FAW JIEFANG GROUP CO. LTD
Semi-Annual Report 2026
August 2026
Section I Important Notes Contents and Definitions
The Board of Directors the Directors and Senior Management of the
Company guarantee that the contents of this Semi-Annual Report are true
accurate and complete that there are no false records misleading statements
or material omissions and that they shall bear individual and joint legal
liabilities.Li Sheng the person in charge of the Company Yu Changxin the person
in charge of accounting work and Yang Li the person in charge of the
accounting organization (chief accountant) hereby declare and guarantee the
authenticity accuracy and completeness of the financial report in this Semi-
Annual Report.Except for the following directors other directors attended the Board of
Directors meeting to review the semi-annual report in person
Names of Positions of
Reasons for Not Name of the
Directors Not Directors Not
Present in Person Trustee
Present in Person Present in Person
Yu Changxin Director Work Li Sheng
Independent
Zhao Fuquan Work Wang Xu
director
This semi-annual report includes forward-looking statements such as
future plans and does not constitute a substantial commitment of the Company
to investors. Investors and relevant persons should maintain sufficient risk
awareness of this and understand the differences between plans forecasts and
commitments.The Company has described in detail the possible risks and
countermeasures for its future development in the section of Management
Discussion and Analysis. Investors are kindly requested to pay attention to
relevant contents. China Securities Journal Securities Times and CNINFO
(http://www.cninfo.com.cn) are the designated information disclosure media
selected by the Company. All information of the Company is subject to that
published in the above selected media. Investors are kindly requested to pay
attention to investment risks.The Company plans not to distribute cash dividends not to issue bonus
shares and not to convert capital reserves into share capital.This Report has been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions the
Chinese version shall prevail.Table of Contents
Section I Important Notes Contents and Definitions... 2
Section II Company Profile and Main Financial Indi... 7
Section III Management Discussion and Analysis ......10
Section IV Corporate Governance Environment and Social Responsibility .....29
Section V Important Matters ........................ 31
Section VI Changes in Shares and Shareholders .......39
Section VII Bonds ...................................47
Section VIII Financial Report .......................48
List of Documents for Future Reference
(I) Financial statements signed and sealed by the person in charge of the Company the person in
charge of accounting work and the person in charge of the accounting organization (chief
accountant).(II) Originals of all company documents and announcements publicly disclosed on the website
designated by the China Securities Regulatory Commission (CSRC) in the reporting period.Interpretation
Item Refers to Definition
Company the Company
FAW Jiefang Refers to FAW Jiefang Group Co. Ltd.Jiefang Limited Refers to FAW Jiefang Automotive Co. Ltd.Jiefang Group International Refers to FAW Jiefang Group International Automobile Co.Ltd.Tanzania Ltd. Refers to Jiefang Motors Tanzania Ltd.FAW Group Refers to China FAW Group Co. Ltd.FAW Refers to China FAW Co. Ltd.FAW Car Refers to FAW Car Co. Ltd.FAW Bestune Refers to FAW Bestune Auto Co. Ltd.Finance company Refers to First Automobile Finance Co. Ltd.Board of Directors Refers to Board of Directors of FAW Jiefang Group Co. Ltd.Shareholders’ Meeting Refers to Shareholders’ Meeting of FAW Jiefang Group Co.Ltd.SASAC Refers to State-owned Assets Supervision and AdministrationCommission of the State Council (SASAC)
Ministry of Finance Refers to Ministry of Finance of the People’s Republic ofChina
China Securities Regulatory
Commission Refers to China Securities Regulatory Commission (CSRC)
SZSE Refers to Shenzhen Stock Exchange
China Securities Depository
and Clearing Corporation Refers to Shenzhen Branch China Securities Depository and
Limited (CSDC) Clearing Corporation Limited
Company Law Refers to Company Law of the People’s Republic of China
Securities Law Refers to Securities Law of the People’s Republic of China
Articles of Association Refers to Articles of Association of FAW Jiefang Group Co.Ltd.Reporting Period Refers to January 1 2026 – June 30 2026
CNY CNY 10 thousand
CNY 100 million Refers to CNY CNY 10 thousand CNY 100 million
Section II Company Profile and Main Financial Indicators
I. Company Profile
Stock abbreviation FAW Jiefang Stock code 000800
Stock exchanges on which shares
are listed Shenzhen Stock Exchange
Chinese name of the Company 一汽解放集团股份有限公司
Chinese abbreviation of the
Company 一汽解放
English name of the Company FAW Jiefang Group Co. Ltd.English abbreviation of the
Company FAW Jiefang
Legal representative of the
Company Li Sheng
II. Contact Person and Contact Information
Secretary of the Board of Directors Securities Affairs Representative
Name Yang Li Yang Yuxin
No.2259 Dongfeng Street Changchun
Address Automobile Development Zone Jilin No.2259 Dongfeng Street Changchun
Province Automobile Development Zone Jilin Province
Tel. 0431-80918881 0431-80918882 0431-80918881 0431-80918882
Fax 0431-80918883 0431-80918883
E-mail faw0800@fawjiefang.com.cn faw0800@fawjiefang.com.cn
III. Other Information
1. Contact Information of the Company
Whether the registered address office address and its postal code official website email address etc. of the
Company changed during the reporting period
□Applicable□Not applicable
There was no change in the registered address office address and its postal code official website email address
etc. of the Company during the reporting period. For details please refer to the 2025 Annual Report.
2. Information Disclosure and Place for Preparation and Reference
Whether the information disclosure and place for preparation and reference changed during the reporting period
□Applicable□Not applicable
There was no change in the websites of stock exchanges and media names and their websites where the
Company discloses its semi-annual report nor in the place for preparation and reference of the Company’s
semi-annual report during the reporting period. For details please refer to the 2025 Annual Report.
3. Other Relevant Information
Whether other relevant information changed during the reporting period
□Applicable□Not applicable
IV. Main Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of previous years
□ Yes□No
Increase or Decrease of
This Reporting Same Period of the Reporting Period
Period Last Year Compared to the SamePeriod of the Previous
Year
Operating income (CNY) 37570961164.48 28078705058.07 33.81%
Net profit attributable to shareholders of
the listed company (CNY) 306465407.39 19655810.39 1459.16%
Net profit attributable to shareholders of
the listed company after deducting non- 33166100.88 -376637639.18 108.81%
recurring profits and losses (CNY)
Net cash flows from operating activities
(CNY) 6477573067.18 7635289020.71 -15.16%
Basic earnings per Share (CNY/share) 0.0623 0.0040 1457.50%
Diluted earnings per Share (CNY/share) 0.0623 0.0040 1457.50%
Weighted average return on equity 1.15% 0.08% Increased by 1.07percentage points
Increase or Decrease at
End of the End of the the End of the Reporting
Reporting Period Previous Year Period Compared to the
End of the Previous Year
Total assets (CNY) 82276208644.57 72505798266.39 13.48%
Net assets attributable to shareholders of
the listed company (CNY) 26387244974.83 26471578740.78 -0.32%
V. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences in Net Profits and Net Assets in the Financial Report Are Disclosed Simultaneously
according to the International Accounting Standards and China Accounting Standards
□Applicable□Not applicable
During the reporting period there is no difference in net profits and net assets in the financial report disclosed
according to the international accounting standards and China accounting standards.
2. Differences in Net Profits and Net Assets in the Financial Report Disclosed Simultaneously according
to Foreign Accounting Standards and China Accounting Standards
□Applicable□Not applicable
During the reporting period there is no difference in net profits and net assets in the financial report disclosed
according to foreign accounting standards and China accounting standards.VI. Items and Amounts of Non-recurring Profit and Loss
□Applicable □ Not applicable Unit:
CNY
Item Amount Description
Profits or losses on disposal of non-current assets (including the It refers to the net loss
write-off part of the provision for impairment of assets made) -5512843.79 on disposal of non-current assets.Government subsidies included in the current profit or loss
(except those closely related to the Company’s normal operations
conforming to the State policies and regulations and enjoyed in 310602471.01
line with the specified standards and having a continuous impact
on the profit or loss of the Company)
Gains and losses from changes in fair value of financial assets and This refers to the
financial liabilities held by non-financial enterprises and gains investment income
and losses from disposal of financial assets and financial 20561511.39 arising from the disposal
liabilities other than those arising from effective hedging of held-for-trading
activities related to the Company’s normal business operations. financial assets.Non-operating income and expenses other than the above 6643810.41 The net non-operatingincome and expenses.Less: amount affected by income tax 58996064.81
Amount affected by minority shareholder’s equity (after-tax) -422.30
Total 273299306.51
Specific conditions of other profit and loss items meeting the definition of non-recurring profit and loss:
□Applicable□Not applicable
There are no specific conditions of profit and loss items meeting definition of non-recurring profit and loss for
the Company.Explanation on defining the non-recurring profit and loss items listed in the Explanatory Announcement No.1
on Information Disclosure by Companies Issuing Securities Publicly - Non-recurring Profit and Loss as
recurring profit and loss items
□Applicable□Not applicable
The Company does not define the non-recurring profit and loss items listed in the Explanatory Announcement
No. 1 on Information Disclosure by Companies Issuing Securities Publicly - Non-recurring Profit and Loss as
recurring profit and loss items.Section III Management Discussion and Analysis
I. Main Businesses of the Company in the Reporting Period
1. Main Business
The Company is a commercial vehicle manufacturer that produces heavy medium and light trucks and
buses as well as core components such as engines transmissions and axles and has a complete manufacturing
system covering raw materials core components key large assemblies and complete vehicles. The products of
the Company are mainly used in market segments such as traction cargo carrying dumping special purposes
highway passenger transport bus passenger transport etc. and the Company also provides standardized and
customized commercial vehicle products.The Company is committed to becoming a provider of green and intelligent transportation solutions that is
“First in China World-class” focusing on its core product lines adhering to innovation-driven and
transformation-driven approaches and building a pioneering advantage. During the reporting period the
Company’s principal business products and business model did not undergo any significant changes.The Company has steadfastly pursued technology leadership and business innovation as key strategic
directions for development proactively accelerating the optimization and adjustment of its production capacity
structure closely aligning with critical development trends such as product premiumization and new energy
transformation while continuously optimizing resource allocation and advancing intelligent upgrades. The
Company has successfully built multiple advanced manufacturing bases at the industry-leading level laying a
solid foundation for the Company’s sustained market leadership.
2. Industry Development
In the first half of 2026 the demand in the medium and heavy truck market was robust with the industry’s
sales volume reaching 736 thousand units a year-on-year increase of 22.9%. In terms of vehicle segments
affected by the international situation domestic diesel costs rose significantly and the economic advantages of
natural gas heavy trucks once again gained attention; new energy medium and heavy trucks shifted from policy
guidance to market traction generally continuing the growth momentum of 2025. In addition the global
economy warmed up in the first half of the year emerging economies steadily recovered and the infrastructure
and logistics industries drove a substantial increase in truck demand leading to a significant year-on-year
growth in industry exports.
3. Business Operations
In the first half of the year against the backdrop of a complex global situation and unbalanced economicrecovery China’s commercial vehicles showed a development trend of “steady recovery in domestic demandrapid export growth in-depth structural adjustment and surging momentum in new energy”. FAW Jiefang
anchored the strategic goal of “China’s First World-Class” firmly steered towards “Technology Jiefang GreenJiefang and Global Jiefang” seized incremental opportunities across the entire system and all fronts pooled
collaborative efforts enhanced capacity and efficiency acted with urgency and dedication and solidly
advanced key tasks such as tackling core technologies iterative product renewal the three-year quality
improvement and the construction of a 100-billion-yuan financial pool achieving staged sound results in
business operations and development.As of June 30 2026 the Company’s total assets amounted to CNY 82.276 billion a year-on-year increase
of 13.48%; net assets attributable to shareholders of the listed company were CNY 26.387 billion a year-on-
year decrease of 0.32%; during the reporting period the operating income achieved was CNY 37.571 billion a
year-on-year increase of 33.81%; the net profit attributable to shareholders of the parent company achieved was
CNY 306 million a year-on-year increase of 1459.16%.In the second half of the year FAW Jiefang will solidly implement the Company’s annual work ideas
adhere to focusing on operations improving quality and reducing costs prioritizing sales volume expanding
the light-duty segment and deeply cultivating overseas markets seize opportunities accelerate transformation
at full speed forge ahead toward new horizons and fight decisively to achieve the annual operational goals and
tasks going all out to achieve a triumphant start to the “15th Five-Year Plan”.II. Analysis of Core CompetitivenessThe Company adheres to the corporate vision of “being the most proud commercial vehicle enterprise andthe most trustworthy commercial vehicle brand” the mission of “becoming the China’s first and world-classprovider of green and intelligent transportation solutions and building a more prosperous society”; takes
products and services as the main task customers and employees as the foundation innovation and reform as
the driving force; focuses on industry trends and customer needs and rapidly enhances product competitiveness
and service levels.
1. In terms of product R&D: The Company has built the most powerful and complete independent R&D
system in China covering forward-looking technology engines transmissions axles and complete vehicles
forming an efficient and collaborative R&D team of more than 3000 people. The Company possesses five core
capabilities: technological innovation performance development lean design pilot testing and test certification
and has established five technical platforms: energy-saving and environmental protection safety and comfort
reliability and durability electronic control and intelligence and materials and processes. It is the only
commercial vehicle enterprise in China that masters world-class complete vehicle and three major powertrain
core technologies and has passed ISO9001 and IATF16949 quality system certifications. It also serves as a
national-level independent automobile product R&D and test certification base. The Company has established
Changchun as its global R&D headquarters with R&D capabilities for light- medium- and heavy-duty trucks
in Qingdao; engine R&D bases in Wuxi and Dalian. In recent years by accurately grasping the needs of
segmented markets the Company has successfully developed ten core product technology advantages
including system fuel efficiency extended oil change intervals lightweight design independent major
assemblies independent electronic control independent aftertreatment new energy intelligent driving
extended warranty and maintenance-free features.
2. Marketing and procurement: The Company adheres to customer value orientation and has taken the
lead in establishing a fully functional marketing service system. The marketing service network consisting of
three marketing centers—Changchun Medium- and Heavy-Duty Trucks Qingdao Medium- and Heavy-Duty
Trucks and Light-Duty Trucks—comprises nearly 1000 dealers more than 2000 service stations nearly 100
spare parts centers and nearly 200 spare parts dealers covering 268 prefecture-level cities nationwide. The
coverage rate in cities with a capacity of over 1000 vehicles is 90.7% and the national average service radius is
48 kilometers reaching a leading level in the industry providing users with 24/7 efficient and high-quality
services.The Company is committed to integrating global high-quality resources to provide a strong guarantee for
the high reliability of Jiefang trucks. In recent years the Company has successively become strategic partners
with leading enterprises at home and abroad including Shell Bosch CATL C&D Inc. TELD Cainiao
Zhuoyu and Huawei.
3. Production and manufacturing: The Company has a complete manufacturing system from raw
materials to core components from key major assemblies to complete vehicles. The Company operates five
major vehicle manufacturing bases in Changchun Qingdao Guanghan Liuzhou and Foshan with a production
capacity of 418 thousand vehicles. It also maintains three major assembly bases in Changchun Wuxi and
Dalian independently mastering the core competitiveness and production capabilities of engines transmissions
and axles in the smart powertrain domain with product competitiveness at an advanced level. Among these
facilities Wuxi Diesel Engine Works features three major series—Aowei Bowei and Jinwei—achieving
world-class manufacturing standards. The Company is deeply engaged in four key areas: smart vehicles new
energy connected vehicles and the aftermarket having established five new business bases in Suzhou Nanjing
Tianjin Wuxi and Foshan.
4. New energy: Its product portfolio covers five major lines: tractors dump trucks cargo trucks special
purpose vehicles and buses. These product lines encompass three major technological routes: BEVs FCVs and
hybrid vehicles achieving full coverage of key segment markets for new energy commercial vehicles such as
steel mills coal and construction spoil. Product development adheres to a user-oriented approach aiming to
meet market demand and address user pain points. It focuses on the “three-low and one-high” core
competitiveness - low cost low self-weight low energy consumption and high reliability - as well as
differentiated competitiveness characterized by long endurance low-temperature resistance high intelligence
and high comfort continuously iterating and upgrading its products and technologies. In terms of core
technology the Company has achieved integration across three critical areas: vehicle architecture vehicle
control software and assembly interface. This integration significantly improves development efficiency. The
Company harnesses technologies such as efficient energy recovery and scenario-based calibration to
significantly reduce energy consumption. Moreover the application of assembly technology incorporates a
dual-wheel drive system that combines independent core assemblies with external high-quality social resources
enabling complementary advantages. Through the continuous exploration and application of new products new
technologies and new processes the Company has consistently maintained technological leadership and
product excellence in the new energy market achieving leapfrog growth in sales volume for three consecutive
years.
5. Overseas: The Company implements the “SPRINT 2030” internationalization strategy and makes
every effort to expand overseas markets. At present its exports cover 115 countries and regions worldwide
forming a multi-level layout with Southeast Asia Africa Latin America the Middle East Eastern Europe and
Central Asia as the foundation while gradually penetrating high-end markets. The Company continues to
accelerate its global layout. At present the Company has more than 140 core dealers and more than 500 service
providers overseas. The Company has established overseas subsidiaries in countries such as South Africa and
Tanzania and exports models including CH CP DP LR and others among which it firmly ranks first in the
medium- and heavy-duty truck market share in South Africa. At the same time it continues to accelerate
overseas localized operations fully launching the layout of 8 overseas subsidiaries with subsidiaries in Saudi
Arabia Uzbekistan etc. having been completed and successively put into operation to fully support the
achievement of the Company’s internationalization strategy.III. Analysis of Main Business
Overview
Please refer to the relevant content of “I. Main Businesses of the Company in the Reporting Period”.Year-on-Year Changes in Key Financial Data
Unit: CNY
Year-on-
Closing Balance / Opening Balance / Year
The Reporting Period Same Period of Increase Reason for ChangePrevious Year and
Decrease
Mainly due to the
Operating income 37570961164.48 28078705058.07 33.81% increase in sales volume
in the current period.Mainly due to the
Operating Costs 35518319599.20 26840562485.53 32.33% increase in sales volume
in the current period.Sales expenses 574270411.30 472042436.11 21.66%
Administrative
expenses 599026926.35 605966739.38 -1.15%
Mainly due to the
Financial expenses -165406809.62 -252849223.59 34.58% increase in financialexpenses in the current
period.Mainly due to the
Income tax expenses -99636305.10 -175154040.98 43.12% increase in income taxexpenses in the current
period.R&D investment 999005715.17 1001811547.24 -0.28%
Net cash flows from
operating activities 6477573067.18 7635289020.71 -15.16%
Net cash flows from
investment activities -140756609.13 -162885381.88 13.59%
Mainly due to the impact
Net cash flows from -1310716.60 -248323979.67 99.47% of undistributed cashfinancing activities dividends in the current
period.Net increase in cash
and cash equivalents 6310495201.99 7231688786.55 -12.74%
Monetary capital 30013365020.61 22325269010.05 34.44% Mainly due to theincrease in monetary
Year-on-
Closing Balance / Opening Balance / Year
The Reporting Period Same Period of Increase Reason for ChangePrevious Year and
Decrease
funds in the current
period.Mainly due to the
Derivative financial development of
assets 1977854.70 100.00% derivative financialbusiness in the current
period.Mainly due to the
decrease in commercial
Notes receivable 22931011.03 584654660.00 -96.08% acceptance bills held at
the end of the current
period.Mainly due to the
Accounts receivable 9134363996.17 5275130370.45 73.16% increase in accountsreceivable at the end of
the current period.Mainly due to the
Accounts receivable decrease in bank
financing 4360450827.39 6556062093.60 -33.49% acceptance bills held atthe end of the current
period.Mainly due to the
Prepayments 469348587.30 139082917.93 237.46% increase in prepaymentsat the end of the current
period.Mainly due to changes in
Other equity fair value of investment
instruments 67726054.80 210703161.60 -67.86% in other equity
investments instruments in the current
period.Mainly due to the
Project under 177573657.43 131371243.36 35.17% increase in constructionconstruction in progress in the current
period.Mainly due to the
Right-of-use assets 30852168.77 60896263.98 -49.34% decrease in right-of-useassets at the end of the
current period.Mainly due to the
Long-term deferred 273416.80 74286.06 268.06% increase in long-termexpenses deferred expenses in the
current period.Other non-current Mainly due to the
assets 618607966.44 2362921423.03 -73.82% decrease in time depositsin the current period.Mainly due to the
Notes payable 26125894588.59 12809740164.11 103.95% increase in notes payable
in the current period.Mainly due to the
Advance receipts 3651044.74 826097.22 341.96% increase in rental receivedin advance in the current
period.Year-on-
Closing Balance / Opening Balance / Year
The Reporting Period Same Period of Increase Reason for ChangePrevious Year and
Decrease
Mainly due to the
Contract liabilities 3389838133.23 2603137668.68 30.22% increase in contractliabilities in the current
period.Employee Mainly due to the
compensation 438475845.96 1083725750.16 -59.54% decrease in employee
payable benefits payable at theend of the current period.Mainly due to the
Other payables 1475128473.57 2544536206.49 -42.03% decrease in otherpayables at the end of the
current period.Mainly due to the
Other current
liabilities 35988525.01 66560308.63 -45.93%
decrease in output tax to
be transferred at the end
of the current period.Mainly due to the
Lease liabilities 454779.16 1690109.49 -73.09% decrease in leasepayments in the current
period.Mainly due to changes in
Other fair value of investment
comprehensive -554871229.73 -387288724.63 -43.27% in other equity
incomes instruments in the current
period.Mainly due to the
Investment income -9147032.05 -30115859.77 69.63% increase in investmentincome in the current
period.Mainly due to the
Credit impairment
loss -48878159.33 -30655705.99 -59.44%
increase in provision for
impairment of receivables
in the current period.Mainly due to the
Impairment loss on -101344238.89 -151608226.07 33.15% decrease in provision forassets impairment of inventories
in the current period.Income from assets Mainly due to the
disposal -5512843.79 154614688.74 -103.57% decrease in income fromassets disposal.Mainly due to the
Non-operating 3725815.82 1662537.37 124.10% increase in non-operatingexpenses expenses in the current
period.Net after-tax amount Mainly due to changes in
of other fair value of investment
comprehensive -157574293.22 61192422.39 -357.51% in other equity
incomes instruments in the currentperiod.Significant changes in profit composition or profit sources of the Company during the reporting period
□Applicable□Not applicable
There was no significant change in the profit composition or profit sources of the Company during the reporting
period.Composition of operating income
Unit: CNY
This Reporting Period Same Period of Last Year Year-on-
Proportion Year
in Proportion IncreaseAmount Operating Amount in Operating and
Income Income Decrease
Total operating
income 37570961164.48 100% 28078705058.07 100% 33.81%
By industries
Automobile
industry 37570961164.48 100.00% 28078705058.07 100.00% 33.81%
By products
Commercial
vehicles 35189738913.77 93.66% 26082500525.92 92.89% 34.92%
Spare parts and
others 2381222250.71 6.34% 1996204532.15 7.11% 19.29%
Information about industries products or regions accounting for more than 10% of the Company’s operating
income or operating profit
□Applicable □Not applicable
Unit: CNY
Increase/Decrease Increase/Decreas
of Operating e of Operating Increase/Decrease in
Operating income Operating Costs GrossMargin Income over the Cost over the
Gross Margin over the
Same Period of Same Period of Same Period of Last
Last Year Last Year Year
By industries
Automobile
industry 37425917693.36 35425562629.21 5.34% 36.85% 34.81%
Increased by 1.43
percentage points
By products
Commercial
vehicles 35189738913.77 33646284301.49 4.39% 34.92% 33.66%
Increased by 0.90
percentage points
Spare parts and 2236178779.59 1779278327.72 20.43% 76.78% 60.96% Increased by 7.82others percentage points
The main business data of the Company for the latest period adjusted according to the statistical criteria at the end of the reporting period in the event of any
adjustment to the statistical criteria of the Company’s main business data during the reporting period
□Applicable□Not applicable
IV. Analysis of Non-Main Business
□Applicable□Not applicable
V. Analysis of Assets and Liabilities
1. Major Changes in Asset Composition
Unit: CNY
End of the Reporting Period End of the Previous Year
Increase/Decrease in Description of
Amount Proportion in Total Amount Proportion in Total Proportion Major ChangesAssets Assets
Monetary capital 30013365020.61 36.48% 22325269010.05 30.79% 5.69%
Accounts receivable 9134363996.17 11.10% 5275130370.45 7.28% 3.82%
Contract assets 67221841.72 0.08% 70941700.86 0.10% -0.02%
Inventories 16826097343.27 20.45% 13415413449.26 18.50% 1.95%
Investment properties 37318677.53 0.05% 44712225.12 0.06% -0.01%
Long-term equity
investments 1348671029.39 1.64% 1353025361.23 1.87% -0.23%
Fixed assets 10350689872.93 12.58% 10993086978.42 15.16% -2.58%
Project under
construction 177573657.43 0.22% 131371243.36 0.18% 0.04%
Right-of-use assets 30852168.77 0.04% 60896263.98 0.08% -0.04%
Short-term loans 50000000.00 0.06% 50000000.00 0.07% -0.01%
Contract liabilities 3389838133.23 4.12% 2603137668.68 3.59% 0.53%
Long-term loans 136000000.00 0.17% 136000000.00 0.19% -0.02%
Lease liabilities 454779.16 0.00% 1690109.49 0.00% 0.00%
2. Details of Major Overseas Assets
□Applicable□Not applicable
3. Assets and Liabilities Measured at Fair Value
□Applicable □Not applicable
Unit: CNY
Profits and Losses Accumulated Provision for Purchase Sales
Item Opening from Changes in Changes in Fair Impairment in Amount in Amount in OtherBalance Fair Value for the Value through the Current the Current the Current Changes Closing Balance
Current Period Equity Period Period Period
Financial assets
Other equity
instruments 210703161.60 -142977106.80 -413053945.20 67726054.80
investments
Total 210703161.60 -142977106.80 -413053945.20 67726054.80
Financial liabilities 0.00 0.00
Whether the measurement attribution of the Company’s main assets within the Reporting Period was significantly changed or not
□ Yes□No
4. Restrictions on Asset Rights as of the End of the Reporting Period
For details please refer to Section VIII Financial Report VII. Notes to Items in the Consolidated Financial
Statements 25 “Assets with Restricted Ownership or Right of Use”.VI. Investment Analysis
1. Overall Situation
□Applicable □Not applicable
Investment Amount in the Investment Amount in the Same
Reporting Period (CNY) Period of Previous Year (CNY) Variation Range
44119500.00 0.00 100.00%
2. Major Equity Investments Acquired in the Reporting Period
□Applicable□Not applicable
3. Major Non-equity Investments in Progress in the Reporting Period
□Applicable□Not applicable
4. Financial Assets Investment
(1) Securities investment
□Applicable□Not applicable
The Company has no securities investment in the reporting period.
(2) Derivatives investment
□Applicable □Not applicable
1) Derivatives Investment for the Purpose of Hedging during the Reporting Period
□Applicable □Not applicable
Unit: CNY 10 thousand
Proportion of
Profits and Closing
Initial Losses from Accumulated Investment
Type of Derivatives Investm Opening Changes in Changes in Amount Purchased Amount Sold Amount to the
Investment ent Amount Fair Value for Fair Value during the during the
Closing Company’s Net
amount the Current through Reporting Period Reporting Period
Amount Assets at the
Period Equity End of theReporting
Period
Forward foreign exchange
settlement and sale 0 0 197.79 197.79 57463.91 10233.95 197.79 1.78%
Total 0 0 197.79 197.79 57463.91 10233.95 197.79 1.78%
Explanation on the
accounting policies and
specific accounting
principles for hedging
operations during the N/A
reporting period and whether
there have been significant
changes compared with the
previous reporting period
Explanation on actual gains
and losses during the The Company’s actual loss on financial derivatives investment for hedging purposes during the reporting period was CNY 1.74
reporting period million.In order to avoid the adverse impact of significant fluctuations in exchange rates and interest rates on operations the Company
Explanation on hedging hedges its actual risk exposure through financial derivatives. Financial derivative contracts have to a certain extent hedged against
effect the fluctuations in the value of the hedged exposure caused by changes in exchange rates and interest rates and the overall hedging
effect is in line with expectations.Source of funds for
derivatives investment Own Funds
Explanation on risk analysis 1. The types of financial derivative transactions carried out by the Company are simple financial derivatives closely related to the
and control measures of underlying business and such derivatives match the underlying business in terms of varieties scale direction maturity and other
derivatives positions during
the reporting period aspects. The Company adheres to the risk-neutral principle in carrying out business and shall not carry out speculative and arbitrage
(including but not limited to transactions solely for the purpose of making profits so as to affect the development of the Company’s main business ensuring
market risk liquidity risk reasonable arrangements of funds used in carrying out such business.credit risk operational risk 2. The Company has formulated a strict Management System for Financial Derivative Transactions which clearly stipulates the basic
legal risk etc.) principles approval authorities department settings and staffing internal operation processes internal risk reporting systems and risk
handling procedures information confidentiality and isolation measures etc. for financial derivative transactions. It has also
established a professional foreign exchange management team equipped with professionals to conduct derivative transactions
thereby avoiding operational risks.
3. The counterparties of the Company’s financial derivative transactions are all financial institutions with good creditworthiness and
long-term business relations with the Company with low performance risk. The Company will prudently review the terms of
contracts signed with qualified financial institutions and strictly implement the risk management system to prevent legal risks.
4. The internal audit department of the Company is responsible for periodically reviewing and evaluating the financial derivative
transactions.Changes in market price or
product fair value of invested
derivatives during the
reporting period; the analysis
of the fair value of The change in fair value of financial derivatives is calculated based on the difference between the market price of the contracts held
derivatives shall disclose the on the last working day of the month and the contracted price.specific methods used and
the setting of relevant
assumptions and parameters
Litigation N/A
Disclosure date of the Board
of Directors’ announcement
approving the derivatives Saturday March 28 2026
investment
2) Derivatives investment for speculative purposes during the reporting period
□Applicable□Not applicable
The Company had no derivatives investment for speculative purposes during the reporting period.5. Use of Raised Funds
□Applicable □Not applicable
(1) Overall Use of Raised Funds
□Applicable □Not applicable
Unit: CNY 10 thousand
Amo
Percent unt
Gross of Utilizatio Gross of Cumul age of of
Proceeds n Rate as Proceeds ative CumulaFund Total
Allocatio Proc
raisin Fundrai Securitie
Gross tive n and eeds
sing s Listing Gross of Net of
Utilized Cumulative of the Repurpo of Gross Unused Intended Unut
g Method Date Proceeds Proceeds (1)
during Utilized End of sed Gross of
Year Current Proceeds (2) Reporting during
Procee of Proceed Use of ilized
Reportin Period (3) Reportin ds Proceed s Unused for
g Period = (2) / (1) g Period Repurp s Proceeds overosed Repurp Two
osed Year
s
The
funds are
Private held in a
2024 placem Octoberent of 21 2024 200000 199781.34 926.66 199781.34 100.00% 0 0 0.00% 194.61
dedicate
d 0
shares fundraisi
ng
account
Total -- -- 200000 199781.34 926.66 199781.34 100.00% 0 0 0.00% 194.61 -- 0
Description of the Overall Use of Raised Funds:As approved by the China Securities Regulatory Commission (CSRC) in its “Reply on Approving the Registration of FAW Jiefang Group Co. Ltd. forIssuance of Shares to Specific Objects” (CSRC Permit [2024] No. 972) and with consent from the Shenzhen Stock Exchange the Company issued 298507462
ordinary shares (A shares) to specific objects through the Shenzhen Stock Exchange system via the lead underwriter China International Capital Corporation
Limited (hereinafter “CICC”) at an issue price of CNY 6.7 per share. The gross proceeds totaled CNY 1999999995.40 and after deducting issuance expenses of
CNY 2186599.36 (excluding VAT) the net proceeds amounted to CNY 1997813396.04. The above net proceeds have been verified by Grant Thornton Certified
Public Accountants (Special General Partnership) in their “Verification Report.”
As of June 30 2026 all projects have been completed. The accumulated amount of raised funds invested in proceeds-funded projects was CNY
1997813420.71 and the unused amount was CNY 1946071.02. According to the Self-Regulatory Supervision Guidelines for Listed Companies on Shenzhen
Stock Exchange No. 1 - Standardized Operation of Main Board Listed Companies and other relevant provisions where the surplus funds (including interest income)
are less than CNY 5 million or less than 1% of the net amount of raised funds for the project the performance of relevant deliberation procedures may be exempted
and the use thereof shall be disclosed in the annual report. As of July 23 2026 the Company has transferred out all surplus raised funds to permanently replenish
working capital to support the development of the Company’s main business and has completed the cancellation procedures for the dedicated account for raised
funds.
(2) Raised Fund Committed Projects
□Applicable□Not applicable
(3) Changes to Raised Fund Investment Projects
□Applicable□Not applicable
The Company had no changes to proceeds-funded projects during the reporting period.VII. Sale of Major Assets and Equity
1. Sale of Major Assets
□Applicable□Not applicable
The Company did not sell major assets during the reporting period.
2. Sale of Major Equity
□Applicable□Not applicable
VIII. Analysis on Main Holding and Joint-Stock Companies
□Applicable □Not applicable
Major subsidiaries and joint-stock companies affecting over 10% of the net profit of the Company
Unit: CNY 10 thousand
Co
Comp mp
any any Main Registered Total assets Net Assets Operating Operating Net Profit
Name Typ Business Capital income Profit
e
Develop
FAW ment
Jiefan Sub manufacg
Auto sidi
turing
arie and 1080301.25 7975881.42 1967768.10 3812111.48 8557.74 23475.34motiv s sales ofe Co. vehicles
Ltd. and
parts
Acquisition and disposal of subsidiaries in the reporting period
□Applicable □Not applicable
Methods of
Acquisition and
Company Name Disposal of Impact on Overall Production Operation and
Subsidiaries in the Performance
Reporting Period
Jiefang Uzbekistan Co. Ltd. Strive to optimize and strengthen the layout and
Jiefang Indonesia Co. Ltd. Establishment by expansion of overseas markets supporting the
investment comprehensive implementation of the Company’s
Jiefang Vietnam Co. Ltd. overseas industrial strategic planning.IX. Structured Entities Controlled by the Company
□Applicable□Not applicable
X. Risks Faced by the Company and Countermeasures
1. Industry competition risks
In the second half of 2026 the characteristics of stock-based competition in the domestic commercial
vehicle industry will become increasingly pronounced the pace of structural adjustments in the industry will
accelerate and competitive pressure will continue to rise. Traditional enterprises continue to intensify product
iteration and upgrades while cross-industry players keep rolling out new products leaving the dual competitive
squeeze unrelieved. Leading industry players continue to ramp up R&D investment in new energy and
intelligent connected technologies while simultaneously optimizing the lightweight and energy-saving
performance of traditional fuel vehicles to capture downstream segmented application markets leading to cut-
throat competition for core industry market share. As a key growth engine for the industry the export market is
transmitting external competition back into the domestic market. Meanwhile the issue of product
homogenization across the industry has not been effectively alleviated and market involution continues to
deepen.
2. New Energy Market Competition Risks
In the second half of 2026 the penetration rate of the new energy commercial vehicle market will maintain
a steady upward trend and competition in this sector will continue to intensify putting greater pressure on the
consolidation and expansion of the Company’s new energy business. The R&D and technological upgrading of
new energy vehicle models require sustained substantial investment of capital and specialized manpower. With
the industry’s technology iteration cycle continually shortening if the Company fails to build differentiated
competitive barriers in core technical domains such as critical powertrains and in-vehicle intelligent systems it
will continuously face intense competitive pressure from peers. In addition price volatility of core raw
materials in the upstream supply chain remains uncertain while implementing and scaling innovative business
models—such as new energy vehicle operations and leasing—presents considerable challenges. As entrants in
various segmented application segments continue to multiply multiple factors will pose heightened challenges
to the Company’s new energy business in the second half of the year.
3. Operational Risks in Overseas Market Expansion
In the second half of 2026 uncertainties surrounding overseas business expansion will increase. On the
demand side the momentum of global economic recovery remains sluggish with market demand in multiple
countries staying depressed. On the trade side several nations continue to raise vehicle import tariffs and the
scope of carbon border adjustment policies keeps expanding directly driving up the comprehensive costs of
complete vehicle exports. On the compliance side multiple countries are accelerating the implementation of
stringent new motor vehicle emission regulations; expenditures on regulatory compliance and model
adaptations for overseas markets continue to rise pushing up compliance costs. Geopolitically volatile
international relations coupled with frequent adjustments in national trade and industrial policies have elevated
the risk of overseas regulatory penalties. Compounded by significant variations in regional demand regulations
and technical standards across overseas markets the complexity of localized operations and management
remains high which will constrain the achievement of the Company’s overseas sales and profitability targets in
the second half of the year.To address the above risks the Company has formulated the following measures:
First deepen industry insights and comprehensively strengthen overall product competitiveness. Aligning
closely with its medium- to long-term strategic plan the Company will accurately identify structural growth
opportunities in the market make every effort to solidify its core base in the existing market and concentrate
internal resources to ensure the orderly achievement of its annual operational targets. The Company will
continue to refine core product performance enhance the pricing premium of complete vehicles and establish
synergistic mechanisms across R&D marketing and the aftermarket to build well-rounded differentiated
competitive advantages. It will further cultivate the automotive aftermarket domain explore value-added
services for existing clients and tap new growth drivers across multiple tiers. On the overseas front the
Company will increase the rollout of highly adapted high-margin vehicle models continually expand into
overseas niche markets and steadily increase regional coverage of its flagship products. It will carry out lean
operations across the entire overseas marketing value chain and leverage key performance indicators to drive
cost reduction and efficiency gains across all business units thereby offsetting cost pressures arising from
industry competition.Second consolidate the foundation of the new energy vehicle (NEV) business and reinforce competitive
advantages in this segment. The Company will continue to leverage the product strengths of its current NEV
models precisely capture market demand across segmented application scenarios in the second half of the year
and roll out innovative marketing campaigns to ensure the steady fulfillment of NEV operational targets. It will
conduct in-depth field research on end-user scenarios on an ongoing basis dynamically optimizing product
solutions to meet diverse market demands. The Company will deepen synergy with upstream and downstream
partners across the supply chain utilizing long-term agreements (LTAs) and joint procurement to hedge against
cost pressures caused by price fluctuations of core raw materials. Leveraging auto finance tools it will refine
the full life-cycle business layout for NEVs and steadily enhance the profit quality of new businesses. In
addition it will establish dynamic monitoring mechanisms for capital allocation and operational data in the
NEV business improve the end-to-end risk early warning and resolution system and achieve early
identification and mitigation of risks across R&D production and sales ensuring that overall operational risks
in the NEV segment remain strictly controllable.Third refine the overseas governance and control system and steadily elevate international market
competitiveness. The Company will continue to channel more R&D resources toward dedicated overseas
models strengthen capabilities in overseas regulatory benchmarking and localized technical adaptation and
improve complete vehicles’ adaptability to diverse regional operating scenarios. It will improve standardized
management mechanisms for overseas distribution channels and increase investment in regional brand
promotion to support ongoing business expansion. It will routinely monitor and interpret industrial trade and
emission regulations across target countries to deploy compliant products in advance. The Company will
accelerate the implementation of localized overseas KD (Knocked Down) assembly projects and establish
deeply aligned partnerships with regional channel distributors. It will also refine the full-cycle foreign exchange
risk management system employing diversified financial instruments to hedge against exchange rate volatility.Furthermore the Company will formulate tiered classified contingency plans for overseas security emergencies
and routinely conduct safety education for overseas personnel systematically mitigating potential risks
concerning geopolitics policies operations and personnel thereby steadily enhancing overall operational
resilience across overseas markets.XI. Implementation Status of Market Capitalization Management System and Valuation
Enhancement Plan
Whether the Company established a market capitalization management system.□Yes □No
Whether the Company disclosed a valuation enhancement plan.□ Yes□NoIn accordance with Article 8 of the “Regulatory Guidelines for Listed Companies No. 10—MarketCapitalization Management” issued by the China Securities Regulatory Commission which stipulates that
“Companies included in major indices shall establish a market capitalization management system...” The
Company has formulated the “Market Capitalization Management System” in accordance with relevant
regulations. The main contents include: General Provisions Market Capitalization Management Organizations
and Personnel Principal Methods of Market Capitalization Management Monitoring and Early Warning
Mechanisms and Emergency Measures and Supplementary Provisions. The “Proposal on Establishing the‘Market Capitalization Management System’” has been reviewed and approved at the 21st meeting of the 10th
Board of Directors of the Company.XII. Implementation of the “Improvement of Both Quality and Return” Action Plan
Whether the Company disclosed the Announcement on the “Improvement of Both Quality and Return” action
plan.□Yes □No
To implement the guiding principles established at the Political Bureau Meeting of the CPC Central
Committee to “invigorate capital markets and boost investor confidence” and at the Executive Meeting of theState Council to “vigorously enhance the quality and investment value of listed companies and adopt moreforceful and effective measures to stabilize the market and confidence” the Company has formulated the Action
Plan for “Dual Improvement in Quality and Returns” to protect the interests of all shareholders strengthen
investor confidence and promote the Company’s long-term sound and sustainable development. The
Company has been proactively advancing the measures outlined in the plan. For details please refer to the
Announcement on the Action Plan for “Dual Improvement in Quality and Returns” (Announcement No.: 2024-
014) the Progress Announcement on the Action Plan for “Dual Improvement in Quality and Returns”
(Announcement No.: 2025-034) and the Progress Announcement on the Action Plan for “Dual Improvement inQuality and Returns” (Announcement No.: 2026-015) published by the Company in Securities Times China
Securities Journal and on CNINFO (http://www.cninfo.com.cn) on March 2 2024 March 29 2025 and March
28 2026 respectively.
The Company will consistently take high-quality development as its main theme anchoring its
development around the three strategic pillars of “Technology Jiefang Green Jiefang and Global Jiefang.” It
will maintain focus on operations improve quality and reduce costs prioritize sales volume expand its light-
duty vehicle business and deeply cultivate overseas markets. The Company is resolutely committed to market
expansion incremental volume growth and driving volume growth through superior quality thereby
accelerating the expansion of the Jiefang brand’s market scale. In the first half of the year the Company strictly
adhered to the requirements of the Company Law the Securities Law and the relevant rules of the Shenzhen
Stock Exchange deepened the development of its corporate governance structure and successfully completed
the re-election of the new Board of Directors. Concurrently it gave full play to the gatekeeping and review role
of the special meetings of independent directors in key areas. The Company has established a new governance
framework with the Shareholders’ Meeting as the highest organ of power the Board of Directors as the
decision-making organ specialized committees as decision-support organs the Audit and Risk Control
Committee as the supervisory organ and executive management as the execution organ. With well-defined
powers and responsibilities and efficient synergy among all governance bodies a solid foundation has been laid
for the Company’s compliant operations and sound decision-making.The Company attaches great importance to reasonable returns for investors and strictly executes its
shareholder dividend return plans and profit distribution policies. Based on its actual business conditions the
Company formulated the 2025 Annual Profit Distribution Plan as follows: Based on a total of 4921280975
shares a cash dividend of CNY 0.45 (tax inclusive) was distributed to all shareholders for every 10 shares held
resulting in a total cash dividend distribution of CNY 221457643.87 (tax inclusive) with the remaining
undistributed profits carried forward to the next accounting year. The Company did not convert capital reserve
into share capital. The ex-dividend and ex-rights date for this distribution plan was July 8 2026.In addition the Company attaches great importance to investor relations management establishing multi-
dimensional comprehensive investor communication channels through corporate disclosures brokerage
strategy conferences investor interactions EasyIR (Hudongyi) telephone hotlines and emails. The Companyheld the 2025 Annual Performance Briefing on April 10 2026 and participated in the “Online CollectiveInvestor Reception Day for Listed Companies in Jilin Jurisdiction” on May 19 2026. Executive management
actively listened to opinions and suggestions addressed concerns raised by investors and comprehensively
presented the enterprise’s corporate value and growth potential.Section IV Corporate Governance Environment and Social
Responsibility
I. Changes in Directors and Senior Management of the Company
□Applicable □Not applicable
Name Position Type Date Reason
Zhao Fuquan Independentdirector Elected June 29 2026 Re-election
Shen Jinjun Independentdirector Elected June 29 2026 Re-election
Wang Xu Independentdirector Elected June 29 2026 Re-election
Departure from
Mao Zhihong Independentdirector office upon term June 29 2026 Re-electionexpiration
Independent Departure fromHan Fangming director office upon term June 29 2026 Re-electionexpiration
Departure from
Dong Zhonglang Independentdirector office upon term June 29 2026 Re-electionexpiration
Wang Jianxun Secretary of the Departure from Thursday January 22Board of Directors office 2026 Personal reasons
Yu Changxin Secretary of the
(Acting) Board of Directors Appointed
Thursday January 22
2026 Job transfer
Yu Changxin Secretary of the Termination of
(Acting) Board of Directors appointment Friday April 17 2026 Job transfer
Yang Li Secretary of theBoard of Directors Appointed Friday April 17 2026 Job transfer
II. Profit Distribution and Transfer from Capital Reserve to Share Capital in the Reporting
Period
□Applicable□Not applicable
The Company plans not to distribute cash dividends not to issue bonus shares and not to convert capital
reserve into share capital for the semi-annual period.III. Implementation of the Company’s Equity Incentive Plan Employee Stock Ownership
Plan or Other Employee Incentive Measures
□Applicable□Not applicable
During the reporting period the Company had no equity incentive plan employee stock ownership plan or
other employee incentive measures nor their implementation.IV. Environmental Information Disclosure
Whether the listed company and its major subsidiaries are included in the list of enterprises required by law to
disclose environmental information
□Yes □No
Number of enterprises included in the list of companies required
by law to disclose environmental information 11
S/N Name of the Enterprise Index for Querying Environmental InformationDisclosure Reports
1 FAW Jiefang Automotive Co. Ltd. (TruckFactory) http://36.135.7.198:9015/index
2 FAW Jiefang Transmission Branch http://36.135.7.198:9015/index
3 FAW Jiefang Automotive Co. Ltd.Transmission Branch (Axle New Plant) http://36.135.7.198:9015/index
4 FAW Jiefang Automotive Co. Ltd. EngineBranch http://36.135.7.198:9015/index
5 FAW Jiefang Automotive Co. Ltd. ChangchunIntelligent Bus Branch http://36.135.7.198:9015/index
http://221.214.62.226:8090/EnvironmentDisclosure/e
6 FAW Jiefang (Qingdao) Automotive Co. Ltd. nterpriseRoster/openEnterpriseDetailscomDetailFro
m=0&id=91370200163567343M
http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
7 Wuxi Diesel Engine Works of FAW JiefangAutomotive Co. Ltd. webapp/web/viewRunner.htmlviewId=./sps/views/yf
pl/views/yfplHomeNew/index.js
http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
8 Wuxi Diesel Engine Huishan Factory of FAWJiefang Automotive Co. Ltd. webapp/web/viewRunner.htmlviewId=./sps/views/yf
pl/views/yfplHomeNew/index.js
https://103.203.219.138:8082/eps/index/enterprise-mo
9 FAW Jiefang Automotive Co. Ltd. Sichuan recode=91510681MABQ7AKG4Y&uniqueCode=efBranch 29d76e7549427c&date=2025&type=true&isSearch=t
rue
10 FAW Jiefang Dalian Diesel Engine Co. Ltd. https://qyxxpl.ywzh.lnsthj.cn:8802/home/companiesre
portenterId=682078508085253&publishdataId
https://bqfq.sthjt.gxzf.gov.cn/GXHJXXPLQYD/front
11 FAW Jiefang Automotive Co. Ltd. Liuzhou al/index.html#/home/enterpriseInfoXTXH=8a49e0eBranch Liudong Base 4-68ad-48bd-803e51d27d2651ab&XH=17446895745
47030986240&year=2025
V. Social Responsibility
In the first half of the year FAW Jiefang consistently adhered to the development philosophy of
“Harmonious Coexistence among People Vehicles and Society” actively devoted itself to philanthropy
fulfilled the corporate social responsibilities of a central state-owned enterprise (SOE) and undertook its
mission and obligations. It further developed the “Jiefang Navigator of Love” philanthropic brand caring fortruck drivers and co-produced the promotional documentary “Gathering Glimmers into a Torch Navigatingwith Love” with People’s Daily Online vividly recounting heartwarming stories of freight professionals and
resonating broadly with society. Regarding youth development the Company coordinated domestic and
overseas initiatives in parallel: domestically it provided assistance to underprivileged students in the Qingdao
region; internationally it carried out aid activities in countries such as the Philippines and Vietnam conveying
corporate warmth through practical actions. Concurrently FAW Jiefang proactively promoted rural
revitalization. On the one hand it encouraged employees to participate in poverty-alleviation consumption
prioritizing agricultural and sideline products from assisted areas under equal conditions. On the other hand
addressing the needs of its targeted assistance area Zhenlai County it established a pairing-assistance and co-
construction partnership with the local Characteristic Industry Development Center injecting lasting
momentum into rural revitalization through a series of innovative measures.Section V Important Matters
I. Commitments Made by the Company’s Actual Controllers Shareholders Related Parties
Purchasers and the Company to Interested Parties that will be Fulfilled in the Reporting
Period and Commitments Unfulfilled Beyond the Time Limit by the End of the Reporting
Period
□Applicable□Not applicable
1. During the reporting period there were no commitments made by the Company’s actual controllers
shareholders related parties purchasers the Company or other related commitment makers during the
reporting period nor any commitments that remained unfulfilled beyond the time limit by the end of the
reporting period.II.Non-operating Occupation of Funds by Controlling Shareholders and Other Related
Parties to the Listed Company
□Applicable□Not applicable
During the reporting period there was no non-operating occupation of funds by controlling shareholders and
other related parties.III. Illegal External Guarantee
□Applicable□Not applicable
The Company has no illegal external guarantee in the reporting period.IV. Appointment and Removal of Accounting Firm
Whether the semi-annual financial report has been audited
□ Yes□No
The Company’s semi-annual report is unaudited.V. Description of the Board of Directors on the “Non-standard Audit Report” of the
Accounting Firm in the Reporting Period
□Applicable□Not applicable
VI. Description of the Board of Directors on the “Non-standard Audit Report” of the
Previous Year
□Applicable□Not applicable
VII. Matters Related to Bankruptcy Reorganization
□Applicable□Not applicable
The Company has no matters related to bankruptcy reorganization in the reporting period.VIII. Litigation Matters
Major Litigation and Arbitration Matters
□Applicable□Not applicable
The Company had no major litigation or arbitration matters during the reporting period.Other litigation matters
□Applicable □Not applicable
Basic Amount Progress Litigation Implementat Date
Information Involved Estimated of ion of Discl
about Litigation (CNY 10 Liabilities Formed Litigation
(Arbitratio Litigation of osure
(Arbitration) thousand) or Not (Arbitrati
n) Results Discl
and Impact (Arbitration) osure Indexon) Judgment
Including Case not
15079.79 estimated Case not
No closed by
Summary of liabilities of CNY closed significant the end of —— ——
other litigation 65.7419 million impact the reporting
not reaching the period
major Judgment
disclosure No has been
standard 569.42 No Case made or theclosed significant —— ——impact executionhas been
completed
IX. Punishment and Rectification
□Applicable□Not applicable
The Company has no punishment or rectification in the reporting period.X. Integrity of the Company and Its Controlling Shareholders and Actual Controllers
□Applicable□Not applicable
XI. Major Related Transactions
1. Related Transactions in Daily Operations
□Applicable □Not applicable
Whet
Content Pricing
Proporti
Related Type of Principl Price Amount of on to the
Approved her it Available
Transacti Excee Settlement Market
Transact Corre Related of e of of Related Amount Method of
ion lation Transact Related Related Related Transaction of
on ds the Related Value of Date of Disclosure
Transact Transa (CNY 10 Similar Amount Appro Transactio Similar Disclosure IndexParty ion ion Transaction ction thousand) Transact
(CNY 10 ved Transaction
ions thousand) Amou
n s
nt
https://ww
w.cninfo.c
om.cn/new
Jiefang /disclosure
Times Joint
New ventu
/stocksto
re of Sales of Sales of Market Market Cash + bill Wednesday ckCode=0Energy
Technol the goods goods price price
165716.70 4.41% 420000 No settlement 165716.70 February 4 00800&or
ogy Co. Com
2026 gId=gssz0
Ltd. pany
000800&s
jstsBond=f
alse#latest
Announce
ment
Total -- -- 165716.70 -- 420000 -- -- -- -- --
Details of large sales returns N/A
Actual performance in the reporting
period if the total amount of dailyrelated transactions to be incurred in For details about the actual performance of related transactions in the reporting period please see Item XIV “Related Partiesthe current period is estimated by and Related Transactions” in Section VIII of this report.category
Reasons for large difference between
transaction price and market reference N/A
price
2. Related Transactions Arising from the Acquisition and Sale of Assets or Equity
□Applicable□Not applicable
The Company has no related transactions arising from the acquisition and sale of assets or equity in the
reporting period.
3. Related Transactions of Joint Foreign Investment
□Applicable□Not applicable
The Company has no related transactions of joint foreign investment in the reporting period.
4. Related Credit and Debt Transactions
□Applicable □Not applicable
Whether there are non-operating related credit and debt transactions
□ Yes□No
The Company has no non-operating related credit and debt transactions in the reporting period.
5. Transaction with Related Finance Companies
□Applicable □Not applicable
Deposit Business
Maximum Amount Incurred in Current Period
Daily Opening
Deposit Total Deposit Total Withdrawal
Closing
Related Deposit Balance
Correlation Interest Rate Amount in the Amount in the
Balance
Parties Limit
Range (CNY 10 Current Period Current Period (CNY 10
(CNY 10 thousand) (CNY 10 (CNY 10 thousand)
thousand) thousand) thousand)
First The same
Automobile ultimate
3000000 0.3%-1.87% 1144903.90 22994447.31 22617815.47 1521535.74
Finance controlling
Co. Ltd. party
Credit Granting or Other Financial Businesses
Actual Amount
Related Parties Correlation Business Type Total Amount Incurred(CNY 10 thousand)
(CNY 10 thousand)
First Automobile The same ultimate Other financial
Finance Co. Ltd. controlling party businesses 1530000 52126.66
Note: The closing balance includes the principal and interest of actual deposits in the finance company.
6. Transactions between Finance Companies Controlled by the Company and Related Parties
□Applicable□Not applicable
There is no deposit loan credit granting or other financial businesses between the finance companies controlled
by the Company and related parties.
7. Other Major Related Transactions
□Applicable □Not applicable
On February 3 2026 the 34th meeting of the 10th Board of Directors of the Company reviewed and
approved the Proposal on Estimated Amount of Daily Related Transactions in 2026 and Proposal on Estimated
Amount of Financial Business with First Automobile Finance Co. Ltd. in 2026 which were reviewed and
approved by the First Extraordinary Shareholders’ Meeting of the Company in 2026.Relevant Inquiries on Disclosure Website of Interim Report of Major Related Transactions
Disclosure Date of Name of Temporary
Name of Temporary Announcement Temporary Announcement Disclosure
Announcement Website
Announcement on estimated amount of daily Wednesday February CNINFO
related transactions in 2026 4 2026 (http://www.cninfo.com.cn)
Announcement on estimated amount of financial
Wednesday February CNINFO
business with First Automobile Finance Co.
4 2026 (http://www.cninfo.com.cn)
Ltd. in 2026
XII. Major Contracts and Their Performance
1. Trusteeship Contracting and Lease
(1) Trusteeship
□Applicable□Not applicable
There is no trusteeship made by the Company in the reporting period.
(2) Contracting
□Applicable□Not applicable
There is no contracting made by the Company in the reporting period.
(3) Lease
□Applicable □Not applicable
Description of lease
For details of the Company’s operating lease please refer to Note 15 “Investment Property” Note 16 “FixedAssets” and Note 20 “Right-of-Use Assets” in VII “Notes to Items in Consolidated Financial Statements” of
Section VIII “Financial Report” and 5 “Related Party Transactions” in XIV “Related Parties and RelatedTransactions”.Projects that bring about profits and losses exceeding 10% of the total profit of the Company in the reporting
period
□Applicable□Not applicable
The Company has no leasing project that brings about profits and losses exceeding 10% of the total profit of the
Company in the reporting period.
2.Major Guarantees
□Applicable□Not applicable
The Company has no major guarantees in the reporting period.
3. Entrusted Financial Management
□Applicable □Not applicable
Unit: CNY 10 thousand
The Balance of
Product Category Risk Characteristics Entrusted Financial Amount of OverdueManagement in the Receivables
Reporting Period
Bank Wealth PR1 R1 low risk low risk 0 0
Management Products
Specific circumstances of the Company acting as a single principal entrusting financial institutions to conduct
asset management or investing in high-risk entrusted wealth management products with lower security and
poorer liquidity
□Applicable□Not applicable
4. Other Major Contracts
□Applicable□Not applicable
The Company has no other major contracts in the reporting period.XIII. Registration Form of Reception Investigation Communication Interview and Other Activities in the Reporting Period
□Applicable □Not applicable
Reception Reception Reception Type of Index of Basic
Time Location Mode Reception Reception Object
Main Contents of Discussion
Object and Information Provided
Information of
Investigation
Brighter Investment UBS Broad Fund
Soochow Securities GF Securities Sealand
Securities Guolian Minsheng Securities
Guotai Haitong Securities Guoyuan
Securities Hangzhou Huishi Private Fund
Management Co. Ltd. Huachuang
Shanghai Securities Huafu Securities Huatai Baoxing Operation and developmentMarch 30
2026 meeting Field Research Organization Fund Management Co. Ltd. Huatai
planning of the Company no
room Securities Huaxi Securities Kaiyuan relevant information is
Securities Kunyang Fund Shanxi Securities provided
Tianfeng Securities Wantai Huarui
Investment & Management Co. Ltd.Industrial Securities Great Wall Securities
CICC China Securities Co. Ltd. CITIC
Securities http://www.cninfo.c
P5w.net om.cn/new/disclosu“Investor re/stockstockCodeRelations Network Operation and development =000800&orgId=gs
April 10 Interactive platform for Others Investors participating in FAW Jiefang 2025 planning of the Company no
sz0000800&sjstsBo
2026 Platform” online Annual Performance Presentation relevant information is nd=false#research
(https://ir. communication provided
p5w.net)
Baoying Fund Dongxing Securities GF
Securities Guodu Securities Sinolink
Securities Guotai Haitong Securities
Meeting Huachuang Securities Huafu Securities Operation and development
April 30 room of Telephone Organization Value Partners Harvest Fund Insight planning of the Company no2026 the communication Capital Jingxi Investment Kaiyuan relevant information is
Company Securities Qingrong Assets Huaxi provided
Securities UBS Securities Tianxiaxi
Investment Wantai Huarui Investment &
Management Co. Ltd. Southwest Securities
Huatai Securities Huayuan Securities
Hangzhou Huishi Private Fund Management
Co. Ltd. Industrial Securities Yadong
Investment Yuexin Assets CICC China
Securities Co. Ltd. Aviva-cofco Life
Insurance Co. Ltd. China Post Securities
Caitong Securities China Eastern Air
Catering Investment Soochow Securities
Sealand Securities Sinolink Fund
P5w.net“InvestorRelations Network Investors participating in the Online Operation and developmentMay 19 Interactive platform for Others Collective Performance Presentation of planning of the Company no2026 Platform” online Listed Companies within the Jurisdiction of relevant information is
(https://ir. communication Jilin provided
p5w.net)
XIV. Other Major Matters to be Explained
□Applicable□Not applicable
There are no other major matters to be explained by the Company in the reporting period.XV. Major Events of Subsidiaries
□Applicable□Not applicable
Section VI Changes in Shares and Shareholders
I. Changes in Shares
1. Changes in Shares
Unit: share
Before the Change Increase/Decrease Made by the Change (+ -) After the Change
Share
Issue Bonus TransferredQuantity Scale of New Shares from Others Subtotal Quantity ScaleShares Accumulati
on Fund
I. Restricted shares 442792 0.01% 203150 203150 645942 0.01%
1. Shares held by the state
2. Shares held by the state-owned legal
person
3. Shares held by other domestic
enterprises 442792 0.01% 203150 203150 645942 0.01%
Including: shares held by domestic
legal person
Shares held by domestic
natural person 442792 0.01% 203150 203150 645942 0.01%
4. Shares held by foreign enterprises
Including: shares held by overseas
legal person
Shares held by overseas
natural person
II. Unrestricted shares 4920838183 99.99% -203150 -203150 4920635033 99.99%
1. CNY ordinary shares 4920838183 99.99% -203150 -203150 4920635033 99.99%
2. Foreign shares listed in China
3. Foreign shares listed overseas
4. Others
III.Total number of shares 4921280975 100.00% 0 0 4921280975 100.00%
Reasons for changes in shares
□Applicable □Not applicable
During the reporting period locked-up shares held by directors senior management and others were restricted
from trading in accordance with relevant regulations.Approval of share changes
□Applicable□Not applicable
Transfer of shares changes
□Applicable□Not applicable
Implementation progress of share repurchase
□Applicable□Not applicable
Implementation Progress of Reducing Shareholding in Repurchased Shares by Centralized Bidding
□Applicable□Not applicable
Impact of changes in shares on financial indicators such as basic earnings per share and diluted earnings per
share in the latest year and the latest period and net assets per share attributable to shareholders with ordinary
shares of the Company
□Applicable□Not applicable
Other information disclosed as deemed necessary by the Company or required by the securities regulatory
authority
□Applicable□Not applicable
2. Changes in Restricted Shares
□Applicable □Not applicable
Unit: share
Number of
Restricted Number of Number ofRestricted Restricted Number of
Name of Shares at Shares Shares Restricted Reason for
Shareholder theBeginning Released in Increased in
Shares at
the End of Restriction
Release Date
of the the Current the CurrentPeriod Period the PeriodPeriod
The shares held are
released from restriction
Li Sheng 47713 24300 72013 Executivelockup annually in accordancewith relevant
regulations.The shares held are
Yu 24825 24825 Executive
released from restriction
Changxin lockup annually in accordancewith relevant
regulations.The shares held are
released from restriction
Wang Hao 24975 24975 Executivelockup annually in accordancewith relevant
regulations.The shares held are
released from restriction
Wang Zhiyu 24375 24375 Executivelockup annually in accordancewith relevant
regulations.The shares held are
Wang
Jianyu 47713 24075 71788
Executive released from restriction
lockup annually in accordance
with relevant
regulations.The shares held are
released from restriction
Yang Li 24300 24300 Executivelockup annually in accordancewith relevant
regulations.Other The shares held are
Senior
Executives 347366 10604 66904 403666 Executive
released from restriction
lockup annually in accordanceand with relevant
Personnel regulations.Total 442792 10604 213754 645942 -- --
II. Issuance and Listing of Securities
□Applicable□Not applicable
III. Number of Shareholders and Shareholdings of the Company
Unit: share
Total Number of Shareholders with Total Number of Shareholders with
Ordinary Shares at the End of the Reporting 70483 Preferred Shares with Restored Voting 0
Period Rights at the End of the Reporting Period
Shareholdings of Shareholders Holding More than 5% of the Shares or Top 10 Shareholders (Excluding Shares Lent through Securities Refinancing).Pledge Marking
Number or Freezing
Nature of Share Number of Shares Increase and of Number ofName of Shareholder Shareholders Proportion Held at the End of the Decrease in the Restricted Unrestricted SharesReporting Period Reporting Period Shares Held Status of Quant
Held Shares ity
China FAW Co. Ltd. State-owned legalperson 62.19% 3060649901 0 0 3060649901 N/A 0
FAW Bestune Auto State-owned legal
Co. Ltd. person 15.94% 784500000 0 0 784500000 N/A 0
National
Manufacturing
Transformation and State-owned legal 1.36% 67164179 0 0 67164179 N/A 0
Upgrading Fund Co. person
Ltd.Hong Kong
Securities Clearing Overseas legalperson 0.80% 39405181 -8999534 0 39405181 N/A 0Company Ltd.Duanmu Xiaoyi Domestic naturalperson 0.77% 37780532 6442631 0 37780532 N/A 0
Qu Hongzhen Overseas naturalperson 0.73% 36096590 0 0 36096590 N/A 0
Jilin Province Private State-owned legal
Equity Co. Ltd. person 0.34% 16573152 0 0 16573152 N/A 0
Liang Jianhui Domestic naturalperson 0.29% 14231400 0 0 14231400 N/A 0
Li Weiwei Domestic naturalperson 0.15% 7234400 7187800 0 7234400 N/A 0
Chao Guo Domestic naturalperson 0.13% 6356858 -2084900 0 6356858 N/A 0
Strategic investors or general legal persons Among the above shareholders investors such as National Manufacturing Transformation and Upgrading Fund Co.who become the top 10 shareholders due to Ltd. and Jilin Province Private Equity Co. Ltd. became the Company’s top ten shareholders due to the Company’s
the issuance of new shares issuance of shares to specific objects.Among the above shareholders FAW Bestune is a holding subsidiary of FAW and is a person acting in concert as
Description of correlation or concerted specified in the Regulations for the Takeover of Listed Companies. The public disclosure data indicates that the
action of the above shareholders Company does not know whether there is a correlation between other shareholders of outstanding shares nor whetherother shareholders of outstanding shares are persons acting in concert as specified in the Regulations for the Takeover
of Listed Companies.Description of involvement of the above
shareholders in entrusting/entrusted voting N/A
rights and waiving voting rights
Special description of the existence of
repurchase dedicated accounts among the N/A
top 10 shareholders
Shareholding of the Top 10 Shareholders with Unrestricted Shares (Excluding Shares Lent via Margin Trading and Locked-up Shares of Senior Executives)
Name of Shareholder Number of Unrestricted Shares Held at
Type of Shares
the End of the Reporting Period Type of Shares Quantity
China FAW Co. Ltd. 3060649901 CNY ordinary shares 3060649901
FAW Bestune Auto Co. Ltd. 784500000 CNY ordinary shares 784500000
National Manufacturing Transformation and Upgrading
Fund Co. Ltd. 67164179 CNY ordinary shares 67164179
Hong Kong Securities Clearing Company Ltd. 39405181 CNY ordinary shares 39405181
Duanmu Xiaoyi 37780532 CNY ordinary shares 37780532
Qu Hongzhen 36096590 CNY ordinary shares 36096590
Jilin Province Private Equity Co. Ltd. 16573152 CNY ordinary shares 16573152
Liang Jianhui 14231400 CNY ordinary shares 14231400
Li Weiwei 7234400 CNY ordinary shares 7234400
Chao Guo 6356858 CNY ordinary shares 6356858
Description of affiliated relationship or concerted action Among the above shareholders FAW Bestune is a holding subsidiary of FAW and is a person acting in
between the top 10 shareholders of unrestricted shares and concert as specified in the Regulations for the Takeover of Listed Companies. The public disclosure
between the top 10 shareholders of unrestricted shares and data indicates that the Company does not know whether there is a correlation between other
the top 10 shareholders shareholders of outstanding shares nor whether other shareholders of outstanding shares are personsacting in concert as specified in the Regulations for the Takeover of Listed Companies.Duanmu Xiaoyi a domestic natural person holds 37780532 shares of the Company through the
customer credit trading guarantee securities account of China Securities Co. Ltd.; Qu Hongzhen an
overseas natural person holds 36096590 shares of the Company through the customer credit trading
Description of participation in financing bonds business of guarantee securities account of CITIC Securities Company Limited; Liang Jianhui a domestic natural
the top 10 shareholders with ordinary shares person holds 14231400 shares of the Company through the customer credit trading guarantee
securities account of CICC Wealth Management Securities Co. Ltd.; Chao Guo a domestic natural
person holds 6356700 shares of the Company through the customer credit trading guarantee securities
account of Minsheng Securities Co. Ltd.Participation in securities lending business by shareholders holding more than 5% the top 10 shareholders and the top 10 shareholders of unrestricted tradable
shares
□Applicable□Not applicable
Changes in the top 10 shareholders and top 10 shareholders of unrestricted tradable shares compared to the previous period due to securities lending/return activities
□Applicable□Not applicable
Do the top 10 shareholders with ordinary shares and the top 10 shareholders with unrestricted ordinary shares of the Company conduct agreed repurchase
transactions in the reporting period
□ Yes□No
The top 10 shareholders with ordinary shares and the top 10 shareholders with unrestricted ordinary shares of the Company do not conduct agreed repurchase
transactions in the reporting period IV.IV. Changes in Shareholdings of Directors and Senior Management
□Applicable □Not applicable
Number of Number of Number ofNumber of Number of Number of Restricted Restricted Number of
Employ Shares Held at Shares SharesReduced in Shares Held Shares Shares
Restricted
Name Position ment the Beginning Increased in at the End of Granted at the Granted in Shares
Status of the Period the Current the CurrentPeriod the Period Beginning of the Current
Granted at the
(Share) Period (Share) (Share) (Share) the Period Period
End of the
(Share) (Share) Period (Share)
Li Sheng Chairman of the Board In-service 63617 32400 96017 63617 63617
Yu Changxin Director and General In-Manager service 33100 33100
Wang Hao Employee Director In-service 33300 33300
Wang Zhiyu Deputy General In-Manager service 32500 32500
Wang Jianyu Deputy General In-Manager service 63617 32100 95717 63617 63617
Yang Li Secretary of the Board In-of Directors service 32400 32400
Total -- -- 127234 195800 0 323034 127234 0 127234
V. Changes in Controlling Shareholder or Actual Controller
If the Company has previously disclosed that the actual controller is planning a change of control which has not yet been completed please explain the progress of
the change of control.□Applicable□Not applicable
Changes in controlling shareholders in the reporting period
□Applicable□Not applicable
There is no change in the controlling shareholders of the Company in the reporting period.Change of actual controller in the reporting period
□Applicable□Not applicable
There is no change in the actual controller of the Company in the reporting period.VI. Preferred Shares
□Applicable□Not applicable
The Company has no preferred shares in the reporting period.Section VII Bonds
□Applicable□Not applicable
Section VIII Financial Report
I. Audit Report
Whether the semi-annual report has been audited
□ Yes□No
The Company’s semi-annual financial report is unaudited.II.Financial Statements
The unit in the notes to the financial statement is CNY
1. Consolidated Balance Sheet
Prepared by: FAW Jiefang Group Co. Ltd.Tuesday June 30 2026
Unit: CNY
Item Closing Balance Opening Balance
Current assets:
Monetary capital 30013365020.61 22325269010.05
Settlement reserve fund
Loans to banks and other
financial institutions
Financial assets held for trading
Derivative financial assets 1977854.70
Notes receivable 22931011.03 584654660.00
Accounts receivable 9134363996.17 5275130370.45
Accounts receivable financing 4360450827.39 6556062093.60
Prepayments 469348587.30 139082917.93
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves
receivable
Other receivables 1274176640.38 1391631269.91
Including: interests receivable
Dividends receivable
Financial assets purchased under
agreements to resell
Inventories 16826097343.27 13415413449.26
Including: Data resources
Contract assets 67221841.72 70941700.86
Held-for-sale assets
Current portion of non-current
assets 339978871.98 355532986.69
Item Closing Balance Opening Balance
Other current assets 955595569.40 1157140694.91
Total current assets 63465507563.95 51270859153.66
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables 45654920.96 44977617.32
Long-term equity investments 1348671029.39 1353025361.23
Other equity instruments
investments 67726054.80 210703161.60
Other non-current financial
assets
Investment properties 37318677.53 44712225.12
Fixed assets 10350689872.93 10993086978.42
Project under construction 177573657.43 131371243.36
Productive biological assets
Oil and gas assets
Right-of-use assets 30852168.77 60896263.98
Intangible assets 2393524253.53 2286284523.47
Including: Data resources
Development expenditures 511824474.29 641106331.24
Including: Data resources
Goodwill
Long-term deferred expenses 273416.80 74286.06
Deferred Income tax assets 3227984587.75 3105779697.90
Other non-current assets 618607966.44 2362921423.03
Total non-current assets 18810701080.62 21234939112.73
Total assets 82276208644.57 72505798266.39
Current liabilities:
Short-term loans 50000000.00 50000000.00
Borrowing from the central bank
Placements from banks and other
financial institutions
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable 26125894588.59 12809740164.11
Accounts payable 19142666708.94 21550325781.23
Advance receipts 3651044.74 826097.22
Contract liabilities 3389838133.23 2603137668.68
Item Closing Balance Opening Balance
Financial assets sold under
agreement to repurchase
Deposits taking and interbank
deposits
Acting trading securities
Acting underwriting securities
Employee compensation payable 438475845.96 1083725750.16
Taxes payable 186507504.45 167273861.22
Other payables 1475128473.57 2544536206.49
Including: interests payable
Dividends payable 221629143.89 171500.02
Handling charges and
commissions payable
Reinsurance accounts payable
Held-for-sale liabilities
Current portion of non-current
liabilities 428435225.71 525893395.61
Other current liabilities 35988525.01 66560308.63
Total current liabilities 51276586050.20 41402019233.35
Non-current liabilities:
Insurance contract reserve
Long-term loans 136000000.00 136000000.00
Bonds payable
Including: preferred shares
Perpetual bond
Lease liabilities 454779.16 1690109.49
Long-term payables
Long-term employee
compensation payable 631451808.24 630482718.02
Estimated liabilities 700903534.38 668680940.39
Deferred income 2755712727.22 2846844806.70
Deferred income tax liabilities 593550.84 594286.27
Other non-current liabilities
Total non-current liabilities 4225116399.84 4284292860.87
Total liabilities 55501702450.04 45686312094.22
Owner’s equities:
Share capital 4921280975.00 4921280975.00
Other equity instruments
Including: preferred shares
Perpetual bond
Capital reserves 11956861871.80 11955912510.16
Item Closing Balance Opening Balance
Less: treasury shares
Other comprehensive incomes -554871229.73 -387288724.63
Special reserves 240596328.88 243304714.89
Surplus reserves 3205602868.01 3205602868.01
General risk provision
Undistributed profits 6617774160.87 6532766397.35
Total equity attributable to owners
of the parent company 26387244974.83 26471578740.78
Minority equity 387261219.70 347907431.39
Total owners’ equity 26774506194.53 26819486172.17
Total liabilities and owner’s
equities 82276208644.57 72505798266.39
Legal Representative: Li Sheng Person in Charge of Accounting Work: Yu Changxin Person in Charge of the
Accounting Institution: Yang Li
2.Balance Sheet of Parent Company
Unit: CNY
Item Closing Balance Opening Balance
Current assets:
Monetary capital 454904581.87 571979553.04
Financial assets held for trading
Derivative financial assets
Notes receivable
Accounts receivable
Accounts receivable financing
Prepayments 690998.14 57405.15
Other receivables 6180014041.31 6460014041.31
Including: interests receivable
Dividends receivable
Inventories
Including: Data resources
Contract assets
Held-for-sale assets
Current portion of non-current
assets
Other current assets 1054774.70 987186.63
Total current assets 6636664396.02 7033038186.13
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Item Closing Balance Opening Balance
Long-term equity investments 21835935388.52 21804474401.05
Other equity instruments
investments
Other non-current financial
assets
Investment properties
Fixed assets
Project under construction
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets
Including: Data resources
Development expenditures
Including: Data resources
Goodwill
Long-term deferred expenses
Deferred Income tax assets
Other non-current assets
Total non-current assets 21835935388.52 21804474401.05
Total assets 28472599784.54 28837512587.18
Current liabilities:
Short-term loans
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable
Accounts payable 4975444.87 5088942.18
Advance receipts
Contract liabilities
Employee compensation payable
Taxes payable 39901.02 39901.02
Other payables 694169841.96 853949657.23
Including: interests payable
Dividends payable 221629143.89 171500.02
Held-for-sale liabilities
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 699185187.85 859078500.43
Item Closing Balance Opening Balance
Non-current liabilities:
Long-term loans 136000000.00 136000000.00
Bonds payable
Including: preferred shares
Perpetual bond
Lease liabilities
Long-term payables
Long-term employee
compensation payable
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 136000000.00 136000000.00
Total liabilities 835185187.85 995078500.43
Owner’s equities:
Share capital 4921280975.00 4921280975.00
Other equity instruments
Including: preferred shares
Perpetual bond
Capital reserves 13797364225.24 13797364225.24
Less: treasury shares
Other comprehensive incomes 14476998.32 19640620.81
Special reserves
Surplus reserves 1969779748.05 1969779748.05
Undistributed profits 6934512650.08 7134368517.65
Total owners’ equity 27637414596.69 27842434086.75
Total liabilities and owner’s
equities 28472599784.54 28837512587.18
3. Consolidated Profit Statement
Unit: CNY
Item First Half of 2026 First Half of 2025
I. Total operating income 37570961164.48 28078705058.07
Including: operating income 37570961164.48 28078705058.07
Interest income
Premium earned
Handling charges and commission income
II. Total operating cost 37574169356.95 28689523184.78
Including: operating cost 35518319599.20 26840562485.53
Item First Half of 2026 First Half of 2025
Interest expense
Handling charges and commission expense
Surrender value
Net payments for insurance claims
Net allotment of reserves for insurance liabilities
Policy dividend expenditure
Reinsurance expenses
Taxes and surcharges 116659516.77 138903052.31
Sales expenses 574270411.30 472042436.11
Administrative expenses 599026926.35 605966739.38
R&D expenses 931299712.95 884897695.04
Financial expenses -165406809.62 -252849223.59
Including: interest expenses 4340940.59 1611404.27
Interest income 236100916.21 255428034.69
Add: Other incomes 397621334.84 524635067.40
Investment income (loss to be listed with “-”) -9147032.05 -30115859.77
Including: income from investment in associates and joint
ventures 4716865.18 18178157.63
Gains on derecognition of financial assets at
amortized cost
Foreign exchange gains (loss to be listed with “-”)
Net exposure hedging income (loss to be listed with “-”)
Profit arising from changes in fair value (loss to be listed
with “-”)
Credit impairment loss (loss to be listed with “-”) -48878159.33 -30655705.99
Asset impairment loss (loss to be listed with “-”) -101344238.89 -151608226.07
Income from assets disposal (loss to be listed with “-”) -5512843.79 154614688.74
III. Operating Profit (loss is listed with “-”) 229530868.31 -143948162.40
Add: non-operating income 10369626.23 11324153.35
Less: non-operating expenses 3725815.82 1662537.37
IV. Total Profit (total loss is listed with “-”) 236174678.72 -134286546.42
Less: income tax expenses -99636305.10 -175154040.98
V. Net Profit (net loss is listed with “-”) 335810983.82 40867494.56
(I) Classified by continuity of operation
1. Net profit from continuing operations (net loss to be listed
with “-”) 335810983.82 40867494.56
2. Net profit from discontinuing operations (net loss to be
listed with “-”)
(II) Classified by attribution of the ownership
1. Net profit attributable to the parent company’s shareholders
(net loss to be listed with “-”) 306465407.39 19655810.39
2. Minority interests (net loss to be listed with “-”) 29345576.43 21211684.17
Item First Half of 2026 First Half of 2025
VI. Net after-tax amount of other comprehensive income -157574293.22 61192422.39
Net after-tax amount of other comprehensive income attributable
to the owners of the parent company -167582505.10 53512228.41
(I) Other comprehensive incomes that cannot be reclassified
into profits or losses -148141843.72 51468378.70
1. Changes arising from re-measurement of the defined
benefit plan
2. Other comprehensive incomes that cannot be transferred
to profits or losses under the equity method -5163622.49 1904514.70
3. Changes in fair value of investment in other equity
instruments -142973903.84 49563864.00
4. Changes in fair value of the Company’s credit risk
5. Others -4317.39
(II) Other comprehensive incomes that will be reclassified into
profits or losses -19440661.38 2043849.71
1. Other comprehensive incomes that can be transferred to
profits or losses under the equity method
2. Changes in the fair value of other debt investments
3. Amount of financial assets reclassified into other
comprehensive incomes
4.Other debt investment credit impairment provisions
5. Cash flow hedging reserve -353121.80
6. Translation difference in foreign currency financial
statements -19087539.58 2043849.71
7. Others
Net after-tax amount of other comprehensive income attributable
to minority shareholders 10008211.88 7680193.98
VII.Total comprehensive income 178236690.60 102059916.95
Total comprehensive income attributable to the owners of parent
company 138882902.29 73168038.80
Total comprehensive income attributable to minority
shareholders 39353788.31 28891878.15
VIII. Earnings per share:
(I) Basic income per share 0.0623 0.0040
(II) Diluted income per share 0.0623 0.0040
Legal Representative: Li Sheng Person in Charge of Accounting Work: Yu Changxin Person in Charge of the
Accounting Institution: Yang Li
Profit Statement of Parent Company
Unit: CNY
Item First Half of 2026 First Half of 2025
I. Operating income
Less: operating costs
Taxes and surcharges -496286.41
Sales expenses
Administrative expenses 873174.90 303554.67
Item First Half of 2026 First Half of 2025
R&D expenses
Financial expenses -4060690.39 -603115.67
Including: interest expenses 240644.44 17012.29
Interest income 4304355.36 624863.91
Add: Other incomes 29150.85 121677.32
Investment income (loss to be listed with “-”) 18385109.96 2203459.15
Including: income from investment in associates and
joint ventures 4755109.96 2203459.15
Gains on Derecognition of Financial Assets Measured at
Amortized Cost (loss is listed with “-”)
Net exposure hedging income (loss to be listed with “-”)
Profit arising from changes in fair value (loss to be listed
with “-”)
Credit impairment loss (loss to be listed with “-”)
Asset impairment loss (loss to be listed with “-”)
Income from assets disposal (loss to be listed with “-”)
II. Operating profit (loss to be listed with “-”) 21601776.30 3120983.88
Add: non-operating income 0.66
Less: non-operating expenses
III. Total Profit (total loss is listed with “-”) 21601776.30 3120984.54
Less: income tax expenses
IV. Net profit (net loss to be listed with “-”) 21601776.30 3120984.54
(I) Net profit from continuing operations (net loss to be listed
with “-”)
(II) Net profit from discontinuing operations (net loss to be listed
with “-”)
V. Net after-tax amount of other comprehensive incomes -5163622.49 1904514.70
(I) Other comprehensive incomes that cannot be reclassified
into profits or losses -5163622.49 1904514.70
1. Changes arising from re-measurement of the defined
benefit plan
2. Other comprehensive incomes that cannot be transferred
to profits or losses under the equity method -5163622.49 1904514.70
3. Changes in fair value of investment in other equity
instruments
4. Changes in fair value of the Company’s credit risk
5. Others
(II) Other comprehensive incomes that will be reclassified
into profits or losses
1. Other comprehensive incomes that can be transferred to
profits or losses under the equity method
2. Changes in the fair value of other debt investments
3. Amount of financial assets reclassified into other
comprehensive incomes
4.Other debt investment credit impairment provisions
Item First Half of 2026 First Half of 2025
5. Cash flow hedging reserve
6. Translation difference in foreign currency financial
statements
7. Others
VI. Total comprehensive income 16438153.81 5025499.24
VII. Income per share:
(I) Basic income per share
(II) Diluted income per share
5. Consolidated Cash Flow Statement
Unit: CNY
Item First Half of 2026 First Half of 2025
I. Cash flows from operating activities:
Cash received from sales of goods and provision of
29874549732.68 33622023561.91
services
Net increase in customer bank deposits due to banks and
other financial institutions
Net increase in borrowings from the central bank
Net increase in placements from other financial
institutions
Cash from premium of original insurance contract
Net cash received from reinsurance business
Net increase in deposits and investments from
policyholders
Cash received from interests handling charges and
commissions
Net increase in placements from banks and other
financial institutions
Net increase in repurchase business capital
Net cash received from securities brokerage
Tax refunds received 189364275.97 355567798.16
Other cash received relating to operating activities 1231467377.33 729190041.58
Subtotal of cash inflows from operating activities 31295381385.98 34706781401.65
Cash paid for goods and services 20885270011.70 22598319244.50
Net increase in loans and advances to customers
Net increase in deposits with central bank and other
financial institutions
Cash paid for original insurance contract claims
Net increase in loans to banks and other financial
institutions
Cash paid for interests handling charges and
commissions
Cash paid for policyholder dividend
Cash paid to and on behalf of employees 2571689208.84 2685058298.28
Item First Half of 2026 First Half of 2025
Taxes paid 484102734.83 636112769.58
Cash paid for other operating activities 876746363.43 1152002068.58
Subtotal of cash outflows from operating activities 24817808318.80 27071492380.94
Net cash flows from operating activities 6477573067.18 7635289020.71
II. Cash flows from investment activities:
Cash received from the return of investment 19281000000.00 22200000000.00
Cash received from acquirement of investment income 26758269.45 217657522.00
Net cash received from fixed assets disposal intangible
3668349.39 88370290.58
assets and other long-term assets
Net cash received from the disposal of subsidiaries and
other business entities
Cash received from other investment activities 400000000.00
Subtotal of cash inflows from investment activities 19711426618.84 22506027812.58
Cash paid to acquire fixed assets intangible assets and
258933227.97 468913194.46
other long-term assets
Cash paid to acquire investments 19293250000.00 22200000000.00
Net increase in pledged loans
Net cash paid to acquire subsidiaries and other business
units
Other cash paid relating to investment activities 300000000.00
Subtotal of cash outflows from investment activities 19852183227.97 22668913194.46
Net cash flows from investment activities -140756609.13 -162885381.88
III. Cash flows from financing activities:
Cash received from absorbing investment
Including: cash received by subsidiaries absorbing
minority shareholders’ investments
Cash received from borrowings
Cash received relating to other financing activities
Subtotal of cash inflows from financing activities
Cash paid for repayment of debts
Cash paid for distribution of dividends profits or interest
504394.44 247096174.17
repayment
Including: dividends and profits paid to minority
shareholders by subsidiaries
Other cash paid relating to financing activities 806322.16 1227805.50
Subtotal of cash outflows from financing activities 1310716.60 248323979.67
Net cash flows from financing activities -1310716.60 -248323979.67
IV. Effects from change of exchange rate on cash and cash
-25010539.46 7609127.39
equivalents
V. Net increase in cash and cash equivalents 6310495201.99 7231688786.55
Add: opening balance of cash and cash equivalents 19663237066.02 19391201104.68
VI. Closing balance of cash and cash equivalents 25973732268.01 26622889891.23
6、Cash Flow Statement of Parent Company
Unit: CNY
Item First Half of 2026 First Half of 2025
I. Cash flows from operating activities:
Cash received from sales of goods and provision of services
Tax refunds received
Other cash received relating to operating activities 2350118081.77 801706960.00
Subtotal of cash inflows from operating activities 2350118081.77 801706960.00
Cash paid for goods and services
Cash paid to and on behalf of employees 200471.42 189000.00
Taxes paid 26452.06
Cash paid for other operating activities 2448485985.02 479889102.72
Subtotal of cash outflows from operating activities 2448712908.50 480078102.72
Net cash flows from operating activities -98594826.73 321628857.28
II. Cash flows from investment activities:
Cash received from the return of investment
Cash received from acquirement of investment income 13630000.00 156960226.90
Net cash received from fixed assets disposal intangible assets
and other long-term assets
Net cash received from the disposal of subsidiaries and other
business entities
Cash received from other investment activities
Subtotal of cash inflows from investment activities 13630000.00 156960226.90
Cash paid to acquire fixed assets intangible assets and other
long-term assets 24408300.53
Cash paid to acquire investments 31869500.00
Net cash paid to acquire subsidiaries and other business units
Other cash paid relating to investment activities
Subtotal of cash outflows from investment activities 31869500.00 24408300.53
Net cash flows from investment activities -18239500.00 132551926.37
III. Cash flows from financing activities:
Cash received from absorbing investment
Cash received from borrowings
Cash received relating to other financing activities
Subtotal of cash inflows from financing activities
Cash paid for repayment of debts
Cash paid for distribution of dividends profits or interest
repayment 240644.44 247096174.17
Other cash paid relating to financing activities
Subtotal of cash outflows from financing activities 240644.44 247096174.17
Net cash flows from financing activities -240644.44 -247096174.17
IV. Effects from change of exchange rate on cash and cash
equivalents
V. Net increase in cash and cash equivalents -117074971.17 207084609.48
Add: opening balance of cash and cash equivalents 571979553.04 152222868.42
VI. Closing balance of cash and cash equivalents 454904581.87 359307477.90
7、Consolidated Statement of Changes in Owners’ Equity
Amount in the current period
Unit: CNY
First Half of 2026
Equity Attributable to Owners of the Parent Company
Other G
Equity L e
Instrument e n
s s e
s
P r:
r a
P T
e l
e r
f R
r e
Item e i O
p a Other s th Minority Equityr O Total Owners’ EquityShare Capital e Capital Reserves s Comprehensive Special Reserves Surplus Reserves Undistributed Profits Subtotal
r t k er
t u Incomes
e h P s
u r
d e r
a y
r o
l S
S s v
B h
h i
o a
a s
n r
r i
d e
e os
s n
I. Closing balance
4921280975.00 11955912510.16 -387288724.63 243304714.89 3205602868.01 6532766397.35 26471578740.78 347907431.39 26819486172.17
of the previous year
Add: changes in
accounting policies
Correction of prior
period errors
Others
II. Opening Balance
4921280975.00 11955912510.16 -387288724.63 243304714.89 3205602868.01 6532766397.35 26471578740.78 347907431.39 26819486172.17
of the current year
III.Increase/decrease in
amount of the
949361.64 -167582505.10 -2708386.01 85007763.52 -84333765.95 39353788.31 -44979977.64
current period
(decrease to be
listed with “-”)
(I) Total
comprehensive 949361.64 -167582505.10 306465407.39 139832263.93 39353788.31 179186052.24
income
(II) Invested and
decreased capital of
owners
1. Ordinary shares
invested by owners
2. Capital
contributed by
holders of other
equity instruments
3. Amounts of
share-based
payments recorded
in owner’s equity
4. Others
(III) Profit
-221457643.87 -221457643.87 -221457643.87
distribution
1. Appropriation to
surplus reserves
2. Appropriation to
general risk reserves
3. Distribution to
owners (or -221457643.87 -221457643.87 -221457643.87
shareholders)
4. Others
(IV) Internal
carryover of
owners’equity
1. Transfer from
capital reserve to
paid-in capital (or
share capital)
2. Transfer from
surplus reserves to
paid-in capital (or
share capital)
3. Recovery of
losses by surplus
reserves
4. Retained earnings
carried forward
from changes in
defined benefit
plans
5. Retained earnings
carried forward
from other
comprehensive
income
6. Others
(V) Special reserves -2708386.01 -2708386.01 -2708386.01
1. Appropriation in
8627113.68 8627113.68 8627113.68
the current period
2. Use in the current
11335499.69 11335499.69 11335499.69
period
(VI) Others
IV. Closing balance
4921280975.00 11956861871.80 -554871229.73 240596328.88 3205602868.01 6617774160.87 26387244974.83 387261219.70 26774506194.53
of the current period
Amount in the previous year
Unit: CNY
First Half of 2025
Equity Attributable to Owners of the Parent Company
Other G
Equity e
Instrume n
nts e
r
P a
r P l
e e
f r R O
Item e p i tOther
r e O Less: Treasury s h Minority Equity Total Owners’ EquityShare Capital Capital Reserves Comprehensive Special Reserves Surplus Reserves Undistributed Profits Subtotal
r t t Shares k eIncomes
e u h r
d a e P s
l r r
S s o
h B v
a o i
r n s
e d i
s o
n
I. Closing
balance of
4922371176.00 11961480047.74 6246851.73 -96912346.71 277345883.15 3204548247.40 6055339906.81 26317926062.66 276723070.07 26594649132.73
the previous
year
Add:
changes in
accounting
policies
Correction
of prior
period errors
Others
II. Opening
Balance of
4922371176.00 11961480047.74 6246851.73 -96912346.71 277345883.15 3204548247.40 6055339906.81 26317926062.66 276723070.07 26594649132.73
the current
year
III.Increase/dec
rease in
amount of
the current -1090201.00 -5008714.84 -6246851.73 53512228.41 -4124405.03 -226408238.36 -176872479.09 28580540.69 -148291938.40
period
(decrease to
be listed
with “-”)
(I) Total
comprehensi 53512228.41 19655810.39 73168038.80 28580540.69 101748579.49
ve income
(II) Invested
and
decreased -1090201.00 -5008714.84 -6246851.73 147935.89 147935.89
capital of
owners
1. Ordinary
shares
-1090201.00 -4993120.58 -6083321.58 -6083321.58
invested by
owners
2. Capital
contributed
by holders
of other
equity
instruments
3. Amounts
of share-
based
payments
recorded in
owner’s
equity
4. Others -15594.26 -6246851.73 6231257.47 6231257.47
(III) Profit
-246064048.75 -246064048.75 -246064048.75
distribution
1.
Appropriatio
n to surplus
reserves
2.
Appropriatio
n to general
risk reserves
3.
Distribution
to owners
-246064048.75 -246064048.75 -246064048.75
(or
shareholders
)
4. Others
(IV) Internal
carryover of
owners’equi
ty
1. Transfer
from capital
reserve to
paid-in
capital (or
share
capital)
2. Transfer
from surplus
reserves to
paid-in
capital (or
share
capital)
3. Recovery
of losses by
surplus
reserves
4. Retained
earnings
carried
forward
from
changes in
defined
benefit plans
5. Retained
earnings
carried
forward
from other
comprehensi
ve income
6. Others
(V) Special
-4124405.03 -4124405.03 -4124405.03
reserves
1.
Appropriatio
n in the 15518831.90 15518831.90 15518831.90
current
period
2. Use in the
current 19643236.93 19643236.93 19643236.93
period
(VI) Others
IV. Closing
4921280975.00 11956471332.90 -43400118.30 273221478.12 3204548247.40 5828931668.45 26141053583.57 305303610.76 26446357194.33
balance of
the current
period
8. Statement of Changes in Owners’ Equity of Parent Company
Amount in the current period
Unit: CNY
First Half of 2026
Other Equity Instruments Less O
: Spec t
Item OtherTrea ial h
Share Capital PerpetPreferred Othe Capital Reserves Comprehensive Surplus Reserves Undistributed Profits Total Owners’ Equity
ual sury Rese e
Shares rs Incomes
Bond Shar rves r
es s
I. Closing balance of the previous year 4921280975.00 13797364225.24 19640620.81 1969779748.05 7134368517.65 27842434086.75
Add: changes in accounting policies
Correction of prior period errors
Others
II. Opening Balance of the current year 4921280975.00 13797364225.24 19640620.81 1969779748.05 7134368517.65 27842434086.75
III. Increase/decrease in amount of the current period (decrease to be
-5163622.49 -199855867.57 -205019490.06
listed with “-”)
(I) Total comprehensive income -5163622.49 21601776.30 16438153.81
(II) Invested and decreased capital of owners
1. Ordinary shares invested by owners
2. Capital contributed by holders of other equity instruments
3. Amounts of share-based payments recorded in owner’s equity
4. Others
(III) Profit distribution -221457643.87 -221457643.87
1. Appropriation to surplus reserves
2. Distribution to owners (or shareholders) -221457643.87 -221457643.87
3. Others
(IV) Internal carryover of owners’equity
1. Transfer from capital reserve to paid-in capital (or share capital)
2. Transfer from surplus reserves to paid-in capital (or share capital)
3. Recovery of losses by surplus reserves
4. Retained earnings carried forward from changes in defined benefit
plans
5. Retained earnings carried forward from other comprehensive income
6. Others
(V) Special reserves
1. Appropriation in the current period
2. Use in the current period
(VI) Others
IV. Closing balance of the current period 4921280975.00 13797364225.24 14476998.32 1969779748.05 6934512650.08 27637414596.69
Amount in the previous year
Unit: CNY
First Half of 2025
Other equity
instruments
P
r
e
f
e O
Item Perp Other Specialrr O Less: Treasury thShare Capital etua Capital Reserves Comprehensive Reserve Surplus Reserves Undistributed Profits Total Owners’ Equity
e th Shares er
l Incomes s
d er s
Bon
S s
d
h
a
r
e
s
I. Closing balance of the previous year 4922371176.00 13802357345.82 6246851.73 12671266.92 1968725127.44 7370940980.89 28070819045.34
Add: changes in accounting policies
Correction of prior period errors
Others
II. Opening Balance of the current year 4922371176.00 13802357345.82 6246851.73 12671266.92 1968725127.44 7370940980.89 28070819045.34
III. Increase/decrease in amount of the current period
-1090201.00 -4993120.58 -6246851.73 1904514.70 -242943064.21 -240875019.36
(decrease to be listed with “-”)
(I) Total comprehensive income 1904514.70 3120984.54 5025499.24
(II) Invested and decreased capital of owners -1090201.00 -4993120.58 -6246851.73 163530.15
1. Ordinary shares invested by owners -1090201.00 -4993120.58 -6083321.58
2. Capital contributed by holders of other equity
instruments
3. Amounts of share-based payments recorded in
owner’s equity
4. Others -6246851.73 6246851.73
(III) Profit distribution -246064048.75 -246064048.75
1. Appropriation to surplus reserves
2. Distribution to owners (or shareholders) -246064048.75 -246064048.75
3. Others
(IV) Internal carryover of owners’equity
1. Transfer from capital reserve to paid-in capital (or
share capital)
2. Transfer from surplus reserves to paid-in capital (or
share capital)
3. Recovery of losses by surplus reserves
4. Retained earnings carried forward from changes in
defined benefit plans
5. Retained earnings carried forward from other
comprehensive income
6. Others
(V) Special reserves
1. Appropriation in the current period
2. Use in the current period
(VI) Others
IV. Closing balance of the current period 4921280975.00 13797364225.24 14575781.62 1968725127.44 7127997916.68 27829944025.98
III. Company Profile
FAW Jiefang Group Co. Ltd. formerly known as FAW Car Co. Ltd. is a limited liability company
registered in Changchun City Jilin Province.FAW Car was approved by TGS [1997] No. 55 Document of the State Commission for Restructuring the
Economic Systems in 1997 and established exclusively by China FAW Group Co. Ltd . On June 18 1997
FAW Car was approved by the China Securities Regulatory Commission to issue shares publicly and listed on
the Shenzhen Stock Exchange for circulation.On April 9 2012 FAW Group invested 862983689 shares of FAW Car into China FAW Co. Ltd. as its
capital contribution to FAW and received the Confirmation of Securities Transfer Registration issued by China
Securities Depository & Clearing Co. Ltd. Shenzhen Branch on the same day.On November 28 2019 FAW Car held the 10th meeting of the 8th Board of Directors and reviewed and
approved the adjustment plan for major asset restructuring. After the adjustment FAW Car Co. Ltd. transferred
all its assets and liabilities except for the equity interests in First Automobile Finance Co. Ltd. and Sanguard
Automobile Insurance Co. Ltd. and certain reserved assets to FAW Bestune Co. Ltd. (now renamed as FAW
Bestune Auto Co. Ltd.). Subsequently FAW Car Co. Ltd. used the 100% equity in FAW Bestune as disposed
assets to exchange for an equivalent portion of the 100% equity interest of FAW Jiefang Automotive Co. Ltd.held by China FAW Co. Ltd. Meanwhile FAW Car purchased the difference between the purchased assets and
the sold assets from FAW by issuing shares and paying cash.On March 12 2020 FAW Car received the Reply on Approving the Major Asset Restructuring of FAW
Car Co. Ltd. and Issuing Shares to China FAW Co. Ltd. for Asset Purchase (ZJXK [2020] No.352) issued by
the China Securities Regulatory Commission and China Securities Regulatory Commission reviewed and
approved the major asset replacement share issuance and cash payment for assets purchase and related
transactions of FAW Car.The Capital Verification Report (XYZH/2020BJA100417) issued by ShineWing Accounting Firm (special
general partnership) indicates that as of March 19 2020 all proposed purchased assets i.e. 100% equity of
Jiefang Limited to be replaced by FAW Car to FAW by issuing shares had been transferred to FAW Car. The
industrial and commercial change registration procedures of Jiefang Limited had been completed all proposed
assets i.e. 100% equity of FAW Bestune had been transferred to FAW and the industrial and commercial
change registration procedures of FAW Bestune had been completed. The registered capital of FAW Car is
CNY 4609666212.00 after this change.In May 2020 the Chinese name of FAW Car Co. Ltd. was changed to FAW Jiefang Group Co. Ltd. and
the stock abbreviation was changed to “FAW Jiefang”.On January 11 2021 the Company held the First Extraordinary General Meeting of Shareholders of 2021
and reviewed and approved the Proposal on the Restricted Share Incentive Plan of FAW Jiefang Group Co. Ltd.
(Draft) and Its Summary the Proposal on the Administrative Measures for the Implementation Assessment of
the Restricted Share Incentive Plan of FAW Jiefang Group Co. Ltd. the Proposal on the Administrative
Measures for Restricted Share Incentives of FAW Jiefang Group Co. Ltd. and the Proposal on Requesting the
General Meeting of Shareholders to Authorize the Board of Directors to Handle Matters Related to the
Company’s Restricted Share Incentive Plan.On January 15 2021 the Company held the 12th meeting of the 9th Board of Directors and reviewed and
approved the Proposal on Adjusting the List of the First Batch of Incentive Participants and the Number of
Shares to Be Granted under the Phase I Restricted Share Incentive Plan and the Proposal on the First Grant of
Restricted Shares to the Incentive Participants of the Phase I Restricted Share Incentive Plan. Nine directors and
senior executives including Hu Hanjie Zhu Qixin Zhang Guohua Wang Ruijian Shang Xingwu Ou Aimin
Kong Dejun Wu Bilei and Wang Jianxun and 310 other core employees at the rank of senior chief engineer
and above were granted the right to subscribe for 40987657 new shares of the Company at an issue price of
CNY 7.54 per share and the registered capital of the Company was changed to CNY 4650653869.00. This
change was verified by the Capital Verification Report (ZTYZ (2021) No. 110C000033) issued by Grant
Thornton Certified Public Accountants (Special General Partnership). On February 1 2021 the Company
disclosed the Announcement on the Completion of the First Grant Registration of the Phase I Restricted Share
Incentive Plan.On December 9 2021 the Company held the 20th meeting of the 9th Board of Directors and the 19th
meeting of the 9th Board of Supervisors and reviewed and approved the Proposal on Granting Reserved Part of
Restricted Shares in the Phase I Restricted Share Incentive Plan to Incentive Objects and the Proposal on
Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan
respectively. Thirty-three core technicians and management backbones including Wang Manhong Zhang Yu
and Qu Yi subscribed for 3721601 new shares at an issue price of CNY 6.38/share and 260857 shares were
repurchased at a price of CNY 7.04/share from 2 employees who were no longer eligible for incentive objects.The registered capital of the Company was changed to CNY 4654114613.00. This change was verified by the
Capital Verification Report (ZTYZ (2021) No.110C000927) issued by Grant Thornton Accounting Firm
(special general partnership). On January 6 2022 the Company disclosed the Announcement on the
Completion of Registration of the Grant of Reserved Part of Restricted Shares in the Phase I Restricted Share
Incentive Plan. On January 17 2022 the Company disclosed the Announcement on the Completion of
Repurchase and Cancellation of Some Restricted Shares.On August 29 2022 the Company held the 26th meeting of the 9th Board of Directors and the 23rd
meeting of the 9th Board of Supervisors and reviewed and approved the Proposal on Repurchase and
Cancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan. It was agreed to
repurchase 789711 shares at a price of CNY 6.39/share from 6 employees who are no longer qualified as
incentive objects and the registered capital of the Company was changed to CNY 4653324902.00. This
change was verified according to the Capital Verification Report (XYZH/2022CCAA2B0016) issued by
ShineWing Accounting Firm (special general partnership). On November 14 2022 the Company disclosed the
Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares.On October 28 2022 the Company held the 28th meeting of the 9th Board of Directors and the 24th
meeting of the 9th Board of Supervisors and reviewed and approved the Proposal on Repurchase and
Cancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan and agreed to
repurchase 1359247 shares at a price of CNY 6.39/share from 11 employees who are no longer qualified as
incentive objects. The registered capital of the Company was changed to CNY 4651965655.00. This change
was verified according to the Capital Verification Report (XYZH/2023CCAA2B0001) issued by ShineWing
Accounting Firm (special general partnership). On January 17 2023 the Company disclosed the Announcement
on Completion of Repurchase and Cancellation of Some Restricted Shares.On December 15 2022 the Company held the 30th Meeting of the 9th Board of Directors and the 26th
Meeting of the 9th Board of Supervisors and reviewed and approved the Proposal on the Achievement of
Unlocking Conditions in the First Release Period of the Restricted Shares Firstly Granted in the Phase I
Restricted Incentive Plan. The unlocking conditions in the first release period of the restricted shares firstly
granted in the phase I restricted incentive plan had been fulfilled. The unlocking matters of the first restriction
releasing period for restricted shares firstly granted were handled in accordance with the restricted share
incentive plan. There were a total of 311 incentive objects eligible for unlocking and the number of restricted
stocks unlocked this time was 13042347. These shares were listed on May 16 2023. On February 3 2024 the
Company disclosed the Indicative Announcement on the Listing and Circulation of Unlocked Shares in the First
Release Period of the Restricted Shares Firstly Granted in the Phase I Restricted Share Incentive Plan.The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted
Share Incentive Plan was reviewed and approved at the 30th Meeting of the 9th Board of Directors and the 26th
Meeting of the 9th Board of Supervisors on December 15 2022. The participants at the meeting agreed to
repurchase and cancel all or some restricted shares granted to 6 incentive objects but not yet released totaling
723435 shares and the registered capital of the Company was changed to CNY 4651242220. This change
was verified according to the Capital Verification Report (XYZH/2023CCAA2B0103) issued by ShineWing
Accounting Firm (special general partnership). On April 28 2023 the Company disclosed the Announcement
on Completion of Repurchase and Cancellation of Some Restricted Shares.On March 31 2023 the Proposal on Unfulfilling Conditions for Releasing Restricted Sales in the Second
Period of Releasing Restricted Shares Firstly Granted and Conditions for the First Period of Releasing
Restricted Shares Reserved for Granting in Phase I Restricted Share Incentive Plan and Repurchase and
Cancellation of Some Restricted Shares was reviewed and approved at the 32nd Meeting of the 9th Board of
Directors and the 28th Meeting of the 9th Board of Supervisors. The participants at the meeting agreed to
repurchase and cancel all or some restricted shares granted to 327 incentive objects but not yet released totaling
13909890 shares and the registered capital of the Company was changed to CNY 4637332330. This change
was verified according to the Capital Verification Report (XYZH/2023CCAA2B017) issued by ShineWing
Accounting Firm (special general partnership). On June 30 2023 the Company disclosed the Announcement on
Completion of Repurchase and Cancellation of Some Restricted Shares.On April 27 2023 the Company held the 2nd Meeting of the 10th Board of Directors and the 2nd Meeting
of the 10th Board of Supervisors respectively and reviewed and approved the Proposal on Releasing
Restriction on Sales of Part of Restricted Shares. The Board of Directors believed that conditions for releasing
restricted sales of restricted shares in the first restriction releasing period for incentive objects Hu Hanjie Wu
Bilei Zhang Guohua and Wang Jianxun had been fulfilled and agreed to release restricted sales of restricted
shares in the first restriction releasing period for them totaling 64954 shares. These shares were listed on May
16 2023. On May 15 2023 the Company disclosed the Indicative Announcement on Sales Restriction
Releasing and Listing and Circulation of Part of Restricted Shares.The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted
Share Incentive Plan was reviewed and approved at the 5th Meeting of the 10th Board of Directors and the 4th
Meeting of the 10th Board of Supervisors on August 29 2023. The participants at the meeting agreed to
repurchase and cancel all or some restricted shares granted to 8 incentive objects but not yet released totaling
333855 shares and the registered capital of the Company was changed to CNY 4636998475.00. This change
was verified according to the Capital Verification Report (XYZH/2023CCAA2B0188) issued by ShineWing
Accounting Firm (special general partnership). On November 29 2023 the Company disclosed the
Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares.The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted
Share Incentive Plan was reviewed and approved at the 7th Meeting of the 10th Board of Directors and the 6th
Meeting of the 10th Board of Supervisors on November 20 2023. The participants at the meeting agreed to
repurchase and cancel all or some restricted shares granted to some incentive objects but not yet released
totaling 512807 shares and the registered capital of the Company was changed to CNY 4636485668. This
change was verified according to the Capital Verification Report (XYZH/2024CCAA2B0020) issued by
ShineWing Accounting Firm (special general partnership). On March 28 2024 the Company disclosed the
Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares.On March 28 2024 the Company held the 11th meeting of the 10th Board of Directors and the 10th
meeting of the 10th Board of Supervisors.Subsequently on April 25 2024 the Company held its 2023 AnnualGeneral Meeting of Shareholders.These meetings reviewed and approved “Proposal on Unfulfilling Conditionsfor Releasing Restricted Sales in the Third Period of Releasing Restricted Shares Firstly Granted and
Conditions for the Second Period of Releasing Restricted Shares Reserved for Granting in Phase I RestrictedShare Incentive Plan and Repurchase and Cancellation of Some Restricted Shares.” The meetings approved the
repurchase and cancellation of 12621954 restricted shares that had been granted to plan participants but had
not yet vested. As a result the Company’s registered capital will be changed to CNY 4623863714. This
change was verified according to the Capital Verification Report (XYZH/2024CCAA2B0173) issued by
ShineWing Accounting Firm (special general partnership). On June 15 2024 the Company disclosed the
Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares.On March 28 2025 the Company held the 24th meeting of the 10th Board of Directors and the 20th
meeting of the 10th Board of Supervisors and subsequently on April 18 2025 the 2024 Annual GeneralMeeting of Shareholders. At these meetings the “Proposal on Unfulfilled Conditions for the Third ReleasePeriod of the Phase I Restricted Share Incentive Plan and the Repurchase and Cancellation of Some RestrictedShares as well as Adjustment of Repurchase Price” was reviewed and approved.The meetings approved the
repurchase and cancellation of 1090201 restricted shares that had been granted to incentive participants but
had not yet been released from restriction.Consequently the Company’s registered capital will be adjusted to
CNY 4921280975. This change was verified by the Capital Verification Report (ZTYZ (2025)
No.110C000149) issued by Grant Thornton Accounting Firm (special general partnership). On June 10 2025
the Company disclosed the Announcement on Completion of Repurchase and Cancellation of Some Restricted
Shares.According to the resolutions passed at the Company’s Second Extraordinary General Meeting of
Shareholders in 2023 and the Second Extraordinary General Meeting of Shareholders in 2024 and as approvedby the CSRC’s document “Reply on Approving the Registration of FAW Jiefang Group Co. Ltd.’s Non-publicIssuance of Shares” (CSRC [2024] No.972) issued on June 21 2024 the Company conducted a non-public
issuance of 298507462.00 A-shares increasing the registered capital by CNY 298507462.00.Consequently
the Company’s registered capital has changed to CNY 4922371176.00. This non-public issuance of shares has
been verified by the Capital Verification Report (ZTYZ [2024] No.110C000357) issued by Grant Thornton
Accounting Firm (special general partnership).The Company has established a corporate governance structure consisting of a Shareholders’ Meeting and
a Board of Directors and has 8 wholly-owned subsidiaries namely Jiefang Limited FAW Jiefang Group
International Automobile Co. Ltd. Jiefang Saudi Arabia Co. Ltd. Jiefang Uzbekistan Co. Ltd. Jiefang
Vietnam Co. Ltd. Jiefang Indonesia Co. Ltd. FAW Jiefang Uni-D Transportation Technology (Tianjin) Co.Ltd. and FAW Jiefang Lvdong Renewable Technology (Wuxi) Co. Ltd. and 2 non-wholly-owned subsidiaries
namely Jiefang Best Co. Ltd. and FAW (Africa) Investment Co. Ltd. FAW (Africa) Investment Co. Ltd. has 1
non-wholly-owned subsidiary FAW Vehicle Manufacturing (South Africa) Co. Ltd. Jiefang Limited has 4
wholly-owned subsidiaries namely FAW Jiefang (Qingdao) Automotive Co. Ltd. FAW Jiefang Dalian Diesel
Engine Co. Ltd. FAW Jiefang Austria R&D Co. Ltd. and FAW Jiefang Automobile Sales Co. Ltd. and 1
non-wholly-owned subsidiary Jiefang Motors Tanzania Ltd. The Company also has 10 associates namely
Sanguard Automobile Insurance Co. Ltd. FAW Changchun Baoyou Jiefang Steel Processing and Distribution
Co. Ltd. FAW Changchun Ansteel Jiefang Steel Processing and Distribution Co. Ltd. Changchun Wabco
Automotive Control System Co. Ltd. Suzhou Zhito Technology Co. Ltd. FAW Jiefang Fujie (Tianjin)
Technology Industry Co. Ltd. Smartlink Intelligent Technology (Nanjing) Co. Ltd. Foshan Diyiyuansu New
Energy Technology Co. Ltd. Changchun Automotive Test Center Co. Ltd. and Diyi AESC New Energy
Power Technology (Wuxi) Co. Ltd. Additionally it has 1 joint venture Jiefang Times New Energy Technology
Co. Ltd.Business scope of the Company: R&D production and sales of medium and heavy trucks vehicles buses
bus chassis medium truck deformation vehicles automobile assemblies and parts machining diesel engines
and accessories (non-vehicle) mechanical equipment and accessories instruments technical services technical
consultation installation and maintenance of mechanical equipment lease of mechanical equipment and
facilities lease of houses and workshops labor services (excluding foreign labor cooperation and domestic
labor dispatch) sales of steel automobile trunks hardware & electrical equipment and electronic products
testing of internal combustion engine engineering technology research and testing advertising design
production and release import and export of goods and technologies (excluding publication import business and
commodities and technologies restricted or prohibited for import and export by the state); (the following items
are operated by the branch company) Chinese food production and sales warehousing and logistics (excluding
flammable explosive and precursor dangerous chemicals) automobile repair tank manufacturing of chemical
liquid tanker automobile trunk manufacturing (items subject to approval according to law can be operated only
after being approved by relevant authorities).Registered address of the Company: No.2259 Dongfeng Street Changchun Automobile Development
Zone Jilin Province.The legal representative of the Company is Li Sheng.The financial statements and notes to the financial statements were approved for issue by the Board of
Directors of the Company on August 27 2026.IV.Basis of Preparation for Financial Statements
1.Preparation BasisThe financial statements have been prepared in accordance with the “Accounting Standards for BusinessEnterprises – Basic Standard” and various specific accounting standards application guidance interpretations
and other relevant provisions (collectively referred to as the “Accounting Standards for Business Enterprises”)promulgated by the Ministry of Finance as well as the relevant provisions of the “Rules for InformationDisclosure and Reporting by Companies that Publicly Issue Securities No. 15 – General Provisions on FinancialReports” issued by the China Securities Regulatory Commission (CSRC).2.Continuing Operations
The financial statements have been prepared on a going concern basis.V. Significant Accounting Policies and Accounting Estimates
Tips for specific accounting policies and accounting estimates:
The following disclosures have covered the specific accounting policies and accounting estimates
formulated by the Company based on its actual production and operating characteristics.Statement of Compliance with Accounting Standards for Business Enterprises
The financial statements comply with the requirements of the Accounting Standards for Business
Enterprises promulgated by the Ministry of Finance and truly and completely reflect the consolidated and
parent company financial position of the Company as of June 30 2026 and the consolidated and parent
company operating results and cash flows for the six-month period ended June 30 2026.Accounting Period
The accounting year runs from January 1 to December 31 of each calendar year.Operating Cycle
The operating cycle of the Company is 12 months.Recording Currency
The Company adopts CNY as its reporting currency.Methods for Determining Materiality Criteria and Selection Basis
□Applicable □Not applicable
Item Materiality Criteria
Receivables with significant provision for bad debts
by individual item Amount greater than CNY 10 million
Significant other receivables with bad debt provision
accrued on an individual basis Amount greater than CNY 10 million
Significant accounts payable aged over one year or
overdue Amount greater than CNY 10 million
Significant other payables aged over one year or
overdue Amount greater than CNY 10 million
Major projects under construction 10% of the absolute value of net profit or 10% ofsimilar transactions
Significant capitalized R&D projects 10% of the absolute value of net profit or 10% ofsimilar transactions
Accounting Treatment Method for Business Combination under Common Control and Not under
Common Control
Business combinations involving enterprises under common control: The assets and liabilities (including
goodwill arising from the ultimate controlling party’s acquisition of the acquiree) obtained by the acquirer in a
business combination shall be measured based on the carrying amounts of the acquiree’s assets and liabilities in
the consolidated financial statements of the ultimate controlling party at the combination date. The difference
between the carrying amount of the net assets acquired in the combination and the carrying amount of the
consideration paid for the combination (or the total face value of shares issued) shall be used to adjust the share
premium within capital reserve; any excess that cannot be offset against the share premium within capital
reserve shall be used to adjust retained earnings.Business combinations involving enterprises not under common control: The cost of combination shall be
the fair value of the assets given liabilities incurred or assumed and equity securities issued by the acquirer to
obtain control of the acquiree at the acquisition date. The excess of the cost of combination over the acquirer’s
interest in the fair value of the identifiable net assets of the acquiree acquired in the combination shall be
recognized as goodwill; the excess of the acquirer’s interest in the fair value of the identifiable net assets of the
acquiree acquired in the combination over the cost of combination shall be recognized in profit or loss for the
current period. The identifiable assets liabilities and contingent liabilities of the acquiree acquired in the
combination that meet the recognition criteria shall be measured at fair value at the acquisition date.Directly related expenses incurred for the business combination shall be recognized in profit or loss for the
current period when incurred; transaction costs of issuing equity or debt securities for the business combination
shall be included in the initial recognition amount of the equity or debt securities.Criteria for Control and Preparation Method of Consolidated Financial Statements
Criteria for Determining Control
The scope of consolidation of the consolidated financial statements is determined on the basis of control
and encompasses the Company and all its subsidiaries. Control means that the Company has power over the
investee is exposed or has rights to variable returns from its involvement with the investee and has the ability
to use its power over the investee to affect the amount of the returns.Consolidation Procedures
The Company regards the entire enterprise group as a single accounting entity and prepares consolidated
financial statements in accordance with uniform accounting policies to reflect the overall financial position
operating results and cash flows of the enterprise group. The effects of internal transactions between the
Company and its subsidiaries and among subsidiaries are eliminated. Where internal transactions indicate that
impairment losses have occurred on the related assets such losses shall be recognized in full. Where the
accounting policies or accounting periods adopted by a subsidiary are inconsistent with those of the Company
necessary adjustments shall be made in accordance with the Company’s accounting policies and accounting
periods when preparing the consolidated financial statements.The portions of a subsidiary’s owners’ equity current net profit or loss and current comprehensive income
attributable to non-controlling interests are presented separately under the owners’ equity section in the
consolidated balance sheet under the net profit line item in the consolidated income statement and under the
total comprehensive income line item respectively. Where the current period losses attributable to the non-
controlling interests of a subsidiary exceed the non-controlling interests’ share in the subsidiary’s owners’
equity at the beginning of the period the resulting balance shall be deducted from the non-controlling interests.
(1) Addition of subsidiaries or businesses
During the reporting period for subsidiaries or businesses added through business combinations involving
enterprises under common control the operating results and cash flows of the subsidiary or business from the
beginning of the combination period to the end of the reporting period shall be included in the consolidated
financial statements. Meanwhile the opening balances of the consolidated financial statements and the related
items of the comparative statements shall be adjusted as if the combined reporting entity had existed since the
point in time when the ultimate controlling party first obtained control.Where control is obtained over an investee under common control due to additional investments or other
reasons for the equity investment held before obtaining control over the acquiree the relevant profit or loss
other comprehensive income and other changes in net assets previously recognized during the period from the
later of the date on which the original equity was acquired and the date on which the acquirer and the acquiree
came under common control to the combination date shall be adjusted against the opening retained earnings of
the comparative reporting period or profit or loss for the current period respectively.During the reporting period for subsidiaries or businesses added through business combinations involving
enterprises not under common control they shall be included in the consolidated financial statements from the
acquisition date based on the fair value of the identifiable assets liabilities and contingent liabilities determined
as of the acquisition date.Where control is obtained over an investee not under common control due to additional investments or
other reasons the equity interest previously held in the acquiree before the acquisition date shall be remeasured
at its fair value as of the acquisition date and the difference between the fair value and its carrying amount shall
be recognized in investment income for the current period. The other comprehensive income that may be
subsequently reclassified to profit or loss and the other changes in owners’ equity under the equity method
related to the equity interest in the acquiree held before the acquisition date shall be transferred to investment
income for the period in which the acquisition date falls.
(2) Disposal of subsidiaries
* General treatment method
Where control over an investee is lost due to the disposal of a portion of the equity investment or other
reasons the remaining equity investment shall be remeasured at its fair value as of the date on which control is
lost. The difference between the sum of the consideration obtained from the disposal of equity and the fair value
of the remaining equity investment and the sum of the share of the net assets of the former subsidiary
continuously calculated from the acquisition date or the combination date at the original shareholding ratio plus
the associated goodwill shall be recognized in investment income for the period in which control is lost. The
other comprehensive income that may be subsequently reclassified to profit or loss and the other changes in
owners’ equity under the equity method related to the equity investment in the former subsidiary shall be
transferred to investment income for the current period upon the loss of control.* Step-by-step disposal of subsidiaries
Where the equity investment in a subsidiary is disposed of in stages through multiple transactions until
control is lost and where the terms conditions and economic effects of the individual transactions for the
disposal of the equity investment in the subsidiary meet one or more of the following criteria it usually
indicates that such multiple transactions constitute a package deal:
ⅰ． These transactions are entered into simultaneously or with consideration of their mutual effects;
ⅱ． These transactions as a whole can achieve a complete commercial result only when taken together;
ⅲ． The occurrence of one transaction depends on the occurrence of at least one other transaction;
ⅳ． A transaction is uneconomic when viewed in isolation but economic when considered together with
other transactions.Where the individual transactions constitute a package deal they shall be accounted for as a single
transaction involving the disposal of the subsidiary and the loss of control; prior to the loss of control the
difference between the disposal consideration for each transaction and the corresponding share of the
subsidiary’s net assets attributable to the disposed investment shall be recognized as other comprehensive
income in the consolidated financial statements and shall be transferred in aggregate to profit or loss for the
period in which control is lost upon the loss of control.Where the individual transactions do not constitute a package deal prior to the loss of control they shall be
accounted for as a partial disposal of the equity investment in the subsidiary without the loss of control; upon
the loss of control they shall be accounted for in accordance with the general treatment method for the disposal
of subsidiaries.
(3) Acquisition of non-controlling interests in subsidiaries
The difference between the cost of the newly acquired long-term equity investment arising from the
acquisition of non-controlling interests and the share of the subsidiary’s net assets continuously calculated from
the acquisition date or combination date at the newly increased shareholding ratio shall be used to adjust the
share premium within capital reserve in the consolidated balance sheet; any excess that cannot be offset against
the share premium within capital reserve shall be used to adjust retained earnings.
(4) Partial disposal of equity investment in a subsidiary without losing control
The difference between the disposal consideration and the corresponding share of the subsidiary’s net
assets continuously calculated from the acquisition date or combination date attributable to the disposed long-
term equity investment shall be used to adjust the share premium within capital reserve in the consolidated
balance sheet; any excess that cannot be offset against the share premium within capital reserve shall be used to
adjust retained earnings.Classification of Joint Venture Arrangement and Accounting Treatment Methods for Joint Operations
Joint arrangements are classified as joint operations and joint ventures.A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets and obligations for the liabilities relating to the arrangement.The Company recognizes the following items relating to its interest in a joint operation:
(1) Its assets held solely and its share of any jointly held assets;
(2) Its liabilities incurred solely and its share of any jointly incurred liabilities;
(3) Its revenue from the sale of its share of the output arising from the joint operation;
(4) Its share of the revenue from the sale of output by the joint operation;
(5) Its expenses incurred solely and its share of any expenses incurred jointly.
The Company accounts for its investments in joint ventures using the equity method; please refer to Item
19 “Long-term Equity Investments” in Section V “Significant Accounting Policies and Accounting Estimates”
of Section VIII Financial Report for details.Standards for Recognition of Cash and Cash Equivalents
Cash refers to the Company’s cash on hand and deposits that are readily available for payment. Cash
equivalents refer to short-term highly liquid investments held by the Company that are readily convertible to
known amounts of cash and are subject to an insignificant risk of changes in value.Foreign Currency Transaction and Foreign Currency Statement Translation
Foreign Currency Transactions
Foreign currency transactions shall be recorded in CNY at the spot exchange rate prevailing on the date of
the transaction as the translation rate.On the balance sheet date balances of foreign currency monetary items shall be translated at the spot
exchange rate prevailing on the balance sheet date. The resulting exchange differences shall be recognized in
profit or loss for the current period except for those arising from specific-purpose foreign currency borrowings
designated for the acquisition or construction of qualifying assets which shall be treated in accordance with the
capitalization principles for borrowing costs.Translation of Foreign Currency Financial Statements
Asset and liability items in the balance sheet shall be translated at the spot exchange rate prevailing on the
balance sheet date; owners’ equity items except for “Undistributed Profits” shall be translated at the spot
exchange rate prevailing at the time of occurrence. Revenue and expense items in the income statement shall be
translated at the spot exchange rate prevailing on the date of the transactions.Upon disposal of a foreign operation the exchange differences arising from the translation of the foreign
currency financial statements of the foreign operation previously recognized in owners’ equity shall be
transferred to profit or loss for the period in which the disposal occurs.Financial Instruments
The Company shall recognize a financial asset a financial liability or an equity instrument when it
becomes a party to the contractual provisions of a financial instrument.Classification of Financial Instruments
Based on the Company’s business model for managing financial assets and the contractual cash flow
characteristics of the financial assets financial assets shall be classified at initial recognition into: financial
assets measured at amortized cost financial assets measured at fair value through other comprehensive income
(FVTOCI) and financial assets measured at fair value through profit or loss (FVTPL).
The Company classifies the financial assets that meet the following conditions but are not designated to be
measured at fair value and with the changes included in current profits or losses as the financial assets measured
at amortized cost:
- The business model objective is to hold financial assets in order to collect contractual cash flows;
- The contractual cash flows are solely payments of principal and interest on the principal amount
outstanding.The Company classifies financial assets that simultaneously meet the following conditions and have not
been designated as financial assets at FVTPL as financial assets at FVTOCI (debt instruments):
- The objective of the business model is achieved by both collecting contractual cash flows and selling the
financial assets;
- The contractual cash flows are solely payments of principal and interest on the principal amount
outstanding.For investments in equity instruments that are not held for trading the Company may upon initial
recognition irrevocably designate them as financial assets measured at fair value through other comprehensive
income (equity instruments). Such designation is made on an investment-by-investment basis and the relevant
investment shall meet the definition of an equity instrument from the issuer’s perspective.Except for the above-mentioned financial assets measured at amortized cost and fair value through other
comprehensive income the Company classifies all remaining financial assets as financial assets measured at
fair value through profit or loss. At initial recognition if doing so eliminates or significantly reduces an
accounting mismatch the Company may irrevocably designate a financial asset that would otherwise be
classified as measured at amortized cost or measured at fair value through other comprehensive income as a
financial asset measured at fair value through profit or loss.Financial liabilities shall be classified at initial recognition into: financial liabilities measured at fair value
through profit or loss and financial liabilities measured at amortized cost.A financial liability that meets one of the following conditions may be designated at initial measurement as
a financial liability measured at fair value through profit or loss:
1) Such designation can eliminate or significantly reduce an accounting mismatch.
2) In accordance with a documented risk management or investment strategy of the Company a group of
financial liabilities or a group of financial assets and financial liabilities is managed and its performance is
evaluated on a fair value basis and information about such group is reported internally on that basis to key
management personnel.
3) The financial liability contains an embedded derivative that needs to be separated independently.
Recognition Basis and Measurement Methods for Financial Instruments
(1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include notes receivable accounts receivable other
receivables long-term receivables debt investments etc. and shall be initially measured at fair value with
related transaction costs included in the initial recognition amount; accounts receivable that do not contain a
significant financing component as well as accounts receivable for which the Company has elected not to
consider the financing component of one year or less shall be initially measured at the transaction price as
defined in the contract.Interest calculated using the effective interest method during the holding period shall be recognized in
profit or loss for the current period.Upon collection or disposal the difference between the consideration obtained and the carrying amount of
the financial asset shall be recognized in profit or loss for the current period.
(2) Financial assets measured at fair value through other comprehensive income (debt instruments)
Financial assets measured at fair value through other comprehensive income (debt instruments) include
receivables financing other debt investments etc. They shall be initially measured at fair value with related
transaction costs included in the initial recognition amount. Such financial assets shall be subsequently
measured at fair value. Changes in fair value except for interest calculated using the effective interest method
impairment losses or gains and foreign exchange gains and losses shall be recognized in other comprehensive
income.Upon derecognition the cumulative gains or losses previously recognized in other comprehensive income
shall be transferred from other comprehensive income and recognized in profit or loss for the current period.
(3) Financial assets measured at fair value through other comprehensive income (equity instruments)
Financial assets measured at fair value through other comprehensive income (equity instruments) include
investments in other equity instruments etc. They are initially measured at fair value and related transaction
costs are included in the initial recognition amount. Such financial assets shall be subsequently measured at fair
value and changes in fair value shall be recognized in other comprehensive income. Dividends obtained shall
be recognized in profit or loss for the current period.Upon derecognition the cumulative gains or losses previously recognized in other comprehensive income
shall be transferred from other comprehensive income and recognized in retained earnings.
(4) Financial assets measured at fair value through profit or loss
Financial assets measured at fair value through profit or loss include trading financial assets derivative
financial assets other non-current financial assets etc. They are initially measured at fair value and related
transaction costs are recognized in profit or loss for the current period. The financial asset is subsequently
measured at fair value and changes in fair value are recognized in profit or loss for the current period.
(5) Financial liabilities measured at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss include trading financial liabilities
derivative financial liabilities etc. They are initially measured at fair value and related transaction costs are
recognized in profit or loss for the current period. The financial liability is subsequently measured at fair value
and changes in fair value are recognized in profit or loss for the current period.Upon derecognition the difference between its carrying amount and the consideration paid shall be
recognized in profit or loss for the current period.
(6) Financial liabilities measured at amortized cost
Financial liabilities measured at amortized cost include short-term borrowings notes payable accounts
payable other payables long-term borrowings bonds payable and long-term payables and shall be initially
measured at fair value with related transaction costs included in the initial recognition amount.Interest calculated using the effective interest method during the holding period shall be recognized in
profit or loss for the current period.Upon derecognition the difference between the consideration paid and the carrying amount of the financial
liability is included in current profit or loss.Basis for Derecognition of Financial Assets and Recognition Criteria and Measurement Methods for
Transfer of Financial Assets
The Company derecognizes a financial asset when one of the following conditions is met:
- The contractual rights to collect the cash flows of the financial asset have terminated;
- The financial asset has been transferred and substantially all the risks and rewards of ownership of the
financial asset have been transferred to the transferee;
- The financial asset has been transferred and although the Company has neither transferred nor retained
substantially all the risks and rewards of ownership of the financial asset the Company has not retained control
over the financial asset.Where the Company modifies or renegotiates a contract with a counterparty and such modification
constitutes a substantive modification the original financial asset shall be derecognized and a new financial
asset shall be recognized in accordance with the modified terms.When a transfer of a financial asset occurs where substantially all the risks and rewards of ownership of
the financial asset are retained the financial asset shall not be derecognized.When determining whether the transfer of financial assets meets the aforementioned criteria for
derecognition of financial assets the principle of substance over form shall be applied.The Company classifies the transfer of financial assets into transfers of entire financial assets and transfers
of parts of financial assets. Where the entire transfer of a financial asset meets the criteria for derecognition the
difference between the following two amounts shall be recognized in profit or loss for the current period:
(1) The carrying amount of the transferred financial asset;
(2) The sum of the consideration received from the transfer and the cumulative changes in fair value
previously recognized directly in owners’ equity (in the case where the financial asset being transferred is a
financial asset measured at fair value through other comprehensive income (debt instruments)).Where the partial transfer of a financial asset meets the criteria for derecognition the total carrying amount
of the transferred financial asset shall be allocated between the derecognized portion and the portion that is not
derecognized based on their respective relative fair values and the difference between the following two
amounts shall be recognized in profit or loss for the current period:
(1) The carrying amount of the derecognized portion;
(2) The sum of the consideration for the derecognized portion and the amount of the cumulative changes in
fair value previously recognized directly in owners’ equity attributable to the derecognized portion (in the case
where the financial asset being transferred is a financial asset measured at fair value through other
comprehensive income (debt instruments)).Where the transfer of a financial asset does not meet the criteria for derecognition the financial asset shall
continue to be recognized and the consideration received shall be recognized as a financial liability.Derecognition of Financial Liabilities
Where the present obligation of a financial liability has been discharged in whole or in part the financial
liability or a portion thereof shall be derecognized; where the Company enters into an agreement with a creditor
to replace an existing financial liability by assuming a new financial liability and the contractual terms of the
new financial liability are substantively different from those of the existing financial liability the existing
financial liability shall be derecognized and the new financial liability shall be simultaneously recognized.Where a substantive modification is made to all or part of the contractual terms of an existing financial
liability the existing financial liability or a portion thereof shall be derecognized and simultaneously the
financial liability with modified terms shall be recognized as a new financial liability.Upon full or partial derecognition of a financial liability the difference between the carrying amount of the
derecognized portion of the financial liability and the consideration paid (including non-cash assets transferred
out or new financial liabilities assumed) shall be recognized in profit or loss for the current period.Where the Company repurchases a portion of a financial liability on the repurchase date the total carrying
amount of the financial liability shall be allocated between the portion that continues to be recognized and the
portion that is derecognized based on their respective relative fair values. The difference between the carrying
amount allocated to the derecognized portion and the consideration paid (including non-cash assets transferred
out or new financial liabilities assumed) shall be recognized in profit or loss for the current period.Methods for Determining the Fair Value of Financial Assets and Financial Liabilities
For financial instruments with an active market the fair value shall be determined by the quoted prices in
the active market. For financial instruments without an active market the fair value shall be determined using
valuation techniques. In performing valuations the Company shall adopt valuation techniques that are
applicable under current circumstances and are supported by sufficient available data and other information
shall select inputs consistent with the characteristics of the assets or liabilities that market participants would
consider in transactions involving the relevant assets or liabilities and shall prioritize the use of relevant
observable inputs. Unobservable inputs shall be used only where relevant observable inputs are unavailable or it
is impracticable to obtain them.Impairment Testing Methods and Accounting Treatment for Financial Instruments
The Company shall perform impairment accounting on the basis of expected credit losses (ECL) for
financial assets measured at amortized cost financial assets measured at fair value through other comprehensive
income (debt instruments) financial guarantee contracts and other applicable instruments.The Company considers reasonable and reliable information about past events current situation and
forecast of the future economic situation weighs the risk of default calculates the probability weighted amount
of the present value of the difference between the cash flow receivable from the contract and the cash flow
expected to be received and recognizes the expected credit loss.For receivables and contract assets arising from transactions within the scope of “Accounting Standards forBusiness Enterprises No. 14 — Revenue” (ASBE 14) regardless of whether they contain a significant financing
component the Company shall always measure the loss allowances at an amount equal to lifetime expected
credit losses.For lease receivables arising from transactions within the scope of “Accounting Standards for BusinessEnterprises No. 21 — Leases” (ASBE 21) the Company has elected to always measure the loss allowances at
an amount equal to lifetime expected credit losses.For other financial instruments the Company shall assess on each balance sheet date the changes in the
credit risk of the relevant financial instruments since initial recognition.The Company compares the risk of default of financial instruments on the balance sheet date with the risk
of default on the initial recognition date so as to determine the relative change in the default risk of financial
instruments in the expected duration and evaluate whether the credit risk of financial instruments has increased
significantly since the initial recognition. Generally where a financial instrument is overdue for more than 30
days the Company shall consider that the credit risk of such financial instrument has increased significantly
since initial recognition unless there is conclusive evidence demonstrating that the credit risk of such financial
instrument has not increased significantly since initial recognition.Where the credit risk of a financial instrument is low as of the balance sheet date the Company shall
consider that the credit risk of such financial instrument has not increased significantly since initial recognition.Where the credit risk of a financial instrument has increased significantly since initial recognition the
Company shall measure the loss allowance at an amount equal to the lifetime expected credit losses of such
financial instrument; where the credit risk of such financial instrument has not increased significantly since
initial recognition the Company shall measure the loss allowance at an amount equal to the 12-month expected
credit losses of such financial instrument. The resulting increase or reversal of the loss allowance shall be
recognized as an impairment loss or gain in profit or loss for the current period. For financial assets measured at
fair value through other comprehensive income (debt instruments) the loss allowances shall be recognized in
other comprehensive income and impairment losses or gains shall be recognized in profit or loss for the current
period without reducing the carrying amount of such financial assets as presented in the balance sheet.Where there is objective evidence indicating that a certain receivable has been subject to credit impairment
the Company shall make a provision for impairment on an individual basis for such receivable.Other than the aforementioned receivables for which provision for bad debts has been made on an
individual basis the Company shall classify the remaining financial instruments into various portfolios based on
their credit risk characteristics and shall determine the expected credit losses on a portfolio basis. The portfolio
categories and the basis for determining the ECL provision for the Company’s notes receivable accounts
receivable receivables financing other receivables contract assets long-term receivables etc. are as follows:
Item Portfolio Categories
Notes receivable Bank acceptance notes commercial acceptance notes
Accounts receivable Aging portfolio
Contract assets Aging portfolio
Portfolio of guarantee deposits security deposits and
Other receivables
petty cash; aging portfolio
Receivables from installment sales of goods; other
Long-term receivables
receivables
The Company calculates the expected credit loss of the notes receivable and contract assets divided into
portfolios by referring to the historical credit loss experience combining the current situation and the forecast of
the future economic situation and based on the default risk exposure and the expected credit loss rate for the
whole duration.For accounts receivable divided into portfolios the Company prepares a comparison table of account
receivable aging/overdue days and expected credit loss rate for the whole duration with a reference to historical
credit loss experience and in combination with the current situation and forecast of the future economic
situation so as to calculate the expected credit loss. The aging of accounts receivable is calculated from the date
of recognition and the number of days overdue from the credit expiration date.For other receivables divided into portfolios the Company calculates the expected credit loss through
default risk exposure and expected credit loss rate in the next 12 months or the whole duration. The aging of
other receivables divided into portfolios by aging is calculated from the date of recognition.For long-term receivables classified into portfolios with respect to receivables from installment sales of
goods the Company calculates expected credit losses by reference to historical credit loss experience in
combination with current conditions and forecasts of future economic conditions through the default risk
exposure and the lifetime expected credit loss rate.The Company calculates the expected credit loss of other receivables and long-term receivables divided
into portfolios other than receivables from sales of goods by installments according to the default risk exposure
and the expected credit loss rate in the next 12 months or the whole duration.For debt investments and other debt investments the Company calculates expected credit losses according
to the nature of the investments by various types of counterparties and risk exposures through default risk
exposures and the 12-month or lifetime expected credit loss rates.
12. Notes Receivable
Refer to 11 “Financial Instruments” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
13. Accounts Receivable
Refer to 11 “Financial Instruments” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
14. Receivables Financing
Refer to 11 “Financial Instruments” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
15. Other Receivables
Methods for Determining Expected Credit Losses of Other Receivables and Accounting Treatment
Refer to 11 “Financial Instruments” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
16. Contract Assets
Refer to 11 “Financial Instruments” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
17. Inventories
Classification and Cost of Inventories
Inventories are classified as: raw materials self-produced semi-finished goods and work in progress
finished goods in stock turnover materials etc.Inventories are initially measured at cost. Inventory costs include purchase costs processing costs and
other expenditures incurred to bring the inventories to their current location and condition.Valuation Method for Inventories Issued
The Company’s inventories are accounted for at the planned cost when acquired. The difference between
planned costs and actual costs is accounted for through the cost variance account and the cost variances
attributable to inventories issued are carried forward periodically to adjust planned costs to actual costs.Inventory system: The perpetual inventory system is adopted.Amortization Method for Low-Value Consumables and Packaging Materials
(1) Low-value consumables are amortized using the immediate write-off method;
(2) Packaging materials are amortized using the immediate write-off method.
Recognition Criteria and Provision Method for Inventory Impairment
On the balance sheet date inventories shall be measured at the lower of cost and net realizable value.Where the cost of inventories exceeds their net realizable value a provision for decline in value of inventories
shall be recognized. Net realizable value refers to the estimated selling price in the ordinary course of business
less the estimated costs to completion the estimated selling expenses and the related taxes and surcharges.For merchandise inventories directly held for sale such as finished products commodities in stock and
materials held for sale in the normal course of production and operations the net realizable value shall be
determined as the estimated selling price less the estimated selling expenses and related taxes and surcharges.For material inventories that require further processing in the normal course of production and operations the
net realizable value shall be determined as the estimated selling price of the finished products to be produced
less the estimated costs to completion the estimated selling expenses and the related taxes and surcharges. For
inventories held for the purpose of fulfilling sales contracts or service contracts the net realizable value shall be
calculated based on the contract price; where the quantity of inventories held exceeds the quantity stipulated in
the sales contract the net realizable value of the excess inventories shall be calculated based on the prevailing
selling price.The Company makes provision for inventory depreciation reserves on an individual inventory item basis.For inventories of large quantities and low unit prices the provision for decline in value of inventories shall be
made by inventory category.After the provision for decline in value of inventories has been recognized where the factors that
previously caused the write-down of inventory values no longer exist such that the net realizable value of the
inventories exceeds the carrying amount the provision shall be reversed to the extent of the amount of the
provision originally recognized and the amount reversed shall be recognized in profit or loss for the current
period.
18. Long-term Receivables
Refer to 11 “Financial Instruments” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
19. Long-Term Equity Investments
(1) Criteria for Determining Joint Control and Significant Influence
Joint control refers to the control over certain arrangement under related agreements and related activities
of the arrangement can only be determined with the unanimous consent of the parties sharing the control. Where
the Company together with other venturers jointly controls an investee and has rights to the net assets of the
investee the investee shall be classified as a joint venture of the Company.Significant influence refers to the power to participate in the financial and operating policy decisions of an
investee but does not constitute control over or joint control of the formulation of such policies. Where the
Company is able to exert significant influence over an investee the investee shall be classified as an associate
of the Company.
(2) Determination of Initial Investment Cost
* Long-Term Equity Investments Arising from Business Combinations
For a long-term equity investment in a subsidiary arising from a business combination under common
control the initial investment cost shall be determined as the Company’s share of the carrying amount of the
merged party’s owners’ equity as stated in the consolidated financial statements of the ultimate controlling party
on the combination date. The difference between the initial investment cost of the long-term equity investment
and the carrying amount of the consideration paid shall be adjusted against the share premium under capital
reserves; where the share premium under capital reserves is insufficient to offset the difference the retained
earnings shall be adjusted accordingly. Where the Company is able to exercise control over an investee under
common control due to reasons such as additional investment the difference between the initial investment cost
of the long-term equity investment determined in accordance with the aforementioned principles and the sum of
the carrying amount of the long-term equity investment prior to the combination plus the carrying amount of the
newly paid consideration for the further acquisition of shares on the combination date shall be adjusted against
the share premium. Where the share premium is insufficient for such offset the retained earnings shall be
adjusted accordingly.For a long-term equity investment in a subsidiary arising from a business combination not under common
control the initial investment cost shall be the cost of combination determined on the acquisition date. Where
the Company is able to exercise control over an investee not under common control due to reasons such as
additional investment the sum of the carrying amount of the previously held equity investment and the cost of
the new investment shall be used as the initial investment cost.* Long-Term Equity Investments Acquired through Means Other than Business Combinations
For a long-term equity investment acquired through cash payment the initial investment cost shall be the
actual purchase consideration paid.For a long-term equity investment acquired through the issuance of equity securities the initial investment
cost shall be the fair value of the equity securities issued.
(3) Subsequent measurement and recognition of profit or loss
* Long-Term Equity Investments Accounted for Using the Cost Method
The Company’s long-term equity investments in subsidiaries shall be accounted for using the cost method
unless the investments meet the criteria for classification as held for sale. Except for cash dividends or profits
declared but not yet distributed that are included in the actual price or consideration paid at the time of
acquiring the investment the Company shall recognize investment income for the current period based on its
share of the cash dividends or profits declared for distribution by the investee.* Long-Term Equity Investments Accounted for Using the Equity Method
Long-term equity investments in associates and joint ventures shall be accounted for using the equity
method. Where the initial investment cost exceeds the Company’s share of the fair value of the investee’s
identifiable net assets at the time of investment the initial investment cost of the long-term equity investment
shall not be adjusted; where the initial investment cost is less than the Company’s share of the fair value of the
investee’s identifiable net assets at the time of investment the difference shall be recognized in profit or loss for
the current period and the cost of the long-term equity investment shall be adjusted accordingly.The Company shall recognize investment income and other comprehensive income respectively based on
its entitled or attributable share of the net profit or loss realized and other comprehensive income of the investee
and adjust the carrying amount of the long-term equity investment accordingly; the Company shall calculate its
entitled share based on the profits or cash dividends declared for distribution by the investee and reduce the
carrying amount of the long-term equity investment correspondingly; for other changes in the investee’s owners’
equity other than net profit or loss other comprehensive income and profit distribution (hereinafter referred toas”other changes in owners’ equity”) the Company shall adjust the carrying amount of the long-term equity
investment and recognize such changes in owners’ equity.When recognizing its entitled share of the investee’s net profit or loss other comprehensive income and
other changes in owners’ equity the recognition shall be made based on the fair value of the investee’s
identifiable net assets at the time of obtaining the investment and after making adjustments to the investee’s net
profit and other comprehensive income etc. in accordance with the Company’s accounting policies and
accounting periods.Unrealized gains or losses on internal transactions between the Company and its associates or joint
ventures shall be offset to the extent of the Company’s proportionate share and investment income shall be
recognized on that basis except where the assets invested or sold constitute a business. Unrealized losses on
internal transactions with the investee that constitute asset impairment losses shall be recognized in full.For net losses incurred by a joint venture or an associate the Company shall recognize such losses to the
extent of reducing the carrying amount of the long-term equity investment and other long-term interests that in
substance constitute a net investment in the joint venture or associate to zero except where the Company has an
obligation to assume additional losses. Where the joint venture or associate subsequently realizes net profits the
Company shall resume recognizing its share of income after the income sharing amount has offset the
previously unrecognized loss sharing amount.* Disposal of Long-Term Equity Investments
Upon the disposal of a long-term equity investment the difference between its carrying amount and the
actual consideration received shall be recognized in profit or loss for the current period.Where a long-term equity investment accounted for using the equity method is partially disposed of and
the remaining equity interest continues to be accounted for using the equity method the other comprehensive
income previously recognized under the equity method shall be transferred on a pro-rata basis on the same basis
as would apply if the investee had directly disposed of the related assets or liabilities and other changes in
owners’ equity shall be transferred on a pro-rata basis to profit or loss for the current period.Where joint control or significant influence over the investee is lost due to the disposal of equity
investments or other reasons the other comprehensive income previously recognized in respect of the original
equity investment accounted for using the equity method shall be accounted for on the same basis as would
apply if the investee had directly disposed of the related assets or liabilities upon the discontinuation of the
equity method and other changes in owners’ equity shall be transferred in full to profit or loss for the current
period upon the discontinuation of the equity method.Where control over an investee is lost due to reasons such as the disposal of a portion of the equity
investments in preparing the separate financial statements: Where the remaining equity interest is able to
exercise joint control or exert significant influence over the investee it shall be reclassified for accounting
under the equity method and such remaining equity interest shall be adjusted as if it had been accounted for
under the equity method from the date of its initial acquisition. The other comprehensive income recognized
prior to obtaining control over the investee shall be transferred proportionately on the same basis as would
apply if the investee had directly disposed of the related assets or liabilities and other changes in owners’ equity
recognized as a result of applying the equity method shall be transferred proportionately to profit or loss for the
current period. Where the remaining equity interest is unable to exercise joint control or exert significant
influence over the investee it shall be reclassified as a financial asset and the difference between the fair value
and the carrying amount as at the date of loss of control shall be recognized in profit or loss for the current
period; all other comprehensive income and other changes in owners’ equity recognized prior to obtaining
control over the investee shall be transferred in full.Where the equity investment in a subsidiary is disposed of in stages through multiple transactions until
control is lost and such transactions constitute a package deal the various transactions shall be accounted for as
a single transaction for the disposal of the equity investment in the subsidiary and the loss of control; the
difference between the consideration received from each disposal prior to the loss of control and the carrying
amount of the long-term equity investment corresponding to the equity disposed of shall first be recognized in
the separate financial statements as other comprehensive income and then transferred in aggregate to profit or
loss for the period in which control is lost. Where the transactions do not constitute a package deal each
transaction shall be accounted for separately.
20. Investment Properties
Measurement mode of investment properties: cost method
Depreciation or amortization method
Investment property refers to property held to earn rentals or for capital appreciation or both including
land use rights that have been leased out land use rights held for transfer upon appreciation and buildings that
have been leased out (including buildings self-constructed or developed for the purpose of being leased out
upon completion as well as buildings under construction or development that are intended to be leased out in
the future).Subsequent expenditures related to investment property shall be included in the cost of the investment
property when it is probable that the associated economic benefits will flow to the Company and the cost can be
measured reliably; otherwise such expenditures shall be recognized in profit or loss for the current period as
incurred.The Company adopts the cost model to measure its existing investment property. For investment property
measured using the cost model—buildings held for leasing out the same depreciation policy as that applied to
the Company’s fixed assets shall be adopted; for land use rights held for leasing out the same amortization
policy as that applied to intangible assets shall be applied.
21. Fixed Assets
(1) Recognition conditions
Recognition and Initial Measurement of Fixed Assets
Fixed assets refer to tangible assets held for the production of goods the rendering of services leasing or
for operational and administrative purposes with a useful life exceeding one accounting year. A fixed asset
shall be recognized when the following conditions are simultaneously met:
(1) It is probable that the economic benefits associated with the fixed asset will flow to the Company;
(2) The cost of the fixed asset can be measured reliably.
Fixed assets shall be initially measured at cost (taking into account the impact of estimated
decommissioning and restoration costs).Subsequent expenditures related to a fixed asset shall be included in the cost of the fixed asset when it is
probable that the associated economic benefits will flow to the Company and the cost can be measured reliably;
the carrying amount of the replaced part shall be derecognized. All other subsequent expenditures shall be
recognized in profit or loss for the current period as incurred.
(2) Depreciation method
Category DepreciationMethod Depreciation Period Residual Rate
Annual
Depreciation Rate
Houses and Straight-line
Buildings method 20 3-5 4.85-4.75
Machinery Straight-line
equipment method 10 0-3 10.00-9.70
Transportation Straight-line
equipment method 4-10 years 0-5 25.00-9.50
Electronic Straight-line
equipment method 3 0-5 33.33-31.67
Office equipment Straight-linemethod 5 3-5 19.40-19.00
Others Straight-linemethod 5 0-5 20.00-19.00
Depreciation of fixed assets shall be calculated on a category basis using the straight-line method and the
depreciation rate shall be determined based on the category of fixed assets the estimated useful life and the
estimated residual value ratio. For fixed assets for which impairment provisions have been made the
depreciation amounts in future periods shall be determined based on the carrying amount net of the impairment
provisions and the remaining useful life. Where the individual components of a fixed asset have different useful
lives or provide economic benefits to the Company in different ways different depreciation rates or
depreciation methods shall be adopted and depreciation shall be calculated separately for each component.Disposal of Fixed Assets
If a fixed asset is disposed of or if no economic benefit will be obtained from the use or disposal the
recognition of such fixed asset is terminated. The disposal income from the sale transfer retirement or damage
of fixed assets shall be included in current profits and losses after deducting its book value and relevant taxes.
22. Construction in Progress
Construction in progress shall be measured at actual costs incurred. Actual costs include construction costs
installation costs borrowing costs eligible for capitalization and other necessary expenditures incurred to bring
the construction in progress to its intended state of use. Construction in progress shall be transferred to fixed
assets when it reaches its intended state of use and depreciation shall commence from the following month.
23. Borrowing Costs
(1) Recognition principles for capitalization of borrowing costs
Borrowing costs incurred by the Company that are directly attributable to the acquisition construction or
production of a qualifying asset shall be capitalized and included in the cost of the relevant assets; other
borrowing costs shall be recognized as expenses when incurred and charged to profit or loss for the current
period.Qualifying assets refer to assets — such as fixed assets investment property and inventories — that
require a substantial period of time for acquisition construction or production activities to reach their intended
state of use or sale.
(2) Capitalization period of borrowing costs
The capitalization period refers to the period from the commencement of capitalization of borrowing costs
to the cessation of capitalization excluding any period during which capitalization is suspended.Capitalization of borrowing costs shall commence when the following conditions are simultaneously met:
* Expenditures on the asset have been incurred which include expenditures in the form of cash payments
transfers of non-cash assets or the assumption of interest-bearing debt for the acquisition construction or
production of a qualifying asset;
* Borrowing costs have been incurred;
* Acquisition construction or production activities that are necessary to bring the asset to its intended
state of use or sale have commenced.Capitalization of borrowing costs shall cease when the qualifying asset under acquisition construction or
production reaches its intended state of use or sale.Suspension of Capitalization
Where the acquisition construction or production of a qualifying asset is subject to an abnormal
interruption and the interruption lasts for a continuous period of more than 3 months capitalization of
borrowing costs shall be suspended; however where the interruption is a necessary procedure for the qualifying
asset under acquisition construction or production to reach its intended state of use or sale capitalization of
borrowing costs shall continue. Borrowing costs incurred during the interruption period shall be recognized in
profit or loss for the current period until the acquisition construction or production activities resume after
which capitalization of borrowing costs shall continue.
(3) Calculation Methods for the Capitalization Rate and Capitalized Amount of Borrowing Costs
For specific borrowings obtained for the acquisition construction or production of a qualifying asset the
capitalized amount of borrowing costs shall be determined as the actual borrowing costs incurred on the specific
borrowings during the current period less any interest income earned on unused borrowing funds deposited in
banks or any investment income earned from temporary investments of such funds.For general borrowings utilized for the acquisition construction or production of a qualifying asset the
amount of borrowing costs from general borrowings to be capitalized shall be determined by multiplying the
weighted average amount of cumulative asset expenditures in excess of the specific borrowings by the
capitalization rate of the general borrowings utilized. The capitalization rate shall be determined based on the
weighted average actual interest rate of the general borrowings.During the capitalization period exchange differences arising from the principal and interest of specific
foreign currency borrowings shall be capitalized and included in the cost of the qualifying asset. Exchange
differences arising from the principal and interest of foreign currency borrowings other than specific foreign
currency borrowings shall be recognized in profit or loss for the current period.
24. Intangible Assets
(1) Service life and its determination basis estimate amortization method or review procedure
Valuation Method for Intangible Assets
The Company shall initially measure intangible assets at cost upon acquisition;
The cost of externally acquired intangible assets includes the purchase price relevant taxes and surcharges
and other expenditures directly attributable to bringing the asset to its intended use.Subsequent Measurement
Upon acquisition of an intangible asset its useful life shall be analyzed and determined.Intangible assets with finite useful lives shall be amortized over the period during which they are expected
to generate economic benefits for the Company; where it is not possible to foresee the period during which an
intangible asset will generate economic benefits for the Company it shall be classified as an intangible asset
with an indefinite useful life and shall not be amortized.Estimation of Useful Lives of Intangible Assets with Finite Useful Lives
Item Estimated Useful Life Amortization Method
Land use right 50 Straight-line method
Software 2-10 years Straight-line method
Non-patented technology 5-10 years Straight-line method
(2) Scope of aggregation of expenditures on research and development and related accounting
treatment methods
Scope of Collection of Research and Development Expenditures
The Company’s research and development expenditures are directly related to the Company’s research and
development activities including research and development labor costs test expenses depreciation costs
design fees and trial production fees.Specific Criteria for Distinguishing Between the Research Phase and the Development Phase
Expenditures on the Company’s internal research and development projects shall be classified into
research phase expenditures and development phase expenditures.Specific Conditions for Capitalization of Development Phase Expenditures
The expenditures at the research stage are included in current profits and losses when incurred.Expenditures in the development phase that simultaneously meet the following conditions shall be recognized
as intangible assets; development phase expenditures that fail to meet the following conditions shall be charged
to profit or loss for the current period:
* It is technically feasible to complete the intangible asset so that it will be available for use or sale;
* The Company has the intention to complete the intangible asset and to use or sell it;
* The way in which the intangible asset will generate economic benefits can be demonstrated —
including evidence that a market exists for the products produced using the intangible asset or for the intangible
asset itself; where the intangible asset is to be used internally its usefulness can be demonstrated;
* There are adequate technical financial and other resources available to support the completion of the
development of the intangible asset and the Company has the ability to use or sell the intangible asset;
* The expenditures attributable to the development phase of the intangible asset can be reliably measured.Where it is not possible to distinguish between research phase expenditures and development phase
expenditures all research and development expenditures incurred shall be charged to profit or loss for the
current period.The R&D projects of the Company enter the development stage after project approval by meeting the
above conditions and passing the technical feasibility and economic feasibility study.The capitalized expenditures at the development stage are presented as development expenditures on the
balance sheet and are transferred into intangible assets from the date when the project realizes its intended use.The capitalization conditions of specific research and development projects are as follows: The Company’s
research and development project ends with product planning and the division point of the research and
development stages lies in the fact that the overall plan of the development project is prepared and adopted
through deliberation and decision-making on the product project review meeting (that is project initiation).Expenses incurred during the planning stage prior to project commencement shall be directly charged to
profit or loss for the current period and expenses incurred in the stage following project commencement shall
be included in development phase expenditures.
25.Impairment of Long-term Assets
Where there are indications of impairment as at the balance sheet date for long-term assets such as long-
term equity investments investment property measured using the cost model fixed assets construction in
progress right-of-use assets and intangible assets with finite useful lives an impairment test shall be performed.Where the results of the impairment test indicate that the recoverable amount of an asset is lower than its
carrying amount an impairment provision shall be recognized for the difference and charged to impairment
losses. The recoverable amount shall be the higher of the asset’s fair value less costs of disposal and the present
value of the asset’s estimated future cash flows. Impairment provisions shall be calculated and recognized on an
individual asset basis. Where it is difficult to estimate the recoverable amount of an individual asset the
recoverable amount shall be determined at the level of the asset group to which the asset belongs. An asset
group is the smallest group of assets that is capable of generating cash inflows independently.For goodwill arising from business combinations intangible assets with indefinite useful lives and
intangible assets that have not yet reached a state ready for use an impairment test shall be performed at least at
the end of each year regardless of whether there is any indication of impairment.The Company shall perform impairment testing on goodwill. The carrying amount of goodwill arising
from a business combination shall be allocated from the acquisition date to the relevant asset groups on a
reasonable basis; where it is difficult to allocate goodwill to the relevant asset groups it shall be allocated to the
relevant groups of asset groups. The relevant asset group or group of asset groups refers to an asset group or
group of asset groups that is expected to benefit from the synergies of the business combination.When performing an impairment test on the relevant asset group or group of asset groups containing
goodwill where there are indications of impairment in the asset group or group of asset groups related to
goodwill an impairment test shall first be performed on the asset group or group of asset groups excluding
goodwill. The recoverable amount shall be calculated and compared with the relevant carrying amount and the
corresponding impairment loss shall be recognized accordingly. Subsequently an impairment test shall be
performed on the asset group or group of asset groups containing goodwill by comparing its carrying amount
with its recoverable amount. Where the recoverable amount is lower than the carrying amount the impairment
loss shall first be applied to reduce the carrying amount of goodwill allocated to the asset group or group of
asset groups and then shall be allocated pro rata to reduce the carrying amounts of the other individual assets
within the asset group or group of asset groups based on their respective proportionate carrying amounts.Once the above asset impairment losses are recognized they shall not be reversed in subsequent
accounting periods.
26. Long-term Deferred Expenses
Long-term prepaid expenses refer to various expenses that have been incurred but are to be borne by the
current and subsequent periods with an amortization period of more than one year.
27. Contract Liabilities
The Company presents the contract assets or contract liabilities in the balance sheet according to the
relationship between the performance obligations and the customer’s payment. The Company’s obligation to
transfer goods or render services to a customer for which consideration has been received or is receivable from
the customer shall be presented as a contract liability. Contract assets and contract liabilities under the same
contract shall be presented on a net basis.
28.Employee Compensation
(1) Accounting method of short-term compensation
During the accounting period in which employees render services to the Company the Company shall
recognize the short-term employee benefits actually incurred as a liability and charge such liability to profit or
loss for the current period or to the cost of the relevant asset.For social insurance premiums and housing provident fund contributions paid by the Company on behalf
of employees as well as labor union funds and employee education funds accrued in accordance with
regulations the corresponding amount of employee benefits shall be determined based on the prescribed accrual
basis and accrual ratios during the accounting period in which the employees render services to the Company.Employee welfare expenses incurred by the Company shall be charged to profit or loss for the current
period or to the cost of the relevant asset based on the actual amount when incurred; non-monetary benefits
shall be measured at fair value.
(2) Accounting method of post-employment benefits
Defined contribution plan
The Company makes basic pension insurance and unemployment insurance contributions for its employees
in accordance with the relevant regulations of the local government. During the accounting period in which
employees render services to the Company the amount payable shall be calculated based on the locally
prescribed contribution base and contribution rate recognized as a liability and charged to profit or loss for the
current period or to the cost of the relevant asset. In addition the Company participates in enterprise annuity
plans approved by the relevant national authorities. The Company contributes to the annuity plans at a certain
percentage of total employee wages and the corresponding expenditures shall be charged to profit or loss for
the current period or to the cost of the relevant asset.Defined benefit plan
The Company shall attribute the benefit obligations arising from defined benefit plans to the periods in
which employees render services in accordance with the formula determined under the projected unit credit
method and shall charge them to profit or loss for the current period or to the cost of the relevant asset.The deficit or surplus arising from the present value of the defined benefit obligations less the fair value of
the defined benefit plan assets shall be recognized as a net defined benefit liability or net defined benefit asset.Where there is a surplus in the defined benefit plan the Company shall measure the net defined benefit asset at
the lower of the surplus and the asset ceiling.All defined benefit obligations including those expected to be settled within twelve months after the end
of the annual reporting period in which the employees render services shall be discounted at market yields as
at the balance sheet date on government bonds or on high-quality corporate bonds traded in an active market
whose currency and term are consistent with those of the defined benefit obligations.Service costs arising from defined benefit plans and the net interest on the net defined benefit liability or
net defined benefit asset shall be charged to profit or loss for the current period or to the cost of the relevant
asset; changes arising from the remeasurement of the net defined benefit liability or net defined benefit asset
shall be recognized in other comprehensive income and shall not be reclassified to profit or loss in subsequent
accounting periods. Upon termination of the original defined benefit plan the amounts previously recognized in
other comprehensive income shall be transferred in full to retained earnings within equity.Upon settlement of the defined benefit plan a settlement gain or loss shall be recognized as the difference
between the present value of the defined benefit obligation as determined on the settlement date and the
settlement price.
(3) Accounting method of termination benefits
When the Company provides termination benefits to employees the employee benefit liabilities arising
from such termination benefits shall be recognized at the earlier of the following two dates and charged to profit
or loss for the current period: (1) when the Company can no longer unilaterally withdraw the termination
benefits offered under a plan to terminate the employment relationship or a redundancy proposal; (2) when the
Company recognizes the costs or expenses related to a restructuring that involves the payment of termination
benefits.
(4) Accounting method of other long-term employee benefits
Other long-term employee benefits provided by the Company to its employees that satisfy the conditions
for classification as a defined contribution plan shall be accounted for in accordance with the above provisions
relating to defined contribution plans. Those that satisfy the conditions for classification as a defined benefit
plan shall be accounted for in accordance with the above provisions relating to defined benefit plans; however
the “changes arising from the remeasurement of the net defined benefit liability or net defined benefit asset”
component of the related employee benefit costs shall be charged to profit or loss for the current period or to the
cost of the relevant asset.
29. Provisions
The Company shall recognize a provision when an obligation related to a contingency simultaneously
meets all of the following conditions:
* The obligation is a present obligation assumed by the Company;
* The fulfillment of the obligation is likely to result in an outflow of economic benefits from the
Company;
* The amount of the obligation can be reliably measured.A provision shall be initially measured at the best estimate of the expenditure required to settle the related
present obligation.In determining the best estimate the Company shall take into consideration factors such as the risks
uncertainties and the time value of money associated with the contingency. Where the impact of the time value
of money is material the best estimate shall be determined by discounting the relevant future cash outflows.Where the required expenditure falls within a continuous range and each outcome within such range is
equally likely to occur the best estimate shall be determined as the midpoint of that range; in other cases the
best estimate shall be determined as follows:
·Where the contingency involves a single item the best estimate shall be determined at the most likely
outcome.·Where the contingency involves multiple items the best estimate shall be calculated based on all possible
outcomes and their associated probabilities.Where some or all of the expenditure required to settle a provision is expected to be reimbursed by a third
party the reimbursement shall be separately recognized as an asset when it is virtually certain that the
reimbursement will be received provided that the amount so recognized shall not exceed the carrying amount
of the provision.At each balance sheet date the Company shall review the carrying amount of each provision. Where there
is conclusive evidence that such carrying amount does not reflect the current best estimate the carrying amount
shall be adjusted to the current best estimate.
30.Share-based Payment
A share-based payment of the Company is a transaction in which the Company grants equity instruments
or incurs liabilities determined on the basis of equity instruments in exchange for services rendered by
employees or other parties. The Company’s share-based payments are classified into equity-settled share-based
payments and cash-settled share-based payments.Equity-Settled Share-Based Payments and Equity Instruments
Where equity-settled share-based payments are made in exchange for services rendered by employees
such payments shall be measured at the fair value of the equity instruments granted to the employees. For share-
based payment transactions that vest immediately upon grant the fair value of the equity instruments shall be
charged to the relevant costs or expenses on the grant date with a corresponding increase in capital reserve. For
share-based payment transactions that vest only upon completion of services during the vesting period or upon
the achievement of specified performance conditions at each balance sheet date during the vesting period the
Company shall based on the best estimate of the number of equity instruments expected to vest and at the
grant-date fair value charge the services received during the current period to the relevant costs or expenses
with a corresponding increase in capital reserve.Where the terms of an equity-settled share-based payment are modified the services received shall be
recognized at a minimum as if the terms had not been modified. In addition any modification that increases the
fair value of the equity instruments granted or any change that is favorable to the employees on the
modification date shall be recognized as an increase in the services received.Where equity instruments granted are canceled during the vesting period the Company shall treat such
cancellation as an acceleration of vesting and shall immediately charge to profit or loss for the current period
the amount that would otherwise have been recognized over the remaining vesting period with a corresponding
increase in capital reserve. However where new equity instruments are granted and are identified on the grant
date of such new equity instruments as replacements for the canceled equity instruments the replacement
equity instruments so granted shall be accounted for in the same manner as a modification of the terms and
conditions of the original equity instruments.Cash-Settled Share-Based Payments and Equity Instruments
Share-based payments settled by cash are measured at the fair value of liabilities recognized based on
shares or other equity instruments assumed by the Company. For share-based payment transactions that are
vested immediately upon grant the Company recognizes the fair value of the liability incurred in the relevant
cost or expense on the grant date with a corresponding increase in liabilities. For share-based payment
transactions that vest only upon completion of services during the vesting period or upon the achievement of
specified performance conditions at each balance sheet date during the vesting period the Company shall
based on the best estimate of the vesting outcome and at the fair value of the liability assumed by the Company
charge the services received during the current period to the relevant costs or expenses with a corresponding
increase in liabilities. On each balance sheet date and the settlement date prior to the settlement of the relevant
liabilities the fair value of the liabilities shall be re-measured with its changes included in the current profits
and losses.Where the Company modifies the terms and conditions of a cash-settled share-based payment agreement
so as to reclassify it as an equity-settled share-based payment on the modification date (whether such
modification occurs during or after the vesting period) the Company shall measure the equity-settled share-
based payment at the fair value of the equity instruments granted on that date recognize the services already
received in capital reserve and simultaneously derecognize the liability recognized for the cash-settled share-
based payment as at the modification date with any difference between the two amounts charged to profit or
loss for the current period. Where the modification results in an extension or shortening of the vesting period
the Company shall apply the accounting treatment based on the modified vesting period.31. Income
Accounting policies adopted for recognition and measurement of income disclosed by business type.The Company shall recognize revenue when it has satisfied its performance obligations under the contract
i.e. when the customer obtains control of the relevant goods or services. Obtaining control of the relevant goods
or services refers to the ability to direct the use of the goods or services and obtain substantially all of the
remaining economic benefits from them.Where a contract contains two or more performance obligations the Company shall at contract inception
allocate the transaction price to each separate performance obligation on a relative stand-alone selling price
basis for the goods or services promised under each such performance obligation. The Company shall measure
revenue at the transaction price allocated to each separate performance obligation.The transaction price refers to the amount of consideration to which the Company expects to be entitled in
exchange for transferring goods or services to the customer excluding amounts collected on behalf of third
parties and amounts expected to be refunded to the customer. The Company shall determine the transaction
price based on the contract terms and its past customary practices taking into account the effects of factors such
as variable consideration significant financing components in the contract non-cash consideration and
consideration payable to the customer. The Company shall include variable consideration in the transaction
price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue
recognized will not occur when the uncertainty associated with the variable consideration is subsequently
resolved. Where a contract contains a significant financing component the Company shall determine the
transaction price at the amount that would be payable if the customer had paid cash at the time of obtaining
control of the goods or services and shall amortize the difference between such transaction price and the
contract consideration over the contract period using the effective interest rate method.A performance obligation is satisfied over time if it meets any one of the following criteria. Otherwise it is
satisfied at a point in time:
* The customer simultaneously receives and consumes the benefits provided by the Company’s
performance as the Company performs.* The customer controls the asset as it is created or enhanced by the Company’s performance;
* The Company’s performance does not create an asset with an alternative use to the Company and the
Company has an enforceable right to payment for performance completed to date.For a performance obligation satisfied over time the Company shall recognize revenue over that period by
measuring the progress towards complete satisfaction of that performance obligation except where such
progress cannot be reasonably determined. The Company shall determine the progress of satisfaction by using
either the output method or the input method taking into consideration the nature of the goods or services.Where the progress of satisfaction cannot be reasonably determined but the costs incurred are expected to be
recoverable the Company shall recognize revenue only to the extent of the costs incurred until such time as the
progress of satisfaction can be reasonably determined.For performance obligations performed at a certain time point the Company shall confirm the income at
the time point when the customer gains control rights of the relevant goods or services. In determining whether
the customer has obtained control of the goods or services the Company shall consider the following indicators:
* The Company has a present right to payment for the goods or services i.e. the customer has a present
obligation to pay for the goods or services.* The Company has transferred legal title to the asset to the customer i.e. the customer has legal title to the
asset;
* The Company has transferred physical possession of the asset to the customer i.e. the customer has
physical possession of the asset;
* The Company has transferred the significant risks and rewards of ownership of the asset to the customer
i.e. the customer has assumed the significant risks and rewards of ownership of the asset.* The customer has accepted the asset or service; etc.The Company shall determine whether it acts as a principal or an agent in a transaction based on whether it
controls the goods or services before they are transferred to the customer. Where the Company controls the
specified goods or services before they are transferred to the customer the Company is the principal and shall
recognize revenue in the gross amount of consideration received or receivable; otherwise the Company is an
agent and shall recognize revenue in the amount of any fee or commission to which it expects to be entitled.The specific revenue recognition methods and measurement methods are disclosed by business type.The Company’s specific method for recognizing revenue from sales of vehicles and their accessories is as
follows: When vehicles and their accessories are transported to the agreed delivery location as specified in the
contract and the customer has accepted the goods and obtained control of the goods the Company recognizes
revenue.
32. Contract Cost
Contract costs comprise contract fulfillment costs and contract acquisition costs.Where costs incurred by the Company in fulfilling a contract are not within the scope of other applicable
standards such as those relating to inventories fixed assets or intangible assets and the following conditions
are met the Company shall recognize such costs as an asset (contract fulfillment costs):
*·The costs relate directly to a contract or to an anticipated contract.* The costs generate or enhance resources of the Company that will be used in satisfying performance
obligations in the future;
* The costs are expected to be recovered.Where the incremental costs of obtaining a contract are expected to be recoverable the Company shall
recognize them as an asset (contract acquisition costs).An asset recognized in accordance with the above provisions shall be amortized on a systematic basis
consistent with the transfer to the customer of the goods or services to which the asset relates; however where
the amortization period of contract acquisition costs does not exceed one year the Company shall charge such
costs to profit or loss for the current period when incurred.Where the carrying amount of an asset related to contract costs exceeds the difference between the
following two items the Company shall make an impairment provision for the excess amount and recognize it
as an asset impairment loss:
1. The remaining consideration that the Company expects to receive in exchange for the transfer of goods
or services to which the asset relates;
2. The costs that the Company estimates it will incur in transferring those goods or services.
Where the factors giving rise to impairment in prior periods subsequently change such that the
aforementioned difference exceeds the carrying amount of the asset the Company shall reverse the previously
recognized impairment provision and charge the reversal to profit or loss for the current period provided that
the reversed carrying amount of the asset shall not exceed the carrying amount that would have been determined
on the reversal date had no impairment provision been recognized.
33.Government Subsidies
Type
Government grants refer to monetary assets or non-monetary assets received by the Company from the
government free of charge and are classified into asset-related government grants and income-related
government grants.The government subsidies considered as monetary assets are measured at the amount received or
receivable. The government subsidies considered as non-monetary assets are measured based on the fair value
or the nominal amount of CNY 1 if the fair value cannot be acquired reliably.Asset-related government grants refer to government grants received by the Company for the purpose of
acquiring constructing or otherwise forming long-term assets. Income-related government grants refer to
government grants other than asset-related government grants.Where the government documents do not specifically designate the object of a government grant the
portion of the grant that can form long-term assets and corresponds to the value of such assets shall be classified
as an asset-related government grant and the remainder shall be classified as an income-related government
grant. Where it is difficult to distinguish between the two the government grant shall be classified in its entirety
as an income-related government grant.Timing of Recognition
Government grants shall be recognized when the Company is able to satisfy the conditions attached thereto
and it is virtually certain that the grants will be received.Accounting Treatment
Asset-related government grants shall either be offset against the carrying amount of the related assets or
be recognized as deferred income. Where recognized as deferred income such grants shall be allocated to profit
or loss on a reasonable and systematic basis over the useful life of the related assets (grants related to the
Company’s ordinary course of business shall be recognized in other income; grants not related to the
Company’s ordinary course of business shall be recognized in non-operating income).Income-related government grants intended to compensate the Company for related costs expenses or
losses to be incurred in future periods shall be recognized as deferred income and shall be charged to profit or
loss (grants related to the Company’s ordinary course of business shall be recognized in other income; grants
not related to the Company’s ordinary course of business shall be recognized in non-operating income) or offset
against the related costs expenses or losses in the periods in which such costs expenses or losses are
recognized. Income-related government grants intended to compensate the Company for related costs expenses
or losses already incurred shall be directly recognized in profit or loss for the current period (grants related to
the Company’s ordinary course of business shall be recognized in other income; grants not related to the
Company’s ordinary course of business shall be recognized in non-operating income) or offset against the
related costs expenses or losses.If it is necessary to refund the government subsidies that have been recognized the book value of the
assets which has been offset at the time of initial recognition is adjusted; the book balance of the deferred
income concerned (if any) is offset and the excess is included in the current profits and losses; others are
directly included in the current profits and losses.
34. Deferred Tax Assets and Deferred Tax Liabilities
Income tax includes current income tax and deferred income tax. Except for income tax arising from
business combinations and transactions or events that are directly recognized in owners’ equity (including other
comprehensive income) the Company shall recognize current income tax and deferred tax in profit or loss for
the current period.Deferred tax assets and deferred tax liabilities are recognized based on the differences between the tax
bases of assets and liabilities and their carrying amounts (i.e. temporary differences).Deferred tax assets shall be recognized for deductible temporary differences to the extent that it is probable
that future taxable profit will be available against which the deductible temporary differences can be utilized.The Company shall recognize deferred tax assets for deductible tax losses and tax credits that can be carried
forward to subsequent years to the extent that it is probable that future taxable profit will be available against
which such deductible tax losses and tax credits can be utilized.Deferred tax liabilities shall be recognized for all taxable temporary differences except in the specific
circumstances described below.The specific circumstances in which deferred tax assets or deferred tax liabilities are not recognized
include:
* The initial recognition of goodwill;
* A transaction or event that is not a business combination and at the time of the transaction affects
neither accounting profit nor taxable profit (or deductible tax losses) and for which the initial recognition of the
assets and liabilities does not give rise to equal taxable and deductible temporary differences.Deferred tax liabilities shall be recognized for taxable temporary differences associated with investments
in subsidiaries associates and joint ventures except where the Company is able to control the timing of the
reversal of the temporary differences and it is probable that such temporary differences will not reverse in the
foreseeable future. Deferred tax assets shall be recognized for deductible temporary differences associated with
investments in subsidiaries associates and joint ventures to the extent that it is probable that the temporary
differences will reverse in the foreseeable future and sufficient taxable profit will be available against which
such deductible temporary differences can be utilized.At the balance sheet date deferred tax assets and deferred tax liabilities shall be measured at the tax rates
that are expected to apply to the period when the related assets are recovered or the related liabilities are settled
in accordance with the provisions of tax laws.At the balance sheet date the Company reviews the book value of a deferred income tax asset. Where it is
probable that sufficient taxable profit will not be available to allow the benefit of part or all of the deferred tax
asset to be utilized the carrying amount of the deferred tax asset shall be written down accordingly. Any such
write-down shall be subsequently reversed where it becomes probable that sufficient taxable income will be
available.Where the Company has a legally enforceable right to set off current tax assets against current tax
liabilities and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously
current tax assets and current tax liabilities shall be presented on a net basis.At the balance sheet date deferred tax assets and deferred tax liabilities shall be presented on a net basis
when both of the following conditions are met:
* The taxpaying entity has a legally enforceable right to set off current tax assets against current tax
liabilities;
* The deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities which intend in each future period in
which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered either to
settle current tax assets and liabilities on a net basis or to realize the assets and settle the liabilities
simultaneously.
35. Lease
(1) Accounting treatment methods of lease with the Company as the lessee
A lease is a contract or part of a contract that conveys the right to use an asset (the underlying asset) for a
period of time in exchange for consideration. At the inception of a contract the Company shall assess whether
the contract is or contains a lease. A contract is or contains a lease if the contract conveys the right to control
the use of an identified asset for a period of time in exchange for consideration.Where a contract contains multiple separate lease components the Company shall separate the contract
and account for each lease component separately. Where a contract contains both lease and non-lease
components the lessee and the lessor shall separate the lease components from the non-lease components.The Company as Lessee
Right-of-use assets
At the commencement date the Company shall recognize a right-of-use asset for all leases other than
short-term leases and leases of low-value assets. The right-of-use asset shall be initially measured at cost. The
cost comprises:
the amount of the initial measurement of the lease liability;
lease payments made on or before the lease commencement date from which any lease incentives enjoyed
(if any) needed to be deducted;
any initial direct costs incurred by the Company;
an estimate of costs to be incurred by the Company in dismantling and removing the underlying asset
restoring the site on which the underlying asset is located or restoring the underlying asset to the condition
required by the terms and conditions of the lease less any lease incentives received but excluding costs
attributable to the production of inventories.The Company shall subsequently depreciate the right-of-use asset on a straight-line basis. Where it is
reasonably certain that the Company will obtain ownership of the underlying asset by the end of the lease term
the right-of-use asset shall be depreciated over the remaining useful life of the underlying asset. Otherwise the
right-of-use asset shall be depreciated over the shorter of the lease term and the remaining useful life of the
underlying asset.The Company shall determine whether a right-of-use asset is impaired and shall account for any identified
impairment loss in accordance with the principles set out in Section 25 “Impairment of Long-term Assets”
herein.Lease liabilities
At the commencement date the Company shall recognize a lease liability for all leases other than short-
term leases and leases of low-value assets. The lease liability shall be initially measured at the present value of
the lease payments that are not paid at the commencement date. Lease payments comprise:
Fixed payments (including in-substance fixed payments) less any lease incentives receivable;
Variable lease payments that depend on an index or rate;
Amounts expected to be payable by the Company under residual value guarantees;
The exercise price of a purchase option if the Company is reasonably certain to exercise that option;
Payments of penalties for terminating the lease if the lease term reflects the Company exercising an option
to terminate the lease.The Company shall use the interest rate implicit in the lease as the discount rate. Where the interest rate
implicit in the lease cannot be readily determined the Company shall use its incremental borrowing rate as the
discount rate.The Company shall calculate interest on the lease liability in each period during the lease term at a constant
periodic rate of interest and shall charge such interest to profit or loss for the current period or to the cost of the
related asset.Variable lease payments not included in the measurement of the lease liability shall be recognized in profit
or loss for the period in which the event or condition that triggers those payments occurs or included in the cost
of the related asset as applicable.After the commencement date where any of the following circumstances occur the Company shall
remeasure the lease liability and adjust the carrying amount of the corresponding right-of-use asset accordingly.Where the carrying amount of the right-of-use asset has been reduced to zero and a further reduction in the
measurement of the lease liability is required any remaining amount of the remeasurement shall be recognized
in profit or loss for the current period:
Where there is a change in the assessment of an option to purchase the underlying asset an option to
extend the lease or an option to terminate the lease or where the actual exercise of the aforementioned options
differs from the original assessment the Company shall remeasure the lease liability at the present value of the
revised lease payments discounted using a revised discount rate;
Where there is a change in the in-substance fixed payments a change in the amounts expected to be
payable under a residual value guarantee or a change in the index or rate used to determine the lease payments
the Company shall remeasure the lease liability at the present value of the revised lease payments discounted
using the unchanged (original) discount rate. However where the change in lease payments results from a
change in floating interest rates a revised discount rate shall be used to discount the revised lease payments.Short-term Leases and Leases of Low-value Assets
Where the Company elects not to recognize right-of-use assets and lease liabilities for short-term leases
and leases of low-value assets the related lease payments shall be recognized in profit or loss or the cost of the
related asset on a straight-line basis over the lease term. A short-term lease is a lease that at the commencement
date has a lease term of 12 months or less and does not contain a purchase option. A lease of a low-value asset
is a lease for which the underlying asset is of low value when new. Where the Company subleases or expects to
sublease the underlying asset the head lease does not qualify as a lease of a low-value asset. For the purposes
of the Company a lease of a low-value asset refers to a lease for which the value of a single underlying asset
when new is less than CNY 40 thousand.Lease change
Where a lease is modified and both of the following conditions are met the Company shall account for the
lease modification as a separate lease:
The modification increases the scope of the lease by adding the right to use one or more underlying assets;
and
The consideration for the lease increases by an amount commensurate with the stand-alone price for the
increase in scope adjusted to reflect the circumstances of the particular contract.Where a lease modification is not accounted for as a separate lease on the effective date of the
modification the Company shall reallocate the consideration in the modified contract redetermine the lease
term and remeasure the lease liability at the present value of the revised lease payments discounted using a
revised discount rate.If the lease scope is reduced or the lease term is shortened due to the lease change the Company will
correspondingly reduce the book value of right-of-use assets and include relevant profits or losses of partial or
complete termination of leasing in current profits and losses. If the lease liabilities are remeasured due to the
other lease changes the Company shall adjust the book value of the right-of-use asset accordingly.
(2) Accounting methods of lease with the Company as the lessor
At the inception date of the lease the Company shall classify each lease as either a finance lease or an
operating lease. A finance lease is a lease that transfers substantially all the risks and rewards incidental to
ownership of an underlying asset. Title may or may not eventually be transferred. An operating lease refers to a
lease other than a finance lease. When the Company acts as an intermediate lessor it shall classify the sublease
by reference to the right-of-use asset arising from the head lease rather than by reference to the underlying asset.Accounting Treatment for Operating Leases
Lease payments from operating leases shall be recognized as lease income on a straight-line basis over the
lease term. Initial direct costs incurred by the Company in obtaining an operating lease shall be added to the
carrying amount of the underlying asset and recognized as an expense over the lease term on the same basis as
the lease income. Variable lease payments not included in the lease payments shall be recognized as income in
profit or loss for the period in which they are earned. Where an operating lease is modified the Company shall
account for the modification as a new lease from the effective date of the modification and any prepaid or
accrued lease payments relating to the original lease shall be treated as part of the lease payments of the new
lease.Accounting Treatment for Finance Leases
At the commencement date the Company shall recognize finance lease receivables for finance leases and
derecognize the underlying asset. On initial measurement of the finance lease receivables the Company shall
record such receivables at an amount equal to the net investment in the lease. The net investment in the lease
equals the sum of the unguaranteed residual value and the present value of the lease payments not yet received
at the commencement date discounted at the interest rate implicit in the lease.The Company calculates and recognizes interest income for each period over the lease term at a constant
periodic interest rate. Derecognition and impairment of finance lease receivables are accounted for inaccordance with “Section VIII Financial Report V. Significant Accounting Policies and Accounting Estimates -
11. Financial Instruments” in this note.
Variable lease payments not included in the measurement of the net investment in the lease shall be
recognized in profit or loss in the period in which they are earned.Where a finance lease is modified and both of the following conditions are met the Company shall account
for the lease modification as a separate lease:
The modification increases the scope of the lease by adding the right to use one or more underlying assets;
and
The consideration for the lease increases by an amount commensurate with the stand-alone price for the
increase in scope adjusted to reflect the circumstances of the particular contract.Where a finance lease modification is not accounted for as a separate lease the Company shall account for
the modified lease according to the following circumstances:
If the modification had been in effect at the inception date of the lease and the lease would have been
classified as an operating lease the Company shall account for the lease modification as a new lease from the
effective date of the modification and shall measure the carrying amount of the underlying asset as the net
investment in the lease immediately before the effective date of the modification;
If the modification had been effective on the lease commencement date and the lease would have been
classified as a finance lease the Company accounts for it in accordance with the policies regarding themodification or renegotiation of contracts in “Section VIII Financial Report V. Significant Accounting Policiesand Accounting Estimates - 11. Financial Instruments”.
36. Other Significant Accounting Policies and Accounting Estimates
Work Safety Expenses and Maintenance & Simple Reproduction Expenses
In accordance with the provisions of CZ [2022] No. 136 the Company accrues work safety expenses on a
monthly basis in equal amounts using a progressive regression method with the actual operating revenue of the
previous year as the accrual basis. The specific standards are as follows:
For the machinery manufacturing enterprises with an operating income of not exceeding CNY 10 million
2.35% of work safety cost will be withdrawn; for the part of operating income between CNY 10 million and
CNY 100 million 1.25% will be withdrawn; for the part of the operating income between CNY 100 million and
CNY 1 billion 0.25% will be withdrawn; for the part of the operating income between CNY 1 billion and CNY
5 billion 0.1% will be withdrawn; for the part of the operating income over CNY 5 billion 0.05% will be
withdrawn.For transportation enterprises the work safety cost is withdrawn month by month in an average manner
according to the following standards based on the actual operating income in the previous year: 1% for ordinary
freight business; 1.5% for passenger transportation pipeline transportation dangerous goods transportation and
other special freight businesses. Work safety expenses and maintenance & simple reproduction expenses shall
upon accrual be charged to the cost of the related products or to profit or loss for the current period and shall
be simultaneously credited to the “Special Reserve” account.For the withdrawn work safety cost and maintenance & renovation cost used within the specified scope
those belong to expense expenditures are directly offset by specific reserves; those cost incurred via collection
under the item of “construction in progress” is recognized when the safety project completes and is ready for
intended use. At the same time the Company will offset the specific reserves according to the cost that formed
fixed assets and determine the accumulated depreciation of the same amount. The fixed assets will no longer be
depreciated in subsequent periods.
37. Changes in Significant Accounting Policies and Accounting Estimates
(1) Change in significant accounting policies
□Applicable□Not applicable
(2) Change in significant accounting estimates
□Applicable□Not applicable
(3) Adjustment of relevant items in the financial statements at the beginning of the year after the first
implementation of the new accounting standards since 2026
□Applicable□Not applicable
VI. Taxes
1. Main Taxes and Tax Rates
Tax Category Tax Basis Tax Rate
Output VAT is calculated on the basis of
revenue from sales of goods and taxable
VAT services as determined in accordance withapplicable tax laws. After deducting the input 18% 15% 13% 9% 6% 5%
VAT creditable for the current period the
balance represents the VAT payable.Urban
Calculated and paid based on the VAT actually
maintenance and 7% 5% 3%
paid
construction tax
Corporate income
Taxable income 25%
tax
Education Calculated and paid based on the VAT actually
3%
surcharges paid
Local educational Calculated and paid based on the VAT actually 2%
surcharges paid
Land use tax Land use area CNY 9/m2 CNY 14/m2 etc.Property tax Property residual value and rental income 1.2% 12%
Disclosure of different corporate income tax rates for taxable entities
Name of Taxpayer Income Tax Rate
Jiefang Limited 15%
FAW Jiefang Dalian Diesel Engine Co. Ltd. 15%
Apart from the preferential tax rates mentioned above
Other Organizations other organizations are subject to the local statutory
tax rates.
2. Tax Preference
(1) Income tax
Jiefang Limited a subsidiary of the Company is recognized as a high-tech enterprise with a validity
period of three years and an income tax rate of 15% within the validity period according to the High-tech
Enterprise Certificate (issued on October 16 2023 with a certificate number of GR202322000922) jointly
issued by the Science and Technology Department of Jilin Province the Department of Finance of Jilin
Province and the Jilin Provincial Tax Service of State Taxation Administration.Pursuant to the second batch of High and New Technology Enterprise (HNTE) filing list for 2024 issued by
Dalian Municipal Government on December 24 2024 (Certificate No.: GR202421200987) FAW Jiefang
Dalian Diesel Engine Co. Ltd. a subsidiary of the Company has been recognized as a High and New
Technology Enterprise with a validity period of three years during which it is subject to corporate income tax at
a preferential rate of 15%.
(2) VAT
FAW Jiefang Automotive Co. Ltd. and FAW Jiefang Dalian Diesel Engine Co. Ltd. satisfy the conditions
for advanced manufacturing enterprises and are allowed to add 5% of the current deductible input tax to offset
the amount of VAT payable from January 1 2023 according to the Document No.43 issued by the Ministry of
Finance and the State Taxation Administration in 2023 Announcement on VAT Additional Tax Credit Policy
for Advanced Manufacturing Enterprises.VII.Notes to Items in Consolidated Financial Statements
1.Monetary Capital
Unit: CNY
Item Closing Balance Opening Balance
Cash on hand 1605480.61 1828617.96
Bank deposit 14774146087.11 10852193765.21
Other monetary capital 22256018.10 22207584.57
Deposit in finance companies 15215357434.79 11449039042.31
Total 30013365020.61 22325269010.05
Including: total amount
deposited abroad 1145586031.51 593126699.86
2. Derivative financial assets
Unit: CNY
Item Closing Balance Opening Balance
Forward foreign exchange
settlement and sale 1977854.70
Total 1977854.70
3. Notes Receivable
(1) Classified presentation of notes receivable
Unit: CNY
Item Closing Balance Opening Balance
Commercial acceptance notes 22931011.03 584654660.00
Total 22931011.03 584654660.00
(2) Disclosure by the method of provision for bad debts
Unit: CNY
Closing Balance Opening Balance
Category Book Balance Provision for Bad Debts Book Balance Provision for Bad Debts
Book Value Book Value
Amount Scale Amount Provision Amount Scale Amount ProvisionProportion Proportion
Including
:
Notes
receivable
with
provision 22953965.00 100.00% 22953.97 0.10% 22931011.03 585340000.00 100.00% 685340.00 0.12% 584654660.00
for bad
debts by
portfolio
Including
:
Total 22953965.00 100.00% 22953.97 0.10% 22931011.03 585340000.00 100.00% 685340.00 0.12% 584654660.00
Name of category for which bad debt provision is accrued on a portfolio basis: Commercial acceptance bills
Unit: CNY
Closing Balance
Name
Book Balance Provision for Bad Debts Provision Proportion
Within 1 year 22953965.00 22953.97 0.10%
Total 22953965.00 22953.97
Description of the basis for determining this portfolio:
If the provision for bad debts of notes receivable is withdrawn based on the general model of expected credit losses:
□Applicable□Not applicable
(3) Provision for bad debts provided recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: CNY
Change in the Current Period
Category Opening ClosingBalance Provision Recovery orReversal Write-off Others
Balance
Commercial
acceptance bill 685340.00 -662386.03 22953.97
Total 685340.00 -662386.03 22953.97
Important provision for bad debts recovered or reversed in the current period:
□Applicable□Not applicable
4. Accounts Receivable
(1) Disclosure by aging
Unit: CNY
Aging Closing Book Balance Opening Book Balance
Within 1 year (including 1 year) 6405144369.19 3300727255.73
1-2 years 2739662495.23 1980252488.65
2-3 years 31965749.34 52721529.62
Over 3 years 310285993.58 260578970.27
3-4 years 88592754.30 56330191.95
4-5 years 58116854.77 24104043.53
Over 5 years 163576384.51 180144734.79
Total 9487058607.34 5594280244.27
(2) Disclosure by the method of provision for bad debts Unit:
CNY
Closing Balance Opening Balance
Book Balance Provision for Bad Debts Book Balance Provision for Bad Debts
Category Provisi
Book Value
Amount Scale Amount Provision Amount Scale Amount on
Book Value
Proportion Proport
ion
Accounts
receivable
with
provision
for bad 277369102.82 2.92% 219536184.21 79.15% 57832918.61 233830588.76 4.18% 212773844.79
90.99
% 21056743.97
debts on an
individual
basis
Including:
Accounts
receivable
with
provision 9209689504.52 97.08% 133158426.96 1.45% 9076531077.56 5360449655.51 95.82% 106376029.03 1.98% 5254073626.48
for bad
debts by
portfolio
Including:
Aging
portfolio 9209689504.52 97.08% 133158426.96 1.45% 9076531077.56 5360449655.51 95.82% 106376029.03 1.98% 5254073626.48
Total 9487058607.34 100.00% 352694611.17 3.72% 9134363996.17 5594280244.27 100.00% 319149873.82 5.70% 5275130370.45
Name of category for bad debt provision accrued on an individual basis: Unit: CNY
Opening Balance Closing Balance
Name
Book Balance Provision for Bad Book Balance Provision for Bad ProvisionDebts Debts Proportion Reasons for Provision
Customer 1 43842501.70 43842501.70 43842501.70 43842501.70 100.00% It is highly probable thatthe amounts will not be
recovered
FAW-HONGTA Yunnan Automobile It is highly probable that
Co. Ltd. 43170001.84 43170001.84 43170001.84 43170001.84 100.00% the amounts will not berecovered
It is highly probable that
Customer 2 20378212.80 2037821.28 10.00% the amounts will not be
recovered
It is highly probable that
Customer 3 15398082.72 4619424.82 30.00% the amounts will not be
recovered
It is highly probable that
Customer 4 11682802.81 11682802.81 11682802.81 11682802.81 100.00% the amounts will not be
recovered
It is highly probable that
Customer 5 10977059.71 10977059.71 10977059.71 10977059.71 100.00% the amounts will not be
recovered
It is highly probable that
Customer 6 10567768.47 3170330.54 10567768.47 3170330.54 30.00% the amounts will not be
recovered
It is highly probable that
Customer 7 9843235.14 2829335.13 9843235.14 2829335.13 28.74% the amounts will not be
recovered
It is highly probable that
Aggregation of Other Entities 103747219.09 97101813.06 111509437.63 97206906.38 87.17% the amounts will not be
recovered
Total 233830588.76 212773844.79 277369102.82 219536184.21
Name of category for bad debt provision accrued on a portfolio basis: Bad debt provision accrued on a portfolio
basis
Unit: CNY
Closing Balance
Name
Book Balance Provision for Bad Debts Provision Proportion
Within 1 year 6360677972.65 17820543.58 0.28%
1-2 years 2739598954.73 44683604.38 1.63%
2-3 years 22610887.25 2824243.83 12.49%
3-4 years 25991134.88 7019480.16 27.01%
Over 4 years 60810555.01 60810555.01 100.00%
Total 9209689504.52 133158426.96
Description of the basis for determining this portfolio:
If the provision for bad debts of accounts receivable is withdrawn based on the general model of expected credit
losses:
□Applicable□Not applicable
(3) Provision for bad debts provided recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: CNY
Change in the Current Period
Category Opening Balance
Provision Recovery or Write-
Closing Balance
Reversal off Others
Accounts
receivable 319149873.82 36790300.76 903825.46 2341737.95 352694611.17
Total 319149873.82 36790300.76 903825.46 2341737.95 352694611.17
(4) Other accounts receivable and contractual assets from the top five borrowers classified based on the
ending balance
Unit: CNY
Proportion in Closing Balance of
Closing Balance Total Closing Bad Debt
Closing Balance Closing of Accounts Balance of Provision forName of Balance of Accounts
Unit of Accounts Receivable and AccountsReceivable Contractual Contractual Receivable and Receivable andAssets Assets Contractual Impairment
Assets Provision forContractual Assets
China FAW
Group
Import & 2405823360.55 2405823360.55 25.18% 12201759.12
Export Co.Ltd.Jiefang
Times New
Energy 1645808560.28 1645808560.28 17.23% 2156262.00
Technology
Co. Ltd.Customer 1 183853911.39 183853911.39 1.92% 336840.80
Customer 2 174258971.13 174258971.13 1.82% 600725.32
Customer 3 141901708.18 141901708.18 1.49% 311952.70
Total 4551646511.53 4551646511.53 47.64% 15607539.94
5. Contract Assets
(1) Contractual assets
Unit: CNY
Closing Balance Opening Balance
Item
Book Balance Provision for Book Value Book Balance Provision forBad Debts Bad Debts Book Value
Contr
act 67673262.96 451421.24 67221841.72 71442590.62 500889.76 70941700.86
assets
Total 67673262.96 451421.24 67221841.72 71442590.62 500889.76 70941700.86
(2) Disclosure by the method of provision for bad debts
Unit: CNY
Closing Balance Opening Balance
Category Book Balance Provision for Bad Debts Book Balance Provision for Bad Debts
Book Value Book Value
Amount Scale Amount ProvisionProportion Amount Scale Amount
Provision
Proportion
Including:
Provision
for bad
debts made 67673262.96 100.00% 451421.24 0.67% 67221841.72 71442590.62 100.00% 500889.76 0.70% 70941700.86
by
portfolio
Including:
Aging
portfolio 67673262.96 100.00% 451421.24 0.67% 67221841.72 71442590.62 100.00% 500889.76 0.70% 70941700.86
Total 67673262.96 100.00% 451421.24 0.67% 67221841.72 71442590.62 100.00% 500889.76 0.70% 70941700.86
Name of category for which bad debt provision is accrued on a portfolio basis:
Unit: CNY
Closing Balance
Name
Book Balance Provision for Bad Debts Provision Proportion
Aging portfolio 67673262.96 451421.24 0.67%
Total 67673262.96 451421.24
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses
□Applicable□Not applicable
(3) Provision for bad debts provided recovered or reversed in the current period
Unit: CNY
Item Provision in the Current Recovery or Reversal in Charge-off/Write-off in the CurrentPeriod the Current Period Period Reason
Impairment provision of contract assets -31521.58 17946.94
Total -31521.58 17946.94
6. Receivables Financing
(1) Presentation of receivables financing by category
Unit: CNY
Item Closing Balance Opening Balance
Notes receivable 4360450827.39 6556062093.60
Total 4360450827.39 6556062093.60
(2) Financing of receivables endorsed or discounted by the Company at the end of the period and not yet
due on the balance sheet date
Unit: CNY
Item Derecognized Amount at the End Amount Not Derecognized at theof the Period End of the Period
Bank acceptance bills 32110691006.41
Total 32110691006.41
7. Other Receivables
Unit: CNY
Item Closing Balance Opening Balance
Other receivables 1274176640.38 1391631269.91
Total 1274176640.38 1391631269.91
(1) Other receivables
1) Classification of other receivables by nature
Unit: CNY
Nature Closing Book Balance Opening Book Balance
Current account 732674060.28 824659856.88
Claim payment 254276421.72 334971419.71
Margin deposit 24866475.04 32890443.24
Reserve fund 10069867.48 1522107.26
Export tax rebate 341306095.35 292305791.19
Others 6699655.41 5782820.39
Total 1369892575.28 1492132438.67
2) Disclosure by aging
Unit: CNY
Aging Closing Book Balance Opening Book Balance
Within 1 year (including 1 year) 691535457.43 891664767.81
1-2 years 173724758.13 55307717.81
2-3 years 48010000.00 96389137.89
Over 3 years 456622359.72 448770815.16
3-4 years 410869547.60 433989633.00
4-5 years 17042688.00 462406.26
Over 5 years 28710124.12 14318775.90
Total 1369892575.28 1492132438.67
3) Disclosure by the method of provision for bad debts
□Applicable □Not applicable
Unit: CNY
Closing Balance Opening Balance
Category Book Balance Provision for Bad Debts Book Balance Provision for Bad Debts
Amount Scale Amount Provision
Book Value Provision Book Value
Proportion Amount Scale Amount Proportion
Provision
for bad
debts made
by 54673642.70 3.99% 54673642.70 100.00% 54673642.70 3.66% 54673642.70 100.00%
individual
item
Including:
Provision
for bad
debts made 1315218932.58 96.01% 41042292.20 3.12% 1274176640.38 1437458795.97 96.34% 45827526.06 3.19% 1391631269.91
by portfolio
Including:
Aging
portfolio 1315218932.58 96.01% 41042292.20 3.12% 1274176640.38 1403594845.47 94.07% 45827526.06 3.27% 1357767319.41
Portfolio of
guarantees
deposits
and petty 33863950.50 2.27% 33863950.50
cash
reserves
Total 1369892575.28 100.00% 95715934.90 6.99% 1274176640.38 1492132438.67 100.00% 100501168.76 6.74% 1391631269.91
Category name of bad debt provision accrued on an individual basis:
Unit: CNY
Opening Balance Closing Balance
Name
Book Balance Provision for Bad Book Balance Provision for Bad Provision Proportion Reasons for Provision
Debts Debts
It is highly probable
Other receivables 1 53118196.29 53118196.29 53118196.29 53118196.29 100.00% that the amounts will
not be recovered
It is highly probable
Other receivables 2 1555446.41 1555446.41 1555446.41 1555446.41 100.00% that the amounts will
not be recovered
Total 54673642.70 54673642.70 54673642.70 54673642.70
-
Name of category for bad debt provision accrued on a portfolio basis: Bad debt provision accrued on a portfolio
basis
Unit: CNY
Closing Balance
Name
Book Balance Provision for Bad Debts Provision Proportion
Within 1 year 691535457.43 5513629.84 0.80%
1-2 years 129059044.06 5548808.75 4.30%
2-3 years 48010000.00 427289.00 0.89%
3-4 years 410869547.60 17626014.12 4.29%
4-5 years 17042688.00 3224520.00 18.92%
Over 5 years 18702195.49 8702030.49 46.53%
Total 1315218932.58 41042292.20
Provision for bad debts based on the general model of expected credit losses:
Unit: CNY
Stage I Stage II Stage III
Expected Credit
Provision for Bad Expected Credit Loss in the Expected Credit
Debts TotalLosses for the Next Duration (Credit Loss for the Entire
12 Months Impairment Has Duration (With
Not Occurred) Credit Impairment)
Balance as of
January 01 2026 6189551.84 39637974.22 54673642.70 100501168.76
Balance on January
1 2026 in the
current period
Provision in the
Current Period -675922.00 -646609.09 -1322531.09
Reversal in the
current period 577513.56 577513.56
Write-off in the
current period 2885189.21 2885189.21
Balance as of June
30 2026 5513629.84 35528662.36 54673642.70 95715934.90
Basis for stage division and proportion of bad debt provision: For Stage 1 and Stage 2 bad debt provisions are
made based on aging analysis at a rate of 0.80% for Stage 1 and 5.70% for Stage 2. For accounts classified
under Stage 3 the Company measures the loss allowance at an amount equal to the lifetime expected credit
losses of such accounts receivable.Significant book balance changes occurred in the provision for losses in the current period
□Applicable□Not applicable
4) Other receivables written off in the current period
Unit: CNY
Item Amount Written off
Current account 2885189.21
5) Top five ending balances of other receivables classified by debtors
Unit: CNY
Proportion in Closing Balance of
Name of Unit Nature of Closing Balance Aging total endingPayment Provision for Badbalance of Debts
other
receivables
Funds for land
Customer 1 purchase and 410862800.00 3-4 years 29.99% 17626014.12
reserve
Customer 2 Export tax refundreceivable 279306130.54
Within 1
year 20.39% 921710.23
Customer 3 Receivables fromdisposal of assets 129042064.00 1-2 years 9.42% 5548808.75
Customer 4 Export tax refundreceivable 61999964.81
months 4.53%
Customer 5 New energysubsidy 48010000.00 2-3 years 3.50% 427289.00
Total 929220959.35 67.83% 24523822.10
8. Advance Payment
(1) Presentation of advance payment by aging
Unit: CNY
Closing Balance Opening Balance
Aging
Amount Scale Amount Scale
Within 1 year 463041346.20 98.66% 117553190.64 84.52%
1-2 years 6165316.59 1.31% 14008226.93 10.07%
2-3 years 141924.51 0.03% 196210.66 0.14%
Over 3 years 7325289.70 5.27%
Total 469348587.30 139082917.93
(2) Top five ending balances of advance payments classified by advance payment objects
The aggregate closing balance of the top five prepayments grouped by prepayment counterparty amounted to
CNY 345563253.31 representing 73.63% of the total closing balance of prepayments.
9. Inventories
Does the Company need to comply with the disclosure requirements of the real estate industry: No
(1) Classification of inventories
Unit: CNY
Closing Balance Opening Balance
Impairment Impairment
Provision of Provision of
Item Inventories or Inventories or
Book Balance Book Value Book Balance Book Value
Contract Contract
Performance Performance
Costs Costs
Raw
276016353.21 112376.26 275903976.95 107089403.09 694789.05 106394614.04
material
Goods in
603251725.32 1865543.39 601386181.93 437687716.13 4124290.30 433563425.83
process
Goods in
12632133774.07 108480883.52 12523652890.55 10584120202.88 196982278.91 10387137923.97
stock
Revolving
244601925.40 28699883.84 215902041.56 265751386.82 44429158.03 221322228.79
material
Goods in
2783322.64 2783322.64
stock
Outsourced 3275589685.60 69120755.96 3206468929.64 2335686262.76 68691006.13 2266995256.63
semi-
finished
products
Total 17034376786.24 208279442.97 16826097343.27 13730334971.68 314921522.42 13415413449.26
(2) Impairment provision of inventories and contract performance costs
Unit: CNY
Increase in the Current Period Decrease in the Current Period
Item Opening Balance Reverse or Charge- Closing Balance
Provision Others Others
off
Raw
694789.05 582412.79 112376.26
material
Goods in
4124290.30 715745.39 2974492.30 1865543.39
process
Goods in
196982278.91 84489256.20 172410601.71 580049.88 108480883.52
stock
Revolving
44429158.03 310599.12 16039873.31 28699883.84
material
Outsourced
semi-
68691006.13 15860159.76 15430409.93 69120755.96
finished
products
Total 314921522.42 101375760.47 207437790.04 580049.88 208279442.97
10. Long-Term Receivables Due Within 1 Year
Unit: CNY
Item Closing Balance Opening Balance
Long-term receivables due within one
year 339978871.98 355532986.69
Total 339978871.98 355532986.69
(1) Debt investments due within one year
□Applicable□Not applicable
(2) Other debt investments due within one year
□Applicable□Not applicable
11. Other Current Assets
Unit: CNY
Item Closing Balance Opening Balance
Input VAT to be credited 335492024.74 661738191.96
Prepaid taxes 14715.78 9159294.16
Input VAT to be certified 620030448.88 482448569.27
Others 58380.00 3794639.52
Total 955595569.40 1157140694.91
12. Investment in Other Equity Instruments
Unit: CNY
Cumulati Reason for
ve Gains Being
Gains Are Divide Designated
Included Included nd as Being
in Other Incom
Compre Losses Included in
in Other Cumulative Losses e Measured
Project Compreh Are Included in Other at Fair
Name Opening Balance hensive
Other Comprehensive Recog
Incomes in the Current ensive Comprehensive nized Closing Balance Value andIncomes Period Incomes Incomes at the End of in the Changesin the at the the Current Period Included in
Current End of Current OtherPeriod the
Current Period
Comprehen
sive
Period Incomes
Investment
s
designated
REFIRE 210703161.60 142977106.80 413053945.20 67726054.80 for long-term
holding for
strategic
purposes
Total 210703161.60 142977106.80 413053945.20 67726054.80
13. Long-term Receivables
(1) Long-term receivables
Unit: CNY
Closing Balance Opening Balance Di
sco
unt
Item Ra
Book Balance Provision for BadDebts Book Value Book Balance
Provision for Bad te
Debts Book Value Ra
ng
e
Sales of
goods
by 449011181.02 63377388.08 385633792.94 448333877.38 47823273.37 400510604.01
installm
ent
Long-
term
receivab
les due -403237832.07 -63258960.09 -339978871.98 -403237832.06 -47704845.37 -355532986.69
within
one year
Total 45773348.95 118427.99 45654920.96 45096045.32 118428.00 44977617.32
(2) Disclosure by the method of provision for bad debts
Unit: CNY
Closing Balance Opening Balance
Category Book Balance Provision for Bad Debts Book Value Book Balance Provision for Bad Debts Book Value
Amount Scale Amount ProvisionProportion Amount Scale Amount
Provision
Proportion
Including:
Provision
for bad
debts 449011181.02 100.00% 63377388.08 14.11% 385633792.94 448333877.38 100.00% 47823273.37 10.67% 400510604.01
made by
portfolio
Including:
Aging
portfolio 449011181.02 100.00% 63377388.08 14.11% 385633792.94 448333877.38 100.00% 47823273.37 10.67% 400510604.01
Total 449011181.02 100.00% 63377388.08 14.11% 385633792.94 448333877.38 100.00% 47823273.37 10.67% 400510604.01
Name of category for which bad debt provision is accrued on a portfolio basis: aging portfolio
Unit: CNY
Closing Balance
Name
Book Balance Provision for Bad Debts Provision Proportion
Long-term receivables 449011181.02 63377388.08 14.11%
Total 449011181.02 63377388.08
(3) Provision for bad debts provided recovered or reversed in the current period
Unit: CNY
Change in the Current Period
Category Opening Balance Closing Balance
Provision Recovery or Charge-off or Write-Reversal off Others
Aging portfolio 47823273.37 15554114.71 63377388.08
Total 47823273.37 15554114.71 63377388.08
14. Long-Term Equity Investments
Unit: CNY
Increase/Decrease in the Current Period
I
m
p
a
i
r Closi
m ng
Opening e
Balance of Investment Cash
Balan
Opening Balance Adjustment to nGains or Losses Changes in Dividends Closing Balance ce ofInvestee Impairme
(Book Value) Additional Reduced Other tRecognized Other and Profits Others (Book Value) Impaint Investment Investment Comprehensiv rment
Provision under the Equity Equity are Declarede Income P
Method to Be Paid Provi
r sion
o
v
i
s
i
o
n
I. Joint ventures
Jiefang
Times New
Energy 234697535.09 6306114.81 241003649.90
Technology
Co. Ltd.Subtotal 234697535.09 6306114.81 241003649.90
II. Associated enterprises
Changchun
Automotive
722577086.31 -3363299.38 -4317.39 947590.56 720157060.10
Test Center
Co. Ltd.Sanguard
Automobile
191533503.96 4755109.96 -5163622.49 191124991.43
Insurance
Co. Ltd.FAW
Changchun
Ansteel
Jiefang
Steel 88095424.44 860952.46 2906.76 88959283.66
Processing
and
Distribution
Co. Ltd.FAW
Changchun
Baoyou
Jiefang
Steel 42352052.96 2311751.98 4963067.38 39700737.56
Processing
and
Distribution
Co. Ltd.FAW
Jiefang
Fujie 37707963.64 -2910064.51 3202.96 -1135.68 107245.64 34907212.05
(Tianjin)
Technology
Industry
Co. Ltd.Foshan
Diyiyuansu
New Energy 24002864.75 -2103653.28 21899211.47
Technology
Co. Ltd.Changchun
Wabco
Automotive
12058930.08 -1140046.86 10918883.22
Control
System Co.Ltd.Diyi AESC
New Energy
Power
Technology
(Wuxi) Co.Ltd.Suzhou
Zhito
Technology
Co. Ltd.SmartLink
Subtotal 1118327826.14 -1589249.63 -5164736.92 949361.64 4963067.38 107245.64 1107667379.49
Total 1353025361.23 4716865.18 -5164736.92 949361.64 4963067.38 107245.64 1348671029.39
The recoverable amount is the net amount of the fair value after deducting the disposal expenses
□Applicable□Not applicable
The recoverable amount is the present value of the expected future cash flow
□Applicable□Not applicable
15. Investment Properties
(1) Investment properties measured at cost
□Applicable □Not applicable
Unit: CNY
Project
Item Houses andBuildings Land Use Right
Under
Constr Total
uction
I. Original book value
1.Opening balance 102519158.92 7498763.44 110017922.36
2. Increase in the current period 4001803.34 4001803.34
(1) Purchase
(2) Transfer from inventories/fixed
assets/construction in progress 4001803.34 4001803.34
(3) Increase due to business
combination
3. Decrease in the current period 1836578.74 1836578.74
(1) Disposal
(2) Other transfer-out
(3) Transferred back to fixed assets 1836578.74 1836578.74
4. Closing balance 104684383.52 7498763.44 112183146.96
II. Accumulated depreciation and
accumulated amortization
1.Opening balance 63594213.99 1711483.25 65305697.24
2. Increase in the current period 11319064.47 76286.46 11395350.93
(1) Provision or amortization 10136287.69 21275.58 10157563.27
(2) Transferred from intangible assets
and fixed assets 1182776.78 55010.88 1237787.66
3. Decrease in the current period 1836578.74 1836578.74
(1) Disposal
(2) Other transfer-out
(3) Transferred back to fixed assets 1836578.74 1836578.74
4. Closing balance 73076699.72 1787769.71 74864469.43
III. Impairment provision
1.Opening balance
2. Increase in the current period
(1) Provision
3. Decrease in the current period
(1) Disposal
(2) Other transfer-out
4. Closing balance
IV. Book value
1. Closing book value 31607683.80 5710993.73 37318677.53
2. Opening book value 38924944.93 5787280.19 44712225.12
The recoverable amount is the net amount of the fair value after deducting the disposal expenses
□Applicable□Not applicable
The recoverable amount is the present value of the expected future cash flow
□Applicable□Not applicable
16. Fixed Assets
Unit: CNY
Item Closing Balance Opening Balance
Fixed assets 10346539684.27 10988508730.09
Disposal of fixed assets 4150188.66 4578248.33
Total 10350689872.93 10993086978.42
(1) Details of fixed assets
Unit: CNY
Houses and Machinery Transportation Electronic
Item Office Equipment Others Total
Buildings Equipment Equipment Equipment
I. Original book value
1.Opening balance 6991527118.65 18879969173.35 179661253.88 802081548.99 80830226.90 1478485713.24 28412555035.01
2. Increase in the current
8375001.00 105309498.29 1833384.84 1927396.85 371648.50 6028061.07 123844990.55
period
(1) Purchase 2275565.73 3716434.93 1833384.84 28096.12 332412.73 222123.89 8408018.24
(2) Transfer from
6099435.27 101593063.36 1844119.68 5805937.18 115342555.49
construction in progress
(3) Other increases 55181.05 39235.77 94416.82
3. Decrease in the current
12916105.22 221662915.10 8719835.68 2427377.71 89955.80 1315620.69 247131810.20
period
(1) Disposal or retirement 9322630.78 221633384.61 8566403.20 2240476.83 37391.02 1115674.84 242915961.28
(2) Transferred to investment
3582147.30 3582147.30
properties
(3) Other decreases 11327.14 29530.49 153432.48 186900.88 52564.78 199945.85 633701.62
4. Closing balance 6986986014.43 18763615756.54 172774803.04 801581568.13 81111919.60 1483198153.62 28289268215.36
II. Accumulated depreciation
1.Opening balance 2944533626.38 12317992425.34 141690634.18 712412303.42 50372865.73 1240113700.60 17407115555.65
2. Increase in the current
161247275.54 525940316.67 8675558.41 29004218.75 4576035.73 34429824.47 763873229.57
period
(1) Provision 161247275.54 525940316.67 8675558.41 29004218.75 4576035.73 34429824.47 763873229.57
3. Decrease in the current
9351222.87 215389454.25 7673942.54 2387402.78 62525.01 1275486.13 236140033.58
period
(1) Disposal or retirement 9042951.86 215386504.37 7522543.46 2240476.83 36269.29 1273906.71 235502652.52
(2) Other decreases 308271.01 2949.88 151399.08 146925.95 26255.72 1579.42 637381.06
4. Closing balance 3096429679.05 12628543287.76 142692250.05 739029119.39 54886376.45 1273268038.94 17934848751.64
III. Impairment provision
1.Opening balance 14792716.17 207.55 2137825.55 16930749.27
2. Decrease in the current 9050969.82 9050969.82
period
(1) Disposal or retirement 9050969.82 9050969.82
3. Closing balance 5741746.35 207.55 2137825.55 7879779.45
IV. Book value
1. Closing book value 3890556335.38 6129330722.43 30082552.99 62552448.74 26225335.60 207792289.13 10346539684.27
2. Opening book value 4046993492.27 6547184031.84 37970619.70 89669245.57 30457153.62 236234187.09 10988508730.09
(2) Fixed assets without property ownership certificates
Unit: CNY
Item Book Value Reasons for Failure to Obtain theCertificate
Property ownership certificate to
Guanghan base project 244246858.43 be processed after the governmentissues the completion acceptance
and filing procedures
Equipment workshop works 321285838.43 The property ownership certificatehas not yet been applied for
(3) Impairment testing of fixed assets
□Applicable□Not applicable
(4) Disposal of fixed assets
Unit: CNY
Item Closing Balance Opening Balance
Houses and Buildings 5660.38
Machinery equipment 3431288.26 4089685.63
Means of transport 55318.57 70688.57
Electronic equipment 20054.22 12750.00
Office equipment 331494.43 86291.45
Others 306372.80 318832.68
Total 4150188.66 4578248.33
17. Construction in Progress
Unit: CNY
Item Closing Balance Opening Balance
Project under construction 177573657.43 131371243.36
Total 177573657.43 131371243.36
(1) Construction in Progress
Unit: CNY
Closing Balance Opening Balance
Impairm
Item
Book Balance Impairment entProvision Book Value Book Balance Provisio Book Value
n
New and
reconstructed 797236.97 797236.97 167885.85 167885.85
investment project
Technical
transformation 176776420.46 176776420.46 131203357.51 131203357.51
investment project
Total 177573657.43 177573657.43 131371243.36 131371243.36
(2) Changes in important construction in progress in the current period
Unit: CNY
C Inc C
u lud a
m ing pi
ul : ta
at Ca li
iv pit za
Amount Proportion of e aliz ti
Other
Transferred to Accumulated A ed o
Project Opening Increase in the Decreases in Project Capital
Budget Fixed Assets in Closing Balance Investment in m Int n
Name Balance Current Period the Current Progress Source
the Current Constructions o ere R
Period
Period to Budget u st at
nt A e
of mo of
C unt In
a dur te
pi ing re
ta the st
li Cu in
ze rre C
d nt ur
In Per re
te iod nt
re P
st er
io
d
Construction
of an
integrated
95500000.00 58036325.44 17501455.68 75537781.12 80.83% 90.00% Self-funded
business and
finance
platform
Medium and
heavy-duty
engine
667780000.00 41406677.56 75354222.32 63381793.29 53379106.59 13.28% 60.07% Self-funded
upgrade and
renovation
project
Heavy-duty
MT gearbox
Proceeds +
assembly
83480000.00 10108379.65 10108379.65 90.11% 100% self-raised
production
funds
preparation
project
FAW Jiefang
Guanghan
Base Phase II
Logistics 154689800.00 33250619.36 33250619.36 21.50% 30.57% Self-funded
Center
Construction
Project
Total 1001449800.00 109551382.65 126106297.36 73490172.94 162167507.07
(3) Impairment testing of projects under construction
□Applicable□Not applicable
18 Productive Biological Assets
(1) Productive biological assets measured at cost
□Applicable□Not applicable
(2) Impairment test of productive biological assets measured at cost
□Applicable□Not applicable
(3) Productive biological assets measured at fair value
□Applicable□Not applicable
19 Oil and Gas Assets
□Applicable□Not applicable
20. Right-of-Use Assets
(1) Right-of-use assets
Unit: CNY
Item Houses and MachineryBuildings Equipment Land Total
I. Original book
value
1.Opening balance 121363874.54 54247787.61 17370803.03 192982465.18
2. Increase in the
current period
3. Decrease in the
current period
4. Closing balance 121363874.54 54247787.61 17370803.03 192982465.18
II. Accumulated
depreciation
1.Opening balance 83381445.26 32336283.16 16368472.78 132086201.20
2. Increase in the
current period 24400416.73 5478032.34 165646.14 30044095.21
(1) Provision 24400416.73 5478032.34 165646.14 30044095.21
3. Decrease in the
current period
(1) Disposal
4. Closing balance 107781861.99 37814315.50 16534118.92 162130296.41
III. Impairment
provision
1.Opening balance
2. Increase in the
current period
(1) Provision
3. Decrease in the
current period
(1) Disposal
4. Closing balance
IV. Book value
1. Closing book
value 13582012.55 16433472.11 836684.11 30852168.77
2. Opening book
value 37982429.28 21911504.45 1002330.25 60896263.98
(2) Impairment test of right-of-use assets
□Applicable□Not applicable
21. Intangible Assets
(1) Details of intangible assets
Unit: CNY
Item Land Use Right Patent Non-PatentedRights Technology Software Total
I. Original book
value
1.Opening balance 2566742282.93 676501976.01 650665103.55 3893909362.49
2. Increase in the
current period 196987859.17 14432966.67 211420825.84
(1) Purchase 13725901.14 13725901.14
(2) Internal R&D 196987859.17 196987859.17
(3) Increase due to
business
combination
(4) Other increases 707065.53 707065.53
3. Decrease in the
current period 174194.33 8146051.77 8320246.10
(1) Disposal 5072492.28 5072492.28
(2) Other decreases 174194.33 3073559.49 3247753.82
4. Closing balance 2566568088.60 873489835.18 656952018.45 4097009942.23
II. Accumulated
amortization
1.Opening balance 704004868.67 424683342.53 478815480.51 1607503691.71
2. Increase in the
current period 26755303.63 32290117.81 44329374.26 103374795.70
(1) Provision 26755303.63 32290117.81 44305804.94 103351226.38
(2) Other increases 23569.32 23569.32
3. Decrease in the
current period 51390.46 7462555.56 7513946.02
(1) Disposal 5072492.28 5072492.28
(2) Other
decreases 51390.46 2390063.28 2441453.74
4. Closing balance 730708781.84 456973460.34 515682299.21 1703364541.39
III. Impairment
provision
1.Opening balance 121147.31 121147.31
2. Increase in the
current period
(1) Provision
3. Decrease in the
current period
(1) Disposal
4. Closing balance 121147.31 121147.31
IV. Book value
1. Closing book
value 1835738159.45 416516374.84 141269719.24 2393524253.53
2. Opening book
value 1862616266.95 251818633.48 171849623.04 2286284523.47
Intangible assets developed internally through the Company’s R&D activities accounted for 21.32% of the total
intangible assets at the end of the current period.
(2) Impairment testing of intangible assets
□Applicable□Not applicable
22. Long-term Deferred Expenses
Unit: CNY
Item Opening Increase in the
Amortization
Balance Current Period Amount in the Other Decreases Closing BalanceCurrent Period
Start-up costs 74286.06 199130.74 273416.80
Total 74286.06 199130.74 273416.80
23. Deferred Tax Assets and Deferred Tax Liabilities
(1) Deferred income tax assets not offset
Unit: CNY
Closing Balance Opening Balance
Item Deductible
Temporary Deferred Income Deductible Temporary Deferred Income Tax
Difference Tax Assets Difference Assets
Impairment
provision of 728542679.09 160619204.95 775878032.77 158507658.22
assets
Unrealized
gains of
internal 322451184.88 73647117.10 322451184.88 73647117.10
transactions
Deductible
losses 14325983071.49 2352460750.93 13958566650.04 2347598363.35
Estimated
liabilities 1028242280.73 168871702.65 1031139209.41 196723844.62
Deferred
income – 524577672.29 107684103.77 518347372.61 107910350.35
government
grants
Assets
depreciation 54129.96 16238.99
differences
Lease
liabilities 6587027.37 1084187.41 7983859.73 1392527.67
Accrued
expenses 2438517424.19 583697454.00 2290146273.70 541067851.81
Employee
compensation 76251154.26 11854751.01 94922683.27 15029861.21
payable
Contract
liabilities 566476043.47 86167446.95 558137107.28 85969638.33
Total 20017628537.77 3546086718.77 19557626503.65 3527863451.65
（2） Deferred income tax liabilities not offset
Unit: CNY
Closing Balance Opening Balance
Item Taxable Temporary Deferred Income Taxable Temporary Deferred Income
Difference Tax Liabilities Difference Tax Liabilities
Depreciation of
fixed assets with
amortization period 1166973730.27 223417322.58 1417506057.59 272294678.03
longer than tax
preference period
Right-of-use assets 29193392.80 7214060.67 60896263.98 15114028.65
Accrued interest
income 489555972.12 88064298.61 829617777.78 135269333.34
Total 1685723095.19 318695681.86 2308020099.35 422678040.02
(3) Deferred tax assets or liabilities presented in net amount after offset
Unit: CNY
Closing Mutual Opening Mutual
Offset Amount of Closing Balance of Offset Amount of Opening Balance of
Item Deferred Tax Deferred Tax Assets Deferred Tax Deferred Tax Assets
Assets and or Liabilities after Assets and or Liabilities after
Liabilities Offset Liabilities Offset
Deferred Income tax
assets 318102131.02 3227984587.75 422083753.75 3105779697.90
Deferred income tax
liabilities 318102131.02 593550.84 422083753.75 594286.27
(4) Details of unrecognized deferred tax assets
Unit: CNY
Item Closing Balance Opening Balance
Deductible Temporary Difference 559568096.78 490033723.19
Deductible losses 77405456.87 89728296.79
Total 636973553.65 579762019.98
(5) Deductible losses of unrecognized deferred tax assets will be due in the following years
Unit: CNY
Year Closing Amount Opening Amount Remarks
2026 1117141.38 1117141.38
2027 3276878.63 3276878.63
2028 6680332.89 6680332.89
2029 7171414.01 7171414.01
2030 581497.39 581497.39
2031 4879618.53
2032 53698574.04 70901032.49
Total 77405456.87 89728296.79
24. Other current assets
Unit: CNY
Closing Balance Opening Balance
Item
Book Balance ImpairmentProvision Book Value Book Balance
Impairment
Provision Book Value
Advance payments for
construction projects 317280883.11 317280883.11 244088089.69 244088089.69
Fixed deposits and accrued
interest 301327083.33 301327083.33 2118833333.34 2118833333.34
Total 618607966.44 618607966.44 2362921423.03 2362921423.03
25. Assets with Restricted Ownership or Use Right
Unit: CNY
Closing Opening
Item
Book Balance Book Value Restriction Type Restriction Book Balance Book Value
Restricti
on Type Restriction
Withdra
Monetary wal Housing maintenance fund
Withdra Housing maintenance
capital 51403863.81 51403863.81 restricte security deposit for three types 51247499.59 51247499.59
wal fund security deposit
of personnel restricte for three types ofd d personnel
Due to the Tanzanian
Due to the Tanzanian government’s central
government’s central railway railway reconstruction
reconstruction project project approximately
approximately 2000 square 2000 square meters of
meters of land belonging to land belonging to the
Intangible 1920659.75 960661.30 Others the Company’s Tanzanianassets subsidiary was expropriated in 1846858.87 1072038.65 Others
Company’s Tanzanian
subsidiary was
March 2017. To date no expropriated in March
official documentation or 2017. To date no
notification has been received official documentation
from the Tanzanian or notification has
authorities. been received from the
Tanzanian authorities.Total 53324523.56 52364525.11 53094358.46 52319538.24
26. Short-term Borrowings
(1) Classification of short-term borrowings
Unit: CNY
Item Closing Balance Opening Balance
Credit loans 50000000.00 50000000.00
Total 50000000.00 50000000.00
27. Notes Payable
Unit: CNY
Category Closing Balance Opening Balance
Bank acceptance bill 26125894588.59 12809740164.11
Total 26125894588.59 12809740164.11
28. Accounts Payable
(1) Presentation of accounts payable
Unit: CNY
Item Closing Balance Opening Balance
Payment for goods 17195831886.40 19831192964.14
Expenses and others 1946834822.54 1719132817.09
Total 19142666708.94 21550325781.23
29. Other Payables
Unit: CNY
Item Closing Balance Opening Balance
Dividends payable 221629143.89 171500.02
Other payables 1253499329.68 2544364706.47
Total 1475128473.57 2544536206.49
(1) Dividends payable
Unit: CNY
Item Closing Balance Opening Balance
Ordinary stock dividends 221629143.89 171500.02
Total 221629143.89 171500.02
(2) Other payables
1) Presentation of other payables by payment nature
Unit: CNY
Item Closing Balance Opening Balance
Intercompany payables 293768784.84 250480926.86
Deposits and guarantees received 175274222.15 180304571.09
Expenses payable 141107746.26 1215617066.06
Project funds payable 643132012.94 897745578.97
Repurchase obligations of 216563.49 216563.49
restricted shares
Total 1253499329.68 2544364706.47
30. Advance Receipts
(1) Presentation of advance receipts
Unit: CNY
Item Closing Balance Opening Balance
Rental fee 3651044.74 826097.22
Total 3651044.74 826097.22
31. Contract Liabilities
Unit: CNY
Item Closing Balance Opening Balance
Payment for goods 2814732262.85 1914561508.84
Others 611094395.39 755136468.47
Contract liabilities are included in
other current liabilities -35988525.01 -66560308.63
Total 3389838133.23 2603137668.68
32. Employee Compensation Payable
(1) Presentation of employee compensation payable
Unit: CNY
Item Opening Balance Increase in the Decrease in theCurrent Period Current Period Closing Balance
I. Short-term
compensation 994523050.19 2195674759.81 2809081694.66 381116115.34
II. Post-
employment
benefits - defined 2872828.07 278209239.12 276148621.33 4933445.86
contribution plan
III. Termination
benefits 39179871.90 9247277.10 23388712.76 25038436.24
IV. Other benefits
due within one year 47150000.00 29824.20 19791975.68 27387848.52
Total 1083725750.16 2483161100.23 3128411004.43 438475845.96
(2) Presentation of short-term compensation
Unit: CNY
Item Opening Balance Increase in the Decrease in theCurrent Period Current Period Closing Balance
1. Wages bonuses
allowances and 628015423.39 1291207267.25 1917347137.45 1875553.19
subsidies
2. Employee
welfare expenses 92894107.13 92894107.13
3. Social insurance 3950508.12 436582389.76 437429805.06 3103092.82
premiums
Including: medical
insurance premiums 3922813.02 149996432.78 152900620.67 1018625.13
Work-related injury
insurance premiums 27695.10 8376717.86 8380563.06 23849.90
4. Housing
provident fund 211871.00 218903441.13 218964946.13 150366.00
5. Labor union
funds and employee 360412964.20 53250674.21 37701388.44 375962249.97
education funds
6. Other short-term
compensations 1932283.48 102836880.33 104744310.45 24853.36
Total 994523050.19 2195674759.81 2809081694.66 381116115.34
(3) Presentation of defined contribution plan
Unit: CNY
Item Opening Balance Increase in the Decrease in theCurrent Period Current Period Closing Balance
1. Basic endowment
insurance 2271970.61 204594294.98 204736819.22 2129446.37
2. Unemployment
insurance premiums 600857.46 9257020.25 9314404.62 543473.09
3. Payment of
enterprise annuity 64357923.89 62097397.49 2260526.40
Total 2872828.07 278209239.12 276148621.33 4933445.86
33. Taxes Payable
Unit: CNY
Item Closing Balance Opening Balance
VAT 33565462.60 35336077.77
Corporate income tax 108932338.67 78942359.45
Individual income tax 4697011.44 6889857.47
Urban maintenance and
construction tax 2455201.98 3432985.44
Property tax 9561184.16 10465370.93
Land use tax 4454304.27 4719417.56
Education surcharges 1753715.70 5736405.00
Other taxes 21088285.63 21751387.60
Total 186507504.45 167273861.22
34. Non-Current Liabilities Due Within One Year
Unit: CNY
Item Closing Balance Opening Balance
Lease liabilities due within one
year 6132248.21 6293750.24
Estimated liabilities due within one
year 422302977.50 519599645.37
Total 428435225.71 525893395.61
35. Other Current Liabilities
Unit: CNY
Item Closing Balance Opening Balance
Output VAT to be transferred 35988525.01 66560308.63
Total 35988525.01 66560308.63
36. Long-term Debts
(1) Classification of long-term borrowings
Unit: CNY
Item Closing Balance Opening Balance
Credit loans 136000000.00 136000000.00
Total 136000000.00 136000000.00
Explanation of classification of long-term borrowings: The Company’s indirect controlling shareholder China
FAW Group Co. Ltd. provided state-owned capital operation budget funds to the Company through entrusted
loans and entered into an entrusted loan agreement in the amount of CNY 136 million.
37. Lease Liabilities
Unit: CNY
Item Closing Balance Opening Balance
Lease payment 6682528.69 8138171.16
Unrecognized financing costs -95501.32 -154311.43
Reclassified to non-current liabilities
due within one year -6132248.21 -6293750.24
Total 454779.16 1690109.49
38. Long-term Employee Compensation Payable
(1) Long-term employee compensation payable
Unit: CNY
Item Closing Balance Opening Balance
I. Post-employment welfare - net liabilities
of defined benefit plan 609467556.53 625080000.00
II. Termination benefits 76251154.26 91732589.92
Long-term employee compensation payable
due within one year -54266902.55 -86329871.90
Total 631451808.24 630482718.02
39. Provisions
Unit: CNY
Item Closing Balance Opening Balance Reason
Pending litigation 65741931.44 52822772.39 Contract disputes
Product quality assurance 617934607.65 586381172.71 Expenses for returnreplacement and repair
Others 17226995.29 29476995.29 Social security expensesfor dispatched workers
etc.Total 700903534.38 668680940.39
40. Deferred Income
Unit: CNY
Item Opening Balance Increase in the Decrease in theCurrent Period Current Period Closing Balance Reason
Gove
rnme
nt 2846844806.70 87787809.00 178919888.48 2755712727.22
subsi
dies
Total 2846844806.70 87787809.00 178919888.48 2755712727.22
41. Share Capital
Unit: CNY
Increase/Decrease (+/-)
Share
Opening Balance Issue of Bonus Transferred Closing BalanceNew Shares from Others SubtotalShares Accumulati
on Fund
Total
shares 4921280975.00 4921280975.00
42. Capital Reserves
Unit: CNY
Decrease
Item Opening Balance Increase in the in theCurrent Period Current Closing Balance
Period
Capital premium (stock
premium) 10956841896.36 10956841896.36
Other capital reserves 999070613.80 949361.64 1000019975.44
Total 11955912510.16 949361.64 11956861871.80
43. Other Comprehensive Income
Unit: CNY
Amount Incurred in Current Period
Less:
Current
Less: Current
Retained
Profits or Losses
Earnings
Amount Incurred Transferred from Less: After-tax Amount
Item Opening Balance Transferred After-tax Amountbefore Income Tax Other Income Attributable to Closing Balance
from Other Attributable to
in the Current Comprehensive Tax Minority
Comprehens Parent Company
Period Income Recorded Expenses Shareholders
ive Income
in the Previous
Recorded in
Period
the Previous
Period
I. Other comprehensive
incomes that cannot be
-281194953.76 -148141843.72 -148141843.72 -429336797.48
reclassified into profits or
losses
Including: changes arising
from re-measurement of -36050000.00 -36050000.00
the defined benefit plan
Other comprehensive
incomes that cannot be
reclassified into profit or 24931884.64 -5164736.92 -5164736.92 19767147.72
loss under the equity
method
Changes in fair value of
investment in other equity -270076838.40 -142977106.80 -142977106.80 -413053945.20
instruments
II. Other comprehensive
incomes that will be
-106093770.87 -22493313.61 -19440661.38 -3052652.23 -125534432.25
reclassified into profits or
losses
Including: other
comprehensive incomes -5357375.79 -5357375.79
that can be reclassified
into profits or losses
under the equity method
Cash flow hedging
-353121.80 -353121.80 -353121.80
reserve
Translation difference in
foreign currency financial -100736395.08 -22140191.81 -19087539.58 -3052652.23 -119823934.66
statements
Total other
-387288724.63 -170635157.33 -167582505.10 -3052652.23 -554871229.73
comprehensive incomes
44. Special Reserves
Unit: CNY
Item Opening Balance Increase in the Decrease in theCurrent Period Current Period Closing Balance
Work safety cost 243304714.89 8627113.68 11335499.69 240596328.88
Total 243304714.89 8627113.68 11335499.69 240596328.88
45. Surplus Reserve
Unit: CNY
Item Opening Balance Increase in the Decrease in theCurrent Period Current Period Closing Balance
Statutory surplus
reserve 2908076376.30 2908076376.30
Discretionary
surplus reserves 297526491.71 297526491.71
Total 3205602868.01 3205602868.01
46. Undistributed Profits
Unit: CNY
Item Current Period Previous Period
Undistributed profits at the end of the
previous period before adjustment 6532766397.35 6055339906.81
Undistributed profits at the beginning of
the current period after adjustment 6532766397.35 6055339906.81
Add: net profit attributable to owners of
parent company in the current period 306465407.39 19655810.39
Less: Common stock dividends payable 221457643.87 246064048.75
Undistributed profits at the end of the
period 6617774160.87 5828931668.45
Details of adjustment to undistributed profits at the beginning of the period:
1) The retroactive adjustment of the Accounting Standards for Business Enterprises and its relevant new
regulations impacts the opening undistributed profit by CNY 0.00.
2) The changes in accounting policies impact the opening undistributed profit by CNY 0.00.
3) The correction of major accounting errors impacts the opening undistributed profit by CNY 0.00.
4) The change in combination scope caused by the same control impacts the opening undistributed profit by
CNY 0.00.
5) Other adjustments affect the opening undistributed profit by CNY 0.00 in total.
47. Operating Revenue and Operating Cost
Unit: CNY
Amount Incurred in Current Period Amount Incurred in the Previous Period
Item
Income Cost Income Cost
Main
business 37425917693.36 35425562629.21 27347477621.24 26277912207.22
Other 145043471.12 92756969.99 731227436.83 562650278.31
business
Total 37570961164.48 35518319599.20 28078705058.07 26840562485.53
Other description
Information related to transaction price allocated to remaining performance obligations: As of the end of the
reporting period the revenue corresponding to performance obligations under contracts signed but not yet
performed or fully performed amounted to CNY 611094395.39 of which CNY 305547197.70 is expected to
be recognized as revenue in 2026 and CNY 305547197.69 is expected to be recognized as revenue in 2027.
48. Taxes and Surcharges
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Urban maintenance and
construction tax 8141854.91 26376149.77
Education surcharges 2977117.19 18229908.19
Property tax 41986937.41 38494307.30
Land use tax 21177594.69 21474951.70
Vehicle and vessel use tax 30503.28 29602.64
Stamp duty 41654951.32 34150809.65
Others 690557.97 147323.06
Total 116659516.77 138903052.31
49 Administrative Expenses
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Employee compensation 410674292.57 418204175.92
Depreciation cost 64424344.28 43027324.67
Amortization of intangible assets 30443111.80 36133463.83
Information system service fee 23212938.00 10809383.60
Others 70272239.70 97792391.36
Total 599026926.35 605966739.38
50. Sales Expenses
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Employee compensation 296702308.39 250320067.23
Packing cost 96476075.68 52202077.34
Travel expense 40324579.95 29863895.30
Rental fee 38299418.87 31314967.40
Storage fee 34897572.61 34918642.20
Others 67570455.80 73422786.64
Total 574270411.30 472042436.11
51. R&D Expenses
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Employee compensation 637458890.99 599512737.98
Depreciation and amortization 142338767.68 120745264.01
Material expenses 50549967.15 66118813.01
Others 100952087.13 98520880.04
Total 931299712.95 884897695.04
52 Financial Expenses
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Interest income -236100916.21 -255428034.69
Exchange gain or loss 99936740.41 55468039.40
Others -29242633.82 -52889228.30
Total -165406809.62 -252849223.59
53. Other Income
Unit: CNY
Sources of other income Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Government subsidies 310602471.01 311937333.71
Additional Input VAT Credit 85233196.13 210671420.57
Commission for withholding
individual income tax 1565833.69 2026313.12
Others 219834.01
Total 397621334.84 524635067.40
54. Investment Income
Unit: CNY
Item Amount Incurred in Current Amount Incurred in thePeriod Previous Period
Income from long-term equity investments
accounted for using the equity method 4716865.18 18178157.63
Investment income from held-for-trading
financial assets during the holding period 20561511.39
Others -34425408.62 -48294017.40
Total -9147032.05 -30115859.77
55. Credit Impairment Loss
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Bad debt losses of notes receivable 662386.03 7417.20
Bad debt losses of accounts -35886475.30 -19625895.12
receivable
Bad debt losses of other
receivables 1900044.65 -2372431.37
Bad debt losses of long-term
receivables -15554114.71 -8664796.70
Total -48878159.33 -30655705.99
56. Impairment Loss on Assets
Unit: CNY
Item Amount Incurred in Current Amount Incurred in thePeriod Previous Period
I. Inventory falling price loss and contract
performance cost impairment loss -101375760.47 -151749513.50
II. Loss from contractual asset impairment 31521.58 141287.43
Total -101344238.89 -151608226.07
57. Income from Assets Disposal
Unit: CNY
Sources of Income from Assets Amount Incurred in the Previous
Disposal Amount Incurred in Current Period Period
Gains from disposal of fixed assets -5427510.07 99547161.36
Gains or losses from disposal of
intangible assets -81858.04 55078800.72
Others -3475.68 -11273.34
Total -5512843.79 154614688.74
58. Non-operating Income
Unit: CNY
Item Amount Incurred in Amount Incurred in the
Amount Included in
Current Period Previous Period Current Non-recurringProfits and Losses
Gains from damage and
retirement of non-current 87391.68 169347.64 87391.68
assets
Write-off of debts 1436052.46 2799051.01 1436052.46
Income from compensation
liquidated damages and fines 12017915.83 9348535.01 12017915.83
Others -3171733.74 -992780.31 -3171733.74
Total 10369626.23 11324153.35 10369626.23
59. Non-operating Expenses
Unit: CNY
Item Amount Incurred in Amount Incurred in the
Amount Included in
Current Period Previous Period Current Non-recurringProfits and Losses
Donation 100000.00 50000.00 100000.00
Losses from damage and
retirement of non-current 49896.77 731252.92 49896.77
assets
Compensation liquidated
damages 3567029.07 246305.40 3567029.07
Others 8889.98 634979.05 8889.98
Total 3725815.82 1662537.37 3725815.82
60. Income Tax Expenses
(1) Statement of income tax expenses
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Current income tax expenses -99636305.10 37702597.83
Deferred income tax expense -212856638.81
Total -99636305.10 -175154040.98
(2) Adjustment process of accounting profits and income tax expenses
Unit: CNY
Item Amount Incurred inCurrent Period
Total profits 236174678.72
Income tax expense calculated at statutory/applicable tax rate 59043669.68
Effect of different tax rates applied to subsidiaries -59220898.31
Effects of deductible temporary differences or deductible losses of deferred
income tax assets unrecognized in the current period 1219904.63
Profit or loss of joint ventures and associated enterprises calculated by equity
method -1183040.77
Tax effect of additional deduction for research and development expenses -96915571.56
Effect of using deductible losses and deductible temporary differences for which
deferred tax assets were not recognized in previous periods -2580368.77
Income tax expenses -99636305.10
61. Other Comprehensive Income
Refer to Note 43 to VII “Notes to Consolidated Financial Statements” in Section VIII “Financial Report”.
62. Notes to the Cash Flow Statement
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Government subsidies received 113554223.11 247352138.68
Bank interest 598021461.70 299977105.90
Other current accounts 519891692.52 181860797.00
Total 1231467377.33 729190041.58
Other cash paid related to operating activities
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the Previous
Period
Out-of-pocket expenses 150570061.90 596122774.88
Current account 726076301.53 555829293.70
Donations 100000.00 50000.00
Total 876746363.43 1152002068.58
(2) Cash related to investing activities
Cash received from other investment activities
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Inflows from maturity of time
deposits 400000000.00
Total 400000000.00
Cash received from significant investing activities
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Withdrawal of structured deposits 19281000000.00 22200000000.00
Total 19281000000.00 22200000000.00
Other cash paid related to investing activities
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Fixed deposits 300000000.00
Total 300000000.00
Cash paid for important investing activities
Unit: CNY
Item Amount Incurred in Current Amount Incurred in the PreviousPeriod Period
Cash paid for establishment of joint
venture Diyi AESC New Energy Power 12250000.00
Technology (Wuxi) Co. Ltd.Purchase of structured deposits 19281000000.00 22200000000.00
Total 19293250000.00 22200000000.00
(3) Cash related to financing activities
Other cash paid related to financing activities
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Principal and interest of lease
liabilities 806322.16 1227805.50
Total 806322.16 1227805.50
Changes in liabilities arising from financing activities
□Applicable□Not applicable
63. Supplementary Information to Cash Flow Statement
(1) Supplementary information to cash flow statement
Unit: CNY
Supplementary Information Amount in the Current Amount of thePeriod Previous Period
1. Reconciliation of net profit to cash flows from operating
activities:
Net Profit 335810983.82 40867494.56
Add: impairment provision of assets 150222398.22 182263932.06
Depreciation of fixed assets depletion of oil and gas assets
and productive biological assets 797365324.47 812466551.98
Depreciation of right-of-use asset 583258.67 2018679.42
Amortization of intangible assets 69206420.47 50497998.86
Amortization of long-term deferred expenses
Losses/gains on disposal of fixed assets intangible assets
and other long-term assets (gains expressed as “-”) 5512843.79 -154614688.74
Loss from retirement of fixed assets (incomes to be listed
with “-”) 49896.77 731252.92
Loss from changes in fair value (incomes to be listed with
“-”)
Financial expenses (incomes to be listed with “-”) 340061805.70 -176988531.24
Investment losses (incomes to be listed with “-”) 9147032.05 30115859.77
Decrease of deferred income tax assets (increase to be
listed with “-”) -122204889.85 -219435316.21
Increases of deferred income tax liabilities (decrease to be
listed with “-”) -735.43 6617429.24
Decrease in inventories (increase to be listed with “-”) -3410683894.01 -2152169519.08
Decrease in operating receivables (increase to be listed
with “-”) -1220484655.99 -2363012740.41
Increase in operating items payable (decrease to be listed
with “-”) 9616827743.99 11613064643.88
Others -93840465.49 -37134026.30
Net cash flows from operating activities 6477573067.18 7635289020.71
2. Major investment and financing activities not related to cash
deposit and withdrawal:
Conversion of debt into capital
Convertible corporate bonds within one year
Fixed assets acquired under financial lease
3. Net changes in cash and cash equivalents:
Closing balance of cash 25973732268.01 26622889891.23
Less: opening balance of cash 19663237066.02 19391201104.68
Add: ending balance of cash equivalents
Less: opening balance of cash equivalents
Net increase in cash and cash equivalents 6310495201.99 7231688786.55
(2) Composition of cash and cash equivalents
Unit: CNY
Item Closing Balance Opening Balance
I. Cash 25973732268.01 19663237066.02
Including: cash on hand 1605480.61 1828617.96
Bank deposits readily available for
payment 25972126787.40 19661407007.16
Other monetary funds available for
payment on demand 1440.90
II. Closing balance of cash and cash
equivalents 25973732268.01 19663237066.02
64. Foreign Currency Monetary Items
(1) Foreign currency monetary items
Unit: CNY
Foreign Currency
Item Balance at the End of the Exchange Rate Closing Balance
Period Converted into CNY
Monetary capital 1320272389.23
Including: USD 51354339.20 6.7814 348254750.76
EUR 10805314.77 7.7671 83925960.35
HKD
Rand 1851509311.00 0.4173 772588905.07
Shilling 33111970743.38 0.0026 86038081.37
Japanese Yen 78051576.00 0.0420 3281678.51
Rial 14462556.99 1.8104 26183013.17
Accounts receivable 2265226003.57
Including: USD 288718977.35 6.8081 1965615257.64
EUR
HKD
Shilling 15733398518.91 0.0026 40881632.58
EUR 4597904.00 7.7671 35712380.16
Rand 534459601.10 0.4173 223016733.19
Long-term loans
Including: USD
EUR
HKD
Other receivables 48331784.17
Including: USD 7036297.52 6.8109 47923518.78
Shilling 38272145.67 0.0026 99446.27
EUR 39759.90 7.7671 308819.12
Prepayments 8171343.40
Including: USD 200827.67 6.8109 1367817.18
Shilling 2079347558.70 0.0026 5402972.71
Rand 636606.78 0.4173 265640.22
Rial 626891.96 1.8104 1134913.29
Accounts payable 874357433.25
Including: USD 114901802.16 7.1150 817525137.80
Shilling 31414666.33 0.0026 81627.81
Rand 40683033.76 0.4173 16977029.99
EUR 83500.00 7.7671 648552.85
Rial 21612486.77 1.8103 39125084.80
Other payables 70507970.99
Including: USD 8385.72 6.8109 57114.30
Rand 167683799.62 0.4173 69974449.58
EUR 59175.81 7.7671 459624.43
Japanese Yen 399160.00 0.0420 16782.68
Contract liabilities 684859818.99
Including: Shilling 7504997795.52 0.0026 19500971.90
EUR 6687449.03 7.9470 53145039.59
Rial 303250.00 1.8104 548998.04
USD 88121484.22 6.9412 611664809.46
(2) The nature of the lack of exchangeability of a currency and its financial impact the spot exchange
rate adopted and its estimation process and the risks faced by the Company due to the lack of
exchangeability of the currency
□Applicable□Not applicable
(3) Description of overseas operating entities including the disclosure of main overseas business place
recording currency and selection basis or changes in the recording currency (if any) for important
overseas operating entities.□Applicable□Not applicable
(4) The lack of exchangeability between the functional currency of a foreign operation and the
presentation currency of the Company
□Applicable□Not applicable
65. Lease
(1) The Company acting as the lessee
□Applicable □Not applicable
Variable lease payments are not included in the measurement of lease liabilities
□Applicable□Not applicable
Lease expenses for simplified short-term leases or low-value asset leases
□Applicable □Not applicable
Unit: CNY
Item Amount incurred from January to June 2026
Interest expense on lease liabilities 2064174.35
Short-term lease expenses under simplified treatment included in
the cost of related assets or current profit or loss 13594148.22
Total cash outflow related to leases 806322.16
Circumstances involving sale and leaseback transactions
(2) The Company acting as the lessor
Operating lease with the Company acting as the lessor
□Applicable □Not applicable
Unit: CNY
Including: Income Related to Variable
Item Rental Income Lease Payments Not Included in the
Lease Receipts
Operating lease income 13780619.35
Total 13780619.35
Financing lease with the Company acting as the lessor
□Applicable□Not applicable
Yearly undiscounted lease receipts for the next five years
□Applicable□Not applicable
Reconciliation of Undiscounted Lease Receivables and Net Investment in Leases
(3) Gains and losses recognized from sales of finance lease as a manufacturer or distributor
□Applicable□Not applicable
VIII. R&D Expenditures
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Including: Expensed R&D
expenditure 931299712.95 884897695.04
Capitalized R&D
expenditure 67706002.22 116913852.20
1. R&D Projects Eligible for Capitalization
Unit: CNY
Increase in the Current
Period Decrease in the Current Period
Item Opening Balance ClosingInternal Recognized as Transferredto Current BalanceDevelopment Others Intangible
Expenditures Assets Profits andLosses
A2205 49477941.90 5978250.98 55456192.88
A2207 64515629.58 7751673.06 72267302.64
A2208 55036742.99 7245733.65 62282476.64
A2305 70760960.41 11152577.95 80754982.54 1158555.82
A2307 67539811.96 1161132.57 68700944.53
A2308 71223024.43 7924220.36 79147244.79
L126 49796992.67 49796992.67
L2405 22390692.74 10219667.28 32610360.02
T2208 51168342.19 3624925.59 54171020.27 622247.51
T2209 14557788.58 -5.80 14557782.78
T2303 1611856.86 1611856.86
T2402 778994.99 778994.99
Z2407 31129373.52 896536.27 31651686.58 374223.21
Z2408 115503.13 115503.13
Z2409 12415548.79 157949.49 12548050.27 25448.01
Z2431 464306.26 464306.26
Z2442 63045868.04 6847966.44 69893834.48
Z2443 15656761.59 3367583.24 19024344.83
Z2444 797981.75 797981.75
Total 641106331.24 67706002.22 196987859.17 511824474.29
Significant capitalized R&D projects
Expected
Item R&D Expected Completion
Generation Time Point of
Progress Time Method of Capitalization
Specific Basis for
Economic Starting Capitalization Starting
Benefits
Being adopted by
A2205 Product Friday October 1 2027 Production Friday December 1 consideration andvalidation and sales 2023 decision-making at the
project review meeting
Being adopted by
A2207 Product Friday October 1 2027 Production Sunday January 1 consideration andvalidation and sales 2023 decision-making at the
project review meeting
Being adopted by
A2208 Product Production Sunday January 1 consideration andvalidation Friday October 1 2027 and sales 2023 decision-making at the
project review meeting
Being adopted by
A2305 SOP Tuesday December 1 Production Wednesday March consideration and2026 and sales 1 2023 decision-making at the
project review meeting
Being adopted by
A2307 Productvalidation Friday January 1 2027
Production Wednesday March consideration and
and sales 1 2023 decision-making at the
project review meeting
Being adopted by
A2308 Product Friday January 1 2027 Production Wednesday March consideration andvalidation and sales 1 2023 decision-making at the
project review meeting
Being adopted by
T2208 SOP Thursday October 1 Production Sunday January 1 consideration and2026 and sales 2023 decision-making at the
project review meeting
Being adopted by
Z2407 SOP Wednesday July 1 Production Thursday February consideration and2026 and sales 1 2024 decision-making at the
project review meeting
Being adopted by
Z2442 Developm Tuesday June 1 2027 Production Saturday June 1 consideration andent phase and sales 2024 decision-making at the
project review meeting
Being adopted by
T2209 SOP Wednesday July 1 Production Sunday January 1 consideration and2026 and sales 2023 decision-making at the
project review meeting
Being adopted by
L126 Product Sunday August 30 Production Sunday April 7 consideration andvalidation 2026 and sales 2024 decision-making at the
project review meeting
IX. Changes in Consolidation Scope
1. Changes in Consolidation Scope for Other Reasons
Explanation of other changes in the scope of consolidation (e.g. establishment of new subsidiaries liquidation
of subsidiaries etc.) and related information:
On March 11 2026 the Company invested in the establishment of Jiefang Uzbekistan Co. Ltd.On April 22 2026 the Company invested in the establishment of Jiefang Indonesia Co. Ltd. and Jiefang
Vietnam Co. Ltd.X. Equity in Other Entities
1. Equity in Subsidiaries
(1) Composition of the enterprise group
Unit: CNY
Share Proportion
Name of Subsidiary Registered Capital Principal business Registered Nature ofPlace Address Business Way of AcquisitionDirect Indirect
FAW Jiefang Business
Automotive Co. Ltd. 10803012510.01 Changchun Changchun
Vehicle
manufacturing 100.00% combination undercommon control
For other subsidiaries please refer to Section VIII Financial Report III. Basic Information of the Company.
2. Equities in Joint Ventures or Associated Enterprises
(1) Excess losses incurred by joint ventures or associated enterprises
Unit: CNY
Unrecognized Losses Unrecognized Losses inthe Current Period (or Net Accumulated UnrecognizedName of Joint Ventures or Associated Enterprises Accumulated in Prior
Periods Profit Shared in the
Losses at the End of the
Current Period) Current Period
Suzhou Zhito Technology Co. Ltd. 212525020.51 12905169.61 225430190.12
SmartLink 40848272.30 -3832762.74 37015509.56
Diyi AESC New Energy Power Technology (Wuxi) Co. Ltd. 1387840.30 1387840.30
XI. Government subsidies
1. Government Subsidies Are Recognized at the Receivable Amount at the End of the Reporting Period
□Applicable□Not applicable
Reasons for failing to receive the expected amount of government subsidies at the expected time point
□Applicable□Not applicable
2. Liability Items with Government Subsidies
□Applicable □Not applicable
Unit: CNY
Amount
Account New Government Recognized in Amount Transferred to
Related to
Item Opening Balance Grants Received Non-Operating Other Income in the
Other Closing Balance Assets /
during the Period Income in the Current Period Changes Related to
Current Period Income
Deferred
income 2846844806.70 87787809.00 178919888.48 2755712727.22
3. Government Subsidies Are Included in the Current Profit or Loss
□Applicable □Not applicable
Unit: CNY
Account Item Amount Incurred in Current Period Amount Incurred in the Previous Period
Government subsidies 310602471.01 311937333.71
XII. Risks Related to Financial Instruments
1. Various Risks Arising from Financial Instruments
The Company is exposed to various financial risks in the course of its operations: credit risk liquidity risk
and market risk (including exchange rate risk interest rate risk and other price risks). These financial risks and
the risk management policies adopted by the Company to mitigate these risks are described below:
(1) Credit risk
Credit risk is the risk of financial loss to the Company arising from the failure of a counterparty to meet its
contractual obligations.The Company’s credit risk primarily arises from cash and cash equivalents accounts receivable other
receivables non-current assets due within one year long-term receivables other equity instrument investments
notes payable accounts payable other payables non-current liabilities due within one year and lease liabilities.Details of each financial instrument have been disclosed in relevant notes.The Company’s cash and cash equivalents are primarily bank deposits placed with state-owned banks and
other large and medium-sized listed banks with sound reputations and high credit ratings. The Company
considers that there is no significant credit risk and that material losses due to bank defaults are highly unlikely.In addition for notes receivable accounts receivable financing receivables contract assets and other
receivables the Company has established policies to control credit risk exposure. The Company assesses the
creditworthiness of customers and sets appropriate credit periods based on their financial condition the
availability of third-party guarantees credit history and other factors such as current market conditions. The
Company monitors the credit records of customers regularly and take measures such as written reminders
shortening of credit period or cancellation of credit period for customers with poor credit records so as to
ensure that the overall credit risk is within a controllable range.
(2) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations that are settled
by delivering cash or other financial assets.The Company’s policy is to ensure that it has sufficient cash to repay debts as they fall due. Liquidity risk
is managed centrally by the Company’s finance department. The finance department ensures that the Company
maintains sufficient funds to meet its obligations under all reasonably foreseeable circumstances by monitoring
cash balances readily marketable securities and rolling 12-month cash flow forecasts. The Company also
continuously monitors compliance with borrowing agreement covenants and maintains commitments from
major financial institutions to provide sufficient standby funding to meet short-term and long-term liquidity
requirements.The sources of the Company’s working capital include funds generated from operating activities bank
loans and other loans. As of June 30 2026 the Company had unused bank credit facilities of CNY 35.209
billion.
(3) Market risk
Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to
changes in market prices including exchange rate risk interest rate risk and other price risks.* Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates.Fixed-rate and floating-rate interest-bearing financial instruments expose the Company to fair value
interest rate risk and cash flow interest rate risk respectively. The Company determines the appropriate mix of
fixed-rate and floating-rate instruments based on market conditions and maintains this mix through regular
review.* Exchange rate risk
Exchange rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates.The Company’s foreign exchange risk exposure is primarily related to the euro. Except for assets held by
subsidiaries established in Austria Tanzania and South Africa that are denominated in euros shillings and
rand respectively the Company’s main business activities are priced and settled in CNY. The balance of the
Company’s assets and liabilities were all in CNY as of June 30 2026 except a small amount of monetary
capitals including the balance in EUR. Therefore the Company does not believe that the exchange rate risk
faced is significant.* Other price risk
Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices other than those arising from exchange rate risk or interest rate risk.The Company’s exposure to other price risk arises primarily from investments in equity instruments.XIII. Disclosure of Fair Value
1. Fair Value of Assets and Liabilities Measured at Fair Value at the End of the Period
Unit: CNY
End-of-Period Fair Value
Item Level I Fair Value Level II Fair Value Level III Fair
Measurement Measurement Value TotalMeasurement
I. Ongoing fair value
measurement -- -- -- --
Equity instruments 67726054.80 67726054.80
Accounts receivable
financing 4360450827.39 4360450827.39
Derivative financial
assets 1977854.70 1977854.70
Total assets are
measured at fair value 67726054.80 4362428682.09 4430154736.89
on an ongoing basis
II. Non-ongoing fair
value measurement -- -- -- --
2. Basis for Determination of Market Prices for Continuous and Non-Continuous Level I Measurement
Items at Fair Value
The Company’s other equity instrument investments measured at Level 1 fair value comprise listed equity
securities with fair value determined based on quoted market prices.3. Valuation Techniques and Qualitative and Quantitative Information about Key Parameters of Items
Subject to Continuous and Non-Continuous Level II Fair Value Measurement
The receivables financing held by the Company consists of notes receivable that it intends to hold until maturity
or endorse. Given their short remaining terms their carrying amounts approximate their fair values.The derivative financial assets held by the Company consist of forward foreign exchange contracts measured at
fair value. In accordance with the principle of prudence the Company takes the quotations of the transacting
banks as valuation inputs and recognizes changes in the fair value of the forward foreign exchange contracts
based on the difference between the exchange rates quoted by the banks at the balance sheet date and the
contracted rates. During the life of the contracts the counterparty credit risk did not change significantly which
had no material impact on the assessment of the hedge effectiveness of the derivatives designated in hedging
relationships or on other financial instruments measured at fair value.
4. Valuation Techniques and Qualitative and Quantitative Information on Key Parameters for Items
Measured at Level 3 Fair Value on a Recurring and Non-Recurring Basis
Any input value (non-observable input value) not based on observable market data is used for assets or
liabilities.XIV. Related Parties and Related Party Transactions
1. Parent Company of the Company
Shareholding Proportion of
Name of Parent Registered Nature of Proportion of Voting Rights
Company Address Business Registered Capital the Parent of the ParentCompany in Company in the
the Company Company
Production and
FAW Changchun sales ofautomobiles and CNY 78 billion 62.19% 62.19%
parts
Description of the Company’s Parent Company
The ultimate controlling party of the Company is China FAW Group Co. Ltd.Other notes: N/A
2. Subsidiaries of the Company
For details of subsidiaries of the Company please refer to Article 1 in X “Equity in Other Entities” of Section
VIII “Financial Report”.
3. Information on Joint Ventures and Associated Enterprises of the Company
For details of important joint ventures or associated enterprises of the Company please refer to Article 2 in X
“Equity in Other Entities” of Section VIII “Financial Report”.Other joint ventures or associated enterprises that have related party transactions with the Company in the
current period or in the previous period resulting in balance are as follows:
Name of Joint Ventures or Associated Enterprises Relationship with the Company
Changchun Automotive Test Center Co. Ltd. Associated enterprise of the Companythe same ultimate controlling party
Sanguard Automobile Insurance Co. Ltd. Associated enterprise of the Companythe same ultimate controlling party
FAW Changchun Baoyou Jiefang Steel Processing and Distribution
Co. Ltd. Associated enterprise of the Company
FAW Changchun Ansteel Jiefang Steel Processing and Distribution
Co. Ltd. Associated enterprise of the Company
Changchun Wabco Automotive Control System Co. Ltd. Associated enterprise of the Company
Suzhou Zhito Technology Co. Ltd. Associated enterprise of the Company
SmartLink Associated enterprise of the Company
FAW Jiefang Fujie (Tianjin) Technology Industry Co. Ltd. Associated enterprise of the Company
Jiefang Times New Energy Technology Co. Ltd. Joint venture of the Company
Foshan Diyiyuansu New Energy Technology Co. Ltd. Associated enterprise of the Company
4. Information on Other Related Parties
Names Of Other Related Parties Relationship between Other RelatedParties and the Company
FAW Bestune Auto Co. Ltd. The same ultimate controlling party
FAW Harbin Light-Automobile Co. Ltd. The same ultimate controlling party
FAW Foundry Co. Ltd. The same ultimate controlling party
FAW Forging (Jilin) Co. Ltd. The same ultimate controlling party
FAW Mold Technology (Changchun) Co. Ltd. The same ultimate controlling party
China FAW Group Import & Export Co. Ltd. The same ultimate controlling party
Faw (Dalian) Trade and Logistics Co. Ltd The same ultimate controlling party
FAW (Eastern Europe) Co. Ltd. The same ultimate controlling party
FAW Qixin Power (Changchun) Technology Co. Ltd. The same ultimate controlling party
Qiming Information Technology Co. Ltd. The same ultimate controlling party
FAW Asset Management Co. Ltd. The same ultimate controlling party
Changchun FAW International Tendering Co. Ltd. The same ultimate controlling party
FAW Chuxing Technology Co. Ltd. The same ultimate controlling party
FAW Zhixing Technology (Nanjing) Co. Ltd. The same ultimate controlling party
FAW Fuhua Ecological Co. Ltd. The same ultimate controlling party
FAW Changchun Automobile Trading Service Co. Ltd. The same ultimate controlling party
FAW Automotive Culture (Changchun) Co. Ltd. The same ultimate controlling party
FAW Southern (Shenzhen) Technology Development Co. Ltd. The same ultimate controlling party
Cinda FAW Commercial Factoring Co. Ltd. Other related parties
The Ninth Institute of Project Planning & Research of China Machinery
Industry (FIPPR) Other related parties
Changchun FAW United Casting Co. Ltd. Other related parties
Changchun Yidong Clutch Co. Ltd. Other related parties
Fawer Auto Parts Co. Ltd. Other related parties
China Unicom Smart Connection Technology Limited Other related parties
FAW-FINDREAMS New Energy Technology Co. Ltd. Other related parties
Changchun FAWSN Group Co. Ltd. Other related parties
China Unicom FAW Communication Technology (Changchun) Co. Ltd. Other related parties
United Fuel Cell System Research and Development (Beijing) Co. Ltd. Other related parties
Changchun FAWAY Group Automobile Components Co. Ltd. Other related parties
Jilin Auto City Garden Hotel Co. Ltd. Other related parties
FAW Jingye Engine Co. Ltd. Other related parties
Dalian Qingfeng Bus Co. Ltd. Other related parties
Wuxi CRRC New Energy Automobile Co. Ltd. Other related parties
FAW Changchun Comprehensive Utilization Co. Ltd. Other related parties
FAW Changchun Yanfeng Visteon Electronics Co. Ltd. Other related parties
Changchun Sodexo Management Service Co. Ltd. Other related parties
Shandong Pengxiang Automobile Co. Ltd. Other related parties
Hongqi Intelligent Mobility Technology (Beijing) Co. Ltd.
(Consolidated) Other related parties
Grammer Vehicle Parts (Harbin) Co. Ltd. Other related parties
China Logistics Group Automotive Supply Chain Technology Co. Ltd. Other related parties
FAW-HONGTA Yunnan Automobile Co. Ltd. Other related parties
5. Related Transactions
(1) Related transactions of purchasing or selling goods and providing or receiving labor services
Statement of goods purchase/reception of labor services
Unit: CNY
Is the
Related Content of Approved
Parties Related
Amount Incurred in
Current Period Transaction
Transaction Amount Incurred in
Transaction Amount Amount the Previous PeriodExceeded
The same Purchases of
ultimate goods receipt
controlling of services 743653342.52 2317970000.00 No 1007086334.07
party and energy
Other Goods
related purchase and
parties reception of
2884438196.89 7725260000.00 No 2077962733.85
labor services
Statement of goods sales/rendering of services
Unit: CNY
Related Parties Content of Related Amount Incurred in Amount Incurred in theTransaction Current Period Previous Period
The same ultimate
controlling party Sales of goods 187831373.53 371845968.65
Other related parties Sales of goods 2797042742.52 1690043424.43
Description of related-party transactions involving the purchase and sale of goods and the provision and receipt
of services
(2) Related Lease
The Company as the lessor:
Unit: CNY
Lease Income Lease Income
Name of Lessee Type of Leased Assets Recognized in the Recognized in the
Current Period Previous Period
Changchun Automotive Test Center Houses Buildings and
6279778.09
Co. Ltd. Land
FAW Changchun Baoyou Jiefang Steel
Houses and Buildings 1056155.96 1056155.96
Processing and Distribution Co. Ltd.FAW Houses and Buildings 774875.72 774875.72
Shandong Pengxiang Automobile Co.Houses and Buildings 377350.46 386020.18
Ltd.Fawer Auto Parts Co. Ltd. Houses and Buildings 197702.76 197702.76
China Unicom FAW Communication Houses Buildings and
99082.56 149552.08
Technology (Changchun) Co. Ltd. Land
(3) Remuneration of key management personnel
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Remuneration of key management
personnel 2120100.00 3224900.00
(4) Other related transactions
Unit: CNY
* Interest income and interest expense
Related Parties Transaction Content Amount in the Amount of thecurrent period Previous Period
First Automobile Finance Co. Ltd. Interest income 90732345.63 38106466.96
* Equity investment
Related Parties Amount Incurred in Amount Incurred in theCurrent Period Previous Period
Diyi AESC New Energy Power Technology (Wuxi) Co. Ltd. 12250000.00
6. Receivables and Payables of Related Parties
(1) Receivables
Unit: CNY
Closing Balance Opening Balance
Project Related
Name Parties Book Balance Provision forBad Debts Book Balance
Provision for
Bad Debts
The same
Accounts ultimate
receivable controlling 2429301979.31 12234930.73 2373485964.09 10640539.79
party
Accounts Other
receivable related 1699400534.15 12859815.11 73376239.20 54981324.40parties
The same
Other ultimate
receivables controlling 495475.85 503.06 24813270.79 810080.79
party
Other Other
receivables related 287114.48 199328.70 859943.04 202749.07parties
The same
Prepayments ultimatecontrolling 221811705.79 10563447.28
party
Other
Prepayments related 56246.72 2017504.50
parties
(2) Payables
Unit: CNY
Project Name Related Parties Closing Book Balance Opening Book Balance
Accounts payable The same ultimatecontrolling party 422732470.71 480267877.30
Accounts payable Other related parties 988511645.93 1450076897.20
Other payables The same ultimatecontrolling party 86341540.20 44553599.58
Other payables Other related parties 59920271.24 38007119.73
Contract liabilities The same ultimatecontrolling party 5762033.07 9379944.33
Contract liabilities Other related parties 114590919.07 136806117.69
Accounts received in The same ultimate
advance controlling party 387437.84 149838.00
Accounts received in
advance Other related parties 328055.87 331574.66
Lease liabilities The same ultimatecontrolling party 3895408.85
Lease liabilities Other related parties 530973.45
XV. Commitments and Contingencies
1.Important Commitments
As of June 30 2026 the Company has no commitments that should be disclosed.
2. Contingencies
(1) Significant contingencies existing as of the balance sheet date
The Company has no important contingencies to be disclosed.XVI. Notes to Main Items of Parent Company’s Financial Statements
1. Other Receivables
Unit: CNY
Item Closing Balance Opening Balance
Other receivables 6180014041.31 6460014041.31
Total 6180014041.31 6460014041.31
(1) Other receivables
1) Classification of other receivables by nature
Unit: CNY
Nature Closing Book Balance Opening Book Balance
Current account 6180473047.57 6460473047.57
Total 6180473047.57 6460473047.57
2) Disclosure by aging
Unit: CNY
Aging Closing Book Balance Opening Book Balance
Within 1 year (including 1 year) 6180014041.31 6460014041.31
Over 3 years 459006.26 459006.26
4-5 years 459006.26 459006.26
Total 6180473047.57 6460473047.57
3) Disclosure by the method of provision for bad debts
Unit: CNY
Closing Balance Opening Balance
Book Balance Provision for Bad Provision for BadDebts Book Balance Debts
Category Provisio Book Value Provisi Book Value
Amount Scale Amount nProporti Amount Scale Amount
on
Propor
on tion
Including:
Provision for
bad debts
made by 6180473047.57 100.00% 459006.26 0.01% 6180014041.31 6460473047.57 100.00% 459006.26 0.01% 6460014041.31
portfolio
Including:
Aging
portfolio 6180473047.57 100.00% 459006.26 0.01% 6180014041.31 6460473047.57 100.00% 459006.26 0.01% 6460014041.31
Total 6180473047.57 100.00% 459006.26 0.01% 6180014041.31 6460473047.57 100.00% 459006.26 0.01% 6460014041.31
Name of category for which bad debt provision is accrued on a portfolio basis: aging portfolio
Unit: CNY
Closing Balance
Name
Book Balance Provision for Bad Debts Provision Proportion
Provision for bad debts made by
portfolio 6180473047.57 459006.26 0.01%
Total 6180473047.57 459006.26
Provision for bad debts based on the general model of expected credit losses:
Unit: CNY
Stage I Stage II Stage III
Provision for Bad Debts Expected Credit Losses for Expected Credit Loss in the Expected Credit Loss for the Total
the Next 12 Months Duration (Credit Impairment Entire Duration (With CreditHas Not Occurred) Impairment)
Balance as of January 01 2026 459006.26 459006.26
Balance on January 1 2026 in
the current period
Balance as of June 30 2026 459006.26 459006.26
Basis for stage division and proportion of bad debt provision
Significant book balance changes occurred in the provision for losses in the current period
□Applicable□Not applicable
4) Top five ending balances of other receivables classified by debtors
Unit: CNY
Proportion in Total
Name of Unit Nature of Payment Closing Balance Aging Ending Balance of Closing Balance of
Other Receivables Provision for Bad Debts
FAW Jiefang Automotive
Current account 6180014041.31 Within 1 year 99.99%
Co. Ltd.Customer 1 Current account 459006.26 4-5 years 0.01% 459006.26
Total 6180473047.57 100.00% 459006.26
2. Long-Term Equity Investments
Unit: CNY
Closing Balance Opening Balance
Item
Book Balance ImpairmentProvision Book Value Book Balance
Impairment
Provision Book Value
Investment in
subsidiaries 21644810397.09 21644810397.09 21612940897.09 21612940897.09
Investment in associated
enterprises and joint 191124991.43 191124991.43 191533503.96 191533503.96
ventures
Total 21835935388.52 21835935388.52 21804474401.05 21804474401.05
(1) Investment in subsidiaries
Unit: CNY
Opening Increase/Decrease in the Current Period Closing
Investee Opening Balance Balance of Closing Balance Balance of(Book Value) Impairment Additional Reduced Impairment Others (Book Value) Impairment
Provision Investment Investment Provision Provision
FAW Jiefang
Automotive Co. Ltd. 20953356596.39 20953356596.39
FAW (Africa)
Investment Co. Ltd. 329092133.22 329092133.22
FAW Jiefang Group
International 200000000.00 200000000.00
Automobile Co. Ltd.Jiefang Best Co. Ltd. 1925727.36 1925727.36
FAW Jiefang Lvdong
Recycling Technology 38566440.12 38566440.12
(Wuxi) Co. Ltd.FAW Jiefang Uni-D
Transportation
Technology (Tianjin) 90000000.00 90000000.00
Co. Ltd.Jiefang Saudi Arabia
Co. Ltd. 31869500.00 31869500.00
Total 21612940897.09 31869500.00 21644810397.09
(2) Investment in associated enterprises and joint ventures
Unit: CNY
Increase/Decrease in the Current Period
Openi Ad Re Closi
ng dit du Cha Cash ng
Balan ion ce Investment nge Dividen Impa Balan
Investee Opening Balance ce of al d Gains or Losses Adjustment to Other s in
ds and irme Ot Closing Balance ce of
(Book Value) Impai In In Recognized Comprehensive Oth Profits nt her (Book Value) Impai
rment ve ve under the Equity Income er Are Provi s rment
Provi st st Method Equ Declare Provi
sion me me ity d to Be
sion
sion
nt nt Paid
I. Joint ventures
II. Associated enterprises
Sanguard
Automob
ile 191533503.96 4755109.96 -5163622.49 191124991.43
Insurance
Co. Ltd.Subtotal 191533503.96 4755109.96 -5163622.49 191124991.43
Total 191533503.96 4755109.96 -5163622.49 191124991.43
The recoverable amount is the net amount of the fair value after deducting the disposal expenses
□Applicable□Not applicable
The recoverable amount is the present value of the expected future cash flow
□Applicable□Not applicable
3. Investment Income
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Long-term equity investment
income calculated with cost 13630000.00
method
Income from long-term equity
investments accounted for using 4755109.96 2203459.15
the equity method
Total 18385109.96 2203459.15
XVII. Supplementary Information
1. Breakdown of Non-recurring Profit or Loss of Current Period
□Applicable □Not applicable
Unit: CNY
Item Amount Description
It refers to the net loss
Profits or losses on disposal of non-current assets -5512843.79 on disposal of non-
current assets.Government subsidies included in the current profit or
loss (except those closely related to the Company’s
normal operations conforming to the State policies and
regulations and enjoyed in line with the specified 310602471.01
standards and having a continuous impact on the profit
or loss of the Company)
Gains and losses from changes in fair value of financial
assets and financial liabilities held by non-financial This refers to the
enterprises and gains and losses from disposal of investment income
financial assets and financial liabilities other than those 20561511.39 arising from the
arising from effective hedging activities related to the disposal of held-for-
Company’s normal business operations. trading financial assets.Non-operating income and expenses other than the above 6643810.41 The net non-operatingincome and expenses.Less: amount affected by income tax 58996064.81
Amount affected by minority shareholder’s equity
(after-tax) -422.30
Total 273299306.51 --
Specific conditions of other profit and loss items meeting the definition of non-recurring profit and loss:
□Applicable□Not applicable
There are no specific conditions of profit and loss items meeting definition of non-recurring profit and loss for
the Company.Explanation on defining the non-recurring profit and loss items listed in the Explanatory Announcement No.1
on Information Disclosure by Companies Issuing Securities Publicly - Non-recurring Profit and Loss as
recurring profit and loss items
□Applicable□Not applicable
2. Return on Net Assets and Earnings per Share
Weighted Earnings per Share
Profit for the Reporting Period averagereturn on Basic earnings per Share Diluted earnings per Share
equity (CNY/share) (CNY/share)
Net profit attributable to ordinary
shareholders of the Company 1.15% 0.0623 0.0623
Net profit attributable to ordinary
shareholders of the Company after
deduction of non-recurring profit 0.12% 0.0067 0.0067
and loss
3. Differences in Accounting Data under Domestic and Foreign Accounting Standards
(1) Differences in net profit and net assets between financial reports disclosed simultaneously under
International Financial Reporting Standards (IFRS) and Chinese Accounting Standards (CAS)
□Applicable□Not applicable
(2) Differences in net profit and net assets between financial reports disclosed simultaneously under
overseas accounting standards and Chinese Accounting Standards (CAS)
□Applicable□Not applicable
(3) Explanation of the reasons for accounting data differences under domestic and foreign accounting
standards shall be given and where data audited by an overseas audit authority has been adjusted based
on the differences the name of the overseas institution shall be indicated.
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