Chongqing Changan Automobile
Company Limited
2016 Annual Report
April, 2017
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chapter 1 Important Notice, Contents, and Definitions
The Board of Directors, the Board of Supervisors, Directors, Supervisors and Senior
Executives of our company hereby guarantee that no false or misleading statement or major
omission was made to the materials in this report and that they will assume all the responsibilities,
individually and jointly, for the trueness, accuracy and completeness of the contents of this report.
The Chairman of the Board Xu Liuping, the Chief Financial Officer Wang Kun and the
responsible person of the accounting institution (Accountant in charge) Hua Zhanbiao hereby
declare that the Financial Statements enclosed in this annual report are true, accurate and complete.
All the directors attended the board meeting for reviewing the annual report.
The prospective description regarding future business plan and development strategy in this
report does not constitute virtual commitment. The investors shall pay attention to the risk.
The preplan profit distribution of the Company deliberated and approved by the Board is:
taking the total shares 4,802,648,511 as of Dec. 31, 2016 as the radix, sending cash dividends of
RMB 6.42 Yuan (tax included) per every 10 shares to all shareholders, and not converting capital
reserve into share capital.
Chongqing Changan Automobile Company Limited 2016 Annual Report
CONTENTS
Chapter 1 Important Notice, Contents, and Definitions ............................................. 1
Chapter 2 Company Profile & Main Financial Indexes ............................................. 4
Chapter 3 Analysis of Main Business ........................................................................ 9
Chapter 4 Business Discussion and Analysis ........................................................... 11
Chapter 5 Important Matters .................................................................................... 33
Chapter 6 Changes in the shareholding of the company and shareholders .............. 46
Chapter7 Information about Directors, Supervisors, Senior Management and
Employees ................................................................................................................... 54
Chapter 8 Corporate Governance ............................................................................. 68
Chapter 9 Corporate Bonds ...................................................................................... 75
Chapter 10 Auditor’s Report .................................................................................... 80
Chapter 11 Documents for Future Reference ......................................................... 222
Chongqing Changan Automobile Company Limited 2016 Annual Report
Definitions
Items Definitions
Changan Auto., the
Refers to Chongqing Changan Automobile Company Limited
Company
South Industries Refers to China South Industries Group Corp. Company’s actual controller
China Changan Automobile Group Corporation, old name: China South
China Changan Refers to
Industries automobile Co., Ltd., a subsidiary company of South Industries
Chongqing Changan Industry (Group) Co., Ltd., old name: Changan
Automobile Co., Ltd., Changan Automobile (Group) Co., Ltd., a
Changan Industry Refers to
subsidiary company of South Industries, the controlling shareholder of the
Company before December, 2005
Nanjing Changan Automobile Co., Ltd., a subsidiary company of the
Nanjing Changan Refers to
Company
Hebei Changan Automobile Co., Ltd., a subsidiary company of the
Hebei Changan Refers to
Company
Hefei Changan Automobile Co., Ltd., a subsidiary company of the
Hefei Changan Refers to
Company
Changan Bus Refers to Baoding Changan Bus Co., Ltd., a subsidiary company of the Company
International Company Refers to Chongqing Changan Automobile International Sale Service Co., Ltd.
Changan Ford Refers to Changan Ford Automobile Co.,，a JV of the Company
Changan Mazda Refers to Changan Mazda Automobile Co., a JV of the Company
CFME Refers to Changan Ford Mazda Engine Co., a JV of the Company
Changan Suzuki Refers to Chognqing Changan Suzuki Auto. Co.Ltd., a JV of the Company
CAPSA Refers to Changan PSA Automobiles Co., Ltd，a JV of the Company
Jiangling Holding Refers to Jiangling Holding Co., a JV of the Company
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 Corporation
United Prosperity (Hong Kong)Investment Co., Ltd,a subsidiary company
UPI Refers to
of China Changan
Harbin Hafei Automobile Industry Group Co., Ltd., a subsidiary company
Hafei Group Refers to
of China Changan
Chongqing Changan Minsheng APLL Logistics Co., Ltd, a Joint Stock
CMAL Refers to
Company of China Changan.
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chapter 2 Company Profile & Main Financial Indexes
I. Basic Information
Stock abbreviation Changan Automobile 、Changan B Stock Code 000625、200625
Listed on Shenzhen Stock Exchange
Company in Chinese
重庆长安汽车股份有限公司
name
Company abbreviation in
长安汽车
Chinese name
Company name in
Chongqing Changan Automobile Company Limited
English
Legal representative Xu LiuPing
Registered address No. 260, East Jianxin Road Jiangbei District, Chongqing
Post code of the
registered address
Office address No. 260, East Jianxin Road, Jiangbei District, Chongqing
Post code of the office
address
Website http://www.changan.com.cn
E-mail address cazqc@changan.com.cn
Ⅱ. Contact Information
Secretary of the Board of Directors Securities affairs representative
Name Wang Kun( On behalf), Li Jun
No. 260, East Jianxin Road, Jiangbei
Contact address
District, Chongqing
TEL: 023-67594008
FAX: 023-67866055
E-mail address cazqc@changan.com.cn
Ⅲ. Information Disclosure and Filing Site
Newspaper selected by the Company for
China Securities Journal, Securities Daily and Hong Kong Commercial Daily
information disclosure
Chongqing Changan Automobile Company Limited 2016 Annual Report
Website selected by CSRC for publishing
www.cninfo.com.cn
this annual report
The place where this annual report is
Secretary's Office of Board of Directors
prepared and kept
IV. Changes of Registration Information
Organization Code 9150000020286320X6
Changes in the main business since the
Not applicable
company's listing
In Dec. 2005, according to the restructuring program on automobile business, the
Company’s actual controller, China South Industries Group Corporation made
transferring of all state-owned shares of the Company as part of funding for China South
Industries Automobile Company Limited. In March 2006, all shares held by Changan
Group have been transferred to China South Industries Automobile Company Limited.
All previous changes of dominant
China South Industries Automobile Company Limited became the majority shareholder
stockholders
of the Company, and Changan Group holds zero share since then.
In July 2009, with the approval of State Administration for Industry and Commerce,
“China South Industries Automobile Company Limited”, changed its name to “China
Changan Automobile Group Co., Ltd.”. After change of its name, its property,
ownership and control relation are without change.
V. Other Relevant Information
The accounting firm employed by the Company:
Name of the accounting firm Ernst & Young Hua Ming LLP (Special Ordinary Partner)
Level 16, Ernst & Young Tower, Oriental Plaza, No. 1 East Chang An Avenue, Dong Cheng
Address of the accounting firm
District, Beijing, China
Name of the certified public
Chen Xiaoxiang, Hu Yan
accountant for signature
The recommendation agency engaged by the Company executing the persistent supervision responsibilities in the
reporting period
√ Applicable □ Not applicable
Address of recommendation Name of recommendation
Recommendation Agency Supervision duration
agency agency
Level 3, Block E,
Kaiheng Center B, Chaonei October 2016 - December
China Securities Co., Ltd. Xu Zitong, Cai Yujie
Avenue 2, Dongcheng
District, Beijing
The financial consultant engaged by the Company performing the duties of persistent supervision and guidance in
the reporting period
Chongqing Changan Automobile Company Limited 2016 Annual Report
√ Applicable □ Not applicable
Address of financial
Financial Consultant Name of financial consultant Supervision duration
consultant
Shanghai Realize Investment No.639,Xinhua Road, September 2016 - September
Ye Suqin
Consulting Co., Ltd. Shanghai
VI. Summary of Accounting Data and Financial Indexes
Does the company conduct the retrospective adjustment or restatement of previous years accounting data due to changes in
accounting policies or accounting errors?
√ Yes □ No
Increase/decrease
2016 2015 on a y-o-y basis
(%)
Operating revenue
78,542,441,757.19 66,771,580,527.66 17.63% 52,913,332,100.83
(Yuan)
Net profit belonging
to shareholders of the
10,285,284,120.57 9,952,714,168.09 3.34% 7,561,081,585.81
listed company
(Yuan)
Net profit belonging
to shareholders of the
listed company after
9,448,723,644.17 9,560,013,288.84 -1.16% 7,279,008,679.47
deduction of
non-recurring profit
and loss (Yuan)
Net cash flow arising
from operating 2,286,551,305.20 5,414,890,769.50 -57.77% 3,779,921,774.57
activities (Yuan)
Basic earnings per
2.19 2.13 2.82% 1.62
share (Yuan/Share)
Diluted earnings per
Not applicable Not applicable Not applicable Not applicable
share (Yuan/Share)
Return on equity
26.81% 33.14% Down 6.33% 34.20%
(ROE) (%)
Increase/decrease of
the end of current
End of 2016 End of 2015 year compared with
that of the
previous year (%)
Chongqing Changan Automobile Company Limited 2016 Annual Report
Total assets (Yuan) 106,510,473,733.93 89,413,988,669.66 19.12% 69,687,352,890.82
Net assets belonging
to shareholders of the
listed company
(Owner's equity
43,573,812,403.87 34,385,189,070.36 26.72% 25,637,298,549.80
belonging to
shareholders of the
listed company)
(Yuan)
VII. The differences between domestic and international accounting standards
(1).Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial
reports of differences in net income and net assets.
□ Applicable √ Not applicable
No difference
(2). Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards.
□ Applicable √ Not applicable
No difference
VIII. Key financial indicators for the quarter
Unit: Yuan
First Quarter Second Quarter Third Quarter Forth Quarter
Business income 19,337,756,565.65 16,464,006,355.60 17,805,233,132.26 24,935,445,703.68
Net profit attributable to shareholders of listing
2,673,017,139.39 2,817,971,442.93 2,248,359,745.89 2,545,935,792.36
Corporation
Net profit attributable to shareholders of the listing
Corporation after deducting non-recurring gains and 2,529,388,182.32 2,521,923,269.60 2,224,467,585.50 2,172,944,606.75
losses
Net cash flows from operating activities 1,615,418,932.11 3,005,368,295.96 1,871,807,733.81 -4,206,043,656.68
Whether or not the above mentioned financial indicators and the total number of the company has disclosed the major difference
between quarterly reports and semi-annual report
□ Yes √ No
IX. Non-recurring items and amounts
√ Applicable □Not applicable
Unit: Yuan
2014amount
Item 2016 amount 2015 amount
(Restated)
Chongqing Changan Automobile Company Limited 2016 Annual Report
Non-recurring items and amounts(including accrued reversal assets -26,176,073.44
-34,314,067.34 -17,293,198.19
impairment part)
Government subsidies included in the profit and loss of the current
period (Except closely related to business operations, in accordance
864,258,952.35 441,926,607.20 339,001,795.70
with the national unified standard quota or quantitative enjoyment
of government subsidies)
The current net profit and loss of the subsidiary period from the -
- -43,390,581.51
same control to the consolidated day
Except the normal operation of the company's business related to
the effective hedging business , changes in the fair value of the -
transaction of financial assets and transaction financial liabilities ,
- -
and dealing with transaction financial assets, transaction financial
liabilities ,and Investment income available for sale of financial
assets
Except the above other operating income and expenses 53,570,410.76 16,816,296.11 40,605,150.13
Interest on deferred payment of funds received by non financial 41,300,590.86
enterprises 38,457,111.56 36,729,835.74
Reduce: the impact of income tax 94,404,693.21 65,174,314.56 66,584,968.46
Impact of minority shareholders' equity (after tax) 1,988,710.92 5,010,753.72 6,995,127.07
Total 836,560,476.40 392,700,879.25 282,072,906.34
According to “Public offering of securities information disclosure of the company's information disclosure announcement No. 1 –
non-recurring gains and losses “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 the company's information disclosure announcement No. 1 - non-recurring gains and losses “The items listed in the
non-recurring items defined as recurring items shall be explained .
□ Applicable √Not applicable
The company in the reporting period does not base on the definition and listing of “Public offering of securities information
disclosure of the company's information disclosure announcement No. 1 – non-recurring gains and losses” about non-recurring gains
and losses to define a case of recurring profit or loss.
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chapter 3 Analysis of Main Business
I．The main business of the Company in the reporting period
Does the Company need to comply with the disclosure requirements of special industry
□Yes √No
During the reporting period, the company's main business is the manufacturing and sale of cars (including sedan), the
production of automobile engine products. The main products include sedans such as CS series SUV, Raeton, Eado series, Alsvin
series, MPV such as Oushang, Honor, and Eulove.
As one of the first camp, No. One independent brand, No. One R & D strength enterprise in China auto industry, Changan
ranked among the top 500 industrial enterprises, China's top 100 manufacturing companies, top 10 listed companies in Chongqing for
many years.
By taking \"technical innovation and everlasting care\" as the core value, adhering to the brand philosophy of “build worldwide
reputation and create value” and focusing on science and technology innovation leading the auto civilization, Changan automobile
strives to provide customers with amazing products and services. After years of development, the products cover low & middle class,
wide range and various series such as sedans, mini cars, buses, trucks, SUV, MPV and engines with displacement from 1.0L to 2.0L.
Up to now, a series of classic independent brand models such as Eado, Eado XT, Alsvin, CS15, CS35,CS75, CX70, Oushang, and
Honor were successfully launched, admired by the market and loved by the consumers.
II. Major changes in assets
1、 Major changes in assets
No significant changes in major assets during the reporting period
2、 Main Overseas Assets
□ Applicable √ Not applicable
III. Core Competence Analysis
The technology and product research and development capabilities have been improved by adaptable adjustment and reform of
R&D system and organization. By focusing on fashion, intelligent and green technical labels, Changan Automobile invested 3.203
billion Yuan with 360 scientific research projects in R & D yearly, and launched the technical studies involving energy saving, safety,
fashion, intelligence, environmental protection, power transmission and manufacturing process with great progress. Benni-BEV,
CS15, CX70 and other major models have been successfully launched.
1、R & D process and system optimization meeting development needs
Changan Automobile released the product development process, optimized the problems found during the development process
and enhanced the operability and practicability of the process.
Changan Automobile optimized the global R & D layout and adjusted the adaptability of the organization to ensure the high
efficiency of R & D and production. The establishment of Hefei R&D resulted by the relocation of Shanghai R&D to Hefei Changan
Automobile made R & D and production area zero distance, which was favorable to solve problems fast and efficiently. An
intelligent technology development center was established for adapting intelligent strategy construction, and for specializing in
intelligent technology research and development; signed a contract with Plug and Play, the largest technology incubator in Silicon
Valley of the United States and officially moved to Silicon Valley.
2、Focus on the improvement of fashion, intelligent and green technologies
Firstly, for fashion, styling familization is forming and the styling familization features can be found on the third generation of
the products. Secondly, the intelligent technology is growing up. The national debut of intelligent level 0, level 1 and online map
Chongqing Changan Automobile Company Limited 2016 Annual Report
function have been realized, the intelligent internet product incall 2.0/3.0+ has been promoted and applied on all models. Besides, the
first 2000km autonomous drive road test in China has been completed. Thirdly, with an intimate knowledge in core technology of
green energy saving. The power train products have been applied in the advanced technology, 48V hybrid technology has been
completed for system packaging, energy-saving high performance engines such as D20TGDI and S10TGDI have been development
and applied on the debut models with some performance indicators reaching the international advanced level. Master the five core
technologies of new energy, pass the ISO26262 functional safety certification, and achieve three No.1 in the industry in China.
National key development program \"new energy vehicles\" -- lightweight BEV integration development technology has been
successfully approved; national science and technology supporting program \"Changan Automobile plug-in hybrid car development
and industrialization\" project has been smoothly approved.
3、Launching a series of best-selling products
19 models have been successfully developed and launched into the market, including new Benben EV, new Eado, CS15, CX70
and other major models among which the sales volume of CS15 and CX70 can reach more than 10 thousand monthly.
The world debut of new Eado was equipped with 48V hybrid technology; perfect matching of D20TGDI engine and CS95 mass
production model; the first three cylinder turbocharged direct injection engine S10TGDI and model Alsvin V7 equipped with
S10TGDI engine were launched into the market during Chengdu auto show.
The steady growth of Changan Automobile’s R & D strength is recognized by the industry. \"Vehicle active and passive safety
key technology research and application\" and \"Design method research and application on vehicle body structure and acoustic
packaging lightweight” projects won the first-class prize of China Automobile Industry Science and Technology Award, and the
Company becomes the only one who won the first prize twice.
4、The brand growth and elevation speeding up
In 2016, Changan Automobile first created annual sales of more than 3 million, with China brand passenger car sales volume
of over one million twice in a row, and kept its China brand leading position. The number of Changan Automobile users has
exceeded 14 million, with the largest user group of Chinese brand vehicles. The classic products are forming, 8 products’ monthly
sales volume exceeded ten thousand each, among which the highest monthly sales volume of CS75 was 39200 units. Changan New
Eado won the Handling Stability Performance Gold Award and the Outstanding Performance Award in 2016 CCPC (Chinese mass
production car performance contest). In 2016 Annual Festival of China Automobile, Changan Automobile was highly recognized and
won the annual awards, Changan CS15 won the 2016 Annual Small SUV. In China Brand Forum sponsored by People's Daily,
Changan Automobile won the China Brand Innovation Award. The first pilot of carrying out driverless test, traveling for two
thousand km, with a maximum speed of 120 km / h, created the longest China vehicle travel driverless test records. Selected into
\"2017 National Brand Plan\", the Company becomes an excellent representative of transforming to innovation China, quality China
and brand China in China auto industry. According to IPSOS brand monitoring report, Changan Automobile brand has a new image
of \"high quality product provider\", Changan Automobile product has a image of \"high quality\" and \" high quality reliability\"; and
Changan Automobile is the leader of the industry, the representative of the Chinese independent brand, and a fast growing enterprise.
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chapter 4 Business Discussion and Analysis
I、Overview
In 2016, the scale of China's auto market sales climbed a new high, and the cumulative annual production and sales surpassed
more than 28 million, which increased 14.5% and 13.7% respectively, and once again refreshed the global single market history,
ranking No.1 as the world largest car market for eight consecutive years. The Chinese market has been close to one-third from a
quarter in the proportion of the global market with a 30 million-class car market gradually forming. In 2016, the scale of passenger
car production and sales reached 24.42 million and 24.37 million respectively, which increased by 15.5% and 14.9% on a
year-on-year basis.
The 2016 was the first year of the 13th Five-Year-Plan, by innovating strategy management, maintaining strategic
concentration, carrying out both independent development and joint venture cooperation and implementing leading business plan, the
main strategic objectives were completely achieved. The vehicle production and sales exceeded 3.06 million on record, and the
market share was 10.9%. The company maintained ranking the fourth in the industry and has about 14 million users worldwide. At
the same time the Chinese-brand passenger car’s brand, product and technology and system forces continue to enhance, which lay a
solid foundation for the future development of Changan Automobile, and strengthen the Changan Automobile's confidence and
determination of building the world-class enterprise.
Changan Automobile implemented the leading business plan, and strived to build a world-class automotive enterprise.
Company would seize the key strategic opportunities in the next ten years, especially in the next 3-5 years, to realize rapid, healthy
and sustainable development, the company’s carrying out both independent development and joint venture cooperation, to accelerate
the development of the independent operation, strive to build the foundation for a world-class enterprise, further strengthen the joint
venture cooperation and innovate the development path for joint venture cooperation. Taking Chinese market as the main and
developing overseas markets actively and steadily, and also the Company will take new energy technology as a breakthrough and
information technology innovation as a means to accelerate the transformation from a traditional manufacturing enterprise to a
modern manufacturing service enterprise.
II. Analysis of Main Business
1、Overview
In 2016, the quality of the Company’s operating was improved, the Company completed the business indicators decided at the
beginning of the reporting period by the board of directors. The total sales volume was 3.0634 million, namely 103.84% of the
planed business indicators；the sales revenue was 266.031 Billion Yuan(including 100% income from joint ventures), namely
105.14% of the planed business indicators, and the consolidated statements revenue was 78.542 Billion Yuan, namely 108.93% of the
annual operating target.
2、Income and cost
（1）Composition of the operating revenue
Unit :Yuan
2016 2015 Increase/decrease
Sum Share of operating Sum Share of operating on a y-o-y basis
Chongqing Changan Automobile Company Limited 2016 Annual Report
income（%） income(%) (%)
78,542,441,7
operating revenue 100.00% 66,771,580,528 100.00% 17.63%
Industry
Automobile 78,542,441,757 100.00% 66,771,580,528 100.00% 17.63%
Products
Vehicles 78,506,025,517 99.95% 66,522,990,662 99.63% 18.01%
Outsourcing 36,416,240 0.05% 248,589,866 0.37% -85.35%
Area
China 77,516,026,598 98.69% 66,211,327,813 99.16% 17.07%
Overseas 1,026,415,159 1.31% 560,252,715 0.84% 83.21%
（2）Accounted for more than 10% of the company's operating income or operating profit of the industry,
products or area
√ Applicable □ Not applicable
Unit : Yuan
Increase/decre
Increase/decrease
ase on a Increase/decrease
Operating on a year-on-year
Operating Cost Gross margin year-on-year on a year-on-year
Revenue basis Operating
basis Operating basis gross margin
Revenue (%)
Cost (%)
Industry
automobile 78,542,441,757 64,487,605,909 17.89% 17.63% 20.75% Down 2.13%
Products
vehicles 78,506,025,517 64,464,005,467 17.89% 18.01% 21.15% Down 2.12%
The company's statistics scope of main business in the reporting period was adjusted, and the company has adjusted its main business
data last year according to the scope in the reporting period.
□Applicable √ Not applicable
（3）Is the income from sales in kind greater than the service income
√ Yes □ No Unit：One set
Increase/decrease on a
Industry Item 2016
year-on-year basis (%)
Sales volume 3,063,403 2,776,514 10.33%
Automobile Industry
Production volume 3,042,098 2,781,368 9.37%
Chongqing Changan Automobile Company Limited 2016 Annual Report
Stock volume 37,105 65,690 -43.52%
Market share（%） 10.90% 11.30% Down 0.4%
Note：The above sales volume and production volume are consistent with the date from the Company and its subsidiaries and JVs.
The analysis over market share is based on the data from China Automobile Industry Association.
Notes to the year-on-year change of the relevant data by over 30%
√Applicable □Not applicable
By the impact of the purchase tax policy adjusted and the massive release of the car demand in December 2016, the auto retail sales
increased significantly year on year, which led to a substantial decline in inventories.
（4）The company has signed a major sales contract as of the time of the fulfillment of this report
□Applicable √ Not applicable
（5）Cost
Unit: Ten Thousand Yuan
2016
Increase/decrease on a
Industry Ratio in Ratio in
Item year-on-year basis
classification Amount operation cost Amount operation cost
(%)
(%) (%)
Automobile Product Sale 6,446,401 99.96% 5,321,225 99.64% 21.15%
Production Outsourcing 2,360 0.04% 19,446 0.36% -87.86%
Total 6,448,761 100% 5,340,671 100% 20.75%
（6）Notes to the change of the consolidated scope in the reporting year
√Applicable □ Not applicable
During the reporting period, Shenzhen Changan New Energy Automobile Service Co., Ltd. a wholly owned subsidiary of the
Company, was registered and established in Shenzhen, China, and will be brought into the consolidated statements of the Company.
During the reporting period, Changan Automobile has already acquired two wholly owned subsidiaries Hebei Changan Commercial
Vehicle Sales Co., Ltd. and Nanjing Chuanyu Changan Automobile Sales Co., Ltd., so this year they are no longer included in the
consolidated statements.
（7）Significant change or adjustment of the business, products or services in the reporting period:
□ Applicable √ Not applicable
（8）Main Customers and principal suppliers
Main Customers
Chongqing Changan Automobile Company Limited 2016 Annual Report
Total sales amount to top 5 customers (RMB) 7,373,098,314.02
Proportion of sales to top 5 customers in the annual sales (%) 9.39%
Sales amount of the related party in the top 5 customers（(RMB） 4,655,169,755.75
Proportion of sales amount of the related party in the top 5 customers（%） 5.93%
Top 5 customers
Unit : Yuan
company Sales value proportion in total sales（%） Whether it is a related
Serial No. party
1 First 2,127,413,232.34 2.71% Y
2 Second 1,563,527,688.74 1.99% N
3 Third 1,364,853,472.13 1.74% Y
4 Fourth 1,162,903,051.28 1.48% Y
5 Fifth 1,154,400,869.53 1.47% N
total 7,373,098,314.02 9.39%
Principal suppliers
Total purchase amount to top 5 suppliers (RMB) 8,136,296,821.13
Proportion of purchase to top 5 suppliers in the annual purchase (%) 12.78%
Purchase amount of the related party in the top 5 suppliers (RMB) 7,172,829,841.46
Proportion of purchase amount of the related party in the top 5 suppliers（%） 11.27%
Top 5 suppliers
Unit : Yuan
Proportion in the total
Serial No. Company name Purchase value Whether it is a related party
purchase(%)
1 First 2,343,854,848.51 3.68% Y
2 Second 2,030,474,310.08 3.19% Y
3 Third 1,572,181,323.93 2.47% Y
4 Fourth 1,226,319,358.94 1.93% Y
5 Fifth 963,466,979.67 1.51% N
Total 8,136,296,821.13 12.78%
3、Expenses
Unit: Ten Thousand Yuan
increase/decrease
Item 2016
（%）
Selling expense 529,374 495,452 6.85%
Chongqing Changan Automobile Company Limited 2016 Annual Report
G&A expense 512,886 489,921 4.69%
Financial expenses -30,539 -15,081 -102.50%
During the reporting period, the big decrease of financial expenses was due to the increase of bank deposits and the interest.
4、Research and Development Expenditure
√Applicable □ Not applicable
R&D investment Table
2016 2015 Changes in ratio
Labor Number 6,640 6,234 6.51%
Proportion of labor in the Company 16.13% 16.64% Down 0.51%
Investment value(100 million yuan) 32.03 25.63 24.97%
Proportion of investment in the
4.08% 3.84% Up 0.24%
revenue
Capitalization(100 million yuan) 9.45 6.49 45.61%
Proportion of capitalization in R&D
29.50% 25.32% Up 4.18%
investment
Significant Change of the proportion of R&D investment in the revenue
□Applicable √Not applicable
Significant change of the proportion of capitalization in the R&D investment
□Applicable √Not applicable
5、Cash Flow
Unit: Ten Thousand Yuan
Item 2016 2015 Increase/decrease（%）
net cash flows from operating activities 228,655 541,489 -57.77%
net cash flows from investing activities 543,721 426,776 27.40%
net cash flows from financing activity -244,965 -131,946 -85.66%
Net increase in cash and cash equivalents 526,751 836,307 -37.01%
Cash and cash equivalents at end of year 2,299,343 1,772,592 29.72%
Notes to the year-on-year change of the relevant data by over 30%
√Applicable □ Not applicable
In 2016, the net cash flow generated from operating activities was 2.287 Billion Yuan, a year-on-year decrease of 3.128 Billion
Yuan, mainly resulting from the increase of cost and expenses; the outflow of the net cash flow generated from financing activities
was 2.45 Billion Yuan, a year-on-year increase of 1.13 Billion Yuan, mainly resulting from the substantial increase of cash dividends
distribution year on year in 2016.
Chongqing Changan Automobile Company Limited 2016 Annual Report
Notes to the significant difference between cash flow from operating activities and net profit in the reporting year
√Applicable □ Not applicable
As for the significant difference between cash flow from operating activities and net profit in the reporting period, refer to the
item “Supplementary Information of the Cash Flow Statement” in the Financial Statements Note 56.
III. Analysis of non principal business
□ Applicable √Not applicable
IV. Assets and liability
1. The significant changes of the assets
Unit: Ten Thousand Yuan
Dec.31,2016 Dec.31,2015
Ratio in Increase/
Ratio in YoY change
Item total decrease instructions
Amount Amount total assets （%）
assets (%)
（%）
（%）
Mainly due to the net cash flow
generated from operating activities
Monetary
2,478,250.46 23.27% 1,803,510.97 20.17% 3.10% 37.41% and the increase in cash dividends
capital
from Changan Ford and Changan
Mazda.
Mainly due to the increase in the
Accounts
149,883.70 1.41% 87,547.96 0.98% 0.43% 71.20% sales revenue of the Group during
receivable
the reporting period.
Mainly due to the increase in the
sales volume of new energy
Other
140,339.92 1.32% 100,148.52 1.12% 0.20% 40.13% vehicles and the increase in the
receivables
amount of state subsidies received
during the reporting period.
The increase in the balance of
other current assets was mainly
due to the implementation of the
\"VAT Accounting Rules\"
(Accounting [2016] No. 22) in
Other current 2016, the \"VAT payable\", the
92,606.03 0.87% 890.97 0.01% 0.86% 10293.84%
assets \"non-VAT\" , \"To be deducted input
tax\", \"to be certified input tax\",
\"VAT tax credits\" and other details
of the debit balance of the subject,
by the end of 2016 by the balance
sheet \"tax payable\" project
Chongqing Changan Automobile Company Limited 2016 Annual Report
reclassified to \" Other current
assets \".
2、The significant changes of the liability
Unit: Ten Thousand Yuan
Dec.31,2016 Dec.31,2015
Ratio in total Ratio in total Increase/de YoY
Item Instructions
Amount assets Amount assets crease (%) change
(%) (%)
Mainly due to the increase in sales
Accounts income of the Group during the
1,988,058.01 18.67% 1,497,382.66 16.75% 1.92% 32.77%
payable reporting period and the increase in
purchases.
Mainly due to the increase in the
Group's performance during the
Taxes payable 55,568.15 0.52% 35,674.92 0.40% 0.12% 55.76%
reporting period and due to the
reclassification of the tax payable.
The decrease in the balance of
bonds payable at the end of the
Bonds payable - - 197,510.26 2.21% -2.21% -100.00% year is due to the transfer of
non-current liabilities due within
one year.
3、Assets and liabilities measured by fair value
Unit: Ten Thousand Yuan
Gain/loss on fair Cumulative fair Impairment
Amount at year
value change in value change provisions in the Amount at year end
Item beginning
the reporting recorded into equity reporting period
period
Financial assets
Financial assets available
35,145.00 -9,833.50 23,023.50 - 25,311.50
for sales
Subtotal of financial assets 35,145.00 -9,833.50 23,023.50 - 25,311.50
Others
Total 35,145.00 -9,833.50 23,023.50 - 25,311.50
Chongqing Changan Automobile Company Limited 2016 Annual Report
Financial liabilities
Whether the measurement attributes of main assets in the reporting period have significantly changed
□Yes √No
4、Property rights limits by the end of report period
Item book value at the end of this year Limited Reason
Monetary fund 1,789,072,485.39 Used to open the acceptance deposit
Obtain liquidity borrowings and obtain commercial
Accounts receivable 585,632,645.22
acceptance bills
Notes receivable 1,029,541,142.00 Notes receivable pledge to issue notes payable
Obtain liquidity borrowings and obtain commercial
Fixed assets 34,815,200.25
acceptance bills
Obtain liquidity borrowings and obtain commercial
Intangible assets 27,573,761.27
acceptance bills
Total 3,466,635,234.13
V. Analysis of Investment
1、General information
√ Applicable □ Not applicable
External investment
Investment Amount in the report period
Investment Amount in 2015（RMB） Variance rate
（RMB）
330,899,566.00 1,185,552,000.00 -72.09%
Particulars of investees
Company Name Principal business Proportion in the investees’ equity (%
Shenzhen Changan New Energy Car rental, auto and spare parts sales, car
100%
Automobile Service Co., Ltd. after-sale service
Chongqing Changan Connected Car Changan brand vehicle sales, sales of auto
100%
Technology Co., Ltd. parts, etc
Engine, transmission and other advanced
Changan UK R&D Center Limited 100%
powertrain design and development
Development services, transferring services,
Corun Hybrid Technology Co.，Ltd. consulting and communication services on 8.78%
energy saving technology ; auto parts sales and
Chongqing Changan Automobile Company Limited 2016 Annual Report
other services
2、Major equity investment in the reporting period
Unit: Yuan
Progress Disclos
Disclosur
Company Principal Investmen Investment Share-holdin Capital Investmen on book Any ure
Partner e index(in
name business t mode amount g ratio source t period closing litigations date(in
case)
date case)
Announcement
New
on establishment
Shenzhen establishment
Car rental, of Shenzhen
Changan New completed,
auto and spare Newly Changan New
Energy Its own Indefinite industrial and
parts sales, car establishe 50,000,000 100% No No 2016-5-19 Energy
Automobile capital duration commercial
after-sale d Automobile
Service Co., registration
service Service Co.,
Ltd. procedures
Ltd. (Bulletin
completed
No: 2016-55)
Announcement
Capital
on capital
increase
Chongqing increase to
Changan completed,
Changan Chongqing
brand vehicle Increasing Its own Indefinite industrial and
Connected Car 40,000,000 100% No No 2016-5-19 Changan
sales, sales of capital capital duration commercial
Technology Connected Car
auto parts, etc registration
Co., Ltd. Technology Co.,
procedures
Ltd. (Bulletin
completed
No: 2016-56)
Capital Announcement
Engine,
increase on capital
transmission
completed, increase to
Changan UK and other
Increasing Its own Indefinite industrial and Changan UK
R&D Center advanced GBP 5,790,000 100% No No 2016-6-14
capital capital duration commercial R&D Center
Limited powertrain
registration Limited
design and
procedures (Bulletin No:
development
completed 2016-63)
Development Hunan The Company Announceme
services, Corun has already nt on the
technology Its own
Corun Hybrid transferring New paid Corun fourteenth
Increasing investment capital, Indefinite 2016-11-2
Technology services, 8.78% Energy Hybrid No session of the
capital 89,250,000 + cash technolog duration
Co.，Ltd. consulting and Co., Ltd., Technology seventh board
100,840,000 y
communicatio Shanghai Co., Ltd in Jan of directors
n services on Maple 2017. meeting
Chongqing Changan Automobile Company Limited 2016 Annual Report
energy saving Automobil 100,840,000 (Bulletin No:
technology ; e Co., Ltd., Yuan, and the 2016-117)
auto parts Zhejiang technology
sales and Geely investment
other services Holding part is
Group Co., transferring.
Ltd.,
Kunming
Yunnei
Power Co.,
Ltd.,
Chongqing
Changan
new
Engergy
Automobil
e Co. Ltd.
Total -- -- 330,899,566 -- -- -- -- -- -- -- --
3、Major non-equity investment in the reporting period
Please refer to Notes V to Financial Statement Item 14” Construction in progress”.
4、Investment of Financial Assets
(1)Equity-holdings in financial enterprises
√ Applicable □ Not applicable
Opening
Initial Opening Closing Closing Gain/loss in
equity Closing
Company Company investment equity equity equity the reporting Accounting Equity
holding book value
name variety cost (RMB Holdings holdings Holdings period (RMB title source
ratio (RMB Yuan)
Yuan) (share) (share) （%） Yuan)
(%)
Tradable
Southwest Securities Initial
50,000,000 35,500,000 0.76% 35,500,000 0.76% 253,115,000 4,615,000 financial
Securities Firm investment
assets
(2) Derivative Investments
□ Applicable √Not applicable
Chongqing Changan Automobile Company Limited 2016 Annual Report
5、Use of raised funds
√Applicable □Not applicable
（1）The overall use of funds raised
Unit: ten thousand yuan
Total amount of raised funds 198,289.02
Total raised capital input in the reporting period 107,398.51
Accumulative raised capital input 198,289.02
Total raised capital of which the use was changed in the
reporting period
Accumulative raised capital of which the use was
changed
Proportion of accumulative raised capital of which the
0%
use was changed （%）
Description of the overall use of funds raised
The board of directors of the Company state that the Company had followed the Guidelines of Normative Operation of Listed
Companies issued by Shenzhen Stock Exchange and relevant provisions, and disclosed the deposit and the actual use of the raised
fund timely, truly, accurately and completely, there’s no violation in raised funds management. The Company fulfilled the
obligation of disclosure of the investment and progress of the raised funds faithfully.
（2）Situation of the promised project for raised funds
Unit: ten thousand yuan
Total amount of funds raised 198,289.021
Total raised capital of which the use Total raised capital input in 2016 107,398.51
-
was changed in the reporting period
Accumulative raised capital of
-
which the use was changed
Proportion of accumulative raised Accumulative raised capital input 198,289.02
capital of which the use was -
changed （%）
Projects Date when
invested with Investment the project Profit Material
Investment Reach the
raised capital as Project Raised capital Input in Accumulative progress up reaches generated change in
after expected
promised and change input as the reporting input up to the to the the in the the project
adjustment( profit or
investments d or not promised year period end (2) period-end expected reporting feasibility
1) not
with over-raised (%)(3)＝ usable period or not
capital (2)/(1) condition
Chongqing Changan Automobile Company Limited 2016 Annual Report
Investment
project
promised
Changan
Automobile
City passenger
N 99,144.51 99,144.51 63,747.03 99,144.51 100.00% 2017/7/31 - N N
car
construction
project
Changan
Automobile
Engine
Capacity N 99,144.51 99,144.51 43,651.48 99,144.51 100.00% 2017/6/30 8,276.76 N N
Structure
Adjustment
Project
Total - 198,289.02 198,289.02 107,398.51 198,289.02 100.00% -- 8,276.76 -- --
Over-raised
funds
Return bank
- - - - - - -- -- -- --
loan (If any)
Supplement
working - - - - - - -- -- -- --
capital (If any)
Total - - - - - - -- -- -- --
Total - 198,289.02 198,289.02 107,398.51 198,289.02 100.00% -- 8,276.76 -- --
Note 2：
According to the announcement of non-public offering of shares, Changan Automobile City passenger car
construction project can produce C201, C301, and new medium-size sedan, new medium-size hatchback four models
Reason for
series with total volume of 240,000 / year. Meanwhile, it can achieve annual operating income of 1,791,090（RMB
failing to
10 thousand yuan, the same as below）, after-tax profit of 35,768. As of December 31, 2016, the project was still in
reach
the construction process, and did not produce tangible benefits.
scheduled
According to the announcement of non-public offering of shares, Changan Automobile engine capacity structural
progress or
adjustment projects include the 300,000 units / year H series engine capacity by rectifying the G series engine
projected
production line to form 150,000 units / year H series engine capacity, and the C series engine production line to form
income
150,000 units / year S series engine production capacity, and newly establishing the 150,000 / year EA series engine
(explain one
2C pieces of mechanical processing capacity. The finished project can achieve the annual operating income of
project by one
622,335 with after-tax profit of 64,385. In 2016, S series engine project and H series engine part of the production
project)
line achieved the mass production with the operating income of 108,184.98, and the net profit of 8,276.76. The
project did not meet the expected benefits as stated: on one hand, only part of the production lines of S series engine
project and the H series engine project reached the production status with small production and lack of capacity
Chongqing Changan Automobile Company Limited 2016 Annual Report
utilization; on the other hand, the production line of H series engine project and EA series engine project is still in
the construction stage with no practical benefits.
Explanation
on significant
changes in None
feasibility of
projects
Amount,
usage and
usage progress None
of over-raised
capital
Change of the
implementatio
n location of
any raised None
funds
investment
project
Adjustment of
the
implementatio
n
None
method of any
raised funds
investment
project
Advance input As of September 30, 2016, the fund raised by the company itself to invest raised-fund project in advance was
and exchange 2,071,095.6 thousand yuan, validated by &young Huaming Accounting Firm which issued Ernst&Young Huaming
of any raised (2016) No. 60662431_D07 special verification report. On October 26, 2016, the company’s 13th meeting of the 7th
funds board of directors passed that, the company raised capital 1,982,890.2 thousand yuan to replace self-raised funds of
investment projects which were invested raised fund in advance. The above-mentioned funds had been replaced by October
project 2016.
None
Idle raised
capital for
temporarily
None
supplementing
working
capital
Outstanding
As of December 31, 2016, the proceeds have been fully utilized.
raised funds in
Chongqing Changan Automobile Company Limited 2016 Annual Report
project
implementatio
n and reasons
Use and
whereabouts
None
of unused
raised fund
Note 1：The net proceeds raised by the Company amounted to RMB 1,982,890,237.60, which was lower than the total amount of the
raised proceeds of the project. According to the issuance plan, the difference of the issuance of funds raised cannot meet the
project needs shall be solved by the company.
（3）Raised funds to change the situation of the project
During the reporting period, the raised funds project has not changed.
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
Main
Registered Equity Total
Name Main businesses operating Net profit
capital held assets
income
Hebei Changan Automobile Co., Ltd. 46,469 94.22% Produce and sell auto and parts 150,359 353,017 10,038
Nanjing Changan Automobile Co., Ltd. 60,181 84.73% Produce and sell auto and parts 202,755 653,555 -3,644
Hefei Changan Automobile Co., Ltd. 77,500 100% Produce and sell auto and parts 348,664 782,108 13,336
Baoding Changan Bus Manufacture
3,000 100% Produce and sell auto and parts 359,820 279,047 5,317
Co., Ltd.
Chongqing Changan Automobile Company Limited 2016 Annual Report
Changan Ford Automobile Co., Ltd 24,100 USD 50% Produce and sell auto and parts 5,195,367 12,645,168 1,816,518
Subsidiaries acquired and sold in the reporting period
√ Applicable □ Not applicable
During the reporting period, the Company has absorbed two wholly-owned subsidiaries of Hebei Changan Commercial Vehicle Sales
Co., Ltd. and Nanjing Sichuan-Chongqing Changan Automobile Sales Co., Ltd., and handled the cancellation procedures according
to legal procedures during the reporting period。
Acquisition and disposal of subsidiaries On the overall production and operation
Name
during the reporting period and performance impact
Hebei Changan Commercial Vehicle Sales
absorb and merge None
Co., Ltd.
Nanjing Sichuan-Chongqing Changan
absorb and merge None
Automobile Sales Co., Ltd.
VIII. Structural main business under the company control
□Applicable √Not applicable
IX. The company's future development prospect
1、Industry competition pattern and trend of development
In 2016, China's economy was running smoothly, the growth rate of the country's GDP was 6.7%. China's economic
development has entered into a “new normal” status with obvious new normal features of growth rate shifting, energy conversion and
structure optimization. From the perspective of structural optimization, the proportion of service continued to increase, the
contribution rate of consumption accounted for nearly 2/3, high-tech industries accelerated to grow. From the perspective of
transformation, the GDP unit energy consumption decreased by 5%; the proportion of clean energy increased, the efficiency of
enterprise has been improved; and the quality and efficiency of economic growth has been promoted.
In the aspect of industry trend, the growth sources of China auto market is transferring from first-tier, second-tier cities to
third-tier, fourth-tier and lower tier cities; China is transforming from a big car-making country into a powerful car-making country,
and the proportion of China brand cars is growing up continuously; the adjustment of industry structure is deepening, the market is
playing a bigger role in the allocation of resources, the automakers are facing tougher market competition, and the new energy cars
will become a new hot point.
It’s expected in 2017 the growth rate of China auto market will be 2~4%, with sales volume of about 29 million to 30 million
vehicles.
2、Development strategy of the Company
Changan Automobile should seize the key strategic opportunity in next ten years, develop more potential customers and realize
rapid and sustainable development, accelerate the development of Changan brand business, strengthen the construction of customer,
brand, product and technology, service, system and business ecosystem to build a foundation toward the world first-class enterprise;
Changan Automobile shall pay more attention to \"Internet +\" and new energy technology, and the advantages in different periods and
integration advantages of traditional vehicles, intelligent connected vehicle, new energy vehicle to achieve stable and high quality
transformation. Changan Automobile shall adhere to the principle of marking Chinese market as the main body and actively explore
the overseas markets, promote the deepening of the reform vigorously, and continuously enhance the development momentum and
Chongqing Changan Automobile Company Limited 2016 Annual Report
vitality. Changan Automobile will adhere to the development by \"two legs\", further strengthen the joint venture cooperation, and
innovate the road of joint development; To achieve an annual output of 6 million vehicles by 2025, and strive to become a world's
first-class automobile company, ensure Changan Automobile's position in the first camp of China auto industry, and try best to make
independent brands among the world's top ten.
Firstly, customer oriented, Changan Automobile will try best to provide customers with the ultimate products and service
experience, upgrade industrial chain with customers' thinking, maintain timely, accurate and close interaction with customers,
excavate customer’s potential needs by big data, even allow customers to participate in product design and provide personalized
products and services. Besides, we will take vehicle information system as the entrance, build automotive ecosystem by combining
with relevant parties, consolidate services related to car life and provide one-stop service experience for customers.
Secondly, technological innovation, Changan Automobile will adhere to the appropriate leading technology strategy and give
full play to the advantages of our global R & D layout and China's first-class R & D strength. By implementing familization, the
platform-based mode, modularization and generalization, Changan Automobile builds technology labels in seven aspects such as
styling, energy saving, safety, intelligence, health, performance and reliability. At the same time, Changan Automobile integrate the
global resources, strengthen the research and application of advanced technologies and advanced materials, and continue to transform
the leading R & D capability into product strength.
Thirdly, product, Changan Automobile will focus resources to create the ultimate, fantasy, and screaming products, and create
strong partnership to support the product quality improvement by strengthening strategic cooperation with suppliers; and provide
personalized products to customers through product platform-based and flexible manufacturing; improve the product quality and
cultivate Changan brand continuously by upholding the excellence artisan spirit, fine manufacturing and process standard; accelerate
the development of new energy vehicle and traditional vehicles energy-saving technology to provide green and environmental
protection products; innovate the business mode, combine with the government and the dominant partner, focus on the market and
product and arrange car sharing business to provide customer with mobile traveling solutions.
Fourthly, market development, Changan Automobile will regard Chinese market as the main and develop overseas market
positively and steadily; focus on third-tier, fourth-tier and lower tier city markets, accelerate the integration of traditional offline
channel. The online platform, miniaturization, specialization, diversification and community transformation shall be the way for the
offline channel development and online platform will be jointly built with dealers; For overseas market, Changan Automobile will
take \"The Belt and Road\" as a strategic opportunity to explore by focusing on resources, risk control and the support from national
resources and strength to boost Changan Automobile's strategy of “going abroad”.
Fifthly, profitability, Changan Automobile will boost brand premium by quality improvement and product structure
adjustment; extend industrial chain and develop new profit growth by mode innovation; realize technology cost reducing by
implementing platform-based, modularization and generalization; realize management cost reducing by improving efficiency;
preserve and increase capital value by capital operation; and balance short-term and long-term investment to ensure long-term
profitability.
Sixthly, reform and innovation, Changan Automobile will accelerate reform speed, break through system shackle and
establish corporate governance to meet the needs of market economy; take simplification and high efficiency as the principle to
promote organization reform and improve collaboration efficiency; take market-oriented strategy as the principle to optimize the
incentive and constraint mechanism, combine the employees’ benefits with the company’s benefits to stimulate the vitality of the
staffs; establish mechanism of innovation, fault tolerance and error correction incentive; advocate \"customer driven, staff-oriented,
integrity and dedication, and continuous improvement\" culture around all employees; implant customer awareness, internet thinking,
globalization thinking, full value chain thinking and cross-border cooperation thinking in all staff’s mind, and use innovative thinking
to find the new blue ocean market and new business modes.
3、Business plan
The business objective of the board of directors of the company in 2017 is: work hard to produce and sell more than 3.3 million
Chongqing Changan Automobile Company Limited 2016 Annual Report
vehicles. In order to realize the above objective, the Company will \"focus on weak points, increase revenue, cut expenditure, and
conduct the reform and innovation so as to realize the overall elevation\" and hold firmly the strategic belief of “Vision 2025” . The
Company will adhere to reform and innovation, promote transformation and upgrading, create ultimate fantasy, screaming classic
products, increase scale efficiency, fulfill the annual business objectives and focus on the following works: First, strongly push seven
reforms and innovations; secondly, strengthen the reform and innovation of marketing and capability building; thirdly, conduct lean
management in product planning and accelerate R & D and technology realization; fourthly, conduct cost reduction, efficiency
elevation and lean management ; fifthly, define OTD (order to delivery) as the main line to conduct the lean manufacturing of the
whole industrial chain; sixthly, promote quality control and continuously improve customer satisfaction; seventhly, focus on the
communication innovation, and promote the brand reputation upward; eighthly, continue to promote customer management and build
customer ecosystem; ninthly, improve the process system capability; tenthly, accelerate system upgrading and lean management and
implement information technology deeply; eleventhly, optimize organization and stimulate vitality to improve staff efficiency;
twelfthly, party building will support production and management; thirteenthly, strengthen the construction of the party's working
style and carry out compliance management.
4、Capital requirement and use plan of 2017
To realize the corporate strategic objectives, the Company capital expenditure is expected to reach RMB 6.537 billion yuan in
2017, among which the investment of fixed assets is RMB 5.621 billion yuan and the equity investment is RMB 916 million yuan.
The scope of the investment in fixed assets mainly includes production capacity construction; product structure adjustment; R&D
capability construction; logistics and foundation construction; technological transformation on security and environmental protection;
technological reconstruction and etc. Equity investment mainly includes the capacity building of overseas production and market
development projects, upgrading projects on overseas research and development, new energy and intelligent industrialization projects.
The Company will perform the approval procedures for corresponding specific projects and publicize them according to the
implementation plan of new projects and related provisions of the listing rules. Based on the project progress situation and the
Company's business and financing environment, the Company will study and formulate various channels of financing and capital use
plans, improve the efficiency of capital use and reduce the capital cost.
5、Possible risks
In 2017, the company will be faced with five risks such as market, policy, regulation, Chinese brand development and etc.:
（1）Market risk: future development is compressed by frequent launch of new cars, price war and unceasing battles.
Counter measures: seize the key period of the next three years, rapidly improve the scale of independent brands, actively expand
overseas markets, and enhance the competitiveness in the international market.
（2）Policy and regulation risks: technology and cost are challenged by more strict policies and regulations.
Counter measures: keep up with policy trends, strengthen policy research, and pre-arrange response plan.
（3）Chinese brand development risk: Chinese brand price and upward development are challenged by JV product price dropping,
besides, lack of investment makes upward development more difficult.
Counter measures: innovate modes, accelerate strategic transformation, integrate advantageous resources and achieve the fast
development.
（4）System mechanism risk: system mechanism shall be reformed and optimized gradually, efficiency and vitality shall be
further improved, and system mechanism for the market-oriented competition is inadequate.
Counter measures: comprehensively deepen the reform, improve efficiency, stimulate vitality, activate motivation and build
core competitiveness.
（5）Business mode risk: rapid development of intelligent internet and big data technologies attracts internet companies' attention
on the automobile industry, and the traditional business model is changing.
Counter measures: customer-orientation, study new business mode under \"internet +\", promote the transformation to modern
Chongqing Changan Automobile Company Limited 2016 Annual Report
manufacturing service enterprises and build automotive ecosystem.
X. Registration form for reception, research, communication, interview，etc. during the
reporting period
Type of
Date Manner Reception Reception Object Index
Object
For more information, refer to “Changan Automobile:
On-Site
2016.01.14 Agency First State Investment Investor Relation Record Form on Jan.14, 2016 ”
Survey
issued on http://irm.cninfo.com.cn on Jan.15, 2016
For more information, refer to “Changan
On-Site Invesco Power Shares、 Automobile: Investor Relation Record Form on
2016.01.15 Agency
Survey Macquarie Securities Jan.15, 2016 ” issued on http://irm.cninfo.com.cn on
Jan.18, 2016
Matthews International For more information, refer to “Changan Automobile:
On-Site
2016.01.18 Agency Capital Management, LLC Investor Relation Record Form on Jan.15, 2016 ”
Survey
issued on http://irm.cninfo.com.cn on Jan.19, 2016
China International Capital
For more information, refer to “Changan Automobile:
On-Site Corporation、
2016.01.20 Agency Investor Relation Record Form on Jan.20, 2016 ”
Survey Norway Sovereign Wealth
issued on http://irm.cninfo.com.cn on Jan.21, 2016
Fund
Guotai Junan Securities 、
China Universal Asset
Management、Pingan Asset
Management 、Aegon For more information, refer to “Changan Automobile:
On-Site
2016.01.21 Agency Industrial Fund Investor Relation Record Form on Jan.21, 2016 ”
Survey
、China International Capital issued on http://irm.cninfo.com.cn on Jan.25, 2016
Corporation、Huarong
Securities 、Harvest
Securities 、China Securities
Guotai Jun’an Securities、
For more information, refer to “Changan Automobile:
On-Site Western Securities、Huarong
2016.01.29 Agency Investor Relation Record Form on Jan.29, 2016 ”
Survey Securities、Tianan Property
issued on http://irm.cninfo.com.cn on Feb.1, 2016
Insurance
Southwest Securities 、Tianan
Property Insurance、HSBC For more information, refer to “Changan Automobile:
On-Site
2016.02.03 Agency Global Asset Management、 Investor Relation Record Form on Feb.3, 2016 ”
Survey
China Southern Fund、UBS issued on http://irm.cninfo.com.cn on Feb.4, 2016
SDIC Fund
2016.02.19 On-Site Agency Point Asset Management、 For more information, refer to “Changan Automobile:
Chongqing Changan Automobile Company Limited 2016 Annual Report
Survey CITIC Securities Investor Relation Record Form on Feb.19, 2016 ”
issued on http://irm.cninfo.com.cn on Feb.23, 2016
Shanghai Rightshare For more information, refer to “Changan Automobile:
On-Site
2016.02.24 Agency Investment Management Investor Relation Record Form on Feb.24, 2016 ”
Survey
Co.,Ltd issued on http://irm.cninfo.com.cn on Feb.26, 2016
Zeal Asset、Bank of
ChinaAsset Management 、
Infore Investment、Yinhua
For more information, refer to “Changan Automobile:
On-Site Fund、Hongshang Asset、
2016.02.26 Agency Investor Relation Record Form on Feb.26, 2016 ”
Survey ICBC Fund、Jianan Fund、
issued on http://irm.cninfo.com.cn on Mar.1, 2016
China International Capital
Corporation、Guosen
Securities
For more information, refer to “Changan Automobile:
On-Site
2016.03.02 Agency Ontario Teachers’Pension Investor Relation Record Form on Mar.2, 2016 ”
Survey
issued on http://irm.cninfo.com.cn on Mar.3, 2016
Aegon-Industrial Fund、
For more information, refer to “Changan Automobile:
On-Site Truvalue Asset Management、
2016.03.03 Agency Investor Relation Record Form on Mar.3, 2016 ”
Survey Fosun Group、China Post
issued on http://irm.cninfo.com.cn on Mar.7, 2016
Fund、Pingan Securities
For more information, refer to “Changan Automobile:
On-Site
2016.03.03 Agency Northeast Securities Investor Relation Record Form on Mar.3, 2016 ”
Survey
issued on http://irm.cninfo.com.cn on Mar.7, 2016
Infore Asset 、HSBC Global
Asset Management、Starrock
For more information, refer to “Changan Automobile:
On-Site Investment、South China
2016.05.11 Agency Investor Relation Record Form on May.11, 2016 ”
Survey Investment Management 、
issued on http://irm.cninfo.com.cn on May.13, 2016
China International Capital
Corporation
For more information, refer to “Changan Automobile:
On-Site Janus Capital 、CITIC Credit Investor Relation Record Form on May.12, 2016
2016.05.12 Agency
Survey Lyonnais Securities (Ⅰ)” issued on http://irm.cninfo.com.cn on May.13,
For more information, refer to “Changan Automobile:
On-Site Investor Relation Record Form on May.12,
2016.05.12 Agency Dacheng Fund
Survey 2016(Ⅱ) ” issued on http://irm.cninfo.com.cn on
May.13, 2016
For more information, refer to “Changan Automobile:
On-Site Bernstein、USS、Marshall Investor Relation Record Form on May.20, 2016
2016.05.20 Agency
Survey Wace (Ⅰ)” issued on http://irm.cninfo.com.cn on May.24,
Chongqing Changan Automobile Company Limited 2016 Annual Report
For more information, refer to “Changan Automobile:
On-Site Investor Relation Record Form on May.20, 2016
2016.05.20 Agency BNP PARIBAS
Survey (Ⅱ)” issued on http://irm.cninfo.com.cn on May.24,
For more information, refer to “Changan Automobile:
On-Site
2016.05.26 Agency Pingan Asset Management Investor Relation Record Form on May.26, 2016 ”
Survey
issued on http://irm.cninfo.com.cn on May.27, 2016
For more information, refer to “Changan Automobile:
On-Site Investor Relation Record Form on May.27, 2016
2016.05.27 Agency Minsheng Securities
Survey (Ⅰ)” issued on http://irm.cninfo.com.cn on May.30,
For more information, refer to “Changan Automobile:
On-Site Bosera Asset Management、 Investor Relation Record Form on May.27, 2016
2016.05.27 Agency
Survey Southwest Securities (Ⅱ)” issued on http://irm.cninfo.com.cn on May.30,
For more information, refer to “Changan Automobile:
On-Site
2016.06.15 Agency Mitsubishi UFJ Investor Relation Record Form on June.15, 2016 ”
Survey
issued on http://irm.cninfo.com.cn on June.17, 2016
Bluebox Financial For more information, refer to “Changan Automobile:
On-Site
2016.06.17 Agency Management corporation、SK Investor Relation Record Form on June.17, 2016 ”
Survey
Group 、Synergy Fund issued on http://irm.cninfo.com.cn on June.21, 2016
For more information, refer to “Changan Automobile:
On-Site
2016.06.20 Agency Huafu Securities Investor Relation Record Form on June.20, 2016 ”
Survey
issued on http://irm.cninfo.com.cn on June.21, 2016
For more information, refer to “Changan Automobile:
On-Site
2016.06.23 Agency Fullgoal Fund Investor Relation Record Form on June.23, 2016 ”
Survey
issued on http://irm.cninfo.com.cn on June.24, 2016
For more information, refer to “Changan Automobile:
On-Site
2016.06.28 Agency Fosun Group Investor Relation Record Form on June.28, 2016 ”
Survey
issued on http://irm.cninfo.com.cn on June.29, 2016
Orient Securities 、Fortune For more information, refer to “Changan Automobile:
On-Site
2016.07.06 Agency Securities、Changxin Asset、 Investor Relation Record Form on July.6, 2016 ”
Survey
Minsheng Securities issued on http://irm.cninfo.com.cn on July.8, 2016
For more information, refer to “Changan Automobile:
On-Site
2016.07.20 Agency UBS SDIC Fund Investor Relation Record Form on July.20, 2016 ”
Survey
issued on http://irm.cninfo.com.cn on July.22, 2016
For more information, refer to “Changan Automobile:
On-Site
2016.07.27 Agency Penghua Fund Investor Relation Record Form on July.27, 2016 (Ⅰ)”
Survey
issued on http://irm.cninfo.com.cn on Aug. 1, 2016
2016.07.27 On-Site Agency Baoying Fund For more information, refer to “Changan Automobile:
Chongqing Changan Automobile Company Limited 2016 Annual Report
Survey Investor Relation Record Form on July.27, 2016 (Ⅱ)”
issued on http://irm.cninfo.com.cn on Aug. 1, 2016
China Securities 、Fullgoal
Fund、CICC Fund、Lombarda
China Fund、UBS SDIC
Fund、Zhejiang Insurance、 For more information, refer to “Changan Automobile:
On-Site
2016.08.31 Agency Foresea Life Insurance、 Investor Relation Record Form on Aug.31, 2016 ”
Survey
Harvest Securities、Invesco issued on http://irm.cninfo.com.cn on Sep. 1, 2016
Great Wall、Hong Kong
Bowen Fund、New China
Asset
For more information, refer to “Changan Automobile:
On-Site
2016.09.12 Agency Shenzhen Minsen Investor Relation Record Form on Sep.12, 2016 ”
Survey
issued on http://irm.cninfo.com.cn on Sep.13, 2016
For more information, refer to “Changan Automobile:
On-Site
2016.09.21 Agency CITIC Securities、AROHI Investor Relation Record Form on Sep.21, 2016 ”
Survey
issued on http://irm.cninfo.com.cn on Sep.23, 2016
For more information, refer to “Changan Automobile:
On-Site
2016.09.26 Agency Eastmoney Investor Relation Record Form on Sep.26, 2016 ”
Survey
issued on http://irm.cninfo.com.cn on Sep.28, 2016
Tianhong Fund、Guotai Fund、
For more information, refer to “Changan Automobile:
On-Site Aegon Industrial Fund
2016.10.28 Agency Investor Relation Record Form on Oct.28, 2016 ”
Survey 、Zhanbo Investment、Guosen
issued on http://irm.cninfo.com.cn on Nov.1, 2016
Securities
Aegon Industrial Securities、
Minsheng Royal Fund
For more information, refer to “Changan Automobile:
On-Site Management、Starrock
2016.10.31 Agency Investor Relation Record Form on Oct.28, 2016 ”
Survey Investment、Huarong
issued on http://irm.cninfo.com.cn on Nov.2, 2016
Securities 、Pingan Leasing、
Lombarda China Fund
For more information, refer to “Changan Automobile:
On-Site Citigroup Global Markets、
2016.11.10 Agency Investor Relation Record Form on Nov.10, 2016 (Ⅰ)”
Survey Capital International
issued on http://irm.cninfo.com.cn on Nov.15, 2016
For more information, refer to “Changan Automobile:
On-Site
2016.11.10 Agency UBS Securities Investor Relation Record Form on Nov.10, 2016 (Ⅱ)”
Survey
issued on http://irm.cninfo.com.cn on Nov.15, 2016
Bank of China International、
For more information, refer to “Changan Automobile:
On-Site Boyond Funds、HFT
2016.11.11 Agency Investor Relation Record Form on Nov.11, 2016 ”
Survey Investment Management、
issued on http://irm.cninfo.com.cn on Nov.15, 2016
Beijing Yanhang Investment
2016.11.24 On-Site Agency Fosun Group For more information, refer to “Changan Automobile:
Chongqing Changan Automobile Company Limited 2016 Annual Report
Survey Investor Relation Record Form on Nov.24, 2016 ”
issued on http://irm.cninfo.com.cn on Nov.25, 2016
For more information, refer to “Changan Automobile:
On-Site Mitsubishi UFJ International
2016.11.25 Agency Investor Relation Record Form on Nov.25, 2016 ”
Survey investment trust
issued on http://irm.cninfo.com.cn on Nov.28, 2016
Three Derui Hengfeng、Lord
Abbett Asset Management、
For more information, refer to “Changan Automobile:
On-Site Jintai Insurance、Jintai
2016.11.30 Agency Investor Relation Record Form on Nov.30, 2016 ”
Survey Insurance、Cathay Future、
issued on http://irm.cninfo.com.cn on Dec.2, 2016
Orient Fund、Soochow
Securities
For more information, refer to “Changan Automobile:
On-Site Guotai Jun’an、Huaxin
2016.12.01 Agency Investor Relation Record Form on Dec.1, 2016 ”
Survey Securities
issued on http://irm.cninfo.com.cn on Dec.2, 2016
For more information, refer to “Changan Automobile:
On-Site
2016.12.13 Agency Mitsubishi UFJ Investor Relation Record Form on Dec.13, 2016 ”
Survey
issued on http://irm.cninfo.com.cn on Dec.15, 2016
Founder Securities、Huarong
For more information, refer to “Changan Automobile:
On-Site Securities、Life Insurance
2016.12.27 Agency Investor Relation Record Form on Dec.27, 2016 ”
Survey Asset Management 、Orient
issued on http://irm.cninfo.com.cn on Dec.28, 2016
Securities
Reception Times
Number of Agencies
Number of Individuals
Number of other entities
Whether to disclose undisclosed important
information No
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chapter 5 Important Matters
Ⅰ.Company common stock profit distribution and capital reserves converting into share
capital
During the reporting period, the common stock profit distribution policy, especially the formulation, implementation or
the adjustment situation of cash dividend policy.
√ applicable □ not applicable
According to the China Securities Regulatory Commission requirements, in combination with the practical situation of the
company, the Company has rectified the “Articles of Association” and clarified about the distributable profit caliber, dividend
distribution way, principle, form, cash dividend conditions and proportion, stock dividend condition, plans to set up and review
procedures, the implementation, the conditions of distribution policy adjustment, and decision-making procedures, etc, to strengthen
the supervision function of independent directors in the profit distribution plan, policy adjustment, and strengthen the guarantee
system of the dividend return for investors. The company’s specific distribution policy: an annual profit of cash dividend payment
shall not be less than 15% of the realized consolidated profit available for distribution, and not less than any on the principle of profit
for three consecutive years, the cumulative distribution of cash the consolidated financial statements for three years to achieve an
average annual allocation of 45% of profits. Company reported profit distribution plan and equity shares in line with the relevant
provisions of the Articles of Association and relevant provisions.
During the reporting period, profit distribution plan and capital reserves converting into share capital plans conforming to the
relevant provisions of the company's articles of association, etc.
Special Statement for Cash Dividend Policy
Whether comply with the company's articles of association or requirements of
Yes
resolutions of the shareholders' general meeting:
Whether the standard of distribution and the proportion is clear: Yes
Whether the related decision-making process and mechanism is complete: Yes
Whether the independent directors play a proper role: Yes
Whether the small and medium-sized shareholders have the chance to fully express
Yes
their views and demands, whether the legitimate rights and interests get fully protected:
Whether cash dividend policy is adjusted or changed, whether the conditions and
Not Applicable
procedures are compliant and transparent:
For the last three years (including the reporting period), the company profit distribution draft or plan, and draft or plan
that the capital reserves converting into share capital
2014 annual profit distribution plan is: Based on the existing total shares of 4,662,886,108 is the base, distribute cash of RMB
2.5 yuan (including tax) to all the shareholders every 10 shares.
2015 annual profit distribution plan is: Based on the existing total shares of 4,662,886,108, distribute cash of RMB 6.4 yuan
(including tax) to all the shareholders every 10 shares.
2016 annual profit distribution plan is: Based on the existing total shares of 4,802,648,511, distribute cash of RMB 6.42 yuan
(including tax) to all the shareholders every 10 shares
Chongqing Changan Automobile Company Limited 2016 Annual Report
Share out Cash Bonus Table for last three years
Unit: Yuan
Net profit attributable to The net profit ratio (%)
Cash dividend amount (tax shareholders of listed attributable to shareholders of
Year
included) companies in dividends annual listed companies in
consolidated statements consolidated statements
2016 3,083,300,344.06 10,285,284,120.57 29.98%
2015 2,984,247,109.12 9,952,714,168.09 29.98%
2014 1,165,721,527.00 7,561,081,585.81 15.42%
Ⅱ. Preplan of profit allocation and capital reserve converting into share equity during the
reporting period
For every 10 shares to send bonus shares
For every 10 shares dividend number (RMB) (tax included) 6.42
The equity base of distribution plan(shares) 4,802,648,511
Total cash dividends (yuan) (tax included) 3,083,300,344.06
Distributable profits (yuan) 33,488,484,537.62
Proportion (%) of cash dividends to total profit distribution 100%
Cash dividend policy：
Others
Detailed statement of profit allocation or plan that capital accumulation fund turn to be added
Audited by Ernst &Young Huaming certified public accountants (special ordinary partnership) , the parent company annual
net profit of 2016 is RMB 9,972,428,463.45 yuan, added with early undistributed profit of RMB26,573,855,747.25 yuan, minus
the allocated cash dividend of RMB2,987,918,471.58 yuan during the reporting period, profits distributed to shareholders is RMB
33,558,365,739.12 yuan, minus the allocated statutory surplus reserve of RMB 69,881,201.50 yuan this year, so at the end of 2016
the undistributed profits can be used for distribution is RMB 33,488,484,537.62 yuan. At the end of 2016, monetary fund balance
of the parent company is RMB 23,767,111,763.75 yuan.
2016 annual profit distribution plan is: Based on the existing total shares of 4,802,648,511, send cash of RMB 6.42 yuan
(including tax) to all the shareholders every 10 shares with total cash of RMB 3,083,300,344.06 yuan (including tax).
III. Commitments Fulfillment Condition
1、Commitments that company, shareholders, actual controllers, the acquirer, directors, supervisors
and senior management personnel or other affiliated parties during the report period fulfilled and by the
end of report period not yet fulfilled.
Commit Commitme period for
commitments Commitment content Performance
ment nt time commitment
Chongqing Changan Automobile Company Limited 2016 Annual Report
entity
During the reporting period, the
second meeting of the 7th Board of
Directors of the Company examined
and approved the \"Company Stock
Option Incentive Plan (Draft)\", the
9th meeting of the 7th Board of
Directors of the Company examined
and approved the \"Company Stock
Option Incentive Plan (Draft
The Company confirmed that it will Amendment) , And was approved by
implement the management share the company at the fifth extraordinary
incentive plan before June 30, 2016, general meeting of shareholders in
The according to relevant national 2016. The twelfth meeting of the 7th
China
commitments of regulations and measures and China June, 2014 June 30,2016 Board of Directors of the Company
Changan
stock reform Changan \"on the participation of decided that the Company will grant
Chongqing Changan Automobile 29.275 million stock options to 203
Co., Ltd. shareholding reform people on 23 September 2016,
commitment supplementary letter \". accounting for 0.627% of the total
share capital of 466288.61 million
when the incentive plan was signed,
Stock option exercise price of 14.12
yuan. The Company completed the
registration of the stock option on
October 19, 2016, granted 29.14
million stock options to the incentive
objects 202, and the pledge of China
Changan has been fulfilled.
When the company non-publicly
subscribes for new shares of listed
companies in 2016, the newly
acquired shares of listed company
can not be transferred within 36
Share limited China China Changan did not sell company
months since the listing, but can be Oct., 2016 36 months
commitment Changan shares during the reporting period
transferred after 36 months
according to relevant provisions of
China Securities Regulatory
Commission and Shenzhen Stock
Exchange.
In order to avoid and eventually The Harbin Hefei Automobile
Other small
China solve the possible competition or September, Industry Group Co at present is still
shareholders
Changan potential competitors, better 2010 running at a loss, The conditions have
commitment
maintain the interests of investors, not yet reached the profitable for two
Chongqing Changan Automobile Company Limited 2016 Annual Report
the company controlling shareholder consecutive years.
China Changan made the
commitment: In two consecutive
years profit of Harbin Hf
Automobile Industry Group Co,
With the continuous development
ability and management level is
improved significantly. Under such
condition, the enterprise will be
affiliated into the company.
2、The assets of the company or project include the earnings forecast, and during the report period, the
profit forecast still existed, the company assets or projects achieve the profit forecast and explain the
reasons
□Applicable √Not-applicable
IV. The non-operating fund occupation situation of the controlling shareholders and their
affiliates to the listed companies
□Applicable √Not-applicable
During the reporting period there does not exist non-operating fund of the listed company occupied by the controlling shareholder
and its affiliated parties.
V. The board of directors, supervisors, and independent directors (if applicable) explaining
the \"non standard audit report\" from the accounting firm during the reporting period
□Applicable √Not-applicable
Certified public accountants do not issue \"non-standard audit report\" for the current report.
VI. Explaining the change with last year's financial statements, accounting policies,
accounting estimate and accounting methods
□Applicable √ Not-applicable
During the report period, there’s no change of accounting policies, accounting estimate and accounting methods.
VII. During the reporting period, big accounting errors correction and the need for trace
restatement
□Applicable √Not-applicable
During the reporting period, no significant accounting errors correction and no need for trace restatement.
Chongqing Changan Automobile Company Limited 2016 Annual Report
VIII、Compared with financial report for last year, the explanation to the scope change of
consolidated statements
√applicable □ not applicable
During the reporting period, Shenzhen Changan New Energy Vehicles Service Co., Ltd was incorporated in Shenzhen, China. As a
wholly-owned subsidiary of Changan Automobile, Shenzhen Changan Now Energy Vehicles Service Co., Ltd will be included in the
consolidation range of Changan Automobile. Changan Automobile has absorbed and merged the two wholly-owned subsidiaries ,
Hebei Changan Commercial Vehicles Sales Co., Ltd and Nanjing Chuanyu Changan Commercial Vehicles Sales Co., Ltd during the
reporting period, which will not be included in the consolidation range of Changan Automobile.
IX. The appointment, dismissal of the accounting firm
The appointment of the accounting firm
The name of the domestic accounting firm Ernst & Young Hua Ming LLP
Domestic accounting firms payment (ten thousand
Yuan)
A continuous years of domestic accounting firms
audit service
Domestic accounting firm of Certified Public
Chen Xiaoxiang, Hu Yan
Accountants name
Whether to change the accounting firms
□Applicable √Not-applicable
Employ audit of internal control accounting firms, financial adviser or sponsor
√Applicable □Not-applicable
Through the approval from the company's sixth extraordinary shareholders' general meeting, the company hired Ernst &Young
Huaming certified public accountants (special ordinary partnership) as the company's 2016 annual internal control audit certified
public accountants. In 2016 the internal control audit fee paid for the internal control auditing services provided by Ernst &Young
Huaming certified public accountants (special ordinary partnership) is RMB 1.17 million yuan.
The company hired China Securities Co., Ltd as the sponsor institution to non-publicly issue stocks in 2016. Underwriting fee
and sponsor fee is RMB16 million yuan in total.
The company hired Shanghai Realize Investment Consulting Co., Ltd as the consulting company for the stock options incentive
plan with Consulting services charge of RMB 480 thousand yuan.
X. After the disclosure of the annual report, the Company faces the suspension and
termination of the listing
□Applicable √Not-applicable
XI. Bankruptcy restructuring related matters
□Applicable √Not-applicable
During the report period no bankruptcy restructuring related matters occur.
Chongqing Changan Automobile Company Limited 2016 Annual Report
XII. Crucial litigation and arbitration events
□Applicable √Not-applicable
During the reporting period the company has no crucial litigation and arbitration events.
XIII．Punishment and rectification
□Applicable √Not-applicable
During the reporting period there’s no punishment and rectification.
XIV. The integrity of company and its controlling shareholder, actual controller
□Applicable √Not-applicable
XV. Company equity incentive plan, the implementation of the employee stock ownership
plan or other staff incentives.
√Applicable □Not-applicable
On March 30, 2016, the 2nd meeting of the 7th Board of Directors of the Company examined and approved the Company's
Stock Option Incentive Plan (Draft). The incentive plan intends to grant 31.225 million stock options to the incentive objects, The
company's total share capital of 4.66 billion shares of 0.67%.
On August 20, 2016, the company received the actual controller of the China Ordnance Equipment Corporation forwarded the
SASAC \"Chongqing Changan Automobile Co., Ltd. on the implementation of the stock option incentive plan\" (State-owned
distribution [2016] 734), SASAC agreed in principle that the company can implement A-stock option incentive plan.
On August 12, 2016, the 9th meeting of the 7th Board of Directors of the company considered and approved the Proposal on the
Company's Stock Option Incentive Plan (draft revision) and its abstract. On August 31, 2016, the 5th Provisional Shareholders
meeting examined and approved the relevant motion on stock incentive.
The twelfth meeting of the 7th Board of Directors of the Company confirmed that on September 23, 2016, the date of grant was
29.275 million stock options granted to 203 incentive objects, accounting for 0.627% of the total share of the company at the time of
signing this incentive plan. The exercise price of stock options is 14.12 yuan.
October 19, 2016, the company completed the company's stock option incentive plan to grant the registration of the work, to
incentive 202 people granted 29.14 million stock options. Option abbreviation: Changan JLC1, Option code: 037046.
XVI. Significant related party transactions
1、Related transactions related to day-to-day operation
For details, please refer to Note 10 \"Related Party Relationships and Transactions\" in the Financial Statements.
2、Assets or equity acquisition, sales related transactions
For details, please refer to Note 10 \"Related Party Relationships and Transactions\" in the Financial Statements.
Chongqing Changan Automobile Company Limited 2016 Annual Report
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 10 \"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 interim report of related transactions
Temporary
Name of temporary announcement Temporary announcement site name
announcement date
The announcement about non-public offering of A-share stock
2016.03.31 http://www.cninfo.com.cn
involved with related transactions
The announcement about stock option incentive involved with
2016.03.31 http://www.cninfo.com.cn
related transactions
2016 estimation of the daily related transactions announcement 2016.04.19 http://www.cninfo.com.cn
Related Transactions Announcement that China South Industry
2016.04.19 http://www.cninfo.com.cn
Group Finance Co.,Ltd provides financial service for the company
Related Transactions Announcement about approving of United
2016.04.19 http://www.cninfo.com.cn
Prosperity (Hong Kong)Investment Co., Ltd trade financing
Related transaction announcement that Chongqing Automotive
2016.04.19 http://www.cninfo.com.cn
Finance Co.,Ltd provides financial service
The announcement about the stock options incentive plan(revised
2016.08.13 http://www.cninfo.com.cn
draft) involved with related transactions
Announcement about increasing estimated amount of 2016 daily
2016.10.27 http://www.cninfo.com.cn
related transaction
Chongqing Changan Automobile Company Limited 2016 Annual Report
XVII. Major contract and its performance
1、Trusteeship, contracting, leasing matters
（1）Trusteeship
□Applicable √ Not-applicable
Information about Trusteeship
There is no Trusteeship during the reporting period.
（2）contracting
□Applicable √ Not-applicable
Information about contracting
There is no contracting during the reporting period.
（3）Leasing
√Applicable □Not-applicable
Information about leasing
Related party rental situation can be found in the note Ten of financial statements 5 (2) 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、 Entrust others for cash assets management
(1) Entrust financial situation
□Applicable √ Not-applicable
There’s no entrusting situation during the reporting period.
(2) Entrusted loans situation
□Applicable √ Not-applicable
There’s no entrusted loan during the reporting period.
Chongqing Changan Automobile Company Limited 2016 Annual Report
4、Other major contract
□Applicable √ Not-applicable
There’s no other major contract during the reporting period.
XVIII. Social responsibility
Fulfill social responsibility of targeted poverty alleviation
√applicable □ not applicable
In 2016, Changan Automobile positively responded to the \"poverty alleviation plan for the 13th Five-Year-Plan period \", and
fully implemented the guiding principles of the Eighteenth National Congress of the CPC , the third , fourth, fifth, sixth plenums of
the 18th CPC Central Committee, poverty alleviation and development meeting of the central government. Changan Automobile
promoted the poverty alleviation through society and education, public welfare and public utilities construction, etc in full
compliance with the decisions and arrangements of the Party Central Committee and the State Council based on the enterprise actual
situation to push forward the better and faster economic and social development of poverty-stricken area.
1、Overview of targeted poverty alleviation
Company leaders attach great importance to the decision-making and arrangements for poverty alleviation. The main Party &
Administration leaders of Company convened the multi-department coordination meetings, weekly lean meetings, office meetings,
board meetings, stockholders' meetings, make sure extra-budgetary poverty alleviation funds for Luxi County, Yanshan County, etc,
set up poverty alleviation leadership organization involved with the leaders and department concerned, convened poverty alleviation
leading group meetings, promotion meetings, and established 11 poverty alleviation tasks as a priority. At the same time, Company
leaders fully studied and implemented the guiding principles of important conferences, new philosophy, new ideas, new strategies of
governing the country, guided staff to raise awareness, and fulfilled the tasks and responsibility for poverty alleviation. All parties
played an important role in poverty alleviation by working together. In order to implement poverty alleviation project, the company
organized the relevant departments and assigned the relevant personnel to Luxi and Yanshan County of Yunnan, Pengshui County and
Kaizhou District of Chongqing for poverty alleviation project research, which provided basis for Company’s targeted poverty
alleviation and promoted the implementation of poverty alleviation on education, school-enterprise cooperation, vehicles donation,
\"Hope Primary School\" donation &sponsorship and other projects.
2、Achievement of targeted poverty alleviation
Adhering to the public welfare philosophy of “Love drives the world” positively, Changan Automobile promoted the poverty
alleviation on society and education, public welfare and public utilities construction, etc with fund of RMB 28.9253 million（cash
RMB 23.767 million, real assets RMB 5.1583 million）
Ⅰ Promote the fixed-point poverty alleviation in Luxi and Yanshan County of Yunnan with actual donation of RMB 23.5175
million. Including:
RMB18.8million was donated to Luxi County(RMB 7.85 million) and Yanshan County (RMB10.95 million) for industry and
education
Donated 75 Changan Oushang(GLS) worth RMB 4.7175 million (45 for Luxi County worth RMB 2.8305 million, 30 for
Yanshan County worth RMB 1.887 million)
In addition, Changan Automobile organized staff to buy 779 boxes of pears grown on the plateau from Luxi County with total
Chongqing Changan Automobile Company Limited 2016 Annual Report
weight of 11.250 thousand kilos and sales of RMB 52.790 thousand yuan.
ⅡPromote the fixed-point poverty alleviation in Pengshui County and Kaizhou District of Chongqing with actual donation of
RMB 499 thousand. Including:
1.Donated RMB 300 thousand to Pengshui County for improving lavatories of 200 families in Xiaoping Village Shuanglong
Township.
2.Donated 5 Changan Honor worthy of RMB 199 thousand and coordinately recruited 105 students from Chongqing vocational
school.
Ⅲ Implement public welfare and public utilities construction with actual donation of RMB4.9088 million. Including:
1.Education Donation
Changan Automobile donated cash and real assets worth of RMB 333 thousand to Beijing Institute of Technology, Hejia Hope
Primary School in Xiaohe Township Tianquan County, Chongqing vocational schools, etc.
2.Public welfare Donation
Changan Automobile donated cash and real assets worth of RMB 4.5758 million to China Automobile Industry Innovation
Development United Fund, Xizang Changdu Economic Cooperation Bureau and Changan’s customers in a difficult situation.
2016 targeted poverty alleviation of Changan Automobile statistical table
Indicator Unit Amount
Overall Performance
including：1 Fund 10 thousand yuan 2376.7
2. Materials converted into cash 10 thousand yuan 515.83
Project Input
1. poverty alleviation on education
1.1 funding the poverty stricken pupils 10 thousand yuan 33.3
2. poverty alleviation on society
Input in fixed-point poverty alleviation 10 thousand yuan 2401.65
3. other projects
3.1 the number of projects Number
3.2 Amount of money 10 thousand yuan 457.58
3、the following targeted poverty alleviation plan
In 2017, Changan Automobile will positively implement poverty alleviation and continue to promote the fixed-point poverty
alleviation in Luxi County, Yanshan County, Pengshui County, Kaizhou District, the donation on public welfare.
Fulfill other social responsibilities
Chongqing Changan Automobile Company Limited 2016 Annual Report
Whether the listed companies and their subsidiaries belong to the key pollutant discharge units announced by the environmental
protection department
√Yes □No
Changan Automobile mainly produces engines and automobiles. The main pollutants are chemical oxygen demand, ammonia
nitrogen, total nickel, toluene, xylene and non-methane hydrocarbon,etc. All departments put pollution control facilities as well as
production equipment into preventive maintenance management of equipment with normal operation, pollutant discharge up to
normal standard, the total amount of discharged key pollutant within the total amount of indicators. Solid wastes are separately
collected and stored. Main dangerous wastes are wastewater and sludge treatment, paint slag, phosphated residue and waste solvent,
etc. Hazardous wastes are entrusted to be disposed by the units with hazardous waste business qualification. The general industrial
solid wastes and household garbage are disposed by the units with qualification according to the requirement of the local government.
The waste electrical and electronic products are disassembled by the units with qualification and are safely disposed by the units with
hazardous waste business qualification.
Strictly implement Disclosure System of Information
In 2016, State Key Monitoring Units of Changan Automobile: Chayuan Base of Commercial Vehicle Division, Dashiba Base of
Jiangbei Engine Factory, Yubei Factory; Provincial and municipal key monitoring units: Mold Division, Beijing Changan, Hefei
Changan. The national control units strictly carry out self-monitoring in accordance with the \"National Key Monitoring Enterprise
Self-monitoring and Information Disclosure Approach (Trial)\". Self-monitoring program, monitoring results, pollution monitoring
annual report are disclosed on the \"National Key Monitoring Enterprise Self-monitoring and Information Disclosure Platform\".
Provincial and municipal monitoring units are disclosed according to requirement of environmental protection departments of local
government.
Strictly implement \"EIA system\" and environmental protection \"three simultaneous\" systems of the construction project
Carry out the company's environmental impact assessment of “newly established, rectified, expanded projects” and implement
\"EIA system\" of the construction project according to the regulations. Strengthen the review on pollutant factors, the total amount of
emission and pollution control facilities during the environmental impact assessment. Strictly supervise the implementation of
“simultaneous design, simultaneous construction, and simultaneous acceptance” of project environmental protection facilities to
ensure full compliance between project construction and environmental impact assessment approval. In 2016, Beijing Changan
construction project, Dianjiang test field project, advanced small displacement engine project were completed and achieved
environmental acceptance. Passenger vehicles project, PDC (spare parts center) project obtained temporary sewage discharge permit.
Carry out environmental protection risk management, and enhance emergency response capacity
Continue to carry out environmental protection emergency drills to enhance the response capacity to environmental emergencies.
In 2016, the Company completed the environmental risk assessment, compilation and record of environmental emergency plan for
Yuzui base of Commercial Vehicle Division. the Company carried out 4 company-level environmental emergency drills, including
biochemical treatment of equipment failure in Yubei Factory, on-line monitoring data anomalies in Commercial Vehicle Division,
rainwater drainage anomalies in Jiangbei Engine Factory, and chemical leakage emergency drills in engine factories. The scene
settings, emergency handling, impact range, exercise script, evaluation and other aspects have been greatly improved.
Strengthen control of company's environmental risk units to prevent sudden environmental incidents. Sort out environmental
risk unit contents of the company's all bases, including dangerous waste temporary storage, wastewater treatment station, engine
casting dust removing, deodorization, vehicle coating oven exhaust treatment facilities incinerator, paint exhaust treatment and
terminal treatment facilities, boiling wheel incineration equipment facilities. Clarify the requirements of environmental risk unit
control, including paint storage, oil storage, lubrication stations and the storages of other dangerous chemicals(according to the safety
control standards of all-level dangerous points of Chongqing Changan Automobile Co., Ltd). Revise and improve other
environmental risk unit inspection standards and promote the implementation in branch companies and subsidiaries in other
provinces. Further strengthen the control of company's environmental risk unit to prevent sudden environmental accidents and to
Chongqing Changan Automobile Company Limited 2016 Annual Report
ensure that pollutant discharge reach the standards.
Detailed pollutant discharge of the company:
During the reporting period, the Company had 151 air pollutant discharge ports and 15 water pollutant discharge ports. The
implementation of the emission standards include the national \"Integrated Wastewater Discharge Standard\", Beijing \"Water Pollutant
Discharge Standard\", the national \"Air Pollutant Integrated Emission Standard\", Chongqing \"automobile vehicle manufacturing
surface coating air pollutant discharge standards\" \"Air Pollutant Integrated Emission Standard\", Beijing \"automobile vehicle
manufacturing industry (coating process) air pollutant discharge standards\", the national \"industrial enterprises boundary
environmental noise emission standards\" and so on. The total amount of pollutants approved: COD737 tons, 44 tons of ammonia, the
company's pollutants can meet the corresponding emission standards, no super-standard super-total emissions. No major
environmental problems, no rectification.
In 2016, the Company completed 11 projects of environmental protection measures and accumulated environmental protection
investment of 207.45 million yuan. The main projects include: Yubei Plant Coating Phase II VOC End Project, Commercial Vehicle
Phase I Coating VOC End Project, Jiangbei Engine Factory Hazardous Waste Temporary storage site rectification, commercial
vehicle division coating two workshop wastewater station COD on-line detector upgrade, Hefei Chang'an sewage station deep
phosphorus removal project, Yubei plant welding workshop exhaust dust removal, etc., to fulfill the environmental responsibility
Whether to publish a report on social responsibility
√Yes □No
Corporate Social Responsibility Report
Whether it Whether it Reporting Disclosure Criteria
Whether it
The nature of the contains contains corporate
contains social Foreign
enterprise environmental governance Domestic standards
information standards
information information
\"Guidelines for the Shenzhen Stock
Exchange Main Board\", \"Main Board
Information Disclosure Business
Memorandum No. 1 - Periodic Report
Disclosure Relevant Issues\",
State - owned
Yes Yes Yes \"Contents and Formats of Information
enterprises
Disclosure of Companies for Public
Offering No. 2 - Contents and Form
of Annual Report \",\"Guidelines for
the Social Responsibility of Shenzhen
Stock Exchange \"
Specific description
1. Whether the company has passed the environmental
Yes
management system certification（ISO14001）
Yubei Plant and the Commercial Vehicle division implemented
the VOCS terminal projects to reduce VOCS emissions by
2. Company \"waste gas, waste water, waste residue\" three-waste
1149.76 tons; Beijing Changan reclaimed water by 152,119 tons;
reduction performance
The Company achieved the solid waste comprehensive
utilization of 113,555 tons.
Chongqing Changan Automobile Company Limited 2016 Annual Report
3. Amount of annual environmental protection investment in
27,383
2016 (10 thousand)
4. The company invests in upgrading the ability of employees to
improve their personal knowledge and skills to enhance their 1,741.07
career development (10 thousand）
5. The amount of corporate social donations (funds, materials,
2,892.53
free professional services) (10 thousand)
XIX. Other important events
√Applicable □Not-applicable
On March 7, 2016, at the 42nd meeting of the 6th Board of Directors, the Company examined and approved the Proposal on the
Election of the 7th Board of Directors. The Company elected Xu Liuping, Zhang Baolin, Zhu Huarong, Zhou Zhiping, Tan Xiaogang,
Wang Xiaoxiang and Wang Kun as The Board of Directors nominated candidates for the 7th Board of Directors of the Company. At
the same time, the Board of Directors nominated Shuai Tianlong, Liu Jipeng, Li Xiang, Li Qingwen, Tan Xiaosheng, Hu Yu, Pang
Yong and Chen Quanshi as the independent directors of the 7th Board of Directors. On 7 March 2016, the Nineteenth Meeting of the
Sixth Supervisory Committee examined and approved the Proposal on the General Election of the Seventh Board of Supervisors. The
Company elected Xiao Yong, Sun Dahong and Zhao Huixia as candidates for the supervisor of the 7th Supervisory Committee, The
Employee Congress elected Zhang Anguo and Luo Yan as employee supervisors of the 7th Supervisory Committee. On March 23,
2016, the Company held the 1st Extraordinary Shareholders' General Meeting in 2016 to deliberate and approve the Proposal on the
General Election of the 7th Board of Directors and the Proposal on the Election of the 7th Supervisory Committee.
On March 30, 2016, the 2nd meeting of the 7th Board of Directors of the Company examined and approved the Proposal on
Withdrawing the Application Documents of Non-public Shares Issuing in 2015 and the Proposal on Non-public Shares Issuance in
2016, the subscription amount of 2016 non-public offering of shares issued to China Changan Automobile Group Co., Ltd.,
amounted 2 billion yuan. Changan Automobile 2016 non-public offering of related matters has been approved by the SASAC
(Announcement No. 2016-47), the second provisional shareholders' meeting in 2016 examined and approved the above
plan(Announcement No. 2016-51), the CSRC passed the non-public offering audit (Announcement No. 2016-71). On September 8,
2016, the Company obtained the offering approval from the CSRC (Announcement No. 2016-97). From the end of the reporting
period to the date of this report, the Company completed the registration and issuance of 139,762,403 new shares at the price of RMB
14.31 per share on October 14, 2016.
XX. Important matters of the Company's subsidiary
□Applicable √Not-applicable
Chongqing Changan Automobile Company Limited 2016 Annual Report
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 Balance after current
Addition and deduction（+，-） during change
change change
Ratio Additional Stock Provident fund Ratio
Quantity other Quantity
(%) issued dividend transfer (%)
Non-circulated shares 373,377,242 8.01% 139,762,403 -373,358,342 -233,595,939 139,781,303 2.91%
1、State-owned legal
373,358,342 8.01% 139,762,403 -373,358,342 -233,595,939 139,762,403 2.91%
person shares
2、Senior management
18,900 0.00% - - 18,900 0.00%
personnel shares
Circulated shares 4,289,508,866 91.99% 373,358,342 373,358,342 4,662,867,208 97.09%
1、Domestic listed
3,387,522,724 72.65% 373,358,342 373,358,342 3,760,881,066 78.31%
RMB shares
2、Domestic listed
901,986,142 19.34% - - 901,986,142 18.78%
foreign shares
Total shares 4,662,886,108 100.00% 139,762,403 - 139,762,403 4,802,648,511 100.00%
Reason of stake changes
√ applicable □ not applicable
During the reporting period, the Company implemented the equity incentive plan in accordance with the share reform
commitment and completed the registration of stock option by October 19, 2016. The 373,358,342 previously restricted outstanding
shares were tradable since November 15, 2016.
The Company's non-public offering of shares in 2016 was completed in October 2016(For details, please refer to the Changes of
Non-public Offering Shares and Listing Announcement, which was disclosed on October 13, 2016, at http://www.cninfo.com.cn). The
number of shares in the non-public offering was 139,762,403 shares. After the completion of the issue, the total shares of the
Company were changed from 4,662,886,108 shares to 4,802,648,511 shares.
Approval of stock changes
Chongqing Changan Automobile Company Limited 2016 Annual Report
√ applicable □ not applicable
On November 15, 2016, restrictions on the Company's 373,358,342 restricted shares were lifted and became tradable. The
shareholding reform plan of the Company was reviewed and approved at the relevant shareholders' meeting held on April 24, 2006.
2016 A Shares Issuance procedures
1.Internal decision-making procedure
The issuer held the second session of the seventh meeting of Board of Directors and the second extraordinary general meeting of
shareholders in 2016 on March 30, 2016 and April 29, 2016 respectively, deliberated and adopted relevant resolutions, including
Proposal on the Non-public Offering of Shares, Proposal on Non-public Issuance of Stocks of the Company, Proposal on the
Non-public Shares Issuance Plan of Chongqing Changan Automobile Co., Ltd., Proposal on Feasibility Report on the Use of Raised
Funds of the Non-public Shares Issuance, and Proposal on the Use of Previously Raised Funds.
2.Review procedure of the regulator
On April 27, 2016, the State-owned Assets Supervision and Administration Commission issued Reply on Non-public Offering of
A Shares of Chongqing Changan Automobile Co., Ltd.(State Property [2016] No. 317), and approved in principle the non-public
issuance of A shares program.
The application of non-public offering of the Company was accepted by the China Securities Regulatory Commission on May
19, 2016. It was approved by the issuance examination committee of the CSRC on June 29, 2016. On August 30, 2016, the China
Securities Regulatory Commission (CSRC) issued the Reply on Approval of Non-public Shares Issuance of Chongqing Changan
Automobile Co., Ltd. (CSRC [2016] 1996), and approved new shares of non-public offering of no more than 251,889,168 shares.
Ownership transfer of stake change
√ applicable □ not applicable
On September 21, 2016, the Company submitted the relevant registration materials to the Shenzhen Branch of China Securities
Depository and Clearing Corporation Limited for the issuance of the shares. The newly issued shares were listed in the Shenzhen
Stock Exchange on October 14, 2016, and registered to the account on October 13, 2016, and formally included in the company's
shareholders list.
The influence of share changes on financial indicators, such as the latest year and the latest basic earnings per share and
diluted earnings per share, the net assets per share belonging to the common shareholder of the company
√ applicable □ not applicable
As the proportion of non-public offering of shares is relatively small compared with the total shares, the impact of the stock
change on basic earnings per share, diluted earnings per share, net assets per share attributable to corporate shareholders and other
financial indicators of the recent year is small.
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 Non-circulated Decrease during the Increase during the Non-circulated Reason for Date for the
Chongqing Changan Automobile Company Limited 2016 Annual Report
shareholders shares held at the reporting period reporting period shares held at the non-circulated shares circulated shares
year-beginning year-end
Non - public
China Changan
offering shares of
Automobile Co., 373,358,342 373,358,342 139,762,403 139,762,403 2019-10-14
139,762,403 in
Ltd.
Executive lock 6 months after
Zhu Huarong 18,900 - - 18,900
stocks the retirement
Total 373,377,242 373,358,342 139,762,403 139,781,303 -- --
II、Issuing and listing of securities
1.Issuance of securities in the past three years
√ applicable □ not applicable
Stock and its Number of
Issue price (or Amount of Transaction
derivative date of issuance Listing date approved
interest rate) issuance end date
securities transactions
stock
non-public
offering of 9,Sep.2016 14.31yuan/share 139,762,403 14,Oct.2016 139,762,403
shares in 2016
Convertible corporate bonds, convertible corporate bonds of separate transactions, corporate bonds
Other derivative securities
Description of the issue of securities (excluding preferred shares) during the report period
Approved by the document No. [2016] 1996 of China Securities Regulatory Commission, September 9, 2016, the company issued
139,762,403 A shares of non-public shares to China Changan with the issue price of 14.31 yuan / share. The non-public offering of A
shares were listed on the Shenzhen Stock Exchange on October 14, 2016.
2.Changes in the total number of shares of the Company and changes in the structure of the shareholders and in the structure
of the Company's assets and liabilities
√applicable □ not applicable
During the reporting period, the net assets raised by the Company's non-public offering of shares amounted to RMB
1,982,890,237.60 yuan, the net assets of the Company increased, and the asset-liability ratio decreased accordingly, the quality of the
Company's assets, the solvency and the financing capacity were improved. The asset structure becomes more reasonable.
3. Existing internal staff shares
□ Available √ Non available
Chongqing Changan Automobile Company Limited 2016 Annual Report
III. Shareholders and actual controllers situation
1、The number of shareholders of the company and the stock
Unit: one share
During the report period, the total number of
155,204 .A shareholders: 130,197. B shareholders: 25,007.
shareholders
One month before the end of the disclosure of the
176,468 .A shareholders: 147,180. B shareholders: 29,288.
annual report of the total number of shareholders
Holding more than 5% of the shareholders, or top 10 shareholders situation
Percentage increases and Pledged/ Frozen
Non-circulated Circulated
Nature of of total Shares held at decreases cases
Name of shareholders shares held at shares held at
Shareholders shares the year-end during the
the year-end the year-end Share status amount
（%） report period
China Changan State-owned legal No pledge or
40.88% 1,963,357,619 139,762,403 139,762,403 1,823,595,216
Automobile Co., Ltd. person shares freeze
domestic general
China securities No pledge or
legal person 2.90% 139,422,927
finance Co, Ltd freeze
shares
GIC PRIVATE foreign legal No pledge or
1.68% 80,881,075 36,334,024
LIMITED person shares freeze
domestic general
Central Huijin No pledge or
legal person 1.15% 55,393,100 -
Investment Ltd. freeze
shares
United Prosperity
foreign legal No pledge or
Investment Co., 0.94% 45,195,100 -
person shares freeze
Limited
National Social
fund, finance No pledge or
Security Fund- 0.89% 42,607,294 12,607,421
products, etc. freeze
Portfolio 102
VALUE PARTNERS
foreign legal No pledge or
HIGH-DIVIDEND 0.81% 38,911,038 28,003,746
person shares freeze
STOCKS FUNDS
National Social
fund, finance No pledge or
Security Fund- 0.77% 36,844,961 13,744,976
products, etc. freeze
Portfolio 103
Anbang Asset
Mgmt-China fund, finance No pledge or
0.67% 32,070,942 32,070,942
Merchants Bank- products, etc. freeze
Anbang Asset-China
Chongqing Changan Automobile Company Limited 2016 Annual Report
Merchants Bank-
Anbang Asset-Win -
win No. 3 Asset Mgmt
Product Collection
HTHK-MANULIFE
foreign legal No pledge or
CHINA VALUE 0.64% 30,750,475 -3,769,306
person shares freeze
FUND
Among the top 10 shareholders, China Changan Automobile Group Co., Ltd., the controlling shareholder, and its
Explanation on the relationship and the
wholly owned subsidiary United Prosperity (Hong Kong) Investment Co., Limited. belong to the concerted actor
action alike of above shareholders
regulated by “Disclosure Administration of Shares Change Information of The Listed Company”.
The ten largest circulated shareholders
Shares type
Name of shareholders Shares at the year end
Type Amount
China Changan Automobile Co., Ltd. 1,823,595,216 RMB ordinary shares 1,823,595,216
China securities finance Co, Ltd 139,422,927 RMB ordinary shares 139,422,927
Domestic listed foreign
GIC PRIVATE LIMITED 80,881,075 80,881,075
shares
Central Huijin Investment Ltd. 55,393,100 RMB ordinary shares 55,393,100
Domestic listed foreign
United Prosperity (Hong Kong) Investment Co., Ltd 45,195,100 45,195,100
shares
National Social Security Fund- Portfolio 102 42,607,294 RMB ordinary shares 42,607,294
VALUE PARTNERS HIGH-DIVIDEND STOCKS Domestic listed foreign
38,911,038 38,911,038
FUNDS shares
National Social Security Fund- Portfolio 103 36,844,961 RMB ordinary shares 36,844,961
Anbang Asset Mgmt-China Merchants Bank- Anbang
Asset-China Merchants Bank- Anbang Asset-Win - win 32,070,942 RMB ordinary shares 32,070,942
No. 3 Asset Mgmt
Domestic listed foreign
HTHK-MANULIFE CHINA VALUE FUND 30,750,475 30,750,475
shares
Among the top 10 shareholders, China Changan Automobile Group Co., Ltd., the
The top 10 shareholders to sell circulated shares, and the
controlling shareholder, and its wholly owned subsidiary United Prosperity (Hong Kong)
infinite tradable relationship between shareholders and
Investment Co., Limited belong to the concerted actor regulated by “Disclosure
top 10 shareholders or concerted action
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
repurchase transactions 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 repurchase
Chongqing Changan Automobile Company Limited 2016 Annual Report
transactions during the reporting period
2、The controlling shareholder of the company.
Nature of the controlling shareholders: the central state-owned
Type of the controlling shareholder：legal person
Legal Date of
Name Organization code Business scope and major products:
/Representative establishment
Design, development, manufacture and sales of
automobile &motorcycle, automobile &motorcycle
engine, automotive and motor cycle components&
parts; sales of optical products, electronic and
CHINA CHANGAN photoelectron products, night-time vision device,
Dec 26th, 911100007109339
AUTOMOBILE Xu Liuping information and communication equipment;
2005
GROUP CO., LTD technical development, technical transfer, technical
consultation, technical training, and other technical
service relative with the operation mentioned
above; imports and exports; merge and acquisition
and consultation of assets restructuring.
The controlling equity
and equity during the
reporting period, the To the reporting period, the holding companies: Harbin Dongan Auto Engine Co., Ltd. (stock code
controlling shareholder 600178); Hunan Tianyan Machinery Co., Ltd. (stock code 600698), Chongqing Changan Minsheng APLL
of listed companies in Logistics Co., Ltd(stock code 01292.HK)
other domestic and
foreign markets
During the reporting period the change of controlling shareholders
□Available √ Not- available
No changes in controlling shareholders during the reporting period.
3、The ultimate controller of the Company
Nature of the controlling shareholders: the central state-owned asset management institution
Type of the controlling shareholders: legal person
Legal Date of Organization
Name Business scope and major products:
/Representative establishment code
investment and management of state-owned assets;
manufacturing of guns and firearms; engineering
China South Industries
Tang Dengjie 29 Jun.,1999 prospecting, designing, construction, contracting,
Group Corp. 043F
construction supervision; equipment installation,
etc.
The controlling equity To the reporting period, direct or indirect holding companies: Harbin Dongan Auto Engine Co., Ltd. (stock
Chongqing Changan Automobile Company Limited 2016 Annual Report
and equity during the code 600178); Baoding Tianwei Electric Co., Ltd. (stock code 600550); Jiangling Motors Co., Ltd. (stock
reporting period, the code 000550); Hunan Tianyan Machinery Co., Ltd. (stock code 600698); China Jialing Industrial Co., Ltd.
controlling shareholder (stock code 600877); Chongqing Jianshe motorcycle Co., Ltd. (stock code 200054); Lida Optical Co., Ltd.
of listed companies in (stock code 002189); Zhongyuan Special Steel Co., Ltd. (stock code 002423); Yunnan West Instrument
other domestic and industrial Co., Ltd. (stock code 002265); Chongqing Changan Minsheng logistics Limited (stock code
foreign markets 01292.HK).
The change of the actual controllers during the reporting period
□Available √ Not- available
No changes in the actual controllers during the reporting period.
Relationship among the Company and its controlling shareholders:
SASAC
100%
China South Industries Group Corp.
77%
CHINA CHANGAN AUTOMOBILE GROUP CO., LTD.
100%
United Prosperity (Hong Kong) Investment Co., Ltd.
40.88%
0.94%
Chongqing Changan Automobile Co., Ltd.
Actual control people control the company through trust or other asset management method.
□Available √Not available
4、Other legal shareholders with over 10% holding
□Available √ Not available
5、 Reduced shareholdings of controlling shareholders, actual controllers, restructuring parties and other
committing parties
√ applicable □ not applicable
Chongqing Changan Automobile Company Limited 2016 Annual Report
China Changan Group promised not to reduce its shares of Changan Automobile Co. Ltd through the secondary market, within 6
months from July 14, 2015 and fulfilled its promise.
On November 15, 2016,the Company promised after the restriction on no-circulated shares was lifted: within six months after
the lifting of the restricted shares held by China Changan, there was no plan to sell 5% of the outstanding shares through the
securities trading system.
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chapter7 Information about Directors, Supervisors, Senior
Management and Employees
Ⅰ. Share ownership changes of directors, supervisors and senior management
increased decreased share
Shares
share share number
Term held at
Name Position As state Gender Age Term start date number in number in at the
Termination date beginning
this issue this issue end
（stock）
（stock） （stock） （stock）
Xu Liuping Chairman present M 52 2016-03-23 2019-03-23
Zhang Vice
present M 54 2016-03-23 2019-03-23
Baolin Chairman
Director,
Zhu Huarong present M 51 2016-03-23 2019-03-23 25,200 - - 25,200
President
Director,
Zhou secretary of
present M 46 2016-03-23 2019-03-23
Zhiping the party
committee
Tan
Director present M 53 2016-03-23 2019-03-23
Xiaogang
Wang
Director present M 43 2016-03-23 2019-03-23
Xiaoxiang
Director,
Vice
President,
Wang Kun present M 41 2016-03-23 2019-03-23
Board
Sectary
(acting)
independent
Liu Jipeng present M 60 2016-03-23 2019-03-23
director
independent
Li Qingwen present M 61 2016-03-23 2019-03-23
director
Tan independent
present M 46 2016-03-23 2019-03-23
Xiaosheng director
independent
Pang Yong present M 47 2016-03-23 2019-03-23
director
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chen independent
present M 71 2016-03-23 2019-03-23
Quanshi director
Chairman of
Xiao Yong the present M 46 2016-03-23 2019-03-23
supervisory
Sun Dahong Supervisor present M 50 2016-03-23 2019-03-23
Zhao Huixia Supervisor present M 56 2016-03-23 2019-03-23
Zhang Employee
present M 57 2016-03-23 2019-03-23
Anguo Supervisor
Employee
Luo Yan present F 42 2016-03-23 2019-03-23
Supervisor
Huang Vice
present M 48 2016-03-23 2019-03-23
Zhongqiang president
Luo Vice
present M 53 2016-03-23 2019-03-23
Minggang president
Vice
Du Yi present M 49 2016-03-23 2019-03-23
president
Vice
Gong Bing present M 47 2016-03-23 2019-03-23
president
Vice
Wang Jun present M 44 2016-03-23 2019-03-23
president
Vice
Liu Bo present M 50 2016-03-23 2019-03-23
president
Vice
He Chaobing present M 49 2016-03-23 2019-03-23
president
Zhang Vice
present F 51 2016-03-23 2019-03-23
Jingjing president
Yuan Vice
present M 48 2016-03-23 2019-03-23
Mingxue president
Vice
Li Wei present M 51 2016-03-23 2019-03-23
president
Board
Li Jun present F 47 2016-03-23 2019-03-23
Sectary
Total 25,200 - - 25,200
Chongqing Changan Automobile Company Limited 2016 Annual Report
Ⅱ. Personnel Changes of directors, supervisors and senior management
Name Position Type Term Reason
Xu Liuping Chairman elected 2016-03-23 recruitment for work needs
Zhang Baolin Vice Chairman elected 2016-03-23 recruitment for work needs
Zhu Huarong Director, President elected 2016-03-23 recruitment for work needs
Director, secretary of the
Zhou Zhiping elected 2016-03-23 recruitment for work needs
party committee
Tan Xiaogang director elected 2016-03-23 recruitment for work needs
Wang Xiaoxiang director elected 2016-03-23 recruitment for work needs
Director, Vice President,
Wang Kun elected 2016-03-23 recruitment for work needs
Board Sectary (acting)
Shuai Tianlong independent director elected 2016-03-23 recruitment for work needs
Shuai Tianlong independent director departure 2016-06-21 pass away of illness
Liu Jipeng independent director elected 2016-03-23 recruitment for work needs
Li Xiang independent director elected 2016-03-23 recruitment for work needs
Li Xiang independent director departure 2016-08-22 resignation for personal reasons
Li Qingwen independent director elected 2016-03-23 recruitment for work needs
Tan Xiaosheng independent director elected 2016-03-23 recruitment for work needs
Hu Yu independent director elected 2016-03-23 recruitment for work needs
Hu Yu independent director departure 2017-02-11 resignation for personal reasons
Pang Yong independent director elected 2016-03-23 recruitment for work needs
Chen Quanshi independent director elected 2016-03-23 recruitment for work needs
Chairman of the
Xiao Yong elected 2016-03-23 recruitment for work needs
supervisory
Sun Dahong Supervisor elected 2016-03-23 recruitment for work needs
Zhao Huixia Supervisor elected 2016-03-23 recruitment for work needs
Zhang Anguo Employee Supervisor elected 2016-03-23 recruitment for work needs
Luo Yan Employee Supervisor elected 2016-03-23 recruitment for work needs
Huang recruitment
Vice president 2016-03-23 recruitment for work needs
Zhongqiang
Luo Minggang Vice president recruitment 2016-03-23 recruitment for work needs
Du Yi Vice president recruitment 2016-03-23 recruitment for work needs
Gong Bing Vice president recruitment 2016-03-23 recruitment for work needs
Wang Jun Vice president recruitment 2016-03-23 recruitment for work needs
Chongqing Changan Automobile Company Limited 2016 Annual Report
Liu Bo Vice president recruitment 2016-03-23 recruitment for work needs
He Chaobing Vice president recruitment 2016-03-23 recruitment for work needs
Zhang Jingjing Vice president recruitment 2016-03-23 recruitment for work needs
Yuan Mingxue Vice president recruitment 2016-03-23 recruitment for work needs
Li Wei Vice president recruitment 2016-03-23 recruitment for work needs
Li Jun Board Sectary recruitment 2016-03-23 recruitment for work needs
Lian Gang director departure 2016-03-23 Board of directors change
Zhang Dongjun director departure 2016-03-23 Board of directors change
Ma Junpo director departure 2016-03-23 Board of directors change
Ouyang Minggao independent director departure 2016-03-23 Board of directors change
Dong Yang independent director departure 2016-03-23 Board of directors change
Chen Zhong independent director departure 2016-03-23 Board of directors change
Wang Zhixiong independent director departure 2016-03-23 Board of directors change
Peng Shaobing independent director departure 2016-03-23 Board of directors change
Chairman of the
Yang Jian departure 2016-03-23 Board of supervisors change
supervisory
Cai Yong Supervisor departure 2016-03-23 Board of supervisors change
Xie Shikang Supervisor departure 2016-03-23 Board of supervisors change
Liang
Supervisor departure 2016-03-23 Board of supervisors change
Guangzhong
Liu Hong Employee Supervisor departure 2016-03-23 Board of supervisors change
Fan Chaodong Employee Supervisor departure 2016-03-23 Board of supervisors change
Wang Lijun Employee Supervisor departure 2016-03-23 Board of supervisors change
Ⅲ. Employment
Main working experience of present directors, supervisors and senior managers of the last five years
1、Directors
Mr. Xu Liuping, Board Chairman, born in 1964，researcher-level senior engineer. With a doctor’s degree, He holds General
Manager of China South Industry Group, Deputy Secretary Member of the Party Committee of China South Group Corp, and
Chairman and Secretary of the Party Committee of China Changan Automobile Group Co, Ltd. He used to be the Director of
Planning department, Director of Automobile department and Assistant to the General Manager of China South Industries Group
Corp, the Chairman, President and Secretary of the Party Committee of Changan Automobile (Group) Co., Ltd., the Secretary of the
Party Committee of Changan Automobile.
Mr. Zhang Baolin, Vice Chairman, born in 1962. He has obtained a postgraduate degree, a senior economist and senior political
&ideological worker. He currently holds the position of the Vice General Manager of China South Industries Group Corp, President
of China Changan Automobile Co, Ltd and vice chairman of Chongqing Changan Automobile. He used to work as Vice Secretary
Chongqing Changan Automobile Company Limited 2016 Annual Report
and Secretary of the League Committee of the South-west Industries Bureau in China Industries Company, Secretary of the Party
Committee of Chongqing Changfeng Machinery Factory, Senior Deputy General Manager and General Manager of Chengdu
Wanyou Company, Director, Vice President and Deputy General Manager of Changan Automobile (Group) Co., Ltd., Deputy
Executive General Manager of the Company, the vice secretary of the Party Committee of China Changan, president of Chongqing
Changan Automobile.
Mr. Zhu Huarong, Director and President. He was born in 1965, master graduate student, researcher-level senior engineer.
Currently he is vice secretary of party committee of Changan Automobile Group and president of Chongqing Changan Automobile.
He was vice director of Changan Technology Department, chief engineer of Changan Automobile Manufacture Factory, president
assistant of Changan Automobile (Group) Co., Ltd. and director of technical center, director of science and technology committee,
vice President of Changan Automobile (Group) Co., Ltd and the leader of engineering research division., vice President and secretary
of party committee of Chongqing Changan Automobile.
Mr. Zhou Zhiping, Director and secretary of party committee. He was born in 1971, the doctor graduate. Currently he is staff
director of China South Industries Group Corp, director, secretary of the Party Committee, Union Chairman of Chongqing Changan
Automobile. He was deputy director of Motor sector of development and planning department of China South Industries Group
Corp，manager and director of long-term planning sector of development and planning department of China South Industries Group
Corporation, deputy director and director of capital operation Department of China South Industries Group Corp, the general
manager of the southern industrial asset management Ltd, the staff director of China South Industries Group.
Mr. Tan Xiaogang, Director. He was born in 1963, the master’s degree, researcher-level senior engineer. Currently, he is the
director of Development & Planning Department in China South Industries Group Corp. He used to be the Vice Director, executive
Vice Director of Workshop No. 343, deputy Secretary of the Yuanling County CPC Committee in Hunan Province, director,
executive deputy general manager, and general manager of Hunan Yunjian Co. Ltd, Chariman, the Secretary of the Party Committee
of Hunan Yunjian Group, and vice director of Development & Planning Department of China South Industries Group Corp.
Mr. Wang Xiaoxiang, Director. He was born in 1973, the doctor graduate, senior accountant and certified public accountant.
Currently, he is the director of the Financial Department of China South Industries Group Corp. He used to be the vice director of
Financial Department of China South Industries Group Corp, Vice President in charge of Finance in China South Industries Group
Corp, Vice President of China Changan Automobile Co. Ltd, director, general manager, and deputy Secretary of the Party Committee
in China South Industries Group Corp.
Mr. Wang Kun, Director, Vice President and Board Secretary (acting). He was born in 1975, bachelor’s degree, senior
accountant. Currently, he is the director, Vice President and Board Sectary (acting) of Chongqing Changan Automobile Co, Ltd. He
used to be the director of Capital Operation (Administration division) under Capital Operation Department of China South Industries
Group Corp, vice director of Capital operation Department, and chief accountant of China Changan Automobile Group Co, Ltd.
Mr. Liu Jipeng, independent director. He was born in 1956, master degree. Currently, he is the dean, professor, and PhD
supervisor of Capital Finance Institute in China University of Political Science and Law. He has published more than 400 articles on
newspapers and magazines domestic and abroad, such as People’s Daily and Economic Research Journal and received more than 800
interviews by domestic and overseas newspaper and magazines. In the last 10 years, he has managed the shareholding system reform,
corporate strategy, acquisition and reorganization, financing scheme design for over 270 companies, such as National Electricity
Company, Aviation Industry Corporation of China, Chinalco, Haier Group, Hainan Airlines, Wanxiang Group, Li-ning Sproting
Goods Co, Tianjin Development Zone Head Office. These enterprises cover more than 20 provinces and cities, including various
industries. He is called “the first person in stock reform” by media.
Mr. Li Qingwen, independent director. He was born in 1956, master degree. Now, he is the Chairman of China Energy &
Automobile Media Group Ltd, Chairman of China Auto News, and Chairman of China Energy News. He used to be the director and
vice head of Heilongjiang People’s Government, the municipal party secretary of Hailin City of Heilongjiang Province. From 1998 to
now, he has published automotive comments of 120,000 letters altogether, and 50,000 letters regarding media essay. China Auto
Chongqing Changan Automobile Company Limited 2016 Annual Report
News is awarded as “2007 China Top 500 Most Valuable Brand” by World Brand Lab, with market value of 1.021 billion RMB, as
the only one automobile media among China Brand Top 500.
Mr. Tan Xiaosheng, independent director, born in 1970, bachelor’s degree. Currently, he is the Vice President and CPO of Qihoo
360. He used to be the engineering technology director of Yahoo China, director of operations in Maisi Belle (Beijing) Information
technology Co. He is skilled in building and management of technical team. Since 2003, he has recruited and cultivated more than
300 university students, who now wildly spread in Baidu, Tencent, Alibaba, Sina, etc. He is called as “Headmaster Tan” in Internet
Technology Industry.
Mr. Pang Yong, independent director, born in 1969, master’s degree. Currently, he is the chairman and CEO of IDEO, and
adjunct professor of Jilin Univeristy. He used to be the manager of Liaoning Industry Group, and director of Raytheon Co. China. “I
Flow Smart Terminal- Smart Decision Management Platform” is under his leading design, and he acquires the copyright from
National Copyright Administration; meanwhile, he is the developer of China AD-CAS, Competitiveness Model of Channel System,
and Standardized Database Resources. He is also the Chief expert in lean marketing of automobile dealers certified by Ministry of
Human Resources and Social Security of the People’s Republic of China.
Mr. Chen Quanshi, independent director, born in 1945, bachelor's degree. Currently, he is the deputy director of Automobile
Research Institute of Tsinghua University, executive director of China Automotive Engineering Institute, advisor in Beijing People’s
Government, member of National Vehicle Committee of Auto Standardization, National EV Committee of Auto Standardization, and
leader of general team of Guangdong EV project. He was in charge of the subject “Vehicle Technology Research in Fuel Cell of City
Bus” in National “863” EV project; he won the Second Award in Technological Progress Award of 15 ton 6×6 Desert geophysical
methods of China National Petroleum Corporation (ministerial), ranking No.3 (1996); the Third Award of National Progress Award,
in Comprehensive System Research of EV battery, electric machine, electronic control, vehicle performances, ranking No.3 (1997).
2、Supervisors
Mr. Xiao Yong, Chairman of the Board of Supervisors. He was born in 1971, master’s degree, engineer. Currently, he is the
Audit & Risk Department of China South Industries Group Corp. He used to be the vice director and director of General
Management Office in China South Industries Group Corp, vice director of General Office in China South Industries Group Corp,
vice director of Motorcycle Industry Office in China South Industries Group Corp, vice general manager of motorcycle business
department of China South Industries Group Corp, vice general manager of Chongqing South Motorcycle Co, and vice director of
Audit & Risk Department in China South Industries Group Corp.
Mr. Sun Dahong, Supervisor. He was born in 1966, master degree, senior economist. Currently, he is the vice director of general
office and chief of Secrets Agency in China South Industries Group Corp. He used to be the vice director of legal division under the
general office in China South Industries Group Corp, vice director and director of Legal Advisor Division in China South Industries
Group Corp, and director of Legal Affairs Division of general office of China South Industries Group Corp.
Mr. Zhao Huixia, Supervisor. He was born in 1960, bachelor degree, senior account. Currently, he is the Assistant President and
general manager of Audit Department (legal affairs) in China Changan Automobile Group Co, Ltd. He used to be the deputy general
accountant and director of Hafei Automobile Co, vice general manager of Harbin Hafei Automobile Industry Group, vice general
manager of Hafei Automobile Co, the Secretary of the Party Committee and Vice President of Hafei Automobile Industry Group,
vice general manager of AVIC Automobile Industry Co., Ltd, Assistant President and general manager of Operations Management
Department of China Changan Automobile Group Co, Ltd.
Mr. Zhang Anguo, staff supervisor. He was born in 1959, master degree, senior political & ideological worker. Currently, he is
the officer of Management Section under Party organization of Party Work Department. He used to be the chief of quality section of
quality Department, section chief and chief of Labor Union, chief of organization division of Party Work Department, director of
Party Construction division of Party Work Department (Corporate Culture Center).
Ms. Luo Yan, staff supervisor. She was born in 1974, bachelor degree, assistant economist. Currently, she is the chief of salary
& performance section of HR department. She used to be the maintenance electricians, engineering measurer person, labor
Chongqing Changan Automobile Company Limited 2016 Annual Report
technology fixed member, schemer in workshop No.232 of No.3 plant, chief of welfare section of Salary Division of HR Department,
and chief of welfare office III.
3、Senior Management other than Directors and Supervisors
Mr. Huang Zhongqiang, vice president, born in 1968, master’s degree in engineering, senior engineer, he used to be the Vice
Director and Director of the General Manager’s Office, Director of the Quality Control Department, Assistant to President, and Vice
President of Changan Automobile (Group) CO., LTD, the Deputy Executive President and the Secretary of CPC of Chognqing
Changan Suzuki Auto. Co., Ltd.
Mr. Luo Minggang, vice President, born in 1963, master’s degree, a senior researcher-level engineer. He used to serve as Vice
Director of Workshop No.26, and Director of Technology Department of Jiangling Machinery Plant, Director of No.1 Technology
Institute of Changan Automobile (Group) CO., LTD, Director of Engine Technology Department and Vice Chief Engineer of
Automobile Manufacturing Factory, Vice Director of Technical Center, Deputy Manager of Engine Manufacturing Factory, Deputy
Manager and Chief Engineer of Automobile Manufacturing Factory, Vice Director of Changan Automotive Engineering Institute, the
Executive Vice President of CFMA, Assistant to the President, vice President of Changan Automobile (Group) CO., LTD. The
Executive Vice President & Secretary of CPC of Changan Ford Automobile Co., Ltd.
Mr. Du Yi, Vice President. born in 1967, master’s degree, a senior researcher-level engineer. He used to be the vice president
and executive vice president of Harbin Dongan Automotive Engine Manufacturing Co., Ltd, the vice president of Hafei Automobile
Industry Group Co., Ltd. and the General Manager of the limited company, the Chairman, General Manager, deputy party secretary
of Hafei Automobile Industry Group Co., Ltd.
Mr. Gong Bing, Vice President. born in 1969, MBA, Senior Economist. He used to be the Chairman, General Manager of
Chongqing Jialing special equipment limited company, Chairman and general manager of China Jialing, vice general manager of
Motorcycle Operation department in China South Industries Group, the general manager of Chongqing South Motorcycle Limited
Liability Company.
Mr. Wang Jun, Vice President and general manager of commercial vehicle department. Born in 1967, Master's degree, Senior
Engineer. He used to be the vice Director, Director of Scientific Research Management Division under Company Technical Center,
the director of Scientific Management division under Science and Quality Department, the vice chairman of Automobile Engineering
Institute and the director of Product Planning Department, the manager of Product Management Division under Changan Automobile
Sales Company, the Manger of Product Planning Division under Marketing Department, the Vice Director, Director of Marketing
Department, the Assistant to the President, General Manager of Changan Automobile Sales Company.
Mr. Liu Bo, Vice President and Head of Automobile Engineering General Institute. Born in 1966, Master's degree, Senior
Researcher-level Engineer. He used to serve as the Vice Director of Workshop No.71 of Jiangling Machinery Plant, the Vice Director
of Engine Research Division under Company Technology Department, the Vice Director of the Technical Center, the Vice Director,
Executive vice Director of Automobile Engineering Institute, Assistant to the President and the Director of Project Supervision
Office of the Company, the Director of the Project Administration Department.
Mr. He Chaobing, Vice President and Executive Vice President & Secretary of CPC of Changan Ford Automobile Co., Ltd,
born in 1967, master's degree, Professor level senior engineer. A former director of fourth development center and Vice President of
Automobile Engineering Research Institute, Deputy director of commercial vehicle business management department, President
assistant and general manager of the Beijing Changan Automobile Co., Ltd, President assistant and director of purchase department,
President assistant and vice general manager of the commercial vehicle division
Ms Zhang Jingjing, Vice President, General counsel. Born in 1966, bachelor's degree, professor-level and senior engineer. He
used to serve as former deputy chief engineer of the 2nd factory of the Company, vice director of development and planning
department of the Company, deputy director of Science and Technology Committee of the Company, deputy director of the
administration office, the director of the project department, the minister of the Company's human resources department , the
company CEO assistant and the director of Quality Department.
Chongqing Changan Automobile Company Limited 2016 Annual Report
Mr. Yuan Mingxue, vice president. Born in 1968, Master's degree, senior engineer. A former assistant president of Changan
automobile and Executive Vice President of Jiangling Holdings, the assistant president of Changan automobile and strategic planning
director, Party branch secretary, director of the capital operation division, the assistant president of Changan automobile and general
manager and party secretary of overseas business development department.
Mr. Li Wei, vice president. Born in 1966. Master graduate student, research senior engineer. The former president of the Beijing
Institute, executive vice president, assistant president of Changan automobile and Party committee secretary of Changan Automotive
Engineering Research Institute.
Ms. Li Jun, the Secretary of BOD and the Vice Director of Financial Department, was born in 1969, MBA, senior accountant.
She used to be the Vice Director of Security Investment Office, Director of Capital Operation Office of the Financial Department,
Director of the BOD Office.
Employment in shareholders’ work unit
√Applicable □ Not applicable
Whether get
Name of shareholders’ Position in shareholders’ work allowance in
Name Term start date Term end date
work unit unit shareholders’ work
unit
chairman, secretary of the party
Xu Liuping CCAG N
committee
Zhang Baolin CCAG director, president Y
vice secretary of party
Zhu Huarong CCAG N
committee
president assistant of China
Changan Automobile Group Co,
Zhao Huixia CCAG Y
Ltd& general manager of audit
department(law affairs)
Employment in other work unit
√Applicable □ Not applicable
Whether get
Name Name of other work units Position in other work units Term start date Term end date allowance in other
work unit
China South Industries
Zhou Zhiping Staff Elected Director N
Group Corp.
Director of Development&Planning
China South Industries
Tan Xiaogang department of China South Industries Y
Group Corp.
Group Corp.
Wang Xiao China South Industries Director of Financial Department of
Y
Xiang Group Corp. China South Industries Group Corp.
China University of Political Dean of research institute of China
Liu Jipeng Y
Science and Law University of Political Science and
Chongqing Changan Automobile Company Limited 2016 Annual Report
Law, professor and PHD tutor. Vice
president of China Enterprise Reform
and Development Society
Chairman of China Energy&
Automobile Media Group, Chairman
China Energy&
Li Qingwen of China Auto News Co.,Ltd, Y
Automobile Media Group
Chairman of China Energy News
Co.,Ltd
Vice president of and CPO of Qihu
Tan Xiaosheng Qihu 360 Y
Pang Yong IDEO Chairman and CEO of IDEO Y
Vice Director of Automobile Research
Chen Quanshi Tsinghua University Y
Institute, Tsinghua University
Director of Audit and Risk
Xiao Yong China South Group Corp Y
Department, China South Group Corp
Vice Director of General office and
Sun Dahong China South Group Corp Director of Security Bureau, China Y
South Group Corp
Position in other This table only shows the main office performance and position of directors, independent directors and
work unit supervisors.
Securities regulatory agency’s punishment to the current and former directors, supervisors and senior
management during the reporting period in recent three years.
□Applicable √Not applicable
Ⅳ. Remuneration of directors, supervisors and senior management
Payment decision-making process, determination basis, the actual payment of directors, supervisors and senior managers
Decision-making process: except the independent directors, the annual remuneration of directors, supervisors and senior
management is referring to the wage management regulations and rating standard of Southern Industrial Group. Payment of company
independent directors is prescribed by the board of directors and submitted to the board of directors of the company, and approved by
the shareholders' general meeting.
In accordance with: the senior management evaluation is divided into annual appraisal, mid-term assessment, term-change
assessment and \"look back\" examination. Annual appraisal is to evaluate the business performance which senior management is in
charge of, and the employee representatives and part of the units give to democratic appraisal or special evaluation on senior
management, the assessment results will feedback to themselves in time on the problems existing in their work and relevant
suggestions for improvement, which will be rectified in the coming new year. At the same time the assessment results will be linked
with the annual performance award. Mid-term assessment is mainly to evaluate the business performance which senior management
is in charge of, assessment results are related to the targeted training, position promotion, post communication, etc; term-change
assessment is that the employee representative give democratic evaluation on all the senior management and do special visit to part of
unit, and the assessment results are related to the targeted training, position promotion, post communication training and post
Chongqing Changan Automobile Company Limited 2016 Annual Report
appointment of the senior management; new office head \"look back\" examination is mainly to look back the adjusted team,
understand the working status of the new team in time, check the configuration effect of the new group, promote the new group into
role as soon as possible, and reduce the risk of personnel employment.
Actual payments: senior managers pay basic salary monthly, annual performance prize combines annual appraisal status, the
rest delays payment according to the company's business situation. In 2016, the remuneration the directors, supervisors and senior
managers receiving from the company is 12.9596 million yuan in total.
Payment of directors, supervisors and senior managers got from the company during the reporting period
Total earning from the
Name Position Gender age status
company(yuan)
Xu Liuping Chairman of the board M 52 Present -
Zhang Baolin Vice Chairman of the board M 54 Present -
Zhu Huarong Director and President M 51 Present 1,043,677
Director, Secretary of Party Present
Zhou Zhiping Committee, Chairman of Labor M 46 1,001,930
Union
Tan Xiaogang Director M 53 Present -
Wang Director Present
M 43 -
Xiaoxiang
Director, Vice President, the Present
Wang Kun M 41 883,900
Secretary of BOD (replace)
Liu Jipeng Independent Director M 60 Present 100,000
Li Qingwen Independent Director M 61 Present 100,000
Tan Present
Independent Director M 46 100,000
Xiaosheng
Pang Yong Independent Director M 47 Present 100,000
Chen Quanshi Independent Director M 71 Present 100,000
Xiao Yong Chairman of the supervisory M 46 Present -
Sun Dahong Supervisor M 50 Present -
Zhao Huixia Supervisor M 56 Present -
Zhang Anguo Employee Supervisor M 57 Present 193,935
Luo Yan Employee Supervisor F 42 Present 234,534
Huang Present
Vice President M 48 896,273
Zhongqiang
Luo Present
Vice President M 53 902,970
Minggang
Du Yi Vice President M 49 Present 743,687
Gong Bing Vice President M 47 Present 885,290
Chongqing Changan Automobile Company Limited 2016 Annual Report
Wang Jun Vice President M 44 Present 884,900
Liu Bo Vice President M 50 Present 914,900
He Chaobing Vice President M 49 Present 870,220
Zhang Present
Vice President F 51 780,000
Jingjing
Yuan Present
Vice President M 48 780,000
Mingxue
Li Wei Vice President M 51 Present 780,000
Li Jun the Secretary of BOD F 47 Present 505,098
Shuai
Independent Director M 50 Departure 25,000
Tianlong
Li Xiang Independent Director M 35 Departure 41,666.67
Hu Yu Independent Director M 44 Departure 91,666.67
Total -- -- -- -- 12,959,647.34
Stock-ownership incentive awarded to directors, supervisors and senior managers during the reporting period
√Applicable □ Not applicable
Number of stock Proportion of the total Proportion of the
Name Position options granted number of shares current total share
（in 10 thousand） granted capital
Zhu Huarong Director and President 22.0 0.755% 0.0046%
Director, Secretary of Party
Zhou Zhiping Committee, Chairman of 22.0 0.755% 0.0046%
Labor Union
Director, Vice President, the
Wang Kun 13.5 0.463% 0.0028%
Secretary of BOD (acting)
Huang Vice President
13.5 0.463% 0.0028%
Zhongqiang
Ren Qiang Vice President 13.5 0.463% 0.0028%
Luo Minggang Vice President 13.5 0.463% 0.0028%
Du Yi Vice President 13.5 0.463% 0.0028%
Gong Bing Vice President 13.5 0.463% 0.0028%
Chongqing Changan Automobile Company Limited 2016 Annual Report
Vice President、General
Wang Jun Manager of Commercial 13.5 0.463% 0.0028%
Vehicle Division
Vice President、Director of
Liu Bo 13.5 0.463% 0.0028%
the research institute
Vice President、Executive
He Chaobing vice president and Party 13.5 0.463% 0.0028%
secretary of Changan Ford
Vice President、General
Zhang Jingjing 13.5 0.463% 0.0028%
counsel
Yuan Mingxue Vice President 13.5 0.463% 0.0028%
the Secretary of BOD、Deputy
Li Jun 14.0 0.480% 0.0029%
Finance Director
Total（14） 206.5 7.083% 0.043%
Ⅴ. Core technology team or key technical personnel changes during the reporting period (not
the directors, supervisors and senior management)
During the reporting period, the company's core technical team and key technical personnel remained stable.
Ⅵ. The Employees of the Company
By the end of this year, total headcount of the company was 41,173，including 26,424 production workers, 1,034 salesman，
8,777scientific and technological staff, 349 financial officers,561 administration staff, and 4,028 staff on other positions。Among
them, there were 143 staff with doctor degree, 1,915 staff with master degree, 11,188 staff with bachelor degree, 8,551 staff with
college education, 16,889 staff with secondary technical school and senior high school education, and 2,487 staff with education of
junior high school and below.
1. Professional structure chart
The employee's professional
Chongqing Changan Automobile Company Limited 2016 Annual Report
2. Education degree chart
The employee's education
3. compensation policy
Chongqing Changan Automobile Company Limited 2016 Annual Report
We adhere to the concept of a comprehensive salary scheme, and mobilize staff through a diversified and differentiated
incentive system consisting of payroll, honor and welfare. In accordance with the \"performance wage system\" and \"special collective
wage contract\", we continue to improve the wage co-decision mechanism, the normal wage growth mechanism and payment
insurance mechanism. At the same time, we continue to optimize the staff welfare project construction, so that employees could share
the fruits of enterprise development and protect the legitimate rights and interests of the employees.
4. Training plan
Taking the strategy and business needs as guidance, design training in accordance with the PDCA cycle (Deming cycle),
namely build \"capacity model → evaluation& appraisal→ targeted training → ability certification\" based on qualifications.
Formulate annual training plan, promote company-wide training, and build an organization with learning capability through
collecting training needs of all staff. Continue to promote the leading personnel training, skills training and build up an internal
training platform.
5. Company needs to bear the costs of 3,452 retired workers.
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chapter 8 Corporate Governance
I、The basic situation of corporate governance
In strict accordance with the requirements of the Company Law, the Securities Law and the relevant laws and
regulations of the CSRC, the Company continuously improved the corporate governance structure and promoted
the standard operation of the Company. The actual situation of the corporate governance of the Company is in line
with the relevant requirements of the CSRC normative documents on corporate governance.
1、 Improve corporate governance system
During the reporting period, the Company improved the system, standardized the functions of various
departments and promoted the standard operation level according to the relevant requirements of CSRC and
Shenzhen Stock Exchange. The systems adopted by the shareholders' general meeting or the board of directors and
its disclosure time are as follows:
No. Name Last time formulated or revised
March 23, 2016 (examined and approved at the first
1 Audit Committee Working Rules
meeting of the 7th Board of Directors)
Compensation and Review Committee March 23, 2016 (examined and approved at the first
2
Working Rules meeting of the 7th Board of Directors)
April 18, 2016 (examined and approved at the fourth
3 Insider Registration Management System
meeting of the 7th Board of Directors of the Company)
Hierarchical Authorization Management May 24, 2016 (examined and approved at the annual
4
of Non-day-to-day Business general meeting in 2015)
Information Disclosure Management June 13, 2016 (examined and approved at the seventh
5
System meeting of the 7th Board of Directors)
November 15, 2016 (approved by the 6th Extraordinary
6 Articles of Association
Shareholders' General Meeting of the Company in 2016)
November 15, 2016 (approved by the 6th Extraordinary
7 Related Transaction Management System
Shareholders' General Meeting of the Company in 2016)
November 22, 2016 (examined and approved at the 14th
8 Investor Relations Management System
meeting of the 7th Board of Directors)
Management System of Shares Held by
November 22, 2016 (examined and approved at the 14th
9 Directors, Supervisors and Senior
meeting of the 7th Board of Directors)
Management and Its Changes
2、Optimize the corporate governance structure
In March 2016, the company completed the general election of the seventh BOD. In the new session of board
of directors, the number of independent directors increased from 5 to 8, accounting for more than half of the board,
which is a revolutionary transformation of the corporate governance structure, and is more conducive to improving
the company's supervision mechanism and sound decision-making. At the same time, a compensation and review
committee was set up for the first time.
3、Improve the internal control system
The company has established an effective internal control system over the financial report. According to
company’s operation and management characteristics, the company strictly implemented the \"Enterprise
Accounting Standards\", improved the basic accounting management, established a sound financial system,
optimized accounting and statements preparation process, strengthened the financial supervision, conducted the
in-depth implementation of financial management, established the management foundation work, accounting and
finance management authorization, the monetary fund management, financing, purchasing and payment, fixed
assets, projects under construction, accounting policy, accounting estimate, consolidated financial statements, cost
Chongqing Changan Automobile Company Limited 2016 Annual Report
management, inventory management, financial analysis and other financial management system to ensure the
quality of accounting information and the safety of the Company property. According to internal control
deficiencies identified standards of the financial report, there is no internal control defects over financial reporting
in the report period. The text of the internal control self-assessment report in 2017 April 18 was published in the
huge influx of information network http://www.cninfo.com.cn.
Whether there are differences between corporate governance and the related requirements of \"company
law\" and China CSRC.
□yes √no
There is no difference between corporate governance and the related requirements of \"company law\" and China
CSRC.
Ⅱ. Independent completion situation in terms of business, personnel, assets,
organization and finance which is relative to the controlling shareholders
The company and the controlling shareholders are fully independent in terms of business, assets, personnel,
organization and finance.
Ⅲ. Competition situation
In December 2009, according to the national “Automobile Industry Adjustment and Revitalization Plan”
regarding promoting auto enterprise merger restructuring and further optimization of state-owned economy
strategy layout requirements, the actual controller of the company China South Industries Group Corporation and
China Aviation Industry Group Company proceeded industry restructuring, China Aviation Industry Group
Company transferred 100% equity of Jiangxi Changhe Automobile Co., LTD free. (hereinafter referred to as
\"Changhe Automobile\") and 100% stake of Harbin Hafei Automobile Industry Group co., LTD. (hereinafter
referred to as \"Hafei group\") into the company's controlling shareholder China Changan Automobile Group Co.,
LTD. (hereinafter referred to as \"China Changan\").This above-mentioned behavior led to competition between the
company and subordinate enterprise of China Changan, the controlling shareholder. To finally solve the possible
competition and better maintain the interests of company’s investors, the company’s controlling shareholder China
Changan commitment:⒈When Jiangxi Changhe Automobile Co., Ltd. and Harbin Hafei Automobile Industry
Group Co., LTD. can make profits for two successive years with sustainable development ability and improved
management level, it’s proposed to affiliate the two companies into Changan automobile. In October 28, 2013, the
controlling shareholder of China Changan transferred Jiangxi Changhe Automobile Co. Ltd. to Jiangxi provincial
state owned enterprise assets (Holdings) Limited, China Changan proposed Jiangxi Changhe Automobile Co. Ltd.
injected commitment matter was removed. The Harbin Hafei Automobile Industry Group Co at present is still at a
status of loss, and could not reached the profitable status for two consecutive years.
IV、Annual shareholders meeting and interim shareholders meeting during the
reporting period
1、Shareholders meeting during the reporting period
Meeting Investors' Opening Disclosure
Type Disclosure Index
Session participation Time Time
Chongqing Changan Automobile Company Limited 2016 Annual Report
ratio
Annual
May. 24th, May. 25th, http//www.cninfo.com.cn 2015 Annual Shareholders Meeting
Shareholders
Annual 50.80% 2016 2016 Resolution Announcement(Announcement Number: 2016-59)
Meeting
2016 First
Interim Mar. 23rd, Mar. 24th , http//www.cninfo.com.cn2016First Interim Shareholders Meeting
Interim
Shareholders 47.87% 2015 2016 Resolution Announcement(Announcement Number: 2016-16)
Meeting
2016 Second
http//www.cninfo.com.cn 2016 Second Interim Shareholders
Interim Apr. 29th, Apr. 30th ,
Interim Meeting Resolution Announcement(Announcement Number:
Shareholders 12.01% 2016 2016
2016-51)
Meeting
2016 Third
http//www.cninfo.com.cn 2016 Third Interim Shareholders
Interim June. 30th , July 1st ,
Interim Meeting Resolution Announcement(Announcement Number:
Shareholders 39.28% 2016 2016
2016-73)
Meeting
2016 Fourth
http//www.cninfo.com.cn 2016 Fourth Interim Shareholders
Interim Aug. 2nd , Aug. 3rd ,
Interim Meeting Resolution Announcement(Announcement Number:
Shareholders 40.73% 2016 2016
2016-80)
Meeting
2016 Fifth
http//www.cninfo.com.cn 2016 Fifth Interim Shareholders
Interim Aug. 31st , Sep. 1st ,
Interim Meeting Resolution Announcement(Announcement Number:
Shareholders 46.95% 2016 2016
2016-93)
Meeting
2016 Sixth
http//www.cninfo.com.cn 2016 Sixth Interim Shareholders
Interim Nov. 15th , Nov.
Interim th Meeting Resolution Announcement(Announcement Number:
Shareholders 47.30% 2016 16 , 2016
2016-116)
Meeting
2、Preferred shareholders’ request to hold the interim shareholders meeting with restoration
of voting rights
□Applicable √ Non-applicable
V、Duties performed by independent directors during the reporting period.
1、Independent directors attend board of directors and the shareholders meeting
Independent directors attend board of directors and the shareholders meeting
Times of Whether absent
Times of attending Times of
Names of Times of attendance by Times of from the meeting
the board of entrust
independent
directors during presence communication absence for two
directors attendance
the report period
mode consecutive times
Shuai Tianlong 7 7 N
Liu Jipeng 14 1 13 N
Li Xiang 9 8 1 N
Li Qingwen 14 1 13 N
Tan Xiaosheng 14 1 13 N
Hu Yu 14 1 13 N
Pang Yong 14 1 12 1 N
Chen Quanshi 14 1 13 N
Ouyang Minggao 3 3 N
Dong Yang 3 2 1 N
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chen Zhong 3 3 N
Wang Zhixiong 3 3 N
Peng Shaobing 3 3 Y
Times for independent directors
attending the shareholders meeting
The explanation on absence in two consecutive board of directors meetings
On July 4, 2015 Mr. Peng Shaobing voluntarily resigned from the position of independent directors. Since the
resignation of Mr. Peng Shaobing would make the proportion of the independent director lower than the statutory
requirements, in accordance with the provisions of the CSRC \"Guidance on the Establishment of Independent
Director System in the Listing Company” and the \"Articles of Association\", Mr Peng Shaobing 's resignation report
was effective only after the election of the subsequent independent directors in the first interim meeting of
shareholders in 2016.
2、Independent directors express disagreement to company related matters
Whether independent directors express disagreement to company related matters.
□ Yes √ No
Independent directors did not express disagreement to company related matters during the reporting period.
3、Other explanation on the fulfillment of responsibility of independent directors
Whether the suggestions of Independent directors are adopted or not
√Yes □No
Explanation on whether the suggestions of Independent directors are adopted or not
During the reporting period, the company adopted the proposals of independent directors on the equity acquisition
and related transactions and other aspects.
VI、Duty performance of specialized committees of the board of directors during
the report period
1、Audit Committee
The audit committee under the board of directors consists of 3 people. The chairman of the committee is Mr.
Liu Jipeng, who is an independent director. A vacancy appeared due to the passing away of Mr. Shuai Tianlong.
During the reporting period, the audit committee held 4 meetings and performed the following duties:
1）Carefully reviewed the 2015 annual financial accounting report and 2016 action plan of audit supervision
department compiled by the company, and agree to the above matters;
2）After the Ernst & Young Hua Ming issued 2015 annual audit report, the audit committee reviewed the 2015
annual financial statements (AUDIT) and major adjustments related to accounting firms, concluded the audit work
of the Ernst & Young Hua Ming. The audit committee considered that Ernst & Young Hua Ming had professional
competence, worked diligently, maintained their independence in audit, and completed 2015annual audit task on
time. The audit committee voted and made resolutions on company's annual financial report, and agreed to submit
the 2015 financial report to the board of directors for approval.
3）Reviewed the proposal on Recruitment of 2016 Annual Financial Report Auditor and Recruitment of 2016
Chongqing Changan Automobile Company Limited 2016 Annual Report
Annual Internal Control Report Auditor, and agreed to submit the proposal to the board of directors for approval of
continuing to hire Ernst & Young Hua Ming as the company's 2016 annual financial report auditor and 2016
Annual internal control report auditor.
4）Carefully reviewed the company's 2016 annual audit plan and related materials, and approved the audit
plan and audit requirements of 2016 annual financial report proposed by the Ernst & Young Hua Ming.
2、Compensation and Review Committee
The compensation and review committee under the board of directors consists of 3 independent directors. The
chairman of the committee is Mr. Chen Quanshi. During the reporting period, the committee held 2 meetings and
performed the following duties:
1）Reviewed the contents and abstract of the Stock Options Incentive Scheme (draft) and closely followed
subsequent stock incentive schemes; Reviewed and agreed to the management mechanism on such scheme and
proposed to the Shareholders' General Meeting to authorize the Board of Directors to handle relevant matters on it.
2）Reviewed the contents and abstract of the Stock Options Incentive Scheme (draft) and closely followed
subsequent stock incentive schemes; Reviewed and agreed to the review and management mechanism on such
scheme.
Ⅶ. The work of the board of supervisors
The board of supervisors found whether the company was at risk or not in the supervision during the report
period
□ Yes √ No
The board of supervisors has no disagreement on the supervision during the report period.
Ⅷ. The evaluation and incentive of senior management
1、Evaluation Mechanism
According to the company's performance evaluation management system, the president and other senior
management personnel are evaluated by board of directors. Evaluation is taken regularly and frequently,
qualitatively and quantitatively.
2、Excitation mechanism;
The income of senior management consists of basic salary and performance pay. Performance pay is linked to
performance appraisal.
3、Constraint Mechanism
Company and senior management sign \"employment contract\", which has corresponding constraints on
behavior, rights, duties, etc of senior management.
Chongqing Changan Automobile Company Limited 2016 Annual Report
Ⅸ. Internal Control
1、Significant Deficiency of Internal Control found during the report period
□ Yes √ No
2、Self-assessment report of internal control
Disclosure date of self-assessment
Apr. 18th, 2017
report of internal control
Disclosure index of self-assessment
http://www.cninfo.com.cn
report of internal control
proportion of total asset in the
assessment accounting for the total 100.00%
asset in the financial statement
proportion of revenue in the
assessment accounting for the revenue 100.00%
in the financial statement
Deficiency Definition Standard
Type Financial Report Non Financial Report
1. Fraud behavior of the directors, 1.Lack democratic decision-making procedure
supervisors and senior management. or violation of democratic decision-making
2. The company has corrected the procedure
published financial report, the
2.Violate national laws and regulations and get
significant wrong report due to fraud
punished
and mistakes, the significant mistakes
3.Great loss of middle and senior management
in the financial report found by
qualitative standard and senior technical personnel
certified public accountants, but not
4.Frequent media negative news with a large
found by the company’s internal
range
control.
5.Signifant business lacks regulation control or
3. The supervision of audit committee
regulation system becomes ineffective
on the company’s external financial
report and internal control of financial 6.The significant deficiencies of internal control
report is not effective. is not corrected
The amount of misstatement of the The amount of misstatement of the financial
quantitative standard financial statements falls within the statements falls within the following ranges:
following ranges: Wrong report ≥ 4% of total profit
Wrong report ≥ 4% of total profit
Financial Report Major
Defects
Non-financial reporting
significant number of
defects
Chongqing Changan Automobile Company Limited 2016 Annual Report
Financial Reporting Key
Number of defects
Non-financial reporting
Number of important
defects
Ⅹ. Internal control audit report
√Applicable □Not applicable
deliberations in the internal control audit report
The audit opinion of the internal control audit report compiled by Ernst & Young Hua Ming Accounting Firm:
Chongqing Changan Automobile Co., Ltd keeps the effective financial report internal control on significant aspects
from Dec.31st,2016, according to “Basic Norms of Enterprise Internal Control” and other related regulations.
Disclosure date of audit report of
Apr.18, 2017
internal control
Disclosure index of audit report of Internal control audit report will be published on
internal control http://www.cninfo.com.cn on Apr.18, 2017
type of opinion on internal control audit
standard and unqualified opinion
report
Whether there is huge deficiency in the
No
non-financial report
Whether the accounting firm issued non-standard internal control audit report or not?
□ Yes √ No
Whether the internal control audit report issued by the Accounting Firm agreed with the self-assessment
report of the board of directors or not?
√ Yes □ No
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chapter 9 Corporate Bonds
1、 Basic information of corporate bonds
Bond
bond balance inter
bond
bond name short issue day due day (ten est Servicing way
code
name thousand rate
yuan)
On/up interest day: April
23, 2012.
Payment date: from 2013 to
2017 every year on April 23
for a draw on the annual
payment date (in case of
legal holidays or rest days,
automatically postponed to
the following first working
day).
Corporate To honor day: April 23 of
bonds of 2017 (in case of legal
Chongqing 12 holidays or rest days,
2017.04.2 5.30
Changan Changan 112079 2012.04.23 198,000 automatically postponed to
3 %
Automobile debt the following first working
Co., LTD., day).
2012 Servicing way: using simple
interest rate on a yearly
basis, regardless of
compound interest, extra
interest doesn’t incur form
overdue situation. Due
payments once a year,
maturing debt at a time. In
the final phase, interest is
paid together with the
principal redemption.
Corporate bonds listed
Listed in Shenzhen Stock Exchange
or trading places
Investors appropriate
For qualified investors
arrangement
According to 2012 company bond rate announcement of Chongqing Changan
Automobile Co., LTD., the current bond rate is 5.30%. Each 1000-yuan face value of
bonds entails the interest of RMB 53.00 yuan (including tax). After the tax collection,
During the reporting the actual distributing interest for the individual and the securities investment fund
period, interest bond holders is RMB42.40 yuan for each; after the tax collection, the actual
payment situation of distributing interest of a non-resident enterprise (including QFII, RQFII) is RMB 47.70
the company bonds yuan for each.
The company in 2016 pays RMB 104.88 million yuan of bond interest; Creditor's rights
registration day: April 22, 2016; Ex-dividend day: April 25, 2016. Payment date: April
25, 2016.
2、 Bond trustee and the credit rating agency information
Bond trustee：
Chongqing Changan Automobile Company Limited 2016 Annual Report
Haitong No. 1101, 11/F,
Securities Co., Taikang
LTD. International
office Li
Name (hereinafter Building, No. 2 of contact Tel 010-58067801
address Shiwen
referred to as Wudinghou Street,
the \"Haitong of West city
securities\") district, Beijing.
The credit rating agencies which follow and rate the corporate bond during the reporting period
No. 2 PICC Building 12 layer,
office
Name Joint Credit Rating Co., LTD Broadway street, Chaoyang
address
District,Beijing (100022)
3、 The usage of corporate bonds to raise money
The twenty-sixth session of the fifth board of directors meeting held on
January 16th, 2012, and the extraordinary shareholders' general meeting for
the first time on February 3rd, 2012, passed the bill on issuance of company
bonds. On March 26, 2012, the company received the approval of China
securities regulatory commission about Chongqing Changan Automobile co.,
LTD., a public approval of the issuance of company bonds \"(regulatory
The usage and performance of permission [2012] no. 388), and the company was granted to issue corporate
raised funds from Corporate bonds bonds to the public with face value less than 1.98 billion yuan.
As of April 26, 2012, the company has completed relevant work of bond
issue, raising money 1.98 billion yuan. The bond is a five-year variety with a
fixed interest rate of 5.30%.
The funds after the deduction of distribution costs in this issuance were
completely used to supplement the company's liquidity.
At the end of balance (ten thousand) 0
Raise money for special account
Operate orderly
operation
Whether the usage of the raised
money corresponding to the
Unanimous
purposes of promise, use plans, and
other agreement
4、 Corporate bond rating information
According to the China securities regulatory commission \"corporate bond issuance and trading management
measure\" (hereinafter referred to as the \"management measures\"), the listing rules for \"corporate bonds\" of
Shenzhen Stock Exchange and other regulations, Joint Credit Rating Co., LTD followed the credit rating for the
company's issuance of corporate bonds. Joint Credit Rating Co., LTD issued the analysis report of tracking rating
2012 corporate bonds for Chongqing changan automobile co., ltd. on June 15, 2016 and maintained the credit
rating of \"AAA\" for Changan Automobile with the outlook of \"stable\"; At the same time it maintained \"AAA\"
credit rating\" for 12 Changan debt. (Detailed information, please refer to http://www.cninfo.com.cn for the 2016
analysis report of tracking rating 2012 corporate bonds for Chongqing Changan Automobile Co., Ltd. On June 16,
2016).
5、 Corporate bond credit mechanism, the debt repayment plans and other security
measures
√Applicable □non-applicable
(1) The credit mechanism
This bond is guaranteed by China Changan with full, unconditional, irrevocable and joint liability, and the
scope of the guarantor’s guarantee includes the current debt principal and interest, as well as the penalty due to
breach of contract, compensation for damage, the cost of the creditor's rights and other fees. As for the main
financial indicators of the guarantor, please refer to the chapter \"The guarantor’s financial statements during the
reporting period.
Chongqing Changan Automobile Company Limited 2016 Annual Report
(2) The repayment plan
①The interest payment
A. Due payments once a year, maturing debt at a time. In the final phase, interest is paid together with the
principal redemption. No interest incurs from each interest payment since payment date. This bond payment date
from 2013 to 2017 for every year on April 23 (in case of legal holidays or rest days, automatically postponed to the
following first working day, and no additional interest payments during the postponing period).
B. The bond interest paid by bonds registration institution and related institutions. Specific item of the interest
payments will be released in the designated media by the competent department of media in accordance with the
relevant provisions of the state.
C. According to the national tax laws and regulations, investors should pay the relevant taxes and fees
generated from the bonds.
②The payment of the principal
A. Debt to the maturity of bonds for the issuance..
B. This bond redemption date for April 23, 2017 (in case of legal holidays or rest days, automatically
postponed to the following first working day, and no additional interest payments during the postponing period).
C. The bond principal paid by bonds registration institution and related institutions. Specific item of the
principal payments will be released in the designated media by the competent department of media in accordance
with the relevant provisions of the state.
(3) The debt repayment guarantee measures
In order to fully and effectively safeguard the interests of the bondholders, the company set up a series of
work plans for the timely repayment of the issue bonds with full specified amount at once, including a specific
department and personnel, the arrangement of a sinking fund, the management measures, the organization and
coordination, the strengthening of information disclosure, etc., and the repayment guarantee measures are as
follows:
①Develop the bondholder meeting rules
The Company in accordance with the requirements of the \"management method\" made “The bondholder
meeting rules”. “The bondholder meeting rules” agreed on the scope, procedures and other important issues of
bondholders’ rights through bondholders meeting, to ensure the system arrangement for the timely repayment of
the company debt principal and interest.
②Hire a bond trustee
In accordance with the \"management measure\" regulation, the Company employed Haitong Securities as the
trustee of the current debt and concluded with Haitong Securities on the \"bond trustee agreement\". During the
existing period, the Haitong Securities in accordance with the agreement of the bond trustee agreement was on
behalf of the interests of the current bondholders. The Company, in strict accordance with the provisions of the
bond trustee agreement, cooperated with the bond trustee to perform its duties, and submitted the execution of the
promise to the bond trustee on a regular basis, and informed the bond trustee and the guarantor in the case of
default in order to start the corresponding security program in time, or other necessary measures according to the
bond trustee agreement.
③Strict capital management plan
After this bond issuance, according to the situation of the debt structure, the company further enhanced the
company's assets and liabilities management, liquidity management, use management of raised funds and was
subject to future debt principal and interest payable based on the annual and monthly fund use plan, guarantee the
capital schedule as planned to conduct the timely and full repayment of the interest and principal and protect the
interests of investors.
④Strict information disclosure
The Company will follow the principle of true, accurate and complete information disclosure, and the
company debt paying ability, the usage situation of the raised money and so on will be supervised by bond holders,
bond entrusted managers and shareholders in order to guard against insolvency risk. According to the bond trustee
agreement and the relevant provisions of China securities regulatory commission on information disclosure of
important matters, the following matters are included at least: The difficulty of repaying the maturing debt interest
and/or principal; the company guarantees and other important contracts may impact majorly on the servicing
ability; A major loss or substantial losses with more than 10% of the Company's net worth; The decreasing
investment, merger, division, dissolution, filed for bankruptcy and other situations change the subject of the
company; A major arbitration or litigation may heavily influence the company’s servicing ability; the major
restructuring of debt may heavily influence the company servicing ability; the Company changes the guarantee
way of related information; The Company or the bond credit rating encounters a serious adverse change; the
change of the bond trustee; the trading of the bonds are suspended; Other significant matters may affect the
interests of the bondholders; Other circumstances stipulated by the China securities regulatory commission.
⑤Other security measures
According to the approval from the twenty-sixth session of the fifth board of directors meeting, and the
extraordinary shareholders' general meeting for the first time in 2012, if the Company estimates the difficulty of
repaying the debt principal and interest on schedule or failed to repay debt principal and interest on schedule, the
Chongqing Changan Automobile Company Limited 2016 Annual Report
Company at least takes the following measures: no distribution of profits to its shareholders; A moratorium on the
major foreign investment, mergers and acquisitions, capital expenditure; and lower the salary/wages and bonuses
of directors and senior management personnel; The main responsible person shall not be transferred.
6、 During the reporting period the bondholder meeting
During the reporting period, the company did not hold bondholders meeting.
7、 During the reporting period the bond trustee perform his duties
According to the China securities regulatory commission \"corporate bond issuance and trading management
measure\" (hereinafter referred to as the \"management measures\"), the listing rules for \"corporate bonds\"of
Shenzhen Stock Exchange and other regulations, Haitong Securities issued “Trustee transaction report Chongqing
Changan Automobile 2012 Corporate Bonds (2015) “ on May 19, 2016 (Detailed information, please refer to
http://www.cninfo.com.cn).
8、During the reporting period, the company's major accounting data and financial
indicators for last 2 years
Unit：10 thousand
Item 2016 2015 variation
EBITDA 1,275,896 1,216,509 4.88%
Flow ratio 110.01% 102.68% Up 7.33%
Assets and liabilities ratio 59.30% 61.78% Down 2.48%
Quick ratio 94.52% 84.80% Up 9.72%
EBITDA all debt ratio 20.20% 22.02% Down 1.82%
Interest protection factor 85.60 88.14 -2.88%
Cash interest margin 20.29 48.13 -57.84%
EBITDA Interest Protection
104.29 105.88 -1.50%
Multiplier
Loan repayment rate 100.00% 100.00% 0.00%
Interest rate 100.00% 100.00% 0.00%
The main reason that the accounting data and financial indicators yoy change more than 30%
√Applicable □ non-applicable
Item Reason of variation of more than 30%
Cash interest margin Net cash flow from operating activities decreased
9、During the report period interest payment for other bonds and debt financing tool
□Applicable √non-applicable
10、During the reporting period obtain bank credit, its use situation and repayment of bank
loans
At the end of June,2016, the company got the bank credit amount of RMB 43 billion yuan. Until December
31, 2016, the actual use of credit is 20.8 billion yuan; in 2016 the Company repaid all bank loans on time with no
late repayment.
Chongqing Changan Automobile Company Limited 2016 Annual Report
11、During the reporting period the situation of performing the related agreement or
commitment in the corporate bond prospectus
On April 25, 2016 the company paid the interest bonds of “12 Changan Debt\" from April 23, 2015 to April 22,
2016 (details refer to 2012 corporate bonds 2016 interest-payment announcement by the company on April 19,
2016 on the website http://www.cninfo.com.cn ).
12、Major events occurring in the period of report
□Applicable √non-applicable
13、Whether there is a guarantor corporate bonds
√Applicable □non-applicable
The guarantor of the corporate bond is a legal person or other organizations
√Applicable □non-applicable
Whether to disclose the guarantor’s financial statements during the reporting period, including the balance sheet,
income statement, the cash flow statement, statement of changes in owner's equity (shareholders' equity) and the
notes to financial statements.
√Applicable □non-applicable
14、The guarantor financial statements during the reporting period
Content can be found in relevant announcements on August 18, 2017, and published on the website
of network (www.cninfo.com.cn).
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chapter 10 Auditor’s Report
Auditor’s Report
Ernst & Young Hua Ming Shen Zi (2017) No. 60662431_D01
To the shareholders of
Chongqing Changan Automobile Company Limited
We have audited the accompanying financial statements of Chongqing Changan Automobile
Company Limited, which comprise the consolidated and the company balance sheet as at 31
December 2016, and the consolidated and the company income statements, the statements of
changes in equity and the cash flow statements for the year then ended and notes to the
financial statements.
Management’s Responsibility for the Financial Statements
Management of Chongqing Changan Automobile Company Limited is responsible for the
preparation and fair presentation of these financial statements. This responsibility includes: (1)
preparing and fairly presenting the financial statements in accordance with Accounting
Standards for Business Enterprises; (2) designing, implementing and maintaining internal
control as management determines is necessary to enable the preparation of the financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the Chinese Standards on Auditing. Those
standards require that we comply with Code Ethical for Chinese Certified Public Accountants
and plan and perform the audit to obtain a reasonable assurance about whether these financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers the internal control relevant to the entity’s preparation and fair presentation of
financial statements in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of the accounting polices
used and the reasonableness of the accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Chongqing Changan Automobile Company Limited 2016 Annual Report
Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2017) No. 60662431_D01
Opinion
In our opinion, the accompanying consolidated and the company financial statements present
fairly, in all material respects, the consolidated and the company’s financial position of
Chongqing Changan Automobile Company Limited as at 31 December 2016, and their
financial performance and cash flows for the year then ended in accordance with the
Accounting Standards for Business Enterprises.
Chen Xiao Xiang
Ernst & Young Hua Ming (LLP) Chinese Certified Public Accountant
Hu Yan
Chinese Certified Public Accountant
Beijing, the People’s Republic of China 18 April 2017
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET
31 December 2016
(Expressed in Renminbi Yuan)
Notes V 2016
Current assets
Cash 1 24,782,504,552.44 18,035,109,674.21
Notes receivable 2 29,002,539,261.26 22,683,096,211.46
Accounts receivable 3 1,498,837,041.54 875,479,556.55
Prepayments 4 1,060,809,892.75 852,071,794.54
Interest receivable 5 19,318,138.89 15,295,866.67
Dividends receivable 6 - 23,684,883.31
Other receivables 7 1,403,399,178.49 1,001,485,245.40
Inventories 8 7,304,106,822.61 8,129,075,131.92
Other current assets 9 926,060,330.87 8,909,736.44
Total current assets 65,997,575,218.85 51,624,208,100.50
Non-current assets
Available-for-sale financial assets 10 432,476,274.00 530,811,274.00
Long-term equity investments 11 14,743,367,010.03 14,906,500,436.49
Investment property 12 7,782,984.40 8,009,695.96
Fixed assets 13 15,480,484,513.99 13,910,237,530.81
Construction in progress 14 3,821,703,830.78 3,063,874,006.92
Project materials 96,690.75 96,690.75
Fixed assets disposal - 12,412.53
Intangible assets 15 3,444,950,675.03 2,843,331,742.67
Development expenditure 16 1,111,176,453.49 1,093,462,382.64
Goodwill 17 9,804,394.00 9,804,394.00
Long-term deferred expenses 18 13,448,409.63 8,028,811.27
Deferred tax assets 19 1,447,607,278.98 1,415,611,191.12
Total non-current assets 40,512,898,515.08 37,789,780,569.16
TOTAL ASSETS 106,510,473,733.93 89,413,988,669.66
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET (continued)
31 December 2016
(Expressed in Renminbi Yuan)
Notes V 2016
Current liabilities
Short-term loans 21 175,000,000.00 50,000,000.00
Notes payable 22 20,952,104,805.58 18,662,900,601.34
Accounts payable 23 19,880,580,102.39 14,973,826,566.55
Advances from customers 24 6,854,337,365.01 7,326,612,631.20
Payroll payable 25 1,839,947,475.23 1,499,613,879.78
Taxes payable 26 555,681,489.16 356,749,196.49
Interest payables 27 73,458,000.00 73,458,000.00
Dividend payables 28 79,742.80 79,742.80
Other payables 29 1,449,028,595.97 1,762,874,858.05
Contingent liabilities 30 2,010,153,951.87 1,641,676,220.15
Other current liabilities 31 4,211,570,198.88 3,930,898,961.15
Current portion of
non-current liabilities 32 1,992,341,127.81 -
Total current liabilities 59,994,282,854.70 50,278,690,657.51
Non-current liabilities
Bonds payable 33 - 1,975,102,599.85
Long-term loans 34 19,980,912.00 -
Long term payroll payable 35 105,132,000.00 106,622,000.00
Special payable 36 217,497,540.80 164,121,780.05
Deferred income 37 2,785,885,626.37 2,666,543,408.82
Deferred tax liabilities 19 34,535,250.00 49,285,500.00
Total non-current liabilities 3,163,031,329.17 4,961,675,288.72
Total liabilities 63,157,314,183.87 55,240,365,946.23
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET (continued)
31 December 2016
(Expressed in Renminbi Yuan)
Notes V 2016
Owners’ equity
Share capital 38 4,802,648,511.00 4,662,886,108.00
Capital reserves 39 5,085,301,532.55 3,227,489,320.83
Other Comprehensive Income 40 141,480,908.23 242,110,844.54
Special reserves 41 16,349,485.65 22,036,479.54
Surplus reserves 42 2,401,324,255.50 2,331,443,054.00
Retained earnings 43 31,126,707,710.94 23,899,223,263.45
Equity attributable to owners 43,573,812,403.87 34,385,189,070.36
Minority interests (220,652,853.81) (211,566,346.93)
Total equity 43,353,159,550.06 34,173,622,723.43
TOTAL LIABILITIES
AND OWNERS’ EQUITY 106,510,473,733.93 89,413,988,669.66
The financial statements have been signed by:
Legal Principal in Charge Chief
Representative: of Accountancy: Accountant:
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chongqing Changan Automobile Company Limited
CONSOLIDATED INCOME STATEMENT
Year ended 31 December 2016
(Expressed in Renminbi Yuan)
Notes V 2016
Operating revenue 44 78,542,441,757.19 66,771,580,527.66
Less: Operating cost 44 64,487,605,908.58 53,406,710,707.60
Tax and surcharges 45 3,629,619,040.93 2,941,577,703.72
Operating expenses 46 5,293,744,700.63 4,954,522,137.85
General and administrative
expenses 47 5,128,856,385.18 4,899,212,097.06
Financial income 48 (305,390,915.29) (150,805,630.19)
Impairment loss on assets 49 468,851,401.15 630,316,436.27
Add: Investment income 50 9,619,016,254.57 9,497,409,092.94
Including: Investment income
from associates and joint
venture 9,563,723,801.40 9,439,864,877.63
Operating profit 9,458,171,490.58 9,587,456,168.29
Add: Non-operating income 51 983,119,330.50 514,920,557.97
Including: gain on disposal of
non-current assets 7,658,376.74 1,709,968.83
Less: Non-operating expenses 52 91,466,040.83 90,491,722.00
Including: loss on disposal of
non-current assets 33,834,450.18 36,024,036.17
Total profit 10,349,824,780.25 10,011,885,004.26
Less: Income tax expense 53 73,230,121.41 89,331,468.18
Net profit 10,276,594,658.84 9,922,553,536.08
Net profit attributable to owners 10,285,284,120.57 9,952,714,168.09
Minority interests (8,689,461.73) (30,160,632.01)
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chongqing Changan Automobile Company Limited
CONSOLIDATED INCOME STATEMENT (continued)
Year ended 31 December 2016
(Expressed in Renminbi Yuan)
Notes V 2016
Other comprehensive income,
net of tax
Total comprehensive income
attributable to owners,
net of tax
Other comprehensive income
not to be reclassified to
profit or loss in
subsequent periods:
Change in net liability or
assest from defined
benefit plan 4,676,000.00 2,956,000.00
Other Comprehensive income
not to be recalssfied
to profit or loss
under equity method (166,479.23) (966,718.09)
Other comprehensive income
to be reclassified to profit
or loss in subsequent periods:
Changes in fair value from
available-for-sale financial
assest (83,584,750.00) (37,567,875.00)
Foreign currency reserve (21,554,707.08) (14,323,959.61)
Total comprehensive income
attributable to minority
interests, net of tax - -
Total comprehensive income 10,175,964,722.53 9,872,650,983.38
Total comprehensive income
attributable to owners 10,184,654,184.26 9,902,811,615.39
Total comprehensive income
attributable to minority
interest (8,689,461.73) (30,160,632.01)
Earnings per share
Basic earnings per share 2.19 2.13
Diluted earnings per share Not Applicable Not Applicable
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chongqing Changan Automobile Company Limited
CONSOLIDATED STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Year ended 31 December 2016
(Expressed in Renminbi Yuan)
Equity attributable to owners
Share capital Captial Other Special Surplus Retained Subtotal Mionrity interest Total equity
reserves comprehensive reserves reserves earnings
income
At 31 December 2015 4,662,886,108.00 3,227,489,320.83 242,110,844.54 22,036,479.54 2,331,443,054.00 23,899,223,263.45 34,385,189,070.36 (211,566,346.93) 34,173,622,723.43
Changes during the year
Total comprehensive income - - (100,629,936.31) - - 10,285,284,120.57 10,184,654,184.26 (8,689,461.73) 10,175,964,722.53
Capital contributed by owners
and capital decreases
1.Capital contributed
by owners 139,762,403.00 1,844,096,311.72 - - - 1,983,858,714.72 - 1,983,858,714.72
2.The amount of share-based
payments recorded in
Owners’ equity - 13,715,900.00 - - - - 13,715,900.00 - 13,715,900.00
Distribition of profit
1.Appropriation of
surplus reserve - - - - 69,881,201.50 (69,881,201.50) - - -
2.Distribution to owners - - - - - (2,987,918,471.58) (2,987,918,471.58) - (2,987,918,471.58)
Special reserves
1.Provided - - - 80,288,776.56 - - 80,288,776.56 976,588.09 81,265,364.65
2.Ultilized - - - (89,158,637.23) - - (89,158,637.23) (1,373,633.24) (90,532,270.47)
3.Effective portion of
changes in special
reserves from joint
venture - - - 3,182,866.78 - - 3,182,866.78 - 3,182,866.78
At 31 December 2016 4,802,648,511.00 5,085,301,532.55 141,480,908.23 16,349,485.65 2,401,324,255.50 31,126,707,710.94 43,573,812,403.87 (220,652,853.81) 43,353,159,550.06
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chongqing Changan Automobile Company Limited
CONSOLIDATED STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (continued)
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
Equity attributable to owners
Share capital Captial Other Special Surplus Retained Subtotal Mionrity interest Total equity
reserves comprehensive reserves reserves earnings
income
At 31 December 2014 4,662,886,108.00 3,227,489,320.83 292,013,397.24 7,864,849.94 2,331,443,054.00 15,115,601,819.79 25,637,298,549.80 (181,886,852.58) 25,455,411,697.22
Changes during the year
Total comprehensive income - - (49,902,552.70) - - 9,952,714,168.09 9,902,811,615.39 (30,160,632.01) 9,872,650,983.38
Distribition of profit
1.Distribution to owners - - - - - (1,169,092,724.43) (1,169,092,724.43) - (1,169,092,724.43)
Special reserves
1.Provided - - - 69,992,434.73 - - 69,992,434.73 1,174,225.33 71,166,660.06
2.Ultilized - - - (58,059,866.21) - - (58,059,866.21) (693,087.67) (58,752,953.88)
3.Effective portion of
changes in special
reserves from joint
venture - - - 2,239,061.08 - - 2,239,061.08 - 2,239,061.08
At 31 December 2015 4,662,886,108.00 3,227,489,320.83 242,110,844.54 22,036,479.54 2,331,443,054.00 23,899,223,263.45 34,385,189,070.36 (211,566,346.93) 34,173,622,723.43
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chongqing Changan Automobile Company Limited
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December 2016
(Expressed in Renminbi Yuan)
Notes V 2016
CASH FLOWS FROM
OPERATING ACTIVITIES
Cash received from sale of goods
or rendering of services 78,942,062,368.66 67,227,118,483.19
Refunds of taxes 178,956,002.72 132,443,967.23
Cash received relating to other
operating activities 55 1,355,517,641.00 880,908,236.41
Subtotal of cash inflows 80,476,536,012.38 68,240,470,686.83
Cash paid for goods and services 59,116,153,862.52 47,149,288,245.62
Cash paid to and on behalf of
employees 5,549,657,883.75 4,793,792,121.63
Cash paid for all types of taxes 6,901,561,944.16 5,548,989,133.66
Cash paid relating to other
operating activities 55 6,622,611,016.75 5,333,510,416.42
Subtotal of cash outflows 78,189,984,707.18 62,825,579,917.33
Net cash flows from operating
activities 56 2,286,551,305.20 5,414,890,769.50
CASH FLOWS FROM
INVESTING ACTIVITIES
Cash received from return
on investment 9,799,173,102.34 8,357,544,215.31
Net cash received from disposal
of fixed assets, intangible assets
and other long-term assets 2,799,368.75 1,278,718.52
Cash received relating to other
investing activites 55 280,035,500.00 112,430,000.00
Subtotal of cash inflows 10,082,007,971.09 8,471,252,933.83
Cash paid for acquisition of
fixed assets,intangible assests
and other long-term assets 4,644,798,094.50 3,017,850,561.90
Cash paid for acquisition of
investments - 1,185,552,000.00
Cash paid relating to other
investing activities 55 - 88,000.38
Subtotal of cash outflows 4,644,798,094.50 4,203,490,562.28
Net cash flows from investing activities 5,437,209,876.59 4,267,762,371.55
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chongqing Changan Automobile Company Limited
CONSOLIDATED CASH FLOW STATEMENT (continued)
Year ended 31 December 2016
(Expressed in Renminbi Yuan)
Notes V 2016
CASH FLOWS FROM
FINANCING ACTIVITIES:
Cash received from investors 1,984,000,000.00 -
Cash received from borrowings 167,940,510.00 60,000,000.00
Cash received relating to
other financing activities 55 1,109,969.63 48,806,228.67
Sub-total of cash inflows 2,153,050,479.63 108,806,228.67
Cash repayments of borrowings 9,638,990.00 100,000,000.00
Cash paid for distribution of dividends
or profits and interest expenses 3,110,847,894.67 1,283,023,462.46
Cash paid relating to
other financing activities 55 1,482,209,049.71 45,238,112.37
Sub-total of cash outflows 4,602,695,934.38 1,428,261,574.83
Net cash flows from financing activities (2,449,645,454.75) (1,319,455,346.16)
EFFECT OF CHANGES IN EXCHANGE
RATE ON CASH (6,605,001.21) (130,371.38)
NET INCREASE IN CASH
AND CASH EQUIVALENTS 5,267,510,725.83 8,363,067,423.51
Add: Opening balance of
cash and cash equivalents 17,725,921,341.22 9,362,853,917.71
CLOSING BALANCE OF
CASH AND CASH EQUIVLANT 56 22,993,432,067.05 17,725,921,341.22
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chongqing Changan Automobile Company Limited
BALANCE SHEET
31 December 2016
(Expressed in Renminbi Yuan)
Notes XV 2016
Current assets
Cash 23,767,111,763.75 17,223,403,333.90
Notes receivable 28,699,756,422.50 22,362,236,477.47
Accounts receivable 1 4,328,886,769.78 3,395,349,268.28
Prepayments 905,659,820.16 671,459,087.17
Interest receivable 19,318,138.89 15,295,866.67
Dividend receivable 5,900,371.55 23,684,883.31
Other receivables 2 1,456,016,984.91 1,020,947,609.26
Inventories 6,292,770,310.90 7,034,843,877.19
Other current assets 592,803,108.38 -
Total current assets 66,068,223,690.82 51,747,220,403.25
Non-current assets
Available-for-sale financial assets 432,476,274.00 530,811,274.00
Long-term equity investments 3 16,425,513,619.11 16,234,640,261.85
Fixed assets 12,142,942,955.13 11,439,456,287.51
Construction in progress 3,613,887,112.73 2,694,046,285.96
Project materials 96,690.75 96,690.75
Intangible assets 2,799,021,341.24 2,549,877,967.28
Development expenditure 986,790,085.03 973,680,610.53
Long-term deferred expenses 12,729,576.00 5,734,664.00
Deferred tax assets 1,331,906,388.11 1,311,976,033.85
Other non-current assets - 184,595,895.00
Total non-current assets 37,745,364,042.10 35,924,915,970.73
TOTAL ASSETS 103,813,587,732.92 87,672,136,373.98
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chongqing Changan Automobile Company Limited
BALANCE SHEET (continued)
31 December 2016
(Expressed in Renminbi Yuan)
2016
Current liabilities
Notes payable 20,344,635,258.93 17,867,862,639.24
Accounts payable 16,912,556,809.95 12,261,927,977.59
Advances from customers 6,563,904,714.60 7,244,681,597.34
Payroll payable 1,567,187,782.78 1,340,616,604.42
Taxes payable 470,185,940.53 685,518,624.02
Interest payable 73,458,000.00 73,458,000.00
Other payables 1,922,286,938.56 1,715,127,488.12
Contingent liabilities 1,947,415,048.79 1,610,185,432.44
Other current liabilities 3,992,241,040.51 3,751,184,504.59
Current portion of
non-current liabilities 1,979,020,519.81 -
Total current liabilities 55,772,892,054.46 46,550,562,867.76
Non-current liabilities
Bonds payable - 1,975,102,599.85
Long term payroll payable 87,480,000.00 87,565,000.00
Special payable 162,146,831.40 103,856,111.50
Deferred income 2,164,751,690.28 2,212,002,396.55
Deferred tax liabilities 34,535,250.00 49,285,500.00
Total non-current liabilities 2,448,913,771.68 4,427,811,607.90
Total liabilities 58,221,805,826.14 50,978,374,475.66
Owner’s equity
Share capital 4,802,648,511.00 4,662,886,108.00
Capital reserves 4,689,475,046.88 2,831,662,835.16
Other comprehensive income 202,294,552.68 281,190,781.91
Special reserves 7,555,003.10 12,723,372.00
Surplus reserves 2,401,324,255.50 2,331,443,054.00
Retained earnings 33,488,484,537.62 26,573,855,747.25
Total owner’s equity 45,591,781,906.78 36,693,761,898.32
TOTAL LIABILITIES
AND OWNERS’ EQUITY 103,813,587,732.92 87,672,136,373.98
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chongqing Changan Automobile Company Limited
INCOME STATEMENT
Year ended 31 December 2016
(Expressed in Renminbi Yuan)
Notes XV 2016
Operating revenue 4 78,133,944,076.33 64,862,129,116.91
Less: Operating cost 4 65,772,445,442.61 52,616,129,433.68
Tax and surcharges 2,977,973,945.41 2,716,124,679.99
Operating expenses 4,820,910,114.23 4,513,587,958.53
General and administrative
expenses 4,536,818,995.75 4,344,973,656.07
Financial income (273,565,990.80) (155,764,882.94)
Impairment loss on assets 327,391,057.23 540,779,680.25
Add: Investment income 5 9,648,255,430.07 9,499,248,778.19
Including: Investment income
from associates and from
joint venture 9,563,723,801.40 9,439,864,877.63
Operating profit 9,620,225,941.97 9,785,547,369.52
Add: Non-operating income 465,569,217.91 382,321,409.12
Including: income on disposal of
non-current assets 6,362,961.67 1,249,832.64
Less: Non-operating expenses 72,327,862.07 82,220,652.86
Including: loss on disposal of
non-current assets 16,587,558.44 33,050,453.63
Total profit 10,013,467,297.81 10,085,648,125.78
Less: Income tax expense 41,038,834.36 87,194,304.60
Net profit 9,972,428,463.45 9,998,453,821.18
Other comprehensive income, net
of tax
Other comprehensive income not to
be reclassified to profit or loss in
subsequent periods:
Change in net liability or assest
from defined benefit plan 4,855,000.00 2,285,000.00
Other Comprehensive income not to be
recalssfied to profit or loss
under equity method (166,479.23) (966,718.09)
Other comprehensive income to be
reclassified to profit or loss in
subsequent periods:
Changes in fair value from
available-for-sale financial assest (83,584,750.00) (37,567,875.00)
Total comprehensive income attributable
to minority interests, net of tax - -
Total comprehensive income 9,893,532,234.22 9,962,204,228.09
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chongqing Changan Automobile Company Limited
STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Year ended 31 December 2016
(Expressed in Renminbi Yuan)
Share capital Captial reserves Other Special reserves Surplus reserves Retained earnings Total onwer’s equity
comprehensive
income
At 31 December 2015 4,662,886,108.00 2,831,662,835.16 281,190,781.91 12,723,372.00 2,331,443,054.00 26,573,855,747.25 36,693,761,898.32
Changes during the year
Total comprehensive income - - (78,896,229.23) - - 9,972,428,463.45 9,893,532,234.22
Capital contributed by owners
and capital decreases
1.Capital contributed
by owners 139,762,403.00 1,844,096,311.72 - - - - 1,983,858,714.72
2. The amount of share-based
payments recorded in - 13,715,900.00 - - - - 13,715,900.00
owners’ equity
Distribition of profit
1.Appropriation of
surplus reserve - - - - 69,881,201.50 (69,881,201.50)-
2.The distribution to owners - - - - (2,987,918,471.58) (2,987,918,471.58)
Special reserves
1.Provided - - - 67,150,949.98 - - 67,150,949.98
2.Ultilized - - - (75,502,185.66) - - (75,502,185.66)
3.Effective portion of
changes in special reserves
from joint venture - - - 3,182,866.78 - - 3,182,866.78
At 31 December 2016 4,802,648,511.00 4,689,475,046.88 202,294,552.68 7,555,003.10 2,401,324,255.50 33,488,484,537.62 45,591,781,906.78
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chongqing Changan Automobile Company Limited
STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (continued)
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
Share capital Captial reserves Other Special reserves Surplus reserves Retained earnings Total onwer’s equity
comprehensive
income
At 31 December 2014 4,662,886,108.00 2,831,662,835.16 317,440,375.00 3,127,864.50 2,331,443,054.00 17,744,494,650.50 27,891,054,887.16
Changes during the year
Total comprehensive income - - (36,249,593.09) - - 9,998,453,821.18 9,962,204,228.09
Distribition of profit
1.The distribution to owners - - - - - (1,169,092,724.43) (1,169,092,724.43)
Special reserves
1.Provided - - - 57,322,438.61 - - 57,322,438.61
2.Ultilized - - - (49,965,992.19) - - (49,965,992.19)
3.Effecitve portion of
changes in special reserves
from joint venture - - - 2,239,061.08 - - 2,239,061.08
At 31 December 2015 4,662,886,108.00 2,831,662,835.16 281,190,781.91 12,723,372.00 2,331,443,054.00 26,573,855,747.25 36,693,761,898.32
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chongqing Changan Automobile Company Limited
CASH FLOW STATEMENT
Year ended 31 December 2016
(Expressed in Renminbi Yuan)
2016
CASH FLOWS FROM
OPERATING ACTIVITIES
Cash received from sale of goods
or rendering of services 74,657,783,763.53 63,953,693,285.60
Cash received relating to other
operating activities 1,433,378,129.76 996,275,037.87
Subtotal of cash inflows 76,091,161,893.29 64,949,968,323.47
Cash paid for goods and services 57,801,119,517.16 45,915,351,745.05
Cash paid to and on behalf of
employees 4,296,500,901.42 3,823,164,575.49
Cash paid for all types of taxes 5,819,707,683.64 5,027,223,259.49
Cash paid relating to other
operating activities 6,587,862,349.67 5,019,252,596.31
Subtotal of cash outflows 74,505,190,451.89 59,784,992,176.34
Net cash flows from operating
activities 1,585,971,441.40 5,164,976,147.13
CASH FLOWS FROM
INVESTING ACTIVITIES
Cash received from return
on investment 9,807,358,030.44 8,359,383,900.56
Net cash received from disposal
of fixed assets, intangible assets
and other long-term assets 1,768,232.23 70,308,457.82
Cash received relating to other
investing activites 131,659,104.60 107,130,000.00
Subtotal of cash inflows 9,940,785,367.27 8,536,822,358.38
Cash paid for acquisition of
fixed assets,intangible assests
and other long-term assets 3,644,257,044.91 2,494,275,759.38
Cash paid for acquisition of
investments 174,107,363.00 1,370,147,895.00
Cash paid relating to other
investing activities 50,000,000.00 166,088,000.38
Subtotal of cash outflows 3,868,364,407.91 4,030,511,654.76
Net cash flows from investing activities 6,072,420,959.36 4,506,310,703.62
Chongqing Changan Automobile Company Limited 2016 Annual Report
Chongqing Changan Automobile Company Limited
CASH FLOW STATEMENT (continued)
Year ended 31 December 2016
(Expressed in Renminbi Yuan)
2016
CASH FLOWS FROM
FINANCING ACTIVITIES
Cash received from investors 1,984,000,000.00 -
Sub-total of cash inflows 1,984,000,000.00 -
Cash paid for distribution of dividends
or profits and for interest expenses 3,097,469,043.23 1,276,036,381.20
Other cash payment relating to
financing activities 1,441,760,606.76 -
Sub-total of cash outflows 4,539,229,649.99 1,276,036,381.20
Net cash flows from financing activities (2,555,229,649.99) (1,276,036,381.20)
NET INCREASE IN CASH
AND CASH EQUIVALENTS 5,103,162,750.77 8,395,250,469.55
Add: Cash and cash equivalents at
beginning of year 17,223,403,333.90 8,828,152,864.35
CASH AND CASH EQUIVLANT
AT END OF YEAR 22,326,566,084.67 17,223,403,333.90
Chongqing Changan Automobile Company Limited 2016 Annual Report
I CORPORATE INFORMATION
Chongqing Changan Automobile Company Limited (hereafter referred to as the “Company”) was
established by China Changan Automobile Group (hereafter referred to as the “Changan Group”)
as the individual originator on 31 October 1996. The company was set up using the group’s net
asset relating to the operation of mini cars and engine, the shares it owned in Chongqing Changan
Suzuki company limited (equal to 506,190,000 shares of the Company) and the fund raised from
the issuance of 250,000,000 foreign capital stock (B shares), with total share capital of
RMB756,190,000.
With the approval of China Securities Regulatory Commission, the company initially floated on
share market on 19 May 1997 by issuing 120,000,000 common shares (A share) to the public. The
offering increased the total share capital to RMB 876,190,000.
On 26 June 1998, the Company issued 4 shares for each 10 shares to existing shareholders of the
original 876,190,000 shares. The issuance was made from capital reserve and increased the total
share capital to RMB 1,226,666,000.
On 26 May 2004, the Company offered 2 bonus shares for each 10 shares held by existing
shareholders, which increased the total share capital from RMB 1,226,666,000 to RMB
1,471,999,200.
On 26 August 2004, with the approval of China Securities Regulatory Commission, the Company
offered 148,850,000 common shares (A share) to the market, which increased the total share
capital to RMB 1,620,849,200.
In December 2005, China South Industries Group Corporation (hereafter referred to as the “South
Group”), the ultimate parent company, used the common share (850,399,200 shares) owned by its
subsidiary, Changan Group, as part of the investment to establish China South Industries Motor
Company (hereafter referred to as ”South Industries Motor”). The share occupied 52.466% of the
Company’s total share capital. Therefore, South industries Motor became the parent company of
the Company. On 30 March 2006, the transfer of share was registered by Shenzhen branch of
China Securities Depository and Clearing Corporation limited.
In May 2006, South Industries Motor issued 3.2 bonus shares for each 10 shares to the
shareholders at the implementation date of reformation of non-tradable shares for their
non-tradable shares according to the ”Reply of the problems related to the reformation of
non-tradable shares of Chongqing Changan Automobile Co., Ltd.” (2006[442] Guo Zi Chan Quan)
issued by the State-owned Assets Supervision and Administration Commission of State Council
and the related shareholder’s meeting. After the reformation of non-tradable shares, South
Industries Motor occupied 45.548% of equity through 738,255,200 common shares.
Chongqing Changan Automobile Company Limited 2016 Annual Report
I CORPORATE INFORMATION (continued)
On 15 May 2007, the Company issued 2 bonus shares for each 10 shares to existing shareholders,
which increased the total share capital from RMB 1,620,849,200 to RMB 1,945,019,040.
On 30 May 2008, the Company issued 2 shares for each 10 shares owned by existing shareholders.
The issuance was made from capital reserve and increased the total share capital to RMB
2,334,022,848.
On 3 March 2009, the secondary temporary shareholder meeting was held. The board resolution
about ‘the reacquisition of foreign capital stock listed in China’ was approved in the meeting. For
the buyback period ended on 3 March 2010, the company repurchased 8,365,233 shares in total,
equal to 0.3584% of total capital.
On 1 July 2009, with the approval of State Administration for Industry and Commercial, South
industries Motor, the parent company changed its name to China Changan Automobile Industry
(Group) Co., Ltd. (hereafter referred to as the “China Changan”).
With the approval of China Securities Regulatory Commission on 14 January 2011, the Company
issued 360,166,022 common shares (A share), which increased the total share capital to RMB
2,685,823,637. After the completion of the issuance, China Changan holds 1,163,787,489 shares
of the Company's common stock, and the held equity interest decreased to 43.33%.
On 18 May 2011, the Company issued 4 bonus shares for each 10 shares and issued 4 shares to 10
shares from capital reserve to existing shareholders. After this issuance, the total share capital has
been increased to RMB 4,834,482,546.
On 21 December 2011, the first temporary shareholder meeting was held. The board resolution
about ‘the reacquisition of foreign capital stock listed in China’ was approved in the meeting. For
the buyback period ended on 20 March 2012, the company repurchased 171,596,438 shares in
total, equal to 3.55% of total capital. On 30 March 2012, the company cancelled the share and the
share capital decreased to RMB 4,662,886,108.
During 2013 and 2014, China Changan, the parent company of the Company, continuously sold
181,260,000 and 89,962,264 shares in total in secondary market. As at 31 December 2014, China
Changan holds 1,823,595,216 shares of the Company’s ordinary shares, with shares proporation
decreasing to 39.11%.
Chongqing Changan Automobile Company Limited 2016 Annual Report
I CORPORATE INFORMATION (continued)
With the approval of China Securities Regulatory Commission on 14 September 2016, the
Company issued 139,762,403 non-public common shares (A share) to China Changan Automobile
Industry (Group) Co., Ltd., which caused the total share capital increased to RMB 4,802,648,511.
After the completion of the issuance, China Changan holds 1,963,357,619 shares of the
Company's common stock, with shares proporation increasing to 40.88%.
As at 31 December 2016, the Company’s parent company and ultimate controlling company is
China Changan and South Group respectively.
The Company and its subsidiaries (hereafter referred to as the “Group”) mainly focus on the
manufacturing and sales of automobile (include cars), automobile engine, spare parts.
According to the Articles of Association, the financial statements, which has been approved by the
board of directors on 18 April 2017, was submitted to general meeting of shareholders for
approval.
The scope of consolidation in the consolidated financial statement is determined based on control.
The change of the consolidation scope of 2016 refer to NoteVI.
II BASIS OF PREPERATION
1. 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.
Chongqing Changan Automobile Company Limited 2016 Annual Report
III SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
According to the actual production and operation characteristics, the group formulated the specific
accounting policies and accounting estimates, mainly reflected in provision of accounts
receivables (note 3 (10), inventory valuation (Note 3 (11), depreciation of fixed assets, intangible
assets amortization (Note 3 (14) (17)), condition of capitalization of research and development
expense (Note 3 (18) and revenue recognition and measurment (Note 3 (22)).
1. Statement of compliance with Accounting Standards for Business Enterprises
The financial statements present fairly and fully, the financial position of the Company as at 31
December 2016 and the financial results and the cash flows for the year then ended in accordance
with Accounting Standards for Business Enterprises.
2. Accounting year
The accounting year of the Group is from 1 January to 31 December of each calendar year.
3. Functional currency
The Group’s functional and reporting currency is the Renminbi (“RMB”). Unless otherwise stated,
the unit of the currency is Yuan. Each entity in the Group determines its own functional currency
in accordance with the operating circumstances. At the end of the reporting period, the foreign
currency financial statements are translated into the reporting currency of the Company of RMB.
4. Business combination
A business combination is a transaction or event that brings together two or more separate entities
into one reporting entity. Business combinations are classified into business combinations
involving entities under common control and business combinations involving entities not under
common control.
Business combination involving entities under common control
A business combination involving entities under common control is a business combination in
which all of the combining entities are ultimately controlled by the same party or parties both
before and after the combination, and that control is not transitory. For a business combination
involving entities under common control, the party which, on the combination date, obtains
control of another entity participating in the combination is the acquiring party, while that other
entity participating in the combination is a party being acquired. Combination date is the date on
which the acquiring party effectively obtains control of the party being acquired.
Chongqing Changan Automobile Company Limited 2016 Annual Report
4. Business combination (continued)
Assets and liabilities that are obtained by the acquiring party in a business combination involving
entities under common control shall be measured at their carrying amounts at the combination date
as recorded by the party being acquired. The difference between the carrying amount of the net
assets obtained and the carrying amount of the consideration paid for the combination (or the
aggregate face value of shares issued as consideration) shall be adjusted to capital reserve. If the
capital reserve is not sufficient to absorb the difference, any excess shall be adjusted against
retained earnings.
Business combination involving entities not under common control
A business combination involving entities not under common control is a business combination in
which all of the combining entities are not ultimately controlled by the same party or parties both
before and after the combination. For a business combination involving entities not under common
control, the party that, on the acquisition date, obtains control of another entity participating in the
combination is the acquirer, while that other entity participating in the combination is the acquiree.
Acquisition date is the date on which the acquirer effectively obtains control of the acquiree.
The acquirer shall measure the acquiree’s identifiable assets, liabilities and contingent liabilities
acquired in the business combination at their fair values on the acquisition date.
Where the sum of the fair value of the consideration transferred (or the fair value of the issued
equity securities) and the fair value of the acquirer’s previously held equity interest in the acquiree
exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the
difference shall be recognized as goodwill and measured at cost less any accumulated impairment
losses. Where the sum of the fair value of the consideration transferred (or the fair value of the
issued equity securities) and the fair value of the acquirer’s previously held equity interest in the
acquiree is less than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets,
the difference shall be accounted for according to the following requirements: (i) the acquirer shall
reassess the measurement of the fair values of the acquiree’s identifiable assets, liabilities and
contingent liabilities and measurement of the fair value of the consideration transferred (or the fair
value of the issued equity securities) and the fair value of the acquirer’s previously held equity
interest in the acquiree; (ii) if after that reassessment, the sum of the fair value of the consideration
transferred (or the fair value of the issued equity securities) and the fair value of the acquirer’s
previously held equity interest in the acquiree is still less than the acquirer’s interest in the fair
values of the acquiree’s identifiable net assets, the acquirer shall recognize the remaining
difference immediately in the income statement for the current period.
Chongqing Changan Automobile Company Limited 2016 Annual Report
5. Consolidated financial statements
The scope of consolidation of consolidated financial statements is determined based on control,
and includes the financial statements of the Company and its subsidiaries for the year ended 31
December 2016. A subsidiary is an enterprise or entity that is controlled by the Group (including
an enterprise, seperable part of the investee and a structured entity controlled by the Company).
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
Joint venture arrangements are classified into joint operation and joint venture. Joint operation
refers to those joint venture arrangements, relevant assets and liabilities of which are enjoyed and
assumed by the joint venturers. Joint ventures refer to those joint 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 accounting treatment in accordance with relevant accounting standards for
business enterprises: assets it solely holds and its share of jointly-held assets based on its
percentage; liabilities it solely assumes and its share of jointly-assumed liabilities based on its
percentage; incomes from sale of output enjoyed by it from the joint operation; incomes from sale
of output from the joint operation based on its percentage; and separate costs and costs for the
joint operation based on its percentage.
7. Cash and cash equivalents
Cash comprises cash on hand and bank deposits which can be used for payment at any time; Cash
equivalents are short-term, highly liquid investments held by the Group, that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value.
8. Foreign currency translation
Chongqing Changan Automobile Company Limited 2016 Annual Report
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.
Chongqing Changan Automobile Company Limited 2016 Annual Report
9. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
Recognition and derecognition
The Group recognizes a financial asset or a financial liability, when the Group becomes a party to
the contractual provision of 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:
(1) the rights to receive cash flows from the asset have expired;
(2) the Group transferred the rights to receive cash flows from the asset, or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under
a “pass-through” arrangement; and either (a) has transferred substantially all the risks and
rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and
rewards of the asset, but has transferred control of the asset.
If the underlying obligation of a financial liability has been discharged or cancelled or has expired,
the financial liability is derecognized. If an existing financial liability is replaced by the same
creditor, with a new financial liability that has substantially different terms, or if the terms of an
existing financial liability are substantially revised, such replacement or revision is accounted for
as the derecognition of the original liability and the recognition of a new liability, and the
difference thus resulted is recognized in profit or loss for the current period.
When buy or sell financial instruments under a normal way, financial instruments are recognized
or derecognized according to the transaction date accounting. A normal way to buy or sell
financial instruments refers to, according to the contract terms, receive or deliver financial
instruments within the period as required by legal regulation or generally accepted guidelines.
Transaction date refers to the date when the Group committed to buy or sell financial instruments.
Classification and measurement of financial assets
Financial assets are, on initial recognition, classified into the following categories: financial assets
at fair value through profit or loss, held-to-maturity investments, loans and receivables,
available-for-sale financial assets, and the derivatives designated as effective hedging instrument.
A financial asset is recognized initially at fair value. In the case of financial assets at fair value
through profit or loss, relevant transaction costs are directly charged to the profit and loss of the
current period; transaction costs relating to financial assets of other categories are included in the
amount initially recognized.
Chongqing Changan Automobile Company Limited 2016 Annual Report
9. Financial instruments (continued)
The subsequent measurement of financial assets depends on their classification as follows:
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading and
those designated upon initial recognition as at fair value through profit or loss. A financial asset
held for trading is the financial asset that meets one of the following conditions: the financial asset
is acquired for the purpose of selling it in a short term; the financial asset is a part of a group of
identifiable financial instruments that are collectively managed, and there is objective evidence
indicating that the enterprise recently manages this group for the purpose of short-term profits; the
financial asset is a derivative, except for a derivative that is designated as effective hedging
instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by
delivery of an unquoted equity instrument (without a quoted price from an active market) whose
fair value cannot be reliably measured. For such kind of financial assets, fair values are adopted
for subsequent measurement. All the realized or unrealized gains or losses on these financial assets
are recognized in profit or loss for the current period. Dividend or interest income related to
financial assets at fair value through profit or loss is recognized in profit or loss for the current
period.
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable
payments and fixed maturity that an entity has the positive intention and ability to hold to
maturity. Such kind of financial assets are subsequently measured at amortized cost using the
effective interest method. Gains or losses arising from derecognition, impairment or amortization
are recognized in profit or loss for the current period.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market. Such kind of financial assets are subsequently measured at
amortized cost using the effective interest method. Gains or losses arising from derecognition,
impairment or amortization are recognized in profit or loss for the current period.
Available-for-sale financial assets
Available-for-sale financial assets are those non-derivative financial assets that are designated as
available for sale or are not classified as the above financial assets. After initial recognition,
available-for-sale financial assets are measured at fair value. The premium/discount is amortized
using effective interest method and recognized as interest income or expense. A gain or loss
arising from a change in the fair value of an available-for-sale financial asset is recognized in other
comprehensive income as a component of capital reserve, except for impairment losses and
foreign exchange gains and losses resulted from monetary financial assets, until the financial asset
is derecognized or determined to be impaired, at which time the accumulated gain or loss
previously recognized in capital reserve is removed from capital reserve and recognized in profit
or loss for the current period. Interests and dividends relating to an available-for-sale financial
asset are recognized in profit or loss for the current period.
Chongqing Changan Automobile Company Limited 2016 Annual Report
9. Financial instruments (continued)
The equity investment instruments, for which there is no quoted price in active market and whose
fair value cannot be reliably measured, shall be measured at cost.
Classification and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into the following categories:
financial liabilities at fair value through profit or loss, other financial liabilities, and the derivatives
designated as effective hedging instrument. For financial liabilities at fair value through profit or
loss, relevant transaction costs are directly recognized in profit or loss for the current period, and
transaction costs relating to other financial liabilities are included in the initial recognition
amounts.
The subsequent measurement of financial liabilities depends on their classification as follows:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading
and those designated as at fair value through profit or loss. A financial liability held for trading is
the financial liability that meets one of the following conditions: the financial liability is assumed
for the purpose of repurchasing it in a short term; the financial liability is a part of a group of
identifiable financial instruments that are collectively managed, and there is objective evidence
indicating that the enterprise recently manages this group for the purpose of short-term profits; the
financial liability is a derivative, except for a derivative that is designated and effective hedging
instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by
delivery of an unquoted equity instrument (without a quoted price form an active market) whose
fair value cannot be reliably measured. For such kind of financial liabilities, fair values are
adopted for subsequent measurement. All the realized or unrealized gains or losses on these
financial liabilities are recognized in profit or loss for the current period.
Other financial liabilities
After initial recognition, these financial liabilities are measured at amortized cost using the
effective interest method.
Offsetting of financial instrumentsts
Financial assets and financial liabilities are offset and the net amount is reported in the balance
sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an
intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.
Chongqing Changan Automobile Company Limited 2016 Annual Report
9. Financial instruments (continued)
Impairment of financial assets
The Group assesses the carrying amount of a financial asset, at the balance sheet date. If there is
objective evidence that the financial asset is impaired, the Group makes provision for the
impairment loss. Objective evidence that a financial asset is impaired is evidence arising from one
or more events that occurred after the initial recognition of the asset and that event has an impact
on the estimated future cash flows of the financial asset which can be reliably estimated.
Financial assets carried at amortized cost
When the financial assets carried at amortized cost are impaired, the carrying amount of the
financial asset shall be reduced to the present value of the estimated future cash flow (excluding
future credit losses that have not been incurred). The amount of reduction is recognized as an
impairment loss in the income statement. Present value of estimated future cash flow is discounted
at the financial asset’s original effective interest rate and includes the value of any related
collateral.
If a financial asset is individually significant, the Group assesses the asset individually for
impairment, and recognizes the amount of impairment in the income statement if there is objective
evidence of impairment. For a financial asset that is not individually significant, the Group can
include the asset in a group of financial assets with similar credit risk characteristics and
collectively assess them for impairment. For financial assets that are not impaired upon individual
tests (including financial assets that are individually significant or insignificant), impairment tests
should be conducted on them again by including them in the group of financial assets. Assets for
which an impairment loss is individually recognized will not be included in a collective
assessment of impairment.
If, subsequent to the recognition of an impairment loss on a financial asset carried at amortized
cost, there is objective evidence of a recovery in value of the financial asset which can be related
objectively to an event occurring after the impairment was recognized, the previously recognized
impairment loss is reversed and recognized in the income statement. However, the reversal shall
not result in a carrying amount of the financial asset that exceeds what the amortized cost would
have been had the impairment not been recognized at the date the impairment is reversed.
Available-for-sale financial assets
When there is objective evidence that the asset is impaired, the cumulative loss from declines in
fair value that had been recognized directly in capital reserve are removed from equity and
recognized in the income statement. The amount of the cumulative loss that is removed from
capital reserves and recognized in the income statement (net of any principal repayment and
amortization) and current fair value, less any impairment loss on that financial asset previously
recognized in the income statement.
Chongqing Changan Automobile Company Limited 2016 Annual Report
9. Financial instruments (continued)
Impairment of financial assets (continued)
Available for sale financial assets (continued)
In the case of equity investments classified as available for sale, objective evidence would include
a significant or prolonged decline in the fair value of an investment below its cost. The
determination of what is “significant” or ''prolonged” requires judgement. “Significant” is
evaluated against the original cost of the investment and “prolonged” against the period in which
the fair value has been below its original cost. Impairment losses on equity instruments classified
as available for sale are not reversed through the income statement. Increases in their fair value
after impairment are recognised directly in other comprehensive income.
The determination of what is “significant” or “prolonged” requires judgement. In making this
judgement, the Group evaluates, among other factors, the duration or extent to which the fair value
of an investment is less than its cost.
Financial assets carried at cost
If objective evidence shows that the financial assets carried at cost are impaired, the difference
between the present value discounted at the prevailing rate of return of similar financial assets and
the book value of the financial asset are provided as a provision and recognized in the current
income statement. The impairment loss recognized cannot be reversed.
Transfer of financial assets
If the Group transfers substantially all the risks and rewards of ownership of the financial asset,
the Group derecognizes the financial asset; and if the Group retains substantially all the risks and
rewards of the financial asset, the Group does not derecognize the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the
financial asset, the Group determines whether it has retained control of the financial asset. In this
case: (i) if the Group has not retained control, it derecognizes the financial asset and recognize
separately as assets or liabilities any rights and obligations created not retained in the transfer; (ii)
if the Group has retained control, it continues to recognize the financial asset to the extent of its
continuing involvement in the transferred financial asset and recognizes an associated liability.
Chongqing Changan Automobile Company Limited 2016 Annual Report
10. Accounts receivable
(1) Accounts receivable which is individually significant and analyzed individually for
provision：
Accounts receivable balance greater than RMB15
Criterion for individually significant items
million due from non-related parties
A provision of the difference between recoverable
Method for provision amount and book value is recognized based on
individually analysis
(2) Accounts receivable analyzed by credit risk charactristics group for provision：
Criterion for group
Accounts receivable due from non-related parties other than individually
Group 1
significant items or insignificatntly 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
A provision of the difference between recoverable amount and book value is
Group 2
recognized based on individually analysis.
Group 1, the provision analyzed according to aging analysis:
Aging Accounts receivable Other receivables
Provision percentage (%) Provision percentage (%)
Within 1 year
Within 6 months 0
6 to 12 months 5
1 to 2 years 10
2 to 3 years 30
3 to 4 years 50
4 to 5 years 80
Above 5 years 100
(3) Accounts receivable which is individually insignificant but analyzed individually for
provision
There is objective evidence that the accounts receivable due
Criterion for individually
from non-related parties is impaired and the future recoverable
analysis for provision
possibility is little.
A provision of the difference between recoverable amount and
Method for provision
book value is recognized individually.
Chongqing Changan Automobile Company Limited 2016 Annual Report
11. Inventories
Inventory includes raw materials, goods in transit, work in progress, finished goods, consigned
processing materials, low-value consumables and spare parts.
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
Long-term equity investments include investments in subsidiaries, joint ventures and associates.
The long-term investments are initially recorded at costs on acquisition. Long-term investments
acquired from business combination under common control shall be initially measured at the
carrying value of the held interest of the party being acquired; The difference between the initial
meassued amounts and the book value of consideration, adjust the capital reserves (if the capital
reserve is insufficient to be offset, retained earnings should be adjusted); Long-term investments
acquired from business combination not under common control shall be initially measured at the
cost (or, the sum of the cost and the carrying value of the previously held equity interest in the
acquire for the business combination achieved by stages), which include the fair value of the
consideration paid, the liabilities beard and the fair value of issued equity instrument; the other
comprehensive income produced from the investment before the acquisition should be transferred
into the current year investment income on disposal.
Chongqing Changan Automobile Company Limited 2016 Annual Report
12. Long-term equity investments (continued)
Long-term investments acquired not from business combination are initially measured at 1)the
consideration together with the cost necessary incurred; 2) the fair value of the equity instruments;
and 3) the consideration agreed in the investment agreement by the investors, otherwise the agreed
consideration were not fair.
The Company adopted cost method to account for long-term investments in the subsidiaries in the
separate financial statements of the Company. Control is the power to govern the financial and
operating policies of an entity so as to obtain benefits from its activities.
Under cost method, the long-term equity investment is valued at the cost of the initial investment.
The cost of long-term equity investment should be adjusted in case of additional investment or
disinvestments. When cash dividends or profits are declared by the invested enterprise is
recognized as investment income in current period.
The equity method is applied to account for long-term equity investments, when the Group has
jointly control, or significant influence on the investee enterprise. Joint control is the contractually
agreed sharing of control over an economic activity, and exists only when the strategic financial
and operating decisions relating to the activity require the unanimous consent of the parties
sharing control (the venturers). Significant influence is the power to participate in the financial and
operating policy decisions of an economic activity but is not control or joint control over those
policies.
Under equity method, when the initial investment cost of a long-term equity investment exceeds
the investing enterprise’s interest in the fair values of the investee’s identifiable net assets at the
acquisition date, the difference is accounted for as an initial cost. As to the initial investment cost
is less than the investing enterprise’s interest in the fair values of the investee’s identifiable net
assets at the acquisition date, the difference shall be charged to the income statement for the
current period, and the cost of the long-term equity investment shall be adjusted accordingly.
Chongqing Changan Automobile Company Limited 2016 Annual Report
12. Long-term equity investments (continued)
Under equity method, the Group recognizes its share of post-acquisition equity in the investee
enterprise for the current period as a gain or loss on investment, and also increases or decreases
the carrying amount of the investment. When recognizing its share in the net profit or loss of the
investee entities, the Group should, based on the fair values of the identifiable assets of the
investee entity when the investment is acquired, in accordance with the Group’s accounting
policies and periods, after eliminating the portion of the profits or losses, arising from internal
transactions with joint ventures and associates, attributable to the investing entity according to the
share ratio (but losses arising from internal transactions that belong to losses on the impairment of
assets, should be recognized in full), recognize the net profit of the investee entity after making
appropriate adjustments. The book value of the investment is reduced to the extent that the
Group’s share of the profit or cash dividend declared to be distributed by the investee enterprise.
However, the share of net loss is only recognized to the extent that the book value of the
investment is reduced to zero, except to the extent that the Group has incurred obligations to
assume additional losses. The Group shall adjust the carrying amount of the long-term equity
investment for other changes in owners’ equity of the investee enterprise (other than net profits or
losses), and include the corresponding adjustments in equity, which should be realized through
profit or loss in subsequent settlement of the respective long-term investment.
On settlement of a long-term equity investment, the difference between the proceeds actually
received and the carrying amount shall be recognized in the income statement for the current
period. As to other comprehensive income recognized based on measurement of the original
equity investment by employing the equity method, accounting treatment shall be made on the
same basis as would be required if the invested entity had directly disposed of the assets or
liabilities related thereto when measurement by employing the equity method is terminated. As to
any change in owners' equity of the invested entity other than net profit or loss, other
comprehensive income and profit distribution, the investing party shall be transferred to the
income statement for the current period. If the remaining equities still be measured under the
equity method, accumulative change previously recorded in other comprehensive income shall be
transferred to current profit or loss, in measurement on the same basis as the invested entity had
directly disposed of the assets or liabilities related thereto. The income or loss recorded in the
equity directly should been transferred to the current income statement on settlement of the equity
investment on the disposal proportion.
Chongqing Changan Automobile Company Limited 2016 Annual Report
13. Investment property
Investment property are properties held to earn rentals or for capital appreciation, or both,
including rented land use right, land use right 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
A fixed asset probably shall be recognized only when the economic benefits associated with the
asset will flow to the Group and the cost of the asset can be measured reliably. Subsequent
expenditure incurred for a fixed asset that meet the recognition criteria shall be included in the
cost of the fixed asset, and the book value of the component of the fixed asset that is replaced shall
be derecognized. Otherwise, such expenditure shall be recognized in the income statement in the
period during which they are incurred.
Fixed assets are initially measured at actual cost on acquisition. The cost of a purchased fixed
asset comprises the purchase price, relevant taxes and any directly attributable expenditure for
bringing the asset to working condition for its intended use, such as 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 rates for each category of fixed assets are as follows:
Yearly deprecation
Category Deprecation period Residual rate (%)
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 12 years 3% 8.08%-24.25%
Others 3 to 21 years 3% 4.62%-32.33%
Note: the moulds in machinery should be depreciated in units-of-production method.
The Group reviews the useful life and estimated net residual value of a fixed asset and the
depreciation method applied at least at the end of each year and makes adjustments if necessary.
Chongqing Changan Automobile Company Limited 2016 Annual Report
15. Construction in progress
The cost of construction in progress is determined according to the actual expenditure for the
construction, including all necessary construction expenditure incurred during the construction
period, borrowing costs that should be capitalized before the construction reaches 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
Borrowing costs are interest and other costs incurred by the Group in connection with the
borrowing of the funds. Borrowing costs include interest, amortization of discounts or premiums
related to borrowings, ancillary costs incurred in connection with the arrangement 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 are 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:
Chongqing Changan Automobile Company Limited 2016 Annual Report
16. Borrowing costs (continued)
1) where funds are borrowed for a specific-purpose, the amount of interest to be capitalized is
the actual interest expense incurred on that borrowing for the period less any bank interest
earned form depositing the borrowed funds before being used on the asset or any
investment income on the temporary investment of those funds;
2) where funds are borrowed for a general-purpose, the amount of interest to be capitalized on
such borrowings is determined by applying a weighted average interest rate to the weighted
average of the excess amounts of cumulative expenditure on the asset over and above the
amounts of specific-purpose borrowings.
During the construction or manufacture of assets that are qualified for capitalization, if abnormal
discontinuance, other than procedures necessary for their reaching the expected useful conditions,
happens, and the duration of the discontinuance is over three months, the capitalization of the
borrowing costs is suspended. Borrowing costs incurred during the discontinuance are recognized
as expense and charged to the income statement of the current period, till the construction or
manufacture of the assets resumes.
17. Intangible assets
An intangible asset probably shall be recognized only when the economic benefits associated with
the asset will flow to the Group and the cost of the asset can be measured reliably. Intangible
assets are initially measured at cost. The cost of intangible assets acquired in a business
combination is the fair value as at the date of acquisition, if the fair value can be reliably
measured.
The useful life of the intangible assets shall be assessed according to the estimated beneficial
period expected to generate economic benefits. An intangible asset shall be regarded as having an
indefinite useful life when there is no foreseeable limit to the period over which the asset is
expected to generate economic benefits for the Group.
The useful lives of the intangible assets are as follow:
Useful life
Land use right 22 to 50 years
Software 2 years
Trademark 10 years
Non-patent technology 5 years
Chongqing Changan Automobile Company Limited 2016 Annual Report
17. Intangible assets (continued)
Land use rights that are purchased or acquired through the payment of land use fees are accounted
for as intangible assets. With respect to self-developed properties, the corresponding land use right
and buildings should be recorded as intangible and fixed assets separately. As to the purchased
properties, if the reasonable allocation of outlays cannot be made between land and buildings, all
assets purchased will be recorded as fixed assets. The cost of a finite useful life intangible asset is
amortized using the straight-line method during the estimated useful life. For an intangible asset
with a finite useful life, the Group reviews the estimated useful life and amortization method at
least at the end of each year and adjusts if necessary.
The Group should test an intangible asset with an indefinite useful life for impairment by
comparing its recoverable amount with its carrying amount annually, whenever there is an
indication that the intangible asset may be impaired. An intangible asset with an indefinite useful
life shall not be amortized.
The useful life of an intangible asset that is not being amortised shall be reviewed each period to
determine whether events and circumstances continue to support an indefinite useful life
assessment for that asset. If there are indicators that the intangible asset has finite useful life, the
accounting treatment would be in accordance with the intangible asset with finite useful life.
18. Research and development expenditures
The Group classified the internal research and development expenditures as follows: research
expenditures and development cost.
The expenditures in research stage are charged to the current income on occurrence.
The expenditures in development stage are capitalized that should meet all the conditions of (a) it
is technically feasible to finish intangible assets for use or sale; (b) it is intended to finish and use
or sell the intangible assets; (c) the usefulness of methods for intangible assets to generate
economic benefits shall be proved, including being able to prove that there is a potential market
for the products manufactured by applying the intangible assets or there is a potential market for
the intangible assets itself or the intangible assets will be used internally; (d) it is able to finish the
development of the intangible assets, and able to use or sell the intangible assets, with the support
of sufficient technologies, financial resources and other resources; and (e) the development
expenditures of the intangible assets can be reliably measured. Expenses incurred that don’t meet
the above requirements unanimously should be expensed in the income statement of the reporting
period.
The Group discriminates between research and development stage with the condition that the
project research has been determined, in which the relevant research complete all the
fractionalization of products measurements and final product scheme under final approval of
management. The expenditures incurred before project-determination stage is charged to the
current income, otherwise it is recorded as development cost.
Chongqing Changan Automobile Company Limited 2016 Annual Report
19. Long-term deferred expenses
The long-term deferred expenses represent the payment for the improvement on buildings and
other expenses, which have been paid and should be deferred in the following years. Long-term
deferred expenses are amortized on the straight-line basis over the expected beneficial period and
are presented at actual expenditure net of accumulated amortization.
20. Contingent liabilities
Except contingent liability recognized in a business combination, the Group recognizes an
contingent liability when the obligation arising from a contingency meets the following
conditions:
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.
Chongqing Changan Automobile Company Limited 2016 Annual Report
21. Share-based payments
The share-based payments shall consist of equity-settled share-based payments and cash-settled
share-based payments. The term \"equity-settled share-based payment\" refers to a transaction in
which an enterprise grants shares or other equity instruments as a consideration in return for
services.
The equity-settled share-based payment in return for employee services shall be measured at the
fair value of the equity instruments granted to the employees. As to an equity-settled share-based
payment in return for services of employees, if the right may be exercised immediately after the
grant, the fair value of the equity instruments shall, on the date of the grant, be included in the
relevant cost or expense and the capital reserves shall be increased accordingly. As to a
equity-settled share-based payment in return for employee services, if the right cannot be
exercised until the vesting period comes to an end or until the prescribed performance conditions
are met, then on each balance sheet date within the vesting period, the services obtained in the
current period shall, based on the best estimate of the number of vested equity instruments, be
included in the relevant costs or expenses and the capital reserves at the fair value of the equities
instruments on the date of the grant. The fair value is determined using Black-Scholes model
(Note 11).
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.
Chongqing Changan Automobile Company Limited 2016 Annual Report
22. Revenue
Revenue is recognized only when an inflow of economic benefits is probable, the amount of
which can be reliably measured, and all of the following conditions are qualified.
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
When the outcome of a transaction involving the rendering of services can be estimated reliably at
the balance sheet date, revenue associated with the transaction is recognized using the percentage
of completion method, or otherwise, the revenue is recognized to the extent of costs incurred that
are expected to be recoverable. The outcome of a transaction involving rendering of services can
be estimated reliably when all of the following conditions are satisfied: the amount of revenue can
be measured reliably; it is probable that 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
completion of a transaction involving the rendering of services by using the proportion of services
performed to date to the total services to be performed. The total amount of revenue earned from
rendering service are determined based on the amount received or receivable as stipulated 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 interest rate.
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.
Chongqing Changan Automobile Company Limited 2016 Annual Report
23. Government grants
A government grant is recognized only when there is reasonable assurance that the entity will
comply with any conditions attached to the grant and the grant will be received. Monetary grants
are accounted for at received or receivable amount. Non-monetary grants are accounted for at fair
value. If there is no reliable fair value available, the grants are accounted for at 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 other government grant shall be recognized as the government grant related to gain. A grant
relating to income, which as compensation for future costs, is recognized as deferred income
initially, and as income when the related cost incurs. The grant as compensation for costs already
incurred should be recognized as income for the current period. A grant relating to assets is
recognized as deferred income initially, and as income evenly among the useful life of the related
assets. The grant accounted for at nominal amount is recognized as income for the current period.
24. Leases
A finance lease is a lease that transfers in substance all the risks and rewards incident to ownership
of an asset. An operating lease is a lease other than a finance lease.
The Group recording the operating lease as a lessee
Lease payments under an operating lease are recognized by a lessee on a straight-line basis over
the lease term, and either included in the cost of another related asset or charged to the income
statement for the current period. The contingent rents shall be recorded in the profits and losses of
the period in which they actually arise.
The Group recording the operating lease as a lessor
Rental income from operating leases is recognized by the lesser in the income statement on a
straight-line basis over the lease term. The contingent rents shall be recorded in the profits and
losses of the period in which they actually arise.
25. Employee benefits
Employee benefits refer to all kinds of remunerations or compensation made by enterprises to
their employees in exchange for services provided by the employees or termination of labor
relation. Employee compensation includes short-term compensation and post-employment
benefits. The benefits offered by enterprises to the spouse, children, the dependants of the
employee, the family member of deceased employee and other beneficiaries are also employee
compensation.
Chongqing Changan Automobile Company Limited 2016 Annual Report
25. Employee benefits (contined)
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 actuarial valuation method.
Remeasurements arising from defined benefit pension plans are recognised immediately in the
consolidated statement of financial position with a corresponding debit or credit to retained profits
through other comprehensive income in the period in which they occur. Remeasurements are not
reclassified to profit or loss in subsequent periods.
Past service costs are recognised in profit or loss at the earlier of: the date of the plan amendment
or curtailment; and the date that the Group recognises restructuring-related costs.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.
The Group recognises the following changes in the net defined benefit obligation under
administrative expenses in the consolidated statement of profit or loss by function: service costs
comprising current service costs, past-service costs, gains and losses on curtailments and
non-routine settlements;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 the Group recognises restructuring costs involving the payment
of termination benefits.
Chongqing Changan Automobile Company Limited 2016 Annual Report
26. Income taxes
Income tax comprises current and deferred tax. Income tax is recognized as an income or an
expense and include in the income statement for the current period, except to the extent that the
tax arises from a business combination or if it relates to a transaction or event which is recognized
directly in equity.
Current income tax liabilities or assets for the current and prior periods, are measured at the
amount expected to be paid (or recovered) according to the requirements of tax laws.
For temporary differences at the balance sheet date between the tax bases of assets and liabilities
and their carrying amounts, and temporary differences between the carrying amounts and the tax
bases of items, the tax bases of which can be determined for tax purposes, 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 combination and 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 is probable 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, to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences, and the carry forward 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 accounting profit 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 in the foreseeable future
and taxable profit will be available against which the temporary differences can be utilized.
Chongqing Changan Automobile Company Limited 2016 Annual Report
26. Income taxes (continued)
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 the asset is realized or the liability is settled, according to the
requirements of tax laws. The measurement of deferred tax assets and deferred tax liabilities
reflects the tax consequences that would follow from the manner in which the Group expects at
the balance sheet date, to recover the assets or settle the liabilities.
At the balance sheet date, the Group reviews the book value of deferred tax assets. If it is probable
that sufficient taxable 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
27. Impairment of assets
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 exists that an asset may be impaired, the Group estimates the
recoverable amount of the asset and performs impairment tests. Goodwill arising from a business
combination and an intangible asset with an indefinite useful life are tested for impairment at least
at the end of every year, irrespective of whether there is any indication that the asset may be
impaired. An intangible asset which is not ready for 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 flow expected to be derived from the asset. The Group estimates the
recoverable amount on an individual basis. If it is not possible to estimate the recoverable amount
of the individual asset, the Group determines the recoverable amount of the asset group to which
the asset belongs. Identification of an asset group is based on whether major cash flows generated
by the asset group are independent of the cash flows from other assets or asset groups.
When the recoverable amount of an asset or asset group is less than its carrying amount, the
carrying amount is reduced to the recoverable amount. The impairment of asset is provided for and
the impairment loss is recognized in the income statement for the current period.
For the purpose of impairment testing, the carrying amount of goodwill acquired in a business
combination is allocated, on a reasonable basis, to related asset groups; if it is impossible to
allocate to the related asset groups, it is allocated to each of the related sets of asset groups. Each
of the related asset groups or related sets of asset groups is a group or set of asset group that is able
to benefit from the synergies of the business combination and shall not be larger than a reportable
segment determined by the Group.
Chongqing Changan Automobile Company Limited 2016 Annual Report
27. Impairment of assets (continued)
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.
28. Profit distribution
The cash dividend of the Group is recognized as liabilities after the approval of general meeting of
stockholders.
29. Safety fund
The safety fund extracted by the Group shall be recognized as the cost of the related products or
income statement, while be recognized as special reserve. When using safety fund, it shall be
distinguished whether it will form fixed assets or not. The expenditure shall write down the special
reserve; the capital expenditure shall be recognized as fixed assets when meet the expected
conditions for use, and write down the special reserve while recognizing accumulated depreciation
with the same amount.
30. Fair value measurement
The Group measures its equity investments at fair value at the end of each reporting period. Fair
value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is
based on the presumption that the transaction to sell the asset or transfer the liability takes place
either in the principal market for the asset or liability, or in the absence of a principal market, in
the most advantageous market for the asset or liability. The principal or the most advantageous
market must be accessible by the Group. The fair value of an asset or a liability is measured
using the assumptions that market participants would use when pricing the asset or liability,
assuming that market participants act in their economic best interest.
Chongqing Changan Automobile Company Limited 2016 Annual Report
30. Fair value measurement (continued)
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
The preparation of financial statements requires management to make judgments, estimates and
assumptions that affect the amounts and disclosures of revenues, expenses, assets and liabilities,
and the disclosure of contingent liabilities, at the balance sheet date. However, uncertainty about
these assumptions and estimates could result in outcomes that could require a material adjustment
to the carrying amounts of the assets or liabilities affected in the future.
Judgments
In the process of applying the Group’s accounting policies, management has made the following
judgments which have 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.
Chongqing Changan Automobile Company Limited 2016 Annual Report
31. Significant accounting judgments and estimates (continued)
Uncertainty of accounting estimates
The crucial assumptions of significant accounting estimates in future and other crucial sources of
estimated uncertainty, which may result in the significant adjustments to the book value of the
subsequent accounting period, are as the following:
Impairment of available-for-sale
The Group classifies certain assets as available for sale and recognises movements of their fair
values in equity. When the fair value declines, management makes assumptions about the decline
in value to determine whether there is an impairment that should be recognized in the income
statement
Impairment of non-current assets other than financial assets (goodwill excluded)
The Group assesses at each reporting date whether there is an indication that non-current assets
other than financial assets may be impaired. If there is any sign of possible assets impairment, the
assets concerned should be subject to impairment test. When the carrying amount of an asset or
the relevant assets group exceeds its recoverable amount which is the higher one of the net amount
of the fair value of the asset minus the disposal expenses and the present value of the expected
future cash flow of the asset, the asset is considered impaired. The fair value minus the disposal
expenses is determined by reference to the recent market transactions price or observed market
price less any directly attributable expenditure for disposing. When making an estimate of the
present value of the future cash flow of an asset, the Group should estimate the future cash flows
of the asset or the relevant assets group, with the appropriate discount rate selected to reflect the
present value of the future cash flows.
Bad debt provisions
Provisions are made under the allowance method. For each individually significant receivable, the
impairment test should be conducted individually. Where there is evidence that indicates
impairment, the loss should be recognized with the respective provision accrued, equaling to the
difference between the present value of the future cash flows and the book value of receivables.
For other receivables concerned, management should accrue the general provisions, along with the
receivables individually tested while no impairment incurred, taking in account the collectability.
Inventory impairment based on the net realizable value
According to accounting policy, inventories shall be measured at the lower of cost and the net
realizable value. Provision for inventories is recognized in the income statement when the cost is
higher than the net realizable value and when the inventories are obsolete and slow-moving. The
Group will reassess whether a single inventory is obsolete, slow-moving or whether the net
realizable value is lower than the inventories’ cost at end of each year.
Development expenditures
When determining the capitalization amount, management should make assumptions such as the
expected cash flows of the assets related, the applicable discount rate and expected benefit period.
Chongqing Changan Automobile Company Limited 2016 Annual Report
31. Significant accounting judgments and estimates (continued)
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 influnces
estimation of related warranty claim incluse: 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 volumn and estimated compensatory unit warranty cost, deduction
multiagreed compensation from suppliers. As at balance sheet day, the Groupt launchs
retrospective analysis on warranty carrying amount in consideration of acutral warranty payment
during relative warranty period, and recent trends of producet 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
Changes in accounting policies
In 2016, the Group has renamed the “Business taxes and surcharges” to “Taxes and surcharges” in
the income statement in accordance with the circular of Accounting Treatment for Value-added
Tax (“VAT”) (Caikuai [2016] No.22). Property Tax, land use tax, vehicle and vessel usage tax and
stamp tax, incurred after 1 May 2016, were recognized in “Taxes and surcharges” instead of
“Administrative expenses”, while those taxes and surcharges (except the tax related to investment
real eastate which had been recorded in “business taxes and surcharges”) incurred before 30 April
2016 were still recognized in “Administrative expenses”. As at 31 December 2016, debit balances
of the VAT in “Taxes payable” such as ”value-added tax payable”, ”unpaid VAT”,” tax payable”,”
pending deduct VAT on purchase”, ”pending certified VAT on purchase”,” excess VAT paid” were
reclassified to “Other Current Assets” while no retrospective reclassification adjustment should be
made as at 31 December 2015.
Chongqing Changan Automobile Company Limited 2016 Annual Report
32. Changes in accounting policies and estimates (continued)
Changes in accounting policies (continued)
As a result, the “Taxes and Surcharges”, “Administrative Expenses”, “Taxes Payable” and “Other
Current Assets” would be different as at 31 December 2016 and 2015, and for the year ended, but
there was no substantial impact on net profit and equity for both consolidated and company
financial statement under new requirement.
IV TAXES
1. The major categories of taxes and surcharges
Categories of taxes and surcharges Basis of tax Tax rate
Levy on the taxable sales and rendering of 5%, 6% or
Value added tax (“VAT”)
services, deducted the deductible input VAT. 17%
Consumption tax Taxable sales 1%,3% or 5%
Business tax Taxable sales (since 1 May 2016, business
5%
tax had been replaced by VAT)
City maintenance and construction tax The turnover taxes paid 5% or 7%
Educational surcharge The turnover taxes paid 3%
Local educational surcharge The turnover taxes paid 2%
Corporate income tax Taxable income 15% or 25%
2. Tax benefits
In accordance to Circular for Further Implementation of Tax Incentives In the Development of
Western Regions (Cai Shui [2011] No. 58) collectively issued by the ministry of Finance, the
Customs General Administration and the National Taxation Bureau of PRC, from 1 January 2011
to 31 December 2020, enterprises located in the Western Region and engaged in encouraged
business would be entitled to a preferential CIT rate of 15%.. For the year ended 2016, the
Company, Changan Special Sales and Chongqing Changan Automobile Supporting are qualified
to the requirement and acquired permission of the preferential tax rate of 15% from Chongqing
Jiangbei National Tax Bureau (refer to Jiang Fa Gai Ti[2015] No. 135).
As at 4 November 2011, in accordance to Circular of the Administrative Measures for the
Certification of New and High Technology Enterprises (Guo Ke Fa Huo [2008] No. 172) and
Circular of the Working Guidance on the Recognition of Hi-tech Enterprises (Guo Ke Fa Huo
[2008] No. 362), and ratification of Hebei High-Tech Enterprise Recognition Office (Ji Gao Ban
[2014] No. 7), the subsidiaries, Hebei Baoding Changan Bus Co., Ltd. and Hebei Changan
Automobile Co., Ltd. were recognized as Hi-tech enterprises and subjected to the preferential tax
rate of 15%.
Chongqing Changan Automobile Company Limited 2016 Annual Report
V NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
1. Cash
Item 2016
Cash 29,559.40 43,967.74
Cash at bank 22,993,402,507.65 17,725,877,373.48
Other cash 1,789,072,485.39 309,188,332.99
Total 24,782,504,552.44 18,035,109,674.21
As at 31 December 2016, the book value of restricted cash and cash equivalents is
RMB1,789,072,485.39 (As at 31 December 2015: RMB 309,188,332.99), which was mainly
restricted for the issuance of acceptance bill.
As at 31 December 2016, the cash at bank oversea is equivalent to RMB151,614,280.74 (As at 31
December 2015: RMB115,606,099.08).
Cash at banks earns interest at floating rates based on daily bank deposit rates. Notice deposits are
made for periods of 7 days, and short term time deposits are made for periods of 3 months to 12
months, depending on the cash requirements of the Group, and earn interest at respective deposit
rates.
2. Notes recievable
(1) Classification of notes receivable
Type 2016
Commercial acceptance bill 8,681,506,152.50 6,532,799,490.50
Bank acceptance bill 20,321,033,108.76 16,150,296,720.96
Total 29,002,539,261.26 22,683,096,211.46
(2) Pledged notes receivable
Type 2016
Bank acceptance bill 1,029,541,142.00 140,256,135.43
As at 31 December 2016 and 2015, notes receivable with above carrying amount were pledged to
issue notes payable.
(3) Endorsed or discounted but unexpired notes receivable as at the end of reporting period are
as follow:
Type 2016
Derecognition Un-derecognition Derecognition Un-derecognition
Commercial
68,903,990.00 - 45,000,000.00 -
acceptance bill
Bank acceptance
1,689,454,116.09 - 2,103,475,070.03 -
bill
Total 1,758,358,106.09 - 2,148,475,070.03 -
Chongqing Changan Automobile Company Limited 2016 Annual Report
2. Notes recievable (continued)
(4) As at 31 December 2016, there are no notes transferred to accounts receivable due to the
non-acceptance. (As at 31 December 2015: Nil)
3. Accounts receivable
(1) Aging analysis of the accounts receivable as at 31 December 2016 is as follows:
Aging 2016
Within 1 year 1,356,947,071.58 816,233,320.25
1 to 2 years 117,208,110.44 57,127,535.84
2 to 3 years 22,550,444.94 8,902,022.00
Over 3 years 33,077,540.86 58,075,538.38
Total 1,529,783,167.82 940,338,416.47
Provision (30,946,126.28) (64,858,859.92)
1,498,837,041.54 875,479,556.55
The movements in provision for impairment of accounts receivable are as follows:
Beginning Deduction
Addition Ending balance
balance Reversal Write-off
2016 64,858,859.92 4,073,516.50 1,163,419.90 36,822,830.24 30,946,126.28
2015 66,921,771.31 4,235,654.20 6,053,510.23 245,055.36 64,858,859.92
(2) Analysis of accounts receivable by category as at 31 December 2016 is as follows:
2016
Item Balance Provision Balance Provision
Amount % Amount % Amount % Amount %
Individually
significant items
and analyzed 807,264,568.09 52.77 - - 106,141,701.22 11.29 - -
individually for
provision
Accounts receivable analyzed as groups for provision
Group 1.
Accounts
receivable
analyzed for 539,225,767.44 35.24 23,064,841.85 4.28 655,787,930.16 69.74 54,821,759.22 8.36
provision
according to
aging analysis
Group 2.
Accounts
receivable from 175,411,547.86 11.47 - - 168,371,684.39 17.90 - -
related parties
Group subtotal 714,637,315.30 46.71 23,064,841.85 3.23 824,159,614.55 87.64 54,821,759.22 6.65
Individually
insignificant
items but
analyzed 7,881,284.43 0.52 7,881,284.43 100 10,037,100.70 1.07 10,037,100.70 100
individually for
provision
Total 1,529,783,167.82 100 30,946,126.28 2.02 940,338,416.47 100 64,858,859.92 6.90
Chongqing Changan Automobile Company Limited 2016 Annual Report
3. Accounts receivable (continued)
In groups, accounts receivable were analyzed for provision by aging:
2016
Aging Balance Provision Balance Provision
Amount % Amount %
Within 6
489,006,288.37 90.69 - 535,515,703.25 81.66 -
months
6 to 12
5,598,962.70 1.04 279,948.14 20,626,137.08 3.15 1,031,306.85
months
Within 1
year 494,605,251.07 91.73 279,948.14 556,141,840.33 84.81 1,031,306.85
subtotal
1 to 2
5,365,243.93 0.99 536,524.39 43,659,191.63 6.65 4,365,919.16
years
2 to 3
22,497,896.67 4.17 6,749,369.00 5,521,200.00 0.84 1,656,360.01
years
3 to 4
1,319,200.00 0.24 659,600.00 4,752,350.00 0.72 2,376,175.00
years
4 to 5
2,993,877.26 0.56 2,395,101.81 1,606,750.00 0.25 1,285,400.00
years
Over 5
12,444,298.51 2.31 12,444,298.51 44,106,598.20 6.73 44,106,598.20
years
Total 539,225,767.44 100 23,064,841.85 655,787,930.16 100 54,821,759.22
In groups, accounts receivable were analyzed for provision by other methods:
2016
Group
Balance Provision Balance Provision
Accounts
receivable
from related
175,411,547.86 - 168,371,684.39 -
parities
As at 31 December 2016 and 2015, there are no individually significant items analyzed
individually for provision.
(3) In 2016, provision for accounts receivable amounted to RMB 4,073,516.50 has been
accrued (2015: RMB4,235,654.20). Provision for accounts receivable amounted to
1,163,419.90 has been reversed (2015: RMB6,053,510.23).
(4) As at 31 December 2016, Provision for accounts receivable amounted to RMB
36,822,830.24 has been write-off. (2015: RMB245, 055.36).
(5) As at 31 December 2016, acconts receivable from Top 5 clients amounted to RMB
544,518,789.11, accounted for 35.59% of the total accounts receivable (2015：RMB
226,567,170.13，accounted for 24.09% of the total amount).
(6) There is no accounts receivable derecognized due to transfer of financial assets during 2016
(2015: Nil).
4. Prepayments
(1) Aging analysis of the prepayments is as follows:
Aging 2016
Chongqing Changan Automobile Company Limited 2016 Annual Report
Amount Persentage (%) Amount Persentage (%)
Within 1 year 1,045,305,366.57 98.54 845,113,206.61 99.19
1 to 2 years 14,675,385.03 1.38 5,057,781.43 0.59
2 to 3 years - - 1,215,374.60 0.14
Over 3 years 829,141.15 0.08 685,431.90 0.08
Total 1,060,809,892.75 100.00 852,071,794.54 100.00
(2) As at 31 December 2016, prepayments to Top 5 suppliers amounted to RMB
867,935,898.74, which accounted for 81.82% of the total prepayments (2015: RMB
651,298,713.35, which accounted for 76.44% of the total amount).
5. Interest receivable
Item 2016
Time Deposit 19,318,138.89 15,295,866.67
6、 Dividends receivable
Item 2016
Changan Ford Mazda
- 23,684,883.31
Engine Co., Ltd
7、 Other receivables
(1) Aging analysis of other receivables as at 31 December 2016 is as follows:
2016
Within 1 year 881,313,434.68 983,626,145.56
1 to 2 years 509,128,687.52 2,665,379.79
2 to 3 years 645,632.94 912,249.94
Over 3 years 16,431,705.62 18,542,901.26
Total 1,407,519,460.76 1,005,746,676.55
Provision (4,120,282.27) (4,261,431.15)
1,403,399,178.49 1,001,485,245.40
Movements of provisions for other receivables are as follows:
Beginning Deduction
Addition Ending balance
balance Reversal Write-off
2016 4,261,431.15 1,190,098.91 145,673.79 1,185,574.00 4,120,282.27
2015 4,370,480.35 117,953.66 222,002.86 5,000.00 4,261,431.15
Chongqing Changan Automobile Company Limited 2016 Annual Report
7、 Other receivables (continued)
(2) Analysis of other receivables by category as at 31 December 2016 is as follows:
2016
Item Balance Provision Balance Provision
Amount % Amount % Amount % Amount %
Individually significant
items and analyzed
individually for 1,092,099,200.00 77.59 - - 812,880,000.00 80.82 - -
provision
Other receivables analyzed as groups for provision
Group 1. Other
receivables analyzed for
provision according to 174,186,479.76 12.38 1,132,652.00 0.65 107,047,831.33 10.64 2,377,217.93 2.22
aging analysis
Group 2. Other
receivables from related 138,246,150.73 9.82 - - 83,934,632.00 8.35 - -
parties
Group subtotal 312,432,630.49 22.20 1,132,652.00 0.36 190,982,463.33 18.99 2,377,217.93 1.24
individually
insignificant items but
analyzed individually 2,987,630.27 0.21 2,987,630.27 100 1,884,213.22 0.19 1,884,213.22 100
for provision
Total 1,407,519,460.76 100 4,120,282.27 0.29 1,005,746,676.55 100 4,261,431.15 0.42
In groups, other receivables were analyzed for provision by aging:
2016
Aging Balance Balance
Provision Provision
Amount % Amount %
Within 6 months 170,925,572.05 98.14 - 101,517,856.97 94.83 -
6 to 12 months 1,295,462.92 0.74 64,773.15 2,102,465.20 1.96 105,123.25
Within 1 year
172,221,034.97 98.88 64,773.15 103,620,322.17 96.79 105,123.25
subtotal
1 to 2 years 803,497.37 0.46 80,349.74 980,114.30 0.92 98,011.43
2 to 3 years 227,858.77 0.13 68,357.63 99,781.94 0.09 29,934.58
3 to 4 years - - - 297,156.91 0.28 148,578.46
4 to 5 years 74,585.84 0.04 59,668.67 274,429.01 0.26 219,543.21
Over 5 years 859,502.81 0.49 859,502.81 1,776,027.00 1.66 1,776,027.00
Total 174,186,479.76 100 1,132,652.00 107,047,831.33 100 2,377,217.93
As at 31 December 2016, there are no individually significant items analyzed individually for
provision (2015: Nil).
(3) For the year ended 31 December 2016, provision for other receivables amounted to RMB
1,190,098.91 have been accrued (2015: RMB 117, 953.66). Provision for other receivables
amounted to RMB 145,673.79 has been reversed (2015: RMB 222,002.86).
(4) For the year ended 31 December 2016, provision for impairment of other receivables
amounted to RMB 1,185,574.00 has been written off (2015: RMB 5,000.00).
7、 Other receivables (continued)
(5) An analysis of the other receivables by nature is as follows:
Nature 2016
Energy-saving and new 1,092,099,200.00 812,880,000.00
Chongqing Changan Automobile Company Limited 2016 Annual Report
energy subsidy
Petty Cash 69,412,492.44 40,094,907.47
Secuity Deposit 20,744,568.68 8,184,335.73
Export rebates 16,477,474.15 16,208,023.06
Others 204,665,443.22 124,117,979.14
Total 1,403,399,178.49 1,001,485,245.40
(6) As at 31 December 2016, top five debtors of other receivables are as follows:
Proportion of
total other
Debtors Amount Nature Aging receivables
Provision
(%)
Energy-saving and new
First 573,938,000.00 Within two year 40.78 -
energy subsidy
Second 492,802,800.00 New energy subsidy Within two year 35.01 -
Third 82,947,788.84 Disposal of assets Within one year 5.89 -
Fourth 50,687,982.45 Disposal of assets one to two year 3.60 -
Fifth 25,358,400.00 New energy subsidy Within one year 1.80 -
Total 1,225,734,971.29 87.08 -
As at 31 December 2015, top five debtors of other receivables are as follows:
Proportion of
total other
Debtors Amount Nature Aging receivables
Provision
(%)
Energy-saving and new -
First 416,830,000.00 Within one year 41.44
energy subsidy
Second 396,050,000.00 New energy subsidy Within one year 39.38 -
Third 80,000,000.00 Dispose of assets Within one year 7.95 -
Fourth 8,897,507.26 Pretty Cash Within one year 0.88 -
Fifth 4,259,166.10 Pretty Cash Within one year 0.42 -
Total 906,036,673.36 90.07 -
(7) As at 31 December 2016, there is no government grant in due recorded in other receivables
(2015: Nil).
(8) For the year ended 2016, there is no accounts receivable derecognized due to transfer of
financial assets. (2015: Nil).
Chongqing Changan Automobile Company Limited 2016 Annual Report
8. Inventories
(1) Classification of inventories
2016
Item
Balance Provision Net value Balance Provision Net value
Raw materials 473,106,798.06 57,482,949.30 415,623,848.76 540,301,100.91 112,671,279.09 427,629,821.82
Material in
60,411,091.37 - 60,411,091.37 55,664,733.61 - 55,664,733.61
transit
Work in
615,327,063.78 53,155,331.21 562,171,732.57 468,242,137.94 33,014,300.12 435,227,837.82
progress
Finish goods 6,236,803,244.45 91,631,171.89 6,145,172,072.56 7,165,061,259.82 140,838,362.77 7,024,222,897.05
Consigned
processing 60,288,380.19 - 60,288,380.19 48,430,606.84 - 48,430,606.84
material
Consumables 60,439,697.16 - 60,439,697.16 137,899,234.78 - 137,899,234.78
Total 7,506,376,275.01 202,269,452.40 7,304,106,822.61 8,415,599,073.90 286,523,941.98 8,129,075,131.92
(2) Provision for inventories
2016
Deduction
Beginning
Type Provision Reversal Or Written Ending balance
balance
off
Raw materials 112,671,279.09 44,266,019.44 99,454,349.23 57,482,949.30
Work in
33,014,300.12 28,507,957.64 8,366,926.55 53,155,331.21
progress
Finish goods 140,838,362.77 87,106,574.34 136,313,765.22 91,631,171.89
Total 286,523,941.98 159,880,551.42 244,135,041.00 202,269,452.40
2015
Deduction
Beginning
Type Provision Reversal Or Written Ending balance
balance
off
Raw materials 43,047,494.14 88,029,180.46 18,405,395.51 112,671,279.09
Work in
72,883,429.99 11,771,059.78 51,640,189.65 33,014,300.12
progress
Finish goods 38,664,885.02 137,496,279.09 35,322,801.34 140,838,362.77
Total 154,595,809.15 237,296,519.33 105,368,386.50 286,523,941.98
(3) Note for inventory provision
The Group assesses whether the cost of inventory is higher than the net realizable value and makes
provision of the difference. Net realizable value is the estimated by selling price in the ordinary
course of business deduct estimated costs in further production to sell and estimated necessary
distribution expense and tax expense. The reversal of inventory provisions are due to price
reboundence of previous impaired inventories by net realizable value test, while written off of
inventory provisions are due to selling off of previous impaired inventories in current year.
Chongqing Changan Automobile Company Limited 2016 Annual Report
8. Inventories (continued)
Note for the inventory
As at 31 December 2016, 83,009 finished cars are transported to the dealers. According to the
protocol signed among the Group, the bank and the dealer, corresponding car certificates are
pledged in the bank, including: 5,195 cars in Huaxia Bank; 8,865 cars in China Citic Bank; 12,444
cars in China Everbright Bank; 8,209 cars in Bank of Communications Co., Ltd.; 41,188 cars in
China South Industry Group Finance Co., Ltd; 2,849 cars in China Merchants Bank; and 4,259
cars in Industrial Bank Co., Ltd.
As at 31 December 2015, 80,122 finished cars are transported to the dealers. According to the
protocol signed among the Group, the bank and the dealer, corresponding car certificates are
pledged in the bank, including: 5,779 cars in Huaxia Bank; 13,175 cars in China Citic Bank;
12,527 cars in China Everbright Bank; 10,675 cars in Bank of Communications Co., Ltd.; 32,402
cars in China South Industry Group Finance Co., Ltd; 1,955 cars in China Merchants Bank; and
3,609 cars in Industrial Bank Co., Ltd.
9. Other current assets
Item 2016
Input VAT to be deducted 925,275,929.61 7,802,783.59
Others 784,401.26 1,106,952.85
Total 926,060,330.87 8,909,736.44
10. Available-for-sale financial assets
2016
Item
Book value Provision Net value Book value Provision Net value
Available-for
-sale equity
instrument
Measured at
fair 280,235,000.00 27,120,000.00 253,115,000.00 378,570,000.00 27,120,000.00 351,450,000.00
value
Measured at
historical 179,361,274.00 - 179,361,274.00 179,361,274.00 - 179,361,274.00
cost
Total 459,596,274.00 27,120,000.00 432,476,274.00 557,931,274.00 27,120,000.00 530,811,274.00
As at 31 December 2016, the available-for-sale equity securities instrument measured at fair value
is 35.50 million ordinary shares of Southwest Securities Co., Ltd. (31 December 2015: 35.50
million ordinary shares of Southwest Securities Co., Ltd.).
Chongqing Changan Automobile Company Limited 2016 Annual Report
10. Available-for-sale financial assets (continued)
Available-for-sale financial assets measured at fair value:
Item 2016
Cost of equity instrument 50,000,000.00 50,000,000.00
Fair value 253,115,000.00 351,450,000.00
Accumulated amount of change in fair value recorded in other
230,235,000.00 328,570,000.00
comprehensive income
Provision 27,120,000.00 27,120,000.00
Available-for-sale financial assets measured at historical cost:
2016
Shareholding Cash dividend
Book value Provision
Ratio (%) in current year
Item
Beginning Beginning Ending
Addition Disposal Ending balance Addition Disposal
balance balance balance
China South Industry
Group Finance Co., 80,000,000.00 - - 80,000,000.00 - - - - 5.33 50,677,453.17
Ltd.
Chongqing Ante trading
3,000,000.00 - - 3,000,000.00 - - - - 10.00 -
Co., Ltd
Sichuan Glass Co., Ltd. 1,809,274.00 - - 1,809,274.00 - - - - 0.64 -
Zhong Fa Lian Investment
21,000,000.00 - - 21,000,000.00 - - - - 10.00 -
Co., Ltd.
CAERI(Beijing)
automobile
Lightweight 3,000,000.00 - - 3,000,000.00 - - - - 6.89 -
Technology Research
Institution Co., Ltd.
Guoqi Automobile Power
40,000,000.00 - - 40,000,000.00 - - - - 7.41 -
Cell Research Co., Ltd.
United Prosperity
Investment (ShenZhen) 30,552,000.00 - - 30,552,000.00 - - - - 5.00 -
Co., Ltd
Total 179,361,274.00 - - 179,361,274.00 - - - - - 50,677,453.17
2015
Cash
Shareholding
Book value Provision dividend in
Ratio (%)
Item current year
Beginning Beginning Ending
Addition Disposal Ending balance Addition Disposal
balance balance balance
China South Industry
Group Finance Co., 80,000,000.00 - - 80,000,000.00 - - - - 5.33 52,219,215.31
Ltd.
Chongqing Ante trading
3,000,000.00 - - 3,000,000.00 - - - - 10.00 -
Co., Ltd
Sichuan Glass Co., Ltd. 1,809,274.00 - - 1,809,274.00 - - - - 0.64 -
Zhong Fa Lian
21,000,000.00 - - 21,000,000.00 - - - - 10.00 -
Investment Co., Ltd.
CAERI(Beijing)
automobile
Lightweight 3,000,000.00 - - 3,000,000.00 - - - - 6.89 -
Technology Research
Institution Co., Ltd.
Guoqi Automobile Power
Cell Research Co., 40,000,000.00 - - 40,000,000.00 - - - - 7.41 -
Ltd.
United Prosperity
Investment finance
- 30,552,000 30,552,000.00 5.00
lease (ShenZhen) Co.,
Ltd (Note)
Total 148,809,274.00 30,552,000 - 179,361,274.00 - - - - - 52,219,215.31
Note: 2 June 2016, United Prosperity Investment (ShenZhen) Co., Ltd chaged its name to United
Prosperity Investment Finance Lease (ShenZhen) Co., Ltd.
Provision for available-for-sale financial asstes 2016
Balance at beginning and ending of the year 27,120,000.00 27,120,000.00
Chongqing Changan Automobile Company Limited 2016 Annual Report
11. Long-term equity investments
2016
Investment income under Other comprehensive Other equity Cash dividends Book value Provision ending
Investee Beginning balance Addition Deduction Provision
equity method income variation declared ending balance balance
Joint Venture
Chongqing Changan
Suzuki Automobile 1,211,881,807.44 - - 16,949,536.68 - 2,005,532.73 - - 1,230,836,876.85 -
Co., Ltd.
Jiangling Holding Co.,
2,708,643,943.64 - - 281,552,504.60 (166,479.23) 1,177,334.05 - - 2,991,207,303.06 -
Ltd.
Changan Ford
Automobile Co., Ltd. 5,504,416,392.18 - - 9,029,392,427.50 - - (8,870,000,000.00) - 5,663,808,819.68 -
Changan Mazda
1,998,126,415.64 - - 998,214,084.78 - - (850,000,000.00) - 2,146,340,500.42 -
Automobile Co., Ltd.
Changan Ford Mazda
781,796,686.36 - - 126,734,131.00 - 184,883.31 - - 908,715,700.67 -
Engine Co., Ltd.
Changan PSA 1,462,904,374.63 - - (815,064,719.37) - - - - 647,839,655.26 -
Automobiles Co., Ltd.
Associates
Chongqing Xiyi 7,511,430.77 - - 45,017.65 - - - - 7,556,448.42 -
Automobile Linkage
Rod Co., Ltd.
Chongqing Changan 76,219,385.83 - - 7,187,078.33 - - - - 83,406,464.16 -
Kuayue Automobile
Co., Ltd.
Chongqing Changan
Kuayue Automobile - - - - - - - - - -
Sales Co., Ltd.
(note)
Beijing Fang’an
cresent taxi Co., Ltd. - - - - - - - - - -
(note)
Changan Auto Finance
1,155,000,000.00 - - (91,344,758.49) - - - - 1,063,655,241.51 -
Co.,Ltd
Total 14,906,500,436.49 - - 9,553,665,302.68 (166,479.23) 3,367,750.09 (9,720,000,000.00) - 14,743,367,010.03 -
Note: As at 31 December 2016, the Group is not responsible for extral loss from Chongqing Changan Kuayue Automobile Sales Co., Ltd. and Beijing Fang’an
cresent taxi Co., Ltd.. Therefore, when excess losses of these two associates occurred, the Group just reduced its correspondent long-term equity
investment to zero, and did not recognize contingent liabilities accordingly.
Chongqing Changan Automobile Company Limited 2016 Annual Report
11. Long-term equity investments (continued)
2015
Investment income under Other comprehensive Other equity Cash dividends Book value Provision ending
Investee Beginning balance Addition Deduction Provision
equity method income variation declared ending balance balance
Joint Venture
Chongqing Changan
Suzuki Automobile 1,408,273,674.47 - --- (197,896,284.99) - 1,504,417.96 - - 1,211,881,807.44 -
Co., Ltd.
Jiangling Holding Co.,
2,334,057,207.68 - --- 374,818,810.93 (966,718.09) 734,643.12 - - 2,708,643,943.64 -
Ltd.
Changan Ford
Automobile Co., Ltd. 4,617,363,993.97 - - 8,687,052,398.21 - - (7,800,000,000.00) - 5,504,416,392.18 -
Changan Mazda
1,672,590,730.82 - - 825,535,684.82 - - (500,000,000.00) - 1,998,126,415.64 -
Automobile Co., Ltd.
Changan Ford Mazda
720,178,224.15 - - 85,303,345.52 - - (23,684,883.31) - 781,796,686.36 -
Engine Co., Ltd.
Changan PSA 1,795,746,892.81 - - (332,842,518.18) - - - - 1,462,904,374.63 -
Automobiles Co., Ltd.
Associates
Chongqing Xiyi 9,220,184.59 - - (1,708,753.82) - - - - 7,511,430.77 -
Automobile Linkage
Rod Co., Ltd.
Chongqing Changan 66,558,691.97 - - 9,660,693.86 - - - - 76,219,385.83 -
Kuayue Automobile
Co., Ltd.
Chongqing Changan
Kuayue Automobile - - - - - - - - - -
Sales Co., Ltd.
(note)
Beijing Fang’an
- - - - - - - - - -
cresent taxi Co., Ltd.
Chongqing Auto
- 1,155,000,000.00 - - - - - - 1,155,000,000.00 -
Finance Co.,Ltd
Total 12,623,989,600.46 1,155,000,000.00 - 9,449,923,376.35 (966,718.09) 2,239,061.08 (8,323,684,883.31) - 14,906,500,436.49 -
Chongqing Changan Automobile Company Limited 2016 Annual Report
12. Investment property
Cost Model
2016
Item Builidings
2016
Original cost
Beginning 10,050,100.00 11,819,701.24
Transferred to others - 1,769,601.24
Ending 10,050,100.00 10,050,100.00
Accumulated depreciation
and amortization
Beginning 2,040,404.04 2,359,556.20
Accrual 226,711.56 226,711.56
Transferred to others - 545,863.72
Ending 2,267,115.60 2,040,404.04
Impairment Provision
Beginning and Ending - -
Carrying amount
Ending 7,782,984.40 8,009,695.96
Beginning 8,009,695.96 9,460,145.04
As at 31 December 2016, there is no investment property without property certificate (As at 31
December 2015: Nil).
Chongqing Changan Automobile Company Limited 2016 Annual Report
13. Fixed assets
(1) Details of fixed assets
2016
Item Buildings Machinery Vehicles Other Equipments Total
Original cost
Beginning 6,025,351,237.91 12,918,726,114.92 102,607,140.62 3,971,051,290.13 23,017,735,783.58
Purchase 393,542,090.56 60,196,378.18 533,727,912.71 72,966,387.94 1,060,432,769.39
Transfer from
Construction in 167,211,070.34 2,162,109,384.82 14,298,865.24 441,797,764.60 2,785,417,085.00
progress
Disposal 1,079,185.33 484,081,800.90 14,763,522.56 231,388,636.60 731,313,145.39
Ending 6,585,025,213.48 14,656,950,077.02 635,870,396.01 4,254,426,806.07 26,132,272,492.58
Accumulated
depreciation
Beginning 1,096,331,550.20 5,393,122,603.16 47,611,603.57 1,757,434,742.08 8,294,500,499.01
Accrual 237,133,553.39 1,086,711,305.91 51,415,720.92 404,285,130.02 1,779,545,710.24
Disposal 381,197.77 281,133,910.16 5,080,001.60 143,841,352.41 430,436,461.94
Ending 1,333,083,905.82 6,198,699,998.91 93,947,322.89 2,017,878,519.69 9,643,609,747.31
Impairment
provision
Beginning 84,279,067.92 667,183,282.50 9,011,534.73 52,523,868.61 812,997,753.76
Accrual - 171,963,505.59 180,486.25 120,340,376.85 292,484,368.69
Disposal 95,316.92 45,989,718.20 8,923,514.09 42,295,341.96 97,303,891.17
Ending 84,183,751.00 793,157,069.89 268,506.89 130,568,903.50 1,008,178,231.28
Carrying
amount
Ending 5,167,757,556.66 7,665,093,008.22 541,654,566.23 2,105,979,382.88 15,480,484,513.99
Beginning 4,844,740,619.79 6,858,420,229.26 45,984,002.32 2,161,092,679.44 13,910,237,530.81
Chongqing Changan Automobile Company Limited 2016 Annual Report
13. Fixed assets (Continued)
(1) Details of fixed assets (continued)
2015
Item Buildings Machinery Vehicles Other Equipments Total
Original cost
Beginning 5,720,929,022.47 12,456,413,124.25 105,085,124.78 3,754,783,606.38 22,037,210,877.88
Purchase 81,808,296.79 117,128,705.40 817,554.20 10,718,665.95 210,473,222.34
Transfer from 236,675,656.74 808,105,141.71 6,346,313.77 269,506,388.83 1,320,633,501.05
Construction in
progress
Transfer from 1,769,601.24 - - - 1,769,601.24
Investment
property
Disposal 15,831,339.33 462,920,856.44 9,641,852.13 63,957,371.03 552,351,418.93
Ending 6,025,351,237.91 12,918,726,114.92 102,607,140.62 3,971,051,290.13 23,017,735,783.58
Accumulated
depreciation
Beginning 869,651,467.05 4,499,116,329.67 43,232,776.35 1,463,102,408.02 6,875,102,981.09
Accrual 229,475,954.02 1,042,676,250.10 11,754,212.68 335,127,515.28 1,619,033,932.08
Transfer from 545,863.72 - - - 545,863.72
Investment
property
Disposal 3,341,734.59 148,669,976.61 7,375,385.46 40,795,181.22 200,182,277.88
Ending 1,096,331,550.20 5,393,122,603.16 47,611,603.57 1,757,434,742.08 8,294,500,499.01
Impairment
provision
Beginning 4,998,917.25 546,083,399.27 111,955.65 45,333,828.24 596,528,100.41
Accrual 79,803,326.20 297,876,350.68 8,948,638.94 10,929,580.39 397,557,896.21
Disposal 523,175.53 176,776,467.45 49,059.86 3,739,540.02 181,088,242.86
Ending 84,279,067.92 667,183,282.50 9,011,534.73 52,523,868.61 812,997,753.76
Carrying
amount
Ending 4,844,740,619.79 6,858,420,229.26 45,984,002.32 2,161,092,679.44 13,910,237,530.81
Beginning 4,846,278,638.17 7,411,213,395.31 61,740,392.78 2,246,347,370.12 14,565,579,796.38
(2) Fixed assets that are temporarily unused
2016
Item Original cost Accumulated depreciation Impairment provision Carrying amount
Buildings 144,780,067.56 72,038,546.15 50,061,405.94 22,680,115.47
Machinery 1,874,723,564.81 1,241,667,363.44 632,956,493.54 99,707.83
Vehicles 11,119,022.00 2,245,833.95 8,873,188.05 -
Other
Equipments
180,532,464.65 83,871,111.79 96,328,591.86 332,761.00
Total 2,211,155,119.02 1,399,822,855.33 788,219,679.39 23,112,584.30
Chongqing Changan Automobile Company Limited 2016 Annual Report
13. Fixed assets (continued)
(2) Fixed assets that are temporarily unused (continued)
2015
Item Original cost Accumulated depreciation Impairment provision Carrying amount
Buildings 76,173,039.74 26,050,123.71 26,369,104.88 23,753,811.15
Machinery 759,630,049.43 421,391,601.73 336,485,331.27 1,753,116.43
Vehicles 11,119,022.00 2,245,415.51 8,873,188.05 418.44
Other 70,845,194.36 33,072,928.44 37,461,079.13 311,186.79
Equipments
Total 917,767,305.53 482,760,069.39 409,188,703.33 25,818,532.81
(3) As at 31 December 2016, there is no fixed assets which are rented out under operating
leases (As at 31 December 2015: Nil).
(4) Fixed assets without property certificate as at 31 December 2016 are as follow:
Item Carrying amount Reason for incomplete certificate of title
Assemble plant 168,340,200.62 In process
Painting plant 159,082,199.01 In process
Yu Zui Auto City 123,637,346.94 Project not settled
Office building 79,949,017.03 In process
Welding plant 77,213,158.20 In process
Other facilities 63,212,155.11 In process
Other plant 59,066,214.17 In process
Stamping plant 51,627,378.09 In process
EA Casting workshop Phase I 41,058,337.53 In process
Second plant and public building 32,938,569.20 In process
Engine workshop 32,400,095.72 In process
Comercial vehicle workshop 29,532,632.52 In process
Staff cafeteria 16,206,486.87 In process
Technology center workshop 13,557,533.55 In process
Buildings in testing projects of
10,656,177.75 In process
Dianjiang
Warehouse 6,718,281.88 In process
Chongqing Changan Automobile Company Limited 2016 Annual Report
14. Construction in progress
(1) Details of construction in progress
2016
Item
Balance Provision Carrying amount Balance Provision Carrying amount
Mini-bus production equipment 332,011,471.05 - 332,011,471.05 90,984,573.86 - 90,984,573.86
Yuzui motor city project 1,670,075,876.73 - 1,670,075,876.73 758,263,413.23 - 758,263,413.23
Car production equipment 68,289,153.08 - 68,289,153.08 42,051,572.59 - 42,051,572.59
Engine plant 749,552,604.51 - 749,552,604.51 1,324,035,600.35 - 1,324,035,600.35
Vehicle research institution 119,918,357.19 - 119,918,357.19 59,928,820.28 - 59,928,820.28
Vehicle moulds 446,423,242.75 - 446,423,242.75 250,678,762.19 - 250,678,762.19
Light vehicle technical -
transformation project of 39,361,192.09 39,361,192.09 48,649,227.54 - 48,649,227.54
Baoding Changan bus
Plant for vehicle test project 16,109,878.08 - 16,109,878.08 45,137,091.95 - 45,137,091.95
Beijing vehicle construction -
47,364,971.59 47,364,971.59 85,977,811.61 - 85,977,811.61
project
Engine Base of Nanjing 809,483.55 - 809,483.55 3,543,517.10 - 3,543,517.10
Yuzui Refitting factory 29,200,422.80 - 29,200,422.80 25,998,204.34 - 25,998,204.34
Car production Project Of -
2,414,375.90 2,414,375.90 162,436,108.67 - 162,436,108.67
Hefei Changan
Nanjing Welding Technological
16,506,412.14 16,506,412.14 44,360,154.14 - 44,360,154.14
transformation project -
Yubei Factory 107,961,718.09 - 107,961,718.09 - - -
Others 175,704,671.23 - 175,704,671.23 121,829,149.07 - 121,829,149.07
Total 3,821,703,830.78 - 3,821,703,830.78 3,063,874,006.92 - 3,063,874,006.92
Chongqing Changan Automobile Company Limited 2016 Annual Report
14. Construction in progress (continued)
(2) Significant movements of construction in progress in 2016
Budget The project investments’ Progress of
Project Beginning balance Addition Transfer to fixed assets Source of funds Ending balance
(RMB0,000) proportion of budget construction
Mini-bus production
equipment 428,190.00 90,984,573.86 356,206,869.00 115,179,971.81 42% 42% Raised 332,011,471.05
Yuzui motor city project 497,073.82 758,263,413.23 976,444,837.79 64,632,374.29 64% 64% Raised and issued 1,670,075,876.73
Car production equipment 653,247.00 42,051,572.59 147,262,058.25 121,024,477.76 15% 15% Raised 68,289,153.08
Engine plant 700,500.00 1,324,035,600.35 1,061,887,637.00 1,636,370,632.84 80% 80% Raised and issued 749,552,604.51
Vehicle research institution 262,998.00 59,928,820.28 82,722,210.01 22,732,673.10 36% 36% Raised 119,918,357.19
Vehicle moulds 147,242.00 250,678,762.19 355,209,442.54 159,464,961.98 98% 98% Raised 446,423,242.75
Light vehicle technical
transformation project of 38,145.00 48,649,227.54 63,458,917.37 72,746,952.82 99% 99% Raised 39,361,192.09
Baoding Changan Bus
Plant for vehicle test project 157,122.00 45,137,091.95 23,181,020.97 52,208,234.84 83% 83% Raised 16,109,878.08
Beijing vehicle construction
project 467,606.53 85,977,811.61 70,501,139.19 109,113,979.21 70% 70% Raised 47,364,971.59
Engine Base of Nanjing 19,699.00 3,543,517.10 468,910.24 3,202,943.79 35% 35% Raised 809,483.55
Yuzui Refitting factory 29,977.00 25,998,204.34 3,202,218.46 - 22% 22% Raised 29,200,422.80
Car production project of
Hefei Changan
172,917.72 162,436,108.67 91,011,524.85 251,033,257.62 23% 23% Raised 2,414,375.90
Nanjing Welding
Technological transformation 9,700.00 44,360,154.14 19,720,944.18 47,574,686.18 94% 94% Raised 16,506,412.14
project
Yubei Factory 56,223.00 - 108,239,598.43 277,880.34 19% 19% Raised 107,961,718.09
Others - 121,829,149.07 183,729,580.58 129,854,058.42 0% 0% Raised 175,704,671.23
Total 3,063,874,006.92 3,543,246,908.86 2,785,417,085.00 3,821,703,830.78
Chongqing Changan Automobile Company Limited 2016 Annual Report
14. Construction in progress (continued)
(2) Significant movements of construction in progress in 2015：
Budget Transfer to fixed The project investments’ Progress of
Project Beginning balance Addition Source of funds Ending balance
(RMB0,000) assets proportion of budget construction
Mini-bus production
354,098.00 51,532,611.69 128,221,677.95 88,769,715.78 41% 41% Raised 90,984,573.86
equipment
Yuzui motor city project 426,656.00 56,137,499.36 783,935,378.77 81,809,464.90 52% 52% Raised 758,263,413.23
Car production equipment 119,196.00 21,154,399.12 77,695,238.73 56,798,065.26 71% 71% Raised 42,051,572.59
Engine plant 574,945.00 390,640,806.71 1,057,159,126.46 123,764,332.82 79% 79% Raised 1,324,035,600.35
Vehicle research institution 240,676.00 27,883,152.26 57,649,941.36 25,604,273.34 36% 36% Raised 59,928,820.28
Vehicle moulds 143,000.00 264,739,352.00 108,223,646.46 122,284,236.27 75% 75% Raised 250,678,762.19
Light vehicle technical
transformation project of 36,838.15 29,974,950.86 67,980,073.31 49,305,796.63 85% 85% Raised 48,649,227.54
Baoding Changan Bus
Plant for vehicle test project 157,122.00 76,854.40 54,900,409.04 9,840,171.49 82% 82% Raised 45,137,091.95
Beijing vehicle construction
799,629.53 232,656,244.67 401,185,577.14 547,864,010.20 40% 40% Raised 85,977,811.61
project
Engine Base of Nanjing 17,750.00 24,147,569.91 34,753,065.04 55,357,117.85 35% 35% Raised 3,543,517.10
Yuzui Refitting factory 29,977.00 20,399,257.73 14,083,254.63 8,484,308.02 21% 21% Raised 25,998,204.34
Car production project of
94,001.00 15,630,398.56 154,445,026.33 7,639,316.22 18% 18% Raised 162,436,108.67
Hefei Changan
Nanjing Welding
Technological transformation 6,000.00 23,004,985.36 27,687,982.47 6,332,813.69 74% 74% Raised 44,360,154.14
project
Others - 116,018,882.61 142,590,145.04 136,779,878.58 Raised 121,829,149.07
Total 1,273,996,965.24 3,110,510,542.73 1,320,633,501.05 3,063,874,006.92
Chongqing Changan Automobile Company Limited 2016 Annual Report
14. Construction in progress (continued)
(3) Movement of provision for the impairment of construction in progress：
Reform of production line with 100,000 capacity of Hefei Changan in previous years 2016
Beginning Balance - 10,458,678.57
Addition - -
Deduction - 10,458,678.57
Ending Balance - -
In the year of 2015, reform project of production line with 100,000 capacity of Hefei Changan were terminated due to adjustment of the company’s strategy,
therefore provision of the project was written off.
Chongqing Changan Automobile Company Limited 2016 Annual Report
15. Intangible assets
Details of intangibale assets
2016
Software use Trademark use Non-patent
Item Land use rights Total
rights rights technology
Original cost
Beginning 2,137,762,363.93 370,981,530.88 211,784,400.00 1,974,487,952.33 4,695,016,247.14
Purchase 218,088,206.00 29,671,977.04 - - 247,760,183.04
Internal
research and - - - 883,038,119.48 883,038,119.48
development
Ending 2,355,850,569.93 400,653,507.92 211,784,400.00 2,857,526,071.81 5,825,814,549.66
Accumulated
amortization
Beginning 186,841,350.16 311,958,198.25 118,447,706.48 1,116,601,226.35 1,733,848,481.24
Accrual 46,124,144.45 52,261,887.97 17,502,880.14 388,357,867.86 504,246,780.42
Ending 232,965,494.61 364,220,086.22 135,950,586.62 1,504,959,094.21 2,238,095,261.66
Impairment
provision
Beginning - 21,319,804.81 - 96,516,218.42 117,836,023.23
Accrual - - - 24,932,589.74 24,932,589.74
Ending - 21,319,804.81 - 121,448,808.16 142,768,612.97
Carrying
amount
Ending 2,122,885,075.32 15,113,616.89 75,833,813.38 1,231,118,169.44 3,444,950,675.03
Beginning 1,950,921,013.77 37,703,527.82 93,336,693.52 761,370,507.56 2,843,331,742.67
2015
Software use Trademark use Non-patent
Item Land use rights Total
rights rights technology
Original cost
Beginning 1,911,997,610.93 312,758,164.35 211,784,400.00 1,855,742,158.83 4,292,282,334.11
Purchase 225,764,753.00 58,723,774.65 - 1,087,360.41 285,575,888.06
Internal - - - 117,658,433.09 117,658,433.09
research and
development
Disposal - 500,408.12 - - 500,408.12
Ending 2,137,762,363.93 370,981,530.88 211,784,400.00 1,974,487,952.33 4,695,016,247.14
Accumulated
amortization
Beginning 145,348,478.79 245,424,542.70 99,923,437.58 825,124,184.29 1,315,820,643.36
Accrual 41,492,871.37 66,985,348.68 18,524,268.90 291,477,042.06 418,479,531.01
Disposal - 451,693.13 - - 451,693.13
Ending 186,841,350.16 311,958,198.25 118,447,706.48 1,116,601,226.35 1,733,848,481.24
Impairment
provision
Beginning - 21,319,804.81 - 76,176,660.79 97,496,465.60
Accrual - - - 20,339,557.63 20,339,557.63
Ending - 21,319,804.81 - 96,516,218.42 117,836,023.23
Carrying
amount
Ending 1,950,921,013.77 37,703,527.82 93,336,693.52 761,370,507.56 2,843,331,742.67
Beginning 1,766,649,132.14 46,013,816.84 111,860,962.42 954,441,313.75 2,878,965,225.15
Chongqing Changan Automobile Company Limited 2016 Annual Report
15. Intangible assets (continued)
As at 31 December 2016, the intangible assets from internal research and development account for
35.74% of total intangible assets (as at 31 December 2015: 26.78%).
As at 31 December 2016, there is no intangible assets with no certificate (As at 31 December 2015:
Nil).
16. Development expenditure
2016
Addition Deduction
Charged to income
Item Beginning balance Internal research and Recognized as Ending balance
Statement of the
development intangible assets
current year
Automobile
1,093,462,382.64 944,747,467.22 883,038,119.48 43,995,276.89 1,111,176,453.49
Development
2015
Addition Deduction
Charged to income
Item Beginning balance Internal research and Recognized as Ending balance
Statement of the
development intangible assets
current year
Automobile
627,845,455.00 649,260,824.50 117,658,433.09 65,985,463.77 1,093,462,382.64
Development
17. Goodwill
2016 and 2015
Addition Deduction
Business
Beginning
Investee combination Ending balance
balance Disposal
under common
control
Hebei Changan Automobile
Co., Ltd. 9,804,394.00 - - 9,804,394.00
Nanjing Changan
Automobile Co., Ltd. - - - -
Total 9,804,394.00 - - 9,804,394.00
Chongqing Changan Automobile Company Limited 2016 Annual Report
17. Goodwill (continued)
Movement of provision for goodwill is as follow:
2016 and 2015
Beginning Addition Deduction
Investee Ending balance
balance Accrual Disposal
Nanjing Changan
73,465,335.00 - - 73,465,335.00
Automobile Co., Ltd.
Due to the accumulated losses of Nanjing Changan Automobile Co., Ltd., provision for related
goodwill has been fully accrued amounted to RMB73,465,335.00.
18. Long-term deferred expenses
2016
Item Beginning Addition Amortization Ending
balance balance
Long-term deferred
8,028,811.27 8,191,450.04 2,771,851.68 13,448,409.63
expenses
2015
Item Beginning Addition Amortization Ending
balance balance
Long-term deferred
1,687,863.32 6,909,549.00 568,601.05 8,028,811.27
expenses
19. Deferred tax assets and liabilities
Item 2016
Deductible
Deductible temporary
Deferred tax assets： Deferred tax assets temporary Deferred tax assets
differences
differences
Assets provision 1,126,915,748.00 169,037,362.20 1,098,129,857.31 164,719,478.60
Accrued expenses and
5,393,107,999.39 808,966,199.91 4,904,795,207.30 735,719,281.09
contingent liabilities
Unpaid tech
development expense
306,173,312.02 45,925,996.80 307,647,899.20 46,147,184.88
and advertisement
expense
Deferred income 2,337,829,565.30 350,674,434.80 2,431,191,639.76 364,678,745.96
Unpaid salary and
486,688,568.49 73,003,285.27 695,643,337.25 104,346,500.59
bonus and others
Total 9,650,715,193.20 1,447,607,278.98 9,437,407,940.82 1,415,611,191.12
Chongqing Changan Automobile Company Limited 2016 Annual Report
19. Deferred tax assets and liabilities (continued)
Item 2016
Taxable
Deferred tax Taxable temporary Deferred tax Deferred tax
temporary
liabilities： differences liabilities liabilities
differences
Available-for-sale
financial assets on
the changes in fair 230,235,000.00 34,535,250.00 328,570,000.00 49,285,500.00
value recorded in
capital reserve
Unrcognized deductible temporary differences and tax losses of unrecognized are as follows:
Item 2016
The deductible
temporary 1,043,531,482.32 2,178,503,714.94
difference
The deductible tax
1,743,264,928.96 2,193,071,173.16
loss
Total 2,786,796,411.28
