Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.FAW JIEFANG GROUP CO. LTD
Annual Report 2024
March 2025
1Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Chairman’s Address
2024 marks the 75th anniversary of the founding of the
People's Republic of China and represents a critical year in the
implementation of the 14th Five-Year Plan. FAW Jiefang has
thoroughly implemented the guiding principles from the 20th
National Congress of the CPC and the Second and Third
Plenary Sessions of the 20th Central Committee. Despite facing
multiple challenges including weak demand in the commercial
truck industry and profound market restructuring our entire
workforce has confronted these difficulties head-on persevered
through hardships performed under pressure and continued to
forge ahead. We have overcome numerous obstacles achieved
remarkable results and made breakthrough progress despite
Chairman and CPC Secretary
adverse market conditions.of FAW Jiefang
Li Sheng
Boldly confronting markets winning in retail sectors and reinforcing our industry-leading
position. With extraordinary determination exceptional measures and remarkable effort we
achieved annual vehicle sales of 251.1 thousand units representing a 3.90% year-on-year increase.Our medium and heavy truck sales reached 214 thousand units with a market share of 26.60%
maintaining our position as China's market leader for nine consecutive years. In overseas markets
despite downturns in key regions we exported 57 thousand vehicles - a 27.40% year-on-year increase
- achieving record-high sales with the industry's fastest growth rate. Our new energy vehicle segment
capitalized on market opportunities with sales of 15.9 thousand units growing by 121% and setting
a new record with the highest growth rate among premium brands. Our brand value has reached
131.845 billion yuan ranking first in the industry for 13 consecutive years. We've also earned the
honorary title of "National Responsibility Bearer" showcasing Jiefang's leadership as the flagship of
China's automotive industry.Accelerating transformation driving reform and building lasting business strength. We
2Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
have diligently promoted and implemented the principles from the Third Plenary Session of the 20th
CPC Central Committee and conducted thorough Party discipline education. Our efforts earned
recognition from China FAW as a "Pioneer Party Building Red List Unit" and "Merit Competition
Outstanding Unit." We have deeply implemented state-owned enterprise reform initiatives completed
the integration of manufacturing and operations officially established Jiefang International and
launched our "SPRINT2030" internationalization strategy. We've also revitalized our aftermarket
services and UNID operations. Our quality management systems have matured significantly supply
chain capabilities have substantially improved and incentive mechanisms have been further
optimized. In 2024 FAW Jiefang completed a 2-billion-yuan targeted share issuance while
maintaining an industry-leading market capitalization. We were invited to share our reform
achievements with the State-owned Assets Supervision and Administration Commission with our
practices highlighted in the Commission's official briefings. Additionally we received an A-level
evaluation for information disclosure from the Shenzhen Stock Exchange for the fourth consecutive
year.Self-reliance and innovation: building core competitive advantages. We have strengthened
our technological research and development with several innovative breakthroughs: completing the
Qingdao Commercial Vehicle R&D Center on schedule; establishing the Pioneering and Leading
Lantu Joint Research Center with Shell China; unveiling the industry-first "Xingyi" hydrogen engine
and liquid hydrogen fuel cell tractor; launching production at our 6DV engine super factory;
introducing China's first in-cylinder direct injection hydrogen engine for heavy commercial vehicles;
achieving new milestones in digital transformation; receiving national awards for our V2X cloud
platform; having our J7 intelligent factory recognized among the first "Excellence-level Intelligent
Factories" by the Ministry of Industry and Information Technology; launching over 150 new products
including the J7 Pioneering and Leading Version Edition; and achieving breakthroughs in more than
100 key technologies.
Reducing logistics costs and carbon emissions: setting new standards in green
manufacturing. Guided by green development principles we have firmly implemented our "15333"
new energy strategy and accelerated upgrades to our new energy products. We've continuously
improved fuel efficiency technologies reducing average fuel consumption by 1.50 liters per 100
kilometers. This has helped users save over 300 million liters of fuel annually substantially reducing
3Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
societal logistics costs and saving users over 50 thousand yuan per vehicle annually. We've
aggressively pursued carbon reduction throughout our operations implementing 31 megawatts of
photovoltaic power generation and trading 50.8 million kilowatt-hours of green electricity reducing
carbon emissions by 50 thousand tons.Unified efforts and strategic collaboration: achieving mutual benefits with partners. We've
established cooperative agreements with Jiuzhou Hengchang Logistics Co. Ltd. Mahle Farasis
Energy Dalian New Energy Industry and other partners. Through our global partner conference
we've continued to build momentum around "co-creation co-progress co-winning and co-sharing."
We've actively implemented our "double care" culture effectively executing our "7+100" key
initiatives and resolving 173 urgent employee concerns. In 2024 FAW Jiefang was recognized as a
"National Advanced Collective in Creating Harmonious Labor Relations.Fulfilling our responsibilities leading with compassion and deepening our commitment to
public service. We have consistently upheld our principle of "Harmonious Development of People
Vehicles and Society." Through our "Jiefang Cares" public welfare initiative we have focused on
trucker support programs educational advancement environmental protection and rural
revitalization. Partnering with 20 suppliers we launched the "Truck Driver Support Project"
providing assistance to 189 truckers in need and recognizing five exemplary drivers this year. These
efforts continue to strengthen our reputation as a national brand characterized by compassion and
social responsibility. In 2024 FAW Jiefang was listed in CCTV's "China ESG Listed Company
Pioneer 100" for the second consecutive year selected for the State-owned Assets Supervision and
Administration Commission's "Top Ten ESG Cases among Central Enterprise Listed Companies"
included in the "2024 Outstanding ESG Cases of Chinese Enterprises" named "2023 China Employee
Public Welfare Enterprise of the Year" and our "Jiefang Cares Truck Driver Support Project" was
recognized as the Public Welfare Project of the Year by the "Warm Journey Truck Driver Career
Development and Security Initiative."
Like gold that emerges only after countless refinements excellence requires persistent effort. In
2025 FAW Jiefang will continue to be guided by Xi Jinping Thought on Socialism with Chinese
Characteristics for a New Era maintaining our strategic focus and leadership confidence. Working
together with unwavering determination we will achieve new breakthroughs growth and milestones.We remain firmly committed to our strategic goal of being "China's First World-Class" to
4Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
technological and product leadership that drives market dominance to deepening reforms to
commercial success and to cultural and talent development. We will dedicate our full efforts to
winning the final phase of the 14th Five-Year Plan advancing powerfully toward our goal of
becoming a world-class enterprise and striving to write a new chapter in our century-long journey of
excellence!
5Full Text of 2024 Report 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 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 accounting and Fan Chao 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 annual report.All directors were present at the meeting of the Board of Directors at which
this report was considered.This annual report includes prospective statements such as future plans
and does not constitute a substantial commitment of the Company to investors.Investors and relevant persons should maintain sufficient risk awareness of this
and understand the differences between plans forecasts and commitments.The Company has described in detail the possible risks and
countermeasures for its future development in the section of Management
Discussion and Analysis. Investors are kindly requested to pay attention to
relevant content. China Securities Journal Securities Times and CNINFO
(http://www.cninfo.com.cn) are the information disclosure media selected by the
Company. All information about the Company is subject to being published in
6Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
the above-selected media. Investors are kindly requested to pay attention to
investment risks.The profit distribution plan approved by the Board of Directors of the
Company is as follows: Based on the 4922371176 shares of the Company a cash
dividend of 0.5 yuan (tax inclusive) will be distributed to all shareholders for every
10 shares they hold. Additionally no bonus shares (tax inclusive) will be
distributed. The Company does not convert reserves into share capital.
7Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Table of Contents
Section I Important Notes Contents and Definitions... 6
Section II Company Profile and Main Financial Indi.. 12
Section III Management Discussion and Analysis ..... 22
Section IV Corporate Governance .................... 77
Section V Environmental and Social Responsibilitie. 132
Section VI Important Matters ...................... 146
Section VII Changes in Shares and Shareholders .... 175
Section VIII Preferred Shares ..................... 195
Section IX Bonds................................... 196
Section X Financial Report ........................ 197
8Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
List of Documents for Future Reference
1. Financial statements 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).
2. The original Auditor's Report sealed by Certified Public Accountants LLP and
sealed and signed by CPAs.
3. Originals of all company documents and announcements publicly disclosed on
the website designated by China Securities Regulatory Commission in the reporting
period.
9Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Interpretation
Item Refers to Definition
Company the Company
Refers to FAW JIEFANG GROUP CO. LTD
FAW Jiefang
Jiefang Limited Refers to FAW Jiefang Automotive Co. Ltd.Jiefang Group FAW Jiefang Group International Automobile
Refers to
International Co. Ltd.Tanzania Ltd. Refers to Jiefang Motors Tanzania Ltd.FAW 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.Harbin Light Company Refers to FAW Harbin Light-Automobile Co. Ltd.FAW-HONGTA Refers to FAW-HONGTA Yunnan Automobile Co. Ltd.Board of Directors of FAW JIEFANG GROUP
Board of Directors Refers to
CO. LTD.Shareholders' Meeting of FAW JIEFANG
Shareholders' meeting Refers to
GROUP CO. LTD.Board of Supervisors of FAW JIEFANG
Board of Supervisors Refers to
GROUP CO. LTD.State-owned Assets Supervision and
SASAC Refers to Administration Commission of the State
Council
Ministry of Finance of the People's Republic of
Ministry of Finance Refers to
China
China Securities China Securities Regulatory Commission
Refers to
Regulatory Commission (CSRC)
SZSE Refers to Shenzhen Stock Exchange
China Securities Shenzhen Branch China Securities Depository
Refers to
Depository and Clearing and Clearing Corporation Limited
10Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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
Articles of Association Refers to
GROUP CO. LTD.Reporting Period Refers to January 1 2024-December 31 2024
CNY CNY 10 thousand
Refers to CNY CNY 10 thousand CNY 100 million
CNY 100 million
11Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Section II Company Profile and Main Financial Indicators
I. Company Information
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
No.2259 Dongfeng Street Changchun Automobile Development Zone
Registered address
Jilin Province
Zip code of the
130011
registered address
In 2020 the Company carried out major asset restructuring and the
History of changes in registered address was changed from No.4888 Weishan Road High-tech
the registered address Industrial Development Zone Changchun City Jilin Province to No.2259
of the Company Dongfeng Street Automobile Development Zone Changchun City Jilin
Province.No.2259 Dongfeng Street Changchun Automobile Development Zone
Office address
Jilin Province
Postal code of office
address of the 130011
Company
Company Website www.fawjiefang.com.cn
E-mail faw0800@fawjiefang.com.cn
II. Contact Person and Contact Information
Secretary of the Board of Directors Securities Affairs Representative
Name Wang Jianxun Yang Yuxin
12Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
No.2259 Dongfeng Street Changchun No.2259 Dongfeng Street Changchun
Address Automobile Development Zone Jilin Automobile Development Zone Jilin
Province 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. Information Disclosure and Keeping Location
Website of the stock exchange disclosing the
http://www.szse.cn
annual report of the Company
Name and website of the media disclosing the Securities Times China Securities Journal and
annual report of the Company CNINFO (http://www.cninfo.com.cn)
Keeping the location of the Annual Report of
FAW Capital Operation Department
the Company
IV. Changes in Registration
Unified Social Credit Code 91220101244976413E
In 2020 the Company completed major asset restructuring and
Changes in main business
changed its main business from research development
since the Company went
production and sales of passenger cars to research development
public
production and sales of commercial vehicles.
1. In June 2011 FAW the original controlling shareholder of the
Company carried out major business restructuring and founded
China FAW Co. Ltd. as the main sponsor in order to improve the
corporate governance structure and establish a modern enterprise
system. FAW transferred all its shares from the Company into
FAW and the two parties completed the equity registration and
transfer procedures in April 2012. After the equity transfer the
total share capital of the Company did not change and remained at
Changes in controlling
1627500000 shares. FAW Car Co. Ltd. holds 862983689
shareholders in the past
shares of the Company accounting for 53.03% of the total shares
and is the controlling shareholder of the Company. The actual
controller does not change and is still the SASAC.
2. In March 2020 the China Securities Regulatory Commission
approved a major asset restructuring project of the Company. The
Company issued 2982166212 shares directly to FAW to pay the
price difference for the major asset restructuring. After the
issuance the total share capital of the Company increased to
13Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
4609666212 shares. FAW Car Co. Ltd. holds 3845149901
shares of the Company accounting for 83.41% of the total shares
and is the controlling shareholder of the Company. The Company's
actual controller is still SASAC.V. Other relevant data
Accounting firm hired by the Company
Grant Thornton Certified Public Accountants
Name of Accounting Firm
(Special General Partnership)
Scitech Place No.22 Jianguomenwai Avenue
Office address of the accounting firm
Chaoyang District Beijing China
Name of the accountants Wu Songlin Yang Dongmin
Sponsor institution employed by the Company to perform continuous supervision duties in the
reporting period
□Applicable □Not applicable
Name of Sponsor Office Address of Sponsor Name of Sponsor Continuous Supervision
Institution Institution Representative Period
China 27th and 28th Floor China
International World Office 2 No.1
Chen Yiliang Luo October 21 2024 -
Capital Jianguomenwai Avenue
Wei December 31 2025
Corporation Chaoyang District
Limited Beijing P.R. China
Financial consultant employed by the Company to perform continuous supervision duties in the
reporting period
□Applicable □Not applicable
14Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
VI. 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 or
decrease
2023 compared to 2022
2024 that of last
year
After
Before adjustment After adjustment Before adjustment After adjustment
adjustment
Operating income (Yuan) 58581106258.53 63904532477.03 64324640770.64 -8.93% 38331747083.88 38331747083.88
Net profit attributable to
shareholders of the listed 622427699.65 763024957.14 806096685.30 -22.78% 367745445.34 384380109.64
company (Yuan)
Net profit attributable to
shareholders of the listed
company after deducting -570328153.34 -83315836.30 -83315836.30 -584.54% -1714242885.11 -1714242885.11
non-recurring profits and
losses (Yuan)
Net cash flows from
operating activities -5850286307.05 4201717721.52 4089673393.78 -243.05% -5135243969.35 -4860506373.42
(Yuan)
Basic earnings per share
0.12660.16510.1805-29.86%0.07350.0804
(Yuan/share)
Diluted earnings per
0.12660.16510.1805-29.86%0.07350.0804
share (Yuan/share)
15Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Weighted average return Reduced by
2.45%3.16%3.44%1.50%1.60%
on equity 0.99%
Increase or
decrease
compared
End of 2023 End of 2022
with that at
End of 2024 the end of
last year
After
Before adjustment After adjustment Before adjustment After adjustment
adjustment
Total assets (Yuan) 72749219016.61 65873387927.31 68085842451.70 6.85% 56772860616.12 58747700876.72
Net assets attributable to
shareholders of the listed 26317926062.66 24486759369.40 24801954142.49 6.11% 23719427082.48 24211027324.01
company (Yuan)
16Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
The lower net profit of the Company before or after the deduction of non-recurring profits and
losses in the last three fiscal years is negative and the audit report of the most recent year shows
that the going-concern ability of the Company is uncertain
□Yes □No
The lower net profit before or after the deduction of non-recurring gains and losses is negative.□Yes □No
Item 2024 2023 Remarks
Sales revenue of
complete vehicles
parts and
Operating income (Yuan) 58581106258.53 64324640770.64 components
materials purchased
semi-finished
products etc.Lease income and
revenue of
subsidiaries from the
beginning of the
Deducted amount of
356109842.75 431418385.07 period to the
operating income (Yuan)
combination date in
business
combinations under
common control
Excluding lease
income and revenue
of subsidiaries from
the beginning of the
Amount after the deduction
58224996415.78 63893222385.57 period to the
of operating income (Yuan)
combination date in
business
combinations under
common control
VII. 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 Chinese 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 international accounting standards and Chinese accounting
17Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
standards.
2. Differences in net profits and net assets in the financial report disclosed simultaneously
according to foreign accounting standards and Chinese 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 Chinese accounting
standards.VIII. Seasonal Main Financial Indicators
Unit: Yuan
Q1 Q2 Q3 Q4
Operating
18980934940.5516621357698.919533068473.7113445745145.36
income
Net profit
attributable to
shareholders 169293702.32 308958168.18 -114603071.01 258778900.16
of the listed
company
Net profit
attributable to
shareholders
of the listed
company
103572008.08180303815.87-218358844.24-635845133.05
after
deducting
non-recurring
profits and
losses
Net cash
flows from
969975500.483270954555.14-6206332605.40-3884883757.27
operating
activities
Is there any significant difference between the above financial indicators or the sum and the
financial indicators in the quarterly and semi-annual financial reports disclosed by the Company
18Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
□Yes □No
IX. Items and Amounts of Non-recurring Profit and Loss
□Applicable □Not applicable
Unit: Yuan
Item Amount in 2024 Amount in 2023 Amount in 2022 Description
Profits or losses
on disposal of
non-current
It refers to the net
assets (including
-2556987.30 192669498.68 871031108.06 gain on disposal of
the write-off part
non-current assets.of the provision
for impairment of
assets made)
Government
subsidies
included in the
current profit or
loss (except those
closely related to
the Company's
normal
operations
conforming to
the State policies 618258791.46 546340041.28 1635846930.83
and regulations
and enjoyed in
line with the
specified
standards and
having a
continuous
impact on the
profit or loss of
the Company)
Reversal of
The reversal of
impairment
impairment
provision for
provision for
receivables 65749100.00 9205923.40 15110580.89
receivables is subject
subject to
to a separate
separate
impairment test.impairment test
Net current profit 132844483.67 65274736.52 37296410.99 The current net profit
19Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
and loss of the and loss of the
subsidiary subsidiary were
acquired in acquired in a
business business
combination combination
involving entities involving entities
under common under common
control from the control from the
beginning of the beginning of the
period to the period to the
combination date combination date.Trustee fee
earned from
864779.87
entrusted
management
Non-operating
The net non-
income and
76695007.35 173374447.46 127429456.42 operating income and
expenses other
expenses.than the above
Other losses and
profits
conforming to Other non-recurring
469265324.69100996378.33
the definition of profits and losses.non-recurring
profit and loss
Less: amount
affected by 130656414.24 176245495.71 568294525.62
income tax
Amount
affected by
minority 36843452.64 22203008.36 20661746.69
shareholder's
equity (after-tax)
Total 1192755852.99 889412521.60 2098622994.75 --
Specific conditions of other profit and loss items meeting the definition of non-recurring profit and
loss:
□Applicable □Not applicable
There is no specific conditions of profit and loss items meeting the definition of non-recurring profit
and loss for the Company.Explanation on defining the non-recurring profit and loss items listed in the Explanatory
20Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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.
21Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Section III Management Discussion and Analysis
The Company strictly complies with the information disclosure requirements for listed
companies and discloses information in accordance with the automotive manufacturing industry
disclosure requirements specified in the "No.3 Guideline of Shenzhen Stock Exchange on Self-
Regulatory Supervision of Listed Companies - Industry Information Disclosure."
I. Industry of the Company in the Reporting Period
In 2024 the macroeconomic environment remained in a recovery period with annual GDP
growth reaching 5.0% meeting the expected target. However domestic demand remained weak
consumption lacked sufficient support and investment continued at low levels. While exports showed
growth the economy displayed a clear pattern of external strength and internal weakness operating
at subdued levels with limited market stimulus. Highway freight and construction demand continued
to decline with the logistics industry downturn further negatively impacting the commercial vehicle
market. Effects from previously front-loaded demand led to persistent transport capacity surplus
while freight rates remained depressed further squeezing vehicle owners' profit margins. Overall
market conditions showed no significant improvement.According to statistics from the China Association of Automobile Manufacturers (CAAM) the
production output and sales volume of commercial vehicles in 2024 were 3.805 million and 3.873
million units representing year-on-year decreases of 5.8% and 3.9% respectively. Annual demand
for medium and heavy-duty trucks reached 1.03 million units up by 1.1% year on year. FAW Jiefang's
medium and heavy-duty truck sales reached 214 thousand units increasing 4.3% year-on-year while
market share rose to 20.9% a gain of 0.7 percentage points. Despite overall market demand falling
below expectations the Company achieved steady growth in both sales volume and market share.
22Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Monthly Sales Volume of Commercial Vehicles
(10 thousand vehicles)
50
40
30
20
10
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
202220232024
Monthly commercial vehicle sales and growth rate
50100%
40
50%
30
0%
20
-50%
10
0-100%
Note: Industry data sourced from the China Association of Automobile Manufacturers
In 2024 the introduction of vehicle trade-in policies and subsidies for retiring National III and
23Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
IV emission standard vehicles stimulated replacement demand. Additionally continued growth in the
natural gas market strong export performance and accelerating new energy adoption all contributed
to increased sales in these key market segments. FAW Jiefang's natural gas heavy truck retail sales
reached 57 thousand units growing 11.8% year-on-year with market share exceeding 30%
maintaining its industry-leading position. New energy vehicle sales reached 15.9 thousand units
achieving exponential growth. Overseas exports totaled 57 thousand units showing steady
improvement. Premium products such as the J7 and Yingtu series gained widespread market
recognition with significant sales growth.In 2024 the government implemented several policies to support commercial vehicle industry
development: March 13: The State Council issued the "Action Plan for Promoting Large-scale
Equipment Renewal and Consumer Goods Trade-in" advocating for accelerated retirement of diesel
freight vehicles meeting National III or lower emission standards. May 31: The Ministry of Transport
along with twelve other departments issued the "Action Plan for Large-scale Equipment Renewal in
Transportation" further specifying the detailed measures for transportation equipment renewal
initiatives including implementing trade-in programs with subsidies in the commercial vehicle sector;
July 31: The Ministry of Transport and Ministry of Finance issued the "Notice on Implementing the
Scrapping and Renewal of Aging Commercial Freight Vehicles" specifying subsidy rules to support
implementation. These policies collectively stimulated market demand establishing a foundation for
industry sales recovery. FAW Jiefang achieved annual sales of 251 thousand units representing a 3.9%
year-on-year increase.Beyond the positive impact of vehicle replacement policies the gradual implementation of tiered
environmental management standards also accelerated the industry's transition toward new energy
vehicles. The Ministry of Ecology and Environment together with four other departments issued the
"Opinions on Promoting Ultra-low Emissions in the Cement Industry" and "Opinions on Promoting
Ultra-low Emissions in the Coking Industry." These regulations require that companies in both
industries maintain a clean transportation ratio of no less than 80%. Enterprises failing to meet this
requirement must use only new energy vehicles or those meeting National VI emission standards for
all automotive transport which has helped drive sales growth in the new energy commercial vehicle
sector. Building on these favorable policies FAW Jiefang achieved substantial growth in new energy
product sales reaching 15.9 thousand vehicles for the year.
24Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
II. Main Businesses of the Company in the Reporting Period
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 and creating a leading trend. The main business products and business model of the
Company did not change significantly during the reporting period.As of 2024 FAW Jiefang has strategically established five major vehicle production bases
across China in Changchun Qingdao Guanghan Liuzhou and Foshan. This carefully designed
production network creates a "primary-secondary flexibly complementary" capacity model reaching
a total annual production capacity of 418 thousand vehicles. The annual production capacities of each
base are: Changchun (153 thousand vehicles) Qingdao (200 thousand vehicles) Guanghan (40
thousand vehicles) Liuzhou (20 thousand vehicles) and Foshan (5 thousand vehicles). In recent years
the Company has consistently prioritized technological leadership and business innovation as key
strategic development directions continually increasing its investments in these areas.Simultaneously the Company has proactively accelerated the optimization and restructuring of its
production capacity focusing closely on critical development trends such as high-end product
development and new energy transformation while continuously optimizing resource allocation and
implementing smart manufacturing upgrades. Through these comprehensive initiatives the Company
has successfully established multiple industry-leading advanced manufacturing bases demonstrating
not only exceptional production and manufacturing capabilities but also securing significant
technological and operational advantages in the commercial vehicle sector. This has established a
solid foundation for maintaining the Company's sustained market leadership position.Manufacturing production and operation of complete vehicle in the reporting period
□Applicable □Not applicable
Production and sales of complete vehicles
25Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Unit: Vehicle
Production Sales Qty
This Year-on-year This Same Year-on-year
Same Period
Reporting Increase and Reporting Period of Increase and
of Last Year
Period Decrease Period Last Year Decrease
By vehicle type
Medium/Heavy
209830214256-2.07%2140372051624.33%
truck
Light-duty truck 38227 35101 8.91% 36462 35199 3.59%
Bus 614 1283 -52.14% 579 1301 -55.50%
Total 248671 250640 -0.79% 251078 241662 3.90%
Reasons for year-on-year change of more than 30%
□Applicable □Not applicable
Bus production and sales volumes decreased year-on-year primarily due to public transit market
conditions with target transit companies postponing vehicle renewals. The core bus market remains
limited and significant challenges are faced when developing new markets. To mitigate operational
risks while steadily developing our customer base the Company deliberately declined orders with
potential accounts receivable risks.Construction of parts and components supporting the system
Regarding the parts and components supply system the Company continues to build "world-
class procurement competitiveness" for FAW Jiefang focusing on market customers and various
industry needs while continuously improving the resource platform. Currently the three major core
assemblies - engines transmissions and axles - for the company's main vehicle models are primarily
self-produced. Resource allocation for core components has been arranged in medium and heavy
trucks new energy vehicles light and micro trucks and overseas markets expanding the resource
network and fully participating in market competition. Additionally the Company has strengthened
tiered supplier management developed cooperation strategies for suppliers at different levels and
enhanced coordination with outstanding domestic and international suppliers. The Company strictly
controls quality through rigorous evaluation of new suppliers strengthens performance assessment
and capability reviews for existing suppliers and effectively monitors supplier processes based on
principles of leading product technology quality and scientific process management ensuring the
quality reputation of complete vehicles.Production and operation of automobile parts and components in the reporting period
26Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
□Applicable □Not applicable
Automobile finance business performed by the Company
□Applicable □Not applicable
Business related to new energy vehicles performed by the Company
□Applicable □Not applicable
Production and operation of complete new energy vehicles and parts & components
Unit: Yuan
Product Production
Production Sales volume Sales revenue
category Capacity
Commercial 61 thousand 18860 15907 5016488634.52
vehicles vehicles
III. Analysis of Core Competitiveness
The Company adheres to the corporate vision of "being the most proud commercial vehicle
enterprise and the most trustworthy commercial vehicle brand" and the mission of "becoming China's
first and world-class provider of green and intelligent transportation solutions and building a more
prosperous society" and the brand concept of "being trustworthy intelligent and courageous and
benefiting the world"; takes products and services as the main task customers and employees as the
foundation innovation and reform as the driving force; focuses on industry trends and customer needs
and improves product competitiveness and service level rapidly.
1. Product research and development: Four major fields heavy medium and light trucks and
passenger vehicles are covered. The heavy truck sector includes eight major product platforms: J7
J6P J6V J6E Yingtu JH6 Han V and JH5; the medium truck sector includes four major product
platforms: J6G J6L JK6 and Dragon V; The light truck sector includes four major product platforms:
Lingtu Tiger 6G J6F and Tiger V; The bus sector includes highway coaches new energy public
buses recreational vehicles etc. with new energy products achieving comprehensive coverage across
mainstream scenarios in segmented markets. With the "Jiefang Pioneering and Leading" technology
brand as the flagship and "Jiefang Zhitu" "Jiefang Lantu" and "Jiefang Yitu" as three independent
innovation technology routes the company targets "world-class" R&D capabilities. The company has
established four core competencies in lean design performance development prototype verification
and testing validation. Five major technology platforms have been created focusing on low-carbon
solutions electrification intelligence connectivity and high quality - referred to as the "four
27Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
transformations and one high" approach. This forms a comprehensive development chain of styling-
design-simulation-prototyping-testing that spans all levels from "complete vehicle-system-assembly-
component-material" covering all R&D phases and application scenarios fully supporting FAW
Jiefang's technological leadership and product pioneering position. The Company possesses an
efficient collaborative R&D team of over 3000 personnel and is one of the commercial vehicle
enterprises mastering world-class complete vehicles and three major powertrain core technologies.The company has obtained ISO9001 and IATF16949 quality system certifications and serves as a
national-level independent automotive product R&D and test certification base.
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-duty Vehicle Qingdao Medium and Heavy-duty Vehicle and Light
Trucks - are supported by a nationwide marketing service network comprising nearly 1000 dealers
over 1800 service providers and more than 200 parts suppliers (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 high-quality global resources to provide a strong guarantee of
the high reliability of Jiefang trucks. In recent years the Company has become strategic partners with
top enterprises at home and abroad successively including Huawei Knorr-Bremse ZF Shell
BOSCH CATL VOSS China Unicom and CATARC.
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 at the top of the industry. The Company operates five
major vehicle manufacturing bases in Changchun Qingdao Guanghan Liuzhou and Foshan with a
current planned production capacity of 418 thousand vehicles. The Company maintains three major
powertrain component manufacturing bases in Changchun Wuxi and Dalian independently
controlling the core technologies and production capabilities for engines transmissions and axles
within the smart powertrain domain. The product competitiveness ranks at an advanced global level.Among these facilities the Wuxi Diesel Engine Factory features three major product series: Aowei
Bowei and Jinwei achieving world-class manufacturing standards. The Company has deeply
developed four key areas: intelligent vehicles new energy V2X and aftermarket services
28Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
establishing six new business model bases in Suzhou Nanjing Tianjin Shijiazhuang Foshan and
Wuxi.
4. Overseas export: The Company actively responds to the "Belt and Road" initiative
accelerates its presence in overseas markets and creates new avenues of growth for its business. In
2024 the Company comprehensively accelerated its commercial vehicle overseas business expansion
by establishing FAW Jiefang Group International Automobile Co. Ltd. and acquiring FAW Africa
Investment Co. Ltd. These strategic moves expedite the development of overseas industrial
capabilities and enhance both product competitiveness and brand influence in international markets.Jiefang's products are exported to over 80 countries and regions such as Southeast Asia the Middle
East Latin America Africa and Eastern Europe and the Company has more than 100 core dealers
and nearly 190 distributors in nearly 40 countries and regions around the world. Export products
include models such as J7 J6P JH6 and Tiger V. Additionally the Company leverages its system
advantages based on reality and through system collaboration strives to build an overseas marketing
platform of "talent+ service+ automotive+ finance".
5. New energy: Its product portfolio covers five major lines: tractors dump trucks cargo trucks
SPVs and passenger cars. 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. The goal of product development is to meet
market demand and alleviate user pain points. It focuses on achieving the "three-low and one-high"
core competitiveness which refers to low cost low self-weight low energy consumption and high
reliability. Additionally the Company strives to differentiate its products through the attributes of
long endurance low-temperature resistance high intelligence and high comfort. To achieve these
goals the Company undertakes continual iteration and upgrading of 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.
29Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
IV. Analysis of Main Business
1. Overview
2024 marks a significant milestone as FAW Jiefang builds upon its 70-year foundation
representing the first year in its determined journey toward becoming a revitalized century-old
national brand. Throughout the year despite challenges including sluggish demand in the commercial
vehicle industry and profound structural adjustments the Company decisively implemented various
strategic initiatives. The entire Jiefang workforce confronted difficulties overcame obstacles and
persevered under pressure effectively advancing all operational tasks and achieving commendable
business results. As of December 31 2024 the Company's total assets reached 72.749 billion yuan
increasing by 6.85% year-on-year while net assets attributable to shareholders of the listed company
totaled 26.318 billion yuan rising by 6.11% year-on-year. For January-December 2024 the Company
recorded operating revenue of 58.581 billion yuan representing an 8.93% year-on-year decrease. Net
profit attributable to shareholders of the parent company amounted to 622 million yuan decreasing
by 22.78% year-on-year. Vehicle sales totaled 251.1 thousand units increasing by 3.90% year-on-
year including 214 thousand medium and heavy trucks a 4.33% year-on-year increase (excluding
FAW-HONGTA Yunnan Automobile Co. Ltd. and FAW Harbin Light-Automobile Co. Ltd. figures).New energy vehicle sales reached 15.9 thousand units surging by 120.8% year-on-year. Overseas
exports totaled 57 thousand units growing by 27.4% year-on-year.Unit: 100 million yuan
Total Assets Equity Attributable Revenue Net Profit Attributable
to Owners to Owners
20232024202320242023202420232024
In 2024 the project "Key Technologies and Industrialization of Digital Development for
Automotive Driving Experience" jointly conducted by the Company and the Automotive
Engineering College of Jilin University received the first prize in the China Society of Automotive
30Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Engineers Science and Technology Award. The Company's independently developed project
"Commercial Vehicle V2X Big Data Cloud Platform Construction and Industrial Application" won
the "Business Value Award" jointly sponsored by the National Data Administration and 14 other
departments making it the only vehicle manufacturer nationwide to be nominated and receive this
award. The Jiefang JH6 high-powered natural gas truck won the "Most Reputable and Profitable Gas
Heavy Truck" award the JH6 560 horsepower natural gas tractor received the "2024 Most Reliable
Express Transport Vehicle" award and the Aowei 13L engine model won the "2024 Most Reliable
Fuel-Efficient Heavy-Duty Engine" award. Additionally the Company has been included in the
"China ESG Listed Company Pioneer 100" list for two consecutive years and has received an A-level
evaluation for information disclosure from the Shenzhen Stock Exchange for four consecutive years.The Jiefang brand value has led the commercial vehicle industry for 13 consecutive years while
tractor sales have maintained the industry's top position for nineteen consecutive years.In 2024 the Company's priorities are as follows:
(1) Taking the brand as the leader refreshing the brand core and creating the leading
brand strength.Strengthened brand strategy leadership improved vehicle product brand architecture upgraded
customer service brand and launched the "Jiefang Yitu" aftermarket brand. Reinforced
comprehensive brand management established brand asset protection mechanisms including
copyright protection building a solid foundation for brand development. Cultivated a pioneering
brand image through activities including the 9 million vehicle milestone celebration J7 Pioneering
and Leading Version Edition launch and Xingyu Truck delivery events generating significant
attention through multi-channel communication. Made prominent appearances at international
exhibitions including the Russian Machinery Industry Exhibition and held a 30th anniversary
31Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
celebration in South Africa continuously enhancing international influence. The "Jiefang" brand
value reached 131.845 billion yuan maintaining the industry's top position for 13 consecutive years.
(2) Successfully implemented product leadership strategy with comprehensive
competitiveness improvements
Traditional vehicles: Successfully launched the Jiefang J7 Pioneering and Leading Version
Edition introducing five breakthrough technologies that pioneer a new era in efficient logistics. The
headquarters' medium and heavy-duty division prepared over 50 new products for natural gas/diesel
tractors comprehensively covering various market segments. The cargo division introduced over 30
specialized products for different market segments incorporating more than 20 new technologies
achieving absolute industry leadership. Qingdao medium and heavy-duty division accelerated
development of medium and long-term product portfolio with JH6 upgraded models achieving
industry-leading fuel efficiency and weight reduction while the Han V upgrade project reached
production readiness. Accelerated powertrain product upgrades enhancing overall powertrain
competitiveness.New energy products: Expanded medium and heavy-duty product portfolio accelerated
proprietary component and model development verification achieving coverage across ten major
market segments. Launched over 40 products across tractor cargo dump truck and special-purpose
series. In small trucks 12 new products were introduced further enhancing competitiveness. For
buses new public transport products including 8-meter pure electric low-floor buses were added
meeting Changchun's public transport order requirements. Developed over 10 hybrid fuel-electric
models. For powertrain components planned and developed multiple battery products supporting
new energy sales growth.V2X products: Created high-value services implemented predictive diagnostics and expanded
proactive service functions covering over 90 service stations nationwide. Enhanced new energy user
interfaces completing differentiated energy management digital key and other functional
capabilities. Achieved full coverage across conventional new energy and intelligent vehicle models
with over-the-air updates for more than 40 thousand vehicles. Conducted preliminary research on
V2X communication terminals effectively positioning vehicle-road-cloud integrated advanced
technologies.Intelligent vehicle products: Launched L2-level intelligent vehicle platform for high-speed
32Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
logistics scenarios. Thoroughly addressed labor reduction requirements completing relevant project
planning and approvals. Completed L3 pilot certification project approval improving advanced
autonomous driving product development processes. For low-speed freight scenarios completed
planning and project approval for factory logistics tractors enabling L4-level autonomous driving.
(3) Adhering to innovation and transformation as driving forces continuously
strengthening core capabilities
* Innovation drive
Technological innovation: Made breakthroughs in three major areas - traditional vehicles new
energy and intelligent connectivity - achieving over 90 core technological advancements. Filed more
than 1500 patent applications with invention patents accounting for 82%. The "Automotive Driving
Experience Digitalization Project" won the first prize in the China Society of Automotive Engineers'
Science and Technology Progress Awards. Established the "Pioneering and Leading Lantu Joint
Research Center" with Shell pioneering the industry's first "Xingyue" hydrogen engine tractor and
liquid hydrogen fuel-electric tractor. Launched five major technical features of the J7 Pioneering and
Leading Technology Platform setting industry standards and deeply integrating innovation with the
application injecting new momentum and vitality into the "Jiefang Pioneering and Leading"
technology brand.* Transformation drive
Management transformation: Established a new energy vehicle product line significantly
reallocating resources toward the new energy sector. Integrated vehicle manufacturing operations
across five locations transitioning to a "capability center + operational units" business model.Transformed the marketing system to focus on new energy incorporating the new energy vehicle
sales company into marketing headquarters. Established FAW Jiefang Group International
Automobile Co. Ltd. to achieve end-to-end operations for overseas business. Deployed key personnel
across various levels building a multi-tiered operational organization that efficiently supports
company performance improvement.Personnel system transformation: Optimized and strengthened the management team
reconfigured personnel in the manufacturing sector and continuously enhanced the talent pool.Transferred 350 personnel to key areas reduced outsourced staff by 1300 and recruited over 600
professional talents systematically improving capabilities. Implemented a "two meetings + two
33Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
reports" work review mechanism and assessment system achieving a 100% task completion rate.Optimized incentive and accountability mechanisms eliminating hierarchical limitations to ensure
greater rewards for higher performance contributions.
(4) Four major strategic initiatives advancing effectively achieving significant operational
progress
Traditional vehicle market leadership initiative: Firmly maintained traditional vehicle market
position. Changchun and Qingdao facilities leveraged complementary advantages and product
differentiation intensified market efforts addressed product gaps in high-horsepower models and
natural gas vehicles accelerated adoption of automated manual transmission (AMT) products
targeted high-potential markets and regions with precise marketing strategies achieving
improvements in both domestic medium and heavy truck sales volume and market share. In the light
vehicle sector focused on express logistics resource transportation and other key markets capitalized
on regional opportunities implemented strategies to enhance strengths while addressing weaknesses
and strengthened distribution channels networks and service capabilities achieving dual
improvements in sales volume and market share.New energy vehicle growth acceleration initiative: Implemented company-wide marketing
efforts focused on key scenarios regions and customers strengthened market breakthrough
capabilities and enhanced marketing system effectiveness. Strengthened new energy brand
promotion through the "Energy Efficiency Championship" campaign highlighted large-capacity
battery products improved customer engagement and enhanced Jiefang's reputation for energy
efficiency. Developed a comprehensive communication strategy featuring leadership team product
presentations and influencer video competitions increasing Jiefang's new energy market presence.Throughout the year new energy vehicle sales reached 15.9 thousand units increasing by 120.8%
year-on-year achieving doubled growth for two consecutive years.Overseas market expansion initiative: Advanced leadership in key markets competed for
emerging and potential markets achieved breakthroughs in export partnerships and accelerated light
truck market penetration across four major strategic fronts reaching annual sales of 57 thousand units
a 27.4% year-on-year increase achieving transformative export growth.Cost reduction and profitability enhancement initiative: Used annual business objectives as
guidance implemented comprehensive budgeting conducted "N+X" rolling forecasts established a
34Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
"product line-business unit-functional system" interconnected budget matrix model and streamlined
budget coordination processes. Focused on the primary value chain continuously expanded revenue
sources while reducing costs supporting the company's business development.
(5) Seven key work areas advancing systematically with continuous improvement in
corporate governance effectiveness
Strategic management: Continuously enhanced insight capabilities producing over 370
analytical reports. Advanced the JFSP07 planning cycle establishing strategic planning units
organized across nine industrial sectors and four functional areas for the first time forming Jiefang's
"531" strategic framework. Completed the launch of Jiefang International's "SPRINT2030"
globalization strategy further clarifying Jiefang's development blueprint and pathway.Quality management: Deepened reliability engineering initiatives earning positive market
reception and customer satisfaction. Improved quality inspection systems and continuously enhanced
process capabilities. Accelerated quality assurance capability development and strengthened quality
control measures. Established multi-tiered quality operations organization completed manufacturing
quality operations organizational structure and further implemented quality accountability systems.Digital transformation: Following the "1143" transformation framework focused on
improving efficiency effectiveness quality and customer experience by prioritizing architectural
asset iteration IT system construction and data value extraction accelerating the development of
digital platform capabilities through strong project management.Supply chain security: In procurement continuously optimized competitive sourcing
strategies and implemented comprehensive cost control through nine major cost-reduction initiatives.Strengthened quality control throughout the entire process to build competitive quality advantages.Coordinated resources across multiple locations to ensure supply chain security and stability.Improved procurement resource allocation onboarded over 120 new suppliers removed over 100
underperforming suppliers and continuously strengthened the supplier network. In manufacturing
and logistics closely tracked market demand fulfillment implemented precise production planning
and improved production line utilization rates. Practiced lean manufacturing principles quickly
adapted to market changes and implemented production rhythm adjustments across all facilities.Enhanced production cost controls and mobilized company-wide improvement initiatives reducing
costs by more than 50 million yuan.
35Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Manufacturing technology: Completed new energy production qualification certification for
Guanghan and Liuzhou factories. Prioritized over 10 investment projects in new energy and emerging
business areas while systematically advancing medium and heavy engine upgrade projects and other
ongoing initiatives. Swiftly completed technology transfer projects including J6V to H-line and
JH6/JK6 to Liuzhou factory achieving localization of over 400 components at Sichuan and Liuzhou
factories contributing to improved factory profitability and efficiency.Capital operations: Raised 2 billion yuan through private placement introducing nine investors
including the National Manufacturing Industry Transformation and Upgrade Fund achieving the
company's first A-share refinancing since its restructuring and listing and providing financial support
for transformation development and investment. Completed acquisitions of overseas subsidiaries in
Tanzania South Africa and other locations supporting rapid implementation of international strategy
and achieving breakthroughs in global expansion. Divested financial company equity increasing
company cash flow by 4.9 billion yuan. Enhanced management of over 10 companies in which the
Company holds equity investments generating annual investment income of 311 million yuan.Improved information disclosure quality earning Shenzhen Stock Exchange A-level disclosure rating
for four consecutive years.Safety risk management and security: In safety and environmental protection focused on
"production safety" and "energy conservation and environmental protection" as dual priorities fully
implementing accountability systems achieving zero production accidents fires occupational
illnesses pollution incidents and security breaches. In risk management and compliance
continuously strengthened corporate governance enhanced internal control and compliance
management systems balanced supervision with service fully integrated "strengthened controls risk
prevention and compliance promotion" into corporate governance with zero major risk incidents
throughout the year. In confidentiality management reinforced information security responsibilities
at all levels developed the "cubic framework" methodology compiled commercial confidentiality
management guidelines and enhanced security awareness and education with no confidentiality
breaches occurring.
36Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
2. Revenues and costs
(1) Composition of Operating Income
Unit: Yuan
2024 2023 Year-on-
Proportion Proportion year
in in Increase
Amount Amount
Operating Operating and
Income Income Decrease
Total operating
58581106258.53100%64324640770.64100%-8.93%
income
By Industries
Automobile
58581106258.53100.00%64324640770.64100.00%-8.93%
industry
By products
Commercial
54019490190.0592.21%59103215453.2291.88%-8.60%
vehicles
Spare parts and
4561616068.487.79%5221425317.428.12%-12.64%
others
By regions
Domestic 56313824960.99 96.13% 62468099421.40 97.11% -9.85%
Overseas 2267281297.54 3.87% 1856541349.24 2.89% 22.12%
(2) Information about industries products regions and sales models accounting for more than
10% of the Company's operating income or operating profit
□Applicable □Not applicable
Unit: Yuan
Increase/ Increase/
Decrease Decrease Increase/De
of of crease of
Gross Operatin Operatin Gross Profit
Operating Income Operating costs Profit g Income g Cost Rate over
Rate over the over the the Same
Same Same Period of
Period of Period of Last Year
Last Year Last Year
By Industries
Automob
Reduced by
ile 56781606864.49 53523342363.25 5.74% -8.99% -7.57%
1.45%
industry
By products
Commer Reduced by
54019490190.0551214832226.595.19%-8.60%-6.93%
cial 1.70%
37Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
vehicles
Spare
Increased
parts and 2762116674.44 2308510136.66 16.42% -15.91% -19.69%
by 3.93%
others
By regions
Domesti Reduced by
54514325566.9551507768650.575.52%-9.94%-8.49%
c 1.49%
Reduced by
Overseas 2267281297.54 2015573712.68 11.10% 22.12% 24.66%
1.81%
(3) Whether the physical sales revenue of the Company is greater than the labor service
revenue
□Yes □No
Year-on-year
Industry
Item Unit 2024 2023 Increase and
Classification
Decrease
Sales Qty Vehicle 251078 241662 3.90%
Production
Automobile Vehicle 248671 250640 -0.79%
output
industry
Storage
Vehicle 19226 22126 -13.11%
amount
Reasons for the year-on-year change of relevant data by more than 30%
□Applicable □Not applicable
(4) Performance of major sales contracts and major procurement contracts signed by the
Company as of the reporting period
□Applicable □Not applicable
(5) Composition of operating cost
Industry and Product Classification
Unit: Yuan
2024 2023 Year-
Industr on-year
Proportio Proporti
y Increas
Item n in on in
Classifi Amount Amount e and
Operatin Operatin
cation Decreas
g Cost g Cost
e
Autom Mater
48826962758.1088.92%53650304272.5690.32%-8.99%
obile ial
38Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
industr cost
y Other
6081113765.3311.08%5751063070.939.68%5.74%
s
Unit: Yuan
2024 2023 Year-on-
Product Proportio Proporti year
Classifi Item n in on in Increase
Amount Amount
cation Operatin Operati and
g Cost ng Cost Decrease
Comme Comme
rcial rcial
51214832226.5993.27%55031133151.1692.64%-6.93%
vehicle vehicle
s s
Spare Spare
parts parts
3693244296.846.73%4370234192.337.36%-15.49%
and and
others others
Note: None
(6) Whether the consolidation scope is changed in the reporting period
□Yes □No
On August 16 2024 the Company invested in establishing FAW Jiefang Group International
Automobile Co. Ltd. By December 31 2024 the Company completed the business combination of
Jiefang Motors Tanzania Ltd. and FAW (Africa) Investment Co. Ltd. under common control.
(7) Significant changes or adjustments in business products or services of the Company in the
reporting period
□Applicable □Not applicable
(8) Information about main customers and main suppliers
Information about the main customers of the Company
Total sales amount of the top five customers (Yuan) 16271900607.79
Proportion of total sales amount of the top five customers in
27.78%
total annual sales amount
Proportion of sales of related parties in total annual sales of
23.17%
the top five customers
Information about the top five customers of the Company
39Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Proportion
in Total
S/N Customer name Sales (Yuan)
Annual
Sales
1 China FAW Group Co. Ltd. 12501445135.06 21.34%
2 Customer 1 1071050258.10 1.83%
FAW Jiefang Fujie (Tianjin) Technology
31070399702.991.83%
Industry Co. Ltd.
4 Customer 2 834076392.64 1.42%
5 Customer 3 794929119.00 1.36%
Total -- 16271900607.79 27.78%
Other information about the main customers
□Applicable □Not applicable
Information about the main suppliers of the Company
Total purchase amount of the top five suppliers (Yuan) 12973210730.23
Proportion of total purchase amount of the top five suppliers in 24.62%
total annual purchase amount
Proportion of the purchase amount of related parties in the total 6.78%
annual purchase amount of the top five suppliers
Information about the top five suppliers of the Company
Proportion
in Total
S/N Name of Supplier Purchase Amount (Yuan) Annual
Purchase
Amount
1 Supplier 1 6348170812.79 12.05%
2 Supplier 2 2223126027.72 4.22%
3 China FAW Group Co. Ltd. 2179561798.44 4.14%
4 Fawer Auto Parts Co. Ltd. 1393565622.28 2.64%
5 Supplier 3 828786469.00 1.57%
Total -- 12973210730.23 24.62%
Other information about the main suppliers
□Applicable □Not applicable
3. Cost
Unit: Yuan
40Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Descripti
Year-on-year
on of
2024 2023 Increase and
Major
Decrease
Changes
Sales expenses 1273327595.92 1103598712.10 15.38%
Administrative
1780652477.101956239032.27-8.98%
expenses
Financial
-805971666.64-933066859.4613.62%
expenses
R&D expenses 2409485641.76 2982257879.16 -19.21%
4. R&D investment
□Applicable □Not applicable
Expected Impact on the
Name of Main Project Project
Proposed Objectives Company's Future
R&D Projects purpose progress
Development
Follow the
"domestic first- Maintain the high-end
class and positioning of products
world-class" pursue excellent quality
Support FAW Jiefang's
enterprise and improve product
strategy of developing a
development quality continuously in the
J7 series "domestic first-class
strategy and efficient long-distance
expanded and world-class"
develop Verificati trunk express market
models enterprise and
domestic high- on phase create greater value for
development contribute hard-core
end benchmark users expand the market
project products to the product
heavy trucks capacity of high-end
layout during the 14th
independently vehicle products year by
Five-Year Plan period.to achieve a year realize double sales
new level of volume and lead the
domestic truck industry development.quality.JH6 series In the current Maintain the mid-to-high- Enhance the
expanded situation where Verificati end positioning of products competitiveness of
models JH6 products on phase in the core markets such as FAW Jiefang's medium
development have been on general freight express and heavy vehicle
41Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
project the market for freight green transport and product line and major
eight years it is urban construction muck products and
urgent to strengthen the advantages contribute hard-core
upgrade the of highway vehicles in the products to the product
JH6 platform mid-to-high-end market layout in the 14th Five-
to ensure the and renew the brand image Year Plan period.leading of engineering vehicles by
competitivenes optimizing the complete
s of the Jiefang vehicle reliability comfort
brand. and TCO.Complete the development
of a new energy-exclusive
Continuously platform in urban logistics
improve the medium and short-distance Lay the foundation for
Next- high-end transportation and other the overall realization
Generation attributes of relevant markets which of new energy
New Energy FAW Jiefang Planning covers both pure electric transformation of FAW
Light Truck Light Truck stage and hybrid routes aiming Jiefang and assist in
Development and develop a to create an ultimate completing the 14th
Project new energy- driving and riding Five-Year
exclusive experience while achieving Development Plan.platform. an industry-leading
electricity consumption
level.Develop fuel Cover typical scenarios of Complete the layout of
cell products the three demonstration three major technical
cover all three city clusters of fuel cells routes reserve the fuel
major technical develop a whole series of cell products
Fuel Cell routes meet products such as fuel- development
Develop
Product the electric traction fuel- technology support the
ment
Development requirements electric dump special fuel- research and
phase
Project of electric and fuel-electric development of
demonstration logistics and apply for independent fuel cell
operation demonstration operation products build a
subsidies and projects together with benchmark image for
support the mainstream fuel-electric the new energy
42Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
increase of new system partners to realize industry and support
energy the batch sales and FAW Jiefang to lead the
products. operation of fuel-electric new energy industry
products. continuously.Through the
Develop aided commercial operation
driving and of emerging industries
restricted- in multiple scenarios
Develop intelligent vehicle
region high- the Company's
series products realize
level intelligent independent R&D
aided driving in trunk
driving capability and
logistics scenarios and
commercial competitiveness in the
high-level intelligent
Jiefang vehicle intelligent driving field
driving in multiple
intelligent products based Develop are improving
restricted-region scenarios
driving product on customer ment continuously. The rapid
such as ports and plants
development needs so as to phase accumulation of
and develop full-stack
project help Jiefang operational experience
intelligent driving software
realize the supports the Company's
and hardware core
commercializat strategic transformation
technologies by themselves
ion of the to become "China's first
to create independent core
intelligent and
competitiveness.vehicle world-class" provider
industry in a of green intelligent
short period. transportation
solutions.Iterative Launch of the Jiefang
upgrade of the Drive Lantu App 2.0
dedicated featuring industry-leading Enhancing the
Lantu app for functionality in intelligent company's vehicle
New Energy new energy Develop driving assistance remote product
V2X 2024 vehicles ment vehicle control vehicle competitiveness and
Annual Project completing the phase purchase and leasing supporting new energy
V2X products options charging and vehicle sales growth
functionality battery swap management initiatives.matrix to meet and community
users' digital information services.
43Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
service needs
for vehicle
management
and
maintenance.The intelligent
diagnosis and
repair platform
establishes The intelligent
end-to-end diagnosis and repair
digitalization platform focuses on
of the complete vehicle maintenance
vehicle processes delivering
maintenance end-to-end digitalized
process. This integrated service
upgrade project Completed development of throughout the repair
Intelligent
focuses on 12 primary functions and workflow. The platform
Diagnosis and Develop
three core 29 secondary functions. serves as a data center
Repair System ment
values - Achieved 100% coverage algorithm center
Upgrade phase
economy for controllers in remote capability aggregation
Project in 2024
efficiency and diagnostic capabilities. platform and digital
usability - to solution carrier for
enhance fault-related events
onboard effectively enhancing
diagnostic diagnostic design
capabilities and capabilities and
improve improving management
service center efficiency.repair
management
efficiency.Network Address By the end of 2025 the Ensure that beginning
Security compliance corresponding January 1 2026 all
Construct
Management requirements management system new platform vehicle
ion stage
System of domestic should be established models submitted for
Consulting and according to national type approval will meet
44Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Project international standards while meeting vehicle certification
regulations domestic and international requirements.regarding certification requirements.vehicle
information
security and
software
update
management
systems.Develop premium
infotainment system
Establish user
Standardize the platforms targeting high-
engagement
vehicle end retail customers to
touchpoints through the
infotainment enhance the vehicle's
infotainment system
Vehicle system to intelligent experience
support premium
Infotainment reduce features. Create a unified
Planning vehicle value
System redundant family-style human-
stage proposition metrics
Standardizatio adaptation machine interface (HMI)
reinforce FAW Jiefang's
n Project costs and integrated application
intelligent experience
improve software suite and
brand image and
product update standardized interfaces that
improve customer
efficiency. can be extended to mid and
brand loyalty.entry-level product
platforms.Develop an AI
Position FAW Jiefang
voice assistant
to create an industry
for premium
AI Large Target a 90% user intent benchmark AI voice
infotainment
Language comprehension rate focus assistant product
systems focus
Model Voice Planning on user satisfaction and rapidly transforming
on customized
Assistant stage ensure efficient interaction existing connected
scenarios for
Development to create an industry- products into AI-
high-end retail
Project leading product. powered intelligent
customers
voice interaction
provide
systems.proactive
45Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
interaction
services and
enhance the
intelligent user
experience and
interaction
efficiency.Respond to
national
vehicle-road-
cloud
integration Complete vehicle-road-
pilot initiatives cloud integration V2X
by actively (Vehicle-to-Everything)
Enhance FAW Jiefang's
Vehicle-Road- participating in terminal verification
Develop intelligent connected
Cloud pilot city demonstrate intelligent
ment product
Integration implementatio cleaning vehicles within
phase competitiveness and
Pilot Project n plans and factory areas and deploy
brand influence.developing operational vehicles in
FAW Jiefang's environmental
vehicle-road- maintenance scenarios.cloud
integration
product
portfolio.Develop Complete the development Provide competitive
transmission of drive axle and AMT drive axle and AMT
products products. Improve the transmission products
Upgraded complying comprehensive for FAW Jiefang's
transmission with noise Develop competitiveness of vehicle platform
product regulations and ment assembly products to make improve the
development fuel phase sure that the competitiveness of
project consumption comprehensive index is vehicle products and
regulations to higher than that of main support Jiefang in
improve the competitive products at leading the industry
competitivenes home and abroad. continuously.
46Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
s of complete
vehicles.Improve the effective
thermal efficiency of
Break through high
diesel engines achieve
Research on compression ratio fast
Break through the goal of producing
55% thermal dual-zone combustion
55% thermal low carbon emissions
efficiency system and other
efficiency Closed and reserve
power system technologies to challenge
technology of technologies to comply
technology of the 55% thermal efficiency
diesel engine. with the fuel
diesel engine of commercial vehicle
consumption
diesel engines.regulations in the next
stage.Break through Build the technical
Fuel cell the integration competitiveness of the
system and control Company's first-class
Reach the system power of
integration technology of Closed fuel cell products and
100 kW.
technology commercial fill the technical gap of
development vehicle fuel the independent fuel
cell systems. cell system.Information about R&D personnel of the Company
2024 2023 Change ratio
Number of R&D
personnel (person) 3318 3151 5.30%
Proportion of R&D
personnel 16.74% 15.75% Increased by 0.99%
Educational background structure of R&D personnel
Doctor's degree 48 49 -2.04%
Master's degree 1075 1027 4.67%
Bachelor's degree 2183 2059 6.02%
Junior college degree 12 16 -25.00%
Age structure of R&D personnel
Under 30 years old 1316 1171 12.38%
30-40 years old 1284 1299 -1.15%
47Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
41-50 years old 524 483 8.49%
51~60 years old 194 198 -2.02%
Information about the R&D investment of the Company
2024 2023 Change ratio
Amount of R&D Investment (Yuan) 2800223762.41 3104963079.11 -9.81%
Proportion of R&D Investment in Reduced by
4.78%4.83%
Operation Income 0.05%
Capitalization amount of R&D
390738120.65122705199.95218.44%
investment (Yuan)
Proportion of capitalized R&D
13.95%3.95%10.00%
investment in total R&D investment
Reasons and influence of major changes in the composition of the R&D personnel
□Applicable □Not applicable
Reasons for significant changes in the proportion of total R&D investment in operating income
compared with the previous year
□Applicable □Not applicable
Reasons for and the rationality of great change in the capitalization rate of R&D investment
□Applicable □Not applicable
Primarily due to the addition of new vehicle and powertrain development projects during the
current period as well as the ongoing development costs of R&D projects carried over from the
previous period.
5. Cash flow
Unit: Yuan
Year-on-year
Item 2024 2023 Increase and
Decrease
Subtotal of cash inflows from
56111632136.7464574069556.14-13.11%
operating activities
Subtotal of cash outflows from
61961918443.7960484396162.362.44%
operating activities
48Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Net cash flows from operating
-5850286307.054089673393.78-243.05%
activities
Subtotal of cash inflows from
5099293082.54404942904.891159.26%
investment activities
Subtotal of cash outflows from
4139412784.682799009918.9647.89%
investment activities
Net cash flows from investment
959880297.86-2394067014.07140.09%
activities
Subtotal of cash inflows from
1999915089.7516400000.0012094.60%
financing activities
Subtotal of cash outflows from
830253558.3328987570.032764.17%
financing activities
Net cash flows from financing
1169661531.42-12587570.039392.19%
activities
Net increase in cash and cash
-3717512950.181679972445.98-321.28%
equivalents
Description of main factors influencing major changes in relevant data on a year-on-year basis
□Applicable □Not applicable
(1) "Net cash flow from operating activities" decreased by 243.05% compared to the previous year
primarily due to an increase in trade receivables.
(2) "Total cash inflows from investing activities" increased by 1159.26% compared to the previous
year mainly attributable to increased cash recovered from investments.
(3) "Total cash outflows from investing activities" increased by 47.89% compared to the previous
year primarily due to increased payments for other investment-related activities during the current
period.
(4) "Net cash flow from investing activities" increased by 140.09% compared to the previous year
mainly resulting from increased cash recovered from investments.
(5) "Total cash inflows from financing activities" increased by 12094.60% compared to the previous
year primarily attributable to raised funds from the issuance of shares during the current period.
(6) "Total cash outflows from financing activities" increased by 2764.17% compared to the previous
year mainly due to cash dividend distributions during the current period.
49Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(7) "Net cash flow from financing activities" increased by 9392.19% compared to the previous year
primarily resulting from raised funds from the issuance of shares during the current period.
(8) "Net increase in cash and cash equivalents" decreased by 321.28% compared to the previous year
mainly attributable to the reduction in net cash from operating activities.Description of reasons for the significant difference between the net cash flows generated from the
operating activities in the reporting period and the net profit of this year
□Applicable □Not applicable
Refer to Section X - "Financial Report VII" Notes to Items in Consolidated Financial Statements
and Section 60 "Supplementary Information to Cash Flow Statement" for details.V. Analysis of Non-main Business
□Applicable □Not applicable
VI. Analysis of Assets and Liabilities
1. Major changes in asset composition
Unit: Yuan
End of 2024 Early 2024 Desc
ripti
Increas
on
Proporti e/Decre
Proportio of
on in ase in
Amount n in Total Amount Maj
Total Proport
Assets or
Assets ion
Cha
nges
Monetary
19852961021.6627.29%23545580404.3934.58%-7.29%
capital
Accounts
7067296142.549.71%2343108649.143.44%6.27%
receivable
Contract assets 14455542.05 0.02% 17582856.82 0.03% -0.01%
Inventories 10117213109.97 13.91% 10056641462.05 14.77% -0.86%
Investment
52835976.310.07%47049995.530.07%0.00%
properties
Long-term 1176288461.09 1.62% 5469591970.26 8.03% -6.41%
50Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
equity
investments
Fixed assets 11198300572.20 15.39% 11480849245.90 16.86% -1.47%
Project under
688181815.220.95%816484299.181.20%-0.25%
construction
Right-of-use
104360320.570.14%150436856.000.22%-0.08%
assets
Contract
2430554164.503.34%2320672076.223.41%-0.07%
liabilities
Lease
27431600.640.04%37973873.140.06%-0.02%
liabilities
High proportion of overseas assets
□Applicable □Not applicable
51Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
2. Assets and liabilities measured at fair value
□Applicable □Not applicable
Unit: Yuan
Profits and
Provision Purchas
losses from Sales
Accumulated for e
changes in amount
changes in fair impairment amount Other
Item Beginning balance fair value in the Closing balance
value through in the in the changes
for the current
equity current current
current period
period period
period
Financial assets
1. Investment in other
480780000.0059286528.00540066528.00
equity instruments
Total 480780000.00 59286528.00 540066528.00
Financial liabilities 0.00 0.00
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
3. Restrictions on asset rights as of the end of the reporting period
For details please refer to Note 22"Assets with restricted ownership or use right" in Part VII "Notes to Items in Consolidated Financial
Statements" of Section X - Financial Report.
52Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
VII. Investment Analysis
1. Overall situation
□Applicable □Not applicable
Investment Amount in the
Investment Amount in the
Same Period of Previous Year Variation range
Reporting Period (Yuan)
(Yuan)
790649224.63725139697.949.03%
53Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
2. Major equity investments acquired in the reporting period
□Applicable □Not applicable
Unit: Yuan
Profit
and
Invo
Loss
Inve Progress lved
Estim of Date
Name of Main Investm Capita stm Pro as of in
Investment Share Partne ated Invest of Disclosure
Investee busine ent l ent duct Balance Litig
amount proportion rs Reven ment Discl Index
Company ss method source hori type Sheet ation
ue in the osure
zon Date or
Curren
not
t
Period
http://www.cninfo.co
China
m.cn/new/d
-
isclosure/st
Africa
FAW Lon Veh Dece ockstockC
Devel Equity
(Africa) Vehicl Purchas Own g- icle mber ode=00080
327948795.48 55.00% opme transfer 0.00 0.00 No
Investment e sales e Funds ter sale 21 0&orgId=g
nt finalized
Co. Ltd. m s 2024 ssz0000800
Fund
&sjstsBond
Co.=false#late
Ltd.stAnnounc
ement
Total -- -- 327948795.48 -- -- -- -- -- -- 0.00 0.00 -- -- --
54Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 raised funds
□Applicable □Not applicable
55Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(1) Use of raised funds
□Applicable □Not applicable
Unit: 10 thousand yuan
Utilizatio Amou
Gross Cumul
Gross of n rate as Percentage nt of
raised ative
raised funds of the of the raised
Fundr Secur funds gross Allocation
Fundr Gross of utilized Cumulative end of cumulative Total unused funds
aising ities Net of raised repurpose of and intended
aising raised during the raised funds the gross of gross raised unutili
meth listing funds (1) d during raised use of unused
year funds current utilized (2) reporting raised funds zed for
od date the funds raised funds
reporting period funds over
reporting repurp
period (3) = repurposed two
period osed
(2)/(1) years
The funds
are held in a
dedicated
Priva
fundraising
te
Octo account
place
ber with a
2024 ment 200000 199781.34 185561.55 185561.55 92.88% 0 0 0.00% 14376.71 0
21 segment
of
2024 currently
share
allocated for
s
cash
management.Total -- -- 200000 199781.34 185561.55 185561.55 92.88% 0 0 0.00% 14376.71 -- 0
Description of use of raised funds
As approved by the China Securities Regulatory Commission in its "Reply on Approving FAW Jiefang Group Co. Ltd.'s Private Placement of 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 6.7 yuan per share. The gross raised funds totaled 1999999995.40 yuan and after deducting issuance expenses of 2186599.36 yuan
56Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(excluding VAT) the net raised funds amounted to 1997813396.04 yuan. The above net raised funds have been verified by Grant Thornton Certified Public
Accountants (Special General Partnership) in their "Verification Report."
As of December 31 2024 the Company has utilized 1855615452.21 yuan of the raised funds with a remaining balance of 143767056.89 yuan (including
pending payment of issuance expenses and interest income). Of this balance 80000000.00 yuan has been allocated for temporary cash management while
63767056.89 yuan remains in dedicated raised fund accounts.
As of December 31 2024 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; and New 13L and M Series Engine Shared Production
Line Technology Transformation Project. These completions have been disclosed in the Company's 2024 Special Report on the Deposit and Actual Use of Raised
Fund.
57Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(2) Raised fund allocation to committed projects
□Applicable □Not applicable
(3) Changes to raised funds-funded projects
□Applicable □Not applicable
The Company had no changes to raised funds-funded projects during the reporting period.VIII. Sale of Major Assets and Equity
1. Sale of major assets
□Applicable □Not applicable
The Company did not sell major assets during the reporting period.
58Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
2. Sale of major equity
□Applicable □Not applicable
Whethe
Whet r
Net Profit
her Implem
Contributed Proportio
All ented as
by the n of Net
Prope Schedul
Equity to Profit Rela
rty ed. If
the Listed Contribu ted Relati
Pricin Right Not
Company Effect ted by Part onship
Transaction g s of Provide Date
Saled from the of Sale Equity y with
Counterp Date of Price (10 Princi the the of Disclosure
Equity Beginning on the Sales to Tran the
arty Sale thousand ple of Equit Reason Disclo Index
Interest of the Compa the sacti Count
yuan) Equit y s and sure
Current ny Listed on erpart
y Sale Invol the
Period to Compan or y
ved Measur
the Date of y in the Not
Have es
Sale (10 Total Net
been Taken
thousand Profit
Trans by the
yuan)
ferred Compa
ny
21.839 The http://www.c
Parent
3% Compa Asset ninfo.com.c
compa
China Equity Decem ny apprai Octob n/new/disclo
ny of
FAW of the ber 24 492388.61 74309.15 remains 71.18% sal Yes Yes Yes er 29 sure/stockst
the
Co. Ltd. First 2024 commit pricin 2024 ockCode=00
Comp
Autom ted to g 0800&orgld
any
obile its core =gssz00008
59Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Finance busines 00&sjstsBon
Co. s d=false#late
Ltd. which stAnnounce
will see ment
ongoin
g
develop
ment of
its
flagship
product
s.IX. Analysis of main holding and joint-stock companies
□Applicable □Not applicable
Major Subsidiaries and Joint-stock Companies Affecting over 10% Net Profit of the Company
Unit: Yuan
Company Compa Main
Registered Capital Total Assets Net Assets Operating Income Operating Profit Net Profit
Name ny Type Business
Development
FAW
Jiefang Subsidi manufacturin
10803012510.0169849115809.6919342373738.7758139826718.18-589042231.10-155382966.44
Automotiv aries g and sales of
e Co. Ltd. vehicles and
parts
60Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Acquisition and disposal of subsidiaries in the reporting period
□Applicable □Not applicable
Methods of acquisition and disposal of
Company Name Impact on overall production operation and performance
subsidiaries in the reporting period
Expand avenues for overseas capital operations to boost the growth
FAW (Africa) Investment Co. Ltd. Business merger under common control
of export sales to Africa
Enhance Tanzania's local export sales and expand market reach in
Jiefang Motors Tanzania Ltd. Business merger under common control
neighboring regions.FAW Jiefang Group International
Establishment by investment Boost overseas export sales growth
Automobile Co. Ltd.Description of main holding and joint-stock companies: none
61Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
X. Structured Entities Controlled by the Company
□Applicable □Not applicable
XI. Outlook for Future Development of the Company
1. Competition pattern and development trend of the Company's industry
Over the next three years the commercial vehicle industry will continue to undergo a profound
transformation.With the progression of economic restructuring and upgrading GDP growth is expected to
gradually decelerate weakening support for medium and heavy-duty truck market demand with
industry demand generally maintaining low operational levels. However consumer spending is
projected to increase under the stimulus of trade-in policies for consumer goods boosting freight
turnover volumes and benefiting highway long-haul transport vehicles. Additionally the continued
issuance of ultra-long-term special treasury bonds will improve investments in new infrastructure
projects somewhat stimulating demand for construction transport vehicles.The medium and heavy-duty truck market structure has entered a period of deep realignment.Natural gas vehicles have entered a phase of sustainable development as product offerings continue
to diversify and infrastructure gradually improves with demand remaining robust. With multi-policy
support new energy products continue to gain momentum with market scale and penetration rates
expected to increase further. Export growth will moderate in the future but overseas markets will
continue to perform strongly as the global economy and trade recover and acceptance of Chinese
products increases.In the near term market competition will primarily revolve around existing market share.Competition among traditional manufacturers remains intense. Emerging companies are entering the
new energy segment employing innovative technologies and business models to rapidly narrow the
gap with established industry leaders. Intensified competition will drive further market consolidation.
2. Development strategy and business plan of the Company
In 2025 the Company will thoroughly implement the spirit of the 20th Party Congress and its
Second and Third Plenary Sessions continue to fulfill General Secretary Xi Jinping's important
directives during his inspection of FAW uphold comprehensive Party leadership and execute
strategic and annual priorities. Following our "12149" framework (customer-centric approach
62Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
product and technological leadership as foundations quality as the cornerstone commitment to
winning four major challenges and strengthening nine key support areas) the Company will advance
all operational tasks with a pragmatic hands-on management style. The Company will accelerate the
strategic transformation and pioneer new directions striving to achieve final-year success in our "14th
Five-Year Plan" while progressing toward our goal of becoming a "world-class enterprise and
century-old national brand"!
(1) Maintain customer-centricity enhance customer relationship capabilities and
accelerate marketing transformation
First strengthen customer operations. Implement "customer engineering" key projects to
establish an effective domestic customer base exceeding one million. Second transform and enhance
distribution channels. Revitalize distribution channels implement end-to-end management achieve
data visualization and mitigate channel risks; Optimize management strategies improve
empowerment effectiveness and explore direct logistics capacity and direct sales models.
(2) Support market leadership through product and technological excellence reinforcing
core competitive advantages and growth momentum
Regarding product leadership: Deeply embrace the "product is king" philosophy dynamically
optimize our product portfolio capture business opportunities promptly create strategic advantages
proactively and develop product leadership where "we offer what competitors don't and excel where
they compete."
Regarding technological leadership: Strengthen innovation-driven development accelerate
core technology breakthroughs focus on technology application and enhance product advantages.Addressing user needs we will develop key technologies around three value propositions: fuel
efficiency intelligent user experience and reliability/durability building differentiated product
competitiveness.
(3) Firmly establish quality as our foundation vigorously implement quality improvement
initiatives and comprehensively rebuild the Jiefang brand's market reputation for excellence
Uphold "quality as our winning strategy" systematically deploy and implement our "Three-Year
Quality Enhancement Initiative" and establish major project clusters to address key challenges.
63Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Deeply embed the principle that "quality is our lifeblood" ensuring that quality improvements drive
brand enhancement and sales growth.
(4) Decisively win our four major strategic initiatives focusing on increasing both volume
and profitability to achieve market leadership and operational excellence
Domestic traditional vehicle leadership initiative. Secure our traditional vehicle market
position by leveraging the geographical resource and product positioning advantages of each
production base precisely targeting market opportunities with focused marketing strategies to ensure
annual targets are met.Overseas market expansion initiative. Accelerate implementation of the "SPRINT 2030"
internationalization strategy enhance Jiefang International's operational capabilities rapidly narrow
the gap with leading competitors in sales volume and capabilities and ensure achievement of annual
targets.New energy growth acceleration initiative. Develop highly adaptable products focusing on
core applications in steel plants coal mining and sanitation sectors; Achieve breakthroughs in dump
trucks specialized vehicles and sanitation vehicles to complete our product portfolio and drive sales
growth; Optimize marketing and service strategies strengthen strategic account development
capabilities and transform traditional channels for new energy products; Continuously innovate
through vehicle leasing transportation capacity services and other business models to create industry-
leading solutions.Profitability enhancement initiative. Strengthen comprehensive budget management
implementing interlocking budgets and rolling forecast models for proactive control and risk
prevention. Pursue margin improvement cost reduction and revenue enhancement by strengthening
project management and operational quality improving resource efficiency and enhancing
profitability.
(5) Execute nine key priority areas to comprehensively strengthen our foundation systems
and capabilities providing robust support for the company's high-quality development.
3. Possible risks to the Company's operation
(1) Market competition risk
64Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Currently the commercial vehicle market features simultaneous competition for domestic
market share and expansion in overseas markets. Industry leaders have established comprehensive
competitive frameworks in retail sales encompassing product pricing strategies differentiated
marketing systems and financing solutions intensifying competition across multiple dimensions.While domestic policy incentives and development in certain international regions have generated
some replacement demand the commercial vehicle market can only maintain a modest recovery in
the short term due to domestic and international political and economic constraints coupled with
cyclical industry pressures. The combined effects of policy direction and market pressures are
accelerating industry consolidation and intensifying competition among manufacturers.
(2) Market structure change risk
Market penetration of new energy commercial vehicles continues to increase with emerging
technological pathways constantly developing. Diversifying market demands and shifting policy
directions require companies to adapt to new market structures. As the new energy commercial
vehicle market rapidly expands competition is intensifying with traditional commercial vehicle
manufacturers accelerating transformation emerging companies entering the market and
businesses from adjacent industries diversifying into this sector. Simultaneously consumer
expectations for new energy products are rising with more stringent requirements regarding brand
reputation performance capabilities pricing and service quality. Coupled with national policy
initiatives competitive pressures are further intensifying making structural market changes
inevitable and resulting in unavoidable market share competition price wars and margin
compression.
(3) Policy change risk
The commercial vehicle industry is experiencing multifaceted regulatory changes. At the
national level these include: promoting compliance upgrades implementing new regulations for
truck body installation management enforcing stricter quality control and production consistency
standards and accelerating the elimination of non-compliant manufacturers; Stimulating market
demand through expanded vehicle trade-in incentives increasing scrapping subsidies for National IV
emission standard and older commercial trucks and enhancing subsidies for new energy vehicles;
Strengthening safety protocols through new national standards for hazardous materials transport
vehicle markings with clear classification labels and maintenance requirements. Local policies are
65Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
also undergoing various adjustments with increasingly significant industry impacts introducing
greater uncertainty to the commercial vehicle market.Based on the above risks the Company has prepared the following solutions:
(1) Accurately assess market conditions and adapt flexibly. Conduct thorough research on
domestic and international political and economic conditions comprehensively analyzing market
dynamics and potential risks. Continuously monitor policy developments and industry trends to
enable rapid strategic adjustments. Establish comprehensive market intelligence and environmental
monitoring systems to ensure timely access to complete information. Address market changes by
enhancing brand visibility through comprehensive marketing initiatives optimizing cost structures
advancing product technology and leveraging quality products and advanced technologies to
capture growth opportunities.
(2) Strengthen product and service foundations to build core competitive advantages.
Closely track emerging technologies in new energy and intelligent systems identifying market
needs and developing innovative competitive products. Thoroughly analyze customer service
requirements while enhancing service professionalism efficiency and customization to deliver
superior customer experiences and improve satisfaction and loyalty. Establish brand excellence
through technological innovation forward-thinking concepts and service enhancements to
strengthen the competitive position maintain market standing and avoid destructive price wars and
disorderly competition.
(3) Expand into key markets and capture global opportunities. Actively participate in the
global economy through systematic international strategic planning to establish a solid foundation for
export diversification. Leverage growing international recognition and leading new energy
technologies to develop customized products tailored to specific regional markets and individual
customer requirements enhancing product adaptability across diverse regions. Simultaneously
expand international distribution networks streamline overseas service operations improve response
times and service quality increase global market share and demonstrate international capabilities.XII. Reception Investigation Communication Interview and Other Activities in the
Reporting Period
□Applicable □Not applicable
Reception Receptio Reception Type of Main Index of
Reception Object
Time n Mode Receptio Content Basic
66Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Location n Object s of Informati
Discuss on of
ion and Investiga
Informa tion
tion
Provide
d
Century Securities Proprietary
Trading Changjiang Securities
(Shanghai) Asset Management
Co. Ltd. Huatai Securities
Asset Management (Equity)
Jinnian Invest Beijing Jiufu
Investment Management
Zhengyuan Investment Chaos
Investment China Post Life
Insurance Dacheng Fund
Management Co. Ltd. Mingya
Funds Point72 Hel Ved http://w
Operati
Capital Goldstate Capital Fund ww.cninf
on and
Management Dongxing Asset o.com.cn
develop
Management CITIC Securities /new/dis
ment
Proprietary Trading Taikang closure/s
plannin
Meeting Pension & Insurance Huajin tockstoc
Telephone g of the
January 24 room of Organiza Proprietary Trading Shanghai kCode=0
communic Compa
2024 the tion Stock Exchange Proprietary 00800&o
ation ny no
company Trading Bosc Asset rgld=gss
relevant
Management Dongxing z000080
informa
Proprietary Trading Yuanfeng 0&sjstsB
tion is
Fund Sequoia PIPE ond=fals
provide
Agricultural Bank of China e#researc
d
Fund Management ICBC h
Wealth Management Huarong
Proprietary Trading Gaoyi
Asset Management
Rosefinchfund Aspex
Shanghai Trend Investment
Zhonggen Funds Bosera Asset
Management ICBC-AXA
River Fund Caitong Fund
Management Zheshang
Securities Proprietary Trading
Huafu Fund Management
67Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
CITIC Prudential China
Resources Yuanda Fund
Management Guorong
Proprietary Trading Zheshang
Asset Management Neuberger
Berman Public Fund Shanghai
Tinnyinvest Taikang Asset
Management Cathay Life
Insurance SINO PARTNERS
FUND Jiutai Fund
Management High-Flyer
Invesco Great Wall Fund
Management Huashang Fund
Management Bosera Asset
Management Guohua Xingyi
Asset Management Allianz
SHEN ZHEN QIAN HAI HUA
SHAN CAPITAL Dunhe Fund
Zinggofund China Reform
Securities Origin Asset
Management Vanward
Proprietary Trading Shenzhen
Hongchou Investment.ICBC Credit Suisse Asset
Management China Life Asset
Management Qianhai United
Meeting
Asset Management Gaoyi
January 26 room of Field Organiza
Asset Management CICC
2024 the Research tion
Asset Management PICC
company
Pension Bosera Asset
Management Huachuang
Securities.TruValue Asset Management
Purekind Fund Management
Bleadfund Huatai-Pinebridge
Fund Management Everbright
Meeting
Telephone Pramerica Fund Management
February room of Organiza
communic Industrial Bank Proprietary
01 2024 the tion
ation Trading China Nature Asset
company
Management Harvest Fund
Management LONGRISING
Biyun Yinxia Investment
Pinpoint Zhengyuan
68Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Investment Research
Changjiang Securities
(Shanghai) Asset Management
Co. Ltd. HuaAn Funds Bosera
Asset Management
BlackRock Shanghai
Tourmaline Asset Management
Intewisecapital Hwabao WP
Fund Penghua Fund
Rosefinchfund Trivest
Advisors Heyong Invest
Zheshang Asset Management
FRANCHISE CAPITAL
Invesco Great Wall Fund
Management.Jt Asset Management Co. Ltd.China Reform Securities Co. L
td. Shenzhen Commando Capit
al Management Co. Ltd. Gold
en Nest Capital Management C
o. Ltd. Western Securities Co.Ltd. Zhongke Richland Asset
Management Co. Ltd. ICBC
Wealth Management Jilin Prov
ince Yandong State-Owned Cap
ital Investment Co. Ltd. Shenz
hen Yingda Securities Co. Ltd.Shanghai Longlife Investment
Beijing
April 02 Field Organiza Co. Ltd. Topsperity Securities
meeting
2024 Research tion Southwest Securities Co. Ltd.
room
Huachuang Securities Co. Lt
d. Dongxing Securities Corpor
ation Limited Minsheng Securi
ties Co. Ltd. CITIC Securities
Soochow Securities Co. Ltd.Guosheng Securities Co. Ltd.Haitong Securities Co. Ltd. Ci
nda Securities Co. Ltd. China
International Capital Corporati
on Limited (CICC) Shanxi Sec
urities Company Limited GF S
ecurities Co. Ltd. Shanghai G
uotai Junan Securities Asset Ma
69Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
nagement Co. Ltd. China Life
Pension Company Limited.Network
Meeting
platform Investors participating in FAW
April 17 room of
online Others Jiefang 2023 Annual
2024 the
communic Performance Presentation
company
ation
Sinolink Securities Co. Ltd. Z
heshang Securities Asset Mana
gement Co. Ltd. Langfang Hu
aAn Automotive Equipment C
o. Ltd. Western Securities Pro
prietary Trading China UnionP
ay Shanghai Heqing Investmen
t Management Co. Ltd. Shang
hai Tinnyinvestment Co. Ltd.Zheshang Securities Co. Ltd.HAWTAI Motor Group Co. Lt
d. Shanghai Guotai Junan Secu
rities Asset Management Co. L
td. Tianfeng Securities Co. Lt
d. Grace Chan Wealth Manage
ment (Shanghai) Wanjia Asset
Meeting
Telephone Management Co. Ltd. White S
April 30 room of Organiza
communic tream Fund Management Co. L
2024 the tion
ation td. Shenzhen Hongchou Invest
company
ment Co. Ltd. China Post & C
apital Fund Management Co. L
td. Minsheng Securities Co. L
td. Haitong Securities Co. Lt
d. Beijing Congluan Investmen
t Management Co. Ltd. Mings
hi Partners Fund Management
(Zhuhai) Co. Ltd. Changjiang
Securities Company Limited H
uachuang Securities Co.Ltd. Z
hongke Richland Asset Manage
ment Co. Ltd. Nanjing Guohai
Auto Parts Co. Ltd. Southwes
t Securities Co. Ltd. Shanghai
Minhang Financial Investment
Development Co. Ltd.May 29 Meeting Network Others Investors participating in the
70Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
2024 room of platform Online Collective Performance
the online Presentation of Listed
company communic Companies within the
ation Jurisdiction of Jilin
China Securities Co. Ltd.Meeting Yinhua Fund Management Co.June 25 room of Field Organiza Ltd. Shibei Investment
2024 the Research tion Management (Beijing) Co.
company Ltd. Zhejiang Jingan Private
Fund Co. Ltd.Guotai Leasing Limited Compa
ny Jilin State-owned Capital O
peration Group Co. Ltd. Shan
dong Guohui Investment Holdi
ng Group Co. Ltd. Cinda Secu
rities Co. Ltd. Jilin Yadong St
ate-owned Capital Investment
Co. Ltd. Changchun Changxin
g Fund China Logistics Group
Co. Ltd. China COSCO Shipp
ing Group Co. Ltd. Eastmoney
Meeting
Securities Co. Ltd. Soochow
June 28 room of Field Organiza
Securities Co. Ltd. Dongxing
2024 the Research tion
Securities Corporation Limited
company
Perseverance Asset Manageme
nt Sinolink Securities Co. Ltd.Shanghai Guotai Junan Securit
ies Asset Management Co. Lt
d. Huatai Securities Co. Ltd.CCB Trust Co. Ltd. Zhejiang J
ingan Private Fund Co. Ltd. L
ianchu Securities Co. Ltd. Chi
na Galaxy Securities Co. Ltd. P
roprietary Trading CITIC Secu
rities Co. Ltd.TruValue Asset Management
HGNH International Asset
Meeting Management (SG) PTE.LTD
Telephone
September room of Organiza ICBC AXA Life Insurance Co.communic
02 2024 the tion Ltd. China International
ation
company Capital Corporation Limited
(CICC) China Re Hongyun
Private Equity Fund
71Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Management (Hainan) Co.Ltd. Longwin Asset
Management Co. Ltd.Shanghai Yongxing Securities
Asset Management Co. Ltd.Shanghai Eureka Investment
Partner Co. Ltd. Changjiang
Securities (Shanghai) Asset
Management Co. Ltd. Wuxi
Innovation Investment Group
Co. Ltd. Chasing Securities
Co. Ltd. Lianchu Securities
Co. Ltd. Beijing Jingxing
Asset Management Co. Ltd.Donghai Securities Co. Ltd.JM GREAT CHINA FUND GF
Securities Co. Ltd. Jinxin
Asset Management Company
Limited Minsheng Securities
Co. Ltd. Daiwa Securities
(China) Co. Ltd. Ping An
Asset Management Co. Ltd.Minmetals International Trust
Co. Ltd. Purekind Fund
Management GreyStone
Managed Investments Inc
Dancheng Investment LYGH
Capital Pte. Ltd Topsperity
Securities Shanghai
Tinnyinvest Guotai Junan
Assets (Asia) Limited Sinolink
Securities Co. Ltd. China Post
Life Insurance Company
Limited Pinpoint Shanghai
Zhongyu Investment Co. Ltd.China Pacific Insurance
(Group) Co. Ltd. GAM
Dongxing Asset Management
Co. Ltd. Beijing Fuzhi
Investment Management Co.Ltd. Eastspring Asset
Management HongSheng
Asset Management Co. Ltd.
72Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Dacheng Fund Management
Co. Ltd. HOTEON Capital
Limited Shenzhen Zhongtian
Fortune Fund Management Co.Ltd.China Merchants Fund Manage
ment Co. Ltd. The Goldman S
achs Group Inc. Caitong Secu
rities Co. Ltd. China Great W
all Securities Co. Ltd. China I
nternational Capital Corporatio
n Limited (CICC) Shanxi Secu
rities Company Limited Zhong
ke Richland Asset Managemen
t Co. Ltd. GF Securities Co.Ltd. Jilin Province Private Equ
ity Co. Ltd. Chasing Securitie
s Co. Ltd. Shenzhen Qianhai
Luojia Fangyuan Asset Manag
ement Co. Ltd. Topsperity Se
curities Haitong Securities C
o. Ltd. Huaan Securities Co.Meeting Ltd. Sealand Securities Co. Lt
Telephone
October 29 room of Organiza d. Everbright Securities Comp
communic
2024 the tion any Limited Soochow Securiti
ation
company es Co. Ltd. Sinolink Securitie
s Co. Ltd. Minsheng Securitie
s Co. Ltd. Gfund Managemen
t Co. Ltd. CITIC Securities C
ompany Limited UBS Securiti
es Co. Ltd. Goldstate Capital
Fund Management Jt Asset M
anagement Co. Ltd. Springs
(Beijing) Investment Managem
ent Co. Ltd. Industrial Securit
ies Co. Ltd. Eastmoney Securi
ties Co. Ltd. Huatai Securities
Co. Ltd. Shanghai Chaos Inv
estment Lianchu Securities C
o. Ltd. Wanjia Asset Manage
ment Co. Ltd. Southwest Secu
rities Co. Ltd. Knight Investm
ent Management (Shanghai) C
73Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
o. Ltd. INSIGHTSH (SHAN
GHAI) EQUITY INVESTME
NT MANAGEMENT CO. LT
D. China Life AMP Asset Man
agement Co. Ltd. JYAH Asset
Management Co. Ltd. Heng
De Investment Management C
o. Ltd. Huachuang Securities
Co.Ltd. Cigna & CMB Asset
Management Company Limite
d Sino Life Asset Management
Co. Ltd. China Pacific Insura
nce (Group) Co. Ltd. Minshen
g Securities Co. Ltd. SHENZ
HEN KWT CO.LTD. Shangh
ai Chen Xiang Investment Man
agement Co. Ltd. Shenzhen Q
ianhai Changle Hui Investment
Co. Ltd. National Manufactur
ing Transformation and Upgrad
ing Fund Co. Ltd. Hunan Wan
tai Huarui Investment Manage
ment Co. Ltd. Taiping Pensio
n Company Limited Shenzhen
Hongchou Investment Co. Lt
d. Tianfeng Securities Co. Lt
d. Industrial Securities Co. Lt
d. Everbright Securities Comp
any Limited Cinda Securities
Co. Ltd. Founder Securities C
o. Ltd.XIII. 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 □No
In accordance with Article 8 of the "Regulatory Guidelines for Listed Companies No.10 -Market
74Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Capitalization Management" issued by the China Securities Regulatory Commission which
stipulates that "Companies included in major indices shall establish a market capitalization
management 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
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'".XIV. 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 to implement
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 the CPC and of
"vigorously improving the quality and investment value of listed companies taking more 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 and improves its internal control system.During the reporting period the Company revised several governance documents including the
75Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
"Articles of Association" "Independent Director Guidelines" and "Raised Funds Management
Policy." The Company 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 fully
demonstrates the intrinsic value of the Company and provides investors with an objective decision-
making basis. In recognition of these efforts the Company received an "A" rating for information
disclosure from the Shenzhen Stock Exchange this year. Through listing announcements brokerage
strategy meetings investor exchanges Interaction Easy telephone email and other channels the
Company ensures good communication with investors and builds an efficient and transparent
communication platform.The Company strictly implements the shareholder dividend return plan and profit distribution
policy and prepares the profit distribution plan based on its actual situation. For fiscal year 2023 the
Company distributed a cash dividend of 1.50 yuan (tax inclusive) per 10 shares based on a total of
4623863714 shares amounting to 693579557.10 yuan (tax inclusive). The remaining
undistributed profits were carried forward to the next fiscal year. The Company does not convert its
capital reserves into share capital. The ex-dividend date for this distribution is set for June 24 2024.For the fiscal year 2024 the proposed distribution plan is to pay a cash dividend of 0.50 yuan (tax
inclusive) per 10 shares based on 4922371176 shares totaling 246118558.80 yuan (tax inclusive).The remaining undistributed profits will be carried forward to the next fiscal year. The Company does
not convert its capital reserves into share capital. For any change to the total share capital of the
Company due to the equity incentive plan before the implementation of the distribution plan the cash
dividend of 0.50 yuan (tax inclusive) will be distributed to all shareholders per 10 shares based on the
total share capital registered on the date of record when the profit distribution plan is implemented in
the future and the specific amount will be subject to the actual distribution. The 2024 profit
distribution plan is subject to approval at the upcoming shareholders' meeting.
76Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Section IV Corporate Governance
I. Basic Information about Corporate Governance
In 2024 the Company strictly complied with the Company Law the Securities Law the Code of
Corporate Governance for Listed Companies the Rules Governing the Listing of Shares on Shenzhen
Stock Exchange and the Self-regulatory Guidelines of Shenzhen Stock Exchange for Listed Companies
No.1 - Standardized Operation of Main Board Listed Companies as well as relevant normative
documents of the China Securities Regulatory Commission and the Shenzhen Stock Exchange (SZSE)
and the Articles of Association. The Company continuously enhanced its corporate governance structure
strengthened its internal control system improved information disclosure quality and reinforced
investor relations management. The Company has established a governance structure with the
Shareholders' Meeting as the highest authority the Board of Directors as the decision-making body the
Board Committees as decision-support bodies the Board of Supervisors as the oversight body and the
Executive Management as the implementation body. Each entity has clearly defined responsibilities and
authorities fulfills its respective duties makes scientific decisions and operates in coordination.During the reporting period the Company revised and improved its Articles of Association Raised
Funds Management Policy Independent Director Guidelines and Rules of Procedure for the Strategic
Committee of the Board further enhancing the Company's regulatory compliance and operational
standards. At present the actual governance situation of the Company meets the requirements of the
China Securities Regulatory Commission's normative documents for the governance of listed companies.
1. Shareholders and shareholders' meeting
The Company strictly complies with the regulations and requirements of the Rules for Shareholders'
Meeting of Listed Companies the Self-regulatory Guidelines of Shenzhen Stock Exchange for Listed
Companies No.1 - Standardized Operation of Main Board Listed Companies and the Articles of
Association etc. and other relevant regulations to standardize the procedures for convening conducting
and voting at shareholders' meetings. All meetings incorporate both in-person and online voting options
to ensure that all shareholders particularly minority shareholders enjoy equal status and can fully
exercise their shareholder rights. When reviewing related party transactions at shareholders' meetings
the Company strictly enforces recusal procedures for related shareholders ensuring that such
transactions adhere to principles of fairness justice and transparency. The Company engages qualified
77Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
legal counsel to witness proceedings and issue legal opinions ensuring the regulatory compliance of all
shareholders' meetings.
2. Directors and the Board of Directors
The Company elects directors in strict accordance with the selection procedures stipulated in the
Company Law the Articles of Association and the Rules of Procedure for the Board of Directors. The
composition and qualifications of the Board members comply with relevant laws and regulations. During
the reporting period the Board of Directors convened and held meetings in accordance with its legally
mandated responsibilities. All directors performed their duties in compliance with applicable laws
faithfully fulfilled their responsibilities actively participated in Board and Shareholders' meetings
attended relevant training programs promoted standardized operations and sound decision-making
processes of the Board and protected the interests of the company and all shareholders. The Board of
Directors has established three committees: the Strategic Committee the Audit and Risk Control
Committee and the Compensation and Evaluation Committee. These Board committees provide expert
and professional recommendations to support Board decisions ensuring the soundness of the Board's
decision-making process.
3. Supervisors and the Board of Supervisors
The Company elects supervisors in strict accordance with the selection procedures stipulated in the
Company Law the Articles of Association and the Rules of Procedure for the Board of Supervisors. The
composition and qualifications of the members of the Board of Supervisors of the Company comply
with relevant laws and regulations. During the reporting period the Board of Supervisors convened and
held meetings in accordance with its legally mandated responsibilities. All supervisors attended the
supervisory board meetings as required diligently performed their duties and provided oversight and
opinions on the Company's periodic reports related-party transactions major asset restructuring other
significant matters and the performance of directors and senior management thereby protecting the
legitimate interests of the Company and its shareholders.
4. Relationship between controlling shareholders and listed companies
The Company maintains independence from its controlling shareholder in all aspects including
business personnel assets organization and finance and it possesses independent and comprehensive
business operations and autonomous management capabilities. Controlling shareholders of the Company
can regularize their own behaviors according to the Code of Corporate Governance for Listed Companies
the No.1 Guidelines for Self-discipline Supervision of Listed Companies - Standardized Operation of
78Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Listed Companies on the Main Board and the Articles of Association and do not interfere with the
operation and decision-making activities of the Company directly or indirectly without obtaining the
permission of the shareholders' meeting or occupy non-operational funds of the Company or obtain
guarantee from the Company.
5. Information disclosure and transparency
The Company strictly adheres to the "Administrative Measures for Information Disclosure of Listed
Companies" "Shenzhen Stock Exchange Stock Listing Rules" "No.1 Guidelines for Self-discipline
Supervision of Listed Companies - Standardized Operation of Listed Companies on the Main Board"
the "Articles of Association" and other regulations diligently fulfilling its information disclosure
obligations by releasing relevant information in a truthful accurate complete timely and fair manner;
The Company effectively manages the registration of insiders with access to non-public information
protecting investors' legitimate rights and interests; The Company assigns dedicated personnel to handle
investor relations management enhancing communication with investors through multiple channels
ensuring all shareholders have equal access to Company information.
6. Stakeholders
The Company actively fulfills its social responsibilities as a central state-owned enterprise
respecting and protecting stakeholders' legitimate rights and interests working to balance the interests
of shareholders employees society and other parties strengthening communication with all parties
legally safeguarding stakeholders' rights and jointly promoting the Company's sustainable stable and
healthy development.Whether there is a significant difference between the actual situation of corporate governance and
laws administrative regulations and the regulations on the governance of listed companies issued by
the China Securities Regulatory Commission
□Yes □No
There is no significant difference between the actual situation of corporate governance and laws
administrative regulations and the regulations on the governance of listed companies issued by the
China Securities Regulatory Commission.
79Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
II. Independence of the Company from Controlling Shareholders and Actual Controllers in
Terms of Guaranteeing the Company's Assets Personnel Finance Organizations and Business
The Company has independent and complete business and operation capacity and is completely
independent of controlling shareholders in terms of business personnel assets organizations finance
etc. Specific steps are as follows:
1. Business: The Company has independent business operation systems for procurement
production and sales possesses independent operation capacity and can organize and undertake
production and operation activities independently.
2. Personnel: The Company has an independent personnel management organization and system
and establishes an independent and complete salary management system. The senior executives of the
Company are full-time employees and receive salary from the Company.
3. Assets: The ownership of the Company's assets is clear and complete and no controlling
shareholders' assets are relied on for production and operation. The Company has rights to own control
dispose of and obtain earnings from its assets. No Company asset is occupied by controlling
shareholders.
4. Organization: The Company has an independent and complete organizational structure and
production and business premises. The Board of Directors the Board of Supervisors and other internal
organizations operate independently and do not work together with controlling shareholders.
5. Finance: The Company has an independent and complete financial department possesses a
perfect financial management system and accounting system opens an independent bank account and
pays taxes independently according to law.III. Horizontal Competition
□Applicable □Not applicable
Type of Work
Natur
Proble Relationshi Progress
Company e of
m p with Causes Solutions and
Name Comp
type Listed Follow-
any
Company up Plan
Horiz China In 2020 the listed Harbin Light Automobile Perform
ontal Controlling FAW Other company and FAW Hongta are in a as
comp shareholder Group Co. s completed a state of discontinuation promise
etition Ltd. major asset or loss currently with d
80Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
restructuring and heavy burden and
its main business unstable profitability.was changed to FAW promises that it will
the R&D entrust all shares of
production and Harbin Light Automobile
sales of and FAW Hongta under
commercial its actual control to
vehicles. FAW Jiefang Limited for
Harbin Light management and inject
Automobile Co. the equities of Harbin
Ltd. and FAW Light Automobile and
Hongta Yunnan FAW Hongta under its
Automobile actual control to listed
Manufacturing companies in batches or
Co. Ltd. which at one time in an
are members of appropriate way or
FAW Light transfer them to other
Commercial unrelated third parties at
Vehicle Co. Ltd. a reasonable price and in
a subsidiary of a reasonable way or
FAW are engaged prevent the light truck
in some light company from engaging
truck businesses. in light truck-related
There is a businesses by exercising
horizontal shareholders' rights and
competition or perform relevant internal
potential approval procedures as
horizontal soon as possible after the
competition above procedures are
between them and initiated within 12
the listed months after meeting the
company. requirements that the
return on net assets of
Harbin Light Automobile
and FAW Hongta is not
lower than that of listed
companies in the same
period and increasing the
81Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
earnings per share of
listed companies after
restructuring.In 2020 the listed Harbin Light Automobile
company and FAW Hongta are in a
completed a state of discontinuation
major asset or loss currently with
restructuring and heavy burden and
its main business unstable profitability.was changed to FAW Car Co. Ltd.the R&D promises that it will urge
production and to entrust all shares of
sales of Harbin Light Automobile
commercial and FAW Hongta under
vehicles. FAW its actual control to
Harbin Light Jiefang Limited for
Automobile Co. management and inject
Ltd. and FAW the equities of Harbin
Hongta Yunnan Light Automobile and
Horiz Perform
China Automobile FAW Hongta under its
ontal Controlling Other as
FAW Co. Manufacturing actual control to listed
comp shareholder s promise
Ltd. Co. Ltd. which companies in batches or
etition d
are members of at one time in an
FAW Light appropriate way or
Commercial transfer them to other
Vehicle Co. Ltd. unrelated third parties at
a subsidiary of a reasonable price and in
FAW Car Co. a reasonable way or
Ltd. are engaged prevent the light truck
in some light company from engaging
truck businesses. in light truck-related
There is a businesses by exercising
horizontal shareholders' rights and
competition or perform relevant internal
potential approval procedures as
horizontal soon as possible after the
competition above procedures are
between them and initiated within 12
82Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
the listed months after meeting the
company. requirements that the
return on net assets of
Harbin Light Automobile
and FAW Hongta is not
lower than that of listed
companies in the same
period and increasing the
earnings per share of
listed companies after
restructuring.IV. Information on Annual Shareholders' Meeting and Extraordinary Shareholders' Meeting
Held in the Reporting Period
1. Shareholders' meeting in the reporting period
Participati
Meeting on Ratio Date of
Session Date Meeting Resolution
Type of Disclosure
Investors
Reviewed and approved "The
Proposal on Estimated
Amount of Daily Related
Transactions in 2024" "The
Proposal on Estimated
First
Extraordin Amount of Financial Business
extraordinary
ary February February with First Automobile Finance
shareholders' 85.00%
shareholde 21 2024 22 2024 Co. Ltd. in 2024" "The
meeting of
rs' meeting Proposal on Electing Deng
2024
Weigong as a Non-
independent Director of the
Company" and "The Proposal
on Electing Li Ying as a
Supervisor of the Company."
Reviewed and approved "The
2023 Annual Annual
April 25 April 26 2023 Work Report of the
shareholders' shareholde 84.45%
2024 2024 Board of Directors" "The
meeting rs' meeting
2023 Work Report of the
83Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Board of Supervisors" "The
2023 Financial Statements"
"The 2023 Annual Report and
Summary Thereof" "The
2023 Profit Distribution
Plan" "The Proposal on
Unsuccessful Lifting of
Conditions of the Third
Release Period First Granted
by the Phase I Restricted
Share Incentive Plan for
Releasing the Restricted Sales
and of Conditions of the
Second Release Period
Reserved by the Phase I
Restricted Share Incentive
Plan for Releasing the
Restricted Sales and
Repurchase and Cancellation
of Some Restricted Shares"
"Proposal on Change of
Registered Capital of the
Company" "Proposal on
Amending the 'Articles of
Association'" and "Proposal
on Electing Wang Hao as a
Non-independent Director of
the Company."
Reviewed and approved
"Proposal on Extending the
Validity Period of the
Second
Extraordin Resolution Regarding 'The
extraordinary
ary June 19 June 20 Company's 2023 Non-public
shareholders' 84.11%
shareholde 2024 2024 Offering of A Shares'"
meeting of
rs' meeting "Proposal on Extending the
2024
Authorization Period for
'Requesting the Shareholders'
Meeting to Authorize the
84Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Board of Directors to Handle
Specific Matters Related to
this Non-public Offering of A
Shares'" and "Proposal on
Electing Chen Hua as a Non-
independent Director of the
Company."
Reviewed and approved
"Proposal on the Company
Meeting the Conditions for
Major Asset Disposal and
Related-Party Transaction"
"Proposal on the Company's
Major Asset Disposal and
Related-Party Transaction
Plan" (voted item by item
comprising 8 sub-proposals)
"Proposal on This
Restructuring Constituting a
Related-Party Transaction"
Third "Proposal on 'FAW Jiefang
Extraordin
extraordinary Group Co. Ltd. Major Asset
ary November November
shareholders' 7.08% Disposal and Related-Party
shareholde 21 2024 22 2024
meeting of Transaction Report (Draft)'
rs' meeting
2024 and its Summary" "Proposal
on Signing the Relevant
Agreements for This
Restructuring" "Proposal on
the Company's Restructuring
Complying with Article 11 of
the 'Administrative Measures
for Major Asset Restructuring
of Listed Companies'"
"Proposal on the Company's
Restructuring Complying
with Article 4 of the
'Regulatory Guidelines for
Listed Companies No.9 -
85Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Regulatory Requirements for
Listed Companies Planning
and Implementing Major
Asset Restructuring'"
"Proposal on the Company's
Restructuring Not
Constituting a Restructuring
Listing under Article 13 of the
'Administrative Measures for
Major Asset Restructuring of
Listed Companies'"
"Proposal on the
Completeness and
Compliance of Legal
Procedures Performed for
This Restructuring and the
Validity of Legal Documents
Submitted" "Proposal on the
Company's Purchase and Sale
of Assets in the 12 Months
Prior to This Restructuring"
"Proposal on Confirming the
Audit Reports Valuation
Reports and Revised Pro
Forma Review Reports
Related to This Major Asset
Disposal" "Proposal on the
Pricing Basis and Fair
Reasonableness of This
Restructuring" "Proposal on
the Independence of the
Valuation Institution the
Reasonableness of Valuation
Assumptions the Relevance
of Valuation Methods to
Valuation Objectives and the
Fairness of Valuation Pricing"
"Proposal on the Dilution of
86Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Immediate Returns from This
Restructuring and the
Company's Remedial
Measures" "Proposal on the
Relevant Parties of the
Company's Restructuring Not
Having the Circumstances
Specified in Article 12 of the
'Regulatory Guidelines for
Listed Companies No.7 -
Regulation of Abnormal Stock
Trading Related to Major
Asset Restructuring of Listed
Companies'" "Proposal on the
Explanation of Confidentiality
Measures and Confidentiality
System Adopted for This
Restructuring" and "Proposal
on Requesting the
Shareholders' Meeting to
Authorize the Board of
Directors and its Authorized
Representatives to Handle
Matters Related to This
Restructuring."
Reviewed and approved the
Proposal on Renewal of
Employment of Financial
Audit Institutions the
Fourth
Extraordin Proposal on Renewal of
extraordinary
ary November November Employment of Internal
shareholders' 17.01%
shareholde 29 2024 30 2024 Control Audit Institutions the
meeting of
rs' meeting Proposal on Change of
2024
Registered Capital of the
Company and the Proposal on
Amending the Articles of
Association
87Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
2. Preferred shareholders with resumed voting rights request to convene an extraordinary
shareholders' meeting
□Applicable □Not applicable
V. Directors Supervisors and Senior Executives
88Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
1. Basic Information
Numbe
Numbe
Number of r of
r of Number of
Shares Held Shares Reasons
Shares Other Shares Held
Emplo Ending at the Increas for the
Gend Start Date of Reduce Increase/D at the End
Name Age Position yment Date of Beginning ed in Increase or
er Tenure d in the ecrease of the
Status Tenure of the the Decrease
Current (share) Period
Period Current of Shares
Period (share)
(share) Period
(share)
(share)
Depart
Cancellati
Wu Chairman of ure October 30 December
Male 54 153130 -77708 75422 on through
Bilei the Board from 2023 26 2024
repurchase
office
In- Cancellati
Li Chairman of December April 23
Male 48 servic 129161 -65544 63617 on through
Sheng the Board 26 2024 2026
e repurchase
In-
Wang April 25 April 23
Male 54 Director servic
Hao 2024 2026
e
Cancellati
Depart
on through
Zhang ure March 08
Male 52 Director June 23 2020 153090 18851 -77687 56552 repurchase
Guohua from 2024
and
office
transfer
Depart
Bi
ure September May 09
Wenqu Male 52 Director
from 15 2021 2024
an
office
Liu In-
September April 23
Yancha Male 61 Director servic
1620222026
ng e
Deng Male 58 Director In- February 21 April 23
89Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Weigon servic 2024 2026
g e
In-
Chen Fem April 23
56 Director servic June 19 2024
Hua ale 2026
e
Han In-
Independent April 22 April 23
Fangmi Male 58 servic
director 2020 2026
ng e
Mao In-
Independent April 22 April 23
Zhihon Male 63 servic
director 2020 2026
g e
Dong In-
Independent April 22 April 23
Zhongl Male 60 servic
director 2020 2026
ang e
Chairman of In-
Fem March 28 April 23
Li Ying 51 Board of servic
ale 2024 2026
Supervisors e
Depart
Chairman of
Yan ure December January 17
Male 58 Board of
Feng from 29 2023 2024
Supervisors
office
In-
Xu Employee April 22 March 17
Male 60 servic
Haigen Supervisor 2020 2025
e
In-
Wang Employee April 22 April 23
Male 56 servic
Lijun Supervisor 2020 2026
e
In-
Duan Employee April 22 April 23
Male 54 servic
Yinghui Supervisor 2020 2026
e
Depart
Ren Employee ure April 22 March 08
Male 41
Ruijie Supervisor from 2020 2024
office
Li Male 48 General Depart October 30 December
90Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Sheng Manager ure 2023 26 2024
from
office
Yu In-
General December April 23
Changx Male 52 servic
Manager 26 2024 2026
in e
Executive Depart
Yu
Deputy ure November December
Changx Male 52
General from 28 2022 26 2024
in
Manager office
Depart
Deputy Cancellati
ure October 19 December
Ji Yizhi Male 55 General 129161 -65544 63617 on through
from 2022 26 2024
Manager repurchase
office
Deputy In- Cancellati
Wang March 28 April 23
Male 45 General servic 129161 -65544 63617 on through
Jianyu 2024 2026
Manager e repurchase
Depart
Deputy Cancellati
Tian ure October 19 March 08
Male 52 General 129161 -65544 63617 on through
Haifeng from 2022 2024
Manager repurchase
office
Secretary of In- Cancellati
Wang April 23
Male 41 the Board of servic July 23 2020 129161 -65544 63617 on through
Jianxun 2026
Directors e repurchase
Total -- -- -- -- -- -- 952025 0 18851 -483115 450059 --
Whether any director or supervisor during the term of office leaves office or any senior executive is dismissed in the reporting period
□Yes □No
On January 18 2024 the Company disclosed the Announcement of Changing the Supervisor of the Company. Mr. Yan Feng applied to resign
from his posts as the Chairman and the Supervisor of the 10th Board of Supervisors of the Company due to personal reasons. On March 11 2024
the Company separately disclosed the Announcement on Resignation of Directors and Senior Executives and the Announcement on Resignation
of Supervisors. Mr. Zhang Guohua applied to resign from his post as a Director of the Company due to job changes. Mr. Ren Ruijie has submitted
his resignation as the Company's supervisor due to job reassignment; Mr. Tian Haifeng has submitted his resignation as the Company's Deputy
91Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
General Manager due to job reassignment. On May 10 2024 the Company disclosed the "Announcement on the Resignation of a Company
Director" stating that Mr. Bi Wenquan has submitted his resignation as a Company director due to work reassignment. On December 27 2024
the Company disclosed the "Announcement on Changes to the Company's Chairman and Senior Management" stating that Mr. Wu Bilei has
submitted his resignation as Chairman of the Tenth Board of Directors director and member of the Board specialized committees due to work
arrangements; Mr. Li Sheng will assume the position of Company Chairman and has submitted his resignation as General Manager; Mr. Yu
Changxin will assume the position of General Manager and has submitted his resignation as Executive Deputy General Manager; Mr. Ji Yizhi has
submitted his resignation as Deputy General Manager due to job reassignment. On March 18 2025 the Company disclosed the "Announcement
on Resignation of Supervisors" stating that Mr. Xu Haigen has submitted his resignation as Company supervisor due to statutory retirement.For details please refer to the announcements by the Company in the Securities Times China Securities Journal and CNINFO
(http://www.cninfo.com.cn).
92Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Changes in Directors Supervisors and Senior Management of the Company
□Applicable □Not applicable
Name Position Type Date Reason
Chairman of the Departure
Wu Bilei December 26 2024 Job transfer
Board from office
Zhang Departure
Director March 08 2024 Job transfer
Guohua from office
Departure
Bi Wenquan Director May 09 2024 Job transfer
from office
Chairman of
Departure
Yan Feng Board of January 17 2024 Personal reasons
from office
Supervisors
Departure
Ren Ruijie Supervisor March 08 2024 Job transfer
from office
General
Li Sheng Dismissal December 26 2024 Job transfer
Manager
Executive December 26 2024
Yu
Deputy General Dismissal Job transfer
Changxin
Manager
Deputy General December 26 2024
Ji Yizhi Dismissal Job transfer
Manager
Tian Deputy General
Dismissal March 08 2024 Job transfer
Haifeng Manager
2. Employment status
Professional background main work experience and main responsibilities of current directors
supervisors and senior executives of the Company
Director:
Mr. Li Sheng is currently the Chairman and Secretary of the Party Committee of the Company
as well as the Executive Director and Secretary of the Party Committee of Jiefang Co. Ltd. He has
served successively as Assistant Director of Commercial Vehicle Development Institute of Jiefang
Limited and Senior Manager and R&D Department of Qingdao Vehicle Division (FAW Jiefang
Qingdao Automobile Plant); Deputy General Manager of Jiefang Limited Qingdao Vehicle Division
93Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(Qingdao Company) and Assistant Director of Commercial Vehicle Development Institute; Deputy
Director of Commercial Vehicle Development Institute of Jiefang Limited and Deputy General
Manager and R&D Department Director of Qingdao Vehicle Division (FAW Jiefang Qingdao
Automobile Plant); Executive Deputy General Manager and R&D Department Director of Qingdao
Vehicle Division (FAW Jiefang Qingdao Automobile Plant); Deputy General Manager of the
Company and Deputy General Manager of Jiefang Limited General Manager and Party Committee
Secretary of Qingdao Vehicle Division (FAW Jiefang Qingdao Automobile Plant) General Manager
of the Medium and Heavy Vehicle Product Line of the Qingdao Vehicle Division and General
Manager of the Light Vehicle Product Line; General Manager and Deputy Party Committee Secretary
of the Company and General Manager and Deputy Party Committee Secretary of Jiefang Limited.Mr. Wang Hao is currently the Deputy Secretary of the Party Committee and Chairman of the
Labor Union of the Company and the Deputy Secretary of the Party Committee and Chairman of the
Labor Union of Jiefang Limited. He has served successively as Deputy Party Committee Secretary
Discipline Committee Secretary and Labor Union Chairman of FAW Toyota Changchun Engine Co.Ltd.; Deputy Party Committee Secretary Discipline Committee Secretary and Labor Union
Chairman of FAW Toyota Automobile Sales Co. Ltd.; Deputy Director of China FAW Supervision
Department; Standing Committee Member of China FAW Discipline Committee; and Director of
China FAW Party Committee Inspection Office.Mr. Liu Yanchang is currently a full-time external director and convener/team leader of the
subsidiary of FAW Financial Management Department (Office of the Board of Directors). He has
served successively as the Deputy Secretary of the Party Committee Secretary of the Commission
for Discipline Inspection and Chairman of the Labor Union of Jiefang Limited Deputy Secretary of
the Party Committee and Chairman of the Labor Union of FAW Jiefang Deputy Secretary of the
Party Committee Head of the Labor Union and Chairman of the Labor Union of FAW-Volkswagen
Automobile Co. Ltd.Mr. Deng Weigong is currently a full-time external director of the subsidiary of the Financial
Management Department (Office of the Board of Directors) of FAW Group. He has served
successively as the General Manager and Secretary of the Party Committee of FAW Toyota
Changchun Engine Co. Ltd. Deputy Secretary of the Party Committee Secretary of the Discipline
Inspection Commission and Chairman of the Labor Union of Tianjin FAW Toyota Motor Co. Ltd.Chairman and Secretary of the Party committee of FAW Foundry Co. Ltd.
94Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Ms. Chen Hua is currently a part-time external director of the subsidiary of the Financial
Management Department (Office of the Board of Directors) of FAW Group. She has served
successively as the Manager of the Product Control Section of FAW-Volkswagen Automobile Co.Ltd. the Director of the Product Control Department of FAW-Volkswagen Automobile Co. Ltd. and
the Director of Control of FAW-Volkswagen Automobile Co. Ltd.Mr. Han Fangming is currently the President of the Chahar Institute and a senior consultant to
the Board of Directors of TCL Technology Group Co. Ltd. He is also the Vice Chairman of China
Overseas-educated Scholars Development Foundation the Deputy Editor-in-Chief of Public
Diplomacy Quarterly of CICG the Vice Chairman of China National Association For International
Studies the Vice Chairman of China Southeast Asian Research Association the Director of the
National Council of the Chinese People's Association for Friendship with Foreign Countries and the
Director of Chinese People's Institute of Foreign Affairs. He has served successively as a member of
the 10th 11th 12th and 13th CPPCC and served as the deputy director of the Foreign Affairs
Committee of the National Committee of the CPPCC for three consecutive terms from 2008 to March
2023.
Mr. Mao Zhihong is currently the Professor and Doctoral Supervisor of the Department of
Accounting School of Business and Management Jilin University. He has served successively as the
Associate Professor of Jilin University of Finance and Trade (which was renamed Changchun
University of Taxation i.e. the current Jilin University of Finance and Economics).Mr. Dong Zhonglang is currently the managing partner of Zhuhai Yinshan Capital Equity
Investment Management Co. Ltd. He has served successively as the Director of Linde (Xiamen)
Forklift Co. Ltd. the General Manager of Shanghai Oulin Logistics Co. Ltd. the Logistics Director
of Weichai Power Group and the partner of Eastern Bell Capital (Shanghai).Supervisor:
Ms. Li Ying is currently the Deputy General Manager of the Audit and Legal Affairs
Department and the Chief Auditor of FAW Group. She has served successively as the Senior Expert
of the Audit Department of FAW Group the Senior Director of the Audit and Legal Affairs
Department of FAW Group and the Director of the Management Audit Department of the Audit and
Legal Affairs Department of FAW Group.Mr. Xu Haigen has served successively as the Deputy General Manager of the Wuxi Diesel
Engine Branch of Jiefang Limited the Deputy Secretary of the Party Committee Secretary of the
95Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Commission for Discipline Inspection and Chairman of the Labor Union of Wuxi Diesel Engine
Factory of Jiefang Limited the Deputy Secretary of the Party Committee Secretary of the
Commission for Discipline Inspection and Chairman of the Labor Union of Engine Division of
Jiefang Business Headquarters and the Deputy Secretary of the Party Committee Secretary of the
Commission for Discipline Inspection and Chairman of the Labor Union of Engine Division of
Jiefang Limited.Mr. Wang Lijun is currently the General Manager and Secretary of the Party Committee of
FAW Jiefang Intelligent Logistics Co. Ltd. He has served successively as the Deputy Secretary of
the Party Committee (who is responsible for presiding over the work) the Secretary of the
Commission for Discipline Inspection and the Chairman of the Labor Union of the Distribution
Center of FAW Car the Manager of the Distribution Plant of FAW-Volkswagen Automobile Co.Ltd. the Director of the Powertrain Division of FAW-Volkswagen Automobile Co. Ltd. and the
Manager of the Changchun Distribution Plant the Director of the Distribution Center and Secretary
of the Party Committee of FAW Car and the Deputy Secretary of the Party Committee Secretary of
the Discipline Inspection Commission and Chairman of the Labor Union of the Transmission
Division of Jiefang Limited and the Deputy Secretary of the Party Committee Secretary of the
Commission for Discipline Inspection and Head of the Labor Union of Qingdao Vehicle Division
(FAW Jiefang Qingdao Automobile Plant) as well as the Deputy Secretary of the Party Committee
Secretary of the Commission for Discipline Inspection and President of the Labor Union of Qingdao
Vehicle Division (FAW Jiefang Qingdao Automobile Plant).Mr. Duan Yinghui is currently the Deputy General Manager of Qingdao Vehicle Division
(FAW Jiefang Qingdao Automobile Plant) of Jiefang Limited the Manager of Qingdao Factory and
the Safety Director of FAW Jiefang (Qingdao) Automotive Co. Ltd.. He has served successively as
the Deputy General Manager of FAW Jiefang (Qingdao) Automotive Co. Ltd. the Deputy Director
of FAW Jiefang Product Management Department the Deputy Secretary of the Party Committee
Secretary of the Discipline Inspection Commission and Head of the Labor Union of Qingdao Vehicle
Division (FAW Jiefang (Qingdao) Automotive Co. Ltd.) of FAW Jiefang Business Headquarters
and the Deputy Secretary of the Party Committee Secretary of the Discipline Inspection Commission
and Chairman of the Labor Union of FAW Jiefang Qingdao Vehicle Division (FAW Jiefang (Qingdao)
Automotive Co. Ltd.) and the Manager and Secretary of the Party Committee of the Truck Factory
of Jiefang Limited.
96Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Senior executives other than directors and supervisors:
Mr. Yu Changxin is currently the General Manager and Deputy Secretary of the Party
Committee of the Company as well as the General Manager and Deputy Secretary of the Party
Committee of Jiefang Limited. He has successively served as the Deputy Director of Marketing
Headquarters (Deputy General Manager of FAW Jiefang Automobile Sales Company) of Jiefang
Limited. and the Deputy General Manager of Qingdao Vehicle Division (FAW Jiefang Qingdao
Automobile Plant) the General Manager of the Commercial Vehicle Overseas Marketing Department
of Jiefang Limited. and Deputy General Manager of China FAW Group Import & Export Co. Ltd.the General Manager and Deputy Secretary of the Party Committee of China FAW Group Import &
Export Co. Ltd. the Executive Deputy General Manager of FAW Jiefang the Deputy General
Manager of the Company and the General Manager of the Overseas Product Line Executive Deputy
General Manager of the Company and Executive Deputy General Manager of Jiefang Limited.Mr. Wang Jianyu is currently the Deputy General Manager of the Company and the Deputy
General Manager of Jiefang Limited the President and Secretary of the Party Committee of the
Commercial Vehicle Development Institute. He has successively served as the Chief Steering
Development Officer of the Commercial Vehicle Development Institute of Jiefang Limited the
Director of the Chassis Development Department of the Commercial Vehicle Development Institute
and the Vice President of the Commercial Vehicle Development Institute.Mr. Wang Jianxun is currently the Secretary of the Board of Directors and Director of the
Capital Operation Department of the Company. He has served successively as the Deputy Office
Director and Office Director of the Board of Directors of TCL Group Co. Ltd. the Deputy General
Manager of Shenzhen Create Century Machinery Co. Ltd. etc.Status of the post held in the form of shareholders
□Applicable □Not applicable
Whether
Remunerati
Name of Ending on and
Name of Position in the
Employe Start Date of Tenure Date of Allowance
Shareholder Shareholder
es Tenure are
Received
from the
97Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Shareholder
Full-time external
director convener/team
Liu China FAW leader of a subsidiary of
Yanchan Group Co. the Financial July 01 2022 Yes
g Ltd. Management Department
(Office of the Board of
Directors)
Full-time external
director of a subsidiary
China FAW
Deng of the Financial
Group Co. October 01 2023 Yes
Weigong Management Department
Ltd.(Office of the Board of
Directors)
China FAW Part-time external
Group Co. director of a subsidiary
Chen Ltd. of the Financial
May 01 2024 Yes
Hua Management Department
(Office of the Board of
Directors)
China FAW Deputy General Manager
Group Co. of the Audit and Legal
Li Ying Ltd. Affairs Department and September 01 2022 Yes
the Chief Auditor of
FAW Group
Position in other organizations
□Applicable □Not applicable
Whether
Remunerati
Name of Ending
Name of Other Position in Other on and
Employee Start Date of Tenure Date of
Organizations Organizations Allowance
s Tenure
are
Received
98Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
from Other
Organizatio
ns
Han Chahar
President October 01 2009 Yes
Fangming Institute
Professor and
Doctoral
Supervisor of the
Mao Jilin Department of
November 01 2000 Yes
Zhihong University Accounting
School of
Business and
Management
Zhuhai
Yinshan
Dong Capital Equity
Managing Partner May 01 2017 Yes
Zhonglang Investment
Management
Co. Ltd.Penalties imposed by securities regulatory authorities in the past three years on directors
supervisors and senior executives currently in office or leaving office in the reporting period
□Applicable □Not applicable
3. Remuneration of Company's Directors Supervisors and Senior Executives
Decision-making procedure determination basis and actual payment of remuneration for directors
supervisors and senior executives
Decision-Making Only the remuneration for directors (excluding independent directors) and
Process of supervisors currently in office shall be paid and the remuneration for directors
Compensation of and supervisors who have left the office shall be paid by their employers. The
Directors remuneration paid by the Company to relevant directors supervisors and senior
Supervisors and executives shall be determined by the Board of Directors.Senior
Management
99Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Directors (excluding independent directors) supervisors and senior management
Decision Basis of who receive compensation from the Company follow an annual compensation
Compensation of system that consists of three main components: base salary performance-based
Directors bonus and tenure incentive. The performance-based bonus is determined
Supervisors and according to indicators including the Company's operating results performance
Senior evaluation and fulfillment of duties during the reporting period. The tenure
Management incentive is determined according to indicators including operating results
performance evaluation and fulfillment of duties during the term of office.During the reporting period the total compensation paid to directors (excluding
independent directors) supervisors and senior management amounted to 11.8691
Remuneration
million yuan (including tax); a total of 450 thousand yuan (tax inclusive) of
Paid to Directors
allowances was paid to independent directors and reasonable expenses (including
Supervisors and
travel expenses office expenses training expenses etc.) required to attend the
Senior
Company's Board of Directors shareholders' meeting and exercise their functions
Management
and powers in accordance with relevant regulations can be reimbursed by the
Company on actual circumstances.Compensations of Directors Supervisors and Senior Executives of the Company in the Reporting
Period
Unit: 10 thousand yuan
Whether
Total Pre- remuneratio
Number
tax n is
Empl of
Compensati obtained
oyme months
Name Gender Age Position on from
nt of
Received related
Status receiving
from the parties of
salary
Company the
Company
Depar
Chairman of ture 6
Wu Bilei Male 54
the Board from 79.16 Yes
office
Li Sheng Male 48 Chairman of In- 150.28 No
100Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
the Board servic 12
e
In-
Wang Hao Male 54 Director servic 10 102.37 No
e
Depar
Zhang ture
Male 52 Director
Guohua from 2 23.35 No
office
Depar
Bi ture
Male 52 Director Yes
Wenquan from
office
In-
Liu
Male 61 Director servic Yes
Yanchang
e
In-
Deng
Male 58 Director servic Yes
Weigong
e
In-
Chen Hua Female 56 Director servic Yes
e
In-
Han Independent
Male 58 servic 15 No
Fangming director
e
In-
Mao Independent
Male 63 servic 15 No
Zhihong director
e
In-
Dong Independent
Male 60 servic 15 No
Zhonglang director
e
Chairman of In-
Li Ying Female 51 Board of servic Yes
Supervisors e
Depar
Chairman of
ture
Yan Feng Male 58 Board of Yes
from
Supervisors
office
Employee In-
Xu Haigen Male 60 No
Supervisor servic 12 81.87
101Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
e
In-
Wang Employee
Male 56 servic 12 88.60 No
Lijun Supervisor
e
In-
Duan Employee
Male 54 servic 12 105.36 No
Yinghui Supervisor
e
Depar
Employee ture
Ren Ruijie Male 41 No
Supervisor from 2 17.24
office
In-
Yu General
Male 52 servic 12 142.45 No
Changxin Manager
e
Depar
Deputy
ture
Ji Yizhi Male 55 General No
from 12 133.43
Manager
office
Deputy In-
Wang
Male 45 General servic 12 113.73 No
Jianyu
Manager e
Depar 1
Deputy
Tian ture
Male 52 General 12.13 No
Haifeng from
Manager
office
Secretary of In-
Wang
Male 41 the Board of servic 12 136.94 No
Jianxun
Directors e
Total -- -- -- -- 1231.91 --
Other situations
□Applicable □Not applicable
VI. Performance of Duties by Directors in the Reporting Period
1. Information of the Board of Directors during the reporting period
Date of
Session Date Meeting Resolution
Disclosure
The 9th Meeting January 17 January 18 Reviewed and approved 'The Proposal on Electing
of the 10th Board 2024 2024 Deng Weigong as a Non-independent Director of the
102Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
of Directors Company'
Reviewed and approved the "The Proposal on
Estimated Amount of Daily Related Transactions in
2024" "The Proposal on Estimated Amount of
Financial Business with First Automobile Finance
Co. Ltd. in 2024" "Proposal on the Company's
The 10th Meeting Establishment of Designated Accounts for Raised
January 30 January 31
of the 10th Board Funds and Authorization to Sign Raised Funds
20242024
of Directors Supervision Agreement" "2024 Equity Investment
Plan" "2024 Fixed Asset Investment Plan"
"Proposal on By-election of Members to the Board's
Strategy Committee" and "Proposal on Convening
the First Extraordinary Shareholders' Meeting of
2024."
Reviewed and approved the "2023 Annual
Operations Summary and 2024 Annual Operations
Plan" "The 2023 Work Report of the Board of
Directors" "The 2023 Financial Statements and The
2024 Financial Statements" "The 2023 Annual
Report and Summary Thereof" "Proposal on Asset
Impairment Provisions for the Second Half of 2023"
"Proposal on Risk Assessment Report of First
Automobile Finance Co. Ltd." "2023 Annual Profit
Distribution Plan" "2023 Environmental Social and
Governance (ESG) Report" "Proposal on Adjusting
The 11th Meeting
March 28 March 30 Members of the Board's Audit and Risk Control
of the 10th Board
2024 2024 Committee" "Proposal on By-election of Members
of Directors
to the Board's Strategy Committee" "Proposal on
Electing Wang Hao as a Non-independent Director
of the Company" "Proposal on Appointing
Company Deputy General Manager" "2023 Annual
Internal Control Evaluation Report" "2023 Annual
Rule of Law Implementation and Compliance
Management Report" "2023 Annual Internal Audit
Report" "2023 Annual Internal Control
Development Report" "The Proposal on
Unsuccessful Lifting of Conditions of the Third
Release Period First Granted by the Phase I
103Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Restricted Share Incentive Plan for Releasing the
Restricted Sales and of Conditions of the Second
Release Period Reserved by the Phase I Restricted
Share Incentive Plan for Releasing the Restricted
Sales and Repurchase and Cancellation of Some
Restricted Shares" "Proposal on Change of
Registered Capital of the Company" "Proposal on
Amending the 'Articles of Association'" "Proposal
on Amending the 'Raised Funds Management
System'" "Proposal on Amending the 'Independent
Director Working Rules'" "Proposal on Convening
the 2023 Annual Shareholders' Meeting"
"Communicating Key Policy Directives and
Important Meeting Guidance from the CPC Central
Committee State Council and State-owned Assets
Supervision and Administration Commission";
Received briefings on: "Report on Implementation
of Board Resolutions" "Report on Implementation
of Board Authorizations" "Quarterly Feedback on
Full-time External Directors' Opinions" "Report on
Implementation of Company Strategic Planning"
"Report on the Accounting Firm's 2023 Annual
Audit" and "2023 Annual Independent Directors'
Performance Report."
Reviewed and approved the "Report on the First
Quarter of 2024" and "Proposal on Establishing FAW
Jiefang International Trade Co. Ltd."; Received:
"Communicating Key Policy Directives and
The 12th Meeting Important Meeting Guidance from the CPC Central
April 29 April 30
of the 10th Board Committee State Council and State-owned Assets
20242024
of Directors Supervision and Administration Commission";
Heard briefings on: "Report on Business Operations
for the First Quarter of 2024" and "Report on
Implementation of Board Resolutions for the First
Quarter of 2024."
The 13th Meeting Reviewed and approved the "2023 Performance
May 27
of the 10th Board - Evaluation Results of Senior Executives" "2023
2024
of Directors Performance Assessment and Remuneration
104Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Encashment Plan for Senior Executives" "2024
Total Salary and Labor Cost Plan" "2024
Performance Appraisal Indicator Plan" "2024
Performance Assessment Indicator Plan for Senior
Executives" and "2024 Base Salary Plan for Senior
Executives."
Reviewed and approved the "Proposal on Extending
the Validity Period of the Resolution Regarding 'The
Company's 2023 Non-public Offering of A Shares'"
"Proposal on Extending the Authorization Period for
The 14th Meeting 'Requesting the Shareholders' Meeting to Authorize
June 03 June 04
of the 10th Board the Board of Directors to Handle Specific Matters
20242024
of Directors Related to this Non-public Offering of A Shares'"
and "Proposal on Electing Chen Hua as a Non-
independent Director of the Company" and
'Proposal on Convening the 2024 Second
Extraordinary General Meeting'.Reviewed and approved the "2024 First Half
Operations Summary and Second Half Operations
Plan" "2024 Semi-annual Report and its Summary"
"Proposal on Risk Assessment Report of First
Automobile Finance Co. Ltd." "Proposal on Asset
Impairment Provisions for the First Half of 2024"
"Plan for Company Organizational Structure
Adjustment" "Mid-year Adjustment to the 2024
Fixed Assets Investment Plan" "Mid-year
The 15th Meeting Adjustment to the 2024 Equity Investment Plan"
August 29 August 31
of the 10th Board and "2024 Internal Audit Semi-annual Report";
20242024
of Directors Received: "Communicating Key Policy Directives
and Important Meeting Guidance from the CPC
Central Committee State Council and State-owned
Assets Supervision and Administration
Commission"; Heard briefings on: "Report on
Implementation of Company Strategic Planning"
"Report on Implementation of Board Authorizations
for the First Half of 2024" and "Report on
Implementation of Board Resolutions for the First
Half of 2024."
105Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Reviewed and approved the 'Proposal on Adjusting
The 16th Meeting
October 17 October 18 the Amount of Raised Funds to be Invested in
of the 10th Board
2024 2024 Fundraising Projects' and 'Proposal on Adding
of Directors
Implementation Entities for Fundraising Projects'
Reviewed and approved the "Company Medium and
Long-term Development Plan" "2024 Third Quarter
Report" "Amendment to the 'Rules of Procedure for
the Board's Strategy Committee'" "Proposal on
Using Raised Funds to Replace Previously Invested
Self-raised Funds" "Proposal on Using Bank
Acceptance Bills to Pay for Fundraising Project
Expenses and Equivalent Replacement with Raised
Funds" "Proposal on Using Temporarily Idle Raised
Funds for Cash Management and Depositing Raised
Funds as Agreement Deposits" "Proposal on the
Company Meeting the Conditions for Major Asset
Disposal and Related-Party Transaction" "Proposal
on the Company's Major Asset Disposal and Related-
Party Transaction Plan" "Proposal on This
Restructuring Constituting a Related-Party
The 17th Meeting
October 25 October 29 Transaction" "Proposal on 'Major Asset Disposal
of the 10th Board
2024 2024 and Related-party Transaction Report (Draft) of
of Directors
FAW Jiefang Group Co. Ltd.' and its Summary"
"Proposal on Signing the Relevant Agreements for
This Restructuring" "Proposal on the Company's
Restructuring Complying with Article 11 of the
'Administrative Measures for Major Asset
Restructuring of Listed Companies" "Proposal on
the Company's Restructuring Complying with
Article 4 of the 'Regulatory Guidelines for Listed
Companies No.9 - Regulatory Requirements for
Listed Companies Planning and Implementing
Major Asset Restructuring'" "Proposal on the
Company's Restructuring Not Constituting a
Restructuring Listing under Article 13 of the
'Administrative Measures for Major Asset
Restructuring of Listed Companies'" "Proposal on
the Completeness and Compliance of Legal
106Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Procedures Performed for This Restructuring and the
Validity of Legal Documents Submitted" "Proposal
on the Company's Purchase and Sale of Assets in the
12 Months Prior to This Restructuring" "Proposal on
Approving Related Audit Reports Pro Forma
Review Reports and Valuation Reports for this
Restructuring" "Proposal on the Pricing Basis and
Fair Reasonableness of This Restructuring"
"Proposal on the Independence of the Valuation
Institution the Reasonableness of Valuation
Assumptions the Relevance of Valuation Methods to
Valuation Objectives and the Fairness of Valuation
Pricing" "Proposal on the Dilution of Immediate
Returns from This Restructuring and the Company's
Remedial Measures" "Proposal on the Relevant
Parties of the Company's Restructuring Not Having
the Circumstances Specified in Article 12 of the
'Regulatory Guidelines for Listed Companies No.7 -
Regulation of Abnormal Stock Trading Related to
Major Asset Restructuring of Listed Companies'"
"Proposal on the Explanation of Confidentiality
Measures and Confidentiality System Adopted for
This Restructuring" "Proposal on Requesting the
Shareholders' Meeting to Authorize the Board of
Directors and its Authorized Representatives to
Handle Matters Related to This Restructuring" and
"Proposal on Temporarily Not Convening a
Shareholders' Meeting"; Received: "Communicating
Key Policy Directives and Important Meeting
Guidance from the CPC Central Committee State
Council and State-owned Assets Supervision and
Administration Commission"; Heard briefings on:
"Report on Business Operations for the Third
Quarter of 2024" and "Report on Implementation of
Board Resolutions for the Third Quarter of 2024."
The 18th meeting Reviewed and approved the "Proposal on
November November
of the 10th Board Confirming the Audit Reports Valuation Reports
102024112024
of Directors and Revised Pro Forma Review Reports Related to
107Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
This Major Asset Disposal" "Proposal on the
Cancellation of Certain Resolutions of the Third
Extraordinary General Meeting of Shareholders in
2024" and "Proposal on Postponing the Third
Extraordinary General Meeting of Shareholders in
2024"
Reviewed and approved the "Proposal on Renewal
of Employment of Financial Audit Institutions"
"Proposal on Renewal of Employment of Internal
The 19th meeting
November November Control Audit Institutions" "Proposal on Change of
of the 10th Board
13 2024 14 2024 Registered Capital of the Company" "Proposal on
of Directors
Amending the 'Articles of Association'" and
"Proposal on Convening the Fourth Extraordinary
General Meeting of Shareholders in 2024"
Reviewed and approved the "Proposal on
The 20th Meeting
December December Organizational Structure Adjustment" and the
of the 10th Board
20 2024 21 2024 "Proposal on the Acquisition of Equity in FAW
of Directors
(Africa) Investment Co. Ltd."
Reviewed and approved the "Proposal on the
The 21st Meeting Election of the Company's Chairman" the "Proposal
December December
of the 10th Board on the Appointment of the General Manager" and
262024272024
of Directors the "Proposal on Establishing a Market Value
Management System"
2. Attendance of Directors at the Meeting of the Board of Directors and Shareholders'
Meeting
Attendance of Directors at the Meeting of the Board of Directors and the Shareholders' Meeting
Failure to
Number
Number Number Attend
of
Number of of Number the
Meetings
of Meetings Meetings of Meeting Number
of the
Meetings of the of the Absences of the of
Board of
Name of of the Board of Board of from the Board of Sharehold
Directors
Director Board of Directors Directors Meeting Directors ers'
to be
Directors Attended Attended of the in Person Meetings
Attended
Attended via by Board of for Two Attended
in the
in Person Communi Entrustme Directors Consecuti
Reporting
cation nt ve Times
Period
or Not
108Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Wu Bilei 13 4 5 4 0 No 1
Li Sheng 13 6 7 0 0 No 4
Wang
10 4 5 1 0 No 1
Hao
Zhang
2 0 2 0 0 No 1
Guohua
Liu
13 6 7 0 0 No 4
Yanchang
Deng
11 6 5 0 0 No 5
Weigong
Chen Hua 7 4 3 0 0 No 3
Bi
4 1 2 1 0 No 1
Wenquan
Han
13 5 7 1 0 No 3
Fangming
Mao
13 6 7 0 0 No 5
Zhihong
Dong
Zhonglan 13 6 7 0 0 No 4
g
Explanation on two consecutive absences from the Meeting of the Board of Directors in person:
none
3. Objections Raised by Directors on Relevant Matters of the Company
Whether the directors raise objections to relevant matters of the Company
□Yes □No
In the reporting period the directors did not raise any objection to the Company's relevant matters.
4. Additional Description of Performance of Duties by Directors
Whether the directors' relevant suggestions to the Company have been adopted
□Yes □No
Explanation of Directors on Adoption or Failure to Adopt Relevant Suggestions to the Company
In 2024 all directors of the Company worked in strict accordance with the Company Law
Securities Law the Rules Governing the Listing of Shares on the Shenzhen Stock Exchange and the
Articles of Association and other laws and regulations and performed their duties faithfully and
109Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
diligently in a responsible attitude towards all shareholders. Actively attended the meetings of the
Board of Directors and the Shareholders' Meeting carefully reviewed proposals and put forward
professional opinions and suggestions on the development strategy regular reports related
transactions and other matters during the reporting period so as to safeguard the legitimate rights and
interests of the Company and shareholders and ensure the standard operation and sustainable
development of the Company.VII. Conditions of Special Committees under the Board of Directors in the Reporting Period
Important
Numb
Comment Other Details
Name of er of
s and Perform of
Committ Members Meetin Date Contents
Suggestio ance of Objecti
ee gs
ns Put Duties ons
Held
Forward
Reviewed the 2023
Financial Audit
Report of the
Company the 2023
Annual Internal
Control Evaluation
Mao
Report the 2023
Zhihong All
Annual Rule of Law
Han March 22 proposals
1 Implementation and N/A
Fangming 2024 were
Compliance
Liu agreed.Management Report
Audit Yanchang.the 2023 Internal
and Risk
Audit Report and the
Control
2023 Annual Internal
Committ
Control
ee
Development
Report.Reviewed the
"Report on the First All
Mao
April 29 Quarter of 2024" and proposals
Zhihong N/A
2024 "First Quarter Report were
Han
4 on Internal Audit of agreed.
Fangming
2024"
Deng
Reviewed the "2024 All
Weigong August 28
Semi-annual Report proposals N/A
2024
and its Summary" were
110Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
"Proposal on Asset agreed.Impairment
Provisions for the
First Half of 2024"
and "2024 Internal
Audit Semi-annual
Report"
Reviewed the "2024
All
Third Quarter
October 25 proposals
Report" and "Third N/A
2024 were
Quarter Report on
agreed.Internal Audit"
Reviewed the
Proposal on
Renewing the
Engagement of the
All
Financial Audit
November proposals
Institution and the N/A
13 2024 were
Proposal on
agreed.Renewing the
Engagement of
Internal Control
Audit Institutions
Reviewed the
Proposal on
Unfulfilling
Conditions for
Releasing Restricted
Sales in the Third
Period of Releasing
Remuner Dong Restricted Shares
The
ation and Zhonglang Firstly Granted and
March 22 proposal
Appraisa Mao Conditions for the N/A
2 2024 was
l Zhihong Second Period of
approved.Committ Liu Releasing Restricted
ee Yanchang. Shares Reserved for
Granting in Phase I
Restricted Share
Incentive Plan and
Repurchase and
Cancellation of Some
Restricted Shares
May 27 The performance All N/A
111Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
2024 evaluation results of proposals
senior executives were
performance agreed.assessment
indicators of senior
executives and other
topics were
deliberated on.Wu Bilei Reviewed the "2024
All
Han Equity Investment
January 30 proposals
Fangming 1 Plan" and "2024 N/A
2024 were
Dong Fixed Asset
agreed.Zhonglang Investment Plan"
Li Sheng
Dong
Zhonglang
Liu
Yanchang
Wu Bilei
and Han
Fangming Reviewed the
respectivel "Proposal on the The
y April 29 Establishment of proposal
1 N/A
Strategy authorized 2024 FAW Jiefang was
Committ Li Sheng International Trade approved.ee and Dong Co. Ltd."
Zhonglang
to exercise
voting
rights on
their
behalf for
work
reasons.Wu Bilei Reviewed the "Mid-
Li Sheng year Adjustment to
Han the 2024 Equity All
Fangming August 28 Investment Plan" and proposals
3 N/A
Dong 2024 "Mid-year were
Zhonglang Adjustment to the agreed.
2024 Fixed Assets
Liu Investment Plan"
112Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Yanchang and received the
"Implementation of
the Company's
Strategic Plan"
Reviewed the
"Company Medium
and Long-term
Development Plan"
"Proposal on the
Company Meeting
the Conditions for
Major Asset Disposal
and Related-Party
Transaction"
"Proposal on the
Company's Major
Asset Disposal and
Related-Party
Transaction Plan"
"Proposal on This
Restructuring
Constituting a
All
Related-Party
October 25 proposals
Transaction" N/A
2024 were
"Proposal on 'FAW
agreed.Jiefang Group Co.Ltd. Major Asset
Disposal and
Related-Party
Transaction Report
(Draft)' and its
Summary"
"Proposal on Signing
the Relevant
Agreements for This
Restructuring"
"Proposal on the
Company's
Restructuring
Complying with
Article 11 of the
'Administrative
Measures for Major
113Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Asset Restructuring
of Listed
Companies'"
"Proposal on the
Company's
Restructuring
Complying with
Article 4 of the
'Regulatory
Guidelines for Listed
Companies No.9 -
Regulatory
Requirements for
Listed Companies
Planning and
Implementing Major
Asset
Restructuring''"
"Proposal on the
Company's
Restructuring Not
Constituting a
Restructuring Listing
under Article 13 of
the 'Administrative
Measures for Major
Asset Restructuring
of Listed
Companies'"
"Proposal on the
Completeness and
Compliance of Legal
Procedures
Performed for This
Restructuring and the
Validity of Legal
Documents
Submitted"
"Proposal on the
Company's Purchase
and Sale of Assets in
the 12 Months Prior
to This
114Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Restructuring"
"Proposal on
Approving Related
Audit Reports Pro
Forma Review
Reports and
Valuation Reports for
this Restructuring"
"Proposal on the
Pricing Basis and
Fair Reasonableness
of This
Restructuring"
"Proposal on the
Independence of the
Valuation Institution
the Reasonableness
of Valuation
Assumptions the
Relevance of
Valuation Methods to
Valuation
Objectives and the
Fairness of Valuation
Pricing" "Proposal
on the Dilution of
Immediate Returns
from This
Restructuring and the
Company's Remedial
Measures"
"Proposal on the
Relevant Parties of
the Company's
Restructuring Not
Having the
Circumstances
Specified in Article
12 of the 'Regulatory
Guidelines for Listed
Companies No.7 -
Regulation of
Abnormal Stock
115Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Trading Related to
Major Asset
Restructuring of
Listed Companies'"
"Proposal on the
Explanation of
Confidentiality
Measures and
Confidentiality
System Adopted for
This Restructuring"
and "Proposal on
Requesting the
Shareholders'
Meeting to Authorize
the Board of
Directors and its
Authorized
Representatives to
Handle Matters
Related to This
Restructuring."
Reviewed the
The
"Proposal on the
December proposal
Acquisition of Equity N/A
20 2024 was
in FAW (Africa)
approved.Investment Co. Ltd."
VIII. Working Conditions of the Board of Supervisors
Whether the Board of Supervisors has found any risks in the Company's supervision activities in the
reporting period
□Yes □No
The Board of Supervisors has no objection to the supervision matters in the reporting period.IX. Employees of the Company
1. Number specialty composition and education level of employees
Number of on-the-job employees of the parent company at the 189
end of the reporting period (person)
Number of on-the-job employees of main subsidiaries at the 19627
116Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
end of the reporting period (person)
Total number of on-the-job employees at the end of the 19816
reporting period (person)
Total number of employees receiving compensation in the 20803
current period (person)
Number of retired employees whose expenses shall be borne by 12
the parent company and major subsidiaries (person)
Specialty composition
Category Number (person)
Production personnel 11230
Sales personnel 1237
Technicians 6044
Financial personnel 347
Administrative personnel 958
Total 19816
Education background
Category Number (person)
Doctor's degree 62
Master's degree 1756
Bachelor's degree 8357
Junior college degree 4338
High school and below 5303
Total 19816
2. Compensation policy
In 2024 the Company remains committed to prioritizing value creators continuously enhancing
incentive mechanisms emphasizing value orientation further stimulating organizational and
employee vitality and supporting the Company's business development.First improving compensation incentive mechanisms to energize employees: Emphasizing
value orientation based on role responsibilities across different domains implementing customized
strategies for each business unit establishing a total compensation management mechanism with
clear direction explicit adjustments and appropriate delegation fully leveraging compensation as a
motivational tool; Implementing annual bonuses that favor value creators; Offering special rewards
117Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
for cost efficiency initiatives and technological innovation encouraging employees to reduce costs
increase efficiency and drive innovation; Implementing annual salary adjustments based on
performance and completion of training requirements motivating high-performing and highly
capable employees to create greater value for the Company; Employing multiple approaches to
achieve mutual growth of employees and the Company.Second standardizing employee benefits management delivering benefit entitlements and
ensuring protection: The Company legally signs labor contracts with employees processes and pays
various social insurance contributions including basic pension basic medical insurance work injury
insurance unemployment insurance and housing provident fund while actively promoting
supplementary pension and medical insurance systems; Establishing comprehensive welfare systems
providing holiday allowances heating subsidies living allowances for single employees heat-relief
allowances and other welfare benefits according to established standards protecting employees'
legitimate rights and interests across multiple dimensions. The expenses for the Company's regular
retirees are incorporated into the social security system eliminating the need for the Company to bear
pension expenses for regular retirees though it continues to bear expenses for senior retired cadres.
3. Training plan
In 2024 employee training and development work aims to support the Company's
transformation and development achievement of annual business objectives and resolution of
business pain points and challenges implementing targeted and systematic talent development
programs. In terms of leadership conducting Navigator Program Summit Achievers Program
Dragon Gate Program and other training initiatives; In terms of professional capabilities providing
training on digital transformation IPD (Integrated Product Development) transformation new energy
overseas market expansion etc.; In terms of general capabilities delivering training on component
product knowledge and automotive structure etc.; In terms of technical skills conducting training on
standardized operations on-site problem solving etc. A total of more than 8100 various training
sessions were conducted throughout the year.
4. Labor outsourcing
□Applicable □Not applicable
118Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
X. Profit Distribution and Transfer from Capital Reserve to Share Capital of the Company
Profit distribution policies in the reporting period especially the formulation implementation or
adjustment of cash dividend policy
□Applicable □Not applicable
The Company's 2023 Profit Distribution Plan was reviewed and approved by the 11th Meeting
of the 10th Board of Directors and the 2023 Annual Shareholders' Meeting and the "Announcement
on the Implementation of 2023 Annual Equity Distribution" was disclosed on June 15 2024. The ex-
rights and ex-dividend date for this profit distribution is: June 24 2024.Special Description of Cash Dividend Policy
Whether the provisions of the Articles of Association or the
Yes
requirements of resolutions of the Shareholders' Meeting are met:
Whether the dividend standard and proportion are definite and clear: Yes
Whether the relevant decision-making procedures and mechanisms
Yes
are complete:
Whether the independent directors have fulfilled their duties and
Yes
played their due roles:
In case no cash dividends are distributed we shall disclose the
specific reasons and the subsequent actions to be taken to improve the Yes
investor's return level:
Whether the minority shareholders have the opportunity to fully
express their opinions and demands and whether their legitimate Yes
rights and interests are fully protected:
Whether the conditions and procedures are compliant and transparent
N/A
when the cash dividend policy is adjusted or changed:
The Company made profits in the reporting period and the parent company had a positive profit
available for shareholders but no cash dividend distribution plan was proposed
□Applicable □Not applicable
Profit Distribution and Transfer from Capital Reserve to Share Capital in the Reporting Period
□Applicable □Not applicable
Number of bonus shares given per 10 shares (share) 0
Number of distributed dividends per 10 shares (Yuan) (tax
0.50
inclusive)
119Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Share capital base for distribution plan (share) 4922371176
Amount of cash dividends (Yuan) (tax inclusive) 246118558.80
Amount of cash dividends paid by other means (such as
0.00
share repurchase) (Yuan)
Total amount of cash dividends (including by other means)
246118558.80
(Yuan)
Distributable profits (Yuan) 7370940980.89
Proportion of total amount of cash dividends (including by
100%
other means) in the total amount for profit distribution
Cash dividends
Others
Note on details of schedule of profit distribution or transfer of capital reserve to equity
Grant Thornton Certified Public Accountants (Special General Partnership) confirmed after
audit that the Company's parent company realized a net profit of 1090353013.63 yuan in 2024
plus the undistributed profit of 7083209394.76 yuan in the previous year and less the provision
for statutory surplus reserve of 109035301.36 yuan and distributed profits of 693579557.10 yuan
accrued in the current year the actual profit available for distribution for shareholders this year is
7370940980.89 yuan.
The 2024 annual profit distribution plan of the Company is as follows: Based on the
4922371176 shares of the Company a cash dividend of 0.5 yuan (tax inclusive) will be distributed
to all shareholders for every 10 shares they hold; the cash dividends to be distributed will reach
246118558.80 yuan (tax inclusive) and the remaining undistributed profits will be carried forward
to the next accounting year. The Company does not convert its capital reserves into share capital.For any change to the total share capital of the Company due to the equity incentive plan before
the implementation of the distribution plan the cash dividend of 0.50 yuan (tax inclusive) will be
distributed to all shareholders per 10 shares based on the total share capital registered on the date
of record when the profit distribution plan is implemented in the future and the specific amount
will be subject to the actual distribution.This distribution plan is subject to the review and approval of the 2024 annual shareholders'
meeting before implementation.
120Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
XI. Implementation of the Company's Equity Incentive Plan Employee Stock Ownership
Plan or Other Employee Incentive Measures
□Applicable □Not applicable
1. Equity incentive
(1) On November 13 2020 the Company held the 9th meeting of the 9th Board of Directors and
the 8th meeting of the 9th Board of Supervisors respectively to deliberate and adopt the Restricted
Share Incentive Plan of FAW JIEFANG GROUP CO. LTD. (Draft) and Its Abstract and other
proposals. The relevant proposals were deliberated and adopted at the First Extraordinary
Shareholders' Meeting of 2021 held by the Company on January 11 2021.
(2) On January 15 2021 the Company held the 12th Session of the 9th Meeting of the Board of
Directors and the 11th Session of the 9th Meeting of the Board of Supervisors respectively and
reviewed and approved the Proposal on Adjusting the List of the First Batch of Incentive Objects and
the Number of Grants of the First Restricted Share Incentive Plan and the Proposal on Granting
Restricted Shares to the Incentive Objects of the First Restricted Share Incentive Plan for the First
Time. On February 1 2021 the Company disclosed the Announcement on the Completion of the
First Grant Registration of the Phase I Restricted Share Incentive Plan in which the restricted shares
in the incentive plan were first granted to 319 persons totaling 40.9877 million shares with a grant
price of 7.54 yuan per share. The restricted shares granted were listed on February 5 2021.
(3) 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 respectively to deliberate and adopt the Proposal
on Granting Reserved Part of Restricted Shares in the Phase I Restricted Share Incentive Plan to
Incentive Objects Proposal on Adjusting the Repurchase Price of Restricted Shares in the Phase I
Restricted Share Incentive Plan Proposal on Repurchase and Cancellation of Partial Restricted
Shares in the Phase I Restricted Share Incentive Plan and other relevant proposals. On January 6
2022 the Company disclosed the Announcement on the Completion of Registration of the Grant of
Reserved Part of Restricted Shares in Phase I Restricted Share Incentive Plan in which reserved part
of restricted shares in the incentive plan was granted to 33 persons totaling 3.7216 million shares
with a grant price of 6.38 yuan per share. The restricted shares granted were listed on January 10
2022. On January 17 2022 the Company disclosed the Announcement on the Completion of the
Repurchase and Cancellation of Some Restricted Shares in which all restricted shares were granted
121Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
to 2 incentive objects but not yet released totaling 260857 shares with a repurchase price of 7.04
yuan per share.
(4) 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 respectively to deliberate and adopt the Proposal
on Adjusting the Repurchase Price of Restricted Shares in the Phase I Restricted Share Incentive Plan
and Proposal on Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted
Share Incentive Plan. On September 16 2022 the relevant repurchase and cancellation proposals
were deliberated and adopted at the Second Extraordinary Shareholders' Meeting of 2022 held by the
Company. On November 14 2022 the Company disclosed the Announcement on the Completion of
the Repurchase and Cancellation of Some Restricted Shares in which all or some restricted shares
granted to 6 incentive objects but not yet released were repurchased and canceled totaling 789711
shares with a repurchase price of 6.39 yuan/share.
(5) 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 respectively to deliberate and approve the Proposal
on Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive
Plan. The Proposal was subsequently deliberated and approved at the 3rd Extraordinary Shareholders'
Meeting of the Company in 2022. It was agreed to repurchase and cancel a total of 1359247
restricted stocks either in full or in part that was granted but not yet released from restrictions to the
original 11 incentive recipients. On January 17 2023 The Company issued the Announcement on
Completion of Repurchase and Cancellation of Some Restricted Shares on CNINFO
(http://www.cninfo.com.cn).
(6) 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 respectively to deliberate and approve 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 agreeing that the Company handled
the unlocking of 13042347 shares of 311 incentive objects meeting the unlocking conditions during
the first release period of restricted shares granted for the first time in accordance with the relevant
provisions of the restricted share incentive plan. On February 3 2023 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 on
CNINFO (http://www.cninfo.com.cn) and the unlocked restricted shares will be listed and circulated
122Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
on February 6 2023. At the 30th Meeting of the 9th Board of Directors and the 26th Meeting of the
9th Board of Supervisors the Company reviewed and approved the Proposal on the Repurchase and
Cancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan and agreed to
repurchase and cancel all or part of 723435 restricted stock that had been granted to the original six
incentive targets but not lifted the restriction for sales. On April 28 2023 the Company issued the
Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares on
CNINFO (http://www.cninfo.com.cn).
(7) On March 31 2023 the Company held the 32nd meeting of the 9th Board of Directors and
the 28th meeting of the 9th Board of Supervisors respectively deliberated and approved the Proposal
on Unsuccessful Lifting of Conditions of the Second Release Period First Granted by the Phase I
Restricted Share Incentive Plan for Releasing the Restricted Sales and of Conditions of the First
Release Period Reserved by the Phase I Restricted Share Incentive Plan for Releasing the Restricted
Sales and Repurchase and Cancellation of Some Restricted Shares agreeing to repurchase and cancel
327 restricted shares of incentive objects that do not meet the release conditions. The total number of
shares repurchased was 13909890. The Proposal was deliberated and approved at the Company's
2022 Annual Shareholders' Meeting held on April 24 2023. On June 30 2023 the Company issued
the Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares on
CNINFO (http://www.cninfo.com.cn).
(8) 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 to deliberate and approve the Proposal
on Lifting the Trading Restrictions of Partial Restricted Shares. A total of 4 incentive objects met the
conditions for lifting the trading restrictions this time and 64954 shares were lifted. On May 15
2023 the Company issued the Prompt Announcement on Lifting Sales Restrictions and Listing
Circulation of Partial Restricted Shares on CNINFO (http://www.cninfo.com.cn) and the unlocked
restricted shares were listed and circulated on May 16 2023.
(9) On August 29 2023 the Company held the 5th Meeting of the 10th Board of Directors and
the 4th Meeting of the 10th Board of Supervisors respectively and deliberated and adopted the
Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted
Share Incentive Plan which was reviewed and approved at the Third Extraordinary Shareholders'
Meeting in 2023 and agreed to repurchase and cancel all or part of 333855 restricted stocks that had
been granted to the original eight incentive targets but had not been lifted the restriction for sales. On
123Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
November 29 2023 the Company issued the Announcement on Completion of Repurchase and
Cancellation of Some Restricted Shares on CNINFO (http://www.cninfo.com.cn).
(10) On November 20 2023 the Company held the 7th Meeting of the 10th Board of Directors
and the 6th Meeting of the 10th Board of Supervisors respectively and deliberated and adopted the
Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted
Share Incentive Plan which was reviewed and approved at the Fourth Extraordinary Shareholders'
Meeting in 2023 and agreed to repurchase and cancel all or part of 512807 restricted stocks that
have been granted to 10 incentive targets but have not been lifted the restriction for sales. On March
28 2024 the Company issued the Announcement on Completion of Repurchase and Cancellation of
Some Restricted Shares on CNINFO (http://www.cninfo.com.cn).
(11) 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 respectively and reviewed and approved the
Proposal on Unfulfilling Conditions for Releasing Restricted Share for the Third Release Period of
Restricted Shares Firstly Granted and the Second Release Period of Restricted Shares Reserved for
Granting in Phase I Restricted Share Incentive Plan and Repurchase and Cancellation of Some
Restricted Shares and agreed to buy back and cancel the restricted stocks of 299 objects failing to
fulfill the conditions for lifting the restriction for sales 12621954 shares in total. On June 15 2024
the Company issued the Announcement on Completion of Repurchase and Cancellation of Some
Restricted Shares on CNINFO (http://www.cninfo.com.cn).
(12) 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 Period of
Restricted Shares Reserved for Granting in Phase I Restricted Share Incentive Plan and Repurchase
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.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).
124Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Equity Incentives Obtained by Directors and Senior Executives of the Company
□Applicable □Not applicable
Unit: share
Num
Mark
ber
Numb Numb et Numbe
Numbe of Numb
er of er of Exercise Price r of
r of Exer er of Number
Stock Exerc Price of at the Number of Number Newly Grant
Newly cise Stock of
Optio isable Exercised End Restricted of Granted Price of
Granted d Optio Restricte
ns Share Shares in of the Shares Unlocke Restrict Restrict
Stock Shar ns d Shares
Name Position Held s in the Repor Held at the d Shares ed ed
Options es in Held Held at
at the the Reporting ting Beginning in the Shares Shares
in the the at the the End
Begin Repor Period Perio of the Current in the (Yuan/s
Reporti Rep End of the
ning ting (Yuan/shar d Period Period Reporti hare)
ng ortin of the Period
of the Perio e) (Yuan ng
Period g Period
Year d /share Period
Peri
)
od
Li Chairman
Sheng of the Board 8.20 129161 65544 7.54 63617
Deputy
Wang
General 8.20 129161 65544 7.54 63617
Jianyu
Manager
Secretary of
Wang
the Board of 8.20 129161 65544 7.54 63617
Jianxun
Directors
Total -- 0 0 0 0 -- 0 -- 387483 196632 0 -- 190851
In view of the unfulfilled performance assessment targets set for the Third Release Period of the First Grants and the
Remarks Second Release Period of the Reserved Grants under the Company's Phase I Restricted Share Incentive Plan the
restricted shares that do not satisfy the release conditions for relevant incentive participants including the
125Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
aforementioned personnel would be repurchased and cancelled. The relevant proposals have been reviewed and
approved by the 11th Meeting of the 10th Board of Directors and the 2023 Annual Shareholders' Meeting and the
"Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares" was disclosed on June 15
2024.
Evaluation mechanism and incentives of senior executives
The Company has formulated corresponding plans for the evaluation and incentive mechanism of senior executives and implemented a fair
and transparent performance management system and an incentive mechanism that links compensation levels with both Company performance
and individual performance. The Compensation and Evaluation Committee of the Board of Directors diligently fulfills its responsibilities by
conducting comprehensive assessments of the evaluation results.
2. Implementation of employee stock ownership plan
□Applicable □Not applicable
3. Other employee incentives
□Applicable □Not applicable
126Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
XII. Establishment and Implementation of Internal Control System in the Reporting Period
1. Construction and implementation of internal control
Strengthen architecture guidance and optimize top-level design. Based on marketing
transformation major manufacturing organizational transformation and process construction and
operations in various business areas the Company completed the refresh and release of 15 L1-level
process architectures including 15 L1-process domains nearly 120 L2-process groups and more than
400 L3-processes guiding the Company to continuously advance process-oriented organizational
construction and digital intelligent transformation.Promote process construction and review updates according to the architecture. Combined with
actual business needs prioritizing urgent requirements supplemented more than 240 process system
and operational guidance documents; Improved business rules updated and optimized more than 470
documents abolished 280 documents and enhanced document applicability; Conducted more than
40 company-level documents reviews to improve document quality.
Conduct process KCP (Key Control Point) monitoring. Combined with industry practices
established a risk-oriented and KCP-centered internal control system based on internal control
guidelines focused on high-risk businesses and key processes organized monitoring through process
Owner self-inspection and process management department audits timely identified key issues
affecting the Company's operations completed more than 90 KCP monitoring items in 2024
identified and planned to address more than 20 issues requiring rectification ensuring effective risk
control and improving business operational efficiency.
2. Specific information on major internal control deficiencies found during the reporting
period
□Yes □No
XIII. Management and Control of Subsidiaries by the Company in the Reporting Period
Follow-
Problems Resol
up
Company Integration in Solutions ution
Integration Plan Resolut
Name Progress Integratio Taken Progre
ion
n ss
Plan
127Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
The Company holds 55%
FAW
of its equity; No change to
(Africa)
the original company's Completed N/A N/A N/A N/A
Investment
business operations and
Co. Ltd.personnel scale
The Company holds
90.91% of its equity and
the Company's subsidiary
Jiefang
Jiefang Group
Motors
International holds 9.09% Completed N/A N/A N/A N/A
Tanzania
of its equity; no change to
Ltd.the original company's
business operations and
personnel scale
XIV. Internal Control Evaluation Report or Internal Control Audit Report
1. Internal Control Evaluation Report
Disclosure Date of Full
Text of Internal Control March 29 2025
Evaluation Report
Disclosure Index of Full
http://www.cninfo.com.cn/new/disclosure/stockstockCode=000800
Text of Internal Control
&orgld=gssz0000800&sjstsBond=false#latestAnnouncement
Evaluation Report
Proportion of the Total
Assets of the Unit
Included in the Evaluation
Scope to the Total Assets 100.00%
in the Company's
Consolidated Financial
Statements
Proportion of the Unit
Operating Income
Included in the Evaluation
100.00%
Scope to the Operating
Income in the Company's
Consolidated Financial
128Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Statements
Deficiency Identification Standard
Category Financial report Non-financial Report
Major deficiencies: fraudulent
behaviors of directors
supervisors or corporate leaders
of the Company; serious
violation of national laws
regulations or normative
documents by the Company;
violation of decision-making
procedures by the Company
Major deficiencies: The accounting firm issues
resulting in major decision-
the audit report with a disclaimer of opinion or
making errors.an adverse opinion of the Company.Significant deficiencies:
Significant deficiencies: The accounting firm
Principal responsible persons of
issues the audit report with a qualified opinion
Qualitative various units within the
of the Company; the accounting firm issues the
Criteria Company engage in fraudulent
audit report with a disclaimer of opinion or an
activities; Affiliated companies
adverse opinion of the Company.seriously violate national laws
General deficiencies: The accounting firm
regulations or normative
issues the audit report with a qualified opinion
documents; Affiliated companies
to the Company.violate decision-making
procedures resulting in
decision-making errors.General deficiencies: fraudulent
behaviors of other personnel of
the Company; other control
deficiencies that do not
constitute major or significant
deficiencies.Identification criteria for internal control It is determined based on the
deficiencies related to assets and liabilities amount of asset losses caused by
Major deficiencies: misstated (including internal control failure and the
Quantitative
potential) amount ≥ 5‰ of the total assets at standards are as follows:
Criteria
the end of the consolidated balance sheet of the Major deficiencies: causing asset
previous year; losses of 10 million yuan and
Significant deficiencies: 3‰ of the total assets more;
129Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
at the end of the consolidated balance sheet of Significant deficiencies: causing
the previous year ≤ misstated (including asset losses of less than 10
potential) amount < 5‰ of the total assets at million yuan and greater than or
the end of the consolidated balance sheet of the equal to 5 million yuan;
previous year; Minor deficiencies: causing
General deficiencies: other control deficiencies asset losses of less than 5
except for major and significant deficiencies. million yuan.Identification criteria for internal control
deficiencies related to profits
Major deficiencies: misstated (including
potential) amount ≥ 5‰ of the absolute value
of the pre-tax profit in the consolidated income
statement of the previous year of the Company;
Significant deficiencies: 3‰ of the absolute
value of the pre-tax profit in the consolidated
income statement of the previous year of the
Company ≤ misstated (including potential)
amount < 5‰ of the absolute value of the pre-
tax profit in the consolidated income statement
of the previous year of the Company;
General deficiencies: Other control deficiencies
except for major and significant deficiencies.Number of Major Deficiencies in
0
Financial Report (Nr.)
Number of Major Deficiencies in
0
Non-financial Report (Nr.)
Number of Significant Deficiencies
0
in Financial Report (Nr.)
Number of Significant Deficiencies
0
in Non-financial Report (Nr.)
2. Internal Control Audit Report
□Applicable □Not applicable
Deliberations Paragraph in Internal Control Audit Report
In our opinion FAW Jiefang maintained effective internal control over financial reporting in all
material aspects as of December 31 2024 in accordance with the Basic Specification for
130Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Enterprise Internal Control and relevant regulations.Disclosure of Internal Control Audit
Disclosure
Report
Disclosure Date of Full Text of
March 29 2025
Internal Control Audit Report
http://www.cninfo.com.cn/new/disclosure/stockstockCo
Disclosure Index of Full Text of
de=000800&orgld=gssz0000800&sjstsBond=false#latest
Internal Control Audit Report
Announcement
Opinion Type of Internal Control
Standard unqualified opinion
Audit Report
Whether there are major deficiencies
No
in the non-financial report
Whether the accounting firm issues the internal control audit report with a non-standard opinion
□Yes □No
Whether the internal control audit report issued by the accounting firm is consistent with the self-
evaluation report of the Board of Directors
□Yes □No
XV. Rectification of Problems Found in the Self-inspection of the Special Action for
Governance of Listed Companies: none
131Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Section V Environmental and Social Responsibilities
I. Major Environmental Protection Issues
Whether the listed company and its subsidiaries are key pollutant-discharging entities announced by
the environmental protection authority
□Yes □No
Environmental protection-related policies and industry standards
The Company has always emphasized environmental protection throughout its production and
operation processes strictly complying with the Environmental Protection Law of the People's
Republic of China the Law of the People's Republic of China on Environmental Impact Assessment
the Regulations on Environmental Protection Management of Construction Projects the Law of the
People's Republic of China on the Prevention and Control of Atmospheric Pollution the Law of the
People's Republic of China on the Prevention and Control of Water Pollution the Law of the People's
Republic of China on the Prevention and Control of Noise Pollution the Law of the People's Republic
of China on the Prevention and Control of Environmental Pollution by Solid Wastes the Law of the
People's Republic of China on the Prevention and Control of Soil Pollution the Law of the People's
Republic of China on the Promotion of Clean Production the Measures for the Administration of
Pollutant Discharge Permits the Regulations on Pollutant Discharge Permit Management the
Environmental Protection Tax Law of the People's Republic of China the Measures for the
Administration of the List of Key Units of Environmental Supervision the Measures for the
Administration of Legal Disclosure of Environmental Information of Enterprises the Measures for
the Administration of Hazardous Waste Transfer and other relevant laws and regulations; and the
Integrated Emission Standard of Air Pollutants (GB16297-1996) the Integrated Wastewater
Discharge Standard (GB8978-1996) the Emission Standard of Industrial Enterprises Noise at
Boundary (GB12348-2008) the Standard for Pollution Control on Hazardous Waste Storage
(GB18597-2023) the Technical Guidelines for Deriving Hazardous Waste Management Plans and
Records (HJ1259-2022) the Technical Specifications for Acceptance of Environmental Protection
Facilities for Completed Construction Projects - Automobile Manufacturing Industry (HJ 407-2021)
National Hazardous Waste Inventory National Pollution Prevention and Control Technical Guidance
Directory and other national and industry standards.
132Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Administrative licensing for environmental protection
The Company and all its branches and subsidiaries have fulfilled the environmental impact
assessment and other environmental protection administrative licensing procedures as required for
construction projects and have strictly implemented the "Three Simultaneities" requirement -
ensuring environmental protection facilities are simultaneously designed constructed and put into
operation with the main project. All key pollutant discharge units have obtained pollutant discharge
permits in accordance with legal requirements and strictly implement the pollutant discharge permit
management system.Validity Period of Pollution
S/N Name of Unit Pollutant Discharge Permit No.Discharge Permit
Truck Factory of
December 30 2022 to
1 FAW Jiefang 91220101743028725R001R
December 29 2027
Automotive Co. Ltd
Chengdu Branch of
2 FAW Jiefang 91510114746407720B001V July 16 2022 to July 15 2027
Automotive Co. Ltd.Sichuan Branch of
3 FAW Jiefang 91510681MABQ7AKG4Y001V July 21 2023 to July 20 2028
Automotive Co. Ltd.Transmission Branch
(Transformation
September 18 2024 to
4 Factory) of FAW 91220101571131661N001Q
September 17 2029
Jiefang Automotive
Co. Ltd.Transmission Branch
(Axle New Factory) May 21 2024 to May 20
5 91220101571131661N003V
of FAW Jiefang 2029
Automotive Co. Ltd.Changchun Intelligent
Bus Branch of FAW January 9 2023 to January 8
6 91220108MA170MRB74001V
Jiefang Automotive 2028
Co. Ltd.FAW Jiefang
December 29 2023 to
7 (Qingdao) 91370200163567343M001V
December 28 2028
Automotive Co. Ltd.
133Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Engine Branch of
December 27 2022 to
8 FAW Jiefang 912201017561635719001Q
December 26 2027
Automotive Co. Ltd.Wuxi Diesel Engine
Works of FAW August 30 2024 to August 29
9 91320200748159222H001Q
Jiefang Automotive 2029
Co. Ltd.Wuxi Diesel Engine
Huishan Factory of Junuary 19 2023 to Junuary
10 91320206330969017N001C
FAW Jiefang 18 2028
Automotive Co. Ltd.FAW Jiefang Dalian
March 14 2024 to March 13
11 Diesel Engine Co. 91210213717880308K001U
2029
Ltd.
134Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Industry Emission Standards and Specific Conditions of Pollutant Discharge Involved in Production and Operation Activities
Names of
Types of Numbe
Main Enforced
Main r of Discharge Total
Name of Company Pollutants Discharge Distribution of pollutant Total Excessive
Pollutants Dischar concentration/in Approved
or Subsidiary and Mode Discharge Outlets discharge Discharge Discharge
and Specific ge tensity Discharge
Specific standard
Pollutants Outlets
Pollutants
One for the
frame cab and
Continuous non-metal
No
or coating
Wastewater COD 4 183.51mg/L 800mg/L 28.2281 t 630.104 t excessive
intermittent respectively and
Truck Factory of discharge
discharge one for general
FAW Jiefang
domestic sewage
Automotive Co. Ltd
outlet
Non- Continuous
Frame cab roof No
methane discharge
Exhaust gas 71 of non-metallic 3.8941mg/m3 120mg/m3 69.8924 t 346.1955 t excessive
hydrocarb during
coating workshop discharge
on production
No
Intermittent Southeast of the
Wastewater COD 1 19.469mg/L 500mg/L 0.002 t 21.3 t excessive
Chengdu Branch of discharge Company
discharge
FAW Jiefang
Non- Continuous
Automotive Co. No
methane discharge Roof of coating
Ltd. Exhaust gas 1 2.262mg/m3 60mg/m3 12.527 t 75.91 t excessive
hydrocarb during workshop
discharge
on production
No
Intermittent Northwest corner
Wastewater COD 1 55.148mg/L 500mg/L 0.6103 t 40.8469 t excessive
discharge of the Company
Sichuan Branch of discharge
FAW Jiefang Roof of Painting
Non- Continuous
Automotive Co. Workshop and No
methane discharge
Ltd. Exhaust gas 15 General 7.419mg/m3 60mg/m3 10.576 t 16.5208 t excessive
hydrocarb during
Assembly discharge
on production
Workshop
Transmission One at the
No
Branch Intermittent northwest corner
Wastewater COD 3 19mg/L 500mg/L 1.1778 t 10 t excessive
(Transformation discharge of workshop
discharge
Factory) of FAW No.5 one at the
135Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Jiefang Automotive southwest corner
Co. Ltd. of workshop
No.4 and one at
the effluent outlet
of the wastewater
treatment station
Non- Continuous
No
methane discharge 7 for workshop
Exhaust gas 7 1.6mg/m3 120mg/m3 0.5833 t -- excessive
hydrocarb during No.5
discharge
on production
One each for No
Intermittent
Transmission Wastewater COD 3 No.1 No.2 and 21mg/L 500mg/L 1.2089 t -- excessive
discharge
Branch (Axle No.3 workshops discharge
Factory) of FAW Non- Continuous
One each for No
Jiefang Automotive methane discharge
Exhaust gas 2 No.1 and No.3 1.61mg/m3 120mg/m3 10.5369 t -- excessive
Co. Ltd. hydrocarb during
workshops discharge
on production
South gate of No
Intermittent
Changchun Wastewater COD 1 sewage treatment 54.89mg/L 500mg/L 1.7492 t 4.575 t excessive
discharge
Intelligent Bus station discharge
Branch of FAW Non- Continuous Roof of coating
No
Jiefang Automotive methane discharge and welding
Exhaust gas 12 34.36mg/m3 120mg/m3 11.2608 t 49.5 t excessive
Co. Ltd. hydrocarb during workshop of the
discharge
on production Company
COD： COD： COD： COD：
Continuous Outside the
COD 47.1mg/L 500mg/L； 14.9 t; 88.79 t; No
or sewage treatment
Wastewater ammonia 6 Ammonia Ammonia Ammonia Ammonia excessive
FAW Jiefang intermittent station of the
nitrogen nitrogen: 1.04 nitrogen: nitrogen: nitrogen: discharge
(Qingdao) discharge Company
mg/L 45mg/L 0.2988 t 5.11 t
Automotive Co.Non- Continuous
Ltd. Roof of each No
methane discharge 5.09
Exhaust gas 87 workshop of the 30mg/m3 62.19 t 164.98 t excessive
hydrocarb during mg/m3
Company discharge
on production
Engine Branch of Non-
No
FAW Jiefang methane Intermittent
Exhaust gas 3 Workshop roof 0.67mg/m3 120mg/m3 0.0351 t -- excessive
Automotive Co. hydrocarb discharge
discharge
Ltd. on
Wuxi Diesel Engine Continuous One for the west No
Wastewater COD 3 23mg/L 500mg/L 8.13 t 243 t
Works of FAW discharge gate and two for excessive
136Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Jiefang Automotive the south gate discharge
Co. Ltd. Three for the
assembly
workshop five
NOx
Nitrogen for the R&D
200mg/m3
oxide Continuous Department two NOx 76mg/m3 NOx 22.59 NOx 26.08
Non- No
non- discharge for the QA Non-methane t t
Exhaust gas 13 methane excessive
methane during Department two hydrocarbons VOCs VOCs
hydrocarbo discharge
hydrocarb production for the processing 2.46mg/m3 0.08 t 1.77 t
ns 60
on workshop and
mg/m3
one for the
hazardous waste
warehouse
No
Continuous
Wastewater COD 1 North Gate 1 46mg/m3 500mg/m3 4.17 t 79.15 t excessive
discharge
discharge
Wuxi Diesel Engine
NOx
Huishan Factory of Nitrogen
200mg/m3
FAW Jiefang oxide Continuous NOx 39mg/m3 NOx 10.70 NOx
Non- No
Automotive Co. non- discharge Non-methane t 26.137 t
Exhaust gas 6 Joint workshop methane excessive
Ltd. methane during hydrocarbons VOCs VOCs
hydrocarbo discharge
hydrocarb production 1.07mg/m3 0.7 t 4.546 t
ns 60
on
mg/m3
COD: COD: COD:
Continuous Outside the COD: 43.9mg/L
COD 300mg/L 3.634 t 18.398 t; No
or sewage treatment Ammonia
Wastewater ammonia 1 Ammonia Ammonia Ammonia excessive
intermittent station of the nitrogen:
nitrogen nitrogen: nitrogen: nitrogen: discharge
discharge Company 8.04mg/L
30mg/L 0.6416 t 2.984 t
FAW Jiefang Dalian
Nitrogen Nitrogen
Diesel Engine Co. Nitrogen NOx
oxides: oxides:
Ltd. oxide Continuous 240mg/m3
Roof of the NOx 98mg/m3 2.881 t 15.143 t No
non- discharge Volatile
Exhaust gas 5 Company's Volatile organic Volatile Volatile excessive
methane during organic
workshop 4.911 mg/m3 organic organic discharge
hydrocarb production compounds
compounds compounds
on 60 mg/m3;
2.772 t 7.547 t
137Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Disposal of pollutants
(I) Wastewater treatment:
1. The Truck Factory of FAW Jiefang Automotive Co. Ltd. has three sewage treatment stations
currently namely a frame workshop sewage treatment station a coating workshop sewage treatment
station and a non-metallic coating sewage treatment station. * The frame sewage treatment station
has a treatment capacity of 300 tons/day and mainly treats the wastewater before it enters the frame
workshop. * The cab coating workshop sewage treatment station has a treatment capacity of 400
tons/day and mainly treats the wastewater and painting wastewater before they enter the workshop.* The non-metallic line sewage treatment station has a treatment capacity of 240 tons/day and
mainly treats the painting wastewater before it enters the production line. The wastewater and
domestic sewage pretreated by the above three sewage stations are discharged into the FAW
Integrated Sewage Treatment Plant and then into the Changchun Western Suburbs Sewage Treatment
Plant after being treated to meet the standards.
2. One sewage treatment station has been built in the Chengdu Branch of FAW Jiefang
Automotive Co. Ltd. for the treatment of production and domestic wastewater of the Company with
a total treatment capacity of 300 tons/day. The main treatment method is the SBR process. All sewage
stations can operate continuously and stably and the sewage discharged up to standard enters the
urban sewage treatment plant through the municipal pipe network for further treatment.
3. The Sichuan Branch of FAW Jiefang Automotive Co. Ltd. has a wastewater treatment station
that is used to treat the Company's production and domestic wastewater has a total treatment capacity
of 50 tons/hour and adopts the physicochemical and biochemical treatment process. The sewage
station can operate continuously and stably. The industrial wastewater discharged after meeting the
standard enters the urban sewage treatment plant through the municipal pipeline network for further
treatment.
4. The transmission branch (transmission factory) of FAW Jiefang Automotive Co. Ltd. uses
the sewage treatment station in the shaft gear park to treat the Company's production wastewater. The
total treatment capacity of the sewage treatment station is 50 tons/day and it operates stably. After
being treated by the sewage station and reaching the standard the industrial wastewater is discharged
into the Changchun Western Suburbs Sewage Treatment Plant for further treatment.
138Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
5. There is a sewage storage tank in each of the three workshops in the Transmission Branch
(Axle Factory) of FAW Jiefang Automotive Co. Ltd. and the industrial wastewater of the three
workshops is transferred to the sewage treatment station in Shaft Gear Park for treatment.
6. The Changchun Intelligent Bus Branch of FAW Jiefang Automotive Co. Ltd. has an internal
sewage treatment station which is used to treat the company's production and domestic wastewater
has a treatment capacity of 300 tons/day and adopts the physicochemical + biochemical treatment
process. The station can operate continuously and stably and realize real-time up-to-standard
discharge. The sewage is discharged to the urban sewage treatment plant through the municipal pipe
network for further treatment after reaching the standard.
7. Two sewage treatment stations are built in FAW Jiefang Qingdao Automotive Co. Ltd. They
combine the physicochemical process with the biochemical process and are mainly used to treat the
phosphating wastewater electrophoresis wastewater and degreasing wastewater discharged from the
daily production of the coating workshop as well as the daily domestic sewage of the Company. The
designed maximum daily treatment capacity of the station is 2160 tons/day. The treated wastewater
meets the index requirements of the Wastewater Quality Standards for Discharge to Municipal Sewers
(GB/T31962-2015) and reaches the Reuse of Urban Recycling Water - Water Quality Standard for
Urban Miscellaneous Use (GB/T18920-2020) after being further treated by the MBR improvement
equipment thus reducing the sewage concentration significantly increasing the reuse amount of
recycled water and saving water. The up-to-standard treated wastewater is discharged to Jimo North
Sewage Treatment Plant for advanced treatment through the sewage outlet.
8. The industrial wastewater produced by the Engine Branch of FAW Jiefang Automotive Co.
Ltd. is transferred to the sewage treatment station of the Shaft Gear Park for treatment.
9. One sewage treatment station is built in Wuxi Diesel Engine Works of FAW Jiefang
Automotive Co. Ltd. for the treatment of production and domestic wastewater of the Company with
a total treatment capacity of 3 thousand tons/day and 24-hour operation. The main treatment process
is physicochemical + biochemical treatment. The sewage station can operate continuously and stably
and realize real-time up-to-standard discharge. Up-to-standard discharged sewage enters the urban
sewage treatment plant through the municipal pipe network for further treatment.
10. One sewage treatment station is built in the Wuxi Diesel Engine Huishan Factory of FAW
Jiefang Automotive Co. Ltd. for the treatment of production and domestic wastewater of the
Company with a total treatment capacity of 1 thousand tons/day and 24-hour operation. The main
139Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
treatment process is physicochemical + biochemical treatment. The sewage station can operate
continuously and stably and realize real-time up-to-standard discharge. Up-to-standard discharged
sewage enters the urban sewage treatment plant through the municipal pipe network for further
treatment.
11. One sewage treatment station is built in FAW Jiefang Dalian Diesel Engine Co. Ltd. for the
treatment of production and domestic wastewater with a total treatment capacity of 816 tons/day and
24-hour operation. The main treatment processes are distillation pretreatment of production
wastewater and biochemical treatment of comprehensive wastewater. The sewage station can operate
continuously and stably and realize real-time up-to-standard discharge. Up-to-standard discharged
sewage enters the urban sewage treatment plant through the municipal pipe network for further
treatment.(II) Waste gas treatment:
1. All waste gas treatment facilities in the Truck Factory of FAW Jiefang Automotive Co. Ltd.
can operate continuously and stably. The dust generated by the plasma cutting machine in the
stamping workshop is collected and filtered and then discharged through a 15m exhaust pipe. The
CO2 welding machine adopts a single-machine dust removal system and the waste gas is discharged
locally in the workshop after being treated by a single-machine dust collector. The waste gas
generated by the treatment and drying process before entering the frame workshop is discharged
through a 15m exhaust pipe after being treated by a direct combustion device. The exhaust gas of
VOCs from cab coating and non-metallic coating is discharged after reaching the standard through
hydrocyclone + zeolite runner adsorption concentration + RTO (regenerative incineration).
2. All waste gas treatment facilities of the Chengdu Branch of FAW Jiefang Automotive Co.
Ltd. can operate continuously and stably. The painting waste gas of the coated body is discharged
after reaching the standard through hydro cyclone + dry filtration + zeolite runner adsorption and
concentration + RTO (regenerative incineration). All welding fumes are discharged after being
treated by centralized and mobile dust removal systems and reaching the standard.
3. All waste gas treatment facilities of the Sichuan Branch of FAW Jiefang Automotive Co. Ltd.
can operate continuously and stably. The painting waste gas of the coated body is discharged after
reaching the standard through dry paper box + zeolite runner adsorption and concentration + RTO
(regenerative incineration). All welding fumes are discharged after being treated by centralized and
mobile dust removal systems and reaching the standard.
140Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
4. All waste gas treatment facilities of the Transmission Branch (Transformation Factory) of
FAW Jiefang Automotive Co. Ltd. can operate continuously and stably. The painting waste gas
generated from the coating line is discharged after reaching the standard and being treated by
activated carbon adsorption devices. All kinds of shot-blasting dust are discharged after reaching the
standard and being treated by centralized and mobile dust removal systems.
5. All waste gas treatment facilities of the Transmission Branch (Axle Factory) of FAW Jiefang
Automotive Co. Ltd. can operate continuously and stably and all welding fumes are discharged after
reaching the standard and being treated by centralized and mobile dust removal systems. The waste
gas from the painting line of workshop No.3 is treated by a zeolite runner +RCO device and
discharged after meeting the standard. The paint exhaust gas from the painting line of workshop No.1
is treated by a multi-stage zeolite + RTO device and discharged after meeting the standard.
6. All waste gas treatment facilities of the Changchun Intelligent Bus Branch of FAW Jiefang
Automotive Co. Ltd. can operate continuously and stably and all welding fumes are discharged after
reaching the standard and being treated by centralized and mobile dust removal systems. The waste
gas from the painting process is treated by the pretreatment filtration system + zeolite concentration
runner + RTO incineration treatment system and then discharged after reaching the standard.
7. All waste gas treatment facilities of FAW Jiefang (Qingdao) Automotive Co. Ltd. can operate
continuously and stably. The painting waste gas generated by Painting Workshops 1 and 2 Non-
metallic Painting Workshop and Assembly Workshops 1 and 2 is discharged after reaching the
standard and being purified by paint mist adsorbed by zeolite concentration runner and treated by an
RTO incineration device in the three workshops. The drying waste gas generated by the assembly
workshop is burned with low nitrogen and discharged after reaching the standard. It is then treated
by the quaternary combustion device and TNV combustion treatment. The drying waste gas generated
by the Painting Workshop is burned with low nitrogen and discharged after reaching the standard and
receiving TNV thermal incineration. All welding fumes are discharged after reaching the standard
and being treated by a filter cartridge dust collector.
8. The engine branch of FAW Jiefang Automotive Co. Ltd. has three quenching machines that
generate waste gas and are equipped with adsorption purification devices. After treatment the waste
gas is discharged to the standard.
9. All waste gas treatment facilities of Wuxi Diesel Engine Works of FAW Jiefang Automotive
Co. Ltd. can operate continuously and stably. The painting waste gas generated from the coating is
141Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
discharged after reaching the standard and receiving activated carbon adsorption and desorption +
catalysis and the waste gas generated from the test run is discharged after reaching the standard and
being treated by the SCR treatment device.
10. All waste gas treatment facilities of Wuxi Diesel Engine Huishan Factory of FAW Jiefang
Automotive Co. Ltd. can operate continuously and stably. The painting waste gas generated from the
coating is discharged after reaching the standard and receiving activated carbon adsorption and
desorption + catalysis and the waste gas generated from the test run is discharged after reaching the
standard and being treated by the SCR treatment device.
11. All waste gas treatment facilities of FAW Jiefang Dalian Diesel Engine Co. Ltd. can operate
continuously and stably. The painting waste gas generated from the coating is discharged after
reaching the standard and being treated by water curtain paint mist treatment device + activated
carbon adsorption and the waste gas generated from the test run is discharged after being treated by
SCR post-treatment + alkali liquor washing exhaust gas treatment device and reaching the standard.(III) Noise control:
All noise reduction and vibration reduction measures of branches and subsidiaries of the
Company can meet the requirements of national laws and regulations and the noise within the plant
boundary meets the requirements of national emission standards.(IV) Hazardous waste disposal:
All branches and subsidiaries of the Company deliver 100% of hazardous wastes to
organizations with hazardous waste transportation and disposal qualifications for compliant transfer
and disposal in strict accordance with the requirements of national laws regulations and standards.Emergency plan for environmental emergencies
The Company has established an environmental risk management mechanism refined
environmental risk assessment standards identified risk points related to wastewater waste gas noise
hazardous waste construction projects hazardous chemicals and pollutant discharge permits and
implemented risk classification based on scoring. Specific personnel are assigned responsibility for
each type of risk implementing a "one diagram one table one strategy" approach with control
measures developed for 100% of identified risks.We organized relevant departments to revise and improve the comprehensive plan special
emergency plan and on-site disposal plan of the Emergency Response Plan for Environmental
142Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Emergencies conducted a detailed risk assessment on each risk point clearly defined the work
responsibilities of each department refined the emergency disposal procedures for unexpected
environmental events supplemented and provided all kinds of emergency response materials and
trained relevant personnel on the contents of the plan as required.The Company organized relevant departments to formulate the emergency response drill plan
and carried out the drills on the integrated emergency plan special emergency plan and on-site
disposal plan for key areas such as sewage treatment stations hazardous waste stations and waste gas
treatment facilities on schedule. The drills improved the awareness of relevant personnel for the
emergency procedures and their emergency response ability and coordination ability for emergencies
providing the actual practice to the environmental emergency team and effectively improving the
emergency response-ability.Environmental self-monitoring plan
The Company and all branches and subsidiaries have prepared their monitoring plans according to
the requirements of pollutant discharge permits and regulations and organized qualified monitoring
organizations to monitor wastewater waste gas noise and others in accordance with the requirements
of the plans. The test report for 2024 shows that all monitoring indicators meet the requirements of
all national emission regulations and standards.Investment in environmental governance and protection and payment of environmental protection
taxes
In 2024 the Company paid a total of nearly 30 million yuan including various environmental
governance and protection expenses and environmental protection taxes.Measures taken to reduce carbon emissions in the reporting period and their effects
□Applicable □Not applicable
The Company pays close attention to energy conservation and carbon reduction and actively
docks with the government's preferential energy policies. In 2024 the amount of the green electricity
transaction was 50.8 million kWh and the PV clean energy project implemented by FAW Jiefang
(Qingdao) Automotive Co. Ltd. was connected to the grid to generate electricity further reducing
carbon emissions. In 2024 a total of 221 energy-saving and cost-reduction projects were established
and implemented achieving cumulative cost savings of 94.75 million yuan.Administrative Penalties due to Environmental Problems in the Reporting Period
Name of Cause for Violations Results of Impact on Rectification
143Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Company or Penalties Penalties Production and Measures of
Subsidiary Operation of the the Company
Listed Company
N/A N/A N/A N/A N/A N/A
Other environmental information that shall be disclosed
The Company and all branches and subsidiaries have disclosed environmental information as required
and carried out cleaner production audits in strict accordance with the requirements. As a responsible
central enterprise the Company strictly abides by the national requirements has been practicing the
concept of scientific development builds a clean and green enterprise and is committed to becoming
an ecological civilization benchmarking environment-friendly enterprise of "energy conservation
consumption reduction emission reduction and efficiency improvement".Other information related to environmental protection
To build an integrated large manufacturing platform featuring timely accurate high-quality
low-cost and flexible delivery in 2024 the Company restructured its manufacturing-related
organizational structure established a Safety and Environmental Protection Department increased
personnel allocation enhanced the professional capabilities of the environmental management team
and clarified environmental responsibilities for each department to ensure effective implementation
and supervision of environmental work.In 2024 the Company organized a series of "June 5th Environment Day" activities thoroughly
implementing Chairman Xi Jinping's ecological civilization thought fulfilling the Ministry of
Ecology and Environment's "Notice on Properly Conducting 2024 June 5th Environment Day
Publicity Work" and the Group's requirements for "Carrying Out 2024 Group Environmental
Protection Publicity and Training Activities." The Company independently designed a
"Comprehensively Advancing the Construction of Beautiful China" themed poster mobilizing all
units and employees through various formats to conduct organization-wide publicity promote
Environment Day knowledge advocate for universal environmental protection and spread the green
development concept of comprehensively advancing the construction of Beautiful China.Regarding the evaluation of energy conservation and environmental protection management the
Company improved assessment standards from two dimensions: foundational work and specialized
environmental protection. The Company identified 56 management points across 18 dimensions
including system management water air noise and waste and conducted systematic training for
144Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
energy conservation and environmental protection management personnel at all levels ensuring clear
work standards and defined responsibilities. The Company further solidified the responsibilities of
leaders and management personnel at all levels to ensure environmental protection management
measures are thoroughly implemented and executed.II. Social Responsibility
For details of our performance of corporate social responsibilities please refer to the 2024
Environment Society and Governance (ESG) Report published on CNINFO
(http://www.cninfo.com.cn) on the same day.III. Consolidation and Expansion of Achievements in Poverty Alleviation and Rural
Revitalization
In 2024 FAW Jiefang actively responded to the national Rural Revitalization Strategy
thoroughly implemented designated assistance work leveraged its resource advantages and focused
on supporting Fengshan County in Guangxi and Zhenlai County in Jilin. The company fully utilized
Party-building leadership to focus on industrial development livelihood infrastructure cultural
construction education and employment. Through dispatching personnel partnership building
consumption-based assistance rural infrastructure improvement and rural employment promotion
FAW Jiefang promoted economic development in assisted areas according to local conditions and
circumstances advanced rural revitalization efforts and created a new rhythm of rural prosperity.
145Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Section VI Important Matters
I. Performance of Commitments
1. 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
Reasons for Commi Commitm
Performan
Commitmen Committed by tment Commitments Date ent
ce
t Type Period
1. We will exercise shareholders' rights in strict accordance with the
Company Law and other laws administrative regulations rules and
normative documents (hereinafter referred to as "laws and
regulations") as well as the Articles of Association of FAW Car Co.Commi
Ltd. (hereinafter referred to as "Articles of Association") and when the
tment
Board of Directors and the shareholders' meeting vote on related
to
Commitmen transactions involving FAW Car Co. Ltd. matters we will fulfill the
regulati The matter
ts made obligation of avoiding voting. 2. We will commit to putting an end to Long-
ng and April 08 is now in
during asset China FAW Co. Ltd. all illegal occupation of the funds and assets of the listed company and term
reducin 2020 the normal
restructurin guarantee not to illegally transfer the funds and assets of the listed validity
g process.g company or harm the interests of the listed company and other
related
shareholders of the listed company by making use of relevant
transact
transactions. 3. We will try our best to avoid or reduce related
ions
transactions with listed companies and enterprises controlled by them.For related transactions that cannot be avoided or exist with reasonable
reasons we will strictly follow the principles of fairness impartiality
and openness in the market sign standardized related transaction
146Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
agreements with listed companies according to law and perform
related transaction decision-making procedures in accordance with
relevant laws and regulations and the Articles of Association. The price
of related transactions shall be determined based on the market-
oriented pricing principle to ensure its fairness and to perform the
information disclosure obligation of related transactions in accordance
with relevant laws and regulations and the Articles of Association and
to ensure that the legitimate rights and interests of the listed company
and other shareholders of the listed company will not be harmed
through related transactions. 4. The above commitments on regulating
related transactions will also apply to enterprises actually controlled by
FAW Car Co. Ltd. and within the scope of legal shareholders' rights
FAW Car Co. Ltd. will urge its actually controlled enterprises to fulfill
the obligations of regulating existing or possible related transactions
with listed companies. We will make every effort to urge joint ventures
or associated enterprises other than those actually controlled by FAW
Car Co. Ltd. to fulfill the obligations to regulate related transactions
that have occurred or may occur with listed companies.
1. Upon completion of the restructuring the main business of the listed
Commi company will be changed to the R&D production and sales of
tment commercial vehicles. 2. Upon completion of the restructuring FAW
to and its holding enterprises other than listed companies (hereinafter The
avoidin referred to as "holding enterprises") shall not directly or indirectly Long- commitme
China FAW Group April 08
g engage in any business or activity that constitutes or may constitute term nt is being
Co. Ltd. 2020
horizon substantial competition with the main business engaged in by listed validity fulfilled
tal companies and their holding enterprises in any form. 3. Upon normally.competi completion of the restructuring if FAW or its holding enterprises find
tion any new business opportunities that constitute or may constitute a
direct or indirect competition with the main business of the listed
147Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
company or its holding enterprises (hereinafter referred to as "such
new business opportunities") FAW will immediately notify the listed
company in writing and try its best to first provide such business
opportunities to the listed company or its holding enterprises according
to reasonable and fair terms and conditions. If the listed company or
its holding enterprises decide to give up such new business
opportunities FAW or its holding enterprises can engage in it. 4. If the
listed company or its holding enterprises give up such new business
opportunities and FAW or its holding enterprises engage in such new
business opportunities the listed company or its holding enterprises
have the right to always acquire any equity assets and other rights and
interests in such new business opportunities from FAW or its holding
enterprises one time or multiple times or the listed company or its
holding enterprises choose to entrust lease or contract to operate the
assets or businesses of FAW or its holding enterprises in such new
business opportunities in the manner permitted by laws and
regulations. FAW will ensure that its holding enterprises comply with
the above commitments. 5. China FAW's subsidiary FAW Light
Commercial Vehicle Co. Ltd. (hereinafter referred to as "FAW Light
Automobile") and its subordinate companies Harbin Light
Automobile and FAW Hongta (hereinafter collectively referred to with
Harbin Light Automobile as "Light Truck Company") are engaged in
some light truck businesses. However they are currently in a state of
discontinuation or loss with heavy burdens and unstable profitability.FAW promises that it will entrust all shares of Harbin Light
Automobile and FAW Hongta under its actual control to Jiefang
Limited for management and inject the equities of Harbin Light
Automobile and FAW Hongta under its actual control to listed
companies in batches or at one time in an appropriate way or transfer
148Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
them to other unrelated third parties at a reasonable price and in a
reasonable way or prevent the light truck company from engaging in
light truck-related businesses by exercising shareholders' rights and
perform relevant internal approval procedures as soon as possible after
the above procedures are initiated within 12 months after meeting the
requirements that the return on net assets of Harbin Light Automobile
and FAW Hongta is not lower than that of listed companies in the same
period and increasing the earnings per share of listed companies after
restructuring. 6. From the date of issuance of the commitment letter if
FAW violates any of the above commitments it will take positive
measures in favor of the listed company to eliminate horizontal
competition including but not limited to injecting assets related to
horizontal competition business into the listed company terminating
horizontal competition business or selling assets related to horizontal
competition business to an unrelated third party. 7. The above
commitments shall come into effect from the date of completion of the
restructuring and shall remain valid and irrevocable during the period
when FAW serves as the controlling shareholder or actual controller of
the listed company.
1. Upon completion of the restructuring the main business of the listed
Commi
company will be changed to the R&D production and sales of
tment
commercial vehicles. 2. Upon completion of the restructuring FAW
to The
Car Co. Ltd. and its holding enterprises other than listed companies
avoidin Long- commitme
(hereinafter referred to as "holding enterprises") shall not directly or April 08
China FAW Co. Ltd. g term nt is being
indirectly engage in any business or activity that constitutes or may 2020
horizon validity fulfilled
constitute substantial competition with the main business engaged in
tal normally.by listed companies and their holding enterprises in any form. 3. Upon
competi
completion of the restructuring if FAW or its holding enterprises find
tion
any new business opportunities that constitute or may constitute a
149Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
direct or indirect competition with the main business of the listed
company or its holding enterprises (hereinafter referred to as "such
new business opportunities") FAW or its holding enterprises will
immediately notify the listed company in writing and try its best to first
provide such business opportunities to the listed company or its
holding enterprises according to reasonable and fair terms and
conditions. If the listed company or its holding enterprises decide to
give up such new business opportunities FAW or its holding
enterprises can engage in it 4. If the listed company or its holding
enterprises give up such new business opportunities and FAW or its
holding enterprises engage in such new business opportunities the
listed company or its holding enterprises have the right to always
acquire any equity assets and other rights and interests in such new
business opportunities from FAW or its holding enterprises one time or
multiple times or the listed company or its holding enterprises choose
to entrust lease or contract to operate the assets or businesses of FAW
or its holding enterprises in such new business opportunities in the
manner permitted by laws and regulations. FAW Car Co. Ltd. will
ensure that the holding enterprises of the Company comply with the
above commitments. FAW Car Co. Ltd. will ensure that the holding
enterprises of the Company comply with the above commitments. 5.Harbin Light Automobile and FAW Hongta under FAW Light
Commercial Vehicle Co. Ltd. a subsidiary of FAW are engaged in
some light truck businesses. However they are currently in a state of
discontinuation or loss with heavy burdens and unstable profitability.FAW Car Co. Ltd. promises that it will urge to entrust all shares of
Harbin Light Automobile and FAW Hongta under its actual control to
Jiefang Limited for management and inject the equities of Harbin
Light Automobile and FAW Hongta under its actual control to listed
150Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
companies in batches or at one time in an appropriate way or transfer
them to other unrelated third parties at a reasonable price and in a
reasonable way or prevent the light truck company from engaging in
light truck-related businesses by exercising shareholders' rights and
perform relevant internal approval procedures as soon as possible after
the above procedures are initiated within 12 months after meeting the
requirements that the return on net assets of Harbin Light Automobile
and FAW Hongta is not lower than that of listed companies in the same
period and increasing the earnings per share of listed companies after
restructuring. 6. From the date of issuance of the commitment letter if
China FAW Co. Ltd. violates any of the above commitments it will
take positive measures in favor of the listed company to eliminate
horizontal competition including but not limited to injecting assets
related to horizontal competition business into the listed company
terminating horizontal competition business or selling assets related to
horizontal competition business to an unrelated third party. 7. The
above commitments shall take effect from the date of completion of
this restructuring and shall remain valid and irrevocable during the
period when China FAW Co. Ltd. serves as the controlling shareholder
or actual controller of the listed company.Commi (I) Ensure the personnel independence of the listed company: 1.tment Maintain personnel independence with the listed company and ensure
to that the General Manager Deputy General Manager Financial The
maintai Director Secretary of the Board of Directors and other senior Long- commitme
April 08
China FAW Co. Ltd. ning executives of the listed company do not hold positions other than term nt is being
2020
the directors and supervisors in FAW Car Co. Ltd. and its wholly-owned validity fulfilled
indepen holding or other enterprises and public institutions under actual control normally.dence (hereinafter referred to as "subordinate units") and do not receive
of salary from FAW Car Co. Ltd. and its subordinate units. 2. Ensure that
151Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
listed the listed company has a complete and independent labor human
compan resources and salary management system which is completely
ies independent of FAW Car Co. Ltd. and its subordinate units. (II) Ensure
the independence and integrity of the assets of the listed company: 1.Ensure that the listed company has independent and complete assets
all of which are under the control of the listed company and are
independently owned and operated by the listed company. 2. Ensure
that FAW Car Co. Ltd. and its subordinate units currently do not and
will not illegally occupy the funds and assets of the listed company. 3.China FAW Co. Ltd. will not use the assets of the listed company to
guarantee its debts. (III) Ensure the financial independence of the listed
company: 1. Ensure that the listed company continues to maintain an
independent financial department and an independent financial
accounting system. 2. Ensure that the listed company has a
standardized and independent financial and accounting system. 3.Ensure that the listed company opens a bank account independently
and does not share a bank account with FAW Car Co. Ltd. 4. Ensure
that the financial personnel of the listed company do not take part-time
jobs in FAW Car Co. Ltd. and its subordinate units. 5. Ensure that the
listed company can make financial decisions independently and that
FAW Car Co. Ltd. does not interfere with the use of funds by the listed
company. 6. Ensure that the listed company pays taxes independently
according to law. (IV) Ensure the institutional independence of the
listed company: 1. Ensure that the listed company has an independent
and complete organizational institution and can operate it
independently. 2. Ensure that the office and production and business
premises of the listed company are separated from FAW Car Co. Ltd.
3. Ensure that the Board of Directors Board of Supervisors and all
functional departments of the listed company operate and exercise their
152Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
functions and powers independently without any affiliation or
confusion with the functional departments of FAW Car Co. Ltd. (V)
Ensure the business independence of the listed company: 1. Maintain
business independence with the listed company after the restructuring
and ensure substantial horizontal competition or obviously unfair
related transactions do not exist or occur. 2. Ensure that the listed
company has the assets personnel qualifications and capabilities to
independently carry out business activities and has the ability to
independently operate in the market. 3. Ensure that FAW Car Co. Ltd.does not interfere with the normal business activities of the listed
company except for participating in the operation and management of
the listed company by exercising shareholders' rights.Commi
1. We will not interfere with the operation and management activities
tment
of the listed company beyond our authority and will not encroach on
to The
the interests of the listed company; 2. In this major asset restructuring
measur Long- commitme
the listed company issued shares to FAW Car Co. Ltd. to purchase April 08
China FAW Co. Ltd. es to term nt is being
assets and signed the Profit Forecast Compensation Agreement 2020
fill validity fulfilled
attached with effective conditions with FAW Car Co. Ltd. providing
diluted normally.legally binding safeguard measures to avoid diluted spot returns in this
spot
transaction.returns
The production qualification and product announcement of Jiefang
Descrip
Limited will be under the group management of FAW that is Jiefang
tion of The
Limited will use the production qualification of FAW vehicles and its
vehicle Long- commitme
China FAW Group production qualification and product announcement declaration will be April 08
product term nt is being
Co. Ltd. under the unified management of FAW. Upon completion of the 2020
ion validity fulfilled
restructuring FAW will continue to maintain group management based
qualific normally.on the actual needs of Jiefang Limited. Jiefang Limited can continue
ation
to use relevant production qualifications and keep the announcement
153Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
of existing models unchanged. FAW will not hinder the continuous use
of relevant qualifications by Jiefang Limited and will cooperate with
Jiefang Limited to maintain the validity of relevant qualifications.Jiefang Limited and its holding subsidiaries cannot obtain the house
ownership certificate for some properties due to historical reasons such
as government planning and adjustment land expropriation
incomplete construction application procedures and construction
beyond the red line. The above properties account for 0.6% of the total
Commi
area of house ownership of Jiefang Limited and its holding
tment
subsidiaries which is relatively small and will not have a significant The
to
adverse impact on the normal production and operation of Jiefang Novembe Long- commitme
defects
China FAW Co. Ltd. Limited. As the counterparty of the restructuring the Company r 27 term nt is being
of
promises that the failure to obtain the corresponding ownership 2019 validity fulfilled
underly
certificate of the above properties will not adversely affect the normal normally.ing
production and operation of Jiefang Limited and will not constitute a
assets
substantial obstacle to the restructuring. If the listed company or
Jiefang Limited suffers any punishment or loss due to the failure to
obtain the corresponding ownership certificate of the above properties
the Company promises to make full compensation to the listed
company or Jiefang Limited in cash timely.Relevant directors If I hold shares in FAW Jiefang prior to this restructuring I will not
supervisors and senior reduce my FAW Jiefang shareholdings through direct or indirect means
officers of listed from the date of the first disclosure of this transaction by FAW Jiefang
Commitmen companies (Wu Bilei until its completion nor do I have any plans to reduce FAW Jiefang To the The
ts made Li Sheng Wang Hao Other shares. During this period if I receive additional shares due to FAW completio commitme
October
during asset Liu Yanchang Deng commit Jiefang's issuance of bonus shares conversion of capital reserves into n of nt is being
222024
restructurin Weigong Chen Hua ments share capital or other such events I will also abide by the implemen fulfilled
g Han Fangming Mao aforementioned arrangements. If the China Securities Regulatory tation normally.Zhihong Dong Commission and the Shenzhen Stock Exchange implement new
Zhonglang Li Ying regulations regarding share reduction I will also strictly comply with
Xu Haigen Wang such relevant regulations.
154Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Lijun Duan Yinghui
Yu Changxin Ji Yizhi
Wang Jianyu Wang
Jianxun)
1. Not to transfer benefits to other units or individuals without
compensation or on unfair terms nor to adopt other methods that
harm the interests of the listed company; 2. To restrict my position-
Relevant directors
related consumption behavior; 3. Not to use the listed company's
supervisors and senior
assets for investment or consumption activities unrelated to my
officers of listed
duties; 4. To ensure the remuneration system established by the Board
companies (Wu Bilei
of Directors or the Compensation and Evaluation Committee is linked
Li Sheng Wang Hao
to the implementation of the listed company's measures to
Liu Yanchang Deng The
compensate for diluted immediate returns; 5. To ensure the exercise
Weigong Chen Hua Other Long- commitme
conditions of any proposed equity incentive plans (if any) are linked October
Han Fangming Mao commit term nt is being
to the implementation of the listed company's measures to 29 2024
Zhihong Dong ments validity fulfilled
compensate for diluted immediate returns. I commit to strictly
Zhonglang Li Ying normally.fulfilling the above commitments to ensure the company's return
Xu Haigen Wang
compensation measures can be effectively implemented. If I violate
Lijun Duan Yinghui
or refuse to fulfill the above commitments resulting in losses to the
Yu Changxin Ji Yizhi
listed company I will bear legal responsibility for compensation and
Wang Jianyu Wang
agree to accept relevant penalties or management measures in
Jianxun)
accordance with regulations and rules established or issued by the
China Securities Regulatory Commission the Shenzhen Stock
Exchange and other securities regulatory authorities.Commi 1. Following the completion of this restructuring the Company will
The
tments strictly exercise shareholder rights in accordance with the relevant
Long- commitme
China FAW Group regardi provisions of the "Company Law" and other laws administrative October
term nt is being
Co. Ltd. ng regulations rules and normative documents (hereinafter referred to as 29 2024
validity fulfilled
horizon "laws and regulations") and the "Articles of Association of the Listed
normally.tal Company." The Company will fulfill its obligation to abstain from
155Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
competi voting when the Board of Directors and shareholders' meetings vote on
tion related party transactions involving the Company. 2. We will commit
related to putting an end to all illegal occupation of the funds and assets of the
party listed company and guarantee not to illegally transfer the funds and
transact assets of the listed company or harm the interests of the listed company
ions and other shareholders of the listed company by making use of relevant
and transactions. 3. We will try our best to avoid or reduce related
fund transactions with listed companies and enterprises controlled by them.appropr For related transactions that cannot be avoided or exist with reasonable
iation reasons we will strictly follow the principles of fairness impartiality
and openness in the market sign standardized related transaction
agreements with listed companies according to law and perform
related transaction decision-making procedures in accordance with
relevant laws and regulations and the Articles of Association of the
Listed Company. The price of related transactions shall be determined
based on the market-oriented pricing principle to ensure its fairness
and to perform the information disclosure obligation of related
transactions in accordance with relevant laws and regulations and the
Articles of Association and to ensure that the legitimate rights and
interests of the listed company and other shareholders of the listed
company will not be harmed through related transactions. 4. The above
commitments on regulating related transactions will also apply to
enterprises actually controlled by the Company and within the scope
of legal shareholders' rights the Company will urge its actually
controlled enterprises to fulfill the obligations of regulating existing or
possible related transactions with listed companies. We will make
every effort to urge joint ventures or associated enterprises other than
those actually controlled by the Company to fulfill the obligations to
regulate related transactions that have occurred or may occur with
156Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
listed companies.(I) Ensure the personnel independence of the listed company: 1.Maintain personnel independence with the listed company and ensure
that General Manager Deputy General Manager Financial Director
Secretary of the Board of Directors and other senior executives of the
listed company do not hold positions other than directors and
supervisors in the Company and its wholly-owned holding or other
enterprises and public institutions under actual control (hereinafter
referred to as "subordinate units") and do not receive salary from the
Company and its subordinate units. 2. Ensure that the listed company
has a complete and independent labor human resources and salary
management system which is completely independent of the Company
and its subordinate units. (II) Ensure the independence and integrity of
The
the assets of the listed company: 1. Ensure that the listed company has
Other Long- commitme
China FAW Group independent and complete assets all of which are under the control of October
commit term nt is being
Co. Ltd. the listed company and are independently owned and operated by the 29 2024
ments validity fulfilled
listed company. 2. Ensure that the Company and its subordinate units
normally.currently do not and will not illegally occupy the funds and assets of
the listed company. 3. The Company will not use the assets of the listed
company to guarantee its debts. (III) Ensure the financial independence
of the listed company: 1. Ensure that the listed company continues to
maintain an independent financial department and an independent
financial accounting system. 2. Ensure that the listed company has a
standardized and independent financial and accounting system. 3.Ensure that the listed company opens a bank account independently
and does not share a bank account with the Company. 4. Ensure that
the financial personnel of the listed company do not take part-time jobs
in the Company and its subordinate units. 5. Ensure that the listed
company can make financial decisions independently and the
157Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Company does not interfere with the use of funds by the listed
company. 6. Ensure that the listed company pays taxes independently
according to law. (IV) Ensure the institutional independence of the
listed company: 1. Ensure that the listed company has an independent
and complete organizational institution and can operate it
independently. 2. Ensure that the office and production and business
premises of the listed company are separated from the Company. 3.Ensure that the Board of Directors Board of Supervisors and all
functional departments of the listed company operate and exercise their
functions and powers independently without any affiliation or
confusion with the functional departments of the Company. (V) Ensure
the business independence of the listed company: 1. Maintain business
independence with the listed company after the transaction and ensure
substantial horizontal competition or obviously unfair related
transactions do not exist or occur. 2. Ensure that the listed company
has the assets personnel qualifications and capabilities to
independently carry out business activities and has the ability to
independently operate in the market. 3. Ensure that the Company does
not interfere with the normal business activities of the listed company
except for participating in the operation and management of the listed
company by exercising shareholders' rights.From the date of the first disclosure of FAW Jiefang's restructuring
until its completion the Company will not reduce its FAW Jiefang
Commi To the The
shareholdings nor does it have any plans to reduce FAW Jiefang
tment completio commitme
shares. During this period if the Company receive additional shares October
China FAW Co. Ltd. to share n of nt is being
due to FAW Jiefang's issuance of bonus shares conversion of capital 29 2024
reducti implemen fulfilled
reserves into share capital or other such events I will also abide by the
on tation normally.aforementioned arrangements. If the China Securities Regulatory
Commission and the Shenzhen Stock Exchange implement new
158Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
regulations regarding share reduction the Company will also strictly
comply with such relevant regulations.
1. Exercise shareholder rights in accordance with relevant laws
regulations and the "Articles of Association" of the listed company; not
interfere with the business management activities of the listed
company beyond authorized powers and not misappropriate the
interests of the listed company; 2. After the issuance date of this
commitment and before the completion of this restructuring of the
listed company if the Shenzhen Stock Exchange issues other new
To the The
regulatory requirements regarding return compensation measures and
Other completio commitme
related commitments and the above commitments cannot satisfy these October
China FAW Co. Ltd. commit n of nt is being
requirements the Company commits to issue supplementary 29 2024
ments implemen fulfilled
commitments in accordance with the exchange's latest requirements;
tation normally.
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 agree 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 Jiefang's restructuring
until its completion the Company will not reduce its FAW Jiefang
Commi shareholdings nor does it have any plans to reduce FAW Jiefang To the The
tment shares. During this period if the Company receive additional shares completio commitme
FAW Bestune Auto October
to share due to FAW Jiefang's issuance of bonus shares conversion of capital n of nt is being
Co. Ltd. 22 2024
reducti reserves into share capital or other such events I will also abide by the implemen fulfilled
on aforementioned arrangements. If the China Securities Regulatory tation normally.Commission and the Shenzhen Stock Exchange implement new
regulations regarding share reduction the Company will also strictly
159Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
comply with such relevant regulations.
1. I commit not to transfer benefits to other units or individuals without
compensation or on unfair terms and not to use other methods that
harm the Company's interests;
2. I commit to restricting my position-related consumption behavior;
3. I commit not to use Company assets for investment or consumption
activities unrelated to my duties;
Relevant directors 4. I commit that the remuneration system established by the Board of
supervisors and senior Directors or the Compensation and Evaluation Committee will be
officers of listed linked to the implementation of the Company's return compensation
Commi
companies (Hu measures;
tment
Hanjie Wu Bilei Li 5. I commit that the exercise conditions for equity incentives will be
to The
Commitmen Sheng Yu Changxin linked to the implementation of the Company's return compensation
measur Long- commitme
t made upon Liu Yanchang Han measures; June 19
es to term nt is being
initial Fangming Mao 6. After the issuance date of this commitment and before the 2023
fill validity fulfilled
public Zhihong Dong completion of this issuance if the China Securities Regulatory
diluted normally.offering or Zhonglang Wang Commission (CSRC) issues other new regulatory requirements
spot
refinancing Jianxun Zhang regarding return compensation measures and related commitments
returns
Guohua Bi Wenquan and the above commitments cannot satisfy these CSRC requirements
Li Hongjian Tian I commit to issuing supplementary commitments in accordance with
Haifeng Ji Yizhi) the CSRC's latest requirements;
7. I commit to effectively fulfill all commitments made. If I violate or
refuse to fulfill these commitments I will publicly provide
explanations and apologize at the shareholders' meeting and in CSRC-
designated publications and accept relevant regulatory measures; if
violations of these commitments cause losses to the Company or
investors I will bear legal responsibility in accordance with the law.China FAW Co. Ltd. Commi In accordance with relevant regulations the Company's controlling June 19 Long- The
FAW Bestune Auto tment shareholder FAW Bestune Auto Co. Ltd. and its party acting in 2023 term commitme
160Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Co. Ltd. to concert FAW Bestune Auto Co. Ltd. make the following validity nt is being
measur commitments to ensure the Company's return compensation measures fulfilled
es to can be effectively implemented: normally.fill 1. Not to interfere with the Company's business management activities
diluted beyond authorized powers and not to misappropriate the Company's
spot interests;
returns 2. After the issuance date of this commitment and before the
completion of this issuance if the China Securities Regulatory
Commission and Shenzhen Stock Exchange issue other new regulatory
requirements regarding return compensation measures and related
commitments and this commitment cannot satisfy these requirements
the Company commits to issue supplementary commitments in
accordance with the latest requirements issued by the China Securities
Regulatory Commission and Shenzhen Stock Exchange.Equity
incentive
N/A N/A
commitmen
t
Other
commitmen
ts to
minority N/A N/A
shareholder
s of the
Company
Based on confidence in your company's future development and The
Other Other
recognition of its intrinsic value and to enhance investor confidence January commitme
commitmen China FAW Co. Ltd. commit In 2025
maintain capital market stability and protect investor interests China 17 2025 nt is being
ts ments
FAW Co. Ltd. commits not to reduce its shareholding in your fulfilled
161Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
company through any means during 2025. During this commitment normally.period China FAW Co. Ltd. will also apply this commitment to any
new shares acquired through your company's conversion of capital
reserves into share capital distribution of stock dividends rights
issues additional share issuances or other similar corporate actions.Whether the
commitmen
Yes
t is fulfilled
on time
If the
commitmen
t 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
162Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
2. If there is a profit forecast for the Company's assets or projects and the reporting period is
still in the profit forecast period the Company shall explain that the assets or projects
reaching the original profit forecast and the reasons
□Applicable □Not applicable
II. Non-operating Occupation of Funds by Controlling Shareholders and Other Related
Parties to the Listed Company
□Applicable □Not applicable
During the reporting period there was no non-operating occupation of funds by controlling
shareholders and other related parties.III. Illegal External Guarantee
□Applicable □Not applicable
The Company has no illegal external guarantee in the reporting period.IV. Description of the Board of Directors on the latest "Non-standard Audit Report"
□Applicable □Not applicable
V. Description of the Board of Directors the Board of Supervisors and Independent Directors
(if any) on the "Non-standard Audit Report" of the Accounting Firm in the Reporting Period
□Applicable □Not applicable
VI. Description of Changes in Accounting Policies and Accounting Estimates or Correction of
Significant Accounting Errors Compared with the Financial Report of the Previous Year
□Applicable □Not applicable
The Ministry of Finance issued "Interpretation No.18 of Accounting Standards for Business
Enterprises" (CK [2024] No.24 Interpretation No.18) on December 31 2024.Accounting treatment of warranty-type quality assurance does not constitute a separate performance
obligation
Interpretation No.18 stipulates that when accounting for provisions arising from warranty-type
quality assurance that does not constitute a separate performance obligation enterprises should in
accordance with the relevant provisions of "No.13 of Accounting Standards for Business Enterprises-
163Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Contingencies" debit "Main Operating Costs" "Other Operating Costs" or other relevant accounts
based on the determined provision amount and credit the "Provisions" account. These should be
correspondingly presented in the "Operating Costs" item in the income statement and in the "Other
Current Liabilities" "Non-current Liabilities Due Within One Year" "Provisions" or other relevant
items in the balance sheet.The Company has implemented this provision from the date of issuance of Interpretation No.18 and
has made retrospective adjustments.The impact of implementing the above accounting policies on the consolidated income statement for
2024 is as follows:
Consolidated income statement items
Impact amount (Yuan)
(2024)
Sales expenses -649934273.23
Operating costs 649934273.23
The impact of implementing the above accounting policies on the consolidated income statement
for 2023 is as follows:
Consolidated income Before adjustment Adjustment amount After
statement items (2023) (Yuan) (Yuan) adjustment (Yuan)
Sales expenses 1677186816.57 -573588104.47 1103598712.10
Operating costs 58827779239.02 573588104.47 59401367343.49
VII. Description of Changes in the Scope of Consolidated Statements Compared with the
Financial Report of the Previous Year
□Applicable □Not applicable
1. On August 16 2024 the Company invested in establishing FAW Jiefang Group International
Automobile Co. Ltd.
2. In December 2024 the Company acquired 100% equity in Jiefang Motors Tanzania Ltd. from
China Faw Group Import & Export Corp a subsidiary of FAW Group for 57800429.15 yuan in
cash. Since both parties involved in the merger were under the control of FAW Group before and
after the transaction and this control was not temporary this transaction constitutes a business
combination under common control with the merger date established as December 31 2024.
164Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
3. In December 2024 the Company acquired 55% equity in FAW (Africa) Investment Co. Ltd. from
China Faw Group Import & Export Corp a subsidiary of FAW Group for 327948795.48 yuan in
cash. Since both parties involved in the merger were under the control of FAW Group before and
after the transaction and this control was not temporary this transaction constitutes a business
combination under common control with the merger date established as December 31 2024.VIII. Appointment and Dismissal of Accounting Firm
Accounting Firm Currently Hired
Grant Thornton Certified Public
Name of Domestic Accounting Firm Accountants (Special General
Partnership)
Remuneration of Domestic Accounting Firm (10
95
thousand yuan)
Consecutive Years of Audit Service Provided by
8 years
Domestic Accounting Firm
Name of Certified Public Accountant of Domestic
Wu Songlin Yang Dongmin
Accounting Firm
Consecutive Years of Audit Service Provided by a
Wu Songlin (2 years) Yang Dongmin (3
Certified Public Accountant of a Domestic Accounting
years)
Firm
Whether to change to hire a new accounting firm in the current period
□Yes □No
Employment of accounting firm financial consultant or sponsor for internal control audit
□Applicable □Not applicable
1. After deliberation and adoption at the 19th meeting of the 10th Board of Directors and the
Fourth Extraordinary Shareholders' Meeting of 2024 Grant Thornton Accounting Firm (special
general partnership) was appointed as the internal control audit institution of the Company in 2024
with an internal control audit fee of 600 thousand yuan.
2. The Company engaged China International Capital Corporation Limited as the sponsor and
underwriter for its private placement of A-shares to specific targets with total sponsorship
underwriting and continuous supervision fees amounting to 90 thousand yuan.
3. The Company engaged China Securities Co. Ltd. as an independent financial advisor for its
major asset restructuring with a financial advisory fee of 200 thousand yuan.
165Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
IX. Delisting after Disclosure of Annual Report
□Applicable □Not applicable
X. Matters Related to Bankruptcy Reorganization
□Applicable □Not applicable
The Company has no matter related to bankruptcy reorganization in the reporting period.XI. Major Litigation and Arbitration Matters
□Applicable □Not applicable
Basic Litigation Implemen
Amount Progress
Informati (Arbitrati tation of Date
Involved Estimated of Discl
on about on) Litigation of
(10 liabilities formed Litigation osure
Litigation Results (Arbitrati Disclo
thousand or not (Arbitrati Index
(Arbitrati and on) sure
yuan) on)
on) Impact Judgment
Case not
Including
closed by
estimated No
Case not the end of
4844.17 liabilities of significan
Summary closed the
23.9748 million t impact
of other reporting
yuan
litigation period
not Judgment
reaching has been
the major made or
No
disclosure Case the
5288.99 No significan
standard closed execution
t impact
has been
complete
d
XII. Punishment and Rectification
□Applicable □Not applicable
The company has no punishment or rectification in the reporting period.XIII. Integrity of the Company and Its Controlling Shareholders and Actual Controllers
□Applicable □Not applicable
166Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
XIV. Major Related Transactions
1. Related transactions related to daily operations
□Applicable □Not applicable
Pricing Price Whether
Type Conten Proportion
Princip of it Settlement
of t of Amount of to the Approved Available
Related le of Relat Exceeds Method of Date of
Corre Relate Relate Related Amount of Transaction Market Value Disclosure
Transactio Relate ed the Related Disclosu
lation d d Transaction (10 Similar Amount (10 of Similar Index
n Party d Trans Approve Transactio re
Transa Transa thousand yuan) Transactio thousand yuan) Transactions
Transa actio d n
ction ction ns
ction n Amount
Goods Goods
purcha purcha
Other
se and se and
Fawer relate Mark Cash +
recepti recepti Market
Auto Parts d et 139356.56 2.64% 197238 No bill 139356.56 http://www.cni
on of on of price
Co. Ltd. partie price settlement nfo.com.cn/ne
labor labor
s w/disclosure/st
service service
ockstockCode
s s January
=000800&orgI
The 31 2024
d=gssz0000800
China same
&sjstsBond=fal
FAW ultim
Sales Sales Mark Cash + se#latestAnnou
Group ate Market
of of et 1220820.37 20.84% 1475014 No bill 1220820.37 ncement
Import & contr price
goods goods price settlement
Export ollin
Co. Ltd. g
party
Total -- -- 1360176.93 -- 1672252 -- -- -- -- --
167Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Details of large sales returns N/A
Actual performance in the reporting
period if the total amount of daily
For details about the actual performance of related transactions in the reporting period please see Item XIV "Related Parties and Related
related transactions to be incurred in
Transactions" in Section X of this report.the current period is estimated by
category
Reasons for the large difference
between transaction price and market N/A
reference price
168Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
2. Related transactions arising from the acquisition and sale of assets or equity
□Applicable □Not applicable
Pricin Settle
Type g Book value Appraisal ment
Transaction
of Princi of value of the Transfer Metho
profit and
Related Correl Relate Content of Related ple of transferred transferred price (10 d of Date of
loss (10 Disclosure Index
Parties ation d Transaction Relate assets (10 assets (10 thousand Relate Disclosure
thousand
Transa d thousand thousand yuan) d
yuan)
ction Transa yuan) yuan) Transa
ction ction
http://www.cninfo.c
Parent
Asset om.cn/new/disclosu
compa 21.8393% Equity of
China apprai Cash re/stockstockCode
ny of Equity the First October 29
FAW Co. sal 445920.62 492388.61 492388.61 settle 46926.53 =000800&orgld=gs
the sale Automobile Finance 2024
Ltd. pricin ment sz0000800&sjstsBo
Comp Co. Ltd.g nd=false#latestAnn
any
ouncement
The http://www.cninfo.c
China
same Asset om.cn/new/disclosu
FAW
ultima Equity 55% equity of FAW apprai Cash re/stockstockCode
Group December
te acquis (Africa) Investment sal 72753.54 61627.05 32794.88 settle 0 =000800&orgld=gs
Import & 21 2024
contro ition Co. Ltd. pricin ment sz0000800&sjstsBo
Export
lling g nd=false#latestAnn
Co. Ltd.party ouncement
Reasons for the large difference between the transfer
N/A
price and the book value or appraisal value
Sale of 21.8393% equity in First Automobile Finance Co. Ltd. with no change to the Company's main business
Impact on the Company's operating results and operations which will continue to develop core product lines; Acquisition of 55% equity in FAW (Africa)
financial position Investment Co. Ltd. will expand the Company's overseas capital operation channels promote growth in overseas
export volumes while also extending influence to increase sales volumes in surrounding countries and regions
Performance achievement during the reporting
N/A
period if the relevant transactions involve
169Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
performance commitments
170Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
3. Related transactions of joint foreign investment
□Applicable □Not applicable
4. Related credit and debt transactions
□Applicable □Not applicable
Whether there are non-operating related credit and debt transactions
□Yes □No
The Company has had no non-operating related credit and debt transactions during the reporting
period.
5. Transaction with related finance companies
□Applicable □Not applicable
Deposit Business
Amount Incurred in Current
Maximum Period
Daily Deposit Total Ending
Opening Total Deposit
Related Deposit Interest Withdrawal Balance (10
Correlation Balance (10 Amount in the
Parties Limit (10 Rate Amount in the thousand
thousand yuan) Current Period
thousand Range Current Period yuan)
(10 thousand
yuan) (10 thousand
yuan)
yuan)
First
The same
Automo
ultimate 0.455%-
bile 3000000 1434091.03 28349931.94 28896885.46 887137.51
controlling 2.3%
Finance
party
Co. Ltd.Credit Granting or Other Financial Businesses
Actual Amount
Total Amount (10
Related Parties Correlation Business Type Incurred (10 thousand
thousand yuan)
yuan)
First Automobile The same ultimate Other financial
900000191125.56
Finance Co. Ltd. controlling party businesses
6. Transactions between finance companies controlled by the Company and related parties
□Applicable □Not applicable
171Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
There is no deposit loan credit granting or other financial businesses between the finance
companies controlled by the Company and related parties.
7. Other major related transactions
□Applicable □Not applicable
On January 30 2024 the 10th meeting of the 10th Board of Directors of the Company reviewed
and approved the Proposal on Estimated Amount of Daily Related Transactions in 2024 and the
Proposal on Estimated Amount of Financial Business with First Automobile Finance Co. Ltd. in
2024 which were reviewed and approved by the first extraordinary shareholders' meeting of the
Company in 2024.Relevant Inquiries on Disclosure Website of Interim Report of Major Related Transactions
Disclosure Date of Name of Temporary
Name of Temporary Announcement Temporary Announcement Disclosure
Announcement Website
Announcement on the estimated
CNINFO
amount of daily related transactions in January 31 2024
(http://www.cninfo.com.cn)
2024
Announcement on the estimated
CNINFO
amount of financial business with First January 31 2024
(http://www.cninfo.com.cn)
Automobile Finance Co. Ltd. in 2024
XV. 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 contract made by the Company during the reporting period.
(3) Lease
□Applicable □Not applicable
Description of lease
For details of the Company's operating lease please refer to Note 14 "Investment real estate" Note
172Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
15 "Fixed assets" and Note 19 "Right-of-use assets" in Notes to Items in VII "Consolidated
Financial Statements" of Section X "Financial Report" and Note 5 "Information of related
transactions" in XIV "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 guarantee in the reporting period.
3. Cash Assets Management Entrusted to Others
(1) Entrusted financial management
□Applicable □Not applicable
The Company has no entrusted financial management in the reporting period.
(2) Entrusted loans
□Applicable □Not applicable
The Company has no entrusted loans in the reporting period.
4. Other major contracts
□Applicable □Not applicable
The Company has no other major contracts in the reporting period.XVI. Other Major Matters to be Explained
□Applicable □Not applicable
On June 19 2023 the Company held the 4th Meeting of the 10th Board of Directors and the 3rd
Meeting of the 10th Board of Supervisors respectively to deliberate and approve relevant proposals
such as the Proposal on the Company's Eligibility for Issuing A-shares to Specific Objects and the
Proposal on the Company's Plan for Issuing A-shares to Specific Objects in 2023. These Proposals
were deliberated and approved at the 2nd Extraordinary Shareholders' Meeting of the Company held
173Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
on July 18 2023. On July 18 2023 the Company disclosed the Announcement of Approval from
China FAW Group Co. Ltd. Regarding the Matters of Issuing A-Share Stocks to Specific Objects in
the Company in 2023. On August 3 2023 the Company disclosed the Announcement on the
Application for the Issuance of A-shares to Specific Objects in 2023 Accepted by the Shenzhen Stock
Exchange. On October 13 2023 the Company disclosed the Announcement on the Issuance of A-
shares to Specific Objects in 2023 Accepted by the Listing Review Center of the Shenzhen Stock
Exchange. On June 25 2024 the Company disclosed the Announcement of Obtaining the Approval
of the China Securities Regulatory Commission (CSRC) for the Application for Issuing Shares to
Specific Objects and the Prospectus for Issuing A-shares to Specific Objects in 2023 (Registration
Draft). On October 15 2024 the Company disclosed the Prompt Announcement on the Disclosure
of the Report on the Issuance of A-Shares Stocks to Specific Objects the Report on the Issue of A-
shares to Specific Objects in 2023 and other relevant announcements. On October 17 2024 the
Company held the 16th meeting of the 10th Board of Directors and the 13th meeting of the 10th
Board of Supervisors respectively and reviewed and approved the Proposal on Adjusting the
Amount of Raised Funds to be Invested in Fundraising Projects Proposal on Adding Implementation
Entities for Fundraising Projects and other related proposals. On October 18 2024 the Company
disclosed the Announcement on the Listing of A-shares Stocks Issued to Specific Objects in 2023
and other relevant announcements. The listing date of the new shares is October 21 2025.For details of the above matters please refer to the Company's relevant announcements
published in Securities Times China Securities Journal and CNINFO (http://www.cninfo.com.cn).XVII. Major Events of Subsidiaries
□Applicable □Not applicable
174Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Section VII 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
Bonu Transfer
Issue of New s red from
Qty. Scale Others Subtotal Qty. Scale
Shares share Accumu
s lation
Fund
I. Restricted shares 14433543 0.31% 298507462 - - -12923310 285584152 300017695 6.09%
1. Shares held by the
-
state
2. Shares held by the
1358208941358208941358208942.76%
state-owned legal person
3. Shares held by other
144335430.31%145970151-129233101330468411474803843.00%
domestic enterprises
Including: shares held
1459701511459701511459701512.97%
by a domestic legal person
Shares held by a
144335430.31%-12923310-1292331015102330.03%
domestic natural person
4. Shares held by foreign
1671641716716417167164170.34%
enterprises
Including: shares held
1671641716716417167164170.34%
by an overseas legal person
Shares held by
--
overseas natural person
II. Unrestricted shares 4622564932 99.69% -211451 -211451 4622353481 93.91%
175Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
1. CNY ordinary shares 4622564932 99.69% -211451 -211451 4622353481 93.91%
2. Foreign shares listed
-
in China
3. Foreign shares listed
-
overseas
4. Others -
III. Total number of shares 4636998475 100.00% 298507462 -13134761 285372701 4922371176 100.00%
176Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Reasons for changes in shares
□Applicable □Not applicable
1. During the reporting period the Company failed to achieve the performance assessment
objectives set for the third release period first granted and the second release period reserved by the
Company's Phase I restricted share incentive plan and a total of 13134761 shares were repurchased
and canceled due to organizational transfer statutory retirement and personal reasons.
2. During the reporting period the Company completed the issue of A-shares to specific objects
and the number of shares issued was 298507462.To sum up the total equity of the Company was changed to 4922371176 shares.Approval of share changes
□Applicable □Not applicable
(1) 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. A total of
512807 restricted shares were repurchased and canceled. On December 6 2023 the Proposal was
deliberated and approved at the Company's fourth Extraordinary Shareholders' Meeting in 2023.
(2) On March 28 2024 the 11th meeting of the 10th Board of Directors and the 10th meeting
of the 20th Board of Supervisors of the Company deliberated and approved the Proposal on
Unsuccessful Lifting of Conditions of the Third Release Period First Granted by the Phase I Restricted
Share Incentive Plan for Releasing the Restricted Sales and of Conditions of the Second Release
Period Reserved by the Phase I Restricted Share Incentive Plan for Releasing the Restricted Sales and
Repurchase and Cancellation of Some Restricted Shares with a total number of 12621954 restricted
shares repurchased and canceled. On April 25 2024 the proposal was reviewed and approved at the
Company's 2023 Annual Shareholders' Meeting.
(3) On June 19 2023 the Company held the 4th Meeting of the 10th Board of Directors and the
3rd Meeting of the 10th Board of Supervisors respectively to deliberate and approve relevant
proposals such as the Proposal on the Company's Eligibility for Issuing A-shares to Specific Objects
and the Proposal on the Company's Plan for Issuing A-shares to Specific Objects in 2023. On July
13 2023 FAW Group the entity responsible for state-owned assets supervision and management
issued the "Reply on Matters Concerning FAW Jiefang Group Co. Ltd.'s 2023 Private Placement of
A-shares to Specific Investors" approving the issuer's private placement. On July 18 2023 the
177Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
aforementioned resolutions were reviewed and approved at the Company's second Extraordinary
Shareholders' Meeting in 2023. On October 12 2023 the Shenzhen Stock Exchange approved the
Company's private placement of shares to specific investors. On June 21 2024 the China Securities
Regulatory Commission issued the "Reply on Approving the Registration of FAW Jiefang Group Co.Ltd.'s Private Placement of Shares to Specific Investors" approving the Company's registration
application for the private placement of shares.Transfer of share changes
□Applicable □Not applicable
(1) On March 15 2024 the Company submitted relevant registration materials to CDSC for
512807 shares involved in equity incentive repurchase and cancellation. On March 27 2024 CSDC
issued the Confirmation of Securities Transfer Registration to the Company and the total share capital
of the Company was reduced to 4636485668 shares.
(2) On June 11 2024 the Company submitted relevant registration materials to CDSC for
12621954 shares involved in equity incentive repurchase and cancellation. On June 13 2024 CSDC
issued the Confirmation of Securities Transfer Registration to the Company and the total share capital
of the Company was reduced to 4623863714 shares.
(3) On October 12 2024 the Company submitted relevant registration materials to the CDSC
for the private placement of 298507462 shares. On November 16 2024 CSDC issued the
Confirmation of Acceptance of Application for Share Registration to the Company. The new shares
were listed on the Shenzhen Stock Exchange on October 21 2024 with the Company's total share
capital decreasing to 4922371176 shares.Impact of changes in shares on financial indicators such as basic earnings per share and diluted
earnings per share in the latest year and the latest period and net assets per share attributable to
shareholders with ordinary shares of the Company
□Applicable □Not applicable
In the reporting period the increase in share capital of the Company was 285372701 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 common shareholders of the
Company.
178Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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
179Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Unit: share
Number of Number of
Number of Number of
Restricted Restricted
Restricted Restricted
Shares Shares Reason for
Name of Shareholder Shares at the Shares at the Release Date
Increased in Released in Restriction
Beginning of End of the
the Current the Current
the Period Period
Period Period
National Manufacturing Transformation and Non-public
67164179 67164179 April 21 2025
Upgrading Fund Co. Ltd. offering
Lord Abbett China Asset Management Co. Non-public
57611940 57611940 April 21 2025
Ltd. offering
Non-public
Jilin Province Private Equity Co. Ltd. 46268656 46268656 April 21 2025
offering
Caitong Fund Management Co. Ltd. Non-public
30447765 30447765 April 21 2025
offering
AEGON-INDUSTRIAL Fund Management Non-public
25074626 25074626 April 21 2025
Co. Ltd. offering
Jilin Province Yandong State-Owned Capital Non-public
22388059 22388059 April 21 2025
Investment Co. Ltd. offering
UBS AG Non-public
16716417 16716417 April 21 2025
offering
Jilin Changbai Mountain Private Fund
Management Co. Ltd. - Jilin Province Non-public
16417910 16417910 April 21 2025
Qianheng Investment Partnership (Limited offering
Partnership)
Changchun Equity Investment Fund
Management Co. Ltd. - Changchun Non-public
16417910 16417910 April 21 2025
Changxing Equity Investment Fund offering
Partnership (Limited Partnership)
Lifting of restrictions
Post-
in accordance with
Wu Bilei 95992 58853 37139 departure
regulations after the
lockup
post-departure lockup
180Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
period expires
Each year 25% of the
Executive total shares held are
Li Sheng 80966 49639 31327
lockup released from
restriction
Each year 25% of the
Executive total shares held are
Zhang Guohua 95967 39415 56552
lockup released from
restriction
Lifting of restrictions
Post- in accordance with
Ji Yizhi 80966 17349 63617 departure regulations after the
lockup post-departure lockup
period expires
Each year 25% of the
Executive total shares held are
Wang Jianyu 65544 34217 31327
lockup released from
restriction
Each year 25% of the
Executive total shares held are
Tian Haifeng 80966 33253 47713
lockup released from
restriction
Each year 25% of the
Executive total shares held are
Wang Jianxun 80966 49639 31327
lockup released from
restriction
The restrictions on
sales are lifted in
accordance with the
Other core employees of senior director and Equity
13852176 12640945 1211231 restricted stock
above incentive etc.incentive plan and
assessment objectives
etc.
181Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Total 14433543 298507462 12923310 300017695 -- --
182Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
II. Issuance and Listing of Securities
1. Issuance of Securities (Excluding Preferred Share) in the Reporting Period
√ Applicable □ Not applicable
Name of
Transac
Shares Issue
Quantity tion Date of
and Issue Price (or Quantity Date of Disclosur
Approved for Termin Disclosur
Derivativ Date Interest Issued Listing e Index
Listing ation e
e Rate)
Date
Securities
Stocks
http://ww
w.cninfo.c
om.cn/ne
w/disclos
ure/stock
stockCod
6.70
Septembe October e=000800 October
A share yuan/shar 298507462 298507462
r 27 2024 21 2024 &orgld=g 18 2024
e
ssz00008
00&sjstsB
ond=false
#latestAn
nounceme
nt
Description of issuance of securities (excluding preferred shares) in the reporting period
On June 21 2024 the China Securities Regulatory Commission issued the "Reply on Approving
the Registration of FAW Jiefang Group Co. Ltd.'s Private Placement of Shares to Specific Investors"
approving the Company's registration application for the private placement of shares. The Company
completed the issuance and listing of the relevant shares in October 2024.
2. Changes in the Total Number of Shares and Shareholder Structure as well as Changes in
the Structure of the Company's Assets and Liabilities
□Applicable □Not applicable
During the reporting period according to the restricted share incentive plan the Company
repurchased and canceled a total of 13134761 granted shares of incentive objects that failed to
conform to the restricted share incentive plan. In addition the Company completed the issuance of a
total of 298507462 shares to specific objects. The aforementioned transactions increased the
Company's share capital by 285372701 shares in total changing the Company's total number of
shares from 4636998475 to 4922371176.
183Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
3. Existing Internal Employee Shares
□Applicable □Not applicable
III. Shareholders and Actual Controllers
1. Number of Shareholders and Shareholdings of the Company
Unit: share
Total
Number Total
Total of Number of
Number Ordinary Shareholder
of Sharehold s with
Sharehold ers at the Preferred Total Number of Preferred
ers with End of Share with Shareholders with
Ordinary 71949 the Last 70219 Restored 0 Resumed Voting Rights at 0
Shares at Month Voting the End of the Last Month
the End before the Rights at before the Disclosure Date
of the Disclosur the End of
Reporting e Date of the
Period the Reporting
Annual Period
Report
Shareholdings of Shareholders Holding More than 5% of the Shares or Top 10 Shareholders (Excluding Shares Lent
through Securities Refinancing).Pledge
Number of Increase and Marking or
Name of Nature of Share Shares Held at Decrease in Number of Number of Freezing
Sharehold Sharehold proportio the End of the the Restricted Unrestricted
er ers n Reporting Reporting Shares Held Shares Held Status Qty
Period Period of .Shares
State-
China
owned
FAW Co. 62.18% 3060649901 0 0 3060649901 N/A 0
legal
Ltd.person
FAW State-
Bestune owned
15.94% 784500000 0 0 784500000 N/A 0
Auto Co. legal
Ltd. person
National
Manufact
uring
State-
Transfor
owned
mation 1.36% 67164179 67164179 67164179 N/A 0
legal
and
person
Upgradin
g Fund
Co. Ltd.
184Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Hong
Kong
Overseas
Securities
legal 1.23% 60473693 -2341266 0 60473693 N/A 0
Clearing
person
Company
Ltd.Jilin
State-
Province
owned
Private 0.94% 46268656 46268656 46268656 N/A 0
legal
Equity
person
Co. Ltd.Qu Overseas
Hongzhe natural 0.73% 36096590 36096590 0 36096590 N/A 0
n person
Agricultu
ral Bank
of China
Co. Ltd.–
Xingquan
CSI 300 Others 0.47% 23340134 23340134 22373134 967000 N/A 0
Index
Enhanced
Securities
Investme
nt Fund
(LOF)
Jilin
Province
Yandong
State-
State-
owned
Owned 0.45% 22388059 22388059 22388059 0 N/A 0
legal
Capital
person
Investme
nt Co.Ltd.Overseas
UBS AG legal 0.34% 16917541 16254800 16716417 201124 N/A 0
person
Industrial
and
Others 0.34% 16786600 1034660 0 16786600 N/A 0
Commerc
ial Bank
185Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
of China
Co. Ltd.-
Huatai-
PineBridg
e CSI 300
Trading
Open
Index
Securities
Investme
nt Fund
Strategic investors or Among the aforementioned shareholders the National Manufacturing Transformation and
general legal persons Upgrading Fund Co. Ltd. Jilin Province Private Equity Co. Ltd. Agricultural Bank of China
who become the top Co. Ltd. – Xingquan CSI 300 Index Enhanced Securities Investment Fund (LOF) Jilin Province
10 shareholders due to Yandong State-Owned Capital Investment Co. Ltd. UBS AG and other investors have become
the issuance of new the Company's top ten shareholders through the Company's private placement of shares. The
shares listing date for their subscribed shares is October 21 2024 with a 6-month lock-up period.Among the above shareholders FAW Bestune is a holding subsidiary of FAW and is a person
Description of acting in concert as specified in the Regulations for the Takeover of Listed Companies. The
correlation or public disclosure data indicates that the Company does not know whether there is a correlation
concerted action of the between other shareholders of outstanding shares nor whether other shareholders of
above 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
N/A
entrusting/entrusted
voting rights and
waiving voting rights
Special description of
the existence of
repurchase special N/A
accounts among the
top 10 shareholders
Shareholding of Top 10 Shareholders with Unrestricted Ordinary Shares
Number of Unrestricted Shares Type of Shares
Name of Shareholder Held at the End of the Reporting
Period Type of Shares Qty.CNY ordinary
China FAW Co. Ltd. 3060649901 3060649901
shares
CNY ordinary
FAW Bestune Auto Co. Ltd. 784500000 784500000
shares
186Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Hong Kong Securities Clearing CNY ordinary
6047369360473693
Company Ltd. shares
CNY ordinary
Qu Hongzhen 36096590 36096590
shares
Industrial and Commercial Bank of
China Co. Ltd.-Huatai-PineBridge CSI CNY ordinary
1678660016786600
300 Trading Open Index Securities shares
Investment Fund
China Construction Bank Corporation
Co. Ltd. – E Fund CSI 300 Exchange- CNY ordinary
1171710011717100
Traded Open-End Index Initiated Fund shares
(ETF)
CNY ordinary
Liang Jianhui 10011500 10011500
shares
CNY ordinary
Chao Guo 8460758 8460758
shares
Industrial and Commercial Bank of
China Co. Ltd. – ChinaAMC CSI 300 CNY ordinary
77951007795100
Exchange-Traded Open-End Index shares
Fund
Bank of China Limited – Harvest CSI
CNY ordinary
300 Exchange-Traded Open-End Index 7383401 7383401
shares
Fund
Among the above shareholders FAW Bestune is a holding subsidiary of FAW
Description of correlation or concerted and is a person acting in concert as specified in the Regulations for the Takeover
action between the top 10 shareholders of Listed Companies. The public disclosure data indicates that the Company
of unrestricted shares and between the does not know whether there is a correlation between other shareholders of
top 10 shareholders of unrestricted outstanding shares nor whether other shareholders of outstanding shares are
shares and the top 10 shareholders persons acting in concert as specified in the Regulations for the Takeover of
Listed Companies.Description of participation in The overseas natural person Qu Hongzhen holds 36096590 shares of the
financing bonds business of top 10 Company through the customer credit trading securities account of CITIC
shareholders with ordinary shares Securities Company Limited.Participation in securities lending business by shareholders holding more than 5% top 10
shareholders and top 10 shareholders of unrestricted tradable shares
□Applicable □Not applicable
Participation in securities lending business by shareholders holding more than 5% top 10 shareholders and
top 10 shareholders of unrestricted tradable shares
Shares lent at the
Name of Initial ordinary Initial refinancing Ending ordinary
end of the period of
Shareholder account credit lending shares and account credit account
refinancing and not
(Full Name) account shareholding not yet returned shareholding
yet returned
187Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Proport Proporti Proporti Proporti
ion to on to on to Total on to
Total Total Total
Total Total Total Quantit Total
Quantity Quantity Quantity
Share Share Share y Share
Capital Capital Capital Capital
Industrial
and
Commercial
Bank of
China Co.Ltd.-Huatai-
PineBridge 6440000 0.14% 568300 0.01% 16786600 0.34% 0 0.00%
CSI 300
Trading
Open Index
Securities
Investment
Fund
China
Constructio
n Bank
Corporation
Co. Ltd. –
E Fund CSI
30022953000.05%3154000.01%117171000.24%00.00%
Exchange-
Traded
Open-End
Index
Initiated
Fund (ETF)
Industrial
and
Commercial
Bank of
China Co.Ltd. –
16366000.04%3795000.01%77951000.16%00.00%
ChinaAMC
CSI 300
Exchange-
Traded
Open-End
Index Fund
188Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Bank of
China
Limited –
Harvest CSI
30020142010.04%1837000.00%73834010.15%00.00%
Exchange-
Traded
Open-End
Index Fund
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
2. Information on Controlling Shareholders of the Company
Nature of controlling shareholder: central state-owned holding
Type of controlling shareholder: legal person
Legal
Name of Date of
Representativ Organization
Controlling Establishme Main Business
e/Person in code
Shareholder nt
Charge
Automobile manufacturing and
remanufacturing new energy
vehicle manufacturing; Design
development manufacturing
and sales of automobile parts
including engines and
transmissions; Metal casting
China FAW Co. June 28 912201015711 and forging mold processing;
Qiu Xiandong
Ltd. 2011 45270J Engineering technology
research and testing;
Professional technical services;
Computer and software
services; Thermal power
generation and electricity
supply; Heat production and
supply; Water and gas supply;
189Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Road freight transport;
Warehousing; Sales of
mechanical equipment
hardware and electrical
appliances electronic products
and automotive materials;
Machinery equipment leasing;
Advertising design production
and publishing; Business
services; Labor services;
Automobile and used car sales
(activities prohibited by laws
regulations and State Council
decisions are not permitted;
projects requiring approval by
law may only be conducted
after approval by relevant
departments)**
Equity of Other
Domestic and
Foreign Listed
Companies
Controlled and
N/A
Participated by
Controlling
Shareholders in
the Reporting
Period
Changes in controlling shareholders in the reporting period
□Applicable □Not applicable
There was no change in the controlling shareholders of the Company during the reporting period.
3. Company's Actual Controllers and Persons Acting in Concert
Nature of actual controller: central state-owned assets management organization
Type of actual controller: legal person
Legal
Representative Date of Organization Main
Name of Actual Controller
/Person in Establishment code Business
Charge
190Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
State-owned Assets
Supervision and
N/A N/A N/A
Administration Commission of
the State Council
Equity of Other Domestic and
Foreign Listed Companies
Controlled by Actual N/A
Controllers in the Reporting
Period
Change of actual controller in the reporting period
□Applicable □Not applicable
There was no change in the actual controller of the Company during the reporting period.Block Diagram of Property Right and Control Relationship between the Company and the Actual
Controllers
Ownership and Control Structure Between the Company and its Ultimate Controlling
Shareholder
SASAC of the State Council
China FAW Group Co. Ltd.FAW Equity Investment (Tianjin) Co. Ltd.China FAW Co. Ltd. FAW Besturn Automobile Co. Ltd.FAW Jiefang Group Co. Ltd.The actual controllers control the Company by trust or other asset management methods
□Applicable □Not applicable
191Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
4. The cumulative number of pledged shares of the Company's controlling shareholder or the
largest shareholder and persons acting in concert accounts for 80% of the Company's shares
held by them.□Applicable □Not applicable
5. Other Corporate Shareholders Holding More Than 10% of the Shares
□Applicable □Not applicable
Legal
Name of Represent Date of
Registered
Corporate ative/Pers Establishme Main Business or Management Activities
Capital
Shareholder on in nt
Charge
Development manufacturing and sales
of automobiles and parts (including new
energy vehicles and their related
batteries motors electronic controls
excluding flammable and explosive
hazardous chemicals) travel vehicles and
accessories intelligent products and
equipment; Automobile repair;
Processing of non-standard equipment;
Sales of mechanical parts and
electromechanical products (excluding
FAW small cars);Used car sales; Used car
Bestune June 28 2.5 billion sales; Car rental; Building and workshop
Yang Xiao
Auto Co. 2019 yuan rental; Ordinary road freight transport;
Ltd. Modern trade logistics services;
Technical services and consulting in the
automotive field; Internet-based
automobile business; Import and export
of goods and technologies (excluding
publishing materials; excluding state-
restricted or prohibited goods and
technologies); Used car brokerage;
Ancillary insurance agency services;
Motor vehicle repair and maintenance;
Recycling of scrapped motor vehicles;
Dismantling of scrapped motor vehicles;
192Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Business training (excluding education
training vocational skills training and
other training requiring licenses); Retail
and wholesale of stationery items; Sales
of automobile decoration products;
Lubricating oil sales; Internet of Things
technology development and services;
Manufacturing of power transmission and
control equipment; Advertising design
and agency; Advertising production;
Advertising publishing (excluding radio
stations television stations newspaper
publishers); Labor services (excluding
labor dispatch); Motor vehicle safety
inspection services; Artificial intelligence
public data platform; Data processing and
storage support services; Internet data
services; Inspection and testing services;
General cargo warehousing (excluding
hazardous chemicals and other projects
requiring approval); Marketing planning;
Computer and communication equipment
leasing; Conference and exhibition
services; Mechanical equipment leasing;
Type 1 value-added telecommunications
business; Type 2 value-added
telecommunications business; Intellectual
property services (projects requiring
approval by law may only be conducted
after approval by relevant departments).
6. Restricted Reduction of Shares Held by Controlling Shareholders Actual Controllers
Restructuring Parties and Other Commitment Subjects
□Applicable □Not applicable
IV. Specific Implementation of Share Repurchase in the Reporting Period
Implementation progress of share repurchase
193Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
□Applicable □Not applicable
Implementation Progress of Reducing Shareholding in Repurchased Shares by Centralized Bidding
□Applicable □Not applicable
194Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Section VIII Preferred Shares
□Applicable □Not applicable
The Company has no preferred shares in the reporting period.
195Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Section IX Bonds
□Applicable □Not applicable
196Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Section X Financial Report
I. Audit Report
Type of Audit Opinion Standard unqualified opinion
Signing Date of Audit Report March 28 2025
Grant Thornton Certified Public Accountants
Name of Audit Institution
(Special General Partnership)
Audit Report No. ZTSZ (2025) No.110A005445
Name of Certified Public Accountant Wu Songlin Yang Dongmin
Text of Audit Report
All shareholders of FAW JIEFANG GROUP CO. LTD.:
I. Audit Opinion
We have audited the financial statements of FAW Jiefang Group Co. Ltd. (hereinafter referred
to as "FAW Jiefang") including the Consolidated and the Company's Balance Sheets on December
31 2024 the Consolidated and the Company's Income Statements the Consolidated and the
Company's Cash Flow Statements and the Consolidated and the Company's Statements of Changes
in Shareholders' Equity in 2024 and the Notes to Financial Statements for the year then ended.In our opinion the attached financial statements were compiled as per the provisions of
Accounting Standards for Business Enterprises (ASBE) in all major aspects and can fairly present the
consolidated and FAW Jiefang's financial status as of December 31 2024 as well as their business
performance and cash flows for the year then ended.II. Basis for Opinion
We have conducted our audit in accordance with the Auditing Standards for Certified Public
Accountants of China. The section in the Auditor's Report titled "CPAs' Responsibilities for the
Audit of the Financial Statements" further describes our responsibilities under these standards.We are independent of FAW Jiefang in accordance with the China Code of Ethics for Certified
Public Accountants and we have fulfilled our other ethical responsibilities. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit.III. Key Audit Matters
Key audit matters are those matters that in our professional judgment we consider to be
most significant to the audit of the financial statements for the period. These matters were
197Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
addressed in the context of our audit for the entire financial statements and the formation of our
opinions thereon. We do not declare a separate opinion on these matters.(I) Income Recognition
For details of relevant information disclosure refer to 26 in Note III and 44 in Note V to the
financial statements.
1. Description
The sales revenue of FAW Jiefang mainly comes from the vehicle sales business. In 2024
FAW Jiefang realized an operating revenue of 58.5811063 billion yuan with vehicle sales
revenue accounting for 54.0194902 billion yuan or 92.21% of the total. According to the specific
method of income recognition of FAW Jiefang the income is recognized when the complete
vehicle and its accessories have been delivered to the delivery location as agreed in the contract
and the customer has accepted the goods and obtained control of the goods. The vehicle sales
income has a significant impact on the financial statements of FAW Jiefang so we identified
income recognition as a key audit matter.
2. Audit response
Our audit procedures mainly include:
(1) Understand the effectiveness of internal control design related to income recognition and
test the effectiveness of key control implementation;
(2) Analyze the income and gross profit rate in combination with the product type and
compare them with the data of the same industry to judge whether the income and gross profit
rate in the current period are abnormal;
(3) Interview with the management check the terms of the sales contract analyze and judge
the time point of the control the right transfer of vehicle sales and evaluate the rationality of the
income recognition policy;
(4) Conduct the spot check on the supporting documents related to income recognition
including sales contracts orders sales invoices product transportation documents customer
receipts etc.;
(5) Execute transaction and correspondence confirmation for the sales business of major and
new customers;
(6) For the sales revenue recognized before and after the balance sheet date check the basis
for customer receipt confirmation and evaluate whether the sales revenue is recorded in the
appropriate period.
198Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(II) Provision for Decline in Value of Inventories
For details of relevant information disclosure refer to 13 in Note III and 7 in Note V to the
financial statements.
1. Description
As of December 31 2024 the book balance of inventory of FAW Jiefang was 10559.2658
million yuan and the balance of inventory depreciation reserves was 442.0526 million yuan of
which 352.6635 million yuan was provided in the current period. The provision amount for the
decline in the value of inventories is significant and requires a significant judgment of the
management so we identified the provision for the decline in the value of inventories as a key
audit matter.
2. Audit response
Our audit procedures mainly include:
(1) Test and evaluate the design and operational effectiveness of key internal controls related
to the provision for inventory depreciation reserves by the management;
(2) Obtain the Calculation Sheet of Inventory Depreciation Reserves of FAW Jiefang
conduct inventory depreciation tests analyze the changes in the provision for inventory
depreciation reserves made in previous years and analyze whether the provision for inventory
depreciation reserves in the current period is sufficient;
(3) Check the quantity and status of inventories in combination with the inventory
supervision procedures focus on checking long-aged inventories and analyze the adequacy of
provision for depreciation reserves of inventories with signs of impairment;
(4) Check the changes in the provision for inventory depreciation reserves made in previous
years in the current period and analyze the rationality of the changes in the inventory depreciation
reserves.(III) Provision for Product Quality Guarantee Deposit
For details of relevant information disclosure refer to 24 in Note III and 35 in Note V to the
financial statements.
1. Description
As of December 31 2024 FAW Jiefang has provided a product quality deposit of 649.9343
million yuan in the current year and the balance of a product quality deposit in the estimated
liabilities is 951.5131 million yuan. Based on the vehicle sales contract and relevant national laws
199Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
and regulations customers can obtain warranty services provided by FAW Jiefang within the
warranty period. The management of FAW Jiefang calculates the product quality deposit based
on the relevant provisions in the product type warranty period and warranty obligation clauses.The provision amount of product quality guarantee deposit is relatively large and involves
significant estimation and judgment of the management so we identified the provision for product
quality guarantee deposit as a key audit matter.
2. Audit response
Our audit procedures mainly include:
(1) Test and evaluate the effectiveness of key internal control design and operation of key
internal controls related to the provision for product quality deposit;
(2) Understand and evaluate whether the accounting policies related to the provision for
product quality deposit are appropriate and consistently applied;
(3) Understand and evaluate the rationality of the method and calculation model adopted by
FAW Jiefang for the provision of the product quality deposit according to laws regulations and
contract terms;
(4) Perform recalculation procedures to verify the accuracy of the management's provision
for product quality deposit.IV. Other Information
The management of FAW Jiefang is responsible for other information. Other information is
included in the Annual Report of Year 2024 of FAW Jiefang but does not include the financial
statements and our auditor's report thereon.Our audit opinion on the financial statements does not cover other information and we do
not express an assurance conclusion of any kind on other information.Based on our audit of the financial statements our responsibility is to consider whether other
information has material inconsistency or seems to have material misstatement with the financial
statements or circumstances that we know during the audit while reading other information.Based on the work we have performed if we determine that other information is materially
misstated we should report that fact. In this regard we have nothing to report.V. Responsibilities of Management and Governance for the Financial Statements
The management of FAW Jiefang shall be responsible for preparing financial statements that
present fairly the data in accordance with the Accounting Standards for Business Enterprises and
200Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
for designing implementing and maintaining the internal controls as the management deems
necessary to enable the preparation of financial statements free from material misstatement
whether due to fraud or error.In preparation of the financial statement the management is responsible for assessing FAW
Jiefang's sustainable operation ability disclosing the sustainable operation-related items (if
applicable) and applying sustainable operation assumptions unless otherwise the management
plans to liquidate FAW Jiefang stop operation or it has no other practical choice.The governance is responsible for supervising the financial reporting process of FAW
Jiefang.VI. CPAs' Responsibilities for the Audit of the Financial Statements
Our objective is to obtain reasonable assurance as to whether the financial statements as a
whole are free from material misstatement caused by fraud or error and to issue an Auditor 's
Report containing our opinions. Reasonable assurance is a high level of assurance but i t does not
guarantee that an audit conducted in accordance with auditing standards can always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if individually or in the aggregate and they could reasonably be expected to
influence the economic decisions users would take on the basis of these financial statements.We exercise professional judgment and maintain professional skepticism in carrying out our
audit in accordance with the Auditing Standards. At the same time we also:
(1) Identify and assess the risks of material misstatement of the financial statements whether
due to fraud or error design and perform audit procedures responsive to those risks and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
failing to detect a material misstatement due to fraud is higher than that due to error as fraud may
involve collusion forgery intentional omissions misrepresentations or overriding internal
controls.
(2) Understand the internal controls related to the audit to design appropriate audit
procedures.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Management.
(4) Conclude on the appropriateness of the Management's use of the going-concern
assumption. Based on the audit evidence obtained whether material uncertainty exists related to
events or conditions that may cast significant doubt on FAW Jiefang's ability to continue as a
going concern. If we conclude that a material uncertainty exists we are required to draw attention
201Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
in our auditor's report to the related disclosures in the financial statements or if such disclosures
are inadequate to modify our opinion. Our conclusions are based on information available as of
the date of the Auditor's Report. However future events or conditions may cause FAW Jiefang
to cease to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements and
whether the financial statements can fairly reflect the transactions and items.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the
entity or business activities within FAW Jiefang to express an opinion on the financial statements.We are responsible for guiding supervising and performing the group audit and assume all
responsibilities for our opinion.We communicate with the Governance regarding among other matters the planned scope
and timing of the audit and significant audit findings including any significant deficiencies in
internal control that we identify during our audit.We also provide the governance with a statement regarding compliance with ethical
requirements related to independence and communicate with the governance about all
relationships and other matters that could reasonably be considered to affect our independence
as well as related precautions (if applicable).From the matters communicated with the governance we determine those matters that were
of most significance in the audit of the financial statements of the current period and are therefore
key audit matters. We have described these matters in the Auditor 's Report except that they are
prohibited from being publicly disclosed as per the laws and regulations or in rare cases if a
negative result may be caused by communicating some matter in the auditor's report as reasonably
expected exceeds the benefit generated by the public interest we determine not to communicate
such matter in the auditor's report.II. Financial Statements
The unit in the notes to the financial statement is Yuan
1. Consolidated balance sheet
Prepared by: FAW JIEFANG GROUP CO. LTD.December 31 2024
Unit: Yuan
Item Ending balance Opening balance
Current assets:
Monetary capital 19852961021.66 23545580404.39
202Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Settlement reserve fund
Loans to banks and other
financial institutions
Financial assets held for trading
Derivative financial assets
Notes receivable 2641582.80 44626048.13
Accounts receivable 7067296142.54 2343108649.14
Accounts receivable financing 10019816248.98 4878126972.73
Prepayments 128639159.47 690905098.74
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves
receivable
Other receivables 1340633312.48 1320113974.68
Including: interests receivable
Dividends receivable 157707661.77
Financial assets purchased under
agreements to resell
Inventories 10117213109.97 10056641462.05
Including: Data resources
Contract assets 14455542.05 17582856.82
Held-for-sale assets
Current portion of non-current
377668442.06386692620.64
assets
Other current assets 1413638174.22 1044189313.04
Total current assets 50334962736.23 44327567400.36
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables 110911235.61 132031253.27
Long-term equity investments 1176288461.09 5469591970.26
Other equity instruments
540066528.00480780000.00
investments
Other non-current financial
assets
Investment properties 52835976.31 47049995.53
Fixed assets 11198300572.20 11480849245.90
Project under construction 688181815.22 816484299.18
203Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Productive biological assets
Oil and gas assets
Right-of-use assets 104360320.57 150436856.00
Intangible assets 2337101200.98 2456799533.62
Including: Data resources
Development expenditures 500611951.24 109873830.59
Including: Data resources
Goodwill
Long-term deferred expenses
Deferred income tax assets 3061404632.44 2612089167.19
Other non-current assets 2644193586.72 2288899.80
Total non-current assets 22414256280.38 23758275051.34
Total assets 72749219016.61 68085842451.70
Current liabilities:
Short-term loans
Borrowing from the central bank
Placements from banks and
other financial institutions
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable 15370906363.16 11769864678.11
Accounts payable 17246353969.05 17717604892.29
Advance receipts 674009.56 641221.46
Contract liabilities 2430554164.50 2320672076.22
Financial assets sold under
agreement to repurchase
Deposits taking and interbank
deposits
Acting trading securities
Acting underwriting securities
Employee compensation payable 1043554896.06 405282727.48
Taxes payable 215532903.02 181964139.60
Other payables 4526208921.23 5312303775.91
Including: interests payable
Dividends payable 171500.02 171500.02
Handling charges and
commissions payable
Reinsurance accounts payable
204Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Held-for-sale liabilities
Current portion of non-current
29941701.02131610199.37
liabilities
Other current liabilities 217767924.33 215994896.62
Total current liabilities 41081494851.93 38055938607.06
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: preferred shares
Perpetual Bond
Lease liabilities 27431600.64 37973873.14
Long-term payables
Long-term employee
692790054.95672957633.25
compensation payable
Estimated liabilities 992714878.02 852994560.56
Deferred income 2936362847.77 2983678367.53
Deferred income tax liabilities 423775650.57 434889825.54
Other non-current liabilities
Total non-current liabilities 5073075031.95 4982494260.02
Total liabilities 46154569883.88 43038432867.08
Owner's equities:
Share capital 4922371176.00 4636485668.00
Other equity instruments
Including: preferred shares
Perpetual Bond
Capital reserves 11961480047.74 10717437551.72
Less: treasury shares 6246851.73 86131497.27
Other comprehensive incomes -96912346.71 -127199418.40
Special reserves 277345883.15 319314527.85
Surplus reserves 3204548247.40 3095513675.93
General risk provision
Undistributed profits 6055339906.81 6246533634.66
Total equity attributable to owners
26317926062.6624801954142.49
of the parent company
Minority equity 276723070.07 245455442.13
Total owners' equity 26594649132.73 25047409584.62
Total liabilities and owner's
72749219016.6168085842451.70
equities
Legal representative: Li Sheng Person in charge of accounting: Yu Changxin Person in charge of the accounting
organization: Fan Chao
205Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
2. Balance sheet of parent company
Unit: Yuan
Item Ending balance Opening balance
Current assets:
Monetary capital 152222868.42 165157237.21
Financial assets held for trading
Derivative financial assets
Notes receivable
Accounts receivable
Accounts receivable financing
Prepayments 84000.00
Other receivables 6470963348.86 219864.00
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 653349.48 261636.19
Total current assets 6623839566.76 165722737.40
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investments 21795117325.10 25594049970.19
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
206Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 21795117325.10 25594049970.19
Total assets 28418956891.86 25759772707.59
Current liabilities:
Short-term loans
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable
Accounts payable 2727107.71 250327.84
Advance receipts
Contract liabilities
Employee compensation payable
Taxes payable 3164670.01 3368528.10
Other payables 342246068.80 90343250.16
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 348137846.52 93962106.10
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
207Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 348137846.52 93962106.10
Owner's equities:
Share capital 4922371176.00 4636485668.00
Other equity instruments
Including: preferred shares
Perpetual Bond
Capital reserves 13802357345.82 12171693342.10
Less: treasury shares 6246851.73 86131497.27
Other comprehensive incomes 12671266.92 863137.93
Special reserves
Surplus reserves 1968725127.44 1859690555.97
Undistributed profits 7370940980.89 7083209394.76
Total owners' equity 28070819045.34 25665810601.49
Total liabilities and owner's
28418956891.8625759772707.59
equities
3. Consolidated profit statement
Unit: Yuan
Item 2024 2023
I. Total operating income 58581106258.53 64324640770.64
Including: operating income 58581106258.53 64324640770.64
Interest income
Premium earned
Handling charges and commission income
II. Total operating cost 59785978592.21 64774277946.69
Including: operating cost 54908076523.43 59401367343.49
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 220408020.64 263881839.13
Sales expenses 1273327595.92 1103598712.10
Administrative expenses 1780652477.10 1956239032.27
208Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
R&D expenses 2409485641.76 2982257879.16
Financial expenses -805971666.64 -933066859.46
Including: interest expenses 2594098.03 4228160.85
Interest income 619382020.15 810531561.26
Add: Other income 1129409077.07 613391651.76
Investment income (loss to be listed with "-") 629692626.51 282328848.08
Including: income from investment in associates and
310581812.67347980074.28
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 "-") 54491805.98 -95384424.83
Asset impairment loss (loss to be listed with "-") -352823109.54 -192267861.91
Income from assets disposal (loss to be listed with "-") -2556989.65 192668373.15
III. Operating profit (loss to be listed with "-") 253341076.69 351099410.20
Add: non-operating income 101492545.66 197837768.23
Less: non-operating expenses 28784917.57 27525146.98
IV. Total profit (loss to be listed with "-") 326048704.78 521412031.45
Less: Income tax expenses -333222447.51 -306887662.21
V. Net profit (net loss to be listed with "-") 659271152.29 828299693.66
(I) Classified by continuity of operation
1. Net profit from continuing operations (net loss to be listed
659271152.29828299693.66
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 the parent company's
622427699.65806096685.30
shareholders
2. Minority interests 36843452.64 22203008.36
VI. Net after-tax amount of other comprehensive income 33703948.06 -10185931.92
Net after-tax amount of other comprehensive income
30279772.76-7777554.53
attributable to the owners of the parent company
(I) Other comprehensive incomes that cannot be reclassified
27627126.17-4710588.55
into profits or losses
1. Changes arising from re-measurement of the defined
-49140000.00-5170000.00
benefit plan
2. Other comprehensive incomes that cannot be transferred
17480598.17459411.45
to profits or losses under the equity method
3. Changes in fair value of investment in other equity
59286528.00
instruments
209Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
4. Changes in the fair value of the Company's credit risk
5. Others
(II) Other comprehensive incomes that will be reclassified
2652646.59-3066965.98
into profits or losses
1. Other comprehensive incomes that can be transferred to
-5729510.11871354.25
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
8382156.70-3938320.23
statements
7. Others
Net after-tax amount of other comprehensive income
3424175.30-2408377.39
attributable to minority shareholders
VII. Total comprehensive income 692975100.35 818113761.74
Total comprehensive income attributable to the owners of the
652707472.41798319130.77
parent company
Total comprehensive income attributable to minority
40267627.9419794630.97
shareholders
VIII. Earnings per share:
(I) Basic income per share 0.1266 0.1805
(II) Diluted income per share 0.1266 0.1805
In the case of a business merger under common control in the current period the net profit realized by the combined
party before the merger and that in the previous period are 132844483.67 yuan and 68387521.68 yuan.Legal representative: Li Sheng Person in charge of accounting: Yu Changxin Person in charge of the accounting
organization: Fan Chao
4. Profit statement of parent company
Unit: Yuan
Item 2024 2023
I. Operating income 0.00 0.00
Less: operating costs 0.00 0.00
Taxes and surcharges 3166349.56 93606.12
Sales expenses
Administrative expenses 6547907.38 3496572.38
R&D expenses
Financial expenses -2851411.56 465699.73
Including: interest expenses 319616.24 644156.98
Interest income 3172289.49 184637.25
Add: Other incomes 57741.82 344768.40
Investment income (loss to be listed with "-") 1097043292.58 325302522.88
210Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Including: income from investment in associates and
274277967.89325302522.88
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 "-") 114430.26 -4268.76
Asset impairment loss (loss to be listed with "-")
Income from assets disposal (loss to be listed with "-")
II. Operating profit (loss to be listed with "-") 1090352619.28 321587144.29
Add: non-operating income 394.35
Less: non-operating expenses
III. Total profit (total loss to be listed with "-") 1090353013.63 321587144.29
Less: Income tax expenses
IV. Net profit (net loss to be listed with "-") 1090353013.63 321587144.29
(I) Net profit from continuing operations (net loss to be listed
1090353013.63321587144.29
with "-")
(II) Net profit from discontinuing operations (net loss to be
listed with "-")
V. Net after-tax amount of other comprehensive incomes 11800830.06 1343932.70
(I) Other comprehensive incomes that cannot be reclassified
17530340.17472578.45
into profits or losses
1. Changes arising from re-measurement of the defined
benefit plan
2. Other comprehensive incomes that cannot be transferred
17530340.17472578.45
to profits or losses under the equity method
3. Changes in fair value of investment in other equity
instruments
4. Changes in the fair value of the Company's credit risk
5. Others
(II) Other comprehensive incomes that will be reclassified
-5729510.11871354.25
into profits or losses
1. Other comprehensive incomes that can be transferred to
-5729510.11871354.25
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 1102153843.69 322931076.99
VII. Income per share:
211Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(I) Basic income per share
(II) Diluted income per share
5. Consolidated cash flow statement
Unit: Yuan
Item 2024 2023
I. Cash flows from operating activities:
Cash received from sales of goods and provision of
54819630825.4461772979886.03
services
Net increase in customer bank deposits due to banks and
other financial institutions
Net increase in borrowings from the central bank
Net increase in placements from other financial
institutions
Cash from a premium of the 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 145692795.01 887649958.36
Other cash received relating to operating activities 1146308516.29 1913439711.75
Subtotal of cash inflows from operating activities 56111632136.74 64574069556.14
Cash paid for goods and services 54675385707.83 51372475533.60
Net increase in loans and advances to customers
Net increase in deposits with the 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 4710884428.17 5340718511.51
Taxes paid 1151234164.25 2001039146.79
Cash paid for other operating activities 1424414143.54 1770162970.46
Subtotal of cash outflows from operating activities 61961918443.79 60484396162.36
Net cash flows from operating activities -5850286307.05 4089673393.78
II. Cash flows from investment activities:
Cash received from the return on investment 4357068905.33
Cash received from the acquirement of investment income 574641722.82 299242143.02
212Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Net cash received from the disposal of fixed assets
167582454.39105700761.87
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 5099293082.54 404942904.89
Cash paid to acquire fixed assets intangible assets and
1513680646.752252066814.63
other long-term assets
Cash paid to for investment 4900000.00 529266800.00
Net increase in pledged loans
Net cash paid to acquire subsidiaries and other business
220832137.93
units
Other cash paid relating to investment activities 2400000000.00 17676304.33
Subtotal of cash outflows from investment activities 4139412784.68 2799009918.96
Net cash flows from investment activities 959880297.86 -2394067014.07
III. Cash flows from financing activities:
Cash received from absorbing investment 1999915089.75
Including: Cash received by subsidiaries absorbing
minority shareholders' investments
Cash received from borrowings
Cash received relating to other financing activities 16400000.00
Subtotal of cash inflows from financing activities 1999915089.75 16400000.00
Cash paid for repayment of debts 99890000.00
Cash paid for distribution of dividends profits or interest
713696364.17
repayment
Including: dividends and profits paid to minority
20000000.00
shareholders by subsidiaries
Other cash paid relating to financing activities 16667194.16 28987570.03
Subtotal of cash outflows from financing activities 830253558.33 28987570.03
Net cash flows from financing activities 1169661531.42 -12587570.03
IV. Effects from change of exchange rate on cash and cash
3231527.59-3046363.70
equivalents
V. Net increase in cash and cash equivalents -3717512950.18 1679972445.98
Add: opening balance of cash and cash equivalents 23108714054.86 21428741608.88
VI. Ending balance of cash and cash equivalents 19391201104.68 23108714054.86
6. Cash flow statement of parent company
Unit: Yuan
Item 2024 2023
I. Cash flows from operating activities:
Cash received from sales of goods and provision of
services
Tax refunds received
Other cash received relating to operating activities 884438956.93 100021565.10
Subtotal of cash inflows from operating activities 884438956.93 100021565.10
Cash paid for goods and services
Cash paid to and on behalf of employees 378000.00 378000.00
213Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Taxes paid 99071.82
Cash paid for other operating activities 7100228311.31 226723494.82
Subtotal of cash outflows from operating activities 7100606311.31 227200566.64
Net cash flows from operating activities -6216167354.38 -127179001.54
II. Cash flows from investment activities:
Cash received from the return on investment 4357068905.33
Cash received from the acquirement of investment income 920317192.20 288101230.25
Net cash received from the disposal of fixed assets
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 5277386097.53 288101230.25
Cash paid to acquire fixed assets intangible assets and
other long-term assets
Cash paid to for investment 380371837.52
Net cash paid to acquire subsidiaries and other business
units
Other cash paid relating to investment activities
Subtotal of cash outflows from investment activities 380371837.52
Net cash flows from investment activities 4897014260.01 288101230.25
III. Cash flows from financing activities:
Cash received from absorbing investment 1999915089.75
Cash received from borrowings
Cash received relating to other financing activities
Subtotal of cash inflows from financing activities 1999915089.75
Cash paid for repayment of debts
Cash paid for distribution of dividends profits or interest
693696364.17
repayment
Other cash paid relating to financing activities
Subtotal of cash outflows from financing activities 693696364.17
Net cash flows from financing activities 1306218725.58
IV. Effects from change of exchange rate on cash and cash
equivalents
V. Net increase in cash and cash equivalents -12934368.79 160922228.71
Add: opening balance of cash and cash equivalents 165157237.21 4235008.50
VI. Ending balance of cash and cash equivalents 152222868.42 165157237.21
214Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
7. Consolidated statement of changes in owners' equity
Amount in the current period
Unit: Yuan
2024
Equity Attributable To Owners of the Parent Company
Other equity
instruments
P
G
e
en
Pr r
er O
ef p
Item al t
er e Other
Less: treasury ris Undistributed h Minority equity Total owners' equity
Share capital re t Ot Capital reserves comprehensive Special reserves Surplus reserves Subtotal
shares k profits e
d u he incomes
pr r
S a rs
ov s
ha l
isi
re B
on
s o
n
d
I.Endi
ng
balan
ce of 4636485668 10343418951.73 86131497.27 -8514110.10 319314527.85 3090408316.87 6191777512.32 24486759369.40 24486759369.40
the
previ
ous
year
Add:
chan
ges
in
acco
untin
215Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
g
polici
es
Corre
ction
of
prior
perio
d
error
s
Other
374018599.99-118685308.305105359.0654756122.34315194773.09245455442.13560650215.22
s
II.Open
ing
balan
ce of 4636485668 10717437551.72 86131497.27 -127199418.40 319314527.85 3095513675.93 6246533634.66 24801954142.49 245455442.13 25047409584.62
the
curre
nt
year
III.Incre
ase/d
ecrea
se in
the
amou
nt of
2858855081244042496.02-79884645.5430287071.69-41968644.70109034571.47-191193727.851515971920.1731267627.941547239548.11
the
curre
nt
perio
d
(decr
ease
to be
216Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
listed
with
"-")
(I)
Total
comp
rehen 30279772.76 622427699.65 652707472.41 40267627.94 692975100.35
sive
inco
me
(II)
Inves
ted
and
decre
2858855081244042496.02-79884645.541609812649.561609812649.56
ased
capit
al of
owne
rs
1.
Ordi
nary
share
s
2858855081632043242.501917928750.501917928750.50
inves
ted
by
owne
rs
2.
Capit
al
contr
ibute
d by
holde
rs of
217Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
other
equit
y
instru
ment
s
3.
Amo
unts
of
share
-
based
paym
-2522576.52-2522576.52-2522576.52
ents
recor
ded
in
owne
r's
equit
y
4.
Other -385478169.96 -79884645.54 -305593524.42 -305593524.42
s
(III)
Profit
distri 109035301.36 -813614858.46 -704579557.10 -9000000.00 -713579557.10
butio
n
1.
Appr
opria
tion
109035301.36-109035301.36
to
surpl
us
reser
218Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
ves
2.
Appr
opria
tion
to
gener
al
risk
reser
ves
3.
Distri
butio
n to
owne -693579557.10 -693579557.10 -9000000.00 -702579557.10
rs (or
share
holde
rs)
4.
Other -11000000.00 -11000000.00 -11000000.00
s
(IV)
Inter
nal
carry
over
7298.93-729.89-6569.04
of
owne
rs'
equit
y
1.
Trans
fer
from
219Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
capit
al
reser
ve to
paid-
in
capit
al (or
share
capit
al)
2.
Trans
fer
from
surpl
us
reser
ves
to
paid-
in
capit
al (or
share
capit
al)
3.
Reco
very
of
losse
s by
surpl
us
reser
ves
4.
220Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Retai
ned
earni
ngs
carrie
d
forw
ard
from
chan
ges
in
defin
ed
benef
it
plans
5.
Retai
ned
earni
ngs
carrie
d
forw
7298.93-729.89-6569.04
ard
from
other
comp
rehen
sive
inco
me
6.
Other
s
(V)
-41968644.70-41968644.70-41968644.70
Speci
221Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
al
reser
ves
1.
Appr
opria
tion
in the 28475434.87 28475434.87 28475434.87
curre
nt
perio
d
2.
Use
in the
curre -70444079.57 -70444079.57 -70444079.57
nt
perio
d
(VI)
Other
s
IV.Endi
ng
balan
ce of
492237117611961480047.746246851.73-96912346.71277345883.153204548247.406055339906.8126317926062.66276723070.0726594649132.73
the
curre
nt
perio
d
Amount of the Previous Period
Unit: Yuan
2023
Item
Equity Attributable To Owners of the Parent Company Minority equity Total owners' equity
222Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Other equity instruments Genera
Less: Other
Share Preferr Perpetu Capital Special Surplus l risk Undistributed Othe
Othe treasury comprehensi Subtotal
capital ed al reserves reserves reserves provisi profits rs
rs shares ve incomes
Shares Bond on
I. Ending -
46519656104510882326783718437042029130582496025460939601.23719427082371942708
balance of the 5399120.8
556.74.11.86.44362.482.48
previous year 1
Add: changes
in accounting -28331.75 -28331.75 -28331.75
policies
Correction of
prior period
errors
-
374018599.9267765610.1218280811.486046421.3
Others 114022743 4546767.65 3222985.59
97163.06
II. Opening -
46519656108251068326783718437042029130627963705464134255.2398716436218280811.2420544517
balance of the 119421863
556.73.11.86.09200.90162.06
current year .87
III.Increase/decre
ase in the
----
amount of the - 782399379.4 814789781.5 27174630.9 841964412.5
107669285.01817056867777554.551105764.32717305.84
current period 15479987 6 9 7 6
1.84301
(decrease to
be listed with
"-")
(I) Total -
806096685.3798319130.719794630.9
comprehensiv 7777554.5 818113761.74
077
e income 3
(II) Invested
--
and decreased -
107669285.018170568658556414.8358556414.83
capital of 15479987
1.84
owners
1. Ordinary -
-82470046.45-97950033.45-97950033.45
shares 15479987
223Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
invested by
owners
2. Capital
contributed by
holders of
other equity
instruments
3. Amounts of
share-based
payments -24775825.33 -24775825.33 -24775825.33
recorded in
owner's equity
-
181282273.6181282273.6
4. Others -423413.23 181705686
11.84
(III) Profit -
32717305.849020000.007380000.0016400000.00
distribution 23697305.84
1.
Appropriation -
32717305.84
to surplus 32717305.84
reserves
2.
Appropriation
to general risk
reserves
3. Distribution
to owners (or
shareholders)
4. Others 9020000.00 9020000.00 7380000.00 16400000.00
(IV) Internal
carryover of
owners' equity
1. Transfer
from capital
reserve to
paid-in capital
224Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(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
comprehensiv
e income
6. Others
-
(V) Special
51105764.-51105764.01-51105764.01
reserves
01
1.
Appropriation 37672287.
37672287.4537672287.45
in the current 45
period
-
2. Use in the
88778051.-88778051.46-88778051.46
current period
46
225Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(VI) Others
IV. Ending -
46364856107174375586131497.31931452730955136756246533634.2480195414245455442.2504740958
balance of the 127199418
681.7227.85.93662.49134.62
current period .40
8. Statement of Changes in Owners' Equity of Parent Company
Amount in the current period
Unit: Yuan
2024
Other equity
instruments
Pe
Pr
rp O Specia
Item ef Other
et t Less: treasury l Undistributed Share capital err Capital reserves comprehensive Surplus reserves Others Total owners' equity
ua h shares reserve profits
ed incomes
l e s
Sh
B r
ar
on s
es
d
I. Ending
balance of the 4636485668 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 12171693342.10 86131497.27 863137.93 1859690555.97 7083209394.76 25665810601.49
current year
III.
2858855081630664003.72-79884645.5411808128.99109034571.47287731586.132405008443.85
Increase/decre
226Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
ase in the
amount of the
current period
(decrease to
be listed with
"-")
(I) Total
comprehensiv 11800830.06 1090353013.63 1102153843.69
e income
(II) Invested
and decreased
2858855081630664003.72-79884645.541996434157.26
capital of
owners
1. Ordinary
shares
2858855081632043242.501917928750.50
invested by
owners
2. Capital
contributed by
holders of
other equity
instruments
3. Amounts of
share-based
payments -2522576.52 -2522576.52
recorded in
owner's equity
4. Others 1143337.74 -79884645.54 81027983.28
(III) Profit
109035301.36-802614858.46-693579557.10
distribution
1.
Appropriation
109035301.36-109035301.36
to surplus
reserves
2. Distribution
-693579557.10-693579557.10
to owners (or
227Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
shareholders)
3. Others
(IV) Internal
carryover of 7298.93 -729.89 -6569.04
owners' equity
1. Transfer
from capital
reserve to
paid-in capital
(or share
capital)
2. Transfer
from surplus
reserves to
paid-in capital
(or share
capital)
3. Recovery
of losses by
surplus
reserves
4. Retained
earnings
carried
forward from
changes in
defined
benefit plans
5. Retained
earnings
carried
forward from 7298.93 -729.89 -6569.04
other
comprehensiv
e income
6. Others
228Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(V) Special
reserves
1.
Appropriation
in the current
period
2. Use in the
current period
(VI) Others
IV. Ending
balance of the 4922371176 13802357345.82 6246851.73 12671266.92 1968725127.44 7370940980.89 28070819045.34
current period
Amount of the Previous Period
Unit: Yuan
2023
Other equity
instruments
Pe
Pr
rp Specia
Item ef Other
et Less: treasury l Undistributed Share capital err Ot Capital reserves comprehensiv Surplus reserves Others Total owners' equity
ua shares reserv profits
ed he e incomes
l es
Sh rs
B
ar
on
es
d
I. Ending
balance of the 4651965655 12278939213.88 267837184.11 -480794.77 1827531841.54 6793780964.90 25283899696.44
previous year
Add:
changes in
accounting
policies
Corre
ction of prior
229Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
period errors
Others
II. Opening
balance of the 4651965655 12278939213.88 267837184.11 -480794.77 1827531841.54 6793780964.90 25283899696.44
current year
III.Increase/decreas
e in the amount
of the current -15479987 -107245871.78 -181705686.84 1343932.70 32158714.43 289428429.86 381910905.05
period (decrease
to be listed with
"-")
(I) Total
comprehensive 1343932.70 321587144.29 322931076.99
income
(II) Invested and
decreased
-15479987-107245871.78-181705686.8458979828.06
capital of
owners
1. Ordinary
shares invested -15479987 -82470046.45 -97950033.45
by owners
2. Capital
contributed by
holders of other
equity
instruments
3. Amounts of
share-based
payments -24775825.33 -24775825.33
recorded in
owner's equity
4. Others -181705686.84 181705686.84
(III) Profit
32158714.43-32158714.43
distribution
230Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
1. Appropriation
to surplus 32158714.43 -32158714.43
reserves
2. Distribution
to owners (or
shareholders)
3. Others
(IV) Internal
carryover of
owners' equity
1. Transfer from
capital reserve
to paid-in
capital (or share
capital)
2. Transfer from
surplus reserves
to paid-in
capital (or share
capital)
3. Recovery of
losses by
surplus reserves
4. Retained
earnings carried
forward from
changes in
defined benefit
plans
5. Retained
earnings carried
forward from
other
comprehensive
income
6. Others
231Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(V) Special
reserves
1. Appropriation
in the current
period
2. Use in the
current period
(VI) Others
IV. Ending
balance of the 4636485668 12171693342.10 86131497.27 863137.93 1859690555.97 7083209394.76 25665810601.49
current period
232Full Text of 2024 Report 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 TGS [1997] No.55 Document of the State Commission for Restructuring the Economic
Systems in 1997 and established exclusively by CHINA FAW GROUP CO. LTD. On June 18 1997 FAW Car
was approved by the China Securities Regulatory Commission to issue shares publicly and listed on the Shenzhen
Stock Exchange for circulation.On April 9 2012 FAW Group invested 862983689 shares of FAW Car into China FAW Co. Ltd. as its capital
contribution to FAW and received the Confirmation of Securities Transfer Registration issued by China Securities
Depository & Clearing Co. Ltd. Shenzhen Branch on the same day.On November 28 2019 FAW Car held the 10th meeting of the 8th Board of Directors and reviewed and approved
the adjustment plan for major asset restructuring. After the adjustment FAW Car 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 FAW Bestune Auto Co. Ltd.). Subsequently FAW
Car used its 100% equity in FAW Besturn as divested assets to exchange for an equivalent part of 100% equity of
FAW Jiefang Automotive Co. Ltd. held by FAW. At the same time 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 4609666212.00 yuan 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 Share Incentive Plan and
the Proposal on Granting Restricted Shares to the Incentive Objects of the Phase I Restricted Share Incentive Plan
233Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 7.54 yuan per share and the registered capital of the Company was changed to 4650653869.00 yuan.This change was verified by the Capital Verification Report (ZTYZ (2021) No.110C000033) issued by Grant
Thornton Certified Public Accountants (Special General Partnership). On February 1 2021 the Company disclosed
the Announcement on the Completion of the First Grant Registration of the Phase I Restricted Share Incentive Plan.On December 9 2021 the Company held the 20th meeting of the 9th Board of Directors and the 19th meeting of
the 9th Board of Supervisors and reviewed and approved the Proposal on Granting Reserved Part of Restricted
Shares in the Phase I Restricted Share Incentive Plan to Incentive Objects and the Proposal on Repurchase and
Cancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan respectively. Thirty-three
core technicians and management backbones including Wang Manhong Zhang Yu and Qu Yi subscribed for
3721601 new shares at an issue price of 6.38 yuan/share and 260857 shares were repurchased at a price of 7.04
yuan/share from 2 employees who were no longer eligible for incentive objects. The registered capital of the
Company was changed to 4654114613.00 yuan. 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 the 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 the 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 6.39 yuan/share from 6 employees who are no longer qualified as incentive objects and the registered
capital of the Company was changed to 4653324902.00 yuan. 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 the Completion of the
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 the 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 6.39 yuan/share from 11 employees who are no longer qualified as incentive objects. The registered capital
of the Company was changed to 4651965655.00 yuan. 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 of the Completion of the 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 first granted in the phase I restricted incentive
plan had been fulfilled. The unlocking matters of the first restriction releasing period for restricted shares first
granted were handled in accordance with the restricted share incentive plan. There were a total of 311 incentive
234Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
objects eligible for unlocking and the number of restricted stocks unlocked this time was 13042347; these shares
were listed on May 16 2023. On February 3 2024 the Company disclosed the Indicative Announcement on the
Listing and Circulation of Unlocked Shares in the First Release Period of the Restricted Shares Firstly Granted in
the Phase I Restricted Share Incentive Plan.The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share
Incentive Plan was reviewed and approved at the 30th Meeting of the 9th Board of Directors and the 26th Meeting
of the 9th Board of Supervisors on December 15 2022. The participant 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 4651242220 yuan. 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 of the Completion of the
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 4637332330 yuan. 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 of the Completion of the 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 and 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 4636998475.00 yuan. 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 of the Completion of the
Repurchase and Cancellation of Some Restricted Shares.The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share
Incentive Plan was reviewed and approved at the 7th Meeting of the 10th Board of Directors and the 6th Meeting
of the 10th Board of Supervisors on November 20 2023. The participants at the meeting agreed to repurchase and
235Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 4636485668 yuan. 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 the Completion of the
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 General Meeting
of Shareholders. These meetings reviewed and approved "Proposal on Unfulfilling Conditions for Releasing
Restricted Sales in the Third Period of Releasing Restricted Shares Firstly Granted and Conditions for the Second
Period of Releasing Restricted Shares Reserved for Granting in Phase I Restricted Share Incentive Plan and
Repurchase and Cancellation of Some Restricted Shares." The meetings approved the repurchase and cancellation
of 12621954 restricted shares that had been granted to plan participants but had not yet vested. As a result the
Company's registered capital will be changed to 4623863714 yuan. 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 the Completion of the 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 the CSRC's
document "Reply on Approving the Registration of FAW Jiefang Group Co. Ltd.'s Non-public Issuance 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 298507462.00 yuan. Consequently the Company's registered capital
has changed to 4922371176.00 yuan. 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 a Board of
Directors and a 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 namely FAW Jiefang (Qingdao) Automotive Co. Ltd.Wuxi Dahao Power Co. Ltd. FAW Jiefang Dalian Diesel Engine Co. Ltd. FAW Jiefang Austria R&D Co. Ltd.FAW Jiefang Automobile Sales Co. Ltd. and FAW Jiefang Younida Transportation Technology (Tianjin) Co.Ltd. as well as 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
236Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 March 28 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 their application guidelines interpretations and other relevant provisions (hereinafter
collectively referred to as "ASBE"). In addition the Company also discloses relevant financial information
according to 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.
2. Continuing operations
The financial statements on continuing operations are presented.The financial accounting of the Company is based on accrual. 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
conditions of R&D expenses and income recognition policies according to its own production and operation
characteristics. For specific accounting policies please see 21 24 and 31 in V "Significant Accounting Policies and
Accounting Estimates" in Section X - Financial Report.
237Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 as of December 31 2024 of the Company and its information such
as consolidated and company's financial performance and consolidated and company's cash flow for the year then
ended.
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
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 merger under common control and different control
(1) Business merger under common control
As to the business merger under common control the assets and liabilities of the combined party obtained by the
combined 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.
238Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Business merger under common control realized step-by-step through multiple transactions
The assets and liabilities of the combined party obtained by the combined party are calculated in the book value in
the consolidated financial statements of the ultimate controller on the combination date. The difference between the
sum of the book value of investment held prior to the business combination plus the book value of new consideration
paid on the combination date and the book value of net assets acquired in the combination shall be used to adjust
capital reserve (share premium). If the capital reserve is insufficient for this adjustment the retained earnings shall
be adjusted accordingly. 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 the comparative statement.
(2) Business merger under different control
In the case of business merger under different 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 merger not under common control realized step-by-step through multiple transactions
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 merger
The overhead for the business merger 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.
239Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 in the same way as those of the Company during the preparation of the
consolidated financial statements. The significant transactions and balances between companies are offset.Where a subsidiary or business has been acquired through a business merger involving enterprises under common
control in the reporting period the subsidiary or business is deemed to be included in the consolidated financial
statements from the date they are controlled by the ultimate controlling party. Their operating results and cash flows
are respectively included in the consolidated income statement and consolidated cash flow statement from the date
they are controlled by the ultimate controlling party.For the subsidiaries and businesses that increased in the reporting period due to business merger under different
control their earnings expenses and profits from the acquisition date to the end of the reporting period are included
in the consolidated profit statement and their 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 the consolidated balance sheet as minority shareholders' equity. The portion of
net profit or loss of subsidiaries in the 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
240Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 an 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 for 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.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.
241Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 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 the influence amount of cash exchange rate movement is independently
presented as "Influence of exchange rate movement to cash and cash equivalent" in the cash flow statement.Differences arising from the translation of financial statements are separately presented as "other comprehensive
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.
242Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 at fair value through other comprehensive
income and financial assets measured at fair value with their changes included in the current profits or losses.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 into consideration the 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.
243Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 at fair value through 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 not only to collect contractual cash flows but also to
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 gains 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.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. In addition the
Company evaluates the contract terms that may cause changes in the time distribution or amount of contractual cash
244Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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
The financial liabilities of the Company are classified into financial liabilities at fair value through profit or loss
and financial liabilities are 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.* 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 it meets the former condition the financial instrument should be
245Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
recognized as financial liabilities; If it 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 X - 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.The Company measures the expected credit losses of financial instruments at different stages respectively. For
financial instruments whose credit risk has not significantly increased since initial recognition they are in Stage I
and the Company measures the loss allowance based on expected credit losses for the next 12 months; for financial
instruments whose credit risk has significantly increased since initial recognition but have not incurred credit
impairment they are in Stage II and the Company measures the loss allowance based on lifetime expected credit
losses of the instrument; For financial instruments that have incurred credit impairment since initial recognition
they are in Stage III and the Company measures the loss allowance based on lifetime expected credit losses 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.
246Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 for 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
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 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.
247Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 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
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;
248Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 has occurred or is 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
financial instruments on the basis of portfolios 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 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
249Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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
X - Financial Report.
13 Accounts receivable
Refer to 11 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" of Section
X - Financial Report.
14 Receivables financing
Refer to 11 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" of Section
X - Financial Report.
250Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
15 Other receivables
Refer to 11 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" of Section
X - Financial Report.
16 Contract assets
Refer to 11 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" of Section
X - 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 a lower 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 minus the cost to 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.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.The Company expenses low-value consumables in full when issued using the one-time write-off method; Packaging
materials are expensed in full when issued using the one-time write-off method.
251Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
18. Long-term receivables
Refer to 11 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" of Section
X - Financial Report.
19. Long-term equity investments
Long-term equity investments include equity investments in 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 under
different 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 using the cost method unless the investment meets the conditions for
held-for-sale; investments to associated enterprises and joint ventures are accounted for using 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 included in the
current profits and losses if the initial investment cost is less than the share of the fair value of the investee's
identifiable net assets at the time of the investment.For accounts 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 the 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 the owners' equity of the investee except net profit and loss as well as other comprehensive income and
profit distribution the book value of long-term equity investment shall be adjusted and included in the capital
reserve (other capital reserve). The Company recognizes its share of the investee's net profits or losses based on the
252Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 increases
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 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 the unrealized loss from internal
transactions incurred between the Company and its investee is not offset if it belongs to impairment loss from assets
transferred.
(3) Basis for determining joint control and significant influence on the investee
Joint control refers to the control over certain arrangements 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
253Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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. Protective rights are not taken into account when determining whether
there is joint control.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
X - Financial Report.
20 Investment properties
Measurement mode of investment properties: 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
X - Financial Report.The disposal income from the sale transfer retirement or damage of investment properties shall be included in
254Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
current profits and losses after deducting its 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
renting or operating and managing with an useful 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
2020 years 3-5 4.85-4.75
Buildings method
Machinery Straight-line
10 years 0-3 10.00-9.70
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
255Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
sale. Depreciation rates are determined based on fixed asset categories expected useful 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 X - Financial Report.
(4) The Company reviews the useful life expected net residual value and depreciation method of fixed assets
at the end of each year.The useful life of fixed assets shall be adjusted if the expected useful 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 X - Financial Report.
23. Borrowing costs
(1) Recognition principles for capitalization of borrowing costs
Borrowing costs incurred by the Company that are directly attributable to the acquisition construction or production
of qualifying assets are capitalized and included in the cost of related assets; other borrowing costs are recognized
as expenses based on their incurred amounts and included in current profit or loss when incurred. 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.
256Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(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 during periods in which the acquisition construction or production
of qualifying assets is abnormally interrupted for more than three consecutive months; Borrowing costs during
normal interruption periods continue to be capitalized.
(3) Calculation methods for the capitalization rate and amount of borrowing costs
For specific borrowings the capitalized amount is determined by deducting interest income earned from depositing
unused borrowing funds in banks or investment income from temporary investments from the actual interest
expenses incurred during the current period; for general borrowings the capitalized amount is determined by
multiplying the weighted average of asset expenditures exceeding the 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 on specific foreign currency borrowings are capitalized;
Exchange differences on general foreign currency borrowings are included in the current profit or loss.
24. Intangible assets
(1) Useful 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 useful life is analyzed and judged at the time of acquisition.Where the useful life is limited the intangible asset is amortized over its expected useful 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 useful life are not amortized.The amortization method for intangible assets with limited useful life is as follows:
Category Useful 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 useful life and amortization method of intangible assets with limited useful 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.
257Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 "Significant
Accounting Policies and Accounting Estimates" of Section X - 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 in the development phase can be capitalized only when all the following conditions are met:
completion of the intangible asset to enable its use or sale is technically feasible; There is an intention to complete
and use or sell the intangible asset; The manner in which the intangible asset will generate economic benefits can
be demonstrated including proving that a market exists for the products produced using the intangible asset or for
the intangible asset itself or if the intangible asset will be used internally proving its usefulness; Adequate technical
financial and other resources are available to complete the development and to use or sell the intangible asset; The
expenditure attributable to the development phase of the intangible asset 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 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:
258Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 mergers intangible assets with uncertain useful 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 a business merger 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 merger 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.
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.
259Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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
and 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 a defined contribution plan and a defined benefit plan. The defined
contribution plan refers to the post-employment benefit plan in which 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
The defined contribution plan includes basic pension insurance unemployment insurance and an 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.
260Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
* 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
a 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 to
a defined contribution plan. The benefits that meet the requirements of the defined benefit plan are treated in
accordance with the provisions of the plan. However the "changes caused by remeasurement of net liabilities or net
assets of the defined benefit plan" in relevant employee compensation costs are included in current profits and losses
or relevant asset costs.
29. Estimated liabilities
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 careful 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
261Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 payments and cash-settled
share-based payments.
(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 selected option pricing model
considers the following factors: A. The exercise price of the option; B. The term of the option; C. The current price
of the underlying shares; D. The expected volatility of the share price; E. The expected dividends on the shares; F.The risk-free interest rate during the term of the option.
(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 the 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
including in relevant costs or expenses and capital reserve at the fair value specified on the granting date of equity
instruments. After the vesting date no adjustment shall be made to the relevant costs or expenses as well as the
total amount of the owner's equities that have been confirmed.
262Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 the
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 the 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 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 to 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
263Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(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:
* The Company enjoys the right to the current collection i.e. the customer has an 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
264Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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.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 asset
impairment loss:
* 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 are satisfied and the government
subsidies are 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 1 yuan 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
265Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 useful 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 transactions with 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 current
profit and loss as income tax expenses except that the deferred income taxes related to the adjustment of goodwill
due to a business merger 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:
266Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(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;
(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 the 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 and
Accounting Estimates" of Section X - Financial Report.
267Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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
the lease cannot be determined the incremental borrowing rate shall be used as the discount rate. Lease payments
include fixed payments and in-substance fixed payments less any lease incentives; Variable lease payments that
depend on an index or rate; The exercise price of a purchase option if the lessee is reasonably certain to exercise
that option; Payments for terminating the lease if the lease term reflects the lessee exercising an option to terminate
the lease; And amounts expected to be payable under residual value guarantees 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.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 40 thousand
yuan.The Company includes the payment of low-value asset leases 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.
268Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 the 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 the 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.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 initial direct cost related to the operating lease shall be capitalized and 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 will be classified as a finance lease the Company shall carry out accounting treatment
269Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
in accordance with the provisions of the Accounting Standards for Business Enterprises No.22 - Recognition and
Measurement of Financial Instruments on modifying or renegotiating the contract.
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 the 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 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 the
expected credit loss rate of accounts receivable and it determines the expected credit loss rate based on default
probability and loss given by 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 the 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 with respect to all unused tax losses to the extent it is highly probable
that there will be sufficient taxable profits available to offset the losses. This requires the management to estimate
270Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 careful 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
Interpretation No.18 of Accounting Standards for Business Enterprises
The Ministry of Finance issued "Interpretation No.18 of Accounting Standards for Business Enterprises" (CK [2024]
No.24 Interpretation No.18) on December 31 2024.Accounting treatment of warranty-type quality assurance does not constitute a separate performance obligation
Interpretation No.18 stipulates that when accounting for provisions arising from warranty-type quality assurance
that does not constitute a separate performance obligation enterprises should in accordance with the relevant
provisions of "No.13 of Accounting Standards for Business Enterprises- Contingencies" debit "Main Operating
Costs" "Other Operating Costs" or other relevant accounts based on the determined provision amount and credit
the "Provisions" account. These should be correspondingly presented in the "Operating Costs" item in the income
statement and in the "Other Current Liabilities" "Non-current Liabilities Due Within One Year" "Provisions" or
other relevant items in the balance sheet.The Company has implemented this provision from the date of issuance of Interpretation No.18 and has made
retrospective adjustments.The impact of implementing the above accounting policies on the consolidated income statement for 2024 is as
follows:
Consolidated income statement items (2024) Impact amount (Yuan)
Sales expenses -649934273.23
Operating costs 649934273.23
The impact of implementing the above accounting policies on the consolidated income statement for 2023 is as
follows:
271Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Consolidated income statement Before adjustment Adjustment amount After adjustment
items (2023) (Yuan) (Yuan) (Yuan)
Sales expenses 1677186816.57 -573588104.47 1103598712.10
Operating costs 58827779239.02 573588104.47 59401367343.49
(2) Change in significant accounting estimates
□Applicable □Not applicable
(3) Adjustment of relevant items in the financial statements at the beginning of the year after the first
implementation of the new accounting standards since 2024
□Applicable □Not applicable
38. Others
(1) Fair value measurement
Fair value refers to the price to be received for the 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 price 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 a 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 the estimation technique. Only when relevant observable value cannot be obtained or can
be obtained but is not feasible can the unobservable input value 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.
272Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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.
(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 useful life of the leasing assets. In case of a failure to reasonably determine the ownership of
the leased assets at the end of the lease period the depreciation shall be drawn within the lease term or the remaining
useful 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 X
- 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 mechanical manufacturing enterprises with operating revenue not exceeding 10 million yuan the accrual rate
is 2.35%; For the portion of operating revenue exceeding 10 million yuan up to 100 million yuan the accrual rate
is 1.25%; For the portion of operating revenue exceeding 100 million yuan up to 1 billion yuan the accrual rate is
0.25%; For the portion of operating revenue exceeding 1 billion yuan up to 5 billion yuan the accrual rate is 0.1%;
For the portion of operating revenue exceeding 5 billion yuan the accrual rate is 0.05%.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 costs and maintenance & renovation costs 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.
273Full Text of 2024 Report 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 costs incurred via collection under the
item of "construction in progress" are recognized when the safety project completes and is ready for the intended
use. At the same time the Company will offset the specific reserves according to the cost that formed fixed assets
and determine the accumulated depreciation of the same amount. The fixed assets will no longer be depreciated in
subsequent periods.
(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 mergers intangible assets with uncertain useful 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 a business merger 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
274Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
are those that can benefit from the synergies of business merger 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
Turnover tax actually paid 7% 5% 3%
construction tax
Corporate income tax Taxable income 25%
Education surcharges Turnover tax actually paid 3%
Local educational
Turnover tax actually paid 2%
surcharges
Land use tax Land use area 9 yuan/m2 14 yuan/m2 etc.Property residual value and rental
Property tax 1.2% 12%
income
Disclosure of different corporate income tax rates for taxable entities
Name of Taxpayer Income tax rate
The Company 25%
Jiefang Limited 15%
Wuxi Dahao Power Co. Ltd. 25%
FAW Jiefang (Qingdao) Automotive Co. Ltd. 25%
FAW Jiefang Dalian Diesel Engine Co. Ltd. 15%
FAW Jiefang Austria R&D Co. Ltd. 23%
FAW Jiefang Automotive Sales Co. Ltd. 25%
275Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
FAW Jiefang Uni-D Transportation Technology
25%
(Tianjin) Co. Ltd.Jiefang Motors Tanzania Ltd. 30%
FAW Vehicle Manufacturing South Africa Co. Ltd. 27%
FAW (Africa) Investment Co. Ltd. 25%
FAW Jiefang Group International Automobile Co. 25%
Ltd.
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.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: Yuan
Item Ending balance Opening balance
Cash on hand 300158.23 38698.84
Bank deposit 10959276854.87 9181802999.73
Other monetary capital 22157571.16 24815735.14
276Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Deposit in finance companies 8871226437.40 14338922970.68
Total 19852961021.66 23545580404.39
Including: total amount
442153591.03336307985.27
deposited abroad
Other description:
Details of restricted cash are as follows: Unit: Yuan
Ending balance of the previous
Item Ending balance
year
Security deposit for three types of
28438604.7327839503.40
personnel
Housing maintenance fund 22157571.16 22103193.44
Court freezing 214000.00 725230.81
Total 50810175.89 50667927.65
2. Notes receivable
(1) Classified presentation of notes receivable
Unit: Yuan
Item Ending balance Opening balance
Commercial acceptance notes 2641582.80 44626048.13
Total 2641582.80 44626048.13
277Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(2) Disclosure by the method of provision for bad debts
Unit: Yuan
Ending balance Opening balance
Provision for Bad
Book balance Book balance Provision for Bad Debts
Category Debts
Book Value Book Value
Provision Provision
Amount Scale Amount Amount Scale Amount
proportion proportion
Including:
Notes receivable
with provision for
2649000.00100.00%7417.200.28%2641582.8044841286.30100.00%215238.170.48%44626048.13
bad debts by
portfolio
Including:
Commercial
2649000.00100.00%7417.200.28%2641582.8044841286.30100.00%215238.170.48%44626048.13
acceptance bill
Total 2649000.00 100.00% 7417.20 0.28% 2641582.80 44841286.30 100.00% 215238.17 0.48% 44626048.13
Provision for bad debts by portfolio: commercial acceptance bill
Unit: Yuan
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Within 1 year 2649000.00 7417.20 0.28%
Total 2649000.00 7417.20
Description of the basis for determining this portfolio:
278Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
If the provision for bad debts of notes receivable is withdrawn based on the general model of expected credit
losses:
□Applicable □Not applicable
Unit: Yuan
Stage I Stage II Stage III
Expected credit Expected credit
Provision for Bad Debts Expected Credit loss in the loss for the entire Total
Losses for the Next duration (credit duration (with
12 Months impairment not credit
occurred) impairment)
Balance as of January 1
215238.17215238.17
2024
Balance on January 1 2024
in the current period
Provision in the current
-207820.97-207820.97
period
Balance as of December
7417.207417.20
312024
Basis for stage classification and bad debt provision rates: Stage I provisions are based on aging with a rate of
0.28% for receivables within 1 year.
Explanation of significant changes in the carrying amount of notes receivable for which loss allowances changed
during the current period: None
(3) Provision for bad debts provided recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: Yuan
Change in the Current Period
Opening
Category
balance Recovery or
Ending balance
Provision Write-off Others
reversal
Commercial
215238.17-207820.977417.20
acceptance bill
Total 215238.17 -207820.97 7417.20
Important provision for bad debts recovered or reversed in the current period:
□Applicable □Not applicable
3. Accounts receivable
(1) Disclosure by aging
Unit: Yuan
Aging Ending book balance Beginning Book Balance
Within 1 year (including 1 year) 6872611350.77 2149306339.50
Including: 0-6 months 6651660144.83 2000561741.56
7-12 months 220951205.94 148744597.94
1-2 years 157505139.84 105577172.64
279Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
2-3 years 75249438.78 124209251.51
Over 3 years 217725478.29 206012308.00
3-4 years 23161532.86 46216240.91
4-5 years 38071959.47 5578090.58
Over 5 years 156491985.96 154217976.51
Total 7323091407.68 2585105071.65
280Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(2) Disclosure by the method of provision for bad debts
Unit: Yuan
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
Accounts
receivable
with
provision
178969510.252.44%156416729.0587.40%22552781.20185971701.177.19%152713675.5382.12%33258025.64
for bad
debts on an
individual
basis
Including:
Accounts
receivable
with
provision 7144121897.43 97.56% 99378536.09 1.39% 7044743361.34 2399133370.48 92.81% 89282746.98 3.72% 2309850623.50
for bad
debts by
portfolio
Including:
Including:
Aging 7144121897.43 97.56% 99378536.09 1.39% 7044743361.34 2399133370.48 92.81% 89282746.98 3.72% 2309850623.50
portfolio
Total 7323091407.68 100.00% 255795265.14 3.49% 7067296142.54 2585105071.65 100.00% 241996422.51 9.36% 2343108649.14
281Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Provision for bad debts on an individual basis
Unit: Yuan
Opening balance Ending balance
Name Reasons Provision for Bad Provision for Bad Provision
Book balance Book balance for
Debts Debts proportion
provision
Jiangsu It is highly
Xinrui New probable
Energy that the
37612001.7037612001.7037612001.7037612001.70100.00%
Vehicle amounts
Technology will not be
Co. Ltd. recovered
It is highly
MOHAMM
probable
ED
that the
ENTERPRI 11772391.81 11772391.81 11948079.30 11948079.30 100.00%
amounts
SES (T)
will not be
LTD
recovered
It is highly
AFRICA
probable
LOGISTIC
that the
S 11061236.75 11061236.75 11226311.19 11226311.19 100.00%
amounts
SOLUTION
will not be
S LIMITED
recovered
It is highly
probable
THOSMA
that the
LOGISTIC 10659505.50 3209585.42 10820948.89 3246284.67 30.00%
amounts
S LIMITED
will not be
recovered
It is highly
probable
FUHUA that the
9918717.472904817.4710066741.313052841.3130.33%
MOTORS amounts
will not be
recovered
It is highly
MO
probable
GREEN
that the
INTERNAT 9575810.40 2903460.94 9720879.01 2916263.70 30.00%
amounts
IONAL
will not be
CO.LTD
recovered
It is highly
Zhejiang
probable
Hanglun
that the
Ligang 8581536.83 8581536.83 8581536.83 8581536.83 100.00%
amounts
Trading Co.will not be
Ltd.recovered
It is highly
Putian New
probable
Energy
that the
Automotive 8156900.00 8156900.00 727900.00 727900.00 100.00%
amounts
(Shandong)
will not be
Co. Ltd.recovered
Dalian It is highly
8043264.878043264.878043264.878043264.87100.00%
Qingfeng probable
282Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Bus Co. that the
Ltd. amounts
will not be
recovered
It is highly
probable
REDDYFA
that the
RMSLIMIT 7732179.52 7732179.52 100.00%
amounts
E
will not be
recovered
It is highly
Beijing
probable
Hotan
that the
Automobile 7436520.00 7436520.00 7436520.00 7436520.00 100.00%
amounts
Modificatio
will not be
n Co. Ltd.recovered
It is highly
Changchun
probable
Xiongtu
that the
New Energy 6230500.00 6230500.00 6230500.00 6230500.00 100.00%
amounts
Vehicle Co.will not be
Ltd.recovered
Zhonghe
It is highly
Shunyang
probable
Supply
that the
Chain 5643600.00 5643600.00 5643600.00 5643600.00 100.00%
amounts
Managemen
will not be
t (Jilin) Co.recovered
Ltd.It is highly
probable
that the
Others 51279715.84 39157859.74 43179047.63 42019445.96 97.31%
amounts
will not be
recovered
Total 185971701.17 152713675.53 178969510.25 156416729.05
Bad debt provision made as per portfolio:
Unit: Yuan
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Within 1 year 6871181268.41 14976650.57 0.22%
1-2 years 139485746.96 11293705.62 8.10%
2-3 years 60589030.29 9518353.46 15.71%
3-4 years 23161532.86 13885507.53 59.95%
Over 4 years 49704318.91 49704318.91 100.00%
Total 7144121897.43 99378536.09
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: Yuan
283Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Stage I Stage II Stage III
Expected credit Expected credit
Provision for Bad Debts Expected Credit loss in the duration loss for the entire Total
Losses for the
(credit impairment duration (with
Next 12 Months
not occurred) credit impairment)
Balance as of January 1
6510874.4382771872.55152713675.53241996422.51
2024
Balance on January 1 2024
in the current period
-- Transfer to stage II -432405.82 432405.82
Provision in the current
8730475.36177745.5110629465.2419537686.11
period
Reversal in the current
7429000.007429000.00
period
Other changes -167706.60 -1019861.64 -502588.28 -1690156.52
Balance as of December
14976650.5784401885.52156416729.05255795265.14
312024
Basis for stage classification and bad debt provision rates: For Stage I and Stage II provisions are based on aging
with rates of 0.22% for within 1 year 8.10% for 1-2 years 15.71% for 2-3 years 59.95% 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: None
(3) Provision for bad debts provided recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: Yuan
Change in the Current Period
Category Opening balance Recovery or Write Ending balance
Provision Others
reversal -off
Accounts
241996422.5119537686.117429000.00-1690156.52255795265.14
receivable
Total 241996422.51 19537686.11 7429000.00 -1690156.52 255795265.14
Important provision for bad debts recovered or reversed in the current period:
Unit: Yuan
Basis of determining the
Amount recovered Reason for proportion of provision
Name of Unit Recovery method
or reversed reversal for original bad debts
and its rationality
Litigation has been
Putian New Energy
initiated; the
Automotive
7429000.00 Recovered Notes cash counterparty faces
(Shandong) Co.financial difficulties
Ltd.making recovery
284Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
unlikely
Total 7429000.00
(4) Other accounts receivable and contractual assets from the top five borrowers classified based on the
ending balance
Unit: Yuan
Ending balance
Proportion in
of bad debt
Ending total ending
provision for
balance Ending balance of balance of
accounts
Ending balance of of accounts receivable accounts
Name of Unit receivable and
accounts receivable contract and contractual receivable
impairment
ual assets and
provision for
assets contractual
contractual
assets
assets
China FAW Group
Import & Export 5859058467.14 5859058467.14 79.84% 7201938.50
Co. Ltd.Customer 1 96904000.00 96904000.00 1.32% 271331.20
Customer 2 58184000.00 58184000.00 0.79% 162915.20
Customer 3 57462872.71 57462872.71 0.78% 804480.22
FAW-HONGTA
Yunnan Automobile 43170001.84 43170001.84 0.59% 16226515.53
Co. Ltd.Total 6114779341.69 6114779341.69 83.32% 24667180.65
4. Contract assets
(1) Contractual assets
Unit: Yuan
Ending balance Opening balance
Item Provision Provision for
Book balance Book Value Book balance for Bad Book Value
Bad Debts
Debts
Contr
act 15055893.05 600351.00 14455542.05 18023563.08 440706.26 17582856.82
assets
Total 15055893.05 600351.00 14455542.05 18023563.08 440706.26 17582856.82
285Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(2) Disclosure by the method of provision for bad debts
Unit: Yuan
Ending balance Opening balance
Provision for Bad
Book balance Provision for Bad Debts Book balance
Debts
Category Provisio Book Value Provisi Book Value
n on
Amount Scale Amount Amount Scale Amount
proporti proport
on ion
Includi
ng:
Provision
for bad
15055893.05100.00%600351.003.99%14455542.0518023563.08100.00%440706.262.45%17582856.82
debts made
by portfolio
Includi
ng:
Total 15055893.05 100.00% 600351.00 3.99% 14455542.05 18023563.08 100.00% 440706.26 2.45% 17582856.82
Bad debt provision made as per portfolio:
Unit: Yuan
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Within 1 year 13802561.97 32721.57 0.24%
1-2 years 403404.08 49938.77 12.38%
2-3 years 469927.00 137690.66 29.30%
Over 3 years 380000.00 380000.00 100.00%
Total 15055893.05 600351.00
Description of the basis for determining this portfolio:
286Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Provision for bad debts based on the general model of expected credit losses
□Applicable □Not applicable
Unit: Yuan
Stage I Stage II Stage III
Expected credit Expected credit
Provision for Bad Debts Expected Credit loss in the loss for the entire Total
Losses for the duration (credit duration (with
Next 12 Months impairment not credit
occurred) impairment)
Balance as of January 1
60935.81379770.45440706.26
2024
Balance on January 1 2024
in the current period
Provision in the current
-28214.24187858.98159644.74
period
Balance as of December
32721.57567629.43600351.00
312024
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 12.38% for 1-2 years 29.30% for 2-3 years and 100% for over 3 years.Description of significant changes in the book balance of contractual assets with changes in provision for loss in the
current period: None
(3) Provision for bad debts provided recovered or reversed in the current period
Unit: Yuan
Recovery or Charge-off/Write-
Provision in the
Item reversal in the off in the Current Reason
current period
current period Period
Impairment
Risks in payment
provision of 159644.74
collection
contract assets
Total 159644.74 ——
Important provision for bad debts recovered or reversed in the current period:
5. Receivables financing
(1) Presentation of receivables financing by category
Unit: Yuan
Item Ending balance Opening balance
Notes receivable 10019816248.98 4878126972.73
Total 10019816248.98 4878126972.73
287Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(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: Yuan
Derecognized amount at the end of Amount not derecognized at the
Item
the period end of the period
Bank acceptance bill 28875448786.42
Total 28875448786.42
Certain subsidiaries of the Company discount and endorse some bank acceptance bills based on their daily cash
management requirements; therefore these subsidiaries' bank acceptance bills are classified as financial assets
measured at fair value through other comprehensive income.The Company has no bank acceptance bills with impairment provisions for individual items. At the end of the
period the Company believes that the bank acceptance bills held have no material credit risk and do not bring
material losses as a result of a bank default.
6. Other receivables
Unit: Yuan
Item Ending balance Opening balance
Dividends receivable 157707661.77
Other receivables 1182925650.71 1320113974.68
Total 1340633312.48 1320113974.68
(1) Dividends receivable
1) Classification of dividends receivable
Unit: Yuan
Item (or Investee) Ending balance Opening balance
First Automobile Finance Co. Ltd. 156960226.90
FAW Jiefang Fujie (Tianjin) Technology
747434.87
Industry Co. Ltd.Total 157707661.77
(2) Other receivables
1) Classification of other receivables by nature
Unit: Yuan
Nature Ending book balance Beginning Book Balance
Current account 916206955.43 1202191858.30
Claim payment 262619355.01 192151504.78
Margin deposit 30382472.86 41880669.47
Reserve fund 9876260.52 621409.08
Total 1219085043.82 1436845441.63
288Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
2) Disclosure by aging
Unit: Yuan
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 348766762.84 582287476.30
Including: 0-6 months 347605932.37 566702655.95
6-12 months 1160830.47 15584820.35
1-2 years 164029838.32 764998219.89
2-3 years 688094494.92 1331719.31
Over 3 years 18193947.74 88228026.13
3-4 years 726113.75 3745596.19
4-5 years 3701471.89 149607.62
Over 5 years 13766362.10 84332822.32
Total 1219085043.82 1436845441.63
289Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
3) Disclosure by the method of provision for bad debts
□Applicable □Not applicable
Unit: Yuan
Ending balance Opening balance
Book balance Provision for Bad Debts Book balance Provision for Bad Debts
Categ Provisio
ory n Book value Provision Book value
Amount Scale Amount Amount Scale Amount
proporti proportion
on
Provis
ion
for
bad
debts
2097739.410.17%2097739.41100.00%0.0060417839.414.20%60417839.41100.00%0.00
made
by
indivi
dual
item
Includ
ing:
Provis
ion
for
bad
debts 1216987304.41 99.83% 34061653.70 2.80% 1182925650.71 1376427602.22 95.80% 56313627.54 4.09% 1320113974.68
made
by
portfo
lio
Includ
ing:
Total 1219085043.82 100.00% 36159393.11 2.97% 1182925650.71 1436845441.63 100.00% 116731466.95 8.12% 1320113974.68
290Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Provision for bad debts on an individual basis
Unit: Yuan
Opening balance Ending balance
Name Reasons Provision for Provision for Provision
Book balance Book balance for
Bad Debts Bad Debts proportion
provision
Changchun
37820100.0037820100.00
Finance Bureau
The People's
Government of
20500000.0020500000.00
Dalian
Municipality
It is highly
Wuxi Large
probable
Cargo Port
that the
Lifting and 542293.00 542293.00 542293.00 542293.00 100.00%
amounts
Transportation
will not be
Co. Ltd.recovered
It is highly
probable
FAW Jilin
that the
Automobile 538200.00 538200.00 538200.00 538200.00 100.00%
amounts
Co. Ltd.will not be
recovered
It is highly
probable
FAW Jingye
that the
Automobile 199194.30 199194.30 199194.30 199194.30 100.00%
amounts
Co. Ltd.will not be
recovered
It is highly
Beijing
probable
Torchstar
that the
Automation 198000.00 198000.00 198000.00 198000.00 100.00%
amounts
Technology
will not be
Co. Ltd.recovered
It is highly
Chongqing
probable
Jinhua
that the
Automobile 154539.47 154539.47 154539.47 154539.47 100.00%
amounts
Brake
will not be
Corporation
recovered
Nanjing Xinpu It is highly
135000.00135000.00135000.00135000.00100.00%
Electromechani probable
291Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
cal Equipment that the
Manufacturing amounts
Co. Ltd. will not be
recovered
It is highly
Hunan Changji probable
Technology that the
119600.00119600.00119600.00119600.00100.00%
Development amounts
Co. Ltd. will not be
recovered
It is highly
probable
that the
Other 9 items 210912.64 210912.64 210912.64 210912.64 100.00%
amounts
will not be
recovered
Total 60417839.41 60417839.41 2097739.41 2097739.41
Bad debt provision made as per portfolio:
Unit: Yuan
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Aging portfolio 1219085043.82 36159393.11 2.97%
Total 1219085043.82 36159393.11
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses:
Unit: Yuan
Stage I Stage II Stage III
Expected credit Expected credit
Provision for Bad Debts Expected Credit loss in the loss for the entire Total
Losses for the duration (credit duration (with
Next 12 Months impairment not credit
occurred) impairment)
Balance as of January 1 2024 12948199.25 43365428.29 60417839.41 116731466.95
Balance on January 1 2024 in
the current period
-- Transfer to stage II -1623715.16 1623715.16
Provision in the current period -8353485.47 -13898488.37 -22251973.84
Reversal in the current period 58320100.00 58320100.00
Balance as of December 31
2970998.6231090655.082097739.4136159393.11
2024
Basis for stage classification and bad debt provision rates: For Stage I and Stage II provisions are based on aging
with rates of 0.79% for Stage I and 3.70% for Stage II. For receivables in Stage III the Company measures the loss
292Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
allowance based on lifetime expected credit losses for 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: Yuan
Change in the Current Period
Charge-
Category Opening balance Recovery or off or Ending balance
Provision Others
reversal write-
off
Other
116731466.95-22251973.8458320100.0036159393.11
receivables
Total 116731466.95 -22251973.84 58320100.00 36159393.11
Important provision for bad debts recovered or reversed in the current period:
Unit: Yuan
Basis of
determining the
Amount recovered proportion of
Name of Unit Reason for reversal Recovery method
or reversed provision for
original bad debts
and its rationality
The People's Expected that the
Government of 20500000.00 Recovered Cash recovery amounts will not be
Dalian Municipality recovered
Total 20500000.00
5) Top five ending balances of other receivables classified by debtors
Unit: Yuan
Proportion in
total ending Ending Balance
Nature of
Name of Unit Ending balance Aging balance of of Provision for
Payment
other Bad Debts
receivables
Funds for land
Customer 1 purchase and 660862800.00 2-3 years 54.21% 7269490.80
reserve
Less than 1
New energy
Customer 2 58955300.00 year 1-2 4.84% 4106396.08
subsidy
years
New energy
Customer 3 48318584.07 1-2 years 3.96% 3952460.18
subsidy
Customer 4 New energy 48010000.00 1-2 years 3.94% 528110.00
293Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
subsidy
New energy Within 1
Customer 5 29982300.88 2.46% 479716.81
subsidy year
Total 846128984.95 69.41% 16336173.87
7. Advance payment
(1) Presentation of advance payment by aging
Unit: Yuan
Ending balance Opening balance
Aging
Amount Scale Amount Scale
Within 1 year 118197236.62 91.88% 439795208.40 63.65%
1-2 years 1609861.97 1.25% 155859251.52 22.56%
2-3 years 8541250.38 6.64% 75025163.59 10.86%
Over 3 years 290810.50 0.23% 20225475.23 2.93%
Total 128639159.47 690905098.74
Reasons for delay in settlement of advance payment with important amounts and aging over 1 year: Unit: Yuan
Proportion in
Name of Debtor Book balance Total Advance Provision for Bad Debts
Payment (%)
RiseSun MGL 7245030.70 5.63%
(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 is
53167717.55 yuan accounting for 41.33% of the total closing balance of advance payments.
Other description: none
8. Inventories
Does the Company need to comply with the disclosure requirements of the real estate industry: No
(1) Classification of inventories
Unit: Yuan
Ending balance Opening balance
Impairment Impairment
Item Provision of Provision of
Book balance Inventories or Book Value Book balance Inventories or Book Value
Contract Contract
Performance Costs Performance Costs
Raw
314311378.7638992671.09275318707.67346085168.1533387013.66312698154.49
material
Goods in
445006311.2611526023.10433480288.16449087779.3814783370.86434304408.52
process
Goods in 7452128355.61 253655992.67 7198472362.94 7066822539.59 178277353.30 6888545186.29
294Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
stock
Revolving
77088960.572406972.1474681988.4396527196.361940234.7194586961.65
material
Outsourced
semi-
2270730746.00135470983.232135259762.772488739701.04162232949.942326506751.10
finished
products
Total 10559265752.20 442052642.23 10117213109.97 10447262384.52 390620922.47 10056641462.05
(2) Impairment provision of inventories and contract performance costs
Unit: Yuan
Decrease in the Current
Increase in the Current Period
Opening Period
Item Ending balance
balance Reverse or
Provision Others Others
charge-off
Raw
33387013.667508863.721903206.2938992671.09
material
Goods in
14783370.861984039.855241387.6111526023.10
process
Goods in
178277353.30321251498.241513798.78247386657.65253655992.67
stock
Revolving
1940234.715030079.414563341.982406972.14
material
Outsourced
semi-
162232949.9416888983.5843650950.29135470983.23
finished
products
Total 390620922.47 352663464.80 1513798.78 302745543.82 442052642.23
Reversal or write-off in the
current period
Item Specific basis for determining the net realizable value
Reasons for inventory
provision for depreciation
Estimated selling price of products minus costs related expenses Increase in net realizable
Raw material
and taxes to completion value sale or use
Estimated selling price of products minus costs related expenses Increase in net realizable
Goods in process
and taxes to completion value sale or use
Estimated selling price of products minus costs related expenses Increase in net realizable
Goods in stock
and taxes to completion value sale or use
Revolving Estimated selling price of products minus costs related expenses Increase in net realizable
material and taxes to completion value sale or use
Outsourced Increase in net realizable
Estimated selling price of products minus costs related expenses
semi-finished value sale or use
and taxes to completion
products
Provision for inventory depreciation reserve on a portfolio basis
9. Long-term receivables due within 1 year
Unit: Yuan
Item Ending balance Opening balance
295Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Long-term receivables due within
377668442.06386692620.64
1 year
Total 377668442.06 386692620.64
10. Other current assets
Unit: Yuan
Item Ending balance Opening balance
Input VAT 802923987.38 410162184.87
Input VAT to be certified 610578724.24 625978432.77
Prepaid income tax 8048695.40
Others 135462.60
Total 1413638174.22 1044189313.04
Other description:
296Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
11. Investment in other equity instruments
Unit: Yuan
Divid
Cumulative
end
Losses losses Reason for being
inco
included in Cumulative gains included in designated as
Gains included in me
other included in other other being measured at
other recog
comprehens comprehensive comprehen fair value and
Project name Ending balance Opening balance comprehensive nized
ive incomes incomes at the sive changes included
incomes in the in the
in the end of the incomes at in other
current period curre
current current period the end of comprehensive
nt
period the current incomes
perio
period
d
Changes in fair
REFIRE 540066528.00 480780000.00 59286528.00 59286528.00
value
Total 540066528.00 480780000.00 59286528.00 59286528.00
Other notes: The equity of Shanghai Refire Group Limited is an investment that the Company plans to hold for a long time for strategic purposes so the Company
designates it as a financial asset measured at fair value and whose changes are included in other comprehensive incomes.
12. Long-term receivables
(1) Long-term receivables
Unit: Yuan
Ending balance Opening balance Discoun
Item Provision for Provision for t rate
Book balance Book Value Book balance Book Value
Bad Debts Bad Debts range
Sales of goods by
542060036.9853480359.31488579677.67557610217.2538886343.34518723873.91
installment
Long-term receivables due
-430595782.49-52927340.43-377668442.06-424889783.15-38197162.51-386692620.64
within 1 year
Total 111464254.49 553018.88 110911235.61 132720434.10 689180.83 132031253.27
297Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(2) Provision for bad debts provided recovered or reversed in the current period
Unit: Yuan
Change in the Current Period
Category Opening balance Recovery or Charge-off or write- Ending balance
Provision Others
reversal off
Long-term receivables 38886343.34 14179402.72 -414613.25 53480359.31
Total 38886343.34 14179402.72 -414613.25 53480359.31
13. Long-term equity investments
Unit: Yuan
Ope Increase/Decrease in the current period Endi
ning ng
bala bala
nce Impa nce
Investe Opening balance of Investment gains Adjustment to Cash dividends irme Ending balance of
e (book value) imp Additional or losses other Changes in Reduced Investment and profits nt Others (book value) imp
airm Investment recognized under comprehensive other equity declared to pay Prov airm
ent the equity method income ision ent
prov prov
ision ision
I. Joint ventures
Jiefang
Times
New
Energy
41528982.6764994.00-610747.8540983228.82
Techn
ology
Co.Ltd.Subtot
41528982.6764994.00-610747.8540983228.82
al
II. Associated enterprises
First 4337808758.45 3887756356.82 273826162.32 -101144.85 723777419.10
298Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Autom
obile
Financ
e Co.Ltd.Chang
chun
Autom
otive
700656627.2734460055.90-49742.00735066941.17
Test
Center
Co.Ltd.Sangu
ard
Autom
obile
171795598.71451805.5711854751.09184102155.37
Insura
nce
Co.Ltd.FAW
Chang
chun
Anstee
l Steel
Proces
87942751.831376872.48-81112.811324000.0087914511.50
sing
and
Distrib
ution
Co.Ltd.FAW
Chang
chun
43464086.436902383.036500530.6243865938.84
Baoyo
u
Jiefang
299Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Steel
Proces
sing
and
Distrib
ution
Co.Ltd.FAW
Jiefang
Fujie
(Tianji
n)
36982856.24553066.08352167.48747434.87-43751.4937096903.44
Techn
ology
Industr
y Co.Ltd.Foshan
Diyiyu
an
New
Energy 33214745.08 -4730665.10 28484079.98
Techn
ology
Co.Ltd.Chang
chun
Wabco
Autom
otive
16197563.58-1463642.8214733920.76
Contro
l
Syste
m Co.Ltd.Diyi
4900000.00-859218.794040781.21
AESC
300Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
New
Energy
Power
Techn
ology
(Wuxi)
Co.Ltd.Smart
Link
Suzho
u
Zhito
Techn
ology
Co.Ltd.Subtot
5428062987.594900000.003887756356.82310516818.6711703864.24271054.67732349384.59-43751.491135305232.27
al
Total 5469591970.26 4900000.00 3887756356.82 310581812.67 11703864.24 271054.67 732349384.59 -654499.34 1176288461.09
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: none
301Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
14. Investment properties
(1) Investment properties measured at cost
□Applicable □Not applicable
Unit: Yuan
Project
Houses and under
Item Land use right Total
Buildings constructi
on
I. Original book value
1. Opening balance 72815332.95 7474052.82 80289385.77
2. Increase in the current
38648741.4524710.6238673452.07
period
(1) Purchase
(2) Transfer from
inventories/fixed
assets/construction in progress
(3) Increase due to
business combination
(4) Transfer of fixed
38648741.4524710.6238673452.07
assets and intangible assets
3. Decrease in the current
2835927.002835927.00
period
(1) Disposal
(2) Other transfer-out
(3) Transferred back to
2835927.002835927.00
construction in progress
4. Ending balance 108628147.40 7498763.44 116126910.84
II. Accumulated depreciation
and accumulated amortization
1. Opening balance 31844973.90 1394416.34 33239390.24
2. Increase in the current
32637904.17164489.3132802393.48
period
(1) Provision or
3314733.84151641.963466375.80
amortization
(2) Transfer of fixed assets and
29323170.3312847.3529336017.68
intangible assets
3. Decrease in the current
2750849.192750849.19
period
(1) Disposal
(2) Other transfer-out
(3) Transferred back to
2750849.192750849.19
construction in progress
4. Ending balance 61732028.88 1558905.65 63290934.53
III. Impairment provision
1. Opening balance
2. Increase in the current
302Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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 46896118.52 5939857.79 52835976.31
2. Beginning book value 40970359.05 6079636.48 47049995.53
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: none
(2) Investment properties measured at fair value
□Applicable□ Not applicable
(3) Investment real estate without property ownership certificates
Unit: Yuan
Item Book Value Reasons for failure to obtain the certificate
This plot has been included in the government
Property No.949 Chongqing
640927.41 renovation project and cannot be handled at
Middle Road Licang District
present
Other description: none
15. Fixed assets
Unit: Yuan
Item Ending balance Opening balance
Fixed assets 11192711830.63 11473133567.13
Disposal of fixed assets 5588741.57 7715678.77
Total 11198300572.20 11480849245.90
303Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(1) Details of fixed assets
Unit: Yuan
Houses and Machinery Transportation Electronic Office
Item Others Total
Buildings equipment equipment equipment equipment
I. Original book value
1. Opening
6370670101.7117976807890.25170729445.73730816759.2466124082.781375794704.4526690942984.16
balance
2. Increase in the
235575991.031298979452.3627160845.0845672204.606403178.0540455511.781654247182.90
current period
(1) Purchase 122567033.28 224821861.12 3778202.86 29210479.03 2185080.10 23181454.47 405744110.86
(2) Transfer from
construction in 111704975.31 1071457113.05 23220247.77 15997825.96 3595109.65 17272644.83 1243247916.57
progress
(3) Increase due to
business combination
(4) Other increases 1303982.44 2700478.19 162394.45 463899.61 622988.30 1412.48 5255155.47
3. Decrease in
260616290.92368511018.647469280.0624691794.765732613.4914189415.98681210413.85
the current period
(1) Disposal or
840042.28283241413.057433881.8123748719.345588823.725042068.18325894948.38
retirement
(2) Other decreases 259776248.64 85269605.59 35398.25 943075.42 143789.77 9147347.80 355315465.47
4. Ending
6345629801.8218907276323.97190421010.75751797169.0866794647.341402060800.2527663979753.21
balance
II. Accumulated
depreciation
1. Opening
2498421526.3810813134009.79128577837.53574696629.6146966988.311130727557.8415192524549.46
balance
2. Increase in the
314037532.941261247456.7520844626.67101221636.656560343.4274738938.661778650535.09
current period
(1) Provision 313747732.97 1260814918.06 20717556.70 101032278.34 6189366.04 74737661.81 1777239513.92
(2) Other increases 289799.97 432538.69 127069.97 189358.31 370977.38 1276.85 1411021.17
3. Decrease in
164638121.63309305058.057120658.5724620768.275537748.1712131608.71523353963.40
the current period
(1) Disposal or
814841.01270833621.647120658.5723677692.855430818.484887216.04312764848.59
retirement
304Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(2) Other decreases 163823280.62 38471436.41 943075.42 106929.69 7244392.67 210589114.81
4. Ending
2647820937.6911765076408.49142301805.63651297497.9947989583.561193334887.7916447821121.15
balance
III. Impairment
provision
1. Opening
12344.3722288724.0843047.042940752.0825284867.57
balance
2. Increase in the
current period
(1) Provision
3. Decrease in
1837369.50696.641838066.14
the current period
(1) Disposal or
1837369.50696.641838066.14
retirement
4. Ending
12344.3720451354.5842350.402940752.0823446801.43
balance
IV. Book value
1. Ending book
3697796519.767121748560.9048119205.12100499671.0918762713.38205785160.3811192711830.63
value
2. Beginning
3872236230.967141385156.3842151608.20156120129.6319114047.43242126394.5311473133567.13
book value
305Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(2) Temporary idle fixed assets
Unit: Yuan
Original book Accumulated Impairment
Item Book Value Remarks
value depreciation Provision
Houses and
43559517.6126164891.2812344.3717382281.96
Buildings
Machinery
287081728.01249774969.999987575.2327319182.79
equipment
Transportation
255116.40255116.40
equipment
Electronic
2535332.712535332.71
equipment
Office
2806415.112646088.0742142.85118184.19
equipment
Others 14140537.80 12950129.95 803978.77 386429.08
Total 350378647.64 294326528.40 10846041.22 45206078.02
(3) Fixed assets without property ownership certificates
Unit: Yuan
Reasons for failure to obtain the
Item Book Value
certificate
The property ownership certificate
will be applied for after the final
Guanghan base project 345977710.81
account audit upon completion of the
project
It is a new plant and the information
Project of exiting the city and
39718005.70 is incomplete and currently being
entering the industrial park
processed.The property ownership certificate
Equipment and plant project 93370032.35
has not yet been applied for
Total 479065748.86
Other description:
(4) Disposal of fixed assets
Unit: Yuan
Item Ending balance Opening balance
Houses and Buildings 44184.97 44864.97
Machinery equipment 3066994.74 5776946.67
Means of transport 357163.02 125020.45
Electronic equipment 23158.49 12316.70
Office equipment 1004714.07 132249.55
Others 1092526.28 1624280.43
Total 5588741.57 7715678.77
Other description:
16. Construction in progress
Unit: Yuan
Item Ending balance Opening balance
Project under construction 688181815.22 816484299.18
Total 688181815.22 816484299.18
306Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(1) Construction in progress
Unit: Yuan
Ending balance Opening balance
Item Impairment Impairment
Book balance Book Value Book balance Book Value
provision provision
New
and
reconst
ructed 30573415.10 1945416.12 28627998.98 109030761.94 1945416.12 107085345.82
invest
ment
project
Techni
cal
transfo
rmatio
659609313.4355497.19659553816.24709454450.5555497.19709398953.36
n
invest
ment
project
Total 690182728.53 2000913.31 688181815.22 818485212.49 2000913.31 816484299.18
307Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(2) Changes in important construction in progress in the current period
Unit: Yuan
Inclu
ding: Capi
Capit taliz
Proporti
Other Cumu alized ation
on of
Decre lative intere rate
accumul
ases amou st of Capit
Amount transferred ated
Project Increase in the in the Project nt of amou inter al
Budget Opening balance to fixed assets in the Ending balance investme
name Current Period Curre Progress capita nt est sourc
current period nt in
nt lized durin in e
construct
Perio intere g the curr
ions to
d st curre ent
budget
nt peri
perio od
d
R&D
capacit
y
improv Raise
ement d
project 691362100.00 216719303.35 196374831.91 413094135.26 59.75% 87.55% funds
of +
FAW others
Jiefang
Qingda
o Base
FAW
Jiefang
Raise
Wuxi
d
R&D
423550000.00 12690733.03 121070052.75 7176830.96 126583954.82 31.58% 55.41% funds
Center
+
Constr
others
uction
Project
Project Other
936068800.0019204724.3919204724.3971.43%96.00%
of s
308Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
exiting
the city
and
enterin
g the
industr
ial
park
Second
-
generat
ion
E/E
archite
Other
cture 32000000.00 16401117.40 16401117.40 51.25% 51.00%
s
comme
rcial
vehicle
HIL
simulat
or
Heavy-
duty
vehicle
Other
transmi 20250000.00 9875983.28 1432729.20 11308712.48 55.85% 55.85%
s
ssion
life test
bed
Busine
ss
integra
tion Raise
and d
technol 227508500.00 13655092.51 166199720.89 171103259.18 8751554.22 75.21% 87.78% funds
ogy +
upgrad others
ing
project
of light
309Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
vehicle
frame
of
Qingda
o
Vehicle
Divisio
n of
Jiefang
Limite
d
Enviro
nmenta
l
protect
ion
technol
ogy
upgrad
e Raise
project d
of cab 79800000.00 177811.32 14957522.12 8074690.27 7060643.17 10.12% 62.78% funds
coating +
line of others
Qingda
o
Vehicle
Divisio
n of
Jiefang
Limite
d
Axle
base Raise
constru d
ction 989859950.93 115204550.24 95078910.70 204579228.66 5704232.28 75.96% 92.17% funds
project +
and others
heavy
310Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
replace
ment
axle
technol
ogy
upgrad
e
(phase
I)
FAW
Jiefang
South
Other
New 413800000.00 48893985.90 39280944.24 82931775.45 5243154.69 57.98% 92.00%
s
Energy
Base
project
Techni
cal
transfo
rmatio
n
Raise
project
d
of
898000000.00 232307221.17 403095254.16 630935482.18 4466993.15 71.09% 80.86% funds
integra
+
ted
others
heavy-
duty
AMT
gearbo
x
Total 4712199350.93 668729405.19 1053891083.37 1104801266.70 617819221.86
311Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(3) Impairment testing of projects under construction
□Applicable □Not applicable
17 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
18 Oil and gas assets
□Applicable □Not applicable
19. Right-of-use assets
(1) Right-of-use assets
Unit: Yuan
Houses and Machinery
Item Land Total
Buildings equipment
I. Original book value
1. Opening
200044437.5954778761.0617683197.66272506396.31
balance
2. Increase in the
3538091.513533351.98354361.417425804.90
current period
(1) Lease-in 3019057.93 3533351.98 345429.87 6897839.78
(2) Other increases 519033.58 8931.54 527965.12
3. Decrease in
20454136.66235270.1320689406.79
the current period
(1) Lease expiration 14880855.90 235270.13 15116126.03
(2) Other decreases 5573280.76 5573280.76
4. Ending
183128392.4458312113.0417802288.94259242794.42
balance
II. Accumulated
depreciation
1. Opening
99398182.5910955752.2111715605.51122069540.31
balance
312Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
2. Increase in the
36502331.9511668624.994017370.5452188327.48
current period
(1) Provision 36201260.82 11668624.99 4013152.85 51883038.66
(2) Other increases 301071.13 4217.69 305288.82
3. Decrease in
19140123.81235270.1319375393.94
the current period
(1) Disposal
(2) Lease expiration 14880855.90 235270.13 15116126.03
(3) Other decreases 4259267.91 4259267.91
4. Ending
116760390.7322624377.2015497705.92154882473.85
balance
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
66368001.7135687735.842304583.02104360320.57
value
2. Beginning
100646255.0043823008.855967592.15150436856.00
book value
(2) Impairment test of right-of-use assets
□Applicable □Not applicable
Other description: none
20. Intangible assets
(1) Details of intangible assets
Unit: Yuan
Patent Non-patented
Item Land use right Software Total
rights technology
I. Original book value
313Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
1. Opening
2613441659.36507713333.30565897350.183687052342.84
balance
2. Increase in the
502930.1610637280.6479704650.8190844861.61
current period
(1) Purchase 5898959.15 56213481.89 62112441.04
(2) Internal R&D
(3) Increase due to
business combination
(4) Other increases 502930.16 4738321.49 23491168.92 28732420.57
3. Decrease in
24710.6212557581.4212582292.04
the current period
(1) Disposal 7819259.93 7819259.93
(2) Other decreases 24710.62 4738321.49 4763032.11
4. Ending
2613919878.90518350613.94633044419.573765314912.41
balance
II. Accumulated
amortization
1. Opening
597486572.38338000836.46294647182.191230134591.03
balance
2. Increase in the
64678551.5637746505.52103787970.29206213027.37
current period
(1) Provision 64627729.20 37312176.79 103750159.44 205690065.43
(2) Other increases 50822.36 434328.73 37810.85 522961.94
3. Decrease in
12847.358247823.038260670.38
the current period
(1) Disposal 7813494.30 7813494.30
(2) Other decreases 12847.35 434328.73 447176.08
4. Ending
662152276.59375747341.98390187329.451428086948.02
balance
III. Impairment
provision
1. Opening
118218.19118218.19
balance
2. Increase in the
8545.228545.22
current period
(1) Provision
(2) Other increases 8545.22 8545.22
3. Decrease in
the current period
(1) Disposal
314Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
4. Ending
126763.41126763.41
balance
IV. Book value
1. Ending book
1951640838.90142603271.96242857090.122337101200.98
value
2. Beginning
2015836868.79169712496.84271250167.992456799533.62
book value
The intangible assets that did not result from internal research and development of the Company account for
0.00% of the balance of intangible assets at the end of the current period.
(2) Data resources recognized as intangible assets
□Applicable □Not applicable
(3) Impairment testing of intangible assets
□Applicable □Not applicable
21. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets not offset
Unit: Yuan
Ending balance Opening balance
Item Deductible temporary Deferred income Deductible temporary Deferred income
difference tax assets difference tax assets
Impairment
provision of 797768103.97 148751169.98 801447775.98 151139383.30
assets
Unrealized
profits of internal 153881436.39 38470359.10 173759629.21 43439907.30
transactions
Deductible losses 10589766314.64 1765089314.84 8023847062.56 1401699212.71
Accrued
3227055244.11769751687.242939042487.84699976188.17
expenses
Estimated
697556880.11115586665.72643639504.01105676319.80
liabilities
Contract
553633245.4185386658.52477559638.1773059220.04
liabilities
Deferred income 512685762.47 109012100.36 498058268.35 105908875.92
Employee
compensation 94430202.39 15390464.58 89862914.88 15035569.66
payable
Lease liabilities 58263018.99 13770069.13 70122314.73 15971569.46
Assets 653809.89 196142.97 609736.10 182920.83
315Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
depreciation
differences
Total 16685694018.37 3061404632.44 13717949331.83 2612089167.19
(2) Deferred income tax liabilities not offset
Unit: Yuan
Ending balance Opening balance
Item Taxable temporary Deferred income Taxable temporary Deferred income
difference tax liabilities difference tax liabilities
Depreciation of
fixed assets with an
amortization period 1833126166.73 337124836.34 1968635320.15 361356664.66
longer than the tax
preference period
Accrued interest
476710852.2276467601.95386198421.8858128494.37
income
Right-of-use assets 43191229.17 10183212.28 67966004.09 15404666.51
Total 2353028248.12 423775650.57 2422799746.12 434889825.54
(3) Deferred tax assets or liabilities presented in net amount after offset
Unit: Yuan
Ending Mutual Ending balance of Opening mutual Opening balance of
Offset Amount of deferred tax assets offset amount of deferred tax assets
Item
Deferred Tax Assets or liabilities after deferred tax assets or liabilities after
and Liabilities offset and liabilities offset
Deferred income
3061404632.442612089167.19
tax assets
Deferred income
423775650.57434889825.54
tax liabilities
(4) Details of unrecognized deferred tax assets
Unit: Yuan
Item Ending balance Opening balance
Deductible temporary difference 572093879.05 577137993.79
Deductible losses 225388600.72 433079936.50
Total 797482479.77 1010217930.29
(5) Deductible losses of unrecognized deferred tax assets will be due in the following years
Unit: Yuan
Year Ending amount Beginning balance Remarks
20261441940.001441940.00
20273524136.573524136.57
20286764901.92201247514.48
202915796963.9028041132.70
2032197860658.33198825212.75
316Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Total 225388600.72 433079936.50
Other description: none
317Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
22. Assets with restricted ownership or use right
Unit: Yuan
Ending Beginning
Item Restrictio Restrictio
Book balance Book Value Restriction Book balance Book Value Restriction
n type n type
Housing
Housing maintenance
maintenance fund
fund security deposit
Monetary security deposit for
50810175.89 50810175.89 50667927.65 50667927.65 for three types of
capital three types of
personnel and frozen
personnel and
funds
frozen funds
Due to the Due to the Tanzanian
Tanzanian government's central
government's railway
central railway reconstruction
reconstruction project
project approximately 2000
approximately 2000 square meters of land
square meters of belonging to the
Intangible
2059491.56 1150344.99 land belonging to 1920659.75 1099342.90 Company's Tanzanian
assets
the Company's subsidiary was
Tanzanian expropriated in
subsidiary was March 2017. To date
expropriated in no official
March 2017. To documentation or
date no official notification has been
documentation or received from the
notification has Tanzanian
318Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
been received from authorities.the Tanzanian
authorities.Total 52869667.45 51960520.88 52588587.40 51767270.55
Other description:
319Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
23. Notes payable
Unit: Yuan
Category Ending balance Opening balance
Bank acceptance bill 15370906363.16 11769864678.11
Total 15370906363.16 11769864678.11
The total amount of notes payable due but unpaid at the end of the current period is 0.00 yuan.
24. Accounts payable
(1) Presentation of accounts payable
Unit: Yuan
Item Ending balance Opening balance
Payment for goods 16650985030.88 16968149222.10
Project payment 71355989.71
Expenses and others 595368938.17 678099680.48
Total 17246353969.05 17717604892.29
(2) Significant accounts payable with aging over one year or overdue
Unit: Yuan
Reasons for not being repaid or
Item Ending balance
carried over
Beijing SinoHytec Co. Ltd. 38925592.27 Undue settlement period
Tangshan Qianchen New Energy
28659999.04 Undue settlement period
Development Co. Ltd.Total 67585591.31
Other description:
25. Other payables
Unit: Yuan
Item Ending balance Opening balance
Dividends payable 171500.02 171500.02
Other payables 4526037421.21 5312132275.89
Total 4526208921.23 5312303775.91
(1) Dividends payable
Unit: Yuan
Item Ending balance Opening balance
Ordinary stock dividends 171500.02 171500.02
Total 171500.02 171500.02
320Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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: Yuan
Item Ending balance Opening balance
Expenses payable 2665746970.54 3421638209.55
Margin deposit 235940482.07 310785014.96
Project funds payable 1188958861.78 1296325132.82
Repurchase obligations of
6246851.7386131497.27
restricted shares
Current accounts payable and
429144255.09197252421.29
others
Total 4526037421.21 5312132275.89
2) Other significant payables with aging over 1 year or overdue
Unit: Yuan
Reasons for not being
Item Ending balance
repaid or carried over
Fawer Auto Parts Co. Ltd. 9670000.00 Undue settlement period
Wuhan Liao Automation Co. Ltd. 8670040.00 Undue settlement period
China FAW Group Import & Export Co.
6579161.93 Undue settlement period
Ltd.Hangzhou Hikrobot Co. Ltd. 6374071.10 Project not completed
Bock (China) Testing Equipment Co. Ltd. 5567800.00 Project not completed
SIASUN Robot & Automation Co. Ltd. 5453060.00 Project not completed
The Ninth Institute of Project Planning &
Research of China Machinery Industry 5407655.40 Project not completed
(FIPPR)
Shanghai Machine Tool Works Ltd. 5068000.00 Project not completed
Total 52789788.43
26. Advance receipts
Presentation of advance receipts
Unit: Yuan
Item Ending balance Opening balance
Rental fee 674009.56 641221.46
Total 674009.56 641221.46
321Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
27. Contract liabilities
Unit: Yuan
Item Ending balance Opening balance
Payment for goods 2015193856.18 1980963703.80
Others 633128232.65 555703269.04
Contract liabilities included in
-217767924.33-215994896.62
other current liabilities
Total 2430554164.50 2320672076.22
Significant contractual liabilities with aging over 1 year
28. Employee compensation payable
(1) Presentation of employee compensation payable
Unit: Yuan
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
I. Short-term
299038713.674613134851.203957931961.91954241602.96
compensation
II. Post-employment
benefits - defined 17213124.02 661854373.57 678295945.93 771551.66
contribution plan
III. Dismissal welfare 38420889.80 47219824.80 46208973.16 39431741.44
IV. Other benefits due
50609999.9952054076.1053554076.0949110000.00
within one year
Total 405282727.48 5374263125.67 4735990957.09 1043554896.06
(2) Presentation of short-term compensation
Unit: Yuan
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
1. Wages bonuses
227776.653199338185.612573228938.66626337023.60
allowances and subsidies
2. Employee welfare
264221634.02264221634.02
expenses
3. Social insurance
3953212.23359300959.15362017631.131236540.25
premiums
Including: medical
3953212.23338242095.12340958767.101236540.25
insurance premiums
Work-related
injury insurance 21058864.03 21058864.03
premiums
322Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
4. Housing provident
488964042.43488964042.43
fund
5. Labor union funds and
employee education 293055697.93 110739260.52 79059202.82 324735755.63
funds
6. Other short-term
1802026.86190570769.47190440512.851932283.48
compensations
Total 299038713.67 4613134851.20 3957931961.91 954241602.96
(3) Presentation of defined contribution plan
Unit: Yuan
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
1. Basic endowment
14357638.13450111399.70464160323.27308714.56
insurance
2. Unemployment
2855485.8917391135.3719783784.16462837.10
insurance premiums
3. Payment of
194351838.50194351838.50
enterprise annuity
Total 17213124.02 661854373.57 678295945.93 771551.66
Other description:
29. Taxes payable
Unit: Yuan
Item Ending balance Opening balance
VAT 34237788.67 33868153.98
Corporate income tax 136470856.41 63956600.70
Individual income tax 7020253.06 45447179.02
Urban maintenance and
3308379.911886871.46
construction tax
Property tax 7843917.34 12070417.66
Education surcharges 4430820.03 3588461.26
Land use tax 3902829.10 4302440.45
Other taxes 18318058.50 16844015.07
Total 215532903.02 181964139.60
Other description:
30. Non-current liabilities due within one year
Unit: Yuan
Item Ending balance Opening balance
323Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Lease liabilities due within one
29941701.0231720199.37
year
Long-term debts due within one
99890000.00
year
Total 29941701.02 131610199.37
Other description:
Including: long-term loans due within one year Unit: Yuan
Ending balance of the previous
Item Ending balance
year
Credit loans 99890000.00
31. Other current liabilities
Unit: Yuan
Item Ending balance Opening balance
Taxes to be written off 217767924.33 215994896.62
Total 217767924.33 215994896.62
Other description:
32. Long-term debts
Classification of long-term debts
Unit: Yuan
Item Ending balance Opening balance
Credit loans 99890000.00
Long-term debts due within one
-99890000.00
year
Notes to the classification of long-term debts:
Other notes including interest rate range:
33. Lease liabilities
Unit: Yuan
Item Ending balance Opening balance
Lease payment 59490077.98 73609360.61
Unrecognized financing charges -2116776.32 -3915288.10
Lease liabilities due within one
-29941701.02-31720199.37
year
Total 27431600.64 37973873.14
Other description:
324Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
34. Long-term employee compensation payable
Table of long-term payroll payable
Unit: Yuan
Item Ending balance Opening balance
I. Post-employment welfare - net
682430000.00667280000.00
liabilities of defined benefit plan
II. Dismissal welfare 98901796.39 94708523.04
Long-term employee compensation
-88541741.44-89030889.79
payable due within one year
Total 692790054.95 672957633.25
35. Provisions
Unit: Yuan
Item Ending balance Opening balance Reason
Pending litigation 23974831.93 7321618.04
Product quality assurance 951513050.80 825489785.23
Others 17226995.29 20183157.29 Labor social security etc.Total 992714878.02 852994560.56
Other description including important assumptions and estimation descriptions related to important estimated
liabilities:
36. Deferred income
Unit: Yuan
Increase in the Decrease in the Reaso
Item Opening balance Ending balance
Current Period Current Period n
Governme
nt 2983678367.53 237397704.40 284713224.16 2936362847.77
subsidies
Total 2983678367.53 237397704.40 284713224.16 2936362847.77 --
Other description:
37. Share capital
Unit: Yuan
Increase/Decrease (+/-)
Share
Bon Trans
Opening balance Issue of New us ferre Ending balance
Others Subtotal
Shares shar d
es from
Accu
325Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
mulat
ion
Fund
Total
share 4636485668.00 298507462.00 -12621954.00 285885508.00 4922371176.00
s
Other description: The Company's new share issuance during this period was verified by Capital Verification Report
No.110C000357 ZTYZ (2024) issued by Grant Thornton Certified Public Accountants (Special General
Partnership). The decrease in share capital of 12621954.00 yuan during this period resulted from the repurchase
and cancellation of restricted shares as verified by Capital Verification Report XYZH/2024CCAA2B0173 issued
by ShineWing Accounting Firm (Special General Partnership). For details please refer to Section X Financial
Report III. Company Basic Information.
38. Capital reserves
Unit: Yuan
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
Capital premium (stock
9715540999.011699305934.04453011916.1710961835016.88
premium)
Other capital reserves 1001896552.71 271054.67 2522576.52 999645030.86
Total 10717437551.72 1699576988.71 455534492.69 11961480047.74
Other description including increase/decrease in the current period and reasons for change:
(1) Reasons for adjustment of capital reserves (equity premium) at the beginning of the year:
During this period FAW Jiefang acquired 100% equity in Jiefang Motors Tanzania Ltd. and 55.00% equity in FAW
(Africa) Investment Co. Ltd. through cash payment. According to accounting standards these transactions qualify
as business combinations under common control with a combination date of December 31 2024. When preparing
the opening balances for the 2024 consolidated financial statements the owner's equity of Jiefang Motors Tanzania
Ltd. and FAW (Africa) Investment Co. Ltd. as of end-2023 after deducting other comprehensive income and
retained earnings was adjusted to capital reserve (share premium) in the amount of 374018599.99 yuan.
(2) Reasons for the increase in capital reserves (share premium) in the current period:
The Company's capital reserve (share premium) increased by 1699305934.04 yuan due to the private placement
of A shares. For details refer to Section X Financial Report III. Company Basic Information.
(3) Reasons for the decrease of 453011916.17 yuan in capital reserve (share premium):
* The Company completed the business combination under the common control of Jiefang Limited on December
31 2024 reversing the initial adjustment amount of 374018599.99 yuan mentioned in (1) above.
* The Company completed the business combination under the common control of Jiefang Motors Tanzania Ltd.and FAW (Africa) Investment Co. Ltd. on December 31 2024. The difference between the consideration paid and
326Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
the book value of owner's equity attributable to the Company was -34642433.92 yuan which adjusted the capital
reserve (share premium) per accounting standards.* The other comprehensive income and retained earnings accumulated by Jiefang Motors Tanzania Ltd. and FAW
(Africa) Investment Co. Ltd. before the combination was adjusted to capital reserve (share premium) in the amount
of 46373058.56 yuan.* The capital reserve (share premium) decreased by 67262691.54 yuan due to the repurchase and cancellation of
restricted shares following the failure to achieve the performance assessment objectives set for the third release
period first granted and the second release period reserved by the Company's Phase I restricted share incentive plan
(4) Reason for increase in capital reserve (other capital reserve):
The Company recognized an increase of 271054.67 yuan based on its proportionate share of changes in investees'
equity other than those from net profit other comprehensive income and profit distribution.
(5) Reason for a decrease of 2522576.52 yuan in capital reserve (other capital reserve):
The failure to achieve the performance assessment objectives set for the third release period first granted and the
second release period reserved by the Company's Phase I restricted share incentive plan resulted in a decrease of
2522576.52 yuan.
39. Treasury shares
Unit: Yuan
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
Treasury shares 86131497.27 79884645.54 6246851.73
Total 86131497.27 79884645.54 6246851.73
Other descriptions including the increase/decrease and reasons for changes in the current period: The decrease of
79884645.54 yuan in treasury share capital in the current period was caused by the repurchase and cancellation
by the Company.
40 Other comprehensive incomes
Unit: Yuan
Amount Incurred in Current Period
Less: Less:
Current Current
After-
Profits Retained
tax
or Earnings Less:
Amount amount
Losses Transferred Inco
Item Opening balance incurred before After-tax amount attributTransfer from Other me Ending balance
income tax in attributable to the able to
red from Comprehen tax
the current parent company minorit
Other sive expe
period y
Compre Income nses
shareh
hensive Recorded
olders
Income in the
Recorde Previous
327Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
d in the Period
Previous
Period
I. Other
comprehen
sive
incomes
that cannot -8735366.35 27627126.17 -7298.93 27634425.10 18899058.75
be
reclassified
into profits
or losses
Including:
changes
arising
from the
re- -9210000.00 -49140000.00 -49140000.00 -58350000.00
measureme
nt of the
defined
benefit plan
Other
comprehen
sive
incomes
that cannot
be
474633.6517480598.17-7298.9317487897.1017962530.75
reclassified
into profit
or loss
under the
equity
method
Chang
es in fair
value of
investment 59286528.00 59286528.00 59286528.00
in other
equity
instruments
II. Other
comprehen
sive
incomes
-118464052.052652646.592652646.59-115811405.46
that will be
reclassified
into profits
or losses
Including:
other
comprehen
sive
375337.28-5729510.11-5729510.11-5354172.83
incomes
that can be
reclassified
into profits
328Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
or losses
under the
equity
method
Transl
ation
difference
in foreign -118839389.33 8382156.70 8382156.70 -110457232.63
currency
financial
statements
Total other
comprehen
-127199418.4030279772.76-7298.9330287071.69-96912346.71
sive
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:
41 Special reserves
Unit: Yuan
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
Work safety cost 319314527.85 28475434.87 70444079.57 277345883.15
Total 319314527.85 28475434.87 70444079.57 277345883.15
Other description including increase/decrease in the current period and reasons for change:
42. Surplus reserves
Unit: Yuan
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
Statutory surplus
2797987184.22109035301.36729.892907021755.69
reserve
Discretionary
297526491.71297526491.71
surplus reserves
Total 3095513675.93 109035301.36 729.89 3204548247.40
Description of the surplus reserve including increase/decrease and reasons for change in the current period:
(1) The statutory surplus reserve at the beginning of the current period increased by 5105359.06 yuan due to
retrospective adjustments from business combinations under common control;
(2) The statutory surplus reserve at the beginning of the previous period increased by 4546767.65 yuan due to
retrospective adjustments from business combinations under common control;
(3) In accordance with the Company Law and Articles of Association the Company appropriated 109035301.36
yuan to the statutory surplus reserve representing 10% of net profit. If the accumulated amount of statutory surplus
reserve is more than 50% of the registered capital of the Company it may not be withdrawn any more.
329Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(4) The surplus reserve decreased by 729.89 yuan due to the sale of 21.8393% equity in First Automobile Finance
Co. Ltd. previously accounted for using the equity method whereby the associated non-reclassifiable other
comprehensive income was transferred to retained earnings.
43. Undistributed profits
Unit: Yuan
Item Current period Previous period
Undistributed profits at the end of the previous
6191777512.325460939601.36
period before adjustment
Total amount of opening undistributed profit
54756122.343194653.84
adjusted ("+" for increase "-" for decrease)
Undistributed profits at the beginning of the
6246533634.665464134255.20
current period after adjustment
Add: net profit attributable to owners of parent
622427699.65806096685.30
company in the current period
Less: withdrawal of statutory surplus reserve 109035301.36 32717305.84
Common stock dividends payable 693579557.10
Others 11006569.04 -9020000.00
Undistributed profits at the end of the period 6055339906.81 6246533634.66
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 0.00 yuan.
2) The undistributed profit at the beginning of the period affected by changes in accounting policies is 0.00 yuan.
3) The correction of major accounting errors impacts the opening undistributed profit by 0.00 yuan.
4) The change in combination scope caused by the same control impacts the opening undistributed profit by
54756122.34 yuan.
5) Other adjustments affect the opening undistributed profit by 0.00 yuan in total.
44. Operating income and operating cost
Unit: Yuan
Amount Incurred in Current Period Amount Incurred in the Previous Period
Item
Income Cost Income Cost
Main
56781606864.4953523342363.2562387958459.5657905561816.09
business
Other
1799499394.041384734160.181936682311.081495805527.40
business
Total 58581106258.53 54908076523.43 64324640770.64 59401367343.49
Whether the audited lower net profit before and after the deduction of non-recurring profit or loss is negative
330Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
□Yes □No
Unit: Yuan
Item Current Year Specific Deductions Previous Year Specific Deductions
Sales revenue of
Sales revenue of
complete vehicles
complete vehicles
parts and
parts and
Amount of components
58581106258.53 components 64324640770.64
operating income materials
materials purchased
purchased semi-
semi-finished
finished products
products etc.etc.Lease income and Lease income and
revenue of revenue of
subsidiaries from the subsidiaries from
Total amount of beginning of the the beginning of the
operating income 356109842.75 period to the 431418385.07 period to the
deduction items combination date in combination date in
business business
combinations under combinations under
common control common control
Proportion of total
amount of operating
income deduction 0.61% 0.67%
items in operating
income
I. Business income
irrelevant to the
main business
1. Other business
income other than
normal operation.Income from the
leasing of fixed
assets intangible
assets packaging
materials sales of
materials exchange 25222637.35 Rental income 11310091.46 Rental income
of non-monetary
assets with
materials operation
of trusteeship
management
business etc. and
income that is
included in the
331Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
main business
income but belongs
to income other
than the normal
operation of listed
companies.
2. Revenue of Revenue of Revenue of
subsidiaries from subsidiaries from the subsidiaries from
the beginning of the beginning of the the beginning of the
period to the period to the period to the
330887205.40420108293.61
combination date in combination date in combination date in
business business business
combinations under combinations under combinations under
common control common control common control
Lease income and Lease income and
revenue of revenue of
subsidiaries from the subsidiaries from
Subtotal of business beginning of the the beginning of the
income irrelevant to 356109842.75 period to the 431418385.07 period to the
the main business combination date in combination date in
business business
combinations under combinations under
common control common control
II. Income without
commercial
substance
Subtotal of income
without commercial 0.00 N/A 0.00 N/A
substance
III. Other incomes
irrelevant to the
main business or 0.00 N/A 0.00 N/A
without commercial
substance
Excluding lease Excluding lease
income and revenue income and revenue
of subsidiaries from of subsidiaries from
Amount of the beginning of the the beginning of the
operating income 58224996415.78 period to the 63893222385.57 period to the
after deduction combination date in combination date in
business business
combinations under combinations under
common control common control
Other description
332Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Information related to the transaction price apportioned to the remaining performance obligation: At the end of the
reporting period the income corresponding to the performance obligations that have been signed but have not
been performed or fulfilled is 633128232.65 yuan of which 633128232.65 yuan is expected to be recognized in
2025.
45. Taxes and surcharges
Unit: Yuan
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Urban maintenance and
24096553.9156747629.14
construction tax
Education surcharges 15981804.33 36481730.95
Property tax 71614904.12 70287308.66
Land use tax 44935261.58 35743310.23
Vehicle and vessel use tax 129183.90 153731.13
Stamp duty 61581104.85 62913176.18
Environmental protection tax 667407.02 284890.41
Others 1401800.93 1270062.43
Total 220408020.64 263881839.13
Other description: none
46. Administrative expenses
Unit: Yuan
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Employee compensation 1036574708.68 1165957695.26
Repair cost of fixed assets 200223047.11 224298550.15
Depreciation cost 134953520.82 135496348.78
Amortization of intangible assets 92882626.65 89101204.84
Information system service fee 40195945.27 45902720.17
Labor outsourcing fee 38843662.53 43793358.88
Rental fee 31039387.49 30936892.44
Kinetic energy and workshop
28457378.3230230843.03
heating cost
Travel expense 25567986.89 26959825.27
Test and inspection fee 19455221.58 16551475.16
Publicity fee 18704673.47 14480896.95
Sewage charge 16276329.49 24116561.43
Consultation expenses 14923324.98 25168917.70
Environmental improvement fee 12388194.76 13254188.88
Security deposit for the disabled 8946720.97 7933560.44
333Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Property insurance 6633180.44 7057973.90
Authentication fee 6614996.60 5033526.02
Office expenses 6308679.04 7404843.25
Amortization of low-value
5847170.429810114.81
consumables
Others 35815721.59 32749534.91
Total 1780652477.10 1956239032.27
Other description: none
47. Sales expenses
Unit: Yuan
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Employee compensation 606050106.71 573571126.18
Travel expense 132924519.61 92948369.87
Packing cost 122479099.15 98493329.64
Storage fee 120442414.18 121382744.57
Sales service fee 58823277.30 24546263.54
Rental fee 56013886.40 48965173.65
Publicity expenses 54592817.18 55127804.87
Promotion fee 26754452.90 9754960.71
Depreciation cost 15341686.60 5773216.23
Labor outsourcing 14169830.66 14007484.23
Insurance premium 12634504.23 2110840.38
Office expenses 6868963.20 4587091.58
Conference expenses 6355536.81 5637425.69
Consultation expenses 5757883.34 8022625.48
Customer training fee 4854480.39 2255558.39
Exhibition fees 2716158.55 5510100.63
Business entertainment expenses 1427702.24 1210866.54
Others 25120276.47 29693729.92
Total 1273327595.92 1103598712.10
Other description: none
48. R&D expenses
Unit: Yuan
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Labor cost 1484942094.42 1636551834.14
Material cost 187891190.14 466540598.59
Test fee 279968389.34 316626655.94
Depreciation amortization expense 239634685.96 254417232.35
334Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Water electricity and gas charges 58957598.67 84675033.97
Technical development cost 47994217.53 58499726.43
Others 110097465.70 164946797.74
Total 2409485641.76 2982257879.16
Other description: none
49 Financial expenses
Unit: Yuan
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Interest expense 2594098.03 4228160.85
Interest income -619382020.15 -810531561.26
Exchange gain or loss -81571963.58 22472253.73
Cash discount -130500808.28 -173364601.86
Net actuarial interest 17984781.72 22534650.42
Fees and other charges 4904245.62 1594238.66
Total -805971666.64 -933066859.46
Other description: none
50. Other income
Unit: Yuan
Amount Incurred in the Previous
Sources of other income Amount Incurred in Current Period
Period
Additional deduction of VAT 509114356.63 64529919.18
Refund of handling fees to
2035928.982021691.30
individual income tax
Government subsidies 618258791.46 546840041.28
Total 1129409077.07 613391651.76
51. Investment income
Unit: Yuan
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Income from long-term equity
investments accounted for using the 310581812.67 347980074.28
equity method
Investment income from the disposal
469265324.69
of long-term equity investment
Others -150154510.85 -65651226.20
Total 629692626.51 282328848.08
335Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Other description: none
52. Credit impairment loss
Unit: Yuan
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Bad debt losses of notes receivable 207820.97 586187.61
Bad debt losses of accounts
-12108686.11-40506126.54
receivable
Bad debt losses of other
80572073.84-19414371.16
receivables
Bad debt losses of long-term
-14179402.72-36050114.74
receivables
Total 54491805.98 -95384424.83
Other description: none
53. Asset impairment loss
Unit: Yuan
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
I. Inventory falling price loss and
contract performance cost -352663464.80 -185910574.96
impairment loss
II. Loss from fixed assets
-6128378.48
impairment
III. Loss from contractual asset
-159644.74-228908.47
impairment
Total -352823109.54 -192267861.91
Other description: none
54. Income from assets disposal
Unit: Yuan
Amount Incurred in Amount Incurred in the Previous
Sources of income from assets disposal
Current Period Period
Gains from disposal of fixed assets ("-" for
-2556989.658226688.31
loss)
Gains from disposal of intangible assets ("-"
184441684.84
for losses)
Total -2556989.65 192668373.15
336Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
55. Non-operating income
Unit: Yuan
Amount included in
Amount Incurred in Amount Incurred in the
Item current non-recurring
Current Period Previous Period
profits and losses
Unpayable amounts confirmed 69577213.54 110679101.87 69577213.54
Income from compensation
22783642.5625287277.0122783642.56
liquidated damages and fines
Gains from damage and
retirement of non-current 841253.88 891307.00 841253.88
assets
Others 8290435.68 60980082.35 8290435.68
Total 101492545.66 197837768.23 101492545.66
Other description: none
56. Non-operating expenses
Unit: Yuan
Amount included in
Amount Incurred in Amount Incurred in the
Item current non-recurring
Current Period Previous Period
profits and losses
Donation 8988110.00 12050000.00 8988110.00
Losses from damage and
retirement of non-current 1873692.16 4685419.26 1873692.16
assets
Expenditure of liquidated
17552554.4710494522.7317552554.47
damages and penalties
Others 370560.94 295204.99 370560.94
Total 28784917.57 27525146.98 28784917.57
Other description: none
57. Income tax expenses
(1) Statement of income tax expenses
Unit: Yuan
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Current income tax expenses 126075087.26 138928165.68
Deferred income tax expense -459297534.77 -445815827.89
Total -333222447.51 -306887662.21
337Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(2) Adjustment process of accounting profits and income tax expenses
Unit: Yuan
Item Amount Incurred in Current Period
Total profits 326048704.78
Income tax expense calculated at statutory/applicable
81512176.20
tax rate
Effect of different tax rates applied to subsidiaries 163745525.94
Effect of adjustment to income tax of previous periods -80960321.67
Effect of non-taxable income -664042.49
Effect of non-deductible costs expenses and losses 14140005.68
Effect of using the deductible losses of deferred tax
-149167006.39
assets not recognized in the previous periods
Effects of deductible temporary differences or
deductible losses of deferred income tax assets 9443668.44
unrecognized in the current period
Profit or loss of joint ventures and associated
-74015068.69
enterprises calculated by equity method
Tax effect of R&D expenses plus deduction (to be
-296687406.45
listed with "-")
Others -569978.09
Income tax expenses -333222447.51
Other description:
58. Other comprehensive incomes
For details please refer to 40 in VII "Notes to Consolidated Financial Statements" of Section X - Financial
Report.
59. Items of cash flow statement
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: Yuan
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Government subsidies received 571544389.16 495135671.78
Collection and payment 391660955.82 591395448.15
Bank interest 126285131.12 704789225.69
Fines and indemnities received 13638624.11 6771123.26
Rental fee received 13306512.62 20310385.96
Recovery of reserve funds 1657105.19 3864873.02
338Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Refund of handling fees 952392.24 788831.31
Deposits received 753316.41 25639855.20
Other current accounts 26510089.62 64744297.38
Total 1146308516.29 1913439711.75
Description of other cash received related to operating activities:
Other cash paid related to operating activities
Unit: Yuan
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Out-of-pocket expenses 1137805570.04 1343669941.85
Current account 277620463.50 414443028.61
Donations 8988110.00 12050000.00
Total 1424414143.54 1770162970.46
Description of other cash payments related to operating activities:
(2) Cash related to investing activities
Cash received from significant investing activities
Unit: Yuan
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Disposal price of long-term equity
investments accounted for using 4357068905.33
the equity method
Total 4357068905.33
Description of other cash received related to investing activities:
Other cash paid related to investing activities
Unit: Yuan
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Fixed deposits 2400000000.00
Cash attached to the invested
17676304.33
business
Total 2400000000.00 17676304.33
Cash paid for important investing activities
Unit: Yuan
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Cash paid for the purchase of
180371837.52
equity in FAW (Africa) Investment
339Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Co. Ltd.Cash paid to purchase the equity of
40460300.41
Jiefang Motors Tanzania Ltd.Total 220832137.93
Description of other cash paid related to investing activities:
(3) Cash related to financing activities
Cash received relating to other financing activities
Unit: Yuan
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Dividends returned by the original
16400000.00
shareholders of the subsidiary
Total 16400000.00
Cash received from other financing activities:
Other cash paid related to financing activities
Unit: Yuan
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Principal and interest on lease
16667194.1628987570.03
liabilities
Total 16667194.16 28987570.03
Description of other cash payments related to financing activities:
Changes in liabilities arising from financing activities
□Applicable □Not applicable
60. Supplementary information to cash flow statement
(1) Supplementary information to cash flow statement
Unit: Yuan
Amount in the current Amount of the
Supplementary Information
period Previous Period
1. Reconciliation of net profit to cash flows from operating
activities
Net Profit 659271152.29 828299693.66
Add: impairment provision of assets 298331303.56 287652286.74
Depreciation of fixed assets depletion of oil and gas assets
1780705889.721651696628.24
and productive biological assets
Depreciation of right-of-use asset 51883038.66 67697072.30
Amortization of intangible assets 205690065.43 188260081.04
340Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Amortization of long-term deferred expenses 130771.72
Losses from disposal of fixed assets intangible assets and
2556989.65-192668373.15
other long-term assets (incomes to be listed with "-")
Loss from retirement of fixed assets (incomes to be listed
1873692.164685419.26
with "-")
Loss from changes in fair value (incomes to be listed with
"-")
Financial expenses (incomes to be listed with "-") -474436370.43 -383221499.22
Investment losses (incomes to be listed with "-") -779847137.36 -448976452.61
Decrease of deferred income tax assets (increase to be -417012690.00
-449315465.25
listed with "-")
Increases of deferred income tax liabilities (decrease to be -29271199.00
11114174.97
listed with "-")
Decrease in inventories (increase to be listed with "-") -413235112.72 -3189313118.26
Decrease in operating receivables (increase to be listed -1828364906.10
-10160069654.49
with "-")
Increase in operating items payable (decrease to be listed 7739492761.57
3504475291.22
with "-")
Others -89284164.46 -189413082.41
Net cash flows from operating activities -5850286307.05 4089673393.78
2. Major investment and financing activities not related to cash
deposit and withdrawal:
Conversion of debt into capital
Convertible corporate bonds within one year
Fixed assets acquired under financial lease
3. Net changes in cash and cash equivalents:
Ending balance of cash 19391201104.68 23108714054.86
Less: opening balance of cash 23108714054.86 21428741608.88
Add: ending balance of cash equivalents
Less: opening balance of cash equivalents
Net increase in cash and cash equivalents -3717512950.18 1679972445.98
(2) Net cash paid for the acquisition of subsidiaries in the current period
Unit: Yuan
Amount
Cash or cash equivalents paid in the current period for business
220832137.93
combination occurred in the current period
Including:
FAW (Africa) Investment Co. Ltd. 180371837.52
Jiefang Motors Tanzania Ltd. 40460300.41
Less: cash and cash equivalents held by subsidiaries on the
663903958.50
acquisition date
Including:
FAW (Africa) Investment Co. Ltd. 605709893.05
341Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Jiefang Motors Tanzania Ltd. 58194065.45
Including:
Net cash paid to acquire subsidiaries -443071820.57
Other description:
(3) Composition of cash and cash equivalents
Unit: Yuan
Item Ending balance Opening balance
I. Cash 19391201104.68 23108714054.86
Including: cash on hand 300158.23 38698.84
Bank deposits readily available
19390900946.4523108675356.02
for payment
II. Ending balance of cash and cash
19391201104.6823108714054.86
equivalents
61. Notes to items of the statement of changes in owners' equity
Description of "Other" items adjusting prior year-end balances and adjustment amounts:
(1) Due to retrospective adjustments from business combinations under common control capital reserves at the
beginning of the current period increased by 374018599.98 yuan other comprehensive income decreased by
118685308.30 yuan surplus reserves and retained earnings increased by 5105359.06 yuan and 54756122.34
yuan respectively and non-controlling interests increased by 245455442.13 yuan;
(2) Due to retrospective adjustments from business combinations under common control capital reserves at the
beginning of the previous period increased by 374018599.99 yuan other comprehensive income decreased by
114022743.06 yuan surplus reserves and retained earnings increased by 4546767.65 yuan and 3222985.59 yuan
respectively and non-controlling interests increased by 218280811.16 yuan.
62. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: Yuan
Foreign Currency
Ending Balance
Item Balance at the End of the Exchange rate
Converted into CNY
Period
Monetary capital 579723964.46
Including: USD 26404557.94 7.1884 189817608.35
EUR 500030.77 7.5257 3763081.57
HKD
USD 32290338.08 7.3008 235746559.59
Shilling 2792828760.38 0.0030 8385110.52
342Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Rand 364132319.04 0.3900 142011604.43
Accounts receivable 527513308.71
Including: USD 41557598.18 7.1884 298788820.27
EUR
HKD
USD 12884411.01 7.3008 94067010.37
Shilling 845789494.76 0.0030 2539374.59
Rand 338764367.91 0.3900 132118103.48
Long-term loans
Including: USD
EUR
HKD
Other receivables 29126617.29 5316727.06
Including: USD 660000.00 7.1884 4745400.00
USD 66575.85 7.3008 486059.57
Shilling 28400041.44 0.0030 85267.49
Accounts payable 1292069625.04 958899948.55
Including: USD 124897104.67 7.1884 897810669.16
Shilling 1018373175.72 0.0030 3057534.98
Rand 148799344.65 0.3900 58031744.41
Other payables 33915715.95 19501001.53
Including: USD 922845.42 7.1884 6633782.02
Rand 32992870.53 0.3900 12867219.51
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.Steyr Austria EUR 2 million EUR
Ltd.
220 thousand
Jiefang Motors Tanzania Ltd. Dar es Salaam Tanzania Tanzanian shilling
shillings
FAW Vehicle Manufacturing Johannesburg South 624.339531 million
South African Rand
South Africa Co. Ltd. Africa Rand
63. Lease
(1) The Company acting as the lessee
□Applicable □Not applicable
Variable lease payments not included in the measurement of lease liabilities
343Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
□Applicable □Not applicable
Lease expenses for simplified short-term leases or low-value asset leases
□Applicable □Not applicable
As the lessee Unit: Yuan
Amount Incurred in Current
Item
Period
Short-term lease expense 44499835.93
Low-value asset lease expense
Variable lease payments not included in the measurement of lease
liabilities
Total 44499835.93
Circumstances involving sale and leaseback transactions
(2) The Company acting as the lessor
Operating lease with the Company acting as the lessor
□Applicable □Not applicable
Unit: Yuan
Including: income related to
Item Rental income variable lease payments not
included in the lease receipts
Rental income 25222637.35
Total 25222637.35
Financing lease with the Company acting as the lessor
□Applicable □Not applicable
Yearly undiscounted lease receipts for the next five years
□Applicable □Not applicable
(3) Gains and losses recognized from sales of finance lease as a manufacturer or distributor
□Applicable □Not applicable
VIII. R&D Expenditures
Unit: Yuan
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Including: Expensed R&D
2409485641.762982257879.16
expenditure
Capitalized R&D
390738120.65122705199.95
expenditure
344Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
1. R&D projects eligible for capitalization
Unit: Yuan
Decrease in the
Increase in the Current Period
Current Period
Transfer
Recogniz red to
Item Opening balance Internal Ending balance
ed as current
development Others
intangible profits
expenditures
assets and
losses
A2205 5393345.15 18154652.03 23547997.18
A2207 9870532.29 31664765.51 41535297.80
A2208 12756268.51 17768467.74 30524736.25
A2209 26396041.18 5651329.61 32047370.79
A2305 12547492.73 26952715.67 39500208.40
A2306 16094984.19 30976947.51 47071931.70
A2307 2723108.10 59728261.87 62451369.97
A2308 12945847.92 34002797.55 46948645.47
L126 22108818.25 22108818.25
L2403 38408.37 38408.37
L2405 228815.19 228815.19
T2208 8944559.08 26172820.94 35117380.02
T2209 2201651.44 12356137.14 14557788.58
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 12152129.50
XC2411107 2967534.05 2967534.05
Z2407 12299822.33 12299822.33
Z2408 9466942.22 9466942.22
Z2409 9393773.35 9393773.35
Z2442 32424484.68 32424484.68
Z2443 411413.51 411413.51
Z2444 132123.81 132123.81
Total 109873830.59 390738120.65 500611951.24
Significant capitalized R&D projects
Expected
generation Specific basis for
Expected completion Time point of
Item R&D progress method of capitalization
time capitalization starting
economic starting
benefits
Engineering Being adopted by
Production
A2207 design and November 30 2026 January 1 2023 consideration and
and sales
verification decision-making
345Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
at the project
review meeting
Being adopted by
Engineering consideration and
Production
A2208 design and November 30 2026 January 1 2023 decision-making
and sales
verification at the project
review meeting
Being adopted by
consideration and
Production
A2209 Trial production June 30 2025 January 1 2023 decision-making
and sales
at the project
review meeting
Being adopted by
Engineering consideration and
Production
A2308 design and June 1 2026 March 1 2023 decision-making
and sales
verification at the project
review meeting
Being adopted by
consideration and
Small batch Production
A2306 January 1 2025 March 1 2023 decision-making
release and sales
at the project
review meeting
Being adopted by
Engineering consideration and
Production
A2307 design and February 1 2026 March 1 2023 decision-making
and sales
verification at the project
review meeting
Being adopted by
Engineering consideration and
Production
A2305 design and February 1 2026 March 1 2023 decision-making
and sales
verification at the project
review meeting
Being adopted by
Engineering consideration and
Production
T2208 design and April 30 2026 January 1 2023 decision-making
and sales
verification at the project
review meeting
Being adopted by
consideration and
Passed the PDCP Production
Z2442 December 1 2025 June 1 2024 decision-making
node and sales
at the project
review meeting
Being adopted by
Completed the
consideration and
loading of the Production
Z2407 December 31 2025 February 01 2024 decision-making
engineering and sales
at the project
prototype
review meeting
Production Being adopted by
T2209 Trial production January 30 2025 January 1 2023
and sales consideration and
346Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
decision-making
at the project
review meeting
A round of
Being adopted by
reliability
consideration and
validation/producti Production
L126 May 10 2026 April 7 2024 decision-making
on approval for and sales
at the project
launching/TR4A
review meeting
stage
A round of Being adopted by
reliability consideration and
Production
A2205 validation/producti June 1 2027 December 1 2023 decision-making
and sales
on approval for at the project
launching/TR4A review meeting
347Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
IX. Changes in Consolidation Scope
1. Business merger under common control
(1) Business combination under common control in the current period
Unit: Yuan
Net profit of
Proportio
the combined
n of Basis for Revenue of the
party from the Net profit of
equity business Determinatio combined party Revenue of the
beginning of the combined
acquired combinati n basis of the from the beginning combined party
Combined party Merger date the party during the
from on under combination of the combination during the
combination comparison
business common date period to the comparison period
period to the period
combinati control combination date
combination
on
date
Under
common
Jiefang Motors Tanzania December Acquisition
100.00% control of 523442328.24 52510826.99 530967163.42 19982474.73
Ltd. 31 2024 of control
FAW
Group
Under
common
FAW (Africa) Investment December Acquisition
55.00% control of 1746073985.00 80333656.68 1505245964.57 48405046.95
Co. Ltd. 31 2024 of control
FAW
Group
Other description:
348Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
* In December 2024 the Company acquired 100% equity in Jiefang Motors Tanzania Ltd. from China Faw Group Import & Export Corp a subsidiary of FAW
Group for 57800429.15 yuan in cash. Since both parties involved in the merger were under the control of FAW Group before and after the transaction and this control
was not temporary this transaction constitutes a business combination under common control with the merger date established as December 31 2024.* In December 2024 the Company acquired 55% equity in FAW (Africa) Investment Co. Ltd. from China Faw Group Import & Export Corp a subsidiary of FAW
Group for 327948795.48 yuan in cash. Since both parties involved in the merger were under the control of FAW Group before and after the transaction and this
control was not temporary this transaction constitutes a business combination under common control with the merger date established as December 31 2024.
349Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(2) Combination cost
Unit: Yuan
Combination cost Jiefang Motors Tanzania Ltd. FAW (Africa) Investment Co. Ltd.--Cash 57800429.15 327948795.48
- Book value of non-cash assets
- Book value of debts issued or
assumed
- Par value of equity securities
issued
- Contingent consideration
Contingent consideration and its changes:
Other description:
(3) Book value of the combined party's assets and liabilities on the combination date
Unit: Yuan
Jiefang Motors Tanzania Ltd. FAW (Africa) Investment Co. Ltd.End of the previous End of the previous
Merger date Merger date
period period
Assets:
Monetary capital 58194065.45 42602811.40 605709893.05 582266689.87
Accounts receivable 216488946.64 203701695.49 213477432.80 150020783.88
Inventories 694223632.15 257824639.82 969723442.27 603412376.55
Fixed assets 182854.41 126818.59 80367306.48 100436261.73
Intangible assets 1150344.99 1140110.29 8428418.82 17225642.68
Prepayments 2718981.87 307172.91 2933456.35 976828.17
Other receivables 92457.97 4757546.00 26416058.89 10647706.41
Current portion of non-
89852372.01164027995.75
current assets
Other current assets 12267535.02 3091040.17 16655624.57 9008457.64
Long-term receivables 652158.39
Right-of-use assets 195598.02 912063.10 7244798.19 10534906.20
Deferred income tax assets 11054066.78 6495150.60 80561338.54 56991609.49
Other non-current assets 2288899.80
Liabilities: 12267535.02 3091040.17 16655624.57 9008457.64
Loans
Accounts payable 839310900.82 463576037.45 1119118441.68 763124911.69
Contract liabilities 29648129.94 8549220.06 59333041.42 107430253.39
Employee compensation
1932283.481802026.861977378.531440815.43
payable
Taxes payable 29044829.30 6915808.67 104543611.96 45825957.61
Other payables 20123901.52 7246730.73
Current portion of non-
214654.05933667.703649812.54103505336.27
current liabilities
Other current liabilities 4516564.08 1538859.62
Lease liabilities 4219734.42 7479859.01
350Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Estimated liabilities 542916.89 3371864.41 170994193.87 113912392.12
Deferred income tax
58679.4112246981.1419818067.45
liabilities
Net assets 91299525.33 34271563.60 605815203.28 538053834.47
Less: Minority equity 7465870.16 6056757.49
Net assets acquired 91299525.33 329092133.22
Contingent liabilities assumed in business combinations:
Other description:
X. Equity in Other Entities
1. Equity in subsidiaries
(1) Composition of the enterprise group
Unit: Yuan
Princip Share proportion
Registe
al Nature of Way of
Name of Subsidiary Registered Capital red Indir
busines Business Direct Acquisition
address ect
s place
Business
Vehicle
FAW Jiefang Automotive Chang Chang merger under
10803012510.01 manufactur 100.00%
Co. Ltd. chun chun common
ing
control
Vehicle Business
FAW Jiefang (Qingdao) Qingda Qingda manufactur merger under
802000000.00100.00%
Automotive Co. Ltd. o o ing and common
sales control
Automotiv Business
FAW Jiefang Dalian e engine merger under
1400000000.00 Dalian Dalian 100.00%
Diesel Engine Co. Ltd. manufactur common
ing control
Manufactur
ing of Business
Wuxi Dahao Power Co. automotive merger under
38094059.61 Wuxi Wuxi 100.00%
Ltd. component common
s and control
accessories
Technology
Business
research
FAW Jiefang Austria merger under
15765000.00 Austria Austria and 100.00%
R&D Co. Ltd. common
developme
control
nt
Establishme
FAW Jiefang Automotive Chang Chang Vehicle
200000000.00 100.00% nt by
Sales Co. Ltd. chun chun sales
investment
FAW Jiefang Uni-D Technical
Establishme
Transportation services
90000000.00 Tianjin Tianjin 100.00% nt by
Technology (Tianjin) Co. and other
investment
Ltd. services
Business
Jiefang Motors Tanzania Tanzan Tanzan Vehicle merger under
1654100.00%
Ltd. ia ia sales common
control
351Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Business
FAW (Africa) Investment Chang Chang Vehicle merger under
680000000.0055.00%
Co. Ltd. chun chun sales common
control
Vehicle Business
FAW Vehicle
South South manufactur merger under
Manufacturing South 466105291.49 98.00%
Africa Africa ing and common
Africa Co. Ltd.sales control
FAW Jiefang Group Establishme
Chang Chang Vehicle
International Automobile 200000000.00 100.00% nt by
chun chun sales
Co. Ltd. investment
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) Significant non-wholly owned subsidiary
Unit: Yuan
Current period Dividends
Ending balance
Minority profit or loss declared to
of minority
Name of Subsidiary shareholder attributable to minority
shareholders'
percentage minority shareholders for
equity
shareholders the period
FAW (Africa) Investment Co. Ltd. 45.00% 35582894.22 9000000.00 269257199.91
FAW Vehicle Manufacturing South
2.00%1260558.427465870.16
Africa Co. Ltd.Description of differences between the shareholding percentage and voting rights percentage of minority
shareholders in subsidiaries:
Other description:
352Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(3) Key financial information of significant non-wholly owned subsidiaries
Unit: Yuan
Ending balance
Name of Subsidiary Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
FAW (Africa) Investment Co. Ltd. 1924768279.94 177254020.42 2102022300.36 1308746187.65 187460909.43 1496207097.08
FAW Vehicle Manufacturing South
1660758671.79168319044.761829077716.551262192399.99187460909.431449653309.42
Africa Co. Ltd.Unit: Yuan
Opening balance
Name of Subsidiary Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
FAW (Africa) Investment Co. Ltd. 1520360838.27 187477319.90 1707838158.17 1028574005.12 141210318.58 1169784323.70
FAW Vehicle Manufacturing South
1190163654.43178936593.431369100247.86918921155.37141210318.581060131473.95
Africa Co. Ltd.Unit: Yuan
Amount Incurred in Current Period Amount Incurred in the Previous Period
Name of Total Cash flow from Total
Operating Operating Cash flow from
Subsidiary Net Profit comprehensive operating Net Profit comprehensive
Income Income operating activities
income activities income
FAW (Africa)
Investment 1746073985.00 80333656.68 87761368.81 146056485.80 1505245964.57 48405046.95 43180800.99 -126826562.67
Co. Ltd.FAW Vehicle
Manufacturing
1743838969.3063027921.0970455633.22102946177.561325574185.8238248839.5033024593.54-167469638.42
South Africa
Co. Ltd.Other description:
353Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
2. Equities in joint ventures or associated enterprise
(1) Important joint ventures or associated enterprises
Share proportion Accounting
Treatment
Method for
Principal Register
Name of Joint Ventures or Associated Nature of Investment
business ed Indir
Enterprises Business Direct in Joint
place address ect
Ventures or
Associated
Enterprises
Sanguard Automobile Insurance Co. Changch Changc Financial Equity
17.50%
Ltd. un hun insurance method
Industrial
FAW Changchun Ansteel Jiefang Steel Changch Changc Equity
manufacturin 40.00%
Processing and Distribution Co. Ltd. un hun method
g
Industrial
FAW Changchun Baoyou Jiefang Steel Changch Changc Equity
manufacturin 21.81%
Processing and Distribution Co. Ltd. un hun method
g
Manufacturin
g of
Changchun Wabco Automotive Control Changch Changc automotive Equity
40.00%
System Co. Ltd. un hun components method
and
accessories
Research and
Equity
Suzhou Zhito Technology Co. Ltd. Suzhou Suzhou experimental 25.68%
method
development
Software and
FAW Jiefang Fujie (Tianjin) Technology information Equity
Tianjin Tianjin 10.00%
Industry Co. Ltd. technology method
services
Software and
information Equity
SmartLink Nanjing Nanjing 29.48%
technology method
services
Manufacturin
Foshan Diyiyuansu New Energy g and Equity
Foshan Foshan 45.00%
Technology Co. Ltd. technical method
services
Changchun Automotive Test Center Co. Changch Changc Technical Equity
14.63%
Ltd. un hun services method
Technical
Jiefang Times New Energy Technology Shijiazhu Shijiazh Equity
services and 50.00%
Co. Ltd. ang uang method
other services
Engineering
Diyi AESC New Energy Power Equity
Wuxi Wuxi and 49.00%
Technology (Wuxi) Co. Ltd. method
technology
354Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
research and
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 Sanguard Automobile
Insurance Co. Ltd. but it sends one director to the later according to the Articles of Association of the later so the
Company can exert significant influence on Sanguard Automobile Insurance Co. Ltd. The Company holds 10.00%
of the shares of FAW Jiefang Fujie (Tianjin) Technology Industry Co. Ltd. but it sends three directors to the later
according to the Articles of Association of the later so the Company can exert significant influence on FAW Jiefang
Fujie (Tianjin) Technology Industry Co. Ltd. The Company holds a 14.63% equity interest in Changchun
Automotive Test Center Co. Ltd. According to the Company's Articles of Association the Company appoints one
director to this entity enabling the Company to exercise significant influence over Changchun Automotive Test
Center Co. Ltd.
(2) Main financial information of important joint ventures
Unit: Yuan
Ending Balance/Amount Incurred Opening Balance/Amount Incurred
in Current Period in Previous Period
Jiefang Times New Energy Jiefang Times New Energy
Technology Co. Ltd. Technology Co. Ltd.Current assets 227009344.13 106516730.29
Including: Cash and cash
116492002.5823493644.57
equivalents
Non-current assets 280467665.95 180155847.21
Total assets 507477010.08 286672577.50
Current liabilities 188297198.16 225396.83
Non-current liabilities 235991858.58 203389215.33
Total liabilities 424289056.74 203614612.16
Minority equity
Equity attributable to shareholders
83187953.3483057965.34
of the parent company
Shares of net assets calculated as
41593976.6741528982.67
per the shareholding proportion
Adjustments -610747.85
--Goodwill
--Unrealized profits from internal
transactions
--Others
355Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Book value of equity investment to
40983228.8241528982.67
joint ventures
The fair value of equity investment
in joint ventures with a public offer
Operating Income 478132676.54 23610012.53
Financial expenses
Income tax expenses
Net Profit 129988.00 -6942034.66
Net profit from discontinued
operations
Other comprehensive incomes
Total comprehensive income 129988.00 -6942034.66
Dividends received from joint
ventures in the current year
Other description:
(3) Main financial information on important associated enterprises
356Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Unit: Yuan
Ending Balance/Amount Incurred in Current Period
FAW
Changchun
Changchun FAW Changchun Foshan
Sanguard Wabco FAW Jiefang Fujie
Ansteel Jiefang Baoyou Jiefang Diyiyuansu Changchun
Automobile Automotive (Tianjin)
Steel Steel Processing Suzhou Zhito Technology Co. Ltd. SmartLink New Energy Automotive Test
Insurance Co. Control Technology
Processing and and Distribution Technology Center Co. Ltd.Ltd. System Co. Industry Co. Ltd.Distribution Co. Ltd. Co. Ltd.Ltd.Co. Ltd.Current assets 1633645315.68 225754966.29 18709402.50 379817350.83 437704016.91 1652760773.79 254019254.09 68521099.90 1888429711.43
Non-current
728117619.3556379164.3621176837.0352684567.9865076092.06553963942.84205199282.03379084.992106666455.86
assets
Total assets 2361762935.03 282134130.65 39886239.53 432501918.81 502780108.97 2206724716.63 459218536.12 68900184.89 3995096167.29
Current
422757528.3862347851.843051437.70228746889.03299946243.291676736398.91336302462.025602229.38216419291.20
liabilities
Non-current
886993090.232590493.30910425147.64164077695.41189224616.83134984402.20
liabilities
Total liabilities 1309750618.61 62347851.84 3051437.70 231337382.33 1210371390.93 1840814094.32 525527078.85 5602229.38 351403693.40
Net Assets 1052012316.42 219786278.81 36834801.83 201164536.48 -707591281.96 365910622.31 -66308542.73 63297955.51 3643692473.89
Minority
7600.52445046483.22
equity
Equity
attributable to
shareholders 1052012316.42 219786278.81 36834801.83 201164536.48 -707591281.96 365903021.79 -66308542.73 63297955.51 3198645990.67
of the parent
company
Shares of net
assets
calculated as 184102155.37 87914511.52 14733920.73 43865938.82 -181709441.21 36590302.18 -19547758.40 28484079.98 467961908.43
per the
shareholding
357Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
proportion
Adjustments 506601.26 267105032.74
--Goodwill
--Unrealized
profits from
internal
transactions
--Others
Book value of
equity
investment in 184102155.37 87914511.50 14733920.76 43865938.84 37096903.44 28484079.98 735066941.17
associated
enterprises
Fair value of
equity
investment in
associated
enterprises
with a public
offer
Operating
669419255.51546313343.751496989.121113344442.48207656277.181308411205.27460578255.5150306825.24731748783.24
Income
Net Profit 3092280.51 3442181.20 -1451672.89 31653595.49 -199112260.45 12062800.59 -76034225.12 -8528017.08 231920911.69
Net profit
from
discontinued
operations
Other
comprehensive 67741434.81 -340000.00
incomes
358Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Total
comprehensive 70323180.91 3442181.20 -1451672.89 31653595.49 -199112260.45 12062800.59 -76034225.12 -8528017.08 231580911.69
income
Dividends
received from
associated
1324000.006500530.62747434.87
enterprises in
the current
year
Unit: Yuan
Opening Balance/Amount Incurred in Previous Period
FAW Changchun Changchun Foshan
FAW Changchun FAW Jiefang Fujie Sanguard
Ansteel Jiefang Wabco Suzhou Zhito Diyiyuansu New Changchun
Baoyou Jiefang Steel (Tianjin) Automobile
Steel Processing Automotive Technology Co. SmartLink Energy Automotive Test
Processing and Technology Insurance Co.and Distribution Control System Ltd. Technology Co. Center Co. Ltd.Distribution Co. Ltd. Industry Co. Ltd. Ltd.Co. Ltd. Co. Ltd. Ltd.Current assets 269973515.28 34757850.89 357052308.05 435005995.30 2019060250.13 175926690.46 74360794.55 1905889144.98 1702254232.36
Non-current
61635140.4024179782.5149442981.9986241055.85845687497.81183160633.971980391.851778261365.48876220650.46
assets
Total assets 331608655.68 58937633.40 406495290.04 521247051.15 2864747747.94 359087324.43 76341186.40 3684150510.46 2578474882.82
Current
111751776.0518443724.53205065072.99127443900.052188704666.79286751551.152530641.78148517574.12409136482.45
liabilities
Non-current
2108533.06905831430.48301718046.2690779279.56123521374.141187649264.86
liabilities
Total liabilities 111751776.05 18443724.53 207173606.05 1033275330.53 2490422713.05 377530830.71 2530641.78 272038948.26 1596785747.31
Net Assets 219856879.63 40493908.87 199321683.99 -512028279.38 374325034.89 -18443506.28 73810544.62 3412111562.20 981689135.51
Minority
-1056387.18448669357.62
equity
Equity
attributable to
219856879.6340493908.87199321683.99-512028279.38374325034.89-17387119.1073810544.622963442204.58981689135.51
shareholders
of the parent
359Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
company
Shares of net
assets
calculated as
87942751.8316197563.5843464086.43-131488862.1437432503.49-6085491.6833214745.08433551594.53171795598.71
per the
shareholding
proportion
Adjustments -449647.25 267105032.74
--Goodwill
--Unrealized
profits from
internal
transactions
--Others
Book value of
equity
investment in 87942751.83 16197563.58 43464086.43 36982856.24 33214745.08 700656627.27 171795598.71
associated
enterprises
Fair value of
equity
investment in
associated
enterprises
with a public
offer
Operating
628235851.6658341332.831648271059.88146454823.253084484599.82419681174.18669737782.82847730093.47
Income
Net Profit 7349839.74 -2726506.37 29810742.99 -237673409.93 23691687.78 1271971.81 -6189455.38 220843105.36 -145922318.21
Net profit
from
discontinued
operations
360Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Other
comprehensive -90000.00 6641842.09
incomes
Total
comprehensive 7349839.74 -2726506.37 29810742.99 -237673409.93 23691687.78 1271971.81 -6189455.38 220753105.36 -139280476.12
income
Dividends
received from
associated
1640000.006892912.774835877.87
enterprises in
the current
year
Other description:
361Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(4) Excess losses incurred by joint ventures or associated enterprises
Unit: Yuan
Unrecognized Losses in Accumulated
Unrecognized Losses
Name of Joint Ventures or the Current Period (or Unrecognized Losses at
Accumulated in Prior
Associated Enterprises Net Profit Shared in the the End of the Current
Periods
Current Period) Period
Suzhou Zhito Technology Co.
131488862.1450220579.07181709441.21
Ltd.SmartLink 6085491.68 13462266.72 19547758.40
Other description:
XI. Government subsidies
1. Government subsidies 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 included in the current profit or loss
□Applicable □Not applicable
Unit: Yuan
Amount Incurred in the Previous
Account item Amount Incurred in Current Period
Period
Government subsidies 618258791.46 611369960.46
Other description:
XII. Risks 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
362Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
risk exposures to ensure that the above risks are controlled within a limited range.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 the 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
as well as 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 takes 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 assessments 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 from the Company's five largest customers represent 83.50% of the Company's total
accounts receivable (2023: 62.80%); The other receivables from the five companies with the largest outstanding
amounts represent 69.41% of the Company's total other receivables (2023: 74.79%).* 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
363Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
flows. The management of the Company monitors the use of bank loans and ensures compliance with the loan
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 December 31 2024 the Company's unused bank credit facilities amounted to 5.643 billion yuan
(December 31 2023: 17.203 billion yuan).
* 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 the 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 of interest rate risk:
The sensitivity analysis of 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 December 31 2024.Exchange rate risk
Exchange rate risk refers to the risk of fluctuation in fair value or future cash flow of financial instruments due to
changes in foreign exchange rates. 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 Company's assets and
liabilities were all in CNY as of December 31 2024 except a small amount of monetary capital 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 a capital management policy to ensure the continuous operation of the Company thus
providing returns to shareholders benefiting other stakeholders and maintaining the best capital structure to reduce
capital costs.
364Full Text of 2024 Report 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 at December 31 2024 the asset-liability ratio of the Company is 63.44% (63.21% at the end of the
previous year).
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
XIII. Disclosure of Fair Value
1. Fair value of assets and liabilities measured at fair value at the end of the period
Unit: Yuan
End-of-period fair value
Item Level I fair value Level II fair value Level III fair value
Total
measurement measurement measurement
I. Ongoing fair
--------
value measurement
(I) Investment in
other equity 540066528.00 540066528.00
instruments
Total assets
measured at fair
540066528.00540066528.00
value on an ongoing
basis
II. Non-ongoing fair
--------
value measurement
365Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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).
3. Valuation techniques and qualitative and quantitative information about key parameters of items subject
to continuous and non-continuous level II fair value measurement
Observable input values other than market quotations for assets or liabilities in level I are used directly (i.e. price)
or indirectly (i.e. derived from price).
4. Valuation techniques and qualitative and quantitative information about key parameters of items
subject to continuous and non-continuous level III fair value measurement
Any input value (non-observable input value) not based on observable market data is used for assets or liabilities.XIV. Related Parties and Related Party Transactions
1. Parent company of the Company
Shareholding Proportion of
Proportion of Voting Rights of
Name of Parent Registered Nature of Registered
the Parent the Parent
Company address Business Capital
Company in the Company in the
Company Company
Production and
sales of
FAW Changchun 78 billion yuan 62.18% 62.18%
automobiles and
parts
Description of the parent company of the Company: The ultimate controlling party of the Company is FAW
Group.Other description: The registered capital of the parent company did not change during the reporting period.
2. Subsidiaries of the Company
For details of subsidiaries of the Company please refer to Article 1 in X "Equity in Other Entities" of Section X
"Financial Report".
3. Information on joint ventures and associated enterprises of the Company
For details of important joint ventures or associated enterprises of the Company please refer to Article 2 in X
"Equity in Other Entities" of Section X "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:
366Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
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
Changchun Ansteel Jiefang Metal Material Processing
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
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
FAW Bestune Auto Co. Ltd. The same ultimate controlling party
FAW Harbin Light-Automobile Co. Ltd. The same ultimate controlling party
Sanguard Automobile Insurance 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 (Foshan) Co. Ltd. The same ultimate controlling party
FAW Logistics (Qingdao) Co. Ltd. The same ultimate controlling party
FAW (Dalian) International Logistics Co. Ltd. The same ultimate controlling party
FAW Foundry Co. Ltd. The same ultimate controlling party
FAW Forging (Jilin) Co. Ltd. The same ultimate controlling party
FAW Mold Manufacturing Co. Ltd. The same ultimate controlling party
367Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
China FAW Group Import & Export Co. Ltd. The same ultimate controlling party
Qiming Information Technology Co. Ltd. The same ultimate controlling party
Dalian Qiming Haitong Information Technology Co.The same ultimate controlling party
Ltd.Jilin Qiming Anxin Information Security Technology
The same ultimate controlling party
Co. Ltd.FAW Asset Management Co. Ltd. The same ultimate controlling party
Changchun FAW International Tendering Co. Ltd. The same ultimate controlling party
FAW Zhixing Technology (Nanjing) Co. Ltd. The same ultimate controlling party
Changchun Faw Service Trade Co. Ltd. The same ultimate controlling party
FAW Changchun Automobile Trading Service Co.The same ultimate controlling party
Ltd.Wuxi Sawane Spring Co. Ltd. The same ultimate controlling party
FAW New Energy Vehicle Sales (Shenzhen) Co. Ltd. The same ultimate controlling party
Changchun Automotive Test Center Co. Ltd. The same ultimate controlling party
Hainan Tropical Automobile Test Co. Ltd. The same ultimate controlling party
FAW-Volkswagen Automotive Co. Ltd. The same ultimate controlling party
Changchun FAW Automobile Culture Communication
The same ultimate controlling party
Co. Ltd.Changchun FAW International Logistics Co. Ltd. The same ultimate controlling party
FAW Southern (Shenzhen) Technology Development
The same ultimate controlling party
Co. Ltd.FAW Equity Investment (Tianjin) Co. Ltd. The same ultimate controlling party
First Automobile Finance Co. Ltd. The same ultimate controlling party
FAW-HONGTA Yunnan Automobile Co. Ltd. The same ultimate controlling party
Cinda FAW Commercial Factoring Co. Ltd. Other related parties
The Ninth Institute of Project Planning & Research of
Other related parties
China Machinery Industry (FIPPR)
Changchun FAW United Casting Company Other related parties
Changchun Yidong Clutch Co. Ltd. Other related parties
Fawer Auto Parts Co. Ltd. Other related parties
China Unicom Intelligent Network Technology Co.Other related parties
Ltd.Changchun FAWSN Group Co. Ltd. Other related parties
FAW Changchun Communication Technology Co.Other related parties
Ltd.United Fuel Cell System R&D (Beijing) Co. Ltd. Other related parties
Changchun FAWAY Automobile Components Co.Other related parties
Ltd.FAW Jilin Automobile Co. Ltd. Other related parties
Changchun Automotive Economic and Technological
Development Zone Environmental Sanitation and Other related parties
Cleaning Co. Ltd.
368Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
FAW Jingye Engine Co. Ltd. Other related parties
Wuxi CRRC New Energy Automobile Co. Ltd. Other related parties
FAW Changchun Comprehensive Utilization Co. Ltd. Other related parties
FAW Changchun Industrial Shuixing Rubber and
Other related parties
Plastic Products Co. Ltd.FAW Changchun Yanfeng Visteon Electronics Co.Other related parties
Ltd.FAW Changchun Industrial Sodis Management
Other related parties
Service Co. Ltd.Shandong Pengxiang Automobile Co. Ltd. Other related parties
FAW Changchun Tianqi Process Equipment
Other related parties
Engineering Co. Ltd.Hongqi Intelligent Mobility Technology (Beijing) Co.Other related parties
Ltd.Grammer Vehicle Parts (Harbin) Co. Ltd. Other related parties
Grammer Vehicle Parts (Qingdao) Co. Ltd. Other related parties
Jilin Checheng Garden Hotel Co. Ltd. Other related parties
Changchun Sodexo Management Service 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: Yuan
Is the
Content of Transacti
Related Amount Incurred in Approved on Amount Incurred in
Related Parties
Transactio Current Period Transaction Amount Amount the Previous Period
n Exceede
d
Goods
purchase
China FAW Group
and
Import & Export Co. 48192920.53 375350000.00 No 25285761.48
reception
Ltd.of labor
services
Goods
purchase
Fawer Auto Parts Co. and
1393565622.28 1972380000.00 No 1659607907.68
Ltd. reception
of labor
services
FAW Foundry Co. Goods
657358784.92 931140000.00 No 719806260.27
Ltd. purchase
369Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
and
reception
of labor
services
Goods
purchase
Changchun FAWSN and
511097465.83 604920000.00 No 477587989.87
Group Co. Ltd. reception
of labor
services
Goods
FAW Changchun purchase
Baoyou Jiefang Steel and
369869782.69 502720000.00 No 369253850.87
Processing and reception
Distribution Co. Ltd. of labor
services
Goods
purchase
FAW Forging (Jilin) and
365403123.07 557310000.00 No 457919812.83
Co. Ltd. reception
of labor
services
Goods
Changchun Ansteel purchase
Jiefang Metal and
358054094.91 516630000.00 No 377742520.02
Material Processing & reception
Distribution Co. Ltd. of labor
services
Goods
purchase
Changchun FAWAY
and
Automobile 339991796.88 585000000.00 No 468240684.46
reception
Components Co. Ltd.of labor
services
Goods
purchase
Shandong Pengxiang and
304925953.37 723730000.00 No 639215809.17
Automobile Co. Ltd. reception
of labor
services
Goods
purchase
and
reception
China FAW Co. Ltd. 252730203.20 460000000.00 No 334754422.65
of
services
fuel and
power
FAW Logistics Goods 241776955.70 426220000.00 No 312669087.26
370Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(Qingdao) Co. Ltd. purchase
and
reception
of labor
services
Goods
purchase
and
SmartLink 220434387.96 302560000.00 No 201735640.71
reception
of labor
services
Goods
purchase
FAW Logistics Co. and
219212318.30 495900000.00 No 382993131.18
Ltd. reception
of labor
services
Goods
purchase
Grammer Vehicle
and
Parts (Harbin) Co. 197447028.27 284590000.00 No 229686526.22
reception
Ltd.of labor
services
Goods
The Ninth Institute of
purchase
Project Planning &
and
Research of China 186538068.22 235580000.00 No 204289200.11
reception
Machinery Industry
of labor
(FIPPR)
services
Goods
purchase
Changchun Yidong and
183035565.44 250180000.00 No 200320876.60
Clutch Co. Ltd. reception
of labor
services
Goods
purchase
Changchun
and
Automotive Test 82265371.58 119170000.00 No 120524077.09
reception
Center Co. Ltd.of labor
services
Goods
purchase
Qiming Information and
75209697.68 194010000.00 No 157514667.25
Technology Co. Ltd. reception
of labor
services
FAW Harbin Light- Goods
66731302.84 138020000.00 No 109010564.50
Automobile Co. Ltd. purchase
371Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
and
reception
of labor
services
Goods
purchase
FAW Mold
and
Manufacturing Co. 44109513.62 60000000.00 No 14470053.09
reception
Ltd.of labor
services
Goods
FAW Logistics
purchase
(Changchun Lushun)
and
Storage and 40700350.99 50000000.00 No 75055638.23
reception
Transportation Co.of labor
Ltd.services
Goods
purchase
Changchun Wabco
and
Automotive Control 40435106.61 50000000.00 No 50209527.83
reception
System Co. Ltd.of labor
services
Goods
purchase
FAW Jilin Automobile and
29630896.32 251930000.00 No 17773899.93
Co. Ltd. reception
of labor
services
Goods
purchase
FAW (Dalian)
and
International Logistics 25760070.64 50000000.00 No 22123885.88
reception
Co. Ltd.of labor
services
Goods
purchase
Sanguard Automobile and
23231707.86 30000000.00 No 23753449.15
Insurance Co. Ltd. reception
of labor
services
Goods
purchase
Suzhou Zhito and
17926888.44 30000000.00 No 1769496.50
Technology Co. Ltd. reception
of labor
services
Goods
China FAW Group
purchase 11667626.56 30000000.00 No 13627907.80
Co. Ltd.and
372Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
reception
of labor
services
Goods
purchase
FAW Changchun
and
Automobile Trading 6998968.90 8000000.00 No 9359470.16
reception
Service Co. Ltd.of labor
services
Goods
purchase
Wuxi Sawane Spring and
5739515.66 8000000.00 No 5795996.05
Co. Ltd. reception
of labor
services
Goods
purchase
FAW Changchun
and
Communication 5666483.91 8000000.00 No 36244311.07
reception
Technology Co. Ltd.of labor
services
Goods
purchase
FAW Changchun
and
Comprehensive 5249146.17 8000000.00 No 6269917.66
reception
Utilization Co. Ltd.of labor
services
Goods
purchase
Hainan Tropical
and
Automobile Test Co. 4609624.31 8000000.00 No 4471020.41
reception
Ltd.of labor
services
Goods
purchase
Changchun FAW
and
United Casting 4309336.49 8000000.00 No 1561241.13
reception
Company
of labor
services
Goods
purchase
Hongqi Intelligent
and
Mobility Technology 4233166.24 6000000.00 No 1901350.79
reception
(Beijing) Co. Ltd.
of labor
services
Goods
FAW-HONGTA
purchase
Yunnan Automobile 3385823.36 6000000.00 No 3333481.77
and
Co. Ltd.reception
373Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
of labor
services
Goods
purchase
Wuxi CRRC New
and
Energy Automobile 2216489.15 6000000.00 No 2951329.20
reception
Co. Ltd.of labor
services
Goods
purchase
Changchun FAW
and
International Logistics 2042163.88 6000000.00 No
reception
Co. Ltd.of labor
services
Goods
purchase
Changchun Sodexo
and
Management Service 1580391.34 3000000.00 No
reception
Co. Ltd.of labor
services
Goods
purchase
FAW Asset and
1445995.65 3000000.00 No 1350856.25
Management Co. Ltd. reception
of labor
services
Changchun
Goods
Automotive Economic
purchase
and Technological
and
Development Zone 1232310.68 3000000.00 No 2480191.44
reception
Environmental
of labor
Sanitation and
services
Cleaning Co. Ltd.Goods
purchase
Dalian Qiming
and
Haitong Information 434640.55 1900000.00 No 679245.27
reception
Technology Co. Ltd.of labor
services
Goods
purchase
FAW Zhixing
and
Technology (Nanjing) 393773.74 1000000.00 No 157699.08
reception
Co. Ltd.of labor
services
Goods
FAW Changchun
purchase
Yanfeng Visteon 217579.40 1000000.00 No 530977.43
and
Electronics Co. Ltd.reception
374Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
of labor
services
Goods
FAW Southern
purchase
(Shenzhen)
and
Technology 149355.26 1000000.00 No
reception
Development Co.of labor
Ltd.services
Goods
purchase
FAW Logistics and
7650.00 1000000.00 No 4050.00
(Foshan) Co. Ltd. reception
of labor
services
Goods
Changchun FAW purchase
Automobile Culture and
1000000.00 No 82355.84
Communication Co. reception
Ltd. of labor
services
Goods
purchase
Changchun FAW
and
International 4339.64 1000000.00 No 352288.66
reception
Tendering Co. Ltd.of labor
services
Goods
purchase
Jilin Checheng
and
Garden Hotel Co. 2897.94 1000000.00 No
reception
Ltd.of labor
services
Goods
purchase
Grammer Vehicle
and
Parts (Qingdao) Co.reception
Ltd.of labor
services
Goods
FAW Changchun purchase
Industrial Sodis and
2981286.13
Management Service reception
Co. Ltd. of labor
services
Goods
Changchun Faw purchase
Service Trade Co. and 1646126.01
Ltd. reception
of labor
375Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
services
Goods
FAW Changchun purchase
Tianqi Process and
1575945.99
Equipment reception
Engineering Co. Ltd. of labor
services
Goods
purchase
Jilin Qiming Anxin
and
Information Security 208000.00
reception
Technology Co. Ltd.of labor
services
Goods
purchase
China Unicom
and
Intelligent Network 65672.64
reception
Technology Co. Ltd.of labor
services
Statement of Goods Sales/Rendering of Services
Unit: Yuan
Content of
Amount Incurred in Amount Incurred in the
Related Parties Related
Current Period Previous Period
Transaction
Sales of
China FAW Group Import & Export Co. Ltd. 12208203691.11 11568030597.11
goods
FAW Jiefang Fujie (Tianjin) Technology Sales of
1070399702.992446872744.97
Industry Co. Ltd. goods
Jiefang Times New Energy Technology Co. Sales of
214999831.32298543205.58
Ltd. goods
FAW Changchun Comprehensive Utilization Sales of
181631688.30205149077.38
Co. Ltd. goods
Sales of
Changchun Faw Service Trade Co. Ltd. 170491057.39 17192553.61
goods
Sales of
China FAW Group Co. Ltd. 62262063.78
goods
Sales of
Suzhou Zhito Technology Co. Ltd. 32391918.11 8676773.64
goods
Sales of
FAW Harbin Light-Automobile Co. Ltd. 24481436.37 230480872.70
goods
Sales of
FAW Asset Management Co. Ltd. 20944655.05 8792475.43
goods
Sales of
SmartLink 8196340.81 107773406.53
goods
Sales of
China FAW Co. Ltd. 4753955.93 17191730.77
goods
Sales of
FAW Logistics (Qingdao) Co. Ltd. 4764279.24 141854.72
goods
376Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Sales of
FAW Foundry Co. Ltd. 4233103.98 11614.68
goods
Sales of
Grammer Vehicle Parts (Harbin) Co. Ltd. 2552270.00 106470.00
goods
Sales of
Changchun Yidong Clutch Co. Ltd. 1709226.48 2620014.69
goods
Sales of
Fawer Auto Parts Co. Ltd. 1579535.98 719960.37
goods
Sales of
FAW Logistics Co. Ltd. 928362.64 218688.15
goods
United Fuel Cell System R&D (Beijing) Co. Sales of
563852.74883287.65
Ltd. goods
Sales of
Shandong Pengxiang Automobile Co. Ltd. 499679.96 1310470.28
goods
Sales of
Cinda FAW Commercial Factoring Co. Ltd. 283354.40 189390.03
goods
Sales of
Qiming Information Technology Co. Ltd. 181862.73 1730374.32
goods
Sales of
FAW-HONGTA Yunnan Automobile Co. Ltd. 122822.65
goods
Sales of
Changchun FAWSN Group Co. Ltd. 78102.10 6086.49
goods
Sales of
FAW Equity Investment (Tianjin) Co. Ltd. 75670.00
goods
Foshan Diyiyuansu New Energy Technology Sales of
70642.9580254.07
Co. Ltd. goods
FAW Changchun Communication Technology Sales of
40366.9793577.97
Co. Ltd. goods
FAW Changchun Yanfeng Visteon Electronics Sales of
5136.787562.98
Co. Ltd. goods
Sales of
Changchun Automotive Test Center Co. Ltd. 2174.19 2443809.58
goods
Changchun FAWAY Automobile Components Sales of
7673.40
Co. Ltd. goods
FAW Changchun Baoyou Jiefang Steel Sales of
1056155.96
Processing and Distribution Co. Ltd. goods
FAW Changchun Automobile Trading Service Sales of
15048966.05
Co. Ltd. goods
FAW Logistics (Changchun Lushun) Storage Sales of
63448.12
and Transportation Co. Ltd. goods
Sales of
FAW Forging (Jilin) Co. Ltd. 57933.33
goods
Sales of
Wuxi Sawane Spring Co. Ltd. 14150.94
goods
Sales of
FAW Bestune Auto Co. Ltd. 10211.32
goods
Sales of
FAW Jilin Automobile Co. Ltd. 1938.32
goods
377Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Description of related transactions of purchasing or selling goods and providing or receiving labor services:
(2) Related lease
The Company as the lessor:
Unit: Yuan
Lease Income Lease Income
Name of Lessee Type of Leased Assets Recognized in the Recognized in the
Current Period Previous Period
Changchun FAWAY
Houses and buildings
Automobile Components 7779052.50
equipment
Co. Ltd.Changchun Automotive Houses buildings and
6000000.001288392.96
Test Center Co. Ltd. land
FAW Changchun Baoyou
Jiefang Steel Processing Houses and Buildings 1059049.54 1056155.96
and Distribution Co. Ltd.China FAW Co. Ltd. Houses and Buildings 774875.72 1017306.92
Shandong Pengxiang
Houses and Buildings 772040.36 767705.50
Automobile Co. Ltd.Fawer Auto Parts Co.Houses and Buildings 395405.50 395405.52
Ltd.FAW Changchun
Houses buildings and
Communication 44036.69 93577.97
land
Technology Co. Ltd.Foshan Diyiyuansu New
Energy Technology Co. Houses and Buildings 48441.12 75391.68
Ltd.
378Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
The Company as the lessee:
Unit: Yuan
Rental expenses
Variable lease
for simplified
payments not
short-term Interest Expense on Lease Increased Right-of-
included in the Rent Paid
leases or low- Liabilities Incurred use Assets
measurement of
value asset
Type lease liabilities leases
of
Name of lessor Lease Amou AmouAmou Amou Amou
d nt nt nt nt nt
Assets Incurr Incurr Amount Amount Amount Incurr Incurr Amount Incurred Incurr
ed in ed in Amount Incurred Incurred in Incurred in Incurred in
ed in ed in in the Previous ed in
the the in Current Period Current the Previous the Previous
Curren Curren Period Curren
Previo Previo Period Period Period
t t t
us us
Period Period Period
Period Period
House
China FAW Co. s and
5439057.9411954237.52154694.08623377.44629506.67
Ltd. Buildi
ngs
China FAW Group
Land 4265876.00 3913647.70 114069.31 302739.30
Co. Ltd.House
Changchun
s and
Automotive Test 2335846.88 23051.33 93731.36
Buildi
Center Co. Ltd.ngs
Description of related leases
379Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(3) Remuneration of key management personnel
Unit: Yuan
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Remuneration of key management
12319100.0016025900.00
personnel
(4) Other related transactions
* Interest income and expenses Unit: Yuan
Transaction Amount in the current Amount of the Previous
Related Parties
content period Period
First Automobile Finance
Interest income 137754954.50 96959146.12
Co. Ltd.* Equity investments Unit: Yuan
Amount Incurred in Current Amount Incurred in the
Related Parties
Period Previous Period
China FAW Group Import & Export Co.
385749224.63
Ltd.Changchun Automotive Test Center Co.
670872897.94
Ltd.* Equity sales Unit: Yuan
Amount Incurred in
Related Parties Description
Current Period
The Company signed an Equity Transfer Agreement
FAW 4357068905.33 with FAW Co. Ltd. to sell its 21.8393% equity stake
in First Automobile Finance Co. Ltd.* Other financial services Unit: Yuan
Amount in the current Amount of the Previous
Related Parties Transaction content
period Period
First Automobile Finance
Interest expense 494444.40
Co. Ltd.
6. Receivables and payables of related parties
(1) Receivables
Unit: Yuan
Ending balance Opening balance
Project
Related Parties Provision for Provision for
name Book balance Book balance
Bad Debts Bad Debts
China FAW
Accounts
Group Import & 5859058467.14 7201938.50 565602786.91 1438890.29
receivable
Export Co. Ltd.Jiefang Times
Accounts
New Energy 48121630.43 741664.91 193088998.31 743368.60
receivable
Technology
380Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Co. Ltd.FAW-HONGTA
Accounts Yunnan
43170001.8416226515.5354814238.7311781810.57
receivable Automobile
Co. Ltd.Accounts China FAW
18690000.0052332.00
receivable Group Co. Ltd.FAW Asset
Accounts
Management 5535503.14 460080.44 454999.94 454999.94
receivable
Co. Ltd.FAW Harbin
Accounts Light-
5280362.5914785.02260081914.30261998.72
receivable Automobile
Co. Ltd.FAW Jingye
Accounts
Engine Co. 1820957.23 1820958.23 1820957.23 1820957.23
receivable
Ltd.Accounts China FAW Co.
215088.2064.532150000.0010320.00
receivable Ltd.Grammer
Accounts Vehicle Parts
128609.10360.11116052.30557.05
receivable (Harbin) Co.Ltd.Shandong
Accounts Pengxiang
98139.49274.7913086.1862.81
receivable Automobile
Co. Ltd.Accounts Fawer Auto
113274.44317.17
receivable Parts Co. Ltd.FAW
Changchun
Accounts Yanfeng
2722.497.62
receivable Visteon
Electronics Co.Ltd.Accounts
SmartLink 5106986.20 5106.99
receivable
United Fuel
Accounts Cell System
210717.101011.44
receivable R&D (Beijing)
Co. Ltd.Qiming
Accounts Information
131897.06633.11
receivable Technology
Co. Ltd.FAW
Accounts Changchun
24427.35117.25
receivable Comprehensive
Utilization Co.
381Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Ltd.Changchun
Accounts
Yidong Clutch 15885.93 76.25
receivable
Co. Ltd.Changchun
FAWAY
Accounts
Automobile 8670.94 41.62
receivable
Components
Co. Ltd.FAW Mold
Prepayment
Manufacturing 38487775.26 12268345.36
s
Co. Ltd.China FAW
Prepayment
Group Import & 10406342.22 291602226.68
s
Export Co. Ltd.Qiming
Prepayment Information
266654.102083957.10
s Technology
Co. Ltd.The Ninth
Institute of
Project
Planning &
Prepayment
Research of 267810.00 600000.00
s
China
Machinery
Industry
(FIPPR)
FAW Jilin
Prepayment
Automobile 12256098.84
s
Co. Ltd.Prepayment Fawer Auto
1718.69
s Parts Co. Ltd.Changchun
Prepayment Automotive
26426263.51
s Test Center Co.Ltd.Prepayment
SmartLink 5473400.00
s
Prepayment FAW Foundry
20532.03
s Co. Ltd.First
Other Automobile
156960226.90
receivables Finance Co.Ltd.FAW Jiefang
Other Fujie (Tianjin)
747434.87
receivables Technology
Industry Co.
382Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Ltd.Other FAW Logistics
719064.22795.6155370.791688.81
receivables Co. Ltd.China FAW
Other
Group Import & 605190.66 60.52
receivables
Export Co. Ltd.FAW Jilin
Other
Automobile 538200.00 538200.00 538200.00 538200.00
receivables
Co. Ltd.Changchun
Other
Yidong Clutch 144919.63 144919.63
receivables
Co. Ltd.Other FAW Forging
25771.06412.3423548.67718.23
receivables (Jilin) Co. Ltd.FAW Logistics
(Changchun
Other Lushun)
2115.8533.851219.6537.20
receivables Storage and
Transportation
Co. Ltd.Other
SmartLink 7597737.61 231731.00
receivables
FAW Asset
Other
Management 3124921.61 93785.11
receivables
Co. Ltd.FAW Mold
Other
Manufacturing 19983.53 609.50
receivables
Co. Ltd.
(2) Payables
Unit: Yuan
Project Beginning Book
Related Parties Ending book balance
name Balance
Accounts
China FAW Group Import & Export Co. Ltd. 1898694473.44 1284719375.59
payable
Accounts
Fawer Auto Parts Co. Ltd. 355988850.46 321637528.00
payable
Accounts
FAW Foundry Co. Ltd. 91061337.27 44286964.68
payable
Accounts Changchun FAWAY Automobile Components
88446817.25142502192.54
payable Co. Ltd.Accounts
Changchun FAWSN Group Co. Ltd. 85321175.51 33612267.32
payable
Accounts
FAW Forging (Jilin) Co. Ltd. 52222805.16 76891932.23
payable
Accounts
Shandong Pengxiang Automobile Co. Ltd. 50367519.94 95007782.33
payable
Accounts Changchun Yidong Clutch Co. Ltd. 38821930.69 52247878.28
383Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
payable
Accounts
Grammer Vehicle Parts (Harbin) Co. Ltd. 28653515.03 10120909.07
payable
Accounts
SmartLink 28517491.67 18624052.12
payable
Accounts
FAW Harbin Light-Automobile Co. Ltd. 19881614.85 65513752.89
payable
Accounts
China FAW Co. Ltd. 13917957.95 29476172.06
payable
Accounts
Changchun Automotive Test Center Co. Ltd. 13024962.13 6851687.59
payable
Accounts
FAW Logistics Co. Ltd. 12125258.95 80290107.51
payable
Accounts
Qiming Information Technology Co. Ltd. 12060584.46 32864573.86
payable
Accounts FAW Logistics (Changchun Lushun) Storage
11418896.258629745.71
payable and Transportation Co. Ltd.Accounts
Suzhou Zhito Technology Co. Ltd. 5359358.44 10237.07
payable
Accounts
FAW (Dalian) International Logistics Co. Ltd. 2913425.11 6942812.41
payable
Accounts
China FAW Group Co. Ltd. 2167054.00 2212607.00
payable
Accounts Changchun FAW International Logistics Co.
2164693.74
payable Ltd.Accounts FAW Changchun Automobile Trading Service
1730558.142609565.02
payable Co. Ltd.Accounts
Wuxi Sawane Spring Co. Ltd. 1561718.65 377207.77
payable
Accounts
Hainan Tropical Automobile Test Co. Ltd. 1297348.12 1625476.03
payable
Accounts
Changchun FAW United Casting Company 925760.20 39972.52
payable
Accounts FAW Changchun Comprehensive Utilization
793257.182361868.60
payable Co. Ltd.Accounts
Sanguard Automobile Insurance Co. Ltd. 767333.24 2822789.08
payable
Accounts
FAW Logistics (Qingdao) Co. Ltd. 767333.24 104662732.36
payable
Accounts FAW Changchun Communication Technology
570673.5761517.85
payable Co. Ltd.Accounts Changchun Sodexo Management Service Co.
364975.90
payable Ltd.Accounts
FAW Mold Manufacturing Co. Ltd. 265639.24 1133423.20
payable
Accounts The Ninth Institute of Project Planning &
211295.00
payable Research of China Machinery Industry (FIPPR)
Accounts
FAW Zhixing Technology (Nanjing) Co. Ltd. 162764.38 16200.00
payable
384Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Accounts Hongqi Intelligent Mobility Technology
161683.99326523.80
payable (Beijing) Co. Ltd.Accounts FAW Changchun Baoyou Jiefang Steel
117302.64117304.27
payable Processing and Distribution Co. Ltd.Accounts FAW Changchun Yanfeng Visteon Electronics
113757.7951837.99
payable Co. Ltd.Accounts
FAW Asset Management Co. Ltd. 95370.72 226180.17
payable
Changchun Automotive Economic and
Accounts Technological Development Zone
74164.68451864.50
payable Environmental Sanitation and Cleaning Co.Ltd.Accounts
FAW Logistics (Foshan) Co. Ltd. 8109.00 4293.00
payable
Accounts Changchun Wabco Automotive Control System
2394.605414883.93
payable Co. Ltd.Accounts Dalian Qiming Haitong Information
240000.00
payable Technology Co. Ltd.Accounts China Unicom Intelligent Network Technology
30249.00
payable Co. Ltd.Accounts Changchun FAW International Tendering Co.
26778.00
payable Ltd.Accounts FAW Changchun Industrial Shuixing Rubber
15197.33
payable and Plastic Products Co. Ltd.Accounts FAW Changchun Tianqi Process Equipment
178081.90
payable Engineering Co. Ltd.Accounts
received in Shandong Pengxiang Automobile Co. Ltd. 210381.00 210381.00
advance
Accounts
received in Fawer Auto Parts Co. Ltd. 107748.00 107748.00
advance
Accounts
FAW Changchun Communication Technology
received in 17431.21
Co. Ltd.advance
Contract FAW Jiefang Fujie (Tianjin) Technology
534710214.15309314130.28
liabilities Industry Co. Ltd.Contract
Changchun Faw Service Trade Co. Ltd. 37006295.80 28117018.95
liabilities
Contract
China FAW Group Import & Export Co. Ltd. 1630202.78 4240039.72
liabilities
Contract FAW Changchun Comprehensive Utilization
1060984.432463687.98
liabilities Co. Ltd.Contract
Suzhou Zhito Technology Co. Ltd. 334399.64 334400.00
liabilities
Contract
Shandong Pengxiang Automobile Co. Ltd. 117868.88 492721.62
liabilities
Contract FAW Changchun Automobile Trading Service
26830.0026830.00
liabilities Co. Ltd.
385Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Contract
FAW Asset Management Co. Ltd. 26613.23
liabilities
Contract FAW New Energy Vehicle Sales (Shenzhen)
8060.00
liabilities Co. Ltd.Other The Ninth Institute of Project Planning &
48072993.3194265971.56
payables Research of China Machinery Industry (FIPPR)
Other
FAW Mold Manufacturing Co. Ltd. 41077996.08 17227387.87
payables
Other
China FAW Group Import & Export Co. Ltd. 178714672.05 10022320.82
payables
Other
Fawer Auto Parts Co. Ltd. 18670420.82 10095378.21
payables
Other
Qiming Information Technology Co. Ltd. 16459597.55 21046660.22
payables
Other
Changchun Automotive Test Center Co. Ltd. 2335846.87 26847716.00
payables
Other
China FAW Co. Ltd. 3964596.49 95802940.17
payables
Other
SmartLink 2021250.49 1876477.00
payables
Other
Shandong Pengxiang Automobile Co. Ltd. 900000.00 1040000.00
payables
Other FAW Changchun Automobile Trading Service
680077.79
payables Co. Ltd.Other FAW Changchun Communication Technology
407106.823062361.99
payables Co. Ltd.Other
Changchun Yidong Clutch Co. Ltd. 144919.63
payables
Other Hongqi Intelligent Mobility Technology
19498.41
payables (Beijing) Co. Ltd.Other
Suzhou Zhito Technology Co. Ltd. 10000.00 10000.00
payables
Other
FAW-HONGTA Yunnan Automobile Co. Ltd. 7841.86 134832393.40
payables
Other
Sanguard Automobile Insurance Co. Ltd. 77800.00
payables
Other
Changchun Faw Service Trade Co. Ltd. 320000.00
payables
Other
FAW Harbin Light-Automobile Co. Ltd. 8241822.24
payables
Other
FAW Asset Management Co. Ltd. 3925.62
payables
XV. Share-based Payment
1. General conditions of share-based payments
□Applicable □Not applicable
386Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Unit: Yuan
Shares Shares
Shares granted
exercised in unlocked in
in the current Shares invalidated in the current period
the current the current
Grantee category period
period period
Amo Amo Amo
Qty. Qty. Qty. Qty. Amount
unt unt unt
Manager 12621954.00 79884645.54
Total 12621954.00 79884645.54
Stock options or other equity instruments outstanding at the end of the current period
□Applicable □Not applicable
Other description:
2. Equity-settled share-based payment
□Applicable □Not applicable
Unit: Yuan
Restricted shares are determined according to the
Measures for determining the fair value of equity
closing price on the grant date and stock options are
instruments on the grant date
determined according to the B-S option pricing model.Important parameters of fair value of equity
Quoted prices in active markets
instruments on the grant date
The Company determines the number according to the
Proposal on the Restricted Share Incentive Plan of
FAW JIEFANG GROUP CO. LTD. (Draft) and Its
Summary the Proposal on the Regulations for the
Implementation Assessment of Restricted Share
Basis for determining the number of exercisable Incentive Plan of FAW JIEFANG GROUP CO. LTD.equity instruments 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.Reasons for significant differences between current
N/A
estimates and previous estimates
Aggregate amount of equity-settled share-based
50594181.86
payment charged to the capital reserve
Total expenses recognized by equity-settled share-
-2522576.58
based payment in the current period
387Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Other description:
3. Cash-settled share-based payment
□Applicable □Not applicable
4. Share-based payment expenses in the current period
□Applicable □Not applicable
Unit: Yuan
Equity-settled share-based Cash-settled share-based payment
Grantee category
payment expenses expenses
Manager -2522576.58
Total -2522576.58
Other description:
XVI. Commitments and Contingencies
1. Important commitments
Important commitments existing on the balance sheet date
The Company has no other commitments that should be disclosed as of December 31 2024.
2. Contingencies
(1) Important contingencies existing on the balance sheet date
Contingent liabilities arising from pending litigation and arbitration and their financial impact
Unit: Yuan
Cause of Court of Subject Case
Plaintiff Defendant
Action Acceptance Amount Progress
Zaozhuang Jujin Vehicle Co. Product Yicheng District
First
Sun Zhongwu Ltd. and China FAW Group liability People's Court of 1580000.00
instance
Co. Ltd. cases Zaozhuang City
Jilin Anrui Lifting
Zhao Qianqian Gaobeidian
Transportation Co. Ltd. Product
Yu Xiufeng Li Municipal First
Shandong Yongseng Rubber liability 1289951.00
Shunxi Li People's Court of instance
Group Co. Ltd. and China dispute
Mengyuan Hebei Province
FAW Group Co. Ltd.Liling Huatong
Logistics China FAW Group Co. Ltd.Changsha
Transportation Changsha FAW Automobile Product
County People's First
Co. Ltd. Feng Co. Ltd. Asia-Pacific liability 1033154.64
Court of Hunan instance
Xianwei Liu Property Insurance Co. Ltd. dispute
Province
Mu Feng Hunan Branch
Xueren
388Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Cause of Court of Subject Case
Plaintiff Defendant
Action Acceptance Amount Progress
Dubon Property
Longmatan
Insurance Co. China FAW Group Co. Ltd. Product
District People's First
Ltd. Sichuan Feichi Vehicle Co. liability 1011245.00
Court of Luzhou instance
Qingbaijiang Ltd. cases
City
Branch
As of December 31 2024 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.
(3) Other information required by the industry information disclosure guidelines
The Company shall meet the disclosure requirements for the automobile manufacturing industry specified in the
"No.3 Guideline of Shenzhen Stock Exchange on Self-Regulatory Supervision of Listed Companies - Industry
Information Disclosure."
The sales amount of mortgage sales financial leases and other modes account for more than 10% of the operating
income.□Applicable □Not applicable
The Company's guarantee to dealer
□Applicable□ Not applicable
XVII. Events after the Balance Sheet Date
1. Profit distribution
Dividends to be distributed per 10 shares (Yuan) 0.50
Dividends per 10 shares declared upon
0.50
deliberation and approval (Yuan)
Based on the 4922371176 shares of the Company a
cash dividend of 0.5 yuan (tax inclusive) will be distributed
to all shareholders for every 10 shares they hold; the cash
dividends to be distributed will reach 246118558.80 yuan
(tax inclusive) and the remaining undistributed profits will
Profit distribution scheme be carried forward to the next accounting year. The
Company does not convert its capital reserves into share
capital.For any change to the total share capital of the
Company due to the equity incentive plan before the
implementation of the distribution plan the cash dividend of
389Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
0.50 yuan (tax inclusive) will be distributed to all
shareholders per 10 shares based on the total share capital
registered on the date of record when the profit distribution
plan is implemented in the future and the specific amount
will be subject to the actual distribution.This distribution plan is subject to the review and
approval of the 2024 annual shareholders' meeting before
implementation.
2. Notes on other events after the balance sheet date
In accordance with the construction requirements of Chengdu's Ecological Ring Zone the Sanhe Street Office
of Xindu District People's Government in Chengdu plans to expropriate and demolish relevant buildings land and
attached facilities owned by the Company's subsidiary Jiefang Limited located in Xindu District Chengdu. On
March 7 2025 the Company convened the 23rd meeting of its 10th Board of Directors and approved the "Proposal
on the Expropriation of Subsidiary's Land Buildings and Other Assets." Jiefang Limited intends to sign an
"Ecological Ring Zone Construction Project Demolition Compensation Agreement" with the Sanhe Street Office
of Xindu District People's Government in Chengdu. The total compensation for this expropriation is expected to be
215 million yuan.
As of March 28 2025 the Company had no events after the balance sheet date to be disclosed.XVIII. Other Significant Matters
On October 25 2024 and November 10 2024 the Company held the 17th and 18th meetings of the 10th Board
of Directors respectively and on November 21 2024 convened the third extraordinary shareholders meeting of
2024 approving proposals related to the Company's significant asset disposal. The Company signed an Equity
Transfer Agreement with FAW Co. Ltd. agreeing to sell its 21.8393% equity stake in First Automobile Finance
Co. Ltd. to FAW Co. Ltd. for 4923886.1 thousand yuan (this price would be adjusted accordingly if First
Automobile Finance Co. Ltd. distributes cash dividends for profits earned before the valuation reference date). On
December 19 2024 and December 24 2024 the Company received dividend payments from First Automobile
Finance Co. Ltd. and equity transfer payments from FAW Co. Ltd. totaling 4923886.1 thousand yuan. As of
March 28 2025 First Automobile Finance Co. Ltd. still needs to complete the business registration change
procedures.
390Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
XIX. Notes to Major Items of Parent Company's Financial Statements
1 Other receivables
Unit: Yuan
Item Ending balance Opening balance
Dividends receivable 156960226.90
Other receivables 6314003121.96 219864.00
Total 6470963348.86 219864.00
(1) Dividends receivable
1) Classification of dividends receivable
Unit: Yuan
Item (or Investee) Ending balance Opening balance
First Automobile Finance Co. Ltd. 156960226.90
Total 156960226.90
(2) Other receivables
1) Classification of other receivables by nature
Unit: Yuan
Nature Ending book balance Beginning Book Balance
Current account 6314127833.96 459006.26
Total 6314127833.96 459006.26
2) Disclosure by aging
Unit: Yuan
Aging Ending book balance Beginning Book Balance
Within 1 year (including 1 year) 6313668827.70
Including: 0-6 months 6313668827.70
2-3 years 459006.26
Over 3 years 459006.26
3-4 years 459006.26
Total 6314127833.96 459006.26
391Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
3) Disclosure by the method of provision for bad debts
Unit: Yuan
Ending balance Opening balance
Book balance Provision for Bad Debts Book balance Provision for Bad Debts
Category Book
Provision Book Value Provision
Amount Scale Amount Amount Scale Amount Value
proportion proportion
Including:
Provision for
bad debts
6314127833.96100.00%124712.000.00%6314003121.96459006.26100.00%239142.2652.10%219864.00
made by
portfolio
Including:
Aging
6314127833.96100.00%124712.000.00%6314003121.96459006.26100.00%239142.2652.10%219864.00
portfolio
Total 6314127833.96 100.00% 124712.00 0.00% 6314003121.96 459006.26 100.00% 239142.26 52.10% 219864.00
392Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Bad debt provision made as per portfolio:
Unit: Yuan
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Provision for bad debts
6314127833.96124712.000.002%
made by portfolio
Total 6314127833.96 124712.00
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses:
Unit: Yuan
Stage I Stage II Stage III
Expected credit loss Expected credit loss
Provision for Bad Debts Expected Credit in the duration for the entire Total
Losses for the
(credit impairment duration (with
Next 12 Months
not occurred) credit impairment)
Balance as of January 1 2024 239142.26 239142.26
Balance on January 1 2024 in
the current period
Provision in the current period -114430.26 -114430.26
Balance as of December 31
124712.00124712.00
2024
Basis for stage classification and bad debt provision rates: Stage II provisions are based on aging with a provision
ratio of 27.17% 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: Yuan
Nature Proportion in Ending
of total ending Balance of
Name of Unit Ending balance Aging
Paymen balance of other Provision for
t receivables Bad Debts
FAW Jiefang Automotive Co. Current Within 1
6313668827.7099.99%
Ltd. account year
Changchun Committee of
Current
Municipal and Rural 459006.26 3-4 years 0.01% 124712.00
account
Construction
Total 6314127833.96 100.00% 124712.00
2. Long-term equity investment
Unit: Yuan
Ending balance Opening balance
Item
Book balance Impa Book Value Book balance Impa Book Value
393Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
irme irme
nt nt
Prov Prov
ision ision
Investme
nt in
21611015169.7321611015169.7321084445613.0321084445613.03
subsidiar
ies
Investme
nt in
associate
d
184102155.37184102155.374509604357.164509604357.16
enterpris
es and
joint
ventures
Total 21795117325.10 21795117325.10 25594049970.19 25594049970.19
394Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(1) Investment in subsidiaries
Unit: Yuan
Opening Increase/Decrease in the current period Ending
balance balance
Reduc Impair
Opening balance of Ending balance of
Investee Additional ed ment Othe
(book value) impairme (book value) impairme
Investment Invest Provisi rs
nt nt
ment on
provision provision
FAW Jiefang Automotive Co. Ltd. 21084445613.03 -2522576.52 21081923036.51
FAW (Africa) Investment Co. Ltd. 329092133.22 329092133.22
FAW Jiefang Group International
200000000.00200000000.00
Automobile Co. Ltd.Total 21084445613.03 526569556.70 21611015169.73
(2) Investment in associated enterprises and joint ventures
Unit: Yuan
Increase/Decrease in the current period E
n
d
i
Openi n
ng Ad g
balan diti b
Invest Opening balance ce of ona Investment gains Adjustment to Chan
Cash dividends Impai Ending balance (book a
ee (book value) impai l or losses other ges in
and profits rment Oth
Reduced Investment value) l
Inv recognized under comprehensive other declared to pay rment Provi ers a
provis est the equity method income equity sion n
ion me c
nt
e
o
f
i
395Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
m
p
a
ir
m
e
n
t
p
r
o
v
i
s
i
o
n
I. Joint ventures
II. Associated enterprises
First
Auto
mobil
e
4337808758.453887756356.82273826162.32-101144.85723777419.10
Finan
ce
Co.Ltd.Sangu
ard
Auto
mobil
171795598.71451805.5711854751.09184102155.37
e
Insura
nce
Co.
396Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
Ltd.Subto
4509604357.163887756356.82274277967.8911753606.24723777419.10184102155.37
tal
Total 4509604357.16 3887756356.82 274277967.89 11753606.24 723777419.10 184102155.37
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
397Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
3. Investment income
Unit: Yuan
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Long-term equity investment income
353500000.00
calculated with cost method
Income from long-term equity
investments accounted for using the 274277967.89 325302522.88
equity method
Investment income from the disposal
469265324.69
of long-term equity investment
Total 1097043292.58 325302522.88
XX. Supplementary Information
1. Breakdown of non-recurring profit or loss of the current period
□Applicable □Not applicable
Unit: Yuan
Item Amount Description
It refers to the net gain on
Profits or losses on disposal of non-current assets -2556987.30
disposal of non-current assets.Government subsidies included in the current profit or
loss (except those closely related to the Company's
normal operations conforming to the State policies and
618258791.46
regulations and 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 receivables subject provision for receivables is
65749100.00
to a separate impairment test subject to a separate impairment
test.The current net profit and loss of
Net current profit and loss of the subsidiary acquired in a the subsidiary were acquired in a
business combination involving entities under common business combination involving
132844483.67
control from the beginning of the period to the entities under common control
combination date from the beginning of the period
to the combination date.
398Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
The net non-operating income and
Non-operating income and expenses other than the above 76695007.35
expenses.Other losses and profits conforming to the definition of Other non-recurring profits and
469265324.69
non-recurring profit and loss losses.Less: amount affected by income tax 130656414.24
Amount affected by minority shareholder's equity
36843452.64
(after-tax)
Total 1192755852.99 --
Specific conditions of other profit and loss items meeting the definition of non-recurring profit and loss:
□Applicable □Not applicable
There is no specific conditions of profit and loss items meeting the 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
Basic earnings per share Diluted earnings per
Period on equity
(Yuan/share) share (Yuan/share)
Net profit attributable to
ordinary shareholders of 2.45% 0.1266 0.1266
the Company
Net profit attributable to
ordinary shareholders of
the Company after -2.25% -0.1160 -0.1160
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 Chinese accounting standards
□Applicable □Not applicable
399Full Text of 2024 Report of FAW JIEFANG GROUP CO. LTD.
(2) Differences in net profits and net assets in the financial report disclosed simultaneously according to
foreign accounting standards and Chinese 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.□Applicable □Not applicable
400
沪公网安备31011802005267号
