Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.FAW JIEFANG GROUPCO. LTD
Semi-annual Report 2025
August 2025
1Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Section I Important Notes Contents and Definitions
The Board of Directors and Board of Supervisors as well as directors
supervisors and senior executives of the Company guarantee that the contents
of the semi-annual report are true accurate and complete there is no false
record misleading statement or major omission and shall bear individual and
joint legal responsibilities.Li Sheng the person in charge of the Company Yu Changxin the person
in charge of the work related to accounting and Yang Li the person in charge
of the accounting organization (chief accountant) declare that they guarantee
the authenticity accuracy and completeness of the financial report in this semi-
annual report.Except for the following directors others attended the board 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
This semi-annual report involves prospective statements such as future
plans and does not constitute a substantial commitment of the Company to
investors. Investors and relevant individuals should maintain sufficient risk
awareness 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
2Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
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 does not plan to pay cash dividends or bonus shares or
convert reserves into share capital.
3Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
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 ..... 12
Section IV Corporate Governance Environment and Social Responsibility .....36
Section V Important Matters ........................ 40
Section VI Changes in Shares and Shareholders .......50
Section VII Bonds .................................. 60
Section VIII Financial Report .......................61
Section IX Other Submitted Data ....................211
4Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
List of Documents for Future Reference
(I) Financial statements were signed and sealed by the person in charge of the Company the
person in charge of accounting and the person in charge of the accounting organization (chief
accountant).(II) Originals of all company documents and announcements publicly disclosed during the
reporting period.
5Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Interpretation
Item Refers to Definition
Company the Company FAW
Refers to FAW Jiefang Group Co. Ltd.Jiefang
Jiefang Limited Refers to FAW Jiefang Automotive Co. Ltd.FAW Jiefang Group International Automobile
Jiefang Group International Refers to
Co. Ltd.FAWAfrica Refers to FAW (Africa) Investment 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 of FAW Jiefang Group Co.Board of Directors Refers to
Ltd.Shareholders’Meeting of FAW Jiefang Group
Shareholders’ meeting Refers to
Co. Ltd.Board of Supervisors of FAW Jiefang Group
Board of Supervisors Refers to
Co. Ltd.Ministry of Finance of the People’s Republic of
Ministry of Finance Refers to
China
China Securities Regulatory China Securities Regulatory Commission
Refers to
Commission (CSRC)
China Securities Depository and
Shenzhen Branch China Securities Depository
Clearing Corporation Limited Refers to
and Clearing Corporation Limited
(CSDC)
Company Law of the People’s Republic of
Company Law Refers to
China
Securities Law of the People’s Republic of
Securities Law Refers to
China
Articles of Association of FAW Jiefang Group
Articles of Association Refers to
Co. Ltd.Reporting Period Refers to January 1 2025 - June 30 2025
CNY CNY 10000 CNY 100
Refers to CNY CNY 10000 CNY 100 million
million
6Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Section II Company Profile and Main Financial Indicators
I. Company Profile
Stock abbreviation FAW Jiefang Stock code 000800
Stock exchanges on
Shenzhen Stock Exchange
which shares are listed
Chinese name of the
FAW Jiefang Group Co. Ltd.Company
Chinese abbreviation
FAW Jiefang
of the Company
English name of the
FAW Jiefang Group Co. Ltd.Company
English abbreviation
FAW Jiefang
of the Company
Legal representative
Li Sheng
of the Company
II. Contact Person and Contact Information
Secretary of the Board of Directors Securities Affairs Representative
Name Wang Jianxun Yang Yuxin
No.2259 Dongfeng Street No.2259 Dongfeng Street
Address Changchun Automobile Changchun Automobile
Development Zone Jilin Province 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. Company Contact Information
Whether the registered address office address and postal code website and e-mail address of the
Company have changed in the reporting period
□Applicable□Not applicable
7Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
The registered address office address and postal code website and e-mail address of the
Company have not changed in the reporting period please refer to the Annual Report 2024 for
details.
2. Information Disclosure and Preparation Location
Whether the information disclosure and preparation location has changed in the reporting period
□Applicable□Not applicable
There are no changes in the name and website of the stock exchange and media where the
Company discloses its semi-annual report as well as the preparation location of the Company’s
semi-annual report during the reporting period. For details please refer to the 2024 Annual Report.
3. Other Relevant Data
Whether other relevant data has changed in 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
Reasons for the retroactive adjustment or restatement
Business combination under common control
Increase/D
ecrease in
This
Reporting
Same Period of Last Year Period
This reporting period over the
Same
Period of
Last Year
Before adjustment After adjustment Afteradjustment
Operating
income (CNY) 28078705058.07 35602292639.46 36465688621.29 -23.00%
Net profit 19655810.39 478251870.50 506807530.06 -96.12%
attributable to
8Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
shareholders of
the listed
company
(CNY)
Net profit
attributable to
shareholders of
the listed
company after -376637639.18 283875823.95 283875823.95 -232.68%
deducting non-
recurring
profits and
losses (CNY)
Net cash flows
from operating
activities 7635289020.71 4240930055.62 4420911705.11 72.71%
(CNY)
Basic earnings
per Share 0.0040 0.1034 0.1096 -96.35%
(CNY/share)
Diluted
earnings per
Share 0.0040 0.1034 0.1096 -96.35%
(CNY/share)
Weighted
average return 0.08% 1.93% 2.06% Reduced
on equity by 1.89%
Increase/D
ecrease at
the End of
This
At the End of Last Year Reporting
At the End of This Period
Reporting Period over the
End of
Last Year
Before adjustment After adjustment Afteradjustment
Total assets
(CNY) 79662592787.61 72749219016.61 72749219016.61 9.50%
Net assets 26141053583.57 26317926062.66 26317926062.66 -0.67%
attributable to
9Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
shareholders of
the listed
company
(CNY)
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
In the reporting period of the Company 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
In the reporting period of the Company 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-
It refers to the net gain on
current assets (including the write-off
154614688.74 disposal of non-current
part of the provision for impairment of
assets.assets made)
Government subsidies included in the
current profit or loss (except those
closely related to the Company’s 311937333.71
normal operations conforming to the
State policies and regulations and
10Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
enjoyed in line with the specified
standards and having a continuous
impact on the profit or loss of the
Company)
The reversal of impairment
Reversal of impairment provision for
provision for receivables
receivables subject to separate 1802060.86
subject to separate
impairment test
impairment test.Non-operating income and expenses The net non-operating income
9661615.98
other than the above and expenses.Less: amount affected by income tax 81725953.01
Amount affected by minority
-3703.29
shareholder’s equity (after-tax)
Total 396293449.57
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.
11Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Section III Management Discussion and Analysis
I. Main Businesses of the Company in the Reporting Period
(I) 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 “China’s first and world-class” provider of green
and intelligent transportation solutions focusing on the main production lines insisting on
innovation-driven and reform-driven strategies and creating a leading trend. Main business
products and business model of the Company were not changed significantly in the reporting
period.(II) Industry Overview of the Company
In the first half of 2025 the market demand for medium and heavy trucks in China was about
599000 units with a year-on-year growth rate of 4.2%. The domestic traditional demand
remained basically flat. The accessible market demand for light trucks was about 321000 units
registering a year-on-year increase of 12.7%. Overseas demand witnessed its first decline in
recent years dropping by 8%. The demand for new energy vehicles reached about 160000 units
achieving a substantial year-on-year growth of 136%. Overall industry demand showed a
structural divergence characterized by stability in the domestic market a slight decline overseas
and rapid growth in new energy. Domestically due to weak demand price competition has
become even more intense.The commercial vehicle industry is experiencing moderate growth but factors such as the
competition in the saturated domestic market the race for opportunities in fragmented markets
the strategic competition in overseas exports the positioning in the transition to new energy and
12Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
the value contest of technologies and solutions are overlapping and intertwining indicating that
the industry is undergoing a stage of deep adjustment and unprecedented turbulence.The Company’s products are mainly medium and heavy trucks and light trucks. Energy
types cover diesel natural gas pure electric fuel-electric and hybrid; sales regions cover
domestic and overseas markets. Products are developed on shared platforms to meet market and
customer needs. Medium and heavy trucks include 12 main product series such as J7 J6V and
Yingzhen.(III) Operation
Since the beginning of this year competition in the commercial vehicle market has
intensified with the industry overall entering a stage of stock-based competition. Meanwhile the
energy structure is transitioning rapidly and products are showing structural differentiation
among other overlapping factors. Facing unprecedented challenges the Company pressed forward
under pressure and overcame difficulties actively planning and optimizing business strategies.Following the annual work plan firmly it fully implemented the “project-based system” and
vigorously promoted the “Seven Spirits” achieving positive results in business operations and
reform and development. In the first half of 2025 the Company maintained the leading domestic
market share for medium and heavy trucks while overseas exports effectively expanded toward a
more balanced market distribution.As of June 30 2025 the Company’s total assets amounted to CNY 79.663 billion
representing a year-on-year increase of 9.50% and the net assets attributable to shareholders of
the listed company were CNY 26.141 billion representing a year-on-year decrease of 0.67%.During the reporting period operating revenue reached CNY 28.079 billion a year-on-year
decrease of 23.00%; the net profit attributable to the parent company was CNY 20 million a year-
on-year decrease of 96.12%.Unit: CNY 100 million
13Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Total assets Net Assets Operating income Net profit attributable to
shareholders of the parent company
2024 June 2025 2024 June 2025 2024 Semi-annual 2025 Semi-annual 2024 Semi-annual 2025 Semi-annual
Note: All data in the chart are in CNY 100 million.In the second half of the year the Company will firmly implement its strategy and annual
work plan adhere to a customer-centric approach pursue excellence through innovation and
quality balance both volume and profitability and focus on “quality-driven growth” in operations.The Company will reform work styles maintain composure boost morale mobilize all
employees for a full-scale effort act with determination accelerate the reversal of all adverse
situations strive to achieve the annual business targets and secure even greater results in the final
battle of the 14th Five-Year Plan.II. Analysis of Core CompetitivenessThe Company adheres to the corporate vision of “being the most proud commercial vehicleenterprise and the most trustworthy commercial vehicle brand” the mission of “becomingChina’s first and world-class provider of green and intelligent transportation solutions andbuilding a more prosperous society”; the Company takes products and services as the main task
customers and employees as the foundation innovation and reform as the driving force; the
Company focuses on industry trends and customer needs and rapidly enhances product
competitiveness and service levels.
1. Product R&D: The Company possesses China’s most powerful independent R&Dsystem for commercial vehicles. Guided by “leading technology pioneering experienceintegrated innovation enhanced application and collaborative efficiency” the Company has built
a comprehensive independent R&D system in China covering forward-looking technologies
engines transmissions axles and complete vehicles and has formed an efficient and
14Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
collaborative R&D team of over 3000 people. The Company has the Xianhu National Key
Laboratory an Academician Workstation and the Wuxi Postdoctoral Workstation. It possesses
five core capabilities: technological innovation performance development lean design pilot
testing and experimental 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 the core technologies of world-class complete vehicles and the three major
powertrains 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 trucks in Qingdao; engine R&D bases in Wuxi and Dalian; and
advanced technology R&D departments in Steyr Austria and Munich Germany forming a global
R&D layout of “four countries and nine locations.” In recent years by accurately understanding
the demand in segmented markets the Company has successfully developed ten core product
technology advantages including fuel efficiency extended oil change intervals lightweight
design independent major components autonomous electronic control autonomous after-
treatment new energy intelligent driving long-term durability and maintenance-free features.These achievements have enabled the Company to maintain a leading position in the highly
competitive market.
2. Marketing and procurement: Adhering to customer value orientation the Company has
taken the lead in establishing a comprehensive marketing service system. The three sales
companies - Changchun Medium and Heavy Truck Qingdao Medium and Heavy Truck and
Light Truck - are supported by a nationwide marketing service network comprising nearly 1000
dealers over 1800 service providers more than 230 parts suppliers and nearly 100 parts centers.This network covers over 260 prefecture-level cities with a 99% coverage rate in cities with more
than 1000 vehicle capacity and an average national service radius of 48.5 kilometers
representing an industry-leading level and providing customers with 24-hour all-weather 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 become strategic partners with top enterprises at home and abroad including
15Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Huawei Knorr-Bremse ZF Shell Bosch CATL VOSS China Unicom CATARC and Xiamen
C&D.
3. Production and manufacturing: The Company has the most complete manufacturing
system in China from raw materials to core components from key assemblies to complete
vehicles and its processing and manufacturing depth ranks the top in the industry. The Company
operates five major vehicle manufacturing bases in Changchun Qingdao Guanghan Liuzhou
and Foshan with a production capacity of about 418000 units. It also maintains three major
powertrain component manufacturing bases in Changchun Wuxi and Dalian independently
controlling the core competitiveness and production capabilities of engines transmissions and
axles within the smart powertrain domain. The product competitiveness is at an advanced level.Among these facilities the Wuxi Diesel Engine Factory features three major product series -
Aowei Bowei and Jinwei - achieving world-class manufacturing standards. Besides the
Company has been deeply engaged in four major fields: intelligent vehicles new energy Internet
of Vehicles and the aftermarket and has established six new business bases in Suzhou Nanjing
Tianjin Wuxi Shijiazhuang and Foshan.
4. Overseas: The Company is implementing its internationalization strategy and making
every effort to expand overseas markets. At present its exports cover 100 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 Japan South
Korea and the high-end European markets. The Company has continued to accelerate its global
expansion establishing FAW Jiefang International in 2024 completing the acquisitions of FAW
South Africa Investment and Tanzania Company and in December 2024 launching the
“SPRINT2030” internationalization strategy at the Global Partners Conference. This strategy
comprehensively sets out six international initiatives: global presence multi-brand operations
technology leadership business innovation win-win cooperation and people-oriented
development. At present the Company has more than 120 primary distributors and nearly 300
service outlets worldwide. The Company has established overseas subsidiaries in countries such
as South Africa and Tanzania and exports models including J7 J6 JH6 and Tiger V. Meanwhile
the Company is continuously accelerating localized overseas operations. In 2025 it will initiate
the establishment of subsidiaries in eight countries including Uzbekistan Indonesia Vietnam
and Saudi Arabia to fully support the implementation of its internationalization strategy.
16Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
5. New energy: Its product portfolio covers five major lines: tractors dump trucks cargo
trucks SPVs and buses. These product lines encompass three major technological routes: EVs
FCVs and hybrid vehicles achieving full coverage of key segment markets for new energy
commercial vehicles such as steel mills coal and slag. 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. By continuously exploring
and applying new products technologies and processes the Company aims to maintain a leading
position in both new energy technology and new energy products in the market. By continuously
exploring and applying new products technologies and processes the Company continuously
maintains FAW Jiefang’s new energy products at a leading technical and product position in the
market.III. Analysis of Main Business
General
See relevant contents of “I. Main Businesses of the Company in the Reporting Period”.Year-on-Year Changes of Main Financial Data
Unit: CNY
Year-on-year
This reporting period Same Period of LastYear increase and Reason for Changedecrease
Operating
income 28078705058.07 36465688621.29 -23.00%
Operating
Costs 26840562485.53 34355216264.53 -21.87%
17Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Sales expenses 472042436.11 520770818.03 -9.36%
Administrative
expenses 605966739.38 749958633.22 -19.20%
Mainly due to the
decrease in interest
Financial
expenses -252849223.59 -410085699.92 38.34%
income and the
increase in foreign
exchange losses in
the current period.Income tax
expenses -175154040.98 -148541602.52 -17.92%
R&D
investment 1001811547.24 1249527872.33 -19.82%
Mainly due to the
Net cash flows increase in cash
from operating 7635289020.71 4420911705.11 72.71% received from sales
activities of goods andrendering of services
in the current period.Mainly due to an
Net cash flows increase in cash
from received from
investment -162885381.88 -779697145.28 79.11% investment gains and
activities a decrease in cashpaid for investments
during the period.Mainly due to a
Net cash flows decrease in cash
from financing -248323979.67 -705678116.75 64.81% dividends distributed
activities during the current
period.Mainly due to the
Net increase in increase in cash
cash and cash 7231688786.55 2942820578.09 145.74% received from sales
equivalents of goods andrendering of services
in the current period.Mainly due to the
Monetary
capital 27226459877.13 19852961021.66 37.14%
increase in cash and
cash equivalents in
the current period.Financial assets
held for trading 5102739.73 0.00 N/A
Mainly due to
interest income
18Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
accrued from
structured deposits.Mainly due to the
Notes decrease in bank
receivable 300000.00 2641582.80 -88.64% acceptance bills heldat the end of the
period.Mainly due to the
Accounts decrease in bank
receivable 6250344325.45 10019816248.98 -37.62% acceptance bills held
financing at the end of the
period.Mainly due to the
Notes payable 21803140258.04 15370906363.16 41.85% increase in notespayable in the
current period.Mainly due to the
Employee decrease in
compensation 421898208.98 1043554896.06 -59.57% employee
payable compensationpayable in the
current period.Mainly due to the
Current portion decrease in the
of non-current 12714703.34 29941701.02 -57.54% current portion of
liabilities non-current
liabilities.Mainly due to the
Lease liabilities 7387319.62 27431600.64 -73.07% decrease in leasepayments in the
current period.Mainly due to the
repurchase and
Treasury shares 0.00 6246851.73 -100.00% cancellation underthe restricted stock
incentive plan in the
current period.Mainly due to the
Other increase in other
comprehensive -43400118.30 -96912346.71 55.22% comprehensive
incomes income in the current
period.Taxes and Mainly due to the
surcharges 138903052.31 105812766.58 31.27% increase in taxes and
19Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
surcharges in the
current period.Mainly due to the
increase in
government grants
Other income 524635067.40 353779659.32 48.29% and additional VAT
deductions
recognized in the
current period.Mainly due to the
Investment
income -30115859.77 101886844.66 -129.56%
decrease in
investment income
in the current period.Mainly due to the
Credit increase in
impairment -30655705.99 -8593082.48 256.75% impairment
loss provision ofreceivables in the
current period.Mainly due to the
increase in
Impairment -151608226.07 -108034774.17 40.33% impairmentloss on assets provision for
inventories in the
current period.Mainly due to the
Income from
assets disposal 154614688.74 746088.82 20623.36%
increase in gains
from assets disposal
in the current period.Mainly due to the
Non-operating
income 11324153.35 28106223.95 -59.71%
decrease in non-
operating income in
the current period.Mainly due to the
Non-operating 1662537.37 3783791.81 -56.06% decrease in non-expenses operating expenses
in the current period.Net after-tax Mainly due to the
amount of increase in fair value
other 61192422.39 134961.61 45240.61% of investments in
comprehensive other equity
income instruments in thecurrent period.Significant changes in the Company’s profit composition or source during the reporting period
20Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
□Applicable□Not applicable
No significant changes in the Company’s profit composition or source during the reporting period.Composition of operating income
Unit: CNY
This reporting period Same Period of Last Year
Year-on-
Proportion Proportion year
Amount in in increase andOperating Amount Operating decrease
Income Income
Total
operating 28078705058.07 100% 36465688621.29 100% -23.00%
income
By industries
Automob
ile 28078705058.07 100.00% 36465688621.29 100.00% -23.00%
industry
By products
Commer
cial 26082500525.92 92.89% 34560180525.91 94.77% -24.53%
vehicles
Spare
parts and 1996204532.15 7.11% 1905508095.38 5.23% 4.76%
others
Information on industries products or regions accounting for more than 10% of the Company’s
operating income or operating profit
□Applicable □Not applicable
Unit: CNY
Increase/ Increase/ Increase/
Decrease Decrease Decrease
of of of Gross
Gross Operatin Operatin Profit
Operating income Operating Costs Profit g Income g Cost Rate
Rate over the over the over the
Same Same Same
Period of Period of Period of
Last Year Last Year Last Year
By industries
Autom 27347477621.24 26277912207.22 3.91% -23.28% -22.04% -1.53%
21Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
obile
industr
y
By products
Comme
rcial
vehicle 26082500525.92 25172475133.81 3.49% -22.27% -20.00% -2.74%
s
Spare
parts
and 1264977095.32 1105437073.41 12.61% -39.44% -50.59% 19.73%
others
The main business data of the Company is adjusted at the end of the latest reporting period if the
statistical caliber of the Company’s main business data is adjusted in 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
At the End of This Reporting Desc
Period End of Last Year Increas ripti
e/Decre on
Proportio Proportio ase in
of
Proport MajAmount n in Total Amount n in Total or
Assets Assets ion Cha
nges
Monetary
capital 27226459877.13 34.18% 19852961021.66 27.29% 6.89%
Accounts
receivable 8413701687.51 10.56% 7067296142.54 9.71% 0.85%
Contract assets 14535632.85 0.02% 14455542.05 0.02% 0.00%
Inventories 12268923565.48 15.40% 10117213109.97 13.91% 1.49%
Investment
properties 47178054.55 0.06% 52835976.31 0.07% -0.01%
22Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Long-term
equity 1161550784.02 1.46% 1176288461.09 1.62% -0.16%
investments
Fixed assets 10608424359.95 13.32% 11198300572.20 15.39% -2.07%
Project under
construction 762817790.85 0.96% 688181815.22 0.95% 0.01%
Right-of-use
assets 86146431.81 0.11% 104360320.57 0.14% -0.03%
Contract
liabilities 2489872513.67 3.13% 2430554164.50 3.34% -0.21%
Lease liabilities 7387319.62 0.01% 27431600.64 0.04% -0.03%
2. Main overseas assets
□Applicable□Not applicable
3. Assets and liabilities measured at fair value
□Applicable □Not applicable
Unit: CNY
Profit
s and Provision Purc Salelosses
from for
hase s
impa amo amochang Accumulated unt unt Ot
Item Beginning es in changes in fair
irme in in her
balance fair value through nt in the the cha Closing balance
value equity the curre curre nge
for the curr nt nt s
curren ent
t peri
peri peri
od od
period od
Financi
al
assets
1.
Investm
ent in
other 540066528.00 49563864.00 589630392.00
equity
instrum
ents
Total 540066528.00 49563864.00 589630392.00
Financi
al
liabiliti 0.00 0.00
es
23Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Content of other changes
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 Note 24 “Assets with restricted ownership or use right” in Part VII
“Notes to Items in Consolidated Financial Statements” of Section VIII - Financial Report.VI. Investment Analysis
1. Overall situation
□Applicable □Not applicable
Investment Amount in the Investment Amount in the Same
Variation range
Reporting Period (CNY) Period of Previous Year (CNY)
0.004900000.00-100.00%
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
The Company has no derivative investment in the reporting period.
5. Use of proceeds
□Applicable □Not applicable
24Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
(1) Use of proceeds
□Applicable □Not applicable
Unit: CNY 10000
C A
u m
m ou
ul nt
at of
Gros iv pr
e
Utilizat s of Perce oc
ion rate proc
gr ntage Alloc
Gross of eeds o of ation
ee
ds
proceeds as of repu ss cumul and un
Fundr Fundraisin Securitie Gross of Net of utilized Cumulative
the end
of rpos
of ative Total intend ut
aising g method s listing proceeds proceeds (1) during utilized
pr
reportin ed gross
unused ed use
year date current proceeds (2) duri o of gross of of
ili
ze
reporting g ng c proce proceeds unuse d
period period e d(3) = repo edse proce
fo
(2)/(1) rting repurp rperi d osed eds ov
od s er
re tw
p o
ur ye
p ar
o s
se
25Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
d
The
funds
are
held
in a
dedica
ted
fundra
ising
Private accou
2024 placement October 200000 199781.34 11762.14 197323.69 98.77% 0 0 0.00% 2648.92 nt 0
of shares 21 2024 with asegme
nt
curren
tly
alloca
ted for
cash
mana
geme
nt.Total -- -- 200000 199781.34 11762.14 197323.69 98.77% 0 0 0.00% 2648.92 -- 0
Description on use of proceedsAs approved by the China Securities Regulatory Commission in its “Reply on Approving FAW Jiefang Group Co. Ltd.’s Private Placementof Shares Registration” (CSRC Permit [2024] No.972) and with consent from the Shenzhen Stock Exchange the Company issued 298507462
ordinary shares (A shares) to specific investors 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
26Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
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 2025 the Company has cumulatively invested CNY 1973236858.68 of the proceeds into the fundraising projects with a
remaining balance of CNY 26489160.94 (including pending payment of issuance expenses and interest income). Of this balance CNY
20000000.00 has been allocated for temporary cash management while CNY 6489160.94 remains unused in the dedicated proceeds accounts.
On April 29 2025 the Company held the 25th meeting of the 10th Board of Directors and the 21st meeting of the 10th Board of
Supervisors during which the “Proposal on the Postponement of Certain Fundraising Investment Projects” was reviewed and approved. In light
of the actual construction progress of the fundraising investment projects and with no change to the implementing entities locations investmentpurposes or total committed fundraising investment amounts it was agreed to postpone the completion date of the fundraising project “FAWJiefang Wuxi R&D Base Construction Project” to June 30 2026 and to postpone the completion date of the fundraising project “FAW JiefangTransmission Division Axle Base Construction Project and Heavy-Duty Replacement Axle Technology Upgrade (Phase I)” to April 30 2025.As of June 30 2025 the following projects have been completed with no surplus funds: FAW Jiefang Commercial Vehicle 2022 New
Energy Intelligent Connected R&D Capability Enhancement Project; FAW Jiefang Qingdao Base R&D Capability Enhancement Project; FAW
Jiefang Qingdao Vehicle Division Light Vehicle Frame Business Integration and Technology Upgrade Project; FAW Jiefang Qingdao Vehicle
Division Jimo Factory Sheet Metal Stamping Capacity Expansion Project; FAW Jiefang Qingdao Vehicle Division Cab Painting Line
Environmental Protection Technology Upgrade Project; FAW Jiefang Transmission Division Integrated Heavy-duty AMT Transmission
Technology Transformation Project; New 13L and M Series Engine Shared Production Line Technology Transformation Project; and FAW
Jiefang Transmission Division Axle Base Construction Project and Heavy-Duty Replacement Axle Technology Upgrade (Phase I) Project.
(2) Proceeds allocation to committed projects
□Applicable□Not applicable
(3) Changes to proceeds-funded projects
□Applicable□Not applicable
The Company had no changes to proceeds-funded projects during the reporting period.
27Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
VII. Sales of Major Assets and Equity
1. Sale of major assets
□Applicable □Not applicable
Pr R Relat Whet
ic el ionsh her
Net Profit in at ip All
Whet Whether
with Prope her ImplemeContributed Proportion g ed
by the Asset of Net Pr P the rty
All nted as
to the Listed Profit in ar Coun Right
Credi Schedule
ts d. If Not
Date Transaction Company Contributed ci ty
terpar s of and Provide
Counte Assets of Price (CNY from the Effect of Sale on by Asset pl Tr
ty the Debts the Date of Disclosure
rparty Sold Sale 10000) Beginning of the Company Sales to the e an
(Appl Asset
icabl s Invol Reasons
Disclos
ure Indexthe Current Listed of sa
Period to the Company in A ct e to Invol
ved and the
Relat ved Have MeasureDate of Sale the Total ss io
(CNY Net Profit et n ed Have
been s Taken
Party been Trans by the10000) S or Trans Trans ferre Companal N
e ot actio ferre
d y
n) d
Releva This https://www
Sanhe nt expropriation is A .cninfo.com.Sub- buildin part of ss cn/new/disc
district gs government et losure/detail
Office land planning. The ap plate=szse
Xindu and Marc land and pr &orgId=gssDistrict ancillar h 31 21506.21 15646.77 buildings were 382.87% ai N
March
N/A Yes Yes Yes 08 z0000800&People' y 2025 expropriated to sa os faciliti meet the l 2025
stockCode=
000800&an
Govern es of construction pr nouncement
ment FAW needs of the ic Id=1222743
Cheng Jiefang Chengdu Ring in 269&annou
du Autom Ecological Zone. g ncementTim
otive As a passive e=2025-03-
28Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Co. transaction the 08
Ltd. Company has
located actively
in responded to the
Xindu government’s
District ecological
protection
Cheng planning and
du cooperated with
the
implementation
of this work. It is
expected that this
will not affect the
normal
production and
operations of the
Company and
FAW Jiefang
Co. Ltd.
2. Sale of major equity
□Applicable□Not applicable
VIII. Analysis on Principal Holding and Joint-stock Companies
□Applicable □Not applicable
Major subsidiaries and joint-stock companies affecting over 10% net profit of the Company
Unit: CNY 100 million
Company Company Main business RegisteredName Type Capital Total Assets Net Assets
Operating Operating
income Profit Net Profit
FAW Jiefang Subsidiaries Development 108.03 594.48 183.63 179.12 1.30 3.60
29Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Automotive manufacturing
Co. Ltd. and sales of
vehicles and
parts
Acquisition and disposal of subsidiaries in the reporting period
□Applicable□Not applicable
Description of main holding and joint-stock companies: none
30Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
IX. Structured Entities Controlled by the Company
□Applicable□Not applicable
X. Risks Faced by the Company and Countermeasures
(1) Market competition risk
The domestic commercial vehicle market particularly in the heavy-duty truck segment is
highly competitive. Leading enterprises leverage strong brand equity robust R&D capabilities
and extensive sales channels to continuously consolidate their advantages. They not only optimize
product performance but also meet diversified market demands by launching new energy vehicles
and intelligent connected products. Meanwhile numerous capable companies and cross-industry
competitors are actively competing in niche markets to capture market share. In this context the
Company faces challenges of product homogeneity and intense price competition. If differentiated
products are not launched in a timely manner the Company may be at a disadvantage in market
competition. The likelihood of engaging in price wars increases market share may be eroded and
the current advantages in the market are challenged. ?
(2) New Energy Market Risk
The new energy commercial vehicle market is rapidly developing with penetration
continuously increasing. The R&D of new energy commercial vehicles requires significant
investment of capital and human resources and technologies are rapidly evolving. If the
Company cannot keep pace with industry technological developments it may face deficiencies in
areas such as battery range charging infrastructure and intelligent applications making it
difficult to meet consumers’ performance expectations for new energy commercial vehicles.Additionally market promotion and after-sales services for new energy commercial vehicles also
present challenges. Insufficient preparation in these areas may result in low consumer recognition
of the Company’s new energy products adversely affecting product sales and market share and
causing the Company to miss opportunities in the new energy market.
(3) Policy change risk ?
Policies at both the national and local levels for the commercial vehicle industry are
frequently adjusted. In terms of environmental regulations the gradual implementation of the
National VII emission standards imposes higher requirements on vehicle exhaust emissions
31Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
necessitating significant investment in technological upgrades to meet the new standards.Regarding traffic rights some cities provide greater access privileges to new energy commercial
vehicles while restricting the operating areas and times for traditional fuel commercial vehicles.Failure to respond effectively to policy changes may result in product compliance risks making it
impossible to sell or operate products in certain regions. Meanwhile changes in policy subsidies
can affect the market price of new energy commercial vehicles and consumers’ purchasing
intentions posing challenges to the Company’s sales strategies and funding costs.
(4) Overseas Market Risk
The overseas market is becoming increasingly important for commercial vehicle enterprises
and the Company may face various obstacles in expanding abroad. First sluggish global
economic growth and declining market demand in certain countries and regions make commercial
vehicle exports more difficult. Second the rise of trade protectionism with some countries
imposing trade barriers or raising tariffs restricts the import of foreign commercial vehicles
impacting the Company’s overseas market deployment. Third differences in regulatory standards
cultural habits and market demands across countries and regions pose challenges. If the Company
fails to understand and adapt to these differences it may struggle to meet local market
requirements in product development marketing and after-sales service thereby affecting its
competitiveness in overseas markets.To address the above risks the Company has formulated the following measures:
1. Strengthen R&D innovation and differentiation strategy. Increase R&D investment and
reinforce specialized R&D teams focusing on cutting-edge technologies such as new energy and
intelligent systems to develop products with unique advantages. Conduct in-depth market research
and targeting different market segments launch differentiated products to meet customers’
personalized needs enhance product added value and improve market competitiveness.
2. Accelerate the new energy transformation and deployment. Continuously improve new
energy business clarifying technological routes and development goals. Establish strategic
partnerships with key collaborators optimize the supply chain system and reduce the cost of new
energy products. Strengthen market promotion and after-sales services for new energy products
establish a comprehensive after-sales network promptly address issues encountered by customers
and enhance customer satisfaction and brand reputation.
32Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
3. Strengthen policy monitoring and response research. Continuously track national and local
policy developments thoroughly interpret regulations and proactively anticipate their impact on
the Company’s business. Adjust company strategies and product planning in a timely manner
according to policy changes to ensure products comply with regulations and to actively seek
policy support.
4. Optimize overseas market expansion strategies. Conduct overseas market research to gain
a thorough understanding of the target markets’ economic conditions regulatory standards
cultural habits and market demands and formulate targeted strategies. Strengthen cooperation
with local dealers and partners fully utilize local resources and establish localized production
sales and after-sales service systems to improve product adaptability and market responsiveness.Actively address trade barriers and enhance communication and coordination with industry
associations and government authorities to safeguard the Company’s legitimate rights and
interests in overseas markets.
5. Enhance internal management efficiency. Strengthen internal collaboration within the
Company to improve work efficiency establish a scientific management and control system and
motivate employees’ initiative and innovation. Strengthen cost management optimize production
processes reduce production and operating costs and improve the Company’s profitability and
risk resistance.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 -Market Capitalization Management” issued by the China Securities Regulatory Commissionwhich stipulates that “Companies included in major indices shall establish a market capitalizationmanagement system...” As a constituent of the CSI 300 Index the Company has formulated a
“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
33Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Warning Mechanisms and Emergency Measures and Supplementary Provisions. On December
26 2024 the company’s 21st meeting of the 10th Board of Directors reviewed and approved the
“Proposal on Establishing the ‘Market Capitalization Management System’”.XII. Implementation of the “Improvement of Both Quality and Return” Action Plan
Whether the Company disclosed the “Improvement of Both Quality and Return” action plan.□Yes □No
The “Improvement of Both Quality and Return” action plan is prepared in order toimplement the guiding ideologies of “activating the capital market and boosting investors’confidence” as proposed at the meeting of the Political Bureau of the Central Committee of theCPC and of “vigorously improving the quality and investment value of listed companies takingmore powerful and effective measures and focusing on market stability and confidence stability”
as proposed in the executive meeting of the State Council safeguard the interests of all
shareholders enhance the investors’ confidence and promote the long-term sound and sustainable
development of the Company. For details please refer to the Announcement on the
“Improvement of Both Quality and Return” Action Plan published by the Company in the
Securities Times China Securities Journal and CNINFO (http://www.cninfo.com.cn) on March 2
2024.
The Company consistently prioritizes high-quality development as its core theme. It is
committed to advancing its main business and aspires to establish itself as a leading brand. The
Company places a strong emphasis on product leadership continuously innovating and driving
reforms. It actively pursues the mastery of key core technologies constantly striving to conquer
new frontiers. It is accelerating towards its goal of becoming “China’s first and world-class”
green and intelligent transportation solution provider as well as a century-old national automobile
brand. The Company constantly consolidates its corporate governance structure improves itsinternal control system promotes the standardized and efficient operation of the “shareholders’meeting Board of Directors and Board of Supervisors” and gives full play to the role of various
governance subjects thus ensuring scientific and effective decision-making. The Company
strictly abides by laws regulations and regulatory agency provisions continuously improves the
information disclosure quality highlights the importance and pertinence of information disclosure
34Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
fully demonstrates the intrinsic value of the Company and provides investors with an objective
decision-making basis.The Company actively responds to national policies to strengthen capital market
development and enhance investor returns. Taking into account the Company’s actual situation
the 2024 annual profit distribution plan is formulated as follows: Based on 4921280975 shares
of the Company a cash dividend of CNY 0.50 (tax inclusive) will be distributed to all
shareholders for every 10 shares held totaling CNY 246064048.75 (tax inclusive). The
remaining undistributed profits will be carried forward to the next accounting year. The Company
does not convert its capital reserves into share capital. The ex-dividend date for this distribution is
set for June 17 2025.Besides the Company attaches great importance to investor relations management. Through
multiple channels such as public announcements broker strategy meetings investor
communications interactive platforms telephone and email the Company ensures effective
communication with investors and establishes a transparent and efficient communication platform.On March 31 2025 the Company held the 2024 annual performance communication meeting in
Beijing; on April 14 it held the 2024 annual performance briefing; and on May 27 it participated
in the “2025 Jilin Region Listed Companies Online Investor Reception Day” event. The
Company’s management addressed investors’ concerns comprehensively and showcased the
Company’s image and potential from multiple dimensions.
35Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Section IV Corporate Governance Environment and Social
Responsibility
I. Changes in Directors Supervisors and Senior Management of the Company
□Applicable □Not applicable
Name Position Type Date Reason
Yu
Changxin Director Elected March 06 2025
Xu Haigen Employee Departure fromSupervisor office March 17 2025
Statutory
retirement
Li Risheng EmployeeSupervisor Elected March 26 2025
Qiao Employee
Xiaobing Supervisor Elected March 26 2025
Wang Deputy
Zhiyu General Appointed May 26 2025Manager
Note:
1. On February 19 2025 the Company disclosed the “Announcement on the Election ofNon-independent Directors” nominating Mr. Chang Xin as a candidate for non-independent
director of the Company. This matter was approved at the first extraordinary shareholders’
meeting of 2025 held on March 6 2025.
2. On March 18 2025 the Company disclosed the “Announcement on Resignation ofSupervisors” stating that Mr. Xu Haigen resigned from his position as Company Supervisor upon
reaching the statutory retirement age.
3. On March 27 2025 the Company disclosed the “Announcement on the By-election ofEmployee Supervisors of the Board of Supervisors” electing Mr. Li Risheng and Mr. Qiao
Xiaobing as Employee Supervisors of the Company’s Board of Supervisors.
4. At the 26th meeting of the 10th Board of Directors held on May 26 2025 the proposal on
the appointment of the Company’s Deputy General Manager was reviewed and approved
appointing Mr. Wang Zhiyu as Deputy General Manager of the Company.For details please refer to the announcements by the Company in the Securities Times
China Securities Journal and CNINFO (http://www.cninfo.com.cn).
36Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
II. Profit Distribution and Transfer from Capital Reserve to Share Capital in the Reporting
Period
□Applicable□Not applicable
The Company does not plan to pay cash dividends or bonus shares or convert reserves into share
capital in the first half of the year.III. Implementation of the Company’s Equity Incentive Plan Employee Stock Ownership
Plan or Other Employee Incentive Measures
□Applicable □Not applicable
1. Equity incentive
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 respectively which reviewed and approved the“Proposal on Unfulfilling Conditions for Releasing Restricted Share for the Third Release Periodof Restricted Shares Reserved for Granting in Phase I Restricted Share Incentive Plan andRepurchase and Cancellation of Some Restricted Shares and Adjustment of Repurchase Price”
agreeing to repurchase and cancel the restricted stocks of 30 incentive participants who did not
satisfy the release conditions totaling 1090201 shares. On April 18 2025 the proposal was
reviewed and approved at the Company’s 2024 Annual Shareholders’ Meeting. The Company has
completed the above-mentioned repurchase and cancellation of shares and disclosed the
“Announcement on the Completion of Repurchase and Cancellation of Some Restricted Shares”
on June 10 2025.For details of the above proposals please refer to the relevant announcements published by
the Company in Securities Times China Securities Journal and CNINFO
(http://www.cninfo.com.cn).
2. Implementation of employee stock ownership plan
□Applicable□Not applicable
3. Other employee incentives
□Applicable□Not applicable
37Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
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 EnvironmentalInformation Disclosure Reports
1 FAW Jiefang Automotive Co. Ltd. (TruckFactory) http://36.135.7.198:9015/index
2 FAW Jiefang Automotive Co. Ltd. TransmissionBranch http://36.135.7.198:9015/index
3 FAW Jiefang Automotive Co. Ltd. TransmissionBranch (Old Axle Workshop Area) http://36.135.7.198:9015/index
4 FAW Jiefang Automotive Co. Ltd. Engine Branch 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/Environ
6 FAW Jiefang (Qingdao) Automotive Co. Ltd. mentDisclosure/enterpriseRoster/openEnterpriseDetailscomDetailFrom=
0&id=91370200163567343M
http://ywxt.sthjt.jiangsu.gov.cn:1818
1/spsarchive-
webapp/web/viewRunner.htmlviewI
d=http%3A%2F%2Fywxt.sthjt.jiang
su.gov.cn%3A18181%2Fspsarchive-
7 Wuxi Diesel Engine Works of FAW Jiefang webapp%2Fweb%2Fsps%2Fviews%Automotive Co. Ltd. 2Fyfpl%2Fviews%2FyfplEntInfo%2
Findex.js&year=2024&ticket=afb38e
3df4574504854e00c9791d4ce4&ver
sionId=DF7D0088C75C4C6C904C4
7CAA1415FD1&spCode=32020002
00003045
http://ywxt.sthjt.jiangsu.gov.cn:1818
1/spsarchive-
webapp/web/viewRunner.htmlviewI
d=http%3A%2F%2Fywxt.sthjt.jiang
8 Wuxi Diesel Engine Huishan Factory of FAW su.gov.cn%3A18181%2Fspsarchive-Jiefang Automotive Co. Ltd. webapp%2Fweb%2Fsps%2Fviews%
2Fyfpl%2Fviews%2FyfplEntInfo%2
Findex.js&year=2024&ticket=5eced
a49250740bdb947c7917c006a64&ve
rsionId=E4F8C5FCD30846819DFE
38Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
434B9F89B016&spCode=32020602
00040894
https://103.203.219.138:8082/eps/ind
ex/enterprise-
9 FAW Jiefang Automotive Co. Ltd. Sichuan morecode=91510681MABQ7AKGBranch 4Y&uniqueCode=ef29d76e7549427
c&date=2024&type=true&isSearch=
true
https://103.203.219.138:8082/eps/ind
10 FAW Jiefang Automotive Co. Ltd. Chengdu
ex/enterprise-
Branch morecode=91510114746407720B&uniqueCode=d17812444b6e628b&d
ate=2024&type=true&isSearch=true
11 FAW Jiefang Dalian Diesel Engine Co. Ltd. https://sthj.deing.cn:8180/Public/Enter/682078508085253
V. Social Responsibility
In the first half of 2025 FAW Jiefang actively responded to the national Rural Revitalization
Strategy thoroughly implemented designated assistance work leveraged its resource advantages
and focused on supporting the counterpart county - Zhenlai County in Jilin Province. Through
dispatching personnel consumption-based assistance talent empowerment and other forms the
Company promoted economic development in the assisted areas according to local conditions and
circumstances advancing rural revitalization and creating a new rhythm of rural prosperity.
39Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
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 not Fulfilled by the End of the Reporting Period
□Applicable □Not applicable
Com
Commit mitm
Reasons for
Committed by ment Commitments Date ent Performance
Commitment
Type Perio
d
If I hold shares in FAW
Jiefang prior to this The transfer
restructuring I will not procedures
reduce my FAW Jiefang for the target
shareholdings through assets
direct or indirect means involved in
from the date of the first this
Relevant directors
disclosure of this transaction
supervisors and
transaction by FAW have been
senior officers of
Jiefang until its fully
listed companies
completion nor do I have completed.(Wu Bilei Li
any plans to reduce FAW On April 28
Sheng Wang Hao
Jiefang shares. During To the 2025 the
Liu Yanchang
this period if I receive compl Company
Commitment Deng Weigong
Other additional shares due to Octobe etion disclosed the
s made Chen Hua Hancommit FAW Jiefang’s issuance r 22 of “Announcemduring asset Fangming Mao
ments of bonus shares 2024 imple ent on the
restructuring Zhihong Dong
conversion of capital menta Completion
Zhonglang Li
reserves into share tion of Transfer of
Ying Xu Haigen
capital or other such Target Assets
Wang Lijun Duan
events I will also abide in Major
Yinghui Yu
by the aforementioned Asset
Changxin Ji Yizhi
arrangements. If the Disposal and
Wang Jianyu
China Securities Related Party
Wang Jianxun)Regulatory Commission Transaction.”
and the Shenzhen Stock The
Exchange implement new Company no
regulations regarding longer holds
share reduction I will equity in
also strictly comply with FAW Finance
such relevant regulations. Co. Ltd.Commitment China FAW Co. Other From the date of the first Octobe To the
40Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
s made Ltd. commit disclosure of FAW r 22 compl
during asset ments Jiefang’s restructuring 2024 etion
restructuring until its completion the of
Company will not reduce imple
its FAW Jiefang menta
shareholdings nor does it tion
have any plans to reduce
FAW Jiefang shares.During this period if the
Company receive
additional shares due to
FAW Jiefang’s issuance
of bonus shares
conversion of capital
reserves into share
capital or other such
events I will also abide
by the aforementioned
arrangements. If the
China Securities
Regulatory Commission
and the Shenzhen Stock
Exchange implement new
regulations regarding
share reduction the
Company will also
strictly comply with such
relevant regulations.
1. The Company shall
exercise shareholder
rights in accordance with
relevant laws
regulations and the
Articles of Association of
To the
the listed company
compl
Commitment without exceeding its
Other Octobe etion
s made China FAW Co. authority to interfere in
commit r 29 of
during asset Ltd. the operation and
ments 2024 imple
restructuring management of the listed
menta
company and without
tion
infringing upon the
interests of the listed
company;
2. From the date of this
commitment until the
completion of the listed
41Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
company’s current
restructuring if the
Shenzhen Stock
Exchange issues new
regulatory provisions
regarding supplementary
return measures and their
commitments and the
above commitments
cannot satisfy such
provisions the Company
undertakes to issue
supplementary
commitments in
accordance with the latest
provisions of the
Exchange;
3. If the Company
violates or refuses to
fulfill the above
commitments resulting in
losses to the listed
company the Company
will bear legal
responsibility for
compensation and agrees
to accept relevant
penalties or management
measures in accordance
with regulations and rules
established or issued by
the China Securities
Regulatory Commission
the Shenzhen Stock
Exchange and other
securities regulatory
authorities.From the date of the first
disclosure of FAW To the
Jiefang’s restructuring compl
Commitment
Other until its completion the Octobe etion
s made FAW Bestune Auto
commit Company will not reduce r 22 of
during asset Co. Ltd.ments its FAW Jiefang 2024 imple
restructuring
shareholdings nor does it menta
have any plans to reduce tion
FAW Jiefang shares.
42Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
During this period if the
Company receive
additional shares due to
FAW Jiefang’s issuance
of bonus shares
conversion of capital
reserves into share
capital or other such
events I will also abide
by the aforementioned
arrangements. If the
China Securities
Regulatory Commission
and the Shenzhen Stock
Exchange implement new
regulations regarding
share reduction the
Company will also
strictly comply with such
relevant regulations.Whether the
commitment
Yes
is fulfilled on
time
If the
commitment
is not
fulfilled
within the
time limit
the specific
N/A
reasons for
the failure
and the next
work plan
shall be
explained in
detail
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.
43Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
III. Illegal External Guarantee
□Applicable□Not applicable
The Company has no illegal external guarantee in the reporting period.IV. Appointment and Dismissal of Accounting Firm
Has the semi-annual financial report been audited
□Yes□No
The semi-annual report of the Company is not audited.V. Description of the Board of Directors and the Board of Supervisors on the “Non-standardAudit 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 Last
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 has no major litigation or arbitration matter in the reporting period.Other litigation matters
□Applicable □Not applicable
Basic Progress Litigation ImplemenInformati Amount Estimated (Arbitrati tation of
on about Involved liabilities of Date of
Litigation (CNY formed or Litigation
on) Litigation Disclosur
(Arbitrati Results (Arbitrati
Disclosur e Index
(Arbitrati 10000) not on) and on)
e
on) Impact Judgment
Summary 7944.71 Including Case not No The caseof other estimated closed significan was not
44Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
litigation liabilities t impact closed by
not of CNY the end of
reaching 3502690 the
the major 0 reporting
disclosure period
standard Judgment
has been
made or
501.46 No Case
No the
closed significant impact executionhas been
complete
d
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 related to daily operations
□Applicable□Not applicable
No related-party transactions related to daily operations occurred during the reporting period.
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.
45Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
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
Amount Incurred in Current
Maximum Period
Daily Opening Ending
Deposit
Related Correla Deposit Balance Total Balance
Interest Rate Total Deposit
Parties tion Limit (CNY Withdrawal
Range Amount in the
(CNY
(CNY 10000) Amount in theCurrent Period 10000)
10000) Current Period(CNY 10000)
(CNY 10000)
The
First
same
Autom
ultimat
obile
e 3000000 0.03%-2% 887137.51 21083150.88 21093050.85 877237.54
Financ
controll
e Co.ing
Ltd.party
Credit Granting or Other Financial Businesses
Actual Amount
Total Amount (CNY
Related Parties Correlation Business Type Incurred
10000)
(CNY 10000)
First Automobile The same ultimate Other financial
153000085761.16
Finance Co. Ltd. controlling party businesses
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
46Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
On February 18 2025 the 22nd meeting of the 10th Board of Directors of the Companyreviewed and approved the “Proposal on the Estimated Amount of Daily Related Transactions for
2025” the “Proposal on the Estimated Amount of Financial Business with FAW Finance Co. Ltd.for 2025” and the “Proposal on Signing the Financial Services Framework Agreement with FAWFinance Co. Ltd.” which were subsequently reviewed and approved by the first extraordinary
shareholders’ meeting of the Company in 2025.Relevant Inquiries on Disclosure Website of Interim Report of Major Related Transactions
Disclosure Date of Name of Temporary
Name of Temporary
Temporary Announcement Disclosure
Announcement
Announcement Website
Announcement on estimated CNINFO
amount of daily related February 19 2025
transactions in 2025 (http://www.cninfo.com.cn)
Announcement on estimated
amount of financial business with CNINFO
First Automobile Finance Co. February 19 2025 (http://www.cninfo.com.cn)
Ltd. in 2025
Announcement on Signing
Financial Service Framework CNINFO
Agreement and Related Party February 19 2025
Transactions with First (http://www.cninfo.com.cn)
Automobile Finance Co. Ltd.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
47Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Description of lease
For details of the Company’s operating leases please refer to Notes 15 “Investment Property” 16
“Fixed Assets” and 20 “Right-of-Use Assets” in Part VII “Notes to Items in ConsolidatedFinancial Statements” of Section VIII “Financial Report” and Note 5 “Related Party Transactions”
in Part XIII “Related Parties and Related Transactions.”
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 10000
Source of Impairment
Funds for Amount of
Amount
of Provision for
Type Entrusted Entrusted Wealth OutstandinManagement g Balance Overdue
Overdue
Wealth Entrusted
Management Transactions
Receivabl
es WealthManagement
Bank Wealth
Management Own Funds 2220000 0 0 0
Products
Total 2220000 0 0 0
Details of High-Risk Entrusted Wealth Management Products with Large Exposure Low Security
or Limited Liquidity
□Applicable□Not applicable
Situations Where Entrusted Wealth Management Is Expected to Incur Principal Losses or Other
Events May Trigger Impairment
□Applicable□Not applicable
48Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
4. Other major contracts
□Applicable□Not applicable
The Company has no other major contracts in the reporting period.XIII. 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.XIV. Major Events of Subsidiaries
□Applicable□Not applicable
49Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
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
Transferred
of Bonus
Qty. Scale from Others Subtotal Qty. Scale
New shares
Accumulation
Shares
Fund
I. Restricted shares 300017695 6.09% -299597403 -299597403 420292 0.01%
1. Shares held by the state
2. Shares held by the state-
1358208942.76%-135820894-135820894
owned legal person
3. Shares held by other
1474803843.00%-147060092-1470600924202920.01%
domestic enterprises
Including: shares held by
1459701512.97%-145970151-145970151
domestic legal person
Shares held by domestic
15102330.03%-1089941-10899414202920.01%
natural person
4. Shares held by foreign
167164170.34%-16716417-16716417
enterprises
Including: shares held by
167164170.34%-16716417-16716417
overseas legal person
Shares held by overseas
natural person
50Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
II. Unrestricted shares 4622353481 93.91% 298507202 298507202 4920860683 99.99%
1. CNY ordinary shares 4622353481 93.91% 298507202 298507202 4920860683 99.99%
2. Foreign shares listed in
China
3. Foreign shares listed
overseas
4. Others
III. Total number of shares 4922371176 100.00% -1090201 -1090201 4921280975 100.00%
51Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Reasons for changes in shares
□Applicable □Not applicable
During the reporting period the Company failed to achieve the performance assessment
objectives set for the third release period of the reserved shares under the Phase I restricted share
incentive plan and a total of 1090201 shares were repurchased and canceled due to some
incentive recipients serving as employee supervisors or other reasons.Approval of share changes
□Applicable □Not applicable
On March 28 2025 the 24th meeting of the 10th Board of Directors and the 20th meeting ofthe 10th Board of Supervisors of the Company reviewed and approved the “Proposal on theFailure to Achieve the Conditions for the Third Release Period of the Reserved Shares under the
Phase I Restricted Share Incentive Plan and on the Repurchase and Cancellation of CertainRestricted Shares and Adjustment of Repurchase Price” with a total of 1090201 restricted shares
repurchased and canceled. On April 18 2025 the proposal was reviewed and approved at the
Company’s 2024 Annual Shareholders’ Meeting.Transfer of shares changes
□Applicable □Not applicable
On June 03 2025 the Company submitted relevant registration materials to CDSC for
1090201 shares involved in equity incentive repurchase and cancellation. On June 06 2025
CSDC issued the Confirmation of Securities Transfer Registration to the Company and the total
share capital of the Company was reduced to 4921280975 shares.Implementation progress of share repurchase
□Applicable □Not applicable
The Company has completed the above-mentioned repurchase and cancellation of sharesand disclosed the “Announcement on the Completion of Repurchase and Cancellation of SomeRestricted Shares” on June 10 2025.Implementation progress of reducing 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
52Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
□Applicable □Not applicable
In the reporting period the share capital of the Company decreased by 1090201 shares
which had little impact on the Company’s financial indicators such as basic earnings per share
diluted earnings per share and net assets per share attributable to shareholders with ordinary
shares of the Company.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 Number
Number of Number of of of
Restricted Restricted Restricte Restricte ReasonName of Shares at the Shares d Shares d Shares for ReleaseShareholder Beginning of Released in Increase at the Restricti Date
the Period the Current d in the End of onPeriod Current the
Period Period
National
Manufacturing Non-
Transformation 67164179 67164179 public April 21
and Upgrading offering 2025
Fund Co. Ltd.Lord Abbett
China Asset Non-
Management Co. 57611940 57611940 public
April 21
Ltd. offering
2025
Jilin Province Non-
Private Equity 46268656 46268656 public April 21
Co. Ltd. offering 2025
Caitong Fund Non-
Management Co. 30447765 30447765 public April 21
Ltd. offering 2025
AEGON-
INDUSTRIAL Non-
Fund 25074626 25074626 public April 21
Management Co. offering 2025
Ltd.
53Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Jilin Province
Yandong State- Non-
Owned Capital 22388059 22388059 public April 21
Investment Co. offering 2025
Ltd.Non-
UBS AG 16716417 16716417 public April 21
offering 2025
Jilin Changbai
Mountain Private
Fund
Management Co.Ltd. - Jilin Non-
Province 16417910 16417910 public April 21
Qianheng offering 2025
Investment
Partnership
(Limited
Partnership)
Changchun
Equity Investment
Fund
Management Co.Ltd. - Changchun Non-16417910 16417910 public April 21Changxing Equity
Investment Fund offering
2025
Partnership
(Limited
Partnership)
The shares
held are
released
from
Other Senior restriction
Executives and 1510233 1139099 49158 420292 Executiv annually in
Personnel e lockup accordance
with
relevant
regulations.Total 300017695 299646561 49158 420292 -- --
II. Issuance and Listing of Securities
□Applicable□Not applicable
54Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
III. Number of Shareholders and Shareholdings of the Company
Unit: share
Total Number of Total Number of
Shareholders with Shareholders with Preferred
Ordinary Shares at 78324 Shares with Restored Voting 0
the End of the Rights at the End of the
Reporting Period Reporting Period
Shareholdings of Shareholders Holding More than 5% of the Shares or Top 10 Shareholders
(Excluding Shares Lent through Securities Refinancing).
Num Num Pledge
ber ber Marking or
Natu Number of of of Freezing
Name of re of Share Shares Held at
Increase and Rest Unre
Shareholder Shar proportio the End of the
Decrease in ricte strict
ehol n Reporting the Reporting d ed Status Qty
ders Period Period Shar Shar of .es es Shares
Held Held
State
-
China FAW own
Co. Ltd. ed 62.19% 3060649901 0 0 0 N/A 0legal
pers
on
State
FAW -
Bestune own
Auto Co. ed 15.94% 784500000 0 0 0 N/A 0
Ltd. legalpers
on
National
Manufacturi State
ng -
Transformat own
ion and ed 1.36% 67164179 0 0 0 N/A 0
Upgrading legal
Fund Co. pers
Ltd. on
Jilin State
Province -
Private own 0.94% 46268656 0 0 0 N/A 0
Equity Co. ed
Ltd. legal
55Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
pers
on
Hong Kong Over
Securities seas
Clearing legal 0.77% 38106115 -22367578 0 0 N/A 0
Company pers
Ltd. on
Over
seas
Qu natu
Hongzhen ral 0.73% 36096590 0 0 0 N/A 0
pers
on
Jilin
Province State
Yandong -
State- own
Owned ed 0.45% 22388059 0 0 0 N/A 0
Capital legal
Investment pers
Co. Ltd. on
Industrial
and
Commercial
Bank of
China Co.Ltd.-Huatai-
PineBridge Others 0.36% 17613200 826600 0 0 N/A 0CSI 300
Trading
Open Index
Securities
Investment
Fund
Changchun
Equity
Investment
Fund
Managemen
t Co. Ltd. - Othe
Changchun rs 0.33% 16417910 0 0 0 N/A 0
Changxing
Equity
Investment
Fund
Partnership
56Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
(Limited
Partnership)
Dom
estic
Duanmu natu
Xiaoyi ral 0.32% 15761031 11141731 0 0 N/A 0
pers
on
Strategic investors Among the above shareholders National Manufacturing Transformation
or general legal and Upgrading Fund Co. Ltd. Jilin Province Private Equity Co. Ltd. Jilin
persons who Province Yandong State-Owned Capital Investment Co. Ltd. and
become the top 10 Changchun Equity Investment Fund Management Co. Ltd. - Changchun
shareholders due to Changxing Equity Investment Fund Partnership (Limited Partnership)
the issuance of new among other investors became the Company’s top ten shareholders as a
shares result of the Company’s non-public issuance of shares to specific targets.Among the above shareholders FAW Bestune is a holding subsidiary of
Description of FAW and is a person acting in concert as specified in the Regulations for
correlation or the Takeover of Listed Companies. The public disclosure data indicates that
concerted action of the Company does not know whether there is a correlation between other
the above shareholders of outstanding shares nor whether other shareholders of
shareholders 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 N/A
voting rights and
waiving voting
rights
Special description
of the existence of
repurchase
dedicated accounts N/A
among the 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)
Number of Type of Shares
Name of Shareholder Unrestricted SharesHeld at the End of the Type of Shares Qty.Reporting Period
China FAW Co. Ltd. 3060649901.00 CNY ordinaryshares 3060649901.00
FAW Bestune Auto Co. Ltd. 784500000.00 CNY ordinaryshares 784500000.00
57Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
National Manufacturing
Transformation and 67164179.00 CNY ordinary 67164179.00
Upgrading Fund Co. Ltd. shares
Jilin Province Private Equity
Co. Ltd. 46268656.00
CNY ordinary
shares 46268656.00
Hong Kong Securities
Clearing Company Ltd. 38106115.00
CNY ordinary
shares 38106115.00
Qu Hongzhen 36096590.00 CNY ordinaryshares 36096590.00
Jilin Province Yandong State-
Owned Capital Investment 22388059.00 CNY ordinaryshares 22388059.00Co. Ltd.Industrial and Commercial
Bank of China Co. Ltd.-
Huatai-PineBridge CSI 300 17613200.00 CNY ordinaryshares 17613200.00Trading Open Index
Securities Investment Fund
Changchun Equity
Investment Fund
Management Co. Ltd. -
Changchun Changxing 16417910.00 CNY ordinary 16417910.00
Equity Investment Fund shares
Partnership (Limited
Partnership)
Duanmu Xiaoyi 15761031.00 CNY ordinaryshares 15761031.00
Description of
Related Parties or
Concerted Actions
Among the Top 10 Among the above shareholders FAW Bestune is a holding subsidiary of
Shareholders with FAW and is a person acting in concert as specified in the Regulations for
Unrestricted the Takeover of Listed Companies. The public disclosure data indicates that
Shares and the Company does not know whether there is a correlation between other
Between the Top 10 shareholders of outstanding shares nor whether other shareholders of
Shareholders with outstanding shares are persons acting in concert as specified in the
Unrestricted Shares Regulations for the Takeover of Listed Companies.and the Top 10
Shareholders with
Shares
Description of Qu Hongzhen an overseas natural person holds 36096590 shares of the
participation in Company through the customer margin trading guaranteed securities
financing bonds account at CITIC Securities; Duanmu Xiaoyi a domestic natural person
58Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
business of the top holds 15761031 shares of the Company through the customer margin
10 shareholders trading guaranteed securities account at China Securities Co. Ltd.
with ordinary
shares
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. Changes in Shareholding of Directors Supervisors and Senior Management
□Applicable□Not applicable
The shareholding of the Company’s directors supervisors and senior executives remained
unchanged during the reporting period. For details please refer to the 2024 Annual Report.V Changes in controlling shareholders or actual controllers
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.
59Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Section VII Bonds
□Applicable□Not applicable
60Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Section VIII Financial Report
I. Audit Report
Is the semi-annual report audited
□Yes□No
The semi-annual financial report of the Company is not audited.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.June 30 2025
Unit: CNY
Item Ending balance Opening balance
Current assets:
Monetary capital 27226459877.13 19852961021.66
Settlement reserve fund
Loans to banks and other
financial institutions
Financial assets held for trading 5102739.73
Derivative financial assets
Notes receivable 300000.00 2641582.80
Accounts receivable 8413701687.51 7067296142.54
Accounts receivable financing 6250344325.45 10019816248.98
Prepayments 153344659.70 128639159.47
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves
receivable
Other receivables 1681860160.35 1340633312.48
Including: interests receivable
Dividends receivable 157707661.77
Financial assets purchased under
agreements to resell
61Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Item Ending balance Opening balance
Inventories 12268923565.48 10117213109.97
Including: Data resources
Contract assets 14535632.85 14455542.05
Held-for-sale assets
Current portion of non-current
366794659.02377668442.06
assets
Other current assets 1091164647.41 1413638174.22
Total current assets 57472531954.63 50334962736.23
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables 110729218.36 110911235.61
Long-term equity investments 1161550784.02 1176288461.09
Other equity instruments
589630392.00540066528.00
investments
Other non-current financial
assets
Investment properties 47178054.55 52835976.31
Fixed assets 10608424359.95 11198300572.20
Project under construction 762817790.85 688181815.22
Productive biological assets
Oil and gas assets
Right-of-use assets 86146431.81 104360320.57
Intangible assets 2301506301.83 2337101200.98
Including: Data resources
Development expenditures 529542097.97 500611951.24
Including: Data resources
Goodwill
Long-term deferred expenses
Deferred Income tax assets 3280839948.65 3061404632.44
Other non-current assets 2711695452.99 2644193586.72
Total non-current assets 22190060832.98 22414256280.38
Total assets 79662592787.61 72749219016.61
Current liabilities:
Short-term loans
Borrowing from the central bank
62Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Item Ending balance Opening balance
Placements from banks and
other financial institutions
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable 21803140258.04 15370906363.16
Accounts payable 19535024967.25 17246353969.05
Advance receipts 662358.34 674009.56
Contract liabilities 2489872513.67 2430554164.50
Financial assets sold under
agreement to repurchase
Deposits taking and interbank
deposits
Acting trading securities
Acting underwriting securities
Employee compensation payable 421898208.98 1043554896.06
Taxes payable 252601280.60 215532903.02
Other payables 3237442886.60 4526208921.23
Including: interests payable
Dividends payable 171500.02 171500.02
Handling charges and
commissions payable
Reinsurance accounts payable
Held-for-sale liabilities
Current portion of non-current
12714703.3429941701.02
liabilities
Other current liabilities 192157579.59 217767924.33
Total current liabilities 47945514756.41 41081494851.93
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: preferred shares
Perpetual Bond
Lease liabilities 7387319.62 27431600.64
Long-term payables
Long-term employee 690257123.52 692790054.95
63Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Item Ending balance Opening balance
compensation payable
Estimated liabilities 1239330087.42 992714878.02
Deferred income 2903353226.50 2936362847.77
Deferred income tax liabilities 430393079.81 423775650.57
Other non-current liabilities
Total non-current liabilities 5270720836.87 5073075031.95
Total liabilities 53216235593.28 46154569883.88
Owner’s equities:
Share capital 4921280975.00 4922371176.00
Other equity instruments
Including: preferred shares
Perpetual Bond
Capital reserves 11956471332.90 11961480047.74
Less: treasury shares 6246851.73
Other comprehensive incomes -43400118.30 -96912346.71
Special reserves 273221478.12 277345883.15
Surplus reserves 3204548247.40 3204548247.40
General risk provision
Undistributed profits 5828931668.45 6055339906.81
Total equity attributable to owners
26141053583.5726317926062.66
of the parent company
Minority equity 305303610.76 276723070.07
Total owners’ equity 26446357194.33 26594649132.73
Total liabilities and owner’s
79662592787.6172749219016.61
equities
Legal representative: Li Sheng Person in charge of accounting: Yu Changxin Person in charge of the accounting organization:
Yang Li
2. Balance sheet of parent company
Unit: CNY
Item Ending balance Opening balance
Current assets:
Monetary capital 359307477.90 152222868.42
Financial assets held for trading
Derivative financial assets
Notes receivable
Accounts receivable
64Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Item Ending balance Opening balance
Accounts receivable financing
Prepayments
Other receivables 6553832963.97 6470963348.86
Including: interests receivable
Dividends receivable 156960226.90
Inventories
Including: Data resources
Contract assets
Held-for-sale assets
Current portion of non-current
assets
Other current assets 875554.72 653349.48
Total current assets 6914015996.59 6623839566.76
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investments 21799225298.95 21795117325.10
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 21799225298.95 21795117325.10
Total assets 28713241295.54 28418956891.86
65Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Item Ending balance Opening balance
Current liabilities:
Short-term loans
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable
Accounts payable 12000.00 2727107.71
Advance receipts
Contract liabilities
Employee compensation payable
Taxes payable 240493.68 3164670.01
Other payables 883044775.88 342246068.80
Including: interests payable
Dividends payable 171500.02 171500.02
Held-for-sale liabilities
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 883297269.56 348137846.52
Non-current liabilities:
Long-term loans
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
Total liabilities 883297269.56 348137846.52
Owner’s equities:
Share capital 4921280975.00 4922371176.00
Other equity instruments
66Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Item Ending balance Opening balance
Including: preferred shares
Perpetual Bond
Capital reserves 13797364225.24 13802357345.82
Less: treasury shares 6246851.73
Other comprehensive incomes 14575781.62 12671266.92
Special reserves
Surplus reserves 1968725127.44 1968725127.44
Undistributed profits 7127997916.68 7370940980.89
Total owners’ equity 27829944025.98 28070819045.34
Total liabilities and owner’s equities 28713241295.54 28418956891.86
3. Consolidated profit statement
Unit: CNY
Item Semi-annual 2025 Semi-annual 2024
I. Total operating income 28078705058.07 36465688621.29
Including: operating income 28078705058.07 36465688621.29
Interest income
Premium earned
Handling charges and commission income
II. Total operating cost 28689523184.78 36457256059.41
Including: operating cost 26840562485.53 34355216264.53
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 138903052.31 105812766.58
Sales expenses 472042436.11 520770818.03
Administrative expenses 605966739.38 749958633.22
R&D expenses 884897695.04 1135583276.97
Financial expenses -252849223.59 -410085699.92
Including: interest expenses 1611404.27 1431811.40
Interest income 255428034.69 339376065.31
Add: Other incomes 524635067.40 353779659.32
67Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Item Semi-annual 2025 Semi-annual 2024
Investment income (loss to be listed with “-”) -30115859.77 101886844.66
Including: income from investment in
18178157.63213988413.65
associates and joint ventures
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 “-”) -30655705.99 -8593082.48Impairment loss on assets (loss to be listed with “--151608226.07-108034774.17
”)
Income from assets disposal (loss to be listed with
154614688.74746088.82
“-”)
III. Operating profit (loss to be listed with “-”) -143948162.40 348217298.03
Add: non-operating income 11324153.35 28106223.95
Less: non-operating expenses 1662537.37 3783791.81
IV. Total profit (loss to be listed with “-”) -134286546.42 372539730.17
Less: income tax expenses -175154040.98 -148541602.52
V. Net profit (net loss to be listed with “-”) 40867494.56 521081332.69
(I) Classified by continuity of operation
1. Net profit from continuing operations (net loss to
40867494.56521081332.69
be listed with “-”)
2. Net profit from discontinuing operations (net loss
to be listed with “-”)
(II) Classified by attribution of the ownership
1. Net profit attributable to shareholders of the
19655810.39506807530.06
parent company (net loss to be listed with “-”)
2. Minority profit and loss (net loss to be listed with
21211684.1714273802.63
“-”)
VI. Net after-tax amount of other comprehensive income 61192422.39 134961.61
Net after-tax amount of other comprehensive income
53512228.41480792.84
attributable to the owners of the parent company
(I) Other comprehensive incomes that cannot be
51468378.70
reclassified into profits or losses
1. Changes arising from re-measurement of the
68Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Item Semi-annual 2025 Semi-annual 2024
defined benefit plan
2. Other comprehensive incomes that cannot be
1904514.70
transferred to profits or losses under the equity method
3. Changes in fair value of investment in other
49563864.00
equity instruments
4. Changes in fair value of the Company’s credit
risk
5. Others
(II) Other comprehensive incomes that will be
2043849.71480792.84
reclassified into profits or losses
1. Other comprehensive incomes that can be
5583060.65
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
6. Translation difference in foreign currency
2043849.71-5102267.81
financial statements
7. Others
Net after-tax amount of other comprehensive income
7680193.98-345831.23
attributable to minority shareholders
VII. Total comprehensive income 102059916.95 521216294.30
Total comprehensive income attributable to the owners
73168038.80507288322.90
of parent company
Total comprehensive income attributable to minority
28891878.1513927971.40
shareholders
VIII. Earnings per share:
(I) Basic income per share 0.0040 0.1096
(II) Diluted income per share 0.0040 0.1096
In case of business combination under common control in the current period the net profit realized by the
combined party before the combination and that in the previous period are CNY 0.00.Legal representative: Li Sheng Person in charge of accounting: Yu Changxin Person in charge of the accounting
organization: Yang Li
69Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
4. Profit statement of parent company
Unit: CNY
Item Semi-annual 2025 Semi-annual 2024
I. Operating income
Less: operating costs -795847.41 -1270265.34
Taxes and surcharges -496286.41 41580.57
Sales expenses
Administrative expenses 303554.67 826289.90
R&D expenses
Financial expenses -603115.67 -2138135.81
Including: interest expenses 17012.29 319616.24
Interest income 624863.91 2458998.74
Add: Other incomes 121677.32 57741.82
Investment income (loss to be listed with “-”) 2203459.15 548393139.83
Including: income from investment in
2203459.15194893139.83
associates and joint ventures
Gains on derecognition of financial
assets at amortized cost (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 “-”)Impairment loss on assets (loss to be listed with “-”)
Income from assets disposal (loss to be listed with
“-”)
II. Operating profit (loss to be listed with “-”) 3120983.88 549721146.99
Add: non-operating income 0.66 1.11
Less: non-operating expenses
III. Total profit (total loss to be listed with “-”) 3120984.54 549721148.10
Less: income tax expenses
IV. Net profit (net loss to be listed with “-”) 3120984.54 549721148.10
(I) Net profit from continuing operations (net loss to be
3120984.54549721148.10
listed with“-”)
(II) Net profit from discontinuing operations (net loss
to be listed with “-”)
70Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Item Semi-annual 2025 Semi-annual 2024
V. Net after-tax amount of other comprehensive incomes 1904514.70 5583060.65
(I) Other comprehensive incomes that cannot be
1904514.70
reclassified into profits or losses
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
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
5583060.65
reclassified into profits or losses
1. Other comprehensive incomes that can be
5583060.65
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
6. Translation difference in foreign currency
financial statements
7. Others
VI. Total comprehensive income 5025499.24 555304208.75
VII. Earnings per share:
(I) Basic income per share
(II) Diluted income per share
5. Consolidated cash flow statement
Unit: CNY
Item Semi-annual 2025 Semi-annual 2024
I. Cash flows from operating activities:
Cash received from sales of goods and provision
33622023561.9127819030378.23
of services
71Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Item Semi-annual 2025 Semi-annual 2024
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 355567798.16 97674823.55
Other cash received relating to operating
729190041.58774733470.37
activities
Subtotal of cash inflows from operating activities 34706781401.65 28691438672.15
Cash paid for goods and services 22598319244.50 20212451175.05
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 2685058298.28 2413856035.91
Taxes paid 636112769.58 677899797.50
Cash paid for other operating activities 1152002068.58 966319958.58
Subtotal of cash outflows from operating activities 27071492380.94 24270526967.04
Net cash flows from operating activities 7635289020.71 4420911705.11
II. Cash flows from investment activities:
72Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Item Semi-annual 2025 Semi-annual 2024
Cash received from the return of investment 22200000000.00
Cash received from acquirement of investment
217657522.006500530.62
income
Net cash received from fixed assets disposal
88370290.5877910098.29
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 22506027812.58 84410628.91
Cash paid to acquire fixed assets intangible
468913194.46859207774.19
assets and other long-term assets
Cash paid to acquire investments 22200000000.00 4900000.00
Net increase in pledged loans
Net cash paid to acquire subsidiaries and other
business units
Other cash paid relating to investment activities
Subtotal of cash outflows from investment
22668913194.46864107774.19
activities
Net cash flows from investment activities -162885381.88 -779697145.28
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
247096174.17693696364.17
or interest repayment
Including: dividends and profits paid to minority
shareholders by subsidiaries
Other cash paid relating to financing activities 1227805.50 11981752.58
Subtotal of cash outflows from financing activities 248323979.67 705678116.75
Net cash flows from financing activities -248323979.67 -705678116.75
IV. Effects from change of exchange rate on cash
7609127.397284135.01
and cash equivalents
73Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Item Semi-annual 2025 Semi-annual 2024
V. Net increase in cash and cash equivalents 7231688786.55 2942820578.09
Add: opening balance of cash and cash
19391201104.6823108018586.92
equivalents
VI. Ending Balance of cash and cash equivalents 26622889891.23 26050839165.01
6. Cash flow statement of parent company
Unit: CNY
Item Semi-annual 2025 Semi-annual 2024
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
801706960.00265696548.98
activities
Subtotal of cash inflows from operating activities 801706960.00 265696548.98
Cash paid for goods and services
Cash paid to and on behalf of employees 189000.00 189000.00
Taxes paid
Cash paid for other operating activities 479889102.72 85037064.99
Subtotal of cash outflows from operating activities 480078102.72 85226064.99
Net cash flows from operating activities 321628857.28 180470483.99
II. Cash flows from investment activities:
Cash received from the return of investment
Cash received from acquirement of investment
156960226.90353500000.00
income
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 156960226.90 353500000.00
Cash paid to acquire fixed assets intangible
24408300.53
assets and other long-term assets
Cash paid to acquire investments
Net cash paid to acquire subsidiaries and other
business units
Other cash paid relating to investment activities
74Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Item Semi-annual 2025 Semi-annual 2024
Subtotal of cash outflows from investment
24408300.53
activities
Net cash flows from investment activities 132551926.37 353500000.00
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
247096174.17693696364.17
or interest repayment
Other cash paid relating to financing activities
Subtotal of cash outflows from financing activities 247096174.17 693696364.17
Net cash flows from financing activities -247096174.17 -693696364.17
IV. Effects from change of exchange rate on cash
and cash equivalents
V. Net increase in cash and cash equivalents 207084609.48 -159725880.18
Add: opening balance of cash and cash
152222868.42165157237.21
equivalents
VI. Ending Balance of cash and cash equivalents 359307477.90 5431357.03
75Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
7. Consolidated statement of changes in owners’ equity
Amount in the current period
Unit: CNY
Semi-annual 2025
Equity Attributable To Owners of the Parent Company
Other equity instruments General
Item Less: Other Minority Total owners’
Preferre Special Surplus risk Undistributed Other
Share capital Perpetu Other Capital reserves treasury comprehensive Subtotal equity equity
d reserves reserves provisio profits s
al Bond s shares incomes
Shares n
I. Ending -
4922371176.11961480047.6246851.277345883.3204548247.6055339906.26317926062.276723070.26594649132.
Balance of the 96912346.
007473154081660773
previous year 71
Add: changes
in accounting
policies
Correction of
prior period
errors
Others
II. Opening
4922371176.11961480047.6246851.-277345883.3204548247.6055339906.26317926062.276723070.26594649132.
Balance of the
00747396912346.71154081660773
current year
III.Increase/decrea
se in amount of -
-28580540.6
the current -1090201.00 -5008714.84 6246851. 53512228.41 -4124405.03 -176872479.09 -148291938.40
226408238.369
period 73
(decrease to be
listed with “-”)
(I) Total
28580540.6
comprehensive 53512228.41 19655810.39 73168038.80 101748579.49
9
income
(II) Invested
-
and decreased
-1090201.00-5008714.846246851.147935.89147935.89
capital of
73
owners
1. Ordinary -1090201.00 -4993120.58 -6083321.58 -6083321.58
76Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
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 -15594.26 6246851. 6231257.47 6231257.47
73
(III) Profit -
-246064048.75-246064048.75
distribution 246064048.75
1.
Appropriation
to surplus
reserves
2.
Appropriation
to general risk
reserves
3. Distribution
-
to owners (or -246064048.75 -246064048.75
246064048.75
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
77Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
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
-4124405.03-4124405.03-4124405.03
reserves
1.
Appropriation 15518831.9
15518831.9015518831.90
in the current 0
period
2. Use in the 19643236.9
19643236.9319643236.93
current period 3
(VI) Others
IV. Ending
4921280975.11956471332.273221478.3204548247.5828931668.26141053583.305303610.26446357194.
Balance of the -43400118.30
0090124045577633
current period
Amount of the previous year
Unit: CNY
Item Semi-annual 2024
78Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Equity Attributable To Owners of the Parent Company
Other equity instruments General
Less: Other Minority Total owners’
Preferre Special Surplus risk Undistributed OtherShare capital Perpetu Other Capital reserves treasury comprehensiv Subtotal
equity equity
d reserves reserves provisio profits s
al Bond s shares e incomes
Shares n
I. Ending
4636485668.10343418951.86131497.319314527.3090408316.6191777512.24486759369.24486759369.
Balance of the -8514110.10
0073278587324040
previous year
Add: changes
in accounting
policies
Correction of
prior period
errors
-
245455442.
Others 374018599.99 118685308. 5105359.06 54756122.34 315194773.09 560650215.22
13
30
II. Opening -
4636485668.10717437551.86131497.319314527.3095513675.6246533634.24801954142.245455442.25047409584.
Balance of the 127199418.
007227859366491362
current year 40
III.Increase/decrea
se in amount of -
-13927971.4
the current -12621954.00 -66657273.11 79884645. 480792.84 -9199833.45 -194885649.22 -180957677.82
186772027.040
period 54
(decrease to be
listed with “-”)
(I) Total
13927971.4
comprehensive 480792.84 506807530.06 507288322.90 521216294.30
0
income
(II) Invested
-
and decreased
-12621954.00-66657273.1179884645.605418.43605418.43
capital of
54
owners
1. Ordinary -
-12621954.00-67262691.54
shares invested 79884645.
79Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
by owners 54
2. Capital
contributed by
holders of other 605418.43 605418.43 605418.43
equity
instruments
3. Amounts of
share-based
payments
recorded in
owner’s equity
4. Others
(III) Profit -
-693579557.10-693579557.10
distribution 693579557.10
1.
Appropriation
to surplus
reserves
2.
Appropriation
to general risk
reserves
3. Distribution
-
to owners (or -693579557.10 -693579557.10
693579557.10
shareholders)
4. Others
(IV) Internal
carryover of
owners’ equity
1. Transfer
from capital
reserve to paid-
in capital (or
share capital)
2. Transfer
80Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
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
-9199833.45-9199833.45-9199833.45
reserves
1.
Appropriation
6016604.466016604.466016604.46
in the current
period
-
2. Use in the
15216437.9-15216437.91-15216437.91
current period
(VI) Others
IV. Ending -
4623863714.10650780278.6246851.7310114694.3095513675.6059761607.24607068493.259383413.24866451906.
Balance of the 126718625.
00613409362275380
current period 56
81Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
8. Statement of Changes in Owners’ Equity of Parent Company
Amount in the current period
Unit: CNY
Semi-annual 2025
Other equity instruments Specia
Item Less: Other l Surplus Undistributed Other Total owners’
Share capital Preferre Perpetu Other Capital reserves treasury comprehensi
d reserve reserves profits s equity
al Bond s shares ve incomes
Shares s
I. Ending
4922371176.13802357345.6246851.12671266.91968725127.7370940980.28070819045.
Balance of the
0082732448934
previous year
Add: changes
in accounting
policies
Correction of
prior period
errors
Others
II. Opening
4922371176.13802357345.6246851.12671266.91968725127.7370940980.28070819045.
Balance of the
0082732448934
current year
III.Increase/decrea
se in amount of -
-
the current -1090201.00 -4993120.58 6246851. 1904514.70 -240875019.36
242943064.21
period 73
(decrease to be
listed with “-”)
(I) Total
comprehensive 1904514.70 3120984.54 5025499.24
income
(II) Invested -1090201.00 -4993120.58 - 163530.15
82Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
and decreased 6246851.capital of 73
owners
1. Ordinary
shares invested -1090201.00 -4993120.58 -6083321.58
by owners
2. Capital
contributed by
holders of
other equity
instruments
3. Amounts of
share-based
payments
recorded in
owner’s equity
-
4. Others 6246851. 6246851.73
73
(III) Profit -
-246064048.75
distribution 246064048.75
1.
Appropriation
to surplus
reserves
2. Distribution
-
to owners (or -246064048.75
246064048.75
shareholders)
3. Others
(IV) Internal
carryover of
owners’ equity
1. Transfer
from capital
reserve to paid-
in capital (or
83Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
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. Ending 4921280975. 13797364225. 14575781.6 1968725127. 7127997916. 27829944025.Balance of the 00 24 2 44 68 98
84Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
current period
Amount of the previous year
Unit: CNY
Semi-annual 2024
Other equity Sp
O
instruments ec
t
Item Other ial
Share capital Prefe
Less: treasury Undistributed h Total owners’
Ot Capital reserves comprehensiv re Surplus reserves
rred Perpetu shares profits e equity
he e incomes se
Shar al Bond r
rs rv
es ses
I. Ending
Balance of the 4636485668.00 12171693342.10 86131497.27 863137.93 1859690555.97 7083209394.76 25665810601.49
previous year
Add: changes
in accounting
policies
Correction of
prior period
errors
Others
II. Opening
Balance of the 4636485668.00 12171693342.10 86131497.27 863137.93 1859690555.97 7083209394.76 25665810601.49
current year
III.Increase/decre
ase in amount
of the current
-12621954.00-67262691.5479884645.545583060.65-143858409.00-138275348.35
period
(decrease to belisted with “-”)
(I) Total 5583060.65 549721148.10 555304208.75
comprehensive
85Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
income
(II) Invested
and decreased -
-12621954.00-67262691.54
capital of 79884645.54
owners
1. Ordinary
shares
-12621954.00-67262691.54-79884645.54
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 79884645.54
79884645.54
(III) Profit
-693579557.10-693579557.10
distribution
1.
Appropriation
to surplus
reserves
2. Distribution
to owners (or -693579557.10 -693579557.10
shareholders)
3. Others
(IV) Internal
carryover of
owners’ equity
1. Transfer
from capital
86Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
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
87Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
current period
(VI) Others
IV. Ending
Balance of the 4623863714.00 12104430650.56 6246851.73 6446198.58 1859690555.97 6939350985.76 25527535253.14
current period
88Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
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 the System Restructuring [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 transferred all its
assets and liabilities except the equity and some reserved assets of First Automobile Finance Co. Ltd. and
Sanguard Automobile Insurance Co. Ltd. to FAW Besturn (now renamed as FAW Bestune Auto Co. Ltd.).Subsequently FAW Car used its 100% equity in FAW Besturn as divested assets to exchange for equivalent
part of 100% equity of FAW Jiefang Automotive Co. Ltd. held by FAW. 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 name of FAW Car 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 2021 extraordinary shareholders’ meeting and reviewed and
approved the Proposal on the Restricted Share Incentive Plan of FAW Jiefang Group Co. Ltd. (Draft) and Its
Abstract the Proposal on the Regulations for the Implementation Assessment of Restricted Share Incentive Plan
of FAW Jiefang Group Co. Ltd. the Proposal on the Regulations for Restricted Share Incentive of FAW
Jiefang Group Co. Ltd. and the Proposal on Requesting the Shareholders Meeting 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 Objects and the Number of Grants in the Phase I Restricted
89Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Share Incentive Plan and the Proposal on Granting Restricted Shares to the Incentive Objects of the Phase I
Restricted Share Incentive Plan for the First Time. 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 with the title of senior director and above were granted 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 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
90Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
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 and 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.
91Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
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 Annual GeneralMeeting of Shareholders. These meetings reviewed and approved “Proposal on Unfulfilling Conditions forReleasing 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 Restricted ShareIncentive 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 General Meeting ofShareholders. At these meetings the “Proposal on Unfulfilled Conditions for the Third Release Period of thePhase I Restricted Share Incentive Plan and the Repurchase and Cancellation of Some Restricted Shares as wellas 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 approved by theCSRC’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 Board of
Directors and Board of Supervisors. It owns two wholly-owned subsidiaries - Jiefang Limited and FAW
Jiefang Group International Automobile Co. Ltd. - and one non-wholly-owned subsidiary FAW Africa
Investment Co. Ltd. Jiefang Limited has six wholly-owned subsidiaries: FAW Jiefang Qingdao Automotive
Co. Ltd. FAW Jiefang Lvdong Recycling Technology (Wuxi) Co. Ltd. FAW Jiefang Dalian Diesel Engine
92Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Co. Ltd. FAW Jiefang Austria R&D Co. Ltd. FAW Jiefang Automobile Sales Co. Ltd. and FAW Jiefang
Younida Transport Technology (Tianjin) Co. Ltd.; and one non-wholly-owned subsidiary Jiefang Motors
Tanzania Ltd. It also has 10 associated companies namely Sanguard Automobile Insurance Co. Ltd. FAW
Changchun Baoyou Jiefang Steel Processing and Distribution Co. Ltd. FAW Changchun Ansteel 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 owns one joint venture company Jiefang Times New Energy Technology Co. Ltd. while FAW
(Africa) Investment Co. Ltd. has one non-wholly-owned subsidiary FAW Vehicle Manufacturing South Africa
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 21 2025.IV. Basis of Preparation for Financial Statements
1. Preparation basis
The financial statements are prepared according to the Accounting Standards for Business Enterprises issued by
the Ministry of Finance and its application guidelines interpretations and other relevant provisions (hereinafter
collectively referred to as “ASBE”). Besides the Company also discloses relevant financial information
according to the Rules No.15 for Preparing Information Disclosure by Companies Offering Securities to the
Public - General Provisions on Financial Reporting (2023 Revision) issued by China Securities Regulatory
Commission.
93Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
2. Continuing operations
The financial statements are presented on continuing operations.The financial accounting of the Company is based on the accrual basis. The financial statements are prepared on
a historical cost basis except for certain financial instruments. If the assets are impaired the corresponding
provision for impairment shall be made as specified.V. Significant Accounting Policies and Accounting Estimates
Tips for specific accounting policies and accounting estimates:
The Company determines the depreciation of fixed assets amortization of intangible assets capitalization
criteria for R&D expenses and revenue recognition policies based on its own production and operatingcharacteristics. For specific accounting policies please refer to Notes 21 24 and 31 in V “SignificantAccounting Policies and Accounting Estimates” of Section VIII – Financial Report.
1. Statement of compliance with accounting standards for business enterprises
The financial statements prepared by the Company met the requirements of ASBE and truly and fully reflected
the consolidated and company’s financial position of the Company as of June 30 2025 and information such as
consolidated and company’s operating results and consolidated and company’s cash flow for 2025 H1.
2. Accounting period
The accounting period of the Company is a calendar year namely from January 1 to December 31 every year.
3. Operating cycle
The operating cycle of the Company is 12 months.
4. Recording currency
The Company and its domestic subsidiaries use CNY as their recording currency. The Company’s overseas
subsidiaries determine their functional currency based on the currency of the main economic environment in
which they operate. The Company uses CNY to prepare the financial statements.
5. Methods for determining materiality criteria and selection basis
□Applicable □Not applicable
Item Materiality Criteria
Receivables with significant provision for bad debts 10% of the absolute value of net profit or 10% of
by individual item similar business
Write-off of significant receivables in the current 10% of the absolute value of net profit or 10% of
94Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
period similar business
Significant changes in the book value of contractual 10% of the absolute value of net profit or 10% of
assets similar business
10% of the absolute value of net profit or 10% of
Major projects under construction
similar business
10% of the absolute value of net profit or 10% of
Significant capitalized R&D projects
similar business
6. Accounting treatment method for business combination under common control and not under common
control
(1) Business combination under common control
As to the business combination under common control the assets and liabilities of the combined party
obtained by the combining party are calculated in the book value in the consolidated financial statements of the
ultimate controller by the combined party on the combination date. The capital reserve (stock premium) is
adjusted based on the difference between the book value of the combination consideration and the book value of
the net assets obtained in the combination. The retained earnings are adjusted if the capital reserve (stock
premium) is insufficient for offset.Business combination under common control realized step-by-step through multiple transactions
The assets and liabilities of the combined party obtained by the combining party in the combination are
measured based on the book value of the ultimate controlling party in the consolidated financial statements on
the combination date. The capital reserve (share capital premium) is adjusted based on the difference between
the sum of the book value of the pre-combination investment and the book value of the newly paid
consideration on the combination date and the book value of the net assets obtained in the combination. The
retained earnings are adjusted if the capital reserve is insufficient for offset. The long-term equity investment
held before the acquisition of the combined party’s control by the combining party and the profit or loss other
comprehensive incomes and changes in other owners’ equities that have been recognized during the period from
the date of acquisition of the original equity or the date of common control of the combining party and the
combined entity (which is later) to the combination date shall offset against the retained opening earnings or
current profit or loss respectively during the period of comparative statement.
(2) Business combination not under common control
In case of business combination not under common control the combination cost is the fair value of assets paid
liabilities incurred or assumed and equity securities issued on the acquisition date for acquiring the control over
the acquiree. The assets liabilities and contingent liabilities of the acquiree obtained are recognized as per the
fair value on the acquisition date.Where the combination cost is greater than the fair value of identifiable net assets obtained from the acquiree
the difference shall be recognized as goodwill and subsequently measured by deducting the accumulated
depreciation provision by cost; Where the combination cost is less than the fair value of identifiable net assets
obtained from the acquiree the difference shall be included in current profits and losses after review.Business combination not under common control realized step-by-step through multiple transactions
95Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
The combination cost is the sum of the consideration paid on the acquisition date and the fair value of the
acquiree’s equity already held before the acquisition date on the acquisition date. The acquiree’s equity held
before the acquisition date shall be remeasured at the fair value of the equity on the acquisition date. The
difference between the fair value and its book value shall be included in the investment income for the current
period. If the acquiree’s equity held before the acquisition date involves other comprehensive income changes
in other owner’s equities shall be transformed into the current profit on the acquisition date except other
comprehensive income generated due to remeasuring the change in net liabilities or net assets of the defined
benefit plan (DBP) by the investee and other comprehensive income related to a non-trading equity instrument
investment originally measured at fair value with its changes included in other comprehensive income.
(3) Disposal of related handling charges for business combination
The overhead for the business combination of the combining party including the expenses for audit legal
services assessment and other administrative expenses shall be recorded in current profits and losses when
they occur. The transaction expenses of the equity securities or liability securities issued as the consideration for
the combination shall be recorded as the initial recognition amount of the equity securities or liability securities.
7. Criteria for control and preparation method of consolidated financial statements
(1) Criteria for control
The scope of consolidated financial statements is determined on the basis of control. Control refers to the power
of the Company over the investee with which the Company enjoys variable returns through participating in
related activities of the investee and is able to influence its amount of return with the power over the investee.The Company will carry out re-assessment when changes in relevant facts and circumstances result in changes
in elements involved in the definition of control.When determining whether to include structured entities in the consolidation scope the Company assesses
whether to control the structured entity by comprehensively taking all facts and circumstances into
consideration including assessing the purpose and design of the structured entity identifying the types of
variable returns and assessing whether it assumes part or all of the variability of the returns through its
participation in related activities of the entity.
(2) Preparation methods of consolidated financial statements
The consolidated financial statements are prepared by the Company based on the financial statements of the
Company and its subsidiaries and with other relevant data. The major accounting policies and accounting
periods adopted by the subsidiaries are defined as the same as those of the Company during the preparation of
the consolidated financial statements. The significant transactions and balances between companies are offset.During the reporting period a subsidiary or business added as a result of business combination under common
control is considered to have been included in the Company’s consolidation scope from the date when they
came under the control of the same ultimate controlling party. Their operating results and cash flows from that
date are included in the consolidated income statement and consolidated cash flow statement respectively.
96Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
For a subsidiary or business increased in the reporting period due to business combination not under common
control its earnings expenses and profits from the acquisition date to the end of the reporting period are
included in the consolidated profit statement and its cash flows are included in the consolidated cash flow
statement.The portion of shareholders’ equity of subsidiaries not belonging to the Company shall be listed separately
under the item “Shareholders’ Equity” in consolidated balance sheet as minority shareholders’ equity. The
portion of net profit or loss of subsidiaries in current period belonging to minority shareholders’ equity shall be
listed separately under the item “Minority Shareholders’ Profit or Loss” in the consolidated income statement. If
the loss of a subsidiary borne by minority shareholders exceeds the amount of their shares of owners’ equity in
the subsidiary at the beginning the balance shall offset the minority equity.
(3) Purchase of minority shareholders’ equity in subsidiaries
The capital reserve (stock premium) in the consolidated balance sheet is adjusted based on the difference
between the newly acquired long-term equity investment cost from the purchase of minority equity and the
share of net assets in the subsidiary calculated constantly from the purchase date or combination date as per the
newly increased shareholding proportion and the difference between the disposal price obtained from the
partial disposal of equity investment in the subsidiary without losing the right of control and the share of net
assets in the subsidiary calculated continuously from the purchase date or combination date corresponding to
the disposed long-term equity investment. The retained earnings are adjusted if the capital reserve is insufficient
for offset.
(4) Disposal of the loss of control over subsidiaries
If the control power on the original subsidiaries is lost due to the disposal of part of equity investment or other
reasons the remaining equity shall be recalculated at fair value on the day when the control power is lost. The
balance from the sum of consideration obtained from the disposal of equity and the fair value of the remaining
equity minus the sum of the share of net assets book value and the goodwill of original subsidiaries calculated
continuously starting from the purchase date as per the original shareholding ratio shall be included in current
investment income at the loss of control.Other comprehensive income in connection with equity investment of the original subsidiaries shall be subject
to accounting method on the same basis as the original subsidiary’s direct disposal of relevant assets or
liabilities upon the loss of control. Other changes in owners’ equity related to the original subsidiary that are
accounted by the equity method shall be transferred to the current profits and losses upon the loss of control.
8. Classification of Joint Venture Arrangement and Accounting Treatment Methods for Joint Operations
Joint arrangement refers to an arrangement jointly controlled by two or more participants. Joint arrangements of
the Company include joint operations and joint ventures.
(1) Joint operation
Joint operation refers to the joint arrangement in which the Company enjoys related assets and bears related
liabilities.
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The Company recognizes the following items related to the interest share in the joint operation and carries out
accounting according to the ASBE:
A. Recognizing the assets held separately and the assets held jointly as per its shares;
B. Recognizing the liabilities borne separately and the liabilities borne jointly according to its shares;
C. Recognizing the income generated from the sale of shares enjoyed in the joint operation;
D. Recognizing the income generated from the sale of shares enjoyed in the joint operation as per its shares;
E. Recognizing the expenses incurred separately and the expenses arising from joint operation as per its shares.
(2) Joint ventures
Joint venture refers to a joint arrangement in which the Company only has power over the net assets of the
arrangement.The Company conducts accounting for the investment of joint ventures according to provisions of the equity
method accounting for long-term equity investments.
9. Standards for recognition of cash and cash equivalents
Cash refers to the cash on hand and the deposits that are readily available for payment. Cash equivalents refer to
the short-term and highly liquid investments held by the Company that are readily convertible into known
amounts of cash and with low risk in value change.
10. Foreign currency transaction and foreign currency statement translation
(1) Foreign currency transaction
Foreign currency transactions of the Company are converted into the amount in recording currency at the
exchange rate determined by systematic and reasonable methods.On the balance sheet date the foreign currency monetary items are converted at the spot exchange rate on the
balance sheet date. The exchange difference arising from the difference between the spot exchange rate on the
balance sheet date and the spot exchange rate at the time of initial recognition or on the previous balance sheet
date is included in current profits and losses. Foreign currency non-monetary items measured at historical cost
are still converted at the spot exchange rate on the transaction date. Foreign currency non-monetary items
measured at fair value are converted at the spot exchange rate on the date when the fair value is determined. The
difference between the converted recording currency amount and the original recording currency amount is
included in current profits and losses or other comprehensive income according to the nature of the non-
monetary items.
(2) Translation of foreign currency financial statements
At the balance sheet date when the foreign currency financial statements of overseas subsidiaries are translated
the assets and liabilities of the balance sheet are translated to CNY using the spot exchange rate at the balance
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sheet date. Items of the shareholders’ equity except for “undistributed profits” are translated at the spot
exchange rate at the dates on which such items arose.The income and expense items in the profit statement are translated at the exchange rate determined by
systematic and reasonable methods.All items in the cash flow statement are translated at the exchange rate determined by systematic and reasonable
methods. As an adjustment item for influence amount of cash exchange rate movement is independently
presented as “Influence of exchange rate movement to cash and cash equivalent” in cash flow statement.Differences arising from the translation of financial statements are separately presented as “Othercomprehensive income” in the shareholders’ equity of the balance sheet.During the disposal of overseas operation and upon the loss of the right of control the conversion difference of
foreign currency statements listed under the shareholders’ equity items in the balance sheet and related to the
overseas operation is transferred to the current profits and losses of disposal in full or as per the disposal
proportion of the overseas operation.
11. Financial instruments
Financial instruments refer to contracts that form the financial assets of a party and form financial liabilities or
equity instruments of other parties.
(1) Recognition and derecognition of the financial instruments
The Company recognizes a financial asset or financial liability when it becomes a party to the contract of the
financial instrument.If one of the following conditions is met the financial assets are terminated:
* The contractual right to receive the cash flow of the financial asset is terminated.* The financial asset has been transferred and is in accordance with the following conditions for derecognition.If the current obligations of financial liability have been discharged in total or in part derecognize all or part of
it. The Company (the Debtor) signs an agreement with the Creditor to replace the existing financial liabilities
with new financial liabilities; the existing financial liabilities are derecognized and the new financial liabilities
are recognized when the contractual terms of the new financial liabilities and those of the existing financial
liabilities are different in essence.Financial assets transacted in a conventional way are subject to accounting recognition and derecognition on the
transaction date.
(2) Classification and measurement of financial assets
The Company classifies financial assets into the following three categories according to the business mode of
financial assets management and the contractual cash flow characteristics of financial assets at the time of initial
recognition: financial assets measured at amortized cost financial assets measured at fair value with their
changes included in other comprehensive income and financial assets measured at fair value with their changes
included in the current profits or losses.
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Financial assets are measured at fair value upon initial recognition. For financial assets at fair value through
profit or loss relevant transaction costs are directly included in current profits and losses; for other types of
financial assets relevant transaction costs are included in the initially recognized amount. For receivables
arising from the sale of products or the provision of services that do not include or take into account significant
financing components the Company takes the consideration amount entitled to receive in expectation as the
initially recognized amount.Financial assets measured at amortized cost
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 Company manages the financial assets in order to collect contractual cash flows;
The contract terms of the financial assets stipulate that the cash flow generated on a specific date is
only the payment of the principal and the interest based on the outstanding principal amount.After initial recognition such financial assets are measured at amortized cost using the effective interest method.Any gains or losses on financial assets at amortized cost that are not part of the hedging relationship are charged
to the current profit or loss at derecognition amortization using the effective interest method or recognition of
impairment.Financial assets measured at fair value with their changes included in other comprehensive income
The Company classifies financial assets that meet the following conditions and are not designated to be
financial assets at fair value with their changes included in current profit or loss as financial assets at fair value
with their changes included in other comprehensive incomes:
The Company manages the financial assets in order to collect contractual cash flows and sell the
financial assets;
The contract terms of the financial assets stipulate that the cash flow generated on a specific date is
only the payment of the principal and the interest based on the outstanding principal amount.After initial recognition such financial assets are subsequently measured at fair value. Interests impairment
losses or gains and exchange profits and losses calculated with the effective interest method are included in the
current profits and losses and other gains or losses are included in other comprehensive income. When the
financial assets are derecognized the accumulated profits or losses previously included in other comprehensive
income are transferred out and included in the current profits and losses.Financial assets at fair value through profit or loss
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 the time of initial recognition in order to eliminate or significantly reduce
accounting mismatch the Company irrevocably designates some financial assets that should be measured at
amortized cost or fair value through other comprehensive income as financial assets measured at fair value
through current profits and losses.
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After initial recognition such financial assets are subsequently measured at fair value and the gains or losses
(including interest and dividend income) incurred are included in current profits and losses unless they are part
of a hedging relationship.The business model of managing financial assets refers to how the Company manages financial assets to
generate cash flows. The business model determines whether the cash flow of financial assets managed by the
Company comes from collecting contractual cash flows selling financial assets or both. The Company
determines the business model for managing financial assets on the basis of objective facts and specific business
objectives for managing financial assets decided by key management personnel.The Company evaluates the contractual cash flow characteristics of financial assets to determine whether the
contractual cash flow generated by relevant financial assets on a specific date is only the payment of principal
and interest based on the outstanding principal amount. Principal refers to the fair value of financial assets at
initial recognition; interest includes consideration for the time value of money credit risk associated with the
amount of principal outstanding over a specific period and other underlying borrowing risks costs and profits.Besides the Company evaluates the contract terms that may cause changes in the time distribution or amount of
contractual cash flows of financial assets to determine whether they meet the requirements for the above-
mentioned contractual cash flow characteristics.Only when the Company changes its business model for managing financial assets can all affected related
financial assets be reclassified on the first day of the first reporting period after the change in business model;
otherwise financial assets shall not be reclassified after initial recognition.
(3) Classification and measurement of financial liabilities
Financial liabilities of the Company are classified into financial liabilities at fair value through profit or loss and
financial liabilities measured at amortized cost upon initial recognition. For financial liabilities not classified as
those measured at fair value through profit or loss relevant transaction costs are included in their initially
recognized amounts.Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and those
designated upon initial recognition to be measured at fair value through profit or loss. Such financial liabilities
are subsequently measured at fair value and the gains or losses arising from changes in fair value as well as
dividends and interest expenses related to such financial liabilities are included in current profits and losses.Financial liabilities measured at amortized cost
Other financial liabilities are subsequently measured at amortized cost using the effective interest method and
gains or losses arising from derecognition or amortization are included in current profits and losses.Distinction between financial liabilities and equity instruments
Financial liabilities refer to those that meet one of the following conditions:
* Contractual obligations to deliver cash or other financial assets to other parties.* Contractual obligations to exchange financial assets or financial liabilities with other parties under
potentially adverse conditions.
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* A non-derivative instrument contract that must or can be settled with the enterprise’s own equity instruments
in the future and according to which the enterprise will deliver a variable number of its own equity instruments.* A derivative contract that must or can be settled with the enterprise’s own equity instruments in the future
except for derivative contracts where a fixed amount of its own equity instruments is exchanged for a fixed
amount of cash or other financial assets.An equity instrument refers to a contract that can prove the residual equity in the assets of an enterprise after all
liabilities are deducted.If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or other
financial assets the contractual obligation meets the definition of financial liabilities.If a financial instrument must or can be settled with the Company’s own equity instruments it is necessary to
consider whether the Company’s own equity instruments used for settlement of such instruments are used as
substitutes for cash or other financial assets or to enable the instrument holder to enjoy residual equity in the
assets of the issuer after deduction of all liabilities. If meets the former condition the financial instrument
should be recognized as financial liabilities; If meets the latter condition the financial instrument is recognized
as an equity instrument.
(4) Fair value of financial instruments
For the determination methods for the fair value of financial assets and liabilities refer to 38 “Others” in V
“Significant Accounting Policies and Accounting Estimates” of Section VIII - Financial Report.
(5) Impairment of financial assets
The Company accounts for impairment and recognizes the loss provision for the following items on the basis of
expected credit losses:
Financial assets measured at amortized cost;
Receivables and debt instrument investments measured at fair value through other comprehensive
income;
Contract assets as defined in ASBE No.14 - Revenue;
Lease receivables;
Financial guarantee contracts (except for those measured at fair value through profit and loss where the
transfer of financial assets does not meet derecognition conditions or is continuously involved in the
transferred financial assets).Measurement of expected credit losses
Expected credit loss refers to the weighted average of the credit losses of financial instruments that are weighted
by the risk of default. Credit loss refers to the difference between all contractual cash flows receivable
according to the contract and discounted by the Company at the original effective interest rate and all cash flows
expected to be collected that is the present value of all cash shortages.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.
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The Company measures the expected credit losses of financial instruments at different stages respectively. For
financial instruments for which the credit risk has not significantly increased since initial recognition they are
classified in Stage 1. The Company measures the loss provision based on expected credit losses over the next 12
months. For financial instruments in which the credit risk has significantly increased since initial recognition
but no credit impairment has occurred they are classified in Stage 2. The Company measures the loss provision
based on the expected credit losses over the entire remaining lifetime of the instrument. For financial
instruments in which a credit impairment has occurred since initial recognition they are classified in Stage 3.The Company measures the loss provision based on the expected credit losses over the entire remaining lifetime
of the instrument.The Company assumes that the credit risk of the financial instruments with a low credit risk on the balance
sheet date has not increased significantly since the initial recognition and measures the provision for loss based
on the expected credit loss in the next 12 months.The expected credit loss during the whole duration refers to the expected credit loss caused by all default events
that may occur during the whole expected duration of financial instruments. The expected credit loss in the next
12 months refers to that caused by the possible default events of the financial instruments within 12 months
after the balance sheet date (or the expected duration if the expected duration of financial instruments is less
than 12 months) which is a part of the expected credit loss in the whole duration.During the measurement of expected credit losses the maximum term to be considered by the Company is the
maximum contract term of the enterprise facing credit risk (including the option to renew the contract).For financial instruments in the first and second stages and with low credit risk the Company calculates interest
income according to the book balance before deducting impairment provision and the actual interest rate. For
financial instruments in the third stage interest income is calculated according to their book balance minus the
amortized cost after impairment provision and the effective interest rate.Notes receivable accounts receivable and contract assets
For notes receivable accounts receivable and contract assets the Company always measures their loss provision
according to the amount equivalent to the expected credit loss in the whole duration no matter whether there is
any significant financing component.If the expected credit loss of a single financial or contractual asset cannot be evaluated at a reasonable cost the
Company divides the notes receivable accounts receivable and contractual assets into portfolios according to
the credit risk characteristics based on the following and calculates the expected credit loss on the basis of the
portfolios:
A. Notes receivable
Notes receivable portfolio 1: bank acceptance bills
Notes receivable portfolio 2: commercial acceptance bills
B. Accounts receivable
Aging portfolio
C. Contract assets
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Aging portfolio
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.Other receivables
The Company divides other receivables into several portfolios according to the credit risk characteristics based
on the following and calculates the expected credit loss according to the portfolios:
Portfolio 1 of other receivables: portfolio of margin deposit and reserve fund
Portfolio 2 of other receivables: aging portfolio
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.Long-term receivables
The Company’s long-term receivables include the receivables from sales of goods by installments.The Company divides the long-term receivables into several portfolios according to the credit risk
characteristics based on the following and calculates the expected credit loss on the basis of the portfolios:
Long-term receivables portfolio 1: receivables from sales of goods by installments
Long-term receivables portfolio 2: other receivables
The Company calculates the expected credit loss of the receivables from sales of goods by installments based
on the default risk exposure and the expected credit loss rate for the whole duration with a reference to the
historical credit loss experience the current situation and the forecast of the future economic situation.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.Debt investment and other debt investments
For debt investments and other debt investments the Company calculates expected credit losses according to
the nature of the investment various types of counterparties and risk exposures default risk exposures and
expected credit loss rates in the next 12 months or throughout the duration.Assessment of significant increase in credit risk
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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.In determining whether the credit risk has increased significantly since initial recognition the Company
considers reasonable and well-founded information (including forward-looking information) that can be
obtained without unnecessary additional costs or efforts. The information to be considered by the Company is
as follows:
Failure of the debtor to pay the principal and interest on the due date of the contract;
Serious deterioration in the external or internal credit rating (if any) of the financial instrument that has
occurred or is expected;
Serious deterioration of the debtor’s operating results that has occurred or is expected;
Changes in the technical market economic or legal environment that have occurred or are expected
and their potential material adverse effect on the repayment ability of the debtor to the Company.According to the nature of financial instruments the Company evaluates whether the credit risk has increased
significantly on the basis of individual financial instruments or portfolios of financial instruments. When
evaluating on the basis of portfolios of financial instruments the Company may classify the financial
instruments based on common credit risk characteristics such as overdue information and credit risk rating.If it is overdue for more than 30 days the Company determines that the credit risk of financial instruments has
increased significantly.Credit-impaired financial assets
The Company evaluates on the balance sheet date whether credit impairment has occurred on the financial
assets measured at amortized cost and on the creditor’s debt investment measured at fair value through other
comprehensive income. A financial asset becomes credit-impaired when one or more events that have an
adverse impact on its expected future cash flows occur. Evidence of credit impairment of financial assets
includes the following observable information:
The issuer or the debtor is involved in serious financial difficulties;
The debtor breaches the contract such as default on or overdue repayment of interest or principal;
The Company for economic or contractual reasons relating to the debtor’s financial difficulty grants
the debtor concessions that would not have been made in any other circumstances;
There is a great possibility of bankruptcy or other financial restructuring of the debtor;
The financial difficulties of the issuer or debtor result in the disappearance of the active market of such
financial assets.Presentation of provision for expected credit loss
In order to reflect the changes in the credit risk of financial instruments since the initial recognition the
Company remeasures the expected credit loss on each balance sheet date; the increased or reversed amount of
the loss provision arising therefrom shall be included in the current profits and losses as impairment losses or
gains. The loss provision of the financial assets measured at amortized cost is used to offset their book value
presented in the balance sheet. For the debt investment measured at fair value with its changes included in other
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comprehensive income the Company recognizes its loss provision in other comprehensive income which will
not offset the book value of the financial assets.Write-off
The Company writes down the book balance of the financial assets when it no longer reasonably expects that
the contractual cash flow of the financial asset can be recovered in whole or in part. Such write-down
constitutes the derecognition of related financial assets. This usually occurs when the Company determines that
the debtor has no assets or sources of income that can generate sufficient cash flows to repay the amount to be
written down. However the written-down financial assets may still be affected by the execution activities
according to the Company’s procedures for recovering due amounts.Any financial assets that have been previously written off and subsequently recovered are recognized as a
reversal of impairment loss and recorded in the current period’s income statement.
(6) Transfer of financial assets
Transfer of financial assets refers to the assignment or delivery of financial assets to the party (transferee) other
than the issuer of such financial assets.The financial asset is derecognized if the Company has transferred substantially all the risks and rewards of
ownership of a financial asset to the transferee. The financial asset is not derecognized if the Company has
retained substantially all the risks and rewards of ownership of a financial asset.If the Company neither transfers nor retains almost all risks and rewards of ownership of a financial asset it
shall deal with them as follows: if the control over the financial asset is waived the financial asset shall be
derecognized and the assets and liabilities incurred shall be recognized; if the control over the financial asset is
not waived the relevant financial asset shall be recognized to the extent that it continues to be involved in the
transferred financial asset and the relevant liabilities shall be recognized accordingly.
(7) Offset of financial assets and financial liabilities
Financial assets and financial liabilities are presented in the balance sheet with the amount after offsetting each
other when the Company has a legal right to offset the recognized financial assets and financial liabilities and
the legal right can be exercised currently and when the Company intends either to settle on a net basis or to
realize the financial assets and pay off the financial liabilities simultaneously. In other cases financial assets
and financial liabilities are presented separately in the balance sheet and are not offset against each other.
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.
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14. Receivables financing
Refer to 11 “Financial instruments” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
15. Other receivables
For determination methods and accounting methods of expected credit losses of other receivables
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
(1) Classification of inventories
The inventories of the Company are divided into raw materials self-made semi-finished products and goods in
process goods in stock revolving materials etc.
(2) Valuation method for inventories sent out
The Company’s inventories are accounted for at the planned cost when acquired. The difference between the
planned cost and the actual cost is accounted for through the cost variance account and the cost variance that
should be borne by the inventories sent out is carried forward on schedule to adjust the planned cost to the
actual cost.
(3) Basis and method for provision of inventory depreciation reserves
On the balance sheet date inventories are measured at the lower of cost and net realizable value. When the net
realizable value of the inventories is lower than their cost a provision for inventory depreciation reserves is
made.Net realizable value refers to the difference between the estimated sale price of inventory less the cost to
estimated be incurred until completion estimated sales expenses and related taxes. The net realizable value of
inventories is determined based on the unambiguous evidence obtained as well as the consideration of the
purpose of holding inventories and the impact of events after the balance sheet date.The Company makes provision for inventory depreciation reserves on an individual inventory item basis.Provision for inventory depreciation reserves is made by inventory category for inventories with large quantities
and low unit prices.
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On the balance sheet date if the factors affecting the previous write-down of inventory value have disappeared
the inventory falling price reserves shall be reversed within the amount originally provided for.
(4) Inventory system
The Company adopts the perpetual inventory system.Low-value consumables and packaging materials of the Company are amortized by one-off write-off method
when acquired.
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
Long-term equity investments include equity investments to subsidiaries joint ventures and associated
enterprises. The investee which may be subject to significant influence of the Company is an associated
enterprise of the Company.
(1) Recognition of initial investment cost
Long-term equity investments acquired from the business combination: For the long-term equity investment
acquired from the business combination under common control the investment cost refers to the share of the
book value of the owner’s equity of the combined party in the consolidated financial statements of the ultimate
controlling party on the combination date; for the long-term equity investment acquired from the business
combination not under common control the investment cost refers to the combination cost.For long-term equity investments acquired by other methods: For those acquired with cash payment the actual
purchase price shall be recognized as the initial investment cost; for those acquired through the issuance of
equity securities the fair value of issued equity securities shall be recognized as the initial investment cost.
(2) Subsequent measurement and recognition of profit or loss
Investments to subsidiaries are accounted for with the cost method unless the investment meets the conditions
for held-for-sale; investments to associated enterprises and joint ventures are accounted for with the equity
method.For long-term equity investments calculated by cost method except for the declared but not yet released cash
dividends or profits included in the actual price or consideration paid when the investment is acquired the
distributed cash dividends or profits declared by the investee shall be recognized as investment income and
included in current profits and losses.For the long-term equity investments accounted for with the equity method the investment cost is not adjusted
if the initial investment cost exceeds the share of the fair value of the investee’s identifiable net assets at the
time of the investment; the book value of the long-term equity investment is adjusted and the difference is
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included in the current profits and losses if the initial investment cost is less than the share of fair value of the
investee’s identifiable net assets at the time of the investment.For accounting with the equity method the investment income and other comprehensive income shall be
recognized respectively according to the share of the net profits and losses and other comprehensive income
realized by the investee that shall be enjoyed or shared. Meanwhile the book value of the long-term equity
investments shall be adjusted. The part of due share shall be calculated according to the distributed profit or
cash dividend declared by the investee and the book value of the long-term equity investment shall be reduced
accordingly. For other changes in owners’ equity of the investee except net profit and loss other comprehensive
income and profit distribution the book value of long-term equity investment shall be adjusted and included in
capital reserve (other capital reserve). The Company recognizes its share of the investee’s net profits or losses
based on the fair values of the investee’s individual separately identifiable assets at the time of acquisition after
making appropriate adjustments thereto in conformity with the accounting policies and accounting periods of
the Company.The sum of the fair value of the original equity and the new investment cost is taken as the initial investment
cost calculated with the equity method on the date of conversion if it is possible to exert significant influence on
or implement joint control but not constitute control over the investee due to additional investment or other
reasons. The cumulative changes in fair value originally included in other comprehensive income related to the
original equity are transferred to retained earnings when the equity method is adopted if the original equity is
classified as a non-trading equity instrument measured at fair value through other comprehensive income.In case the Company loses joint control of or the significant influence on the investee due to the disposal of part
of the equity investment the residual equity after the disposal is accounted for in accordance with the
Accounting Standards for Business Enterprises No.22 - Recognition and Measurement of Financial Instruments
on the date of losing the joint control or significant influence and the difference between the fair value and the
book value is included in the current profits and losses. Other comprehensive income recognized from the
original equity investment accounted with the equity method shall be accounted for on the same basis as the
direct disposal of relevant assets or liabilities of the investee when the equity method is terminated. Other
changes in owner’s equity related to the original equity investment shall be transferred into current profit and
loss.In case the Company loses the right of control over the investee due to the disposal of partial equity investment
or other reasons the equity method is applied and it is deemed that the residual equity is adjusted with the
equity method from the time of acquisition if the residual equity after disposal can exert joint control over or
significant influence on the investee; the accounting is carried out according to the Accounting Standards for
Business Enterprises No.22 - Recognition and Measurement of Financial Instruments and the difference
between the fair value and the book value on the date of losing control is included in the current profits and
losses if the residual equity after disposal cannot exert joint control over or significant influence on the investee.If the shareholding ratio of the Company decreases due to capital increase by other investors resulting in loss of
control but joint control over or significant influence on the investee the Company’s share of net assets
increased due to capital increase and share expansion of the investee shall be recognized according to the new
shareholding ratio and the difference from the original book value of long-term equity investment
corresponding to the decrease in shareholding ratio that shall be carried forward shall be included in current
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profits and losses. Then adjustments are made based on the new shareholding ratio with the equity method as if
it had been used since the acquisition of the investment.Unrealized gains and losses from internal transactions between the Company and its associated enterprises and
joint ventures that are attributable to the Company are calculated based on the shareholding ratio and
investment profits and losses are recognized based on the offsetting of that portion. However unrealized losses
from internal transactions incurred between the Company and its investee are not offset if they belong to
impairment losses from assets transferred.
(3) Basis for determining joint control and significant influence on the investee
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. During
the judgment of joint control it is required to determine whether the arrangement is controlled collectively by
all participants or combinations of participants and then determine whether decisions on activities related to the
arrangement must be made with the unanimous consent of those participants who collectively control the
arrangement. It is deemed that all participants or a group of participants collectively control the arrangement if
related activities of an arrangement can be decided only with the concerted action of all participants or a group
of participants. If there are two or more combinations of parties that can collectively control an arrangement
this situation does not constitute joint control. For the determination of whether there is joint control protective
rights are not taken into account.Significant influence refers to the power of the investor to participate in making decisions on the financial and
operating policies of the investee but cannot control or jointly control with other parties over the preparation of
these policies. The possibility of exerting significant influence on the investee is determined by considering the
influence of the voting shares of the investee directly or indirectly held by the investor and the influence when it
is assumed that the potential voting rights executable for the current period held by the investor and other
parties are converted into the equity of the investee including the influence of the warrants stock options and
corporate bonds which can be converted in the current period issued by the investee.It is generally considered that the Company has significant influence on the investee when the Company
directly holds more than 20% (inclusive) but less than 50% of the voting shares of the investee or holds
indirectly through subsidiaries unless there is clear evidence indicating that it cannot participate in the
production and operation decisions of the investee under such circumstances in which case it has no significant
influence. It is generally not considered that the Company has significant influence on the investee when the
Company owns less than 20% (exclusive) of the voting shares of the investee unless there is clear evidence
indicating that it can participate in the production and operation decisions of the investee under such
circumstances in which case it has significant influence.
(4) Impairment test method and impairment provision methods
For investments to subsidiaries associated enterprises and joint ventures the method of provision for asset
impairment is described in 38 “Others” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
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20. Investment properties
Measurement mode of investment property
Measure by cost method
Depreciation or amortization method
Investment properties refer to the properties held for earning rent or capital appreciation or both. Investment
properties of the Company include the land use rights that have already been rented the land use rights held for
transfer after appreciation and the buildings that have been rented.Investment properties of the Company are initially measured as per the price upon acquisition and depreciated
or amortized on schedule as per relevant provisions on fixed assets or intangible assets.For the investment real estate which is subsequently measured with the cost mode the method of drawing asset
impairment is described in 38 “Others” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.The disposal income from the sale transfer retirement or damage of investment properties shall be included in
current profits and losses after deducting their book value and relevant taxes.
21. Fixed assets
(1) Recognition conditions
Fixed assets of the Company refer to the tangible assets held for the production of goods rendering of services
the renting or operation and management with a service life exceeding one accounting year.The fixed assets can be recognized only when the economic benefits related to such fixed assets are likely to
flow into the enterprise and the cost of such fixed assets can be measured reliably.Fixed assets of the Company are initially measured at the actual cost upon acquisition.Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the related
economic benefits are likely to flow into the Company and the costs can be reliably measured. The daily repair
costs of fixed assets that do not meet the conditions for the subsequent expenditure of fixed assets capitalization
are included in the current profits and losses or the costs of relevant assets based on the beneficiaries at the time
of occurrence. For the replaced part its book value is derecognized.
(2) Depreciation method
Depreciation Annual
Category Depreciation Period Residual Rate
Method Depreciation Rate
Houses and Straight-line
20 years 3-5 4.85-4.75
Buildings method
Machinery Straight-line 10 years 0-3 10.00-9.70
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equipment method
Transportation Straight-line
4-10 years 0-5 25.00-9.50
equipment method
Electronic Straight-line
3 years 0-5 33.33-31.67
equipment method
Straight-line
Office equipment 5 years 3-5 19.40-19.00
method
Straight-line
Others 5 years 0-5 20.00-19.00
method
The Company uses the straight-line method for depreciation. The depreciation of fixed assets starts when they
reach the expected serviceable condition and stops when they are derecognized or classified as non-current
assets held for sale. Depreciation rates are determined based on fixed asset categories expected service life and
estimated residual values without considering impairment provisions. However for fixed assets with provision
for impairment the accumulated amount of provision for impairment shall also be deducted to calculate and
determine the depreciation rate.
(3) For the impairment test methods and impairment provision methods of fixed assets please refer to 38
“Others” in V “Significant Accounting Policies and Accounting Estimates” of Section VIII - Financial Report.
(4) The Company reviews the service life expected net residual value and depreciation method of fixed assets
at the end of each year.The service life of fixed assets shall be adjusted if the expected service life is different from the original
estimate and the estimated net residual value shall be adjusted if the estimated net residual value is different
from the original estimate.
(5) 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
The cost of construction in progress of the Company is recognized according to the actual construction
expenditures including various necessary construction expenditures incurred during the construction period
borrowing costs that shall be capitalized before the construction reaches the expected condition for its intended
use and other relevant expenses.Construction in progress is transferred to fixed assets when it is ready for its intended use.For the method of provision for asset impairment of construction in progress refer to 38 “Others” in V
“Significant Accounting Policies and Accounting Estimates” of Section VIII - Financial Report.
23. Borrowing costs
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(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 qualifying assets are capitalized and included in the cost of the related assets; other borrowing
costs are expensed as incurred and recognized in the current profit or loss. Borrowing costs begin to be
capitalized when all of the following conditions are met:
* Asset expenditures have been incurred including cash payments transfers of non-cash assets or
assumptions of interest-bearing debts for the acquisition construction or production of qualifying assets;
* Borrowing costs have been incurred;
* Activities necessary to prepare the asset for its intended use or sale have commenced.
(2) Capitalization period of borrowing costs
The Company ceases capitalizing borrowing costs when qualifying assets have reached their intended usable or
saleable condition. Borrowing costs incurred after qualifying assets have reached their intended usable or
saleable condition are recognized as expenses based on amounts incurred and included in current profit or loss.Capitalization of borrowing costs is suspended if the acquisition construction or production of qualifying
assets is abnormally interrupted for more than three consecutive months; borrowing costs during normal
interruptions continue to be capitalized.
(3) Calculation methods for the capitalization rate and amount of borrowing costs
For specific borrowings the capitalized amount is calculated by deducting interest income earned from
depositing unused borrowed funds in banks or from temporary investments from the actual interest expense
incurred during the period; for general borrowings the capitalized amount is determined by multiplying the
weighted average of general borrowings used by the portion of asset expenditures exceeding those financed by
specific borrowings by the capitalization rate of general borrowings. The capitalization rate is calculated based
on the weighted average interest rate of general borrowings.During the capitalization period all exchange differences arising from specific foreign currency borrowings are
capitalized while exchange differences on general foreign currency borrowings are recognized in current profit
or loss.
24. Intangible Assets
(1) Service life and its determination basis estimate amortization method or review procedure
Intangible assets of the Company include land use rights software non-patented technologies etc.Intangible assets are initially measured at cost and their service life is analyzed and judged at the time of
acquisition. Where the service life is limited the intangible asset is amortized over its expected service life
from the time it is available with an amortization method that reflects the expected realization of the economic
benefits associated with the asset. The straight-line method is adopted for amortization if the expected
realization mode cannot be determined reliably. Intangible assets with uncertain service life are not amortized.
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The amortization method for intangible assets with limited service life is as follows:
Category Service Life Amortization Method Remarks
Land use right 50 years Straight-line method
Software 2-10 years Straight-line method
Non-patented technology 5-10 years Straight-line method
The Company reviews the service life and amortization method of intangible assets with limited service life at
the end of each year. If it is different from the previous estimate the original estimate shall be adjusted and
treated as a change in accounting estimates.The book value of an intangible asset is transferred into the current profits and losses in full if it is expected that
the asset cannot bring economic benefits to the enterprise in the future on the balance sheet date.For the method of provision for asset impairment of the intangible assets refer to 38 “Others” in V “SignificantAccounting Policies and Accounting Estimates” of Section VIII - Financial Report.
(2) Scope of aggregation of expenditures on research and development and related accounting treatment
methods
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.The Company divides the expenditures of internal research and development projects into expenditures at the
research stage and expenditures at the development stage.The expenditures at the research stage are included in current profits and losses when incurred.Expenditures at the development stage can be capitalized only when the following conditions are met
simultaneously namely it is technically feasible to complete the intangible assets so that they can be used or
sold; there is an intention to complete the intangible assets and use or sell them; the ways for intangible assets to
generate economic benefits include proving that there is a market for the products produced by using the
intangible assets or the intangible assets themselves and proving their usefulness if they are to be used
internally; there are sufficient technical financial and other resources to support the development of the
intangible assets and the ability to use or sell the intangible assets; the expenditure at the development stage of
the intangible assets can be measured reliably. The development expenditures failing to meet the above
conditions are included in current profits and losses when they occur.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
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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). The
expenses incurred in the planning stage before the project initiation are directly included in the current profits
and losses and those incurred after the project initiation are included in expenditures in the development stage.
25. Impairment of long-term assets
The asset impairment of long-term equity investment to subsidiaries associated enterprises and joint ventures
investment real estate subsequently measured by cost model fixed assets projects under construction right-of-
use assets intangible assets etc. (except for inventories deferred income tax assets and financial assets) is
recognized with the following methods:
The Company judges whether there is a sign of impairment to assets on the balance sheet date. If such a sign
exists the Company estimates the recoverable amount and conducts the impairment test. Impairment tests shall
be carried out every year on goodwill resulting from business combination intangible assets with uncertain
service life and intangible assets that have not yet reached their intended use no matter whether there is any sign
of impairment.The recoverable amount is the net amount of the fair value of the assets after deducting the disposal expenses or
the present value of the expected future cash flow of the assets whichever is higher. The Company estimates
the recoverable amount based on a single asset. If it is difficult to estimate the recoverable amount of a single
asset the recoverable amount of the asset group shall be determined based on the asset group to which the asset
belongs. An asset group is determined based on the fact that the main cash inflows generated by the asset group
are independent of the cash inflows of other assets or asset groups.When the recoverable amount of an asset or asset group is lower than its book value the Company writes down
its book value to the recoverable amount and the write-down amount is included in current profits and losses
and the corresponding impairment provision of assets is made at the same time.For the impairment test of goodwill the book value of goodwill resulting from business combination is
amortized to relevant asset groups with reasonable methods from the acquisition date or amortized to relevant
asset group portfolio if it is difficult to amortize it to relevant asset groups. Relevant asset groups or portfolios
of asset groups are those that can benefit from the synergies of business combination and are not greater than
the reporting segment determined by the Company.If there is any sign of impairment in the asset group or portfolio of asset groups related to goodwill during the
impairment test the impairment test shall be carried out on the asset group or portfolio of asset groups not
including goodwill and the recoverable amount shall be calculated to determine the corresponding impairment
loss. Then an impairment test is carried out on the asset group or portfolio of asset groups including goodwill to
compare its book value and recoverable amount and determine the impairment loss of goodwill if the
recoverable amount is lower than the book value.Once the impairment loss of assets is determined it will never be reversed in subsequent accounting periods.
115Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
26. Long-term deferred expenses
Long-term unamortized expenses of the Company shall be valued as per actual cost and averagely amortized as
per the expected benefit period. The amortized value of the long-term deferred expenses that cannot benefit the
future accounting period is included in the current profits and losses.
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 presents the
contract assets and liabilities under the same contract on a net basis after offsetting each other.Contractual liability refers to an obligation to transfer goods or services to a customer for which customer
consideration has been received or receivable such as payments received by an enterprise prior to the transfer
of promised goods or services.
28. Employee compensation
(1) Accounting method of short-term compensation
Employee compensation refers to various forms of remuneration or compensation given by enterprises to obtain
services provided by employees or to terminate labor relations. Employee compensation includes short-term
compensation post-employment benefits dismissal benefits and other long-term employee benefits. The
benefits provided by the enterprise to employees’ spouses children dependents survivors of deceased
employees and other beneficiaries also belong to employee compensation.According to liquidity employee compensation is listed in the “employee compensation payable” and “long-term employee compensation payable” items of the balance sheet.Short-term compensation
In the accounting period when employees provide services the Company recognizes the employee wages
bonuses social security contributions according to regulations such as medical insurance work injury insurance
and maternity insurance as well as housing funds as liability and includes them in current profits and losses or
relevant asset costs.
(2) Accounting method of post-employment benefits
The post-employment benefit plan includes defined contribution plan and defined benefit plan. The defined
contribution plan refers to the post-employment benefit plan that the enterprise will no longer bear the payment
obligation after paying fixed fees to independent funds. The defined benefit plan refers to the post-employment
benefit plan other than the defined contribution plan.Defined contribution plan
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The defined contribution plan includes basic pension insurance unemployment insurance and enterprise annuity
plan.In the accounting period when employees provide services the Company recognizes the amount payable to a
defined contribution plan as a liability and includes it in the current profit or loss or relevant asset cost.Defined benefit plan
The defined benefit plan shows that an actuarial valuation is performed by an independent actuary on the annual
balance sheet date and the benefit cost is determined with the expected cumulative benefit unit method. The
Company recognizes the following components of employee benefits cost arising from defined benefit plans:
* Service costs include current service costs past service costs and settlement gains or losses. Among them
the current service cost refers to the increase in the present value of the defined benefit plan obligations due to
the provision of services by employees in the current period; the past service cost refers to the increase or
decrease in the present value of the defined benefit plan obligations related to the employee services in the
previous period due to the modification of the defined benefit plan.* Net interest on net liabilities or assets of defined benefit plans including interest income of plan assets
interest expense of defined benefit plan obligations and interest affected by asset ceiling.* Changes arising from remeasurement of net liabilities or net assets of defined benefit plans.The Company includes the above items * and * in the current profits and losses unless other accounting
standards require or allow the cost of employee benefits to be included in the cost of assets; item * is included
in other comprehensive income and will not be reversed back to profit or loss in subsequent accounting periods
and the part originally included in other comprehensive income within the equity scope is carried forward to
undistributed profit when the original defined benefit plan terminates.
(3) Accounting method of dismissal welfare
When the Company provides dismissal welfare to employees the liabilities of the employee compensation
arising from dismissal welfare are recognized at the earlier of the following two dates and included in the
current profit or loss: the Company cannot unilaterally provide the dismissal welfare provided due to the labor
relation termination plan or the layoff suggestions; the Company recognizes the costs or expenses related to the
restructuring of termination benefits payment.If the early retirement plan is implemented the economic compensation before the official retirement date
belongs to dismissal welfare. The wages proposed to be paid to the early retired employee and the social
insurance premiums to be paid are included in the current profits and losses in a lump sum from the date when
the employee stops providing services to the normal retirement date. Economic compensation after the official
retirement date (such as normal pension) belongs to post-employment benefits.
(4) Accounting method of other long-term employee benefits
Other long-term employee benefits provided by the Company to the employees satisfying the conditions for
classifying as a defined contributions plan are accounted for in accordance with the above requirements relating
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to defined contribution plan. The benefits that meet the requirements of the defined benefit plan are treated inaccordance with the provisions of the plan. However the “changes caused by remeasurement of net liabilities ornet assets of the defined benefit plan” in relevant employee compensation costs are included in current profits
and losses or relevant asset costs.
29. Provisions
The Company recognizes the obligations related to contingencies as estimated liabilities if they meet all of the
following conditions:
(1) The obligation is the current obligation of the Company;
(2) Performance of this obligation will probably cause an outflow of economic interest of the Company;
(3) The amount of such obligation can be measured reliably.
Expected liabilities are initially measured at the optimal estimate required to perform the relevant current
obligation in comprehensive consideration of the risks uncertainty time value of money and other factors
pertinent to the Contingencies. The best estimate is determined by discounting the relevant future cash outflow
if the time value of money has a significant impact. At the balance sheet date the book value of the estimated
liabilities is reviewed and adjusted by the Company to reflect the current best estimate.If all or part of the expenditures necessary for clearing off the recognized provisions are expected to be
compensated by a third party or any other party the amount of compensation shall be recognized as assets
separately only when it is basically sure that the amount can be obtained. The recognized amount of
compensation shall not exceed the book value of recognized liabilities.
30. Share-based payment
(1) Types of share-based payment
The share-based payments of the Company are divided into equity-settled share-based payment and cash-settled
share-based payment.
(2) Determination methods for fair value of equity instruments
The Company recognizes the fair value of equity instruments such as granted options with an active market
according to the quotation of the active market. The Company recognizes the fair value of equity instruments
such as granted options without active market by using the option pricing model. The following factors are
considered in the selected option pricing model: A. exercise price of options; B. validity period of options; C.current price of underlying shares; D. expected fluctuation ratio of stock price; E. expected dividends of shares;
F. risk-free interest rate within the validity period of options.
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(3) Basis for determining the optimal estimate of vested equity instruments
The Company makes the optimal estimate based on the latest follow-up information such as changes in the
number of vesting employees and corrects the expected number of vested equity instruments on each balance
sheet date within the vesting period. On the vesting date the final estimated number of vested equity
instruments shall be consistent with the number of actual vested equity instruments.
(4) Accounting treatment related to implementation modification and termination of share-based payment plan
Share-based payments settled by equity are measured at the fair value of the equity instruments granted to
employees. Where the equity instrument can be vested immediately upon being granted the share-based
payment is included in relevant costs or expenses at the fair value of equity instrument on the granting date and
the capital reserve shall be increased accordingly. Where the equity instrument can not be vested until the
vesting period comes to an end or until the specified performance conditions are met at each balance sheet date
within the vesting period the services obtained in the current period are based on the optimal estimate of the
number of vested equity instruments included in relevant costs or expenses and capital reserve at the fair value
specified on the granting date of equity instruments. After the vesting date it shall make no adjustment to the
relevant costs or expenses as well as the total amount of the owner’s equities which have been confirmed.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. Where the equity instrument can be vested immediately
upon being granted the payment shall be included in the relevant costs or expenses at the fair value of the
liabilities assumed by the Company on the granting date and the liabilities shall be increased accordingly.Where the share-based payment settled by cash cannot be vested until the vesting period comes to an end or
until the specified performance conditions are met on each balance sheet date within the vesting period the
services acquired in current period are based on the optimal estimation of the vesting right included in costs or
expenses and corresponding liabilities at the fair value of the liabilities assumed by the Company. 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.When the Company modifies the share-based payment plan the increase in services obtained shall be
recognized based on the increase (if any) in the fair value of equity instruments; if the quantity of granted equity
instruments is increased the fair value of the increased equity instruments shall be recognized accordingly as
the increase in the services obtained. The increase in the fair value of equity instruments refers to the difference
between the fair values of equity instruments before and after modification on the modification date. If the total
fair value of share-based payment is reduced in the modification or the terms and conditions of the share-based
payment plan are modified in other ways unfavorable to employees the accounting treatment on acquired
services shall continue as if the change has never occurred unless the Company has canceled part or all of the
granted equity instruments.If during the vesting period the granted instruments are canceled (except for those canceled because of failure
to meet the non-market conditions of the vesting conditions) the Company shall accelerate the vesting of the
granted equity instruments and immediately include the amount to be recognized in the remaining vesting
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period in the current profit and loss and determine the capital reserve in the meantime. In the event that the
employees or other parties can choose to meet the non-vesting conditions but fail to meet such conditions
during the vesting period the Company shall treat it as the cancellation of granted equity instruments.
(5) Restricted shares
The Company grants restricted shares to the incentive objects in the equity incentive plan and the incentive
objects subscribe for the shares preferentially. If the unlocking conditions stipulated in the equity incentive plan
are not met subsequently the Company will repurchase the shares at the price agreed in advance. If the
restricted shares issued to employees have completed capital increase procedures such as registration as
specified the Company shall determine the share capital and capital reserve (share premium) according to the
share subscription money received from employees on the granting date and determine the treasury shares and
other payables in terms of the repurchase obligation.
31. Income
Accounting policies adopted for recognition and measurement of income disclosed by business type
(1) General principles
The Company recognizes its income when it has fulfilled its performance obligations of the contract i.e. the
customer has obtained the control rights of the relevant goods or services.If the contract contains two or more performance obligations the Company shall at the beginning date of the
contract apportion the transaction price to each performance obligation according to the relative proportion of
the individual selling price of the goods or services promised by each performance obligation and measure the
income according to the transaction price apportioned to each performance obligation.In case one of the following conditions is met the Company will perform the performance obligations within a
period of time. Otherwise it will perform the performance obligations at a time point:
* The customer obtains and consumes the economic benefits brought by the performance of the contract by the
Company at the same time.* The customer can control the goods under construction during the Company’s performance;
* The goods produced during the performance of the Company are irreplaceable and the Company has been
entitled to receive payment for the performance accumulated so far throughout the term of the contract.For the performance obligations performed within a certain period of time the Company shall determine the
income within that period according to the performance progress. If the performance progress cannot be
reasonably confirmed and the costs incurred by the Company can be expected to be compensated the incomes
shall be recognized according to the amount of costs incurred until the performance progress can be reasonably
confirmed.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 a
customer has obtained the control rights of the goods or services the Company shall take the following signs
into consideration:
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* The Company enjoys the right to the current collection i.e. the customer has the obligation to pay
immediately with respect to the goods;
* The Company has transferred the legal ownership of the goods to the customer i.e. the customer owns the
legal ownership of the goods;
* The Company has transferred the goods to the customer in kind i.e. the customer has possessed the goods;
* The Company has transferred the major risks and remuneration on the ownership of the goods to the
customer i.e. the customer has obtained the major risks and remuneration on the ownership of the goods.* The customer has accepted such goods or services.* Other signs indicate that the customer has obtained the right to control the goods.
(2) Specific methods
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.Situations where different operating models for similar businesses involve different revenue recognition
methods and measurement approaches: None
Situations where different operating models for similar businesses involve different revenue recognition
methods and measurement approaches
32. Contract cost
The contract cost includes the incremental cost incurred for obtaining a contract and the contract performance
cost.Incremental costs incurred for obtaining a contract refer to the costs (such as sales commissions) that would not
have occurred if the Company had not obtained the contract. If the cost is expected to be recovered the
Company recognizes it as a contract acquisition cost and an asset. Other expenditures incurred by the Company
for obtaining contracts other than incremental costs that are expected to be recovered are included in current
profits and losses when incurred.If the cost incurred for contract performance is not within the scope of other accounting standards for business
enterprises such as inventories and meets the following conditions at the same time the Company recognizes it
as an asset for the contract performance cost:
* The cost is directly related to a current or expected contract including direct labor direct materials
manufacturing costs (or similar costs) the costs clearly borne by the customer and other costs incurred only by
the Contract;
* This cost increases the Company’s resources for performing the performance obligations in the future;
* This cost is expected to be recovered.Assets recognized as contract acquisition costs and that recognized as contract performance costs (hereinafter
referred to as “assets related to contract costs”) are amortized on the same basis as revenue recognition of goods
or services related to the assets and are included in current profits and losses.
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When the book value of the assets related to the contract cost is higher than the difference between the
following two items the Company will make provision for the impairment of the excess and recognize it as the
impairment loss on assets:
* The residual consideration expected to be obtained by the Company from the transfer of goods or services
related to the asset;
* The estimated costs to be incurred for the transfer of relevant goods or services.
33. Government subsidies
The government subsidies shall be recognized when all the attached conditions can be satisfied and the
government subsidies can be received.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 subsidies refer to those obtained by the Company and used for acquiring or forming
long-term assets in other ways; otherwise they are regarded as income-related government subsidies.For the government subsidies with the grant objects not expressly stipulated in the government documents if
they can be used to form long-term assets the government subsidies corresponding to the asset value are
deemed as the government subsidies related to assets while the rest is deemed as the one related to income; for
the government subsidies that are difficult to differentiate the government subsidies as a whole are deemed as
income-related government subsidies.Asset-related government subsidies are recognized as deferred income and included in profits or losses by
stages with a reasonable and systematic method within the service life of related assets. For the income-related
government subsidies they shall be included in the current profit and loss if used to compensate for the incurred
related costs or losses; if used to compensate for the related costs or losses during future periods they shall be
included in the deferred income and included in the current profit and loss during the period when the related
costs or losses are recognized. Government subsidies measured at the nominal amount are directly included in
the current profit and loss. The Company adopts the same treatment for those transactions of similar
government subsidies.The government subsidies related to daily activities shall be included in other incomes based on the substance
of business transactions. Government subsidies irrelevant to daily activities are included in non-business income.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 income tax assets and deferred income tax liabilities
Income tax includes current income tax and deferred income tax. The income tax shall be included in the
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current profit and loss as income tax expenses except that the deferred income taxes related to the adjustment
of goodwill due to business combination or the transactions or matters directly included in the owner's equity
are included in the owner’s equity.The Company recognizes deferred income tax by the balance sheet liability method according to the temporary
difference between the book value of assets and liabilities on the balance sheet date and the tax base.Relevant deferred tax liabilities shall be recognized for each taxable temporary difference unless the taxable
temporary difference arises from the following transactions:
(1) The initial recognition of goodwill or the initial recognition of assets or liabilities incurred in a transaction
that is neither a business combination nor affects the accounting profit or taxable income at the time of the
transaction (except for individual transactions where the assets and liabilities initially recognized result in equal
amounts of taxable temporary differences and deductible temporary differences);
(2) Concerning the taxable temporary difference related to the investment of subsidiaries joint ventures and
associated enterprises the time of reversal of the temporary difference can be controlled and the temporary
difference is unlikely to be reversed in the foreseeable future.The Company recognizes a deferred tax asset for the carry-forward of deductible temporary differences
deductible losses and tax credits to subsequent periods to the extent that it is probable that future taxable profits
will be available against which the deductible temporary differences deductible losses and tax credits can be
utilized except for those incurred in the following transactions:
(1) The transaction is neither a business combination nor affects the accounting profit or taxable income at the
time of the transaction (except for individual transactions where the assets and liabilities initially recognized
result in equal amounts of taxable temporary differences and deductible temporary differences);
(2) Corresponding deferred income tax assets are recognized if the deductible temporary difference associated
with investments in subsidiaries associated enterprises and joint ventures meets all of the following conditions:
The temporary difference is likely to be reversed in the foreseeable future and the taxable income which is used
to deduct the deductible temporary difference is likely to be obtained in the future.The Company measures the deferred income tax assets and deferred income tax liabilities at the applicable tax
rate during the expected period for recovering the assets or paying off the liabilities on the balance sheet date
and reflects the impact on income tax from assets recovery or liability settlement on the balance sheet date.At the balance sheet date the Company reviews the book value of a deferred income tax asset. If it is likely that
sufficient taxable profits will not be available in future periods to deduct the benefit of the deferred tax assets
the book value of the deferred tax assets is reduced. Any such write-down shall be subsequently reversed where
it becomes probable that sufficient taxable income will be available.At the balance sheet date deferred income tax assets and deferred income tax liabilities are presented by net
amount after set-off when both of the following conditions are satisfied:
(1) The taxpayer within the Company has the legal rights to settle the income tax assets and income tax
liabilities in the current period by net amount;
123Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
(2) Deferred income tax assets and deferred tax liabilities are associated with the income taxes imposed by the
same taxation authority on the same taxpayer within the Company.
35. Lease
(1) Accounting treatment methods of lease with the Company as the lessee
Identification of lease
On the commencement date of the contract the Company as the lessee or lessor evaluates whether the
customer in the contract is entitled to obtain almost all economic benefits arising from the use of the identified
assets during the use period and is entitled to dominate the use of the identified assets during the use period. If
one party to the contract abalienates the right to control the use of one or more identified assets within a certain
period of time in exchange for consideration the Company determines that the contract is a lease or includes a
lease.The Company acting as the lessee
At the commencement of the lease term the Company recognizes right-of-use assets and lease liabilities for all
leases except for simplified short-term leases and low-value asset leases.For the accounting policies of the right-of-use assets see 38 “Others” in V “Significant Accounting Policies andAccounting Estimates” of Section VIII - Financial Report.Lease liabilities shall be initially measured at the present value calculated by the interest rate implicit in the
lease according to the unpaid lease payment on the commencement date of the lease term. If the interest rate
implicit in lease cannot be determined the incremental borrowing rate shall be used as the discount rate. The
lease payment includes: fixed payment and substantial fixed payment. If there is a lease incentive the amount
related to the lease incentive shall be deducted; variable lease payments depending on index or ratio; the
exercise price of the purchase option provided that the lessee reasonably determines that the option will be
exercised; payments for exercising the option to terminate the lease provided that the lease term reflects that the
lessee will exercise the option to terminate the lease; and the amount expected to be paid according to the
guaranteed residual value provided by the lessee. The interest expenses of the lease liabilities within each lease
term shall be calculated subsequently according to the fixed periodic rate and included in the current profits and
losses. Variable lease payments not included in the measurement of lease liabilities are included in the current
profits and losses when they actually occur.Short-term lease
Short-term lease refers to a lease with a lease term of not more than 12 months on the commencement date of
the lease term except for the lease containing the purchase option.The Company includes the lease payment for short-term lease into relevant asset costs or current profits and
losses by the straight-line method at each period within the lease term.For short-term leases the Company selects the aforementioned simplified treatment method for items that meet
short-term lease conditions by category of leased assets.
124Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Low-value asset lease
Low-value asset lease refers to the lease in which the value of a single new leased asset is less than CNY 40000.The Company includes the payment of low-value asset lease into relevant asset costs or current profits and
losses with the straight-line method in each period within the lease term.For low-value asset leases the Company selects the above simplified treatment method according to the specific
conditions of each lease.Lease change
If the lease changes and meets the following conditions at the same time the Company takes the lease change as
a separate lease for the accounting treatment: * The lease change expands the lease scope by increasing the
right to use one or more leased assets; and * the increased consideration is equivalent to the amount by
adjusting the separate price of the expanded lease scope according to the contract.If the lease change is not taken as a separate lease for accounting treatment the Company will on the effective
date of the lease change reallocate the consideration of the changed contract redetermine the lease term and
remeasure the lease liabilities according to the changed lease payment and the present value calculated by the
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
When the Company is the lessor the lease that substantially transfers all risks and rewards related to the
ownership of the assets is recognized as a finance lease and other leases than finance leases are recognized as
operating leases.Finance lease
In financial lease at the commencement of the lease term the Company takes the net investment in a lease as
the entry value of the finance lease receivables and the net investment in a lease is the sum of the unguaranteed
residual value and the present value of the lease receipts not yet received at the commencement of the lease
term discounted at the interest rate implicit in lease. The Company as the lessor calculates and recognizes
interest income in each lease term at a fixed periodic rate. The variable lease payment obtained by the Company
as the lessor and not included in the measurement of net lease investment is included in the current profits and
losses when it actually occurs.Derecognition and impairment of finance lease receivables are accounted for according to the ASBE No.22 -
Recognition and Measurement of Financial Instruments and the ASBE No.23 - Transfer of Financial Assets.
125Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Operating lease
Lease income from operating leases is included in current profits or losses by the Company as per the straight-
line method over the lease term. The occurred initial direct cost related to the operating lease shall be
capitalized amortized within the lease term according to the same base with the recognition of rental income
and included in the current profits and losses by stages. The variable lease receipts obtained by the Company
related to operating leases and not charged to the lease receipts shall be charged to the current profit and loss
when they actually occur.Lease change
In case of any change in an operating lease the Company carries out accounting treatment as it is a new lease
since the effective date of the change and the advance receipts and receivables related to the lease before the
change are deemed as the receipts of the new lease.If the financial lease changes and meets the following conditions the Company takes the change as a separate
lease for accounting treatment: * The change expands the lease scope by increasing the right to use one or
more leased assets; and * the increased consideration is equivalent to the amount by adjusting the separate
price of the expanded lease scope according to the contract.If the change of finance lease is not taken as a separate lease for accounting treatment the Company treats the
changed lease under the following circumstances respectively: * If the change takes effect on the
commencement date of the lease and the lease is classified as an operating lease the Company takes it as a new
lease for accounting treatment from the effective date of the lease change and takes the net investment in the
lease before the effective date of the lease change as the book value of the leased asset; * if the change takes
effect on the commencement date of the lease and the lease is classified as a finance lease the Company carries
out accounting treatment in accordance with the provisions of the
36. Other significant accounting policies and accounting estimates
The Company continuously evaluates the significant accounting estimates and key assumptions adopted based
on historical experience and other factors including reasonable expectations for future events. Significant
accounting estimates and key assumptions that may lead to significant adjustment risk to the book value of
assets and liabilities in the next accounting year are presented as follows:
Classification of financial assets
Major judgments involved in determining the classification of financial assets include the analysis of business
models and contractual cash flow characteristics.The Company determines the business model of managing financial assets at the level of financial asset
portfolio considering the way of evaluating and reporting financial asset performance to key management
personnel the risks affecting the financial asset performance and their management methods and the way for
the relevant business management personnel to obtain the remuneration.When evaluating whether the contractual cash flow of financial assets is consistent with the basic loan
arrangement the Company has the following main judgments: May the principal change in the time distribution
126Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
or amount in the duration due to prepayment and other reasons Does the interest include only the time value of
money credit risk other basic borrowing risks and consideration for costs and profits For example does the
amount of prepayment only reflect the unpaid principal and interest based on the outstanding principal as well
as reasonable compensation paid due to early termination of the contract
Measurement of expected credit losses on accounts receivable
The Company calculates the expected credit loss of accounts receivable through default risk exposure and
expected credit loss rate of accounts receivable and determines the expected credit loss rate based on default
probability and loss given default. In determining the expected credit loss rate the Company uses the internal
historical credit loss experience and other data and adjusts the historical data according to the current situation
and forward-looking information. When the forward-looking information is considered the indicators used by
the Company include risks of economic downturn changes in external market environment technological
environment and customer conditions. The Company regularly monitors and reviews the assumptions related to
the calculation of expected credit losses.Development expenditures
In determining the capitalization amounts the management must make assumptions on the expected future cash
flow generation of assets discount rate to be adopted and expected benefit period.Deferred Income tax assets
The deferred tax assets shall be recognized in respect of all unused tax losses to the extent it is highly probable
that there will be sufficient taxable profits available for offsetting the losses. This requires the management to
estimate the timing and amount of future taxable profit using large amounts of judgment and to determine the
recognized amount of deferred tax assets by referring to the tax planning strategy.Estimated liabilities
Expected liabilities are initially measured at the optimal estimate required to perform the relevant current
obligation in comprehensive consideration of the risks uncertainty time value of money and other factors
pertinent to the Contingencies. The best estimate is determined by discounting the relevant future cash outflow
if the time value of money has a significant impact. At the balance sheet date the book value of the estimated
liabilities is reviewed and adjusted by the Company to reflect the current best estimate.If all or part of the expenditures necessary for clearing off the recognized provisions are expected to be
compensated by a third party or any other party the amount of compensation shall be recognized as assets
separately only when it is basically sure that the amount can be obtained. The recognized amount of
compensation shall not exceed the book value of recognized liabilities.
37. Changes in significant accounting policies and accounting estimates
(1) Change in significant accounting policies
□Applicable□Not applicable
(2) Change in significant accounting estimates
127Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
□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 2025
□Applicable□Not applicable
38. Others
(1) Fair value measurement
Fair value refers to the price to be received for sale of an asset or to be paid for the transfer of liability by
market participants in the orderly transaction on the measurement date.The Company measures related assets or liabilities at fair value assuming that the sale of an asset or the transfer
of liability is conducted in major markets for relevant assets or liabilities in an orderly transaction. If the major
market is not provided the transaction shall be assumed to be performed in the most favorable market for
relevant assets or liabilities. Major markets (or most favorable markets) are the markets where the Company can
enter on the measurement date. The Company uses the assumptions used by market participants to maximize
their economic benefits when they prices the asset or liability.The fair value of financial assets or financial liabilities with the active market is determined based on quotations
in the active market by the Company. The fair value of financial instrument without an active market is
determined through valuation techniques.When non-financial assets are measured at fair value it is required to consider the ability of market participants
to use the asset for optimal purposes to produce economic benefits or to sell the asset to other market
participants that can use such assets for optimal purposes to produce economic benefits.The Company shall adopt the estimation technique that is applicable in the current conditions and is supported
sufficiently by available data and other information. The relevant observable input values shall be used in
priority during the application of estimation technique. Only when relevant observable value cannot be obtained
or can be obtained but is not feasible the unobservable input value can be used.For assets and liabilities measured or disclosed at fair value in the financial statements the level to which the
fair value belongs is determined according to the lowest level input value that is of significance for the whole
fair value measurement: The input value for the first level refers to the unadjusted quotation of the same assets
or liabilities in the active market that can be obtained on the measurement date; the input value for the second
level refers to the input value that can be directly or indirectly observed for relevant assets or liabilities other
than that for the first level; and the input value for the third level refers to the input value that cannot be
observed for relevant assets or liabilities.The Company reassesses the assets and liabilities successively measured at fair value recognized in financial
statements on each balance sheet date to determine the transition among fair value measurement levels.
128Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
(2) Right-of-use assets
1) Recognition conditions for right-of-use assets
Right-of-use assets refer to the right of the Company as the lessee to use the leasing assets within the lease
term.At the commencement date of the lease term the right-of-use assets are initially measured at cost. This cost
includes the initial measurement amount of lease liabilities lease payments made on or before the lease
commencement date from which any lease incentives enjoyed (if any) needed to be deducted initial direct
costs incurred by the Company as a lessee and the estimated costs expected to be incurred by the Company as a
lessee for dismantling and removing the leased asset restoring the leased asset’s site or restoring the leased
asset to the contractual conditions as stipulated in the lease agreement. The Company as the lessee recognizes
and measures the cost of demolition and restoration in accordance with the Accounting Standards for Business
Enterprises No.13 - Contingencies. Subsequent adjustments are made for any remeasurement of the lease
liabilities.
2) Depreciation method of right-of-use assets
The Company uses the straight-line method for depreciation. If the Company as the lessee can reasonably
confirm that it obtains the ownership of the leasing assets at the expiration of the lease term the depreciation
shall be drawn within the remaining service life of the leasing assets. In case of a failure to determine the
ownership of the leased assets reasonably at the end of the lease period the depreciation shall be drawn within
the lease term or the remaining service life of leasing assets whichever is shorter.
3) The impairment test method and drawing method for impairment provision of right-of-use assets are
described in 38 “Others” in V “Significant Accounting Policies and Accounting Estimates” of Section VIII
- Financial Report.
(3) Work safety cost and maintenance & renovation cost
The Company withdraws the work safety cost month by month in an average manner by taking the method of
excess regression based on the actual operating income of the previous year according to the provisions of CZ
[2022] No.136 document. 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 cost and maintenance & renovation cost are included in the cost of
relevant products or the current profit and loss when withdrawn and are also included in the “special reserve”
account.
129Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
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. Meanwhile 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.
(4) Repurchase of shares
Shares repurchased by the Company are managed as treasury shares before being canceled or transferred and
all expenditures on repurchased shares are transferred to treasury share costs. Considerations in the payment for
shares repurchase and reduced owner’s equity in transaction expenses are not recognized as profits or losses
during repurchase assignment and write-off of the Company’s shares.The transferred treasury shares are included in the capital reserve based on the difference between the amount
actually received and the book value of the treasury shares. The surplus reserve and undistributed profits shall
be offset if the capital reserve is insufficient to offset. The canceled treasury shares are used to offset the capital
reserve based on the difference between the book balance and the face value of the canceled treasury shares by
reducing the share capital according to the face value of the shares and the number of canceled shares. The
surplus reserve and undistributed profits shall be offset if the capital reserve is insufficient to offset.
(5) Asset impairment
The asset impairment of long-term equity investment to subsidiaries associated enterprises and joint ventures
investment real estate subsequently measured by cost model fixed assets projects under construction right-of-
use assets intangible assets etc. (except for inventories deferred income tax assets and financial assets) is
recognized with the following methods:
The Company judges whether there is a sign of impairment to assets on the balance sheet date. If such a sign
exists the Company estimates the recoverable amount and conducts the impairment test. Impairment tests shall
be carried out every year on goodwill resulting from business combination intangible assets with uncertain
service life and intangible assets that have not yet reached their intended use no matter whether there is any sign
of impairment.The recoverable amount is the net amount of the fair value of the assets after deducting the disposal expenses or
the present value of the expected future cash flow of the assets whichever is higher. The Company estimates
the recoverable amount based on a single asset. If it is difficult to estimate the recoverable amount of a single
asset the recoverable amount of the asset group shall be determined based on the asset group to which the asset
belongs. An asset group is determined based on the fact that the main cash inflows generated by the asset group
are independent of the cash inflows of other assets or asset groups.When the recoverable amount of an asset or asset group is lower than its book value the Company writes down
its book value to the recoverable amount and the write-down amount is included in current profits and losses
and the corresponding impairment provision of assets is made at the same time.For the impairment test of goodwill the book value of goodwill resulting from business combination is
amortized to relevant asset groups with reasonable methods from the acquisition date or amortized to relevant
asset group portfolio if it is difficult to amortize it to relevant asset groups. Relevant asset groups or portfolios
130Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
of asset groups are those that can benefit from the synergies of business combination and are not greater than
the reporting segment determined by the Company.If there is any sign of impairment in the asset group or portfolio of asset groups related to goodwill during the
impairment test the impairment test shall be carried out on the asset group or portfolio of asset groups not
including goodwill and the recoverable amount shall be calculated to determine the corresponding impairment
loss. Then an impairment test is carried out on the asset group or portfolio of asset groups including goodwill to
compare its book value and recoverable amount and determine the impairment loss of goodwill if the
recoverable amount is lower than the book value.Once the impairment loss of assets is determined it will never be reversed in subsequent accounting periods.VI. Taxes
1. Main taxes and tax rates
Tax Category Tax Basis Tax Rate
Taxable value-added tax (the tax
payable is calculated by multiplying
VAT taxable sales by the applicable tax rate 18% 15% 13% 9% 6% 5%
and then deducting input tax allowed to
be deducted for the current period)
Urban maintenance and
construction tax Turnover tax actually paid 7% 5% 3%
Corporate income tax Taxable income 25%
Education surcharges Turnover tax actually paid 3%
Local educational surcharges Turnover tax actually paid 2%
Land use tax Land use area CNY 9/m2 CNY 14/m2 etc.Property tax Property residual value and rentalincome 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.
131Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
FAW Jiefang Dalian Diesel Engine Co. Ltd. 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 list of the second batch of high-tech enterprises in 2024 (with a certificate number of
GR202421200987) issued by Dalian on December 24 2024.
(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 Ending balance Opening balance
Cash on hand 713669.09 300158.23
Bank deposit 18431164870.86 10959276854.87
Other monetary capital 22205937.18 22157571.16
Deposit in finance companies 8772375400.00 8871226437.40
Total 27226459877.13 19852961021.66
Including: total amount deposited
822780233.29442153591.03
abroad
Details of restricted monetary capital are as follows:
Unit: CNY
Ending Balance of the
Item Ending balance
previous year
Security deposit for three types of personnel 27520214.70 28438604.73
Housing maintenance fund 22205937.18 22157571.16
Court freezing 214000.00
Total 49726151.88 50810175.89
2. Financial assets held for trading
Unit: CNY
Item Ending balance Opening balance
Financial assets at fair value
through profit or loss 5102739.73
Total 5102739.73
132Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
3. Notes receivable
(1) Classified presentation of notes receivable
Unit: CNY
Item Ending balance Opening balance
Commercial acceptance notes 300000.00 2641582.80
Total 300000.00 2641582.80
133Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
(2) Disclosure by the method of provision for bad debts
Unit: CNY
Ending 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
Including:
Notes
receivable
with
provision for 300000.00 100.00% 0.00 0.00% 300000.00 2649000.00 100.00% 7417.20 0.28% 2641582.80
bad debts by
portfolio
Including:
Total 300000.00 100.00% 0.00 0.00% 300000.00 2649000.00 100.00% 7417.20 0.28% 2641582.80
If the provision for bad debts of notes receivable is withdrawn based on the general model of expected credit losses:
□Applicable □Not applicable
Unit: CNY
Stage I Stage II Stage III
Provision for Bad Debts Expected Credit Losses for the Expected credit loss in the Expected credit loss for the Total
Next 12 Months duration (credit impairment has entire duration (with creditnot occurred) impairment)
Balance as of January 01 2025 7417.20 7417.20
Balance on January 1 2025 in
the current period
Provision in the current period -7417.20 -7417.20
Balance as of June 30 2025 0.00 0.00
Basis for stage division and proportion of bad debt provision
Explanation of significant changes in the carrying amount of notes receivable for which loss allowances changed during the current period:
134Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
(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 Endingbalance Provision Recovery orreversal Write-off Others
balance
Commercial
acceptance bill 7417.20 -7417.20 0.00
Total 7417.20 -7417.20 0.00
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 Ending book balance Beginning Book Balance
Within 1 year (including 1 year) 7199626456.71 6872611350.77
1-2 years 1133408461.03 157505139.84
2-3 years 72530384.22 75249438.78
Over 3 years 277154858.19 217725478.29
3-4 years 55121210.64 23161532.86
4-5 years 46490064.10 38071959.47
Over 5 years 175543583.45 156491985.96
Total 8682720160.15 7323091407.68
135Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
(2) Disclosure by the method of provision for bad debts
Unit: CNY
Ending balance Opening balance
Book balance Provision for Bad Debts Book balance Provision for Bad Debts
Category Provisio
n Book Value Provision Book Value
Amount Scale Amount Amount Scale Amount
proporti proportion
on
Accounts
receivable with
provision for 176626199.29 2.03% 154073418.09 87.23% 22552781.20 178969510.25 2.44% 156416729.05 87.40% 22552781.20
bad debts on an
individual basis
Including:
Accounts
receivable with
provision for 8506093960.86 97.97% 114945054.55 1.35% 8391148906.31 7144121897.43 97.56% 99378536.09 1.39% 7044743361.34
bad debts by
portfolio
Including:
Aging portfolio 8506093960.86 97.97% 114945054.55 1.35% 8391148906.31 7144121897.43 97.56% 99378536.09 1.39% 7044743361.34
Total 8682720160.15 100.00% 269018472.64 3.10% 8413701687.51 7323091407.68 100.00% 255795265.14 3.49% 7067296142.54
136Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Provision for bad debts by individual category
Unit: CNY
Opening balance Ending balance
Name
Book balance Provision for
Provision
Bad Debts Book balance
Provision for proportio Reasons forBad Debts n Provision
It is highly
Accounts probable that
receivable 1 37612001.70 37612001.70 37612001.70 37612001.70 100.00% the amountswill not be
recovered
It is highly
Accounts probable that
receivable 2 11948079.30 11948079.30 11948079.30 11948079.30 100.00% the amountswill not be
recovered
It is highly
Accounts probable that
receivable 3 11226311.19 11226311.19 11226311.19 11226311.19 100.00% the amountswill not be
recovered
It is highly
Accounts probable that
receivable 4 10820948.89 3246284.67 10820948.89 3246284.67 30.00% the amountswill not be
recovered
It is highly
Accounts probable that
receivable 5 10066741.31 3052841.31 10066741.31 3052841.31 30.33% the amountswill not be
recovered
It is highly
Accounts probable that
receivable 6 9720879.01 2916263.70 9720879.01 2916263.70 30.00% the amountswill not be
recovered
It is highly
Accounts probable that
receivable 7 8581536.83 8581536.83 7507375.97 7507375.97 100.00% the amountswill not be
recovered
It is highly
Accounts probable that
receivable 8 727900.00 727900.00 the amountswill not be
recovered
It is highly
Accounts probable that
receivable 9 8043264.87 8043264.87 8043264.87 8043264.87 100.00% the amountswill not be
recovered
Accounts It is highly
receivable 10 7732179.52 7732179.52 7732179.52 7732179.52 100.00% probable thatthe amounts
137Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
will not be
recovered
It is highly
Accounts probable that
receivable 11 7436520.00 7436520.00 7436520.00 7436520.00 100.00% the amountswill not be
recovered
It is highly
Accounts probable that
receivable 12 6230500.00 6230500.00 6230500.00 6230500.00 100.00% the amountswill not be
recovered
It is highly
Accounts probable that
receivable 13 5643600.00 5643600.00 5643600.00 5643600.00 100.00% the amountswill not be
recovered
It is highly
Other accounts probable that
receivable 43179047.63 42019445.96 42637797.53 41478195.86 97.28% the amountswill not be
recovered
Total 178969510.25 156416729.05 176626199.29 154073418.09
Provision for bad debts by portfolio category
Unit: CNY
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Within 1 year 7199626456.71 16945740.28 0.24%
1-2 years 1146211234.70 13398286.48 1.17%
2-3 years 60717603.50 6477758.09 10.67%
3-4 years 50562247.04 29146850.79 57.65%
Over 4 years 48976418.91 48976418.91 100.00%
Total 8506093960.86 114945054.55
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
Unit: CNY
Stage I Stage II Stage III
Provision for Bad Expected Credit Expected credit loss Expected credit loss
Debts in the duration for the entire TotalLosses for the Next
12 Months (credit impairment duration (with credithas not occurred) impairment)
Balance as of
January 01 2025 14976650.57 84401885.52 156416729.05 255795265.14
Balance on January
1 2025 in the
138Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
current period
Provision in the
current period 4923254.83 16504701.15 21427955.98
Reversal in the
Current Period 1802060.86 1802060.86
Other changes 2954165.12 2907272.40 541250.10 6402687.62
Balance as of June
30202516945740.2897999314.27154073418.09269018472.64
Basis for stage classification and bad debt provision rates: For Stage I and Stage II provisions are based on
aging with rates of 0.24% for within 1 year 1.17% for 1-2 years 10.67% for 2-3 years 57.65% for 3-4 years
and 100% for over 4 years. For Stage III the Company measures the loss allowance based on lifetime expected
credit losses for such accounts receivable.Description of significant changes in the book balance of accounts receivable with changes in provision for loss
in the current period:
(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
Categ
ory Opening balance Ending balanceProvision Recovery orreversal Write-off Others
Acco
unts
receiv 255795265.14 21427955.98 1802060.86 3804089.92 2598597.70 269018472.64
able
Total 255795265.14 21427955.98 1802060.86 3804089.92 2598597.70 269018472.64
Important provision for bad debts recovered or reversed in the current period:
Unit: CNY
Basis of
Amount determining the
Name of Unit Recovered or Reason for reversal Recovery Method proportion of
Reversed provision fororiginal bad debts
and its rationality
Litigation has been
initiated; the
Accounts receivable 1 727900.00 Recovered Notes and bank counterparty facesdeposits financial
difficulties making
recovery unlikely
Litigation has been
initiated; the
Accounts receivable 2 1074160.86 Recovered Bank deposit counterparty facesfinancial
difficulties making
recovery unlikely
139Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Total 1802060.86
(4) Other accounts receivable and contractual assets from the top five borrowers classified based on the
ending balance
Unit: CNY
Ending balance
Proportion in of bad debt
Ending Balance of Ending Ending balance of
total ending provision for
Name of Accounts balance of accounts
balance of accounts
Unit Receivable contractual receivable and
accounts receivable and
assets contractual assets receivable and impairmentcontractual provision for
assets contractual
assets
Accounts
receivable 1 6215538152.08 6215538152.08 71.46% 8066004.68
Accounts
receivable 2 297062648.76 297062648.76 3.42% 297062.65
Accounts
receivable 3 106149729.03 106149729.03 1.22% 1486096.21
Accounts
receivable 4 102142897.47 102142897.47 1.17% 286000.11
Accounts
receivable 5 91713600.00 91713600.00 1.05% 256798.08
Total 6812607027.34 6812607027.34 78.32% 10391961.73
5. Contract assets
(1) Contractual assets
Unit: CNY
Ending balance Opening balance
Item Provision
Book balance for Bad Book Value Book balance Provision for
Debts Bad Debts
Book Value
Contract
assets 14994696.42 459063.57 14535632.85 15055893.05 600351.00 14455542.05
Total 14994696.42 459063.57 14535632.85 15055893.05 600351.00 14455542.05
140Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
(2) Disclosure by the method of provision for bad debts
Unit: CNY
Ending 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 by 14994696.42 100.00% 459063.57 3.06% 14535632.85 15055893.05 100.00% 600351.00 3.99% 14455542.05
portfolio
Including:
Total 14994696.42 100.00% 459063.57 3.06% 14535632.85 15055893.05 100.00% 600351.00 3.99% 14455542.05
141Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Provision for bad debts by portfolio category
Unit: CNY
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Within 1 year 14128326.90 32164.20 0.23%
1-2 years 396442.52 49938.77 12.60%
2-3 years 469927.00 376960.60 80.22%
Total 14994696.42 459063.57
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses
□Applicable □Not applicable
Unit: CNY
Stage I Stage II Stage III
Provision for Bad Expected Credit Expected credit loss Expected credit loss
Debts Losses for the Next in the duration for the entire
Total
12 Months (credit impairment duration (withhas not occurred) credit impairment)
Balance as of
January 01 2025 32721.57 567629.43 600351.00
Balance on January
1 2025 in the
current period
Provision in the
current period -557.37 -140730.06 -141287.43
Balance as of June
30202532164.20426899.37459063.57
Basis for stage division and proportion of bad debt provision
In the first and second stages provisions for bad debts are made based on aging with rates of 0.23% for
accounts aged within 1 year 12.60% for accounts aged 1 to 2 years and 80.22% for accounts aged 2 to 3 years.Description of significant changes in the book balance of contractual assets with changes in provision for loss in
the current period:
(3) Provision for bad debts provided recovered or reversed in the current period
Unit: CNY
Item Provision in the
Recovery or Charge-off/Write-
current period reversal in the off in the Current Reasoncurrent period Period
Impairment
provision of -141287.43 Risks in payment
contract assets collection
Total -141287.43
Other description
142Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
6. Receivables financing
(1) Presentation of receivables financing by category
Unit: CNY
Item Ending balance Opening balance
Notes receivable 6250344325.45 10019816248.98
Total 6250344325.45 10019816248.98
(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 of Amount not derecognized at thethe period end of the period
Bank acceptance bill 719397070.50
Total 719397070.50
7. Other receivables
Unit: CNY
Item Ending balance Opening balance
Dividends receivable 157707661.77
Other receivables 1681860160.35 1182925650.71
Total 1681860160.35 1340633312.48
(1) Dividends receivable
1) Classification of dividends receivable
Unit: CNY
Item (or Investee) Ending balance Opening balance
First Automobile Finance Co. Ltd. 156960226.90
FAW Jiefang Fujie (Tianjin)
Technology Industry Co. Ltd. 747434.87
Total 157707661.77
(2) Other receivables
1) Classification of other receivables by nature
Unit: CNY
Nature Ending book balance Beginning Book Balance
Current account 1318116116.83 916206955.43
Claim payment 356384164.50 262619355.01
Margin deposit 29272805.25 30382472.86
Reserve fund 16082531.41 9876260.52
Total 1719855617.99 1219085043.82
2) Disclosure by aging
Unit: CNY
143Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Aging Ending book balance Beginning Book Balance
Within 1 year (including 1 year) 862719929.06 348766762.84
1-2 years 150639913.25 164029838.32
2-3 years 664112523.28 688094494.92
Over 3 years 42383252.40 18193947.74
3-4 years 14277174.26 726113.75
4-5 years 6827936.00 3701471.89
Over 5 years 21278142.14 13766362.10
Total 1719855617.99 1219085043.82
144Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
3) Disclosure by the method of provision for bad debts
□Applicable □Not applicable
Unit: CNY
Ending balance Opening balance
Book balance Provision for Bad Debts Book balance Provision for Bad Debts
Category
Provision Book Value Provision Book Value
Amount Scale Amount Amount Scale Amount
proportion proportion
Provision for
bad debts made
1555446.410.09%1555446.41100.00%2097739.410.17%2097739.41100.00%
by individual
item
Including:
Provision for
bad debts made 1718300171.58 99.91% 36440011.23 2.12% 1681860160.35 1216987304.41 99.83% 34061653.70 2.80% 1182925650.71
by portfolio
Including:
Total 1719855617.99 100.00% 37995457.64 2.21% 1681860160.35 1219085043.82 100.00% 36159393.11 2.97% 1182925650.71
145Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Provision for bad debts by individual category
Unit: CNY
Opening balance Ending balance
Name
Book balance Provision for
Reasons
Bad Debts Book balance
Provision for Provision
Bad Debts proportion forProvision
Other receivables 1 542293.00 542293.00
It is highly
probable
Other receivables 2 538200.00 538200.00 538200.00 538200.00 100.00% that theamounts
will not be
recovered
It is highly
probable
Other receivables 3 199194.30 199194.30 199194.30 199194.30 100.00% that theamounts
will not be
recovered
It is highly
probable
Other receivables 4 198000.00 198000.00 198000.00 198000.00 100.00% that theamounts
will not be
recovered
It is highly
probable
Other receivables 5 154539.47 154539.47 154539.47 154539.47 100.00% that theamounts
will not be
recovered
It is highly
probable
Other receivables 6 135000.00 135000.00 135000.00 135000.00 100.00% that theamounts
will not be
recovered
It is highly
probable
Other receivables 7 119600.00 119600.00 119600.00 119600.00 100.00% that theamounts
will not be
recovered
It is highly
probable
Other receivables 210912.64 210912.64 210912.64 210912.64 100.00% that theamounts
will not be
recovered
Total 2097739.41 2097739.41 1555446.41 1555446.41
Provision for bad debts by portfolio category
Unit: CNY
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Aging portfolio 1718300171.58 36440011.23 2.12%
146Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Total 1718300171.58 36440011.23
Description of the basis for determining this portfolio: None
Provision for bad debts based on the general model of expected credit losses:
Unit: CNY
Stage I Stage II Stage III
Provision for Bad Expected Credit Expected credit loss Expected credit loss
Debts Losses for the Next in the duration for the entire
Total
12 Months (credit impairment duration (withhas not occurred) credit impairment)
Balance as of
January 01 2025 2970998.62 31090655.08 2097739.41 36159393.11
Balance on January
1 2025 in the
current period
Provision in the
current period 2441393.86 -62436.33 2378957.53
Write-off in the
current period 600.00 542293.00 542893.00
Balance as of June
3020255412392.4831027618.751555446.4137995457.64
Basis for stage division and proportion of bad debt provision: For Stage I and Stage II provisions are made
based on aging with rates of 0.63% for Stage I and 3.63% for Stage II. For accounts in Stage III the Company
measures the loss allowance based on the expected credit losses over the entire lifetime of such accounts
receivable.Significant book balance changes occurred in the provision for losses in the current period
□Applicable□Not applicable
4) Provision recovery or reversal of bad debts in the current period
Provision for bad debts in the current period:
Unit: CNY
Change in the Current Period
Category Opening balance Recover Ending balance
Provision y or Charge-off
reversal or write-off
Others
Other
receivables 36159393.11 2378957.53 542893.00 37995457.64
Total 36159393.11 2378957.53 542893.00 37995457.64
(5) Other receivables written off in the current period
Unit: CNY
Item Amount Written off
Payment for goods 542893.00
Notes on write-off of other receivables:
147Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
6) Top five ending balances of other receivables classified by debtors
Unit: CNY
Proportion in
Name of Unit Nature of Ending balance Aging total ending
Ending Balance
Payment balance of other of Provision for
receivables Bad Debts
Other Funds for land
receivables 1 purchase and 660862800.00 2-3 years 38.43% 7269490.80reserve
Other New energy
receivables 2 subsidy 156240000.00 Within 1 year 9.08% 2499840.00
Other Funds for land
receivables 3 purchase and 129042064.00 0-6 months 7.50% 2064673.02reserve
Other Export tax
receivables 4 rebate 82115282.06 0-6 months 4.77%
Other New energy
receivables 5 subsidy 64505998.00
Less than 1
year 1-2 years 3.75% 4361497.01
Total 1092766144.06 63.53% 16195500.83
8. Advance payment
(1) Presentation of advance payment by aging
Unit: CNY
Ending balance Opening balance
Aging
Amount Scale Amount Scale
Within 1 year 139408349.98 90.91% 118197236.62 91.88%
1-2 years 13600361.66 8.87% 1609861.97 1.25%
2-3 years 256578.91 0.17% 8541250.38 6.64%
Over 3 years 79369.15 0.05% 290810.50 0.23%
Total 153344659.70 128639159.47
Reasons for delay in settlement of advance payment with important amounts and aging over 1 year: None
(2) Top five ending balances of advance payments classified by advance payment objects
The advance payments with the top five closing balances classified by the prepaid parties in the current period
are CNY 49215305.67 accounting for 32.09% of the total closing balance of advance payments.Other description:
9. Inventories
Does the Company need to comply with the disclosure requirements of the real estate industry: No
(1) Classification of inventories
Unit: CNY
148Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Ending 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
135984056.068845081.36127138974.70314311378.7638992671.09275318707.67
material
Goods in
441354724.6935526393.21405828331.48445006311.2611526023.10433480288.16
process
Goods in
8434928978.49180205495.128254723483.377452128355.61253655992.677198472362.94
stock
Revolving
236245834.7141587999.36194657835.3577088960.572406972.1474681988.43
material
Goods
574309857.76574309857.76
dispatched
Outsource
d semi-
2777496468.40151368503.052626127965.352270730746.00135470983.232135259762.77
finished
products
Others 86137117.47 86137117.47
Total 12686457037.58 417533472.10 12268923565.48 10559265752.20 442052642.23 10117213109.97
(2) Impairment provision of inventories and contract performance costs
Unit: CNY
Increase in the Current Period Decrease in the CurrentPeriod
Item Opening balance Ending balance
Provision Others Reverse orCharge-off Others
Raw material 38992671.09 -29556152.15 591437.58 8845081.36
Goods in
process 11526023.10 24072668.30 72298.19 35526393.21
Goods in
stock 253655992.67 79620979.93 153071477.48 180205495.12
Revolving
material 2406972.14 39533664.48 352637.26 41587999.36
Outsourced
semi-finished 135470983.23 38071826.78 22174306.96 151368503.05
products
Total 442052642.23 151742987.34 176262157.47 417533472.10
Provision for inventory write-down on a portfolio basis
10. Long-term receivables due within 1 year
Unit: CNY
Item Ending balance Opening balance
Long-term receivables due within 1 year 366794659.02 377668442.06
149Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Total 366794659.02 377668442.06
(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 Ending balance Opening balance
Input VAT 391233271.32 802923987.38
Input VAT to be certified 699931376.09 610578724.24
Others 135462.60
Total 1091164647.41 1413638174.22
Other description:
12. Investment in other equity instruments
Unit: CNY
Losse Cumulat
s ive Divi Reason for
includ being
Gains ed in Cumulative
losses dend designated
included in other gains are
are inco
included in included me
as being
measured
Projec other compr in other reco
t Opening comprehensi ehensi
other compreh gniz Ending at fair
Name balance ve incomes ve
comprehensi ensive ed in balance value and
in the incom ve incomes at incomes the changes
current es in the end of the at the curr included in
period the current end of ent other
curren period the peri comprehen
t current od sive
period period incomes
REFI Changes in
RE 540066528.00 49563864.00 108850392.00 589630392.00 fair value
Total 540066528.00 49563864.00 108850392.00 589630392.00
Other description:
150Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
13. Long-term receivables
(1) Long-term receivables
Unit: CNY
Ending balance Opening balance Discou
Item Provision for Bad Provision for Bad nt RateBook balance Debts Book Value Book balance Debts Book Value Range
Sales of goods by 539669033.39 62145156.01 477523877.38
installment 542060036.98 53480359.31 488579677.67
Long-term -428204778.91 -61410119.89 -366794659.02
receivables due -430595782.49 -52927340.43 -377668442.06
within 1 year
Total 111464254.48 735036.12 110729218.36 111464254.49 553018.88 110911235.61
(2) Disclosure by the method of provision for bad debts
Unit: CNY
Ending balance Opening balance
Book balance Provision for Bad Debts Book balance Provision for Bad Debts
Category Provisi
Book Value Book Value
Amount Scale Amount Provisionproportion Amount Scale Amount
on
proport
ion
Including:
Provision 539669033.39 100.00% 62145156.01 11.52%
for bad
debts made 477523877.38 542060036.98 100.00% 53480359.31 9.87% 488579677.67
by portfolio
Including:
Total 539669033.39 100.00% 62145156.01 11.52% 477523877.38 542060036.98 100.00% 53480359.31 9.87% 488579677.67
151Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Provision for bad debts by portfolio category
Unit: CNY
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Long-term receivables 539669033.39 62145156.01 11.52%
Total 539669033.39 62145156.01
Description of the basis for determining this portfolio:
Basis for stage division and proportion of bad debt provision
(3) Provision for bad debts provided recovered or reversed in the current period
Unit: CNY
Change in the Current Period
Category Openingbalance Ending balanceProvision Recovery or Charge-off or Othereversal write-off rs
Long-term
receivables 53480359.31 8664796.70 62145156.01
Total 53480359.31 8664796.70 62145156.01
Other description:
152Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
14. Long-term equity investments
Unit: CNY
Increase/Decrease in the current period Endin
Opening
g
balance
Investment balancof
Opening balance Additi Reduc Adjustment to Impair
Investee impairm gains or losses Cash dividends and
Ending balance e of
(book value) onal ed other Changes in mentrecognized profits are declared Others (book Value) impairent Invest Invest comprehensive other equity Provis ment
provisio under the equity to be paidment ment income ion
n method
provisi
on
I. Joint ventures
Jiefang
Times New
Energy 40983228.82 -2332566.78 38650662.04
Technology
Co. Ltd.Subtotal 40983228.82 -2332566.78 38650662.04
II. Associated enterprises
Changchun
Automotive
735066941.1717291512.2733768915.54718589537.90
Test Center
Co. Ltd.Sanguard
Automobile
184102155.372203459.151904514.70188210129.22
Insurance
Co. Ltd.FAW
Changchun
Ansteel
Steel
87914511.50492081.98-51433.8688355159.62
Processing
and
Distribution
Co. Ltd.FAW
43865938.843170420.6347036359.47
Changchun
153Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Baoyou
Jiefang
Steel
Processing
and
Distribution
Co. Ltd.FAW
Jiefang
Fujie
(Tianjin) 37096903.44 772158.52 1000000.00 36869061.96
Technology
Industry
Co. Ltd.Foshan
Diyiyuansu
New
28484079.98-1894194.4226589885.56
Energy
Technology
Co. Ltd.Changchun
Wabco
Automotive
14733920.76-1271824.0513462096.71
Control
System Co.Ltd.Diyi AESC
New
Energy
Power 4040781.21 -252889.67 3787891.54
Technology
(Wuxi) Co.Ltd.SmartLink
Suzhou
Zhito
Technology
Co. Ltd.Subtotal 1135305232.27 20510724.41 1904514.70 -51433.86 34768915.54 1122900121.98
154Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Total 1176288461.09 18178157.63 1904514.70 -51433.86 34768915.54 1161550784.02
155Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
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
Reason for apparent discrepancies between the foregoing information and the information used in the
impairment test or external information in the previous year: None
Reason for apparent discrepancies between the information used in the Company’s impairment test of the
previous year and the actual situation in the current year: None
Other description
15. Investment properties
(1) Investment properties measured at cost
□Applicable □Not applicable
Unit: CNY
Item Houses andBuildings Land use right
Project under
construction Total
I. Original book value
1. Opening balance 108628147.40 7498763.44 116126910.84
2. Increase in the
current period 6734780.35 6734780.35
(1) Purchase
(2) Transfer from
inventories/fixed
assets/construction in 6734780.35 6734780.35
progress
(3) Increase due to
business combination
3. Decrease in the
current period 12977125.79 12977125.79
(1) Disposal
(2) Other transfer-out
(3) Transferred to
fixed assets 12977125.79 12977125.79
4. Ending balance 102385801.96 7498763.44 109884565.40
II. Accumulated
depreciation and
accumulated
amortization
1. Opening balance 61732028.88 1558905.65 63290934.53
2. Increase in the
current period 3347397.69 76289.27 3423686.96
(1) Provision or
amortization 2564674.37 76289.27 2640963.64
(2) Transfer-in of
intangible assets and 782723.32 782723.32
fixed assets
156Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
3. Decrease in the
current period 4008110.64 4008110.64
(1) Disposal
(2) Other transfer-out
(3) Transferred to
fixed assets 4008110.64 4008110.64
4. Ending balance 61071315.93 1635194.92 62706510.85
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. Ending balance
IV. Book value
1. Ending book value 41314486.03 5863568.52 47178054.55
2. Beginning book
value 46896118.52 5939857.79 52835976.31
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
(2) Investment properties measured at fair value
□Applicable□Not applicable
16. Fixed assets
Unit: CNY
Item Ending balance Opening balance
Fixed assets 10581179165.47 11192711830.63
Disposal of fixed assets 27245194.48 5588741.57
Total 10608424359.95 11198300572.20
157Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
(1) Details of fixed assets
Unit: CNY
Item Houses and Machinery Transportation Electronic OfficeBuildings equipment equipment equipment equipment Others Total
I. Original book value
1. Opening balance 6345629801.82 18907276323.97 190421010.75 751797169.08 66794647.34 1402060800.25 27663979753.21
2. Increase in the
current period 37107681.01 508941326.01 647047.33 6340690.97 548371.47 4370191.83 557955308.62
(1) Purchase 1892120.53 290775.89 6946.71 515977.00 2705820.13
(2) Transfer from
construction in progress 25625405.10 502817605.64 422415.93 4618003.49 341625.50 3854214.83 537679270.49
(3) Increase due to
business combination
(4) Other increases 11482275.91 4231599.84 224631.40 1431911.59 199799.26 17570218.00
3. Decrease in the
current period 48860975.87 750579779.29 1637049.94 4817845.10 1527390.05 40728250.26 848151290.51
(1) Disposal or
retirement 40838292.81 749843068.93 1195242.52 4498094.47 1510312.00 40683654.23 838568664.96
(2) Other decreases 8022683.06 736710.36 441807.42 319750.63 17078.05 44596.03 9582625.55
4. Ending balance 6333876506.96 18665637870.69 189431008.14 753320014.95 65815628.76 1365702741.82 27373783771.32
II. Accumulated
depreciation
1. Opening balance 2647820937.69 11765076408.49 142301805.63 651297497.99 47989583.56 1193334887.79 16447821121.15
2. Increase in the
current period 169708548.50 603827403.61 9753495.55 37955567.98 3114672.21 38306623.80 862666311.65
(1) Provision 166510861.03 603084479.75 9753495.55 37955567.98 3114672.21 38306623.80 858725700.32
(2) Other increases 3197687.47 742923.86 3940611.33
3. Decrease in the
current period 32610157.43 461948700.69 1615669.76 4789191.73 1447209.16 32832537.54 535243466.31
(1) Disposal or
retirement 24425962.73 461945062.04 1486652.56 4490299.60 1432710.11 32828350.75 526609037.79
(2) Other decreases 8184194.70 3638.65 129017.20 298892.13 14499.05 4186.79 8634428.52
4. Ending balance 2784919328.76 11906955111.41 150439631.42 684463874.24 49657046.61 1198808974.05 16775243966.49
158Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
III. Impairment
provision
1. Opening balance 12344.37 20451354.58 42350.40 2940752.08 23446801.43
2. Increase in the
current period
(1) Provision
3. Decrease in the
current period 12344.37 5228748.32 42142.85 802926.53 6086162.07
(1) Disposal or
retirement 12344.37 5228748.32 42142.85 802926.53 6086162.07
4. Ending balance 15222606.26 207.55 2137825.55 17360639.36
IV. Book value
1. Ending book value 3548957178.20 6743460153.02 38991376.72 68856140.71 16158374.60 164755942.22 10581179165.47
2. Beginning book
value 3697796519.76 7121748560.90 48119205.12 100499671.09 18762713.38 205785160.38 11192711830.63
159Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
(2) Temporary idle fixed assets
Unit: CNY
Item Original book Accumulated Impairmentvalue depreciation Provision Book Value Remarks
Machinery
equipment 149690966.82 135444373.85 4742728.62 9503864.35
Transportation
equipment 4899762.30 4670359.06 229403.24
Electronic
equipment 638688.60 638688.60
Others 4331562.90 2739438.20 1592124.70
Total 159560980.62 143492859.71 4742728.62 11325392.29
(3) Fixed assets leased out under operating leases
Unit: CNY
Item Ending Book Value
Warehouse and office 421011.60
Total 421011.60
(4) Fixed assets without property ownership certificates
Unit: CNY
Item Book Value Reasons for failure to obtain thecertificate
The property ownership certificate
will be applied for after the final
Guanghan base project 258760894.39
account audit upon completion of
the project
It is a new plant and the
Project of exiting the city and
36843214.49 information is incomplete and
entering the industrial park
currently being processed.Total 295604108.88
Other description
(5) Impairment testing of fixed assets
□Applicable□Not applicable
(6) Disposal of fixed assets
Unit: CNY
Item Ending balance Opening balance
Houses and Buildings 42244.58 44184.97
Machinery equipment 25610530.29 3066994.74
Means of transport 266053.79 357163.02
Electronic equipment 23158.49
Office equipment 54042.14 1004714.07
Others 1272323.68 1092526.28
160Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Total 27245194.48 5588741.57
Other description:
17. Construction in progress
Unit: CNY
Item Ending balance Opening balance
Project under construction 762817790.85 688181815.22
Total 762817790.85 688181815.22
(1) Construction in progress
Unit: CNY
Ending balance Opening balance
Item
Book balance ImpairmentProvision Book Value Book balance
Impairment
Provision Book Value
New and
reconstruc
ted 27289026.43 1945416.12 25343610.31 30573415.10 1945416.12 28627998.98
investmen
t project
Technical
transforma
tion 737529677.73 55497.19 737474180.54 659609313.43 55497.19 659553816.24
investmen
t project
Total 764818704.16 2000913.31 762817790.85 690182728.53 2000913.31 688181815.22
161Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
(2) Changes in important construction in progress in the current period
Unit: CNY
Includin
Proporti Cum
g:
on of ulativ Capitali
Capitali
Amount Other accumul e zation
zed
transferred to Decreas ated amou rate of
Project Increase in the Project interest Capital
Budget Opening balance fixed assets in es in the Ending balance investme nt of interest
Name Current Period Progress amount source
the current Current nt in capita in
during
period Period construc lized current
the
tions to intere period
current
budget st
period
R&D
capacity
improveme
nt project Proceeds
651779990.00413094135.2628028986.8027272530.59413850591.4767.68%87.55%
of FAW others
Jiefang
Qingdao
Base
FAW
Jiefang
Wuxi R&D Proceeds
423550000.00126583954.8272871533.2433469153.51165986334.5548.79%70%
Base others
Constructio
n Project
FAW
Jiefang
Digital
Intelligenc
66000000.00 17719690.62 19204867.78 36924558.40 55.95% 59.5% Others
e
Capability
Enhanceme
nt Project
Project of
exiting the 936068800.00 19204724.39 -24936.56 -24936.56 19204724.39 71.43% 97.87% Others
city and
162Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
entering
the
industrial
park
Second-
generation
E/E
architectur
e 32000000.00 16401117.40 16401117.40 51.25% 70% Others
commercia
l vehicle
HIL
simulator
Pilot line
for heavy-
duty
33240000.00 12361061.95 12361061.95 37.19% 58% Others
electric
drive
systems
Expansion
Project of
Canteen
No.2 Jimo
Plant
Complete 16760000.00 90360.64 11128406.19 11218766.83 66.94% 70% Others
Vehicle
Division
FAW
Jiefang
Qingdao
Total 2159398790.00 593093983.13 143569919.40 60716747.54 675947154.99
163Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
(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 182543339.08 58312113.04 18310487.47 259165939.59
2. Increase in the
current period 1378304.83 1378304.83
(1) Lease-in 1378304.83 1378304.83
(2) Other increases
3. Decrease in
the current period 34515820.91 530973.45 35046794.36
(1) Lease expiration 33769556.90 33769556.90
(2) Other decreases 746264.01 530973.45 1277237.46
4. Ending balance 149405823.00 57781139.59 18310487.47 225497450.06
II. Accumulated
depreciation
1. Opening balance 116220620.78 22624377.20 15960621.04 154805619.02
2. Increase in the
current period 11883659.72 5339497.33 1091799.08 18314956.13
(1) Provision 11883659.72 5339497.33 1091799.08 18314956.13
(2) Other increases
3. Decrease in the 33769556.90 33769556.90
164Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
current period
(1) Disposal 0.00
(2) Lease expiration 33769556.90 33769556.90
(3) Other decreases
4. Ending
balance 94334723.60 27963874.53 17052420.12 139351018.25
III. Impairment
provision
1. Opening balance
2. Increase in the
current period
(1) Provision
3. Decrease in the
current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book
value 55071099.40 29817265.06 1258067.35 86146431.81
2. Beginning book
value 66322718.30 35687735.84 2349866.43 104360320.57
(2) Impairment test of right-of-use assets
□Applicable□Not applicable
Other description:
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 2613919878.90 518350613.94 633044419.57 3765314912.41
2. Increase in
the current 504218.45 87983705.47 9719400.28 98207324.20
period
(1) Purchase 50973.45 9719400.28 9770373.73
(2) Internal
R&D 87983705.47 87983705.47
(3) Increase due
to business
combination
(4) Other 453245.00 453245.00
165Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
increases
3. Decrease in
the current 49079262.60 2732237.75 51811500.35
period
(1) Disposal 48881314.36 2732237.72 51613552.08
(2) Other
decreases 197948.24 0.03 197948.27
4. Ending
balance 2565344834.75 606334319.41 640031582.10 3811710736.26
II. Accumulated
amortization 375747341.98
1. Opening
balance 662152276.59 375747341.98 390187329.45 1428086948.02
2. Increase in
the current 27484857.72 22132898.05 49734476.63 99352232.40
period
(1) Provision 27419487.78 22132898.05 49734476.63 99286862.46
(2) Other
increases 65369.94 65369.94
3. Decrease in
the current 15602856.59 1758652.81 17361509.40
period
(1) Disposal 15602856.59 1758652.81 17361509.40
4. Ending
balance 674034277.72 397880240.03 438163153.27 1510077671.02
III. Impairment
provision
1. Opening
balance 126763.41 126763.41
2. Increase in
the current
period
(1) Provision
3. Decrease in
the current
period
(1) Disposal
4. Ending
balance 126763.41 126763.41
IV. Book value
1. Ending book
value 1891183793.62 208454079.38 201868428.83 2301506301.83
2. Beginning
book value 1951640838.90 142603271.96 242857090.12 2337101200.98
The proportion of intangible assets formed through internal R&D to the balance of intangible assets at the end
of current period is 3.82%.
166Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
(2) Impairment testing of intangible assets
□Applicable□Not applicable
22. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets not offset
Unit: CNY
Ending balance Opening balance
Item Deductible Deferred Income Deductible Deferred Income
temporary difference tax assets temporary difference tax assets
Impairment
provision of 775271486.32 158411872.00 797768103.97 148751169.98
assets
Unrealized
gains of internal 153881436.39 38470359.10 153881436.39 38470359.10
transactions
Deductible
losses 11077702138.07 1742060238.37 10589766314.64 1765089314.84
Accrued
expenses 3998293787.91 942325506.27 3227055244.11 769751687.24
Estimated
liabilities 1239330087.42 182891894.92 697556880.11 115586665.72
Contract
liabilities 633754721.28 82799235.34 553633245.41 85386658.52
Deferred
income 506341305.37 107417451.68 512685762.47 109012100.36
Employee
compensation 95382829.89 14643179.62 94430202.39 15390464.58
payable
Lease liabilities 50491897.34 11645550.18 58263018.99 13770069.13
Assets
depreciation 582203.90 174661.17 653809.89 196142.97
differences
Total 18531031893.89 3280839948.65 16685694018.37 3061404632.44
(2) Deferred income tax liabilities not offset
Unit: CNY
Ending 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 1650544634.92 317169888.18 1833126166.73 337124836.34
longer than tax
preference period
Accrued interest
income 650292796.68 105421004.72 476710852.22 76467601.95
Right-of-use assets 31257902.39 7802186.91 43191229.17 10183212.28
Total 2332095333.99 430393079.81 2353028248.12 423775650.57
167Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
(3) Deferred tax assets or liabilities presented in net amount after offset
Unit: CNY
Ending Mutual Ending balance of Opening mutual Opening balance of
Item Offset Amount of deferred tax assets offset amount of deferred tax assetsDeferred Tax Assets or liabilities after deferred tax assets or liabilities after
and Liabilities offset and liabilities offset
Deferred Income
tax assets 3280839948.65 3061404632.44
Deferred income
tax liabilities 430393079.81 423775650.57
(4) Details of unrecognized deferred tax assets
Unit: CNY
Item Ending balance Opening balance
Deductible temporary difference 440470957.85 572093879.05
Deductible losses 225388600.72
Total 440470957.85 797482479.77
(5) Deductible losses of unrecognized deferred tax assets will be due in the following years
Unit: CNY
Year Ending amount Beginning balance Remarks
20261441940.001441940.00
20273524136.573524136.57
20286764901.926764901.92
202915796963.9015796963.90
203275764407.62197860658.33
Total 103292350.01 225388600.72
Other description
23. Other current assets
Unit: CNY
Ending balance Opening balance
Impai Impa
Item irme
Book balance rmentProvi Book Value Book balance nt Book Value
sion Provision
Advance
payments
for 211548080.07 211548080.07 113186886.26 113186886.26
constructio
n projects
Advance
payments
for 3586261.77 3586261.77 65245589.33 65245589.33
equipment
168Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
and
software
Fixed
deposits
and 2496561111.15 2496561111.15 2465761111.13 2465761111.13
accrued
interest
Total 2711695452.99 2711695452.99 2644193586.72 2644193586.72
Other description:
24. Assets with restricted ownership or use right
Unit: CNY
Ending Beginning
Item Book Book Restricti Restric
balance Value on type Restriction
Book Book Restricti
balance Value tiontype on
Housing
maintena
Housing nce fund
maintenance securityMoneta
ry fund security
deposit
49726108.37 49726108.37 deposit for 50810175.89 50810175.89 for threecapital three types of types of
personnel personnel and
frozen
funds
Due to the Due to
Tanzanian the
government’s Tanzania
central n
railway governm
reconstructio ent’s
n project central
approximatel railway
y 2000 square reconstru
meters of ction
land project
belonging to approxi
Intangi the mately
ble 2059491.56 1013790.22 Company’s 2059491.56 1150344.99 2000
assets Tanzanian square
subsidiary meters of
was land
expropriated belongin
in March g to the
2017. To date Compan
no official y’s
documentatio Tanzania
n or n
notification subsidiar
has been y was
received from expropri
the Tanzanian ated in
169Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
authorities. March
2017. To
date no
official
documen
tation or
notificati
on has
been
received
from the
Tanzania
n
authoriti
es.Total 51785599.93 50739898.59 52869667.45 51960520.88
Other description:
25. Notes payable
Unit: CNY
Category Ending balance Opening balance
Bank acceptance bill 21803140258.04 15370906363.16
Total 21803140258.04 15370906363.16
The total amount of notes payable due but unpaid at the end of the current period is CNY 0.00.
26. Accounts payable
(1) Presentation of accounts payable
Unit: CNY
Item Ending balance Opening balance
Payment for goods 16981671841.62 16650985030.88
Expenses and others 2553353125.63 595368938.17
Total 19535024967.25 17246353969.05
27. Other payables
Unit: CNY
Item Ending balance Opening balance
Dividends payable 171500.02 171500.02
Other payables 3237271386.58 4526037421.21
Total 3237442886.60 4526208921.23
(1) Dividends payable
Unit: CNY
Item Ending balance Opening balance
Ordinary stock dividends 171500.02 171500.02
170Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Total 171500.02 171500.02
Other description including the disclosure of the reasons for not paying the important dividends payable for
more than 1 year:
(2) Other payables
1) Presentation of other payables by payment nature
Unit: CNY
Item Ending balance Opening balance
Expenses payable 1503239535.52 2665746970.54
Margin deposit 206982291.54 235940482.07
Project funds payable 890356371.39 1188958861.78
Repurchase obligations of
restricted shares 6246851.73
Current accounts payable and
others 636693188.13 429144255.09
Total 3237271386.58 4526037421.21
28. Advance receipts
(1) Presentation of advance receipts
Unit: CNY
Item Ending balance Opening balance
Rental fee 662358.34 674009.56
Total 662358.34 674009.56
29. Contract liabilities
Unit: CNY
Item Ending balance Opening balance
Payment for goods 2048275372.00 2015193856.18
Others 633754721.26 633128232.65
Contract liabilities are included in
other current liabilities -192157579.59 -217767924.33
Total 2489872513.67 2430554164.50
30. Employee compensation payable
(1) Presentation of employee compensation payable
Unit: CNY
Item Opening balance Increase in the Decrease in theCurrent Period Current Period Ending balance
I. Short-term
compensation 954241602.96 1846712489.99 2459739584.04 341214508.91
II. Post- 771551.66 319165116.18 312198557.38 7738110.46
employment
171Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
benefits - defined
contribution plan
III. Dismissal
welfare 39431741.44 27734429.16 26116118.80 41050051.80
IV. Other benefits
due within one year 49110000.00 17214462.19 31895537.81
Total 1043554896.06 2193612035.33 2815268722.41 421898208.98
(2) Presentation of short-term compensation
Unit: CNY
Item Opening balance Increase in the Decrease in theCurrent Period Current Period Ending balance
1. Wages bonuses
allowances and 626337023.60 1198425074.31 1824762097.91
subsidies
2. Employee
welfare expenses 91595771.02 91586877.73 8893.29
3. Social insurance
premiums 1236540.25 170677325.59 169230754.10 2683111.74
Including:
medical insurance 1236540.25 160346904.88 158900333.39 2683111.74
premiums
4. Housing
provident fund 245903806.30 245903806.30
5. Labor union
funds and employee 324735755.63 49743144.40 35956396.15 338522503.88
education funds
6. Other short-term
compensations 1932283.48 90367368.37 92299651.85
Total 954241602.96 1846712489.99 2459739584.04 341214508.91
(3) Presentation of defined contribution plan
Unit: CNY
Item Opening balance Increase in the Decrease in theCurrent Period Current Period Ending balance
1. Basic endowment
insurance 308714.56 220641697.98 220180458.76 769953.78
2. Unemployment
insurance premiums 462837.10 9419681.57 9261586.82 620931.85
3. Payment of
enterprise annuity 89103736.63 82756511.80 6347224.83
Total 771551.66 319165116.18 312198557.38 7738110.46
Other description
31. Taxes payable
Unit: CNY
172Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Item Ending balance Opening balance
VAT 61110032.91 34237788.67
Corporate income tax 146752057.45 136470856.41
Individual income tax 1012345.17 7020253.06
Urban maintenance and
construction tax 4588836.92 3308379.91
Property tax 8532116.81 7843917.34
Land use tax 4454304.43 4430820.03
Education surcharges 5362116.71 3902829.10
Other taxes 20789470.20 18318058.50
Total 252601280.60 215532903.02
Other description
32. Non-current liabilities due within one year
Unit: CNY
Item Ending balance Opening balance
Lease liabilities due within one
year 12714703.34 29941701.02
Total 12714703.34 29941701.02
Other description:
33. Other current liabilities
Unit: CNY
Item Ending balance Opening balance
Taxes to be written off 192157579.59 217767924.33
Total 192157579.59 217767924.33
Other description:
34. Lease liabilities
Unit: CNY
Item Ending balance Opening balance
Lease payment 21081951.10 59490077.98
Unrecognized financing charges -979928.14 -2116776.32
Lease liabilities due within one
year -12714703.34 -29941701.02
Total 7387319.62 27431600.64
Other description:
35. Long-term employee compensation payable
(1) Long-term employee compensation payable
Unit: CNY
Item Ending balance Opening balance
173Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
I. Post-employment welfare - net
liabilities of defined benefit plan 626304432.92 682430000.00
II. Dismissal welfare 82326239.29 98901796.39
Long-term employee compensation
payable due within one year -18373548.69 -88541741.44
Total 690257123.52 692790054.95
36. Estimated liabilities
Unit: CNY
Item Ending balance Opening balance Reason
Pending litigation 35026870.07 23974831.93
Product quality assurance 1187076222.06 951513050.80
Others 17226995.29 17226995.29
Total 1239330087.42 992714878.02
Other description including important assumptions and estimation descriptions related to important estimated
liabilities:
37. Deferred income
Unit: CNY
Item Opening balance Increase in the Decrease in theCurrent Period Current Period Ending balance Reason
Governme
nt 2936362847.77 95707715.10 128717336.37 2903353226.50
subsidies
Total 2936362847.77 95707715.10 128717336.37 2903353226.50
Other description:
38. Share capital
Unit: CNY
Increase/Decrease (+/-)
Share
Issue Bon Transfe
Opening balance of rred Ending balance
New usshar from Others SubtotalShare es Accums ulation
Fund
Total
shares 4922371176.00 -1090201.00 -1090201.00 4921280975.00
Other description:
39. Capital reserves
Unit: CNY
Item Opening balance Increase in Decrease in the Ending balance
174Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
the Current Current Period
Period
Capital premium
(stock premium) 10961835016.88 4993120.58 10956841896.30
Other capital
reserves 999645030.86 35839.60 51433.86 999629436.60
Total 11961480047.74 5008714.84 11956471332.90
Other description including increase/decrease in the current period and reasons for change:
Reasons for the decrease in capital reserve (share premium) during the period:
* The capital reserve (share premium) decreased by CNY 4993120.58 due to the repurchase and cancellation
of restricted shares reserved under the Company’s Phase I restricted share incentive plan as the performance
targets set for the third release period were not achieved.Reason for increase in capital reserve (other capital reserve):
The Company recognized a decrease of CNY 51433.86 and an increase of CNY 35839.60 based on its
proportionate share of changes in investees’ equity resulting from factors other than net profit other
comprehensive income and profit distribution.
40. Treasury shares
Unit: CNY
Item Opening balance Increase in the Decrease in theCurrent Period Current Period Ending balance
Treasury shares 6246851.73 6246851.73
Total 6246851.73 6246851.73
Other description including increase/decrease in the current period and reasons for change:
The treasury shares decreased by CNY 6246851.73 in the current period due to the Company’s repurchase and
cancellation.
41 Other comprehensive incomes
Unit: CNY
Amount Incurred in Current Period
Less: Less:
Curre Current
nt Retained
Amount After-Profits Earnings
incurred or Transferre Less: After-tax
tax
Opening before amountItem Losse d from income amount Endingbalance income tax attributas Other tax attributable balance
in the ble toTransf Comprehe expens to parent
current erred nsive es company
minority
period shareholfrom Income ders
Other Recorded
Comp in the
rehens Previous
175Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
ive Period
Incom
e
Recor
ded in
the
Previo
us
Period
I. Other
comprehens
ive incomes
that cannot
be 18899058.75 51468378.70 51468378.70 70367437.45
reclassified
into profits
or losses
Including:
changes
arising from
re-
measuremen -58350000.00 -58350000.00
t of the
defined
benefit plan
Other
comprehens
ive incomes
that cannot
be
reclassified 17962530.75 1904514.70 1904514.70 19867045.45
into profit
or loss
under the
equity
method
Changes in
fair value of
investment 108850392.0
in other 59286528.00 49563864.00 49563864.00 0
equity
instruments
II. Other
comprehens
ive incomes
that will be --115811405.46 2043849.71 2043849.71
reclassified 113767555.75
into profits
or losses
Including:
other
comprehens
ive incomes -5354172.83 -5354172.83
that can be
reclassified
into profits
176Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
or losses
under the
equity
method
Translation
difference in
foreign -
currency -110457232.63 2043849.71 2043849.71 108413382.9
financial 2
statements
Total other
comprehens -96912346.71 53512228.41 53512228.41 -43400118.30
ive incomes
Other description including the adjustment of the effective part of cash flow hedging profit or loss transferred
to the initially recognized amount of the hedged item:
42 Special reserves
Unit: CNY
Item Opening balance Increase in the Decrease in theCurrent Period Current Period Ending balance
Work safety cost 277345883.15 15518831.90 19643236.93 273221478.12
Total 277345883.15 15518831.90 19643236.93 273221478.12
Other description including increase/decrease in the current period and reasons for change:
43. Surplus reserves
Unit: CNY
Item Opening balance Increase in the Decrease in theCurrent Period Current Period Ending balance
Statutory surplus
reserve 2907021755.69 2907021755.69
Discretionary
surplus reserves 297526491.71 297526491.71
Total 3204548247.40 3204548247.40
Description of surplus reserve including increase/decrease and reasons for change in the current period:
44. Undistributed profits
Unit: CNY
Item Current period Previous period
Undistributed profits at the end of
the previous period before 6055339906.81 6191777512.32
adjustment
Total amount of opening
undistributed profit adjusted (“+” 54756122.34
for increase “-” for decrease)
Undistributed profits at the 6055339906.81 6246533634.66
beginning of the current period
177Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
after adjustment
Add: net profit attributable to
owners of parent company in the 19655810.39 506807530.06
current period
Less: ordinary stock dividends
payable 246064048.75 693579557.10
Undistributed profits at the end of
the period 5828931668.45 6059761607.62
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 undistributed profit at the beginning of the period affected by changes in accounting policies is 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.
45. Operating income and operating cost
Unit: CNY
Amount Incurred in Current Period Amount Incurred in the Previous Period
Item
Income Cost Income Cost
Main
business 27347477621.24 26277912207.22 35644730484.30 33704793046.07
Other
business 731227436.83 562650278.31 820958136.99 650423218.46
Total 28078705058.07 26840562485.53 36465688621.29 34355216264.53
Other description
Information related to the transaction price allocated to the remaining performance obligations: The income
corresponding to the performance obligations that have been signed but not yet fulfilled or completed at the end
of the reporting period is CNY 633754721.26 of which CNY 316877360.63 is expected to be recognized in
2025 and CNY 316877360.63 is expected to be recognized in 2026.
Information related to variable consideration in the contract:
Other description
46. Taxes and surcharges
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Urban maintenance and
construction tax 26376149.77 9129878.62
Education surcharges 18229908.19 6239901.02
Property tax 38494307.30 36577269.48
Land use tax 21474951.70 21263435.84
178Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Vehicle and vessel use tax 29602.64 55080.14
Stamp duty 34150809.65 32360775.27
Others 147323.06 186426.21
Total 138903052.31 105812766.58
Other description:
47 Administrative expenses
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Employee compensation 418204175.92 438665751.19
Depreciation cost 43027324.67 70280864.26
Amortization of intangible assets 36133463.83 43136807.90
Repair cost of fixed assets 30004846.81 74426351.47
Others 78596928.15 123448858.40
Total 605966739.38 749958633.22
Other description
48. Sales expenses
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Employee compensation 250320067.23 274429426.12
Packing cost 52202077.34 63410413.70
Storage fee 34918642.20 54530428.75
Rental fee 31314967.40 29208643.34
Others 103286681.94 99191906.12
Total 472042436.11 520770818.03
Other description:
49. R&D expenses
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Employee compensation 599512737.98 762070442.14
Depreciation amortization expense 120745264.01 127558615.73
Material expenses 66118813.01 63424023.76
Test and inspection 44222102.96 102663923.41
Others 54298777.08 79866271.93
Total 884897695.04 1135583276.97
Other description
50 Financial expenses
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the Previous
179Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Period
Interest income -255428034.69 -339376065.31
Interest expense 1611404.27 1431811.40
Exchange gain or loss 55468039.40 -10163545.25
Net actuarial interest 369016.95 395666.67
Cash discount -53829494.32 -64567826.30
Fees and other charges -1040155.20 2194258.87
Total -252849223.59 -410085699.92
Other description
51. Other income
Unit: CNY
Sources of other income Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Additional deduction of VAT 210671420.57 142242391.94
Refund of handling fees to
individual income tax 2026313.12 2035928.98
Government subsidies 311937333.71 209501338.40
Total 524635067.40 353779659.32
52. Investment income
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Income from long-term equity
investments accounted for using 18178157.63 213988413.65
the equity method
Others -48294017.40 -112101568.99
Total -30115859.77 101886844.66
Other description
53. Credit impairment loss
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Bad debt losses of notes receivable 7417.20 21670.17
Bad debt losses of accounts
receivable -19625895.12 -26638370.74
Bad debt losses of other
receivables -2372431.37 21085584.29
Bad debt losses of long-term
receivables -8664796.70 -3061966.20
Total -30655705.99 -8593082.48
Other description
180Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
54. Impairment loss on assets
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
I. Inventory falling price loss and
contract performance cost -151749513.50 -107647732.89
impairment loss
II. Impairment loss of contract
assets 141287.43 -387041.28
Total -151608226.07 -108034774.17
Other description:
55. Income from assets disposal
Unit: CNY
Sources of income from assets
disposal Amount Incurred in Current Period
Amount Incurred in the Previous
Period
Gains from fixed assets disposal 99547161.36 746088.82
Gains from intangible assets
disposal 55078800.72
Others -11273.34
Total 154614688.74 746088.82
56. Non-operating income
Unit: CNY
Item Amount Incurred in Amount Incurred in
Amount included in
Current Period the Previous Period current non-recurringprofits and losses
Unpayable amount recognized 2799051.01 11378406.14 2799051.01
Income from compensation
liquidated damages and fines 9348535.01 6971354.67 9348535.01
Gains from damage and retirement
of non-current assets 169347.64 46052.83 169347.64
Others -992780.31 9710410.31 -992780.31
Total 11324153.35 28106223.95 11324153.35
Other description:
57. Non-operating expenses
Unit: CNY
Amount included in
Item Amount Incurred in Amount Incurred in current non-Current Period the Previous Period recurring profits and
losses
Donation 50000.00 2978920.00 50000.00
Losses from damage and
retirement of non-current assets 731252.92 989080.93 731252.92
Expenditure of liquidated damages 246305.40 -208941.12 246305.40
181Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
and penalties
Others 634979.05 24732.00 634979.05
Total 1662537.37 3783791.81 1662537.37
Other description:
58. 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 37702597.83 128198474.71
Deferred income tax expense -212856638.81 -276740077.23
Total -175154040.98 -148541602.52
(2) Adjustment process of accounting profits and income tax expenses
Unit: CNY
Item Amount Incurred in Current Period
Total profits -134286546.42
Income tax expense calculated at statutory/applicable
tax rate -33571636.61
Effect of different tax rates applied to subsidiaries 5931927.22
Effect of adjustment to income tax of previous periods -29560278.44
Profit or loss of joint ventures and associated
enterprises calculated by equity method 2726723.64
Tax effect of R&D expenses plus deduction -120680776.80
Income tax expenses -175154040.98
Other description
59. Other comprehensive incomes
For details please refer to 41 in VII “Notes to Consolidated Financial Statements” of Section VIII - Financial
Report.
60. Items of 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
Bank interest 299977105.90 397148937.72
Government subsidies received 247352138.68 184296132.42
Others 181860797.00 193288400.23
Total 729190041.58 774733470.37
182Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Description of other cash received related to operating activities:
Other cash paid related to operating activities
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Out-of-pocket expenses 596122774.88 511728709.39
Current account 555829293.70 451612329.19
Donations 50000.00 2978920.00
Total 1152002068.58 966319958.58
Description of other cash payments related to operating activities:
(2) 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
Amount paid to repay lease
liabilities 1227805.50 11981752.58
Total 1227805.50 11981752.58
Description of other cash payments related to financing activities:
Changes in liabilities arising from financing activities
□Applicable□Not applicable
61. Supplementary information to cash flow statement
(1) Supplementary information to cash flow statement
Unit: CNY
Supplementary information Amount in the current Amount of the Previousperiod Period
1. Reconciliation of net profit to cash flows from operating
activities:
Net Profit 40867494.56 521081332.69
Add: impairment provision of assets 182263932.06 116824153.86
Depreciation of fixed assets depletion of oil and gas
assets and productive biological assets 812466551.98 893392209.12
Depreciation of right-of-use asset 2018679.42 796214.19
Amortization of intangible assets 50497998.86 50898373.61
Amortization of long-term deferred expenses
Losses from fixed assets disposal intangible assets
and other long-term assets (incomes to be listed with“-”) -154614688.74 -746088.82
Loss from retirement of fixed assets (incomes to be
listed with “-”) 731252.92 989080.93
Loss from changes in fair value (incomes to be
listed with “-”)
Financial expenses (incomes to be listed with “-”) -176988531.24 -121745551.00
183Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Investment losses (incomes to be listed with “-”) 30115859.77 -101886844.66
Decrease of deferred income tax assets (increase to
be listed with “-”) -219435316.21 -158004827.46
Increases of deferred income tax liabilities (decrease
to be listed with “-”) 6617429.24 -39040127.50Decrease in inventories (increase to be listed with “-”)-2152169519.081421102204.04
Decrease in operating receivables (increase to be
listed with “-”) -2363012740.41 -14968220063.68
Increase in operating items payable (decrease to be
listed with “-”) 11613064643.88 16837220919.64
Others -37134026.30 -31749279.85
Net cash flows from operating activities 7635289020.71 4420911705.11
2. Significant investment and financing activities not
involving 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:
Ending balance of cash 26622889891.23 26050839165.01
Less: opening balance of cash 19391201104.68 23108018586.92
Add: ending balance of cash equivalents
Less: opening balance of cash equivalents
Net increase in cash and cash equivalents 7231688786.55 2942820578.09
(2) Composition of cash and cash equivalents
Unit: CNY
Item Ending balance Opening balance
I. Cash 26622889891.23 19391201104.68
II. Ending balance of cash and cash
equivalents 26622889891.23 19391201104.68
62. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: CNY
Foreign Currency
Item Balance at the End of the Exchange rate Ending Balance
Period Converted into CNY
Monetary capital 822780233.29
Including: USD 80621326.05 7.16 577135824.69
EUR 141719.29 8.40 1190782.16
HKD
Rand 494774227.90 0.40 199449322.92
184Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Shilling 16579444766.40 0.0027 45004303.52
Accounts receivable 461713776.43
Including: USD 31701802.20 7.18 227602914.60
EUR
HKD
USD 32322072.40 7.16 231380787.48
Shilling 1021142542.02 0.0027 2730074.35
Long-term loans
Including: USD
EUR
HKD
Prepayments 1777197.14
Including: USD 384.67 7.18 2761.93
USD 13245.34 7.16 94818.09
Shilling 663700340.25 0.0027 1774435.21
Other receivables 107170.72
Including: USD 1000.00 7.18 7180.00
Shilling 37400000.00 0.0027 99990.72
Accounts payable 740340648.44
Including: USD 102208784.46 7.18 733859032.52
USD 666353.00 7.16 4770154.59
Shilling 640145924.31 0.0027 1711461.33
Other description:
(2) 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
Recording
Unit Business place Registered Capital
currency
FAW Jiefang Austria R&D Co. Ltd. Steyr Austria EUR 2 million EUR
Tanzanian
Jiefang Motors Tanzania Ltd. Dar es Salaam Tanzania 220000 shillings
shilling
FAW Vehicle Manufacturing South South African
Johannesburg South Africa 624339531.00 Rand
Africa Co. Ltd. Rand
63. 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
Circumstances involving sale and leaseback transactions
185Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Unit: CNY
Item Amount Incurred in Current Period
Short-term lease expense 27858103.52
Low-value asset lease expense
Variable lease payments are not included in the measurement of lease
liabilities
Total 27858103.52
(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
Item Rental income variable lease payments not
included in the lease receipts
Rental income 2680952.34
Total 2680952.34
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
VIII. R&D Expenditures
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Including: Expensed R&D
expenditure 884897695.04 1135583276.97
Capitalized R&D
expenditure 116913852.20 113944595.36
1. R&D projects eligible for capitalization
Unit: CNY
Increase in the Current Decrease in the Current
Period Period
Transfer
Item Opening balance Internal red to Ending balance
development Other Recognized as current
expenditures s intangible assets profitsand
losses
A2205 23547997.18 9963042.15 33511039.33
186Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
A2206
A2207 41535297.80 11332963.49 52868261.29
A2208 30524736.25 8095151.50 38619887.75
A2209 32047370.79 32047370.79
A2305 39500208.40 16578387.62 56078596.02
A2306 47071931.70 5534396.13 49287149.29 3319178.54
A2307 62451369.97 5728271.43 68179641.40
A2308 46948645.47 12675576.95 59624222.42
L126 22108818.25 22108818.25
L2403 38408.37 3935175.98 3973584.35
L2405 228815.19 7773037.89 8001853.08
T2208 35117380.02 9370234.14 44487614.16
T2209 14557788.58 -5.80 14557782.78
T2303 1611856.86 1611856.86
T2402 778994.99 778994.99
XC2311120 8011745.85 8011745.85
XC2411020 7488163.90 7488163.90
XC2411030 7794198.22 7794198.22
XC2411098 12152129.50 600.00 12434914.16 -282184.66
XC2411107 2967534.05 2967534.05
Z2407 12299822.33 3128750.19 15428572.52
Z2408 9466942.22 116291.96 9583234.18
Z2409 9393773.35 380495.69 9774269.04
Z2431 2062589.02 2062589.02
Z2442 32424484.68 14971354.87 47395839.55
Z2443 411413.51 3026855.51 3438269.02
Z2444 132123.81 2240683.48 2372807.29
Total 500611951.24 116913852.20 87983705.47 529542097.97
Significant capitalized R&D projects
Expected
generation Time point of Specific basis
Item R&D progress Expected forcompletion time method of capitalizationeconomic starting capitalization
benefits starting
Being adopted
by
Product November 30 Production considerationA2207 validation 2026 and sales January 1 2023 and decision-making at the
project review
meeting
Being adopted
by
A2208 Product November 30 Production
consideration
validation 2026 and sales January 1 2023 and decision-making at the
project review
meeting
Being adopted
by
A2209 Trial production July 31 2025 Production
consideration
and sales January 1 2023 and decision-making at the
project review
meeting
187Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Being adopted
by
Product considerationA2308 validation June 1 2026
Production
and sales March 1 2023 and decision-making at the
project review
meeting
Being adopted
by
Production considerationA2306 Already SOP March 1 2025 and sales March 1 2023 and decision-making at the
project review
meeting
Being adopted
by
consideration
A2307 Product February 1 Productionvalidation 2026 and sales March 1 2023 and decision-making at the
project review
meeting
Being adopted
by
A2305 Product February 1 Production
consideration
validation 2026 and sales March 1 2023 and decision-making at the
project review
meeting
Being adopted
by
T2208 Product
consideration
validation April 30 2026
Production
and sales January 1 2023 and decision-making at the
project review
meeting
Being adopted
Validation on by
Z2442 public roads December 30 Production
consideration
initiated via 2025 and sales June 1 2024 and decision-
TR4 making at theproject review
meeting
Completed
validation of
engineering Being adopted
prototype by
Z2407 vehicles and December 31 Production
consideration
conducted two 2025 and sales February 1 2024 and decision-
rounds of trial making at the
assembly for project review
tooling meeting
prototypes.Being adopted
T2209 Trial production December 31 Production
by
2025 and sales January 1 2023 considerationand decision-
making at the
188Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
project review
meeting
Being adopted
Review of by
engineering Production considerationL126 prototype May 10 2026
fabrication and and sales
April 7 2026 and decision-
making at the
testing / TR5 project review
meeting
Being adopted
by
consideration
A2205 Productvalidation June 1 2027
Production
and sales December 1 2023 and decision-making at the
project review
meeting
IX. Equity in Other Entities
1. Equity in subsidiaries
(1) Composition of the enterprise group
Unit: CNY
Name of Principal Register
Share proportion
Registered Capital business ed Nature of Way ofsubsidiary Indireplace address business Direct acquisitionct
Business
FAW Jiefang Vehicle combinatio
Automotive 10803012510.01 Changch Changchun un manufacturi 100.00% n underCo. Ltd. ng common
control
FAW Jiefang Business
(Qingdao) Vehicle combinatio
Automotive 802000000.00 Qingdao Qingdao manufacturi 100.00% n under
Co. Ltd. ng and sales commoncontrol
FAW Jiefang Automotive Business
Dalian Diesel combinatio
Engine Co. 1400000000.00 Dalian Dalian
engine
manufacturi 100.00% n under
Ltd. ng commoncontrol
FAW Jiefang Manufacturi
Lvdong ng of Business
Recycling automotive combinatio
Technology 38094059.61 Wuxi Wuxi components 100.00% n under
(Wuxi) Co. and common
Ltd. accessories control
Technology BusinessFAW Jiefang combinatio
Austria R&D 15765000.00 Austria Austria research and 100.00% n under
Co. Ltd. development commoncontrol
FAW Jiefang
Automotive 200000000.00
Changch Changch Vehicle
un un sales 100.00%
Establishm
ent by
189Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Sales Co. investment
Ltd.FAW Jiefang
Uni-D Technical
Transportation services and Establishm
Technology 90000000.00 Tianjin Tianjin other 100.00% ent by
(Tianjin) Co. services investment
Ltd.Business
Jiefang combinatio
Motors 1654.00 Tanzania Tanzania Vehiclesales 100.00% n underTanzania Ltd. common
control
Business
FAW (Africa) combinatio
Investment 680000000.00 Changch Changch Vehicleun un sales 55.00% n underCo. Ltd. common
control
FAW Vehicle Business
Manufacturin South South Vehicle combinatio
g South Africa 466105291.49 Africa Africa manufacturi 98.00% n under
Co. Ltd. ng and sales commoncontrol
FAW Jiefang
Group Establishm
International 200000000.00 Changch Changch Vehicle
Automobile un un sales
100.00% ent by
investment
Co. Ltd.Description of the fact that the shareholding proportion in subsidiaries is different from the proportion of voting
rights: none
Basis for holding half or less of the voting rights but still controlling the investee and for holding more than
half of the voting rights but not controlling the investee: none
Basis for control of important structured entities included in the consolidation scope: none
Basis for determining whether the Company is an agent or a principal: none
Other description: none
2. Equities in joint ventures or associated enterprises
(1) Important joint ventures or associated enterprises
Share proportion Accounting
Treatment
Name of Joint Principal Method for
Ventures or Associated business Registered Nature of Investment
Enterprises place address business Direct Indirect in JointVentures or
Associated
Enterprises
Sanguard Automobile
Insurance Co. Ltd. Changchun Changchun
Financial
insurance 17.50%
Equity
method
FAW Changchun
Ansteel Jiefang Steel Industrial
Processing and Changchun Changchun manufacturin 40.00%
Equity
g methodDistribution Co. Ltd.
190Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
FAW Changchun
Baoyou Jiefang Steel Industrial Equity
Processing and Changchun Changchun manufacturin 21.81% method
Distribution Co. Ltd. g
Manufacturin
Changchun Wabco g of
Automotive Control Changchun Changchun automotive Equity
System Co. Ltd. components
40.00% method
and
accessories
Suzhou Zhito Research and
Technology Co. Ltd. Suzhou Suzhou experimental 25.68%
Equity
development method
FAW Jiefang Fujie Software and
(Tianjin) Technology Tianjin Tianjin information 10.00% Equity
Industry Co. Ltd. technology methodservices
Software and
SmartLink Nanjing Nanjing information 29.48% Equitytechnology method
services
Foshan Diyiyuansu Manufacturin
New Energy Foshan Foshan g and 45.00% Equity
Technology Co. Ltd. technical methodservices
Changchun
Automotive Test Changchun Changchun Technical Equity
Center Co. Ltd. services
14.64% method
Jiefang Times New Technical
Energy Technology Shijiazhuang Shijiazhuang services and 50.00% Equity
Co. Ltd. other services method
Engineering
Diyi AESC New and
Energy Power Wuxi Wuxi technology EquityTechnology (Wuxi) research and 49.00% method
Co. Ltd. experiment
development
Explanation of the fact that the shareholding proportion in joint ventures or associated enterprises is different
from the proportion of voting rights: there is no difference between the shareholding proportion and the
proportion of voting rights.Basis for holding less than 20% of voting rights but with significant influence or holding 20% or more of
voting rights but without significant influence: The Company holds 17.50% of the shares of Xin’an Automobile
Insurance Co. Ltd. and according to the Articles of Association of the Company the Company appoints
one director thereby exercising significant influence over Xin’an Automobile Insurance Co. Ltd. The
Company holds 10.00% of the shares of Jiefang Fujie (Tianjin) Technology Industry Co. Ltd. and according to
the Articles of Association of the Company the Company appoints three directors thereby exercising
significant influence over Jiefang Fujie (Tianjin) Technology Industry Co. Ltd. The Company holds 14.64% of
the shares of Changchun Automotive Test Center Co. Ltd. and according to the Articles of Association of the
Company the Company appoints one director thereby exercising significant influence over Changchun
Automotive Test Center Co. Ltd.
191Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
(2) Excess losses incurred by joint ventures or associated enterprises
Unit: CNY
Unrecognized Losses Unrecognized Losses in AccumulatedName of Joint Ventures Accumulated in Prior the Current Period (or Unrecognized Losses ator Associated Enterprises Periods Net Profit Shared in the the End of the CurrentCurrent Period) Period
Suzhou Zhito Technology
Co. Ltd. 181709441.21 -384069618.73 -202360177.52
SmartLink 19547758.40 -41661897.12 -22114138.72
Other description
X. 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
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 PreviousPeriod
Government subsidies 311937333.71 209501338.40
Other description:
Ⅺ. Risk Related to Financial Instruments
1. Various risks arising from financial instruments
(1) Risk management objectives and policies
The main financial instruments of the Company include monetary capital notes receivable accounts receivable
receivables financing other receivables non-current assets due within one year other current assets 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 risks related to these financial instruments and the risk management policies adopted by the
Company to reduce these risks are described below. The management of the Company manages and monitors
these risk exposures to ensure that the above risks are controlled within a limited range.
192Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
The Company carries out risk management to achieve an appropriate balance between risks and benefits
minimize the negative impact of risks on the Company’s business performance and maximize the interests of
shareholders and other equity investors. The Company based on the risk management objectives adopts the
basic risk management strategy of determining and analyzing various risks faced by the Company establishing
an appropriate baseline for risk tolerance and carrying out risk management and supervising various risks in a
timely and reliable manner to control the risks within a limited range.Main risks caused by financial instruments of the Company include credit risk liquidity risk and market risk
(including exchange rate risk and interest rate risk).* Credit risk
Credit risk refers to the risk of financial loss to the Company caused by the counterparty’s failure to perform its
contractual obligations.The Company manages credit risks by portfolio classification. Credit risk mainly arises from bank deposits
notes receivable accounts receivable other receivables long-term receivables etc.The Company’s deposits are mainly deposited in state-owned banks and other large and medium-sized listed
banks and First Automobile Finance Co. Ltd. and the Company does not expect significant credit risks in its
bank deposits.The Company makes relevant policies to control the credit risk exposure for notes receivable accounts
receivable other receivables and long-term receivables. The Company evaluates the credit qualification of
customers and sets the credit period based on their financial conditions credit records and other factors such as
current market situations. 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.The debtors of the Company’s accounts receivable are customers distributed in different industries and regions.The Company carries out continuous credit assessment on the financial condition of accounts receivable and
purchases credit guarantee insurance when appropriate.The maximum credit risk exposure borne by the Company is the book value of each financial asset in the
balance sheet. The Company does not provide any other guarantee that may expose the Company to credit risk.The accounts receivable of the top five customers account for 78.46% of the total accounts receivable of the
Company. Other receivables of the top five companies with debts account for 63.53% of the total other
receivables of the Company.* Liquidity risk
Liquidity risk refers to the risk of capital shortage when the Company performs its obligations of settlement by
delivering cash or other financial assets.The Company maintains and monitors cash and cash equivalents deemed adequate by the management during
liquidity risk management to meet the Company’s operating needs and reduce the impact of fluctuations in cash
flows. The management of the Company monitors the use of bank loans and ensures compliance with the loan
193Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
agreements. Meanwhile the Company obtains commitments from major financial institutions to provide
sufficient reserve funds to meet short-term and long-term funding needs.The sources of the Company’s working capital include funds generated from operating activities bank loans
and other loans. As of June 30 2025 the Company’s unused bank credit line amounted to CNY 14.442 billion.* Market risk
Market risk of financial instruments refers to the risk of fluctuation in fair value or future cash flow of financial
instruments due to the changes in market price including interest rate risk exchange rate risk and other price
risks.Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to
changes in market interest rates. Interest rate risk may arise from both recognized interest-bearing financial
instruments and unrecognized financial instruments.The risk of changes in cash flow of financial instruments caused by changes in interest rates of the Company is
mainly related to bank loans with floating interest rates. It is the policy of the Company to maintain floating
interest rates on these loans.Sensitivity analysis on interest rate risk:
The sensitivity analysis on interest rate risk is based on the assumption that changes in market interest rates
affect interest income or expenses on variable rate financial instruments.The Company had no interest-bearing debts such as bank loans as of June 30 2025.Exchange rate risk
Exchange rate risk refers to the risk of fluctuation in fair value or future cash flow of financial instruments due
to change in foreign exchange rate. Exchange rate risk may come from financial instruments denominated in a
foreign currency other than the recording currency.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 2025 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.
(2) Capital management
The Company prepares capital management policy to ensure continuous operation of the Company thus
providing returns to shareholders benefiting other stakeholders and maintaining the best capital structure to
reduce capital costs.
194Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
In order to maintain or adjust the capital structure the Company may adjust the financing method adjust the
amount of dividends paid to shareholders return capital to shareholders issue new shares and other equity
instruments or sell assets to reduce debt.The Company monitors the capital structure based on the asset-liability ratio (i.e. total liabilities divided by total
assets). As of June 30 2025 the Company’s asset-liability ratio is 66.80%.
2. Financial assets
(1) Classification of transfer methods
□Applicable□Not applicable
(2) Financial assets derecognized due to transfer
□Applicable□Not applicable
(3) Financial assets with continuous involvement in asset transfer
□Applicable□Not applicable
Other description
XII. 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 value
measurement measurement measurement Total
I. Ongoing fair
value measurement -- -- -- --
(I) Investment in
other equity 589630392.00 589630392.00
instruments
Total assets are
measured at fair
value on an ongoing 589630392.00 589630392.00
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
Quotations for the same assets or liabilities in active markets (unadjusted).
195Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
XIII. Related Parties and Related Transactions
1. Parent company of the Company
Shareholding
Proportion Proportion of
Name of Parent Registered Nature of Registered Capital of the Parent
Voting Rights of
Company address business Company in the Parent
the Company in the
Company Company
Production and
FAW Changchun sales of CNYautomobiles and 78000000000.00 62.19% 62.19%
parts
Description of the parent company of the Company
The ultimate controlling party of the Company is China FAW.Other description: The registered capital of the parent company has not changed during the reporting period.
2. Subsidiaries of the Company
For details of subsidiaries of the Company please refer to 1 in IX “Equity in Other Entities” of Section VIII -
Financial Report.
3. Information on joint ventures and associated enterprises of the CompanyFor details of important joint ventures or associated enterprises of the Company please refer to 2 in IX “Equityin 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
Associated enterprise of the Company the same
Sanguard Automobile Insurance Co. Ltd.ultimate controlling party
Associated enterprise of the Company the same
Changchun Automotive Test Center Co. Ltd.ultimate controlling party
FAW Changchun Ansteel Jiefang Steel Processing and
Associated enterprise of the Company
Distribution Co. Ltd.Changchun Wabco Automotive Control System Co.Associated enterprise of the Company
Ltd.Suzhou Zhito Technology Co. Ltd. Associated enterprise of the Company
FAW Changchun Baoyou Jiefang Steel Processing and
Associated enterprise of the Company
Distribution Co. Ltd.FAW Jiefang Fujie (Tianjin) Technology Industry Co.Associated enterprise of the Company
Ltd.SmartLink Associated enterprise of the Company
Foshan Diyiyuansu New Energy Technology Co. Ltd. Associated enterprise of the Company
Jiefang Times New Energy Technology Co. Ltd. Joint venture of the Company
196Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Diyi AESC New Energy Power Technology (Wuxi)
Associated enterprise of the Company
Co. Ltd.Other description
4. Information on other related parties
Relationship between Other Related Parties and the
Names Of Other Related Parties
Company
China FAW Group Import & Export Co. Ltd. The same ultimate controlling party
FAW Changchun Automobile Trading Service Co.The same ultimate controlling party
Ltd.Changchun FAW International Tendering Co. Ltd. The same ultimate controlling party
Changchun FAW International Logistics Co. Ltd. The same ultimate controlling party
Changchun Automotive Test Center Co. Ltd. The same ultimate controlling party
Changchun Chengxin Second-hand Vehicles
The same ultimate controlling party
Distribution Co. Ltd.FAWAsset Management Co. Ltd. The same ultimate controlling party
FAW Foundry Co. Ltd. The same ultimate controlling party
FAW Zhixing Technology (Nanjing) Co. Ltd. The same ultimate controlling party
FAW Logistics Co. Ltd. The same ultimate controlling party
FAW Logistics (Changchun Lushun) Storage and
The same ultimate controlling party
Transportation Co. Ltd.FAW Logistics (Qingdao) Co. Ltd. The same ultimate controlling party
FAW Logistics (Chengdu) Co. Ltd. The same ultimate controlling party
FAWMold Manufacturing Co. Ltd. The same ultimate controlling party
FAW-HONGTAYunnan Automobile Co. Ltd. The same ultimate controlling party
FAW Harbin Light-Automobile Co. Ltd. The same ultimate controlling party
FAW Equity Investment (Tianjin) Co. Ltd. The same ultimate controlling party
Changchun Faw Service Trade Co. Ltd. The same ultimate controlling party
FAW Forging (Jilin) Co. Ltd. The same ultimate controlling party
FAW Chuxing Technology Co. Ltd. The same ultimate controlling party
Faw (Dalian) Trade and Logistics Co. Ltd The same ultimate controlling party
FAW (Dalian) International Logistics Co. Ltd. The same ultimate controlling party
Wuxi Sawane Spring Co. Ltd. The same ultimate controlling party
Qiming Information Technology Co. Ltd. The same ultimate controlling party
Hainan Tropical Automobile Test Co. Ltd. The same ultimate controlling party
Dalian Qiming Haitong Information Technology Co.The same ultimate controlling party
Ltd.FAW Changchun Comprehensive Utilization Co. Ltd. Other related parties
FAW Changchun Yanfeng Visteon Electronics Co.Other related parties
Ltd.FAW Changchun Communication Technology Co.Other related parties
Ltd.
197Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
FAW Changchun Tianqi Process Equipment
Other related parties
Engineering Co. Ltd.Changchun FAW United Casting Company Other related parties
Changchun FAWAYAutomobile Components Co.Other related parties
Ltd.Changchun FAWSN Group Co. Ltd. Other related parties
Changchun Yidong Clutch Co. Ltd. Other related parties
Changchun Sodexo Management Service Co. Ltd. Other related parties
Changchun Automotive Economic and Technological
Development Zone Environmental Sanitation and Other related parties
Cleaning Co. Ltd.FAW Jilin Automobile Co. Ltd. Other related parties
Cinda FAW Commercial Factoring Co. Ltd. Other related parties
Wuxi CRRC New Energy Automobile Co. Ltd. Other related parties
Shandong Pengxiang Automobile Co. Ltd. Other related parties
China Unicom Intelligent Network Technology Co.Other related parties
Ltd.United Fuel Cell System R&D (Beijing) Co. Ltd. Other related parties
Jilin Checheng Garden Hotel Co. Ltd. Other related parties
The Ninth Institute of Project Planning & Research of
Other related parties
China Machinery Industry (FIPPR)
Hongqi Intelligent Mobility Technology (Beijing) Co.Other related parties
Ltd.Grammer Vehicle Parts (Harbin) Co. Ltd. Other related parties
Fulscience Automotive Electronics Co. Ltd. Other related parties
Fawer Auto Parts Co. Ltd. Other related parties
Dalian Qingfeng Bus Co. Ltd. Other related parties
Other description
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
Transa
Related Content ofRelated Amount Incurred in Approved
ction Amount Incurred in
Parties Transaction Current Period Transaction Amount
Amoun
t the Previous Period
Exceed
ed
The same Goods
ultimate purchase and 1007086334.07 4488830000.00 No 2247262739.64
controlling reception of
198Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
party labor services
Goods
Other related purchase and
parties reception of 2077962733.85 6310370000.00 No 2447132659.79
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 371845968.65 8566904736.28
Other related parties Sales of goods 1690043424.43 1299062853.31
Description of related transactions of purchasing or selling goods and providing or receiving labor 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
FAW Houses and Buildings 774875.72 774875.72
Fawer Auto Parts Co.Ltd. Houses and Buildings 197702.76 197702.76
FAW Changchun
Communication Land 149552.08 22018.35
Technology Co. Ltd.FAW Changchun Baoyou
Steel Processing and Workshop 1056155.96 1059049.54
Distribution Co. Ltd.Foshan Diyiyuansu New
Energy Technology Co. House 3251819.04 48441.12
Ltd.Shandong Pengxiang
Automobile Co. Ltd. Houses and Buildings 386020.18 386020.18
The Company as the lessee:
Unit: CNY
Rental
Expenses for Variable Lease
Simplified Payments not Interest Expense
Short-term Included in the on Lease Increased right-
leases and Low- Measurement Rent Paid
Na value asset of Lease
Liabilities of-use assets
Incurred
me Type of Leases (If Liabilities (If
of Leased Applicable) Applicable)
less Assets
or Amou Amou Amou Amou Amou Amount Amou Amount Amou Amou
nt nt nt nt nt Incurred nt Incurred nt nt
Incurr Incurr Incurr Incurr Incurr in the Incurr in the Incurr Incurr
ed in ed in ed in ed in ed in Previous ed in Previous ed in ed in
Curre the Curre the Curre Period Curre Period Curre the
nt Previo nt Previo nt nt nt Previo
199Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Period us Period us Period Period Period us
Period Period Period
Houses
FA and 3839917 112555.W Buildin .11 99
gs
Description of related leases
(3) Remuneration of key management personnel
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Remuneration of key management
personnel 3224900.00 5382500.00
(4) Other related transactions
Amount incurred in
Content of Related Amount incurred in the
Related Parties the current period
Transaction previous period (CNY)
(CNY)
First Automobile Finance Co. Ltd. Interest income 38106466.96 61055123.68
Intercompany
First Automobile Finance Co. Ltd. 99890000.00
borrowing
6. Receivables and payables of related parties
(1) Receivables
Unit: CNY
Ending balance Opening balance
Project Related
Name Parties Provision for Provision forBook balance Book balance
Bad Debts Bad Debts
The same
Accounts ultimate
6261478080.4033198902.815931949422.9123955716.02
receivable controlling
party
Accounts Other related
146418467.7211299142.3523955716.022563582.83
receivable parties
The same
Other ultimate
494440.03485.83158312368.691302.32
receivables controlling
party
Other Other related
22084.08353.351430554.50683119.63
receivables parties
Prepayments The same 5432571.38 49160771.58
200Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
ultimate
controlling
party
Other related
Prepayments 6991.16 269528.69
parties
(2) Payables
Unit: CNY
Project Name Related Parties Ending book balance Beginning Book Balance
The same ultimate
Accounts payable 1166377133.68 2138309238.04
controlling party
Accounts payable Other related parties 1297764861.06 684811924.54
The same ultimate
Other payables 32013725.53 243240628.69
controlling party
Other payables Other related parties 36698994.48 70246189.48
The same ultimate
Contract liabilities 1481223.00 38689941.81
controlling party
Contract liabilities Other related parties 992554.86 536223467.10
Accounts received in The same ultimate
38697399.31
advance controlling party
Accounts received in
Other related parties 36698994.48 335560.21
advance
The same ultimate
Lease liabilities 4058856.90
controlling party
XIV. Share-based Payment
1. General conditions of share-based payments
□Applicable□Not applicable
2. Equity-settled share-based payment
□Applicable □Not applicable
Unit: CNY
Restricted shares are determined according to the
Measures for determining the fair value of equity
instruments on the grant date closing price on the grant date and stock options are
determined according to the B-S option pricing model.Important parameters of fair value of equity
instruments on the grant date Quoted prices in active markets
The Company determines the number according to the
Basis for determining the number of exercisable Proposal on the Restricted Share Incentive Plan of
equity instruments FAW Jiefang Group Co. Ltd. (Draft) and Its
Summary the Proposal on the Regulations for the
201Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Implementation Assessment of Restricted Share
Incentive Plan of FAW Jiefang Group Co. Ltd. the
Proposal on the Regulations for Restricted Share
Incentive of FAW Jiefang Group Co. Ltd. and the
Proposal on Requesting the Shareholders’ Meeting to
Authorize the Board of Directors to Handle Matters
Related to the Company’s Restricted Share Incentive
Plan.Aggregate amount of equity-settled share-based
payment charged to the capital reserve 4993120.58
Total expenses recognized by equity-settled share-
based payment in the current period 17012.29
Other description
3. Cash-settled share-based payment
□Applicable□Not applicable
4. Share-based payment expenses in the current period
□Applicable □Not applicable
Unit: CNY
Grantee category Equity-settled share-based Cash-settled share-based paymentpayment expenses expenses
Manager 17012.29
Total 17012.29
Other description
XV. Commitments and Contingencies
1. Important commitments
Important commitments existing on the balance sheet date
2. Contingencies
(1) Important contingencies existing on the balance sheet date
Contingent liabilities arising from pending litigation and arbitration and their financial impact
Cause of Court of Subject Amount
Plaintiff Defendant Case Progress
Action Acceptance (CNY)
FAW Jiefang Automotive Co.Zhao Liangxi
Ltd. Suihua Jinhai Chao Product Beilin District
Guangdong Xian Yida
Automobile Sales Co. Ltd. liability People’s Court of 2243964.00 Second instance
Cold Chain Logistics
PICC Property and Casualty dispute Suihua City
Co. Ltd. Henan Branch
Company Limited Suihua
202Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Branch
Jilin Anrui Lifting
Gaobeidian
Zhao Qianqian Yu Transportation Co. Ltd. Product
Municipal People’s
Xiufeng Li Shunxi Li Shandong Yongseng Rubber liability 1289951.00 First instance
Court of Hebei
Mengyuan Group Co. Ltd. and China FAW dispute
Province
Group Co. Ltd.Wuxi Dongkai Automobile
Trading Co. Ltd. Wuxi Product Huishan District
Wuxi Leming
Zhongbang Jiefang Automobile liability People’s Court of 1080000.00 First instance
Transport Co. Ltd.Sales & Service Co. Ltd. and dispute Wuxi City
China FAW Group Corporation
FAW Jiefang (Qingdao) Qilin District
Zhuang Qixian Yang Automotive Co. Ltd. FAW- Labor People’s Court of
1006099.00 First instance
Xiao Yang Yu HONGTAYunnan Automobile dispute Qujing City
Co. Ltd. Yunnan Province
As of June 30 2025 the Company has no contingencies other than those mentioned above that should be
disclosed.
(2) Explanation is also required when the Company has no important contingencies to be disclosed
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 Ending balance Opening balance
Dividends receivable 156960226.90
Other receivables 6553832963.97 6314003121.96
Total 6553832963.97 6470963348.86
(1) Dividends receivable
1) Classification of dividends receivable
Unit: CNY
Item (or Investee) Ending balance Opening balance
First Automobile Finance Co. Ltd. 156960226.90
Total 156960226.90
203Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
(2) Other receivables
1) Classification of other receivables by nature
Unit: CNY
Nature Ending book balance Beginning Book Balance
Current account 6553957675.97 6314127833.96
Total 6553957675.97 6314127833.96
2) Disclosure by aging
Unit: CNY
Aging Ending book balance Beginning Book Balance
Within 1 year (including 1 year) 6553498669.71 6313668827.70
Over 3 years 459006.26 459006.26
3-4 years 459006.26 459006.26
Total 6553957675.97 6314127833.96
204Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
3) Disclosure by the method of provision for bad debts
Unit: CNY
Ending balance Opening balance
Book balance Provision for Bad Debts Book balance Provision for Bad Debts
Category Provision Book Value Provision Book Value
Amount Scale Amount proportio Amount Scale Amount
proportion
n
Including:
Provision for
bad debts 124712.0
6553957675.97100.00%124712.000.00%6553832963.976314127833.96100.00%0.00%6314003121.96
made by 0
portfolio
Including:
Aging 124712.0
6553957675.97100.00%124712.000.00%6553832963.976314127833.96100.00%0.00%6314003121.96
portfolio 0
124712.0
Total 6553957675.97 100.00% 124712.00 0.00% 6553832963.97 6314127833.96 100.00% 0.00% 6314003121.96
0
205Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Provision for bad debts by portfolio category
Unit: CNY
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Provision for bad debts
made by portfolio 6553957675.97 124712.00 0.00%
Total 6553957675.97 124712.00
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses:
Unit: CNY
Stage I Stage II Stage III
Provision for Bad Expected Credit Expected credit loss Expected credit loss
Debts Losses for the Next in the duration for the entire
Total
12 Months (credit impairment duration (withhas not occurred) credit impairment)
Balance as of
January 01 2025 124712.00 124712.00
Balance on January
1 2025 in the
current period
Balance as of June
302025124712.00124712.00
Basis for stage classification and bad debt provision rates: Stage II provisions are based on aging with a
provision ratio of 0.00% for 3 to 4 years. 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
Name of Unit Nature of
Ending Balance
Payment Ending balance Aging
total ending
balance of other of Provision for
receivables Bad Debts
FAW Jiefang
Automotive Current
Co. Ltd. account
6553498669.71 Within 1 year 99.99%
Changchun
Committee of
Municipal and Current
Rural account
459006.26 3-4 years 0.01% 124712.00
Construction
Total 6553957675.97 100.00% 124712.00
206Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
2. Long-term equity investment
Unit: CNY
Ending balance Opening balance
Item
Book balance ImpairmentProvision Book Value Book balance
Impairment
Provision Book Value
Investment in subsidiaries 21611015169.73 21611015169.73 21611015169.73 21611015169.73
Investment in associated
188210129.22188210129.22184102155.37184102155.37
enterprises and joint ventures
Total 21799225298.95 21799225298.95 21795117325.10 21795117325.10
(1) Investment in subsidiaries
Unit: CNY
Ending
Ending balance (book balance of
Opening Increase/Decrease in the current period value) impairmen
Investee Opening balance balance of t provision(book value) impairment
provision Additional Reduced
Investmen Investmen ImpairmentProvision Otherst t
FAW Jiefang Automotive Co. Ltd. 21081923036.51 21081923036.51
FAW (Africa) Investment Co. Ltd. 329092133.22 329092133.22
FAW Jiefang Group International
200000000.00200000000.00
Automobile Co. Ltd.Total 21611015169.73 21611015169.73
(2) Investment in associated enterprises and joint ventures
Unit: CNY
Open Increase/Decrease in the current period Endin
ing g
Opening balance balan Addit Redu Investment Adjustment to Chan CashInvestor Impairme Ending balance balan(book value) ce of ional ced gains or losses other ges in dividends Othe (book value) ce of
impai Inves Inves recognized comprehensive other
nt
and rs impai
rment tment tment under the income equity
Provision
profits rment
207Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
provi equity method are provi
sion declared sion
to be paid
I. Joint ventures
II. Associated enterprises
Sanguard
Automobile 184102155.37 2203459.15 1904514.70 188210129.22
Insurance Co. Ltd.Subtotal 184102155.37 2203459.15 1904514.70 188210129.22
Total 184102155.37 2203459.15 1904514.70 188210129.22
208Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
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
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Long-term equity investment
income calculated with cost 353500000.00
method
Income from long-term equity
investments accounted for using 2203459.15 194893139.83
the equity method
Total 2203459.15 548393139.83
XVII. Supplementary Information
1. Breakdown of non-recurring profit or loss of current period
□Applicable □Not applicable
Unit: CNY
Item Amount Description
Profits or losses on disposal of non- 154614688.74 It refers to the net gain on disposalcurrent assets 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 311937333.71
line with the specified standards and
having a continuous impact on the profit
or loss of the Company)
Reversal of impairment provision for The reversal of impairment
receivables subject to separate 1802060.86 provision for receivables subject to
impairment test separate impairment test.Non-operating income and expenses The net non-operating income and
other than the above 9661615.9 8 expenses.Less: amount affected by income tax 81725953.01
Amount affected by minority
shareholder’s equity (after-tax) -3703.29
Total 396293449.57 --
Specific conditions of other profit and loss items meeting the definition of non-recurring profit and loss:
209Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
□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
Earnings per Share
Profit for the Reporting Weighted average return
Period on equity Basic earnings per Share Diluted earnings per
(CNY/share) Share (CNY/share)
Net profit attributable to
ordinary shareholders of 0.08% 0.0040 0.0040
the Company
Net profit attributable to
ordinary shareholders of
the Company after -1.44% -0.08 -0.08
deduction of non-
recurring profit and loss
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and net assets in the financial report disclosed simultaneously according to
the international accounting standards and China accounting standards
□Applicable□Not applicable
(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
(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.
4. Others
210Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Section IX Other Submitted Data
I. Other Significant Social Safety Issues
Whether the listed company and its subsidiaries have other significant social safety issues
□Yes□No □Not applicable
Whether the Company was subject to administrative penalties during the reporting period
□Yes□No □Not applicable
II. Reception Investigation Communication Interview and OtherActivities in the
Reporting Period Registration Form
□Applicable □Not applicable
Main
Index of
Contents of
Type of Basic
Reception Reception Reception Discussion
Receptio Reception Object Information
Time Location Mode and
n Object of
Information
Investigation
Provided
Operation
and
ChinaAMC development
Huatai Securities planning of
January 8 Meeting room Field Organiza
PSBC Huashang the
2025 of the Company Research tion
Fund PICC Company no
Penghua Fund relevant
http://www.c
information
ninfo.com.cn
is provided
/new/disclosu
Jt Asset
re/stockstoc
Management Co.kCode=0008
Ltd. China Life Operation
00&orgId=gs
Pension Company and
sz0000800&s
Limited. Jilin development
jstsBond=fals
Changbai planning of
March 31 Beijing meeting Field e#research
Others Mountain Private the
2025 room Research
Fund Management Company no
Co. Ltd. relevant
SHANGHAI information
KANDAO is provided
ASSETS
MANAGEMENT
211Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
Northeast
Securities Co.Ltd. Soochow
Securities Co.Ltd. Dongxing
Securities
Corporation
Limited Nanjing
Guohai Auto Parts
Co. Ltd. Sinolink
Securities Co.Ltd. Haitong
Securities Co.Ltd. Hengtai
Securities
Co.Ltd. Huaan
Securities Co.Ltd. Huachuang
Securities
Co.Ltd. Huatai
Securities Co.Ltd. Lianchu
Securities Co.Ltd. Western
Securities Co.Ltd. Southwest
Securities Co.Ltd. China
International
Capital
Corporation
Limited (CICC)
China Securities
Co. Ltd. and
CITIC Securities
Company Limited
Operation
P5w Net
Investors and“Investor Networkparticipating in development
Relations platform for
April 14 FAW Jiefang 2024 planning of
Interactive online Others
2025 Annual thePlatform” communicati
Performance Company no
（https://ir.p5w. onPresentation relevantnet）
information
212Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
is provided
Operation
Investors
P5w Net and
participating in the“Investor Network developmentOnline Collective
Relations platform for planning of
May 27 Performance
Interactive online Others the
2025 Presentation ofPlatform” communicati Company no
Listed Companies
（https://ir.p5w. on relevantwithin thenet） information
Jurisdiction of Jilin
is provided
III. Funds Transactions Between the Listed Company and Its Controlling Shareholders and
Other Related Parties
□Applicable □Not applicable
Unit: CNY 10000
Amount Amount of
Name Nature Opening Incurred in the repayments in Ending Interest Interestbalance reporting the reporting balance income expense
period period
First Automobile Operating
Finance Co. Ltd. transactions 902833.53 21079340.23 21108746.87 877237.54 3810.65
China FAW
Group Import & Operatingtransactions 587007.00 44939.48 9854.24 622092.24Export Co. Ltd.FAW-HONGTA
Yunnan Operating
Automobile Co. transactions 4317.00 4317.00
Ltd.FAWMold
Manufacturing Operating 3848.78 3848.78
Co. Ltd. transactions
China FAW Operating
Group Co. Ltd. transactions 1869.00 1869.00
FAWAsset
Management Co. Operatingtransactions 553.55 504.80 48.75Ltd.FAW Harbin
Light- Operating
Automobile Co. transactions 528.04 460.32 67.72
Ltd.FAW Logistics Operating
Co. Ltd. transactions 71.91 23.33 48.58
Qiming
Information Operating
Technology Co. transactions 26.67 23.67 3.00
Ltd.China FAW Co. Operating
Ltd. transactions 21.51 1.12 20.39
FAW Forging Operating
(Jilin) Co. Ltd. transactions 2.58 44.29 2.58 44.29
FAW Logistics Operating 0.21 0.03 0.18
213Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co. Ltd.
(Changchun transactions
Lushun) Storage
and
Transportation
Co. Ltd.Hainan Tropical
Automobile Test Operating
Co. Ltd. transactions
2.502.50
Sanguard
Automobile Operating
Insurance Co. transactions 1.84 1.84
Ltd.Changchun
Automotive Test Operating
Center Co. Ltd. transactions
93.3693.36
FAW Equity
Investment Operating
(Tianjin) Co. transactions 0.68 0.68
Ltd.Total -- 1501079.78 21124422.38 21125334.74 1503978.07 3810.65
214
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