, and will develop in-depth cooperation in areas such as intelligence, new energy, networksecurity, big data, new retail and post-market.Changan Automobile Global R&D Center was officially opened. Under the guidance of "The Third Entrepreneurship –Innovation and Entrepreneurship Program", Changan continues to deepen its research and development. Integrate global resources tocreate an open shared wisdom research and development platform-- Changan Automobile Global R&D Center. The center has a totalinvestment of 4.3 billion yuan and covers an area of more than 1,000 acres. It has 7 functions including design, test and management,covering 12 major fields such as simulation analysis, noise vibration and collision safety and has more than 180 laboratoriesincluding hybrids, air conditioning systems, non-metallic materials, and the world's leading data centers built with cloud technology.The official opening of the global R&D center marks a key step for Changan Automobile to promote the construction of a smart cityin Chongqing, realize the dream of China's automobile power, and lead the world's automobile civilization.
Chapter 4 Business Discussion and Analysis
I. Overview
In 2018, the sales volume of the Chinese auto market fell for the first time in 28 years, which marks the Chinese auto market hasgradually entered a period of deep adjustment after years of rapid growth，as the market base continues to expand. Zero growth andnegative growth will become the new normal. In the first half of 2019, the auto market continues to be under pressure with greatchanges in industrial policies and fierce competition in the industry and negative growth, price war, new four, new competitiverelationship, etc. The industry has entered a more brutal knockout. From January to June 2019, the production and sales of theChinese auto market continued to fall. The cumulative production and sales reached 12.132 million units and 12.323 million unitsrespectively, declining by 13.7% and 12.4% year-on-year respectively. 10.127 million units of passenger cars were sold, declining by
14.0% year-on-year. Among them, car sales fell by 12.9% year-on-year, and SUV fell by 13.4% year-on-year. Among the new energypassenger vehicles, the production and sales of pure electric passenger vehicles reached 440,000 units, a year-on-year increase of
69.8%, maintaining a high-speed growth momentum. Industry concentration is further improved. The top ten enterprise groups in theautomobile sales totaled 10.997 million units, declining 12.1% year-on-year. The decline was slightly smaller than the industry,accounting for 89.2% of the total automobile sales, which was 0.3 percentage points higher than the same period of the previous year.(The above data comes from "China Automotive Industry Production and Marketing Newsletter" China Association of AutomobileManufacturers and its industry information release)
In the first half of 2019, Changan Automobile is guided by the “365ascending action” for quality improvement. With the key to“deepening reform, improving efficiency, focusing on marketing and leading quality”, the Company deeply implemented "the thirdentrepreneurship - innovation and entrepreneurship plan", and solidly promoted the transformation and upgrading of enterprises.Efforts were made to overcome the adverse effects of large downturns in the economy and negative growth in the industry, and wedid our utmost to complete various business objectives. In the first half of the year, Changan sold 825,000 units, ranking the sixth inChina's auto industry. The main results during the reporting period are as follows:
1. Solidly promote the implementation of the strategy, and continuously deepen the reform and adjustment
Release the "3rd Entrepreneurship - Innovation and Entrepreneurship Program" version 2.0, and gather full strategic consensus.Continue to deepen institutional reforms and Auchan, light vehicles and other mixed changes are in an orderly manner. Strengtheninstitutional innovation, propose a new organizational planning direction, establish business units such as manufacturing centers,platform development centers, and large customer business units, and streamline 270 organizations. Strengthen the incentive andrestraint mechanism, high-level personnel to strengthen performance linkage and strict assessment, and continue to optimize thematching of people and posts to ensure that personnel are relatively stable. Strongly promote the project and investment mechanismto encourage value creation.
2. Pay close attention to the improvement of management quality and improve efficiency
In-depth implementation of the quality improvement "365" ascending action, with efficiency and efficiency as the core, adhereto the goal orientation, optimize resource allocation, implement operational quality improvement projects, focus on resources tocreate classic products, optimize product structure, reduce costs, lean investment projects, strictly control inventory and other means,innovative management mechanisms, strict management, and gradually improve the quality of operations. The 1/2 project is stronglypromoted, and business process optimization is continuously promoted, and the process efficiency is continuously improved,strengthen data-driven management, unify the CA-DDM platform and data, guide the improvement of each segment's businessthrough big data thematic analysis report, further enhance operational and service capabilities, and to joint ventures.
3. Product lineage is more perfect, and technological innovation is remarkable
A variety of new or replacement products such as S85 COUPE, new CS95, new CS15, Keshang, etc, are published on time. TheCS75 PLUS, created by the international design team, was unveiled at the Shanghai Auto Show and won unanimous praise from the
industry. The Changan Kaicheng F70, designed in conjunction with the French PSA, was unveiled for the first time. The brand newpowertrain brand - Blue Whale Power shocked release, Chinese automotive industry's first modular engine development platform –BLUECORE NE medium and small displacement engine platform was born. All products are smoothly switched to the sixth nationalstandards. Ruichi CC received a 5-star rating with a comprehensive score of 86.9% test, and successfully selected as "2019 SafetyCar" for the C-NCAP compact passenger car class.
4. The “Beidou Tianshu” plan continued to deepen, and the “Shangri-La” plan acceleratedDeepen the “Beidou Tianshu” plan and continue to build differentiated competitiveness. Realize the industry's first L4 levelautonomous driving in the open road scene in Chongqing Xiantao Data Valley. APA5.0 achieves the first mass production in theindustry on CS75 PLUS, and L2 technology continues to be popularized. The cooperation with Tencent has achieved rapid results,CS85 COUPE、CS75 PLUSF equipped with a car system developed by "Wu Tong Che Lian" realized mass production. Changanleads the industry in terms of ecological resources. A new generation of voice interactive system launched in the new CS95, reachingindustry leading level. The global R&D center costed 4.3 billion was officially put into use, marking the official opening of the R&D
4.0 era of “open sharing, global synergy”.
Accelerated landing of the "Shangri-La" program, technology leadership has begun to show results. Progress has been achievedin the development of exclusive platforms for new energy vehicles. Core technologies such as big data platform and battery safetyhave achieved initial results. New energy products are more abundant, CS15EV400 and Eado ET are on the market as scheduled. TheEado EV520, with a comprehensive life capability of 612 kilometers, won the A3 comprehensive champion and 9 individualchampions and media recommendation awards in the 6th Qinghai Lake Electric Vehicle Challenge. The fish-mouth battery andelectric drive system integration plant were officially put into operation, and the pace of new energy development was accelerated.
5. Increase marketing efforts, steadily improve customer operations
The 100-day marketing attack is remarkable. The sales of Changan passenger brands in May and June increased by the sameperiod. In the first half of the year, the average sales volume of key products CS75 series, CS55 series, CS35 series and Eado seriesreached 10,000 units. Changan Ford's retail sales gradually increased from May to June, and key products such as Shuangfu Series,Ruijie and Mondeo achieved a significant increase. The channel layout has been continuously improved and have been sunk, and theintegration has been promoted in an orderly manner. The customer's operation has been steadily improved, and the membership hasgrown rapidly. As of June, the number of Changan Automobile members exceeded 8.2 million. Build an omni-channel servicesystem, improve the vehicle road rescue management measures, and achieve 24-hour service online, and enhance customerexperience and satisfaction. Establish a communication mechanism with dealers and suppliers, carry out a variety of customerexchange activities, and actively listen to the front line voice. The performance of large customers has been remarkable, increasingcustomer sourcing, promoting the innovative cooperation mode of travel platforms, and accelerating the promotion of direct B-sidesolutions.
6. Joint ventures face challenges and strategic adjustments continue to deepen
Deepen communication and exchanges, and negotiate with the JV partners to develop the Changan Ford Revitalization Plan.Fully implement the "two leading" strategy of effection and products, and the “five major upgrades” strategy of marketing, efficiency,quality, supply chain and new-field cooperation, and promote the rapid improvement of Changan Ford's management quality.Changan Mazda launched the CX-5 and Angke Sela annual models, and the cloud control version boosted sales, with 61,000 unitssold in the first half of the year. At the same time, strengthen high-level interaction and strategic coordination to ensure that ChanganMazda's operations improved. The reform and innovation of Jiangling Holdings has been basically completed, and the follow-uptransformation development path has been clarified.
7. The construction of the ecological circle has been solidly promoted, and the emerging business has accelerated
Intensively cooperate with the National Information Center in joint projects, special research, trend research, and researchmethods and system construction, and promote Changan Automobile's "third entrepreneurship-innovation and entrepreneurship plan". Deepen strategic cooperation with Huawei and establish the "Changan-Huawei Joint Innovation Center" to carry out in-depthcooperation in intelligent forward-looking technologies. The T3 travel project was jointly established with FAW and Dongfeng and
Nanjing Leading Technology Co., Ltd. was established and officially put into operation. The “Changan Travel” business continued toadvance, with more than 9,000 vehicles operating, of which the time-sharing business scale has reached the top in Chongqing. Thenew marketing business has been promoted in an orderly manner, and the core business circle construction mode has beencontinuously verified. The brands cover Changan Passenger, Auchan, Changan Ford and other products, of which high-value modelsaccount for more than half of sales.II. Analysis of Main Business
1. Overview
Are they identical with those disclosed in the "I. Overview" in the Chapter of Business Discussion and Analysis?
√ Yes □ No
Please refer to the content of "I. Overview" in the Chapter of Business Discussion and Analysis.
2. Y-o-y changes of main financial data
In RMB Yuan
| Current period | Same period of last year(restated) | Y-o-y increase/decrease | Reasons for changes | |
| Operating revenue | 29,875,780,096.84 | 35,642,832,190.04 | -16.18% | |
| Operating cost | 27,419,410,626.92 | 30,614,845,704.45 | -10.44% | |
| Operating expenses | 1,443,216,541.30 | 2,543,462,428.51 | -43.26% | Mainly due to the decrease in sales volume of products, the reduction in the use of commercial resources and freight |
| General and administrative expenses | 1,260,364,119.97 | 1,048,876,421.66 | 20.16% | |
| Financial expenses | -96,832,709.15 | -225,518,842.31 | 57.06% | Mainly due to the decrease in interest income caused by the decrease in current stock funds |
| Income tax expense | 116,567,696.08 | 15,288,317.83 | 662.46% | Mainly due to the decrease in current deferred income tax assets |
| R&D expenses | 1,302,956,091.53 | 1,106,524,840.39 | 17.75% | |
| Subtotal of cash inflow from operating activities | 4,220,263,630.95 | 4,401,401,760.15 | -4.12% | |
| Subtotal of cash inflow from investment activities | -3,684,509,162.66 | -2,973,370,521.87 | -23.92% |
| Subtotal of cash inflow from financing activity | -65,487,944.32 | 869,502,774.20 | -107.53% | Mainly due to the decrease in the impact of the invoicing margin of the acceptance bill |
| Net increase in cash and cash equivalents | 499,453,398.49 | 2,316,338,311.36 | -78.44% | Mainly due to the decrease in cash inflow from financing activities and investment activities |
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
3. Composition of Main Business
In RMB Yuan
| Operating revenue | Operating cost | Gross profit | Increase or decrease of operating revenue y-o-y | Increase or decrease of operating cost y-o-y | Increase or decrease of gross profit y-o-y | |
| According to industries | ||||||
| Production | 29,100,899,960.18 | 26,869,270,640.75 | 7.67% | -15.51% | -10.95% | Down 4.73% |
| According to products | ||||||
| Vehicles | 29,039,911,031.57 | 26,783,426,523.20 | 7.77% | -15.50% | -10.97% | Down 4.70% |
| According to region | ||||||
| China | 27,640,776,612.07 | 25,429,548,405.65 | 8.00% | -16.57% | -11.65% | Down 5.12% |
III. Analysis of non principal business
□ Applicable √ Not applicable
IV. Assets and liability
1. The significant changes of the assets and liability
In RMB Yuan
| Item | Current period | Same period of last year | decrease (%) | YoY change (%) | ||
| Amount | Ratio in total assets(%) | Amount | Ratio in total assets(%) | |||
| Monetary capital | 10,535,284,892.55 | 11.37% | 24,067,745,140.49 | 23.97% | -12.60% | Mainly due to the negative net cash flow from operating, investment and financing |
| activities at the end of the same period of the previous year | ||||||
| Accounts receivable | 2,011,970,761.86 | 2.17% | 1,925,729,920.41 | 1.92% | 0.25% | |
| Inventory | 5,705,376,137.26 | 6.16% | 4,726,421,476.59 | 4.71% | 1.45% | |
| Investment property | 7,216,205.50 | 0.01% | 7,442,917.06 | 0.01% | 0.00% | |
| Long-term equity investment | 13,951,703,216.21 | 15.06% | 15,638,035,950.97 | 15.57% | -0.51% | |
| Fixed assets | 23,096,697,122.71 | 24.93% | 18,456,584,832.13 | 18.38% | 6.55% | |
| Construction in progress | 5,178,469,344.52 | 5.59% | 4,728,241,031.94 | 4.71% | 0.88% | |
| Short-term loan | 210,000,000.00 | 0.23% | 186,000,000.00 | 0.19% | 0.04% | |
| Long-term loan | - | 0.00% | - | 0.00% | 0.00% | |
| Transactional financial assets | 1,570,658,462.58 | 1.70% | - | 0.00% | 1.70% | According to the new "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments" and "Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments", the portion of fair value measurement previously stated in the “Available-for-sale financial assets” is reclassified into “Transactional financial assets”. |
| Available for sale financial assets | - | - | 564,227,000.00 | 0.56% | -0.56% | According to the new "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments" and "Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments", it is reclassified into “Investment in other equity instruments” by the |
| cost measurement component and reclassified into “Transactional financial assets” by the fair value measurement component. | ||||||
| Investment in other equity instruments | 504,572,800.00 | 0.54% | - | - | 0.54% | According to the new "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments" and "Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments", the portion of cost measurement previously stated in the “Available-for-sale financial assets” is reclassified into “Investment in other equity instruments”. |
2. Assets and liabilities measured by fair value
√ Applicable □ Not applicable
In RMB Yuan
| Item | Amount at year beginning | Comprehensive income in the reporting period | Accumulated fair value changes included in profit or loss | Impairment provisions in the reporting period | Purchasing (increasing) amount in the reporting period | amount in the reporting period | Amount at year end |
| Financial assets | |||||||
| Transactional financial assets | 40,337,151.27 | 1,530,321,311.31 | 1,570,658,462.58 | ||||
| Other equity investment | 504,572,800.00 | 504,572,800.00 | |||||
| Available for sale financial assets | 1,530,321,311.31 | 1,530,321,311.31 | - | ||||
| Subtotal of financial assets | 1,530,321,311.31 | - | 40,337,151.27 | - | 2,034,894,111.31 | 1,530,321,311.31 | 2,075,231,262.58 |
| Total | 1,530,321,311.31 | - | 40,337,151.27 | - | 2,034,894,111.31 | 1,530,321,311.31 | 2,075,231,262.58 |
Whether the measurement attributes of main assets in the reporting period have significantly changed
√ Yes □ No
After January 1, 2019, the company designated part of the equity investment as a financial asset measured at fair value through othercomprehensive income, which is reported as other equity instrument investment.
3. Property rights limits by the end of report period
In RMB Yuan
| Item | book value at the end of this year | Limited Reason |
| Monetary fund | 387,677,879.26 | Acceptance bond |
| Notes receivable | 282,704,275.96 | Pledge for issuing bills payable |
| Intangible assets | 18,289,841.52 | Mortgage loans and obtain the amount of commercial acceptance |
| Total | 688,671,996.74 |
V. Analysis of Investment
1. General information
√ Applicable □ Not applicable
| External investment | ||
| Investment Amount in the report period(Yuan) | Investment Amount in the same period of last year(Yuan) | Variance rate |
| 1,800,000,000 | 2,198,000,000 | -18.11% |
| Particulars of investees | ||
| Company Name | Principal business | Proportion in the investees’ equity (% |
| Nanjing Leading Equity Investment Partnership (Limited Partnership) | Equity investment, venture capital investment; investment in non-publicly traded equity of non-listed companies, non-publicly issued equity of listed companies, and related services. (Projects subject to approval according to law may be operated after approval by relevant departments) | 16.39% |
| Chongqing Lianzhi Antou Equity Investment Partnership (Limited Partnership) | Equity investment (operating in accordance with the approved items and deadlines of the license documents). | 50.25% |
2. Major equity investment in the reporting period
√ Applicable □ Not applicable
| Company name | Principal business | Investment | Investment | Share-holding | Capital | Partner | Investment | Progress on | Any | Disclosure | Disclosure |
| mode | amount | ratio | source | period | book closing date | litigations | date(in case) | index(in case) | |||
| Nanjing Leading Equity Investment Partnership (Limited Partnership) | Equity investment, venture capital investment; investment in non-publicly traded equity of non-listed companies, non-publicly issued equity of listed companies, and related services. (Projects subject to approval according to law may be operated after approval by relevant departments) | established | 1,600,000,000 | 16.39% | Its own capital | Suning Investment Co., Ltd., China First Automobile Group Co., Ltd., Dongfeng Motor Group Co., Ltd., Shenzhen Tencent New Travel Limited Partnership (Limited Partnership), Shenzhen Segali Asset Management Co., Ltd., Hangzhou Alibaba Venture Capital Management Co., Ltd. Wuxi Feiye Investment Co., Ltd., Xianning Rongyi Smart Travel Industry Investment Fund (Limited Partnership), Nanjing Hengchuang Yunzhi Network Technology Co., Ltd., Nanjing Leading Equity Investment Management Co., Ltd. | Indefinite duration | Establishment completed, industrial and commercial registration procedures completed | No | 2019-03-22 | Announcement of the Establishment of Nanjing Leading Equity Investment Partnership (Limited Partnership) (Bulletin No: 2019-16) |
| Chongqing Lianzhi Antou Equity Investment Partnership (Limited Partnership) | Equity investment (operating in accordance with the approved items and deadlines of the license documents). | Newly established | 200,000,000 | 50.25% | Its own capital | Jiantou Huake Investment Co., Ltd., Beijing Huake Lianzhi Technology Co., Ltd., China Construction Investment Management (Tianjin) Co., Ltd. | Indefinite duration | Establishment completed, industrial and commercial registration procedures completed | No | 2019-04-30 | Announcement of the Establishment of Chongqing Lianzhi Antou Equity Investment Partnership (Limited Partnership) (Bulletin No: 2019-30) |
| Total | -- | -- | 2,198,000,000 | -- | -- | -- | -- | -- | -- | -- | -- |
3. Major non-equity investment in the reporting period
Please refer to Notes 7 Item 13 “Construction in progress” in the Financial Statement.
4. Investment of Financial Assets
(1)Equity-holdings in financial enterprises
√ Applicable □ Not applicable
| Company name | Company variety | Initial investment cost (Yuan) | Holdings (share) | holding ratio (%) | holdings (share) | Holdings (%) | Closing book value (Yuan) | Gain/loss in the reporting period (Yuan) | Accounting title | Equity source |
| Southwest Securities | Securities Firm | 50,000,000 | 35,500,000 | 0.63% | 35,500,000 | 0.63% | 175,370,000 | 51,830,000 | Transactional financial assets | Initial investment |
| Ningde Times New Energy Technology Co., Ltd. | Electrical machinery and equipment manufacturing | 1,052,930,406.36 | 22,999,575 | 1.05% | 22,999,575 | 1.05% | 1,395,288,462.58 | -11,492,848.73 | Transactional financial assets | Initial investment |
(2) Derivative Investments
□ Applicable √ Not applicable
5. Use of raised funds
□ Applicable √ Not applicable
VI. Selling of major assets and major equity
1. Selling of major assets
□ Applicable √ Not applicable
There is no selling of major assets.
2. Selling of Equity
□ Applicable √ Not applicable
There is no selling of major equity.
VII. Analysis of main holding companies and equity companies
√ Applicable □ Not applicable
Basic information of main subsidiary companies and shareholding companies which have an impact on over 10% of net profits
Unit: Ten Thousand Yuan
| Name | Registered capital | Equity held | Main businesses | Total assets | Main operating income | Net profit |
| Changan Mazda Automobile Co., Ltd | 11,097 USD | 50% | Produce and sell auto and parts | 1,354,127 | 757,314 | 87,396 |
| Chongqing Changan Suzuki Automobile Co., Ltd | 133,764 | 100% | Produce and sell auto and parts | 310,585 | 93,954 | -24,576 |
| Jiangling Holding Co., Ltd | 100,000 | 50% | Produce and sell auto and parts | 943,398 | 12,075 | -47,283 |
| Changan Ford Automobile Co., Ltd | 24,100 USD | 50% | Produce and sell auto and parts | 4,176,587 | 1,206,028 | -77,689 |
Subsidiaries acquired and sold in the reporting period
√ Applicable □ Not applicable
During the reporting period, Changan newly established Chongqing Chehemei Technology Co., Ltd. It is included in theconsolidated statements in 2019.
| Name | Acquisition and disposal of subsidiaries during the reporting period | On the overall production and operation and performance impact |
| Chongqing Chehemei Technology Co., Ltd | Newly established | None |
VIII. Structural main business under the company control
□ Applicable √ Not applicable
IX. Forecast for the operating performance of Jan.-Sep. 2019
The accumulated net profit forecast for the beginning of the year to the end of the next reporting period may be a loss or a warningand explanation of a significant change compared with the same period of the previous year
□ Applicable √ Not applicable
X. Possible risks and coresponding measures
1. Policy and regulatory risks: New energy safety supervision will be further tightened, or relevant management rules will be issuedto improve corporate compliance operating costs. The Ministry of Communications will control vehicle logistics violations, andstrengthen the notification of violations. It is possible to introduce policies such as “removal mechanism for logistics enterprises”,and the stricter treatment will lead to an increase in the logistics cost of the whole vehicle.Actions: Adhere to compliance management, make pre-plans in advance. Implement cost reduction and efficiency improvement, andstrictly control costs.
2. Market competition risk: Since the first negative growth in March 2018, the Chinese auto market has been declining for 15
consecutive months, and the auto market has really entered the era of “low growth and negative growth”. The stock competitionsituation is still grim. The competition of new products in the industry is fierce, and the price reduction promotion is increasinglyfrequent. The joint ventures strengthen the layout of the middle and low-end market, and the price of joint venture products movesdownwards. The competition of independent brands is fierce, and the pace of elimination of enterprises is accelerating.Actions: In the face of the new competitive situation, the company will speed up the upgrading of products and rapidly improve theoverall comprehensive competitiveness. At the same time, we will seize the opportunity of national strategic development, activelyexpand overseas markets, and enhance the competitiveness of the international market.
3. Business model risk: With the rapid advancement and development of the “new four” (electricalization, interconnection, sharing,and intelligentization) of automobiles, the huge business opportunities brought about by them have attracted a large influx of variouscapitals and carried out on the industry. They disrupted the industry, causing disorderly competition in the market and changing thetraditional business model.Actions: Changan Automobile will seize the strategic opportunity period and realize the transformation from traditional automobilemanufacturing industry to intelligent travel technology company and become an internationally competitive Chinese brand.XI. Interviews and visits in the reporting period
√ Applicable □ Not applicable
| Date | Manner | Object | Content discussed and material offered |
| 2019.1.2 | On-Site Survey | Institution | For details, see the January 4, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: January 2, 2019 investor relations activities record sheet |
| 2019.1.10 | On-Site Survey | Institution | For details, see the January 14, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: January 10, 2019 investor relations activities record sheet(1) |
| 2019.1.10 | On-Site Survey | Institution | For details, see the January 14, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: January 10, 2019 investor relations activities record sheet(2) |
| 2019.1.10 | On-Site Survey | Institution | For details, see the January 14, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: January 10, 2019 investor relations activities record sheet(3) |
| 2019.1.11 | On-Site Survey | Institution | For details, see the January 14, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: January 11, 2019 investor relations activities record sheet(1) |
| 2019.1.11 | On-Site Survey | Institution | For details, see the January 14, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: January 11, 2019 investor relations activities record sheet(2) |
| 2019.1.15 | On-Site Survey | Institution | For details, see the January 17, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan automobile: February 15, 2019 investor relations activities record sheet(1) |
| 2019.1.15 | On-Site Survey | Institution | For details, see the January 18, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan automobile: February 15, 2019 investor |
| relations activities record sheet(2) | |||
| 2019.1.16 | On-Site Survey | Institution | For details, see the January 18, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: January 16, 2019 investor relations activities record sheet |
| 2019.1.18 | On-Site Survey | Institution | For details, see the January 22, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: January 18, 2019 investor relations activities record sheet |
| 2019.1.22 | On-Site Survey | Institution | For details, see the January 24, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: January 22, 2019 investor relations activities record sheet(1) |
| 2019.1.22 | On-Site Survey | Institution | For details, see the January 24, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: January 22, 2019 investor relations activities record sheet(2) |
| 2019.2.26 | On-Site Survey | Institution | For details, see the February 27, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: February 26, 2019 investor relations activities record sheet |
| 2019.2.28 | On-Site Survey | Institution | For details, see the March 1, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: February 28 2019 investor relations activities record sheet |
| 2019.3.5 | On-Site Survey | Institution | For details, see the March 7, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: March 5, 2019 investor relations activities record sheet |
| 2019.3.14 | On-Site Survey | Institution | For details, see the March 18, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: March 14, 2019 investor relations activities record sheet(1) |
| 2019.3.14 | On-Site Survey | Institution | For details, see the March 18, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: March 14, 2019 investor relations activities record sheet(2) |
| 2019.3.19 | On-Site Survey | Institution | For details, see the March 20, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: March 19, 2019 investor relations activities record sheet |
| 2019.3.22 | On-Site Survey | Institution | For details, see the March 25, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: March 22, 2019 investor relations activities record sheet |
| 2019.4.30 | On-Site Survey | Institution | For details, see the May 7, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: April 30, 2019 investor relations activities record sheet |
| 2019.5.6 | On-Site Survey | Institution | For details, see the May 7, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: May 6, 2019 investor relations activities record sheet |
| 2019.5.10 | On-Site Survey | Institution | For details, see the May 13, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: May 10, 2019 investor relations activities record sheet |
| 2019.5.14 | On-Site Survey | Institution | For details, see the May 16, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: May 14, 2019 investor relations activities record sheet |
| 2019.6.12 | On-Site Survey | Institution | For details, see the June 14, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: June 12, 2019 investor relations activities record sheet(1) |
| 2019.6.12 | On-Site Survey | Institution | For details, see the June 14, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: June 12, 2019 investor relations activities record sheet(2) |
| 2019.6.21 | On-Site Survey | Institution | For details, see the June 25, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: June 21, 2019 investor relations activities record sheet |
| 2019.6.28 | On-Site Survey | Institution | For details, see the July 2, 2019 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: June 28, 2019 investor relations activities record sheet |
Chapter 5 Important Matters
I. Annual shareholders meeting and interim shareholders meeting during the reportingperiod
1. Shareholders meeting during the reporting period
| Meeting Session | Type | Investors' participation ratio | Holding Date | Disclosure Date | Disclosure Index |
| 2018 Annual Shareholders Meeting | Annual | 58.387% | Jun, 27th, 2019 | Jun, 28th, 2019 | 2018 Annual Shareholders Meeting Resolution Announcement(Announcement Number: 2019-45) |
| 2019 The First Interim Shareholders Meeting | Interim | 43.615% | Jan, 3th, 2019 | Jan, 4th, 2019 | 2019 The First Interim Shareholders Meeting Resolution Announcement(Announcement Number: 2019-02) |
2. Preferred shareholders’ request to hold the interim shareholders meeting with restoration of votingrights
□ Applicable √ Non-applicable
II. Preplan for Company common stock profit distribution and capital reserves convertinginto share capital in the reporting period
□ Applicable √ Non-applicable
The company plans not to distribute cash dividends, not to send bonus shares, not to increase equity by provident fund in the first halfof the year.III. Commitments finished in implementation by the Company, shareholders, actualcontroller,acquirer, directors, supervisors, senior executives or other related parties inthe reporting period and commitments unfinished in implementation at the end of thereporting period
□ Applicable √ Non-applicable
IV. The appointment and dismissal of accounting firmsIs the semi-annual financial report audited?
□ Yes √ No
V. The board of directors, and supervisors explaining the "non standard audit report" fromthe accounting firm during the reporting period
□ Applicable √ Not-applicable
VI. The board of directors explaining the "non standard audit report" of last year
□ Applicable √ Not-applicable
VII. Bankruptcy restructuring related matters
□ Applicable √ Not-applicable
During the report period, no bankruptcy restructuring related matters occur.
VIII. Crucial litigation events
Crucial litigation and arbitration events
□ Applicable √ Not-applicable
During the report period, the company has no crucial litigation or arbitration events.Other litigation events
□ Applicable √ Not-applicable
IX. Punishment and rectification
□ Applicable √ Not-applicable
During the reporting period, there’s no punishment and rectification.X. The integrity of company and its controlling shareholder, actual controller
□ Applicable √ Not-applicable
XI. Company equity incentive plan, the implementation of the employee stock ownership planor other staff incentives.
√ Applicable □ Not-applicable
At the 50th meeting of the 7th board of directors, 《A bill to cancel some stock options of the Company》was deliberated andpassed on Apr 19th, 2019, and 9,503,400 stock options would be cancelled. For details, please refer to 《The announcement ofcancellation about some stock options of the company》(Announcement Number: 2019-24) on Apr 23th, 2019. On May 15th, 2019,the company disclosed 《Notice on the completion of cancellation about some stock options》(Announcement Number: 2019-33),
according to relevant regulations, the company applied to the shenzhen branch of China securities registration and settlement co.,LTD for the cancellation of stock options and completed the cancellation procedures.
XII. Significant related party transactions
1. Related transactions related to day-to-day operation
For details, please refer to Note 12 "Related Party Relationships and Transactions" in the Financial Statements.
2. Assets or equity acquisition, sales related transactions
□ Applicable √ Not-applicable
No related transaction of the acquisition or sale of assets or shares occurred during the reporting period.
3. Related transactions of common investment
□ Applicable √ Not-applicable
During the reporting period, the company has no related transactions of common investment
4. Related rights and debt relations
√ Applicable □ Not-applicable
For details, please refer to Note 12 "Related Party Relationships and Transactions" in the Financial Statements.Whether there is any non-business related credits and debts
□ Applicable √ Not-applicable
There is no non-operating associated credits and debts during the reporting period.
5. Other significant related transactions
√ applicable □ not applicable
Related queries in disclosure website of temporary announcement of related transactions
| Name of temporary announcements | Temporary announcement date | Temporary announcement site name |
| Related transaction announcement thet Chongqing Automobile Finance Co., Ltd. provides financial services | Feb, 1th, 2019 | http://www.cninfo.com.cn |
| Related Transactions Announcement that China South Industries Group Co., Ltd. provides financial service for the company | Feb, 1th, 2019 | http://www.cninfo.com.cn |
| Announcement about increasing estimated amount of 2019 daily related transaction | Feb, 1th, 2019 | http://www.cninfo.com.cn |
| Supplementary announcement about increasing estimated amount of 2019 daily related transaction | Feb, 21th, 2019 | http://www.cninfo.com.cn |
XIII. The non-operating occupation for the capital by the controlling shareholder of the listedcompany and its related parties
□ Applicable √ Not-applicable
XIV. Major contract and its performance
1. Trusteeship, contracting, leasing matters
(1) Trusteeship
□ Applicable √ Not-applicable
Information about TrusteeshipThere is no Trusteeship during the reporting period.
(2) Contracting
□ Applicable √ Not-applicable
Information about contractingThere is no contracting during the reporting period.
(3) Leasing
√ Applicable □ Not-applicable
Information about leasingRelated party rental situation can be found in the note 12 of financial statements 4 (3) related party relationships and transactions.Projects whose profit and loss to the company during the reporting period is more than 10% of total profits
□ Applicable √ Not-applicable
Projects whose profit and loss to the company during the reporting period can’t be more than 10% of total profits
2. Major guarantee
□ Applicable √ Not-applicable
There’s no major guarantee during the report period.
3. Other major contract
□ Applicable √ Not-applicable
There’s no other major contract during the reporting period.
| Announcement of Related Transactions for Providing Entrusted Loans to Jiangling Holdings Limited | Apr, 23th, 2019 | http://www.cninfo.com.cn |
XV. Social responsibility
1. Significant environmental protection
Whether the listed companies and their subsidiaries belong to the key pollutant discharge units announced by the environmentalprotection department
√ Yes □ No
Basic statusChangan Automobile mainly produces engines and automobiles. The main pollutants are chemical oxygen demand, ammonianitrogen, total nickel, toluene, xylene and non-methane hydrocarbon,etc. Waste water mainly comes from the treatment of surfacetreatment wastewater, spray painting wastewater and oil containing wastewater before the coating workshop, which is dischargedafter physicochemical and biochemical treatment. The exhaust gas is mainly painted waste gas and flue gas. The exhaust gas of thespray paint is absorbed, concentrated and burned, and the exhaust gas of the oven is discharged after burning. Two sulfur oxide andnitrogen oxide are mainly from the waste gas from the clean energy of natural gas. All of the exhaust gases from energy and naturalgas combustion are organized emissions. The company's headquarters and subsidiaries have a sound environmental managementsystem, which has passed the environmental management system certification.Pollution discharge informationDuring the reporting period, there were 349 pollutant outlets and 22 water pollutant outlets. The emission standards were strictlyimplemented according to the national sewage comprehensive discharge standard, the water pollutant discharge standard in Beijing,the national standard for the comprehensive emission of air pollutants, the standard for the emission of air pollutants on the surface ofautomobile manufacturing in Chongqing, the standard for the comprehensive emission of air pollutants, and the vehicleManufacturing industry (painting process) air pollutant emission standard in Beijing, national industrial enterprise boundaryenvironmental noise emission standard and so on. All the pollutants in the company are discharged, and there is no excess totalemission.Solid wastes are separately collected and stored. Main dangerous wastes are wastewater and sludge treatment, paint slag,phosphated residue and waste solvent, etc. The units with hazardous waste business qualification are entrusted to dispose hazardouswastes. The general industrial solid wastes and household garbage are disposed by the units with qualification according to therequirement of the local government. The waste electrical and electronic products are disassembled by the units with qualificationand are safely disposed by the units with hazardous waste business qualification.Construction and operation of pollution prevention facilitiesDuring the reporting period, the main waste gas prevention and control facilities include foundry dust removal anddeodorization facilities in engine factories, welding dust removal facilities in vehicle factories and treatment facilities for coatingvolatile organic waste gas; together with wastewater treatment facilities, they are included in preventive maintenance management ofequipment, with account books, operation instructions, preventive maintenance rules, preventive maintenance plans andimplementation records, and equipment spot inspection records, operating records and so on. The facilities are running normally.Administrative licensing of environmental impact assessment and other environmental protection for construction projectsIn accordance with the regulations of the State Council on environmental protection and management of construction projects,the People's Republic of China Environmental Impact Assessment Law, the regulations on environmental protection in Chongqing,and the Interim Measures for the construction project completion of environmental protection and acceptance by the Ministry ofenvironmental protection of the state, the environmental impact assessment and completion ring of the new, modified and expandedprojects are required and strictly enforce the environmental impact assessment system and the "Three Simultaneity" system. In thefirst half of 2019, the Company obtained "Collision Laboratory Phase II Project EIA Approval",and completed the EIA acceptanceabout New Energy Phase I Project, Electric Drive Project and Automobile Product Structure Adjustment Project.
Emergency preparedness and exercise of emergency environmental eventsContinue to carry out environmental protection emergency drills to enhance the response capacity to environmental emergencies.In the first half of 2019, all bases made environmental risk assessment reports and emergency plans for environmental emergencies.Nanjing Chang'an, completed the revision and filing of emergency plans for environmental emergencies. The Company carried out acompany-level drill on chemical leakage.Programming and implementation of self-monitoring of the environmentIn the first half of 2019, Key sewage units of Changan Automobile: Yuzui Base of OuShang Automotive Division, JiangbeiEngine Factory, Yubei Factory, Beijing Changan, Hefei Changan. All the key sewage made self-monitoring schemes, andself-monitoring has been carried out, and information disclosure has been carried out according to the requirements of the localecological environment department.OthersDuring the reporting period, all bases carry out the declaration of national discharge permits in accordance with therequirements of laws and regulations. Oushang Automobile Business Department, Jiangbei Engine Factory and Yubei Factory carriedout the 2018 Environmental Credit Evaluation.
2. Fulfill social responsibility of targeted poverty alleviation
√ Applicable □ Not applicable
In the first half of 2019, Chang'an Automobile actively responded to the Guiding Opinions of the Central Committee of theCommunist Party of China and the State Council on the Three-Year Action to Win the Strong Fight against Poverty, comprehensivelyimplemented the spirit of the Nineteenth National Congress of the CPC and the Central Conference on Poverty Alleviation andDevelopment, and effectively promoted the precise poverty alleviation and public welfare in accordance with the decision-makingand deployment work of the central party committee and the central government, and strived to promote better and faster economicand social development in poor areas.
（1）In the first half of 2019, precise poverty alleviation in "two counties" of Yunnan
The company donated RMB 9 million to Luxi County.
On education poverty alleviation projects: invest 1.5 million yuan on the renovation project of dangerous buildings in AlouPrimary School of Yongning Village Committee to improve the school infrastructure and provide a safe learning environment for theschool students.
On poverty alleviation projects for people's livelihood: invest 4.7 million yuan to improve the living environment through thesupport rural domestic waste collection and transportation facilities project for the disposal of garbage trucks and stainless steel trashcans (hanging barrels) on demand in Luxi County,
On the industrial poverty alleviation project: invest 2.8 million yuan to support the construction project of factory nurserybase in Jinma
The company donated RMB 9 million to Yanshan County.
On education poverty alleviation projects: invest 0.3 million yuan on the 980 square metre student complex building ofDageda hope primary school to solve the problem of teaching rooms for school students in grades 1-3 and kindergartens; invest 2million yuan on the 960 square metre new comprehensive building and 120 square metre latrines and ancillary engineering projectsof the Biyun hope primary school.
On poverty alleviation projects for people's livelihood: donate 2.89 million yuan to 9 townships for the purchase of thegarbage collection vehicles; donate 3.81 million yuan on the project of garbage collection bins (boxes) to purchase domestic garbagecollection boxes in 11 townships.
（2）Fixed Poverty Alleviation Program in Jishui County, Jiangxi Province in the first half of 2019The company donated RMB 2 million to to Jishui County.On the health poverty alleviation project: support the health express project and invest 2 million yuan to purchase medicalambulances for Jishui County.
（3）Fixed Poverty Alleviation Programs in Pengshui and Youyang Counties of Chongqing in the first half of 2019According to the "Notice of the Chongqing Municipal Development and Reform Commission's Leading Group for PovertyAlleviation on Carrying out Donation Assistance and Reporting Poverty Alleviation Materials"( Yu Development and ReformCommission of the Poverty Alleviation Group issued [2019] Document No. 1), Changan Automobile donated 300,000 yuan toPengshui County for poverty alleviation.
In accordance with the spirit of the Notice of the Office of the People's Government of Jiangbei District of Chongqing on theWork Plan of Aiding Youyang County in 2019 (No. 5 of Jiangbei Prefecture Office), Changan Automobile donated 200,000 yuan toYouyang County for the"Golden Plum" planting project in Changsha Village of Lixi Town.
Changan Automobile Statistics on Poverty Alleviation in the first half of 2019
| Indicator | Unit | Quantity / Details |
| Ⅰ. Total | —— | —— |
| 1.funds | 10 thousand RMB | 2050 |
| 2. Material | 10 thousand RMB | —— |
| Ⅱ. Subdivision | —— | —— |
| 1. Industrial poverty alleviation | —— | 300 |
| 1.1 Industrial poverty alleviation project type | —— | 2) "Golden Plum" Planting Project in Changsha Village, Lixi Town, Youyang; 20. |
| 2. Education poverty alleviation | —— | 380 |
| 2.1 Funding for poor students | 10 thousand RMB | 2) Dageda Hope Primary School Project in Yanshan county; 289 3) Biyun Hope Primary School Project in Yanshan county; 200 |
| 3. Medical and health poverty alleviation | —— | 200 |
| 3.1 Medical and health resources invested in poverty areas | 10 thousand RMB | Jishui County Health Express (Medical Ambulance) Project; 200 |
| 4. Other projects - people's livelihood poverty alleviation | —— | 1170 |
| 4.1 Amount of investment | 10 thousand RMB | Yanshan Garbage Collection Vehicle Purchase and Construction Project; 289 Inkshan Garbage Collection Tank Purchase |
（4）Follow-up precision poverty alleviation plan
According to the "Notice on Requesting Further Enhancement of Assistance to Mengxiang Automobile Training Base ofFuping Vocational Education Center" by the Office of the Poverty Alleviation Working Group of the State Administration of OrgansAffairs, the Company will carry out the poverty alleviation work in Fuping County, Hebei Province, in the second half of 2019,mainly for upgrading the Mengxiang Automobile Training Base of Fuping Vocational and Technical Education Center to the regionalcomprehensive high-level automobile and intelligent manufacturing production and education integration training base constructionproject. The Company plans to donate the vehicles, spare parts, machinery and equipment, including 38 vehicles, 77 spare parts (2categories and 8 kinds of materials), and 30 machines and equipment.XVI. Other important matters
□ Applicable √ Not-applicable
XVII. Important matters of company subsidiaries
□ Applicable √ Not-applicable
| Pengshui County; 30 |
Chapter 6 Changes in the shareholding of the company and
shareholders
I. Change in shareholdings
1. Change in shareholdings
Unit: one share
| Balance before current change | Addition and deduction(+，-) during change | Balance after current change | |||||||
| Quantity | (%) | Additional issued | Stock dividend | Provident fund transfer | other | Quantity | (%) | Quantity | |
| Non-circulated shares | 139,781,303 | 2.91% | 139,781,303 | 2.91% | |||||
| 1. State-owned legal person shares | 139,762,403 | 2.91% | 139,762,403 | 2.91% | |||||
| 2. Senior management personnel shares | 18,900 | 0.00% | 18,900 | 0.00% | |||||
| Circulated shares | 4,662,867,208 | 97.09% | 4,662,867,208 | 97.09% | |||||
| 1. Domestic listed RMB shares | 3,760,881,066 | 78.31% | 3,760,881,066 | 78.31% | |||||
| 2. Domestic listed foreign shares | 901,986,142 | 18.78% | 901,986,142 | 18.78% | |||||
| Total shares | 4,802,648,511 | 100.00% | 4,802,648,511 | 100.00% | |||||
Reason of stock changes
□ Applicable √ Not-applicable
Approval of stock changes
□ Applicable √ Not-applicable
Ownership transfer of stock change
□ Applicable √ Not-applicable
Progress of Share Repurchase
□ Applicable √ Not-applicable
Implementation Progress of Reducing Holdings of Repurchase Shares by Centralized Bidding
□ Applicable √ Not-applicable
The influence of share changes on financial indicators, such as the latest year and the latest basic earnings per share anddiluted earnings per share, the net assets per share belonging to the common shareholder of the company
□ Applicable √ Not-applicable
Other contents which the company regards necessary and securities supervising institution requires the Company to disclose
□ Applicable √ Not-applicable
2. Change in Non-circulated shares
√ Available □ Not-available
Unit: one share
| Name of shareholders | Non-circulated shares held at the year-beginning | Decrease during the reporting period | Increase during the reporting period | Non-circulated shares held at the year-end | Reason for non-circulated shares | Date for the circulated shares |
| China Changan Automobile Co., Ltd. | 139,762,403 | - | - | 139,762,403 | Non-public offering shares of 139,762,403 in 2016 | 2019-10-14 |
| Zhu Huarong | 18,900 | - | - | 18,900 | Executive lock stocks | 6 months after the retirement |
| Total | 139,781,303 | - | - | 139,781,303 | -- | -- |
II. Issuing and listing of securities
□ Applicable √ Not-applicable
III. Shareholding and shareholders of the company
Unit: one share
| At the end of the report period, the total number of shareholders | 180,066 | Number of preferred shareholders with resumed voting rights at the period-end | 0 | ||||||||
| Holding more than 5% of the shareholders, or top 10 shareholders situation | |||||||||||
| Name of shareholders | Nature of Shareholders | (%) | Shares held at the year-end | Increases and decreases during the report period | Non-circulated shares held at the year-end | Circulated shares held at the year-end | Pledged/ Frozen cases | ||||
| Share status | amount | ||||||||||
| China South Industries Group Co., Ltd. | State-owned legal person shares | 21.56% | 1,035,312,673 | - | - | - | No pledge or freeze | ||||
| China Changan Automobile Co., Ltd. | State-owned legal person shares | 19.32% | 928,044,946 | - | 139,762,403 | 788,282,543 | No pledge or freeze | ||||
| China securities finance Co, Ltd | domestic general legal person shares | 4.88% | 234,265,333 | - | - | - | No pledge or freeze | ||||
| United Prosperity Investment Co., Limited | foreign legal person shares | 3.21% | 154,120,237 | - | - | - | No pledge or freeze | ||||
| Central Huijin Investment Ltd. | domestic general legal person shares | 1.15% | 55,393,100 | - | - | - | No pledge or freeze | ||||
| DRAGON BILLION SELECT MASTER FUND | foreign legal person shares | 0.85% | 40,597,114 | - | - | - | No pledge or freeze | ||||
| GIC PRIVATE LIMITED | foreign legal person shares | 0.73% | 35,283,393 | -9,519,830 | - | - | No pledge or freeze | ||||
| Hong Kong Central Settlement Co., Ltd. | foreign legal person shares. | 0.73% | 34,925,042 | 11,276,995 | - | - | No pledge or freeze | ||||
| National Social Security Fund 107 Portfolio | fund, finance products, etc. | 0.57% | 27,581,041 | 27,581,041 | - | - | No pledge or freeze | ||||
| China Life Insurance Co., Ltd. - Dividend - Individual Dividend - 005L - FH002 Deep | fund, finance products, etc. | 0.57% | 27,309,067 | 27,309,067 | - | - | No pledge or freeze | ||||
| Explanation on the relationship and the action alike of above shareholders | Among the top 10 shareholders, China South Industries Group Co., Ltd., the actual controller; China Changan Automobile Group Co., Ltd., the controlling shareholder, and its wholly owned subsidiary United Prosperity (Hong Kong) Investment Co., Limited. belong to the concerted actor regulated by “Disclosure Administration of Shares Change Information of The Listed Company”. | ||||||||||
| The ten largest circulated shareholders | |||||||||||
| Name of shareholders | Shares at the year end | Shares type | |||||||||
| Type | Amount | ||||||||||
| China South Industries Group Co., Ltd. | 1,035,312,673 | RMB ordinary shares | 1,035,312,673 | ||||||||
| China Changan Automobile Co., Ltd. | 788,282,543 | RMB ordinary shares | 788,282,543 | ||||||||
| China securities finance Co, Ltd | 234,265,333 | RMB ordinary shares | 234,265,333 | ||||||||
| United Prosperity Investment Co., Limited | 154,120,237 | Domestic listed foreign shares | 154,120,237 | ||||||||
| Central Huijin Investment Ltd. | 55,393,100 | RMB ordinary shares | 55,393,100 | ||||||||
| DRAGON BILLION SELECT MASTER FUND | 40,597,114 | Domestic listed foreign shares | 40,597,114 |
| GIC PRIVATE LIMITED | 35,283,393 | Domestic listed foreign shares | 35,283,393 |
| Hong Kong Central Settlement Co., Ltd. | 34,925,042 | RMB ordinary shares | 34,925,042 |
| National Social Security Fund 107 Portfolio | 27,581,041 | RMB ordinary shares | 27,581,041 |
| China Life Insurance Co., Ltd. - Dividend - Individual Dividend - 005L - FH002 Deep | 27,309,067 | RMB ordinary shares | 27,309,067 |
| The top 10 shareholders to sell circulated shares, and the infinite tradable relationship between shareholders and top 10 shareholders or concerted action | Among the top 10 shareholders, China South Industries Group Co., Ltd., the actual controller; China Changan Automobile Group Co., Ltd., the controlling shareholder, and its wholly owned subsidiary United Prosperity (Hong Kong)Investment Co., Limited belong to the concerted actor regulated by “Disclosure Administration of Shares Change Information of The Listed Company”. | ||
Whether the company top 10 shareholders of ordinary shares, and the top 10 circulated shareholders agreed on the repurchasetransactions during the report period
□ Available √ Not- available
The company top 10 shareholders of ordinary shares, and the top 10 circulated shareholders did not agree on the repurchasetransactions during the reporting period
IV. The change of the controlling shareholders and theactual controllers
During the reporting period the change of controlling shareholders
□ Available √ Not- available
No changes in controlling shareholders during the reporting period.The change of the actual controllers during the reporting period
□ Available √ Not- available
No changes in the actual controllers during the reporting period.
Chapter 7 Information about Directors, Supervisors, Senior
ManagementI. Share ownership of directors, supervisors and senior managers
□ Available √ Not- available
The share ownership of the directors, supervisors and senior managers has no change during the reporting period. For details, plaeserefer to 2018 annual report.II. Departure and Hiring information of the directors, supervisors and senior manager
| Name | Duties | Type | Date | Reason |
| Yan Ming | Supervisory board chairman | Election | Jan 3th, 2019 | Appointment due to work |
| Zhang Anguo | Supervisor | Departure | Jun 12th, 2019 | Reached the statutory retirement age |
Chapter 8 Corporate BondsIs there a corporate bond that is publicly issued and listed on the stock exchange and fails to be fully paidup or not due on maturity until the approval of the semi-annual report
□ Yes √ No
Chapter 9 The Financial StatementsI. Auditing ReportSemi-annual report is audited
□ Yes √ No
No audit on the semi-annual financial report.II. Financial statement ment
Financial in notes to the statements of the unit is: RMB yuan
1. Consolidated Balance Sheet
In RMB Yuan
| Account | Ending Balance | Opening Balance |
| Current assets: | ||
| Cash | 10,535,284,892.55 | 9,980,544,526.14 |
| Transactional financial assets | 1,570,658,462.58 | - |
| Notes receivable | 15,646,668,140.73 | 20,561,625,805.24 |
| Accounts receivable | 2,011,970,761.86 | 1,409,419,600.50 |
| Prepayments | 1,037,445,041.94 | 866,249,749.51 |
| Other receivables | 3,508,904,992.23 | 3,250,452,923.70 |
| Interest receivable | 4,581,253.52 | 17,432,805.54 |
| Dividend receivable | 74,897,909.69 | - |
| Inventories | 5,705,376,137.26 | 4,917,420,457.19 |
| Other current assets | 2,386,633,331.39 | 2,227,565,353.23 |
| Total current assets | 42,402,941,760.54 | 43,213,278,415.51 |
| Non-current assets: | ||
| Available-for-sale financial assets | - | 1,957,873,311.31 |
| Long-term receivables | 13,951,703,216.21 | 13,275,170,118.83 |
| Other equity investment | 504,572,800.00 | - |
| Investment properties | 7,216,205.50 | 7,329,561.28 |
| Fixed assets | 23,096,697,122.71 | 22,161,054,058.31 |
| Construction in progress | 5,178,469,344.52 | 5,383,844,030.75 |
| Intangible assets | 5,157,430,063.87 | 5,018,243,552.80 |
| Devlopment expenditure | 760,182,010.40 | 789,597,615.60 |
| Goodwill | 9,804,394.00 | 9,804,394.00 |
| Long-term deferred expenses | 16,237,755.41 | 17,104,601.67 |
| Deferred tax assets | 1,563,728,004.61 | 1,655,554,438.89 |
| Other non-current assets | - | - |
| Total non-current assets | 50,246,040,917.23 | 50,275,575,683.44 |
| Total assets | 92,648,982,677.77 | 93,488,854,098.95 |
| Current liabilities: | ||
| Short-term loans | 210,000,000.00 | 190,000,000.00 |
| Notes payable | 13,769,475,508.94 | 14,807,862,262.39 |
| Accounts payable | 14,276,660,036.85 | 13,916,201,276.95 |
| Advances from customers | 2,956,683,361.56 | 1,556,482,278.92 |
| Payroll payable | 718,633,011.49 | 1,362,995,277.56 |
| Taxes payable | 291,143,424.37 | 669,316,487.25 |
| Other payables | 5,165,398,262.95 | 3,079,749,015.81 |
| Interest payables | - | - |
| Dividend payables | 86,527,416.00 | 79,742.80 |
| Non-current liabilities due within one year | - | 6,594,120.00 |
| Other current liabilities | 3,496,651,739.73 | 4,325,441,152.61 |
| Total current liabilities | 40,884,645,345.89 | 39,914,641,871.49 |
| Non-current liabilities: | ||
| Long-term loans | - | - |
| Long-term payable | 305,774,538.84 | 303,590,824.69 |
| Long term payroll payable | 50,169,379.85 | 53,837,000.00 |
| Estimated liabilities | 3,592,278,128.96 | 3,245,322,744.12 |
| Deferred earnings | 3,811,225,620.05 | 3,683,308,534.73 |
| Deferred tax liabilities | 128,477,234.19 | 135,231,170.59 |
| Total non-current liabilities | 7,887,924,901.89 | 7,421,290,274.13 |
| Total liabilities | 48,772,570,247.78 | 47,335,932,145.62 |
| Owners’ equity: | ||
| Share capital | 4,802,648,511.00 | 4,802,648,511.00 |
| Capital reserves | 5,057,242,440.17 | 5,057,242,440.17 |
| Other Comprehensive Income | 258,077,778.57 | 235,509,930.44 |
| Special reserves | 72,654,099.18 | 41,222,369.10 |
| Surplus reserves | 2,401,324,255.50 | 2,401,324,255.50 |
| Retained earnings | 31,380,523,736.00 | 33,707,011,170.31 |
| Equity attributable to owners | 43,972,470,820.42 | 46,244,958,676.52 |
| Minority interests | -96,058,390.43 | -92,036,723.19 |
| Total equity | 43,876,412,429.99 | 46,152,921,953.33 |
| Total liabilities and owener’s equity | 92,648,982,677.77 | 93,488,854,098.95 |
2. Balance sheet
In RMB Yuan
| Account | Ending Balance | Opening Balance |
| Current assets: | ||
| Cash | 6,698,422,103.34 | 7,310,973,018.99 |
| Transactional financial assets | 175,370,000.00 | - |
| Notes receivable | 14,161,450,629.65 | 19,391,160,283.70 |
| Accounts receivable | 6,945,459,716.89 | 5,679,160,679.69 |
| Prepayments | 898,186,001.89 | 671,849,711.04 |
| Other receivables | 2,500,415,415.10 | 2,344,318,158.83 |
| Interest receivable | - | 17,432,805.54 |
| Dividend receivable | - | - |
| Inventories | 4,621,978,826.11 | 3,851,783,233.12 |
| Other current assets | 1,464,380,012.55 | 1,355,155,749.21 |
| Total current assets | 37,465,662,705.53 | 40,604,400,834.58 |
| Non-current assets: | ||
| Available-for-sale financial assets | 541,182,000.00 | |
| Long-term equity investments | 19,034,465,670.17 | 18,017,137,600.72 |
| Other equity investment | 494,662,800.00 | - |
| Investment properties | - | - |
| Fixed assets | 17,810,903,333.74 | 16,795,537,563.35 |
| Construction in progress | 4,015,173,896.05 | 4,114,409,774.13 |
| Intangible assets | 3,925,681,021.92 | 4,054,893,372.88 |
| Development expenditure | 621,830,546.25 | 559,309,970.45 |
| Goodwill | - | - |
| Long-term deferred expenses | 11,563,878.39 | 12,555,353.69 |
| Deferred tax assets | 1,441,043,727.65 | 1,533,057,523.95 |
| Other non-current assets | - | 250,000,000.00 |
| Total non-current assets | 47,355,324,874.17 | 45,878,083,159.17 |
| Total assets | 84,820,987,579.70 | 86,482,483,993.75 |
| Current liabilities: | ||
| Short-term loans | - | - |
| Notes payable | 12,199,985,904.83 | 13,572,757,870.72 |
| Accounts payable | 11,427,979,197.45 | 10,690,985,635.15 |
| Advances from customers | 2,683,222,204.98 | 1,208,631,011.05 |
| Payroll payable | 402,607,121.40 | 1,001,765,362.99 |
| Taxes payable | 218,034,971.63 | 604,525,457.30 |
| Other payables | 3,839,324,170.55 | 3,219,909,047.22 |
| Interest payables | - | - |
| Dividend payables | 86,447,673.20 | - |
| Non-current liabilities within one year | - | - |
| Other current liabilities | 3,082,258,825.11 | 3,923,419,042.37 |
| Total current liabilities | 33,853,412,395.95 | 34,221,993,426.80 |
| Non-current liabilities: | ||
| Long-term loans | - | - |
| Long-term payable | 236,869,351.54 | 248,240,115.29 |
| Long term payroll payable | 20,933,120.15 | 24,315,000.00 |
| Estimated liabilities | 2,498,529,264.52 | 2,372,512,543.49 |
| Deferred earnings | 2,864,067,397.18 | 2,827,208,446.74 |
| Deferred tax liabilities | 34,458,242.04 | 26,683,742.04 |
| Total non-current liabilities | 5,654,857,375.43 | 5,498,959,847.56 |
| Total liabilities | 39,508,269,771.38 | 39,720,953,274.36 |
| Owners' equity: | ||
| Share capital | 4,802,648,511.00 | 4,802,648,511.00 |
| Capital reserves | 4,705,917,638.38 | 4,705,917,638.38 |
| Other comprehensive income | 149,525,803.58 | 149,525,803.58 |
| Special reserves | 25,951,495.71 | 19,835,367.61 |
| Surplus reserves | 2,401,324,255.50 | 2,401,324,255.50 |
| Retained earnings | 33,227,350,104.15 | 34,682,279,143.32 |
| Total owners' equity | 45,312,717,808.32 | 46,761,530,719.39 |
| Total liabilities and owners’ equity | 84,820,987,579.70 | 86,482,483,993.75 |
3. Consolidated Income Statement
In RMB Yuan
| Account | Current Period | Prior Period |
| 1.Total operating revenue | 29,875,780,096.84 | 35,642,832,190.04 |
| Operating revenue | 29,875,780,096.84 | 35,642,832,190.04 |
| 2.Total operating costs | 32,409,385,145.35 | 36,375,105,754.27 |
| Operating cost | 27,419,410,626.92 | 30,614,845,704.45 |
| Tax and surcharges | 1,080,270,474.78 | 1,286,915,201.57 |
| Operating expenses | 1,443,216,541.30 | 2,543,462,428.51 |
| General and administrative expenses | 1,260,364,119.97 | 1,048,876,421.66 |
| Research and development expenses | 1,302,956,091.53 | 1,106,524,840.39 |
| Financial expenses | -96,832,709.15 | -225,518,842.31 |
| Interest expense | 28,216,059.24 | 13,996,367.31 |
| Interest income | 128,484,820.10 | 263,722,875.78 |
| Add: Other income | 620,733,074.11 | 1,116,231,219.32 |
| Investment income | -108,336,709.94 | 1,362,011,815.11 |
| Including: Investment income from associates and joint venture | -108,336,709.94 | 1,362,011,815.11 |
| Exchange gains | ||
| Gains from changes in fair value | 40,337,151.27 | - |
| Credit impairment loss | -9,529,733.66 | - |
| Asset impairment loss | -152,676,538.06 | -108,941,422.42 |
| Gain on disposal of assets | 9,392,459.28 | 18,771,809.69 |
| 3.Operating profit | -2,133,685,345.51 | 1,655,799,857.47 |
| Add: Non-operating income | 18,836,680.44 | 29,318,896.76 |
| Less: Non-operating expenses | 12,645,067.20 | 52,348,762.93 |
| 4.Total profit | -2,127,493,732.27 | 1,632,769,991.30 |
| Less: Income tax expense | 116,567,696.08 | 15,288,317.83 |
| 5.Net profit | -2,244,061,428.35 | 1,617,481,673.47 |
| Classification by going concern | ||
| Net profit from continuing operations | -2,244,061,428.35 | 1,617,481,673.47 |
| Net profit from discontinued operations |
| Classification by ownership attribution | ||
| Net profit attributable to owners | -2,240,039,761.11 | 1,609,606,578.84 |
| Minority interests | -4,021,667.24 | 7,875,094.63 |
| 6.Other comprehensive income, net of tax | 22,567,848.13 | 247,029,533.59 |
| Net after-tax net of other comprehensive income attributable to the parent company owner | 22,567,848.13 | 247,029,533.59 |
| Other comprehensive income that will be reclassified into profit or loss | 22,567,848.13 | 247,029,533.59 |
| Other comprehensive income of convertible gains and losses under the equity method | - | 289,756,488.89 |
| Gains and losses from changes in fair value of available-for-sale financial assets | - | -23,536,500.00 |
| Foreign currency financial statement translation difference | 22,567,848.13 | -19,190,455.30 |
| 7.Total comprehensive income | -2,221,493,580.22 | 1,864,511,207.06 |
| Total comprehensive income attributable to owners | -2,217,471,912.98 | 1,856,636,112.43 |
| Total comprehensive income attributable to minority interest | -4,021,667.24 | 7,875,094.63 |
| 8.Earnings per share | ||
| Basic earnings per share | -0.47 | 0.34 |
| Diluted earnings per share | -0.47 | 0.34 |
4. Income Statement
In RMB Yuan
| Account | Current Period | Prior Perid |
| 1.Operating revenue | 26,805,108,322.22 | 34,209,065,716.02 |
| Less: Operating cost | 24,637,906,770.95 | 29,726,487,573.72 |
| Tax and surcharges | 855,166,897.03 | 1,092,437,739.80 |
| Operating expenses | 902,216,576.48 | 2,298,436,366.37 |
| General and administrative expenses | 670,820,794.55 | 715,915,096.88 |
| Research and development expenses | 1,347,276,655.86 | 1,088,618,476.49 |
| Financial expenses | -88,753,361.46 | -248,434,734.69 |
| Interest expense | 14,997,114.41 | - |
| Interest income | 109,584,194.58 | 256,209,477.45 |
| Add: Other income | 406,839,978.09 | 761,820,507.26 |
| Investment income | -73,898,822.33 | 1,995,138,886.45 |
| Including: Investment income from associates and joint venture | -78,048,193.41 | 1,362,011,815.11 |
| Exchange gains | ||
| Gains from changes in fair value | 51,830,000.00 | |
| Credit impairment loss | -4,381,254.25 | |
| Asset impairment loss | -141,818,001.51 | -114,014,999.44 |
| Gain on disposal of assets | 6,747,426.61 | 23,972,983.02 |
| 2.Operating profit | -1,274,206,684.58 | 2,202,522,574.74 |
| Add: Non-operating income | 14,232,341.29 | 22,601,200.00 |
| Less: Non-operating expenses | 8,718,726.38 | 44,712,292.46 |
| 3.Total profit | -1,268,693,069.67 | 2,180,411,482.28 |
| Less: Income tax expense | 99,788,296.30 | -31,839,831.42 |
| 4.Net profit | -1,368,481,365.97 | 2,212,251,313.70 |
| Net profit from continuing operations | -1,368,481,365.97 | 2,212,251,313.70 |
| Net profit from discontinued operations | ||
| 5.Other comprehensive income, net of tax | - | 266,219,988.89 |
| Other comprehensive income that will be reclassified into profit or loss | - | 266,219,988.89 |
| Other comprehensive income of convertible gains and losses under the equity method | - | 289,756,488.89 |
| Gains and losses from changes in fair value of available-for-sale financial assets | - | -23,536,500.00 |
| 6.Total comprehensive income | -1,368,481,365.97 | 2,478,471,302.59 |
| 7.Earnings per share | ||
| Basic earnings per share | -0.28 | 0.46 |
| Diluted earnings per share | -0.28 | 0.46 |
5. Consolidated cash flow statement
In RMB Yuan
| Account | Current Period | Prior Perid |
| 1.Cash flows from operating activities: | ||
| Cash received from sale of goods or rendering of services | 37,501,789,702.13 | 47,598,885,985.36 |
| Refunds of taxes | 305,232,064.00 | 196,358,525.83 |
| Cash received relating to other operating activities | 3,464,749,370.24 | 1,720,885,871.60 |
| Subtotal of cash inflows | 41,271,771,136.37 | 49,516,130,382.79 |
| Cash paid for goods and services | 29,029,097,098.22 | 36,479,347,621.36 |
| Cash paid to and on behalf of employees | 2,984,764,831.32 | 3,423,077,482.78 |
| Cash paid for all types of taxes | 1,743,016,544.47 | 1,795,067,722.02 |
| Cash paid relating to other operating activities | 3,294,629,031.41 | 3,417,235,796.48 |
| Subtotal of cash outflows | 37,051,507,505.42 | 45,114,728,622.64 |
| Net cash flows from operating activities | 4,220,263,630.95 | 4,401,401,760.15 |
| 2.Cashflows from investing activities: | ||
| Cash received from investment income | - | 114,500,000.00 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 5,214,056.34 | 18,444,059.30 |
| Cash received relating to other investing activities | 1,478,695.29 | 17,358,750.00 |
| Subtotal of cash inflows | 6,692,751.63 | 150,302,809.30 |
| Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | 2,438,475,206.69 | 3,071,429,581.17 |
| Cash paid for acquisition of investments | 936,788,517.00 | 52,243,750.00 |
| Cash paid relating to other investing activities | 315,938,190.60 | - |
| Subtotal of cash outflows | 3,691,201,914.29 | 3,123,673,331.17 |
| Net cash flows from investing activities | -3,684,509,162.66 | -2,973,370,521.87 |
| 3.Cash flows from financing activities: | ||
| Cash received from borrowings | 41,000,000.00 | 166,000,000.00 |
| Cash received relating to other | 37,159,887.74 | 880,129,667.40 |
| financing activities | ||
| Subtotal of cash inflows | 78,159,887.74 | 1,046,129,667.40 |
| Cash repayments of borrowings | 27,708,100.00 | 171,300,000.00 |
| Cash paid for distribution of dividends or profits and interest expenses | 23,367,744.44 | 5,326,893.20 |
| Cash paid relating to other financing activities | 92,571,987.62 | - |
| Subtotal of cash outflows | 143,647,832.06 | 176,626,893.20 |
| Net cash flows from financing activities | -65,487,944.32 | 869,502,774.20 |
| 4.Effect of changes in exchange rate on cash | 29,186,874.52 | 18,804,298.88 |
| 5.Net increase in cash and cash equivalents | 499,453,398.49 | 2,316,338,311.36 |
| Add: Opening balance of cash and cash equivalents | 9,648,153,614.80 | 21,451,305,090.53 |
| 6.Closing balance of cash and cash equivalents | 10,147,607,013.29 | 23,767,643,401.89 |
6. Cash flow statement
In RMB Yuan
| Account | Current Period | Prior Perid |
| 1.Cash flows from operating activities: | ||
| Cash received from sale of goods or rendering of services | 34,665,878,858.45 | 45,723,211,451.95 |
| Refunds of taxes | - | - |
| Cash received relating to other operating activities | 2,199,853,209.77 | 1,227,875,965.34 |
| Subtotal of cash inflows | 36,865,732,068.22 | 46,951,087,417.29 |
| Cash paid for goods and services | 26,688,730,896.99 | 34,485,733,663.71 |
| Cash paid to and on behalf of employees | 2,093,118,245.08 | 2,753,479,395.91 |
| Cash paid for all types of taxes | 1,228,855,624.27 | 1,308,603,097.31 |
| Cash paid relating to other operating activities | 3,878,425,262.91 | 3,359,852,336.20 |
| Subtotal of cash outflows | 33,889,130,029.25 | 41,907,668,493.13 |
| Net cash flows from operating activities | 2,976,602,038.97 | 5,043,418,924.16 |
| 2.Cashflows from investing activities: | ||
| Cash received from return on investments | - | 839,201.56 |
| Cash received from investment income | 4,398,333.33 | 119,200,416.67 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | - | 18,417,859.30 |
| Cash received relating to other investing activities | - | 100,000,000.00 |
| Subtotal of cash inflows | 4,398,333.33 | 238,457,477.53 |
| Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | 2,281,259,200.99 | 2,869,658,085.59 |
| Cash paid for acquisition of investments | 997,294,972.55 | 157,000,000.00 |
| Cash paid relating to other investing activities | 300,000,000.00 | 200,000,000.00 |
| Subtotal of cash outflows | 3,578,554,173.54 | 3,226,658,085.59 |
| Net cash flows from investing activities | -3,574,155,840.21 | -2,988,200,608.06 |
| 3.Cash flows from financing activities: | ||
| Cash received from borrowings | - | - |
| Cash received relating to other financing activities | - | 461,856,503.42 |
| Subtotal of cash inflows | - | 461,856,503.42 |
| Cash repayments of borrowings | - | - |
| Cash paid for distribution of dividends or profits and interest expenses | 14,997,114.41 | - |
| Cash paid relating to other financing activities | - | - |
| Subtotal of cash outflows | 14,997,114.41 | - |
| Net cash flows from financing activities | -14,997,114.41 | 461,856,503.42 |
| 4.Effect of changes in exchange rate on cash | - | - |
| 5.Net increase in cash and cash | -612,550,915.65 | 2,517,074,819.52 |
| equivalents | ||
| Add: Opening balance of cash and cash equivalents | 7,310,973,018.99 | 20,172,657,984.53 |
| 6.Closing balance of cash and cash equivalents | 6,698,422,103.34 | 22,689,732,804.05 |
7. Consolidated statement of changes in shareholders’ equity
In RMB Yuan
| Items | Current period | |||||||||
| Equity attributable to owners | Minority interest | Total equity | ||||||||
| Share capital | Capital reserves | Less: Treasury shares | Special reserves | Surplus reserves | General reserves | Retained earnings | Other comprehensive income | |||
| I. At end of last year | 4,802,648,511.00 | 5,057,242,440.17 | - | 41,222,369.10 | 2,401,324,255.50 | 33,707,011,170.31 | 235,509,930.44 | -92,036,723.19 | 46,152,921,953.33 | |
| II. At beginning of year | 4,802,648,511.00 | 5,057,242,440.17 | - | 41,222,369.10 | 2,401,324,255.50 | 33,707,011,170.31 | 235,509,930.44 | -92,036,723.19 | 46,152,921,953.33 | |
| III. Changes during the year | - | - | - | 31,431,730.08 | - | -2,326,487,434.31 | 22,567,848.13 | -4,021,667.24 | -2,276,509,523.34 | |
| 1.Total comprehensive income | -2,240,039,761.11 | 22,567,848.13 | -4,021,667.24 | -2,221,493,580.22 | ||||||
| 2. Capital contributed by owners and capital decreases | - | |||||||||
| 3. Distribution of profit | -86,447,673.20 | -86,447,673.20 | ||||||||
| Distribution to owners | -86,447,673.20 | -86,447,673.20 | ||||||||
| 4. Special reserves | 31,431,730.08 | 31,431,730.08 | ||||||||
| (1) Pick-up in current period | 36,229,412.78 | 36,229,412.78 | ||||||||
| (2) Used in current period | -4,797,682.70 | -4,797,682.70 | ||||||||
| IV. At end of current period | 4,802,648,511.00 | 5,057,242,440.17 | - | 72,654,099.18 | 2,401,324,255.50 | - | 31,380,523,736.00 | 258,077,778.57 | -96,058,390.43 | 43,876,412,429.99 |
Prior period
In RMB Yuan
| Items | Prior period | |||||||||
| Equity attributable to owners | Minority interest | Total equity | ||||||||
| Share capital | Capital reserves | Less: Treasury shares | Special reserves | Surplus reserves | General reserves | Retained earnings | Other comprehensive income | |||
| I. At end of last year | 4,802,648,511.00 | 5,099,405,956.94 | - | 28,279,733.06 | 2,401,324,255.50 | - | 35,184,073,061.94 | 82,959,423.84 | -135,511,683.82 | 47,463,179,258.46 |
| II. At beginning of year | 4,802,648,511.00 | 5,099,405,956.94 | - | 28,279,733.06 | 2,401,324,255.50 | - | 35,184,073,061.94 | 82,959,423.84 | -135,511,683.82 | 47,463,179,258.46 |
| III. Changes during the year | - | - | - | 17,709,058.85 | - | - | -548,183,704.82 | 247,029,533.59 | 7,875,094.63 | -275,570,017.75 |
| 1.Total comprehensive income | - | - | - | - | - | - | 1,609,606,578.84 | 247,029,533.59 | 7,875,094.63 | 1,864,511,207.06 |
| 2. Capital contributed by owners and capital decreases | ||||||||||
| 3. Distribution of profit | - | - | - | - | - | -- | -2,157,790,283.66 | - | - | -2,157,790,283.66 |
| Distribution to owners | - | - | - | - | - | - | -2,157,790,283.66 | - | - | -2,157,790,283.66 |
| 4. Special reserves | - | - | - | 17,709,058.85 | - | - | - | - | - | 17,709,058.85 |
| (1) Pick-up in current period | - | - | - | 40,997,574.06 | - | - | - | - | - | 40,997,574.06 |
| (2) Used in current period | - | - | - | -23,288,515.21 | - | - | - | - | - | -23,288,515.21 |
| IV. At end of current period | 4,802,648,511.00 | 5,099,405,956.94 | - | 45,988,791.91 | 2,401,324,255.50 | - | 34,635,889,357.12 | 329,988,957.43 | -127,636,589.19 | 47,187,609,240.71 |
8. Statement of changes in shareholders’ equity
In RMB Yuan
| Items | Current period | |||||||
| Share capital | Capital reserves | Less: Treasury shares | Special reserves | Surplus reserves | Retained earnings | Other comprehensive income | Total equity | |
| I. At end of last year | 4,802,648,511.00 | 4,705,917,638.38 | 19,835,367.61 | 2,401,324,255.50 | 34,682,279,143.32 | 149,525,803.58 | 46,761,530,719.39 | |
| II. At beginning of year | 4,802,648,511.00 | 4,705,917,638.38 | - | 19,835,367.61 | 2,401,324,255.50 | 34,682,279,143.32 | 149,525,803.58 | 46,761,530,719.39 |
| III. Changes during the year | - | - | - | 6,116,128.10 | - | -1,454,929,039.17 | - | -1,448,812,911.07 |
| 1.Total comprehensive income | -1,368,481,365.97 | - | -1,368,481,365.97 | |||||
| 2. Capital contributed by owners and capital decreases | - | |||||||
| The amount of shares paid into the owner's equity | ||||||||
| 3. Distribution of profit | -86,447,673.20 | -86,447,673.20 | ||||||
| Distribution to owners | -86,447,673.20 | -86,447,673.20 | ||||||
| 4. Special reserves | 6,116,128.10 | 6,116,128.10 | ||||||
| (1) Pick-up in current period | 23,037,668.82 | 23,037,668.82 | ||||||
| (2) Used in current period | -16,921,540.72 | -16,921,540.72 | ||||||
| IV. At end of current period | 4,802,648,511.00 | 4,705,917,638.38 | - | 25,951,495.71 | 2,401,324,255.50 | 33,227,350,104.15 | 149,525,803.58 | 45,312,717,808.32 |
Prior period
In RMB Yuan
| Items | Prior period | |||||||
| Share capital | Capital reserves | Less: Treasury shares | Special reserves | Surplus reserves | Retained earnings | Other comprehensive income | Total equity | |
| I. At end of last year | 4,802,648,511.00 | 4,717,192,101.72 | - | 12,013,706.73 | 2,401,324,255.50 | 36,640,962,334.05 | 132,520,410.88 | 48,706,661,319.88 |
| II. At beginning of year | 4,802,648,511.00 | 4,717,192,101.72 | - | 12,013,706.73 | 2,401,324,255.50 | 36,640,962,334.05 | 132,520,410.88 | 48,706,661,319.88 |
| III. Changes during the year | - | - | - | 10,769,602.18 | - | 54,461,030.04 | 266,219,988.89 | 331,450,621.11 |
| 1.Total comprehensive income | - | - | - | - | - | 2,212,251,313.70 | 266,219,988.89 | 2,478,471,302.59 |
| 2. Capital contributed by owners and capital decreases | ||||||||
| The amount of shares paid into the owner's equity | ||||||||
| 3. Distribution of profit | - | - | - | - | - | -2,157,790,283.66 | - | -2,157,790,283.66 |
| Distribution to owners | - | - | - | - | - | -2,157,790,283.66 | - | -2,157,790,283.66 |
| 4. Special reserves | - | - | - | 10,769,602.18 | - | - | - | 10,769,602.18 |
| (1) Pick-up in current period | - | - | - | 28,985,079.84 | - | - | - | 28,985,079.84 |
| (2) Used in current period | - | - | - | -18,215,477.66 | - | - | - | -18,215,477.66 |
| IV. At end of current period | 4,802,648,511.00 | 4,717,192,101.72 | - | 22,783,308.91 | 2,401,324,255.50 | 36,695,423,364.09 | 398,740,399.77 | 49,038,111,940.99 |
III. CORPORATE INFORMATION
IV. BASIS OF PREPERATION
| The financial statements have been prepared in accordance with Accounting Standards for Business Enterprises-Basic Standard and the specific standards issued and modified subsequently, and the implementation guidance, interpretations and other relevant provisions issued 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 assets are impaired, the corresponding provisions should be made accordingly. |
V. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESAccording to the actual production and operation characteristics, the group formulated the specific accounting policies andaccounting estimates, mainly reflected in provision of accounts receivables (note 5 (9-10)), inventory valuation (Note 5 (11)),depreciation of fixed assets, intangible assets amortization (Note 5 (14) (17)), condition of capitalization of research and developmentexpense (Note 5 (18)) and revenue recognition and measurement (Note 5 (24)).
1. Statement of compliance with Accounting Standards for Business Enterprises
2. Accounting year
The financial statements present fairly and fully, the financial position of the Company as at 30 June 2019 and the financial resultsand the cash flows for the half year then ended in accordance with Accounting Standards for Business Enterprises.The accounting year of the Group is from 1 January to 31 December of each calendar year.
3. Functional currency
The accounting year of the Group is from 1 January to 31 December of each calendar year.The Group’s functional and reporting currency is the Renminbi (“RMB”). Unless otherwise stated, the unit of the currency is Yuan.Each entity in the Group determines its own functional currency in accordance with the operating circumstances. At the end of thereporting period, the foreign currency financial statements are translated into the reporting currency of the Company of RMB.
4. Business combination
The Group’s functional and reporting currency is the Renminbi (“RMB”). Unless otherwise stated, the unit of the currency is Yuan.Each entity in the Group determines its own functional currency in accordance with the operating circumstances. At the end of thereporting period, the foreign currency financial statements are translated into the reporting currency of the Company of RMB.
Business combinations are classified into business combinations involving entities under common control and business combinationsinvolving entities not under common control.
| Business combination involving entities under common control A business combination involving entities under common control is a business combination in which all of the combining entities are ultimately controlled by the same party or parties both before and after the combination, and that control is not transitory. For a |
5. Consolidated financial statements
| In the preparation of the consolidated financial statements, the financial statements of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. When the current loss belong to minorities of the subsidiary exceeds the beginning equity of the subsidiary belong to minorities, the exceeded part will still deduct the equity belong to minorities. With respect to subsidiaries acquired through business combinations involving entities not under common control, the operating results and cash flows of the acquiree should be included in the consolidated financial statements, from the day that the Group gains control, till the Group ceases the control of it. While preparing the consolidated financial statements, the acquirer should adjust the subsidiary’s financial statements, on the basis of the fair values of the identifiable assets, liabilities and contingent liabilities recognized on the acquisition date. With respect to subsidiaries acquired through business combinations involving entities under common control, the operating results and cash flows of the acquiree should be included in the consolidated financial statements from the beginning of the period in which the combination occurs. If the changes of relevant facts and circumstances will result in the changes of one or more control elements, then the Group should reassess whether it has taken control of the investee. |
6. Joint venture arrangement classification and joint operation
7. Cash and cash equivalents
Joint venture arrangements are classified into joint operation and joint venture. Joint operation refers to those joint venturearrangements, relevant assets and liabilities of which are enjoyed and assumed by the joint venturers. Joint ventures refer to thosejoint venture arrangements, only the right to net assets of which is enjoyed by the joint venturers.
Any joint venturer 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 itspercentage; and separate costs and costs for the joint operation based on its percentage.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 insignificant
8. Foreign currency translation
risk of changes in value.
The Group translates the amount of foreign currency transactions occurred into functional currency.
| The foreign currency transactions are recorded, on initial recognition in the functional currency, by applying to the foreign currency amount at the spot exchange rate on the transaction dates. Foreign currency monetary items are translated using the spot exchange rate quoted by the People’s Bank of China at the balance sheet date. The exchange gains or losses arising from occurrence of transactions and exchange of currencies, except for those relating to foreign currency borrowings specifically for construction and acquisition of fixed assets capitalized, are dealt with in the profit and loss accounts. Non-monetary foreign currency items measured at historical cost remain to be translated at the spot exchange rate prevailing on the transaction date, and the amount denominated in the functional currency should not be changed. Non-monetary foreign currency items measured at fair value should be translated at the spot exchange rate prevailing on the date when the fair values are determined. The exchange difference thus resulted should be charged to the current income or other comprehensive income account of the current period. When preparing consolidated financial statements, the financial statements of the subsidiaries presented in foreign currencies are translated into Renminbi as follows: asset and liability accounts are translated into Renminbi at exchange rates ruling at the balance sheet date; shareholders’ equity accounts other than retained profits are translated into Renminbi at the applicable exchange rates ruling at the transaction dates; income and expense in income statement are translated into Renminbi at spot exchange rates on transaction occurrence; total difference between translated assets and translated liabilities and shareholders’ equity is separately listed as “foreign currency exchange differences” below retained profits. The translation difference arising from the settlement of oversea subsidiaries is charged to the current liquidation profit and loss in proportion to the settlement ratio of the assets concerned. Foreign currency cash flows and the cash flows of foreign subsidiaries should be translated using the average exchange rate prevailing on the transaction month during which the cash flows occur. The amount of the effect on the cash arising from the change in the exchange rate should be separately presented as an adjustment item in the cash flow statement. |
9. Financial instruments
(1) Financial instruments (Applicable since January 1, 2019)
| Recognition and derecognition The Group recognizes a financial asset or a financial liability, when the Group becomes a party to the contractual provision of the instrument. The Group derecognizes a financial asset (or part of a financial asset, or part of a group of similar financial assets), be written off from the account and balance sheet , when the following conditions are met: |
(2) Financial instruments (Applicable before January 1, 2019)
10. Accounts receivable
(1) Accounts receivable (effective since 1 January 2019)
The determination method and accounting treatment method of the anticipated credit loss of bills receivable and accounts receivableof the Group as of January 1, 2019 are detailed in this chapter "9. Financial instruments (for trial use as since January 1, 2019)".
(2) Accounts receivable (effective before 1 January 2019)
①Accounts receivable which is individually significant and analyzed individually for provision：
determines whether it has retained control of the financial asset. In this case: (i) if the Group has not retained control, it derecognizesthe financial asset and recognize separately as assets or liabilities any rights and obligations created not retained in the transfer; (ii) ifthe Group has retained control, it continues to recognize the financial asset to the extent of its continuing involvement in thetransferred financial asset and recognizes an associated liability.Criterion for individually significant items
| Criterion for individually significant items | Accounts receivable balance greater than RMB15 million due from non-related parties |
| Method for provision | A provision of the difference between recoverable amount and book value is recognized based on individually analysis |
② Accounts receivable analyzed by credit risk charactristics group for provision：
| Criterion for group | |
| Group 1 | Accounts receivable due from non-related parties other than individually significant items or insignificantly but analyzed individually for provision |
| Group 2 | Accounts receivable due from related parties |
| Method for the provision of group | |
| Group 1 | Making provision according to aging analysis |
| Group 2 | A provision of the difference between recoverable amount and book value is recognized based on individually analysis. |
Group 1, the provision analyzed according to aging analysis:
| Aging | Provision percentage (%) | Provision percentage (%) |
| Within 1 year | ||
| Within 6 months | 0 | 0 |
| 6 to 12 months | 5 | 5 |
| 1 to 2 years | 10 | 10 |
| 2 to 3 years | 30 | 30 |
| 3 to 4 years | 50 | 50 |
| 4 to 5 years | 80 | 80 |
| Above 5 years | 100 | 100 |
③Accounts receivable which is individually insignificant but analyzed individually for provision
| Criterion for individually analysis for provision | There is objective evidence that the accounts receivable due from non-related parties is impaired and the future recoverable possibility is little. |
| Method for provision | A provision of the difference between recoverable amount and book value is recognized individually. |
11. Inventories
| Inventory is initially carried at the actual cost. Inventory costs comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventory to its present location and condition. Weighted average method is assigned to the determination of actual 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 realizable value, provision for the inventory should be made through profit or loss. If factors that resulted in the provision for the inventory have disappeared and made the net realizable value higher than their book value, the amount of the write-down should be reversed, to the extent of the amount of the provision for the inventory, and the reversed amount should be recognized in the income statement for the current period. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The impairment provision should be made on a basis of each item of inventories according to the difference between cost and net realizable value. For large numbers of inventories at relatively low unit prices, the provision for loss on decline in value of inventories should be made by category. |
12. Long-term equity investments
13. Investment property
be recognized in the income statement for the current period. As to other comprehensive income recognized based on measurementof the 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, othercomprehensive income and profit distribution, the investing party shall be transferred to the income statement for the current period.If the remaining equities still be measured under the equity method, accumulative change previously recorded in othercomprehensive income shall be transferred to current profit or loss, in measurement on the same basis as the invested entity haddirectly disposed of the assets or liabilities related thereto. The income or loss recorded in the equity directly should been transferredto the current income statement on settlement of the equity investment on the disposal proportion.
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 an investment property shall be included in the cost of the investment property, if the economic benefits pertinent to this real estate are likely to flow into the enterprise, and, the cost of the investment property can be reliably measured. Otherwise, they should be included in the current profits and losses upon occurrence. The group adopts the cost method to make follow-up measurement to the investment property. The buildings are depreciated under straight-line method. |
14. Fixed assets
| Fixed assets are initially measured at actual cost on acquisition. The cost of a purchased fixed asset comprises the purchase price, relevant taxes and any directly attributable expenditure for bringing the asset to working condition for its intended use, such as delivery and handling costs, installation costs and other surcharges. |
Fixed assets are depreciated on straight-line basis. The estimated useful lives, estimated residual values and annual depreciation ratesfor each category of fixed assets are as follows:
| Category | Deprecation period | Residual rate (%) | Yearly deprecation rate (%) |
| Buildings | 20 to 35 years | 3% | 2.77%-4.85% |
| Machinery (Note) | 5 to 20 years | 3% | 4.85%-19.40% |
| Vehicles | 4 to 10 years | 3% | 9.70%-24.25% |
| Others | 3 to 21 years | 3% | 4.62%-32.33% |
| Note: the molds in machinery should be depreciated in units-of-production method. | |||
15. Construction in progress
The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at least at theend of each year and makes adjustments if necessary.
The cost of construction in progress is determined according to the actual expenditure for the construction, including all necessaryconstruction expenditure incurred during the construction period, borrowing costs that should be capitalized before the constructionreaches the condition for intended use and other relevant expenses.
Construction in progress is transferred to fixed assets when the asset is ready for its intended use.
16. Borrowing costs
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.
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 of property, plant and equipment and inventory etc.) that necessarily takes a substantial period of time to get ready for its intended use of sale. The capitalization of borrowing costs is as part of the cost of a qualifying asset shall commence when: 1) expenditure for the asset is being incurred; 2) borrowing costs are being incurred; and 3) activities that are necessary to prepare the asset for its intended use or sale are in progress. Capitalization of borrowing costs shall be ceased when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale have been done. And subsequent borrowing costs are recognized in the income statement. During the capitalization period, the amount of interest to be capitalized for each accounting period shall be determined as follows: 1) where funds are borrowed for a specific-purpose, the amount of interest to be capitalized is the actual interest expense incurred on that borrowing for the period less any bank interest earned form depositing the borrowed funds before being used on the asset or any investment income on the temporary investment of those funds; 2) where funds are borrowed for a general-purpose, the amount of interest to be capitalized on such borrowings is determined by applying a weighted average interest rate to the weighted average of the excess amounts of cumulative expenditure on the asset over |
| During the construction or manufacture of assets that are qualified for capitalization, if abnormal discontinuance, other than procedures necessary for their reaching the expected useful conditions, happens, and the duration of the discontinuance is over three months, the capitalization of the borrowing costs is suspended. Borrowing costs incurred during the discontinuance are recognized as expense and charged to the income statement of the current period, till the construction or manufacture of the assets resumes. |
17. Intangible assets
18. Research and development expenditures
19. Impairment of assets
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 intangibleassets, with the support of sufficient technologies, financial resources and other resources; and (e) the development expenditures ofthe intangible assets can be reliably measured. Expenses incurred that don’t meet the above requirements unanimously should beexpensed in the income statement of the reporting period.
The Group discriminates between research and development stage with the condition that the project research has been determined,in which the relevant research complete all the fractionalization of products measurements and final product scheme under finalapproval of management. The expenditures incurred before project-determination stage is charged to the current income, otherwise itis recorded as development cost.
The Group determines the impairment of assets, other than the impairment of inventory, deferred income taxes, and financial 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 existsthat an asset may be impaired, the Group estimates the recoverable amount of the asset and performs impairment tests. Goodwillarising from a business combination and an intangible asset with an indefinite useful life are tested for impairment at least at the endof every year, irrespective of whether there is any indication that the asset may be impaired. An intangible asset which is not readyfor its intended 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 flowexpected to be derived from the asset. The Group estimates the recoverable amount on an individual basis. If it is not possible toestimate the recoverable amount of the individual asset, the Group determines the recoverable amount of the asset group to which theasset belongs. Identification of an asset group is based on whether major cash flows generated by the asset group are independent ofthe cash flows from other assets or asset groups.
When the recoverable amount of an asset or asset group is less than its carrying amount, the carrying amount is reduced to 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
| When an impairment test is conducted on an asset group or a set of asset groups that contains goodwill, if there is any indication of impairment, the Group firstly tests the asset group or the set of asset groups excluding the amount of goodwill allocated for impairment, i.e., it determines and compares the recoverable amount with the related carrying amount and then recognize impairment loss if any. Thereafter, the Group tests the asset group or set of asset groups including goodwill for impairment, the carrying amount (including the portion of the carrying amount of goodwill allocated) of the related asset group or set of asset groups is compared to its recoverable amount. If the carrying amount of the asset group or set of asset groups is higher than its recoverable amount, the amount of the impairment loss is firstly eliminated by and amortized to the book value of the goodwill included in the asset group or set of asset groups, and then eliminated by the book value of other assets according to the proportion of the book values of assets other than the goodwill in the asset group or set of asset groups. Once the above impairment loss is recognized, it cannot be reversed in subsequent periods. |
20. Long-term deferred expenses
21. Employee benefits
The long-term deferred expenses represent the payment for the improvement on buildings and other expenses, which have been paidand should be deferred in the following years. Long-term deferred expenses are amortized on the straight-line basis over the expectedbeneficial period and are presented at actual expenditure net of accumulated amortization.
Employee benefits refer to all kinds of remunerations or compensation made by enterprises to their employees in exchange forservices provided by the employees or termination of labor relation. Employee compensation includes short-term compensation andpost-employment benefits. The benefits offered by enterprises to the spouse, children, the dependents of the employee, the familymember of deceased employee and other beneficiaries are also employee compensation.
| Short-term employee salaries During the accounting period of employee rendering service, the actural employees salaries and are charged to the statement of profit or 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, is recognized, 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. The benefits are unfunded. The cost of providing benefits under the defined benefit plan is determined using the projected unit credit |
22. Provisions
actuarial valuation method.
Remeasurements arising from defined benefit pension plans are recognised immediately in the consolidated statement of financialposition with a corresponding debit or credit to retained profits through other comprehensive income in the period in which theyoccur. Remeasurements are not reclassified to profit or loss in subsequent periods.
Past service costs are recognised in profit or loss at the earlier of: the date of the plan amendment or curtailment; and the date that theGroup recognises restructuring-related costs.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group recognises thefollowing changes in the net defined benefit obligation under administrative expenses in the consolidated statement of profit or lossby function: ?service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routinesettlements;net interest expense or income.
Termination benefits
Termination benefits are recognised at the earlier of when the Group can no longer withdraw the offer of those benefits and when theGroup recognises restructuring costs involving the payment of termination benefits.
An obligation related to a contingency shall be recognised by the Group as a provision when all of the following conditions aresatisfied, except for contingent considerations and contingent liabilities assumed in a business combination not involving entitiesunder common control:
| 1) the obligation is a present obligation of the Group; 2) it is probable that an outflow of economic benefits from the Group will be required to settle the obligation; 3) a reliable estimate can be made of the amount of the obligation. Contingent liabilities are initially measured according to the current best estimate for the expenditure necessary for the performance of relevant present obligations, with comprehensive consideration given to factors such as the risks, uncertainty and time value of money relating to contingencies. The book value of the contingent liabilities should be reviewed at each balance sheet date. If there is objective evidence showing that the book value cannot reflect the present best estimate, the book value should be adjusted according to the best estimate. |
23. Share-based payments
| Within the vesting period or before the prescribed performance conditons are met, the relevant costs or expenses and capital reserves shall be determined and increased based on the best estimate of the number of vested equity instruments on each balance sheet date. For awards that do not ultimately vest because non-market performance and/or service conditions have not been met, no expense is recognised. Where awards include a market or non-vesting condition, the transactions are treated as vesting irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied. Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been modified, if the original terms of the award are met. In addition, an expense is recognised for any modification that increases the total fair value of the share-based payments, or is otherwise beneficial to the employee as measured at the date of modification. Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. This includes any award where non-vesting conditions within the control of either the Group or the employee are not met. However, if a new award is substituted for the cancelled award, and is designated as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award, as described in the previous paragraph. |
24. Revenue
| Revenue from the sale of goods The Group has transferred to the buyer the significant risks and rewards of ownership of the goods; the Group retains neither continuing management involvement to the degree usually associated with ownership nor effective control over the goods sold; and the amount of revenue can be measured reliably. The proceeds earned from sales of goods are determined based on the amount received or receivable as stipulated in the contract or agreement, otherwise the amount is not fair; If the amount received or receivable as stipulated in the contract or agreement is collected in a defer method, it includes the financing elements and should be determined according to the fair value of the amount received or receivable as stipulated in the contract or agreement. Revenue from the rendering of services |
25. Government grants
When the outcome of a transaction involving the rendering of services can be estimated reliably at the balance sheet date, revenueassociated with the transaction is recognized using the percentage of completion method, or otherwise, the revenue is recognized tothe extent of costs incurred that are expected to be recoverable. The outcome of a transaction involving rendering of services can beestimated reliably when all of the following conditions are satisfied: the amount of revenue can be measured reliably; it is probablethat the associated economic benefits will flow into the Group; the stage of completion of the transaction can be measured reliably;and the costs incurred and to be incurred for the transaction can be measured reliably. The Group determines the stage of completionof a transaction involving the rendering of services by using the proportion of services performed to date to the total services to beperformed. The total amount of revenue earned from rendering service are determined based on the amount received or receivable asstipulated in the contract or agreement, otherwise the amount is not fair.
Interest income
It should be measured based on the length of time for which the Group’s cash is used by others and the applicable effective interestrate.
Royalty income
Royalty income is recognized according to the agreed time and method by both parties in related contracts.
Rental income
Rental income from operating leases is recognized by the lesser in the income statement on a straight-line basis over the lease term.The contingent rents shall be recorded in the profits and losses of the period in which they actually arise.
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 grantsare accounted 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 shall be recognized as the government grant related to assets. A government grant which is not specified by the government documents shall be judged based on the basic conditions to obtain the government grant. The one whose basic condition was to purchase and construct the long-term assets shall be recognized as the government grant related to assets. The Group uses the gross method to account for government grants. Government grants related to income to be used as compensation for future expenses or losses shall be recognized as deferred income and shall be charged to the current profit or loss or be used to write down the relevant loss, during the recognition of the relevant cost expenses or losses; or used as compensation for relevant expenses or losses already incurred by enterprises shall be directly charged to the profit and loss account in the current period or used to write down the relevant cost. The government grants related to assets shall be used to write down the book value of the relevant assets or be recognized as deferred |
26. Income taxes
income. The government grants related to assets, recognized as deferred income, shall be charged to the profit and loss reasonablyand systematically in stages over the useful lives of the relevant assets. The government grants measured at nominal amount shall bedirectly charged to the current profit and loss. The remaining book value of the government grants related to assets should becharged to the profit and loss account in the current period when the relative assets sold, transferred, disposed or damaged.
Income tax comprises current and deferred tax. Income tax is recognized as an income or an expense and include in the incomestatement for the current period, except to the extent that the tax arises from a business combination or if it relates to a transaction orevent which is recognized directly in equity.
Current income tax liabilities or assets for the current and prior periods, are measured at the amount expected to be paid (orrecovered) according to the requirements of tax laws.
For temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts, andtemporary differences between the carrying amounts and the tax bases of items, the tax bases of which can be determined for taxpurposes, but which have not been recognized as assets and liabilities, deferred taxes are provided using the liability method.
A deferred tax liability is recognized for all taxable temporary differences, except:
(1) to the extent that the deferred tax liability arises from the initial recognition of goodwill or the initial recognition of an asset
or liability in a transaction which contains both of the following characteristics: the transaction is not a business combinationand at the time of the transaction, it affects neither the accounting profit nor taxable profit or loss.
(2) in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in
jointly-controlled enterprises, where the timing of the reversal of the temporary differences can be controlled and it isprobable that the temporary differences will not reverse in the foreseeable future.
A deferred tax asset is recognized for deductible temporary differences, carry forward of unused tax credits and unused tax losses, tothe extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carryforward of unused tax credits and unused tax losses can be utilized except:
(1) where the deferred tax asset relating to the deductible temporary differences arises from the initial recognition of an asset or
liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accountingprofit nor taxable profit or loss; and
(2) in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, deferred tax assets are only recognized to the extent that it is probable that the temporary differences will reverse inthe foreseeable future and taxable profit will be available against which the temporary differences can be utilized.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when
| At the balance sheet date, the Group reviews the book value of deferred tax assets. If it is probable that sufficient taxable income cannot be generated to use the tax benefits of deferred tax assets, the book value of deferred tax assets should be reduced. When it is probable that sufficient taxable income can be generated, the amount of such reduction should be reversed. When it is probable that sufficient taxable income can be generated, the amount of such reduction should be reversed. At the same time, when the following conditions are met, the deferred income tax assets and deferred income tax liabilities are shown as net after offsetting: they have the legal right to settle current income tax assets and current income tax liabilities in net terms; deferred income tax assets and deferred income tax liabilities are levied on the same taxpayable subject by the same tax collection and administration department. Income tax is related to or related to different tax payers, but in the future, during each important period of the transfer of deferred income tax assets and deferred income tax liabilities, the tax payers involved intend to settle the current income tax assets and current income tax liabilities in net or to acquire assets and pay off debts simultaneously. |
27. Leases
| The Group recording the operating lease as a lessee Lease payments under an operating lease are recognized by a lessee on a straight-line basis over the lease term, and either included in the cost of another related asset or charged to the income statement for the current period. The contingent rents shall be recorded in the profits and losses of the period in which they actually arise. The Group recording the operating lease as a lessor Rental income from operating leases is recognized by the lesser in the income statement on a straight-line basis over the lease term. The contingent rents shall be recorded in the profits and losses of the period in which they actually arise. |
28. Profit distribution
29. Safety fund
The cash dividend of the Group is recognized as liabilities after the approval of general meeting of stockholders.The safety fund extracted by the Group shall be recognized as the cost of the related products or income statement, while berecognized as special reserve. When using safety fund, it shall be distinguished whether it will form fixed assets or not. Theexpenditure shall write down the special reserve; the capital expenditure shall be recognized as fixed assets when meet the expectedconditions for use, and write down the special reserve while recognizing accumulated depreciation with the same amount.
30. Fair value measurement
| A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: Level 1 – based on quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 – based on valuation techniques for which the lowest level input that is significant to the fair value measurement is observable, either directly or indirectly; Level 3 – based on valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. |
31. Significant accounting judgments and estimates
| Judgments In the process of applying the Group’s accounting policies, management has made the following judgments which have significant effect on the financial statements: Operating leases - as lessor The Group has entered into commercial property leases on its investment property portfolio. The Group has determined, based on an evaluation of the terms and conditions of the arrangements, that it retains all the significant risks and rewards of ownership of these properties which are leased out on operating leases. Uncertainty of accounting estimates |
| Deferred tax assets The Group should recognize the deferred income tax assets arising from all the existing unutilized tax deficits and deductible temporary differences to the extent of the amount of the taxable income which it is most likely to obtain and which can be deducted from the deductible temporary differences. Enormous accounting judgments, as well as the tax planning are compulsory for management to estimate the time and amount of prospective taxable profits and thus determine the appropriate amount of the deferred tax assets concerned. Warranty The Group provides warranties on automobile and undertakes to repair or replace items that fail to perform satisfactorily based on certain pre-determined conditions. Factors that influence estimation of related warranty claim include: 1) renewal of laws and regulations; 2) quality promotion of Group products; 3) change of parts and labour cost. In general, the Group records warranty based on selling volume and estimated compensatory unit warranty cost, deduction multi-agreed compensation from suppliers. As at balance sheet day, the Group launches retrospective analysis on warranty carrying amount in consideration of accrual warranty payment during relative warranty period, and recent trends of product renovation and replacement, and further adjustment if necessary. Any increase or decrease in the provision would affect profit or loss in future years. Depreciation and amortization The Group’s management determines the estimated useful lives and residual value of fixed assets and intangible assets. This estimate is based on the historical experience of actual useful lives of fixed assets and intangible assets of similar nature and functions. Management will increase the depreciation and amortization charges where useful lives are less than previously estimated. |
32. Changes in accounting policies and estimates
| In 2017, the Ministry of Finance promulgated revised Accounting Standards for Enterprises No. 22 - Recognition and Measurement of Financial Instruments, Accounting Standards for Enterprises No. 23 - Transfer of Financial Assets, Accounting Standards for Enterprises No. 24 - Hedging and Accounting Standards for Enterprises No. 37 - Presentation of Financial Instruments (abbreviated as "New Financial Workers"). Since January 1, 2019, the Group has carried out accounting treatment in accordance with the newly revised above-mentioned standards. According to the cohesion rules, the information during the comparable period is not adjusted. New Financial Instrument Guidelines The new financial instrument standards have changed the classification and measurement methods of financial assets, and identified three main measurement categories: amortized cost; fair value measurement and its changes are included in other comprehensive income; fair value measurement and its changes are included in current profits and losses. Enterprises need to consider their own business model, as well as the characteristics of contractual cash flow of financial assets for the above classification. Equity instrument investment should be measured at fair value and its changes should be included in current profits and losses. However, when initial confirmation is made, non-tradable equity instrument investment can be irrevocably designated as a financial asset measured at fair value and its changes should be included in other comprehensive income. The new financial instrument standard requires that the measurement of impairment of financial assets be changed from "the model of loss |
| Report item changes The company prepares the semi-annual financial statements for 2019 according to the financial statement format stipulated in Accounting No. 6 and its interpretation, divides the "notes receivable and accounts receivable" in the balance sheet into "notes receivable" and "accounts receivable" presentation, and "notes payable and accounts payable" into "notes payable" and "accounts payable". The Group has retrospectively adjusted the comparative data accordingly. | |||||||
VI. Taxes
1. The major categories of taxes and surcharges
| Categories of taxes and surcharges | Basis of tax | Tax rate |
| Value added tax (“VAT”) | Levy on the taxable sales and rendering of services, deducted the deductible input VAT. | 5%、6%、9%(10%)或13%(16%) Note: The taxable income shall be calculated at the tax rate of 16% or 10% before April 1, 2019. The taxable income shall be calculated at the rate of 13% or 9% from April 1, 2019. |
| Consumption tax | Taxable sales | 1%, 3% or5% |
| City maintenance and construction tax | The turnover taxes paid | 5% or7% |
| Educational surcharge | The turnover taxes paid | 3% |
| Local educational surcharge | The turnover taxes paid | 2% |
| Corporate income tax | Taxable income | 15% or25% |
2. Tax benefits
| In accordance to Circular of the Administrative Measures for the Certification of New and High Technology Enterprises (Guo Ke Fa Huo [2016] No. 32) and Circular of the Working Guidance on the Recognition of Hi-tech Enterprises (Guo Ke Fa Huo [2016] No. 195), the subsidiary of Hefei Changan Automobile Co., Ltd. obtained the certificate of new and high technology enterprise on 21 October 2016 and is subjected to the preferential tax rate of 15% from 2016 to 2018. This year, we have submitted a review of the qualifications of high-tech enterprises. It is expected to be approved in the near future. From 2019 to 2021, we will continue to enjoy the 15% corporate income tax preferential policy for high-tech enterprises. In accordance to Circular of the Administrative Measures for the Certification of New and High Technology Enterprises (Guo Ke Fa Huo [2016] No. 32) and Circular of the Working Guidance on the Recognition of Hi-tech Enterprises (Guo Ke Fa Huo [2016] No. 195), the subsidiaries of Hebei Changan Automobile Co., Ltd. and Hebei Baoding Changan Bus Co., Ltd. obtained the certificate of new and high technology enterprise on 21 July 2017 and on 27 October 2017, and are subjected to the preferential tax rate of 15% from 2017 to 2019. |
VII. Notes to the consolidated financial statements
1. Cash and cash equivalents
In RMB Yuan
| Item | Ending | Beginning |
| Cash | 17,875.99 | 14,374.84 |
| Cash at bank | 10,147,589,137.30 | 9,648,139,239.96 |
| Other cash | 387,677,879.26 | 332,390,911.34 |
| Total | 10,535,284,892.55 | 9,980,544,526.14 |
As at 30 June 2019, the book value of restricted cash and cash equivalents is RMB 387,677,879.26, which was mainly restricted forthe issuance of acceptance bill.As at 30 June 2019, the cash at bank oversea is equivalent to RMB 237,146,846.03.
2. Transactional financial assets (Applicable from January 1, 2019)
| Item | Ending |
| Financial assets measured at fair value through profit or loss | 1,570,658,462.58 |
| Total | 1,570,658,462.58 |
3. Notes receivable
(1) Classification of notes receivable
In RMB Yuan
| Type | Ending | Beginning |
| Commercial acceptance bill | 2,243,353,649.97 | 6,687,321,419.20 |
| Bank acceptance bill | 13,403,314,490.76 | 13,874,304,386.04 |
| Total | 15,646,668,140.73 | 20,561,625,805.24 |
(2) The notes receivable pledged as follows:
| Type | 30 June 2019 | 31 December 2018 |
| Commercial acceptance bill | 266,141,440.00 | 384,462,570.00 |
| Bank acceptance bill | 16,562,835.96 | 85,160,000.00 |
| Total | 282,704,275.96 | 469,622,570.00 |
The bank acceptance bill of the above amount has been pledged for the notereceivable on 30 June 2019 and 31 December 2018.
(3) Endorsed or discounted but unexpired notes receivable as at the end of reporting period are as follows:
In RMB Yuan
| Type | Ending | Beginning | ||
| Derecognition | Un-derecognition | Derecognition | Un-derecognition | |
| Commercial acceptance bill | 153,040,000.00 | - | 147,853,740.00 | - |
| Bank acceptance bill | 3,839,509,514.21 | - | 1,498,687,956.97 | - |
| Total | 3,992,549,514.21 | - | 1,646,541,696.97 | - |
4. Accounts receivable
(1) Disclosure of accounts receivable
In RMB Yuan
| Item | 2019 | |||
| Balance | Provision | |||
| Amount | % | Amount | % | |
| Single item assessment credit expected credit loss provision for bad debts | 89,833,683.79 | 4.26 | 62,917,348.77 | 70.04 |
| Assess bad debt provision for expected credit expected loss according to credit risk characteristics combination | 2,020,132,181.21 | 95.74 | 35,077,754.37 | 1.74 |
| Total | 2,109,965,865.00 | 100.00 | 97,995,103.14 | 4.64 |
| Item | 2018 | |||
| Balance | Provision | |||
| Amount | % | Amount | % | |
| Individually significant items and analyzed individually for provision | 858,892,602.36 | 57.26 | 44,226,423.35 | 5.15 |
| Accounts receivable analyzed as groups for provision | ||||
| Group 1. Accounts receivable analyzed for provision according to aging analysis | 427,323,980.23 | 28.48 | 29,225,702.47 | 6.84 |
| Group 2. Accounts receivable from related parties | 185,492,616.70 | 12.37 | - | - |
| Group subtotal | 612,816,596.93 | 40.85 | 29,225,702.47 | 4.77 |
| Individually insignificant items but analyzed individually for provision | 28,324,721.11 | 1.89 | 17,162,194.08 | 60.59 |
| Total | 1,500,033,920.40 | 100 | 90,614,319.90 | 6.04 |
On June 30, 2019, the accounts receivable for single provision for bad debts were as follows:
In RMB Yuan
| Serial No. | Balance | Provision | Expected credit loss rate | Reason |
| 1 | 39,138,955.35 | 12,236,785.13 | 31.26 | Dealers caused by foreign exchange control are not well paid |
| 2 | 24,025,073.81 | 24,025,073.81 | 100.00 | The company’s legal affairs have been prosecuted and the case is under way. |
| 3 | 6,119,941.69 | 6,119,941.69 | 100.00 | Customer has gone bankrupt. |
| Others | 20,549,712.94 | 20,535,548.14 | 99.93 | Customer bankruptcy, etc. |
| Total | 89,833,683.79 | 62,917,348.77 | 70.04 |
The Group's expected credit loss portfolio based on credit risk assessment is as follows:
In RMB Yuan
| Aging | Estimated book balance for default | Expected credit loss rate | Expected credit loss for the entire life |
| Within 1 year | 1,883,415,093.97 | 0.09 | 1,695,169.14 |
| 1 to 2 years | 50,443,014.41 | 2.92 | 1,470,491.10 |
| 2 to 3 years | 30,065,004.51 | 21.91 | 6,585,758.27 |
| 3 to 4 years | 24,837,623.29 | 6.97 | 1,731,489.45 |
| 4 to 5 years | 3,616,303.48 | 46.09 | 1,666,832.90 |
| Over 5 years | 27,755,141.55 | 79.01 | 21,928,013.51 |
| Total | 2,020,132,181.21 | 1.74 | 35,077,754.37 |
(2) On June 30, 2019, the top five accounts receivable totaled RMB 1,028,011,275.44, accounting for 48.73% of the total
accounts receivable (2018: RMB 564,688,036.12, accounting for 37.65% of the total accounts receivable).
(3) Provision for bad debts withdrawn, recovered or reversed in the current period
| Category | Opening Balance | Current change amount | Ending Balance | ||
| Accrual | Turn back | Write off | |||
| Accounts receivable bad debt provision | 90,614,319.90 | 7,447,883.24 | 67,100.00 | 97,995,103.14 | |
| Total | 90,614,319.90 | 7,447,883.24 | 67,100.00 | 97,995,103.14 | |
(4) From January to June 2019, the group has no accounts receivable as a termination of financial assets transfer (2018:
none).
5. Prepayments
(1) An aged analysis of the prepayments is as follows:
In RMB Yuan
| Aging | Ending | Beginning | ||
| Amount | % | Amount | % | |
| Within 1 year | 828,207,088.93 | 79.84 | 781,698,728.24 | 90.25 |
| 1 to 2 years | 207,186,837.75 | 19.97 | 77,209,604.94 | 8.91 |
| 2 to 3 years | 30,535.49 | - | 5,320,836.56 | 0.61 |
| Over 3 years | 2,020,579.77 | 0.19 | 2,020,579.77 | 0.23 |
| Total | 1,037,445,041.94 | 100.00 | 866,249,749.51 | 100.00 |
As at 30 June 2019, the total amount of the top five prepayments was RMB 818,823,877.64, accounting for 78.93% of the totalamount of prepayments (2017: RMB 692,025,641.94, accounting for 79.89%).
6. Other receivables
In RMB Yuan
| Item | Ending | Beginning |
| Interest receivable | 4,581,253.52 | 17,432,805.54 |
| Dividend receivable | 74,897,909.69 | |
| Other receivables | 3,429,425,829.02 | 3,233,020,118.16 |
| 合计 | 3,508,904,992.23 | 3,250,452,923.70 |
Interest receivable
In RMB Yuan
| Item | Ending | Beginning |
| Fixed deposits | 4,581,253.52 | 17,432,805.54 |
Dividend receivable
| Item | Beginning | Increased in this period | Reduced in this period | Ending | Reason for not recovering | Whether the relevant amount is impaired |
| Dividends receivable within one year | - | 74,897,909.69 | - | 74,897,909.69 | No | |
| Total | 74,897,909.69 | 74,897,909.69 | -- | -- |
Other receivables
(1) The changes in bad debt provision for other receivables based on 12-month expected credit losses and the entire lifetimeexpected credit losses are as follows (2019 only):
In RMB Yuan
| Bad debt preparation | first stage | second stage | third stage | Total |
| Expected credit losses in the next 12 months | Expected credit loss for the entire duration (single assessment) | Expected credit loss for the entire duration (combination assessment) | ||
| Balance on January 1, 2019 | 290,391.47 | 6,635,181.42 | 922,590.69 | 7,848,163.58 |
| The balance of January 1, 2019 is in this issue. | - | - | - | - |
| -- Transfer to the second stage | -29,326.52 | 29,326.52 | - | |
| -- Transfer to the third stage | - | |||
| - Turn back to the second stage | - | |||
| - Turn back to the first stage | - | |||
| Current accrual | 2,949,736.83 | 17,325.21 | 2,967,062.04 | |
| Return this issue | 818,111.62 | 818,111.62 | ||
| Resale in the current period | - | |||
| Write-off of this period | - | |||
| Other changes | - | |||
| Total | 261,064.95 | 9,584,918.25 | 151,130.80 | 9,997,114.00 |
The changes in the book balance of other receivables are as follows:
| Book balance | first stage | second stage | third stage | Total |
| Expected credit losses in the next 12 months | Expected credit loss for the entire duration (single | Expected credit loss for the entire duration |
| assessment) | (combination assessment) | |||
| Balance on January 1, 2019 | 3,224,559,978.75 | 6,635,181.42 | 5,738,281.45 | 3,236,933,441.62 |
| The balance of January 1, 2019 is in this issue. | - | - | - | - |
| -- Transfer to the second stage | -586,530.34 | 586,530.34 | - | |
| -- Transfer to the third stage | - | |||
| - Turn back to the second stage | - | |||
| - Turn back to the first stage | - | |||
| New in this issue | 195,035,459.71 | 2,949,736.83 | 13,121,060.07 | 211,106,256.61 |
| Termination confirmation | 8,616,755.21 | 8,616,755.21 | ||
| Write-off of this period | - | |||
| Other changes | - | |||
| Total | 3,419,008,908.12 | 9,584,918.25 | 10,829,116.65 | 3,439,422,943.02 |
Other receivables are indicated by type (2018 only):
In RMB Yuan
| Type | Beginning | |||
| Book balance | Bad debt preparation | |||
| Amount | % | Amount | % | |
| Other receivables with significant single amount and single provision for bad debts | 2,780,889,774.62 | 85.80 | - | |
| Other receivables with provision for bad debts by combination | ||||
| Combination 1. Other receivables with provision for bad debts by aging analysis | 323,279,832.19 | 9.98 | 1,212,982.16 | 0.38 |
| Combination 2. Other receivables with provision for bad debts by related parties | 126,128,653.39 | 3.89 | - | |
| Combined subtotal | 449,408,485.58 | 13.87 | 1,212,982.16 | 0.27 |
| Other receivables that are not significant in individual amount but are individually provisioned for bad debts | 10,570,021.54 | 0.33 | 6,635,181.42 | 62.77 |
| Total | 3,240,868,281.74 | 100.00 | 7,848,163.58 | 0.24 |
(2) From January to June 2019, provision for bad debts was RMB 2,967,062.04 (2018: RMB 576,587.36 was accrued, and baddebt provision increased by RMB 4,348,209.00 due to the acquisition of Changan Suzuki), and the provision for bad debtswas RMB 818,111.62 (2018 : RMB 1,176,673.66).
(3) The other accounts receivable actually written off from January to June 2019 were RMB 0 (2018: RMB 56,554.80).
(4) From January to June 2019, the group has no other receivables as a termination of financial assets transfer (2018: none).
(5) Top five debtors of other receivables are as follows:
In RMB Yuan
| Debtors | Ending balance | Years | Proportion of total other receivables (%) |
| First | 1,865,146,017.60 | Within 4 years | 54.23 |
| Second | 702,085,026.74 | Within 4 years | 20.41 |
| Third | 315,259,435.40 | Within 3 years | 9.17 |
| Fourth | 124,312,677.99 | Within 1 year | 3.61 |
| Fifth | 91,385,460.00 | Within 2 years | 2.66 |
| Total | 3,098,188,617.73 | - | 90.08 |
7. Inventory
(1) Classification of inventory
In RMB Yuan
| Item | Ending | Beginning | ||||
| Balance | Provision | Net value | Balance | Provision | Net value | |
| Raw materials | 1,389,922,376.25 | 203,070,981.68 | 1,186,851,394.57 | 2,029,706,541.33 | 181,897,353.27 | 1,847,809,188.06 |
| Work in transit | 103,745,221.41 | - | 103,745,221.41 | 318,420,244.84 | - | 318,420,244.84 |
| Work in progress | 832,526,220.55 | 27,231,163.66 | 805,295,056.89 | 1,413,892,484.38 | 35,473,526.73 | 1,378,418,957.65 |
| Commodity stock | 3,737,132,783.85 | 167,615,041.67 | 3,569,517,742.18 | 1,292,509,122.51 | 76,519,657.33 | 1,215,989,465.18 |
| Revolving materials | - | - | - | 110,310,364.86 | - | 110,310,364.86 |
| Spare parts | 39,966,722.21 | - | 39,966,722.21 | 46,472,236.60 | - | 46,472,236.60 |
| Total | 6,103,293,324.27 | 397,917,187.01 | 5,705,376,137.26 | 5,211,310,994.52 | 293,890,537.33 | 4,917,420,457.19 |
(2) Provision for inventory
In RMB Yuan
| Type | Beginning | Provision | Deduction | Ending | |
| Reversal | Write-off | ||||
| Raw materials | 181,897,353.27 | 45,654,482.92 | 20,374,619.52 | 4,106,234.99 | 203,070,981.68 |
| Work in progress | 35,473,526.73 | 1,330,008.90 | - | 9,572,371.97 | 27,231,163.66 |
| Commodity stock | 76,519,657.33 | 126,266,125.80 | 199,460.04 | 34,971,281.42 | 167,615,041.67 |
| Total | 293,890,537.33 | 173,250,617.62 | 20,574,079.56 | 48,649,888.38 | 397,917,187.01 |
8. Other current assets
In RMB Yuan
| Item | Ending | Beginning |
| Accrual input tax | 2,064,442,729.98 | 2,227,386,063.11 |
| Others | 322,190,601.41 | 179,290.12 |
| Total | 2,386,633,331.39 | 2,227,565,353.23 |
9. Available-for-sale financial assets (2018 only)
In RMB Yuan
| Item | Ending | Beginning |
| Available-for-sale equity securites | ||
| Measured at fair value | - | 1,530,321,311.31 |
| Measured by cost | - | 427,552,000.00 |
| Total | - | 1,957,873,311.31 |
In 2017, the Ministry of Finance successively revised and issued the "Accounting Standards for Business Enterprises No. 37 -Presentation of Financial Instruments", "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement ofFinancial Instruments", and Accounting Standards for Business Enterprises No. 23 - Financial Assets Relevant guidelines forfinancial instruments such as Transfer. According to regulations, the company has implemented the new financial instrumentsstandard since January 1, 2019, and reclassified available-for-sale financial assets into trading financial assets and other equityinstruments.
10. Other equity instrument investments (applicable from January 1, 2019)
| Invested unit | Opening balance | Initial impairment provision | Increased this year | Reduced this year | Ending balance | Final impairment provision | % |
| Weapon Equipment Group Finance Co., Ltd. | 157,020,800.00 | 157,020,800.00 | 3.83 | ||||
| Sichuan Glass Co., Ltd | 1,809,274.00 | 1,809,274.00 | 1,809,274.00 | 0.60 | |||
| Zhongfa Lian Investment Co., Ltd. | 21,000,000.00 | 21,000,000.00 | 10.37 | ||||
| Chongqing Ante Import and Export Trade Co., Ltd. | 3,000,000.00 | 3,000,000.00 | 10.00 | ||||
| Guoqi (Beijing) Automotive Lightweight Technology Research Institute Co., Ltd. | 3,000,000.00 | 3,000,000.00 | 6.90 | ||||
| Guolian Automotive Power Battery Research Luyuan Co., Ltd. | 40,000,000.00 | 40,000,000.00 | 7.41 | ||||
| Zhonghui Futong Financial | 30,552,000.00 | 30,552,000.00 | 5.00 |
| Leasing (Shenzhen) Co., Ltd. | |||||||
| Keliyuan Hybrid Power Technology Co., Ltd. | 200,000,000.00 | 200,000,000.00 | 9.24 | ||||
| Guoqi (Beijing) Intelligent Network Association Automotive Research Institute Co., Ltd. | 50,000,000.00 | 50,000,000.00 | 5.56 | ||||
| Total | - | - | 506,382,074.00 | - | 506,382,074.00 | 1,809,274.00 |
11. Long-term equity investment
In RMB Yuan
| Investee | Accounting method | Initial amount | Beginning | (deduction) | Ending | Shareholding percentage (%) | Voting percentage (%) | Explanation for the difference between shareholding percentage and voting percentage | Impairment | Current provision | Current cash dividends |
| 1.Joint ventures | |||||||||||
| Jiangling Holdings Co., Ltd. | Equity | 1,008,511,522.00 | 2,493,754,915.53 | -236,679,161.41 | 2,257,075,754.12 | 50.00% | 50.00% | - | - | - | - |
| Changan Ford Motor Co., Ltd. | Equity | 975,232,926.29 | 3,709,784,507.11 | -388,312,379.14 | 3,321,472,127.97 | 50.00% | 50.00% | - | - | - | - |
| Changan Mazda Automobile Co., Ltd. | Equity | 1,097,839,635.00 | 2,472,626,663.41 | 431,236,189.99 | 2,903,862,853.40 | 50.00% | 50.00% | - | - | - | - |
| Changan Mazda Engine Co., Ltd. | Equity | 786,734,634.10 | 827,803,757.96 | 22,279,051.96 | 850,082,809.92 | 50.00% | 50.00% | - | - | - | - |
| Changan Peugeot Citroen Automobile Co., Ltd. | Equity | 3,807,841,700.00 | 1,456,519,068.74 | -37,577,002.31 | 1,418,942,066.43 | 50.00% | 50.00% | - | - | - | - |
| Changan Weilai New Energy Automobile Technology Co., Ltd. | Equity | 49,000,000.00 | 44,065,513.91 | -16,493,522.92 | 27,571,990.99 | 50.00% | 50.00% | - | - | - | - |
| 2.Associates | |||||||||||
| Chongqing Changan Crossing Vehicle Co., Ltd. | Equity | 61,800,885.00 | 116,588,234.97 | 39,038,877.69 | 155,627,112.66 | 34.30% | 34.30% | - | - | - | - |
| Chongqing Changan Cross Vehicle Marketing Co., Ltd. | Equity | 1.00 | - | 34.30% | 34.30% | - | - | - | - | ||
| Beijing Fangan Xinyue Taxi Co., Ltd. | Equity | 6,000,000.00 | - | 20.70% | 20.70% | - | - | - | - | ||
| Changan Automobile Finance Co., | Equity | 1,805,000,000.00 | 2,030,617,157.41 | 46,724,451.22 | 2,077,341,608.63 | 28.66% | 28.66% | - | - | - | - |
| Ltd. | |||||||||||
| Hainan Anxinxing Information Technology Co., Ltd. | Equity | 6,000,000.00 | 5,536,555.21 | -775,195.24 | 4,761,359.97 | 30.00% | 30.00% | - | - | - | - |
| Nanjing Chelai Travel Technology Co., Ltd. | Equity | 2,000,000.00 | 1,813,616.14 | -238,955.00 | 1,574,661.14 | 10.00% | 10.00% | - | - | - | - |
| Hunan Guoxin Semiconductor Technology Co., Ltd. | Equity | 25,000,000.00 | 25,000,000.00 | -145,569.13 | 24,854,430.87 | 25.00% | 25.00% | - | - | - | - |
| Anhe (Chongqing) Equity Investment Fund Management Co., Ltd. | Equity | 2,500,000.00 | 2,500,000.00 | -166,798.94 | 2,333,201.06 | 25.00% | 25.00% | - | - | - | - |
| Hangzhou Chelizi Intelligent Technology Co., Ltd. | Equity | 2,243,750.00 | 2,703,275.87 | 852,500.11 | 3,555,775.98 | 20.00% | 20.00% | - | - | - | - |
| Nanjing Leading Equity Investment Partnership | Equity | 858,267,717.00 | 846,264,828.30 | 846,264,828.30 | 16.39% | 16.39% | - | - | - | - | |
| Nanjing Lingxing Equity Investment Management Co., Ltd. | Equity | 1,500,000.00 | 1,500,000.00 | 1,500,000.00 | 15.00% | 15.00% | |||||
| other | Equity | 98,000,000.00 | 85,856,852.57 | -30,974,217.80 | 54,882,634.77 | 49.00% | 49.00% | ||||
| Total | -- | 10,593,472,770.39 | 13,275,170,118.83 | 676,533,097.38 | 13,951,703,216.21 | -- | -- | -- | -- | -- |
12. Investment property
According to the cost of the investment real estate
In RMB Yuan
| Item | Beginning | Addition | Deduction | Ending |
| I. Original cost | 10,050,100.00 | 10,050,100.00 | ||
| Buildings | 10,050,100.00 | 10,050,100.00 | ||
| II. Accumulated depreciationand amortization | 2,720,538.72 | 113,355.78 | 2,833,894.50 | |
| Buildings | 2,720,538.72 | 113,355.78 | 2,833,894.50 | |
| III. Net Value | 7,329,561.28 | -113,355.78 | 7,216,205.50 | |
| Buildings | 7,329,561.28 | -113,355.78 | 7,216,205.50 | |
| IV. Impairment Provision | 7,329,561.28 | -113,355.78 | 7,216,205.50 | |
| Buildings | 7,329,561.28 | -113,355.78 | 7,216,205.50 |
13. Fixed assets
| Beginning | Ending | |
| Fixed assets | 23,096,697,122.71 | 22,161,054,058.31 |
| Fixed assets cleanup | ||
| total | 23,096,697,122.71 | 22,161,054,058.31 |
Fixed assets
In RMB Yuan
| Item | Beginning | Addition | Deduction | Ending |
| I. Original cost | 40,674,248,814.18 | 2,346,338,248.66 | 8,490,208.62 | 43,012,096,854.22 |
| Buildings | 9,889,579,515.34 | 88,520,701.41 | 2,725,898.44 | 9,975,374,318.31 |
| Machinery | 21,927,380,270.82 | 965,242,220.50 | 689,154.17 | 22,891,933,337.15 |
| Vehicles | 1,213,223,699.56 | 513,755,057.84 | 487,730.25 | 1,726,491,027.15 |
| Other Equipments | 7,644,065,328.46 | 778,820,268.91 | 4,587,425.76 | 8,418,298,171.61 |
| II. Accumulated depreciation | 17,352,600,109.49 | 1,412,812,879.82 | 5,947,502.87 | 18,759,465,486.44 |
| Buildings | 2,147,206,657.32 | 153,514,251.20 | 808,226.36 | 2,299,912,682.16 |
| Machinery | 11,026,127,942.23 | 711,495,302.76 | 645,979.80 | 11,736,977,265.19 |
| Vehicles | 405,520,581.39 | 278,918,455.42 | 189,329.30 | 684,249,707.51 |
| Other Equipments | 3,773,744,928.55 | 268,884,870.44 | 4,303,967.41 | 4,038,325,831.58 |
| III. Net Value | 23,321,648,704.69 | 933,525,368.84 | 2,542,705.75 | 24,252,631,367.78 |
| Buildings | 7,742,372,858.02 | -64,993,549.79 | 1,917,672.08 | 7,675,461,636.15 |
| Machinery | 10,901,252,328.59 | 253,746,917.74 | 43,174.37 | 11,154,956,071.96 |
| Vehicles | 807,703,118.17 | 234,836,602.42 | 298,400.95 | 1,042,241,319.64 |
| Other Equipments | 3,870,320,399.91 | 509,935,398.47 | 283,458.35 | 4,379,972,340.03 |
| IV.Impairment Provision | 1,160,594,646.38 | - | 4,660,401.31 | 1,155,934,245.07 |
| Buildings | 82,452,249.51 | - | 82,452,249.51 | |
| Machinery | 895,917,567.96 | - | 265,375.48 | 895,652,192.48 |
| Vehicles | 36,271,972.06 | - | 36,271,972.06 | |
| Other Equipments | 145,952,856.85 | - | 4,395,025.83 | 141,557,831.02 |
| V. Book Value | 22,161,054,058.31 | 933,525,368.84 | -2,117,695.56 | 23,096,697,122.71 |
| Buildings | 7,659,920,608.51 | -64,993,549.79 | 1,917,672.08 | 7,593,009,386.64 |
| Machinery | 10,005,334,760.63 | 253,746,917.74 | -222,201.11 | 10,259,303,879.48 |
| Vehicles | 771,431,146.11 | 234,836,602.42 | 298,400.95 | 1,005,969,347.58 |
| Other Equipments | 3,724,367,543.06 | 509,935,398.47 | -4,111,567.48 | 4,238,414,509.01 |
The depreciation during the reporting period is RMB 1,412,812,879.82. During the period the construction in progress amounting to RMB2,332,323,509.58 is transferred to the fixed asset.
14. Construction in progress
(1) Details of construction in progress
In RMB Yuan
| Item | Closing balance | Openning balance | ||||
| Balance | Provision | Book value | Balance | Provision | Book value | |
| Mini-bus production equipment | 218,182,423.55 | 218,182,423.55 | 815,889,070.57 | - | 815,889,070.57 | |
| Yuzui motor city project | 5,981,953.14 | 5,981,953.14 | 51,962,876.25 | - | 51,962,876.25 | |
| Car production equipment | 243,224,594.25 | 243,224,594.25 | 181,137,313.03 | - | 181,137,313.03 | |
| Engine plant | 1,909,833,300.91 | 1,909,833,300.91 | 1,458,726,257.58 | - | 1,458,726,257.58 | |
| Vehicle research institution | 950,213,737.56 | 950,213,737.56 | 854,570,879.08 | - | 854,570,879.08 | |
| Vehicle moulds | 343,625,680.95 | 343,625,680.95 | 420,284,566.37 | - | 420,284,566.37 | |
| Light vehicle technical transformation project of Baoding Changan bus | 60,153,349.31 | 60,153,349.31 | 83,207,252.58 | - | 83,207,252.58 | |
| Plant for vehicle test project | 920,000.00 | 920,000.00 | 6,643,182.68 | - | 6,643,182.68 | |
| Beijing vehicle construction project | 118,804,482.72 | 118,804,482.72 | 98,585,664.59 | - | 98,585,664.59 | |
| Engine Base of Nanjing | - | - | 499,150.94 | - | 499,150.94 | |
| Yuzui Refitting factory | 12,276,085.40 | 12,276,085.40 | 12,276,085.40 | - | 12,276,085.40 | |
| Car production Project Of Hefei Changan | 934,063,696.44 | 934,063,696.44 | 872,832,482.14 | - | 872,832,482.14 | |
| Others | 430,505,435.17 | 49,315,394.88 | 381,190,040.29 | 576,544,644.42 | 49,315,394.88 | 527,229,249.54 |
| Total | 5,227,784,739.40 | 49,315,394.88 | 5,178,469,344.52 | 5,433,159,425.63 | 49,315,394.88 | 5,383,844,030.75 |
(2) Movement of major construction in progress projects
In RMB Yuan
| Item | Beginning | Addition | Transferred to fixed assets | Deduction | Ending |
| Mini-bus production equipment | 815,889,070.57 | 531,757,827.46 | 1,129,464,474.48 | - | 218,182,423.55 |
| Yuzui motor city project | 51,962,876.25 | 54,169,722.66 | 100,150,645.77 | - | 5,981,953.14 |
| Car production equipment | 181,137,313.03 | 72,616,133.72 | 10,528,852.50 | - | 243,224,594.25 |
| Engine plant | 1,458,726,257.58 | 609,155,139.77 | 158,048,096.44 | - | 1,909,833,300.91 |
| Vehicle research institution | 854,570,879.08 | 165,954,927.63 | 70,280,881.12 | 31,188.03 | 950,213,737.56 |
| Vehicle moulds | 420,284,566.37 | 52,636,717.80 | 129,295,603.22 | - | 343,625,680.95 |
| Light vehicle technical transformation project of Baoding Changan bus | 83,207,252.58 | 8,277,205.78 | 31,331,109.05 | 60,153,349.31 | |
| Plant for vehicle test project | 6,643,182.68 | 1,429,248.10 | 7,131,898.78 | 20,532.00 | 920,000.00 |
| Beijing vehicle construction project | 98,585,664.59 | 63,099,651.54 | 42,880,833.41 | 118,804,482.72 | |
| Engine Base of Nanjing | 499,150.94 | 41,509.43 | 540,660.37 | ||
| Yuzui Refitting factory | 12,276,085.40 | 12,276,085.40 | |||
| Car production Project Of Hefei Changan | 872,832,482.14 | 188,092,832.10 | 126,861,617.80 | 934,063,696.44 | |
| Others | 527,229,249.54 | 379,771,109.56 | 525,808,836.64 | 1,482.17 | 381,190,040.29 |
| Total | 5,383,844,030.75 | 2,127,002,025.55 | 2,332,323,509.58 | 53,202.20 | 5,178,469,344.52 |
(3) Provision for impairment of construction in progress
On June 30, 2019, the balance of impairment provision for construction in progress was 49,315,394.88 yuan. There was no accruedor resold amount in the current year. (In 2018, Changan Suzuki was acquired, and the provision for impairment of construction inprogress increased by RMB 49,315,394.88).
15. Intangible assets
Details of intangible assets
In RMB Yuan
| Item | Beginning | Addition | Deduction | Ending |
| I. Original cost | 9,226,222,538.41 | 624,420,788.46 | - | 9,850,643,326.87 |
| Land use rights | 2,753,082,390.28 | - | - | 2,753,082,390.28 |
| Software use rights | 632,418,610.26 | 7,717,112.61 | - | 640,135,722.87 |
| Trademark use rights | 211,784,400.00 | - | 211,784,400.00 | |
| Non-patent technology | 5,628,937,137.87 | 616,703,675.85 | - | 6,245,640,813.72 |
| II. Accumulated amortization | 3,978,633,979.12 | 485,234,277.39 | - | 4,463,868,256.51 |
| Land use rights | 403,454,284.03 | 30,222,421.91 | - | 433,676,705.94 |
| Software use rights | 510,503,061.87 | 20,642,786.11 | - | 531,145,847.98 |
| Trademark use rights | 170,953,466.62 | 8,763,934.35 | - | 179,717,400.97 |
| Non-patent technology | 2,893,723,166.60 | 425,605,135.02 | - | 3,319,328,301.62 |
| III. Net value | 5,247,588,559.29 | 139,186,511.07 | - | 5,386,775,070.36 |
| Land use rights | 2,349,628,106.25 | -30,222,421.91 | - | 2,319,405,684.34 |
| Software use rights | 121,915,548.39 | -12,925,673.50 | - | 108,989,874.89 |
| Trademark use rights | 40,830,933.38 | -8,763,934.35 | - | 32,066,999.03 |
| Non-patent technology | 2,735,213,971.27 | 191,098,540.83 | - | 2,926,312,512.10 |
| IV. Impairment provision | 229,345,006.49 | - | 229,345,006.49 | |
| Land use rights | 2,298,118.36 | 2,298,118.36 | ||
| Software use rights | 21,319,804.81 | - | - | 21,319,804.81 |
| Non-patent technology | 205,727,083.32 | - | 205,727,083.32 | |
| V. Book value | 5,018,243,552.80 | 139,186,511.07 | 5,157,430,063.87 | |
| Land use rights | 2,347,329,987.89 | -30,222,421.91 | - | 2,317,107,565.98 |
| Software use rights | 100,595,743.58 | -12,925,673.50 | - | 87,670,070.08 |
| Trademark use rights | 40,830,933.38 | -8,763,934.35 | - | 32,066,999.03 |
| Non-patent technology | 2,529,486,887.95 | 191,098,540.83 | 2,720,585,428.78 |
As at 30 June 2019, the intangible assets from internal research and development account for 52.75% of totalintangible assets.
16. Development expenditure
In RMB Yuan
| Item | Beginning | Addition | Deduction |
| Charged to income Statement of the Current period | Charged to income Statement of the Current period | Ending | |||
| Automobile Development | 789,597,615.60 | 663,276,329.42 | 76,047,969.60 | 616,643,965.02 | 760,182,010.40 |
| Total | 789,597,615.60 | 663,276,329.42 | 76,047,969.60 | 616,643,965.02 | 760,182,010.40 |
17. Goodwill
In RMB Yuan
| Investee | Beginning | Addition | Deduction | Ending | Impairment provision |
| Hebei Changan Automobile Co., Ltd | 9,804,394.00 | 9,804,394.00 | |||
| Nanjing Changan Automobile Co., Ltd | 73,465,335.00 | ||||
| Total | 9,804,394.00 | 9,804,394.00 | 73,465,335.00 |
18. Long-term deferred expenses
In RMB Yuan
| Item | Beginning | Addition | Amortization | Other deduction | Ending |
| Long-term deferred expenses | 17,104,601.67 | 1,913,020.99 | 2,285,013.79 | 494,853.46 | 16,237,755.41 |
| Total | 17,104,601.67 | 1,913,020.99 | 2,285,013.79 | 494,853.46 | 16,237,755.41 |
19. Deferred tax assets and liabilities
Recognized deferred tax assets and liabilities:
In RMB Yuan
| Item | Ending | Beginning |
| Deferred tax assets: | ||
| Provision for the impairment of assets | 195,028,800.31 | 178,931,389.28 |
| Accrued expenses and contingent liabilities | 759,225,831.00 | 863,293,314.33 |
| Unpaid tech development expense and advertisement expense | 101,258,288.44 | 71,636,763.88 |
| Deferred income | 472,108,267.04 | 467,502,076.45 |
| Unpaid salary and bonus and others | 36,106,817.82 | 74,190,894.95 |
| Subtotal | 1,563,728,004.61 | 1,655,554,438.89 |
| Deferred tax liabilities: | ||
| Changes in fair value of available-for-sale financial | 76,116,073.54 | |
| assets | ||
| Changes in fair value of trading financial assets | 82,166,646.24 | |
| Fair value adjustment of business combination not under the same control | 46,310,587.95 | 59115097.05 |
| Subtotal | 128,477,234.19 | 135,231,170.59 |
20. Provision for the impairment of assets
In RMB Yuan
| Item | Beginning | Addition | Deduction | Ending | |||
| Current accrual | Other increase | Reversal | Write-off | Other reduction | |||
| I. Bad debt provision | 98,462,483.48 | 10,414,945.28 | 885,211.62 | 107,992,217.14 | |||
| II. Provision for obsolete inventory | 293,890,537.33 | 173,250,617.62 | 20,574,079.56 | 48,649,888.38 | 397,917,187.01 | ||
| III. Provision for the impairment of fixed assets | 1,160,594,646.38 | 4,660,401.31 | 1,155,934,245.07 | ||||
| IV. Provision for the impairment of intangible assets | 229,345,006.49 | 229,345,006.49 | |||||
| V. Provision for the impairment of goodwill | 73,465,335.00 | 73,465,335.00 | |||||
| VI. Provision for the impairment of available-for-sale financial assets | 49,315,394.88 | 49,315,394.88 | |||||
| VII. Provision for impairment of available-for-sale financial assets | 28,929,274.00 | 28,929,274.00 | |||||
| VIII. Other equity instruments | 1,809,274.00 | 1,809,274.00 | |||||
| investment impairment provision | |||||||
| Total | 1,934,002,677.56 | 183,665,562.90 | 1,809,274.00 | 21,459,291.18 | 53,310,289.69 | 28,929,274.00 | 2,015,778,659.59 |
21. Short-term loans
In RMB Yuan
| Item | Ending | Beginning |
| Pledge loans | 60,000,000.00 | 40,000,000.00 |
| Guaranteed loans | - | |
| Credit loans | 150,000,000.00 | 150,000,000.00 |
| Total | 210,000,000.00 | 190,000,000.00 |
22. Notes payable
In RMB Yuan
| Item | Ending | Beginning |
| Commercial acceptance bill | 2,946,482,019.96 | |
| Bank acceptance bill | 13,769,475,508.94 | 11,861,380,242.43 |
| Total | 13,769,475,508.94 | 14,807,862,262.39 |
23. Accounts payable
In RMB Yuan
| Item | Ending | Beginning |
| Accounts payable | 14,276,660,036.85 | 13,916,201,276.95 |
| total | 14,276,660,036.85 | 13,916,201,276.95 |
24. Advances from customers
In RMB Yuan
| Item | Ending | Beginning |
| Advances from customers | 2,956,683,361.56 | 1,556,482,278.92 |
| total | 2,956,683,361.56 | 1,556,482,278.92 |
25. Payroll payable
30 June 2019
In RMB Yuan
| Item | Beginning | Addition | Deduction | Ending |
| Short term salary benefits | 1,271,461,842.35 | 2,009,984,286.64 | 2,666,995,493.94 | 614,450,635.05 |
| Defined contribution plans | 84,410,435.21 | 246,314,325.96 | 244,459,768.83 | 86,264,992.34 |
| Early retirement benefits | 7,123,000.00 | 11,946,648.33 | 1,152,264.23 | 17,917,384.10 |
| Total | 1,362,995,277.56 | 2,268,245,260.93 | 2,912,607,527.00 | 718,633,011.49 |
| Short term salary benefits as follows: | |||||||
| In RMB Yuan | |||||||
| Item | Beginning | Addition | Deduction | Ending | |||
| Salary, bonus, allowance and subsidy | 1,077,447,577.69 | 1,484,593,041.13 | 2,195,561,155.16 | 366,479,463.66 | |||
| Employee benefit | 45,611,590.61 | 78,079,279.84 | 75,656,837.51 | 48,034,032.94 | |||
| Social insurance | 3,379,369.66 | 236,358,091.76 | 234,957,718.01 | 4,779,743.41 | |||
| Housing accumulation fund | 9,422,677.58 | 146,465,413.34 | 146,605,427.98 | 9,282,662.94 | |||
| education fund | 135,600,626.81 | 64,488,460.57 | 14,214,355.28 | 185,874,732.10 | |||
| Total | 1,271,461,842.35 | 2,009,984,286.64 | 2,666,995,493.94 | 614,450,635.05 | |||
| Defined contribution plans as follows: | |||||||
30 June 2019
| In RMB Yuan | |||||
| Item | Beginning | Addition | Deduction | Ending | |
| Basic retirement security | 76,517,169.90 | 239,621,331.31 | 237,709,806.47 | 78,428,694.74 | |
| Unemployment insurance | 7,893,265.31 | 6,692,994.65 | 6,749,962.36 | 7,836,297.60 | |
| Total | 84,410,435.21 | 246,314,325.96 | 244,459,768.83 | 86,264,992.34 | |
26. Taxes payable
In RMB Yuan
| Item | Ending | Beginning |
| Value-added tax | 5,159,464.47 | 9,641,450.47 |
| Consumption tax | 239,049,926.42 | 658,869,177.63 |
| Corporate income tax | 30,437,097.13 | -19,968,952.37 |
| Individual Income tax | 1,463,366.34 | 655,007.28 |
| City maintenance and construction tax, education | 4,504,831.21 | 9,333,772.54 |
| additional expenses | ||
| Others | 10,528,738.80 | 10,786,031.70 |
| Total | 291,143,424.37 | 669,316,487.25 |
27. Other payables
| Item | Ending | Beginning |
| Dividend payable | 86,527,416.00 | 79,742.80 |
| Other payables | 5,078,870,846.95 | 3,079,669,273.01 |
| 合计 | 5,165,398,262.95 | 3,079,749,015.81 |
Dividend payable
In RMB Yuan
| Item | Ending | Beginning |
| Dividend payable – A share dividend | 86,447,673.20 | |
| Dividend payable – Hebei Changan Minority interests | 79,742.80 | 79,742.80 |
| Total | 86,527,416.00 | 79,742.80 |
Other payables
In RMB Yuan
| Item | Ending | Beginning |
| Deposits of dealer and supplier | 1,791,134,921.16 | 133,434,563.54 |
| Maintenance fees | 146,266,708.47 | 205,714,188.51 |
| Advertising fees | 452,999,910.77 | 750,771,372.18 |
| Warehousing and transport fees | 267,088,420.59 | 123,222,758.15 |
| Integrated service charges and miscellaneous expenses | 207,668,516.93 | 110,960,485.47 |
| Purchase and construction of fixed assets, intangible assets and project deposits | 1,445,922,536.66 | 1,271,262,272.32 |
| Others | 767,789,832.37 | 484,303,632.84 |
| Total | 5,078,870,846.95 | 3,079,669,273.01 |
28. Estimated liabilities
In RMB Yuan
| Item | Beginning | Addition | Deduction | Ending |
| product quality assurance | 2,610,780,818.12 | 645,442,330.86 | 274,432,792.39 | 2,981,790,356.59 |
| Supplier compensation | 634,541,926.00 | 24,054,153.63 | 610,487,772.37 |
| Total | 3,245,322,744.12 | 645,442,330.86 | 298,486,946.02 | 3,592,278,128.96 |
Note: The product quality assurance is the maintenance cost of the estimated three-package period of the sold vehicle.
29. Other current liabilities
In RMB Yuan
| Item | Ending | Beginning |
| Accrued utilities | 6,088,846.05 | 36,910,207.22 |
| Accrued transportation fee | 465,862,022.77 | 537,462,389.91 |
| Accrued maintenance fee | 28,206,664.07 | 37,723,105.48 |
| Accrued technology transfer and development fee | 487,062,803.54 | 128,055,835.93 |
| Accrued commercial discount payable | 1,834,314,241.41 | 2,883,344,577.38 |
| Accrued market development expense | 324,529,202.03 | 443,397,362.38 |
| Accrued rental fee | 14,182,051.07 | 98,306,892.29 |
| Accrued consultancy fee | 43,982,256.70 | |
| Others | 336,405,908.79 | 116,258,525.32 |
| Total | 3,496,651,739.73 | 4,325,441,152.61 |
30. Non-current liabilities due within one year
In RMB Yuan
| Item | Ending | Beginning |
| Non-current liabilities due within one year | - | 6,594,120.00 |
| Total | - | 6,594,120.00 |
31. Long-term loans
In RMB Yuan
| Item | Ending | Beginning |
| Credit loan | - | 6,594,120.00 |
| Deduction of loans due within one year | - | -6,594,120.00 |
| Total | - | - |
32.Long-term payables
| Item | Ending | Beginning |
| Special payables | 305,774,538.84 | 303,590,824.69 |
| Total | 305,774,538.84 | 303,590,824.69 |
Special payables
In RMB Yuan
| Item | Beginning | Addition | Deduction | Ending |
| New car development | 20,684,920.29 | 3,026,900.00 | 1,747,628.15 | 21,964,192.14 |
| Changan Automobile E-type gasoline engine cylinder block, cylinder head machine plus production line demonstration project | 22,984,695.64 | 22,984,695.64 | ||
| Land demolition compensation | 55,350,709.40 | 55,350,709.40 | ||
| C206 pure electric vehicle development and industrialization project | 3,446,280.58 | 3,446,280.58 | ||
| Intelligent manufacturing special project | 104,783,625.98 | 1,246,700.00 | 7,339,177.27 | 98,691,148.71 |
| Lightweight design of automobile structure | 52,890,838.71 | 21,000,000.00 | 12,102,012.55 | 61,788,826.16 |
| Others | 43,449,754.09 | 38,395,377.90 | 17,311,750.14 | 64,533,381.85 |
| Total | 303,590,824.69 | 63,668,977.90 | 61,485,263.75 | 305,774,538.84 |
33. Deferred income
30 June, 2019
In RMB Yuan
| Item | Beginning | Addition | Deduction | Ending |
| Government grants related to assets | 2,871,932,225.37 | 1,440,000.00 | 88,821,798.04 | 2,784,550,427.33 |
| Government grants related to income | 673,754,999.84 | 400,000,000.00 | 71,456,238.65 | 1,002,298,761.19 |
| Others | 137,621,309.52 | 136,155,386.10 | 249,400,264.09 | 24,376,431.53 |
| Total | 3,683,308,534.73 | 537,595,386.10 | 409,678,300.78 | 3,811,225,620.05 |
2018
| Item | Beginning | Addition | Deduction | Ending |
| Government grants related to assets | 2,825,085,486.08 | 258,126,338.83 | 211,279,599.54 | 2,871,932,225.37 |
| Government grants related to income | 754,048,245.36 | 302,298,761.19 | 382,592,006.71 | 673,754,999.84 |
| Others | 48,683,687.61 | 142,238,902.00 | 53,301,280.09 | 137,621,309.52 |
| Total | 3,627,817,419.05 | 702,664,002.02 | 647,172,886.34 | 3,683,308,534.73 |
As at 30 June 2019, details of liabilities related to government grants are as follows:
| Item | Beginning | Addition | Recorded to other income | Ending | Relates to asset/gain |
| Project subsidy funds | 2,343,587,752.65 | 1,440,000.00 | 58,818,721.02 | 2,286,209,031.63 | Related to asset |
| Subsidies for plant construction | 338,633,250.56 | 24,748,714.76 | 313,884,535.80 | Related to asset | |
| Technical innovation funds | 16,150,000.00 | 16,150,000.00 | Related to asset | ||
| Other asset - related subsidies | 173,561,222.16 | 5,254,362.26 | 168,306,859.90 | Related to asset | |
| Other income - related subsidies | 673,754,999.84 | 400,000,000.00 | 71,456,238.65 | 1,002,298,761.19 | Related to income |
| Total | 3,545,687,225.21 | 401,440,000.00 | 160,278,036.69 | 3,786,849,188.52 |
As at 31 December 2018, details of liabilities related to government grants are as follows:
| Item | Beginning | Addition | Recorded to non-operating income | Ending | Relates to asset/gain |
| Project subsidy funds | 2,393,683,325.86 | 79,093,338.83 | 129,188,912.04 | 2,343,587,752.65 | Related to asset |
| Subsidies for plant construction | 343,254,680.06 | 44,876,000.00 | 49,497,429.50 | 338,633,250.56 | Related to asset |
| Technical innovation funds | 16,150,000.00 | 16,150,000.00 | Related to asset | ||
| Other asset - related subsidies | 71,997,480.16 | 134,157,000.00 | 32,593,258.00 | 173,561,222.16 | Related to asset |
| Other income - related subsidies | 754,048,245.36 | 302,298,761.19 | 382,592,006.71 | 673,754,999.84 | Related to income |
| Total | 3,579,133,731.44 | 560,425,100.02 | 593,871,606.25 | 3,545,687,225.21 |
34. Share capital
In RMB Yuan
| Beginning | Current movement | Ending | |||||
| Issuance of shares | Stock dividend | Transfer of reserve to common shares | others | Subtotal | |||
| The sum of shares | 4,802,648,511.00 | - | - | - | - | - | 4,802,648,511.00 |
35. Capital reserves
In RMB Yuan
| Item | Beginning | Addition | Deduction | Ending |
| Share premium | 4,938,329,830.94 | - | - | 4,938,329,830.94 |
| Share-based payment | 23,961,900.00 | - | - | 23,961,900.00 |
| Capital reserve transferred arising from the old standards | 44,496,899.00 | - | - | 44,496,899.00 |
| Restricted capital reserve of equity investments | 17,015,985.20 | - | - | 17,015,985.20 |
| Others | 33,437,825.03 | - | - | 33,437,825.03 |
| Total | 5,057,242,440.17 | - | - | 5,057,242,440.17 |
36. Other comprehensive income
In RMB Yuan
| Item | Report period | Same period of last year |
| 1. Profits (loss) generated from available for sale financial assets | -27,690,000.00 | |
| Less: Available for sale financial assets arising from income tax effect | -4,153,500.00 | |
| Net - through other comprehensive income into the profits and losses of the current | - | |
| Subtotal | -23,536,500.00 | |
| 2. Translation differences of foreign currency financial statements | 22,567,848.13 | -19,190,455.30 |
| 3. Shares in the other comprehensive income of the investee accounted for according to the equity method | 289,756,488.89 | |
| Total | 22,567,848.13 | 247,029,533.59 |
37. Surplus reserves
In RMB Yuan
| Item | Beginning | Addition | Deduction | Ending |
| Statutory surplus | 2,401,324,255.50 | - | - | 2,401,324,255.50 |
| Total | 2,401,324,255.50 | - | - | 2,401,324,255.50 |
38. Retained earnings
In RMB Yuan
| Item | Sum |
| Retained earnings at beginning of year before adjustments | 33,707,011,170.31 |
| Adjust the early undistributed profits total | |
| Retained earnings at beginning of year after adjustments | 33,707,011,170.31 |
| Add: Net profit belong to parent company | -2,240,039,761.11 |
| Less: the statutory surplus reserves | |
| Extract discretionary surplus reserve | |
| Extract general risk preparation | |
| Common stock dividends payable | 86,447,673.20 |
| Retained earnings at the end | 31,380,523,736.00 |
39. Operating revenue and cost
(1) Operating revenue and operating cost
In RMB Yuan
| Item | Report period | Same period of last year |
| Operating revenue | 29,100,899,960.18 | 34,440,982,013.45 |
| Other operating revenue | 774,880,136.66 | 1,201,850,176.59 |
| Operating cost | 27,419,410,626.92 | 30,614,845,704.45 |
(2) Main business (divisions)
In RMB Yuan
| Item | Report period | Same period of last year | ||
| Operating revenue | Operating cost | Operating revenue | Operating cost | |
| Motor industry | 29,100,899,960.18 | 26,869,270,640.75 | 34,440,982,013.45 | 30,172,410,492.58 |
| Total | 29,100,899,960.18 | 26,869,270,640.75 | 34,440,982,013.45 | 30,172,410,492.58 |
(3) Main business (product)
In RMB Yuan
| Item | Report period | Same period of last year | ||
| Operating revenue | Operating cost | Operating revenue | Operating cost | |
| Sale of goods | 29,039,911,031.57 | 26,783,426,523.20 | 34,368,280,256.20 | 30,082,686,676.78 |
| Outsourcing processing | 60,988,928.61 | 85,844,117.55 | 72,701,757.25 | 89,723,815.80 |
| Total | 29,100,899,960.18 | 26,869,270,640.75 | 34,440,982,013.45 | 30,172,410,492.58 |
(4) Main business areas (points)
In RMB Yuan
| Item | Report period | Same period of last year | ||
| Operating revenue | Operating cost | Operating revenue | Operating cost | |
| Domestic | 27,640,776,612.07 | 25,429,548,405.65 | 33,128,902,612.24 | 28,783,568,072.99 |
| Overseas | 1,460,123,348.11 | 1,439,722,235.10 | 1,312,079,401.21 | 1,388,842,419.59 |
| Total | 29,100,899,960.18 | 26,869,270,640.75 | 34,440,982,013.45 | 30,172,410,492.58 |
40. Tax and surcharges
In RMB Yuan
| Item | Report period | Same period of last year |
| Consumption tax | 858,219,663.65 | 1,046,865,578.31 |
| City maintenance and construction tax | 66,201,215.72 | 81,462,766.85 |
| Education additional expenses | 48,193,289.93 | 60,907,556.48 |
| Others | 107,656,305.48 | 97,679,299.93 |
| Total | 1,080,270,474.78 | 1,286,915,201.57 |
41. Operating expenses
In RMB Yuan
| Item | Report period | Same period of last year |
| Payroll and welfare | 217,259,045.38 | 179,109,833.87 |
| Promotional advertising fees and sales service fees | 315,728,251.14 | 1,212,685,702.28 |
| Transportation expenses | 840,974,104.51 | 1,045,016,389.46 |
| Travelling expenses | 39,917,298.97 | 30,138,418.47 |
| Package expenses | 12,659,730.13 | 30,646,835.90 |
| Administrative expenses | 2,538,568.31 | 2,271,915.34 |
| Consulting fee | 3,900,858.69 | 2,347,166.50 |
| Training fee | 3,755,007.88 | 15,475,414.33 |
| Others | 6,483,676.29 | 25,770,752.36 |
| Total | 1,443,216,541.30 | 2,543,462,428.51 |
42. General and administrative expenses
In RMB Yuan
| Item | Report period | Same period of last year |
| Payroll and welfare | 511,834,200.57 | 530,842,721.95 |
| Administrative expenses | 8,543,521.30 | 5,913,317.34 |
| Depreciation and amortization | 556,027,643.30 | 410,403,475.53 |
| Miscellaneous service charges | 5,974,056.43 | 1,189,374.05 |
| Traffic expenses | 11,461,479.61 | 23,356,637.81 |
| Travelling expenses | 10,780,103.21 | 29,427,519.57 |
| Entertainment expenses | 1,162,489.46 | 1,531,047.02 |
| Others | 154,580,626.09 | 46,212,328.39 |
| Total | 1,260,364,119.97 | 1,048,876,421.66 |
43. Research and development expenses
| Item | Report period | Same period of last year |
| Wages and benefits | 701,527,180.22 | 810,581,975.90 |
| Material fee | 85,090,579.88 | 65,395,559.56 |
| Subcontract fee | 333,086,743.60 | 81,396,090.19 |
| Travel research fee | 17,519,367.04 | 31,264,931.10 |
| Test fee | 49,958,628.39 | 42,934,689.91 |
| Depreciation and amortization | 84,795,731.04 | 72,497,637.56 |
| other fee | 30,977,861.36 | 2,453,956.17 |
| Total | 1,302,956,091.53 | 1,106,524,840.39 |
44. Financial expenses
In RMB Yuan
| Item | Report period | Same period of last year |
| Interest expense | 28,216,059.24 | 13,996,367.31 |
| Less: interest income | 128,484,820.10 | 263,722,875.78 |
| Exchange gain or loss | -2,640,391.42 | 16,320,129.48 |
| Others | 6,076,443.13 | 7,887,536.68 |
| Total | -96,832,709.15 | -225,518,842.31 |
45. Assets disposal income
In RMB Yuan
| Item | Report period | Same period of last year | Included in 2018 non-recurring gains and losses |
| Fixed assets disposal income | 9,392,459.28 | 18,771,809.69 | 9,392,459.28 |
| Total | 9,392,459.28 | 18,771,809.69 | 9,392,459.28 |
46. Impairment loss on assets
In RMB Yuan
| Item | Report period | Same period of last year |
| 1. Bad debt loss | - | 2,102,999.91 |
| 2. Impairment provision of obsolete inventory | 152,676,538.06 | 106,838,422.51 |
| Total | 152,676,538.06 | 108,941,422.42 |
47. Credit impairment loss (applicable from January 1, 2019)
| Item | Report period | Same period of last year |
| I. Notes receivable and bad debts of accounts receivable | 7,380,783.24 | |
| 2. Loss of bad debts of other receivables | 2,148,950.42 | |
| Total | 9,529,733.66 |
48. Changes in fair value gains and losses
| Sources of income from changes in fair value | Report period | Same period of last year |
| Transactional financial assets | 40,337,151.27 | |
| Total | 40,337,151.27 |
49. Investment income
In RMB Yuan
| Item | Report period | Same period of last year |
| Long-term equity investment income under equity method | -108,336,709.94 | 1,362,011,815.11 |
| Total | -108,336,709.94 | 1,362,011,815.11 |
50. Other income
In RMB Yuan
| Item | Report period | Same period of last year | Explain |
| R&D special funds | 476,456,238.65 | 526,000,000.00 | |
| Vehicle development project support | - | 331,454,741.70 |
| Research and development grants for power and intelligent technology | - | 100,000,000.00 | |
| Deferred revenue amortization | 110,976,095.19 | 78,888,221.15 | |
| Other government subsidies | 33,300,740.27 | 79,888,256.47 | |
| Total | 620,733,074.11 | 1,116,231,219.32 |
51. Non-operating income
In RMB Yuan
| Item | Report period | Same period of last year |
| Fines and others | 18,836,680.44 | 29,318,896.76 |
| Total | 18,836,680.44 | 29,318,896.76 |
52. Non-operating expenses
In RMB Yuan
| Item | Report period | Same period of last year |
| Donation | 2,300,000.00 | 22,300,000.00 |
| Vehicle reward | 6,029,776.00 | 4,080,100.00 |
| Fines and late fees | 1,065,115.94 | 2,968,836.54 |
| Others | 3,250,175.26 | 22,999,826.39 |
| Total | 12,645,067.20 | 52,348,762.93 |
53. Income tax expenses
In RMB Yuan
| Item | Report period | Same period of last year |
| Current income tax expense | 31,508,825.01 | 43,577,796.68 |
| Deferred income tax adjustment | 85,058,871.07 | -28,289,478.85 |
| Total | 116,567,696.08 | 15,288,317.83 |
54. Notes to cash flow statement
(1) The major cash received relating to other operating activities
In RMB Yuan
| Item | Amount |
| Interest income | 119,244,542.40 |
| Government grants related to operating activities | 840,966,704.05 |
| Others | 2,504,538,123.79 |
| Total | 3,464,749,370.24 |
(2) The major cash paid relating to other operating activities
In RMB Yuan
| Item | Amount |
| Selling expenses | 722,315,326.41 |
| Administrative expenses | 1,086,113,871.84 |
| Others | 1,486,199,833.16 |
| Total | 3,294,629,031.41 |
(3) The major cash received relating to other investing activities
In RMB Yuan
| Item | Amount |
| Others | 1,478,695.29 |
| Total | 1,478,695.29 |
(4) The major cash paid relating to other investing activities
In RMB Yuan
| Item | Amount |
| Others | 315,938,190.60 |
| Total | 315,938,190.60 |
(5) The major cash received relating to other financing activities
In RMB Yuan
| Item | Amount |
| Redemption of the deposit for acceptance | 37,159,887.74 |
| Total | 37,159,887.74 |
(6) The major cash paid relating to other financing activities
| Item | Amount |
| Payment of acceptance billsother | 92,446,855.66 |
| Others | 125,131.96 |
| Total | 92,571,987.62 |
55. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
In RMB Yuan
| Supplementary information | Current Amount | Prior-period Amount |
| 1. Cash flow relating to operating activities calculated by |
| adjusting the net profit | ||
| Net profit | -2,244,061,428.35 | 1,617,481,673.47 |
| Add: credit impairment loss | 9,529,733.66 | |
| Add: provision for assets impairment | 152,676,538.06 | 108,941,422.42 |
| Depreciation of fixed assets, oil and gas assets, productive biological assets | 1,412,926,235.60 | 1,045,654,724.17 |
| Amortization of intangible assets | 485,234,277.39 | 349,623,578.41 |
| Amortization of long-term deferred expense | 1,190,008.24 | 113,355.78 |
| Disposal loss/(income) on fixed assets, intangible assets and others long-term assets(with “-” for gains) | 9,392,459.28 | 18,771,809.69 |
| Loss of fair value change (revenue is marked with "-") | -40,337,151.27 | - |
| Financial expense(with “-” for gains) | -96,832,709.15 | -225,518,842.31 |
| Investment loss(with “-” for gains) | 108,336,709.94 | -1,362,011,815.11 |
| Decrease in deferred tax assets(with “-” for gains) | 91,826,434.28 | -28,289,478.86 |
| Decrease in inventory(with “-” for gains) | -787,955,680.07 | -60,238,054.79 |
| Decrease in operating receivables(with “-” for gains) | 3,615,249,233.77 | 9,804,878,336.43 |
| Increase in operating payables(with “-” for gains) | 1,406,660,271.88 | -6,910,067,427.00 |
| Others | 96,428,697.69 | 42,062,477.85 |
| Net cash flows from operating activities | 4,220,263,630.95 | 4,401,401,760.15 |
| 2. Investment and financing activities involving no cash incomings / outgoings | ||
| 3. Movement of cash and cash equivalents | ||
| Ending balance of cash equivalents | 10,147,607,013.29 | 23,767,643,401.89 |
| Less: beginning balance of cash equivalents | 9,648,153,614.80 | 21,451,305,090.53 |
| Net increase in cash and cash equivalents | 499,453,398.49 | 2,316,338,311.36 |
(2) Cash and cash equivalents
In RMB Yuan
| Item | Ending balance | Beginning balance |
| I. Cash | ||
| Including: Cash on hand | 17,875.99 | 14,374.84 |
| Bank deposits that can be readily used | 10,147,589,137.30 | 9,648,139,239.96 |
| II. Ending balance of cash and cash equivalents | 10,147,607,013.29 | 9,648,153,614.80 |
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
| Name | Registered Address | Type of business | Registered Capital(Ten Thousand Yuan) | Proportion of shares enjoyed by the group |
| Chongqing Chehemei Technology Co., Ltd. | Chongqing | Sales | 1000 | 100.00 |
(2) Subsidiary clearing during the reporting period
□ Applicable √ Not Applicable
Subsidiary clearing during the reporting period and related circumstances:
□ Applicable √ Not Applicable
IX. Stake in other entities
1. Rights in subsidaries
The subsidiaries of the Company are as follows：
| Company name | Main operating | Registered place | Nature of business | Registered capital (ten | Total proportion of shareholders |
| place | thousand) | (%) | |||||
| Direct | Indirect | ||||||
| I. The subsidiary formed by establishment or investment | |||||||
| Hebei Changan Automobile Co., Ltd. (Note 1) | Dingzhou | Dingzhou | Manufacturing | 46,469 | 94.22 | - | |
| Chongqing Changan International Automobile Sales Co., Ltd. | Chongqing | Chongqing | Sales | 1,376 | 100.00 | - | |
| Chongqing Changan Vehicle Networking Technology Co., Ltd. | Chongqing | Chongqing | Sales | 8,850 | 100.00 | - | |
| Chongqing Changan Special Automobile Sales Co., Ltd (Note 2) | Chongqing | Chongqing | Sales | 500 | 50.00 | - | |
| Chongqing Changan Automobile Supporting Service Co., Ltd. | Chongqing | Chongqing | Sales | 3,000 | 99.00 | 1.00 | |
| Chongqing Changan New Energy Automobile Co. Ltd. | Chongqing | Chongqing | R&D | 2,900 | 65.00 | - | |
| Chongqing Changan Europe Design Academy Co., Ltd. | Turin, Italy | Turin, Italy | R&D | EUR1,738.36 | 100.00 | - | |
| Changan United Kingdom R&D Center Co., Ltd. | Nottingham, United Kingdom | Nottingham, United Kingdom | R&D | GBP2,482 | 100.00 | - | |
| Beijing Changan R&D Center Co., Ltd. | Beijing | Beijing | R&D | 100 | 100.00 | - | |
| Harbin Changan R&D Center Co., Ltd. | Habin | Habin | R&D | 100 | 100.00 | - | |
| Changan Japan Designing Center Co.,Ltd. | Yokohama, Japan | Yokohama, Japan | R&D | JPY2,000 | 100.00 | - | |
| Changan United States R&D Center Co., Ltd. | Troy, United states | Troy, United states | R&D | USD154 | 100.00 | - | |
| Changan Automobile Russia Co., Ltd. | Moscow, Russia | Moscow, Russia | Sales | USD20 | 100.00 | - | |
| Changan Brazil Holdings Limited | St. Paul, Brazil | St. Paul, Brazil | Sales | BRL100 | 100.00 | - | |
| Shenzhen Changan New Energy Automobile Service Co., Ltd | Shenzhen | Shenzhen | Sales | 5000 | 100.00 | - | |
| Hangzhou Changan Yixing Technology Co., Ltd. | Hangzhou | Hangzhou | Lease | 500 | 100.00 | - | |
| Hefei Changan Yixing Technology Co., Ltd. | Hefei | Hefei | Lease | 500 | 100.00 | - | |
| Nanjing Changan Connected Car Technology Co., Ltd. | Nanjing | Nanjing | Lease | 500 | 100.00 | - | |
| Beijing Changan Vehicle Networking Technology Co., Ltd. | Beijing | Beijing | Lease | 500 | 100.00 | - | |
| Haikou Changan Vehicle Networking Technology Co., Ltd. | Haikou | Haikou | Lease | 500 | 100.00 | - | |
| Changan Vehicle Networking (Shanghai) Technology Co., Ltd. | Shanghai | Shanghai | Lease | 500 | 100.00 | - | |
Note 1: The Company owns 93.79% and 95.70% of voting shares of Nanjing Changan Automobile Co., Ltd. And Hebei ChanganAutomobile Co., Ltd. respectively, the difference between proportion of voting shares and proportion of shares held is due to thevoting right consigned from minority shareholders.Note 2: The remaining shareholders of Chongqing Changan Special Automobile Co., Ltd. made an agreement with the Company thatthe remaining shareholders are to vote in accordance with the Company. The main financial and operating policies have beencontrolled by the Company, so it is included in the scope of consolidated financial statements.
As at June 30, 2019, 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
| Tianjin Changan Vehicle Networking Technology Co., Ltd. | Tianjin | Tianjin | Lease | 500 | 100.00 | - |
| Xiamen Changan New Energy Automobile Sales & Service Co., Ltd. | Xiamen | Xiamen | Sales | 200 | 100.00 | - |
| Guangzhou Changan New Energy Automobile Sales & Service Co., Ltd. | Guangzhou | Guangzhou | Sales | 400 | 100.00 | - |
| Fuzhou Fuqing Changan New Energy Automobile Sales & Service Co., Ltd. | Fuzhou | Fuzhou | Sales | 200 | 100.00 | - |
| Chongqing Chehemei Technology Co., Ltd. | Chongqing | Chongqing | Sales | 1000 | 100.00 | |
| Chongqing Changan New Energy Automobile Technology Co., Ltd. | Chongqing | Chongqing | R&D | 9900 | 100.00 | - |
| II. The subsidiary formed by business combination not under common control | ||||||
| Nanjing Changan Automobile Co., Ltd.(Note1) | Nanjing | Nanjing | Manufacturing | 60,181 | 84.73 | - |
| Chongqing Changan Suzuki Automobile Co., Ltd.Zhenjiang Demao Hairun Equity Investment Fund Partnership (Limited Partnership) | Chongqing | Chongqing | Manufacturing | 133,764 | 100.00 | |
| Zhenjiang Demao Hairun Equity Investment Fund Partnership (Limited Partnership) | Zhenjiang | Zhenjiang | Financial industry | 150,001 | 100.00 | |
| III. The subsidiary formed by business combination under common control | ||||||
| Hebei Baoding Changan Bus Co., Ltd. | Dingzhou | Dingzhou | Manufacturing | 3,000 | 100.00 | - |
| Hefei Changan Automobile Co.,Ltd. | Hefei | Hefei | Manufacturing | 77,500 | 100.00 | - |
| Company name | Main operating place | Registered place | Nature of business | Registered capital (ten thousand) | Total proportion of shareholders (%) | Accounting treatment | |
| Direct | Inderect | ||||||
| I. Joint ventures | |||||||
| Jiangling Holding Co., Ltd. | Nanjing | Nanjing | Manufacture and sale ofautomobiles, and components | 100,000 | 50.00 | - | Equity |
| Changan Ford Automobile Co., Ltd. | Chongqing | Chongqing | Manufacture and sale ofautomobiles, and components | USD24,100 | 50.00 | - | Equity |
| Changan Mazda Automobile Co., Ltd. | Nanjing | Nanjing | Manufacture and sale ofautomobiles, and components | USD11,097 | 50.00 | - | Equity |
| Changan Mazda Engine Co., Ltd. (Note 1) | Nanjing | Nanjing | Manufacture and sale ofautomobiles, and components | USD20,996 | 50.00 | - | Equity |
| Changan PSA Automobiles Co., Ltd. | Shenzhen | Shenzhen | Manufacture and sale ofautomobiles, and components | 400,000 | 50.00 | - | Equity |
| Changan Weilai New Energy Automobile Technology Co., Ltd. | Nanjing | Nanjing | Manufacture and sale ofautomobiles, and components | 9,800 | 50.00 | - | Equity |
| II. Associates | |||||||
| Chongqing Changan Kuayue Automobile Co., Ltd. | Chongqing | Chongqing | Develop, product and sale of automobile and components; import and export goods. | 6,533 | 34.30 | - | Equity |
| Chongqing Changan Kuayue Automobile Sales Co., Ltd. | Chongqing | Chongqing | Sale of Changan Kuayue’ s automobile and agricultural cars and components. Technical advisory services for automobile | 300 | 34.30 | - | Equity |
| Beijing Fang’an Taxi Co., Ltd. | Beijing | Beijing | For the car loan business | 2,897.96 | 20.70 | - | Equity |
| Chongqing Auto Finance Co., ltd. | Chongqing | Chongqing | Provide car loan; provide vehicle loans and operating equipment loans to car dealers, including the construction loans of exhibition hall,spare parts loans and maintenance equipment loans, etc. | 476,843.1 | 28.66 | - | Equity |
| Hainan Anxinxing Information Technology Co., Ltd. | Chengmai County | Chengmai County | Software and hardware technology development, technical | 3,000 | 30.00 | - | Equity |
X. Risks associated with financial instruments
1. Classification of financial instruments
As at balance sheet day, the book values of financial instruments are as follows:
Financial assets
In RMB Yuan
| 2019.6.30 | Financial Assets Measured at Fair Value and Their Changes Included in Current Profits and Losses | Measured at amortized cost | Measured at fair value and its changes are included in other comprehensive income |
| Cash | 10,535,284,892.55 | ||
| Transactional financial assets | 1,570,658,462.58 |
| consulting, auto parts sales | |||||||
| Nanjing Chelai Travel Technology Co., Ltd. | Nanjing | Nanjing | Car sales, leasing, software technology development, technical services | 10,000 | 10.00 | - | Equity |
| Hunan Guoxin Semiconductor Technology Co., Ltd. | Zhuzhou | Zhuzhou | Technology development consulting, technical services, technology transfer in the field of power semiconductors | 50,000 | 25.00 | - | Equity |
| Beijing Wutong Chelian Technology Co., Ltd. | Beijing | Beijing | Technology development, technical consulting, technical services, technology transfer | 20,000 | - | - | Equity |
| Anhe (Chongqing) Equity Investment Fund Management Co., Ltd. | Chongqing | Chongqing | Equity investment management | 1,000 | - | - | Equity |
| Hangzhou Chelizi Intelligent Technology Co., Ltd. | Hangzhou | Hangzhou | Car travel service | 630 | - | - | Equity |
| Nanjing Leading Equity Investment Partnership | Nanjing | Nanjing | Equity investment, venture capital investment | 976,000 | 15.00 | - | Equity |
| Nanjing Leading Equity Investment Management Co., Ltd. | Nanjing | Nanjing | Equity investment management | 1,000 | 16.39 | - | Equity |
| Notes receivable | 15,646,668,140.73 | ||
| Accounts receivable | 2,011,970,761.86 | ||
| Other receivables | 3,508,904,992.23 | ||
| Investment in other equity instruments | 504,572,800.00 | ||
| Total | 1,570,658,462.58 | 31,702,828,787.37 | 504,572,800.00 |
In RMB Yuan
| 2018 | Loans and accounts receivable | Available-for-sale financial assets |
| Cash | 9,980,544,526.14 | - |
| Notes receivable | 20,561,625,805.24 | - |
| Accounts receivable | 1,409,419,600.50 | |
| Other receivables | 3,250,452,923.70 | - |
| Available-for-sale financial assets | - | 1,957,873,311.31 |
| Total | 35,202,042,855.58 | 1,957,873,311.31 |
Financial liabilities
In RMB Yuan
| 2019.6.30 | 2018.12.31 | |
| Short-term loans | 210,000,000.00 | 190,000,000.00 |
| Notes payable | 13,769,475,508.94 | 14,807,862,262.39 |
| Accounts payable | 14,276,660,036.85 | 13,916,201,276.95 |
| Other payables | 5,165,398,262.95 | 3,079,749,015.81 |
| Long-term loan | 305,774,538.84 | 303,590,824.69 |
| Total | 33,727,308,347.58 | 32,297,403,379.84 |
2. Transfer of financial assets
The transferred financial assets that entirely derecognized but continuing involved
As at 30 June 2019, the Group has endorsed bank acceptance bill with a carrying amount of RMB 2,195,073,464.21 to suppliers tosettle the accounts payable. The maturities of the notes are between 1 to 6 months. According to the relevant provisions of the "law ofnegotiable instruments", if the banks refuse the payment, the holder has the right of recourse to the Group (the "continuinginvolvement"). The Group holds the view that almost all the risks and rewards concerned have been transferred; therefore, the bookvalue of the accounts payable should be derecognized. The maximum loss and the undiscounted cash flow of the continuinginvolvement and repurchase is equal to its book value, the Group regards the fair value of the continuing involvement is notsignificant.
As of June 30, 2019, the Group operated a number of discount businesses with banks in China. The Group considers that the notesreceivable with book value of RMB 1,797,476,050.00 have transferred most of the risks and rewards related to the notes receivable atthe time of discount, thus meeting the conditions for termination of recognition of financial assets. On the discount day, the relevantreceivables shall be terminated in full accordance with the book value. These terminated recognized receivables continue to beexposed to the greatest risk and have the same discounted cash flow as the book value of the receivables when they are repurchased.If the acceptor refuses to pay the bill when it matures, it has the right to recourse to the group ("continue to involve"). In the view ofthe Group, the continued involvement in fair value is not significant.
In the first half of 2019, the Group did not recognize gains or losses on its transfer date. The Group shall continue to be involved inthe proceeds or expenses of the year in which the recognition of financial assets has been terminated and the cumulative recognitionthereof. Endorsements occur roughly and evenly during the year.
3. Risks of financial instruments
The Group’s principal financial instruments, except for derivatives, include bank loans, bonds payable, cash, etc. The main purposeof these financial instruments is to raise finance for the Group’s operations. The Group has various other financial assets andliabilities such as accounts receivable and accounts payable, which arise directly from its operations.
The main risks arising from the Group’s financial instruments are credit risk, liquidity risk and market risk. The Group’s riskmanagement policies are summarized below:
Credit risk
The Group trades only with recognized, creditworthy third parties. It is the Group’s policy that all customers who wish to trade oncredit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis with theresult that the Group’s exposure to bad debts is not significant. For transactions that do not occur in the country of the relevantoperating unit, the Group does not offer credit terms without the approval of the special department of credit control.
With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents,available-for-sale financial assets, other receivables, dividend receivables and certain derivatives financial instruments, the Group’sexposure to credit risk arising from default of the counterparty, with a maximum exposure equal to the carrying amount of theseinstruments, listed as book value of financial assets in consolidated financial statements. In 2018, there was no credit risk arisingfrom financial guarantee.
No gage is required since the Group trades only with recognized, creditworthy third parties. Credit risks are managed by clients andindustries collectively. As at 31 December 2018, among the Group’s collections with specific credit risk, 48.73% of accountsreceivables of the Group are due from top five clients. The Group does not hold any gage from or enhance credit limit to theseclients.
2019
Credit Risk Increasing the Judgment Criteria Significantly
The Group assesses whether the credit risk of the relevant financial instruments has increased significantly since the initialconfirmation on each balance sheet day. In determining whether credit risk has increased significantly since the initial confirmation,the Group considers that reasonable and valid information, including qualitative and quantitative analysis based on the Group'shistorical data, external credit risk rating and forward-looking information, can be obtained without unnecessary additional costs orefforts. Based on a single financial instrument or a portfolio of financial instruments with similar credit risk characteristics, the Groupcompares the risk of default of financial instruments on the balance sheet date with the risk of default on the initial confirmation dateto determine the change of default risk of financial instruments during the expected lifetime.
When triggering one or more of the following quantitative and qualitative criteria, the Group believes that the credit risk of financialinstruments has increased significantly:
Quantitative criteria are that the probability of default of the remaining duration of the reporting day rises by more than a certainpercentage compared with the initial confirmationQualitative criteria include major adverse changes in the debtor's business or financial situation, early warning customer lists, etc.The upper limit indicator is that the debtor's contract payments (including principal and interest) are overdue for more than [30] days.Other financial assets of the Group include monetary funds, sellable financial assets, other receivables, etc. The credit risk of thesefinancial assets originates from the default of the counterparty, and the maximum risk exposure equals the book value of theseinstruments. The Group faces no credit risk in this year due to the provision of financial guarantees.
Definition of assets with impaired credit
In order to determine whether credit impairment occurs, the defining criteria adopted by the Group are consistent with the internalobjectives of credit risk management for relevant financial instruments, taking into account quantitative and qualitative indicators.When assessing whether the debtor has suffered credit impairment, the Group mainly considers the following factors:
Major financial difficulties occur to the issuer or debtor;
The debtor breaches the contract, such as defaulting of the interest or overdue principal, etc.The creditor gives the debtor concessions in no other case for economic or contractual considerations related to the debtor's financialdifficulties;The debtor is likely to go bankrupt or undergo other financial restructuring;The financial difficulties of the issuer or debtor lead to the disappearance of the active market of the financial assets;Purchase or derivation of a financial asset at a substantial discount reflects the credit losses.
Credit impairment of financial assets may be caused by the interaction of multiple events, not necessarily by separate identifiableevents.
Parameters for Measuring Expected Credit Loss
Depending on whether credit risk has increased significantly and whether credit impairment has occurred, the Group measuresimpairment provision for different assets by anticipated credit losses for 12 months or the whole life period, respectively. The keyparameters of anticipated credit loss measurement include default probability, default loss rate and default risk exposure. Consideringthe quantitative analysis and forward-looking information of historical statistics (such as counterparty ratings, guarantees andcollateral types, repayment methods, etc.), the Group establishes a default probability, default loss rate and default risk exposuremodel.
The relevant definitions are as follows:
The probability of default refers to the possibility that the debtor will not be able to fulfil its obligation to pay in the next 12 monthsor throughout the remaining period. The default probability of the group is adjusted based on the results of XX model, andforward-looking information is added to reflect the default probability of the debtor under the current macroeconomic environment.The default loss rate refers to the group's expectation of the extent of loss from exposure to default risk. According to the type ofcounterparty, the way and priority of recourse, and the different collateral, the loss rate of breach of contract is also different. Thedefault loss rate is the percentage of risk exposure loss at the time of default, which is calculated on the basis of the next 12 monthsor the whole duration.The default risk exposure is the amount that the group should be repaid in the event of default in the next 12 months or throughoutthe remaining period.
Prospective informationThe assessment of significant increase in credit risk and the calculation of anticipated credit losses involve forward-lookinginformation. Through historical data analysis, the Group identifies key economic indicators affecting credit risk and expected creditloss of various business types.
The impact of these economic indicators on default probability and default loss rate varies with different business types. In thisprocess, the Group applies expert judgment to forecast these economic indicators annually based on the results of expert judgment,and determines the impact of these economic indicators on default probability and default loss rate through [regression analysis].
Liquidity risk
The Group adopts cycle liquidity planning instrument to manage capital shortage risks. The instrument takes into consideration thematurity date of financial instruments plus estimated cash flow from the Group’s operations.
The Group’s objective is to maintain a balance between continuity of funding and flexibility and sufficient cash to support operatingcapital through financing functions by the use of bank loans, debentures, etc.
Market risk
Interest rate risk
The Group’s revenue and operating cash flows are seldomly influenced by the interest fluctuation. As at 30 June 2019, the Group’sloans are bearing fixed interest rate and the Group is not hedging the risk currently.
Foreign currency risk
The Group’s exposures to fluctuation in foreign currency exchange rate mainly arise from operating activities where transactions aresettled in currencies other than the units' functional currency and net investment to offshore subsidiary.
In 30 June, 2019, the Group only has limited transactional currency exposures of its total revenue that is valued in currencies otherthan the units' functional currency. Since most of the Group’s businesses are operated in China mainland, the estimated influence offluctuation of foreign currency is insignificant; therefore, the Group hasn’t carried out large amount of hedging to reduce the risk.
Equity instruments investment price risk
The Group is exposed to equity price risk arising from individual equity investments classified as transactional financial investments(Note VII 2) as at 30 June 2019. The Group’s listed investments are listed on the Shanghai and Shenzhen stock exchanges and valuedat quoted market prices at the end of the reporting period. The following table demonstrates the sensitivity to every 5% change (basedon the carrying amount as at the end of reporting period) in the Group’s net profit and fair value of the equity investments, with allother variables held constant, based on their carrying amounts at the end of the reporting period.
| Carrying amount of equity investments | Change in fair value | Increase/(decrease) in equity | |
| 2019.6.30 | |||
| Shanghai- Transactional financial assets | 175,370,000.00 | 5% | 7,453,225.00 |
| Shanghai- Transactional financial assets | 175,370,000.00 | -5% | -7,453,225.00 |
| Shenzhen-Transactional financial assets | 1,395,288,462.58 | 5% | 59,299,759.66 |
| Shenzhen-Transactional financial assets | 1,395,288,462.58 | -5% | -59,299,759.66 |
| 2018.12.31 | |||
| Shanghai- Available for sale | 123,540,000.00 | 5% | 5,250,450.00 |
| Shanghai- Available for sale | 123,540,000.00 | -5% | -5,250,450.00 |
| Shenzhen- Available for sale | 1,406,781,311.31 | 5% | 59,788,205.73 |
| Shenzhen- Available for sale | 1,406,781,311.31 | -5% | -59,788,205.73 |
4. Capital management
The main goal of the Group’s capital management is to ensure that the ability of continuous operation, and maintain a healthy capitalratios in order to support business development, and to maximize shareholder value.
The Group manages the capital structure and adjusts it with the change of economy trend and the risk feature of the assets. Tomaintain or adjust the capital structure, the Group can rectify dividend distribution, return capital to shareholders or issue new shares.The Group is not subject to external mandatory capital requirements constraints. The goal, principle and procedure of capitalmanagement stay the same in 2018 and 30, June 2019.
The Group’s leverage ratio on the balance sheet date is as follows:
30 June 2019 31 December 2018
Leverage ratio 52.64% 50.63%XI. Disclosure of fair value
1. Assets and liabilities measured at fair value
June 30, 2019
In RMB Yuan
| Input measured at fair value | ||||
| (The first level) | (The second level) | (The third level) | Total | |
| Trading financial assets - equity instrument investment | 175,370,000.00 | 1,395,288,462.58 | 1,570,658,462.58 | |
| Other equity instruments | 504,572,800.00 | 504,572,800.00 | ||
December 31, 2018
In RMB Yuan
| Input measured at fair value | ||||
| Quoted price in active market (The first level) | (The second level) | Important but unobservable input (The third level) | Total | |
| Available-for-sale financial assets- equtiy instruments | 123,540,000.00 | 1,406,781,311.31 | 1,530,321,311.31 | |
2. Fair value valuation
Fair value of financial instruments
The management has assessed the monetary funds, notes receivable and accounts receivable, other receivables, short-term loans,other payables, bills payable and accounts payable. The fair value is equal to the book value because the remaining period is not long.
The fair value of financial assets and financial liabilities is determined by the amount of voluntarily exchange of assets or debtsettlement between the parties to the transaction in a fair transaction, rather than the amount of money that is forced to sell orliquidate.
Long-term borrowings and long-term borrowings due within one year are determined using the discounted future cash flow methodto determine the fair value, using the market yields of other financial instruments with similar contractual terms, credit risk andremaining maturity as the discount rate. On December 31, 2018, the risk assessment of long-term borrowings and long-termborrowings due within one year was not significant.
The equity instruments listed by the Company include unrestricted ordinary shares and restricted shares. The unrestricted ordinaryshares investment determines the fair value by market quotation, and the restricted stock investment uses the discounted valuationmodel to estimate the fair value. We believe that the fair value and its changes estimated by valuation techniques are reasonable andare also the most appropriate value on the balance sheet date.XII. Rela XII. Related parties and related party transactions
1. Parent company of the Company
| Parent company | Related parties’ relationship | Company type | Place of registration | Legal representative | Nature of the business | Registered capital | Proportion of shares in the Company (%) | Proportion of voting rights in the company (%) | Final controlling party | Organization Code |
| China Changan Automobile Group Co ,Ltd. | controlling shareholder | Liability limited | Beijing | Liu Weidong | Manufacture and sale of automobiles, engine, and components | 4,582,373,700 | 22.53% | 22.53% | China South Industries Group corporation | 9111000-071093-39484 |
Main business and products: design, development, manufacturing and marketing of automobiles, motorcycles, automobilemotorcycle engines, automobile motorcycle parts and components; Sales of optical products, electronic and optoelectronicproducts,night vision equipments, information and communications equipment; technology development, technology transfer,technical consulting, technical training, technical services related to the above mentioned business; Import and export business; Assetacquisitions, recapitalization.
2. Subsidiaries
See subsidiaries in IX. Stake in other entities.
3. Other related parties
| Other related parties | Relationship |
| Changan Ford Automobile Co.,Ltd. | Joint venture |
| Changan Ford Automobile Co., Ltd. - Harbin branch | Joint venture |
| Changan Ford Automobile Co., Ltd. - Hangzhou branch | Joint venture |
| Changan Mazda Automobile Co.,Ltd. | Joint venture |
| Changan Mazda Engine Co., Ltd. | Joint venture |
| Jiangling Holding Co., Ltd. | Joint venture |
| Jiangling Holding Landwind Plant | Joint venture |
| Changan PSA Automobiles Co., Ltd. | Joint venture |
| Changan Weilai New Energy Automobile Technology Co., Ltd. | Joint venture |
| Changan Automobile Finance Co., Ltd. | Associated enterprise |
| Hainan Anxinxing Information Technology Co., Ltd. | Associated enterprise |
| Nanjing Chelai Travel Technology Co., Ltd. | Associated enterprise |
| Chongqing Changan Kuayue Automobile Co., Ltd. | Associated enterprise |
| Hangzhou Chelizi Intelligent Technology Co., Ltd. | Associated enterprise |
| Beijing Fangan Xinyue Taxi Co., Ltd. | Associated enterprise |
| Hunan Guoxin Semiconductor Technology Co., Ltd. | Associated enterprise |
| Chongqing Changan Kuayue Automobile Marketing Co., Ltd. | Associated enterprise |
| Chongqing Changan Industrial (Group) Co., Ltd. | Subordinate company of South Industries |
| Chongqing Changan Real Estate Development Co., Ltd. | Subordinate company of Changan Industries |
| Chongqing Changan Construction Engineering Co., Ltd. | Subordinate company of Changan Industries |
| Sichuan Hongguang Machinery and Electrics Co., Ltd. | Subordinate company of Changan Industries |
| Chongqing Changan Property Management Co., Ltd. | Subordinate company of Changan Industries |
| China Changan Automobile Co., Ltd. | Parent company |
| China Changan Automobile Co., Ltd. – Chongqing Qingshan Transmission Branch | Branch of China Changan |
| Sichuan Jianan Industrial Co., Ltd. | Subordinate company of China Changan |
| Sichuan Jian'an Industrial Co., Ltd. - Chengdu Jianan Axle Branch | Subordinate company of China Changan |
| South Air International Co.,Ltd. | Subordinate company of China Changan |
| Sichuan Ningjiang Shanchuan Machinery Co, Ltd. | Subordinate company of China Changan |
| Sichuan Ningjiang Shanchuan Machinery Co, Ltd. - Longchang Shock Absorber Branch | Subordinate company of China Changan |
| Other related parties | Relationship |
| Chengdu Huachuan Electric Equipment Co., Ltd. | Subordinate company of China Changan |
| Chongqing Automobile Air-Conditioning Co., Ltd. | Subordinate company of China Changan |
| Csgc Trw Chassis Systems Co.,Ltd. | Subordinate company of China Changan |
| Chongqing Changan Min Sheng Logistics Co., Ltd. | Subordinate company of China Changan |
| Chongqing Changan Min Sheng Logistics Co., Ltd. - Yubei branch | Subordinate company of China Changan |
| Chongqing Wanyou Auto Sales and Service Co., Ltd. | Subordinate company of China Changan |
| Chongqing Wanyou Longrui Auto Sales and Service Co., Ltd. | Subordinate company of China Changan |
| Chongqing Wanyou Longxing Auto Sales and Service Co., Ltd. | Subordinate company of China Changan |
| Guangxi Wanyou Auto Sales and Service Co., Ltd. | Subordinate company of China Changan |
| Nanning Wanyou Auto Sales and Service Co., Ltd. | Subordinate company of China Changan |
| Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. | Subordinate company of China Changan |
| Chengdu Wanyou Trading Co., Ltd. | Subordinate company of China Changan |
| Hafei Motor Co., Ltd. | Subordinate company of China Changan |
| Chongqing Anfu Automobile Marketing Co., Ltd. | Subordinate company of China Changan |
| China Changan Automobile Group Tianjin Sales Co., Ltd. | Subordinate company of China Changan |
| Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. | Subordinate company of China Changan |
| Harbin Dongan Auto Engine Co., Ltd. | Subordinate company of China Changan |
| Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | Subordinate company of China Changan |
| United Prosperity Investment Co., Ltd (Hongkong) | Subordinate company of China Changan |
| United Prosperity Investment Co., Ltd (Shenzhen) | Subordinate company of China Changan |
| Wanyou Automobile Investment Co., Ltd. | Subordinate company of China Changan |
| Chengdu Wanyou Auto Trade Service Co., Ltd. | Subordinate company of China Changan |
| Chongqing Wanyou Economic Development Co., Ltd. | Subordinate company of China Changan |
| Chongqing Wanyou Economic Development Co., Ltd. – Changshou Branch | Subordinate company of China Changan |
| Chongqing Wanyou Economic Development Co., Ltd. – Fengdu Branch | Subordinate company of China Changan |
| Chongqing Wanyou Economic Development Co., Ltd. – JIangjin Branch | Subordinate company of China Changan |
| Chongqing Wanyou Economic Development Co., Ltd. – Qianjiang Branch | Subordinate company of China Changan |
| Chongqing Wanyou Economic Development Co., Ltd. – Dazu Branch | Subordinate company of China Changan |
| Chongqing Wanyou Economic Development Co., Ltd. – Hechuan Branch | Subordinate company of China Changan |
| Chongqing Wanyou Economic Development Co., Ltd. – Nanping Branch | Subordinate company of China Changan |
| Chongqing Wanyou Economic Development Co., Ltd. – Yongchuan Branch | Subordinate company of China Changan |
| Chongqing Wanyou Economic Development Co., Ltd. – Jiangnan Branch | Subordinate company of China Changan |
| Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
| Other related parties | Relationship |
| Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Guangxi Branch | Subordinate company of China Changan |
| Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Guizhou Branch | Subordinate company of China Changan |
| Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Parts Branch | Subordinate company of China Changan |
| Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Sichuan Branch | Subordinate company of China Changan |
| Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. –Yunnan Branch | Subordinate company of China Changan |
| Yunnan Wanyou Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
| Guizhou Wanyou Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
| Yunnan Xiangyu Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
| Chongqing Fuji Supply Chain Management Co., Ltd. | Subordinate company of China Changan |
| Panzhihua Wanyou Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
| Ya'an Wanyou Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
| Chongqing Wanyou Ducheng Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
| Chongqing Wanyou Ducheng Automobile Sales & Service Co., Ltd. –Zhongxian Branch | Subordinate company of China Changan |
| Chongqing Wanyou Xingjian Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
| Luzhou Wanyou Automobile Service Co., Ltd. | Subordinate company of China Changan |
| Luzhou Wanyou Automobile Service Co., Ltd. – Naxi Branch | Subordinate company of China Changan |
| Southern Faurecia Auto Parts Co., Ltd. | Subordinate company of China Changan |
| Chengdu Wanyou Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
| Bazhong Wanyou Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
| Liangshan Wanyou Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
| Kunming Wanning Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
| Harbin Botong Auto Parts Manufacturing Co., Ltd. | Subordinate company of China Changan |
| Chongqing Qingshan Transmission Sales Co., Ltd. | Subordinate company of South Group |
| Hubei Xiaogan Huazhong Automobile Light Co., Ltd. | Subordinate company of South Group |
| Chongqing Changrong Machinery Co., Ltd. | Subordinate company of South Group |
| Chengdu Lingchuan Special Industry Co., Ltd. | Subordinate company of South Group |
| Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. | Subordinate company of South Group |
| Chongqing Changfeng Jiquan Machinery Co., Ltd. | Subordinate company of South Group |
| Yunnan Xiyi Industries Co., Ltd. | Subordinate company of South Group |
| Chongqing Shangfang Automobile Fittings Co., Ltd. | Subordinate company of South Group |
| Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. | Subordinate company of South Group |
| Chongqing Dajiang Yuqiang Plastic Co., Ltd. | Subordinate company of South Group |
| Chongqing Jianshe Automobile Air-conditioner Co., Ltd. | Subordinate company of South Group |
| Other related parties | Relationship |
| China South Industries Group Finance Co., Ltd. | Subordinate company of South Group |
| Southwest Ordnance Industry Corporation | Subordinate company of South Group |
| Chengdu Wanyou Filter Co., Ltd. | Subordinate company of South Group |
| Chongqing Yihong Engineering Plastic Products Co., Ltd. | Subordinate company of South Group |
| Beijing Beiji Mechanical and Electrical Industry Co., Ltd. | Subordinate company of South Group |
| Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. | Subordinate company of South Group |
| Chongqing Nexteer steering system co., Ltd | Subordinate company of South Group |
| Chongqing Dajiang Jiexing Forging Co., Ltd. | Subordinate company of South Group |
| Chongqing Jialing Yimin Special Equipment Co., Ltd. | Subordinate company of South Group |
| Chengdu Guangming Tianzhong Environmental Protection Technology Co., Ltd. | Subordinate company of South Group |
| Chongqing Xiyi Automobile Connecting Rod Co., Ltd. | Subordinate company of South Group |
| Chongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd. | Subordinate company of South Group |
4. Related-party transaction
(1) Goods purchased and services received
In RMB Yuan
| Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
| Changan Ford Automobile Co.,Ltd. | Purchase of spare parts | 840,032.40 | 1,413,003.88 | No | 196,358.68 |
| Changan Ford Automobile Co.,Ltd. - Harbin branch | Purchase of spare parts | 450,451.43 | 7,674,650.72 | No | 50,332,437.64 |
| Jiangling Holding Co., Ltd. | Purchase of spare parts | - | 1,650,000.00 | No | 211,813,380.00 |
| Changan PSA Automobiles Co., Ltd. | Purchase of spare parts、Accept service | 42,367,096.09 | 246,803,700.00 | No | - |
| Chongqing Changan Kuayue Automobile Co., Ltd. | Purchase of spare parts | - | - | No | 2,185,200.00 |
| Hangzhou Chelizi Intelligent Technology Co., Ltd. | Purchase of spare parts | 3,150,482.79 | - | Yes | - |
| Chongqing Changan Industrial (Group) Co., Ltd. | Accept service | 348,568.01 | 13,678,470.17 | No | 35,491,790.41 |
| Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
| Chongqing Changan Construction Engineering Co., Ltd. | Accept service | 7,313,785.24 | 235,830,010.02 | No | 767,688.60 |
| Sichuan Hongguang Machinery and Electrics Co., Ltd. | Purchase of spare parts | 3,339,067.87 | 10,045,813.15 | No | 5,247,314.70 |
| Chongqing Changan Property Management Co., Ltd. | Accept service | 1,812,064.04 | 6,855,450.00 | No | 1,880,756.31 |
| China Changan Automobile Co., Ltd. – Chongqing Qingshan Transmission Branch | Purchase of spare parts | 455,343,757.53 | 1,682,734,997.69 | No | 790,009,094.86 |
| Sichuan Jianan Industrial Co., Ltd. | Purchase of spare parts | 353,770,028.01 | 755,184,952.97 | No | 396,002,416.92 |
| Sichuan Jian'an Industrial Co., Ltd. - Chengdu Jianan Axle Branch | Purchase of spare parts | - | - | No | -20,068.28 |
| South Air International Co.,Ltd. | Purchase of spare parts | 153,661,141.06 | 625,914,322.13 | No | 278,286,144.78 |
| Sichuan Ningjiang Shanchuan Machinery Co, Ltd. | Purchase of spare parts | 34,121,749.07 | 168,945,306.07 | No | 68,700,314.53 |
| Sichuan Ningjiang Shanchuan Machinery Co, Ltd. - Longchang Shock Absorber Branch | Purchase of spare parts | 16,894,846.23 | 6,807,066.25 | No | 14,571,788.09 |
| Chengdu Huachuan Electric Equipment Co., Ltd. | Purchase of spare parts | 130,426,180.96 | 315,692,574.27 | No | 147,010,890.28 |
| Chongqing Automobile Air-Conditioning Co., Ltd. | Purchase of spare parts | - | - | No | - |
| Csgc Trw Chassis Systems Co.,Ltd. | Purchase of spare parts | 202,875,095.90 | 759,647,453.82 | No | 302,296,647.64 |
| Chongqing Changan Min Sheng Logistics Co., Ltd. | Purchase of spare parts、Accept service | 827,152,859.32 | 2,731,929,163.09 | No | 669,938,773.76 |
| Guangxi Wanyou Auto Sales and Service Co., Ltd. | Accept service | 63,818.11 | - | No | - |
| Nanning Wanyou Auto Sales and Service Co., Ltd. | Accept service | 70,493.10 | - | No | - |
| Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. | Accept service | 248,627.10 | - | No | - |
| Chengdu Wanyou Trading Co., Ltd. | Accept service | 18,514.24 | - | No | - |
| Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
| China Changan Automobile Group Tianjin Sales Co., Ltd. | Accept service | 25,144.55 | - | No | - |
| Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. | Purchase of spare parts | 47,772,865.85 | 49,128,786.79 | No | 11,369,508.22 |
| Harbin Dongan Auto Engine Co., Ltd. | Purchase of spare parts | 420,102,474.82 | 830,544,500.95 | No | 407,727,748.76 |
| Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | Purchase of spare parts | 353,143,739.85 | 448,373,823.07 | No | 232,165,111.94 |
| Chengdu Wanyou Auto Trade Service Co., Ltd. | Accept service | 464,001.50 | - | No | - |
| Chongqing Wanyou Economic Development Co., Ltd. | Purchase of spare parts、Accept service | 134,932,176.36 | 434,639,017.58 | No | 191,811,118.53 |
| Yunnan Wanyou Automobile Sales & Service Co., Ltd. | Accept service | 1,084,974.53 | - | No | - |
| Guizhou Wanyou Automobile Sales & Service Co., Ltd. | Accept service | 986,717.54 | - | No | - |
| Yunnan Xiangyu Automobile Sales & Service Co., Ltd. | Accept service | 124,427.22 | - | No | - |
| Panzhihua Wanyou Automobile Sales & Service Co., Ltd. | Accept service | 13,092.15 | - | No | - |
| Ya'an Wanyou Automobile Sales & Service Co., Ltd. | Accept service | 128,960.48 | - | No | - |
| Chongqing Wanyou Ducheng Automobile Sales & Service Co., Ltd. | Accept service | 327,791.37 | - | No | - |
| Chongqing Wanyou Xingjian Automobile Sales & Service Co., Ltd. | Accept service | 257,093.48 | - | No | - |
| Luzhou Wanyou Automobile Service Co., Ltd. | Accept service | 20,198.04 | - | No | - |
| Southern Faurecia Auto Parts Co., Ltd. | Purchase of spare parts | 114,560,039.57 | 501,336,000.00 | No | - |
| Bazhong Wanyou Automobile Sales & Service Co., Ltd. | Accept service | 14,698.71 | - | No | - |
| Liangshan Wanyou Automobile Sales & Service Co., Ltd. | Accept service | 40,679.82 | - | No | - |
| Chongqing Qingshan Transmission Sales Co., Ltd. | Purchase of spare parts | 3,559,602.32 | 6,189,337.21 | No | 3,372,342.00 |
| Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
| Hubei Xiaogan Huazhong Automobile Light Co., Ltd. | Purchase of spare parts | 46,683,372.83 | 76,474,295.70 | No | 41,165,671.16 |
| Chongqing Changrong Machinery Co., Ltd. | Purchase of spare parts | 6,433,171.02 | 17,359,212.30 | No | 12,476,284.96 |
| Chengdu Lingchuan Special Industry Co., Ltd. | Purchase of spare parts | 9,930,016.99 | 17,737,916.16 | No | 16,648,659.65 |
| Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. | Purchase of spare parts | 18,186,753.45 | 75,940,339.34 | No | 36,629,643.10 |
| Chongqing Changfeng Jiquan Machinery Co., Ltd. | Purchase of spare parts | 10,396,114.98 | 29,026,088.70 | No | 11,501,147.75 |
| Yunnan Xiyi Industries Co., Ltd. | Purchase of spare parts | 30,665,985.08 | 105,955,263.92 | No | 50,426,409.01 |
| Chongqing Shangfang Automobile Fittings Co., Ltd. | Purchase of spare parts | 15,447,216.43 | 49,476,726.42 | No | 25,730,159.90 |
| Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. | Purchase of spare parts | 7,009,231.20 | 160,146,161.27 | No | 81,105,898.94 |
| Chongqing Dajiang Yuqiang Plastic Co., Ltd. | Purchase of spare parts | 70,660,688.47 | 298,706,005.96 | No | 161,444,150.25 |
| Chongqing Jianshe Automobile Air-conditioner Co., Ltd. | Purchase of spare parts | 45,884,509.86 | 110,624,360.16 | No | 44,409,783.45 |
| Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. | Purchase of spare parts | 56,809,638.72 | 156,971,238.84 | No | 93,328,718.59 |
| Chongqing Yihong Engineering Plastic Products Co., Ltd. | Purchase of spare parts | 3,943,111.25 | 23,641,386.70 | No | 14,426,634.47 |
| Beijing Beiji Mechanical and Electrical Industry Co., Ltd. | Purchase of spare parts | 21,611.25 | 1,163,002.81 | No | 41,364.74 |
| Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. | Purchase of spare parts | 6,120,347.20 | 18,699,132.68 | No | 7,735,029.09 |
| Chongqing Nexteer steering system co., Ltd | Purchase of spare parts | 319,878,978.48 | 663,918,298.44 | No | 307,967,283.63 |
| Chongqing Dajiang Jiexing Forging Co., Ltd. | Purchase of spare parts | 1,178,761.66 | 3,243,514.03 | No | 778,239.55 |
| Chengdu Guangming Tianzhong Environmental Protection Technology | Purchase of spare parts | -1,885.21 | - | No | -1,771.14 |
| Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
| Co., Ltd. | |||||
| Chongqing Xiyi Automobile Connecting Rod Co., Ltd. | Purchase of spare parts | -5,769.12 | - | No | -4,295.93 |
| Chongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd. | Purchase of spare parts | 58,201,499.62 | - | No | - |
| Chongqing Changan Suzuki Automobile Co., Ltd. | Purchase of spare parts | - | - | No | 40,015,153.39 |
| Total | 4,019,270,690.83 | 11,650,101,343.24 | 4,766,980,922.93 | ||
The price of the Group’s purchase from related parties is based on contracts agreed by both parties.Note：The company calculated the actual amount of related party transactions according to the related parties under the same controlof the South Group, and compared with the transaction amount approved at the beginning of the year.
(2) Goods sold and services offered
In RMB Yuan
| Related parties | Nature of the transaction | Current amount | Prior-period Amount |
| Changan Ford Automobile Co.,Ltd. | Sales of spare parts、staff support | 856,061.60 | 959,683.96 |
| Changan Ford Automobile Co.,Ltd. - Harbin branch | Sales of spare parts、staff support | - | - |
| Changan Ford Automobile Co., Ltd. - Hangzhou branch | Sales of spare parts、staff support | 20.37 | |
| Changan Mazda Automobile Co.,Ltd. | Sales of spare parts | 2,683,010.71 | 1,064,339.48 |
| Changan Mazda Engine Co., Ltd. | Training fee | 12,830.19 | - |
| Jiangling Holding Co., Ltd. | Sales of spare parts、staff support | - | 92,466,850.38 |
| Nanjing Chelai Travel Technology Co., Ltd. | Car rental income | 50,442.48 | |
| Chongqing Changan Kuayue Automobile Co., Ltd. | Income from trademark right | 5,913.00 | 26,078.68 |
| Hangzhou Chelizi Intelligent Technology Co., Ltd. | Car rental income | 8,193,799.97 | |
| Chongqing Changan Industrial (Group) Co., Ltd. | Sales of spare parts | 312,427.84 | - |
| Chongqing Changan Construction Engineering Co., Ltd. | Electricity fee | 19,563.79 | - |
| Sichuan Hongguang Machinery and Electrics Co., Ltd. | Sales of spare parts | 804,913.61 | 965,831.85 |
| China Changan Automobile Co., Ltd. – Chongqing Qingshan Transmission | Sales of vehicles and spare parts | 270,959.66 | 3,754.72 |
| Related parties | Nature of the transaction | Current amount | Prior-period Amount |
| Branch | |||
| Sichuan Jianan Industrial Co., Ltd. | Sales of spare parts | - | 3,754.72 |
| South Air International Co.,Ltd. | Sales of vehicles and spare parts | - | 4,708.49 |
| Sichuan Ningjiang Shanchuan Machinery Co, Ltd. | Sales of vehicles and spare parts | - | 3,754.72 |
| Csgc Trw Chassis Systems Co.,Ltd. | Sales of vehicles and spare parts | - | 3,754.72 |
| Chongqing Changan Min Sheng Logistics Co., Ltd. | Sales of spare parts、Training fee | 9,384,009.45 | 49,034,525.61 |
| Chongqing Changan Min Sheng Logistics Co., Ltd. – Yubei Branch | Electricity fee | 292,914.38 | |
| Guangxi Wanyou Auto Sales and Service Co., Ltd. | Sales of vehicles and spare parts | 41,791,580.46 | 79,266,636.74 |
| Nanning Wanyou Auto Sales and Service Co., Ltd. | Sales of vehicles and spare parts | 17,029,211.44 | 18,660,666.94 |
| Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. | Sales of vehicles and spare parts | 414,364,744.60 | 564,089,962.66 |
| Chongqing Anfu Automobile Marketing Co., Ltd. | Sales of vehicles | 34,296,238.49 | 4,504,052.51 |
| China Changan Automobile Group Tianjin Sales Co., Ltd. | Sales of vehicles and spare parts | 62,048,690.92 | 96,595,781.73 |
| Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. | Sales of spare parts | 559,797.07 | - |
| Harbin Dongan Auto Engine Co., Ltd. | Sales of spare parts | 6,860,735.86 | 5,807,864.29 |
| Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | Sales of spare parts | 11,294,757.38 | 541,580.93 |
| Wanyou Automobile Investment Co., Ltd. | Sales of vehicles and spare parts | 194,731,627.80 | 278,840,354.88 |
| Chengdu Wanyou Auto Trade Service Co., Ltd. | Sales of vehicles and spare parts | 173,518,730.23 | 307,793,749.81 |
| Chongqing Wanyou Economic Development Co., Ltd. | Sales of vehicles and spare parts | 392,673,110.16 | 466,874,730.20 |
| Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Guangxi Branch | Sales of vehicles and spare parts | 34,904.51 | |
| Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Guizhou Branch | Sales of vehicles and spare parts | 9,017.16 | |
| Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Parts Branch | Sales of vehicles and spare parts | 8,275.85 | |
| Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Sichuan Branch | Sales of vehicles and spare parts | 85,343.02 |
| Related parties | Nature of the transaction | Current amount | Prior-period Amount |
| Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. –Yunnan Branch | Sales of vehicles and spare parts | 210,147,045.26 | 318,109,175.14 |
| Yunnan Wanyou Automobile Sales & Service Co., Ltd. | Sales of vehicles and spare parts | 7,825,827.75 | 12,136,503.95 |
| Guizhou Wanyou Automobile Sales & Service Co., Ltd. | Sales of vehicles and spare parts | 27,281,012.14 | 27,679,119.48 |
| Yunnan Xiangyu Automobile Sales & Service Co., Ltd. | Sales of vehicles and spare parts | 57,120,893.29 | 58,340,829.40 |
| Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Guangxi Branch | Sales of vehicles and spare parts | 41,796,231.44 | 57,749,959.33 |
| Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Guizhou Branch | Sales of vehicles and spare parts | 16,106,957.12 | 41,553,601.57 |
| Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Parts Branch | Sales of vehicles and spare parts | 309,384,958.88 | 350,671,270.23 |
| Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Sichuan Branch | Sales of vehicles and spare parts | 347,551,447.54 | 452,909,126.31 |
| Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. –Yunnan Branch | Sales of vehicles and spare parts | 45,082,563.98 | 67,497,061.87 |
| Panzhihua Wanyou Automobile Sales & Service Co., Ltd. | Sales of vehicles and spare parts | - | 11,045.54 |
| Ya'an Wanyou Automobile Sales & Service Co., Ltd. | Sales of vehicles and spare parts | - | 16,589.56 |
| Chongqing Wanyou Ducheng Automobile Sales & Service Co., Ltd. | Sales of vehicles and spare parts | - | 72,903.23 |
| Chongqing Wanyou Ducheng Automobile Sales & Service Co., Ltd. – Zhongxian Branch | Sales of vehicles and spare parts | 5,998.70 | |
| Chongqing Wanyou Xingjian Automobile Sales & Service Co., Ltd. | Sales of vehicles and spare parts | - | 71,605.18 |
| Luzhou Wanyou Automobile Service Co., Ltd. | Sales of vehicles and spare parts | - | 53,390.03 |
| Chengdu Wanyou Automobile Sales & Service Co., Ltd. | Sales of vehicles and spare parts | 3,373,560.20 | |
| Chongqing Changrong Machinery Co., Ltd. | Sales of spare parts | 124,339.62 | 3,754.72 |
| Chengdu Lingchuan Special Industry Co., Ltd. | Sales of spare parts | 2,011.39 | 10,007.55 |
| Related parties | Nature of the transaction | Current amount | Prior-period Amount |
| Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. | Sales of spare parts | 1,362,120.82 | - |
| Yunnan Xiyi Industries Co., Ltd. | Sales of vehicles and spare parts | 2,876,531.50 | 4,070,438.35 |
| Chongqing Shangfang Automobile Fittings Co., Ltd. | Sales of vehicles and spare parts | 20,037.74 | 35,037.74 |
| Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. | Sales of vehicles and spare parts | - | - |
| Chongqing Dajiang Yuqiang Plastic Co., Ltd. | Sales of vehicles and spare parts | 345,391.14 | - |
| Chongqing Jianshe Automobile Air-conditioner Co., Ltd. | Sales of vehicles and spare parts | 12,037.74 | 3,754.72 |
| China South Industries Group Finance Co., Ltd. | Sales of vehicles and spare parts | 1,260,010.87 | 5,333,618.49 |
| Southwest Ordnance Industry Corporation | Sales of vehicles and spare parts | - | |
| Chengdu Wanyou Filter Co., Ltd. | Sales of vehicles and spare parts | 76,460.18 | 3,754.72 |
| Chongqing Yihong Engineering Plastic Products Co., Ltd. | Sales of vehicles and spare parts | 943.30 | - |
| Chongqing Changan Suzuki Automobile Co., Ltd. | Sales of raw materials and spare parts | - | 9,470,279.42 |
| Total | 2,443,950,012.60 | 3,373,315,244.55 | |
The price of the Group’s purchase from related parties is based on contracts agreed by both parties.
(3) Related-party leasing
Rent assets to related parties
In RMB Yuan
| Lessee | Type of leased assets | Starting date | Expiring date | Report period recognized rental |
| Jiangling Holdings Co., Ltd. | A102 production line | 2017.04.01 | 2019.03.31 | 1,889,756.40 |
| Chongqing Changan Industrial (Group) Co., Ltd. | Building | 2018.01.01 | 2032.12.31 | 3,283,373.71 |
Rent assets from related parties
In RMB Yuan
| Lessor | Type of leased assets | Starting date | Expiring date | Report period recognized rental |
| Chongqing Changan Real Estate Development Co., Ltd. | Building | 2019.1.1 | 2019.6.30 | 483,861.90 |
| Chongqing Changan Min Sheng Logistics Co., Ltd. – Hebei Branch | Storeroom | 2019.1.1 | 2019.12.31 | 364,466.04 |
| Chongqing Changan Real Estate Development Co., Ltd. | Site | 2019.1.1 | 2019.5.31 | 668,740.00 |
| Chongqing Changan Min Sheng Logistics Co., Ltd. | Storeroom | 2018.9.20（Kunming） | 2019.9.19（Kunming） | 2,599,542.98 |
| 2018.9.6（Guangzhou） | 2019.9.5（Guangzhou） | |||
| Chongqing Changan Min Sheng Logistics Co., Ltd. | Storeroom | 2018.1.1 | 2018.12.31 | 6,000,000.00 |
| Chongqing Changan Min Sheng Logistics Co., Ltd. | Storeroom | 2018.9.4 | 2018.11.3（Beijing） | 1,153,170.00 |
| 2018.9.6 | 2018.10.15（CHongqing） |
(4) Other related transactions
Integrated service charges
In RMB Yuan
| Related parties | Nature of the transaction | Report period Amount | Same period of last period Amount |
| Changan Industries (Group) Co. Ltd | Payment of land rental fees | 13,960,191.76 | 15,738,619.47 |
| Payment of building rental fees | 2,320,098.28 | 2,320,098.28 | |
| Payment of utilities | 41,936,461.05 | 41,238,737.71 | |
| Payment of fire fighting fees | |||
| Others | 5,598,032.75 | 2,604,188.16 | |
| Total | 63,814,783.84 | 61,901,643.62 | |
Purchase of project materials
In RMB Yuan
| Related parties | Report period Amount | Same period of last period Amount |
| Chongqing Changan Construction Co., Ltd | 219,003,991.17 | 285,684,556.02 |
| Chongqing Changan Min Sheng Logistics Co., Ltd. | 510,059.11 | 362,735.93 |
| Changan Industries (Group) Co. Ltd | 6,163.00 | - |
| Chongqing wanyou engineering installation co., ltd | - | 49,273,687.28 |
| Total | 219,520,213.28 | 335,320,979.23 |
Staff expenses for technical supporting
In RMB Yuan
| Related parties | Report period Amount | Same period of last period Amount |
| Changan Mazda Automobile Co.,Ltd. | 7,242,531.36 | 5,113,134.48 |
| Changan Ford Automobile Co.,Ltd. | 10,419,283.74 | 10,500,543.45 |
| Changan Mazda Engine Co., Ltd. | 833,481.46 | - |
| Jiangling Holding Co., Ltd. | 884,649.40 | - |
| Changan PSA Automobiles Co., Ltd. | 242,271.06 | - |
| Hainan Anxinxing Information Technology Co., Ltd. | 652,302.36 | - |
| Changan Ford Automobile Co.,Ltd. | - | 1,539,750.64 |
| Total | 20,274,519.38 | 17,153,428.57 |
Techonology development service charges
In RMB Yuan
| Related parties | Report period Amount | Same period of last period Amount |
| Jiangling Holdings Co., Ltd. | 1,886,792.45- | |
| Changan Ford Automobile Co.,Ltd. | 769,811.32 | - |
| Harbin Dongan Auto Engine Co., Ltd. | 11,320,754.71 | - |
| Total | 12,090,566.03 | 1,886,792.45- |
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. | 8,689,641.51 | 6,483,396.23 |
Related party monetary funds
In RMB Yuan
| Related parties | Ending Amount | Beginning Amount |
| China South Industries Group Finance Co., Ltd | 4,716,330,300.07 | 3,312,617,903.21 |
| Changan Automobile Finance Co., Ltd | 500,000,000.00 | 1,000,000,000.00 |
In the first half of 2019, the annual rate of return of the company in the financial limited liability company of China South IndustriesGroup Finance Co., Ltd and Changan automobile finance co., ltd is 1.97% and 3.77 % respectively.
BorrowingShort-term borrowing
In RMB Yuan
| Related parties | Ending Amount | Beginning Amount |
| China South Industries Group Finance Co., Ltd | 210,000,000.00 | 190,000,000.00 |
Interest income of deferred payment
In RMB Yuan
| Related parties | Report period Amount | Same period of last period Amount |
| Wanyou Automobile Investment Co., Ltd. | 0.00 | 2,186.32 |
| Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. | 373,037.00 | 116,762.05 |
| China Changan Automobile Group Tianjin Sales Co., Ltd. | 14,735.00 | 8,617.09 |
| Chengdu Wanyou Auto Trade Service Co., Ltd. | 193,056.00 | 48,452.99 |
| Yunnan Wanyou Automobile Sales & Service Co., Ltd. | 349,378.00 | 64,533.33 |
| Guizhou Wanyou Automobile Sales & Service Co., Ltd. | 97,614.00 | 28,282.91 |
| Guangxi Wanyou Automobile Sales & Service Co., Ltd. | 64,825.00 | 0.00 |
| Nanning Wanyou Automobile Sales & Service Co., Ltd. | 34,018.00 | 0.00 |
| Chongqing Wanyou Economic Development Co., Ltd. | 90,192.00 | 0.00 |
| Chongqing Wanyou Economic Development Co., Ltd. - Jiangnan Branch | 63,363.00 | 0.00 |
| Yunnan Xiangyu Auto Sales and Service Co., Ltd. | 78,469.00 | 0.00 |
| Total | 1,358,687.00 | 268,834.69 |
5. Payment and receivables of related parties
Payment receivables of related listed companies
In RMB Yuan
| Items | Related parties | Ending balance | Beginning balance | ||
| Book balance | Provision for bad-debts | Book balance | Provision for bad-debts | ||
| Notes receivable | Wanyou Automobile Investment Co., Ltd. | 1,082,530,000.00 | - | 1,588,720,000.00 | - |
| Notes receivable | Chongqing Wanyou Economic Development Co., Ltd. | - | - | 9,050,000.00 | - |
| Notes receivable | Yunnan Wanyou Automobile Sales and Service Co., Ltd | - | - | 5,000,000.00 | - |
| Notes receivable | Changan Ford Automobile Co.,Ltd. | - | - | 2,128,658.11 | - |
| Notes receivable | Chongqing Changan Kuayue Automobile Marketing Co., Ltd. | 7,000,000.00 | - | - | - |
| Items | Related parties | Ending balance | Beginning balance | ||
| Book balance | Provision for bad-debts | Book balance | Provision for bad-debts | ||
| Notes receivable | Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | 778,139.65 | - | - | - |
| Subtotal | 1,090,308,139.65 | - | 1,604,898,658.11 | - | |
| Account receivable | Jiangling Holding Co., Ltd. | 61,931,302.44 | - | 54,670,170.21 | - |
| Account receivable | Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | 8,604,540.60 | - | 32,628,379.07 | - |
| Account receivable | Changan Ford Automobile Co.,Ltd. | 182,374.15 | - | 26,562,801.86 | - |
| Account receivable | Chongqing Changan Minsheng Logistics Co., Ltd | 29,333,952.45 | - | 24,295,732.61 | - |
| Account receivable | Chongqing Changan Kuayue Automobile Co., Ltd. | 12,567,120.00 | - | 13,567,425.09 | - |
| Account receivable | Changan PSA Automobiles Co., Ltd. | 61,126,194.06 | - | 9,377,634.60 | - |
| Account receivable | Yunnan Wanyou Automobile Sales & Service Co., Ltd. | 507,107.71 | - | 8,494,704.49 | - |
| Account receivable | Chengdu Wanyou Trading Co., Ltd. | - | - | 5,610,252.52 | - |
| Account receivable | Hangzhou Chelizi Intelligent Technology Co., Ltd. | 9,741,647.00 | - | 5,564,800.00 | - |
| Account receivable | Changan Mazda Engine Co., Ltd. | - | - | 4,228,792.00 | - |
| Account receivable | Chongqing Changan Property Management Co., Ltd. | - | - | 426,120.00 | - |
| Account receivable | Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. | - | - | 65,804.25 | - |
| Account receivable | Chongqing Changan Industrial (Group) Co., Ltd. | 651,664.44 | - | - | - |
| Account receivable | Harbin Dongan Auto Engine Co., Ltd. | 13,200.00 | - | - | - |
| Account receivable | Chongqing Changrong Machinery Co., Ltd. | 131,800.00 | - | - | - |
| Account | Chongqing Shangfang Automobile Fittings | 17,260.00 | - | - | - |
| Items | Related parties | Ending balance | Beginning balance | ||
| Book balance | Provision for bad-debts | Book balance | Provision for bad-debts | ||
| receivable | Co., Ltd. | ||||
| Account receivable | Chongqing Jianshe Automobile Air-conditioner Co., Ltd. | 12,760.00 | - | - | - |
| Subtotal | 184,820,922.85 | - | 185,492,616.70 | - | |
| Other receivable | Changan Ford Automobile Co.,Ltd. | - | - | 124,312,677.99 | - |
| Other receivable | Hafei Motor Co., Ltd. | - | - | 1,500,000.00 | - |
| Other receivable | Harbin Dongan Auto Engine Co., Ltd. | 286,000.00 | - | 268,000.00 | - |
| Other receivable | Chongqing Changan Minsheng Logistics Co., Ltd | - | - | 47,975.40 | - |
| Other receivable | Changan Ford Automobile Co., Ltd. - Harbin branch | 124,312,677.99 | |||
| Subtotal | 124,598,677.99 | - | 126,128,653.39 | - | |
| Advanced payment | Changan PSA Automobiles Co., Ltd. | 8,826,473.38 | - | 8,826,473.38 | - |
| Advanced payment | Guangxi Wanyou Auto Sales and Service Co., Ltd. | - | 124,497.13 | - | |
| Subtotal | 8,826,473.38 | - | 8,950,970.51 | - | |
Accounts payable to related parties of listed companies
In RMB Yuan
| Items | Related parties | Ending balance | Beginning balance |
| Notes payable | Harbin Dongan Auto Engine Co., Ltd. | 403,600,000.00 | 460,430,000.00 |
| Notes payable | Chongqing Jianshe Automobile Air-conditioner Co., Ltd. | 259,560,057.89 | 298,387,280.00 |
| Notes payable | Chongqing Changan Minsheng Logistics Co., Ltd | 209,934,301.71 | 221,925,743.41 |
| Notes payable | South Air International Co.,Ltd. | 128,210,000.00 | 149,430,000.00 |
| Notes | China Changan Automobile Co., Ltd. –Chongqing Qingshan Transmission | 4,330,000.00 | 130,270,000.00 |
| Items | Related parties | Ending balance | Beginning balance |
| payable | Branch | ||
| Notes payable | Chongqing Dajiang Yuqiang Plastic Co., Ltd. | 86,280,000.00 | 127,940,000.00 |
| Notes payable | Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | 217,660,000.00 | 112,940,000.00 |
| Notes payable | Chongqing Jianshe Automobile Air-conditioner Co., Ltd. | 49,270,000.00 | 50,060,000.00 |
| Notes payable | Chengdu Wanyou Filter Co., Ltd. | 31,590,000.00 | 23,950,000.00 |
| Notes payable | Southern Faurecia Auto Parts Co., Ltd. | 10,350,000.00 | 22,090,000.00 |
| Notes payable | Hubei Xiaogan Huazhong Auto Lamp Co., Ltd. | 17,800,000.00 | 13,860,000.00 |
| Notes payable | Sichuan Ningjiang Shanchuan Machinery Co., Ltd. | 11,080,000.00 | 9,160,000.00 |
| Notes payable | Sichuan Jianan Industrial Co., Ltd. | 12,400,000.00 | 8,650,000.00 |
| Notes payable | Chengdu Lingchuan Special Industry Co., Ltd. | 10,490,000.00 | 8,000,000.00 |
| Notes payable | Chongqing Changfeng Jiquan Machinery Co., Ltd. | 590,000.00 | 7,900,000.00 |
| Notes payable | Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. | 8,050,000.00 | 7,270,000.00 |
| Notes payable | Chongqing Yihong Engineering Plastic Products Co., Ltd. | 1,540,000.00 | 4,500,000.00 |
| Notes payable | Chengdu Huachuan Electric Equipment Co., Ltd. | 3,920,000.00 | 2,490,000.00 |
| Notes payable | Sichuan Hongguang Automobile Electrical Co., Ltd. | 1,360,000.00 | 2,240,000.00 |
| Notes payable | Changan Ford Automobile Co.,Ltd. | 0.00 | 1,749,094.40 |
| Notes payable | Sichuan Ningjiang Shanchuan Machinery Co., Ltd. Longchang Shock Absorber Branch | 2,900,000.00 | 1,370,000.00 |
| Notes payable | Chongqing Shangfang Auto Parts Co., Ltd. | 1,530,000.00 | 1,150,000.00 |
| Notes | Chongqing Dajiang Jiexin Forging Co., Ltd. | 0.00 | 1,120,000.00 |
| Items | Related parties | Ending balance | Beginning balance |
| payable | |||
| Notes payable | Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. | 14,640,000.00 | |
| 小计 | 1,487,084,359.60 | 1,666,882,117.81 | |
| Account payable | Chongqing Nexteer steering system co., Ltd | 248,328,304.82 | 249,837,358.48 |
| Account payable | Harbin Dongan Auto Engine Co., Ltd. | 173,010,450.18 | 161,417,419.68 |
| Account payable | Csgc Trw Chassis Systems Co.,Ltd. | 67,760,931.46 | 106,558,182.07 |
| Account payable | China Changan Automobile Co., Ltd. –Chongqing Qingshan Transmission Branch | 106,037,264.34 | 104,125,292.03 |
| Account payable | Sichuan Jianan Industrial Co., Ltd. | 59,919,255.16 | 80,657,220.16 |
| Account payable | Southern Inte Air Conditioning Co., Ltd. | 47,832,555.32 | 76,175,712.19 |
| Account payable | Chongqing Wanyou Economic Development Co., Ltd. | 53,619,585.33 | 66,540,872.82 |
| Account payable | Jiangling Holding Co., Ltd. | 102,373.73 | 53,715,373.73 |
| Account payable | Chongqing Dajiang Yugqiang Plastic Products Co., Ltd. | 15,704,492.67 | 46,084,064.75 |
| Account payable | Chongqing Dajiang Xinda Automobile Co., Ltd. | 1,764,432.05 | 45,780,498.50 |
| Account payable | Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | 50,632,826.43 | 44,767,814.32 |
| Account payable | Southern Faurecia Auto Parts Co., Ltd. | 32,430,193.79 | 41,239,427.48 |
| Account payable | Chengdu Huachuan Electric Equipment Co., Ltd. | 13,820,646.03 | 33,208,038.95 |
| Account payable | Chongqing Changan Minsheng Logistics Co., Ltd | 9,706,700.97 | 27,674,139.19 |
| Account payable | Chongqing Jianshe Automobile Air-conditioner Co., Ltd. | 18,028,522.00 | 27,597,844.39 |
| Account payable | Chengdu Ningjiang Zhaohe Auto Parts Co., Ltd. | 36,111,454.21 | 24,826,794.96 |
| Items | Related parties | Ending balance | Beginning balance |
| Account payable | Hubei Xiaogan Huazhong Automobile Light Co., Ltd. | 13,981,161.02 | 21,513,647.99 |
| Account payable | Chengdu Wanyou Filter Co., Ltd. | 19,377,897.54 | 21,426,685.22 |
| Account payable | Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. | 9,751,045.39 | 17,663,383.80 |
| Account payable | Sichuan Ningjiang Shanchuan Machinery Co., Ltd. | 13,074,343.68 | 17,161,138.52 |
| Account payable | Chongqing Changfeng Jiyu Machinery Co., Ltd. | 10,197,431.07 | 9,917,256.01 |
| Account payable | Sichuan Ningjiang Shanchuan Machinery Co, Ltd. - Longchang Shock Absorber Branch | 2,448,737.54 | 9,586,665.78 |
| Account payable | Chongqing Shangfang Auto Parts Co., Ltd. | 5,462,008.12 | 9,100,420.32 |
| Account payable | Chengdu Lingchuan Special Industry Co., Ltd. | 1,934,670.34 | 8,664,902.18 |
| Account payable | Yunnan Xiyi Industries Co., Ltd. | 8,831,367.95 | 6,535,900.15 |
| Account payable | Chongqing Qingshan Transmission Sales Co., Ltd. | 5,254,023.60 | 5,262,876.71 |
| Account payable | Changan Ford Automobile Co., Ltd | 0.00 | 4,085,436.29 |
| Account payable | Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. | 1,658,863.93 | 2,709,675.36 |
| Account payable | Chongqing Changrong Machinery Co., Ltd. | 1,576,019.76 | 2,686,306.64 |
| Account payable | Chongqing Yihong Engineering Plastic Products Co., Ltd. | 1,271,100.45 | 2,524,005.52 |
| Account payable | Changan Industries Group Co. Ltd | 204,484.37 | 2,215,125.47 |
| Account payable | Chongqing Changan Kuayue Automobile Co., Ltd. | 0.00 | 1,263,841.59 |
| Account payable | Sichuan Hongguang Automobile Electrical Co., Ltd. | 811,045.59 | 1,187,095.50 |
| Account payable | Hafei Automobile Co., Ltd. | 661,117.68 | 661,117.68 |
| Items | Related parties | Ending balance | Beginning balance |
| Account payable | Chongqing Dajiang Jiexin Forging Co., Ltd. | 695,944.05 | 282,878.46 |
| Account payable | Chongqing Automobile Air Conditioner Co., Ltd. | 205,041.51 | 177,312.15 |
| Account payable | Chongqing Changan Construction Co., Ltd | 5,063.37 | 119,514.45 |
| Account payable | Chongqing Jialing Yimin Special Equipment Co., Ltd. | 104,496.50 | 104,496.50 |
| Account payable | Chengdu Guangming Tianzhong Environmental Protection Technology Co., Ltd. | 83,316.71 | 85,473.47 |
| Account payable | Chongqing Xiyi Automobile Connecting Rod Co., Ltd. | 46,793.40 | 67,466.78 |
| Account payable | Changan Ford Automobile Co., Ltd哈尔滨分公司 | 3,483,034.37 | - |
| Account payable | Changan PSA Automobiles Co., Ltd. | 343,350,344.94 | - |
| Account payable | Hangzhou Chelizi Intelligent Technology Co., Ltd. | 3,024,321.25 | - |
| Account payable | Changan Automobile Group Co ,Ltd. | 0.00 | - |
| Account payable | Beijing Beiji Mechanical and Electrical Industry Co., Ltd. | 8,968.78 | - |
| Account payable | Chongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd. | 27,774,621.58 | - |
| Subtotal | 1,410,087,252.98 | 1,335,208,676.24 | |
| Advance receipts | Chongqing Wanyou Economic Development Co., Ltd. | 60,085,551.48 | 30,602,220.89 |
| Advance receipts | Guizhou Wanyou Automobile Sales & Service Co., Ltd. | 8,712,314.88 | 24,770,462.88 |
| Advance receipts | Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. | 47,181,483.86 | 23,961,768.86 |
| Advance receipts | Chongqing Changan Kuayue Automobile Co., Ltd | 0.00 | 9,833,525.00 |
| Advance receipts | China Changan Automobile Group Tianjin Sales Co., Ltd. | 2,829,066.78 | 7,694,948.94 |
| Advance | Yunnan Wanyou Automobile Sales & Service Co., Ltd. | 0.00 | 6,741,068.88 |
| Items | Related parties | Ending balance | Beginning balance |
| receipts | |||
| Advance receipts | Changan Industries Group Co. Ltd. | 0.00 | 5,289,712.91 |
| Advance receipts | Changan Ford Mazda Engine Co., Ltd. | 3,256,185.92 | 3,347,884.03 |
| Advance receipts | Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. | 10,474,248.06 | 2,874,902.88 |
| Advance receipts | Guangxi Wanyou Auto Sales and Service Co., Ltd. | 2,452,974.14 | 2,031,019.64 |
| Advance receipts | Chongqing Anfu Automobile Marketing Co., Ltd. | 7,557,144.00 | 1,764,144.00 |
| Advance receipts | Chengdu Wanyou Auto Trade Service Co., Ltd. | 12,626,321.30 | 1,031,647.35 |
| Advance receipts | Nanning Wanyou Auto Sales and Service Co., Ltd. | 978,391.87 | 1,000,769.87 |
| Advance receipts | Yunnan Xiangyu Automobile Sales & Service Co., Ltd. | 603,506.67 | 820,739.67 |
| Advance receipts | Hafei Motor Co., Ltd. | 670,500.00 | 670,500.00 |
| Advance receipts | Wanyou Automobile Investment Co., Ltd. | 4,543,310.00 | 394,254.00 |
| Advance receipts | Kunming Wanning Automobile Sales & Service Co., Ltd. | 0.00 | 36,548.04 |
| Advance receipts | Chongqing Shangfang Auto Parts Co., Ltd. | 0.00 | 3,980.00 |
| Advance receipts | Kunming Wanning Automobile Sales & Service Co., Ltd. | 0.00 | 2,037.62 |
| Advance receipts | Luzhou Wanyou Automobile Service Co., Ltd. | 0.00 | 121.00 |
| Advance receipts | Chongqing Changan Minsheng Logistics Co., Ltd | 0.00 | - |
| Advance receipts | Southwest Ordnance Industry Corporation | 0.00 | - |
| Advance receipts | Southern Inte Air Conditioning Co., Ltd. | 0.00 | - |
| Advance | Changan Mazda Automobile Co.,Ltd. | 1,423,660.83 | - |
| Items | Related parties | Ending balance | Beginning balance |
| receipts | |||
| Advance receipts | Changan Automobile Finance Co., Ltd. | 2,400.00 | - |
| Advance receipts | Changan Automobile Group Co ,Ltd. | 153,207.00 | - |
| Advance receipts | Changan Automobile Group Co ,Ltd.重庆青山变速器分公司 | 1.57 | - |
| Advance receipts | Bazhong Wanyou Automobile Sales & Service Co., Ltd. | 50,000.00 | - |
| Subtotal | 163,600,268.36 | 122,872,256.46 | |
| Other payables | Chongqing Changan Minsheng Logistics Co., Ltd | 391,165,781.92 | 105,930,160.43 |
| Other payables | China South Industries Group Co., Ltd. | 0.00 | 29,580,000.00 |
| Other payables | Changan PSA Automobiles Co., Ltd. | 0.00 | 26,007,857.90 |
| Other payables | Chongqing Changan Construction Engineering Co., Ltd. | 13,835,695.04 | 13,471,837.97 |
| Other payables | Changan Industries Group Co. Ltd. | 14,929,972.09 | 8,784,882.05 |
| Other payables | Chongqing Changan Property Management Co., Ltd. | 2,892,305.28 | 2,252,567.36 |
| Other payables | Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. | 550,000.00 | 550,000.00 |
| Other payables | Chongqing Qingshan Transmission Sales Co., Ltd. | 0.00 | 439,120.00 |
| Other payables | Chongqing Changan Real Estate Development Co., Ltd. | 0.00 | 277,907.42 |
| Other payables | Guizhou Wanyou Automobile Sales & Service Co., Ltd. | 26,215.00 | 218,604.28 |
| Other payables | Chongqing Anfu Automobile Marketing Co., Ltd. | 100,000.00 | 200,000.00 |
| Other payables | Changan Ford Mazda Engine Co., Ltd. | 0.00 | 144,115.79 |
| Other payables | Chengdu Wanyou Filter Co., Ltd. | 120,000.00 | 120,000.00 |
| Items | Related parties | Ending balance | Beginning balance |
| Other payables | Chongqing Wanyou Economic Development Co., Ltd. | 0.00 | 111,551.22 |
| Other payables | Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. | 81,847.00 | 75,330.00 |
| Other payables | Chongqing Dajiang Xinda Automobile Co., Ltd. | 0.00 | 50,000.00 |
| Other payables | Southern Inte Air Conditioning Co., Ltd.空调有限公司 | 0.00 | 35,844.50 |
| Other payables | Yunnan Wanyou Automobile Sales & Service Co., Ltd. | 0.00 | 26,100.00 |
| Subtotal | 423,701,816.33 | 188,275,878.92 | |
XIII. Share-based payments
1. General information
| 2019.06 | |
| The total amount of the employee services as a result of the share-based payments | 23,961,900.00 |
The equity settled share based payments are as follows:
| 2019.06 | |
| The accumulated amount of equity settled share-based payments included in capital reserve | 23,961,900.00 |
| The amount of equity settled share-based payments included in expense | 0.00 |
2. Share-based payment scheme
On 23 September 2016, the share option was approved to be granted on 23 September 2016 by the 12th meetingof the seventh session of the Board of Directors and the 8th meeting of the seventh session of Board ofSupervisors. According to the share option scheme, the Company granted 29,140,000 options to 202 employees,conferring rights to purchase 1 A share of Changan Automobile for each option before the expiration date. Shareoptions are granted to directors, chief executive officers and key technical and management personnel.
The share option will expire in 5 years. After the vesting period of 24 month since the grant date, the option shallbe exercised in three periods. In each exercise period, 1/3 of the total options could be exercised when theprescribed performance conditions are met. The exercise price is RMB14.12 per share. The options granted shallbe exercised before the expiration date. The share should not be exercised unless the prescribed conditions are met.
The exercisable shares not exercised in above periods will be written off by the Company. The company hasdisclosed in June 1, 2017 "The 2016 annual notice of the implementation of equity distribution".According to thecompany's stock option incentive plan (Revised Draft), the relevant provisions on the stock option priceadjustment, if dividends and capital reserve capitalization, stock dividends, stock split delivery, allotment,issuance or reduced matters occur before the stock exercise, the stock option price should be adjusted. Theexercise price of the adjusted stock option is 13.478 yuan. The incentive object must be exercised within thevalidity period of the option exercise. If the exercise conditions are not met, the current stock options may not beexercised. If part of the stock options that meet the exercise conditions but are not exercised in the above exerciseperiod are cancelled by the company.
The performance indicators of the share option includes:
(1) Return on equity (ROE)
(2) Net profit growth rate attributable to owners
(3) Economic value added (EVA), and
(4) The ratio of prime operating revenue to operating revenue
The above net profit and ROE are based on net profit and weighted average net assets attributable to ownersdeducting non-recurring gains and losses.
The exercise terms of share options:
| Exercise Period | Exercise Ratio | Exercise Time | Exercise Terms |
| The 1st exercise period | 1/3 | The 1st trading day since 24 month after the grant date to the last trading day since 36 month after the grant date | ROE≥15% The above indicators≥benchmark average, and ≥75 quartile △EVA>0; The ratio of prime operating revenue to operating revenue≥95% |
| The 2nd exercise period | 1/3 | The 1st trading day since 36 month after the grant date to the last trading day since 48 month after the grant date | ROE≥15% The above indicators≥benchmark average, and ≥75 quartile △EVA>0; The ratio of prime operating revenue to operating revenue≥95% |
| The 3rd exercise period | 1/3 | The 1st trading day since 48 month after the grant date to the last trading day sinc | 2019 net profit growth rate based on 2015 average growth rate ≥3.2%(growth amount equivalent to RMB10,844,000,000); |
| e 60 month after the grant date | The above indicators≥benchmark average, and ≥75 quartile △EVA>0; The ratio of prime operating revenue to operating revenue≥95% |
On the grant date, the fair value of the above stock options of the Company was RMB 139,527,600.00. As theperformance appraisal target of the first and second exercise periods of the stock option incentive plan of thecompany has not reached the target, and a total of 19 incentive objects have respectively terminated the laborcontract with the company, the company no longer meets the stock option incentive conditions. On December 31,2018, a total of 20.33 million stock options were cancelled. After the cancellation, the company's stock optionsissued under the plan were 8.81 million, and the corresponding fair value was RMB 42,183,885.90. The shareoption fee confirmed by the company in June 2019 is RMB 0.00.
The fair value of the equity-settled share option is determined using Black-Scholes model based on the estimate inaccordance with the terms and conditions of the share options. The input variables are as follows:
| Valuation factors | 2016 |
| Dividend rate (%) | 0% |
| Expected volatility (%) | 29.78% |
| Historical volatility (%) | 29.78% |
| Risk-free rate (%) | 2.4987% |
| Expected duration (year) | 4 |
| Share price as at the grant date (Yuan) | 15.43 |
The expected duration of the option is based on the historical data of the past, which is not necessarily reflected inthe exercise of the right in future.The expected volatility is based on the assumption that the historical volatilityreflects the future trend, but not necessarily the actual results.XIV. Commitments and Contingencies
1. Significant commitments
Investment commitmentBy June 30th 2019, the group has no investment commitment that has been signed but not yet fully fulfilled.
2. Contingencies
By June 30th 2019, the company has no significant contingencies that need to be published.
XV. Events after the balance sheet date
1. Significant non-adjusting events
□ Applicable √Not Applicable
2. Distribution of profit
□ Applicable √ Not Applicable
3. Sales return
□ Applicable √ Not Applicable
XVI. Other important events
1. Correction of accounting error of earlier stage
□ Applicable √ Not Applicable
2. Debt restructuring
□ Applicable √ Not Applicable
3. Asset replacement
□ Applicable √ Not Applicable
4. Annuity plan
□ Applicable √ Not Applicable
5. Discontinuing operation
□ Applicable √ Not Applicable
6. Information on business branch
Identify business branch of the group according to internal organization structure, management requirements, internal reporting rules,and identify the report and information disclosed of the brand based on the identified branch.Identify business branch of the group according to internal organization structure, management requirements, internal reporting rules,and identify the report and information disclosed of the brand based on the identified branch.business branch refers to the component of the group that meets the following conditions:
(1) the component has income and expenditure incurred in routine activities;
(2) the management of the company regularly evaluates the operation performance of the component to decide the company’s
resource distribution and evaluate its overall performance
(3) The group receives related accounting information on the financial situation, operation performance and cash flow.If two or more components have similar economic features and meet the conditions, they should be consolidated into one branch.Income and profit of the group consists of automobile manufacturing and domestic sales. Main asset of the group is in China. Themanagement of the group evaluates the performance of the group as a whole. Thus, report of the branch is not included in this year’sreport.XVII. Notes to the main items of the parent company’s financial statements
1. Account Receivables
(1) Account Receivables
Disclosure of accounts receivable
In RMB Yuan
| Items | 2019 | |||
| Book balance | Provision for bad-debts | |||
| Amount | (%) | Amount | (%) | |
| Individual assessment of credit expected loss and provision for bad debts | ||||
| Assess bad debt provision for expected credit expected loss according to credit risk characteristics combination | 6,962,658,706.03 | 100.00 | 17,198,989.14 | 100.00 |
| Total | 6,962,658,706.03 | 100.00 | 17,198,989.14 | 100.00 |
In RMB Yuan
| Items | 2018 | |||
| Book balance | Provision for bad-debts | |||
| Amount | (%) | Amount | (%) | |
| Individually significant amount and account receivables of individually provision for bad debts | 74,433,396.10 | 1.31 | - | - |
| Account receivables of provision for bad-debts calculated and extracted by groups | ||||
| Group 1: account receivables of provision for bad-debts calculated and extracted by aging analysis | 50,150,446.67 | 0.88 | 15,559,782.05 | 31.03 |
| Group 2: Account receivables for related parties | 5,570,136,618.97 | 97.81 | - | - |
| Group subtotal | 5,620,287,065.64 | 98.69 | 15,559,782.05 | 0.28 |
| Notindividually significant amount but other receivables of individually | - | - | - | - |
| provision for bad debts | ||||
| Total | 5,694,720,461.74 | 100 | 15,559,782.05 | 0.27 |
The parent company's portfolio of expected credit losses based on credit risk assessment is as follows:
In RMB Yuan
| Account receivable age | Estimated book balance for default | Expected credit loss rate | Provision for bad-debts |
| Within 1 year | 4,786,444,085.47 | 0.00 | 1.30 |
| 1 to 2 years | 1,175,736,910.88 | 0.09 | 1,103,078.60 |
| 2 to 3 years | 651,568,851.27 | 0.62 | 4,010,976.73 |
| 3 to 4 years | 130,204,659.05 | - | |
| 4 to 5 years | 137,850,362.59 | - | |
| Over 5 years | 80,853,836.77 | 14.95 | 12,084,932.51 |
| Total | 6,962,658,706.03 | 0.24 | 17,198,989.14 |
On June 30, 2019, the top five accounts receivable totalled RMB 5,631,531,067.57， accounting for 80.88% of the total accountsreceivable (2018：RMB 4,575,962,128.25，accounting for 80.35% of the total accounts receivable)Provision for bad debts withdrawn, recovered or reversed in the current period
In RMB Yuan
| Items | Beginning | Current change amount | Beginning | ||
| Provision | Withdrawn or recovered | Reversed | |||
| Bad debt provision of accounts receivable | 15,559,782.05 | 1,706,307.09 | 67,100.00 | 17,198,989.14 | |
| Total | 15,559,782.05 | 1,706,307.09 | 67,100.00 | 17,198,989.14 | |
2. Other receivables
In RMB Yuan
| Items | Ending | Beginning |
| Interest receivable | 4,581,253.52 | 17,432,805.54 |
| Dividend receivable | 74,897,909.69 | |
| Other receivables | 2,420,936,251.89 | 2,326,885,353.29 |
| Total | 2,500,415,415.10 | 2,344,318,158.83 |
Other receivablesThe changes in bad debt provision for other receivables based on 12-month expected credit losses and the entire lifetime expectedcredit losses are as follows（Only for 2019）：
In RMB Yuan
| Bad debt provision | The first stage | The second stage | The second stage | Total |
| Expected credit losses in the next 12 months | Expected credit loss for the entire life (Single evaluation) | Expected credit loss for the entire life (Group evaluation) | ||
| Balance on January 1, 2019 | 261,669.32 | 341,762.08 | 603,431.40 | |
| In this period, Balance on January 1, 2019 | - | - | - | - |
| --Transfer to the second stage | -29,326.52 | 29,326.52 | - | |
| --Transfer to the third stage | - | |||
| --Turn back to the second stage | - | |||
| --Turn back to the first stage | - | |||
| Current provision | 2,949,782.81 | 825.21 | 2,950,608.02 | |
| Current return | 208,560.86 | 208,560.86 | ||
| Current reselling | - | |||
| Current verification | - | |||
| Other changes | - | |||
| Total | 232,342.80 | 2,949,782.81 | 163,352.95 | 3,345,478.56 |
The changes in the balance of other receivables are as follows：
In RMB Yuan
| Bad debt provision | The first stage | The second stage | The second stage | Total |
| Expected credit losses in the next 12 months | Expected credit loss for the entire life (Single evaluation) | Expected credit loss for the entire life (Group evaluation) | ||
| Balance on January 1, 2019 | 2,322,255,398.35 | 4,436,899.38 | 2,326,692,297.73 | |
| In this period, Balance on January 1, 2019 | - | - | - | - |
| --Transfer to the second stage | -586,530.34 | 586,530.34 | - | |
| --Transfer to the third stage | - | |||
| --Turn back to the second stage | - | |||
| --Turn back to the first stage | - | |||
| New in this period | 94,849,311.69 | 2,949,782.81 | 2,531,268.26 | 100,330,362.76 |
| Derecognition | 2,740,930.04 | 2,740,930.04 | ||
| Current verification | - | |||
| Other changes | - |
| Total | 2,416,518,179.70 | 2,949,782.81 | 4,813,767.94 | 2,424,281,730.45 |
Other receivables are described by type（Only for 2018）：
In RMB Yuan
| Items | Beginning | |||
| Book balance | Provision for bad-debts | |||
| Amount | (%) | Amount | (%) | |
| Individually significant amount and account receivables of individually provision for bad debts | 1,720,350,524.62 | 73.91 | - | - |
| Account receivables of provision for bad-debts calculated and extracted by groups | ||||
| Group 1: other receivables of provision for bad-debts calculated and extracted by aging analysis | 118,981,025.65 | 5.12 | 603,431.40 | 0.51 |
| Group 2: other receivables of provision for bad-debts calculated and extracted by related parties | 488,157,234.42 | 20.97 | - | - |
| Group subtotal | 607,138,260.07 | 26.09 | 603,431.40 | 0.10 |
| no Individually significant amount but other receivables of individually provision for bad debts | - | - | - | - |
| Total | 2,327,488,784.69 | 100 | 603,431.40 | 0.03 |
3. Long-term equity investment
In RMB Yuan
| Invested in | Accounting method | capitalized cost | beginning amount | increase/decrease | ending amount | Share proportion in the company invested (%) | Voting proportion in the company invested (%) | Explanation for the difference between shareholding percentage and voting percentage | Impairment | impairment provision in current period | cash bonus in current period |
| 1、Joint ventures | |||||||||||
| Jiangling Holding Co., Ltd. | Equity | 1,008,511,522.00 | 2,493,754,915.53 | -236,679,161.41 | 2,257,075,754.12 | 50.00% | 50.00% | - | |||
| Changan Ford Automobile Co., Ltd | Equity | 975,232,926.29 | 3,709,784,507.11 | -388,312,379.14 | 3,321,472,127.97 | 50.00% | 50.00% | - | |||
| Changan Mazda Automobile Co.,Ltd. | Equity | 1,097,839,635.00 | 2,472,626,663.41 | 431,236,189.88 | 2,903,862,853.29 | 50.00% | 50.00% | - | |||
| Changan Ford Mazda Engine Co., Ltd. | Equity | 786,734,634.10 | 827,803,757.96 | 22,279,051.96 | 850,082,809.92 | 50.00% | 50.00% | - | |||
| Changan PSA Automobiles Co., Ltd. | Equity | 3,807,841,700.00 | 1,456,519,068.74 | -37,577,002.31 | 1,418,942,066.43 | 50.00% | 50.00% | - | |||
| Changan Weilai New Energy Automobile Technology Co., Ltd. | Equity | 49,000,000.00 | 44,065,513.91 | -16,493,522.92 | 27,571,990.99 | 50.00% | 50.00% | - | |||
| 2、Associated Enterprises | |||||||||||
| Chongqing Changan Kuayue Automobile Co., Ltd | Equity | 61,800,885.00 | 116,588,234.97 | 39,038,877.69 | 155,627,112.66 | 34.00% | 34.00% | - | |||
| Chongqing Changan Kuayue Automobile Marketing Co., Ltd. | Equity | 1.00 | 34.00% | 34.00% | - |
| Invested in | Accounting method | capitalized cost | beginning amount | increase/decrease | ending amount | Share proportion in the company invested (%) | Voting proportion in the company invested (%) | Explanation for the difference between shareholding percentage and voting percentage | Impairment | impairment provision in current period | cash bonus in current period |
| Beijing Fang’an Xinyue taxi Co., Ltd | Equity | 6,000,000.00 | 21.00% | 21.00% | - | ||||||
| Chongqing Auto Finance Co., Ltd. | Equity | 1,805,000,000.00 | 2,030,617,157.41 | 46,724,451.22 | 2,077,341,608.63 | 29.00% | 29.00% | - | |||
| Hainan Anxinxing Information Technology Co., Ltd. | Equity | 6,000,000.00 | 5,536,555.21 | -775,195.24 | 4,761,359.97 | 30.00% | 30.00% | - | |||
| Nanjing Chelai Travel Technology Co., Ltd. | Equity | 2,000,000.00 | 1,813,616.14 | -238,955.00 | 1,574,661.14 | 10.00% | 10.00% | - | |||
| Hunan Guoxin Semiconductor Technology Co., Ltd. | Equity | 25,000,000.00 | 25,000,000.00 | -145,569.13 | 24,854,430.87 | 25.00% | 25.00% | - | |||
| Nanjing Leading Equity Investment Partnership | Equity | 858,267,717.00 | 846,264,828.30 | 846,264,828.30 | 16.00% | 16.00% | - | ||||
| Nanjing Lingxing Equity Investment Management Co., Ltd. | Equity | 1,500,000.00 | 1,500,000.00 | 1,500,000.00 | 15.00% | 15.00% | - | ||||
| 3、Subsidiaries | |||||||||||
| Nanjing Changan Automobile Co., Ltd. | Cost | 422,533,259.00 | 422,533,259.00 | 422,533,259.00 | 84.74% | 84.74% | - | ||||
| Hebei Changan Automobile Co., Ltd. | Cost | 438,223,236.00 | 438,223,236.00 | 438,223,236.00 | 95.06% | 95.06% | - | ||||
| Chongqing Changan Automobile International Sales Service Co., Ltd. | Cost | 13,068,581.00 | 13,068,581.00 | 13,068,581.00 | 100.00% | 100.00% | - |
| Invested in | Accounting method | capitalized cost | beginning amount | increase/decrease | ending amount | Share proportion in the company invested (%) | Voting proportion in the company invested (%) | Explanation for the difference between shareholding percentage and voting percentage | Impairment | impairment provision in current period | cash bonus in current period |
| Chongqing Changan Automobile Customer Service Co., Ltd. | Cost | 29,700,000.00 | 29,700,000.00 | 29,700,000.00 | 100.00% | 100.00% | - | ||||
| Chongqing Changan Chelian Technology Co., Ltd. | Cost | 88,500,000.00 | 88,500,000.00 | 88,500,000.00 | 100.00% | 100.00% | - | ||||
| Chongqing Changan Special Vehicle Co., Ltd. | Cost | 2,500,000.00 | 2,500,000.00 | 2,500,000.00 | 50.00% | 50.00% | - | ||||
| Chongqing Changan Europe Design Center Co., Ltd | Cost | 155,469,913.50 | 155,469,913.50 | 155,469,913.50 | 100.00% | 100.00% | - | ||||
| Chongqing Changan new Engergy Automobile Co. Ltd | Cost | 49,194,195.00 | 49,194,195.00 | 49,194,195.00 | 100.00% | 100.00% | - | ||||
| Changan United Kingdom R&D Center Co., Ltd. | Cost | 250,093,850.95 | 236,387,395.40 | 13,706,455.55 | 250,093,850.95 | 100.00% | 100.00% | - | |||
| Beijing Changan Automotive engineering and Technology Reseach Co., Ltd. | Cost | 1,000,000.00 | 1,000,000.00 | 1,000,000.00 | 100.00% | 100.00% | - | ||||
| Changan Japan Design Center Co., Ltd. | Cost | 1,396,370.15 | 1,396,370.15 | 1,396,370.15 | 100.00% | 100.00% | - | ||||
| Changan United States R&D Center | Cost | 10,243,460.00 | 10,243,460.00 | 10,243,460.00 | 100.00% | 100.00% | - |
| Invested in | Accounting method | capitalized cost | beginning amount | increase/decrease | ending amount | Share proportion in the company invested (%) | Voting proportion in the company invested (%) | Explanation for the difference between shareholding percentage and voting percentage | Impairment | impairment provision in current period | cash bonus in current period |
| Co., Ltd. | |||||||||||
| Baoding Changan Bus Manufacturing Co., Ltd. | Cost | 176,002,613.18 | 176,002,613.18 | 176,002,613.18 | 100.00% | 100.00% | - | ||||
| Hefei Changan Automobile Co., Ltd | Cost | 35,367,765.23 | 35,367,765.23 | 35,367,765.23 | 100.00% | 100.00% | - | ||||
| Changan Automobile Russia Co., Ltd. | Cost | 251,242,589.15 | 1,242,589.15 | 250,000,000.00 | 251,242,589.15 | 100.00% | 100.00% | - | |||
| Changan Brazil Holding Co., Ltd | Cost | 2,584,556.97 | 2,584,556.97 | 2,584,556.97 | 100.00% | 100.00% | - | ||||
| Shenzhen Changan New Engergy Automobile Service Co. Ltd | Cost | 184,800,000.00 | 148,000,000.00 | 36,800,000.00 | 184,800,000.00 | 100.00% | 100.00% | - | |||
| Nanjing Changan New Energy Automobile Sales & Service Co., Ltd. | Cost | 50,000,000.00 | 50,000,000.00 | 50,000,000.00 | 100.00% | 100.00% | - | ||||
| Fuzhou Changan New Energy Automobile Sales & Service Co., Ltd. | Cost | 2,000,000.00 | 2,000,000.00 | 2,000,000.00 | 100.00% | 100.00% | - | ||||
| Xiamen Changan New Energy Automobile Sales & Service Co., Ltd. | Cost | 2,000,000.00 | 2,000,000.00 | 2,000,000.00 | 100.00% | 100.00% | - | ||||
| Guangzhou Changan New Energy Automobile Sales & Service Co., Ltd. | Cost | 4,000,000.00 | 4,000,000.00 | 4,000,000.00 | 100.00% | 100.00% | - | ||||
| Chongqing Changan New Energy | Cost | 1,238,742,571.54 | 1,238,742,571.54 | 1,238,742,571.54 | 100.00% | 100.00% | - |
| Invested in | Accounting method | capitalized cost | beginning amount | increase/decrease | ending amount | Share proportion in the company invested (%) | Voting proportion in the company invested (%) | Explanation for the difference between shareholding percentage and voting percentage | Impairment | impairment provision in current period | cash bonus in current period |
| Automobile Technology Co., Ltd. | |||||||||||
| Changan Suzuki Automobile Co., Ltd. | Cost | 594,949,059.30 | 594,949,059.30 | 594,949,059.30 | 100.00% | 100.00% | - | ||||
| Zhenjiang Demao Hairun Equity Investment Fund Partnership (Limited Partnership) | Cost | 1,129,922,044.91 | 1,129,922,044.91 | 1,129,922,044.91 | 100.00% | 100.00% | - | ||||
| Chongqing Chehemei Technology Co., Ltd. | Cost | 10,000,000.00 | 10,000,000.00 | 10,000,000.00 | 100.00% | 100.00% | - | ||||
| Total | -- | 15,634,263,086.27 | 18,017,137,600.72 | 1,017,328,069.45 | 19,034,465,670.17 | － | － | － | － | － | 0 |
4. Operating revenue and cost
(1) Operating revenue
In RMB Yuan
| Items | Current amount | Prior-period amount |
| Main business income | 25,956,607,065.04 | 32,840,989,835.15 |
| Other business income | 848,501,257.18 | 1,368,075,880.87 |
| Operating cost | 24,637,906,770.95 | 29,726,487,573.72 |
(2) Main business (classified by industries)
In RMB Yuan
| Industries | Current amount | Prior-period amount | ||
| revenue | cost | revenue | cost | |
| Automobile manufacturing industry | 25,956,607,065.04 | 24,182,358,106.88 | 32,840,989,835.15 | 29,084,851,115.73 |
| Total | 25,956,607,065.04 | 24,182,358,106.88 | 32,840,989,835.15 | 29,084,851,115.73 |
(3) Main business (classified by products)
In RMB Yuan
| Products | Current amount | Prior-period amount | |||
| revenue | cost | revenue | cost | ||
| Sales of goods | 25,895,618,136.43 | 24,096,513,989.33 | 32,768,288,077.90 | 28,995,127,299.93 | |
| Outsourcing processing | 60,988,928.61 | 85,844,117.55 | 72,701,757.25 | 89,723,815.80 | |
| Total | 25,956,607,065.04 | 24,182,358,106.88 | 32,840,989,835.15 | 29,084,851,115.73 | |
5. Investment income
(1) Details of investment income
In RMB Yuan
| Items | Current amount | Prior-period amount |
| Long-term equity investment income measured by cost method | 628,650,000.00 | |
| Long-term equity investment income measured by equity method | -78,048,193.41 | 1,362,011,815.11 |
| investment income from long -term equity investment disposition | 42,715.98 | |
| others | 4,149,371.08 | 4,434,355.36 |
| Total | -73,898,822.33 | 1,995,138,886.45 |
(2) Long-term equity investment incomemeasured by cost accounting method
In RMB Yuan
| Items | Current amount | Prior-period amount |
| Chongqing Changan Automobile Customer Service Co., Ltd. | 628,650,000.00 | |
| Total | - | 628,650,000.00 |
(3) Long-term equity investment income measured by equity accounting method
In RMB Yuan
| Invested in company | Current amount | Prior-period amount |
| Changan Ford Automobile Co., Ltd | -388,312,379.14 | 866,427,723.13 |
| Changan Mazda Automobile Co., Ltd | 431,236,189.88 | 635,451,737.12 |
| Changan Suzuki Automobile Co., Ltd. | -80,032,104.09 | |
| Changan Ford Mazda Engine Co., Ltd. | 22,279,051.96 | 41,312,350.21 |
| Jiangling Holding Co., Ltd | -236,679,161.41 | -83,707,141.74 |
| Changan PSA Automobiles Co., Ltd. | -37,577,002.31 | -171,729,822.06 |
| Chongqing Changan Kuayue Automobile Co., Ltd | 39,038,877.69 | 17,458,524.85 |
| Changan Auto Finance Co., Ltd. | 121,622,360.91 | 137,070,317.23 |
| Zhenjiang Demao Hairun Equity Investment Fund Partnership (Limited Partnership) | -239,769.54 | |
| Hunan Guoxin Semiconductor Technology Co., Ltd. | -145,569.13 | |
| Hainan Anxinxing Information Technology Co., Ltd. | -775,195.24 | |
| Nanjing Chelai Travel Technology Co., Ltd. | -238,955.00 | |
| Changan Weilai New Energy Automobile Technology Co., Ltd. | -16,493,522.92 | |
| Nanjing Leading Equity Investment Partnership (Limited Partnership) | -12,002,888.70 | |
| Total | -78,048,193.41 | 1,362,011,815.11 |
XVIII. Additional information
1. Non-recurring profit and loss statement of current period
In RMB Yuan
| Items | Amount | Explanation |
| Profit and loss of non-current assets disposition | 9,392,459.28 | |
| 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) | 620,733,074.11 | |
| Net profit or loss of the subsidiary from the beginning of the business combination to the merger date | ||
| In addition to the effective hedging business related to the normal business of the company, the gains and losses from changes in fair value arising from the holding of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities, and disposal of transactional financial assets, derivative finance, investment income from trading financial assets, trading financial liabilities, derivative financial liabilities and other debt investments | 40,337,151.27 | |
| Other non-business incomings and outgoings except above-mentioned items | 6,191,613.24 | |
| Interest on deferred payment of funds received from non - financial enterprises | 18,205,918.42 | |
| Less: amount influenced by income tax | 13,119,121.76 | |
| Amount influenced by minority shareholders’ interest (after tax) | 10,013,259.23 | |
| Total | 671,727,835.33 |
If the company identifies non-recurring profit and loss defined by Information Disclosure by Companies Offering Securities to thePublic No. 1--non-recurring profit and loss and non-recurring profit and loss defined by Information Disclosure by CompaniesOffering Securities to the Public No. 1--non-recurring profit and loss as recurring profit and loss, explain the reasons.
□ Applicable √ Not applicable
2. Return on equity and earnings per share
In RMB Yuan
| Profit in report period | Weighted average return on equity | Earnings per share | |
| Basic EPS | Basic EPS | ||
| Net profit belonging to the Company’s common stockholders | -4.97% | -0.47 | Not applicable |
| Net profit belonging to the Company’s common stockholders after deducting non-recurring profit and loss | -6.46% | -0.61 | Not applicable |
3. Accounting data difference by domestic and foreign accouting standards
(1) Net profit and net asset differences from financial statements by global GAAC and prc GAAC
□ Applicable √ Not applicable
(2) Net profit and net asset differences from financial statements by GAAC abroad and PRC GAAP
□ Applicable √ Not applicable
(3) Description on accounting data differences by domestic and foreign accounting standards. If auditing institutions abroadhave adjusted the data differences, identify the name of the auditing institution abroad.None
4. Others
□ Applicable √ Not applicable
Chapter 10 Documents for Future Reference
| Catalogue of Reference Files |
| 1、Semi-annual report with signature of legal representative; 2、Financial statements, with the signatures and seals of legal representative, person in charge of accounting, and person in accounting agency; 3、BOD resolutions and written confirmation documents signed by board members and senior executives; 4、Written auditing opinions in form of resolution by the Board of Supervisors; 5、All original copies of company documents and announcements disclosed in China Securities Journal, Securities Time, and Hong Kong Commercial Daily in reporting period. The company will provide the the abovementioned reference files timely when required by China Securities Regulatory Commission and Shenzhen Stock Exchange, and required by shareholders according to law and corporate regulations. |
Chairman: Zhang BaolinSubmit Date Approved by BOD: August 31, 2019