Chongqing Changan Automobile
Company Limited
2017 Annual Report
April, 2018
Chongqing Changan Automobile Company Limited 2017 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 Zhang Baolin, the Chief Financial Officer Zhang Deyong and the
responsible person of the accounting institution (Accountant in charge) Chen Jianfeng hereby
declare that the Financial Statements enclosed in this annual report are true, accurate and complete.
Except the following directors, all the directors attended the board meeting for reviewing the
annual report.
The name of the directors absent Positions Reasons for the absence Name of the consignee
Tan Xiaogang Directors Business trip Wang Xiaoxiang
Tan Xiaosheng Independent Directors Business trip Li Qingwen
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, 2017 as the radix, sending cash dividends of
RMB 4.46 Yuan (tax included) per every 10 shares to all shareholders, and not converting capital
reserve into share capital.
Chongqing Changan Automobile Company Limited 2017 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 .................................................................................... 28
Chapter 6 Changes in the shareholding of the company and shareholders .............. 41
Chapter7 Information about Directors, Supervisors, Senior Management and
Employees ................................................................................................................... 48
Chapter 8 Corporate Governance ............................................................................. 61
Chapter 9 Corporate Bonds ...................................................................................... 68
Chapter 10 Auditor’s Report .................................................................................... 69
Chapter 11 Documents for Future Reference ......................................................... 208
Chongqing Changan Automobile Company Limited 2017 Annual Report
Definitions
Items Definitions
Changan Auto., the
Refers to Chongqing Changan Automobile Company Limited
Company
South Industries Refers to China South Industries Group Co., Ltd. , the 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
Chongqing Changan Automobile International Sale Service Co., Ltd. , a
International Company Refers to
subsidiary company of the Company
Changan Ford Refers to Changan Ford Automobile Co. Ltd,，a JV of the Company
Changan Mazda Refers to Changan Mazda Automobile Co. Ltd, a JV of the Company
CFME Refers to Changan Ford Mazda Engine Co. Ltd, a JV of the Company
Changan Suzuki Refers to Chongqing 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 Co., Ltd. ,
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 2017 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 Zhang Baolin
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 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 2017 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.”. With the change of its name, no change
occurred in its property, ownership and control relation of the Company.
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 2017 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
2017 2016 on a y-o-y basis
(%)
Operating revenue
80,012,205,182.37 78,542,441,757.19 1.87% 66,771,580,527.66
(Yuan)
Net profit belonging
to shareholders of the
7,137,234,723.47 10,285,284,120.57 -30.61% 9,952,714,168.09
listed company
(Yuan)
Net profit belonging
to shareholders of the
listed company after
5,716,114,648.34 9,448,723,644.17 -39.50% 9,560,013,288.84
deduction of
non-recurring profit
and loss (Yuan)
Net cash flow arising
from operating -1,369,576,776.83 2,286,551,305.20 -159.90% 5,414,890,769.50
activities (Yuan)
Basic earnings per
1.49 2.19 -31.96% 2.13
share (Yuan/Share)
Diluted earnings per
Not applicable Not applicable Not applicable Not applicable
share (Yuan/Share)
Return on equity Down 11.16
15.65% 26.81% 33.14%
(ROE) (%) Points
Increase/decrease of
the end of current
End of 2017 End of 2016 year compared with End of 2015
that of the
previous year (%)
Chongqing Changan Automobile Company Limited 2017 Annual Report
Total assets (Yuan) 106,125,114,622.69 106,510,473,733.93 -0.36% 89,413,988,669.66
Net assets belonging
to shareholders of the
47,598,690,942.28 43,573,812,403.87 9.24% 34,385,189,070.36
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 17,667,498,708.59 15,887,714,400.87 17,875,967,836.92 28,581,024,235.99
Net profit attributable to shareholders of listing
2,401,344,788.39 2,219,200,951.13 1,190,050,794.41 1,326,638,189.54
Corporation
Net profit attributable to shareholders of the listing
Corporation after deducting non-recurring gains and 2,271,469,057.47 1,285,292,389.61 1,073,458,948.50 1,085,894,252.76
losses
Net cash flows from operating activities 4,326,402,675.44 633,302,048.67 -4,212,004,837.09 -2,117,276,663.85
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
Item 2017 2016
Non-recurring items and amounts(including accrued reversal assets
41,774,452.23 -26,176,073.44 -34,314,067.34
impairment part)
Government subsidies included in the profit and loss of the current
period (Except closely related to business operations, in accordance 1,613,343,216.59 864,258,952.35 441,926,607.20
with the national unified standard quota or quantitative enjoyment
Chongqing Changan Automobile Company Limited 2017 Annual Report
of government subsidies)
The current net profit and loss of the subsidiary period from the
- - -
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 29,262,070.84 53,570,410.76 16,816,296.11
Interest on deferred payment of funds received by non financial
33,408,866.16 41,300,590.86
enterprises 38,457,111.56
Reduction: the impact of income tax 188,136,520.19 94,404,693.21 65,174,314.56
Impact of minority shareholders' equity (after tax) 108,532,010.50 1,988,710.92 5,010,753.72
Total 1,421,120,075.13 836,560,476.40 392,700,879.25
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 2017 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 R&D, manufacturing and sale of cars (including sedan and
commercial vehicles), the R&D and production of automobile engine products. Besides, the company actively develops new business
including e-business and time sharing leasing with the advantage of its OEM position.
With the continuous growth of China's auto industry for many years, after years of accumulation and strategic layout, Changan
has become the first camp in China's auto industry and ranked among the top 500 industrial enterprises for many years.
Changan automobile always adheres to the mission of \"leading the car civilization for the benefit of human life\", and the
concept of \"energy conservation, environmental protection, scientific and technological intelligence\", vigorously develops new
energy and smart cars, guides the automobile civilization by the use of scientific and technological innovation, and provides
customers with high quality 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, including the traditional fuel and new energy models, and the
engine platforms from 1.0L to 2.0L. The company owns many famous brands such as Changan passenger car, Changan Oushang,
Changan Ford, Changan Mazda, Changan SUZUKI, Changan PSA, Changan Bus and so on. Up to now, the Company has
successfully launched a series of classic brands such as Raeton CC, Eado series, Alsvin series, CS series SUV, CX70, Oushang and
Honor; a series of famous JV products such as new Focus, new Mondeo, Kuga, Edge, CX-5, Axela,Vitara, Alivio and so on. At the
same time, we have launched new energy vehicles such as Eado EV, New Benben EV, Eulove EV, Benben miniEV and CS15 EV,
which are admired by the market and loved by the consumers.
II. Major changes in assets
1、 Major changes in assets
No significant changes in major assets during the reporting period
2、 Main Overseas Assets
□ Applicable √ Not applicable
III. Core Competence Analysis
In 2017, Changan automobile further elevated the strength of scientific and technological innovation. Through the
benchmarking, Changan continued to improve and optimize the project management system with lean process control and focus, and
R&D expense amounted to 3.631 billion yuan in 2017, and promoted more than 400 scientific research projects to carry out smoothly.
The construction of the Changan automobile global R & D center was launched with the investment of 3.3 billion yuan and it will
become the general hub of the global R & D system after the completion.
1、Explore the reform of management model
Build up the matrix management model of \"customer centered, product service as the main line\", set up The New Energy
Industry Department, Modeling Design Institute and Intelligent Research Institute, focus on the technology research of modeling
family, intelligence, net connection, lightweight and so on. Changan regards the business logic as the core and the stage goal as the
orientation, optimizes the product development process and shortens the development cycle.
2、A series of new products released into the market
Nine new products, such as CS55 and A800, have been released into the market on schedule; Eleven products such as CS75
have been successfully upgraded; four new energy models, such as CS15 EV (300 km) and Eado plug-in PHEV; The H15TFR engine
Chongqing Changan Automobile Company Limited 2017 Annual Report
and DCT270 double clutch transmission placed on CX70T, Eado XT and other products were put into operation smoothly.
3、Create \"3+N\" product technology label
Changan digs into the needs of the users, utilizes the resources to create a highly experienced three technology labels of \"fashion,
intelligent, green\" and N basic technology to ensure the achievement of the fantastic dream products. Changan released the design
concept of \"smart color double spin\", formed a new generation of family modeling DNA in Changan, laid the foundation for
speeding up product research and development. Changan released the intelligent \"654\" strategy, and aimed to realize motorway
autopilot in 2020, and developed 11 intelligent driving technology, such as ACC-SG (Adaptive Cruise) and APA2.0 (auto parking).
With the release of the new energy plan of Shangri-La, Changan will gradually transform to the new energy, and stop selling
traditional fuel cars by 2025. Changan will focus on the users’ experience, rapidly promote the new technology capabilities of
collision safety, test, car body, chassis, electrical appliances, interior and exterior decoration, lightening and other fields.
4、The fruitful achievements of scientific and technological innovations
Changan was granted the award of \"National industrial design center\" and \"national technological innovation demonstration
enterprise\"; the research and successful practice of automobile lightweight technology synergistic innovation model won the first
prize of China automobile industry science and Technology Award in 2017, the advanced auto safety technology based on electronic
stability control system and its large-scale application project won the first prize in Chongqing science and Technology Award; the 5
speed wet double clutch automatic transmission won the title of China's top ten best transmission in 2017, and the D20TGDI engine
was awarded the title of top ten engine \"China heart\" in 2017.
5、The rapid development of the brand and the promotion of brand image
In 2017, Changan achieved the sales volume of 2.872 million vehicles. Among them, the sales volume of Changan brand
reached 1.663 million, ranking the first in China's automobile industry. In 2017, Changan brand users broke through 15.65 million.
CS55, CS95 and Lingxuan have won 32 titles in Chinese Mass Production Vehicle Performance Competition (CCPC), displayed the
style and quality of Changan automobile as the leader of the Chinese automobile brand industry. In the first half of 2017 VCR
(Vehicle Complaint Ratio) data issued by the National Quality Inspection Administration's defective product management center,
Changan ranked first in the list with the lowest complaint ratio 0.77 points, surpassing the joint venture and the importing brands. In
the \"new light year smart color SUV\" CS55 launch conference, the fourth-level intelligent driving (highly automatic driving)
achieved the first appearance of domestic car companies. Changan acquired the \"United States California road test license plate\"
issued by the California State Administration of transportation, which marked a speed-up pace of auto driving. On the \"2017 315
Third China quality integrity brand forum\" held by China Quality Promotion Association, Changan won the China Service
Innovation Award. In November 2017, Changan was selected again as CCTV's \"national brand plan\" and continued to lead the
Chinese brand cars.
Chongqing Changan Automobile Company Limited 2017 Annual Report
Chapter 4 Business Discussion and Analysis
I、Overview
During the reporting period, the automobile industry carried out the decisions of the Communist Party Central Committee and
the State Council, insisted on the overall key tone of the steady progress, regarded the supply side structural reform as the main line,
actively promoted the industrial transformation and upgrading, pushed forward the strategy of innovation driven development and
promoted the high quality development of the industry. In 2017, the production and sales of China's auto market hit the new high
with the total production and sales of 29.015 million vehicles and 28.879 million vehicles. The growth rate of production and sales
slowed sharply compared with the previous year to 3.2% and 3% respectively, which were lower than 11.3% and 10.6% compared
with that of the 2016, and the growth was quite weak. 24.718 million passenger vehicles were sold, up 1.4% over the same period.
Among them, SUV sales maintained a rapid growth of 13.3% year-on-year, but a significant slowdown compared with the 2016
growth rate (44.6% in 2016); the sales of MPV declined by 17.1%, the market share of Chinese brands continued to increase,
achieving the growth in both domestic and international markets. In the new energy passenger car field, the production and sales of
the pure electric passenger cars reached 478 thousand and 468 thousand vehicles respectively, up 81.7% and 82.1% y-o-y
respectively with the strong development momentum. The Industrial concentration still maintained a high level, the sales of the top
auto groups sold 25.562 million vehicles, up 3.2%, 0.2% higher than the industry growth rate, accounting for 88.5% of total car sales,
0.2% higher than the previous year. The above data comes from \"China automobile industry production and sales express\" (China
Automobile Industry Association) and its industry information release.
Chongqing Changan Automobile Company Limited 2017 Annual Report
During the reporting period, Changan was guided by the \"Vision 2025\", with the key to \"hitting the pain point, increasing
income and saving money, reforming and innovating, improving the overall aspect\". Changan insisted on the development of
independent innovation and joint venture cooperation to promote the leading plan. The main achievements in the reporting period are
as follows:
1.The position in the industry remaining stable
In 2017, the status of Changan automobile industry remained stable with the sales of 2.872 million cars, ranking the fourth
among China automobile groups with 9.95% market share; The sales of Changan brand and Changan Passenger cars reached 1.663
million and 1.164 million.
2.Accelerate the transformation and upgrading, and start the third-time entrepreneurship
On October 13th, 2017, Changan started \"the third-time entrepreneurship - innovation and entrepreneurship program\", which is
driven by innovation, renders the \"efficiency\" into the core competitiveness of the Company, and adopts the four strategic measures.
Eventually, Changan could achieve the product innovation, brand upgrading, and enterprise transformation.
3.Conform to the general trend of industrial development, and speed up the promotion of new energy strategy
The sales of new energy vehicles increased significantly, and a large number of new energy products were released into the
market rapidly with the annual sales volume of over 60 thousand vehicles, an increase of 180% over the same period. In 2017,
Changan proposed a brand new strategy of new energy - the \"Shangri-La plan\", which aims to complete the construction of three new
energy special platforms through the four major strategic actions of \"100 billion action\", \"ten thousand people research and
development\", \"partner plan\" and \"extreme experience\", completely cancel the sale of traditional fuel vehicles in 2025 and achieve
the electrification of the whole pedigree products.
In the field of intelligent technology, Changan speeds up the transformation from traditional vehicles into intelligent vehicles
and has mastered 60 kinds of intelligent technology in three fields of intelligent interconnection, intelligent interaction and intelligent
driving. Changan has established six major system platforms and five core technologies, and gradually realized the single intelligence
to full automatic driving in four stages.
4. Promising results of structural adjustments, and increasing transformation of independent brands
The automobile industry is undergoing profound changes. Electrification and intellectualization have become the development
direction of the new chain in the automobile industry. Changan complied with the development trend of the industry, and
implemented the product structure upgrading by producing the third-generation independent brand. The restructuring of Changan's
independent brand has achieved initial success with the continuously improving operation quality. The hot sales for the new product
CS55 continued with the total volume of 15 thousand units in the second month after its release, and the average monthly sales of
CS75 from August to December amounted to 24 thousand units, of which the sales volume even reached 27 thousand in September.
5. Integrate global advantages and deepen strategic transformation
Chongqing Changan Automobile Company Limited 2017 Annual Report
As the leader of China's automobile brand industry, Changan actively embraced the Internet and join hands with Baidu,
Alibaba, Wei Lai and other transboundary enterprises to work together in the field of intelligent network and new energy vehicles;
Changan works together with the industrial elites of China FAW, Dongfeng Automobile and other enterprises, and makes progress in
the field of technological innovation and the value chain operation of the automobile industry, the construction of the ecological
circle. Changan must vigorously promote the integration of industry and finance, build Changan financing platform, and launch 100
-billion industrial funds to boost the growth of main business. Changan will intensify the future research on car sharing, travel service
and the new automobile industry ecology; \"Changan travel\" platform is completed. The travel business of time sharing, long and
short rent and trial ride is synchronized in the four cities.
6. Strive to enhance brand value and corporate image
On April 7th, 2017, Changan issued the design concept of \"life dynamic, intelligent and double spin\" in Beijing, and infused
the soul and essence for the brand, and gradually formed the familization of products. In 2017, Changan was selected as the national
technological innovation demonstration enterprise as the only car enterprise, and was re-elected to the CCTV \"national brand plan\".
In the future, Changan will continue to focus on the independent brand, further deepen the cooperation with joint ventures, and
innovate the development mode of the joint venture and cooperation. Changan should vigorously enhance the brand image of
Changan and continue to promote new product introduction and product upgrading according to the market demand. Changan needs
to accelerate the development of new businesses and lays the foundation for the transformation and upgrading. Changan automobile
will carry out the new development concept in the new era of China, regard the new energy technology and intelligent
interconnection as the breakthrough, and rely on its own global coordination and China's leading R & D force to enhance the brand
competitiveness, and accelerate the promotion of new energy and intelligence strategy with a more open mind. The Internet, the big
data, the artificial intelligence and the real economy should be deeply integrated to promote the new round of industrial change and
leapfrog development of China brands.
II. Analysis of Main Business
1、Overview
Whether it is the same as the summary in the business discussion and analysis.
√ Yes □ No
2、Income and cost
（1）Composition of the operating revenue
Unit :Yuan
2017 2016 Increase/decrease
Share of operating Share of operating on a y-o-y basis
Sum Sum
income（%） income(%) (%)
Operating revenue 80,012,205,182 100.00% 78,542,441,757 100.00% 1.87%
Industry
Automobile 80,012,205,182 100.00% 78,542,441,757 100.00% 1.87%
Products
Vehicles 79,980,063,485 99.96% 78,506,025,517 99.95% 1.88%
Chongqing Changan Automobile Company Limited 2017 Annual Report
Outsourcing 32,141,697 0.04% 36,416,240 0.05% -11.74%
Area
China 78,348,298,046 97.92% 77,516,026,598 98.69% 1.07%
Overseas 1,663,907,136 2.08% 1,026,415,159 1.31% 62.11%
（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 80,012,205,182 69,363,032,741 13.31% 1.87% 7.56% Down 4.58 points
Products
Sales of products 79,980,063,485 69,335,887,863 13.31% 1.88% 7.56% Down 4.58 points
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 2017
year-on-year basis (%)
Sales volume 2,872,456 3,063,403 -6.23%
Production volume 2,814,792 3,042,098 -7.47%
Automobile Industry
Stock volume 46,660 37,105 25.75%
Market share（%） 9.95% 10.90% Down 0.95 Points
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
Chongqing Changan Automobile Company Limited 2017 Annual Report
（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
2017
Increase/decrease on a
Industry Ratio in Ratio in
Item year-on-year basis
classification Amount operation cost Amount operation cost
(%)
(%) (%)
Automobile Product Sale 6,933,589 99.96% 6,446,401 99.96% 7.56%
Production Outsourcing 2,714 0.04% 2,360 0.04% 15.00%
Total 6,936,303 100% 6,448,761 100% 7.56%
（6）Notes to the change of the consolidated scope in the reporting year
√Applicable □ Not applicable
During the reporting period, four wholly owned subsidiaries, Yinchuan Changan Automobile Sales Co., Ltd., Xi'an Changan
Automobile Sales Co., Ltd., Changan auto (Group) limited liability Company Harbin sales branch, Liaoning Changan Automobile
Sales Co., Ltd., were liquidated. Therefore, they are no longer included in the consolidated statements in 2017.
（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
Total sales amount to top 5 customers (RMB) 6,326,200,820.88
Proportion of sales to top 5 customers in the annual sales (%) 7.90%
Sales amount of the related party in the top 5 customers（(RMB） 3,540,677,817.43
Proportion of sales amount of the related party in the top 5 customers（%） 4.43%
Top 5 customers
Unit : Yuan
company Sales value proportion in total sales（%） Whether it is a related
Serial No. party
1 First 1,667,512,922.01 2.08% N
2 Second 1,561,916,357.55 1.95% Y
Chongqing Changan Automobile Company Limited 2017 Annual Report
3 Third 1,118,010,081.44 1.40% N
4 Fourth 1,003,042,141.84 1.25% Y
5 Fifth 975,719,318.04 1.22% Y
total 6,326,200,820.88 7.90%
Principal suppliers
Total purchase amount to top 5 suppliers (RMB) 7,980,895,006.58
Proportion of purchase to top 5 suppliers in the annual purchase (%) 11.50%
Purchase amount of the related party in the top 5 suppliers (RMB) 6,001,233,462.54
Proportion of purchase amount of the related party in the top 5 suppliers（%） 8.65%
Top 5 suppliers
Unit : Yuan
Proportion in the total
Serial No. Company name Purchase value Whether it is a related party
purchase(%)
1 First 1,979,661,544.04 2.85% N
2 Second 1,920,824,540.34 2.77% Y
3 Third 1,685,162,025.13 2.43% Y
4 Fourth 1,351,597,111.16 1.95% Y
5 Fifth 1,043,649,785.91 1.50% Y
Total 7,980,895,006.58 11.50%
3、Expenses
Unit: Ten Thousand Yuan
increase/decrease
Item 2017
（%）
Selling expense 397,812 529,374 -24.85%
G&A expense 528,030 512,886 2.95%
Financial expenses -52,497 -30,539 -71.90%
Income tax expense -2,755 7,323 -137.62%
During the reporting period, the significant decrease of financial expenses was due to the increase of bank deposits and the
significant decrease of the income tax expense was due to the decrease of total profit and income tax payables.
4、Research and Development Expenditure
√Applicable □ Not applicable
In 2017, Changan automobile further elevated the strength of scientific and technological innovation. Through the
benchmarking, Changan continued to improve and optimize the project management system with lean process control and focus, and
Chongqing Changan Automobile Company Limited 2017 Annual Report
R&D expense amounted to 3.631 billion yuan in 2017, and promoted more than 400 scientific research projects to carry out
smoothly.
R&D investment Table
2017 2016 Changes in ratio
Labor Number 7,177 6,640 8.09%
Proportion of labor in the Company 18.34% 16.13% Up 2.21 points
Investment value(100 million yuan) 36.31 32.03 13.36%
Proportion of investment in the
4.54% 4.08% Up 0.46 points
revenue
Capitalization(100 million yuan) 10.15 9.45 7.41%
Proportion of capitalization in R&D
27.94% 29.50% Down 1.56 points
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 2017 2016 Increase/decrease（%）
net cash flows from operating activities -136,958 228,655 -159.90%
net cash flows from investing activities 442,799 543,721 -18.56%
net cash flows from financing activity -457,497 -244,965 -86.76%
Net increase in cash and cash equivalents -154,213 526,751 -129.28%
Cash and cash equivalents at end of year 2,145,131 2,299,343 -6.71%
Notes to the year-on-year change of the relevant data by over 30%
√ Applicable □ Not applicable
In 2017, the net cash flow generated from operating activities witnessed a year-on-year decrease of 3.128 Billion Yuan, mainly
resulting from the significant increase of cash payments for purchase of goods or services; the net cash flow generated from financing
activities witnessed a year-on-year decrease of 2.125 Billion Yuan, mainly resulting from the repayment of debts.
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.
Chongqing Changan Automobile Company Limited 2017 Annual Report
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.31,2017 Dec.31,2016
Ratio in Increase/
Ratio in YoY change
Item total decrease instructions
Amount Amount total assets （%）
assets (%)
（%）
（%）
The year-end balance of inventories
and its proportion of total assets
decreased year-on-year mainly
Inventory 466,618.34 4.40% 730,410.68 6.86% -2.46% -36.12% attributed to the optimization of auto
sales finance mode and the reduction
of the inventory from cooperative
financial institutions in 2017
The year-end balance of other
current assets and its proportion of
Other current total assets increased year-on-year
170,591.05 1.61% 92,606.03 0.87% 0.74% 84.21%
assets mainly due to the increase of the
deductible input tax at the end of
2017.
2、The significant changes of the liability
Unit: Ten Thousand Yuan
Dec.31,2017 Dec.31,2016
Ratio in total Ratio in total Increase/de YoY
Item Instructions
Amount assets Amount assets crease (%) change
(%) (%)
The year-end balance of the
accounts receivable and the
proportion of the total assets
Advanced
387,838.26 3.65% 685,433.74 6.44% -2.79% -43.42% decreased year-on-year mainly due
payment
to the increase of customers’
purchase with advance payment at
the end of the reporting period.
Chongqing Changan Automobile Company Limited 2017 Annual Report
The year-end balance of other
payables and the proportion of the
total assets decreased year-on-year
Other payable 259,901.34 2.45% 144,902.86 1.36% 1.09% 79.36%
mainly due to the increase of
payments for construction projects
at the end of the reporting period.
The year-end balance of special
payable and the proportion of the
Special
29,060.72 0.27% 21,749.75 0.20% 0.07% 33.61% total assets increased year-on-year
payable
mainly due to receiving the funds
allocated to the project in 2017.
The year-end balance of deferred
revenue and the proportion of the
Deferred total assets increased year-on-year
362,781.74 3.42% 278,588.56 2.62% 0.80% 30.22%
revenue mainly due to the receipt of an
asset related government subsidy
in 2017.
3、Assets and liabilities measured by fair value
Unit: Ten Thousand Yuan
Comprehensive Cumulative fair Impairment
Amount at year
income in the value change provisions in the Amount at year end
Item beginning
reporting period recorded into equity reporting period
Financial assets
Financial assets available
25,311.50 -7,543.75 14,148.50 16,436.50
for sales
Subtotal of financial assets 25,311.50 -7,543.75 14,148.50 16,436.50
Others
Total 25,311.50 -7,543.75 14,148.50 16,436.50
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
Chongqing Changan Automobile Company Limited 2017 Annual Report
Monetary fund 1,180,231,406.00 Used to open the acceptance deposit
Notes receivable 287,427,970.00 Notes receivable pledge to issue notes payable
Obtain liquidity borrowings and obtain commercial
Intangible assets 45,862,242.27
acceptance bills
Total 1,513,521,618.27
V. Analysis of Investment
1、General information
√ Applicable □ Not applicable
External investment
Investment Amount in the report period
Investment Amount in 2016（RMB） Variance rate
（RMB）
1,217,743,029.48 330,899,566.00 268.01%
Particulars of investees
Company Name Principal business Proportion in the investees’ equity (%
Zhenjiang de Mao Hai Run equity
Engaged in non-securities equity investment
investment fund partnership (limited 32.67%
activities and related consulting businesses
partnership)
Provide car loan; provide vehicle loans and
operating equipment loans to car dealers,
Changan Auto Finance Co., Ltd. including the construction loans of exhibition 28.66%
hall,spare parts loans and maintenance
equipment loans, etc.
The design and development of new energy
Changan NIO new energy Automotive Co.,
vehicles and its components, automobile sales 50%
Ltd.,
and related after-sales services
2、Major equity investment in the reporting period
Unit: Yuan
Progress on Disclosure
Company Principal Investment Investment Share-holding Capital Investment Disclosure
Partner book closing Any litigations date(in
name business mode amount ratio source period index(in case)
date case)
Zhenjiang de Engaged in Merchants Equity Announcement
Mao Hai Run non-securities Equity Its own wealth Asset Indefinite purchase on equity
518,743,029.48 32.67% No 2017-11-1
equity equity investment capital Management duration completed, purchase of the
investment investment Limited, industrial and fund proportions
Chongqing Changan Automobile Company Limited 2017 Annual Report
fund activities and Suzhou gold commercial from Zhenjiang
partnership related Shengshuo registration de Mao Hai Run
(limited consulting Akira procedures (Bulletin No:
partnership) businesses Investment completed 2017-62)
Center
(limited
partnership)
Provide car
loan; provide
vehicle loans
and operating
equipment
Capital
loans to car South Announcement
increase
dealers, Industries,Ch on capital
completed,
Changan Auto including the ongqing Yufu increase to
Increasing Its own Indefinite industrial and 2017-12-2
Finance Co., construction 600,000,000.00 28.66% Asset No Changan Auto
capital capital duration commercial
Ltd. loans of Management Finance Co.,
registration
exhibition Group Co., Ltd. (Bulletin
procedures
hall,spare Ltd. No: 2017-75)
completed
parts loans
and
maintenance
equipment
loans, etc.
The design
and
development
of new energy
Changan NIO vehicles and
Shanghai NIO New
new energy its Newly Its own Indefinite
49,000,000.00 50% Automobile enterprise is No
Automotive components, established capital duration
Co., Ltd. not set up yet
Co., Ltd., automobile
sales and
related
after-sales
services
Total -- -- 1,217,743,029.48 -- -- -- -- -- -- -- --
3、Major non-equity investment in the reporting period
Please refer to Notes V to Financial Statement Item 13” Construction in progress”.
Chongqing Changan Automobile Company Limited 2017 Annual Report
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 0.63% 35,500,000 0.63% 164,365,000 3,550,000 financial
Securities Firm investment
assets
(2) Derivative Investments
□ Applicable √Not applicable
5、Use of raised funds
□ Applicable √Not applicable
VI. Selling of major assets and major equity
1、Selling of major assets
□Applicable √ Not applicable
There is no selling of major assets.
2、Selling of Equity
□Applicable √ Not applicable
There is no selling of major equity.
VII. Analysis of main holding companies and equity companies
√ Applicable □Not applicable
Basic information of main subsidiary companies and shareholding companies which have an impact on over 10%
of net profits
Unit: ten thousand yuan
Main
Registered Equity Total
Name Main businesses operating Net profit
capital held assets
income
Chongqing Changan Automobile Company Limited 2017 Annual Report
Hebei Changan Automobile Co., Ltd. 46,469 94.22% Produce and sell auto and parts 163,027 444,109 3,859
Nanjing Changan Automobile Co., Ltd. 60,181 84.73% Produce and sell auto and parts 163,266 367,773 41,733
Hefei Changan Automobile Co., Ltd. 77,500 100% Produce and sell auto and parts 244,062 521,148 27,169
Baoding Changan Bus Manufacture
3,000 100% Produce and sell auto and parts 340,417 340,622 -5,289
Co., Ltd.
Changan Ford Automobile Co., Ltd 24,100 USD 50% Produce and sell auto and parts 4,532,639 10,602,752 1,217,117
Changan Mazda Automobile Co. Ltd 11,097 USD 50% Produce and sell auto and parts 1,623,115 2,298,317 253,617
Subsidiaries acquired and sold in the reporting period
√ Applicable □ Not applicable
During the reporting period, Four wholly owned subsidiaries, Yinchuan Changan Automobile Sales Co., Ltd., Xi'an Changan
Automobile Sales Co., Ltd., Changan auto (Group) limited liability Company Harbin sales branch, Liaoning Changan Automobile
Sales Co., Ltd., were liquidated. Therefore, they are no longer included in the consolidated statements in 2017.
Acquisition and disposal of subsidiaries On the overall production and operation
Name
during the reporting period and performance impact
Yinchuan Changan Automobile Sales Co.,
liquidation None
Ltd.
Xi'an Changan Automobile Sales Co., Ltd. liquidation None
Changan auto (Group) limited liability
liquidation None
Company Harbin sales branch
Liaoning Changan Automobile Sales Co., Ltd. liquidation None
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 2018, China's economy will enter a new era, from high-speed growth to high quality development. GDP growth is expected
to be 6.5% over the whole year, and the auto industry is expected to increase by 2.2%.
Industry trend: under the drive of \"4 (electric, intelligent, net-linked, lightweight) +2 (sharing, intelligent manufacturing)\", the
automobile industry will usher in the shuffle, and China will become the most important market of \"four modernizations\".
Policy trend: share lift and tariff reduction will bring challenges to the upgrading of Chinese brands and to the Chinese side of
joint ventures. New energy and intelligence have risen to the national strategy, prompting enterprises to upgrade their products and
technologies, and expand their business risks.
Consumption trend: product consumption is upgrading obviously. The compound growth rate is 10.5% for the price of products
higher than 250 thousand yuan, and the compound growth rate is 4.1% for the price of products below 250 thousand yuan. Consumer
demand is diversified, and consumers pursue refined, motorized, cosmetic, cross border and tasteful products.
Competitive situation: the traditional car enterprises have accelerated the strategic transformation to brand upward, new energy,
Chongqing Changan Automobile Company Limited 2017 Annual Report
intelligent network, shared travel and post market, and changed from single manufacturing to the competition in the whole industry
chain. At the end of the era of high profit from joint venture, the profit level will return to normal. The new force will bring new
challenges to traditional car enterprises in terms of business mode, partner mode and talent competition.
2、Development strategy of the Company
Changan takes innovation as the driving force, and renders \"efficiency\" into the core competitiveness of the company; Changan
insists on walking by two legs with strong independent brand and deepening joint venture cooperation to expand new business; with
the four strategies as the grab, Changan will become strong by ripping off the inferior. In 2025, the sales volume of the cars will
reach 6 million and Changan will achieve the goal of world-class car enterprise.
3、Business plan
The business objective of the board of directors of the company in 2018 is: work hard to produce and sell more than 3.1 million
vehicles. In order to realize the above objective, the company will take the concept of \"strengthen the efficiency, promote brand
image, stick to the experience-oriented policy, and achieve the innovation and breakthrough\" as the key, focus on \"four consciousness
- opening, operation, innovation and undertaking\", and insist on the main line of \"four pairs - double growth, double innovation,
double promotion and double reduction\" so as to resolutely realize the goal of the whole year. The key work of the company is as
follows: firstly, make full use of the reform and innovation to fight hard; secondly, unswervingly improve the efficiency and benefit;
thirdly, build a new ecology of the automobile industry; fourthly, achieve the lean and comprehensive promotion of the marketing
system ability; fifthly, make the transition to managing the customers directly; sixthly, make plans of resolutely implementing the
brand strategy; seventhly, speed up the pace of product upgrading in an all-round way; eighthly, work together to fully implement the
Shangri-La plan; ninthly, grasp the three key points with perseverance and passion - quality, cost reduction, data; tenthly, face the
challenge and push forward the joint venture management and control; eleventh, strive to make breakthroughs in the key overseas
markets; twelfthly, bear the mission in mind and give full play to the leading role of the party.
4、Capital requirement and use plan of 2017
In order to achieve the strategic goal of the company, the investment of fixed assets in 2018 is expected to focus mainly on the
investments in capacity construction, product structure adjustment and construction, R & D capacity construction, logistics and
infrastructure construction, technological transformation of safety and environmental protection, technical transformation projects,
overseas research and development projects, new energy and intelligent projects. The company will implement the approval process
of specific projects and disclose the information according to the new projects implementation plan and the relevant regulations of
listing rules. In accordance with the progress of the project and the situation of the company's management and financing
environment, the company needs to study and formulate various channels of fund raising plan and fund use plan, so as to improve the
efficiency of the use of funds and reduce the cost of funds.
5、Possible risks
The adjustment of industrial policy bringing the risk of joint venture: the lifting of the restrictions on the shares proportion,
the accelerating implementation of imported vehicle taxes, the world-class automobile enterprises have increasing power to squeeze
the development space of the independent brands.
Actions: have precise consumer insight, take electrification, intelligence, networking and lightweight as breakthrough, and
create differentiated product charm and DNA.
The risk of joint-venture's profitability: in the next three years it will be a great challenge for joint ventures to achieve the
profit goals due to the slow growth of industry and the aggravation of competition.
Actions: focus on products, speed up the product upgrading and new product introduction, and accelerate the localization of
vehicle parts.
The risk of new energy business development: the demand for new energy points is increasing year by year, and the subsidy
is declining year by year, which forces the enterprise to accelerate the upgrading of products and technology and increases the
pressure of operation.
Chongqing Changan Automobile Company Limited 2017 Annual Report
Actions: reduce losses, cancel the loss-making products, share cost expenditures and accelerate the industrial layout so as to
reduce the loss of new energy business effectively.
X. Registration form for reception, research, communication, interview，etc. during the
reporting period
Type of
Date Manner Reception Index
Object
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.01.11 Agency
Survey Form on Jan.11, 2017 ” issued on http://irm.cninfo.com.cn on Jan.13, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.01.24 Agency
Survey Form on Jan.24, 2017 ” issued on http://irm.cninfo.com.cn on Jan.25, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.01.25 Agency
Survey Form on Jan.25, 2017 ” issued on http://irm.cninfo.com.cn on Jan.25, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.02.09 Agency
Survey Form on Feb.9, 2017 ” issued on http://irm.cninfo.com.cn on Feb.10, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.02.15 Agency
Survey Form on Feb.15, 2017 ” issued on http://irm.cninfo.com.cn on Feb.16, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.02.21 Agency
Survey Form on Feb.21, 2017 ” issued on http://irm.cninfo.com.cn on Feb.23, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.02.22 Agency
Survey Form on Feb.22, 2017 ” issued on http://irm.cninfo.com.cn on Feb.23, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.03.03 Agency
Survey Form on Mar.3, 2017 ” issued on http://irm.cninfo.com.cn on Mar.13, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.03.07 Agency
Survey Form on Mar.7, 2017 ” issued on http://irm.cninfo.com.cn on Mar.13, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.03.10 Agency
Survey Form on Mar.10, 2017 ” issued on http://irm.cninfo.com.cn on Mar.13, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.03.16 Agency
Survey Form on Mar.16, 2017 ” issued on http://irm.cninfo.com.cn on Mar.20, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.04.20 Agency
Survey Form on Apr.20, 2017 ” issued on http://irm.cninfo.com.cn on Apr.21, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.04.24 Agency
Survey Form on Apr.24, 2017 ” issued on http://irm.cninfo.com.cn on Apr.26, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.04.26 Agency
Survey Form on Apr.26, 2017 ” issued on http://irm.cninfo.com.cn on Apr.28, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.04.27 Agency
Survey Form on Apr.27, 2017(Ⅰ) ” issued on http://irm.cninfo.com.cn on Apr.28, 2017
Chongqing Changan Automobile Company Limited 2017 Annual Report
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.04.27 Agency
Survey Form on Apr.27, 2017 (Ⅱ)” issued on http://irm.cninfo.com.cn on Apr.28, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.04.28 Agency
Survey Form on Apr.28, 2017(Ⅰ) ” issued on http://irm.cninfo.com.cn on May.3, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.04.28 Agency
Survey Form on Apr.28, 2017 (Ⅱ)” issued on http://irm.cninfo.com.cn on May.3, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.05.03 Agency
Survey Form on May.3, 2017 ” issued on http://irm.cninfo.com.cn on May.4, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.05.04 Agency
Survey Form on May.4, 2017 ” issued on http://irm.cninfo.com.cn on May.5, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.05.12 Agency
Survey Form on May.12, 2017 ” issued on http://irm.cninfo.com.cn on May.16, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.05.18 Agency
Survey Form on May.18, 2017 ” issued on http://irm.cninfo.com.cn on May.19, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.05.26 Agency
Survey Form on May.26, 2017 ” issued on http://irm.cninfo.com.cn on May.30, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.06.09 Agency
Survey Form on June.9, 2017(I) ” issued on http://irm.cninfo.com.cn on June.12, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.06.09 Agency
Survey Form on June.9, 2017(II) ” issued on http://irm.cninfo.com.cn on June.12, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.06.14 Agency
Survey Form on June.14, 2017” issued on http://irm.cninfo.com.cn on June.15, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.07.04 Agency
Survey Form on July.4, 2017 ” issued on http://irm.cninfo.com.cn on July.6, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.07.14 Agency
Survey Form on July.14, 2017 ” issued on http://irm.cninfo.com.cn on July.17, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.08.31 Agency
Survey Form on Aug.31, 2017” issued on http://irm.cninfo.com.cn on Sep. 1, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.09.06 Agency
Survey Form on Sep.6, 2017 ” issued on http://irm.cninfo.com.cn on Sep.8, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.09.12 Agency
Survey Form on Sep.12, 2017 ” issued on http://irm.cninfo.com.cn on Sep.14, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.09.27 Agency
Survey Form on Sep.27, 2017 ” issued on http://irm.cninfo.com.cn on Sep.29, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.10.12 Agency
Survey Form on Oct.12, 2017 ” issued on http://irm.cninfo.com.cn on Oct.13, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.10.19 Agency
Survey Form on Oct.19, 2017(I) ” issued on http://irm.cninfo.com.cn on Oct.23, 2017
Chongqing Changan Automobile Company Limited 2017 Annual Report
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.10.19 Agency
Survey Form on Oct.19, 2017(II) ” issued on http://irm.cninfo.com.cn on Oct.23, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.10.26 Agency
Survey Form on Oct.26, 2017(I) ” issued on http://irm.cninfo.com.cn on Oct.27, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.10.26 Agency
Survey Form on Oct.26, 2017(II) ” issued on http://irm.cninfo.com.cn on Oct.27, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.11.06 Agency
Survey Form on Nov.6, 2017 ” issued on http://irm.cninfo.com.cn on Nov.8, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.11.14 Agency
Survey Form on Nov.14, 2017 ” issued on http://irm.cninfo.com.cn on Nov.15, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.11.27 Agency
Survey Form on Nov.27, 2017 ” issued on http://irm.cninfo.com.cn on Nov.28, 2017
On-Site For more information, refer to “Changan Automobile: Investor Relation Record
2017.11.30 Agency
Survey Form on Nov.30, 2017 ” issued on http://irm.cninfo.com.cn on Dec.1, 2017
Reception Times
Number of Agencies
Number of Individuals
Number of other entities
Whether to disclose undisclosed important
information No
Chongqing Changan Automobile Company Limited 2017 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
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
2017 annual profit distribution plan is: Based on the existing total shares of 4,802,648,511, distribute cash of RMB 4.46 yuan
(including tax) to all the shareholders every 10 shares.
Chongqing Changan Automobile Company Limited 2017 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
2017 2,141,981,235.91 7,137,234,723.47 30.01%
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%
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) 4.46
The equity base of distribution plan(shares) 4,802,648,511
Total cash dividends (yuan) (tax included) 2,141,981,235.91
Distributable profits (yuan) 36,640,962,334.05
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 2017 is RMB 6,232,347,168.90 yuan, added with early undistributed profit of RMB33,488,484,537.62 yuan, minus
the allocated cash dividend of RMB3,079,869,372.47 yuan during the reporting period, so at the end of 2017 the undistributed
profits can be used for distribution is RMB 36,640,962,334.05 yuan. At the end of 2017, monetary fund balance of the parent
company is RMB 20,634,514,487.95 yuan.
2017 annual profit distribution plan is: Based on the existing total shares of 4,802,648,511, send cash of RMB 4.46 yuan
(including tax) to all the shareholders every 10 shares with total cash of RMB 2,141,981,235.91 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 ment Commitment content Performance
nt time commitment
entity
Chongqing Changan Automobile Company Limited 2017 Annual Report
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
solve the possible competition or
potential competitors, better
maintain the interests of investors,
the company controlling shareholder
The Harbin Hefei Automobile
China Changan made the
Other small Industry Group Co at present is still
China commitment: In two consecutive September,
shareholders running at a loss, The conditions have
Changan years profit of Harbin Hf
commitment not yet reached the profitable for two
Automobile Industry Group Co,
consecutive years.
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.
Chongqing Changan Automobile Company Limited 2017 Annual Report
VI. Explaining the change with last year's financial statements, accounting policies,
accounting estimate and accounting methods
√Applicable □ Not-applicable
During the reporting period, according to the relevant provisions of \"Enterprise Accounting Standards No. sixteenth -
government subsidies\" (Finance [2017]15), since January 1, 2017, the government grants related to daily activities of enterprises
should be included in \"other income\" or offset related costs, and be listed singly on the profit table above the \"operating profit\"; as
for the government subsidies nothing to do with the daily operations of enterprises, it should be included in non-operating income.
The company should make the adjustments to the government subsidies between January 1, 2017 and the effective date of the above
guidelines, and the amount of 1,613,343,216.59 yuan government subsidies should be included in other income in 2017.The change
of the accounting policy related to \"Enterprise Accounting Standards No. sixteenth: government subsidies\" has no effect on the net
profit attributable to shareholders of listed companies, and has no material impact on the semi-annual financial status, the operating
results and cash flow.
According to the Notice of the Ministry of Finance on the revision of the format of the general enterprise financial statements
(accounting [2017]30), the item of \"asset disposal income\" is separately listed above the \"operating profit\" item in the profit
statement, and non-operating income and non-operating expense, originally listed in the account of non-current asset disposal, are
listed in the item of \"asset disposal income\". The comparative profit statement is recounted accordingly. The change of accounting
policy has no effect on the company's net profit and shareholders' equity.
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.
VIII、Compared with financial report for last year, the explanation to the scope change of
consolidated statements
√applicable □ not applicable
During the reporting period, four wholly owned subsidiaries, Yinchuan Changan Automobile Sales Co., Ltd., Xi'an Changan
Automobile Sales Co., Ltd., Changan auto (Group) limited liability company Harbin sales branch, Liaoning Changan Automobile
Sales Co., Ltd., were liquidated. Therefore, they are no longer included in the consolidated statements in 2017.
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
Chongqing Changan Automobile Company Limited 2017 Annual Report
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 first extraordinary shareholders' general meeting of 2017, the company hired Ernst
&Young Huaming certified public accountants (special ordinary partnership) as the company's 2017 annual internal control audit
certified public accountants. In 2017 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.
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 restructure related matters occur.
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
The company has disclosed in June 1, 2017 \"The 2016 annual notice of the implementation of equity distribution\", with the
company's existing total share capital of 4,802,648,511 shares as the base, to all shareholders 6.42 yuan cash dividends (including tax)
per 10 shares. According to the company's stock option incentive plan (Revised Draft), the relevant provisions on the stock option
price adjustment, if dividends and capital reserve capitalization, stock dividends, stock split delivery, allotment, issuance or reduced
matters occur before the stock exercise, the stock option price should be adjusted. The exercise price of the adjusted stock option is
13.478 yuan.
Chongqing Changan Automobile Company Limited 2017 Annual Report
In 2016, the company granted the stock option plan (Option abbreviation: Changan JLC1, Option code: 037046).The stock
options entered into the waiting period.
XVI. Significant related party transactions
1、Related transactions related to day-to-day operation
For details, please refer to Note 9 \"Related Party Relationships and Transactions\" in the Financial Statements.
2、Assets or equity acquisition, sales related transactions
For details, please refer to Note 9 \"Related Party Relationships and Transactions\" in the Financial Statements.
3、Related transactions of common investment
√Applicable □Not-applicable
For details, please refer to Chapter four \" Major equity investment in the reporting period \" in the Financial Statements.
4、Related rights and debt relations
√Applicable □Not-applicable
For details, please refer to Note 9 \"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
Related Transactions Announcement that China South Industry
Group Finance Co.,Ltd provides financial service for the company 2017.3.25 http://www.cninfo.com.cn
（Note 1）
Related Transactions Announcement about approving of United
2017.3.25 http://www.cninfo.com.cn
Prosperity (Hong Kong)Investment Co., Ltd trade financing
Related transaction announcement that Chongqing Automobile
2017.3.25 http://www.cninfo.com.cn
Finance Co.,Ltd provides financial service（Note 2）
Announcement about increasing estimated amount of 2017 daily
2017.4.18 http://www.cninfo.com.cn
related transaction
Chongqing Changan Automobile Company Limited 2017 Annual Report
Announcement about increasing estimated amount of 2017 daily
2017.11.24 http://www.cninfo.com.cn
related transaction
Announcement on capital increase to Changan Auto Finance Co.,
2017.12.23 http://www.cninfo.com.cn
Ltd.
Note 1：Changan Automobile has signed a Financial Service Agreement with China South Industry Group Finance Co.,Ltd and
strictly implemented the approval procedures from BOD meeting and Shareholders' meeting. In accordance with \" Administrative
Measures for Financial Companies of Enterprise Groups\" issued by CBRC, Changan Automobile reviewed China South Industry
Group Finance Co.,Ltd and issued a risk assessment report.(For details, please refer to \" A report on risk assessment of China South
Industry Group Finance Co.,Ltd \" disclosed on http://www.cninfo.com.cn on April, 4th 2018)
In 2017, China South Industry Group Finance Co.,Ltd will provide the following services for the company:
①Provide the maximum deposit balance of not more than 4.5 billion, and the deposit interest rates should not be lower than that of
other domestic financial institutions over the same period;
②Provide the maximum credit total of 7 billion yuan and related credit services, the credit rate provided by the finance Company for
Changan Automobile should not be higher than that of other domestic financial institutions over the same period;
③Provide the maximum credit total of 10 billion auto financial services and other financial services, and set the prices for financial
services in accordance with the standards not higher than market fair prices or national standards.
Note 2：Changan Automobile has signed a Financial Service Agreement with Changan Automobile Fiannce Co.,Ltd and strictly
implemented the approval procedures from BOD meeting and Shareholders' meeting. In accordance with \"Administrative Measures
for Motor Financing Companies\" issued by CBRC, Changan Automobile reviewed Changan auto finance and issued a risk
assessment report.(For details, please refer to \" A report on risk assessment of Changan Automobile Finance\" disclosed on
http://www.cninfo.com.cn on April, 4th 2018)
In 2017, Changan auto Finance will provide the following services for the company:
①Provide the maximum deposit balance of not more than 1.5 billion, and the deposit interest rates should not be lower than that of
other domestic financial institutions over the same period;
②Provide the maximum credit total of 3 billion auto financial services and other financial services, and set the prices for financial
services in accordance with the standards not higher than market fair prices or national standards.
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.
Chongqing Changan Automobile Company Limited 2017 Annual Report
（3）Leasing
√Applicable □Not-applicable
Information about leasing
Related party rental situation can be found in the note nine 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.
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 2017, 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.
Chongqing Changan Automobile Company Limited 2017 Annual Report
1、 The designated \"two counties\" of poverty alleviation in Yunnan in 2017
(1) 11.8 million yuan of funds for poverty alleviation and donation in Luxi County
a.The industrial poverty alleviation project: firstly, Changan donated 1.4658 million yuan for the comprehensive construction
project for the processing and packing of fruit and vegetable and the annual treatment of 600 tons of fruit and vegetable cold storage
by the village committee of Xiangyang Township. Secondly, Changan donated 1.5342 million yuan for the base project for the
construction of 230 vegetable sheds and the supporting facilities of the Bai village committee of Xiangyang Township.
b.The education and poverty alleviation project: the special training of teachers' ability in the health care construction and
the employment projects of the students' old-age nursing training with the investment of 797 thousand yuan.
c. The poverty alleviation project of the people's Livelihood: firstly, according to the principle of unified evaluation, unified
construction and strict control of the area, the poor housing reform projects are carried out for the poor households in Xiangyang
Township and SanTang Township with the investment of 5.44 million yuan; secondly, Changan conducted other poverty alleviation
projects with the investment of 18 thousand yuan; thirdly, Changan used the vehicles for the poverty project and donated 20 Changan
brand cars, with the value of 1.17188 million yuan (58.594 thousand yuan per car); lastly, 14 medical emergency vehicles were
allocated in 10 township and county hospitals, traditional Chinese medicine hospitals, maternal and child health planning service
centers and disease prevention and control centers, with the value of 1.37312 million yuan (98.08 thousand yuan per car).
(2) 13.2 million yuan of funds for Poverty alleviation in Yanshan County
a. The industrial poverty alleviation project: firstly, Changan invested about 4 million yuan on the construction of 2500 mu
fruit tree planting base(5 years of cooperation period) in Pingyuan Town; secondly, Changan invested about 2 million yuan in the 700
mu plant vegetables (3 years of cooperation) in Bagazena town.
b. The education and poverty alleviation project: firstly, the construction of the Changan auto 4S teaching and training base
is following the project in 2016 and configured the corresponding automobile teaching equipment with the value of 1 million yuan;
secondly, the genuine South Industries- subsidizing poor students in Yanshan County about 4.2 million yuan: 1000 yuan / people for
high school students , and 2000 yuan / people for professional high school students. 5000 yuan / people for college students.
c. The poverty alleviation project of the people's Livelihood: firstly, renovate the shattered house for 178 incompetent
families, and build 178 sets of housing with the value of 1.6 million yuan; secondly, emergent rescue: the construction of the flood
disaster of the village of Kihei village with 200 thousand yuan; thirdly, build 5 townships (towns) E-commerce service station, and
focus on building 10 villages (community) e-commerce service points with the investment of 1 million yuan; fourthly, the medical
vehicle poverty alleviation: configure a total of 10 medical emergency vehicles in 9 township hospitals with investment of 1 million
yuan (100 thousand yuan / car).
In addition, the company launched consumption poverty alleviation, and the employees voluntarily purchased Luxi plateau
pear for 33180 Jin, with the total value of 157.42 thousand yuan.
2、Designated poverty alleviation in Chongqing \"one county and one area\" in 2017
(1) According to the notice of the leading group of the Chongqing development and Reform Commission on the aid of the poor
group and carrying out the 2017 counterpart donation (2017-03 Notice), Changan automobile donated 300 thousand yuan in cash to
Pengshui County, which is used in the construction of the rural roads and the town facilities in one town, one township, and two
villages (long Se Town, Di Tang Township, Yan Jiao Village and Xiaoping Village).
(2) Changan, following the Chongqing Municipal Development and Reform Commission, went to Pengshui County and
checked the poverty alleviation work in 2017, and conducted the research of the poverty alleviation work in 2018; the representatives
from Changan listened to the report of poverty alleviation work in San Yi Township, and inspected the two production bases of sweet
potato powder. The two sides negotiated on the purchase of sweet potato powder and vermicelli for the Company’s staff canteen.
Chongqing Changan Automobile Company Limited 2017 Annual Report
(3) According to the Circular of the people's Government Office of Jiangbei District, the Jiangbei District of Chongqing on the
proposal for the work proposal of the helping member unit in 2017 (2017-100 Notice), Changan automobile donated cash 200
thousand yuan to the Kai Zhou District, which is used for the interior refurbishment of the central primary school teaching building in
Zhen An town.
2017 targeted poverty alleviation of Changan Automobile statistical table
Indicator Unit Amount
Overall Performance
including：1 Fund 10 thousand yuan 2530.742
2. Materials converted into cash 10 thousand yuan
Project Input
1.Industrial poverty alleviation
1.Fruit and vegetable processing and packaging comprehensive
Among:
construction project in Xiangyang Township of Luxi county.
1.1 poverty alleviation categories 2.Vegetable greenhouse base construction project in Xiangyang
Township of Luxi County
3.Fruit tree planting project in Pingyuan town of Yanshan
County
4. Vegetable planting base project in BaGa town of Yanshan
County Rural
1.2 poverty alleviation fund 10 thousand yuan
2. poverty alleviation on education - -
2.1 Input in poverty alleviation of poor
10 thousand yuan
students
2.2 The input of improving the
10 thousand yuan 179.7
poor-stricken area
3. Health poor-stricken area
3.1 Input in medical and health resources
10 thousand yuan 237.312
in poverty-stricken areas
4. other projects
Chongqing Changan Automobile Company Limited 2017 Annual Report
4.1 Amount of money 10 thousand yuan 958.73
3、The following targeted poverty alleviation plan
In 2018, 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
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. Waste water mainly comes from the treatment of surface
treatment wastewater, spray painting wastewater and oil containing wastewater before the coating workshop, which is discharged
after physicochemical and biochemical treatment. The exhaust gas is mainly painted waste gas and flue gas. The exhaust gas of the
spray paint is absorbed, concentrated and burned, and the exhaust gas of the oven is discharged after burning. Two sulfur oxide and
nitrogen oxide are mainly from the waste gas from the clean energy of natural gas. All of the exhaust gases from energy and natural
gas combustion are organized emissions. During the reporting period, there were 216 air pollutant outlets and 14 water pollutant
outlets. The emission standards were strictly implemented according to the national sewage comprehensive discharge standard, the
water pollutant discharge standard in Beijing, the national standard for the comprehensive emission of air pollutants, the standard for
the emission of air pollutants on the surface of automobile manufacturing in Chongqing, the standard for the comprehensive emission
of air pollutants, and the vehicle Manufacturing industry (painting process) air pollutant emission standard in Beijing, national
industrial enterprise boundary environmental noise emission standard and so on. The total emission of major pollutants: 169.58 tons
of chemical oxygen, 28.08 tons of ammonia nitrogen, 69.33 tons of sulfur dioxide and 228.99 tons of nitrogen oxides. All the
pollutants in the company are discharged, and there is no excess total emission.
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. In November 2017, the
three party certification was replaced by environmental management system.
In 2017, more than 10 environmental protection measures were implemented by the company, and the cumulative environmental
investment was 200 million yuan. The main projects included the VOC terminal treatment project in Beijing Changan, the Hefei
Changan painting VOC end treatment project, the Changan low nitrogen burner transformation, the new sound insulation screen in
the North factory of Yubei factory, and so on. The Company shouldered the social responsibility.
Administrative licensing of environmental impact assessment and other environmental protection for construction projects.
In accordance with the regulations of the State Council on environmental protection and management of construction projects,
the People's Republic of China Environmental Impact Assessment Law, the regulations on environmental protection in Chongqing,
and the Interim Measures for the construction project completion of environmental protection and acceptance by the Ministry of
environmental protection of the state, the environmental impact assessment and completion ring of the new, modified and expanded
projects are required and strictly enforce the environmental impact assessment system and the \"Three Simultaneity\" system.
In 2017, 6 construction projects, such as VDC (vehicle allocation center), new energy battery system (one phase) and emission
Chongqing Changan Automobile Company Limited 2017 Annual Report
test room, have been approved, and the environmental protection site acceptance of the second phase construction project of
Dianjiang comprehensive test yard has been completed, and the acceptance approval of the Dianjiang county environmental
protection Bureau has been obtained; initiate structural adjustment of the passenger car and engine capacity. Independent
environmental acceptance of 3 construction projects in H series engine parts casting production line is raised.
Carry out environmental protection risk management, and enhance emergency response capacity
The Company continued to carry out environmental protection emergency drills to enhance the response capacity to
environmental emergencies. In 2017, The Company completed the revision and filing of the environmental risk assessment and
emergency plan for the mould department, the General Automobile Research Institute and the Power Research Institute. There are 3
emergency exercises at the company level, 12 exercises from the factory level, and 68 exercises from the workshop level.
The Company continued to strengthen the environmental risk management and control, and prevent unexpected environmental
incidents. Under the background of the operation qualification of the pollution control facilities being cancelled, in order to improve
the management level of wastewater treatment facilities, standardize the operation and management of wastewater treatment facilities,
ensure the normal operation of wastewater treatment facilities and reduce the risk of illegal environmental protection. On the basis of
on-the-spot investigation of the operation and management of wastewater treatment facilities in various manufacturing plants,
according to the requirements of relevant laws and regulations and combined with the actual conditions of the company, the
requirements are standardized for the operation and management of waste water in various manufacturing plants
Strictly implement Disclosure System of Information
In 2017, 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.
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 \"
Chongqing Changan Automobile Company Limited 2017 Annual Report
Specific description
1. Whether the company has passed the environmental
Yes
management system certification（ISO14001）
Beijing Changan carried out the project of boiler and
refrigeration on the low nitrogen burner transformation and the
2. Company \"waste gas, waste water, waste residue\" three-waste
concentration of nitrogen oxide emission decreased from about
reduction performance
120mg/m3 to less than 30mg/m3; and Beijing Changan reused
36,335 tons wastewater and 120,818 tons of solid waste.
3. Amount of annual environmental protection investment in
15,120
2017 (10 thousand)
4. The company invests in upgrading the ability of employees to
improve their personal knowledge and skills to enhance their 2015.42
career development (10 thousand）
5. The amount of corporate social donations (funds, materials,
3130.89
free professional services) (10 thousand)
XIX. Other important events
√Applicable □Not-applicable
Changan announced in March 16th, 2018 that the company's controlling shareholder China Changan planned to transfer the
1,035,312,673 A shares (21.56% of the total shares) to South Industries without any compensation. The share transfer is the
adjustment of the assets structure within South Industries. After the completion of the share transfer, it will be beneficial for the
Chongqing Changan to refine and expand the car business and further promote the development of Chongqing Changan.
The holding shareholder and the actual controller will not change after the share transfer. The holding shareholder is still China
Changan, and the actual controller is still South Industries. The share transfer shall be implemented after the approval of the SASAC
of the State Council, and complete the registration of ownership transfer and the registration of industrial and commercial change.
XX. Important matters of the Company's subsidiary
□Applicable √Not-applicable
Chongqing Changan Automobile Company Limited 2017 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 139,781,303 2.91% 139,781,303 2.91%
1、State-owned legal person
139,762,403 2.91% 139,762,403 2.91%
shares
2、Senior management
18,900 0.00% 18,900 0.00%
personnel shares
Circulated shares 4,662,867,208 97.09% 4,662,867,208 97.09%
1、Domestic listed RMB
3,760,881,066 78.31% 3,760,881,066 78.31%
shares
2、Domestic listed foreign
901,986,142 18.78% 901,986,142 18.78%
shares
Total shares 4,802,648,511 100.00% 4,802,648,511 100.00%
Reason of stake changes
□ applicable √ not applicable
Approval of stock changes
□ applicable √ not applicable
Ownership transfer of stake change
□ applicable √ not applicable
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
Other contents which the company regards necessary and securities supervising institution requires the Company to disclose.
Chongqing Changan Automobile Company Limited 2017 Annual Report
□ applicable √ not applicable
2. Change in Non-circulated shares
√ Available □Not-available
Unit：one share
Non-circulated Non-circulated
Name of Decrease during the Increase during the Reason for Date for the
shares held at the shares held at the
shareholders reporting period reporting period non-circulated shares circulated shares
year-beginning year-end
Non - public
China Changan
offering shares of
Automobile Co., 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 139,781,303 - - 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
3. Existing internal staff shares
□ Available √ Non available
Chongqing Changan Automobile Company Limited 2017 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
200,134 .A shareholders: 170,132. B shareholders: 30,002.
shareholders
One month before the end of the disclosure of the
200,969 .A shareholders: 170,734. B shareholders: 30,235.
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
State-owned
China Changan No pledge or
legal person 40.88 1,963,357,619 - 139,762,403 1,823,595,216
Automobile Co., Ltd. freeze
shares
domestic
China securities No pledge or
general legal 4.21 202,044,821 62,621,894
finance Co, Ltd freeze
person shares
United Prosperity
foreign legal No pledge or
Investment Co., 2.23 107,267,728 62,072,628
person shares freeze
Limited
GIC PRIVATE foreign legal No pledge or
1.68 80,893,572 12,497
LIMITED person shares freeze
domestic
Central Huijin No pledge or
general legal 1.15 55,393,100 -
Investment Ltd. freeze
person shares
VALUE PARTNERS
foreign legal No pledge or
HIGH-DIVIDEND 0.81 38,911,038 -
person shares freeze
STOCKS FUNDS
Anbang AM-China
Merchants Bank- fund, finance No pledge or
0.67 32,070,942 -
Anbang Asset -Win - products, etc. freeze
win No. 3 AM Product
Anbang AM-China
Minsheng Bank- fund, finance No pledge or
0.65 31,082,094 31,082,094
Anbang Asset -Refined products, etc. freeze
Mix No. 5 AM Product
Monetary Authority of foreign legal 0.54 25,908,297 -2,290,683 No pledge or
Chongqing Changan Automobile Company Limited 2017 Annual Report
Singapore person shares freeze
HERMES
foreign legal No pledge or
INVESTMENT 0.47 22,434,113 22,434,113
person shares freeze
FUNDS PLC
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. belongs to the concerted
action alike of above shareholders
actor 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 202,044,821 RMB ordinary shares 202,044,821
Domestic listed foreign
United Prosperity Investment Co., Limited 107,267,728 107,267,728
shares
GIC PRIVATE LIMITED 80,893,572 RMB ordinary shares 80,893,572
Domestic listed foreign
Central Huijin Investment Ltd. 55,393,100 55,393,100
shares
VALUE PARTNERS HIGH-DIVIDEND STOCKS
38,911,038 RMB ordinary shares 38,911,038
FUNDS
Anbang AM-China Merchants Bank- Anbang Asset Domestic listed foreign
32,070,942 32,070,942
-Win - win No. 3 AM Product shares
Anbang AM-China Minsheng Bank- Anbang Asset
31,082,094 RMB ordinary shares 31,082,094
-Refined Mix No. 5 AM Product
Monetary Authority of Singapore 25,908,297 RMB ordinary shares 25,908,297
Domestic listed foreign
HERMES INVESTMENT FUNDS PLC 22,434,113 22,434,113
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 belongs 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
transactions during the reporting period
Chongqing Changan Automobile Company Limited 2017 Annual Report
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 Zhang Baolin 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
Xu Ping 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
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.
Chongqing Changan Automobile Company Limited 2017 Annual Report
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.
100%
CHINA CHANGAN AUTOMOBILE GROUP CO., LTD.
100%
United Prosperity (Hong Kong) Investment Co., Ltd.
40.88%
2.23%
Chongqing Changan Automobile Co., Ltd.
China Aviation Industry Group Co., Ltd. has transferred 23% of the shares of China Changan to South Industries in 2017. By
the end of the report, China Changan is a wholly owned subsidiary of South Industries.
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 2017 Annual Report
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 2017 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
Gend Term held at
Name Position As state Age Term start date number in number in at the
er Termination date beginning
this issue this issue end
（stock）
（stock） （stock） （stock）
Zhang
Chairman present M 55 2017-09-22 2019-03-23
Baolin
Director,
Zhu Huarong present M 52 2016-03-23 2019-03-23 25,200 - - 25,200
President
Director,
Zhou secretary of
present M 47 2016-03-23 2019-03-23
Zhiping the party
committee
Tan
Director present M 54 2016-03-23 2019-03-23
Xiaogang
Wang
Director present M 44 2016-03-23 2019-03-23
Xiaoxiang
independent
Liu Jipeng present M 61 2016-03-23 2019-03-23
director
independent
Li Qingwen present M 62 2016-03-23 2019-03-23
director
Tan independent
present M 47 2016-03-23 2019-03-23
Xiaosheng director
independent
Pang Yong present M 48 2016-03-23 2019-03-23
director
Chen independent
present M 72 2016-03-23 2019-03-23
Quanshi director
Ren independent
present M 61 2017-09-20 2019-03-23
Xiaochang director
independent
Wei Xinjiang present M 48 2017-09-20 2019-03-23
director
Dong Chairman of present M 53 2017-12-16 2019-03-23
Chongqing Changan Automobile Company Limited 2017 Annual Report
Qihong the
supervisory
Sun Dahong Supervisor present M 51 2016-03-23 2019-03-23
Zhao Huixia Supervisor present M 57 2016-03-23 2019-03-23
Zhang Employee
present M 58 2016-03-23 2019-03-23
Anguo Supervisor
Employee
Luo Yan present F 43 2016-03-23 2019-03-23
Supervisor
Huang Vice
present M 49 2016-03-23 2019-03-23
Zhongqiang president
Luo Vice
present M 54 2016-03-23 2019-03-23
Minggang president
Vice
Gong Bing present M 48 2016-03-23 2019-03-23
president
Vice
Wang Jun present M 45 2016-03-23 2019-03-23
president
Vice
Liu Bo present M 51 2016-03-23 2019-03-23
president
Vice
He Chaobing present M 50 2016-03-23 2019-03-23
president
Zhang Vice
present F 52 2016-03-23 2019-03-23
Jingjing president
Yuan Vice
present M 49 2016-03-23 2019-03-23
Mingxue president
Vice
Li Wei present M 52 2016-03-23 2019-03-23
president
Vice
Tan Benhong present M 42 2017-08-31 2019-03-23
president
Liu Vice
present M 52 2017-11-24 2019-03-23
Zhengjun president
Zhang Vice
present M 43 2018-1-27 2019-03-23
Deyong president
Board
Li Jun present F 48 2016-03-23 2019-03-23
Sectary
Xu Liuping Chairman departure M 53 2016-03-23 2017-09-22
Director/Vice
Wang Kun president/ departure M 42 2016-03-23 2018-01-27
Board
Chongqing Changan Automobile Company Limited 2017 Annual Report
Sectary
independent
Hu Yu departure M 45 2016-03-23 2017-02-11
director
Chairman of
Xiao Yong the departure M 47 2016-03-23 2017-11-24
supervisory
Vice
Du Yi departure M 50 2016-03-23 2017-05-06
president
Total 25,200 - - 25,200
Ⅱ. Personnel Changes of directors, supervisors and senior management
Name Position Type Term Reason
Zhang Baolin Chairman elected 2017-09-22 recruitment for work needs
Ren Xiaochang independent director elected 2017-09-20 recruitment for work needs
Wei Xinjiang independent director elected 2017-09-20 recruitment for work needs
Chairman of the
Dong Qihong elected 2017-12-16 recruitment for work needs
supervisory
Zhang Deyong Vice president elected 2018-01-27 recruitment for work needs
Tan Benhong Vice president elected 2017-08-31 recruitment for work needs
Liu Zhengjun Vice president elected 2017-11-24 recruitment for work needs
Xu Liuping Chairman departure 2017-09-22 Work change
Hu Yu independent director departure 2017-02-11 resignation for personal reasons
Chairman of the
Xiao Yong departure 2017-11-24 Work change
supervisory
Du Yi Vice president departure 2017-05-06 Work change
Director/Vice president/
Wang Kun departure 2018-01-27 Work change
Board Sectary
Ⅲ. Employment
Main working experience of present directors, supervisors and senior managers of the last five years
1、Directors
Mr. Zhang Baolin, 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 member of the Party Group and the Vice General Manager of China
South Industries Group, the Secretary of the Party Committee, the Chairman and President of China Changan Automobile Co, Ltd
and the Chairman of Chongqing Changan Automobile. He used to work as Vice Secretary and Secretary of the League Committee of
Chongqing Changan Automobile Company Limited 2017 Annual Report
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., the President of the Company, the vice secretary of the
Party Committee of China Changan, the president assistant of South Industries Group, the vice Chairman of the Company .
Mr. Zhu Huarong, Director and President. He was born in 1965, master graduate student, researcher-level senior engineer.
Currently he is the president assistant of South Industries Group, the vice secretary of party committee and director of China
Changan Automobile Group and the director 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, 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. 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.
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. 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
Financial Co. of CSGC.
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 and the vice Chairman of China Enterprise
Reform and Development Research Association. 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 automobile comments of 120,000 letters altogether, and 50,000 letters regarding media essay. China Auto
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
Chongqing Changan Automobile Company Limited 2017 Annual Report
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 University. 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 Automobile 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).
Mr. Ren Xiaochang, independent director, was born in 1956, bachelor's degree. He served as the chairman and general manager
of China Automobile Engineering Research Institute, the group expert of the 12th Five-Year plan national key science and
technology special (EV) projects, and the committee member of the first national strategic emerging industry development expert
advisory committee. He is the expert of the Chinese machinery industry science and technology, the special subsidy expert of the
State Council and the evaluation expert of the national science and technology award. The main social part-time jobs include the
deputy director of the China Automobile Engineering Society, the deputy director of the academic committee of the State Key
Laboratory for automobile body advanced design and manufacture of Hunan University, the deputy director of the technical
committee of the State Engineering Laboratory of electric vehicles, and the state key experiment on automobile safety and energy
saving of the Tsinghua University, and the member of the academic committee of China Academy of international engineering. Its
main research and scientific research projects have won the awards such as provincial and ministerial level and scientific and
technological progress awards, including 3 second-level awards and 3 third-level awards.
Mr. Wei Xinjiang, independent director, was born in 1969, PHD. He is currently a senior commissioner of China Life Insurance
(Group) company strategic planning department / China Life Financial Insurance Research Center (assistant general manager of
department). He was engaged in teaching and scientific research for 13 years at the International Investment Department of the
Chinese Academy of Finance and the Institute of Finance and economics of foreign trade and Economy University. He studied at
Holland business school, the University of Birmingham, the European Commission and the United Nations Hague International
Court of justice for 3 years. He is the expert in international business, overseas M & A, operation of capital market and so on. It has
rich research on finance, insurance, overseas investment, and comprehensive finance and so on. He also served as a part-time
professor and postgraduate instructor of the International College of Renmin University of China, Xi’an Jiaotong-Liverpool
University and the Holland business school. He has published nearly 150 papers in international and domestic journals, and 8 books,
such as the fraud and anti-fraud of automobile insurance, the comparative study of the anti-monopoly policies between the United
States and the EU, and the analysis of the accounting statements and investment value of the enterprises.
2、Supervisors
Mr. Dong Qihong, chairman of the board of supervisors, born in 1964, bachelor’s degree and senior engineer. He is the inspector
of Audit Department of South Industry Group. He was a deputy secretary and Secretary of the Committee of the Qingshan machinery
plant, deputy director of the motorcycle accessories Branch of Qingshan machinery plant, vice department head, deputy secretary of
Chongqing Changan Automobile Company Limited 2017 Annual Report
Party branch, department head, Party branch secretary of the industrial and labor department of Qingshan Industry, deputy general
manager, general manager, Deputy Secretary of the Party committee, Secretary of the Party committee, Secretary of Discipline
Inspection Commission, chairman of the labor union, director of Qingshan industry, deputy general manager and general manager of
Chongqing Qingshan transmission branch, vice director and director of audit and risk department in South Industries Group, the
Chairman, Party Secretary of the Party committee of Baoding Print-Rite group, the inspector of audit and risk department in South
Industries Group and the inspector of supervision department in South Industries Group.
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 South Industries Group. He used to be the vice director of legal division under the general
office in China South Industries Group, vice director and director of Legal Advisor Division in China South Industries Group, and
director of Legal Affairs Division of general office of South Industries Group.
Mr. Zhao Huixia, Supervisor. He was born in 1960, bachelor degree, senior account. Currently, he is the professional senior staff.
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, and Assistant President and general manager
of Audit Department (legal affairs) in China Changan.
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
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, 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. 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 South Industries Group, the general manager of Chongqing South Motorcycle Limited Liability
Company, the general manager and the party secretary of the car sales department.
Mr. Wang Jun, Vice President and general manager of commercial vehicle department. Born in 1972, 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
Chongqing Changan Automobile Company Limited 2017 Annual Report
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, President of Changan Automobile Engineering
Research Institute.
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. She
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.
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 deputy vice president and the Secretary of the Party
Committee of Changan Automotive Engineering Research Institute.
Mr. Tan Benhong, the vice president and the director and Secretary of the Party branch of the Institute of styling design. Born in
1975, master’s degree, engineer. He was the deputy director of the Changan company Automobile Technology Department, the
product technology manager of the Nanjing factory of Changan Ford Automobile Co., Ltd., the deputy director of the reception office
and the secretarial reception department of the Changan Company office, the director of the technical Planning Institute of the
Automobile Engineering Research Institute, the deputy chief engineer of the Automobile Engineering Research Institute and the
director of the Institute of technical planning and research, the Vice president of the General Academy of automobile engineering
research, Dean of Beijing Research Institute, the department head of market department, brand public relations, product planning
department, and vice deputy President and Secretary of the Party committee of the Research Institute, and the spokesman of company
news.
Mr. Liu Zhengjun, vice president, born in 1965, bachelor's degree and senior engineer. Currently, he is the Chairman of Haifei
Automobile, and the chief economist of China Changan. He was the deputy director and director of the inspection department of the
quality department in the company, the vice department head and department head of the quality department of the Company, the
director of the office of the quality division, the general manager and party secretary of the Hebei Changan Automobile Co., Ltd., the
vice chairman and general manager of Hafei automobile, and the chief economist of the China Changan.
Mr. Zhang Deyong, vice president, born in 1974, MPAcc, senior accountant. He is vice president of the Company and the head
of the capital operation Department of the Company. He was the director, the chief accountant, and a committee member of the Party
committee of the Chongqing Changan Industry Group. The deputy director (registered) of finance department in South Industries, the
Chongqing Changan Automobile Company Limited 2017 Annual Report
director, the chief accountant, the committee member of the Party committee of Chongqing Changjiang Electrician Co., Ltd., the
deputy director (registered) of the Finance Department of South Industries Group, the deputy director, director of finance department
and the assistant president in the Institute of Automation of South Industries Group.
Ms. Li Jun, the Secretary of BOD and the Vice Director of Capital Operation 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, Vice director of the finance department of the Company.
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
secretary of the party
Zhangbaolin China Changan Y (January-April)
committee, chairman, president
director, vice secretary of the
Zhu Huarong China Changan N
party committee
the Assistant President and
general manager of Audit
Zhao Huixia China Changan Y
Department (legal affairs) in
China Changan
the chief economist of China Y
Liu Zhengjun China Changan
Changan (January-November)
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.
Dean of research institute of China
China University of University of Political Science and
Liu Jipeng Political Science and Law, professor and PHD tutor. Vice Y
Law president of China Enterprise Reform
and Development Society
Chongqing Changan Automobile Company Limited 2017 Annual Report
Chairman of China Energy&
China Energy& Automobile Media Group, Chairman
Li Qingwen Automobile Media of China Auto News Co.,Ltd, Y
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
China Life Insurance
Wei Xinjiang Senior Manager Y
(Group)
The inspector of Audit Department of
Dong Qihong China South Group Corp Y
South Industry Group
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 South Industries 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.
The basis: 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 gives democratic evaluation on all the senior management and does special visit to part of unit, and the
assessment results are related to the targeted training, position promotion, post communication training and post appointment of the
senior management; new office head \"look back\" examination is mainly to look back the adjusted team, understand the working
Chongqing Changan Automobile Company Limited 2017 Annual Report
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 2017, the remuneration the directors, supervisors and senior
managers receiving from the company is 15.2019 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)
Zhang Baolin Chairman of the board M 55 Present -
Zhu Huarong Director and President M 52 Present 1,257,631
Director, Secretary of Party
Zhou Zhiping M 47 Present 1,252,413
Committee,
Tan Xiaogang Director M 54 Present -
Wang
Director M 44 Present -
Xiaoxiang
Director, Vice President, the
Wang Kun M 42 Present 1,024,365
Secretary of BOD (replace)
Liu Jipeng Independent Director M 61 Present 120,000
Li Qingwen Independent Director M 62 Present 120,000
Tan
Independent Director M 47 Present 120,000
Xiaosheng
Pang Yong Independent Director M 48 Present 120,000
Chen Quanshi Independent Director M 72 Present 120,000
Ren
Independent Director M 61 Present 30,000
Xiaochang
Wei Xinjiang Independent Director M 48 Present 30,000
Dong Qihong Chairman of the supervisory M 53 Present -
Sun Dahong Supervisor M 51 Present
Zhao Huixia Supervisor M 57 Present -
Zhang Anguo Employee Supervisor M 58 Present 187,116
Luo Yan Employee Supervisor F 43 Present 215,986
Huang
Vice President M 49 Present 1,028,694
Zhongqiang
Luo
Vice President M 54 Present 1,028,405
Minggang
Gong Bing Vice President M 48 Present 1,044,153
Wang Jun Vice President M 45 Present 1,045,128
Chongqing Changan Automobile Company Limited 2017 Annual Report
Liu Bo Vice President M 51 Present 1,048,339
He Chaobing Vice President M 50 Present 1,045,232
Zhang
Vice President F 52 Present 1,013,014
Jingjing
Yuan
Vice President M 49 Present 1,014,095
Mingxue
Li Wei Vice President M 51 Present 1,015,291
Tan Benhong Vice President M 42 Present 116,025
Liu Zhengjun Vice President M 52 Present 29,575
Li Jun the Secretary of BOD F 48 Present 636,940
Xu Liuping Chairman M 53 Departure -
Hu Yu Independent Director M 45 Departure 16,666
Xiao Yong Chairman of the supervisory M 47 Departure -
Du Yi Vice President M 50 Departure 522,820
Total -- -- -- -- 15,201,888
Stock-ownership incentive awarded to directors, supervisors and senior managers during the reporting period
□ Applicable √ Not applicable
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 39,138，including 23,950 production workers, 9,354 scientific and
technological staff, 1,046 salesman, 305 financial officers,513 administration staff, and 3,970 staff on other positions. Among them,
there were 143 staff with doctor degree, 1,927 staff with master degree, 11,187 staff with bachelor degree, 7,665 staff with college
education, 15,628 staff with secondary technical school and senior high school education, and 2,588 staff with education of junior
high school and below.
1. Professional structure chart
The employee's professional
Chongqing Changan Automobile Company Limited 2017 Annual Report
2. Education degree chart
The employee's education
Chongqing Changan Automobile Company Limited 2017 Annual Report
3. compensation policy
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 6,011 retired workers.
Chongqing Changan Automobile Company Limited 2017 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.
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
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 2018 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.
Chongqing Changan Automobile Company Limited 2017 Annual Report
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
Investors'
Meeting Opening Disclosure
Type participation Disclosure Index
Session Time Time
ratio
Annual
May. 25th, May. 26th, http//www.cninfo.com.cn 2016 Annual Shareholders Meeting
Shareholders
Annual 54.93% 2017 2017 Resolution Announcement(Announcement Number: 2017-33)
Meeting
2017 First
http//www.cninfo.com.cn 2017 First Interim Shareholders
Interim Sep. 19rd, Sep. 20rd,
Interim 45.33% Meeting Resolution Announcement(Announcement Number:
Shareholders 2017 2017
2017-52)
Meeting
2017 Second Nov. 15th, Nov. 16th , http//www.cninfo.com.cn 2017 Second Interim Shareholders
Interim 43.88%
Interim 2017 2017 Meeting Resolution Announcement(Announcement Number:
Chongqing Changan Automobile Company Limited 2017 Annual Report
Shareholders 2017-72)
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
independent entrust
directors during presence communication absence for two
directors
the report period attendance
mode consecutive times
Liu Jipeng 12 12 N
Li Qingwen 12 11 1 N
Tan Xiaosheng 12 12 N
Hu Yu 1 1 N
Pang Yong 12 12 N
Chen Quanshi 12 11 1 N
Ren Xiaochang 6 6 N
Wei Xinjiang 6 6 N
Times for independent directors
attending the shareholders meeting
The explanation on absence in two consecutive board of directors meetings
□Applicable √ Non-applicable
2、Independent directors express disagreement to company related matters
Whether independent directors express disagreement to company related matters.
□ Yes √ No
Chongqing Changan Automobile Company Limited 2017 Annual Report
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. During the reporting period, the audit committee held 4 meetings and performed the following duties:
1）Carefully reviewed the 2016 annual financial accounting report and 2017 action plan of audit supervision department
compiled by the company, and agree to the above matters;
2）After the Ernst & Young Hua Ming issued 2016 annual audit report, the audit committee reviewed the 2016 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 2016 annual audit task on time. The audit committee voted and made resolutions on company's
annual financial report, and agreed to submit the 2016 financial report to the board of directors for approval.
3）Reviewed the proposal on Recruitment of 2017 Annual Financial Report Auditor and Recruitment of 2017 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 2017 annual financial report auditor and 2017 Annual internal control report auditor.
4）Carefully reviewed the company's 2017 annual audit plan and related materials, and approved the audit plan and audit
requirements of 2017 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
Chongqing Changan Automobile Company Limited 2017 Annual Report
committee is Mr. Chen Quanshi. During the reporting period, the committee held 1 meetings and performed the following duties:
A bill for the adjustment of the independent director's allowance was reviewed. According to the requirements stipulated by the
CSRC on the establishment of independent director system in listed companies and the rules for the work of independent directors of
the company, and considering the market level of the independent director's allowance in the listed companies of the same industry
and the actual situation of the company, it is proposed to adjust the subsidy of the independent director of the company from 100,000
yuan to 1200,000 on the board of directors meeting.
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.
Ⅸ. Internal Control
1、Significant Deficiency of Internal Control found during the report period
□ Yes √ No
Chongqing Changan Automobile Company Limited 2017 Annual Report
2、Self-assessment report of internal control
Disclosure date of self-assessment report of internal control Apr. 18th, 2018
Disclosure index of self-assessment report of internal control http://www.cninfo.com.cn
proportion of total asset in the assessment accounting for the total asset in the financial statement 98.16%
proportion of revenue in the assessment accounting for the revenue in the financial statement 96.21%
Deficiency Definition Standard
Type Financial Report Non Financial Report
1.Lack democratic decision-making procedure or
1. Fraud behavior of the directors, supervisors
violation of democratic decision-making procedure
and senior management.
2. The company has corrected the published 2.Violate national laws and regulations and get
financial report, the significant wrong report punished
due to fraud and mistakes, the significant 3.Great loss of middle and senior management and
qualitative standard mistakes in the financial report found by senior technical personnel
certified public accountants, but not found by 4.Frequent media negative news with a large range
the company’s internal control. 5.Signifant business lacks regulation control or
3. The supervision of audit committee on the regulation system becomes ineffective
company’s external financial report and internal
6.The significant deficiencies of internal control is
control of financial report is not effective.
not corrected
The amount of misstatement of the financial The amount of misstatement of the financial
quantitative standard statements falls within the following ranges: statements falls within the 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
Financial Reporting Key
Number of defects
Non-financial reporting
Number of important
Chongqing Changan Automobile Company Limited 2017 Annual Report
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,2017, according to “Basic Norms of Enterprise Internal Control” and other related regulations.
Disclosure date of audit report of
Apr.18, 2018
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, 2018
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 2017 Annual Report
Chapter 9 Corporate Bonds
Is there a corporate bond that is publicly issued and listed on the stock exchange and fails to
be fully paid up or not due on maturity until the approval of the annual report ?
□ Yes √ NO
The company repaid the 2012 Changan debt expired on April 23th, 2017.
Chongqing Changan Automobile Company Limited 2017 Annual Report
Chapter 10 Auditor’s Report
Auditor’s Report
Ernst & Young Hua Ming Shen Zi (2018) No. 60662431_D01
To the shareholders of
Chongqing Changan Automobile Company Limited
Opinion
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 2017, 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.
In our opinion, the accompanying financial statements of Chongqing Changan Automobile
Company Limited present fairly, in all material respects, the consolidated and the Company’s
financial position as at 31 December 2017, and the consolidated and the Company’s financial
performance and cash flows for the year then ended in accordance with Accounting Standards
for Business Enterprises (“ASBEs”).
Basis for opinion
We conducted our audit in accordance with China Standards on Auditing (“CSAs”). Our
responsibilities under those standards are further described in the Auditor’s responsibilities for
the audit of the financial statements section of our report. We are independent of the Company
in accordance with China Code of Ethics for Certified Public Accountants (the “Code”), and
we have fulfilled our other ethical responsibilities in accordance with the Code. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters. For
each matter below, our description of how our audit addressed the matter is provided in that
context.
Chongqing Changan Automobile Company Limited 2017 Annual Report
Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2018) No. 60662431_D01
Chongqing Changan Automobile Company Limited
Key audit matters (continued)
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit
of the financial statements section of our report, including in relation to these matters.
Accordingly, our audit included the performance of procedures designed to respond to our
assessment of the risks of material misstatement of the financial statements. The results of
our audit procedures, including the procedures performed to address the matters below,
provide the basis for our audit opinion on the accompanying financial statements.
Key audit matter How our audit addressed the key audit
matter
Provision for warranties
According to after-sales maintenance contracts or related With regard to the warranty provisions
national laws and regulations, Chongqing Changan audited by us:
Automobile Company Limited provides warranties on
automobile and undertakes to repair or replace items that fail
to perform satisfactorily based on certain pre-determined
We understood and evaluated
conditions. In addition, in order to improve customer the process of the warranty
satisfaction and to maintain the quality and safety of the sold provisions. In addition, we tested
vehicle, Chongqing Changan Automobile Company Limited the key controls and application
also provides extra free repairing service or promotes a recall controls over the process of the
based on needs. Chongqing Changan Automobile Company warranty provisions.
Limited should estimate and recognize the warranty costs and
the corresponding liabilities.
We assessed the reasonableness and
Provisions for warranties granted by Chongqing Changan evaluated the major assumptions of
Automobile Company Limited for the vehicles sold are management’s warranty provision
recognized based on sales volume and past experience of the models. We tested the samples of
cost of repair and replacement, and labor cost, which payment of the warranty provisions
involves a number of assumptions and judgments. and tested the mathematical
Provision for extra free repairing service program or recalls
are recognized based on the vehicles involved and the
accuracy of calculations therein by
estimated average cost of repair and replacement, and labor re-performing the calculations
cost, which involves a number of assumptions and regarding the balance of the
judgments. Any increase or decrease in the provision would provisions.
have a significant impact on the financial statements.
We reviewed the adequacy of
Refer to Note III 20, 31 and Note V 29 of the consolidated disclosures in the financial
financial statements for the disclosures of the provision for
warranties.
statements.
Chongqing Changan Automobile Company Limited 2017 Annual Report
Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2018) No. 60662431_D01
Chongqing Changan Automobile Company Limited
Key audit matters (continued)
Key audit matter How our audit addressed the key audit matter
Capitalization of internal development costs
The research and development activities launched by With regard to the capitalization of internal
Chongqing Changan Automobile Company Limited development costs audited by us:
mainly include technology development, product process
design and product manufacturing process design.
Management capitalized the costs on development
We understood, evaluated and
projects met the criteria set out in the accounting validated the key controls over the
standard for capitalization. capitalization of internal development
costs.
The expenditures in development stage are capitalized
that should meet all the conditions including technically We assessed the criterias set by the
feasible, use or sale intention, market, finance, resources, management related to the
and etc. The judgment should be made according to
every project and agreed by all related departments. In
capitalization of the costs under
addition, for projects that have been capitalized in the development stage. We assessed the
past, the judgment whether the expenditures in accuracy of the start point and the stop
development can be continuing capitalized should be point for capitalization of internal
made according the latest progress and future development costs. We also tested
expectations of the project. The judgment made by the samples of projects to review the
management would have a significant impact on the
financial statements.
feasibility reports and other reports for
important stages.
Refer to Note III 18, 31 and Note V 15 of the
consolidated financial statements for the disclosures of We reviewed the adequacy of
capitalization of internal development costs. disclosures in the financial statements.
Chongqing Changan Automobile Company Limited 2017 Annual Report
Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2018) No. 60662431_D01
Chongqing Changan Automobile Company Limited
Other informantion
The management of the Chongqing Changan Automobile Company Limited (the
“Management”) is responsible for the other information. The other information comprises the
information included in the annual report, other than the financial statements and our auditor’s
report thereon.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to
be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact. We have nothing to report in this
regard.
Management’s and governance’ responsibility for the financial statements
The Management is responsible for the preparation and fair presentation of these financial
statements in accordance with ASBEs, and for designing, implementing and maintaining such
internal control as the management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting, unless the management either
intends to liquidate the Company or to cease operations or has no realistic alternative but to
do so.
Those charged with governance are responsible for overseeing the Company’s financial
reporting process.
Chongqing Changan Automobile Company Limited 2017 Annual Report
Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2018) No. 60662431_D01
Chongqing Changan Automobile Company Limited
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with CSAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
generally considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with CSAs, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease to continue as a
going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Chongqing Changan Automobile Company Limited 2017 Annual Report
Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2018) No. 60662431_D01
Chongqing Changan Automobile Company Limited
Auditor’s responsibilities for the audit of the financial statements (continued)
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Company to express an opinion on the financial
statements. We are responsible for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Chen Xiao Xiang
Ernst & Young Hua Ming (LLP) Chinese Certified Public Accountant
(Engagement partner)
Hu Yan
Chinese Certified Public Accountant
Beijing, the People’s Republic of China 18 April 2018
Chongqing Changan Automobile Company Limited 2017 Annual Report
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET
31 December 2017
(Expressed in Renminbi Yuan)
Notes V 2017
Current assets
Cash 1 22,631,536,496.53 24,782,504,552.44
Notes receivable 2 29,156,481,085.20 29,002,539,261.26
Accounts receivable 3 1,806,807,193.04 1,498,837,041.54
Prepayments 4 1,102,239,931.33 1,060,809,892.75
Interest receivable 5 42,184,263.88 19,318,138.89
Other receivables 6 1,645,276,455.04 1,403,399,178.49
Inventories 7 4,666,183,421.80 7,304,106,822.61
Other current assets 8 1,705,910,530.43 926,060,330.87
Total current assets 62,756,619,377.25 65,997,575,218.85
Non-current assets
Available-for-sale financial assets 9 541,917,000.00 432,476,274.00
Long-term equity investments 10 14,098,523,896.97 14,743,367,010.03
Investment property 11 7,556,272.84 7,782,984.40
Fixed assets 12 19,044,528,950.70 15,480,484,513.99
Construction in progress 13 3,234,173,155.52 3,821,703,830.78
Project materials - 96,690.75
Fixed assets disposal 4,716.98 -
Intangible assets 14 4,047,945,129.67 3,444,950,675.03
Development expenditure 15 836,638,328.10 1,111,176,453.49
Goodwill 16 9,804,394.00 9,804,394.00
Long-term deferred expenses 17 13,545,589.39 13,448,409.63
Deferred tax assets 18 1,533,857,811.27 1,447,607,278.98
Total non-current assets 43,368,495,245.44 40,512,898,515.08
TOTAL ASSETS 106,125,114,622.69 106,510,473,733.93
The notes on pages 93 to 207 form an integral part of the financial statements on pages 75 to 92.
Chongqing Changan Automobile Company Limited 2017 Annual Report
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET (continued)
31 December 2017
(Expressed in Renminbi Yuan)
Notes V 2017
Current liabilities
Short-term loans 20 185,000,000.00 175,000,000.00
Notes payable 21 18,002,926,579.81 20,952,104,805.58
Accounts payable 22 21,902,826,194.15 19,880,580,102.39
Advances from customers 23 3,878,382,556.43 6,854,337,365.01
Payroll payable 24 1,640,885,322.33 1,839,947,475.23
Taxes payable 25 394,321,397.14 555,681,489.16
Interest payables 26 - 73,458,000.00
Dividend payables 27 79,742.80 79,742.80
Other payables 28 2,599,013,410.98 1,449,028,595.97
Contingent liabilities 29 2,423,958,274.70 2,010,153,951.87
Other current liabilities 30 3,562,154,645.82 4,211,570,198.88
Current portion of
non-current liabilities 31 13,151,946.67 1,992,341,127.81
Total current liabilities 54,602,700,070.83 59,994,282,854.70
Non-current liabilities
Long-term loans 32 6,575,973.33 19,980,912.00
Long term payroll payable 33 113,012,000.00 105,132,000.00
Special payable 34 290,607,151.02 217,497,540.80
Deferred income 35 3,627,817,419.05 2,785,885,626.37
Deferred tax liabilities 18 21,222,750.00 34,535,250.00
Total non-current liabilities 4,059,235,293.40 3,163,031,329.17
Total liabilities 58,661,935,364.23 63,157,314,183.87
The notes on pages 93 to 207 form an integral part of the financial statements on pages 75 to 92.
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET (continued)
31 December 2017
(Expressed in Renminbi Yuan)
Notes V 2017
Owners’ equity
Share capital 36 4,802,648,511.00 4,802,648,511.00
Capital reserves 37 5,099,405,956.94 5,085,301,532.55
Other Comprehensive Income 38 82,959,423.84 141,480,908.23
Special reserves 39 28,279,733.06 16,349,485.65
Surplus reserves 40 2,401,324,255.50 2,401,324,255.50
Retained earnings 41 35,184,073,061.94 31,126,707,710.94
Equity attributable to owners 47,598,690,942.28 43,573,812,403.87
Minority interests (135,511,683.82) (220,652,853.81)
Total equity 47,463,179,258.46 43,353,159,550.06
TOTAL LIABILITIES
AND OWNERS’ EQUITY 106,125,114,622.69 106,510,473,733.93
The notes on pages 93 to 207 form an integral part of the financial statements on pages 75 to 92.
The financial statements on pages 75 to 92 have been signed by:
Legal Principal in Charge Chief
Representative: of Accountancy: Accountant:
Chongqing Changan Automobile Company Limited
CONSOLIDATED INCOME STATEMENT
Year ended 31 December 2017
(Expressed in Renminbi Yuan)
Notes V 2017
Operating revenue 42 80,012,205,182.37 78,542,441,757.19
Less: Operating cost 42 69,363,032,740.85 64,487,605,908.58
Tax and surcharges 43 3,074,023,009.42 3,629,619,040.93
Operating expenses 44 3,978,124,859.65 5,293,744,700.63
General and administrative
expenses 45 5,280,296,493.52 5,128,856,385.18
Financial income 46 (524,973,961.02) (305,390,915.29)
Impairment loss on assets 47 251,517,154.60 468,851,401.15
Add: Investment income 48 6,906,324,932.20 9,619,016,254.57
Including: Investment income
from associates and joint
venture 6,854,896,911.97 9,563,723,801.40
Gain on disposal of assets 49 41,774,452.23 (26,176,073.44)
Other incomes 50 1,613,343,216.59 -
Operating profit 7,151,627,486.37 9,431,995,417.14
Add: Non-operating income 51 104,330,128.12 975,460,953.76
Less: Non-operating expenses 52 75,068,057.28 57,631,590.65
Total profit 7,180,889,557.21 10,349,824,780.25
Less: Income tax expense 53 (27,547,712.85) 73,230,121.41
Net profit 7,208,437,270.06 10,276,594,658.84
Classification by going concern
Net profit from continuing
operations 7,208,437,270.06 10,276,594,658.84
Net profit from discontinued
operations - -
Classification by ownership attribution
Net profit attributable to owners 7,137,234,723.47 10,285,284,120.57
Minority interests 71,202,546.59 (8,689,461.73)
The notes on pages 93 to 207 form an integral part of the financial statements on pages 75 to 92.
Chongqing Changan Automobile Company Limited
CONSOLIDATED INCOME STATEMENT (continued)
Year ended 31 December 2017
(Expressed in Renminbi Yuan)
Notes V 2017
Other comprehensive income,
net of tax (58,521,484.39) (100,629,936.31)
Total comprehensive income
attributable to owners,
net of tax 38 (58,521,484.39) (100,629,936.31)
Other comprehensive income
not to be reclassified to
profit or loss in
subsequent periods:
Change in net liability or
assest from defined
benefit plan 6,201,000.00 4,676,000.00
Other comprehensive income
not to be recalssfied
to profit or loss
under equity method (248,641.80) (166,479.23)
5,952,358.20 4,509,520.77
Other comprehensive income
to be reclassified to profit
or loss in subsequent periods:
Changes in fair value from
available-for-sale financial
assest (75,437,500.00) (83,584,750.00)
Foreign currency reserve 10,963,657.41 (21,554,707.08)
(64,473,842.59) (105,139,457.08)
Total comprehensive income
attributable to minority
interests, net of tax - -
Total comprehensive income 7,149,915,785.67 10,175,964,722.53
Total comprehensive income
attributable to owners 7,078,713,239.08 10,184,654,184.26
Total comprehensive income
attributable to minority
interest 71,202,546.59 (8,689,461.73)
Earnings per share
Basic earnings per share 1.49 2.19
Diluted earnings per share Not Applicable Not Applicable
The notes on pages 93 to 207 form an integral part of the financial statements on pages 75 to 92.
Chongqing Changan Automobile Company Limited
CONSOLIDATED STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Year ended 31 December 2017
(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 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
Changes during the year
Total comprehensive income - - (58,521,484.39) - - 7,137,234,723.47 7,078,713,239.08 71,202,546.59 7,149,915,785.67
Capital contributed by owners
and capital decreases
1.The amount of share-based
payments recorded in
owners’ equity - 18,981,100.00 - - - - 18,981,100.00 - 18,981,100.00
2.Others - (4,876,675.61) - - - - (4,876,675.61) 13,612,629.45 8,735,953.84
Distribition of profit
1.Distribution to owners - - - - - (3,079,869,372.47) (3,079,869,372.47) - (3,079,869,372.47)
Special reserves
1.Provided - - - 63,595,469.61 - - 63,595,469.61 1,485,155.93 65,080,625.54
2.Ultilized - - - (57,200,673.85) - - (57,200,673.85) (1,159,161.98) (58,359,835.83)
3.Effective portion of
changes in special
reserves from joint
venture - - - 5,535,451.65 - - 5,535,451.65 - 5,535,451.65
At 31 December 2017 4,802,648,511.00 5,099,405,956.94 82,959,423.84 28,279,733.06 2,401,324,255.50 35,184,073,061.94 47,598,690,942.28 (135,511,683.82) 47,463,179,258.46
The notes on pages 93 to 207 form an integral part of the financial statements on pages 75 to 92.
Chongqing Changan Automobile Company Limited
CONSOLIDATED STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (continued)
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
The notes on pages 93 to 207 form an integral part of the financial statements on pages 75 to 92.
Chongqing Changan Automobile Company Limited
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December 2017
(Expressed in Renminbi Yuan)
Notes V 2017
CASH FLOWS FROM
OPERATING ACTIVITIES
Cash received from sale of goods
or rendering of services 84,929,650,617.50 78,942,062,368.66
Refunds of taxes 293,750,000.42 178,956,002.72
Cash received relating to other
operating activities 55 3,504,386,075.81 1,355,517,641.00
Subtotal of cash inflows 88,727,786,693.73 80,476,536,012.38
Cash paid for goods and services 72,950,596,502.56 59,116,153,862.52
Cash paid to and on behalf of
employees 5,705,682,329.28 5,549,657,883.75
Cash paid for all types of taxes 5,152,004,084.25 6,901,561,944.16
Cash paid relating to other
operating activities 55 6,289,080,554.47 6,622,611,016.75
Subtotal of cash outflows 90,097,363,470.56 78,189,984,707.18
Net cash flows from operating
activities 56 (1,369,576,776.83) 2,286,551,305.20
CASH FLOWS FROM
INVESTING ACTIVITIES
Cash received from recovery
of investment 7,069,600.00 -
Cash received from return
on investment 8,727,115,553.76 9,799,173,102.34
Net cash received from disposal
of fixed assets, intangible assets
and other long-term assets 25,865,729.72 2,799,368.75
Cash received relating to other
investing activites 55 246,106,000.00 280,035,500.00
Subtotal of cash inflows 9,006,156,883.48 10,082,007,971.09
Cash paid for acquisition of
fixed assets,intangible assests
and other long-term assets 3,308,579,224.93 4,644,798,094.50
Cash paid for acquisition of
investments 1,269,583,030.48 -
Subtotal of cash outflows 4,578,162,255.41 4,644,798,094.50
Net cash flows from investing activities 4,427,994,628.07 5,437,209,876.59
The notes on pages 93 to 207 form an integral part of the financial statements on pages 75 to 92.
Chongqing Changan Automobile Company Limited
CONSOLIDATED CASH FLOW STATEMENT (continued)
Year ended 31 December 2017
(Expressed in Renminbi Yuan)
Notes V 2017
CASH FLOWS FROM
FINANCING ACTIVITIES:
Cash received from investors - 1,984,000,000.00
Cash received from borrowings 185,000,000.00 167,940,510.00
Cash received relating to
other financing activities 55 978,689,175.66 1,109,969.63
Sub-total of cash inflows 1,163,689,175.66 2,153,050,479.63
Cash repayments of borrowings 2,168,573,600.00 9,638,990.00
Cash paid for distribution of dividends
or profits and interest expenses 3,200,128,271.95 3,110,847,894.67
Cash paid relating to
other financing activities 55 369,958,242.32 1,482,209,049.71
Sub-total of cash outflows 5,738,660,114.27 4,602,695,934.38
Net cash flows from financing activities (4,574,970,938.61) (2,449,645,454.75)
EFFECT OF CHANGES IN EXCHANGE
RATE ON CASH (25,573,889.15) (6,605,001.21)
NET INCREASE IN CASH
AND CASH EQUIVALENTS (1,542,126,976.52) 5,267,510,725.83
Add: Opening balance of
cash and cash equivalents 22,993,432,067.05 17,725,921,341.22
CLOSING BALANCE OF
CASH AND CASH EQUIVLANT 56 21,451,305,090.53 22,993,432,067.05
The notes on pages 93 to 207 form an integral part of the financial statements on pages 75 to 92.
Chongqing Changan Automobile Company Limited
BALANCE SHEET
31 December 2017
(Expressed in Renminbi Yuan)
Notes XIV 2017
Current assets
Cash 20,634,514,487.95 23,767,111,763.75
Notes receivable 29,010,848,480.70 28,699,756,422.50
Accounts receivable 1 4,991,996,591.00 4,328,886,769.78
Prepayments 960,555,695.17 905,659,820.16
Interest receivable 42,184,263.88 19,318,138.89
Dividend receivable - 5,900,371.55
Other receivables 2 1,723,723,602.89 1,456,016,984.91
Inventories 4,005,921,440.85 6,292,770,310.90
Other current assets 1,178,094,749.84 592,803,108.38
Total current assets 62,547,839,312.28 66,068,223,690.82
Non-current assets
Available-for-sale financial assets 532,007,000.00 432,476,274.00
Long-term equity investments 3 15,786,743,636.55 16,425,513,619.11
Fixed assets 15,582,899,632.64 12,142,942,955.13
Construction in progress 2,763,521,275.98 3,613,887,112.73
Project materials - 96,690.75
Intangible assets 3,341,218,169.73 2,799,021,341.24
Development expenditure 733,947,670.46 986,790,085.03
Long-term deferred expenses 12,821,802.39 12,729,576.00
Deferred tax assets 1,421,165,907.17 1,331,906,388.11
Total non-current assets 40,174,325,094.92 37,745,364,042.10
TOTAL ASSETS 102,722,164,407.20 103,813,587,732.92
The notes on pages 93 to 207 form an integral part of the financial statements on pages 75 to 92.
Chongqing Changan Automobile Company Limited
BALANCE SHEET (continued)
31 December 2017
(Expressed in Renminbi Yuan)
2017
Current liabilities
Notes payable 16,874,603,207.01 20,344,635,258.93
Accounts payable 19,476,620,759.93 16,912,556,809.95
Advances from customers 3,724,183,178.58 6,563,904,714.60
Payroll payable 1,377,250,229.66 1,567,187,782.78
Taxes payable 320,050,382.91 470,185,940.53
Interest payable - 73,458,000.00
Other payables 3,181,207,281.30 1,922,286,938.56
Contingent liabilities 2,380,971,255.26 1,947,415,048.79
Other current liabilities 3,453,269,881.59 3,992,241,040.51
Current portion of
non-current liabilities - 1,979,020,519.81
Total current liabilities 50,788,156,176.24 55,772,892,054.46
Non-current liabilities
Long term payroll payable 91,263,000.00 87,480,000.00
Special payable 235,256,441.62 162,146,831.40
Deferred income 2,879,604,719.46 2,164,751,690.28
Deferred tax liabilities 21,222,750.00 34,535,250.00
Total non-current liabilities 3,227,346,911.08 2,448,913,771.68
Total liabilities 54,015,503,087.32 58,221,805,826.14
Owner’s equity
Share capital 4,802,648,511.00 4,802,648,511.00
Capital reserves 4,717,192,101.72 4,689,475,046.88
Other comprehensive income 132,520,410.88 202,294,552.68
Special reserves 12,013,706.73 7,555,003.10
Surplus reserves 2,401,324,255.50 2,401,324,255.50
Retained earnings 36,640,962,334.05 33,488,484,537.62
Total owner’s equity 48,706,661,319.88 45,591,781,906.78
TOTAL LIABILITIES
AND OWNERS’ EQUITY 102,722,164,407.20 103,813,587,732.92
The notes on pages 93 to 207 form an integral part of the financial statements on pages 75 to 92.
Chongqing Changan Automobile Company Limited
INCOME STATEMENT
Year ended 31 December 2017
(Expressed in Renminbi Yuan)
Notes XIV 2017
Operating revenue 4 77,758,476,387.51 78,133,944,076.33
Less: Operating cost 4 68,732,561,860.05 65,772,445,442.61
Tax and surcharges 2,565,747,398.92 2,977,973,945.41
Operating expenses 3,590,671,641.50 4,820,910,114.23
General and administrative
expenses 4,479,762,257.66 4,536,818,995.75
Financial income (547,613,808.85) (273,565,990.80)
Impairment loss on assets 270,436,351.89 327,391,057.23
Add: Investment income 5 6,908,063,504.35 9,648,255,430.07
Including: Investment income
from associates and from
joint venture 6,854,896,911.97 9,563,723,801.40
Gain on disposal of assets 24,198,022.49 (10,224,596.77)
Other income 534,853,603.29 -
Operating profit 6,134,025,816.47 9,610,001,345.20
Add: Non-operating income 54,345,488.88 459,206,256.24
Less: Non-operating expenses 61,733,222.91 55,740,303.63
Total profit 6,126,638,082.44 10,013,467,297.81
Less: Income tax expense (105,709,086.46) 41,038,834.36
Net profit 6,232,347,168.90 9,972,428,463.45
Classification by going concern
Net profit from continuing
operations 6,232,347,168.90 9,972,428,463.45
Net profit from discontinued
operations - -
The notes on pages 93 to 207 form an integral part of the financial statements on pages 75 to 92.
Chongqing Changan Automobile Company Limited
INCOME STATEMENT
Year ended 31 December 2017
(Expressed in Renminbi Yuan)
Notes XIV 2017
Other comprehensive income,
net of tax
Other comprehensive income
not tobe reclassified to
profit or loss in
subsequent periods:
Change in net liability or
assest from defined
benefit plan 5,912,000.00 4,855,000.00
Other Comprehensive income
not to berecalssfied
to profit or loss
under equity method (248,641.80) (166,479.23)
Other comprehensive income
to be reclassified to profit
or loss in subsequent periods:
Changes in fair value from
available-for-sale financial
assest (75,437,500.00) (83,584,750.00)
Total comprehensive income
attributable to minority
interests, net of tax -
Total comprehensive income 6,162,573,027.10 9,893,532,234.22
The notes on pages 93 to 207 form an integral part of the financial statements on pages 75 to 92.
Chongqing Changan Automobile Company Limited
STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Year ended 31 December 2017
(Expressed in Renminbi Yuan)
Share capital Captial reserves Other Special reserves Surplus reserves Retained earnings Total onwer’s equity
comprehensive
income
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
Changes during the year
Total comprehensive income - - (69,774,141.80) - - 6,232,347,168.90 6,162,573,027.10
Capital contributed by owners
and capital decreases
1. The amount of share-based
payments recorded in
owners’ equity - 18,981,100.00 - - - - 18,981,100.00
2.Others - 8,735,954.84 - - - - 8,735,954.84
Distribition of profit
1.The distribution to owners - - - - - (3,079,869,372.47) (3,079,869,372.47)
Special reserve
1.Provided - - - 43,664,824.34 - - 43,664,824.34
2.Ultilized - - - (44,741,572.36) - - (44,741,572.36)
3.Effective portion of
changes in special reserves
from joint venture - - - 5,535,451.65 - - 5,535,451.65
At 31 December 2017 4,802,648,511.00 4,717,192,101.72 132,520,410.88 12,013,706.73 2,401,324,255.50 36,640,962,334.05 48,706,661,319.88
The notes on pages 93 to 207 form an integral part of the financial statements on pages 75 to 92.
Chongqing Changan Automobile Company Limited
STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (continued)
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 4,662,886,108.002,831,662,835.16281,190,781.91 12,723,372.00 2,331,443,054.00 26,573,855,747.2536,693,761,898.32
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
The notes on pages 93 to 207 form an integral part of the financial statements on pages 75 to 92.
Chongqing Changan Automobile Company Limited
CASH FLOW STATEMENT
Year ended 31 December 2017
(Expressed in Renminbi Yuan)
2017
CASH FLOWS FROM
OPERATING ACTIVITIES
Cash received from sale of goods
or rendering of services 79,675,129,781.26 74,657,783,763.53
Cash received relating to other
operating activities 2,738,891,256.19 1,433,378,129.76
Subtotal of cash inflows 82,414,021,037.45 76,091,161,893.29
Cash paid for goods and services 70,300,504,407.78 57,801,119,517.16
Cash paid to and on behalf of
employees 4,379,640,973.36 4,296,500,901.42
Cash paid for all types of taxes 4,229,906,573.05 5,819,707,683.64
Cash paid relating to other
operating activities 6,383,379,710.17 6,587,862,349.67
Subtotal of cash outflows 85,293,431,664.36 74,505,190,451.89
Net cash flows from operating
activities (2,879,410,626.91) 1,585,971,441.40
CASH FLOWS FROM
INVESTING ACTIVITIES
Cash received from recovery
of investment 7,069,600.00 -
Cash received from return
on investment 8,737,204,497.46 9,807,358,030.44
Net cash received from disposal
of fixed assets, intangible assets
and other long-term assets 106,245,076.64 1,768,232.23
Cash received relating to other
investing activites 346,540,000.00 131,659,104.60
Subtotal of cash inflows 9,197,059,174.10 9,940,785,367.27
Cash paid for acquisition of
fixed assets,intangible assests
and other long-term assets 2,916,256,030.54 3,644,257,044.91
Cash paid for acquisition of
investments 1,269,180,419.98 174,107,363.00
Cash paid relating to other
investing activities 100,000,000.00 50,000,000.00
Subtotal of cash outflows 4,285,436,450.52 3,868,364,407.91
Net cash flows from investing activities 4,911,622,723.58 6,072,420,959.36
The notes on pages 93 to 207 form an integral part of the financial statements on pages 75 to 92.
Chongqing Changan Automobile Company Limited
CASH FLOW STATEMENT (continued)
Year ended 31 December 2017
(Expressed in Renminbi Yuan)
2017
CASH FLOWS FROM
FINANCING ACTIVITIES
Cash received from investors - 1,984,000,000.00
Cash receipts relating to other
financing activities 978,689,175.66 -
Sub-total of cash inflows 978,689,175.66 1,984,000,000.00
Repayment of debts 1,980,000,000.00 -
Cash paid for distribution of dividends
or profits and for interest expenses 3,184,699,226.42 3,097,469,043.23
Cash paid relating to other financing activities 110,146.05 1,441,760,606.76
Sub-total of cash outflows 5,164,809,372.47 4,539,229,649.99
Net cash flows from financing activities (4,186,120,196.81) (2,555,229,649.99)
NET INCREASE IN CASH
AND CASH EQUIVALENTS (2,153,908,100.14) 5,103,162,750.77
Add: Cash and cash equivalents at
beginning of year 22,326,566,084.67 17,223,403,333.90
CASH AND CASH EQUIVLANT
AT END OF YEAR 20,172,657,984.53 22,326,566,084.67
The notes on pages 93 to 207 form an integral part of the financial statements on pages 75 to 92.
Chongqing Changan Automobile Company Limited 2017 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.
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
Chongqing Changan Automobile Company Limited 2017 Annual Report
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%.
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%.
On 28 December 2017, with the approval of State-owned Assets Supervision and Administration Commission of
the State Council, South Group completed the restructuring and chaged the company name as China South
Industries Group Co., Ltd.
As at 31 December 2017, the Company’s parent company and ultimate controlling company is China Changan and
China South Industries Group Co., Ltd., 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 17 April 2018, was submitted to general meeting of shareholders for approval.
The scope of consolidation in the consolidated financial statement is determined based on control. There has been
no change of the consolidation scope of 2017.
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 2017 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 2017
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.
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.
Chongqing Changan Automobile Company Limited 2017 Annual Report
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.
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 2017. 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
Chongqing Changan Automobile Company Limited 2017 Annual Report
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
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 2017 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 2017 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.
Chongqing Changan Automobile Company Limited 2017 Annual Report
9. Financial instruments (continued)
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.
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.
Chongqing Changan Automobile Company Limited 2017 Annual Report
9. Financial instruments (continued)
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.
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.
Chongqing Changan Automobile Company Limited 2017 Annual Report
9. Financial instruments (continued)
Impairment of financial assets (continued)
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.
Impairment of financial assets 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 2017 Annual Report
10. Accounts receivable
(1) Accounts receivable which is individually significant and analyzed individually for provision：
Accounts receivable balance greater than RMB15 million due
Criterion for individually significant items
from non-related parties
A provision of the difference between recoverable amount and
Method for provision
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 significant items
Group 1
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 recognized
Group 2
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 from
Criterion for individually analysis for
non-related parties is impaired and the future recoverable possibility is
provision
little.
A provision of the difference between recoverable amount and book
Method for provision
value is recognized individually.
Chongqing Changan Automobile Company Limited 2017 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.
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.
Chongqing Changan Automobile Company Limited 2017 Annual Report
12. Long-term equity investments (continued)
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.
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.
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.
Chongqing Changan Automobile Company Limited 2017 Annual Report
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 rate
Category Deprecation period Residual rate (%)
(%)
Buildings 20 to 35 years 3% 2.77%-4.85%
Machinery (Note) 5 to 20 years 3% 4.85%-19.40%
Vehicles 4 to 10 years 3% 9.70%-24.25%
Others 3 to 21 years 3% 4.62%-32.33%
Note: the 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.
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 2017 Annual Report
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 43 to 50 years
Software 2 years
Trademark 10 years
Non-patent technology 5 years
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
Chongqing Changan Automobile Company Limited 2017 Annual Report
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.
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.
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 10).
Chongqing Changan Automobile Company Limited 2017 Annual Report
21. Share-based payments (continued)
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.
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.
Chongqing Changan Automobile Company Limited 2017 Annual Report
22. Revenue (continued)
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.
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.
Government grants related to income to be used as compensation for future expenses or losses shall be recognized
as deferred income and shall be charged to the current profit or loss or be used to write down the relevant loss,
during the recognition of the relevant cost expenses or losses; or used as compensation for relevant expenses or
losses already incurred by enterprises shall be directly charged to the profit and loss account in the current period
or used to write down the relevant cost.
The government grants related to assets shall be used to write down the book value of the relevant assets or be
recognized as deferred income. The government grants related to assets, recognized as deferred income, shall be
charged to the profit and loss reasonably and systematically in stages over the useful lives of the relevant assets.
The government grants measured at nominal amount shall be directly charged to the current profit and loss. The
remaining book value of the government grants related to assets should be charged to the profit and loss account in
the current period when the relative assets sold, transferred, disposed or damaged.
Chongqing Changan Automobile Company Limited 2017 Annual Report
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.
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
Chongqing Changan Automobile Company Limited 2017 Annual Report
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.
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.
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.
Chongqing Changan Automobile Company Limited 2017 Annual Report
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.
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.
Chongqing Changan Automobile Company Limited 2017 Annual Report
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.
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 2017 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.
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.
Chongqing Changan Automobile Company Limited 2017 Annual Report
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
The change of ”gain on disposal of assets” in reporting
In accordance with the circular on issuing the revised format of the financial statements for general enterprise
issued by the Ministry of Finance (Cai Kuai [2017] No. 30), the Group added an items of “gain on disposal of
assets” before operating profit in income statement. The income/loss on disposal of non-current assets which have
listed as “non-operation income” and “non-operation expenses” in income statement has been reclassified to the
item of “gain on disposal of assets”.
Change of the above mentioned accounting policy adopted retrospective application. This change has no effects on
the consolidated and the company’s net profit and owner’s equity.
The change of the accounting treatment of government grants
In accordance with the circular of issuing the revised Accounting Standard for Business Enterprises No. 16 —
Government Grants (Cai Kuai [2017] No.15)，the Group presented the government grants related to daily operation
in the account of \"other income\" before \"operating profit\" in the income statement instead of recording the
government grants in the account of “non-operating income”. The Group accounted for government grants
received before 1 January 2017 prospectively and make adjustment for the new government grants obtained
between 1 January 2017 and the effective date in accordance with the Standard.
As a result, “other income”, “operating profit” and “non-operating income” would be different for the years ended
31 December 2017 and 2016, but there was no substantial impact on net profit for both consolidated and company
financial statement for the years ended 31 December 2017 and 2016.
Chongqing Changan Automobile Company Limited 2017 Annual Report
IV TAXES
1. The major categories of taxes and surcharges
Categories of taxes and Basis of tax Tax rate
surcharges
Value added tax (“VAT”) Levy on the taxable sales and rendering of 5%, 6% or 17%
services, deducted the deductible input VAT.
Consumption tax Taxable sales 1%,3% or 5%
City maintenance and The turnover taxes paid 5% or 7%
construction tax
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 2017, 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).
In accordance to Circular of the Administrative Measures for the Certification of New and High Technology
Enterprises (Guo Ke Fa Huo [2016] No. 32) and Circular of the Working Guidance on the Recognition of Hi-tech
Enterprises (Guo Ke Fa Huo [2016] No. 195), the subsidiary of Hefei Changan Automobile Co., Ltd. obtained the
certificate of new and high technology enterprise on 21 October 2016 and is subjected to the preferential tax rate of
15% from 2016 to 2018.
In accordance to Circular of the Administrative Measures for the Certification of New and High Technology
Enterprises (Guo Ke Fa Huo [2016] No. 32) and Circular of the Working Guidance on the Recognition of Hi-tech
Enterprises (Guo Ke Fa Huo [2016] No. 195), the subsidiaries of Hebei Changan Automobile Co., Ltd. and Hebei
Baoding Changan Bus Co., Ltd. obtained the certificate of new and high technology enterprise on 21 July 2017
and on 27 October 2017, and are subjected to the preferential tax rate of 15% from 2017 to 2019.
Chongqing Changan Automobile Company Limited 2017 Annual Report
V NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
1. Cash
Item 2017
Cash 33,089.31 29,559.40
Cash at bank 21,451,272,001.22 22,993,402,507.65
Other cash 1,180,231,406.00 1,789,072,485.39
Total 22,631,536,496.53 24,782,504,552.44
As at 31 December 2017, the book value of restricted cash and cash equivalents is RMB1,180,231,406.00 (As at
31 December 2016: RMB1,789,072,485.39), which was mainly restricted for the issuance of acceptance bill.
As at 31 December 2017, the cash at bank oversea is equivalent to RMB82,961,261.21 (As at 31 December 2016:
RMB151,614,280.74 ).
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 2017
Commercial acceptance bill 9,142,240,884.70 8,681,506,152.50
Bank acceptance bill 20,014,240,200.50 20,321,033,108.76
Total 29,156,481,085.20 29,002,539,261.26
(2) Pledged notes receivable
Type 2017
Bank acceptance bill 287,427,970.00 1,029,541,142.00
As at 31 December 2017 and 2016, 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:
2017
Type
Derecognition Un-derecognition Derecognition Un-derecognition
Commercial
70,962,210.00 - 68,903,990.00 -
acceptance bill
Bank acceptance
1,198,514,460.00 - 1,689,454,116.09 -
bill
Total 1,269,476,670.00 - 1,758,358,106.09 -
(4) As at 31 December 2017, there are no notes transferred to accounts receivable due to the non-acceptance.
(As at 31 December 2016: Nil)
Chongqing Changan Automobile Company Limited 2017 Annual Report
3. Accounts receivable
(1) Aging analysis of the accounts receivable as at 31 December 2017 is as follows:
Aging 2017
Within 1 year 1,375,775,524.93 1,356,947,071.58
1 to 2 years 320,269,522.88 117,208,110.44
2 to 3 years 106,193,915.65 22,550,444.94
Over 3 years 40,598,751.89 33,077,540.86
Total 1,842,837,715.35 1,529,783,167.82
Provision (36,030,522.31) (30,946,126.28)
1,806,807,193.04 1,498,837,041.54
The movements in provision for impairment of accounts receivable are as follows:
Beginning Deduction
Addition Ending balance
balance Reversal Write-off
2017 30,946,126.28 8,587,659.49 3,058,543.46 444,720.00 36,030,522.31
2016 64,858,859.92 4,073,516.50 1,163,419.90 36,822,830.24 30,946,126.28
(2) Analysis of accounts receivable by category as at 31 December 2017 is as follows:
2017
Item Balance Provision Balance Provision
Amount % Amount % Amount % Amount %
Individually
significant items
and analyzed 734,064,982.48 39.83 - - 807,264,568.09 52.77 - -
individually for
provision
Accounts receivable analyzed as groups for provision
Group 1. Accounts
receivable
analyzed for
provision 811,522,470.21 44.04 22,765,588.74 2.81 539,225,767.44 35.24 23,064,841.85 4.28
according to aging
analysis
Group 2. Accounts
receivable from 283,985,329.09 15.41 - - 175,411,547.86 11.47 - -
related parties
Group subtotal 1,095,507,799.30 59.45 22,765,588.74 2.08 714,637,315.30 46.71 23,064,841.85 3.23
Individually
insignificant items
but analyzed 13,264,933.57 0.72 13,264,933.57 100 7,881,284.43 0.52 7,881,284.43 100
individually for
provision
Total 1,842,837,715.35 100 36,030,522.31 1.96 1,529,783,167.82 100 30,946,126.28 2.02
In groups, accounts receivable were analyzed for provision by aging:
2017
Aging Balance Provision Balance Provision
Amount % Amount %
Within 6
753,965,095.69 92.91 - 489,006,288.37 90.69 -
months
Chongqing Changan Automobile Company Limited 2017 Annual Report
6 to 12
18,262,202.43 2.25 913,110.11 5,598,962.70 1.04 279,948.14
months
Within 1 year
772,227,298.12 95.16 913,110.11 494,605,251.07 91.73 279,948.14
subtotal
1 to 2 years 12,198,268.67 1.50 1,219,826.87 5,365,243.93 0.99 536,524.39
2 to 3 years 1,451,653.80 0.18 435,496.14 22,497,896.67 4.17 6,749,369.00
3 to 4 years 10,368,508.00 1.28 5,184,254.00 1,319,200.00 0.24 659,600.00
4 to 5 years 1,319,200.00 0.16 1,055,360.00 2,993,877.26 0.56 2,395,101.81
Over 5 years 13,957,541.62 1.71 13,957,541.62 12,444,298.51 2.31 12,444,298.51
Total 811,522,470.21 100 22,765,588.74 539,225,767.44 100 23,064,841.85
In groups, accounts receivable were analyzed for provision by other methods:
2017
Group
Balance Provision Balance Provision
Accounts receivable from
related parities
283,985,329.09 - 175,411,547.86 -
As at 31 December 2017 and 2016, there are no individually significant items analyzed individually for provision.
(3) In 2017, provision for accounts receivable amounted to RMB8,587,659.49 has been accrued (2016:
RMB4,073,516.50). Provision for accounts receivable amounted to RMB3,058,543.46 has been reversed
(2016: RMB1,163,419.90).
(4) As at 31 December 2017, Provision for accounts receivable amounted to RMB444,720.00 has been
write-off (2016: RMB36,822,830.24).
(5) As at 31 December 2017, acconts receivable from Top 5 clients amounted to RMB553,166,995.66,
accounted for 30.02% of the total accounts receivable (2016：RMB544,518,789.11，accounted for 35.59%
of the total amount).
(6) There is no accounts receivable derecognized due to transfer of financial assets during 2017 (2016: Nil).
4. Prepayments
(1) Aging analysis of the prepayments is as follows:
2017
Aging Amount Persentage (%) Amount Persentage
(%)
Within 1 year 1,099,772,284.11 99.78 1,045,305,366.57 98.54
1 to 2 years 447,067.45 0.04 14,675,385.03 1.38
2 to 3 years 1,485,647.87 0.13 - -
Over 3 years 534,931.90 0.05 829,141.15 0.08
Total 1,102,239,931.33 100 1,060,809,892.75
(2) As at 31 December 2017, prepayments to Top 5 suppliers amounted to RMB993,006,069.80, which
accounted for 90.09% of the total prepayments (2016: RMB867,935,898.74, which accounted for 81.82%
of the total amount).
5. Interest receivable
Item 2017
Chongqing Changan Automobile Company Limited 2017 Annual Report
Time Deposit 42,184,263.88 19,318,138.89
6. Other receivables
(1) Aging analysis of other receivables as at 31 December 2017 is as follows:
2017
Within 1 year 1,414,935,792.12 881,313,434.68
1 to 2 years 212,077,835.97 509,128,687.52
2 to 3 years 6,624,999.32 645,632.94
Over 3 years 15,794,423.31 16,431,705.62
Total 1,649,433,050.72 1,407,519,460.76
Provision (4,156,595.68) (4,120,282.27)
1,645,276,455.04 1,403,399,178.49
Movements of provisions for other receivables are as follows:
Beginning Deduction
Addition Ending balance
balance Reversal Write-off
2017 4,120,282.27 1,231,570.84 1,109,854.82 85,402.61 4,156,595.68
2016 4,261,431.15 1,190,098.91 145,673.79 1,185,574.00 4,120,282.27
(2) Analysis of other receivables by category as at 31 December 2017 is as follows:
2017
Item Balance Provision Balance Provision
Amount % Amount % Amount % Amount %
Individually
significant items
and analyzed 1,404,077,945.42 85.12 - - 1,092,099,200.00 77.59 - -
individually for
provision
Other receivables analyzed as groups for provision
Group 1. Other
receivables
analyzed for
provision 201,199,672.08 12.20 1,177,852.02 0.59 174,186,479.76 12.38 1,132,652.00 0.65
according to aging
analysis
Group 2. Other
receivables from 41,176,689.56 2.50 - - 138,246,150.73 9.82 - -
related parties
Group subtotal 242,376,361.64 14.70 1,177,852.02 0.49 312,432,630.49 22.20 1,132,652.00 0.36
individually
insignificant items
but analyzed 2,978,743.66 0.18 2,978,743.66 100 2,987,630.27 0.21 2,987,630.27 100
individually for
provision
Total 1,649,433,050.72 100 4,156,595.68 0.25 1,407,519,460.76 100 4,120,282.27 0.29
In groups, other receivables were analyzed for provision by aging:
2017
Aging
Balance Provision Balance Provision
Chongqing Changan Automobile Company Limited 2017 Annual Report
Amount % Amount %
Within 6 months 194,289,589.40 96.57 - 170,925,572.05 98.14 -
6 to 12 months 5,512,392.58 2.74 275,619.62 1,295,462.92 0.74 64,773.15
Within 1 year
199,801,981.98 99.31 275,619.62 172,221,034.97 98.88 64,773.15
subtotal
1 to 2 years 405,884.15 0.20 40,588.42 803,497.37 0.46 80,349.74
2 to 3 years 48,000.00 0.02 14,400.00 227,858.77 0.13 68,357.63
3 to 4 years 193,123.94 0.10 96,561.97 - - -
4 to 5 years - - - 74,585.84 0.04 59,668.67
Over 5 years 750,682.01 0.37 750,682.01 859,502.81 0.49 859,502.81
Total 201,199,672.08 100 1,177,852.02 174,186,479.76 100 1,132,652.00
As at 31 December 2017, there are no individually significant items analyzed individually for provision (2016:
Nil).
(3) For the year ended 31 December 2017, provision for other receivables amounted to RMB1,231,570.84
have been accrued (2016: RMB1,190,098.91). Provision for other receivables amounted to
RMB1,109,854.82 has been reversed (2016: RMB145,673.79).
(4) For the year ended 31 December 2017, provision for impairment of other receivables amounted to
RMB85,402.61 has been written off (2016: RMB1,185,574.00).
(5) An analysis of the other receivables by nature is as follows:
Nature 2017
Energy-saving and new
1,356,575,528.00 1,092,099,200.00
energy subsidy
Petty Cash 93,960,780.74 69,412,492.44
Secuity Deposit 12,526,804.36 20,744,568.68
Export rebates 19,865,767.18 16,477,474.15
Others 162,347,574.76 204,665,443.22
Total 1,645,276,455.04 1,403,399,178.49
(6) As at 31 December 2017, top five debtors of other receivables are as follows:
Proportion of
total other
Debtors Amount Nature Aging receivables
Provision
(%)
Energy-saving and new Within three
First 1,080,007,000.00 65.48 -
energy subsidy years
Within three
Second 230,157,128.00 New energy subsidy 13.95 -
years
Third 40,784,896.53 Disposal of assets two to three year 2.47 -
Fourth 25,358,400.00 New energy subsidy one to two year 1.54 -
Fifth 21,053,000.00 New energy subsidy Within one year 1.28 -
Total 1,397,360,424.53 84.72 -
As at 31 December 2016, top five debtors of other receivables are as follows:
Chongqing Changan Automobile Company Limited 2017 Annual Report
Proportion
of total other
Debtors Amount Nature Aging
receivables
Provision
(%)
Energy-saving and new Within two year
First 573,938,000.00
energy subsidy
40.78 -
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 -
(7) For the year ended 2017, there is no accounts receivable derecognized due to transfer of financial assets.
(2016: Nil).
Chongqing Changan Automobile Company Limited 2017 Annual Report
7. Inventories
(1) Classification of inventories
2017
Item
Balance Provision Net value Balance Provision Net value
Raw materials 461,911,233.10 33,713,007.05 428,198,226.05 473,106,798.06 57,482,949.30 415,623,848.76
Material in
511,912,371.36 - 511,912,371.36 60,411,091.37 - 60,411,091.37
transit
Work in
633,181,546.29 32,329,369.55 600,852,176.74 615,327,063.78 53,155,331.21 562,171,732.57
progress
Finish goods 3,154,147,791.47 103,902,330.06 3,050,245,461.41 6,236,803,244.45 91,631,171.89 6,145,172,072.56
Consigned
processing 26,530,300.45 - 26,530,300.45 60,288,380.19 - 60,288,380.19
material
Consumables 48,444,885.79 - 48,444,885.79 60,439,697.16 - 60,439,697.16
Total 4,836,128,128.46 169,944,706.66 4,666,183,421.80 7,506,376,275.01 202,269,452.40 7,304,106,822.61
(2) Provision for inventories
2017
Deduction
Beginning
Type Provision Reversal Or Written Ending balance
balance
off
Raw materials 57,482,949.30 17,808,606.07 41,578,548.32 33,713,007.05
Work in
53,155,331.21 7,166,686.01 27,992,647.67 32,329,369.55
progress
Finish goods 91,631,171.89 76,579,038.73 64,307,880.56 103,902,330.06
Total 202,269,452.40 101,554,330.81 133,879,076.55 169,944,706.66
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
(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 2017 Annual Report
Note for the inventory
As at 31 December 2017, 630 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: 200 cars in
China Everbright Bank; 112 cars in Bank of Communications Co., Ltd.; 27 cars in China Merchants Bank; and 291
cars in Industrial Bank Co., Ltd.
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.
8. Other current assets
Item 2017
Input VAT to be deducted 1,699,621,114.17 925,275,929.61
Others 6,289,416.26 784,401.26
Total 1,705,910,530.43 926,060,330.87
9. Available-for-sale financial assets
2017
Item
Book value Provision Net value Book value Provision Net value
Available-for-sale
equity instrument
Measured at fair
191,485,000.00 27,120,000.00 164,365,000.00 280,235,000.00 27,120,000.00 253,115,000.00
value
Measured at
379,361,274.00 1,809,274.00 377,552,000.00 179,361,274.00 - 179,361,274.00
historical cost
Total 570,846,274.00 28,929,274.00 541,917,000.00 459,596,274.00 27,120,000.00 432,476,274.00
Available-for-sale financial assets measured at fair value:
As at 31 December 2017, the available-for-sale equity securities instrument measured at fair value is 35.50 million
ordinary shares of Southwest Securities Co., Ltd. (31 December 2016: 35.50 million ordinary shares of Southwest
Securities Co., Ltd.).
Item 2017
Cost of equity instrument 50,000,000.00 50,000,000.00
Fair value 164,365,000.00 253,115,000.00
Accumulated amount of change in fair value recorded in other
141,485,000.00 230,235,000.00
comprehensive income
Provision 27,120,000.00 27,120,000.00
Chongqing Changan Automobile Company Limited 2017 Annual Report
9. Available-for-sale financial assets (continued)
Available-for-sale financial assets measured at historical cost:
2017
Shareholding Cash dividend in
Book value Provision
Item Ratio (%) current year
Beginning balance Addition Disposal Ending balance Beginning balance Addition Disposal Ending balance
China South Industry Group Finance Co., Ltd. 80,000,000.00 - - 80,000,000.00 - - - - 3.83 46,814,239.43
Chongqing Ante trading Co., Ltd 3,000,000.00 - - 3,000,000.00 - - - - 10.00 -
Sichuan Glass Co., Ltd. 1,809,274.00 - - 1,809,274.00 - 1,809,274.00 1,809,274.00 0.64 -
Zhong Fa Lian Investment Co., Ltd. 21,000,000.00 - - 21,000,000.00 - - - - 10.00 -
CAERI(Beijing) automobile Lightweight Technology
Research Institution Co., Ltd.
3,000,000.00 - - 3,000,000.00 - - - - 6.89 -
Guoqi Automobile Power Cell Research Co., Ltd. 40,000,000.00 - - 40,000,000.00 - - - - 7.41 -
United Prosperity Investment (ShenZhen) Co., Ltd 30,552,000.00 - - 30,552,000.00 - - - - 5.00 -
Corun Hybrid Power Technology Co. Ltd - 200,000,000.00 - 200,000,000.00 - - - 9.24 -
Total 179,361,274.00 200,000,000.00 379,361,274.00 - 1,809,274.00 - 1,809,274.00 - 46,814,239.43
2016
Shareholding Cash dividend in
Book value Provision
Item Ratio (%) current year
Beginning balance Addition Disposal Ending balance Beginning balance Addition Disposal Ending balance
China South Industry Group Finance Co., Ltd. 80,000,000.00 - - 80,000,000.00 - - - - 3.83 50,677,453.17
Chongqing Ante trading Co., Ltd 3,000,000.00 - - 3,000,000.00 - - - - 10.00 -
Sichuan Glass Co., Ltd. 1,809,274.00 - - 1,809,274.00 - - - - 0.64 -
Zhong Fa Lian Investment Co., Ltd. 21,000,000.00 - - 21,000,000.00 - - - - 10.00 -
CAERI(Beijing) automobile Lightweight Technology
3,000,000.00 - - 3,000,000.00 - - - - 6.89 -
Research Institution Co., Ltd.
Guoqi Automobile Power Cell Research Co., Ltd. 40,000,000.00 - - 40,000,000.00 - - - - 7.41 -
United Prosperity Investment (ShenZhen) Co., Ltd 30,552,000.00 - - 30,552,000.00 - - - - 5.00 -
Total 179,361,274.00 - - 179,361,274.00 - - - - - 50,677,453.17
Chongqing Changan Automobile Company Limited 2017 Annual Report
Provision for available-for-sale financial asstes Beginning balance Addition Disposal Ending balance
Available-for-sale financial assets measured at fair value 27,120,000.00 - - 27,120,000.00
Available-for-sale financial assets measured at historical cost - 1,809,274.00 - 1,809,274.00
Total 27,120,000.00 1,809,274.00 - 28,929,274.00
Chongqing Changan Automobile Company Limited 2017 Annual Report
10. Long-term equity investments
2017
Investment income Other
Other equity Cash dividends Book value Provision
Investee Beginning balance Addition Deduction under equity comprehensive Provision
variation declared ending balance ending balance
method income
Joint Venture
Chongqing Changan Suzuki Automobile
1,230,836,876.85 - - (42,413,558.40) - 2,282,391.98 - - 1,190,705,710.43 -
Co., Ltd.
Jiangling Holding Co., Ltd. 2,991,207,303.06 - - (86,461,777.56) (248,641.80) 3,253,059.67 - - 2,907,749,943.37 -
Changan Ford Automobile Co., Ltd. 5,663,808,819.68 - - 6,039,117,284.52 - - (7,577,500,000.00) - 4,125,426,104.20 -
Changan Mazda Automobile Co., Ltd. 2,146,340,500.42 - - 1,268,089,310.60 - - (975,000,000.00) - 2,439,429,811.02 -
Changan Ford Mazda Engine Co., Ltd. 908,715,700.67 - - 119,122,694.41 - - (124,000,000.00) - 903,838,395.08 -
Changan PSA Automobiles Co., Ltd. 647,839,655.26 - - (554,278,528.50) - - - - 93,561,126.76 -
Associates
Chongqing Xiyi Automobile Linkage Rod
7,556,448.42 - (6,005,819.20) (1,550,629.22) - - - - - -
Co., Ltd.（note1）
Chongqing Changan Kuayue Automobile
83,406,464.16 - - 17,993,428.27 - - - - 101,399,892.43 -
Co., Ltd.
Chongqing Changan Kuayue Automobile
- - - - - - - - - -
Sales Co., Ltd. (note2)
Beijing Fang’an cresent taxi Co., Ltd.
- - - - - - - - - -
(note2)
Changan Auto Finance Co.,Ltd 1,063,655,241.51 650,000,000.00 - 95,278,795.38 - 8,735,954.84 - - 1,817,669,991.73 -
Zhenjiang Demao Hairun equity investment
- 518,743,029.48 - (107.53) - - - - 518,742,921.95 -
fund partnership (limited partnership)
Total 14,743,367,010.03 1,168,743,029.48 (6,005,819.20) 6,854,896,911.97 (248,641.80) 14,271,406.49 (8,676,500,000.00) - 14,098,523,896.97 -
Note1: As at 22 December 2017, the Group transferred 40% of the Chongqing Xiyi Automobile Linkage Rod Co., Ltd. To Yunnan Xiyi industrial Co.,Ltd, which is Controlled by the
same ultimate holding company, at the price of RMB7,069,600.00.
Note2: As at 31 December 2017, 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 2017 Annual Report
10. Long-term equity investments (continued)
2016
Investment income Other
Other equity Cash dividends Book value Provision
Investee Beginning balance Addition Deduction under equity comprehensive Provision
variation declared ending balance ending balance
method income
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., Ltd. 2,708,643,943.64 - - 281,552,504.60 (166,479.23) 1,177,334.05 - - 2,991,207,303.06 -
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 Automobile Co., Ltd. 1,998,126,415.64 - - 998,214,084.78 - - (850,000,000.00) - 2,146,340,500.42 -
Changan Ford Mazda Engine Co., Ltd. 781,796,686.36 - - 126,734,131.00 - 184,883.31 - - 908,715,700.67 -
Changan PSA Automobiles Co., Ltd. 1,462,904,374.63 - - (815,064,719.37) - - - - 647,839,655.26 -
Associates
Chongqing Xiyi Automobile Linkage Rod
7,511,430.77 - - 45,017.65 - - - - 7,556,448.42 -
Co., Ltd.
Chongqing Changan Kuayue Automobile
76,219,385.83 - - 7,187,078.33 - - - - 83,406,464.16 -
Co., Ltd.
Chongqing Changan Kuayue Automobile
- - - - - - - - - -
Sales Co., Ltd.
Beijing Fang’an cresent taxi Co., Ltd. - - - - - - - - - -
Changan Auto Finance Co.,Ltd 1,155,000,000.00 - - (91,344,758.49) - - - - 1,063,655,241.51 -
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 -
Chongqing Changan Automobile Company Limited 2017 Annual Report
11. Investment property
Cost Model
2017
Item Builidings
2017
Original cost
Beginning and Ending 10,050,100.00 10,050,100.00
Accumulated depreciation
and amortization
Beginning 2,267,115.60 2,040,404.04
Accrual 226,711.56 226,711.56
Ending 2,493,827.16 2,267,115.60
Impairment Provision
Beginning and Ending - -
Carrying amount
Ending 7,556,272.84 7,782,984.40
Beginning 7,782,984.40 8,009,695.96
The investment property is rented to third parties in the form of operating lease.
As at 31 December 2017, there is no investment property without property certificate (As at 31 December 2016:
Nil).
12. Fixed assets
(1) Details of fixed assets
2017
Item Buildings Machinery Vehicles Other Equipments Total
Original cost
Beginning 6,585,025,213.48 14,656,950,077.02 635,870,396.01 4,254,426,806.07 26,132,272,492.58
Purchase 93,109,589.36 229,213,269.80 18,636,091.12 53,700,062.46 394,659,012.74
Transfer from
Construction in 914,913,063.52 3,335,754,582.56 112,909,603.35 876,084,376.68 5,239,661,626.11
progress
Disposal 4,697,436.93 441,600,013.54 9,248,049.09 218,967,942.16 674,513,441.72
Ending 7,588,350,429.43 17,780,317,915.84 758,168,041.39 4,965,243,303.05 31,092,079,689.71
Accumulated
depreciation
Beginning 1,333,083,905.82 6,198,699,998.91 93,947,322.89 2,017,878,519.69 9,643,609,747.31
Accrual 254,351,666.72 1,209,909,941.02 120,844,400.33 329,677,458.08 1,914,783,466.15
Disposal 1,795,642.30 225,452,257.08 7,434,957.28 156,939,526.77 391,622,383.43
Ending 1,585,639,930.24 7,183,157,682.85 207,356,765.94 2,190,616,451.00 11,166,770,830.03
Impairment
provision
Chongqing Changan Automobile Company Limited 2017 Annual Report
Beginning 84,183,751.00 793,157,069.89 268,506.89 130,568,903.50 1,008,178,231.28
Accrual - 64,328,680.40 - 15,651,081.91 79,979,762.31
Disposal 812,074.28 183,876,023.99 44,654.66 22,645,331.68 207,378,084.61
Ending 83,371,676.72 673,609,726.30 223,852.23 123,574,653.73 880,779,908.98
Carrying
amount
Ending 5,919,338,822.47 9,923,550,506.69 550,587,423.22 2,651,052,198.32 19,044,528,950.70
Beginning 5,167,757,556.66 7,665,093,008.22 541,654,566.23 2,105,979,382.88 15,480,484,513.99
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
(2) Fixed assets that are temporarily unused
2017
Item Original cost Accumulated depreciation Impairment provision Carrying amount
Buildings 150,631,017.32 76,892,209.89 52,199,841.54 21,538,965.89
Machinery 1,826,830,449.60 1,259,936,903.19 555,048,275.37 11,845,271.04
Vehicles 110,256.41 32,307.39 77,949.02 -
Other
155,250,949.58 100,552,513.98 54,387,445.40 310,990.20
Equipments
Total 2,132,822,672.91 1,437,413,934.45 661,713,511.33 33,695,227.13
Chongqing Changan Automobile Company Limited 2017 Annual Report
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
(3) The book value of fixed asstes which are rented out under operating leases is as follow:
Item 2017
Machinery 10,288,642.35 -
(4) Fixed assets without property certificate as at 31 December 2017 are as follow:
Item Carrying amount Reason for incomplete certificate of title
Painting plant 165,863,087.21 In process
Assemble plant 161,782,092.72 In process
Yu Zui Auto City 119,702,964.68 Project not settled
H plant Phase IV 80,047,260.68 In process
Welding plant 76,746,455.24 In process
Other plant 74,562,670.66 In process
Other facilities 66,774,368.30 In process
S Engine plant 65,126,242.20 In process
Office building 55,149,082.61 In process
Stamping plant 49,376,369.63 In process
Second foundry plant 46,311,487.32 In process
EA Casting workshop Phase I 38,727,358.12 In process
Second plant and public building 36,929,263.04 In process
Engine workshop 30,952,044.48 In process
Comercial vehicle workshop 27,323,337.17 In process
Technology center workshop 15,039,982.76 In process
Warehouse 11,500,499.33 In process
Staff cafeteria 10,091,201.53 In process
Buildings in testing projects of
4,947,137.98 In process
Dianjiang
Chongqing Changan Automobile Company Limited 2017 Annual Report
13. Construction in progress
(1) Details of construction in progress
2017
Item
Balance Provision Carrying amount Balance Provision Carrying amount
Mini-bus production -
997,340,616.73 - 997,340,616.73 332,011,471.05 332,011,471.05
equipment
Yuzui motor city project 247,220,662.88 - 247,220,662.88 1,670,075,876.73 - 1,670,075,876.73
Car production equipment 165,767,240.81 - 165,767,240.81 68,289,153.08 - 68,289,153.08
Engine plant 341,191,269.61 - 341,191,269.61 749,552,604.51 - 749,552,604.51
Vehicle research institution 401,869,572.35 - 401,869,572.35 119,918,357.19 - 119,918,357.19
Vehicle moulds 365,419,879.40 - 365,419,879.40 446,423,242.75 - 446,423,242.75
Light vehicle technical -
transformation project of 28,393,497.74 - 28,393,497.74 39,361,192.09 39,361,192.09
Baoding Changan bus
Plant for vehicle test project 6,052,888.00 - 6,052,888.00 16,109,878.08 - 16,109,878.08
Beijing vehicle construction -
163,600,842.58 - 163,600,842.58 47,364,971.59 47,364,971.59
project
Engine Base of Nanjing 3,201,929.85 - 3,201,929.85 809,483.55 - 809,483.55
Yuzui Refitting factory 30,880,135.49 - 30,880,135.49 29,200,422.80 - 29,200,422.80
Car production Project Of -
156,409,567.96 - 156,409,567.96 2,414,375.90 2,414,375.90
Hefei Changan
Nanjing Welding
Technological 3,351,229.28 - 3,351,229.28 16,506,412.14 - 16,506,412.14
transformation project
Yubei Factory 145,173.18 - 145,173.18 107,961,718.09 - 107,961,718.09
Others 323,328,649.66 - 323,328,649.66 175,704,671.23 - 175,704,671.23
Total 3,234,173,155.52 - 3,234,173,155.52 3,821,703,830.78 - 3,821,703,830.78
(2) Significant movements of construction in progress in 2017
Chongqing Changan Automobile Company Limited 2017 Annual Report
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
469,453.00 332,011,471.05 904,259,078.63 238,929,932.95 58% 58% Raised 997,340,616.73
Yuzui motor city project 550,852.00 1,670,075,876.73 921,385,775.94 2,344,240,989.79 75% 75% Raised and issued 247,220,662.88
Car production equipment 720,457.00 68,289,153.08 557,341,566.08 459,863,478.35 21% 21% Raised 165,767,240.81
Engine plant 819,089.00 749,552,604.51 694,207,595.61 1,102,568,930.51 77% 77% Raised and issued 341,191,269.61
Vehicle research institution 213,052.00 119,918,357.19 353,047,362.80 71,096,147.64 62% 62% Raised 401,869,572.35
Vehicle moulds 180,742.00 446,423,242.75 196,116,894.76 277,120,258.11 95% 95% Raised 365,419,879.40
Plant for vehicle test project 157,122.00 16,109,878.08 22,263,068.71 32,320,058.79 85% 85% Raised 6,052,888.00
Yubei Factory 56,223.00 107,961,718.09 47,568,382.24 155,384,927.15 28% 28% Raised 145,173.18
Beijing vehicle construction
project
524,466.53 47,364,971.59 213,262,827.72 97,026,956.73 67% 67% Raised 163,600,842.58
Light vehicle technical
transformation project of 80,403.00 39,361,192.09 55,351,921.20 66,319,615.55 54% 54% Raised 28,393,497.74
Baoding Changan Bus
Engine Base of Nanjing 19,699.00 809,483.55 4,100,655.47 1,708,209.17 37% 37% Raised 3,201,929.85
Yuzui Refitting factory 29,977.00 29,200,422.80 5,775,934.52 4,096,221.83 27% 27% Raised 30,880,135.49
Car production project of
Hefei Changan
389,601.00 2,414,375.90 164,546,124.65 10,550,932.59 27% 27% Raised 156,409,567.96
Nanjing Welding
Technological transformation 9,700.00 16,506,412.14 - 13,155,182.86 94% 94% Raised 3,351,229.28
project
Others 175,704,671.23 512,903,762.52 365,279,784.09 323,328,649.66
Total 3,821,703,830.78 4,652,130,950.85 5,239,661,626.11 3,234,173,155.52
(2) Significant movements of construction in progress in 2016：
Chongqing Changan Automobile Company Limited 2017 Annual Report
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 2017 Annual Report
14. Intangible assets
Details of intangibale assets
2017
Trademark use Non-patent
Item Land use rights Software use rights Total
rights technology
Original cost
Beginning 2,355,850,569.93 400,653,507.92 211,784,400.00 2,857,526,071.81 5,825,814,549.66
Purchase 28,410,154.07 40,149,946.39 - 838,679.23 69,398,779.69
Internal
research and - - - 1,261,781,067.96 1,261,781,067.96
development
Ending 2,384,260,724.00 440,803,454.31 211,784,400.00 4,120,145,819.00 7,156,994,397.31
Accumulated
amortization
Beginning 232,965,494.61 364,220,086.22 135,950,586.62 1,504,959,094.21 2,238,095,261.66
Accrual 48,026,307.93 32,739,013.96 17,502,880.00 549,053,083.08 647,321,284.97
Ending 280,991,802.54 396,959,100.18 153,453,466.62 2,054,012,177.29 2,885,416,546.63
Impairment
provision
Beginning - 21,319,804.81 - 121,448,808.16 142,768,612.97
Accrual - - - 80,864,108.04 80,864,108.04
Ending - 21,319,804.81 - 202,312,916.20 223,632,721.01
Carrying
amount
Ending 2,103,268,921.46 22,524,549.32 58,330,933.38 1,863,820,725.51 4,047,945,129.67
Beginning 2,122,885,075.32 15,113,616.89 75,833,813.38 1,231,118,169.44 3,444,950,675.03
2016
Trademark use Non-patent
Item Land use rights Software use rights Total
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
Chongqing Changan Automobile Company Limited 2017 Annual Report
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
As at 31 December 2017, the intangible assets from internal research and development account for 46.06% of total
intangible assets (as at 31 December 2016: 35.74%).
As at 31 December 2017, there is no land use right with no certificate (As at 31 December 2016: Nil).
15. Development expenditure
2017
Addition Deduction
Item Beginning balance Charged to income Ending balance
Internal research and Recognized as
Statement of the
development intangible assets
current year
Automobile
1,111,176,453.49 1,014,802,796.47 1,261,781,067.96 27,559,853.90 836,638,328.10
Development
2016
Addition Deduction
Item Beginning balance Charged to income Ending balance
Internal research and Recognized as
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
16. Goodwill
2017 and 2016
Addition Deduction
Beginning Business
Investee Ending balance
balance combination under Disposal
common control
Hebei Changan
9,804,394.00 - - 9,804,394.00
Automobile Co., Ltd.
Nanjing Changan
- - - -
Automobile Co., Ltd.
Total 9,804,394.00 - - 9,804,394.00
Movement of provision for goodwill is as follow:
2017 and 2016
Beginning Addition Deduction
Investee Ending balance
balance Accrual Disposal
Nanjing Changan
Automobile Co., 73,465,335.00 - - 73,465,335.00
Ltd.
Chongqing Changan Automobile Company Limited 2017 Annual Report
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.
17. Long-term deferred expenses
2017
Item Beginning balance Addition Amortization Ending
balance
Long-term
deferred 13,448,409.63 662,532.39 565,352.63 13,545,589.39
expenses
2016
Item Beginning balance Addition Amortization Ending
balance
Long-term
deferred 8,028,811.27 8,191,450.04 2,771,851.68 13,448,409.63
expenses
18. Deferred tax assets and liabilities
Item 2017
Deductible
Deductible temporary
Deferred tax assets： Deferred tax assets temporary Deferred tax assets
differences
differences
Assets provision 1,125,450,484.06 168,817,572.61 1,126,915,748.00 169,037,362.20
Accrued expenses and
5,127,444,400.38 769,116,660.06 5,393,107,999.39 808,966,199.91
contingent liabilities
Unpaid tech
development expense
519,329,094.71 77,899,364.21 306,173,312.02 45,925,996.80
and advertisement
expense
Deferred income 3,195,940,607.31 479,391,091.10 2,337,829,565.30 350,674,434.80
Unpaid salary and
257,554,155.44 38,633,123.29 486,688,568.49 73,003,285.27
bonus and others
Total 10,225,718,741.90 1,533,857,811.27 9,650,715,193.20 1,447,607,278.98
Item 2017
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 141,485,000.00 21,222,750.00 230,235,000.00 34,535,250.00
value recorded in
capital reserve
Unrcognized deductible temporary differences and tax losses of unrecognized are as follows:
Item 2017
Chongqing Changan Automobile Company Limited 2017 Annual Report
The deductible temporary
908,825,383.95 1,043,531,482.32
difference
The deductible tax loss 2,128,637,423.38 1,743,264,928.96
Total 3,037,462,807.33 2,786,796,411.28
Note: Due to the uncertainty of whether there will be enough taxable profit in future to utilize the above deductible
loss, no deferred tax assets have been recognized accordingly.
Maturity period for unrcognized deductible tax losses:
Year 2017
2017 - 284,843,562.52
2018 149,359,690.13 327,777,591.19
2019 699,253,694.79 706,542,668.17
2020 292,774,189.16 296,235,959.65
2021 104,062,642.15 127,865,147.43
2022 883,187,207.15 -
Total 2,128,637,423.38 1,743,264,928.96
19. Provision for the impairment of assets
2017
Deduction Ending
Item Beginning Addition
Reversal Write-off
I. Bad debt provision 35,066,408.55 9,819,230.33 4,168,398.28 530,122.61 40,187,117.99
II. Provision for inventory 202,269,452.40 101,554,330.81 18,341,152.61 115,537,923.94 169,944,706.66
III. Provision for fixed assets 1,008,178,231.28 79,979,762.31 - 207,378,084.61 880,779,908.98
IV. Provision for intangible assets 142,768,612.97 80,864,108.04 - - 223,632,721.01
V. Provision for goodwill 73,465,335.00 - - - 73,465,335.00
VI. Provision for available-for-sale - 1,809,274.00 - - 1,809,274.00
financial assets
Total 1,461,748,040.20 274,026,705.49 22,509,550.89 323,446,131.16 1,389,819,063.64
Note: Accrued provision for inventory is mainly due to the cost of some types of vehicles and engines is lower than
the net realizable value.
Accrued provision for fixed assets is mainly due to the abandoned factory and impairment of machinery
and moulds for the discontinued productions this year.
Accrued provision for intangible assets is mainly due to the impairment of the non-patent technology for
the discontinued productions.
Accured provision for available-for-sales assets is due to the impairment of the Sichuan Glass Co., Ltd.,
which went bankrupt.
2016
Deduction Ending
Item Beginning Addition
Reversal Write-off
I. Bad debt provision 69,120,291.07 5,263,615.41 1,309,093.69 38,008,404.24 35,066,408.55
Chongqing Changan Automobile Company Limited 2017 Annual Report
II. Provision for inventory 286,523,941.98 159,880,551.42 12,400,630.42 231,734,410.58 202,269,452.40
III. Provision for fixed assets 812,997,753.76 292,484,368.69 - 97,303,891.17 1,008,178,231.28
IV. Provision for intangible assets 117,836,023.23 24,932,589.74 - - 142,768,612.97
V. Provision for goodwill 73,465,335.00 - - - 73,465,335.00
Total 1,359,943,345.04 482,561,125.26 13,709,724.11 367,046,705.99 1,461,748,040.20
20. Short-term loans
Classification of short-term loans：
Item 2017
Mortgage loans 175,000,000.00 150,000,000.00
Credit loans 10,000,000.00 25,000,000.00
Total 185,000,000.00 175,000,000.00
As at 31 December 2017, the interest rates of the above loans were 4.35%-5.22% (as at 31 December 2016:
4.35%-5.44%).
As at 31 December 2017, there is no overdued short-term loan (as at 31 December 2016: Nil).
For the year ended 31 December 2017, the Group obtained short-term loan of RMB175,000,000.00 from China
South Industry Group Finance Co., Ltd. The credit was secured by the land use rights amounted to
RMB45,862,242.27.
For the year ended 31 December 2016, the Group obtained short-term loan of RMB150,000,000.00 and
commercial acceptance bill of RMB50,000,000.00 from China South Industry Group Finance Co., Ltd. The credit
was secured by the land use rights amounted to RMB27,573,761.27, buildings amounted to RMB34,815,200.25,
and accounts receivable amounted to RMB585,632,645.22.
21. Notes payable
Item 2017
Commercial acceptance bill 1,585,249,372.80 2,040,438,358.00
Bank acceptance bill 16,417,677,207.01 18,911,666,447.58
Total 18,002,926,579.81 20,952,104,805.58
As at 31 December 2017, there is no overdued unpaid notes payable (as at 31 December 2016: Nil)
22. Accounts payable
(1) Accounts payable
Item 2017
Accounts payable 21,902,826,194.15 19,880,580,102.39
(2) As at 31 December 2017, there is no significant accounts payable aged over one year.
23. Advances from customers
(1) Advances from customers
Chongqing Changan Automobile Company Limited 2017 Annual Report
Item 2017
Advances from customers 3,878,382,556.43 6,854,337,365.01
(2) As at 31 December 2017, advances from customers of RMB182,862,326.57 aged over one year is mainly
credit guarantee charged to dealers (as at 31 December 2016: RMB200,541,311.34).
24. Payroll payable
2017
Item Beginning Addition Deduction Ending
Short term salary
1,778,345,189.08 5,013,582,936.94 5,224,271,838.99 1,567,656,287.03
benefits
Defined contribution
59,207,286.15 515,800,516.74 506,851,767.59 68,156,035.30
plans
Early retirement
2,395,000.00 5,609,000.00 2,931,000.00 5,073,000.00
benefits
Total 1,839,947,475.23 5,534,992,453.68 5,734,054,606.58 1,640,885,322.33
2016
Item Beginning Addition Deduction Ending
Short term salary
1,429,426,563.28 5,297,598,085.78 4,948,679,459.98 1,778,345,189.08
benefits
Defined contribution
65,948,316.50 589,883,072.75 596,624,103.10 59,207,286.15
plans
Early retirement
4,239,000.00 162,754.00 2,006,754.00 2,395,000.00
benefits
Total 1,499,613,879.78 5,887,643,912.53 5,547,310,317.08 1,839,947,475.23
Short term salary benefits：
2017
Item Beginning Addition Deduction Ending
Salary, bonus,
allowance 1,422,437,552.40 4,027,904,589.37 4,242,840,934.91 1,207,501,206.86
and subsidy
Employee benefit 199,134,921.94 324,516,943.52 316,249,516.51 207,402,348.95
Social insurance 911,790.47 272,656,058.22 273,742,007.61 (174,158.92)
Medical insurance 80,386.21 234,753,565.07 234,274,720.98 559,230.30
Industrial injury
(514,009.35) 25,238,863.73 27,821,443.67 (3,096,589.29)
insurance
Maternity
1,345,413.61 12,663,629.42 11,645,842.96 2,363,200.07
insurance
Housing
82,224,632.32 272,664,886.79 295,667,357.84 59,222,161.27
accumulation fund
Labor fund and
employee 73,636,291.95 115,840,459.04 95,772,022.12 93,704,728.87
education fund
Total 1,778,345,189.08 5,013,582,936.94 5,224,271,838.99 1,567,656,287.03
Chongqing Changan Automobile Company Limited 2017 Annual Report
2016
Item Beginning Addition Deduction Ending
Salary, bonus,
allowance 1,106,536,422.36 4,306,054,239.92 3,990,153,109.88 1,422,437,552.40
and subsidy
Employee benefit 161,138,872.11 312,163,863.48 274,167,813.65 199,134,921.94
Social insurance (6,121,466.85) 269,622,349.86 262,589,092.54 911,790.47
Medical insurance (7,093,640.84) 240,476,817.18 233,302,790.13 80,386.21
Industrial injury
(844,065.90) 15,934,140.81 15,604,084.26 (514,009.35)
insurance
Maternity
1,816,239.89 13,211,391.87 13,682,218.15 1,345,413.61
insurance
Housing
116,439,265.39 296,922,573.42 331,137,206.49 82,224,632.32
accumulation fund
Labor fund and
employee 51,433,470.27 112,835,059.10 90,632,237.42 73,636,291.95
education fund
Total 1,429,426,563.28 5,297,598,085.78 4,948,679,459.98 1,778,345,189.08
Defined contribution plans：
2017
Item Beginning Addition Deduction Ending
Basic retirement
51,342,643.25 501,577,268.72 492,831,249.44 60,088,662.53
security
Unemployment
7,864,642.90 14,223,248.02 14,020,518.15 8,067,372.77
insurance
Total 59,207,286.15 515,800,516.74 506,851,767.59 68,156,035.30
2016
Item Beginning Addition Deduction Ending
Basic retirement
58,211,141.01 571,276,349.01 578,144,846.77 51,342,643.25
security
Unemployment
7,737,175.49 18,606,723.74 18,479,256.33 7,864,642.90
insurance
Total 65,948,316.50 589,883,072.75 596,624,103.10 59,207,286.15
The salary, bonus, allowance and subsidy, employee benefits and other social insurances mentioned above are paid
in time according to related laws and regulations and sets of the Group.
25. Taxes payable
Item 2017
Value-added tax 20,724,979.91 61,599,556.40
Consumption tax 315,331,520.62 331,988,223.84
Corporate income tax (5,866,525.85) 117,965,863.43
Individual Income tax 3,496,728.45 3,009,136.60
City maintenance and
27,566,226.75 17,543,881.51
construction tax
Chongqing Changan Automobile Company Limited 2017 Annual Report
Education surcharge 20,798,543.86 15,117,014.02
Others 12,269,923.40 8,457,813.36
Total 394,321,397.14 555,681,489.16
26. Interest payable
Item 2017
Corporate bonds interest - 73,458,000.00
27. Dividend payable
Item 2017
Dividend payable – Hebei Changan
79,742.80 79,742.80
minority interests
28. Other payables
Item 2017
Deposits of dealer and supplier 64,938,552.00 62,903,407.42
Mainteniance fees 166,703,421.92 192,922,034.17
Sales rewards 23,159,476.00 34,504,273.00
Advertisement fees 322,762,545.86 362,870,963.91
Warehousing and transport fees 169,100,711.73 102,452,830.88
Integrated service charges and
140,284,047.51 144,749,843.68
miscellaneous expenses
Project funds 1,499,489,207.73 406,491,895.86
Others 212,575,448.23 142,133,347.05
Total 2,599,013,410.98 1,449,028,595.97
29. Contingent liabilities
2017
Item Beginning Addition Deduction Ending
Warranty 2,010,153,951.87 941,896,851.28 528,092,528.45 2,423,958,274.70
2016
Item Beginning Addition Deduction Ending
Warranty 1,641,676,220.15 963,436,544.44 594,958,812.72 2,010,153,951.87
Note: Warranty is the estimated repair expenses for the sold vehicles within warranty period.
30. Other current liabilities
Item 2017
Accrued utilities 59,634,137.49 38,792,016.31
Chongqing Changan Automobile Company Limited 2017 Annual Report
Accrued transportation fee 540,328,536.56 640,217,259.02
Accrued labor service fee 55,133,842.44 59,225,911.17
Accrued technology royalty 164,331,878.15 90,722,615.32
Accrued commercial discount
1,928,754,888.23 2,949,334,782.23
payable
Accrued market development
578,090,324.55 337,366,127.19
expense
Accrued lease fee 96,417,863.95 24,218,943.95
Accrued counsulting fee 45,510,193.20 18,177,226.70
Others 93,952,981.25 53,515,316.99
Total 3,562,154,645.82 4,211,570,198.88
31. Current portion of non-current liabilities
Item 2017
Corporate bonds within 1 year(Note) - 1,979,020,519.81
Long-term loan within 1 year(NoteV.32) 13,151,946.67 13,320,608.00
Total 13,151,946.67 1,992,341,127.81
Note: With approval of circular Zheng Jian Xu Ke [2012] No. 388 issued by China Securities Regulatory
Commission, the Company issued bonds with the face value of RMB1,980,000,000.00 to the public. The
face interest rate is fixed at 5.30% and the interests shall be repaid annually on 23 April each year. The
final redemption date is 23 April 2017. After the deduction of issuance costs amounted to
RMB19,589,600.00, the Company raised RMB1,960,410,400.00 totally. The bond was guaranteed by
China Changan unconditionally and irrevocably, and was repaid on due.
Bonds payable is measured at amortized cost using the effective interest.
As at 31 December 2017, movement of bonds payables is as follows:
Beginning Accrued interest Amortization Paid principal/ Ending
interest
Bonds
1,979,020,519.81 - 979,480.19 1,980,000,000.00 -
payable
Interest
73,458,000.00 31,482,000.00 - 104,940,000.00 -
payable
As at 31 December 2016, movement of bonds payables is as follows:
Beginning Accrued interest Amortization Paid principal/ Ending
interest
Bonds
1,975,102,599.85 - 3,917,919.96 - 1,979,020,519.81
payable
Interest
73,458,000.00 104,940,000.00 - 104,940,000.00 73,458,000.00
payable
32. Long-term Loan
Item 2017
Credit loan 19,727,920.00 33,301,520.00
Deduction: Loan within 1 year (13,151,946.67) (13,320,608.00)
Chongqing Changan Automobile Company Limited 2017 Annual Report
Total 6,575,973.33 19,980,912.00
As at 31 December 2017, the interest rates of the alove loans were 3.044% (as at 31 December 2016: 3.044%.
As at 31 December 2017, there is no overdued long-term loans (as at 31 December 2016: Nil).
33. Long-term payroll payable
Item 2017
Net obligation of defined
100,782,000.00 96,591,000.00
benefit plan
Early retirement 12,230,000.00 8,541,000.00
Total 113,012,000.00 105,132,000.00
In addition to basic retirement security and unemployment insurance, which are managed by local government, the
Group offers different kinds of overall pension and annual compensation to some retired employees until their
death. The group provides subsidies to former military personnel who participated in specific wars and offers large
medical treatment insurance for all retired personnel. The group also offered early-retired salary, social insurances
and housing accumulation fund with different standards until their formal retirement (Male: Age 60; Female: Age
50 or 55). These amounts of social insurances and housing accumulation fund are based on cost base and statutory
proportion.
The present value of the defined benefits planis is valued by expected cumulative welfare units determination,
which was ensured by Mercer, a member of Acturial Society of Hongkong as at 31 December 2017.
As at balance sheet day, key actuarial assumptions are as follows:
2017
Discount rate
Retirement Staff 4.1%-4.2% 3.3%-3.5%
Early retirement staff 3.8%-3.9% 2.7%-3.0%
Retirement age
Male 60
Female 50/55 50/55
Increase rate of key benefits
Retired employees 0.0%-6.0% 0.0%-6.0%
Early retired employees 0.0%-4.0% 0.0%-4.0%
The future mortality rate is based on China experience life table of life insurance (2000-2003) “CL (2000-2003)”,
the table is a public statistics in PRC.
The sensitive analyses of key assumption are as follows:
2017
Increase Increase/(Decrease) in Decrease Increase/(Decrease) in
% the obligation of defined % the obligation of defined
benefits plan benefits plan
Discount rate 0.5% (6,270,000.00) 0.5% 6,672,000.00
Increase rate of key
0.5% 6,615,000.00 0.5% (6,281,000.00)
benefits
Mortality rate 5% (1,955,000.00) 5% 1,839,000.00
Chongqing Changan Automobile Company Limited 2017 Annual Report
2016
Increase Increase/(Decrease) in Decrease Increase/(Decrease) in
% the obligation of defined % the obligation of defined
benefits plan benefits plan
Discount rate 0.5% (6,280,000.00) 0.5% 6,330,000.00
Increase rate of key
0.5% 6,300,000.00 0.5% (6,240,000.00)
benefits
Mortality rate 5% (2,138,000.00) 5% 2,139,000.00
The sensitive analysis above is based on the deduction to reasonable change of key assumption as at the balance
sheet date. Sensitive analysis is resulted from fluctuation of main assumptions with other assumptions unchanged.
As all assumptions are not isolated from each other, sensitive analysis shall not represent actual result of obligation
of defined benefits plan.
The related costs of the defined benefit plan charged to income statement are as follows：
2017
Service costs- current period 41,000.00 52,000.00
Service costs- prior period - 302,000.00
Net interest 3,266,000.00 3,005,000.00
Post employment benefits, net 3,307,000.00 3,359,000.00
Recorded in general administrative expenses 3,307,000.00 3,359,000.00
Movement of present value of defined benefits plan is as follows:
Defined Benefit Plan Obligation
2017
Beginning balance 96,591,000.00 93,775,000.00
Charged to income Statement of the current period
Service costs- current period 41,000.00 52,000.00
Service costs- prior period - 302,000.00
Interest expense, net 3,266,000.00 3,005,000.00
Actuarial losses charged to other comprehensive
6,201,000.00 4,676,000.00
income
Benefits Payment (5,317,000.00) (5,219,000.00)
Ending balance 100,782,000.00 96,591,000.00
34. Special payables
2017
Item Beginning Addition Deduction Ending
Project 863 2,603,472.95 - - 2,603,472.95
Test on key technology of hybrid
1,412,205.57 - 65,540.00 1,346,665.57
electric vehicles
New vehicle product 5,821,883.01 6,820,000.00 4,833,556.43 7,808,326.58
Automobile product chain sharing
5,890,973.75 - 1,340,000.00 4,550,973.75
platform
Gasoline Engine Development 1,640,515.05 564,600.00 751,571.90 1,453,543.15
Chongqing Changan Automobile Company Limited 2017 Annual Report
Changan automobile E class
Gasoline engine cylinder block,
60,347,217.64 8,190,000.00 1,056,970.69 67,480,246.95
cylinder head production line
project
Land relocation compensation 55,350,709.40 - - 55,350,709.40
Automotive order to delivery
2,832,689.00 - 1,382,425.89 1,450,263.11
system project
Industrialization of patented
1,879,318.52 240,000.00 1,457,021.54 662,296.98
technologies
Vehicle network intelligent
information terminal middleware
1,858,453.43 2,150,000.00 2,548,400.48 1,460,052.95
key technologies research and
application
Development and industrialization
(32,666,228.71) 120,000,000.00 72,751,490.71 14,582,280.58
of C206 pure electric cars
System development of
electromagnetic compatibility of 5,131,308.66 400,000.00 4,197,271.11 1,334,037.55
key accessories on electric cars
Intalligent manufacturIng project 61,526,291.76 1,683,000.00 17,754,134.36 45,455,157.40
Lightweight design of automobile
30,075,234.45 54,150,000.00 20,660,529.25 63,564,705.20
structure
Technology of All regional
- 1,000,000.00 - 1,000,000.00
platform development
Standardization of LTE-V wireless
transmission technology and
- 3,895,400.00 1,308,859.25 2,586,540.75
Development and validation of
prototype
Development and demonstration of
high performance magnesium - 1,605,000.00 103,841.48 1,501,158.52
alloys
Research and application of
integrated control integration
- 3,145,200.00 - 3,145,200.00
technology in intelligent cockpit
system of automobile industry
Others 13,793,496.32 3,930,580.00 4,452,556.69 13,271,519.63
Total 217,497,540.80 207,773,780.00 134,664,169.78 290,607,151.02
2016
Item Beginning Addition Deduction Ending
Project 863 2,627,172.95 - 23,700.00 2,603,472.95
Test on key technology of hybrid
2,324,391.07 - 912,185.50 1,412,205.57
electric vehicles
New vehicle product 6,663,072.47 - 841,189.46 5,821,883.01
Automobile product chain sharing
6,530,459.44 - 639,485.69 5,890,973.75
platform
Gasoline Engine Development 2,033,834.26 160,000.00 553,319.21 1,640,515.05
Development and industrialization
of the embedded software platform
263,547.70 - - 263,547.70
for automotive electronic
controllers
Changan automobile E class
Gasoline engine cylinder block,
60,357,617.64 - 10,400.00 60,347,217.64
cylinder head production line
project
Land relocation compensation 55,350,709.40 - - 55,350,709.40
Project 973 161,820.82 - - 161,820.82
Automotive order to delivery
3,175,689.00 1,790,000.00 2,133,000.00 2,832,689.00
system project
Chongqing Changan Automobile Company Limited 2017 Annual Report
Industrialization of patented
8,670,532.59 - 6,791,214.07 1,879,318.52
technologies
Vehicle network intelligent
information terminal middleware
(237,413.99) 2,580,000.00 484,132.58 1,858,453.43
key technologies research and
application
Development and industrialization
(28,922,057.58) - 3,744,171.13 (32,666,228.71)
of C206 pure electric cars
System development of
electromagnetic compatibility of 3,120,683.25 2,338,500.00 327,874.59 5,131,308.66
key accessories on electric cars
Intalligent manufacturIng project 29,912,733.30 45,000,000.00 13,386,441.54 61,526,291.76
Lightweight design of automobile
(94,602.64) 49,300,000.00 19,130,162.91 30,075,234.45
structure
Others 12,183,590.37 4,604,600.00 3,420,062.57 13,368,127.80
Total 164,121,780.05 105,773,100.00 52,397,339.25 217,497,540.80
35. Deferred income
2017
Item Beginning Addition Deduction Ending
Government grants
2,762,931,782.46 246,106,000.00 183,952,296.38 2,825,085,486.08
related to assets
Government grants
- 900,000,000.00 145,951,754.64 754,048,245.36
related to gains
Others 22,953,843.91 25,729,843.70 - 48,683,687.61
Total 2,785,885,626.37 1,171,835,843.70 329,904,051.02 3,627,817,419.05
2016
Item Beginning Addition Deduction Ending
Government grants
2,662,177,255.96 280,035,500.00 179,280,973.50 2,762,931,782.46
related to assets
Others 4,366,152.86 18,587,691.05 - 22,953,843.91
Total 2,666,543,408.82 298,623,191.05 179,280,973.50 2,785,885,626.37
As at 31 December 2017, details of liabilities related to government grants are as follows:
Recorded to
Relates to
Item Beginning Addition non-operating Ending
asset/gain
income
Funds for Beijing Changan project 1,082,156,856.13 155,540,000.00 35,654,140.96 1,202,042,715.17 Relates to asset
Subsidies for the automobile
516,102,750.02 - 28,199,166.75 487,903,583.27 Relates to asset
comprehensive testing ground project
Subsidies for the construction of Hefei
375,527,109.56 - 46,757,429.50 328,769,680.06 Relates to asset
new plants
Funds for Yuzui motor city project 244,397,959.12 - 5,683,673.52 238,714,285.60 Relates to asset
Light vehicle technical transformation
141,980,628.51 - 6,820,018.49 135,160,610.02 Relates to asset
project of Baoding Changan Bus
Engine production restructure program 100,000,000.00 - - 100,000,000.00 Relates to asset
Industry upgrading project for small
displacement engine and technological
108,619,861.17 - 15,965,833.29 92,654,027.88 Relates to asset
transformation project for CB type
engine production l
