Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.FAW JIEFANG GROUPCO. LTD
Annual Report 2025
March 2026
1Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Section I Important Notes Contents and Definitions
The Board of Directors the Directors and Senior Management of the
Company guarantee that the contents of this Annual Report are true accurate
and complete that there are no false records misleading statements or
material omissions and that they shall bear individual and joint legal liability.Li Sheng the person in charge of the Company Yu Changxin the person
in charge of accounting work and Yang Li the person in charge of the
accounting organization (chief accountant) hereby declare and guarantee the
authenticity accuracy and completeness of the financial report in this Annual
Report.Except for the following directors other directors attended the board
meeting to review the annual report in person
Names of Positions of
Reasons for Not Name of the
Directors Not Directors Not
Present in Person Trustee
Present in Person Present in Person
Yu Changxin Director Work Li Sheng
Independent
Han Fangming Work Mao Zhihong
director
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
2Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
relevant contents. China Securities Journal Securities Times and CNINFO
(http://www.cninfo.com.cn) are the designated information disclosure media
selected by the Company. All information of the Company is subject to that
published in the above selected media. Investors are kindly requested to pay
attention to investment risks.The profit distribution plan approved by this meeting of the Board of
Directors is as follows: based on a total of 4921280975 shares a cash dividend
of CNY 0.45 per 10 shares (tax inclusive) shall be distributed to all
shareholders with no bonus shares distributed (tax inclusive) and no
conversion of capital reserves into share capital.This Report has been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions the
Chinese version shall prevail.
3Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Table of Contents
Section I Important Notes Contents and Definitions... 2
Section II Company Profile and Main Financial Indi... 7
Section III Management Discussion and Analysis ..... 15
Section IV Corporate Governance Environment and Social Responsibility .....63
Section V Important Matters ....................... 104
Section VI Changes in Shares and Shareholders ......136
Section VII Bonds ..................................151
Section VIII Financial Report ......................152
4Full Text of Annual Report 2025 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 audit report bearing the seal of the accounting firm and the
signatures and seals of the certified public accountants.
3. Originals of all company documents and announcements publicly disclosed
on the website designated by China Securities Regulatory Commission in the
reporting period.
5Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Interpretation
Item Refers to Definition
Company the Company FAW Refers to FAW JIEFANG GROUP CO. LTD/FAW JiefangJiefang Group Co. Ltd.Jiefang Limited Refers to FAW Jiefang Automotive Co. Ltd.Jiefang Group International Refers to FAW Jiefang Group International Automobile Co.Ltd.Tanzania Ltd. Refers to Jiefang Motors Tanzania Ltd.FAW Group Refers to China FAW Group Co. Ltd.FAW Refers to China FAW Co. Ltd.FAW Car Refers to FAW Car Co. Ltd.FAW Bestune Refers to FAW Bestune Auto Co. Ltd.Finance company Refers to First Automobile Finance Co. Ltd.Harbin Light Company Refers to FAW Harbin Light-Automobile Co. Ltd.FAW-HONGTA Refers to FAW-HONGTAYunnan Automobile Co. Ltd.Board of Directors Refers to Board of Directors of FAW Jiefang Group Co. Ltd.Shareholders’Meeting Refers to Shareholders’Meeting of FAW Jiefang Group Co.Ltd.SASAC Refers to State-owned Assets Supervision and AdministrationCommission of the State Council
Ministry of Finance Refers to Ministry of Finance of the People’s Republic ofChina
China Securities Regulatory
Commission Refers to China Securities Regulatory Commission (CSRC)
SZSE Refers to Shenzhen Stock Exchange
China Securities Depository and
Clearing Corporation Limited Refers to Shenzhen Branch China Securities Depository and
(CSDC) Clearing Corporation Limited
Company Law Refers to Company Law of the People’s Republic of China
Securities Law Refers to Securities Law of the People’s Republic of China
Articles of Association Refers to Articles of Association of FAW Jiefang Group Co.Ltd.Reporting Period Refers to January 1 2025 – December 31 2025
CNY CNY 10 thousand CNY
100 million Refers to CNY CNY 10 thousand CNY 100 million
6Full Text of Annual Report 2025 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/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 registered
130011
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-
registered address of tech Industrial Development Zone Changchun City Jilin Province to
the Company No. 2259 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
7Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Name Yu Changxin (Acting) Yang Yuxin
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
http://www.szse.cn
annual report of the Company
Name and website of the media disclosing Securities Times China Securities Journal and
annual report of the Company CNINFO (http://www.cninfo.com.cn)
Keeping location of the Annual Report of the
FAW Capital Operation Department
Company
IV. Changes in Registration
Unified Social Credit Code 91220101244976413E
In 2020 the Company completed major asset restructuring and
Changes in the Company’s
changed its main business from research development
principal business since
production and sales of passenger cars to research development
listing
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
Changes in controlling transfer procedures in April 2012. After the equity transfer the
shareholders in the past total share capital of the Company did not change and remained at
1627500000 shares. FAW Car Co. Ltd. holds 862983689
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 major asset restructuring project of the Company. The
8Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
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
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
Name of Accounting Firm BDO China Shu Lun Pan Certified Public Accountants LLP
Office address of the 17-20/F Tower A Zhonghai International Center Building 7 Yard
accounting firm 5 Anding Road Chaoyang District Beijing
Name of the accountants Xu Peimei Liu Chongjun
Sponsor institution employed by the Company to perform continuous supervision duties in the
reporting period
□Applicable □Not applicable
Name of Sponsor Office Address of Name of Sponsor Continuous Supervision
Institution Sponsor Institution Representative Period
27th and 28th Floor
China World Office 2
China International
No. 1 Jianguomenwai Chen Yiliang Yue October 21 2024 -
Capital Corporation
Avenue Chaoyang Conglu December 31 2025
Limited
District Beijing P.R.China
Financial consultant employed by the Company to perform continuous supervision duties in the
reporting period
□Applicable □Not applicable
Name of Financial
Name of Financial Office Address of Continuous Supervision
Advisor’s Sponsor
Advisor Financial Advisor Period
Representatives
10/F Taikang Group
China Securities Tower Building 1 Liu Minghao Zhang April 29 2025 –
Co. Ltd. Yard 16 Jinghui Bohua December 31 2026
Street Chaoyang
9Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
District Beijing
VI. Main Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of previous
years
□Yes□No
Increase or
Decrease
2025 2024 Compared 2023
to That of
Last Year
Operating income
(CNY) 62678001039.04 58581106258.53 6.99% 64324640770.64
Net profit attributable
to shareholders of the 724545159.90 622427699.65 16.41% 806096685.30
listed company (CNY)
Net profit attributable
to shareholders of the
listed company after
deducting non-recurring 16432698.28 -570328153.34 102.88% -83315836.30
profits and losses
(CNY)
Net cash flows from
operating activities 2685032432.66 -5850286307.05 145.90% 4089673393.78
(CNY)
Basic earnings per
Share (CNY/share) 0.1472 0.1266 16.27% 0.1805
Diluted earnings per
Share (CNY/share) 0.1472 0.1266 16.27% 0.1805
Weighted average
return on equity 2.73% 2.45%
Increased
by 0.28% 3.44%
Increase or
Decrease
End of 2025 End of 2024 Compared End of 2023
with That at
the End of
Last Year
Total assets (CNY) 72505798266.39 72749219016.61 -0.33% 68085842451.70
Net assets attributable
to shareholders of the 26471578740.78 26317926062.66 0.58% 24801954142.49
listed company (CNY)
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
10Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
The lowest of the Company’s audited total profit net profit and net profit after deducting non-
recurring gains and losses during the reporting period is negative.□Yes□No
VII. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences in Net Profits and Net Assets in the Financial Report Are Disclosed
Simultaneously according to the International Accounting Standards and China Accounting
Standards
□Applicable□Not applicable
In the reporting period of the Company there is no difference in net profits and net assets in the
financial report disclosed according to the international accounting standards and China
accounting standards.
2. Differences in Net Profits and Net Assets in the Financial Report Disclosed Simultaneously
according to Foreign Accounting Standards and China Accounting Standards
□Applicable□Not applicable
In the reporting period of the Company there is no difference in net profits and net assets in the
financial report disclosed according to foreign accounting standards and China accounting
standards.VIII. Seasonal Main Financial Indicators
Unit: CNY
Q1 Q2 Q3 Q4
Operating
14341057158.4513737647899.6215917165202.8318682130778.14
income
Net profit
attributable to
shareholders 29053517.40 -9397707.01 352485860.96 352403488.55
of the listed
company
Net profit
-217959758.04-158677881.14227194986.46165875351.00
attributable to
11Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
shareholders
of the listed
company
after
deducting
non-recurring
profits and
losses
Net cash
flows from
411504965.087223784055.63-4122534937.24-827721650.81
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
□Yes□No
IX. Items and Amounts of Non-recurring Profit and Loss
□Applicable □Not applicable
Unit: CNY
Item Amount in 2025 Amount in 2024 Amount in 2023 Description
Profits or losses on
disposal of non-
current assets It refers to the net
(including the write-
off part of the 142942964.74 -2556987.30 192669498.68
gain on disposal
of non-current
provision for assets.impairment of assets
made)
Government subsidies
included in the current
profit or loss (except
those closely related
to the Company’s
normal operations 590619645.87 618258791.46 546340041.28
conforming to the
State policies and
regulations and
enjoyed in line with
the specified
standards and having
12Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
a continuous impact
on the profit or loss of
the Company)
Gains and losses from
changes in fair value
of financial assets and
financial liabilities
held by non-financial This refers to the
enterprises and gains investment
and losses from income arising
disposal of financial 44920688.34 from the disposal
assets and financial of held-for-
liabilities other than trading financial
those arising from assets.effective hedging
activities related to the
Company’s normal
business operations.The reversal of
Reversal of impairment
impairment provision provision for
for receivables subject 2272859.28 65749100.00 9205923.40 receivables
to separate subject to
impairment test separate
impairment test.Net current profit and
loss of the subsidiary
acquired in business
combination involving
entities under 132844483.67 65274736.52
common control from
the beginning of the
period to the
combination date
Non-operating income The net non-
and expenses other 75982891.68 76695007.35 173374447.46 operating income
than the above and expenses.Other losses and
profits conforming to
the definition of non- 469265324.69 100996378.33
recurring profit and
loss
Less: amount affected
by income tax 148638053.67 130656414.24 176245495.71
Amount affected
by minority -11465.38 36843452.64 22203008.36
shareholder’s equity
13Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
(after-tax)
Total 708112461.62 1192755852.99 889412521.60 --
Specific conditions of other profit and loss items meeting the definition of non-recurring profit
and loss:
□Applicable□Not applicable
There are no specific conditions of profit and loss items meeting definition of non-recurring profit
and loss for the Company.Explanation on defining the non-recurring profit and loss items listed in the Explanatory
Announcement No.1 on Information Disclosure by Companies Issuing Securities Publicly - Non-
recurring Profit and Loss as recurring profit and loss items
□Applicable□Not applicable
The Company does not define the non-recurring profit and loss items listed in the Explanatory
Announcement No. 1 on Information Disclosure by Companies Issuing Securities Publicly - Non-
recurring Profit and Loss as recurring profit and loss items.
14Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Section III Management Discussion and Analysis
I. Main Businesses of the Company in the Reporting Period
The Company is a commercial vehicle manufacturer that produces heavy medium and light
trucks and buses as well as core components such as engines transmissions and axles and has a
complete manufacturing system covering raw materials core components key large assemblies
and complete vehicles. The products of the Company are mainly used in market segments such as
traction cargo carrying dumping special purposes highway passenger transport bus passenger
transport etc. and the Company also provides standardized and customized commercial vehicle
products. The Company is committed to becoming a provider of green and intelligent
transportation solutions that is “First in China World-class” focusing on its core product lines
adhering to innovation-driven and transformation-driven approaches and building a pioneering
advantage. During the reporting period the Company’s principal business products and business
model did not undergo any significant changes.The Company has strategically established five major vehicle production bases nationwide in
Changchun Qingdao Guanghan Liuzhou and Foshan creating a production capacity model
featuring “primary-auxiliary coordination with flexible complementarity” with a total annual
production capacity of 418 thousand vehicles including: the Changchun Base at 153 thousand
vehicles the Qingdao Base at 200 thousand vehicles the Guanghan Base at 40 thousand vehicles
the Liuzhou Base at 20 thousand vehicles and the Foshan Base at 5 thousand vehicles. In recent
years the Company has steadfastly pursued technology leadership and business innovation as key
strategic directions for development proactively accelerating the optimization and adjustment of
its production capacity structure closely aligning with critical development trends such as product
premiumization and new energy transformation while continuously optimizing resource
allocation and advancing intelligent upgrades. Through a series of effective initiatives the
Company has successfully built multiple advanced manufacturing bases at the industry-leading
level not only demonstrating the Company’s outstanding production and manufacturing
capabilities but also establishing prominent technological and competitive advantages in the
commercial vehicle sector laying a solid foundation for the Company’s sustained market
leadership.
15Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Manufacturing production and operation of complete vehicle in the reporting period
□Applicable □Not applicable
Production and sales of complete vehicles
Unit: Vehicle
Production Sales Quantity
Year-on- Year-on-
This Same year This Same year
Reporting Period of Increase Reporting Period of Increase
Period Last Year and Period Last Year and
Decrease Decrease
By vehicle type
Medium/Hea
24517320983016.84%25474321403719.02%
vy truck
Light-duty
2652038227-30.62%2510936462-31.14%
truck
Bus 116 614 -81.11% 148 579 -74.44%
Total 271809 248671 9.30% 280000 251078 11.52%
Reasons for year-on-year change of more than 30%
□Applicable □Not applicable
The production and sales volumes of buses decreased compared with the same period last year
mainly due to factors such as the adoption of a build-to-order production model and fierce
industry competition; the production and sales volumes of light trucks decreased compared with
the same period last year primarily affected by industry competition and product structure.Construction of parts and components supporting system
Regarding the development of the parts supporting system the Company is committed to
continuously building FAW Jiefang’s “international procurement competitiveness” and strives to
enhance the risk prevention and control capabilities and overall resilience of the supply chain.Centering on the needs of the market customers and various industries the Company
continuously improves its resource platforms to promote resource openness and market-oriented
competition. Currently the three major core assemblies—engines transmissions and axles—for
the Company’s main vehicle models are primarily self-produced. Core component resources have
been systematically laid out across medium- and heavy-duty trucks new energy vehicles light
16Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
and mini trucks and overseas operations to enhance supply chain diversity and risk resilience. By
strengthening tiered and classified supplier management clarifying cooperation strategies for
resources at each level and deepening collaboration with outstanding domestic and international
suppliers the Company has further enhanced the stability and responsiveness of its supply chain.At the same time guided by product technology and quality leadership as well as scientific and
effective process management the Company implements product lifecycle quality control
strengthens process supervision and preventive risk control over suppliers and promotes supplier
capability improvement thereby ensuring vehicle quality and market reputation and
systematically enhancing the resilience and security level of the industrial chain.Production and operation of automobile parts and components in the reporting period
□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: CNY
Sales
Product Category Production Capacity Production Sales Revenue
Volume
The Company’s
existing production
Commercial capacity can meet the
378994506318360546826.48
vehicles demand for new
energy commercial
vehicles.II. Industry of the Company in the Reporting Period
In 2025 the macroeconomy remained in a period of adjustment with the annual GDP
growth rate at 5.0%. The commercial vehicle industry was in a phase of recovery and growth
with total market sales reaching 4.296 million vehicles a year-on-year increase of 10.9%. Among
them the annual demand for medium- and heavy-duty trucks was 1.27 million vehicles a year-
on-year increase of 23.4%. The growth in the domestic market was driven by products from the
17Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
previous demand cycle peak reaching their replacement cycle coupled with the elimination policy
for old trucks which generated significant replacement demand bringing cyclical benefits to
industry participants. The growth in overseas markets was mainly driven by the active expansion
of Chinese commercial vehicle companies with significant improvements in product
competitiveness and brand influence leading to an increase in the market share of Chinese
enterprises overseas. Against the backdrop of overall industry demand growth the Company
outperformed the industry trend.In 2025 changes in industry structure became more pronounced. Among them the overseas
market grew by 17.2% with a growth rate exceeding that of 2024; the new energy vehicle sector
driven by both policy and market forces grew beyond industry expectations; while smart vehicles
constrained by technology and regulations have not yet formed a significant market scale user
demand for intelligent applications remains strong. The development trends in segmentedindustries are fully aligned with the Company’s three strategic directions of “Technology JiefangGreen Jiefang and International Jiefang”.
(10 thousand vehicles)
Monthly Sales Volume of Commercial Vehicles
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
202320242025
Note: Industry data sourced from China Association of Automobile Manufacturers
2025 was a year in which the government introduced a high number of industry policies and
regulations with a core focus on key areas such as market access trade-in programs and new
energy vehicle support.In terms of market access the Implementation Measures for Self-Inspection of Road Motor
18Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Vehicle Products took effect on January 1 2025. The measures stipulate that enterprises meeting
self-inspection standards may independently complete certain inspection items and assume
responsibility for the results thereby optimizing product certification processes. This measure
directly improved the efficiency of commercial vehicle product declarations strengthened
corporate responsibility and reduced compliance costs. On July 1 2025 the Implementation
Rules for the Entrusted Installation Management of Upper Bodies for Truck-Type Road Motor
Vehicles officially came into effect. These rules require that body modifications for flatbed fence
van and dump trucks be uniformly declared by the vehicle manufacturers who also assume
quality responsibility. This compels vehicle manufacturers to standardize the modification process
and implement full-process quality control.Regarding trade-in programs in March 2025 the Ministry of Transport the National
Development and Reform Commission and the Ministry of Finance jointly issued the Notice on
Implementing the Scrapping and Renewal of Aging Commercial Freight Vehicles supporting the
scrapping and replacement of operational trucks meeting China III and China IV emission
standards and accelerating the renewal of a batch of high-standard low-emission operational
trucks. Financial support was provided for the early scrapping of old operational trucks the early
scrapping and replacement with new trucks meeting China VI emission standards or new energy
trucks and the purchase of eligible new energy trucks alone. This policy became the main driver
of heavy-duty truck sales growth in 2025 directly boosting domestic sales.In terms of new energy vehicle support the State Council decided to implement a “two-yearexemption and two-year reduction” policy for new energy vehicles from 2024 to 2027. The
exemption from purchase tax for new energy commercial vehicles continued throughout 2025
effectively promoting the rapid growth and volume increase of new energy commercial vehicles.III. Analysis of Core CompetitivenessThe Company adheres to the corporate vision of “being the most proud commercial vehicleenterprise and the most trustworthy commercial vehicle brand” the mission of “becoming theChina’s first and world-class provider of green and intelligent transportation solutions andbuilding a more prosperous society”; takes products and services as the main task customers and
employees as the foundation innovation and reform as the driving force; focuses on industry
trends and customer needs and rapidly enhances product competitiveness and service levels.
19Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
1. In terms of product R&D: the Company has built the most powerful and complete
independent R&D system in China covering forward-looking technology engines transmissions
axles and complete vehicles forming an efficient and collaborative R&D team of more than
3000 people. The Company possesses five core capabilities: technological innovation
performance development lean design pilot testing and test certification and has established
five technical platforms: energy-saving and environmental protection safety and comfort
reliability and durability electronic control and intelligence and materials and processes. It is the
only commercial vehicle enterprise in China that masters world-class complete vehicle and three
major powertrain core technologies and has passed ISO9001 and IATF16949 quality system
certifications. It also serves as a national-level independent automobile product R&D and test
certification base. The Company has established Changchun as its global R&D headquarters with
R&D capabilities for light- medium- and heavy-duty trucks in Qingdao; engine R&D bases in
Wuxi and Dalian; and advanced technology R&D departments in Steyr Austria MunichGermany and Yokohama Japan creating a global R&D layout spanning “four countries and ninelocations.” In recent years by accurately grasping the needs of segmented markets the Company
has successfully developed ten core product technology advantages including system fuel
efficiency extended oil change intervals lightweight design independent major assemblies
independent electronic control independent aftertreatment new energy intelligent driving
extended warranty and maintenance-free features.
2. Marketing and procurement: The Company has established a fully functional marketing
service system. The marketing service network consisting of three marketing centers—
Changchun Medium- and Heavy-Duty Trucks Qingdao Medium- and Heavy-Duty Trucks and
Light-Duty Trucks—comprises nearly 1000 dealers more than 2000 service stations over 70
spare parts centers and nearly 230 spare parts dealers covering more than 260 prefecture-level
cities nationwide. The coverage rate in cities with a capacity of over 1000 vehicles is 97.1% and
the national average service radius is 48.5 kilometers reaching a leading level in the industry
providing users with 24/7 efficient and high-quality services. The Company is committed to
integrating global high-quality resources to provide a strong guarantee for the high reliability of
Jiefang trucks. In recent years the Company has become strategic partners with top enterprises at
home and abroad including Huawei Knorr-Bremse ZF Shell Bosch CATL VOSS China
Unicom CATARC and Xiamen C&D.
20Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
3. Production and manufacturing: The Company has the most complete manufacturing
system in China from raw materials to core components from key assemblies to complete
vehicles and its processing and manufacturing depth ranks the top in the industry. The Company
operates five major vehicle manufacturing bases in Changchun Qingdao Guanghan Liuzhou
and Foshan with a production capacity of 418 thousand vehicles. It also maintains three major
assembly bases in Changchun Wuxi and Dalian independently mastering the core
competitiveness and production capabilities of engines transmissions and axles in the smart
powertrain domain with product competitiveness at an advanced level. Among these facilities
Wuxi Diesel Engine Works of FAW Jiefang Automotive Co. Ltd. features three major series—
Aowei Bowei and Jinwei—achieving world-class manufacturing standards. The Company is
deeply engaged in four key areas: smart vehicles new energy connected vehicles and the
aftermarket having established six new business bases in Suzhou Nanjing Tianjin Wuxi
Shijiazhuang and Foshan.
4. Overseas: The Company implements the “SPRINT 2030” internationalization strategy and
makes every effort to expand overseas markets. At present its exports cover more than 100
countries and regions worldwide forming a multi-level layout with Southeast Asia Africa Latin
America the Middle East Eastern Europe and Central Asia as the foundation while gradually
penetrating the high-end markets of Japan South Korea and Europe. The Company continues to
accelerate its global presence. In 2025 it launched five major product brands—Cortron Dortron
Litron Pitron and Botron—implementing the “multi-brand operation” strategic initiative. At
present the Company has 120 core dealers and more than 300 service providers worldwide. The
Company has established overseas subsidiaries in countries such as South Africa and Tanzania
and exports models including CH CP DP LR and others among which it firmly ranks first in the
medium- and heavy-duty truck market share in South Africa. At the same time it continues to
accelerate overseas localized operations. In 2025 it fully initiated the establishment of
subsidiaries in Uzbekistan Indonesia Vietnam Saudi Arabia and other countries to fully support
the implementation of the Company’s internationalization strategy.
5. New energy: Its product portfolio covers five major lines: tractors dump trucks cargo
trucks SPVs and buses. These product lines encompass three major technological routes: EVs
FCVs and hybrid vehicles achieving full coverage of key segment markets for new energy
commercial vehicles such as steel mills coal and slag. Product development adheres to a user-
21Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
oriented approach aiming to meet market demand and address user pain points. It focuses on the
“three-low and one-high” core competitiveness - low cost low self-weight low energy
consumption and high reliability - as well as differentiated competitiveness characterized by long
endurance low-temperature resistance high intelligence and high comfort continuously iterating
and upgrading its products and technologies. In terms of core technology the Company has
achieved integration across three critical areas: vehicle architecture vehicle control software and
assembly interface. This integration significantly improves development efficiency. The Company
harnesses technologies such as efficient energy recovery and scenario-based calibration to
significantly reduce energy consumption. Moreover the application of assembly technology
incorporates a dual-wheel drive system that combines independent core assemblies with external
high-quality social resources enabling complementary advantages. Through the continuous
exploration and application of new products new technologies and new processes the Company
has consistently maintained technological leadership and product excellence in the new energy
market achieving leapfrog growth for three consecutive years.IV. Analysis of Main Business
1. Overview
The year 2025 marked the conclusion of the 14th Five-Year Plan period. Driven by factors
such as the China IV replacement policy robust overseas demand and rapid growth in the new
energy vehicle sector the commercial vehicle market showed signs of recovery. At the same time
however this recovery brought about new challenges including accelerated industry
transformation sharp structural divergence and intensifying multi-dimensional competition. In
the face of significant market shifts and profound structural changes all employees of the
Company rose to the challenge forging ahead with determination and commitment. Through
relentless efforts they successfully delivered on the key priorities for the year achieving solid
results that demonstrated both resilience and capability. As of December 31 2025 the total assets
of the Company reached CNY 72.51 billion and the net assets attributable to shareholders of the
listed company amounted to CNY 26.47 billion. In 2025 the Company achieved operating
revenue of CNY 62.68 billion and a net profit attributable to shareholders of the listed company of
CNY 720 million. The Company sold a total of 280 thousand complete vehicles in 2025 up
11.5% year on year including 255 thousand medium- and heavy-duty trucks up 19.0% year on
22Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
year 45 thousand new energy vehicles up 184.3% year on year and 60 thousand vehicles
exported overseas up 5.2% year on year maintaining steady growth.Total assets Net assets Operating income Net profit attributable to
shareholders of the parent company
2024 2025 2024 2025 2024 Annual 2025Annual 2024 Annual 2025 Annual
Unit: CNY 100 million
In 2025 the Company’s key initiatives were as follows:
(1) Adhering to a customer-centric approach and achieving breakthroughs in
marketing transformation and capability enhancement
Strengthened customer operations and established an effective “million-customer base”.Established the FAW Jiefang customer data platform and built a tiered and categorized operational
system. Carried out the “Dream Partner” special program achieving a total of over 1 million sales
leads. Solidified problem resolution achieving a customer issue closed-loop resolution rate of
99%. Accelerated channel transformation increased the introduction and cultivation of new forces
and effectively revitalized channels. Advanced the layout of directly-operated stores driven visits
and direct connections by commercial office personnel and enhanced engagement with secondary
dealer networks. Improved the dealer evaluation system providing effective support for channel
strategy adjustments.
(2) Strengthening product and technology leadership to strongly support the market-
leading position
* Product leadership
Deeply practicing the “Product is King” philosophy vigorously promoting projects such as
product commonization and J7 serialization dynamically optimizing the product portfolio and
23Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.accelerating the construction of product-leading advantages of “having what others don’t haveand being superior in what others have.”
Medium- and Heavy-duty Trucks: J168 achieved the first launch of tractor units and the
rollout of trial-produced dump trucks. J177 completed the development of brand-new interiors
and a flat floor; J408 completed verification and entered production. Launched over 140
traditional products including the J6P Upgrade 3.0 further consolidating the Company’s market
position.Light-duty Vehicles: Accelerated iteration launching over 40 traditional light truck
derivative models and over 50 new energy light truck derivative models. Released Yuetu mini-
trucks and pickup products covering multiple powertrains including pure electric NG (Natural
Gas) and ICE (Internal Combustion Engine).New Energy: Developed 2026 models of medium- and heavy-duty vehicles released the
Lantu 3.0 platform and launched over 100 products throughout the year such as in-house electric
drive axles economical batteries and optimized wiring harnesses strongly supporting market
leadership.Powertrain: In the traditional field focused on launching 2 engine products with core
indicators such as efficiency and durability ranking first-class in the industry. In the new energy
field heavy-duty electric drive axles and electric drive transmissions were launched in small
batches with electric drive axle efficiency and electric drive transmission dynamic performance
leading the industry.Intelligent Vehicles: In high-speed scenarios completed matching for 3 L2 models and
passed the regulatory filing for L2 combined assisted driving; completed L2++ product
development and the launch of trial products for 3 express delivery customers. In low-speed
scenarios completed development and verification of L4 closed-campus products; started ICV
(Intelligent Connected Vehicle) product testing and operation at Tianjin Port.Internet of Vehicles (IoV): Completed the release and launch of the Jiefangxing New Energy
Integrated Edition APP completing the new energy IoV product matrix; intelligent diagnosis and
repair created predictive maintenance and difficult fault detection improving users’ intelligent
service experience and maintenance efficiency; Overseas IoV completed function development
and platform deployment for fleet management and operation platforms.
24Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Product Commonization: Achieved standardization of key components for engines and
powertrains in medium- and heavy-duty vehicles promoted commonization across traditional
new energy and overseas sectors and achieved the industry-leading position for Jiefang new
energy tractor units.* Technology leadership
The Company has made breakthroughs in nearly a hundred key core technologies across the
three major fields of traditional new energy and intelligent connected vehicles and has ranked
first in the China Commercial Vehicle Innovation Index for eight consecutive years. Officially
released 4 smart powertrain domain products including GS280 and ER260 and their core
technologies fully demonstrating innovative achievements in the powertrain field. The high-
stability low-platinum membrane electrode technology for fuel cells and the digital and intelligent
precision manufacturing technology for drive motor assemblies won the second and third prizes
of the China Machinery Industry Science and Technology Award; the heavy-duty M platform
China VI SCR technology and surface technology for key J7 chassis components won the Grand
Prize and Second Prize of the China FAW Technology Innovation Award.
(3) Firmly adhering to quality as the foundation achieving significant results in the
three-year quality breakthrough action
Focusing on building a solid quality reputation for the Jiefang brand firmly consolidating
the quality foundation and creating a quality-leading advantage. In terms of physical quality
targeting the year-on-year reduction of external quality loss per vehicle and claim frequency the
Company focused on key platform projects promoted quality planning during the development
process rapidly solved problems in the early stage of mass production and ensured the mature
launch of new products. For key delivery models such as overseas new energy and major
customer vehicles the Company implemented batch release management and specialized short-
distance road test audits to effectively guarantee product delivery quality. Launched quality
breakthroughs involving all staff all processes and all factors. Adhered to closing the loop
thoroughly across systems processes and rules resulting in a significant improvement in
physical quality and user perceived quality.
(4) Determinedly winning the four major breakthrough battles strongly supporting the
improvement of operational quality and growth
25Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Domestic No. 1 Battle for Traditional Vehicles: Medium- and heavy-duty trucks leveraged
dual-base advantages implemented strategies such as key market improvement and core region
breakthroughs and promoted volume growth in markets like express delivery and ports. Domestic
sales of traditional medium- and heavy-duty trucks ranked first in China for ten consecutive years;
terminal market share in 12 provinces including Hebei Shanghai and Henan ranked strongly at
the top.Overseas Market Catch-up and Volume Increase Battle: Accelerated the implementation of
the “SPRINT 2030” internationalization strategy and planned the construction of 8 overseas
subsidiaries. Created a highly competitive product portfolio with export sales volume reaching a
new high; deepened localized operations and accelerated market layout. Built a brand-new
overseas network and new progress was made in the layout of Jiefang’s international
transformation.New Energy Leapfrog Growth Battle: Firmly positioned as “No. 1 in the new energytransformation of traditional vehicle enterprises” in the commercial vehicle industry. Focused on
core scenarios such as steel mills and coal mines strengthened products channels models and
customer operations solidified the foundation and created differentiated competitiveness. Sales
of new energy medium- and heavy-duty trucks remained leading in the industry throughout the
year.Cost Reduction Revenue Expansion and Profit Improvement Battle: Centered on the “threeconsciousnesses” of “operating consciousness responsibility consciousness and proactiveconsciousness” and thoroughly implemented the “11614” work methodology. Established a
refined management system. Implemented upgraded management and control for large costs and
expenses. Through R&D-procurement integration production-sales synergy and business-finance
integration all staff in all domains achieved extreme cost reduction. Synergized efforts from three
dimensions: material cost reduction expense compression and revenue expansion to build a
value creation system for the entire process and multiple links.
(5) Eight key tasks were effectively advanced providing a solid guarantee for the
Company’s development
Deepened reform to unleash potential. Completed marketing reform. Built marketing
assault teams and launched the “Million-Yuan Salary” incentive. Fully stimulated the combat
26Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
effectiveness of front-line teams. Integrated manufacturing achieved unification of resources and
decision-making; constructed an overseas business management system and completed the
process construction of the four core business areas of marketing sales service and channels
achieving key breakthroughs from scratch.Fully promoted project-based management. Established a project decoding flow
mechanism targeting “operating goal achievement + medium and long-term capability building.”
Systematically planned company-level key projects. Innovated project management models. Built
a project center management platform to improve management synergy efficiency. Improved the
project evaluation and incentive mechanism to fully stimulate the breakthrough momentum of
project teams.Strengthened strategic management. Completed over 30 key insight projects over 130
issues of major information newsletters and over 10 issues of market analysis monthly reports.Strengthened joint venture cooperation. Promoted the implementation of equity investment
projects and strategic cooperation projects. Released the “100-Billion-Yuan Financial Pool”
providing stronger momentum for long-term development. Strengthened brand unification and
“Dual Carbon” management. The “Jiefang” brand won the “Excellent Product Brand” awarded by
the State-owned Assets Supervision and Administration Commission; the Company obtained the
first product carbon footprint certificate for commercial vehicles issued by the China Quality
Certification Center.Vigorously grasped digital and intelligent transformation coordinately promoted nearly
40 major digital and intelligent projects with 8 systems successfully launched and over 20
systems completing integration and optimization. Deepened data governance and application
completed the construction of 80+ analysis models and over 10 AI scenario applications such as
“Jiefang Xiaoge” and further leveraged data value.Strengthened the building of talent teams deepened the “merit-based promotion anddemotion” mechanism for cadre talents and conducted evaluations and re-evaluations of high-
skilled talents. For key fields such as new energy and overseas introduced professional technical
talents; assembled marketing assault teams and established talent selection cultivation and
incentive mechanisms.In terms of integrated manufacturing regarding supply and procurement centered on the
27Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
“Three-Year Quality Breakthrough Action” promoted the improvement of supply quality
strengthened supply guarantee resilience proactively planned for new energy resources and
diversified reserves; in terms of engineering technology improved the layout of emerging
industries with over 10 key investment projects successfully completing feasibility study
approvals and over 10 investment projects completed; in terms of product SOP (Start of
Production) preparation production preparation projects for key platforms were successfully put
into operation; in terms of intelligent manufacturing technology coordinately promoted technical
collaborative reserves successfully forming over 370 technical accumulations such as vision-
guided assembly; in terms of production logistics strengthened delivery assurance and made
every effort to enhance demand guarantee capabilities.Strengthened capital operations strengthened Market Value Management enhanced themanagement of participating companies improved the governance effectiveness of the “threeboards” (Shareholders’ Meeting Board of Directors and Supervisory Board) solidified the
foundation for standardized operations and fully supported external directors in performing their
duties. Jiefang Limited increased capital in the joint venture Jiefang Times and by building the
brand-new leasing business brand “Jing E-Lease” drove the transformation of China’s
commercial vehicle industry toward green and integrated solutions. Additionally the Company
has maintained high-quality information disclosure and received an A-level evaluation for
information disclosure from the Shenzhen Stock Exchange for five consecutive years.Strengthened brand building in the capital market comprehensively shaped a positive image in
the capital market and boosted investor confidence.Enhanced safety safeguarding capabilities. In terms of safety and environmental
protection the Company implemented the production safety responsibility system for all staff
deepened the integrated construction of the EHS (Safety Environment and Energy) system
thoroughly implemented the green development philosophy vigorously promoted energy saving
low carbon and resource recycling and rapidly implemented the Dual Carbon strategy; in termsof compliance risk auditing formulated and launched the “Prioritizing Four Dimensions andBuilding Foundation with Four Chains” strategy and coordinately promoted quality and
efficiency improvements in the four major fields of rule of law risk control compliance and
auditing; in terms of confidentiality management followed the “1134” work approach
implemented the “410” commercial secret project continuously improved the capabilities of the
28Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
confidentiality management system and achieved the “Three-Tier Security” goals for state secrets
work secrets and business secrets.
2. Revenues and Costs
(1) Composition of operating income
Unit: CNY
2025 2024 Year-on-
Proportion Proportion Year
Amount in in
Increase
Operating Amount Operating and
Income Income Decrease
Total operating
income 62678001039.04 100% 58581106258.53 100% 6.99%
By industries
Automobile
industry 62678001039.04 100.00% 58581106258.53 100.00% 6.99%
By products
Commercial
vehicles 58087328191.81 92.68% 54019490190.05 92.21% 7.53%
Spare parts and
others 4590672847.23 7.32% 4561616068.48 7.79% 0.64%
(2) Information about industries products regions and sales models accounting for more
than 10% of the Company’s operating revenue or operating profit
□Applicable □Not applicable
Unit: CNY
Increase/D Increase/D
Increase/D
ecrease of ecrease of
ecrease of
Operating Gross
Gross Operating
Income Profit Rate
Operating income Operating Costs Profit Cost over
over the over the
Rate the Same
Same Same
Period of
Period of Period of
Last Year
Last Year Last Year
By industries
Automobile Increased
62233813433.1058029080171.906.76%9.60%8.42%
industry by 1.02%
29Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
By products
Commercial Increased
58087328191.8154478254386.876.21%7.53%6.37%
vehicles by 1.02%
Spare parts Decreased
4146485241.293550825785.0314.37%50.12%53.81%
and others by 2.05%
The main business data of the Company for the latest year adjusted according to the statistical
criteria at the end of the reporting period in the event of any adjustment to the statistical criteria
of the Company’s main business data during the reporting period
□Applicable□Not applicable
(3) Whether physical sales revenue of the Company is greater than the labor service revenue
□Yes □No
Year-on-Year
Industry
Item Unit 2025 2024 Increase and
Classification
Decrease
10 thousand
Sales quantity 28.00 25.11 11.52%
vehicles
Automobile Production 10 thousand 27.18 24.87 9.30%
industry output vehicles
Storage 10 thousand
1.101.92-42.60%
amount vehicles
Note: The above figures are based on statistical criteria.Reasons for year-on-year changes of relevant data by more than 30%
□Applicable □Not applicable
The decrease in inventory was mainly due to factors such as increased sales volume.
(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 Classification
30Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Unit: CNY
2025 2024 Year-on-
Industry Proport Proportio Year
Classificati Item ion in n in Increase
on Amount AmountOperati Operatin and
ng Cost g Cost Decrease
Material
Automobile 56270200000.00 96.58% 48826962758.10 88.92% 15.24%
cost
industry
Others 1991838619.09 3.42% 6081113765.33 11.08% -67.25%
Product Classification
Unit: CNY
2025 2024 Year-on-
Product Proportio Proportion Year
Classific Item n in in Increase
ation Amount AmountOperatin Operating and
g Cost Cost Decrease
Commer Commer
cial cial 54478254386.87 93.51% 51214832226.59 93.27% 6.37%
vehicles vehicles
Spare Spare
parts and parts and 3783784232.22 6.49% 3693244296.84 6.73% 2.45%
others others
Note: None
(6) Whether the consolidation scope is changed in the reporting period
□Yes □No
On September 4 2025 the Company invested in establishing Jiefang Best Co. Ltd.On November 9 2025 the Company invested in establishing Jiefang Saudi Arabia Co. Ltd.
(7) Significant changes or adjustments in business products or services of the Company in
the reporting period
□Applicable□Not applicable
31Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
(8) Information about main customers and main suppliers
Information about main customers of the Company
Total sales amount of the top five customers (CNY) 7103406449.57
Proportion of total sales amount of the top five customers
11.33%
in total annual sales amount
Proportion of sales of related parties in total annual sales of
6.31%
the top five customers
Information about the top 5 customers of the Company
Proportion in Total
S/N Customer Name Sales (CNY)
Annual Sales
FAW Jiefang Fujie (Tianjin)
12186929424.183.49%
Technology Industry Co. Ltd.Jiefang Times New Energy
21768437137.192.82%
Technology Co. Ltd.
3 Customer 1 1286027709.58 2.05%
4 Customer 2 944508236.99 1.51%
5 Customer 3 917503941.63 1.46%
Total -- 7103406449.57 11.33%
Other information about main customers
□Applicable□Not applicable
Information about main suppliers of the Company
Total purchase amount of the top five suppliers (CNY) 17279466433.88
Proportion of total purchase amount of the top five suppliers in
30.71%
total annual purchase amount
Proportion of the purchase amount of related parties in the total
5.53%
annual purchase amount of the top five suppliers
Information about the top 5 suppliers of the Company
Proportion in Total
Purchase Amount
S/N Name of Supplier Annual Purchase
(CNY)
Amount
1 Supplier 1 7205922828.84 12.81%
2 Supplier 2 6058998703.54 10.77%
32Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
3 China FAW Group Co. Ltd. 1556426935.91 2.77%
4 Fawer Auto Parts Co. Ltd. 1554626359.24 2.76%
5 Supplier 3 903508616.35 1.61%
Total -- 17279483443.88 30.71%
Other information about main suppliers
□Applicable□Not applicable
3. Cost
Unit: CNY
Year-on-
Year Descriptio
2025 2024 Increase n of Major
and Changes
Decrease
Sales expenses 1333918967.92 1273327595.92 4.76%
Administrative
1440144286.031780652477.10-19.12%
expenses
Financial
-602876102.30-805971666.6425.20%
expenses
R&D expenses 2283177259.70 2409485641.76 -5.24%
4. R&D Investment
□Applicable □Not applicable
Expected Impact
Name of
Project on the Company’s
Main R&D Project Purpose Proposed Objectives
Progress Future
Projects
Development
To respond to Maintain the high-end Strongly support
competition from positioning of products FAW Jiefang’s
J7 Series
imported vehicles pursue excellent quality strategic goal of
Derivative
and joint venture Verification and improve product becoming a
Modelsproducts the phase quality continuously in “domestic firstDevelopmentCompany follows the efficient long- world-class”
Projectthe “domestic first distance trunk express enterprise andworld-class” market create greater contribute highly
33Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
enterprise value for users expand competitive
development the market capacity of products to the
strategy fully and high-end vehicle Company’s
independently products year by year product layout
develops a realize double sales during the 15th
domestic high-end volume and lead the Five-Year Plan
heavy-duty truck industry development. period.benchmark and
achieves a new
leap in the quality
of domestically
produced trucks.Targeting core markets
such as general freight
express freight fresh
agricultural products Enhance the
(Green Channel) and competitiveness
In the current urban construction muck of FAW Jiefang
situation where transport the Company Qingdao medium-
JH6 products have maintains the mid-to- and heavy-duty
JH6 series
been on the market high-end positioning of vehicle product
expanded Production
for eight years it is its products. By lines and
models Ramp-up
urgent to upgrade optimizing complete contribute highly
development Phase
the JH6 platform to vehicle reliability competitive
project
ensure the leading comfort and TCO (Total products to the
competitiveness of Cost of Ownership) it Company’s
the Jiefang brand. strengthens the product layout for
advantages of highway the 15th Five-
vehicles in the mid-to- Year Plan period.high-end market and
renews the brand image
of engineering vehicles.To respond to the Targeting markets such Lay the
Light-duty trend of as express delivery foundation for the
New Energy electrification the express freight Company’s
Lingtu BEV Company supermarkets and overall new
(Battery continuously resources the Company energy
Developmen
Electric improves the high- completed the transformation
t phase
Vehicle) end attributes of development of a new enhance the core
Product FAW Jiefang light energy BEV exclusive competitiveness
Development trucks develops a platform. By improving of new energy
Project new energy reliability introducing light truck
exclusive platform new interior and exterior products and
34Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
and supports the styling reducing power contribute highly
enhancement of the consumption and competitive
core increasing the intelligent products to the
competitiveness of experience it enhances Company’s
complete vehicle the Company’s new product layout for
products. energy light truck the 15th Five-
product advantages Year Plan
achieves rapid sales development.growth and creates an
industry benchmark.Complete the
layout of the three
major technology
Cover typical scenarios routes reserve
Develop fuel cell
of the “3+2” fuel cell fuel cell product
products achieve
demonstration city development
full coverage of the
clusters complete the technology
three major
development of full- support the
technology routes
series products including development of
meet the
fuel cell tractor units in-house fuel cell
requirements for
fuel cell cargo trucks products achieve
Fuel Cell demonstration
fuel cell special purpose industry
Product operation subsidies Developmen
vehicles and fuel cell leadership in the
Development continuously t phase
logistics vehicles jointly Company’s fuel
Project expand
apply for demonstration cell products
demonstration
operation projects with establish FAW
application
mainstream fuel cell Jiefang’s
scenarios for fuel
system partners build an benchmark image
cell products and
in-house fuel cell brand in the new energy
support the volume
and achieve batch sales industry and
growth of new
and operation of fuel cell support the
energy products.products. Company’s
continuous
leadership in the
new energy track.Develop ADAS Develop intelligent Through the
Jiefang (Advanced Driver vehicle series products commercial
intelligent Assistance realize aided driving in operation of
driving Systems) and Developmen trunk logistics scenarios emerging
product closed-area high- t phase and high-level intelligent industries in
development level autonomous driving in multiple multiple
project driving commercial restricted-region scenarios the
vehicle products scenarios such as ports Company’s in-
35Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
based on customer and plants and develop house R&D
needs so as to help full-stack intelligent capability and
Jiefang realize the driving software and competitiveness
commercialization hardware core in the
of the intelligent technologies by itself to autonomous
vehicle industry in create independent core driving field are
a short period. competitiveness. continuously
improving and
operational
experience is
rapidly
accumulated
supporting the
Company’s
strategic
transformation to
become a“China’s firstworld-class”
green and
intelligent
transportation
solution provider.Address
compliance
Establish the
requirements of Ensure that all
corresponding
Network domestic and new platform
management system
Security international vehicle models
according to national
Management regulations Constructio submitted for
mandatory standards
System regarding vehicle n stage regulatory filing
while meeting domestic
Consulting information will meet vehicle
and international system
Project security and type approval
certification
software update requirements.requirements.management
systems.By promoting the Develop mid-to-high-end Create user
platformization of IVI platform products to operation
Vehicle
the IVI (In-Vehicle enhance the value touchpoints on
Infotainment
Infotainment) Developmen features of the vehicle’s the IVI system to
System
system improve t phase intelligent experience; enhance the
Standardizati
product update develop a family-style competitiveness
on Project
efficiency and HMI (Human-Machine and brand
empower the Interface) a combination influence of the
36Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
upgrade of the of application software complete vehicle
vehicle’s intelligent and a set of standardized products through
experience. interfaces that can be a high-quality
expanded for application experience.across multiple vehicle
models.Enhance
intelligent
Deploy the Large
interactive
Language Model (LLM)
Build FAW experiences for
and AI agent
Jiefang’s Large users direct
development platform on
Language Model customers to
FAW Jiefang’s cloud
(LLM) and AI FAW Jiefang
build an in-house central
agent service vehicle products
AI Intelligent model for understanding
platform targeting and intelligent
Assistant user intents related to
key scenarios such Developmen connected
Platform vehicle usage and
as vehicle usage t phase services
Development maintenance and
and maintenance strengthen the
Project develop Jiefang’s
and focusing on connection
exclusive AI agent
creating Jiefang’s between the
services to achieve
exclusive AI agent Company and
adaptation and
services on the users and
implementation on the
vehicle side. enhance the
IVI (In-Vehicle
competitiveness
Infotainment) system.of vehicle
products.To respond to the
implementation of
the national
Complete Vehicle-Road- Enhance the
Vehicle-Road-
Cloud Integration V2X Company’s
Cloud Integration
(Vehicle-to-Everything) Intelligent and
Vehicle- pilot work actively
terminal verification Connected
Road-Cloud participate in the Developmen
demonstrate smart Vehicle (ICV)
Integration implementation t phase
sanitation vehicles within product
Pilot Project plans of pilot cities
factory areas and deploy competitiveness
and build a pipeline
operational vehicles in and brand
of the Company’s
sanitation scenarios. influence.Vehicle-Road-
Cloud Integration
products.Overseas To meet the IoV Complete the Enhance the
Developmen
Internet of needs of overseas development and digitalization and
t phase
Vehicles regional dealers deployment of the IoV connectivity
37Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
(IoV) service stations platform in some competitiveness
fleets drivers and overseas regions and service added
other users value of the
complete the complete vehicle
launch of IoV products in
products such as overseas markets.fleet management The project will
and operations accumulate core
management in capabilities in
Saudi Arabia. overseas IoV
platform
construction
operation and
compliance
forming a
replicable and
scalable model to
support the
Company’s
overseas business
scale-up and the
advancement of
its
internationalizatio
n strategy.Provide
competitive drive
Complete the
Develop axle and AMT
development of drive
transmission transmission
axle and AMT products.products products for the
Improve the
Upgraded complying with Company’s
comprehensive
transmission noise regulations vehicle platform
Developmen competitiveness of
product and fuel improve the
t phase assembly products to
development consumption competitiveness
make sure that the
project regulations to of vehicle
comprehensive index is
improve the products and
higher than that of main
competitiveness of support the
competitive products at
complete vehicles. Company to lead
home and abroad.the industry
continuously.Engine Develop green and Complete the Provide new
Developmen
Upgrade low-carbon engine development of heavy- engine products
t phase
Product products improve duty Natural Gas (NG) for the
38Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Development the thermal heavy-duty diesel and Company’s
Project efficiency of medium-duty diesel vehicle platform
engine products engine products improve enhance the
reduce energy product fuel economy competitiveness
consumption and and power performance of vehicle
support the and achieve products and
enhancement of the comprehensive support the
competitiveness of competitiveness superior continuous
the complete to domestic core increase of the
vehicle products. competitors. Company’s
vehicle product
market share.Develop BEV
Provide new in-
(Battery Electric
house electric
Vehicle) zero- Complete the
drive assembly
carbon in-house development of electric
New Energy products for the
new energy drive axle and electric
Powertrain Company’s new
powertrain Developmen drive transmission
Product energy vehicle
products to support t phase products achieving
Development platform
the enhancement of comprehensive efficiency
Project supporting the
the competitiveness superior to domestic core
volume growth of
of new energy competitors.new energy
complete vehicle
vehicles.products.Provide in-house
integrated thermal
Develop a new management
energy in-house Complete the products for the
integrated thermal development of dual- Company’s new
management evaporator refrigeration energy vehicle
system with technology waste heat platform
New Energy integrated flow utilization technology effectively
Integrated channel plate to and large flow channel reducing the
Developmen
Thermal support the plate technology on both energy
t phase
Management enhancement of the the water side and consumption level
Technology energy refrigerant side of the complete
consumption achieving comprehensive vehicle and
competitiveness of indicators superior to supporting the
new energy major domestic and volume growth
complete vehicle international competitors. and quality
products. improvement of
new energy
vehicles.
39Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Master core technologies
Develop fuel cell Provide in-house
such as high-efficiency
zero-carbon in- fuel cell assembly
and low-cost membrane
house new energy products for the
electrodes high-mass-
powertrain Company’s new
transfer and long-life
products with energy vehicle
High-Power bipolar plates and
strong power and platform support
High- temperature-humidity
low hydrogen Developmen the
Efficiency adaptive control improve
consumption to t phase competitiveness
Fuel Cell product power
support the leadership of new
Technology performance and fuel
enhancement of the energy vehicles
economy and achieve
competitiveness of and seize new
comprehensive
new energy opportunities in
competitiveness superior
complete vehicle hydrogen energy
to domestic core
products. development.competitors.Develop a complete
solution of fully self-
Develop an L4 developed drive-by-wire
system technology (x-by-wire) chassis Strongly support
platform for factory vehicle-side autonomous the Company’s
logistics achieve driving and cloud factory intelligent
the implementation control platform break transformation
Autonomous
of unmanned parts through technologies and form a
Factory
transfer scenarios Verification such as collaborative growth point for
Logistics
in the factory area phase planning of small double- the Company’s
Vehicle
and solidify the in- trailer towing trains and autonomous
Technology
house development Vehicle-Road-Cloud driving
capability for collaborative cloud implementation in
autonomous control platform low-speed
driving in low- achieving comprehensive scenarios.speed scenarios. indicators superior to
domestic core
competitors.Information about R&D personnel of the Company
2025 2024 Change Ratio
Number of R&D
339733182.38%
personnel (person)
Proportion of R&D
17.77% 16.74% Increased by 1.03%
personnel
Educational background structure of R&D personnel
40Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Doctor’s degree 53 48 10.42%
Master’s degree 1190 1075 10.70%
Bachelor’s degree 2136 2183 -2.15%
Junior college degree 18 12 50.00%
Age structure of R&D personnel
Under 30 years old 1448 1316 10.03%
30-40 years old 1165 1284 -9.27%
41-50 years old 578 524 10.31%
51-60 years old 206 194 6.19%
Information about R&D investment of the Company
Change
20252024
Ratio
Amount of R&D Investment (CNY) 2581823001.77 2800223762.41 -7.80%
Proportion of R&D Investment in Decreased by
4.12%4.78%
Operation Income 0.66%
Capitalization amount of R&D
298645742.07390738120.65-23.57%
investment (CNY)
Proportion of capitalized R&D Decreased by
11.57%13.95%
investment in total R&D investment 2.38%
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
5. Cash Flow
Unit: CNY
Year-on-
Item 2025 2024
Year
41Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Increase
and
Decrease
Subtotal of cash inflows from
62965832664.9756111632136.7412.22%
operating activities
Subtotal of cash outflows from
60280800232.3161961918443.79-2.71%
operating activities
Net cash flows from operating
2685032432.66-5850286307.05145.90%
activities
Subtotal of cash inflows from
31245274726.405099293082.54512.74%
investment activities
Subtotal of cash outflows from
33580120586.324139412784.68711.23%
investment activities
Net cash flows from investment
-2334845859.92959880297.86-343.24%
activities
Subtotal of cash inflows from
187850208.641999915089.75-90.61%
financing activities
Subtotal of cash outflows from
261913625.64830253558.33-68.45%
financing activities
Net cash flows from financing
-74063417.001169661531.42-106.33%
activities
Net increase in cash and cash
272035961.34-3717512950.18107.32%
equivalents
Description on main factors influencing major changes in relevant data on a year-on-year basis
□Applicable □Not applicable
(1) “Net cash flows from operating activities” increased by 145.90% compared to the previous
year primarily due to an increase in cash inflows from operating activities.
(2) “Sub-total of cash inflows from investing activities” increased by 512.74% compared to the
previous year mainly attributable to the increase in cash received from recovery of investments.
(3) “Sub-total of cash outflows from investing activities” increased by 711.23% compared to the
previous year primarily due to the increase in cash paid for investments during the current period.
(4) “Net cash flows from investing activities” decreased by 343.24% compared to the previous
year primarily due to the increase in cash paid for investments during the current period.
42Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
(5) “Sub-total of cash inflows from financing activities” decreased by 90.61% compared to the
previous year primarily attributable to the impact of raising funds through the issuance of shares
to specific targets in the previous year.
(6) “Sub-total of cash outflows from financing activities” decreased by 68.45% compared to the
previous year mainly due to the decrease in cash dividend distributions during the current period.
(7) “Net cash flows from financing activities” decreased by 106.33% compared to the previous
year primarily due to the impact of raising funds through the issuance of shares to specific targets
in the previous year.
(8) “Net increase in cash and cash equivalents” increased by 107.32% compared to the previous
year mainly attributable to the increase in net cash flows from operating activities.Description on 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
For details please refer to Section VIII Financial Report VII. Notes to Items in the Consolidated
Financial Statements 63 “Supplementary Information to the Cash Flow Statement”.V. Analysis of Non-main Business
□Applicable□Not applicable
VI. Analysis of Assets and Liabilities
1. Major Changes in Asset Composition
Unit: CNY
End of 2025 Early 2025 Desc
ripti
Increas
on
e/Decre
Proportion Proportio ofase in
Amount in Total Amount n in Total MajProport
Assets Assets orion
Cha
nges
Monetary
22325269010.0530.79%19852961021.6627.29%3.50%
capital
Accounts 5275130370.45 7.28% 7067296142.54 9.71% -2.43%
43Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
receivable
Contract assets 70941700.86 0.10% 14455542.05 0.02% 0.08%
Inventories 13415413449.26 18.50% 10117213109.97 13.91% 4.59%
Investment
44712225.120.06%52835976.310.07%-0.01%
properties
Long-term
equity 1353025361.23 1.87% 1176288461.09 1.62% 0.25%
investments
Fixed assets 10993086978.42 15.16% 11198300572.20 15.39% -0.23%
Project under
131371243.360.18%688181815.220.95%-0.77%
construction
Right-of-use
60896263.980.08%104360320.570.14%-0.06%
assets
Short-term
50000000.000.07%0.00%0.07%
loans
Contract
2603137668.683.59%2430554164.503.34%0.25%
liabilities
Long-term
136000000.000.19%0.00%0.19%
loans
Lease
1690109.490.00%27431600.640.04%-0.04%
liabilities
High proportion of overseas assets
□Applicable□Not applicable
44Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
2. Assets and Liabilities Measured at Fair Value
□Applicable □Not applicable
Unit: CNY
Provision Purchas
Sales
Profits and Losses Accumulated for e
Amoun Other
from Changes in Changes in Fair Impairment Amoun
Item Opening Balance t in the Chang Closing Balance
Fair Value for the Value through in the t in the
Current es
Current Period Equity Current Current
Period
Period Period
Financial assets
1. Investment in other
540066528.00-329363366.40270076838.40210703161.60
equity instruments
Total 540066528.00 -329363366.40 270076838.40 210703161.60
Financial liabilities
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 PeriodFor details please refer to Section VIII Financial Report VII. Notes to Items in the Consolidated Financial Statements 24 “Assets withRestricted Ownership or Right of Use”.
45Full Text of Annual Report 2025 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 (CNY)
(CNY)
192925727.36790649224.63-75.60%
2. Major Equity Investments Acquired in the Reporting Period
□Applicable □Not applicable
Unit: CNY
Name Invo
of Inve Inve Progres lved
Investe Main stme
Capi Estim Profit and Loss
Busines nt Investment
Share stme Prod s as of in
e Amount Proportio
tal
Sour Partners nt uct Balance
ated of Investment Litig Date of Disclosur
Compa s Met n Hori type Sheet
Reven in the Current ation Disclosure e Index
hod ceny zon Date
ue Period or
Not
Contemp Com http://ww
Jiefang Energy- orary plete w.cninfo.Times Amperex vehi com.cn/n
New saving
Energy technol
Capi Technolo cle ew/disclo
ogy tal
Own Lon
Technol incre 191000000.00 47.03% Fun
gy Co. g- and Comple 0.00 4754785.30 No November sure/detai
promoti ds Limited batte ted 28 2025 lplate=sogy on ase (CATL)
term ry zse&orgI
Co.Ltd. services
TELD leasi d=gssz00
New ng 00800&s
Energy busi tockCode
46Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Co. Ltd. ness =000800
&announ
cementId
=122483
1708&an
nouncem
ent
Total -- -- 191000000.00 -- -- -- -- -- -- 0.00 4754785.30 -- -- --
47Full Text of Annual Report 2025 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.
48Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
VIII. Sale of Major Assets and Equity
1. Sale of MajorAssets
□Applicable □Not applicable
Whethe
Whe
r
ther Whe
Implem
Net Profit All ther
Proportio ented
Contributed Rel Rel Prop All
n of Net as
by the Asset ate ati erty Cred
Profit Schedul
to the Listed Prici d ons Righ its
Contribu ed. If
Company ng Par hip ts of and
ted by Not Date
Cou Transaction from the Prin ty wit the Debt
Date Asset Provide of
nter Assets Price (CNY Beginning Effect of Sale on the ciple Tra h Asse s
of Sales to the Disc Disclosure Index
part Sold 10 of the Company of nsa the ts Invo
Sale the Reason losur
y thousand) Current Asse cti Co Invo lved
Listed s and e
Period to t on unt lved Hav
Compan the
the Date of Sale or erp Hav e
y in the Measur
Sale (CNY No art e been
Total Net es
10 t y been Tran
Profit Taken
thousand) Tran sferr
by the
sferr ed
Compa
ed
ny
Sanh Releva This expropriation is Asse Mar https://www.cninf
March
e nt part of government t N/ ch o.com.cn/new/dis
31 21506.21 14313.81 19.76% No Yes Yes Yes
Sub- buildin planning. The land appr A 08 closure/detailplat
2025
distr gs and buildings were aisal 2025 e=szse&orgId=gs
49Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
ict land expropriated to meet prici sz0000800&stock
Offi and the construction needs ng Code=000800&a
ce ancillar of the Chengdu Ring nnouncementId=1
Xind y Ecological Zone. As a 222743269&anno
u facilitie passive transaction uncement
Distr s of the Company has
ict FAW actively responded to
Peop Jiefang the government’s
le’s Autom ecological protection
Gov otive planning and
ern Co. cooperated with the
ment Ltd. implementation of this
located work. This will not
Che in affect the normal
ngdu Xindu production and
District operations of the
Company and FAW
Chengd Jiefang Automotive
u Co. Ltd.
2. Sale of Major Equity
□Applicable□Not applicable
IX. Analysis on main holding and joint-stock companies
□Applicable □Not applicable
Major subsidiaries and joint-stock companies affecting over 10% of the net profit of the Company
Unit: CNY 10 thousand
50Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Company Compan Registered Operating
Main Business Total Assets Net Assets Operating Income Net Profit
Name y Type Capital Profit
Development
FAW
manufacturing
Jiefang Subsidiar
and sales of 1080301.25 7052133.96 1961867.26 6739149.04 36723.77 79959.93
Automotiv ies
vehicles and
e Co. Ltd.parts
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
Implement the Company’s “Four Countries and Nine Locations”
global R&D layout fully leverage the concentration of high-level
Jiefang Best Co. Ltd. Establishment by investment
talent in each region and harness global expertise to enhance
innovation capabilities.Strive to optimize and strengthen the layout and expansion of
Jiefang Saudi Arabia Co. Ltd. Establishment by investment overseas markets supporting the comprehensive implementation of
the Company’s overseas industrial strategic planning.
51Full Text of Annual Report 2025 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
In the coming period the commercial vehicle industry will enter a key period of internal and
external transformation.From the perspective of the macro environment: The world situation is complex and
differentiated opportunities are gradually emerging. The domestic economy is stable and
improving domestic demand policies continue to exert influence and the commercial vehicle
industry is growing steadily. Consumer confidence is recovering slightly and the highway vehicle
market remains stable; infrastructure projects are starting successively and engineering vehicles
are expected to rebound.From the perspective of market demand: Domestic replacement demand is strong and
policies for phasing out aging trucks continue; export demand remains high with markets such as
Southeast Asia becoming the main drivers of growth; New Energy Vehicles (NEVs) benefiting
from the dual drivers of policy and market continue to see rising penetration rates; Intelligent and
Connected Vehicles (ICVs) are accelerating implementation and becoming a key to future
competition.From the perspective of industry competition: International brands are exerting efforts in the
Chinese market emerging automakers (new forces) are entering the heavy-duty truck track
traditional enterprises are under impact bottom-tier enterprises are accelerating their exit and the
industry is entering a period of accelerated consolidation. Overseas markets have become the
main battlefield for competition and market competition is becoming increasingly fierce.
2. Development Strategy and Business Plan of the Company
In 2026 the Company will be guided by Xi Jinping Thought on Socialism with Chinese
Characteristics for a New Era fully implement the spirit of the 20th National Congress of the
CPC and all plenary sessions of the 20th CPC Central Committee and deeply implement the
spirit of General Secretary Xi Jinping’s important instructions on the work of central enterprises
and the spirit of General Secretary Xi Jinping’s important speech during his inspection of China
52Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
FAW unswervingly upholding and strengthening the leadership of the Party. Throughout the year
following the “1347” overall strategy (namely focusing on one goal anchoring the development
direction of “Three Jiefangs” winning the four major breakthrough battles and performing seven
key tasks) the Company will focus on operations improving quality and reducing costs
prioritizing sales volume expanding light-duty vehicles and deeply cultivating overseas markets.With all staff working hard on breakthroughs and accelerating transformation toward the new the
Company will make every effort to win the opening battle of the “15th Five-Year Plan” andaccelerate the struggle toward becoming a “world-class enterprise and a century-old nationalbrand”!
(1) Focusing on the strategic goal of “China’s No. 1 and World-Class” resolutely
expanding the market and increasing volume improving volume through quality and
accelerating the expansion of the Jiefang brand’s market scale.First focusing on market expansion and volume increase and accelerating marketing
capability enhancement. Focusing on the annual goals exerting full-line efforts in three areas:
expanding the advantages of traditional medium- and heavy-duty trucks ensuring leadership in
new energy medium- and heavy-duty trucks and increasing the sales volume of light-duty trucks.Second continuing to implement the Three-Year Quality Breakthrough Action vigorously
improving the market reputation of FAW Jiefang and strengthening the leading competitiveness
of the Company’s product quality.
(2) Anchoring the development direction of the “Three Jiefangs” and accelerating the
process of transformation toward the new.First focusing on “Tech Jiefang” with intelligence as the core to enhance transformation
momentum. In the intelligence field accelerating the promotion and application of ADAS
(Advanced Driver Assistance Systems) vehicle products improving the competitiveness of
autonomous driving products building brand-new product growth points and continuously
optimizing the intelligent experience for users. In the traditional field focusing on mastering
engine energy-saving technologies. In the new energy field breaking through technologies such
as megawatt super-charging. Regarding resource support accelerating the cultivation of a high-
quality intelligent technology talent echelon and accelerating the construction of solid support for
“Tech Jiefang”.
53Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Second focusing on “Green Jiefang” and accelerating the construction of “leadingadvantages” in the new track transformation. Improving the production and sales scale of new
energy and carbon footprint management capabilities and firmly promoting product
transformation and serialization. BEV (Battery Electric Vehicle) products: Accelerating the
development of derivative models such as the J6 short-haul BEV platform and J7 medium- and
long-haul models. Light-duty trucks: Building brand-new platform products such as new energy
mini-truck and pickup products and completing the commercial vehicle matrix. Hydrogen energy
products: Accelerating the construction of the hydrogen vehicle industry development community
and creating a new ecosystem for the hydrogen industry. Traditional vehicle products: Deepening
the upgrade of J7 Pioneering and Leading Version Edition high-end products and launching new
products to support the low-energy-consumption advantages of traditional complete vehicles.Third focusing on “International Jiefang” and building the primary engine for growth
with a “better layout”. Accelerating the process of international transformation across the entire
system strengthening the global allocation of management resources and promoting a leap in
international capabilities throughout the system. Centering on the full coverage of the process
systems of overseas subsidiaries and constructing a standardized and normalized overseas
operation process architecture. Accelerating the implementation of subsidiaries and carrying out
in-depth localized transformation. Strengthen overseas marketing system capabilities focusing on
improving the four core capabilities of “channels services brands and finance” accelerating the
transition to overseas full-domain market breakthroughs consolidating the strategic market
foundation and increasing resource investment in untapped markets.
(3) Resolutely win the four major battles fully promote new breakthroughs and
progress in “capacity improvement quality enhancement and efficiency increase” in
operations
First is the breakthrough battle for comprehensively improving operating quality and
efficiency. Closely track annual profit targets strengthen synergy and push forward with full
efforts. Strictly and meticulously control expenses and promote the simultaneous optimization of
standards prices and losses. Continuously focusing on key cost and expense modules such as
outsourcing auxiliary materials and maintenance set up special revenue-generating projects to
push forward. Strengthen the exploration of industrial chain value and cultivate diversified profit
growth points. Improve asset operation efficiency and tap into the value of existing assets.
54Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Second is the breakthrough battle for strengthening capital operations. Centering on the
“Three Jiefangs” direction accelerate the release of capital advantages and refresh the vitality
and image of FAW Jiefang in the capital market. Broaden financing channels and seize financial
policy opportunities. Use investment to strengthen and complement the industrial chain give full
play to the power of capital and promote industrial synergy. Strengthen Market Value
Management and reinforce the brand image in the capital market through multi-dimensional
measures.Third is the breakthrough battle for accelerating management efficiency improvement.Deepen the promotion of management transformation drive the organization to comprehensively
improve governance effectiveness and management efficiency and build a sustainable
competitive advantage. Optimize the top-level governance structure and improve governance
efficiency. Build an operation management platform to comprehensively improve centralized and
unified operation efficiency.Fourth is the breakthrough battle for improving risk prevention and control capabilities.Centering on the enterprise’s strategic transformation closely track key areas accelerate the
strengthening of systemic capabilities for risk identification prevention and resolution and
support the Company’s stable operation and leading development. Strengthen supply chain risk
prevention and control and improve the speed of response to abnormalities. Improve the
effectiveness of the “four-dimensional” compliance system. Build a solid financial risk defense
line and improve resource allocation efficiency. Strengthen the support of digital-intelligence
capabilities and build a solid foundation for full-domain compliance and security.
(4) Performing seven key tasks (strategic management supply and procurement
production logistics engineering technology talent team building safety escort capability
enhancement and Party building and improving Party conduct and upholding integrity) to
provide guarantee and support for the Company’s high-quality development.
3. Potential Risks in the Company’s Operations
(1) Industry competition risks
In 2026 the competitive landscape of the domestic commercial vehicle market will further
intensify and the industry will present a development trend where structural transformation and
competition for existing market share coexist. Under the dual pressure from traditional peers and
55Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
cross-sector enterprises market competition pressure and related risks continue to intensify.Leading enterprises in the industry continue to consolidate their advantageous positions and
increase investment in core fields such as New Energy Vehicles (NEVs) and Intelligent and
Connected Vehicles (ICVs) while continuously optimizing the fuel-saving and lightweight
performance of traditional fuel-powered heavy-duty trucks to adapt to the demand for rapid
transformation towards diversification and high-end development in downstream fields such as
logistics transportation and engineering construction making the struggle for market dominance
increasingly fierce. Meanwhile in 2026 exports have become a core growth pole for the industry
and leading enterprises are accelerating their international layout to further expand market space.In addition product homogenization in the market is prominent industry cut-throat competition
continues to escalate and market competition is becoming white-hot. In this context to safeguard
its existing market position and effectively respond to fierce competition there is a possibility that
the Company may increase investment during the market competition process leading to rising
operating costs.
(2) New Energy Market Competition Risks
The new energy commercial vehicle market is booming with its penetration rate
continuously increasing. The Company’s new energy business still needs to further consolidate
and expand its existing advantages. The R&D of new energy commercial vehicles requires
significant capital and manpower investment and the speed of technical iteration is fast. If the
Company fails to widen the gap with peers in core areas such as battery range charging support
and intelligent applications it will face a more intense competitive situation in the market.Meanwhile multiple factors including price fluctuations of key materials the difficulty of
expanding new energy new-mode businesses and intensified competition in market segments
further increase the uncertainty the Company faces in the new energy market.
(3) Overseas Market Expansion Risks
The strategic value of overseas markets for commercial vehicle enterprises is becoming
increasingly prominent. In the process of overseas expansion the Company faces numerous
obstacles and potential risks and such risks are more targeted. At the level of market expansion
the weak recovery of the global economy has led to continued soft demand for trucks in some
countries and regions. Some countries have further increased import tariffs on trucks and plan to
56Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
expand the coverage of the Carbon Border Adjustment Mechanism (CBAM) significantly
increasing the difficulty of truck exports. Meanwhile regulations and demands vary significantly
across different regions; new emission regulations in some regions have entered the
implementation preparation stage putting forward higher requirements for truck pollutant
emissions leading to a significant rise in corporate compliance and adaptation costs. At the
operational level the complex international environment has created uncertainty in achieving
overseas sales and profit targets; geopolitical fluctuations and policy adjustments in various
countries have further increased the risk of penalties for overseas operations. In addition the
overall overseas environment is complex and volatile and the complexity of business expansion
is high bringing certain challenges to the Company’s overseas business expansion in 2026.To address the above risks the Company has formulated the following measures:
First strengthening strategic analysis and improving product competitiveness. Combining
the Company’s strategy and identified growth opportunities make every effort to seize market
share in existing stocks and concentrate superior resources to ensure the achievement of market
competition goals. Focus on improving product premium capabilities strengthen multi-domain
coordination and collaboration and comprehensively enhance the overall competitiveness of
products. In the service field consolidate the foundation expand increments and seek
breakthroughs exploring new spaces for business growth at multiple levels and in all directions.In overseas markets increase the introduction of high-yield models and gradually improve the
market share of advantageous models. Deepen the construction of the performance management
system and give full play to the leading role of indicators to promote quality and efficiency
improvements in all tasks.Second consolidating the foundation of new energy business and comprehensively
strengthening competitive advantages. Expand the competitive advantages of existing products
accurately seize new energy market opportunities and combine innovative marketing schemes
with multiple measures to promote the achievement of business goals. Strengthen scenario
research and improve analysis accuracy to meet diverse market demands. Work closely with
partners to effectively reduce the impact caused by price fluctuations of key materials. Through
means such as financial empowerment continuously optimize the layout and development quality
of new businesses. Strengthen the dynamic monitoring of daily operations and capital status and
improve the early warning mechanism for risks to ensure that all matters are handled properly and
57Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
risks are controllable.Third improving overseas competitiveness and strengthening international market position.Increase resource investment in the R&D of overseas products deeply strengthen capacity
building for overseas product technology and regulations improve the adaptability of products to
overseas scenarios and enhance market competitiveness in destination countries. Strengthen
channel control and brand promotion efforts to provide strong support for the orderly
development of overseas business. Strengthen the identification collection and application of
policies and regulations related to products in overseas destination countries and improve the
localized adaptability of products. Continue to promote overseas localized operations and
accelerate the implementation of overseas KD cooperation projects; strengthen deep localized
cooperation with channels in destination countries continuously improve the risk control
mechanism for foreign exchange business enhance foreign exchange business management levels
and comprehensively use various means to scientifically reduce the impact of exchange rate
fluctuations. Establish and improve emergency plans for overseas security incidents and
strengthen the safety risk prevention awareness of overseas personnel. Through the above
measures promote the steady improvement of overseas competitiveness.XII. Reception Investigation Communication Interview and Other Activities in the
Reporting Period
□Applicable □Not applicable
Main
Content
Index of
s of
Type of Basic
Discuss
Receptio Reception Reception Recepti Informati
Reception Object ion and
n Time Location Mode on on of
Informa
Object Investiga
tion
tion
Provide
d
Meeting Operati http://w
ChinaAMC Huatai Securities
January room of Field Organiz on and ww.cninf
PSBC Huashang Fund PICC
8 2025 the Research ation
Penghua Fund develop o.com.cn
Company ment /new/dis
March Beijing Field Organiz Jt Asset Management Co. Ltd. plannin closure/s
31 2025 meeting Research ation China Life Pension Company g of the tockstoc
58Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
room Limited. Jilin Changbai Compa kCode=0
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Management Co. Ltd. relevant rgId=gss
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Guohai Auto Parts Co. Ltd.Sinolink Securities Co. Ltd.Haitong Securities Co. Ltd.Hengtai Securities Co.Ltd.Huaan Securities Co. Ltd.Huachuang Securities Co.Ltd.Huatai Securities Co. Ltd.Lianchu Securities Co. Ltd.Western Securities Co. Ltd.Southwest Securities Co. Ltd.China International Capital
Corporation Limited (CICC)
China Securities Co. Ltd. and
CITIC Securities Company
Limited
P5w.net Network“Investor platform Investors participating in FAWApril 14
Relations for online Others Jiefang 2024 Annual
2025
Interactive communic Performance PresentationPlatform” ation
P5w.net Network Investors participating in the“Investor platform Online Collective PerformanceMay 27
Relations for online Others Presentation of Listed
2025
Interactive communic Companies within thePlatform” ation Jurisdiction of Jilin
HSBC Jintrust Fund
Management Company
Limited. Huatai Proprietary
Meeting
Telephone The Goldman Sachs Group
August room of Organiz
communic Inc. Huatai Securities Co. Ltd.
25 2025 the ation
ation China Great Wall Securities Co.Company
Ltd. Industrial Securities Co.Ltd. China Securities Co. Ltd.Huafu Securities Kaiyuan
59Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Securities Guangyin Wealth
Management Minsheng
Securities Research Institute
China International Capital
Corporation Limited (CICC)
Sealand Securities Co. Ltd.Sealand Securities Research
Institute ICBC Credit Suisse
Fund Guotai Haitong Securities
Co. Ltd. Western Securities
Co. Ltd. Southwest Securities
Co. Ltd. UBS Huaxi
Securities Great Wall Wealth
Insurance Asset The Goldman
Sachs Group Inc. Zhonggen
Funds Jucapital Management
Co. Ltd. CITIC Securities
Company Limited Lianchu
Securities Co. Ltd. Hainan
Guoshi Private Fund China
Asset Management Zhongke
Richland Asset Management
Co. Ltd. Minsheng Securities
Co. Ltd. Shanghai Qinchen
Private Fund GF Securities Co.Ltd. AVIVA-COFCO
China Post Life Insurance Asset
Management Co. Ltd. Aviva-
COFCO Life Insurance Co.Ltd. CITIC Securities China
Securities Zhejiang Longhang
Asset Management Co. Ltd.China Great Wall Securities Co.Meeting
Novembe Telephone Ltd. Zean Private Equity Fund
room of Organiz
r 03 communic Management (Sanya)
the ation
2025 ation Partnership Enterprise (Limited
Company
Partnership) Sunshine Asset
Management Co. Ltd.Industrial Securities Co. Ltd.Southwest Securities Co. Ltd.Western Securities Co. Ltd.Xi’an Duncheng Investment
Management Co. Ltd. Wuxi
60Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Huili Investment Management
Center (Limited Partnership)
Tianfeng Securities Co. Ltd.Shenzhen Shangcheng Asset
Management Co. Ltd.Shanghai Qinchen Private Fund
Management Partnership
(Limited Partnership) Shanghai
Electric Group Finance Co.Ltd. Shanxi Securities
Company Limited UBS
Securities Co. Ltd. Ping An
Securities Ping An Fund
Nanjing Ruilan Private Fund
Minsheng Securities Co. Ltd.Longwin Asset Management
Co. Ltd. Lianchu Securities
Co. Ltd. Kaiyuan Securities
China Asset Management
Huaxi Securities Huaxi
Automobile Huatai Securities
Co. Ltd. Huachuang Securities
Co.Ltd. Guotai Haitong
Guojin Automobile Nanjing
Guohai Auto Parts Co. Ltd.Guangfa Automobile ICBC
Wealth Management Goldman
Sachs Founder Securities Co.Ltd. Dongwu Automobile
Northeast Securities TruValue
Asset Management Caitong
Securities Co. Ltd. Beijing
Shengxi Investment
Management Co. Ltd. Pleiad
Investment Advisors Limited
Nomura Asset Management Co.Ltd. HGNH International Asset
Management (SG) PTE. LTD.P5w.net NetworkNovembe “Investor platform Investors participating in FAWr 21 Relations for online Others Jiefang’s Third Quarter 2025
2025 Interactive communic Collective Performance BriefingPlatform” ation
61Full Text of Annual Report 2025 of FAW Jiefang Group Co. 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□NoIn accordance with Article 8 of the “Regulatory Guidelines for Listed Companies No. 10—Market Capitalization Management” issued by the China Securities Regulatory Commissionwhich stipulates that “Companies included in major indices shall establish a market capitalizationmanagement system...” The Company has formulated the “Market Capitalization ManagementSystem” 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 EmergencyMeasures and Supplementary Provisions. The “Proposal on Establishing the ‘MarketCapitalization Management System’” has been reviewed and approved at the 21st meeting of the
10th Board of Directors of the Company.
XIV. Implementation of the “Improvement of Both Quality and Return” Action PlanWhether the Company disclosed the Announcement on the “Improvement of Both Quality andReturn” action plan.□Yes□NoFor details please refer to the Announcement on the Progress of the “Quality and ReturnDual Improvement” Action Plan published by the Company on the same day in the Securities
Times China Securities Journal and CNINFO (http://www.cninfo.com.cn).
62Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Section IV Corporate Governance Environment and Social
Responsibility
I. Basic Information about Corporate Governance
In 2025 the Company strictly complied with laws and regulations such as the Company Law
the Securities Law and the Corporate Governance Guidelines for Listed Companies as well as
regulatory requirements of the China Securities Regulatory Commission and the Shenzhen Stock
Exchange. It continuously improved its corporate governance structure enhanced its internal
control and risk management system maintained high-quality information disclosure and focused
on investor communication. The Company has established a corporate governance structure with
clear rights and responsibilities and coordinated operation in which the Shareholders’ Meeting is
the highest authority the Board of Directors is the operating decision-making body the special
committees of the Board are decision-making support bodies the Audit and Risk Control
Committee is the supervisory body and the management is the executing body. During the
reporting period each governance entity of the Company performed its duties in accordance with
laws and regulations achieving scientific and efficient decision-making.During the reporting period the Company abolished the Board of Supervisors revised and
improved the Company’s Articles of Association and simultaneously revised the Independent
Director Working System Information Disclosure Management System Fundraising
Management System and other listed company systems further enhancing the level of
standardized operation of the Company. At present the actual governance situation of the
Company meets 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 Company Law the Rules for Shareholders’
Meetings of Listed Companies the Articles of Association and other relevant regulations as well
as the regulatory requirements of the Shenzhen Stock Exchange to standardize the convening
holding and voting procedures of the Shareholders’ Meeting. It continues to adopt a combination
63Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
of on-site voting and online voting to ensure that all shareholders especially small and medium-
sized shareholders can exercise their voting rights equally. The Shareholders’ Meeting strictly
implements the abstention from voting procedure for related shareholders when deliberating
related party transactions ensuring that the deliberation of related party transactions is fair just
and open. At the same time lawyers are engaged to witness the Shareholders’ Meeting and issue
legal opinions effectively safeguarding the legality and standardization of the Shareholders’
Meeting’s operation.
2. Directors and the Board of Directors
The composition and qualifications of the Company’s Board of Directors comply with
relevant provisions such as the Company Law and the Rules of Procedure for the Board of
Directors. The selection and appointment procedures for directors and the proportion of
independent directors both meet regulatory requirements. During the reporting period the Board
of Directors performed its duties diligently and held board meetings on schedule. All directors
were diligent and responsible actively participated in relevant training and enhanced their
performance capabilities and scientific decision-making levels. The Company’s Board of
Directors has three special committees: the Strategy Committee the Audit and Risk Control
Committee and the Remuneration and Appraisal Committee. The independent directors’ special
meeting mechanism operated effectively providing professional support for board decisions and
ensuring the standardized operation and efficient decision-making of the Board of Directors.
3. Relationship between the Controlling Shareholder and the Listed Company
The Company maintains independence from its controlling shareholder in terms of business
personnel assets organization and finance possessing a complete business system and
independent operational capabilities. The Company’s controlling shareholder strictly complies
with regulatory requirements such as the Code of Corporate Governance for Listed Companies
and the Self-Regulatory Guidelines for Listed Companies No. 1 — Standardized Operation of
Main Board Listed Companies regulates its own behavior and does not engage in any actions
that directly or indirectly interfere with the Company’s operations and decision-making beyond
the Shareholders’ Meeting. It also does not have any non-operational use of the Company’s funds
or provide guarantees in violation of regulations effectively safeguarding the independence of the
listed company and the legitimate rights and interests of minority shareholders.
64Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
4. Information Disclosure and Transparency
The Company strictly complies with the Administrative Measures for Information
Disclosure of Listed Companies the Shenzhen Stock Exchange Listing Rules the Self-
Regulatory Guidelines for Listed Companies No. 1 — Standardized Operation of Main Board
Listed Companies and other regulations to fulfill information disclosure obligations truthfully
accurately completely timely and fairly ensuring that investors have equal access to the
Company’s information. At the same time it strengthens the management of insiders to prevent
the risk of insider trading. The Company strengthens communication and exchanges with
investors through various channels such as performance briefings and the Interactive Easy
platform and enhances the corporate image in the capital market.
5. Stakeholders
The Company actively practices ESG concepts earnestly fulfills its social responsibilities as
a central state-owned enterprise and fully respects and safeguards the legitimate rights and
interests of stakeholders including shareholders employees customers suppliers and creditors.The Company establishes and improves communication mechanisms with stakeholders strives to
achieve coordination and balance of the interests of all parties and jointly promotes the sustained
stable and healthy development of the Company.Whether there is 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.II. Independence of the Company from Controlling Shareholders and Actual Controllers in
Terms of Guaranteeing the Company’s Assets Personnel Finance Organizations and
Business
In 2025 the Company maintained independence from its controlling shareholder in terms of
business personnel assets organization and finance possessing an independent and complete
business system and independent operational capabilities. Specific steps are as follows:
65Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
1. Business: The Company has a complete business structure independent business
operation systems for R&D procurement production and sales and is able to independently
organize and implement production and operation activities.
2. Personnel: The Company has independent personnel management institutions and systems
and conducts labor personnel and remuneration management independently of the controlling
shareholder. The Company’s directors and senior management are all selected and appointed in
accordance with relevant laws and regulations. Senior management personnel are all full-time
employees of the Company and receive remuneration from the Company.
3. Assets: The Company’s asset ownership is clear and complete and it has all rights such as
ownership control disposal and earnings over its assets. There is no situation where production
and operation rely on the assets of the controlling shareholder nor is there any situation where the
controlling shareholder occupies the Company’s assets.
4. Organization: The Company has a Shareholders’ Meeting Board of Directors
management and various functional departments and possesses an independent and complete
organizational structure and production and business premises. All institutions are independent of
the controlling shareholder and there is no situation of working together with the controlling
shareholder.
5. Finance: The Company has an independent and complete financial department has
established an independent financial management system and accounting system has opened an
independent bank account and pays taxes independently in accordance with the law.III. Horizontal Competition
□Applicable □Not applicable
Type of
Work
Relations Natur
Prob Progres
hip with Company e of
lem Causes Solutions s and
Listed Name Comp
Type Follow-
Compan any
up Plan
y
Hori Controlli China In 2020 the Harbin Light Automobile Perfor
zont ng FAW Other listed company and FAW Hongta are in a m as
al sharehol Group s completed major state of discontinuation or promise
com der Co. Ltd. asset loss currently with heavy d
66Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
petit restructuring burden and unstable
ion and its main profitability. FAW
business was promises that it will
changed to the entrust all shares of Harbin
R&D Light Automobile and
production and FAW Hongta under its
sales of actual control to Jiefang
commercial Limited for management
vehicles. FAW and inject the equities of
Harbin Light Harbin Light Automobile
Automobile Co. and FAW Hongta under its
Ltd. and FAW actual control to listed
Hongta Yunnan companies in batches or at
Automobile one time in an appropriate
Manufacturing way or transfer them to
Co. Ltd. which other unrelated third
are members of parties at a reasonable
FAW Light price and in a reasonable
Commercial way or prevent the light
Vehicle Co. truck company from
Ltd. a engaging in light truck
subsidiary of related businesses by
FAW are exercising shareholders’
engaged in some rights and perform
light truck relevant internal approval
businesses. procedures as soon as
There is possible after the above
horizontal procedures are initiated
competition or within 12 months after
potential meeting the requirements
horizontal that the return on net
competition assets of Harbin Light
between them Automobile and FAW
and the listed Hongta is not lower than
company. that of listed companies in
the same period and
increasing the earnings per
share of listed companies
after restructuring.Hori Controlli In 2020 the Harbin Light Automobile Perfor
China
zont ng Other listed company and FAW Hongta are in a m as
FAW Co.al sharehol s completed major state of discontinuation or promise
Ltd.com der asset loss currently with heavy d
67Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
petit restructuring burden and unstable
ion and its main profitability. FAW Car Co.business was Ltd. promises that it will
changed to the urge to entrust all shares of
R&D Harbin Light Automobile
production and and FAW Hongta under its
sales of actual control to Jiefang
commercial Limited for management
vehicles. FAW and inject the equities of
Harbin Light Harbin Light Automobile
Automobile Co. and FAW Hongta under its
Ltd. and FAW actual control to listed
Hongta Yunnan companies in batches or at
Automobile one time in an appropriate
Manufacturing way or transfer them to
Co. Ltd. which other unrelated third
are members of parties at a reasonable
FAW Light price and in a reasonable
Commercial way or prevent the light
Vehicle Co. truck company from
Ltd. a engaging in light truck
subsidiary of related businesses by
FAW Car Co. exercising shareholders’
Ltd. are rights and perform
engaged in some relevant internal approval
light truck procedures as soon as
businesses. possible after the above
There is procedures are initiated
horizontal within 12 months after
competition or meeting the requirements
potential that the return on net
horizontal assets of Harbin Light
competition Automobile and FAW
between them Hongta is not lower than
and the listed that of listed companies in
company. the same period and
increasing the earnings per
share of listed companies
after restructuring.IV. Directors and Senior Management
1. Basic Information
68Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Numbe
Number Numbe
r of Number Reasons
of Shares r of
Shares Other of Shares for the
Held at Shares
Emplo Increas Increas Held at Increase
Gend Start Date of Closing Date the Reduce
Name Age Position yment ed in e/Decre the End or
er Tenure of Tenure Beginnin d in the
Status the ase of the Decreas
g of the Current
Current (Share) Period e of
Period Period
Period (Share) Shares
(Share) (Share)
(Share)
Chairma In-
December April 23
Li Sheng Male 49 n of the servic 63617 63617
2620242026
Board e
Yu In-
March 06 April 23
Changxi Male 53 Director servic
20252026
n e
Employe In-
Wang September April 23
Male 55 e servic
Hao 09 2025 2026
Director e
Depart
Wang ure April 25 September
Male 55 Director
Hao from 2024 09 2025
office
Depart
Liu
ure September August 01
Yanchan Male 62 Director
from 16 2022 2025
g
office
Chen Fem In- June 19 April 23
57 Director
Hua ale servic 2024 2026
69Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
e
In-
Deng February 21 April 23
Male 59 Director servic
Weigong 2024 2026
e
In-
Jiao September April 23
Male 52 Director servic
Youlin 09 2025 2026
e
Han Independ In-
April 22 April 23
Fangmin Male 59 ent servic
20202026
g director e
Independ In-
Mao April 22 April 23
Male 64 ent servic
Zhihong 2020 2026
director e
Dong Independ In-
April 22 April 23
Zhongla Male 61 ent servic
20202026
ng director e
Chairma
Depart
n of
Fem ure March 28 September
Li Ying 52 Board of
ale from 2024 09 2025
Supervis
office
ors
Employe Depart
Xu e ure April 22 March 17
Male 61
Haigen Supervis from 2020 2025
or office
Employe Depart
Wang e ure April 22 September
Male 57
Lijun Supervis from 2020 09 2025
or office
70Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Employe Depart
Duan e ure April 22 September
Male 55
Yinghui Supervis from 2020 09 2025
or office
Employe Depart
Li e ure March 26 September
Male 40
Risheng Supervis from 2025 09 2025
or office
Employe Depart
Qiao
e ure March 26 September
Xiaobin Male 49
Supervis from 2025 09 2025
g
or office
Yu In-
General December April 23
Changxi Male 53 servic
Manager 26 2024 2026
n e
Deputy In-
Wang May 26 April 23
Male 50 General servic
Zhiyu 2025 2026
Manager e
Deputy In-
Wang March 28 April 23
Male 46 General servic 63617 63617
Jianyu 2024 2026
Manager e
Sharehol
Secretary ding
In-
Wang of the January 22 increase
Male 42 servic July 23 2020 63617 30000 93617
Jianxun Board of 2026 d by
e
Directors own
funds
Total -- -- -- -- -- -- 190851 30000 220851 --
71Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Whether any director or senior management member left office during their term in the reporting
period
□Yes □NoOn March 18 2025 the Company disclosed the “Announcement on Resignation of aCompany Supervisor” stating that Mr. Xu Haigen applied to resign from his position as a
supervisor of the Company due to having reached the statutory retirement age. On August 2 2025
the Company disclosed the “Announcement on Resignation of a Company Director” stating that
Mr. Liu Yanchang applied to resign from his positions as a director of the Company and a
member of the Board’s specialized committees due to work arrangement reasons. On September 9
2025 the Company convened the Second Extraordinary General Meeting of Shareholders in 2025which deliberated and passed the “Proposal on the Cancellation of the Board of Supervisors andAmending the ‘Articles of Association’.” Li Ying Chairman of the Board of Supervisors and
Employee Supervisors Wang Lijun Duan Yinghui Li Risheng and Qiao Xiaobing no longer
serve as supervisors of the Company. On September 10 2025 the Company disclosed the“Announcement on the Resignation of a Director and the Election of an Employee RepresentativeDirector.” Mr. Wang Hao applied to resign from the position of non-independent director of the
10th Board of Directors of the Company; the Employee Representative Congress elected Mr.
Wang Hao to serve as the employee representative director of the 10th Board of Directors of theCompany. On January 23 2026 the Company disclosed the “Announcement on the Resignationof the Company’s Board Secretary” stating that Mr. Wang Jianxun applied to resign from his
position as the Company’s Board Secretary due to work adjustment reasons.For details please refer to the announcements by the Company in the Securities Times
China Securities Journal and CNINFO (http://www.cninfo.com.cn).Changes in Directors and Senior Management of the Company
□Applicable □Not applicable
Name Position Type Date Reason
Appointmen
Wang Hao Director t and September 09 2025 Job transfer
Dismissal
Liu Departure
Director August 01 2025 Job transfer
Yanchang from office
Li Ying Chairman of Departure September 09 2025 Dismissal
72Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Board of from office
Supervisors
Employee Departure
Xu Haigen March 17 2025 Statutory retirement
Supervisor from office
Employee Departure
Wang Lijun September 09 2025 Dismissal
Supervisor from office
Duan Employee Departure
September 09 2025 Dismissal
Yinghui Supervisor from office
Employee Departure
Li Risheng September 09 2025 Dismissal
Supervisor from office
Qiao Employee Departure
September 09 2025 Dismissal
Xiaobing Supervisor from office
2. Employment Status
Professional background main work experience and current main responsibilities of the
Company’s current directors and senior management.Mr. Li Sheng is currently the Chairman and Secretary of the Party Committee of the
Company as well as the Director and Secretary of Party Committee of Jiefang Limited. 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 (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.
73Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Mr. Yu Changxin is currently the Director General Manager and Deputy Secretary of the
Party Committee of the Company as well as the General Manager Deputy Secretary of the Party
Committee General Legal Counsel and Chief Compliance Officer 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 Hao is currently the Employee Director Deputy Secretary of the Party
Committee and Chairman of the Labor Union of the Company as well as 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.Ms. Chen Hua is currently a part-time external director for subsidiaries in the Financial
Management Department (Board Office) of China FAW. 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. Deng Weigong is currently a full-time external director of the subsidiary of the
Financial Management Department (Office of the Board of Directors) of China FAW. 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
74Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
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.Mr. Jiao Youlin is currently a full-time external director for subsidiaries in the Financial
Management Department (Board Office) of China FAW. He previously served as Deputy General
Manager of the Marketing Center (Hongqi Sales Company) of China FAW Group Co. Ltd.Deputy General Manager (presiding over work) of the Mobility Travel Division (FAW Mobility
Technology Co. Ltd.) of China FAW Group Co. Ltd. Deputy General Manager of the Hongqi
Premium Customization Center Branch of China FAW Co. Ltd. and Deputy General Manager of
China FAW Import and Export Co. Ltd. among other positions.Mr. Han Fangming currently serves as President of the Charhar Institute Senior Advisor to
the Board of TCL Technology Group Corporation Vice President of the China National
Association for International Studies Vice President of the Chinese Society for Southeast Asian
Studies Member of the National Council of the Chinese People’s Association for Friendship with
Foreign Countries and Council Member of the 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 a Professor and Doctoral Supervisor of the Department of
Accounting School of Business and Management Jilin University. He has served successively as
an 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).Mr. Wang Zhiyu is currently the Deputy General Manager of the Company and the Deputy
General Manager of Jiefang Limited. He previously served as Deputy General Manager of the
Engine Division of Jiefang Limited and General Manager and Secretary of the Party Committee
of Dalian Diesel Engine Co. Ltd. Deputy Secretary of the Party Committee Secretary of the
75Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Discipline Inspection Commission and Head of the Labor Union (Chairman of the Labor Union)
of the Powertrain Division of Jiefang Limited and General Manager and Deputy Secretary of the
Party Committee of FAW Foundry Co. Ltd. among other positions.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 Commercial Vehicle Development Institute of Jiefang Limited the
Director of Chassis Development Department of Commercial Vehicle Development Institute and
the Vice President of 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 (resigned on January 22 2026). 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.Situations where the controlling shareholder and de facto controller simultaneously serve as the
chairman and general manager of the listed company.□Applicable□Not applicable
Status of post held in the firm of shareholders
□Applicable □Not applicable
Whether
Remunerati
on and
Name of Closing
Name of Position in the Allowance
Employe Start Date of Tenure Date of
Shareholder Shareholder are
es Tenure
Received
from the
Shareholder
Part-time external
China FAW director of
Chen
Group Co. subsidiary of May 01 2024 Yes
Hua
Ltd. Financial
Management
76Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Department (Office
of the Board of
Directors)
Full-time external
director of
subsidiary of
China FAW
Deng Financial
Group Co. October 01 2023 Yes
Weigong Management
Ltd.Department (Office
of the Board of
Directors)
Full-time external
director of
subsidiary of
China FAW
Jiao Financial
Group Co. July 01 2025 Yes
Youlin Management
Ltd.Department (Office
of the Board of
Directors)
Position in other organizations
□Applicable □Not applicable
Whether
Remunerati
on and
Name of Closing Allowance
Name of Other Position in Other
Employe Start Date of Tenure Date of are
Organizations Organizations
es Tenure Received
from Other
Organizatio
ns
Han
Chahar
Fangmin President October 01 2009 Yes
Institute
g
Professor and
Mao Jilin Doctoral
November 01 2000 Yes
Zhihong University Supervisor of the
Department of
77Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Accounting
School of
Business and
Management
Zhuhai
Yinshan
Dong
Capital Equity
Zhongla Managing Partner May 01 2017 Yes
Investment
ng
Management
Co. Ltd.Penalties imposed by securities regulatory authorities in the past three years on directors and
senior management currently in office or who left office during the reporting period
□Applicable□Not applicable
3. Remuneration of Directors and Senior Management
Decision-making procedure determination basis and actual payment of remuneration for directors
and senior management
Decision-Making Only directors (excluding independent directors) and senior management
Procedure of who hold positions in the Company are paid remuneration; the
Remuneration of remuneration of directors who do not hold positions in the Company is paid
Directors and Senior by their employing units. The remuneration of relevant directors and senior
Management management paid by the Company is determined by the Board of Directors.Directors (excluding independent directors) and senior management who
receive compensation from the Company follow an annual compensation
system that consists of three main components: base salary performance-
Determination Basis
based bonus and tenure incentive. The performance-based bonus is
of Remuneration of
determined according to indicators including the Company’s operating
Directors and Senior
results performance evaluation and fulfillment of duties during the
Management
reporting period. The tenure 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 remuneration paid to directors
Actual Payment of (excluding independent directors) and senior management amounted to
Remuneration for CNY 7.3612 million (including tax);
Directors and Senior A total of CNY 450 thousand (tax inclusive) of allowances were paid to
Management independent directors and reasonable expenses (including travel expenses
office expenses training expenses etc.) required to attend the Company’s
78Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Board of Directors Shareholders’ Meeting and exercise their functions and
powers in accordance with relevant regulations can be reimbursed by the
Company based on actual expenses.Remuneration of Directors and Senior Management of the Company in the Reporting Period
Unit: CNY 10 thousand
Whether
Total Pre- Remunerati
tax on Is
Compensati Obtained
Employme
Name Gender Age Position on from
nt Status
Received Related
from the Parties of
Company the
Company
Chairman of
Li Sheng Male 49 In-service 151.24 No
the Board
Director and
Yu
Male 53 General In-service 143.65 No
Changxin
Manager
Employee
Wang Hao Male 55 In-service 121.33 No
Director
Liu Departure
Male 62 Director Yes
Yanchang from office
Chen Hua Female 57 Director In-service Yes
Deng
Male 59 Director In-service Yes
Weigong
Jiao Youlin Male 52 Director In-service Yes
Han Independent
Male 59 In-service 15 No
Fangming director
Mao Independent
Male 64 In-service 15 No
Zhihong director
Dong Independent
Male 61 In-service 15 No
Zhonglang director
Deputy
Wang
Male 50 General In-service 70.43 No
Zhiyu
Manager
Wang Male 46 Deputy In-service 119.97 No
79Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Jianyu General
Manager
Secretary of
Wang
Male 42 the Board of In-service 129.50 No
Jianxun
Directors
Total -- -- -- -- 781.12 --
Assessment basis for the actual
remuneration received by all directors and Implemented in accordance with the Company’s
senior management as of the end of the relevant remuneration management regulations.reporting period
Completion status of the assessment for the
actual remuneration received by all
Completed
directors and senior management as of the
end of the reporting period
The deferred payment arrangements for the
Deferred payment arrangements for the
Company’s directors and senior management are
actual remuneration received by all
reviewed and determined based on specific rules
directors and senior management as of the
and regulations and the Company distributes them
end of the reporting period
in accordance with relevant regulations.Clawback and suspension circumstances
for the actual remuneration received by all There were no cases of payment suspension or
directors and senior management as of the clawback during the reporting period.end of the reporting period
V. Performance of Duties by Directors in the Reporting Period
1. Attendance of Directors at Board Meetings and Shareholders’Meetings
Attendance of Directors at Board Meetings and Shareholders’Meetings
Failure to
Number Number Number
Number of of Number Attendof
Meetings of Meetings Meetings of
the Number
of the Meetings of the of the Absences
Meeting of
Name of Board of of the Board of Board of from the
of the Sharehold
Director Directors Board of Directors Directors Meeting
Board of ers’
to be Directors Attended Attended of the
Directors Meetings
Attended Attended via by Board of
in Person Attended
in Person Communi Entrustme Directors for Twoin the
cation nt ConsecutiReporting
ve Times
80Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Period or Not
Li Sheng 12 4 6 2 0 No 2
Yu
11 4 6 1 0 No 4
Changxin
Wang
12 5 6 1 0 No 4
Hao
Liu
6 3 3 0 0 No 2
Yanchang
Chen Hua 12 6 6 0 0 No 4
Deng
12 6 6 0 0 No 4
Weigong
Jiao
5 2 3 0 0 No 2
Youlin
Han
12 6 6 0 0 No 2
Fangming
Mao
12 6 6 0 0 No 3
Zhihong
Dong
Zhonglan 12 6 6 0 0 No 4
g
Explanation on two consecutive absences from the Meeting of the Board of Directors in person:
none
2. 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 relevant matters of the
Company.
3. 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 2025 all directors of the Company worked in strict accordance with the Company Law
Securities Law the Rules Governing the Listing of Shares on Shenzhen Stock Exchange and the
Articles of Association and other laws and regulations and performed their duties faithfully and
diligently in a responsible attitude towards all shareholders. They actively attended the meetings
81Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
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.VI. Performance of Duties by Special Committees under the Board of Directors in the
Reporting Period
Importan
Num
t Other Deta
Name ber
Commen Perfor ils of
of of
Members Date Contents ts and mance Obje
Commi Meet
Suggesti of ction
ttee ings
ons Put Duties s
Held
Forward
Reviewed the“Company’s 2024Financial AuditReport” the “2024Annual Report” the“2024 InternalMao Control SystemZhihong Work Report” the AllHan March 20 “2024 Internal proposal
1 N/A
Fangming 2025 Control Evaluation s wereAudit Deng Report” the “2024 agreed.and Weigong Rule of Law
Risk Construction and
Control Compliance
Commi Management Workttee Report” and the“2024 Internal AuditWork Report.”
Reviewed theMao “Report on the First AllZhihong April 24 Quarter of 2025” and proposal
N/AHan 5 2025 the “Internal Audit s wereFangming Report for the First agreed.Chen Hua Quarter of 2025”
August 19 Reviewed the All N/A
82Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
2025 “Proposal on Asset proposalImpairment s were
Provisions for the agreed.First Half of 2025”the “2025 Semi-annual Report and itsSummary” the“2025 AnnualInternal AuditReport” the“Proposal onEstablishing the
Internal AuditSystem” and the“Work Plan forInternal Control
System Construction
and Internal Control
Evaluation for
2025”.
Reviewed the“Proposal onEngaging a FinancialAudit Firm” the“Proposal onEngaging an InternalControl Audit Firm”
Alland the “Proposal onSeptember proposal
Accepting State- N/A
25 2025 s were
Owned Capital
agreed.Operating Budget
Funds from the
Controlling
Shareholder by
Means of Entrusted
Loan and ConnectedTransaction”.Reviewed the “2025All
Third Quarter
October 28 proposalReport” and “Third N/A
2025 s were
Quarter Report on
agreed.Internal Audit”
December Reviewed the All N/A
83Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
15 2025 “Proposal on proposalApplication for s were
Financial agreed.Derivatives Business
Qualifications of the
Company and ItsSubsidiaries” and the“Report on MajorRisk AssessmentResults for 2026”.Reviewed the“Proposal on theUnfulfilled
Conditions for the
Third Restricted
Dong
Stock Unlocking
Zhonglang The
Period of the
Mao March 28 proposal
1 Reserved Grants N/A
Zhihong 2025 was
under the First Phase
Remun Liu agreed.Restricted Stock
eration Yanchang.Incentive Plan and
and the Repurchase and
Apprais
Cancellation of
al
Certain RestrictedCommi Stocks”
ttee
Reviewed proposals
such as the
Dong
performance
Zhonglang All
evaluation results of
Mao May 26 proposal
1 senior management N/A
Zhihong 2025 s were
and the performance
Deng agreed.assessment
Weigong
indicators of senior
management.Reviewed the “2025Li Sheng Fixed AssetDong Investment Plan”
Strateg AllZhonglang “2025 Equityy February proposalHan 1 Investment Plan” N/A
Commi 14 2025 s wereFangming “Proposal onttee agreed.Liu Establishing a New
Yanchang R&D Center inJapan” and “2025
84Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Key Work Plan for
TechnologicalInnovation”.Li Sheng
Yu
Changxin Reviewed the
TheDong “Proposal onJuly 01 proposal
Zhonglang 1 Establishing a New N/A
2025 was
Han Overseas
agreed.Fangming Subsidiary”.Liu
YanchangReviewed the “Mid-year Adjustment to
the 2025 EquityInvestment Plan”and “Mid-year AllLi Sheng August 19 Adjustment to the proposal
N/A
Yu 2025 2025 Fixed Assets s wereChangxin Investment Plan” agreed.Dong 2 and received theZhonglang “Implementation ofHan the Company’sFangming Strategic Plan”
Reviewed the
The“Medium and Long-October 28 proposal
term Development N/A
2025 was
Plan of the
agreed.Company”.Li Sheng
Yu Reviewed theChangxin “Proposal on Capital TheDong November Increase in Jiefang proposal
1 N/A
Zhonglang 27 2025 Times New Energy was
Han Technology Co. Ltd. agreed.Fangming by the Subsidiary”.Jiao Youlin
VII. Work Report of the Audit Committee
Whether the Audit Committee has found any risks in the Company during its supervision
activities in the reporting period
85Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
□Yes□No
The Audit Committee has no objection to the supervision matters in the reporting period.VIII. 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
201
end of the reporting period (person)
Number of on-the-job employees of main subsidiaries at the
18916
end of the reporting period (person)
Total number of on-the-job employees at the end of the
19117
reporting period (person)
Total number of employees receiving compensation in the
20084
current period (person)
Number of retired employees whose expenses shall be borne
9
by the parent company and major subsidiaries (person)
Specialty Composition
Category Number (person)
Production personnel 10702
Sales personnel 1216
Technicians 5960
Financial personnel 327
Administrative personnel 912
Total 19117
Education Background
Category Number (person)
Doctor’s degree 64
Master’s degree 1855
Bachelor’s degree 8161
Junior college degree 4266
High school and below 4771
Total 19117
2. Remuneration Policy
In 2025 the Company remains committed to prioritizing value creators continuously
enhancing incentive mechanisms emphasizing value orientation further stimulating
86Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
organizational and employee vitality and supporting the Company’s business development.First improving compensation incentive mechanisms to energize employees:
Emphasizing value orientation based on the role responsibilities in various fields adopting a one-
enterprise-one-policy approach to establish a total wage management mechanism with clear
direction explicit adjustments and appropriate authorization fully leveraging the role of
compensation as a lever; optimizing the assessment and incentive mechanism in the marketing
field to support the achievement of operational indicators such as sales volume; improving the
bonus distribution rules for production operators with incentives tilted toward frontline
production and highly skilled personnel; implementing project-based incentives to encourage all
employees to tackle difficult challenges; implementing annual rewards and salary adjustments to
incentivize employees with strong performance and capabilities to create greater value for the
enterprise; taking multiple measures to achieve mutual growth for employees and the enterprise.Second standardizing employee benefits management delivering benefit entitlements
and ensuring protection: The Company signs labor contracts with employees in accordance with
legal provisions handles and pays various social insurances such as basic pension insurance
basic medical insurance work-related injury insurance unemployment insurance and housing
provident funds for employees and actively promotes supplementary pension insurance and
supplementary medical insurance systems; establishes and improves the welfare system
implements welfare benefits such as holiday subsidies heating fee subsidies living allowances
for single employees and summer cooling subsidies in accordance with standards protecting
employees’ legitimate rights and interests in multiple aspects and comprehensively. 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 2025 employee training and development work aims to support the Company’s
innovation-driven transformation and development the achievement of annual business objectives
and the resolution of business pain points and difficult issues carrying out targeted and systematic
talent development work by tier and category. A total of more than 7000 various training sessions
were conducted throughout the year.
87Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
4. Labor Outsourcing
□Applicable□Not applicable
IX. 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 2024 Profit Distribution Plan was reviewed and approved by the 24th
Meeting of the 10th Board of Directors and the 2024 Annual Shareholders’ Meeting and the
“Announcement on the Implementation of 2024 Annual Equity Distribution” was disclosed on
June 11 2025. The ex-rights and ex-dividend date for this profit distribution is: June 17 2025.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 N/A
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 (CNY) (tax 0.45
88Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
inclusive)
Share capital base for distribution plan (share) 4921280975
Amount of cash dividends (CNY) (tax inclusive) 221457643.87
Amount of cash dividends paid by other means (such as
0.00
share repurchase) (CNY)
Total amount of cash dividends (including by other means)
221457643.87
(CNY)
Distributable profits (CNY) 7134368517.65
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
As audited and confirmed by BDO China Shu Lun Pan Certified Public Accountants LLP
the Company’s parent company realized a net profit of CNY 10546206.12 in 2025 plus the
undistributed profit from previous years of CNY 7370940980.89 minus the statutory surplus
reserve accrued in the current year of CNY 1054620.61 and the distributed profit of CNY
246064048.75 etc. the actual profit available for distribution to shareholders for the current
year is CNY 7134368517.65.The 2025 annual profit distribution plan of the Company is as follows: Based on the
4921280975 shares of the Company a cash dividend of CNY 0.45 (tax inclusive) will be
distributed to all shareholders for every 10 shares they hold; the cash dividends to be distributed
will reach CNY 221457643.87 (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.If the Company’s total share capital changes due to share repurchases or other reasons before
the implementation of the distribution plan a cash dividend of CNY 0.45 (tax inclusive) will be
distributed to all shareholders per 10 shares based on the total share capital registered on the
record date when the profit distribution plan is implemented in the future with the specific
amount subject to the actual distribution.This distribution plan is subject to the review and approval of the 2025 Annual Shareholders’
Meeting before implementation.
89Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
X. 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 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 CNY 7.54 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 Completion of Registration of
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 were granted to 33 persons totaling 3.7216
million shares with a grant price of CNY 6.38 per share. The restricted shares granted were listed
on January 10 2022. On January 17 2022 the Company disclosed the Announcement on
90Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Completion of Repurchase and Cancellation of Some Restricted Shares in which all restricted
shares granted to 2 incentive objects but not yet released totaling 260857 shares with a
repurchase price of CNY 7.04 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 Completion of 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 CNY 6.39/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 were 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 andapprove the “Proposal on the Achievement of Unlocking Conditions in the First Release Period ofthe Restricted Shares Firstly Granted in the Phase I Restricted Incentive Plan” agreeing that the
Company should handle the unlocking of 13042347 restricted shares for a total of 311 incentive
recipients who met the unlocking conditions for the first restricted stock unlocking period of the
initial grants in accordance with the relevant provisions of the restricted stock incentive plan; onFebruary 3 2023 the Company published the “Indicative Announcement on Listing andCirculation of Unlocked Shares in the First Release Period of the Restricted Shares Firstly
91Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.Granted in the Phase I Restricted Share Incentive Plan” on CNINFO (http://www.cninfo.com.cn)
and the unlocked restricted shares were scheduled to be listed and circulated on February 6 2023.At the 30th Meeting of the 9th Board of Directors and the 26th Meeting of the 9th Board ofSupervisors the Company reviewed and approved the “Proposal on Repurchase and Cancellationof Partial Restricted Shares in the Phase I Restricted Share Incentive Plan” and agreed to
repurchase and cancel all or part of 723435 restricted shares 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
162023.
(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
92Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
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 8 incentive targets but had not been lifted
the restriction for sales. On November 29 2023 the Company published 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 published 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 deliberated andapproved “The Proposal on Unsuccessful Lifting of Conditions of the Third Release Period FirstGranted 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 Planfor Releasing the Restricted Sales and Repurchase and Cancellation of Some Restricted Shares”
agreeing to repurchase and cancel the restricted stocks of 299 incentive recipients who did not
meet the unlocking conditions with a total repurchase amount of 12621954 shares; on June 15
2024 the Company published the “Announcement on Completion of Repurchase andCancellation 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 and deliberated andapproved the “Proposal on Unfulfilling Conditions for Releasing Restricted Share for the ThirdRelease 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 RepurchasePrice” agreeing to repurchase and cancel the restricted stocks of 30 incentive recipients who did
93Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
not meet the unlocking conditions with a total repurchase amount of 1090201 shares. On April
18 2025 the proposal was reviewed and approved at the Company’s 2024 Annual Shareholders’
Meeting. The Company has completed the above-mentioned repurchase and cancellation of sharesand disclosed the “Announcement on Completion of Repurchase and Cancellation of SomeRestricted Shares” on June 10 2025.For details of the above proposals please refer to the relevant announcements published by
the Company in Securities Times China Securities Journal and CNINFO
(http://www.cninfo.com.cn).
94Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Equity Incentives Obtained by Directors and Senior Executives of the Company
□Applicable □Not applicable
Unit: share
Exercis Num
Numb Number
Number Numb e Price ber
er of Market of
of er of Number of Number of of Grant Number
Stock Number Price at Newly
Newly Exerci of Exercis Restricted Unlo Price of
Optio of Stock the End Granted
Granted sable Exercise ed Shares cked of Restricte
ns Options of the Restrict
Stock Share d Shares Shares Held at Share Restri d Shares
Name Position Held Held at Reporti ed
Options s in in the in the the s in cted Held at
at the the End ng Shares
in the the Reporti Reporti Beginning the Shares the End
Begin of the Period in the
Reporti Repor ng ng of the Curre (CNY/ of the
ning Period (CNY/s Reporti
ng ting Period Period Period nt share) Period
of the hare) ng
Period Period (CNY/s Perio
Year Period
hare) d
Li Chairman of
0000006.7863617007.5463617
Sheng the Board
Deputy
Wang
General 0 0 0 0 0 0 6.78 63617 0 0 7.54 63617
Jianyu
Manager
Secretary of
Wang
the Board of 0 0 0 0 0 0 6.78 63617 0 0 7.54 63617
Jianxun
Directors
Total -- 0 0 0 0 -- 0 -- 190851 0 0 -- 190851
Remarks N/A
95Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
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
XI. Establishment and Implementation of Internal Control System in the Reporting Period
1. Construction and Implementation of Internal Control
Adhering to strategy-driven and architecture-led principles. Based on business changes and
system management requirements reviewed the Company’s process architecture including over
10 L1 over 110 L2 and over 380 L3 levels. Optimized and adjusted nearly 30 L3 process
architectures including adding management of technical requirements in the R&D field adding
disposal of backlogged spare parts in the marketing field optimizing the management of
manufacturing quality in the manufacturing field and adding management of overseas finance in
the operations field etc.Promoted process construction and review updates according to the architecture. Based on
business actuals and prioritizing according to demand supplemented and established over 80
documents including processes systems and operating guidelines; optimized business rules
updated over 480 documents and abolished 130 documents to improve document suitability;
organized over 40 Company-level document reviews to enhance document quality.Conducted routine and special monitoring of processes. Routine monitoring was based on
the Application Guidelines for Enterprise Internal Control selecting nearly 130 key control points
involving high-risk businesses such as business outsourcing and project completion acceptance
96Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
implementing self-inspections and audits identifying and rectifying over 10 planning and
execution issues and effectively controlling internal corporate risks; special monitoring was
conducted on business processes in the quality field focusing on items that affect operations or
recur based on historical quality issues combing through businesses such as logistics and
procurement through end-to-end process monitoring identifying over 60 issues to avoid quality
risks.
2. Specific Information on Major Internal Control Deficiencies Found During the Reporting
Period
□Yes□No
XII. Management and Control of Subsidiaries by the Company in the Reporting Period
Follow-
Problems
Company Integration Solutions Resolution up
Integration Plan in
Name Progress Taken Progress Resoluti
Integration
on Plan
N/A N/A N/A N/A N/A N/A N/A
Abnormalities exist in the management and control of subsidiaries.□Yes□No
XIII. Internal Control Evaluation Report or Internal Control Audit Report
1. Internal Control Evaluation Report
Disclosure Date of Full Text of
March 28 2026
Internal Control Evaluation Report
https://www.cninfo.com.cn/new/disclosure/stockstockC
Disclosure Index of Full Text of
ode=000800&orgId=gssz0000800&sjstsBond=false#lates
Internal Control Evaluation Report
tAnnouncement
Proportion of the Total Assets of the
Unit Included in the Evaluation
Scope to the Total Assets in the 100.00%
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
97Full Text of Annual Report 2025 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
Major deficiencies: The accounting
normative documents by the Company;
firm issues the audit report with a
violation of decision-making procedures
disclaimer of opinion or an adverse
by the Company resulting in major
opinion to the Company.decision-making errors.Significant deficiencies: The
Significant deficiencies: fraudulent
accounting firm issues the auditor
behaviors of the main responsible
Qualitative report with a qualified opinion to the
persons of each unit of the Company;
Criteria Company; and the accounting firm
serious violation of national laws
issues the auditor report with a
regulations or normative documents by
disclaimer of opinion or an adverse
the company; violation of decision-
opinion to the Company.making procedures by the company
General deficiencies: The accounting
resulting in decision-making errors.firm issues the auditor report with a
General deficiencies: fraudulent
qualified opinion to the Company.behaviors of other personnel of the
Company; other control deficiencies that
do not constitute major or significant
deficiencies.Identification criteria for internal
control deficiencies related to assets
and liabilities
Major deficiencies: misstated
(including potential) amount ≥ 5‰ of It is determined based on the amount of
the total assets at the end of the asset losses caused by internal control
consolidated balance sheet of the failure and the standards are as follows:
previous year; Major deficiencies: causing asset losses
Quantitative Significant deficiencies: 3‰ of the of CNY 10 million and more;
Criteria total assets at the end of the Significant deficiencies: causing asset
consolidated balance sheet of the losses of less than CNY 10 million and
previous year ≤ misstated (including greater than or equal to CNY 5 million;
potential) amount < 5‰ of the total Minor deficiencies: causing asset losses
assets at the end of the consolidated of less than CNY 5 million.balance sheet of the previous year;
General deficiencies: other control
deficiencies except for major and
significant deficiencies.
98Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
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 2025 in accordance with the Basic Specification for
Enterprise Internal Control and relevant regulations.Disclosure of Internal Control Auditor
Disclosure
Report
Disclosure Date of Full Text of Internal
March 28 2026
Control Audit Report
Disclosure Index of Full Text of Internal https://www.cninfo.com.cn/new/disclosure/stockstoc
Control Audit Report kCode=000800&orgId=gssz0000800&sjstsBond=fals
99Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
e#latestAnnouncement
Opinion Type of Internal Control Audit
Standard unqualified opinion
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
Whether a non-standard audit opinion on internal control was issued during the reporting period
or the previous year
□Yes□No
XIV. Rectification of Problems Found in the Self-inspection of the Special Action for
Governance of Listed Companies
N/A
XV. Environmental Information Disclosure
Whether the listed company and its major subsidiaries are included in the list of enterprises
required by law to disclose environmental information
□Yes □No
Number of enterprises included in the list of
companies required by law to disclose 11
environmental information
Index for Querying Environmental
S/N Name of the Enterprise
Information Disclosure Reports
FAW Jiefang Automotive Co. Ltd.
1 http://36.135.7.198:9015/index
(Truck Factory)
FAW Jiefang Automotive Co. Ltd.
2 http://36.135.7.198:9015/index
Transmission Branch
FAW Jiefang Automotive Co. Ltd.
3 Transmission Branch (Old Axle http://36.135.7.198:9015/index
Workshop Area)
4 FAW Jiefang Automotive Co. Ltd. http://36.135.7.198:9015/index
100Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Engine Branch
FAW Jiefang Automotive Co. Ltd.
5 http://36.135.7.198:9015/index
Changchun Intelligent Bus Branch
http://221.214.62.226:8090/EnvironmentDis
FAW Jiefang (Qingdao) Automotive closure/enterpriseRoster/openEnterpriseDeta
6
Co. Ltd. ilscomDetailFrom=0&id=91370200163567
343M
http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarc
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Wuxi Diesel Engine Works of FAW
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Wuxi Diesel Engine Huishan Factory of
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101Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
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9 morecode=91510681MABQ7AKG4Y&uni
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FAW Jiefang Automotive Co. Ltd.
10 morecode=91510114746407720B&unique
Chengdu Branch
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e=true&isSearch=true
https://qyxxpl.ywzh.lnsthj.cn:8802/home/co
FAW Jiefang Dalian Diesel Engine Co.
11 mpaniesreportenterId=682078508085253&
Ltd.publishdataId
XVI. Social ResponsibilityFor details of our performance of corporate social responsibilities please refer to the “2025Environmental Social and Governance (ESG) Report” published on CNINFO
(http://www.cninfo.com.cn) on the same day.
102Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
XVII. Consolidation and Expansion of Achievements in Poverty Alleviation and Rural
Revitalization
In 2025 the Company deeply studied and implemented General Secretary Xi Jinping’s
important discourses on the “Three Rural Issues” (agriculture rural areas and farmers)
implemented the decisions and deployments of the CPC Central Committee and the State Council
on comprehensively promoting rural revitalization and followed the overall arrangement of China
FAW’s targeted assistance work. Focusing on the targeted assistance county Zhenlai County in
Jilin Province the Company implemented precise measures through field research joint Party
building talent revitalization and consumption assistance to improve the quality and efficiency of
village-stationed assistance work activate the endogenous momentum for rural development and
draw a new picture for the construction of a harmonious and beautiful countryside.
103Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Section V 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
Com
Reasons
Commi mit
for Committed Performan
tment Commitments Date ment
Commitm by ce
Type Peri
ent
od
1. We will exercise shareholders’ rights in strict accordance with the Company
Law and other laws administrative regulations rules and normative documents
Commi (hereinafter referred to as “laws and regulations”) as well as the Articles oftment Association of FAW Car Co. Ltd. (hereinafter referred to as “Articles ofCommitm on Association”) and when the Board of Directors and the Shareholders’ Meeting
Lon The
ents made regulati vote on related transactions involving China FAW Co. Ltd. matters we will
April g- commitme
during China FAW ng and fulfill the obligation of avoiding voting. 2. We will commit to putting an end to
08 term nt is being
asset Co. Ltd. reducin all illegal occupation of the funds and assets of the listed company and guarantee
2020 valid fulfilled
restructuri g not to illegally transfer the funds and assets of the listed company or harm the
ity normally.ng related interests of the listed company and other shareholders of the listed company by
transact making use of relevant transactions. 3. We will try 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
104Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
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. 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 company
will be changed to the R&D production and sales of commercial vehicles. 2.Commi
Upon completion of the restructuring FAW and its holding enterprises other than
tment
listed companies (hereinafter referred to as “holding enterprises”) shall not
on Lon The
directly or indirectly engage in any business or activity that constitutes or may
China FAW avoidin April g- commitme
constitute substantial competition with the main business engaged in by listed
Group Co. g 08 term nt is being
companies and their holding enterprises in any form. 3. Upon completion of the
Ltd. horizon 2020 valid fulfilled
restructuring if FAW or its holding enterprises find any new business
tal ity normally.opportunities that constitute or may constitute a direct or indirect competition
competi
with the main business of the listed company or its holding enterprises
tion
(hereinafter referred to as “such new business opportunities”) FAW will
immediately notify the listed company in writing and try its best to first provide
105Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
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 subsidiaryFAW Light Commercial Vehicle Co. Ltd. (hereinafter referred to as “FAW LightAutomobile”) 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 burden 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 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
106Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
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 company
will be changed to the R&D production and sales of commercial vehicles. 2.Upon completion of the restructuring FAW Car Co. Ltd. and its holdingenterprises other than listed companies (hereinafter referred to as “holdingenterprises”) shall not directly or indirectly engage in any business or activity
Commi that constitutes or may constitute substantial competition with the main business
tment engaged in by listed companies and their holding enterprises in any form. 3.on Upon completion of the restructuring if FAW or its holding enterprises find any Lon The
avoidin new business opportunities that constitute or may constitute a direct or indirect April g- commitme
China FAW
g competition with the main business of the listed company or its holding 08 term nt is being
Co. Ltd.horizon enterprises (hereinafter referred to as “such new business opportunities”) FAW 2020 valid fulfilled
tal or its holding enterprises will immediately notify the listed company in writing ity normally.competi and try its best to first provide such business opportunities to the listed company
tion 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
107Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
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 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
108Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
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.(I) Ensure the personnel independence of the listed company: 1. Maintain
personnel independence with the listed company and ensure that the 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 FAW Car Co. Ltd. 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
Commi
FAW Car Co. Ltd. and its subordinate units. 2. Ensure that the listed company
tment
has a complete and independent labor human resources and salary management
on
system which is completely independent of FAW Car Co. Ltd. and its
maintai
subordinate units. (II) Ensure the independence and integrity of the assets of the Lon The
ning
listed company: 1. Ensure that the listed company has independent and complete April g- commitme
China FAW the
assets all of which are under the control of the listed company and are 08 term nt is being
Co. Ltd. indepen
independently owned and operated by the listed company. 2. Ensure that FAW 2020 valid fulfilled
dence
Car Co. Ltd. and its subordinate units currently do not and will not illegally ity normally.of
occupy the funds and assets of the listed company. 3. China FAW Co. Ltd. will
listed
not use the assets of the listed company to guarantee its debts. (III) Ensure the
compan
financial independence of the listed company: 1. Ensure that the listed company
ies
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
109Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
independently and 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 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
tment 1. We will not interfere with the operation and management activities of the listed
on company beyond our authority and will not encroach on the interests of the listed Lon The
measur company; 2. In this major asset restructuring the listed company issued shares to April g- commitme
China FAW
es to FAW Car Co. Ltd. to purchase assets and signed the Profit Forecast 08 term nt is being
Co. Ltd.fill Compensation Agreement attached with effective conditions with FAW Car Co. 2020 valid fulfilled
diluted Ltd. providing legally binding safeguard measures to avoid diluted spot returns ity normally.spot in this transaction.returns
China FAW Descrip The production qualification and product announcement of Jiefang Limited will April Lon The
110Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Group Co. tion on be under the group management of FAW that is Jiefang Limited will use the 08 g- commitme
Ltd. vehicle production qualification of FAW vehicles and its production qualification and 2020 term nt is being
product product announcement declaration will be under the unified management of valid fulfilled
ion FAW. Upon completion of the restructuring FAW will continue to maintain ity normally.qualific group management based on the actual needs of Jiefang Limited. Jiefang Limited
ation can continue to use relevant production qualifications and keep the
announcement 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
Commi
for 0.6% of the total area of house ownership of Jiefang Limited and its holding
tment
subsidiaries which is relatively small and will not have a significant adverse Lon The
on Nove
impact on the normal production and operation of Jiefang Limited. As the g- commitme
China FAW defects mber
counterparty of the restructuring the Company promises that the failure to obtain term nt is being
Co. Ltd. of 27
the corresponding ownership certificate of the above properties will not adversely valid fulfilled
underly 2019
affect the normal production and operation of Jiefang Limited and will not ity normally.ing
constitute a substantial obstacle to the restructuring. If the listed company or
assets
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 If I hold shares in FAW Jiefang prior to this restructuring I will not reduce my To The
Commitm directors Other FAW Jiefang shareholdings through direct or indirect means from the date of the Octob the transfer
ents made supervisors commit first disclosure of this transaction by FAW Jiefang until its completion nor do I er 22 com procedures
during and senior ments have any plans to reduce FAW Jiefang shares. During this period if I receive 2024 pleti for the
asset officers of additional shares due to FAW Jiefang’s issuance of bonus shares conversion of on target
111Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
restructuri the listed capital reserves into share capital or other such events I will also abide by the of assets
ng company aforementioned arrangements. If the China Securities Regulatory Commission impl involved
(Wu Bilei and the Shenzhen Stock Exchange implement new regulations regarding share eme in this
Li Sheng reduction I will also strictly comply with such relevant regulations. ntati transaction
Wang Hao on have been
Liu fully
Yanchang completed.Deng OnApril
Weigong 28 2025
Chen Hua the
Han Company
Fangming disclosed
Mao theZhihong “AnnouncDong ement on
Zhonglang the
Li Ying Xu Completio
Haigen n of
Wang Lijun Transfer
Duan of Target
Yinghui Yu Assets in
Changxin Major
Ji Yizhi Asset
Wang Disposal
Jianyu and
Wang Related
Jianxun) Party
Transaction.”The
112Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Company
no longer
holds
equity in
FAW
Finance
Co. Ltd.Relevant
directors
supervisors
1. Not to convey interests to other entities or individuals gratuitously or on unfair
and senior
terms nor to adopt other methods to damage the interests of the listed company;
officers of
2. To constrain one’s own duty-related consumption behavior; 3. Not to use the
listed
assets of the listed company to engage in investment or consumption activities
companies
unrelated to the performance of one’s duties; 4. The remuneration system
(Wu Bilei
formulated by the Board of Directors or the Compensation and Evaluation
Li Sheng
Committee shall be linked to the implementation of the listed company’s Lon The
Wang Hao
Other measures to fill diluted immediate returns; 5. The exercise conditions of the listed Octob g- commitme
Liu
commit company’s equity incentives (if any) to be announced shall be linked to the er 29 term nt is being
Yanchang
ments implementation of the listed company’s measures to fill diluted immediate 2024 valid fulfilled
Deng
returns. I commit to strictly fulfilling the above commitments to ensure the ity normally.Weigong
company’s return compensation measures can be effectively implemented. If I
Chen Hua
violate or refuse to fulfill the above commitments resulting in losses to the listed
Han
company I will bear legal responsibility for compensation and agree to accept
Fangming
relevant penalties or management measures in accordance with regulations and
Mao
rules established or issued by the China Securities Regulatory Commission the
Zhihong
Shenzhen Stock Exchange and other securities regulatory authorities.Dong
Zhonglang
Li Ying Xu
113Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Haigen
Wang Lijun
Duan
Yinghui Yu
Changxin
Ji Yizhi
Wang
Jianyu
Wang
Jianxun)
1. Following the completion of this restructuring the Company will strictly
exercise shareholder rights in accordance with the relevant provisions of the
Commi
“Company Law” and other laws administrative regulations rules and normative
tments
documents (hereinafter referred to as “laws and regulations”) and the “Articles ofregardiAssociation of the Company.” The Company will fulfill its obligation to abstain
ng
from voting when the Board of Directors and shareholders’ meetings vote on
horizon
related party transactions involving the Company. 2. We will commit to putting
tal
an end to all illegal occupation of the funds and assets of the listed company and Lon The
competi
China FAW guarantee not to illegally transfer the funds and assets of the listed company or Octob g- commitme
tion
Group Co. harm the interests of the listed company and other shareholders of the listed er 29 term nt is being
related
Ltd. company by making use of relevant transactions. 3. We will try best to avoid or 2024 valid fulfilled
party
reduce related transactions with listed companies and enterprises controlled by ity normally.transact
them. For related transactions that cannot be avoided or exist with reasonable
ions
reasons we will strictly follow the principles of fairness impartiality and
and
openness in the market sign standardized related transaction agreements with
fund
listed companies according to law and perform related transaction decision-
appropr
making procedures in accordance with relevant laws and regulations and the
iation
Articles of Association. The price of related transactions shall be determined
based on the market-oriented pricing principle to ensure its fairness and to
114Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
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 listed companies.(I) Ensure the personnel independence of the listed company: 1. Maintain
personnel independence with the listed company and ensure that the 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 Lon The
China FAW Other Company and its subordinate units. 2. Ensure that the listed company has a Octob g- commitme
Group Co. commit complete and independent labor human resources and salary management er 29 term nt is being
Ltd. ments system which is completely independent of the Company and its subordinate 2024 valid fulfilled
units. (II) Ensure the independence and integrity of the assets of the listed ity normally.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 the Company and its
subordinate units 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
115Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
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 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.Other From the date of the first disclosure of FAW Jiefang’s restructuring until its Octob To The
China FAW
commit completion the Company will not reduce its FAW Jiefang shareholdings nor er 22 the transfer
Co. Ltd.ments does it have any plans to reduce FAW Jiefang shares. During this period if the 2024 com procedures
116Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Company receive additional shares due to FAW Jiefang’s issuance of bonus pleti for the
shares conversion of capital reserves into share capital or other such events I on target
will also abide by the aforementioned arrangements. If the China Securities of assets
Regulatory Commission and the Shenzhen Stock Exchange implement new impl involved
regulations regarding share reduction the Company will also strictly comply with eme in this
such relevant regulations. ntati transaction
on have been
1. The Company shall exercise shareholder rights in accordance with relevant fully
laws regulations and the Articles of Association of the listed company without completed.exceeding its authority to interfere in the operation and management of the listed On April
To
company and without infringing upon the interests of the listed company;2. From 28 2025
the
the date of this commitment until the completion of the listed company’s current the
com
restructuring if the Shenzhen Stock Exchange issues new regulatory provisions Company
pleti
Other regarding supplementary return measures and their commitments and the above Octob disclosed
China FAW on
commit commitments cannot satisfy such provisions the Company undertakes to issue er 29 the
Co. Ltd. ofments supplementary commitments in accordance with the latest provisions of the 2024 “Announcimpl
Exchange;3. If the Company violates or refuses to fulfill the above commitments ement on
eme
resulting in losses to the listed company the Company will bear legal the
ntati
responsibility for compensation and agrees to accept relevant penalties or Completio
on
management measures in accordance with regulations and rules established or n of
issued by the China Securities Regulatory Commission the Shenzhen Stock Transfer
Exchange and other securities regulatory authorities. of Target
From the date of the first disclosure of FAW Jiefang’s restructuring until its To Assets in
completion the Company will not reduce its FAW Jiefang shareholdings nor the Major
FAW
Other does it have any plans to reduce FAW Jiefang shares. During this period if the Octob com Asset
Bestune
commit Company receive additional shares due to FAW Jiefang’s issuance of bonus er 22 pleti Disposal
Auto Co.ments shares conversion of capital reserves into share capital or other such events I 2024 on and
Ltd.will also abide by the aforementioned arrangements. If the China Securities of Related
Regulatory Commission and the Shenzhen Stock Exchange implement new impl Party
117Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
regulations regarding share reduction the Company will also strictly comply with eme Transactiosuch relevant regulations. ntati n.”The
on Company
no longer
holds
equity in
FAW
Finance
Co. Ltd.Relevant 1. I commit not to transfer benefits to other units or individuals without
directors compensation or on unfair terms and not to use other methods that harm the
supervisors Company’s interests;
and senior 2. I commit to restrict my position-related consumption behavior;
officers of 3. I commit not to use Company assets for investment or consumption activities
listed unrelated to my duties;
Commi
Commitm companies 4. I commit that the remuneration system established by the Board of Directors or
tment
ent made (Hu Hanjie the Compensation and Evaluation Committee will be linked to the
on Lon The
upon Wu Bilei Li implementation of the Company’s return compensation measures;
measur June g- commitme
initial Sheng Yu 5. I commit that the exercise conditions for equity incentives will be linked to the
es to 19 term nt is being
public Changxin implementation of the Company’s return compensation measures;
fill 2023 valid fulfilled
offering or Liu 6. After the issuance date of this commitment and before the completion of this
diluted ity normally.refinancin Yanchang issuance if the China Securities Regulatory Commission (CSRC) issues other
spot
g Han new regulatory requirements regarding return compensation measures and related
returns
Fangming commitments and the above commitments cannot satisfy these CSRC
Mao requirements I commit to issue supplementary commitments in accordance with
Zhihong the CSRC’s latest requirements;
Dong 7. I commit to effectively fulfill all commitments made. If I violate or refuse to
Zhonglang fulfill these commitments I will publicly provide explanations and apologize at
Wang the Shareholders’ Meeting and in newspapers designated by the China Securities
118Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Jianxun Regulatory Commission accept relevant regulatory measures; if my violation of
Zhang the commitments causes losses to the Company or investors I will bear legal
Guohua Bi liability in accordance with the law.Wenquan
Li
Hongjian
Tian
Haifeng Ji
Yizhi)
In accordance with relevant regulations the Company’s controlling shareholder
FAW Bestune Auto Co. Ltd. and its party acting in concert FAW Bestune Auto
Commi Co. Ltd. make the following commitments to ensure the Company’s return
tment compensation measures can be effectively implemented:
China FAW
on 1. Not to interfere with the Company’s business management activities beyond Lon The
Co. Ltd.measur authorized powers and not to misappropriate the Company’s interests; June g- commitme
FAW
es to 2. After the issuance date of this commitment and before the completion of this 19 term nt is being
Bestune
fill issuance if the China Securities Regulatory Commission and Shenzhen Stock 2023 valid fulfilled
Auto Co.diluted Exchange issue other new regulatory requirements regarding return compensation ity normally.Ltd.spot measures and related commitments and this commitment cannot satisfy these
returns 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
commitme
nt
Other
commitme N/A N/A
nts to
119Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
minority
shareholde
rs of the
Company
Based on confidence in your company’s future development and recognition of
its intrinsic value and to enhance investor confidence maintain capital market
stability and protect investor interests China FAW Co. Ltd. commits not to
Other Other Januar
China FAW reduce its shareholding in your company through any means during 2025. During In
commitme commit y 17 Fulfilled
Co. Ltd. this commitment period China FAW Co. Ltd. will also apply this commitment to 2025
nts ments 2025
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
commitme
Yes
nt is
fulfilled
on time
If the
commitme
nt is not
fulfilled
within the
time limit N/A
the
specific
reasons for
the failure
and the
120Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
next work
plan shall
be
explained
in detail
121Full Text of Annual Report 2025 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 Whether the Assets
or Projects Reach the Original Profit Forecast and the Reasons
□Applicable□Not applicable
3. Performance Commitments Involving the Company
□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 applicableV. Description of the Board of Directors 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
There is no change in accounting policies accounting estimates or correction of significant
accounting errors in the reporting period of the Company.
122Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
VII. Description of Changes in the Scope of Consolidated Statements Compared with the
Financial Report of the Previous Year
□Applicable □Not applicable
On September 4 2025 the Company invested in establishing Jiefang Best Co. Ltd.On November 9 2025 the Company invested in establishing Jiefang Saudi Arabia Co. Ltd.VIII. Appointment and Dismissal of Accounting Firm
Accounting Firm Currently Hired
BDO China Shu Lun Pan Certified Public
Name of Domestic Accounting Firm
Accountants LLP (Special General Partnership)
Remuneration of Domestic Accounting Firm
83.60
(CNY 10 thousand)
Consecutive Years of Audit Service Provided
1 years
by Domestic Accounting Firm
Name of Certified Public Accountant of
Xu Peimei Liu Chongjun
Domestic Accounting Firm
Consecutive Years of Audit Service Provided
by Certified Public Accountant of Domestic Xu Peimei and Liu Chongjun: 1 year each.Accounting Firm
Whether to change to hire a new accounting firm in the current period
□Yes□No
Whether to change the accounting firm during the audit period
□Yes□No
Whether the approval procedures for changing the accounting firm have been performed.□Yes□No
Detailed explanation of the re-appointment and change of accounting firm.In view of the fact that the Company’s former accounting firm Grant Thornton Certified
Public Accountants (Special General Partnership) has provided audit services to the Company for
8 consecutive years in order to better ensure the independence and objectivity of audit work and
in accordance with relevant regulations such as the Management Measures for the Selection and
Appointment of Accounting Firms by State-owned Enterprises and Listed Companies after
comprehensive evaluation and prudent research the Company changed to BDO China Shu Lun
Pan CPAs (Special General Partnership) to serve as the Company’s audit institution for the 2025
123Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
financial and internal control audits. This matter has been deliberated and passed by the 29th
meeting of the 10th Board of Directors and the 2025 Third Extraordinary General Meeting of
Shareholders of the company.Employment of accounting firm financial consultant or sponsor for internal control audit
□Applicable □Not applicable
After deliberation and adoption at the 29th meeting of the 10th Board of Directors and the
Third Extraordinary Shareholders’ Meeting of 2025 BDO China Shu Lun Pan Certified Public
Accountants LLP was appointed as the Company’s internal control audit institution for 2025 with
an internal control audit fee of CNY 600 thousand.IX. Delisting after Disclosure of Annual Report
□Applicable□Not applicable
X. Matters Related to Bankruptcy Reorganization
□Applicable□Not applicable
The Company has no matters related to bankruptcy reorganization in the reporting period.XI. Major Litigation and Arbitration Matters
□Applicable □Not applicable
Basic
Progress Implementa Disc
Informati Amount Estimated Litigation Date
of tion of losur
on about Involved Liabilities (Arbitration) of
Litigation Litigation e
Litigation (CNY 10 Formed or Results and Disclo
(Arbitratio (Arbitration Inde
(Arbitrati thousand) Not Impact sure
n) ) Judgment x
on)
Summary Including Case not
of other estimated closed by
No
litigation liabilities of Case not the end of
8644.69 significant
not CNY closed the
impact
reaching 52.8228 reporting
the major million period
disclosure Case No Judgment
1706.95 No
standard closed significant has been
124Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
impact made or the
execution
has been
completed
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
XIV. Major Related Transactions
125Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
1. Related Transactions in Daily Operations
□Applicable □Not applicable
Whet
Pricin Settle
Price Proporti her it
g ment
of Amount of on to the Approved Exce
Content of Princi Metho Available
Type of Relat Related Amount Transactio eds Date of
Related Correlati Related ple of d of Market Value Disclosure
Related ed Transaction of n Amount the Disclosu
Transaction Party on Transactio Relate Relate of Similar Index
Transaction Trans (CNY 10 Similar (CNY 10 Appr re
n d d Transactions
actio thousand) Transacti thousand) oved
Transa Transa
n ons Amo
ction ction
unt
Goods Goods http://www.purchase purchase Cash
Other Mark cninfo.com.Fawer Auto Parts and and Marke + bill
related et 155462.64 2.76% 207831 No 155462.64 cn/new/disc
Co. Ltd. reception of reception t price settle
parties price losure/detai
labor of labor ment lplate=szs
services services e&orgId=g
Februar
FAW Jiefang Cash ssz0000800
Other Mark y 19
Fujie (Tianjin) Sales of Sales of Marke + bill &stockCod
related et 218692.94 3.49% 250000 No 218692.94 2025
Technology goods goods t price settle e=000800&
parties price
Industry Co. Ltd. ment announcem
Jiefang Times Cash entId=1222
Other Mark
New Energy Sales of Sales of Marke + bill 570115&an
related et 176843.71 2.82% 205000 No 176843.71
Technology Co. goods goods t price settle nouncemen
parties price
Ltd. ment t
Total -- -- 550999.29 -- 662831 -- -- -- -- --
Details of large sales returns N/A
For details about the actual performance of related transactions in the reporting period
Actual performance in the reporting period if the total amount of daily related
please see Item XIV “Related Parties and Related Transactions” in Section VIII of this
transactions to be incurred in the current period is estimated by category
report.
126Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Reasons for large difference between transaction price and market reference price N/A
127Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
2. Related Transactions Arising from the Acquisition and Sale of Assets or Equity
□Applicable□Not applicable
The Company has no related transactions arising from the acquisition and sale of assets or equity
in the reporting period.
3. Related Transactions of Joint Foreign Investment
□Applicable□Not applicable
The Company has no related transactions of joint foreign investment in the reporting period.
4. Related Credit and Debt Transactions
□Applicable □Not applicable
Whether there are non-operating related credit and debt transactions
□Yes□No
The Company has no non-operating related credit and debt transactions in the reporting period.
5. Transaction with Related Finance Companies
□Applicable □Not applicable
Deposit Business
Amount Incurred in Current
Maximum Period
Daily Deposit Opening Total Closing
Related Deposit Interest Balance Total Deposit Withdrawal BalanceCorrelation
Parties Limit Rate (CNY 10 Amount in the Amount in the (CNY 10
(CNY 10 Range thousand) Current Period Current Period thousand)
thousand) (CNY 10 (CNY 10
thousand)
thousand)
First The same
Automobil ultimate 0.3%-
3000000887137.5149592258.2149334491.821144903.90
e Finance controlling 1.85%
Co. Ltd. party
Credit Granting or Other Financial Businesses
Actual Amount
Total
Related Parties Correlation Business Type Incurred
(CNY 10 thousand)
(CNY 10 thousand)
First Automobile Finance The same ultimate Other financial 1530000 170061.51
128Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Co. Ltd. controlling party businesses
6. Transactions between Finance Companies Controlled by the Company and Related
Parties
□Applicable□Not applicable
There is no deposit loan credit granting or other financial businesses between the finance
companies controlled by the Company and related parties.
7. Other Major Related Transactions
□Applicable □Not applicable
On February 18 2025 the 22nd meeting of the 10th Board of Directors of the Companyreviewed and approved “The Proposal on Estimated Amount of Daily Related Transactions in
2025” and “The Proposal on Estimated Amount of Financial Business with First AutomobileFinance Co. Ltd. in 2025” which were reviewed and approved by the First ExtraordinaryShareholders’ Meeting of the Company in 2025. On November 27 2025 the “Proposal on CapitalIncrease in Jiefang Times New Energy Technology Co. Ltd. by the Subsidiary” was deliberated
and adopted at the 31st Meeting of the 10th Board of Directors of the Company.Relevant Inquiries on Disclosure Website of Interim Report of Major Related Transactions
Disclosure Date of Name of Temporary
Name of Temporary
Temporary Announcement Disclosure
Announcement
Announcement Website
Announcement on estimated
CNINFO
amount of daily related February 19 2025
(http://www.cninfo.com.cn)
transactions in 2025
Announcement on estimated
amount of financial business CNINFO
February 19 2025
with First Automobile Finance (http://www.cninfo.com.cn)
Co. Ltd. in 2025
Announcement on Foreign
CNINFO
Investment and Related November 28 2025
(http://www.cninfo.com.cn)
Transactions
129Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
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 contracting made by the Company in the reporting period.
(3) Lease
□Applicable □Not applicable
Description of lease
For details of the Company’s operating lease please refer to Note 14 “Investment Property” Note
15 “Fixed Assets” and Note 19 “Right-of-Use Assets” in VII “Notes to Items in ConsolidatedFinancial Statements” of Section VIII “Financial Report” and 5 “Related Party 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 guarantees in the reporting period.
130Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
3. Cash Assets Management Entrusted to Others
(1) Entrusted Financial Management
□Applicable □Not applicable
Overview of Entrusted Wealth Management in the Reporting Period
Unit: CNY 10 thousand
Product The Balance of Entrusted
Category Risk Characteristics Financial Management in
Amount of Overdue
the Reporting Period Receivables
Bank Wealth
Management PR1 R1 low risk low
Products risk
00
Specific circumstances of the Company acting as a single principal entrusting financial
institutions to conduct asset management or investing in high-risk entrusted wealth management
products with lower security and poorer liquidity
□Applicable□Not applicable
(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.
131Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
XVI. Use of Raised Funds
□Applicable □Not applicable
1. Overall Use of Raised Funds
□Applicable □Not applicable
Unit: CNY 10 thousand
Amo
Gross Percent
unt
Utilizatio of Cumu age of
Gross of of
n Rate as Proceed lative Cumul Allocation
Proceeds Proce
Fundr Cumulative of the s Gross ative Total and
Securitie Utilized eds
Fundraisi aising Gross of Net of Utilized End of Repurp of Gross Unused Intended
s Listing during Unuti
ng Year Metho Proceeds Proceeds (1) Proceeds Reportin osed Proce of Gross of Use of
Date Current lized
d (2) g Period during eds Procee Proceeds Unused
Reporting for
(3) = (2) Reporti Repur ds Proceeds
Period over
/ (1) ng posed Repurp
Two
Period osed
Years
The funds
are held in
Privat
a
e
dedicated
place October
2024 200000 199781.34 13293.13 198854.68 99.54% 0 0 0.00% 1119.88 fundraisin 0
ment 21 2024
g account
of
with a
shares
segment
currently
132Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
allocated
for cash
manageme
nt.Total -- -- 200000 199781.34 13293.13 198854.68 99.54% 0 0 0.00% 1119.88 -- 0
Description of the Overall Use of Raised Funds:As approved by the China Securities Regulatory Commission (CSRC) in its “Reply on Approving the Registration of FAW Jiefang GroupCo. Ltd. for Issuance of Shares to Specific Objects” (CSRC Permit [2024] No. 972) and with consent from the Shenzhen Stock Exchange the
Company issued 298507462 ordinary shares (A shares) to specific objects through the Shenzhen Stock Exchange system via the lead
underwriter China International Capital Corporation Limited (hereinafter “CICC”) at an issue price of CNY 6.7 per share. The gross proceeds
totaled CNY 1999999995.40 and after deducting issuance expenses of CNY 2186599.36 (excluding VAT) the net proceeds amounted to
CNY 1997813396.04. The above net proceeds have been verified by Grant Thornton Certified Public Accountants (Special General
Partnership) in their “Verification Report.”
As of December 31 2025 the accumulated raised funds invested in the raised fund investment projects amounted to CNY
1988546789.38 with an unused amount of CNY 11198842.47 (including issuance expenses to be paid and interest income) of which: the
balance of cash management using temporarily idle raised funds was CNY 10000000.00.On April 29 2025 the Company held the 25th Meeting of the 10th Board of Directors and the 21st Meeting of the 10th Board of
Supervisors during which the “Proposal on the Postponement of Certain Raised Fund Investment Projects” was reviewed and approved. In
light of the actual construction progress of the fundraising investment projects and with no change to the implementing entities locations
investment purposes or total committed fundraising investment amounts it was agreed to postpone the completion date of the fundraising
project “FAW Jiefang Wuxi R&D Base Construction Project” to June 30 2026 and to postpone the completion date of the fundraising project
“FAW Jiefang Transmission Division Axle Base Construction Project and Heavy-Duty Replacement Axle Technology Upgrade (Phase I)” to
April 30 2025.
133Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.As of December 31 2025 the following projects funded by the raised funds have been completed: the “FAW Jiefang Commercial Vehicle
2022 New Energy Intelligent Connected R&D Capability Enhancement Project” the “FAW Jiefang Commercial Vehicle Development Institute
2023 Electronic Control System Development and Verification Capability Enhancement Project” the “FAW Jiefang Qingdao Base R&DCapability Enhancement Project” the “FAW Jiefang Qingdao Vehicle Division Light Vehicle Frame Business Integration and TechnologyUpgrade Project” the “FAW Jiefang Qingdao Vehicle Division Jimo Factory Sheet Metal Stamping Capacity Expansion Project” the “FAWJiefang Qingdao Vehicle Division Cab Painting Line Environmental Protection Technology Upgrade Project” the “FAW Jiefang TransmissionDivision Integrated Heavy-duty AMT Transmission Technology Transformation Project” the “New 13L and M Series Engine SharedProduction Line Technology Transformation Project” the “FAW Jiefang Transmission Division Axle Base Construction Project and Heavy-Duty Replacement Axle Technology Upgrade (Phase I) Project” and the “FAW Jiefang Powertrain Division Heavy-duty MT TransmissionAssembly Production Preparation Project”.
134Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
2. Raised Fund Committed Projects
□Applicable□Not applicable
3. Changes to Raised Fund Investment Projects
□Applicable□Not applicable
The Company had no changes to proceeds-funded projects during the reporting period.
4. Verification Opinions of Intermediaries on the Storage and Use of Raised Funds
□Applicable □Not applicable
After verification the sponsor believes that:
The Special Report on the Deposit and Use of Raised Funds of FAW Jiefang for 2025 wasprepared in accordance with the China Securities Regulatory Commission’s “Rules for theRegulation of Raised Funds of Listed Companies” (CSRC Announcement [2025] No. 10) and the“Self-regulatory Guidelines of Shenzhen Stock Exchange for Listed Companies No. 1 -Standardized Operation of Main Board Listed Companies” and other relevant regulations and
truthfully reflects the deposit and use of raised funds of FAW Jiefang for 2025.XVII. Other Major Matters to be Explained
□Applicable□Not applicable
There are no other major matters to be explained by the Company in the reporting period.XVIII. Major Events of Subsidiaries
□Applicable□Not applicable
135Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Section VI Changes in Shares and Shareholders
I. Changes in Shares
1. Changes in Shares
Unit: share
Before the Change Increase/Decrease Made by the Change (+ -) After the Change
Issue Share
of Bonu Transfer
Qty. Scale New s red from
Shar Shar Accumu
Others Subtotal Qty. Scale
es es lationFund
I. Restricted shares 300017695 6.09% -299574903 -299574903 442792 0.01%
1. Shares held by the state
2. Shares held by the
state-owned legal person 135820894 2.76% -135820894 -135820894
3. Shares held by other
domestic enterprises 147480384 3.00% -147037592 -147037592 442792 0.01%
Including: shares held
by domestic legal person 145970151 2.97% -145970151 -145970151
Shares held by
domestic natural person 1510233 0.03% -1067441 -1067441 442792 0.01%
4. Shares held by foreign
enterprises 16716417 0.34% -16716417 -16716417
Including: shares held
by overseas legal person 16716417 0.34% -16716417 -16716417
Shares held by
136Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
overseas natural person
II. Unrestricted shares 4622353481 93.91% 298484702 298484702 4920838183 99.99%
1. CNY ordinary shares 4622353481 93.91% 298484702 298484702 4920838183 99.99%
2. Foreign shares listed in
China
3. Foreign shares listed
overseas
4. Others
III.Total number of shares 4922371176 100.00% -1090201 -1090201 4921280975 100.00%
137Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Reasons for changes in shares
□Applicable □Not applicable
During the reporting period in view of the fact that the performance assessment objectives
set for the third release period of the reserved grants under the Phase I Restricted Share Incentive
Plan were not achieved and that the restricted shares granted to certain incentive recipients were
repurchased and canceled due to their assumption of positions such as employee supervisors a
total of 1090201 shares were repurchased and canceled.Approval of share changes
□Applicable □Not applicable
On March 28 2025 the 24th meeting of the 10th Board of Directors and the 20th meeting ofthe 10th Board of Supervisors of the Company reviewed and approved the “Proposal on theFailure to Achieve the Conditions for the Third Release Period of the Reserved Shares under the
Phase I Restricted Share Incentive Plan and on the Repurchase and Cancellation of CertainRestricted Shares and Adjustment of Repurchase Price” with a total of 1090201 restricted shares
repurchased and canceled. On April 18 2025 the proposal was reviewed and approved at the
Company’s 2024 Annual Shareholders’ Meeting.Transfer of shares changes
□Applicable □Not applicable
On June 3 2025 the Company submitted relevant registration materials to CSDC for the
1090201 shares involved in the equity incentive repurchase and cancellation. On June 6 2025
CSDC issued the “Confirmation of Securities Transfer Registration” to the Company and the
total share capital of the Company was reduced to 4921280975 shares.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 share capital of the Company decreased by 1090201 shares
which had little impact on the Company’s financial indicators such as basic earnings per share
diluted earnings per share and net assets per share attributable to shareholders with ordinary
shares of the Company.Other information disclosed as deemed necessary by the Company or required by the securities
regulatory authority
138Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
□Applicable□Not applicable
2. Changes in Restricted Shares
□Applicable □Not applicable
139Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Unit: share
Number of
Number of Restricted Number of
Number of
Restricted Shares Restricted
Restricted Shares Reason for
Name of Shareholder Shares at the Increased Shares at the Release Date
Released in the Restriction
Beginning of in the End of the
Current Period
the Period Current Period
Period
National Manufacturing
Non-public
Transformation and Upgrading 67164179 0 67164179 0 April 21 2025
offering
Fund Co. Ltd.Lord Abbett China Asset Non-public
57611940 0 57611940 0 April 21 2025
Management Co. Ltd. offering
Jilin Province Private Equity Non-public
46268656 0 46268656 0 April 21 2025
Co. Ltd. offering
Caitong Fund Management Co. Non-public
30447765 0 30447765 0 April 21 2025
Ltd. offering
AEGON-INDUSTRIAL Fund Non-public
25074626 0 25074626 0 April 21 2025
Management Co. Ltd. offering
Jilin Province Yandong State-
Non-public
Owned Capital Investment Co. 22388059 0 22388059 0 April 21 2025
offering
Ltd.Non-public
UBS AG 16716417 0 16716417 0 April 21 2025
offering
Jilin Changbai Mountain Private Non-public
16417910 0 16417910 0 April 21 2025
Fund Management Co. Ltd. - offering
140Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Jilin Province Qianheng
Investment Partnership (Limited
Partnership)
Changchun Equity Investment
Fund Management Co. Ltd. -
Non-public
Changchun Changxing Equity 16417910 0 16417910 0 April 21 2025
offering
Investment Fund Partnership
(Limited Partnership)
The shares held are
released from
Other Senior Executives and Executive
1510233 0 1067441 442792 restriction annually in
Personnel lockup
accordance with
relevant regulations.Total 300017695 0 299574903 442792 -- --
141Full Text of Annual Report 2025 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
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 in accordance with the restricted stock incentive plan the
Company repurchased and canceled the restricted stocks granted to relevant incentive recipients
who did not meet the requirements under the restricted stock incentive plan reducing the
Company’s share capital by a total of 1090201 shares and the total number of the Company’s
shares changed from 4922371176 shares to 4921280975 shares.
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
of
Total Ordinary Total Number
Number of Sharehol of Total Number of
Sharehold ders at Shareholders Preferred
ers with the End with Shareholders
Ordinary of the Preferred with Resumed
Shares at 78938 Last 73783 Shares with 0 Voting Rights at 0
the End of Month Restored the End of the
the before Voting Rights Last Month
Reporting the at the End of before the
Period Disclosu the Reporting Disclosure Datere Date Period
of the
Annual
Report
Shareholdings of Shareholders Holding More than 5% of the Shares or Top 10 Shareholders (Excluding Shares Lent
through Securities Refinancing).Name of Nature of Share Number of Increase and Numbe Number of Pledge Marking
142Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Sharehold Sharehold Proporti Shares Held at Decrease in r of Unrestricted or Freezing
er ers on the End of the the Reporting Restric Shares Held
Reporting Period ted Status
Period Shares of Qty.Held Shares
China State-
FAW Co. ownedlegal 62.19% 3060649901 0 0 3060649901 N/A 0Ltd. person
FAW State-
Bestune owned
Auto Co. legal 15.94% 784500000 0 0 784500000 N/A 0
Ltd. person
National
Manufactu
ring State-
Transform owned
ation and legal 1.36% 67164179 0 0 67164179 N/A 0
Upgrading person
Fund Co.Ltd.Hong
Kong
Securities Overseas
Clearing legal 0.98% 48404715 -12068978 0 48404715 N/A 0
Company person
Ltd.Qu Overseas
Hongzhen natural 0.73% 36096590 0 0 36096590 N/A 0person
Duanmu Domestic
Xiaoyi natural 0.64% 31337901 26718601 0 31337901 N/A 0person
Jilin
Province State-
Private ownedlegal 0.34% 16573152 -29695504 0 16573152 N/A 0Equity
Co. Ltd. person
Liang Domestic
Jianhui natural 0.29% 14231400 4219900 0 14231400 N/A 0person
Domestic
Chao Guo natural 0.17% 8441758 -19000 0 8441758 N/A 0
person
Basic
Pension
Fund 901 Others 0.17% 8304665 8304665 0 8304665 N/A 0
Portfolio
Strategic investors or
Among the above shareholders investors such as National Manufacturing Transformation
general legal persons
and Upgrading Fund Co. Ltd. and Jilin Province Private Equity Co. Ltd. became the
who become the top 10
Company’s top ten shareholders due to the Company’s issuance of shares to specific objects.shareholders due to the
143Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
issuance of new shares
Among the above shareholders FAW Bestune is a holding subsidiary of FAW and is a
Description of person acting in concert as specified in the Regulations for the Takeover of Listed
correlation or concerted Companies. The public disclosure data indicates that the Company does not know whether
action of the above there is a correlation between other shareholders of outstanding shares nor whether other
shareholders shareholders of outstanding shares are persons acting in concert as specified in the
Regulations for the Takeover of Listed Companies.Description of
involvement of the
above shareholders in
N/A
entrusting/entrusted
voting rights and
waiving voting rights
Special description of
the existence of
repurchase dedicated N/A
accounts among the top
10 shareholders
Shareholding of the Top 10 Shareholders with Unrestricted Shares (Excluding Shares Lent via Margin Trading and
Locked-up Shares of Senior Executives)
Number of Unrestricted Type of Shares
Name of Shareholder Shares Held at the End of the
Reporting Period Type of Shares Qty.China FAW Co. Ltd. 3060649901 CNY ordinary shares 3060649901
FAW Bestune Auto Co. Ltd. 784500000 CNY ordinary shares 784500000
National Manufacturing
Transformation and Upgrading 67164179 CNY ordinary shares 67164179
Fund Co. Ltd.Hong Kong Securities Clearing
48404715 CNY ordinary shares 48404715
Company Ltd.Qu Hongzhen 36096590 CNY ordinary shares 36096590
Duanmu Xiaoyi 31337901 CNY ordinary shares 31337901
Jilin Province Private Equity Co.
16573152 CNY ordinary shares 16573152
Ltd.Liang Jianhui 14231400 CNY ordinary shares 14231400
Chao Guo 8441758 CNY ordinary shares 8441758
Basic Pension Fund 901
8304665 CNY ordinary shares 8304665
Portfolio
Description of correlation or Among the above shareholders FAW Bestune is a holding subsidiary of FAW and
concerted action between the top is a person acting in concert as specified in the Regulations for the Takeover of
10 shareholders of unrestricted Listed Companies. The public disclosure data indicates that the Company does not
shares and between the top 10 know whether there is a correlation between other shareholders of outstanding
shareholders of unrestricted shares nor whether other shareholders of outstanding shares are persons acting in
144Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
shares and the top 10 concert as specified in the Regulations for the Takeover of Listed Companies.shareholders
Qu Hongzhen an overseas natural person holds 36096590 shares of the Company
through the customer credit trading guarantee securities account of CITIC
Securities Company Limited; Duanmu Xiaoyi a domestic natural person holds
Description of participation in 31337901 shares of the Company through the customer credit trading guarantee
financing bonds business of the securities account of China Securities Co. Ltd.; Liang Jianhui a domestic natural
top 10 shareholders with person holds 14231400 shares of the Company through the customer credit
ordinary shares trading guarantee securities account of CICC Wealth Management Securities Co.Ltd.; Chao Guo a domestic natural person holds 8441600 shares of the Company
through the customer credit trading guarantee securities account of Minsheng
Securities Co. Ltd.Participation in securities lending business by shareholders holding more than 5% the top 10
shareholders and the top 10 shareholders of unrestricted tradable shares
□Applicable□Not applicable
Changes in the top 10 shareholders and top 10 shareholders of unrestricted tradable shares
compared to the previous period due to securities lending/return activities
□Applicable□Not applicable
Do the top 10 shareholders with ordinary shares and the top 10 shareholders with unrestricted
ordinary shares of the Company conduct agreed repurchase transactions in the reporting period
□Yes□No
The top 10 shareholders with ordinary shares and the top 10 shareholders with unrestricted
ordinary shares of the Company do not conduct agreed repurchase transactions in the reporting
period IV.
2. Information of Controlling Shareholders of the Company
Nature of controlling shareholder: central state-owned holding
Type of controlling shareholder: legal person
Legal
Name of Represent Date of
Controlling ative/Pers Establish Organizatio
Shareholder on in ment n Code
Main Business
Charge
Automobile manufacturing and
remanufacturing new energy vehicle
China FAW Qiu June 28 9122010157
manufacturing; design development
Co. Ltd. Xiandong 2011 1145270J
manufacturing and sales of automobile
parts and components such as engines and
145Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
transmissions; metal casting and forging
mold processing; engineering technology
research and test; professional technical
services; computer and software services;
thermal power generation and power
supply; heat production and supply; water
and gas supply; road freight transport;
warehousing; sales of mechanical
equipment hardware and electrical
equipment electronic products and vehicle
materials; lease of mechanical equipment;
advertising design production and release;
business services; labor service; sales of
vehicles and second-hand vehicles
(prohibited by laws regulations and
decisions of the State Council. Items
subject to approval according to the law
can be operated only after being approved
by relevant authorities) **
Equity of
Other
Domestic
and Foreign
Listed
Companies
Controlled
and N/A
Participated
by
Controlling
Shareholder
s in the
Reporting
Period
Changes in controlling shareholders in the reporting period
□Applicable□Not applicable
There is no change in the controlling shareholders of the Company in the reporting period.
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
146Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Legal Date of
Organization
Name of Actual Controller Representative/P Establishmen Main Business
Code
erson in Charge t
State-owned Assets
Supervision and
Administration N/A N/A N/A
Commission of the State
Council
Equity of Other Domestic
and Foreign Listed
Companies Controlled by N/A
Actual Controllers in the
Reporting Period
Change of actual controller in the reporting period
□Applicable□Not applicable
There is no change in the actual controller of the Company in the reporting period.Block Diagram of Property Right and Control Relationship between the Company and the Actual Controllers
State-owned Assets Supervision and Administration
Commission of the State Council (SASAC)
China FAW Group Co. Ltd.FAW Equity Investment (Tianjin) Co. Ltd.FAW Car Co. Ltd. FAW Bestune Auto Co. Ltd.FAW Jiefang Group Co. Ltd.The actual controllers control the Company by trust or other asset management methods
□Applicable□Not applicable
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
147Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
5. Other Corporate Shareholders Holding More Than 10% of the Shares
□Applicable □Not applicable
Legal
Name of Represent Date of
Registered Main Business or Management
Corporate ative/Pers Establishme
Capital Activities
Shareholder on in nt
Charge
Development manufacturing and
sales of automobiles and parts
(including new energy vehicles and
their related batteries motors
electronic controls and excluding
flammable and explosive hazardous
chemicals) station wagons and their
accessories intelligent products and
equipment; vehicle repair; processing
of non-standard equipment; sales of
mechanical accessories and
mechanical and electrical products
(excluding cars); sales of second-
hand vehicles; lease of vehicles;
lease of premises and plant; road
general cargo transportation; modern
FAW
Liu CNY trade logistics services; technical
Bestune June 28
Zhongche 5.173735913 services and technical consultation in
Auto Co. 2019
n billion the automobile field; using the
Ltd.Internet to engage in automobile
operation; import and export of
goods and technology (excluding
publication import and export
business as well as commodities and
technologies that are restricted or
prohibited for import and export by
the state); second-hand vehicle
brokerage; part-time insurance
agency business; motor vehicle
repair and maintenance; recycling of
end-of-life motor vehicles;
disassembly of end-of-life motor
vehicles; business training
(excluding education training
vocational skills training and other
148Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
training requiring licenses);
stationery retail stationery
wholesale; sales of automotive
decoration products; sales of
lubricating oil; IoT technology R&D
and technical services;
manufacturing of power transmission
and distribution and control
equipment; advertising design
agency; advertising production;
advertisement release (non-radio
stations TV stations newspapers and
periodicals publishers); labor service
(excluding labor dispatch); motor
vehicle safety technology testing
service; artificial intelligence public
data platform; data processing and
storage support services; Internet
data service; inspection and testing
services; general cargo warehousing
services (excluding hazardous
chemicals and other items requiring
licensing and approval); marketing
planning; lease of computer and
communication equipment;
conference and exhibition services;
lease of mechanical equipment;
Category I value-added
telecommunications services;
Category II value-added
telecommunications services;
intellectual property services (items
subject to approval according to law
can be operated only after being
approved by relevant authorities).
6. Restricted Reduction of Shares Held by Controlling Shareholders Actual Controllers
Restructuring Parties and Other Commitment Subjects
□Applicable□Not applicable
149Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
IV. Specific Implementation of Share Repurchase in the Reporting Period
Implementation progress of share repurchase
□Applicable□Not applicable
Implementation Progress of Reducing Shareholding in Repurchased Shares by Centralized
Bidding
□Applicable□Not applicable
V. Preferred Shares
□Applicable□Not applicable
The Company has no preferred shares in the reporting period.
150Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Section VII Bonds
□Applicable□Not applicable
151Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Section VIII Financial Report
I. Audit Report
Type of Audit Opinion Standard unqualified opinion
Signing Date of Auditor Report March 26 2026
BDO China Shu Lun Pan Certified Public
Name of Audit Institution Accountants LLP (Special General
Partnership)
Audit Report No. Xin Hui Shi Bao Zi [2026] No. ZG10213
Name of Certified Public Accountant Xu Peimei Liu Chongjun
Text of Auditor 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 parent company balance sheets as of
December 31 2025 the consolidated and parent company income statements consolidated and
parent company cash flow statements and consolidated and parent company statements of changes
in owners’ equity for the year 2025 as well as the related notes to the financial statements.In our opinion the accompanying financial statements present fairly in all material respects
the consolidated and parent company financial position of FAW Jiefang as of December 31 2025
and the consolidated and parent company results of operations and cash flows for the year 2025 in
accordance with the provisions of the Accounting Standards for Business Enterprises.II. Basis for Opinion
We have conducted our audit in accordance with the Auditing Standards for Certified PublicAccountants of China. The section in the Auditor’s Report titled “CPAs’ Responsibilities for theAudit of the Financial Statements” further describes our responsibilities under these standards. Inaccordance with the “China Standards on Auditing Independence No. 1 — IndependenceRequirements for Financial Statement Audit and Review Engagements” and the Code of
Professional Ethics for Chinese Certified Public Accountants we are independent of FAW Jiefang
and have fulfilled our other ethical responsibilities. We have complied with the independence
requirements for the audit of public interest entities throughout our audit. We believe that the audit
152Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
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 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.The key audit matters identified in our audit are summarized as follows:
(I) Income Recognition
(II) Provision for Decline in Value of Inventories
(III) Provision for Product Quality Guarantee Deposit
Key Audit Matters How the Matter Was Addressed in Our Audit
(I) Income Recognition
Please refer to the accounting policy The audit procedures we performed for revenue
described in Note III (XXVI) “Revenue” and recognition mainly included:Note V (XLV) “Operating Revenue and (1) Understanding evaluating and testing theOperating Costs” in the notes to the effectiveness of the design and execution of internal
consolidated financial statements. controls related to operating revenue;
(2) Selecting a sample of major sales contracts
The sales revenue of FAW Jiefang mainly reading and analyzing the contract terms related to
comes from the vehicle sales business. In the transfer of control and income recognition and
2025 the operating revenue was CNY evaluating whether revenue recognition complies
62.678001 billion of which revenue from with the requirements of the Company’s accounting
complete vehicle sales was CNY policies;
58.0873282 billion accounting for 92.68% (3) Selecting samples to perform detailed testing of
of the operating revenue. income recognition and inspecting supporting
The vehicle sales income has a significant documents such as delivery notes shipping
impact on the financial statements of FAW documents and sales invoices;
Jiefang so we identified income recognition (4) Analyzing and comparing income and gross
as a key audit matter. margin by product type to determine whether
income and gross margin for the current period are
abnormal;
(5) Performing accounts receivable and revenue
153Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
confirmation procedures;
(6) For revenue recognized around the balance sheet
date selecting samples to inspect supporting
documents such as delivery notes shipping
documents and sales invoices to evaluate whether
the relevant revenue was recorded in the appropriate
accounting period.(II) Provision for Decline in Value of Inventories
Please refer to the accounting policy The audit procedures we performed regarding the
described in Note III (XI) “Inventories” and accrual of provision for inventory impairment
Note V (VII) “Inventories” in the notes to mainly included:
the consolidated financial statements. (1) Understanding evaluating and testing the
effectiveness of the design and operation of
As of December 31 2025 the book balance management’s internal controls related to the
of inventories of FAW Jiefang was CNY accrual of provision for inventory impairment;
13.730335 billion and the balance of (2) Obtaining the calculation sheet of provision for
provision for inventory impairment was inventory impairment of FAW Jiefang performing
CNY 314.9215 million. Management inventory impairment testing and analyzing
performed an impairment test on inventories whether the accrual of provision for inventory
at the end of the period and accrued impairment in the current period was sufficient;
provision for inventory impairment for (3) In conjunction with the inventory observation
inventories whose cost exceeded their net procedures inspecting the quantity and condition of
realizable value. Due to the complexity of inventories and focusing on long-aged inventories
the impairment testing process and the fact to identify indications of impairment;
that the annual inventory impairment test (4) Check the changes in the provision for inventory
involves significant judgments and depreciation reserves made in previous years in the
estimates we identified the accrual of current period and analyze the rationality of the
provision for inventory impairment as a key changes in the inventory depreciation reserves.audit matter.(III) Provision for Product Quality Guarantee Deposit
Please refer to the accounting policy The audit procedures we performed regarding thedescribed in Note III (XXIV) “Estimated accrual of provision for product quality warrantyLiabilities” and Note V (XXXVI) mainly included:
“Estimated Liabilities” in the notes to the (1) Understanding the process and internal controls
154Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
consolidated financial statements. related to product quality warranty testing the
As of December 31 2025 the balance of effectiveness of key controls therein and verifying
product quality warranty under estimated the effectiveness of automated system controls;
liabilities of FAW Jiefang was CNY (2) Evaluating the reasonableness of the current
1.1059808 billion. In accordance with the accrual method for product quality warranty
vehicle sales contracts and relevant national assessing and testing the key assumptions in the
laws and regulations customers are entitled accrual method; conducting sample testing on the
to warranty services provided by FAW actual product quality warranty expenses incurred
Jiefang within the warranty period. The during the year and inspecting and reviewing the
management of FAW Jiefang calculates the calculation of the balance;
product quality deposit based on the relevant (3) Reviewing the adequacy of relevant disclosures
provisions in the product type warranty in the notes to the financial statements.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.IV. Other Information
The management of FAW Jiefang (hereinafter referred to as the management) is responsible
for other information. Other information comprises the information included in the Annual Report
of Year 2025 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.
155Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
V. Responsibilities of Management and Those Charged with Governance for the Financial
Statements
Management is responsible for preparing financial statements that give a true and fair view in
accordance with the Accounting Standards for Business Enterprises and for designing executing
and maintaining such internal controls as management determines are necessary to enable the
preparation of financial statements that are free from material misstatement whether due to fraud or
error.In preparing the financial statements management is responsible for assessing FAW Jiefang’s
ability to continue as a going concern disclosing as applicable matters related to going concern
and applying the going concern assumption unless management either intends to liquidate FAW
Jiefang or to cease operations or has no realistic alternative but to do so.The governance is responsible for supervising the financial reporting process of FAW Jiefang.VI. Auditor’s 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 it 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 aggregate 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:
(I) 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.(II) Obtain an understanding of internal controls relevant to the audit in order to design
appropriate audit procedures.(III) Evaluate the appropriateness of accounting policies selected by management and the
reasonableness of accounting estimates and related disclosures made by management.
156Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
(IV) Conclude on the appropriateness of management’s use of the going concern assumption.Meanwhile based on the audit evidence obtained conclude whether a 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 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.(V) Evaluate the overall presentation (including disclosures) structure and content of the
financial statements and whether the financial statements fairly present the relevant transactions
and events.(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of
the entities or business activities within FAW Jiefang to express an audit opinion on the
consolidated 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
the 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 the rare cases
if a negative result that 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 CNY
157Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
1. Consolidated Balance Sheet
Prepared by: FAW Jiefang Group Co. Ltd.December 31 2025
Unit: CNY
Item Closing Balance Opening Balance
Current assets:
Monetary capital 22325269010.05 19852961021.66
Settlement reserve fund
Loans to banks and other
financial institutions
Financial assets held for trading
Derivative financial assets
Notes receivable 584654660.00 2641582.80
Accounts receivable 5275130370.45 7067296142.54
Accounts receivable financing 6556062093.60 10019816248.98
Prepayments 139082917.93 128639159.47
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves
receivable
Other receivables 1391631269.91 1340633312.48
Including: interests receivable
Dividends receivable 157707661.77
Financial assets purchased under
agreements to resell
Inventories 13415413449.26 10117213109.97
Including: Data resources
Contract assets 70941700.86 14455542.05
Held-for-sale assets
Current portion of non-current
355532986.69377668442.06
assets
Other current assets 1157140694.91 1413638174.22
Total current assets 51270859153.66 50334962736.23
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables 44977617.32 110911235.61
Long-term equity investments 1353025361.23 1176288461.09
Other equity instruments 210703161.60 540066528.00
158Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
investments
Other non-current financial
assets
Investment properties 44712225.12 52835976.31
Fixed assets 10993086978.42 11198300572.20
Project under construction 131371243.36 688181815.22
Productive biological assets
Oil and gas assets
Right-of-use assets 60896263.98 104360320.57
Intangible assets 2286284523.47 2337101200.98
Including: Data resources
Development expenditures 641106331.24 500611951.24
Including: Data resources
Goodwill
Long-term deferred expenses 74286.06
Deferred Income tax assets 3105779697.90 3061404632.44
Other non-current assets 2362921423.03 2644193586.72
Total non-current assets 21234939112.73 22414256280.38
Total assets 72505798266.39 72749219016.61
Current liabilities:
Short-term loans 50000000.00
Borrowing from the central bank
Placements from banks and
other financial institutions
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable 12809740164.11 15370906363.16
Accounts payable 21550325781.23 17246353969.05
Advance receipts 826097.22 674009.56
Contract liabilities 2603137668.68 2430554164.50
Financial assets sold under
agreement to repurchase
Deposits taking and interbank
deposits
Acting trading securities
Acting underwriting securities
Employee compensation payable 1083725750.16 1043554896.06
Taxes payable 167273861.22 215532903.02
Other payables 2544536206.49 4526208921.23
159Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Including: interests payable
Dividends payable 171500.02 171500.02
Handling charges and
commissions payable
Reinsurance accounts payable
Held-for-sale liabilities
Current portion of non-current
525893395.6129941701.02
liabilities
Other current liabilities 66560308.63 217767924.33
Total current liabilities 41402019233.35 41081494851.93
Non-current liabilities:
Insurance contract reserve
Long-term loans 136000000.00
Bonds payable
Including: preferred shares
Perpetual bond
Lease liabilities 1690109.49 27431600.64
Long-term payables
Long-term employee
630482718.02692790054.95
compensation payable
Estimated liabilities 668680940.39 992714878.02
Deferred income 2846844806.70 2936362847.77
Deferred income tax liabilities 594286.27 423775650.57
Other non-current liabilities
Total non-current liabilities 4284292860.87 5073075031.95
Total liabilities 45686312094.22 46154569883.88
Owner’s equities:
Share capital 4921280975.00 4922371176.00
Other equity instruments
Including: preferred shares
Perpetual bond
Capital reserves 11955912510.16 11961480047.74
Less: treasury shares 6246851.73
Other comprehensive incomes -387288724.63 -96912346.71
Special reserves 243304714.89 277345883.15
Surplus reserves 3205602868.01 3204548247.40
General risk provision
Undistributed profits 6532766397.35 6055339906.81
Total equity attributable to owners
26471578740.7826317926062.66
of the parent company
160Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Minority equity 347907431.39 276723070.07
Total owners’ equity 26819486172.17 26594649132.73
Total liabilities and owner’s
72505798266.3972749219016.61
equities
Person in charge of accounting: Yu Person in charge of the accounting
Legal representative: Li Sheng
Changxin organization: Yang Li
2.Balance Sheet of Parent Company
Unit: CNY
Item Closing Balance Opening Balance
Current assets:
Monetary capital 571979553.04 152222868.42
Financial assets held for trading
Derivative financial assets
Notes receivable
Accounts receivable
Accounts receivable financing
Prepayments 57405.15
Other receivables 6460014041.31 6470963348.86
Including: interests receivable
Dividends receivable 156960226.90
Inventories
Including: Data resources
Contract assets
Held-for-sale assets
Current portion of non-current
assets
Other current assets 987186.63 653349.48
Total current assets 7033038186.13 6623839566.76
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investments 21804474401.05 21795117325.10
Other equity instruments
investments
Other non-current financial
assets
161Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Investment properties
Fixed assets
Project under construction
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets
Including: Data resources
Development expenditures
Including: Data resources
Goodwill
Long-term deferred expenses
Deferred Income tax assets
Other non-current assets
Total non-current assets 21804474401.05 21795117325.10
Total assets 28837512587.18 28418956891.86
Current liabilities:
Short-term loans
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable
Accounts payable 5088942.18 2727107.71
Advance receipts
Contract liabilities
Employee compensation payable
Taxes payable 39901.02 3164670.01
Other payables 853949657.23 342246068.80
Including: interests payable
Dividends payable
Held-for-sale liabilities
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 859078500.43 348137846.52
Non-current liabilities:
Long-term loans 136000000.00
Bonds payable
Including: preferred shares
Perpetual bond
162Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Lease liabilities
Long-term payables
Long-term employee
compensation payable
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 136000000.00
Total liabilities 995078500.43 348137846.52
Owner’s equities:
Share capital 4921280975.00 4922371176.00
Other equity instruments
Including: preferred shares
Perpetual bond
Capital reserves 13797364225.24 13802357345.82
Less: treasury shares 6246851.73
Other comprehensive incomes 19640620.81 12671266.92
Special reserves
Surplus reserves 1969779748.05 1968725127.44
Undistributed profits 7134368517.65 7370940980.89
Total owners’ equity 27842434086.75 28070819045.34
Total liabilities and owner’s
28837512587.1828418956891.86
equities
3. Consolidated Profit Statement
Unit: CNY
Item 2025 2024
I. Total operating income 62678001039.04 58581106258.53
Including: operating income 62678001039.04 58581106258.53
Interest income
Premium earned
Handling charges and commission income
II. Total operating cost 62979266238.23 59785978592.21
Including: operating cost 58262038619.09 54908076523.43
Interest expense
Handling charges and commission expense
Surrender value
Net payments for insurance claims
Net allotment of reserves for insurance
163Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
liabilities
Policy dividend expenditure
Reinsurance expenses
Taxes and surcharges 262863207.79 220408020.64
Sales expenses 1333918967.92 1273327595.92
Administrative expenses 1440144286.03 1780652477.10
R&D expenses 2283177259.70 2409485641.76
Financial expenses -602876102.30 -805971666.64
Including: interest expenses 2035470.45 2594098.03
Interest income 564269093.28 619382020.15
Add: Other incomes 943091998.64 1129409077.07
Investment income (loss to be listed with “-”) -43164824.61 629692626.51
Including: income from investment in
11992373.29310581812.67
associates and joint ventures
Gains on derecognition of financial assets at
amortized costForeign 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 “--126496306.1854491805.98
”)
Asset impairment loss (loss to be listed with “-”) -293945662.73 -352823109.54
Income from assets disposal (loss to be listed
142942964.74-2556989.65
with “-”)
III. Operating Profit (loss is listed with “-”) 321162970.67 253341076.69
Add: non-operating income 80221260.29 101492545.66
Less: non-operating expenses 4238368.61 28784917.57
IV. Total Profit (total loss is listed with “-”) 397145862.35 326048704.78
Less: income tax expenses -391407360.39 -333222447.51
V. Net Profit (net loss is listed with “-”) 788553222.74 659271152.29
(I) Classified by continuity of operation
1. Net profit from continuing operations (net loss to
788553222.74659271152.29
be listed with “-”)
2. Net profit from discontinuing operations (net
loss to be listed with “-”)
(II) Classified by attribution of the ownership
1. Net profit attributable to the parent company’s 724545159.90 622427699.65
164Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
shareholders
2. Minority interests 64008062.84 36843452.64
VI. Net after-tax amount of other comprehensive
-276050288.0833703948.06
income
Net after-tax amount of other comprehensive income
-290376377.9230279772.76
attributable to the owners of the parent company
(I) Other comprehensive incomes that cannot be
-300094012.5127627126.17
reclassified into profits or losses
1. Changes arising from re-measurement of the
22300000.00-49140000.00
defined benefit plan
2. Other comprehensive incomes that cannot be
6969353.8917480598.17
transferred to profits or losses under the equity method
3. Changes in fair value of investment in other
-329363366.4059286528.00
equity instruments
4. Changes in fair value of the Company’s credit
risk
5. Others
(II) Other comprehensive incomes that will be
9717634.592652646.59
reclassified into profits or losses
1. Other comprehensive incomes that can be
-3202.96-5729510.11
transferred to profits or losses under the equity method
2. Changes in the fair value of other debt
investments
3. Amount of financial assets reclassified into
other comprehensive incomes
4.Other debt investment credit impairment
provisions
5. Cash flow hedging reserve
6. Translation difference in foreign currency
9720837.558382156.70
financial statements
7. Others
Net after-tax amount of other comprehensive income
14326089.843424175.30
attributable to minority shareholders
VII.Total comprehensive income 512502934.66 692975100.35
Total comprehensive income attributable to the
434168781.98652707472.41
owners of parent company
Total comprehensive income attributable to minority
78334152.6840267627.94
shareholders
VIII. Earnings per share:
(I) Basic income per share 0.1472 0.1266
165Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
(II) Diluted income per share 0.1472 0.1266
In case of business combination under common control in the current period the net profit realized by the
combined party before the combination and that in the previous period are CNY 0.00.Person in charge of accounting: Yu Person in charge of the accounting
Legal representative: Li Sheng
Changxin organization: Yang Li
4. Profit Statement of Parent Company
Unit: CNY
Item 2025 2024
I. Operating income
Less: operating costs
Taxes and surcharges -496286.41 3166349.56
Sales expenses
Administrative expenses 7292672.45 6547907.38
R&D expenses
Financial expenses -6093211.33 -2851411.56
Including: interest expenses 113534.51 319616.24
Interest income 6213187.24 3172289.49
Add: Other incomes 121677.32 57741.82
Investment Income (loss is listed with “-”) 11461994.70 1097043292.58
Including: income from investment in associates
461994.70274277967.89
and joint ventures
Gains on Derecognition of FinancialAssets Measured at Amortized Cost (loss is listed with “-”)
Net exposure hedging income (loss to be listed
with “-”)
Profit arising from changes in fair value (loss to be
listed with “-”)
Credit impairment loss (loss to be listed with “-”) -334294.26 114430.26
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 “-”) 10546203.05 1090352619.28
Add: non-operating income 3.07 394.35
Less: non-operating expenses
III. Total Profit (total loss is listed with “-”) 10546206.12 1090353013.63
Less: income tax expenses
IV. Net profit (net loss to be listed with “-”) 10546206.12 1090353013.63
166Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
(I) Net profit from continuing operations (net loss to be
10546206.121090353013.63
listed with “-”)
(II) Net profit from discontinuing operations (net loss
to be listed with “-”)
V. Net after-tax amount of other comprehensive incomes 6969353.89 11800830.06
(I) Other comprehensive incomes that cannot be
6969353.8917530340.17
reclassified into profits or losses
1. Changes arising from re-measurement of the
defined benefit plan
2. Other comprehensive incomes that cannot be
6969353.8917530340.17
transferred to profits or losses under the equity method
3. Changes in fair value of investment in other
equity instruments
4. Changes in fair value of the Company’s credit
risk
5. Others
(II) Other comprehensive incomes that will be
-5729510.11
reclassified into profits or losses
1. Other comprehensive incomes that can be
-5729510.11
transferred to profits or losses under the equity method
2. Changes in the fair value of other debt
investments
3. Amount of financial assets reclassified into
other comprehensive incomes
4.Other debt investment credit impairment
provisions
5. Cash flow hedging reserve
6. Translation difference in foreign currency
financial statements
7. Others
VI. Total comprehensive income 17515560.01 1102153843.69
VII. Income per share:
(I) Basic income per share
(II) Diluted income per share
5. Consolidated Cash Flow Statement
Unit: CNY
Item 2025 2024
I. Cash flows from operating activities:
Cash received from sales of goods and 60972563470.02 54819630825.44
167Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
provision of services
Net increase in customer bank deposits due to
banks and other financial institutions
Net increase in borrowings from the central
bank
Net increase in placements from other financial
institutions
Cash from premium of original insurance
contract
Net cash received from reinsurance business
Net increase in deposits and investments from
policyholders
Cash received from interests handling charges
and commissions
Net increase in placements from banks and
other financial institutions
Net increase in repurchase business capital
Net cash received from securities brokerage
Tax refunds received 475223292.85 145692795.01
Other cash received relating to operating
1518045902.101146308516.29
activities
Subtotal of cash inflows from operating activities 62965832664.97 56111632136.74
Cash paid for goods and services 51608983893.26 54675385707.83
Net increase in loans and advances to
customers
Net increase in deposits with central bank and
other financial institutions
Cash paid for original insurance contract
claims
Net increase in loans to banks and other
financial institutions
Cash paid for interests handling charges and
commissions
Cash paid for policyholder dividend
Cash paid to and on behalf of employees 5096326625.63 4710884428.17
Taxes paid 1224219502.15 1151234164.25
Cash paid for other operating activities 2351270211.27 1424414143.54
Subtotal of cash outflows from operating
60280800232.3161961918443.79
activities
Net cash flows from operating activities 2685032432.66 -5850286307.05
168Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
II. Cash flows from investment activities:
Cash received from the return of investment 30700000000.00 4357068905.33
Cash received from acquirement of investment
216333782.63574641722.82
income
Net cash received from fixed assets disposal
328940943.77167582454.39
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
31245274726.405099293082.54
activities
Cash paid to acquire fixed assets intangible
1041543628.361513680646.75
assets and other long-term assets
Cash paid to acquire investments 30891000000.00 4900000.00
Net increase in pledged loans
Net cash paid to acquire subsidiaries and other
147576957.96220832137.93
business units
Other cash paid relating to investment
1500000000.002400000000.00
activities
Subtotal of cash outflows from investment
33580120586.324139412784.68
activities
Net cash flows from investment activities -2334845859.92 959880297.86
III. Cash flows from financing activities:
Cash received from absorbing investment 1850208.64 1999915089.75
Including: cash received by subsidiaries
1850208.64
absorbing minority shareholders’ investments
Cash received from borrowings 186000000.00
Cash received relating to other financing
activities
Subtotal of cash inflows from financing activities 187850208.64 1999915089.75
Cash paid for repayment of debts 99890000.00
Cash paid for distribution of dividends profits
256192696.39713696364.17
or interest repayment
Including: dividends and profits paid to
9000000.0020000000.00
minority shareholders by subsidiaries
Other cash paid relating to financing activities 5720929.25 16667194.16
Subtotal of cash outflows from financing
261913625.64830253558.33
activities
Net cash flows from financing activities -74063417.00 1169661531.42
IV. Effects from change of exchange rate on cash -4087194.40 3231527.59
169Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
and cash equivalents
V. Net increase in cash and cash equivalents 272035961.34 -3717512950.18
Add: opening balance of cash and cash
19391201104.6823108714054.86
equivalents
VI. Closing balance of cash and cash equivalents 19663237066.02 19391201104.68
6. Cash Flow Statement of Parent Company
Unit: CNY
Item 2025 2024
I. Cash flows from operating activities:
Cash received from sales of goods and
provision of services
Tax refunds received
Other cash received relating to operating
1263477201.81884438956.93
activities
Subtotal of cash inflows from operating activities 1263477201.81 884438956.93
Cash paid for goods and services
Cash paid to and on behalf of employees 390000.00 378000.00
Taxes paid 3348222.21
Cash paid for other operating activities 747247140.17 7100228311.31
Subtotal of cash outflows from operating
750985362.387100606311.31
activities
Net cash flows from operating activities 512491839.43 -6216167354.38
II. Cash flows from investment activities:
Cash received from the return of investment 4357068905.33
Cash received from acquirement of investment
167960226.90920317192.20
income
Net cash received from fixed assets disposal
intangible assets and other long-term assets
Net cash received from the disposal of
subsidiaries and other business entities
Cash received from other investment activities
Subtotal of cash inflows from investment
167960226.905277386097.53
activities
Cash paid to acquire fixed assets intangible
assets and other long-term assets
Cash paid to acquire investments 1925727.36 380371837.52
Net cash paid to acquire subsidiaries and other
147576957.96
business units
Other cash paid relating to investment
170Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
activities
Subtotal of cash outflows from investment
149502685.32380371837.52
activities
Net cash flows from investment activities 18457541.58 4897014260.01
III. Cash flows from financing activities:
Cash received from absorbing investment 1999915089.75
Cash received from borrowings 136000000.00
Cash received relating to other financing
activities
Subtotal of cash inflows from financing activities 136000000.00 1999915089.75
Cash paid for repayment of debts
Cash paid for distribution of dividends profits
247192696.39693696364.17
or interest repayment
Other cash paid relating to financing activities
Subtotal of cash outflows from financing
247192696.39693696364.17
activities
Net cash flows from financing activities -111192696.39 1306218725.58
IV. Effects from change of exchange rate on cash
and cash equivalents
V. Net increase in cash and cash equivalents 419756684.62 -12934368.79
Add: opening balance of cash and cash
152222868.42165157237.21
equivalents
VI. Closing balance of cash and cash equivalents 571979553.04 152222868.42
171Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
7. Consolidated Statement of Changes in Owners’ Equity
Amount in the current period
Unit: CNY
2025
Equity Attributable to Owners of the Parent Company
Other G
Equity e
Instrumen n
ts e
r
P a
r
P l
e
e R
f O
r i
Item e t
p Other s
r O Less: Treasury Undistributed h
Minority Equity Total Owners’ Equity
Share Capital e Capital Reserves Comprehensive Special Reserves Surplus Reserves k Subtotal
r t Shares Profits e
t Incomes
e h r
u P
d e s
a r
r
l o
S s
B v
h
o i
a
n s
r
d i
e o
s n
I.Closing
balance
492237117611961480047.746246851.73-96912346.71277345883.153204548247.406055339906.8126317926062.66276723070.0726594649132.73
of the
previou
s year
Add:
changes
in
172Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
account
ing
policies
Correct
ion of
prior
period
errors
Others
II.Openin
g
Balance 4922371176 11961480047.74 6246851.73 -96912346.71 277345883.15 3204548247.40 6055339906.81 26317926062.66 276723070.07 26594649132.73
of the
current
year
III.Increas
e/decre
ase in
amount
of the
current -1090201 -5567537.58 -6246851.73 -290376377.92 -34041168.26 1054620.61 477426490.54 153652678.12 71184361.32 224837039.44
period
(decrea
se to be
listedwith “-”)
(I)
Total
compre -290376377.92 724545159.90 434168781.98 78334152.68 512502934.66
hensive
income
(II)
Investe -1090201 -5567537.58 -6246851.73 -410886.85 1850208.64 1439321.79
d and
173Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
decreas
ed
capital
of
owners
1.
Ordinar
y shares
-1090201-4993120.58-6083321.581850208.64-4233112.94
investe
d by
owners
2.
Capital
contrib
uted by
holders
of other
equity
instrum
ents
3.
Amoun
ts of
share-
based
paymen
ts
recorde
d in
owner’s
equity
4.
-574417.00-6246851.735672434.735672434.73
Others
(III)
Profit
1054620.61-247118669.36-246064048.75-9000000.00-255064048.75
distribu
tion
174Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
1.
Approp
riation
to 1054620.61 -1054620.61
surplus
reserve
s
2.
Approp
riation
to
general
risk
reserve
s
3.
Distrib
ution to
owners -246064048.75 -246064048.75 -9000000.00 -255064048.75
(or
shareho
lders)
4.
Others
(IV)
Internal
carryov
er of
owners’
equity
1.
Transfe
r from
capital
reserve
to paid-
in
175Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
capital
(or
share
capital)
2.
Transfe
r from
surplus
reserve
s to
paid-in
capital
(or
share
capital)
3.
Recove
ry of
losses
by
surplus
reserve
s
4.
Retaine
d
earning
s
carried
forward
from
changes
in
defined
benefit
plans
5.
Retaine
176Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
d
earning
s
carried
forward
from
other
compre
hensive
income
6.
Others
(V)
Special
-34041168.26-34041168.26-34041168.26
reserve
s
1.
Approp
riation
34868716.6034868716.6034868716.60
in the
current
period
2. Use
in the
-68909884.86-68909884.86-68909884.86
current
period
(VI)
Others
IV.Closing
balance
492128097511955912510.16-387288724.63243304714.893205602868.016532766397.3526471578740.78347907431.3926819486172.17
of the
current
period
Amount of the Previous Period
Unit: CNY
177Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
2024
Equity Attributable to Owners of the Parent Company
Other G
Equity e
Instrumen n
ts e
r
P a
r
P l
e
e R
f O
r i
Item e t
p Other s
r O Less: Treasury Undistributed h Minority Equity Total Owners’ EquityShare Capital e Capital Reserves Comprehensive Special Reserves Surplus Reserves k Subtotal
r t Shares Profits e
t Incomes
e h r
u P
d e s
a r
r
l o
S s
B v
h
o i
a
n s
r
d i
e o
s n
I.Closing
balance
463648566810717437551.7286131497.27-127199418.40319314527.853095513675.936246533634.6624801954142.49245455442.1325047409584.62
of the
previou
s year
Add:
changes
in
account
ing
policies
Correct
ion of
178Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
prior
period
errors
Others
II.Openin
g
Balance 4636485668 10717437551.72 86131497.27 -127199418.40 319314527.85 3095513675.93 6246533634.66 24801954142.49 245455442.13 25047409584.62
of the
current
year
III.Increas
e/decre
ase in
amount
of the
current 285885508 1244042496.02 -79884645.54 30287071.69 -41968644.70 109034571.47 -191193727.85 1515971920.17 31267627.94 1547239548.11
period
(decrea
se to be
listedwith “-”)
(I)
Total
compre 30279772.76 622427699.65 652707472.41 40267627.94 692975100.35
hensive
income
(II)
Investe
d and
decreas
2858855081244042496.02-79884645.541609812649.561609812649.56
ed
capital
of
owners
179Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
1.
Ordinar
y shares
2858855081632043242.501917928750.501917928750.50
investe
d by
owners
2.
Capital
contrib
uted by
holders
of other
equity
instrum
ents
3.
Amoun
ts of
share-
based
paymen -2522576.52 -2522576.52 -2522576.52
ts
recorde
d in
owner’s
equity
4.
-385478169.96-79884645.54-305593524.42-305593524.42
Others
(III)
Profit
109035301.36-813614858.46-704579557.10-9000000.00-713579557.10
distribu
tion
1.
Approp
riation 109035301.36 -109035301.36
to
surplus
180Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
reserve
s
2.
Approp
riation
to
general
risk
reserve
s
3.
Distrib
ution to
owners -693579557.10 -693579557.10 -9000000.00 -702579557.10
(or
shareho
lders)
4.
-11000000.00-11000000.00-11000000.00
Others
(IV)
Internal
carryov
7298.93-729.89-6569.04
er of
owners’
equity
1.
Transfe
r from
capital
reserve
to paid-
in
capital
(or
share
capital)
2.
181Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Transfe
r from
surplus
reserve
s to
paid-in
capital
(or
share
capital)
3.
Recove
ry of
losses
by
surplus
reserve
s
4.
Retaine
d
earning
s
carried
forward
from
changes
in
defined
benefit
plans
5.
Retaine
d
earning 7298.93 -729.89 -6569.04
s
carried
forward
182Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
from
other
compre
hensive
income
6.
Others
(V)
Special
-41968644.70-41968644.70-41968644.70
reserve
s
1.
Approp
riation
28475434.8728475434.8728475434.87
in the
current
period
2. Use
in the
-70444079.57-70444079.57-70444079.57
current
period
(VI)
Others
IV.Closing
balance
492237117611961480047.746246851.73-96912346.71277345883.153204548247.406055339906.8126317926062.66276723070.0726594649132.73
of the
current
period
8. Statement of Changes in Owners’ Equity of Parent Company
Amount in the current period
Unit: CNY
2025
Item
Share Capital Other Equity Capital Reserves Less: Treasury Other Speci Surplus Reserves Undistributed Ot Total Owners’ Equity
183Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Instruments Shares Comprehensive al Profits her
Pre Incomes Reser s
Per
fer ves
pet Ot
red
ual her
Sh
Bo s
are
nd
s
I. Closing balance of the previous year 4922371176 13802357345.82 6246851.73 12671266.92 1968725127.44 7370940980.89 28070819045.34
Add: changes in accounting policies
Correction of prior period errors
Others
II. Opening Balance of the current year 4922371176 13802357345.82 6246851.73 12671266.92 1968725127.44 7370940980.89 28070819045.34
III. Increase/decrease in amount of the current
-1090201-4993120.58-6246851.736969353.891054620.61-236572463.24-228384958.59
period (decrease to be listed with “-”)
(I) Total comprehensive income 6969353.89 10546206.12 17515560.01
(II) Invested and decreased capital of owners -1090201 -4993120.58 -6246851.73 163530.15
1. Ordinary shares invested by owners -1090201 -4993120.58 -6083321.58
2. Capital contributed by holders of other equity
instruments
3. Amounts of share-based payments recorded in
owner’s equity
4. Others -6246851.73 6246851.73
(III) Profit distribution 1054620.61 -247118669.36 -246064048.75
1. Appropriation to surplus reserves 1054620.61 -1054620.61
2. Distribution to owners (or shareholders) -246064048.75 -246064048.75
3. Others
(IV) Internal carryover of owners’equity
1. Transfer from capital reserve to paid-in capital (or
share capital)
2. Transfer from surplus reserves to paid-in capital
(or share capital)
3. Recovery of losses by surplus reserves
184Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
4. Retained earnings carried forward from changes
in defined benefit plans
5. Retained earnings carried forward from other
comprehensive income
6. Others
(V) Special reserves
1. Appropriation in the current period
2. Use in the current period
(VI) Others
IV. Closing balance of the current period 4921280975 13797364225.24 19640620.81 1969779748.05 7134368517.65 27842434086.75
Amount of the Previous Period
Unit: CNY
2024
Other Equity
Instruments
Pre Speci
Item Per Other Otfer Less: Treasury al UndistributedShare Capital pet Ot Capital Reserves Comprehensive Surplus Reserves her Total Owners’ Equity
red Shares Reser Profits
ual her Incomes s
Sh ves
Bo s
are
nd
s
I. Closing balance of the previous year 4636485668 12171693342.10 86131497.27 863137.93 1859690555.97 7083209394.76 25665810601.49
Add: changes in accounting policies
Correction of prior period errors
Others
II. Opening Balance of the current year 4636485668 12171693342.10 86131497.27 863137.93 1859690555.97 7083209394.76 25665810601.49
III. Increase/decrease in amount of the current
2858855081630664003.72-79884645.5411808128.99109034571.47287731586.132405008443.85
period (decrease to be listed with “-”)
(I) Total comprehensive income 11800830.06 1090353013.63 1102153843.69
(II) Invested and decreased capital of owners 285885508 1630664003.72 -79884645.54 1996434157.26
1. Ordinary shares invested by owners 285885508 1632043242.50 1917928750.50
2. Capital contributed by holders of other equity
185Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
instruments
3. Amounts of share-based payments recorded in
-2522576.52-2522576.52
owner’s equity
4. Others 1143337.74 -79884645.54 81027983.28
(III) Profit distribution 109035301.36 -802614858.46 -693579557.10
1. Appropriation to surplus reserves 109035301.36 -109035301.36
2. Distribution to owners (or shareholders) -693579557.10 -693579557.10
3. Others
(IV) Internal carryover of owners’equity 7298.93 -729.89 -6569.04
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
7298.93-729.89-6569.04
comprehensive income
6. Others
(V) Special reserves
1. Appropriation in the current period
2. Use in the current period
(VI) Others
IV. Closing balance of the current period 4922371176 13802357345.82 6246851.73 12671266.92 1968725127.44 7370940980.89 28070819045.34
186Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
III. Company Profile
FAW Jiefang Group Co. Ltd. formerly known as FAW Car Co. Ltd. is a limited liability company registered
in Changchun City Jilin Province.FAW Car was approved by TGS [1997] No. 55 Document of the State Commission for Restructuring the
Economic Systems in 1997 and established exclusively by China FAW Group Co. Ltd . On June 18 1997
FAW Car was approved by the China Securities Regulatory Commission to issue shares publicly and listed on
the Shenzhen Stock Exchange for circulation.On April 9 2012 FAW Group invested 862983689 shares of FAW Car into China FAW Co. Ltd. as its
capital contribution to FAW and received the Confirmation of Securities Transfer Registration issued by China
Securities Depository & Clearing Co. Ltd. Shenzhen Branch on the same day.On November 28 2019 FAW Car held the 10th meeting of the 8th Board of Directors and reviewed and
approved the adjustment plan for major asset restructuring. After the adjustment FAW Car Co. Ltd. transferred
all its assets and liabilities except for the equity interests in First Automobile Finance Co. Ltd. and Sanguard
Automobile Insurance Co. Ltd. and certain reserved assets to FAW Bestune Co. Ltd. (now renamed as FAW
Bestune Auto Co. Ltd.). Subsequently FAW Car Co. Ltd. used the 100% equity in FAW Bestune as disposed
assets to exchange for an equivalent portion of the 100% equity interest of FAW Jiefang Automotive Co. Ltd.held by China FAW Co. Ltd. Meanwhile FAW Car purchased the difference between the purchased assets and
the sold assets from FAW by issuing shares and paying cash.On March 12 2020 FAW Car received the Reply on Approving the Major Asset Restructuring of FAW Car
Co. Ltd. and Issuing Shares to China FAW Co. Ltd. for Asset Purchase (ZJXK [2020] No.352) issued by the
China Securities Regulatory Commission and China Securities Regulatory Commission reviewed and approved
the major asset replacement share issuance and cash payment for assets purchase and related transactions of
FAW Car.The Capital Verification Report (XYZH/2020BJA100417) issued by ShineWing Accounting Firm (special
general partnership) indicates that as of March 19 2020 all proposed purchased assets i.e. 100% equity of
Jiefang Limited to be replaced by FAW Car to FAW by issuing shares had been transferred to FAW Car. The
industrial and commercial change registration procedures of Jiefang Limited had been completed all proposed
assets i.e. 100% equity of FAW Bestune had been transferred to FAW and the industrial and commercial
change registration procedures of FAW Bestune had been completed. The registered capital of FAW Car is
CNY 4609666212.00 after this change.In May 2020 the Chinese name of FAW Car Co. Ltd. was changed to FAW Jiefang Group Co. Ltd. and the
stock abbreviation was changed to “FAW Jiefang”.On January 11 2021 the Company held the first 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
187Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
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 for the First Time. Nine directors and senior executives including Hu Hanjie
Zhu Qixin Zhang Guohua Wang Ruijian Shang Xingwu Ou Aimin Kong Dejun Wu Bilei and Wang Jianxun
and 310 other core employees with the title of senior director and above were granted to subscribe for
40987657 new shares of the Company at an issue price of CNY 7.54 per share and the registered capital of the
Company was changed to CNY 4650653869.00. This change was verified by the Capital Verification Report
(ZTYZ (2021) No.110C000033) issued by Grant Thornton Certified Public Accountants (Special General
Partnership). On February 1 2021 the Company disclosed the Announcement on the Completion of the First
Grant Registration of Phase I Restricted Share Incentive Plan.On December 9 2021 the Company held the 20th meeting of the 9th Board of Directors and the 19th meeting
of the 9th Board of Supervisors and reviewed and approved the Proposal on Granting Reserved Part of
Restricted Shares in the Phase I Restricted Share Incentive Plan to Incentive Objects and the Proposal on
Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan
respectively. Thirty-three core technicians and management backbones including Wang Manhong Zhang Yu
and Qu Yi subscribed for 3721601 new shares at an issue price of CNY 6.38/share and 260857 shares were
repurchased at a price of CNY 7.04/share from 2 employees who were no longer eligible for incentive objects.The registered capital of the Company was changed to CNY 4654114613.00. This change was verified by the
Capital Verification Report (ZTYZ (2021) No.110C000927) issued by Grant Thornton Accounting Firm
(special general partnership). On January 6 2022 the Company disclosed the Announcement on the
Completion of Registration of the Grant of Reserved Part of Restricted Shares in the Phase I Restricted Share
Incentive Plan. On January 17 2022 the Company disclosed the Announcement on the Completion of
Repurchase and Cancellation of Some Restricted Shares.On August 29 2022 the Company held the 26th meeting of the 9th Board of Directors and the 23rd meeting of
the 9th Board of Supervisors and reviewed and approved the Proposal on Repurchase and Cancellation of
Partial Restricted Shares in the Phase I Restricted Share Incentive Plan. It was agreed to repurchase 789711
shares at a price of CNY 6.39/share from 6 employees who are no longer qualified as incentive objects and the
registered capital of the Company was changed to CNY 4653324902.00. This change was verified according
to the Capital Verification Report (XYZH/2022CCAA2B0016) issued by ShineWing Accounting Firm (special
general partnership). On November 14 2022 the Company disclosed the Announcement on Completion of
Repurchase and Cancellation of Some Restricted Shares.On October 28 2022 the Company held the 28th meeting of the 9th Board of Directors and the 24th meeting of
the 9th Board of Supervisors and reviewed and approved the Proposal on Repurchase and Cancellation of
Partial Restricted Shares in the Phase I Restricted Share Incentive Plan and agreed to repurchase 1359247
shares at a price of CNY 6.39/share from 11 employees who are no longer qualified as incentive objects. The
registered capital of the Company was changed to CNY 4651965655.00. This change was verified according
to the Capital Verification Report (XYZH/2023CCAA2B0001) issued by ShineWing Accounting Firm (special
general partnership). On January 17 2023 the Company disclosed the Announcement on Completion of
Repurchase and Cancellation of Some Restricted Shares.On December 15 2022 the Company held the 30th Meeting of the 9th Board of Directors and the 26th Meeting
of the 9th Board of Supervisors and reviewed and approved the Proposal on the Achievement of Unlocking
Conditions in the First Release Period of the Restricted Shares Firstly Granted in the Phase I Restricted
188Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Incentive Plan. The unlocking conditions in the first release period of the restricted shares firstly granted in the
phase I restricted incentive plan had been fulfilled. The unlocking matters of the first restriction releasing period
for restricted shares firstly granted were handled in accordance with the restricted share incentive plan. There
were a total of 311 incentive objects eligible for unlocking and the number of restricted stocks unlocked this
time was 13042347 These shares were listed on May 16 2023. On February 3 2024 the Company disclosed
the Indicative Announcement on the Listing and Circulation of Unlocked Shares in the First Release Period of
the Restricted Shares Firstly Granted in the Phase I Restricted Share Incentive Plan.The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share
Incentive Plan was reviewed and approved at the 30th Meeting of the 9th Board of Directors and the 26th
Meeting of the 9th Board of Supervisors on December 15 2022. The participants at the meeting agreed to
repurchase and cancel all or some restricted shares granted to 6 incentive objects but not yet released totaling
723435 shares and the registered capital of the Company was changed to CNY 4651242220. This change
was verified according to the Capital Verification Report (XYZH/2023CCAA2B0103) issued by ShineWing
Accounting Firm (special general partnership). On April 28 2023 the Company disclosed the Announcement
on Completion of Repurchase and Cancellation of Some Restricted Shares.On March 31 2023 the Proposal on Unfulfilling Conditions for Releasing Restricted Sales in the Second
Period of Releasing Restricted Shares Firstly Granted and Conditions for the First Period of Releasing
Restricted Shares Reserved for Granting in Phase I Restricted Share Incentive Plan and Repurchase and
Cancellation of Some Restricted Shares was reviewed and approved at the 32nd Meeting of the 9th Board of
Directors and the 28th Meeting of the 9th Board of Supervisors. The participants at the meeting agreed to
repurchase and cancel all or some restricted shares granted to 327 incentive objects but not yet released totaling
13909890 shares and the registered capital of the Company was changed to CNY 4637332330. This change
was verified according to the Capital Verification Report (XYZH/2023CCAA2B017) issued by ShineWing
Accounting Firm (special general partnership). On June 30 2023 the Company disclosed the Announcement on
Completion of Repurchase and Cancellation of Some Restricted Shares.On April 27 2023 the Company held the 2nd Meeting of the 10th Board of Directors and the 2nd Meeting of
the 10th Board of Supervisors respectively and reviewed and approved the Proposal on Releasing Restriction
on Sales of Part of Restricted Shares. The Board of Directors believed that conditions for releasing restricted
sales of restricted shares in the first restriction releasing period for incentive objects Hu Hanjie Wu Bilei
Zhang Guohua and Wang Jianxun had been fulfilled and agreed to release restricted sales of restricted shares in
the first restriction releasing period for them totaling 64954 shares. These shares were listed on May 16 2023.On May 15 2023 the Company disclosed the Indicative Announcement on Sales Restriction Releasing and
Listing and Circulation of Part of Restricted Shares.The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share
Incentive Plan was reviewed and approved at the 5th Meeting of the 10th Board of Directors and the 4th
Meeting of the 10th Board of Supervisors on August 29 2023. The participants at the meeting agreed to
repurchase and cancel all or some restricted shares granted to 8 incentive objects but not yet released totaling
333855 shares and the registered capital of the Company was changed to CNY 4636998475.00. This change
was verified according to the Capital Verification Report (XYZH/2023CCAA2B0188) issued by ShineWing
Accounting Firm (special general partnership). On November 29 2023 the Company disclosed the
Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares.
189Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share
Incentive Plan was reviewed and approved at the 7th Meeting of the 10th Board of Directors and the 6th
Meeting of the 10th Board of Supervisors on November 20 2023. The participants at the meeting agreed to
repurchase and cancel all or some restricted shares granted to some incentive objects but not yet released
totaling 512807 shares and the registered capital of the Company was changed to CNY 4636485668. This
change was verified according to the Capital Verification Report (XYZH/2024CCAA2B0020) issued by
ShineWing Accounting Firm (special general partnership). On March 28 2024 the Company disclosed the
Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares.On March 28 2024 the Company held the 11th meeting of the 10th Board of Directors and the 10th meeting of
the 10th Board of Supervisors.Subsequently on April 25 2024 the Company held its 2023 Annual GeneralMeeting of Shareholders.These meetings reviewed and approved “Proposal on Unfulfilling Conditions forReleasing Restricted Sales in the Third Period of Releasing Restricted Shares Firstly Granted and Conditions
for the Second Period of Releasing Restricted Shares Reserved for Granting in Phase I Restricted ShareIncentive Plan and Repurchase and Cancellation of Some Restricted Shares.” The meetings approved the
repurchase and cancellation of 12621954 restricted shares that had been granted to plan participants but had
not yet vested. As a result the Company’s registered capital will be changed to CNY 4623863714. This
change was verified according to the Capital Verification Report (XYZH/2024CCAA2B0173) issued by
ShineWing Accounting Firm (special general partnership). On June 15 2024 the Company disclosed the
Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares.On March 28 2025 the Company held the 24th meeting of the 10th Board of Directors and the 20th meeting of
the 10th Board of Supervisors and subsequently on April 18 2025 the 2024 Annual General Meeting ofShareholders. At these meetings the “Proposal on Unfulfilled Conditions for the Third Release Period of thePhase I Restricted Share Incentive Plan and the Repurchase and Cancellation of Some Restricted Shares as wellas Adjustment of Repurchase Price” was reviewed and approved.The meetings approved the repurchase and
cancellation of 1090201 restricted shares that had been granted to incentive participants but had not yet been
released from restriction.Consequently the Company’s registered capital will be adjusted to CNY
4921280975. This change was verified by the Capital Verification Report (ZTYZ (2025) No.110C000149)
issued by Grant Thornton Accounting Firm (special general partnership). On June 10 2025 the Company
disclosed the Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares.According to the resolutions passed at the Company’s Second Extraordinary General Meeting of Shareholders
in 2023 and the Second Extraordinary General Meeting of Shareholders in 2024 and as approved by theCSRC’s document “Reply on Approving the Registration of FAW Jiefang Group Co. Ltd.’s Non-publicIssuance of Shares” (CSRC [2024] No.972) issued on June 21 2024 the Company conducted a non-public
issuance of 298507462.00 A-shares increasing the registered capital by CNY 298507462.00.Consequently
the Company’s registered capital has changed to CNY 4922371176.00. This non-public issuance of shares has
been verified by the Capital Verification Report (ZTYZ [2024] No.110C000357) issued by Grant Thornton
Accounting Firm (special general partnership).The Company has established a corporate governance structure consisting of a Shareholders’ Meeting and a
Board of Directors and has 5 wholly-owned subsidiaries namely Jiefang Limited FAW Jiefang Group
International Automobile Co. Ltd. Jiefang Saudi Arabia Co. Ltd. FAW Jiefang Uni-D Transportation
Technology (Tianjin) Co. Ltd. and FAW Jiefang Lvdong Renewable Technology (Wuxi) Co. Ltd. and 2 non-
wholly-owned subsidiaries namely Jiefang Best Co. Ltd. and FAW (Africa) Investment Co. Ltd. Jiefang
190Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Limited has 4 wholly-owned subsidiaries namely FAW Jiefang (Qingdao) Automotive Co. Ltd. FAW Jiefang
Dalian Diesel Engine Co. Ltd. FAW Jiefang Austria R&D Co. Ltd. and FAW Jiefang Automobile Sales Co.Ltd. and 1 non-wholly-owned subsidiary Jiefang Motors Tanzania Ltd. The Company also has 10 associates
namely Sanguard Automobile Insurance Co. Ltd. FAW Changchun Baoyou Jiefang Steel Processing and
Distribution Co. Ltd. FAW Changchun Ansteel Jiefang Steel Processing and Distribution Co. Ltd.Changchun Wabco Automotive Control System Co. Ltd. Suzhou Zhito Technology Co. Ltd. FAW Jiefang
Fujie (Tianjin) Technology Industry Co. Ltd. Smartlink Intelligent Technology (Nanjing) Co. Ltd. Foshan
Diyiyuansu New Energy Technology Co. Ltd. Changchun Automotive Test Center Co. Ltd. and Diyi AESC
New Energy Power Technology (Wuxi) Co. Ltd. Additionally it owns one joint venture company Jiefang
Times New Energy Technology Co. Ltd. while FAW (Africa) Investment Co. Ltd. has one non-wholly-owned
subsidiary FAW Vehicle Manufacturing South Africa Co. Ltd.Business scope of the Company: R&D production and sales of medium and heavy trucks vehicles buses bus
chassis medium truck deformation vehicles automobile assemblies and parts machining diesel engines and
accessories (non-vehicle) mechanical equipment and accessories instruments technical services technical
consultation installation and maintenance of mechanical equipment lease of mechanical equipment and
facilities lease of houses and workshops labor services (excluding foreign labor cooperation and domestic
labor dispatch) sales of steel automobile trunks hardware & electrical equipment and electronic products
testing of internal combustion engine engineering technology research and testing advertising design
production and release import and export of goods and technologies (excluding publication import business and
commodities and technologies restricted or prohibited for import and export by the state); (the following items
are operated by the branch company) Chinese food production and sales warehousing and logistics (excluding
flammable explosive and precursor dangerous chemicals) automobile repair tank manufacturing of chemical
liquid tanker automobile trunk manufacturing (items subject to approval according to law can be operated only
after being approved by relevant authorities).Registered address of the Company: No.2259 Dongfeng Street Changchun Automobile Development Zone
Jilin Province.The legal representative of the Company is Li Sheng.The financial statements and notes to the financial statements were approved for issue by the Board of Directors
of the Company on March 26 2026.IV.Basis of Preparation for Financial Statements
1.Preparation BasisThe financial statements have been prepared in accordance with the “Accounting Standards for BusinessEnterprises – Basic Standard” and various specific accounting standards application guidance interpretations
and other relevant provisions (collectively referred to as the “Accounting Standards for Business Enterprises”)promulgated by the Ministry of Finance as well as the relevant provisions of the “Rules for InformationDisclosure and Reporting by Companies that Publicly Issue Securities No. 15 – General Provisions on FinancialReports” issued by the China Securities Regulatory Commission (CSRC).
191Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
2.Continuing Operations
The financial statements have been prepared on a going concern basis.V. Significant Accounting Policies and Accounting Estimates
Tips for specific accounting policies and accounting estimates:
The following disclosures have covered the specific accounting policies and accounting estimates formulated by
the Company based on its actual production and operating characteristics; please refer to Section VIII Financial
Report V “Significant Accounting Policies and Accounting Estimates” for details.
1. Statement of Compliance with Accounting Standards for Business Enterprises
The financial statements comply with the requirements of the Accounting Standards for Business Enterprises
promulgated by the Ministry of Finance and truly and completely reflect the consolidated and parent company
financial position of the Company as of December 31 2025 and the consolidated and parent company
operating results and cash flows for the year 2025.
2. Accounting Period
The accounting year runs from January 1 to December 31 of each calendar year.
3. Operating Cycle
The operating cycle of the Company is 12 months.
4. Recording Currency
The Company adopts CNY as its reporting currency.
5. Methods for Determining Materiality Criteria and Selection Basis
□Applicable □Not applicable
Item Materiality Criteria
Receivables with significant provision for bad debts Amount greater than CNY 10 million
by individual item
Significant other receivables with bad debt provision Amount greater than CNY 10 million
accrued on an individual basis
Significant accounts payable aged over one year or Amount greater than CNY 10 million
overdue
Significant other payables aged over one year or Amount greater than CNY 10 million
overdue
10% of the absolute value of net profit or 10% of
Major projects under construction
similar transactions
Significant capitalized R&D projects 10% of the absolute value of net profit or 10% of
192Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
similar transactions
6. Accounting Treatment Method for Business Combination under Common Control and Not under
Common Control
Business combinations involving enterprises under common control: The assets and liabilities (including
goodwill arising from the ultimate controlling party’s acquisition of the acquiree) obtained by the acquirer in a
business combination shall be measured based on the carrying amounts of the acquiree’s assets and liabilities in
the consolidated financial statements of the ultimate controlling party at the combination date. The difference
between the carrying amount of the net assets acquired in the combination and the carrying amount of the
consideration paid for the combination (or the total face value of shares issued) shall be used to adjust the share
premium within capital reserve; any excess that cannot be offset against the share premium within capital
reserve shall be used to adjust retained earnings.Business combinations involving enterprises not under common control: The cost of combination shall be the
fair value of the assets given liabilities incurred or assumed and equity securities issued by the acquirer to
obtain control of the acquiree at the acquisition date. The excess of the cost of combination over the acquirer’s
interest in the fair value of the identifiable net assets of the acquiree acquired in the combination shall be
recognized as goodwill; the excess of the acquirer’s interest in the fair value of the identifiable net assets of the
acquiree acquired in the combination over the cost of combination shall be recognized in profit or loss for the
current period. The identifiable assets liabilities and contingent liabilities of the acquiree acquired in the
combination that meet the recognition criteria shall be measured at fair value at the acquisition date.Directly related expenses incurred for the business combination shall be recognized in profit or loss for the
current period when incurred; transaction costs of issuing equity or debt securities for the business combination
shall be included in the initial recognition amount of the equity or debt securities.
7. Criteria for Control and Preparation Method of Consolidated Financial Statements
Criteria for Determining Control
The scope of consolidation of the consolidated financial statements is determined on the basis of control and
encompasses the Company and all its subsidiaries. Control means that the Company has power over the
investee is exposed or has rights to variable returns from its involvement with the investee and has the ability
to use its power over the investee to affect the amount of the returns.Consolidation Procedures
The Company regards the entire enterprise group as a single accounting entity and prepares consolidated
financial statements in accordance with uniform accounting policies to reflect the overall financial position
operating results and cash flows of the enterprise group. The effects of internal transactions between the
Company and its subsidiaries and among subsidiaries are eliminated. Where internal transactions indicate that
impairment losses have occurred on the related assets such losses shall be recognized in full. Where the
accounting policies or accounting periods adopted by a subsidiary are inconsistent with those of the Company
193Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
necessary adjustments shall be made in accordance with the Company’s accounting policies and accounting
periods when preparing the consolidated financial statements.The portions of a subsidiary’s owners’ equity current net profit or loss and current comprehensive income
attributable to non-controlling interests are presented separately under the owners’ equity section in the
consolidated balance sheet under the net profit line item in the consolidated income statement and under the
total comprehensive income line item respectively. Where the current period losses attributable to the non-
controlling interests of a subsidiary exceed the non-controlling interests’ share in the subsidiary’s owners’
equity at the beginning of the period the resulting balance shall be deducted from the non-controlling interests.
(1) Addition of subsidiaries or businesses
During the reporting period for subsidiaries or businesses added through business combinations involving
enterprises under common control the operating results and cash flows of the subsidiary or business from the
beginning of the combination period to the end of the reporting period shall be included in the consolidated
financial statements. Meanwhile the opening balances of the consolidated financial statements and the related
items of the comparative statements shall be adjusted as if the combined reporting entity had existed since the
point in time when the ultimate controlling party first obtained control.Where control is obtained over an investee under common control due to additional investments or other
reasons for the equity investment held before obtaining control over the acquiree the relevant profit or loss
other comprehensive income and other changes in net assets previously recognized during the period from the
later of the date on which the original equity was acquired and the date on which the acquirer and the acquiree
came under common control to the combination date shall be adjusted against the opening retained earnings of
the comparative reporting period or profit or loss for the current period respectively.During the reporting period for subsidiaries or businesses added through business combinations involving
enterprises not under common control they shall be included in the consolidated financial statements from the
acquisition date based on the fair value of the identifiable assets liabilities and contingent liabilities determined
as of the acquisition date.Where control is obtained over an investee not under common control due to additional investments or other
reasons the equity interest previously held in the acquiree before the acquisition date shall be remeasured at its
fair value as of the acquisition date and the difference between the fair value and its carrying amount shall be
recognized in investment income for the current period. The other comprehensive income that may be
subsequently reclassified to profit or loss and the other changes in owners’ equity under the equity method
related to the equity interest in the acquiree held before the acquisition date shall be transferred to investment
income for the period in which the acquisition date falls.
(2) Disposal of subsidiaries
* General treatment method
Where control over an investee is lost due to the disposal of a portion of the equity investment or other reasons
the remaining equity investment shall be remeasured at its fair value as of the date on which control is lost. The
194Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
difference between the sum of the consideration obtained from the disposal of equity and the fair value of the
remaining equity investment and the sum of the share of the net assets of the former subsidiary continuously
calculated from the acquisition date or the combination date at the original shareholding ratio plus the
associated goodwill shall be recognized in investment income for the period in which control is lost. The other
comprehensive income that may be subsequently reclassified to profit or loss and the other changes in owners’
equity under the equity method related to the equity investment in the former subsidiary shall be transferred to
investment income for the current period upon the loss of control.* Step-by-step disposal of subsidiaries
Where the equity investment in a subsidiary is disposed of in stages through multiple transactions until control
is lost and where the terms conditions and economic effects of the individual transactions for the disposal of
the equity investment in the subsidiary meet one or more of the following criteria it usually indicates that such
multiple transactions constitute a package deal:
ⅰ． These transactions are entered into simultaneously or with consideration of their mutual effects;
ⅱ． These transactions as a whole can achieve a complete commercial result only when taken together;
ⅲ． The occurrence of one transaction depends on the occurrence of at least one other transaction;
ⅳ． A transaction is uneconomic when viewed in isolation but economic when considered together with other
transactions.Where the individual transactions constitute a package deal they shall be accounted for as a single transaction
involving the disposal of the subsidiary and the loss of control; prior to the loss of control the difference
between the disposal consideration for each transaction and the corresponding share of the subsidiary’s net
assets attributable to the disposed investment shall be recognized as other comprehensive income in the
consolidated financial statements and shall be transferred in aggregate to profit or loss for the period in which
control is lost upon the loss of control.Where the individual transactions do not constitute a package deal prior to the loss of control they shall be
accounted for as a partial disposal of the equity investment in the subsidiary without the loss of control; upon
the loss of control they shall be accounted for in accordance with the general treatment method for the disposal
of subsidiaries.
(3) Acquisition of non-controlling interests in subsidiaries
The difference between the cost of the newly acquired long-term equity investment arising from the acquisition
of non-controlling interests and the share of the subsidiary’s net assets continuously calculated from the
acquisition date or combination date at the newly increased shareholding ratio shall be used to adjust the share
premium within capital reserve in the consolidated balance sheet; any excess that cannot be offset against the
share premium within capital reserve shall be used to adjust retained earnings.
(4) Partial disposal of equity investment in a subsidiary without losing control
The difference between the disposal consideration and the corresponding share of the subsidiary’s net assets
continuously calculated from the acquisition date or combination date attributable to the disposed long-term
195Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
equity investment shall be used to adjust the share premium within capital reserve in the consolidated balance
sheet; any excess that cannot be offset against the share premium within capital reserve shall be used to adjust
retained earnings.
8. Classification of Joint Venture Arrangement and Accounting Treatment Methods for Joint Operations
Joint arrangements are classified as joint operations and joint ventures.A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets and obligations for the liabilities relating to the arrangement.The Company recognizes the following items relating to its interest in a joint operation:
(1) Its assets held solely and its share of any jointly held assets;
(2) Its liabilities incurred solely and its share of any jointly incurred liabilities;
(3) Its revenue from the sale of its share of the output arising from the joint operation;
(4) Its share of the revenue from the sale of output by the joint operation;
(5) Its expenses incurred solely and its share of any expenses incurred jointly.
The Company accounts for its investments in joint ventures using the equity method; please refer to Item 19
“Long-term Equity Investments” in Section V “Significant Accounting Policies and Accounting Estimates” of
Section VIII Financial Report for details.
9. Standards for Recognition of Cash and Cash Equivalents
Cash refers to the Company’s cash on hand and deposits that are readily available for payment. Cash
equivalents refer to short-term highly liquid investments held by the Company that are readily convertible to
known amounts of cash and are subject to an insignificant risk of changes in value.
10. Foreign Currency Transaction and Foreign Currency Statement Translation
Foreign Currency Transactions
Foreign currency transactions shall be recorded in CNY at the spot exchange rate prevailing on the date of the
transaction as the translation rate.On the balance sheet date balances of foreign currency monetary items shall be translated at the spot exchange
rate prevailing on the balance sheet date. The resulting exchange differences shall be recognized in profit or loss
for the current period except for those arising from specific-purpose foreign currency borrowings designated
for the acquisition or construction of qualifying assets which shall be treated in accordance with the
capitalization principles for borrowing costs.
196Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Translation of Foreign Currency Financial Statements
Asset and liability items in the balance sheet shall be translated at the spot exchange rate prevailing on the
balance sheet date; owners’ equity items except for “Undistributed Profits” shall be translated at the spot
exchange rate prevailing at the time of occurrence. Revenue and expense items in the income statement shall be
translated at the spot exchange rate prevailing on the date of the transactions.Upon disposal of a foreign operation the exchange differences arising from the translation of the foreign
currency financial statements of the foreign operation previously recognized in owners’ equity shall be
transferred to profit or loss for the period in which the disposal occurs.
11. Financial Instruments
The Company shall recognize a financial asset a financial liability or an equity instrument when it becomes a
party to the contractual provisions of a financial instrument.Classification of Financial Instruments
Based on the Company’s business model for managing financial assets and the contractual cash flow
characteristics of the financial assets financial assets shall be classified at initial recognition into: financial
assets measured at amortized cost financial assets measured at fair value through other comprehensive income
(FVTOCI) and financial assets measured at fair value through profit or loss (FVTPL).
The Company classifies the financial assets that meet the following conditions but are not designated to be
measured at fair value and with the changes included in current profits or losses as the financial assets measured
at amortized cost:
- The business model objective is to hold financial assets in order to collect contractual cash flows;
- The contractual cash flows are solely payments of principal and interest on the principal amount outstanding.The Company classifies financial assets that simultaneously meet the following conditions and have not been
designated as financial assets at FVTPL as financial assets at FVTOCI (debt instruments):
- The objective of the business model is achieved by both collecting contractual cash flows and selling the
financial assets;
- The contractual cash flows are solely payments of principal and interest on the principal amount outstanding.For investments in equity instruments that are not held for trading the Company may upon initial recognition
irrevocably designate them as financial assets measured at fair value through other comprehensive income
(equity instruments). Such designation is made on an investment-by-investment basis and the relevant
investment shall meet the definition of an equity instrument from the issuer’s perspective.Except for the above-mentioned financial assets measured at amortized cost and fair value through other
comprehensive income the Company classifies all remaining financial assets as financial assets measured at
197Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
fair value through profit or loss. At initial recognition if doing so eliminates or significantly reduces an
accounting mismatch the Company may irrevocably designate a financial asset that would otherwise be
classified as measured at amortized cost or measured at fair value through other comprehensive income as a
financial asset measured at fair value through profit or loss.Financial liabilities shall be classified at initial recognition into: financial liabilities measured at fair value
through profit or loss and financial liabilities measured at amortized cost.A financial liability that meets one of the following conditions may be designated at initial measurement as a
financial liability measured at fair value through profit or loss:
1) Such designation can eliminate or significantly reduce an accounting mismatch.
2) In accordance with a documented risk management or investment strategy of the Company a group of
financial liabilities or a group of financial assets and financial liabilities is managed and its performance is
evaluated on a fair value basis and information about such group is reported internally on that basis to key
management personnel.
3) The financial liability contains an embedded derivative that needs to be separated independently.
Recognition Basis and Measurement Methods for Financial Instruments
(1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include notes receivable accounts receivable other receivables
long-term receivables debt investments etc. and shall be initially measured at fair value with related
transaction costs included in the initial recognition amount; accounts receivable that do not contain a significant
financing component as well as accounts receivable for which the Company has elected not to consider the
financing component of one year or less shall be initially measured at the transaction price as defined in the
contract.Interest calculated using the effective interest method during the holding period shall be recognized in profit or
loss for the current period.Upon collection or disposal the difference between the consideration obtained and the carrying amount of the
financial asset shall be recognized in profit or loss for the current period.
(2) Financial assets measured at fair value through other comprehensive income (debt instruments)
Financial assets measured at fair value through other comprehensive income (debt instruments) include
receivables financing other debt investments etc. They shall be initially measured at fair value with related
transaction costs included in the initial recognition amount. Such financial assets shall be subsequently
measured at fair value. Changes in fair value except for interest calculated using the effective interest method
impairment losses or gains and foreign exchange gains and losses shall be recognized in other comprehensive
income.
198Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Upon derecognition the cumulative gains or losses previously recognized in other comprehensive income shall
be transferred from other comprehensive income and recognized in profit or loss for the current period.
(3) Financial assets measured at fair value through other comprehensive income (equity instruments)
Financial assets measured at fair value through other comprehensive income (equity instruments) include
investments in other equity instruments etc. They are initially measured at fair value and related transaction
costs are included in the initial recognition amount. Such financial assets shall be subsequently measured at fair
value and changes in fair value shall be recognized in other comprehensive income. Dividends obtained shall
be recognized in profit or loss for the current period.Upon derecognition the cumulative gains or losses previously recognized in other comprehensive income shall
be transferred from other comprehensive income and recognized in retained earnings.
(4) Financial assets measured at fair value through profit or loss
Financial assets measured at fair value through profit or loss include trading financial assets derivative financial
assets other non-current financial assets etc. They are initially measured at fair value and related transaction
costs are recognized in profit or loss for the current period. The financial asset is subsequently measured at fair
value and changes in fair value are recognized in profit or loss for the current period.
(5) Financial liabilities measured at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss include trading financial liabilities derivative
financial liabilities etc. They are initially measured at fair value and related transaction costs are recognized in
profit or loss for the current period. The financial liability is subsequently measured at fair value and changes in
fair value are recognized in profit or loss for the current period.Upon derecognition the difference between its carrying amount and the consideration paid shall be recognized
in profit or loss for the current period.
(6) Financial liabilities measured at amortized cost
Financial liabilities measured at amortized cost include short-term borrowings notes payable accounts payable
other payables long-term borrowings bonds payable and long-term payables and shall be initially measured at
fair value with related transaction costs included in the initial recognition amount.Interest calculated using the effective interest method during the holding period is included in current profit or
loss.Upon derecognition the difference between the consideration paid and the carrying amount of the financial
liability is included in current profit or loss.Basis for Derecognition of Financial Assets and Recognition Criteria and Measurement Methods for Transfer of
Financial Assets
199Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
The Company derecognizes a financial asset when one of the following conditions is met:
- The contractual rights to collect the cash flows of the financial asset have terminated;
- The financial asset has been transferred and substantially all the risks and rewards of ownership of the
financial asset have been transferred to the transferee;
- The financial asset has been transferred and although the Company has neither transferred nor retained
substantially all the risks and rewards of ownership of the financial asset the Company has not retained control
over the financial asset.Where the Company modifies or renegotiates a contract with a counterparty and such modification constitutes a
substantive modification the original financial asset shall be derecognized and a new financial asset shall be
recognized in accordance with the modified terms.When a transfer of a financial asset occurs where substantially all the risks and rewards of ownership of the
financial asset are retained the financial asset shall not be derecognized.When determining whether the transfer of financial assets meets the aforementioned criteria for derecognition
of financial assets the principle of substance over form shall be applied.The Company classifies the transfer of financial assets into transfers of entire financial assets and transfers of
parts of financial assets. Where the entire transfer of a financial asset meets the criteria for derecognition the
difference between the following two amounts shall be recognized in profit or loss for the current period:
(1) The carrying amount of the transferred financial asset;
(2) The sum of the consideration received from the transfer and the cumulative changes in fair value previously
recognized directly in owners’ equity (in the case where the financial asset being transferred is a financial asset
measured at fair value through other comprehensive income (debt instruments)).Where the partial transfer of a financial asset meets the criteria for derecognition the total carrying amount of
the transferred financial asset shall be allocated between the derecognized portion and the portion that is not
derecognized based on their respective relative fair values and the difference between the following two
amounts shall be recognized in profit or loss for the current period:
(1) The carrying amount of the derecognized portion;
(2) The sum of the consideration for the derecognized portion and the amount of the cumulative changes in fair
value previously recognized directly in owners’ equity attributable to the derecognized portion (in the case
where the financial asset being transferred is a financial asset measured at fair value through other
comprehensive income (debt instruments)).Where the transfer of a financial asset does not meet the criteria for derecognition the financial asset shall
continue to be recognized and the consideration received shall be recognized as a financial liability.
200Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Derecognition of Financial Liabilities
Where the present obligation of a financial liability has been discharged in whole or in part the financial
liability or a portion thereof shall be derecognized; where the Company enters into an agreement with a creditor
to replace an existing financial liability by assuming a new financial liability and the contractual terms of the
new financial liability are substantively different from those of the existing financial liability the existing
financial liability shall be derecognized and the new financial liability shall be simultaneously recognized.Where a substantive modification is made to all or part of the contractual terms of an existing financial liability
the existing financial liability or a portion thereof shall be derecognized and simultaneously the financial
liability with modified terms shall be recognized as a new financial liability.Upon full or partial derecognition of a financial liability the difference between the carrying amount of the
derecognized portion of the financial liability and the consideration paid (including non-cash assets transferred
out or new financial liabilities assumed) shall be recognized in profit or loss for the current period.Where the Company repurchases a portion of a financial liability on the repurchase date the total carrying
amount of the financial liability shall be allocated between the portion that continues to be recognized and the
portion that is derecognized based on their respective relative fair values. The difference between the carrying
amount allocated to the derecognized portion and the consideration paid (including non-cash assets transferred
out or new financial liabilities assumed) shall be recognized in profit or loss for the current period.Methods for Determining the Fair Value of Financial Assets and Financial Liabilities
For financial instruments with an active market the fair value shall be determined by the quoted prices in the
active market. For financial instruments without an active market the fair value shall be determined using
valuation techniques. In performing valuations the Company shall adopt valuation techniques that are
applicable under current circumstances and are supported by sufficient available data and other information
shall select inputs consistent with the characteristics of the assets or liabilities that market participants would
consider in transactions involving the relevant assets or liabilities and shall prioritize the use of relevant
observable inputs. Unobservable inputs shall be used only where relevant observable inputs are unavailable or it
is impracticable to obtain them.Impairment Testing Methods and Accounting Treatment for Financial Instruments
The Company shall perform impairment accounting on the basis of expected credit losses (ECL) for financial
assets measured at amortized cost financial assets measured at fair value through other comprehensive income
(debt instruments) financial guarantee contracts and other applicable instruments.The Company considers reasonable and reliable information about past events current situation and forecast of
the future economic situation weighs the risk of default calculates the probability weighted amount of the
present value of the difference between the cash flow receivable from the contract and the cash flow expected to
be received and recognizes the expected credit loss.
201Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.For receivables and contract assets arising from transactions within the scope of “Accounting Standards forBusiness Enterprises No. 14 — Revenue” (ASBE 14) regardless of whether they contain a significant financing
component the Company shall always measure the loss allowances at an amount equal to lifetime expected
credit losses.For lease receivables arising from transactions within the scope of “Accounting Standards for BusinessEnterprises No. 21 — Leases” (ASBE 21) the Company has elected to always measure the loss allowances at
an amount equal to lifetime expected credit losses.For other financial instruments the Company shall assess on each balance sheet date the changes in the credit
risk of the relevant financial instruments since initial recognition.The Company compares the risk of default of financial instruments on the balance sheet date with the risk of
default on the initial recognition date so as to determine the relative change in the default risk of financial
instruments in the expected duration and evaluate whether the credit risk of financial instruments has increased
significantly since the initial recognition. Generally where a financial instrument is overdue for more than 30
days the Company shall consider that the credit risk of such financial instrument has increased significantly
since initial recognition unless there is conclusive evidence demonstrating that the credit risk of such financial
instrument has not increased significantly since initial recognition.Where the credit risk of a financial instrument is low as of the balance sheet date the Company shall consider
that the credit risk of such financial instrument has not increased significantly since initial recognition.Where the credit risk of a financial instrument has increased significantly since initial recognition the Company
shall measure the loss allowance at an amount equal to the lifetime expected credit losses of such financial
instrument; where the credit risk of such financial instrument has not increased significantly since initial
recognition the Company shall measure the loss allowance at an amount equal to the 12-month expected credit
losses of such financial instrument. The resulting increase or reversal of the loss allowance shall be recognized
as an impairment loss or gain in profit or loss for the current period. For financial assets measured at fair value
through other comprehensive income (debt instruments) the loss allowances shall be recognized in other
comprehensive income and impairment losses or gains shall be recognized in profit or loss for the current
period without reducing the carrying amount of such financial assets as presented in the balance sheet.Where there is objective evidence indicating that a certain receivable has been subject to credit impairment the
Company shall make a provision for impairment on an individual basis for such receivable.Other than the aforementioned receivables for which provision for bad debts has been made on an individual
basis the Company shall classify the remaining financial instruments into various portfolios based on their
credit risk characteristics and shall determine the expected credit losses on a portfolio basis. The portfolio
categories and the basis for determining the ECL provision for the Company’s notes receivable accounts
receivable receivables financing other receivables contract assets long-term receivables etc. are as follows:
Item Portfolio Categories
Bank acceptance notes commercial acceptance
Notes receivable
notes
202Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Item Portfolio Categories
Accounts receivable Aging portfolio
Contract assets Aging portfolio
Portfolio of guarantee deposits security deposits
Other receivables
and petty cash; aging portfolio
Receivables from installment sales of goods; other
Long-term receivables
receivables
The Company calculates the expected credit loss of the notes receivable and contract assets divided into
portfolios by referring to the historical credit loss experience combining the current situation and the forecast of
the future economic situation and based on the default risk exposure and the expected credit loss rate for the
whole duration.For accounts receivable divided into portfolios the Company prepares a comparison table of account receivable
aging/overdue days and expected credit loss rate for the whole duration with a reference to historical credit loss
experience and in combination with the current situation and forecast of the future economic situation so as to
calculate the expected credit loss. The aging of accounts receivable is calculated from the date of recognition
and the number of days overdue from the credit expiration date.For other receivables divided into portfolios the Company calculates the expected credit loss through default
risk exposure and expected credit loss rate in the next 12 months or the whole duration. The aging of other
receivables divided into portfolios by aging is calculated from the date of recognition.For long-term receivables classified into portfolios with respect to receivables from installment sales of goods
the Company calculates expected credit losses by reference to historical credit loss experience in combination
with current conditions and forecasts of future economic conditions through the default risk exposure and the
lifetime expected credit loss rate.The Company calculates the expected credit loss of other receivables and long-term receivables divided into
portfolios other than receivables from sales of goods by installments according to the default risk exposure and
the expected credit loss rate in the next 12 months or the whole duration.For debt investments and other debt investments the Company calculates expected credit losses according to
the nature of the investments by various types of counterparties and risk exposures through default risk
exposures and the 12-month or lifetime expected credit loss rates.
12. Notes Receivable
Refer to 11 “Financial Instruments” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
13.Accounts Receivable
Refer to 11 “Financial Instruments” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
203Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
14. Receivables Financing
Refer to 11 “Financial Instruments” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
15. Other Receivables
Refer to 11 “Financial Instruments” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
16. Contract Assets
Refer to 11 “Financial Instruments” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.The Company presents the contract assets or contract liabilities in the balance sheet according to the
relationship between the performance obligations and the customer’s payment. The Company’s right to receive
consideration for goods transferred to or services provided to customers (where such right is contingent upon
factors other than the passage of time) is presented as a contract asset. Contract assets and contract liabilities
under the same contract are presented on a net basis. The Company’s unconditional right (subject only to the
passage of time) to receive consideration from customers is presented separately as receivables.Methods for Determining Expected Credit Losses of Contract Assets and Accounting Treatment
The methods for determining expected credit losses of contract assets and the related accounting treatment are
detailed in the section on “Impairment Testing Methods and Accounting Treatment for Financial Instruments”
under Section 11 “Financial Instruments” herein.
17. Inventories
Classification and Cost of Inventories
Inventories are classified as: raw materials self-produced semi-finished goods and work in progress finished
goods in stock turnover materials etc.Inventories are initially measured at cost. Inventory costs include purchase costs processing costs and other
expenditures incurred to bring the inventories to their current location and condition.Valuation Method for Inventories Issued
The Company’s inventories are accounted for at the planned cost when acquired. The difference between
planned costs and actual costs is accounted for through the cost variance account and the cost variances
attributable to inventories issued are carried forward periodically to adjust planned costs to actual costs.Inventory Count System
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The perpetual inventory system is adopted.Amortization Method for Low-Value Consumables and Packaging Materials
(1) Low-value consumables are amortized using the immediate write-off method;
(2) Packaging materials are amortized using the immediate write-off method.
Recognition Criteria and Provision Method for Inventory Impairment
On the balance sheet date inventories shall be measured at the lower of cost and net realizable value. Where the
cost of inventories exceeds their net realizable value a provision for decline in value of inventories shall be
recognized. Net realizable value refers to the estimated selling price in the ordinary course of business less the
estimated costs to completion the estimated selling expenses and the related taxes and surcharges.For merchandise inventories directly held for sale such as finished products commodities in stock and
materials held for sale in the normal course of production and operations the net realizable value shall be
determined as the estimated selling price less the estimated selling expenses and related taxes and surcharges.For material inventories that require further processing in the normal course of production and operations the
net realizable value shall be determined as the estimated selling price of the finished products to be produced
less the estimated costs to completion the estimated selling expenses and the related taxes and surcharges. For
inventories held for the purpose of fulfilling sales contracts or service contracts the net realizable value shall be
calculated based on the contract price; where the quantity of inventories held exceeds the quantity stipulated in
the sales contract the net realizable value of the excess inventories shall be calculated based on the prevailing
selling price.The Company makes provision for inventory depreciation reserves on an individual inventory item basis. For
inventories of large quantities and low unit prices the provision for decline in value of inventories shall be
made by inventory category.After the provision for decline in value of inventories has been recognized where the factors that previously
caused the write-down of inventory values no longer exist such that the net realizable value of the inventories
exceeds the carrying amount the provision shall be reversed to the extent of the amount of the provision
originally recognized and the amount reversed shall be recognized in profit or loss for the current period.
18. Long-term Receivables
Refer to 11 “Financial Instruments” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII — Financial Report.
19. Long-Term Equity Investments
(1) Criteria for Determining Joint Control and Significant Influence
Joint control refers to the control over certain arrangement under related agreements and related activities of
the arrangement can only be determined with the unanimous consent of the parties sharing the control. Where
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the Company together with other venturers jointly controls an investee and has rights to the net assets of the
investee the investee shall be classified as a joint venture of the Company.Significant influence refers to the power to participate in the financial and operating policy decisions of an
investee but does not constitute control over or joint control of the formulation of such policies. Where the
Company is able to exert significant influence over an investee the investee shall be classified as an associate
of the Company.
(2) Determination of Initial Investment Cost
* Long-Term Equity Investments Arising from Business Combinations
For a long-term equity investment in a subsidiary arising from a business combination under common control
the initial investment cost shall be determined as the Company’s share of the carrying amount of the merged
party’s owners’ equity as stated in the consolidated financial statements of the ultimate controlling party on the
combination date. The difference between the initial investment cost of the long-term equity investment and the
carrying amount of the consideration paid shall be adjusted against the share premium under capital reserves;
where the share premium under capital reserves is insufficient to offset the difference the retained earnings
shall be adjusted accordingly. Where the Company is able to exercise control over an investee under common
control due to reasons such as additional investment the difference between the initial investment cost of the
long-term equity investment determined in accordance with the aforementioned principles and the sum of the
carrying amount of the long-term equity investment prior to the combination plus the carrying amount of the
newly paid consideration for the further acquisition of shares on the combination date shall be adjusted against
the share premium. Where the share premium is insufficient for such offset the retained earnings shall be
adjusted accordingly.For a long-term equity investment in a subsidiary arising from a business combination not under common
control the initial investment cost shall be the cost of combination determined on the acquisition date. Where
the Company is able to exercise control over an investee not under common control due to reasons such as
additional investment the sum of the carrying amount of the previously held equity investment and the cost of
the new investment shall be used as the initial investment cost.* Long-Term Equity Investments Acquired through Means Other than Business Combinations
For a long-term equity investment acquired through cash payment the initial investment cost shall be the actual
purchase consideration paid.For a long-term equity investment acquired through the issuance of equity securities the initial investment cost
shall be the fair value of the equity securities issued.
(3) Subsequent measurement and recognition of profit or loss
* Long-Term Equity Investments Accounted for Using the Cost Method
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The Company’s long-term equity investments in subsidiaries shall be accounted for using the cost method
unless the investments meet the criteria for classification as held for sale. Except for cash dividends or profits
declared but not yet distributed that are included in the actual price or consideration paid at the time of
acquiring the investment the Company shall recognize investment income for the current period based on its
share of the cash dividends or profits declared for distribution by the investee.* Long-Term Equity Investments Accounted for Using the Equity Method
Long-term equity investments in associates and joint ventures shall be accounted for using the equity method.Where the initial investment cost exceeds the Company’s share of the fair value of the investee’s identifiable
net assets at the time of investment the initial investment cost of the long-term equity investment shall not be
adjusted; where the initial investment cost is less than the Company’s share of the fair value of the investee’s
identifiable net assets at the time of investment the difference shall be recognized in profit or loss for the
current period and the cost of the long-term equity investment shall be adjusted accordingly.The Company shall recognize investment income and other comprehensive income respectively based on its
entitled or attributable share of the net profit or loss realized and other comprehensive income of the investee
and adjust the carrying amount of the long-term equity investment accordingly; the Company shall calculate its
entitled share based on the profits or cash dividends declared for distribution by the investee and reduce the
carrying amount of the long-term equity investment correspondingly; for other changes in the investee’s owners’
equity other than net profit or loss other comprehensive income and profit distribution (hereinafter referred toas”other changes in owners’ equity”) the Company shall adjust the carrying amount of the long-term equity
investment and recognize such changes in owners’ equity.When recognizing its entitled share of the investee’s net profit or loss other comprehensive income and other
changes in owners’ equity the recognition shall be made based on the fair value of the investee’s identifiable
net assets at the time of obtaining the investment and after making adjustments to the investee’s net profit and
other comprehensive income etc. in accordance with the Company’s accounting policies and accounting periods.Unrealized gains or losses on internal transactions between the Company and its associates or joint ventures
shall be offset to the extent of the Company’s proportionate share and investment income shall be recognized
on that basis except where the assets invested or sold constitute a business. Unrealized losses on internal
transactions with the investee that constitute asset impairment losses shall be recognized in full.For net losses incurred by a joint venture or an associate the Company shall recognize such losses to the extent
of reducing the carrying amount of the long-term equity investment and other long-term interests that in
substance constitute a net investment in the joint venture or associate to zero except where the Company has an
obligation to assume additional losses. Where the joint venture or associate subsequently realizes net profits the
Company shall resume recognizing its share of income after the income sharing amount has offset the
previously unrecognized loss sharing amount.* Disposal of Long-Term Equity Investments
Upon the disposal of a long-term equity investment the difference between its carrying amount and the actual
consideration received shall be recognized in profit or loss for the current period.
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Where a long-term equity investment accounted for using the equity method is partially disposed of and the
remaining equity interest continues to be accounted for using the equity method the other comprehensive
income previously recognized under the equity method shall be transferred on a pro-rata basis on the same basis
as would apply if the investee had directly disposed of the related assets or liabilities and other changes in
owners’ equity shall be transferred on a pro-rata basis to profit or loss for the current period.Where joint control or significant influence over the investee is lost due to the disposal of equity investments or
other reasons the other comprehensive income previously recognized in respect of the original equity
investment accounted for using the equity method shall be accounted for on the same basis as would apply if the
investee had directly disposed of the related assets or liabilities upon the discontinuation of the equity method
and other changes in owners’ equity shall be transferred in full to profit or loss for the current period upon the
discontinuation of the equity method.Where control over an investee is lost due to reasons such as the disposal of a portion of the equity investments
in preparing the separate financial statements: Where the remaining equity interest is able to exercise joint
control or exert significant influence over the investee it shall be reclassified for accounting under the equity
method and such remaining equity interest shall be adjusted as if it had been accounted for under the equity
method from the date of its initial acquisition. The other comprehensive income recognized prior to obtaining
control over the investee shall be transferred proportionately on the same basis as would apply if the investee
had directly disposed of the related assets or liabilities and other changes in owners’ equity recognized as a
result of applying the equity method shall be transferred proportionately to profit or loss for the current period.Where the remaining equity interest is unable to exercise joint control or exert significant influence over the
investee it shall be reclassified as a financial asset and the difference between the fair value and the carrying
amount as at the date of loss of control shall be recognized in profit or loss for the current period; all other
comprehensive income and other changes in owners’ equity recognized prior to obtaining control over the
investee shall be transferred in full.Where the equity investment in a subsidiary is disposed of in stages through multiple transactions until control
is lost and such transactions constitute a package deal the various transactions shall be accounted for as a
single transaction for the disposal of the equity investment in the subsidiary and the loss of control; the
difference between the consideration received from each disposal prior to the loss of control and the carrying
amount of the long-term equity investment corresponding to the equity disposed of shall first be recognized in
the separate financial statements as other comprehensive income and then transferred in aggregate to profit or
loss for the period in which control is lost. Where the transactions do not constitute a package deal each
transaction shall be accounted for separately.
20. Investment Properties
Measurement mode of investment properties: cost method
Depreciation or amortization method
Investment property refers to property held to earn rentals or for capital appreciation or both including land use
rights that have been leased out land use rights held for transfer upon appreciation and buildings that have been
leased out (including buildings self-constructed or developed for the purpose of being leased out upon
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completion as well as buildings under construction or development that are intended to be leased out in the
future).Subsequent expenditures related to investment property shall be included in the cost of the investment property
when it is probable that the associated economic benefits will flow to the Company and the cost can be
measured reliably; otherwise such expenditures shall be recognized in profit or loss for the current period as
incurred.The Company adopts the cost model to measure its existing investment property. For investment property
measured using the cost model—buildings held for leasing out the same depreciation policy as that applied to
the Company’s fixed assets shall be adopted; for land use rights held for leasing out the same amortization
policy as that applied to intangible assets shall be applied.
21. Fixed Assets
(1) Recognition conditions
Recognition and Initial Measurement of Fixed Assets
Fixed assets refer to tangible assets held for the production of goods the rendering of services leasing or
for operational and administrative purposes with a useful life exceeding one accounting year. A fixed asset
shall be recognized when the following conditions are simultaneously met:
(1) It is probable that the economic benefits associated with the fixed asset will flow to the Company;
(2) The cost of the fixed asset can be measured reliably.
Fixed assets shall be initially measured at cost (taking into account the impact of estimated
decommissioning and restoration costs).Subsequent expenditures related to a fixed asset shall be included in the cost of the fixed asset when it is
probable that the associated economic benefits will flow to the Company and the cost can be measured reliably;
the carrying amount of the replaced part shall be derecognized. All other subsequent expenditures shall be
recognized in profit or loss for the current period as incurred.
(2) Depreciation method
Depreciation Annual
Category Depreciation Period Residual Rate
Method Depreciation Rate
Houses and Straight-line
20 years 3-5 4.85-4.75
Buildings method
Machinery Straight-line
10 years 0-3 10.00-9.70
equipment method
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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
Depreciation of fixed assets shall be calculated on a category basis using the straight-line method and the
depreciation rate shall be determined based on the category of fixed assets the estimated useful life and the
estimated residual value ratio. For fixed assets for which impairment provisions have been made the
depreciation amounts in future periods shall be determined based on the carrying amount net of the impairment
provisions and the remaining useful life. Where the individual components of a fixed asset have different useful
lives or provide economic benefits to the Company in different ways different depreciation rates or
depreciation methods shall be adopted and depreciation shall be calculated separately for each component.Disposal of Fixed Assets
If a fixed asset is disposed of or if no economic benefit will be obtained from the use or disposal the
recognition of such fixed asset is terminated. The disposal income from the sale transfer retirement or damage
of fixed assets shall be included in current profits and losses after deducting its book value and relevant taxes.
22. Construction in Progress
Construction in progress shall be measured at actual costs incurred. Actual costs include construction costs
installation costs borrowing costs eligible for capitalization and other necessary expenditures incurred to bring
the construction in progress to its intended state of use. Construction in progress shall be transferred to fixed
assets when it reaches its intended state of use and depreciation shall commence from the following month.
23. Borrowing Costs
(1) Recognition principles for capitalization of borrowing costs
Borrowing costs incurred by the Company that are directly attributable to the acquisition construction or
production of a qualifying asset shall be capitalized and included in the cost of the relevant assets; other
borrowing costs shall be recognized as expenses when incurred and charged to profit or loss for the current
period.Qualifying assets refer to assets — such as fixed assets investment property and inventories — that require a
substantial period of time for acquisition construction or production activities to reach their intended state of
use or sale.
(2) Capitalization period of borrowing costs
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The capitalization period refers to the period from the commencement of capitalization of borrowing costs to
the cessation of capitalization excluding any period during which capitalization is suspended.Capitalization of borrowing costs shall commence when the following conditions are simultaneously met:
* Expenditures on the asset have been incurred which include expenditures in the form of cash payments
transfers of non-cash assets or the assumption of interest-bearing debt for the acquisition construction or
production of a qualifying asset;
* Borrowing costs have been incurred;
* Acquisition construction or production activities that are necessary to bring the asset to its intended state of
use or sale have commenced.Capitalization of borrowing costs shall cease when the qualifying asset under acquisition construction or
production reaches its intended state of use or sale.Suspension of Capitalization
Where the acquisition construction or production of a qualifying asset is subject to an abnormal interruption
and the interruption lasts for a continuous period of more than 3 months capitalization of borrowing costs shall
be suspended; however where the interruption is a necessary procedure for the qualifying asset under
acquisition construction or production to reach its intended state of use or sale capitalization of borrowing
costs shall continue. Borrowing costs incurred during the interruption period shall be recognized in profit or loss
for the current period until the acquisition construction or production activities resume after which
capitalization of borrowing costs shall continue.
(3) Calculation Methods for the Capitalization Rate and Capitalized Amount of Borrowing Costs
For specific borrowings obtained for the acquisition construction or production of a qualifying asset the
capitalized amount of borrowing costs shall be determined as the actual borrowing costs incurred on the specific
borrowings during the current period less any interest income earned on unused borrowing funds deposited in
banks or any investment income earned from temporary investments of such funds.For general borrowings utilized for the acquisition construction or production of a qualifying asset the amount
of borrowing costs from general borrowings to be capitalized shall be determined by multiplying the weighted
average amount of cumulative asset expenditures in excess of the specific borrowings by the capitalization rate
of the general borrowings utilized. The capitalization rate shall be determined based on the weighted average
actual interest rate of the general borrowings.
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During the capitalization period exchange differences arising from the principal and interest of specific foreign
currency borrowings shall be capitalized and included in the cost of the qualifying asset. Exchange differences
arising from the principal and interest of foreign currency borrowings other than specific foreign currency
borrowings shall be recognized in profit or loss for the current period.
24. Intangible Assets
(1) Service life and its determination basis estimate amortization method or review procedure
Valuation Method for Intangible Assets
The Company shall initially measure intangible assets at cost upon acquisition;
The cost of externally acquired intangible assets includes the purchase price relevant taxes and surcharges and
other expenditures directly attributable to bringing the asset to its intended use.Subsequent Measurement
Upon acquisition of an intangible asset its useful life shall be analyzed and determined.Intangible assets with finite useful lives shall be amortized over the period during which they are expected to
generate economic benefits for the Company; where it is not possible to foresee the period during which an
intangible asset will generate economic benefits for the Company it shall be classified as an intangible asset
with an indefinite useful life and shall not be amortized.Estimation of Useful Lives of Intangible Assets with Finite Useful Lives
Item Estimated Useful Life Amortization Method
Land use right 50 years Straight-line method
Software 2-10 years Straight-line method
Non-patented
5-10 years Straight-line method
technology
(2) Scope of aggregation of expenditures on research and development and related accounting treatment
methods
Scope of Collection of Research and Development Expenditures
The Company’s research and development expenditures are directly related to the Company’s research and
development activities including research and development labor costs test expenses depreciation costs
design fees and trial production fees.Specific Criteria for Distinguishing Between the Research Phase and the Development Phase
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Expenditures on the Company’s internal research and development projects shall be classified into research
phase expenditures and development phase expenditures.Specific Conditions for Capitalization of Development Phase Expenditures
The expenditures at the research stage are included in current profits and losses when incurred. Expenditures in
the development phase that simultaneously meet the following conditions shall be recognized as intangible
assets; development phase expenditures that fail to meet the following conditions shall be charged to profit or
loss for the current period:
* It is technically feasible to complete the intangible asset so that it will be available for use or sale;
* The Company has the intention to complete the intangible asset and to use or sell it;
* The way in which the intangible asset will generate economic benefits can be demonstrated — including
evidence that a market exists for the products produced using the intangible asset or for the intangible asset
itself; where the intangible asset is to be used internally its usefulness can be demonstrated;
* There are adequate technical financial and other resources available to support the completion of the
development of the intangible asset and the Company has the ability to use or sell the intangible asset;
* The expenditures attributable to the development phase of the intangible asset can be reliably measured.Where it is not possible to distinguish between research phase expenditures and development phase
expenditures all research and development expenditures incurred shall be charged to profit or loss for the
current period.The R&D projects of the Company enter the development stage after project approval by meeting the above
conditions and passing the technical feasibility and economic feasibility study.The capitalized expenditures at the development stage are presented as development expenditures on the
balance sheet and are transferred into intangible assets from the date when the project realizes its intended use.The capitalization conditions of specific research and development projects are as follows: The Company’s
research and development project ends with product planning and the division point of the research and
development stages lies in the fact that the overall plan of the development project is prepared and adopted
through deliberation and decision-making on the product project review meeting (that is project initiation).Expenses incurred during the planning stage prior to project commencement shall be directly charged to profit
or loss for the current period and expenses incurred in the stage following project commencement shall be
included in development phase expenditures.
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25.Impairment of Long-term Assets
Where there are indications of impairment as at the balance sheet date for long-term assets such as long-term
equity investments investment property measured using the cost model fixed assets construction in progress
right-of-use assets and intangible assets with finite useful lives an impairment test shall be performed. Where
the results of the impairment test indicate that the recoverable amount of an asset is lower than its carrying
amount an impairment provision shall be recognized for the difference and charged to impairment losses. The
recoverable amount shall be the higher of the asset’s fair value less costs of disposal and the present value of the
asset’s estimated future cash flows. Impairment provisions shall be calculated and recognized on an individual
asset basis. Where it is difficult to estimate the recoverable amount of an individual asset the recoverable
amount shall be determined at the level of the asset group to which the asset belongs. An asset group is the
smallest group of assets that is capable of generating cash inflows independently.For goodwill arising from business combinations intangible assets with indefinite useful lives and intangible
assets that have not yet reached a state ready for use an impairment test shall be performed at least at the end of
each year regardless of whether there is any indication of impairment.The Company shall perform impairment testing on goodwill. The carrying amount of goodwill arising from a
business combination shall be allocated from the acquisition date to the relevant asset groups on a reasonable
basis; where it is difficult to allocate goodwill to the relevant asset groups it shall be allocated to the relevant
groups of asset groups. The relevant asset group or group of asset groups refers to an asset group or group of
asset groups that is expected to benefit from the synergies of the business combination.When performing an impairment test on the relevant asset group or group of asset groups containing goodwill
where there are indications of impairment in the asset group or group of asset groups related to goodwill an
impairment test shall first be performed on the asset group or group of asset groups excluding goodwill. The
recoverable amount shall be calculated and compared with the relevant carrying amount and the corresponding
impairment loss shall be recognized accordingly. Subsequently an impairment test shall be performed on the
asset group or group of asset groups containing goodwill by comparing its carrying amount with its recoverable
amount. Where the recoverable amount is lower than the carrying amount the impairment loss shall first be
applied to reduce the carrying amount of goodwill allocated to the asset group or group of asset groups and
then shall be allocated pro rata to reduce the carrying amounts of the other individual assets within the asset
group or group of asset groups based on their respective proportionate carrying amounts.Once the above asset impairment losses are recognized they shall not be reversed in subsequent accounting
periods.
26.Long-term Deferred Expenses
Long-term prepaid expenses refer to various expenses that have been incurred but are to be borne by the current
and subsequent periods with an amortization period of more than one year.
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27.Contract Liabilities
The Company presents the contract assets or contract liabilities in the balance sheet according to the
relationship between the performance obligations and the customer’s payment. The Company’s obligation to
transfer goods or render services to a customer for which consideration has been received or is receivable from
the customer shall be presented as a contract liability. Contract assets and contract liabilities under the same
contract shall be presented on a net basis.
28.Employee Compensation
(1) Accounting method of short-term compensation
During the accounting period in which employees render services to the Company the Company shall
recognize the short-term employee benefits actually incurred as a liability and charge such liability to profit or
loss for the current period or to the cost of the relevant asset.For social insurance premiums and housing provident fund contributions paid by the Company on behalf of
employees as well as labor union funds and employee education funds accrued in accordance with regulations
the corresponding amount of employee benefits shall be determined based on the prescribed accrual basis and
accrual ratios during the accounting period in which the employees render services to the Company.Employee welfare expenses incurred by the Company shall be charged to profit or loss for the current period or
to the cost of the relevant asset based on the actual amount when incurred; non-monetary benefits shall be
measured at fair value.
(2) Accounting method of post-employment benefits
Defined contribution plan
The Company makes basic pension insurance and unemployment insurance contributions for its employees in
accordance with the relevant regulations of the local government. During the accounting period in which
employees render services to the Company the amount payable shall be calculated based on the locally
prescribed contribution base and contribution rate recognized as a liability and charged to profit or loss for the
current period or to the cost of the relevant asset. In addition the Company participates in enterprise annuity
plans approved by the relevant national authorities. The Company contributes to the annuity plans at a certain
percentage of total employee wages and the corresponding expenditures shall be charged to profit or loss for
the current period or to the cost of the relevant asset.Defined benefit plan
The Company shall attribute the benefit obligations arising from defined benefit plans to the periods in which
employees render services in accordance with the formula determined under the projected unit credit method
and shall charge them to profit or loss for the current period or to the cost of the relevant asset.
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The deficit or surplus arising from the present value of the defined benefit obligations less the fair value of the
defined benefit plan assets shall be recognized as a net defined benefit liability or net defined benefit asset.Where there is a surplus in the defined benefit plan the Company shall measure the net defined benefit asset at
the lower of the surplus and the asset ceiling.All defined benefit obligations including those expected to be settled within twelve months after the end of the
annual reporting period in which the employees render services shall be discounted at market yields as at the
balance sheet date on government bonds or on high-quality corporate bonds traded in an active market whose
currency and term are consistent with those of the defined benefit obligations.Service costs arising from defined benefit plans and the net interest on the net defined benefit liability or net
defined benefit asset shall be charged to profit or loss for the current period or to the cost of the relevant asset;
changes arising from the remeasurement of the net defined benefit liability or net defined benefit asset shall be
recognized in other comprehensive income and shall not be reclassified to profit or loss in subsequent
accounting periods. Upon termination of the original defined benefit plan the amounts previously recognized in
other comprehensive income shall be transferred in full to retained earnings within equity.Upon settlement of the defined benefit plan a settlement gain or loss shall be recognized as the difference
between the present value of the defined benefit obligation as determined on the settlement date and the
settlement price.
(3) Accounting method of dismissal welfare
When the Company provides termination benefits to employees the employee benefit liabilities arising from
such termination benefits shall be recognized at the earlier of the following two dates and charged to profit or
loss for the current period: (1) when the Company can no longer unilaterally withdraw the termination benefits
offered under a plan to terminate the employment relationship or a redundancy proposal; (2) when the Company
recognizes the costs or expenses related to a restructuring that involves the payment of termination benefits.
(4) Accounting method of other long-term employee benefits
Other long-term employee benefits provided by the Company to its employees that satisfy the conditions for
classification as a defined contribution plan shall be accounted for in accordance with the above provisions
relating to defined contribution plans. Those that satisfy the conditions for classification as a defined benefit
plan shall be accounted for in accordance with the above provisions relating to defined benefit plans; however
the “changes arising from the remeasurement of the net defined benefit liability or net defined benefit asset”
component of the related employee benefit costs shall be charged to profit or loss for the current period or to the
cost of the relevant asset.
29. Provisions
The Company shall recognize a provision when an obligation related to a contingency simultaneously meets all
of the following conditions:
* The obligation is a present obligation assumed by the Company;
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* The fulfillment of the obligation is likely to result in an outflow of economic benefits from the Company;
* The amount of the obligation can be reliably measured.A provision shall be initially measured at the best estimate of the expenditure required to settle the related
present obligation.In determining the best estimate the Company shall take into consideration factors such as the risks
uncertainties and the time value of money associated with the contingency. Where the impact of the time value
of money is material the best estimate shall be determined by discounting the relevant future cash outflows.Where the required expenditure falls within a continuous range and each outcome within such range is equally
likely to occur the best estimate shall be determined as the midpoint of that range; in other cases the best
estimate shall be determined as follows:
·Where the contingency involves a single item the best estimate shall be determined at the most likely outcome.·Where the contingency involves multiple items the best estimate shall be calculated based on all possible
outcomes and their associated probabilities.Where some or all of the expenditure required to settle a provision is expected to be reimbursed by a third party
the reimbursement shall be separately recognized as an asset when it is virtually certain that the reimbursement
will be received provided that the amount so recognized shall not exceed the carrying amount of the provision.At each balance sheet date the Company shall review the carrying amount of each provision. Where there is
conclusive evidence that such carrying amount does not reflect the current best estimate the carrying amount
shall be adjusted to the current best estimate.
30.Share-based Payment
A share-based payment of the Company is a transaction in which the Company grants equity instruments or
incurs liabilities determined on the basis of equity instruments in exchange for services rendered by employees
or other parties. The Company’s share-based payments are classified into equity-settled share-based payments
and cash-settled share-based payments.Equity-Settled Share-Based Payments and Equity Instruments
Where equity-settled share-based payments are made in exchange for services rendered by employees such
payments shall be measured at the fair value of the equity instruments granted to the employees. For share-
based payment transactions that vest immediately upon grant the fair value of the equity instruments shall be
charged to the relevant costs or expenses on the grant date with a corresponding increase in capital reserve. For
share-based payment transactions that vest only upon completion of services during the vesting period or upon
the achievement of specified performance conditions at each balance sheet date during the vesting period the
Company shall based on the best estimate of the number of equity instruments expected to vest and at the
grant-date fair value charge the services received during the current period to the relevant costs or expenses
with a corresponding increase in capital reserve.
217Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Where the terms of an equity-settled share-based payment are modified the services received shall be
recognized at a minimum as if the terms had not been modified. In addition any modification that increases the
fair value of the equity instruments granted or any change that is favorable to the employees on the
modification date shall be recognized as an increase in the services received.Where equity instruments granted are canceled during the vesting period the Company shall treat such
cancellation as an acceleration of vesting and shall immediately charge to profit or loss for the current period
the amount that would otherwise have been recognized over the remaining vesting period with a corresponding
increase in capital reserve. However where new equity instruments are granted and are identified on the grant
date of such new equity instruments as replacements for the canceled equity instruments the replacement
equity instruments so granted shall be accounted for in the same manner as a modification of the terms and
conditions of the original equity instruments.Cash-Settled Share-Based Payments and Equity Instruments
Share-based payments settled by cash are measured at the fair value of liabilities recognized based on shares or
other equity instruments assumed by the Company. For share-based payment transactions that are vested
immediately upon grant the Company recognizes the fair value of the liability incurred in the relevant cost or
expense on the grant date with a corresponding increase in liabilities. For share-based payment transactions that
vest only upon completion of services during the vesting period or upon the achievement of specified
performance conditions at each balance sheet date during the vesting period the Company shall based on the
best estimate of the vesting outcome and at the fair value of the liability assumed by the Company charge the
services received during the current period to the relevant costs or expenses with a corresponding increase in
liabilities. On each balance sheet date and the settlement date prior to the settlement of the relevant liabilities
the fair value of the liabilities shall be re-measured with its changes included in the current profits and losses.Where the Company modifies the terms and conditions of a cash-settled share-based payment agreement so as
to reclassify it as an equity-settled share-based payment on the modification date (whether such modification
occurs during or after the vesting period) the Company shall measure the equity-settled share-based payment at
the fair value of the equity instruments granted on that date recognize the services already received in capital
reserve and simultaneously derecognize the liability recognized for the cash-settled share-based payment as at
the modification date with any difference between the two amounts charged to profit or loss for the current
period. Where the modification results in an extension or shortening of the vesting period the Company shall
apply the accounting treatment based on the modified vesting period.
31. Income
Accounting policies adopted for recognition and measurement of income disclosed by business type
The Company shall recognize revenue when it has satisfied its performance obligations under the contract i.e.when the customer obtains control of the relevant goods or services. Obtaining control of the relevant goods or
services refers to the ability to direct the use of the goods or services and obtain substantially all of the
remaining economic benefits from them.
218Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Where a contract contains two or more performance obligations the Company shall at contract inception
allocate the transaction price to each separate performance obligation on a relative stand-alone selling price
basis for the goods or services promised under each such performance obligation. The Company shall measure
revenue at the transaction price allocated to each separate performance obligation.The transaction price refers to the amount of consideration to which the Company expects to be entitled in
exchange for transferring goods or services to the customer excluding amounts collected on behalf of third
parties and amounts expected to be refunded to the customer. The Company shall determine the transaction
price based on the contract terms and its past customary practices taking into account the effects of factors such
as variable consideration significant financing components in the contract non-cash consideration and
consideration payable to the customer. The Company shall include variable consideration in the transaction
price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue
recognized will not occur when the uncertainty associated with the variable consideration is subsequently
resolved. Where a contract contains a significant financing component the Company shall determine the
transaction price at the amount that would be payable if the customer had paid cash at the time of obtaining
control of the goods or services and shall amortize the difference between such transaction price and the
contract consideration over the contract period using the effective interest rate method.A performance obligation is satisfied over time if it meets any one of the following criteria. Otherwise it is
satisfied at a point in time:
* The customer simultaneously receives and consumes the benefits provided by the Company’s performance as
the Company performs.* The customer controls the asset as it is created or enhanced by the Company’s performance;
* The Company’s performance does not create an asset with an alternative use to the Company and the
Company has an enforceable right to payment for performance completed to date.For a performance obligation satisfied over time the Company shall recognize revenue over that period by
measuring the progress towards complete satisfaction of that performance obligation except where such
progress cannot be reasonably determined. The Company shall determine the progress of satisfaction by using
either the output method or the input method taking into consideration the nature of the goods or services.Where the progress of satisfaction cannot be reasonably determined but the costs incurred are expected to be
recoverable the Company shall recognize revenue only to the extent of the costs incurred until such time as the
progress of satisfaction can be reasonably determined.For performance obligations performed at a certain time point the Company shall confirm the income at the
time point when the customer gains control rights of the relevant goods or services. In determining whether the
customer has obtained control of the goods or services the Company shall consider the following indicators:
* The Company has a present right to payment for the goods or services i.e. the customer has a present
obligation to pay for the goods or services.
219Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
* The Company has transferred legal title to the asset to the customer i.e. the customer has legal title to the
asset;
* The Company has transferred physical possession of the asset to the customer i.e. the customer has physical
possession of the asset;
* The Company has transferred the significant risks and rewards of ownership of the asset to the customer i.e.the customer has assumed the significant risks and rewards of ownership of the asset.* The customer has accepted the asset or service; etc.The Company shall determine whether it acts as a principal or an agent in a transaction based on whether it
controls the goods or services before they are transferred to the customer. Where the Company controls the
specified goods or services before they are transferred to the customer the Company is the principal and shall
recognize revenue in the gross amount of consideration received or receivable; otherwise the Company is an
agent and shall recognize revenue in the amount of any fee or commission to which it expects to be entitled.The specific revenue recognition methods and measurement methods are disclosed by business type.The Company’s specific method for recognizing revenue from sales of vehicles and their accessories is as
follows: When vehicles and their accessories are transported to the agreed delivery location as specified in the
contract and the customer has accepted the goods and obtained control of the goods the Company recognizes
revenue.Situations where different operating models for similar businesses involve different revenue recognition
methods and measurement approaches
32. Contract Cost
Contract costs comprise contract fulfillment costs and contract acquisition costs.Where costs incurred by the Company in fulfilling a contract are not within the scope of other applicable
standards such as those relating to inventories fixed assets or intangible assets and the following conditions
are met the Company shall recognize such costs as an asset (contract fulfillment costs):
*·The costs relate directly to a contract or to an anticipated contract.* The costs generate or enhance resources of the Company that will be used in satisfying performance
obligations in the future;
* The costs are expected to be recovered.Where the incremental costs of obtaining a contract are expected to be recoverable the Company shall
recognize them as an asset (contract acquisition costs).
220Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
An asset recognized in accordance with the above provisions shall be amortized on a systematic basis consistent
with the transfer to the customer of the goods or services to which the asset relates; however where the
amortization period of contract acquisition costs does not exceed one year the Company shall charge such costs
to profit or loss for the current period when incurred.Where the carrying amount of an asset related to contract costs exceeds the difference between the following
two items the Company shall make an impairment provision for the excess amount and recognize it as an asset
impairment loss:
1. The remaining consideration that the Company expects to receive in exchange for the transfer of goods or
services to which the asset relates;
2. The costs that the Company estimates it will incur in transferring those goods or services.
Where the factors giving rise to impairment in prior periods subsequently change such that the aforementioned
difference exceeds the carrying amount of the asset the Company shall reverse the previously recognized
impairment provision and charge the reversal to profit or loss for the current period provided that the reversed
carrying amount of the asset shall not exceed the carrying amount that would have been determined on the
reversal date had no impairment provision been recognized.
33.Government Subsidies
Type
Government grants refer to monetary assets or non-monetary assets received by the Company from the
government free of charge and are classified into asset-related government grants and income-related
government grants.The government subsidies considered as monetary assets are measured at the amount received or receivable.The government subsidies considered as non-monetary assets are measured based on the fair value or the
nominal amount of CNY 1 if the fair value cannot be acquired reliably.Asset-related government grants refer to government grants received by the Company for the purpose of
acquiring constructing or otherwise forming long-term assets. Income-related government grants refer to
government grants other than asset-related government grants.Where the government documents do not specifically designate the object of a government grant the portion of
the grant that can form long-term assets and corresponds to the value of such assets shall be classified as an
asset-related government grant and the remainder shall be classified as an income-related government grant.Where it is difficult to distinguish between the two the government grant shall be classified in its entirety as an
income-related government grant.Timing of Recognition
Government grants shall be recognized when the Company is able to satisfy the conditions attached thereto and
it is virtually certain that the grants will be received.
221Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Accounting Treatment
Asset-related government grants shall either be offset against the carrying amount of the related assets or be
recognized as deferred income. Where recognized as deferred income such grants shall be allocated to profit or
loss on a reasonable and systematic basis over the useful life of the related assets (grants related to the
Company’s ordinary course of business shall be recognized in other income; grants not related to the
Company’s ordinary course of business shall be recognized in non-operating income).Income-related government grants intended to compensate the Company for related costs expenses or losses to
be incurred in future periods shall be recognized as deferred income and shall be charged to profit or loss
(grants related to the Company’s ordinary course of business shall be recognized in other income; grants not
related to the Company’s ordinary course of business shall be recognized in non-operating income) or offset
against the related costs expenses or losses in the periods in which such costs expenses or losses are
recognized. Income-related government grants intended to compensate the Company for related costs expenses
or losses already incurred shall be directly recognized in profit or loss for the current period (grants related to
the Company’s ordinary course of business shall be recognized in other income; grants not related to the
Company’s ordinary course of business shall be recognized in non-operating income) or offset against the
related costs expenses or losses.If it is necessary to refund the government subsidies that have been recognized the book value of the assets
which has been offset at the time of initial recognition is adjusted; the book balance of the deferred income
concerned (if any) is offset and the excess is included in the current profits and losses; others are directly
included in the current profits and losses.
34. Deferred Tax Assets and Deferred Tax Liabilities
Income tax includes current income tax and deferred income tax. Except for income tax arising from business
combinations and transactions or events that are directly recognized in owners’ equity (including other
comprehensive income) the Company shall recognize current income tax and deferred tax in profit or loss for
the current period.Deferred tax assets and deferred tax liabilities are recognized based on the differences between the tax bases of
assets and liabilities and their carrying amounts (i.e. temporary differences).Deferred tax assets shall be recognized for deductible temporary differences to the extent that it is probable that
future taxable profit will be available against which the deductible temporary differences can be utilized. The
Company shall recognize deferred tax assets for deductible tax losses and tax credits that can be carried forward
to subsequent years to the extent that it is probable that future taxable profit will be available against which
such deductible tax losses and tax credits can be utilized.Deferred tax liabilities shall be recognized for all taxable temporary differences except in the specific
circumstances described below.The specific circumstances in which deferred tax assets or deferred tax liabilities are not recognized include:
222Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
* The initial recognition of goodwill;
* A transaction or event that is not a business combination and at the time of the transaction affects neither
accounting profit nor taxable profit (or deductible tax losses) and for which the initial recognition of the assets
and liabilities does not give rise to equal taxable and deductible temporary differences.Deferred tax liabilities shall be recognized for taxable temporary differences associated with investments in
subsidiaries associates and joint ventures except where the Company is able to control the timing of the
reversal of the temporary differences and it is probable that such temporary differences will not reverse in the
foreseeable future. Deferred tax assets shall be recognized for deductible temporary differences associated with
investments in subsidiaries associates and joint ventures to the extent that it is probable that the temporary
differences will reverse in the foreseeable future and sufficient taxable profit will be available against which
such deductible temporary differences can be utilized.At the balance sheet date deferred tax assets and deferred tax liabilities shall be measured at the tax rates that
are expected to apply to the period when the related assets are recovered or the related liabilities are settled in
accordance with the provisions of tax laws.At the balance sheet date the Company reviews the book value of a deferred income tax asset. Where it is
probable that sufficient taxable profit will not be available to allow the benefit of part or all of the deferred tax
asset to be utilized the carrying amount of the deferred tax asset shall be written down accordingly. Any such
write-down shall be subsequently reversed where it becomes probable that sufficient taxable income will be
available.Where the Company has a legally enforceable right to set off current tax assets against current tax liabilities
and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously current tax
assets and current tax liabilities shall be presented on a net basis.At the balance sheet date deferred tax assets and deferred tax liabilities shall be presented on a net basis when
both of the following conditions are met:
* The taxpaying entity has a legally enforceable right to set off current tax assets against current tax liabilities;
* The deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority
on either the same taxable entity or different taxable entities which intend in each future period in which
significant amounts of deferred tax liabilities or assets are expected to be settled or recovered either to settle
current tax assets and liabilities on a net basis or to realize the assets and settle the liabilities simultaneously.
35. Lease
(1) Accounting treatment methods of lease with the Company as the lessee
A lease is a contract or part of a contract that conveys the right to use an asset (the underlying asset) for a
period of time in exchange for consideration. At the inception of a contract the Company shall assess whether
223Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
the contract is or contains a lease. A contract is or contains a lease if the contract conveys the right to control
the use of an identified asset for a period of time in exchange for consideration.Where a contract contains multiple separate lease components the Company shall separate the contract and
account for each lease component separately. Where a contract contains both lease and non-lease components
the lessee and the lessor shall separate the lease components from the non-lease components.The Company as Lessee
Right-of-use assets
At the commencement date the Company shall recognize a right-of-use asset for all leases other than short-term
leases and leases of low-value assets. The right-of-use asset shall be initially measured at cost. The cost
comprises:
the amount of the initial measurement of the lease liability;
lease payments made on or before the lease commencement date from which any lease incentives enjoyed (if
any) needed to be deducted;
any initial direct costs incurred by the Company;
an estimate of costs to be incurred by the Company in dismantling and removing the underlying asset restoring
the site on which the underlying asset is located or restoring the underlying asset to the condition required by
the terms and conditions of the lease less any lease incentives received but excluding costs attributable to the
production of inventories.The Company shall subsequently depreciate the right-of-use asset on a straight-line basis. Where it is
reasonably certain that the Company will obtain ownership of the underlying asset by the end of the lease term
the right-of-use asset shall be depreciated over the remaining useful life of the underlying asset. Otherwise the
right-of-use asset shall be depreciated over the shorter of the lease term and the remaining useful life of the
underlying asset.The Company shall determine whether a right-of-use asset is impaired and shall account for any identified
impairment loss in accordance with the principles set out in Section 25 “Impairment of Long-term Assets”
herein.Lease liabilities
At the commencement date the Company shall recognize a lease liability for all leases other than short-term
leases and leases of low-value assets. The lease liability shall be initially measured at the present value of the
lease payments that are not paid at the commencement date. Lease payments comprise:
Fixed payments (including in-substance fixed payments) less any lease incentives receivable;
Variable lease payments that depend on an index or rate;
Amounts expected to be payable by the Company under residual value guarantees;
224Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
The exercise price of a purchase option if the Company is reasonably certain to exercise that option;
Payments of penalties for terminating the lease if the lease term reflects the Company exercising an
option to terminate the lease.The Company shall use the interest rate implicit in the lease as the discount rate. Where the interest rate implicit
in the lease cannot be readily determined the Company shall use its incremental borrowing rate as the discount
rate.The Company shall calculate interest on the lease liability in each period during the lease term at a constant
periodic rate of interest and shall charge such interest to profit or loss for the current period or to the cost of the
related asset.Variable lease payments not included in the measurement of the lease liability shall be recognized in profit or
loss for the period in which the event or condition that triggers those payments occurs or included in the cost of
the related asset as applicable.After the commencement date where any of the following circumstances occur the Company shall remeasure
the lease liability and adjust the carrying amount of the corresponding right-of-use asset accordingly. Where the
carrying amount of the right-of-use asset has been reduced to zero and a further reduction in the measurement of
the lease liability is required any remaining amount of the remeasurement shall be recognized in profit or loss
for the current period:
Where there is a change in the assessment of an option to purchase the underlying asset an option to
extend the lease or an option to terminate the lease or where the actual exercise of the aforementioned
options differs from the original assessment the Company shall remeasure the lease liability at the
present value of the revised lease payments discounted using a revised discount rate;
Where there is a change in the in-substance fixed payments a change in the amounts expected to be
payable under a residual value guarantee or a change in the index or rate used to determine the lease
payments the Company shall remeasure the lease liability at the present value of the revised lease
payments discounted using the unchanged (original) discount rate. However where the change in lease
payments results from a change in floating interest rates a revised discount rate shall be used to
discount the revised lease payments.Short-term Leases and Leases of Low-value Assets
Where the Company elects not to recognize right-of-use assets and lease liabilities for short-term leases and
leases of low-value assets the related lease payments shall be recognized in profit or loss or the cost of the
related asset on a straight-line basis over the lease term. A short-term lease is a lease that at the commencement
date has a lease term of 12 months or less and does not contain a purchase option. A lease of a low-value asset
is a lease for which the underlying asset is of low value when new. Where the Company subleases or expects to
sublease the underlying asset the head lease does not qualify as a lease of a low-value asset. For the purposes
of the Company a lease of a low-value asset refers to a lease for which the value of a single underlying asset
when new is less than CNY 40 thousand.Lease change
225Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Where a lease is modified and both of the following conditions are met the Company shall account for the lease
modification as a separate lease:
The modification increases the scope of the lease by adding the right to use one or more underlying assets; and
The consideration for the lease increases by an amount commensurate with the stand-alone price for the
increase in scope adjusted to reflect the circumstances of the particular contract.Where a lease modification is not accounted for as a separate lease on the effective date of the modification the
Company shall reallocate the consideration in the modified contract redetermine the lease term and remeasure
the lease liability at the present value of the revised lease payments discounted using a revised discount rate.If the lease scope is reduced or the lease term is shortened due to the lease change the Company will
correspondingly reduce the book value of right-of-use assets and include relevant profits or losses of partial or
complete termination of leasing in current profits and losses. If the lease liabilities are remeasured due to the
other lease changes the Company shall adjust the book value of the right-of-use asset accordingly.
(2) Accounting methods of lease with the Company as the lessor
At the inception date of the lease the Company shall classify each lease as either a finance lease or an operating
lease. A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership of
an underlying asset. Title may or may not eventually be transferred. An operating lease refers to a lease other
than a finance lease. When the Company acts as an intermediate lessor it shall classify the sublease by
reference to the right-of-use asset arising from the head lease rather than by reference to the underlying asset.Accounting Treatment for Operating Leases
Lease payments from operating leases shall be recognized as lease income on a straight-line basis over the lease
term. Initial direct costs incurred by the Company in obtaining an operating lease shall be added to the carrying
amount of the underlying asset and recognized as an expense over the lease term on the same basis as the lease
income. Variable lease payments not included in the lease payments shall be recognized as income in profit or
loss for the period in which they are earned. Where an operating lease is modified the Company shall account
for the modification as a new lease from the effective date of the modification and any prepaid or accrued lease
payments relating to the original lease shall be treated as part of the lease payments of the new lease.Accounting Treatment for Finance Leases
At the commencement date the Company shall recognize finance lease receivables for finance leases and
derecognize the underlying asset. On initial measurement of the finance lease receivables the Company shall
record such receivables at an amount equal to the net investment in the lease. The net investment in the lease
equals the sum of the unguaranteed residual value and the present value of the lease payments not yet received
at the commencement date discounted at the interest rate implicit in the lease.
226Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
The Company shall recognize finance income over the lease term based on a pattern reflecting a constant
periodic rate of return on the Company’s net investment in the lease. Derecognition and impairment of finance
lease receivables shall be accounted for in accordance with “III. (X) Financial Instruments” in this note.Variable lease payments not included in the measurement of the net investment in the lease shall be recognized
in profit or loss in the period in which they are earned.Where a finance lease is modified and both of the following conditions are met the Company shall account for
the lease modification as a separate lease:
The modification increases the scope of the lease by adding the right to use one or more underlying
assets; and
The consideration for the lease increases by an amount commensurate with the stand-alone price for the
increase in scope adjusted to reflect the circumstances of the particular contract.Where a finance lease modification is not accounted for as a separate lease the Company shall account for the
modified lease according to the following circumstances:
If the modification had been in effect at the inception date of the lease and the lease would have been
classified as an operating lease the Company shall account for the lease modification as a new lease
from the effective date of the modification and shall measure the carrying amount of the underlying
asset as the net investment in the lease immediately before the effective date of the modification;
If the modification had been in effect at the inception date of the lease and the lease would have been
classified as a finance lease the Company shall apply the accounting policy for the modification or
renegotiation of contracts as set out in “III. (X) Financial Instruments” in this note.
36. Other Significant Accounting Policies and Accounting Estimates
Work Safety Expenses and Maintenance & Simple Reproduction Expenses
In accordance with the provisions of CZ [2022] No. 136 the Company accrues work safety expenses on a
monthly basis in equal amounts using a progressive regression method with the actual operating revenue of the
previous year as the accrual basis. The specific standards are as follows:
For the machinery manufacturing enterprises with an operating income of not exceeding CNY 10 million
2.35% of work safety cost will be withdrawn; for the part of operating income between CNY 10 million and
CNY 100 million 1.25% will be withdrawn; for the part of the operating income between CNY 100 million and
CNY 1 billion 0.25% will be withdrawn; for the part of the operating income between CNY 1 billion and CNY
5 billion 0.1% will be withdrawn; for the part of the operating income over CNY 5 billion 0.05% will be
withdrawn.For transportation enterprises the work safety cost is withdrawn month by month in an average manner
according to the following standards based on the actual operating income in the previous year: 1% for ordinary
freight business; 1.5% for passenger transportation pipeline transportation dangerous goods transportation and
other special freight businesses. Work safety expenses and maintenance & simple reproduction expenses shall
227Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
upon accrual be charged to the cost of the related products or to profit or loss for the current period and shall
be simultaneously credited to the “Special Reserve” account.For the withdrawn work safety cost and maintenance & renovation cost used within the specified scope those
belong to expense expenditures are directly offset by specific reserves; those cost incurred via collection under
the item of “construction in progress” is recognized when the safety project completes and is ready for intended
use. At the same time the Company will offset the specific reserves according to the cost that formed fixed
assets and determine the accumulated depreciation of the same amount. The fixed assets will no longer be
depreciated in subsequent periods.Repurchase of the Company’s 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.
37. Changes in Significant Accounting Policies and Accounting Estimates
(1) Change in significant accounting policies
□Applicable□Not applicable
(2) Change in significant accounting estimates
□Applicable□Not applicable
(3) Adjustment of relevant items in the financial statements at the beginning of the year after the first
implementation of the new accounting standards since 2025
□Applicable□Not applicable
VI. Taxes
1. Main Taxes and Tax Rates
Tax Category Tax Basis Tax Rate
Output VAT is calculated on the basis of revenue from
VAT sales of goods and taxable services as determined in 18% 15% 13% 9% 6% 5%
accordance with applicable tax laws. After deducting
228Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
the input VAT creditable for the current period the
balance represents the VAT payable.Urban
maintenance and Calculated and paid based on the VAT actually paid 7% 5% 3%
construction tax
Corporate income
Taxable income 25%
tax
Education
Calculated and paid based on the VAT actually paid 3%
surcharges
Local educational
Calculated and paid based on the VAT actually paid 2%
surcharges
Land use tax Land use area CNY 9/m2 CNY 14/m2 etc.Property tax Property residual value and rental income 1.2% 12%
Disclosure of different corporate income tax rates for taxable entities
Name of Taxpayer Income Tax Rate
Jiefang Limited 15%
FAW Jiefang Dalian Diesel Engine Co. Ltd. 15%
Apart from the preferential tax rates mentioned above other
Other Organizations
organizations are subject to the local statutory tax rates.
2. Tax Preference
(1) Income tax
Jiefang Limited a subsidiary of the Company is recognized as a high-tech enterprise with a validity period of
three years and an income tax rate of 15% within the validity period according to the High-tech Enterprise
Certificate (issued on October 16 2023 with a certificate number of GR202322000922) jointly issued by the
Science and Technology Department of Jilin Province the Department of Finance of Jilin Province and the Jilin
Provincial Tax Service of State Taxation Administration.Pursuant to the second batch of High and New Technology Enterprise (HNTE) filing list for 2024 issued by
Dalian Municipal Government on December 24 2024 (Certificate No.: GR202421200987) FAW Jiefang
Dalian Diesel Engine Co. Ltd. a subsidiary of the Company has been recognized as a High and New
Technology Enterprise with a validity period of three years during which it is subject to corporate income tax at
a preferential rate of 15%.
(2) VAT
FAW Jiefang Automotive Co. Ltd. and FAW Jiefang Dalian Diesel Engine Co. Ltd. satisfy the conditions for
advanced manufacturing enterprises and are allowed to add 5% of the current deductible input tax to offset the
amount of VAT payable from January 1 2023 according to the Document No.43 issued by the Ministry of
229Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Finance and the State Taxation Administration in 2023 Announcement on VAT Additional Tax Credit Policy
for Advanced Manufacturing Enterprises.VII.Notes to Items in Consolidated Financial Statements
1.Monetary Capital
Unit: CNY
Item Closing Balance Opening Balance
Cash on hand 1828617.96 300158.23
Bank deposit 10852193765.21 10959276854.87
Other monetary capital 22207584.57 22157571.16
Deposit in finance companies 11449039042.31 8871226437.40
Total 22325269010.05 19852961021.66
Including: total amount deposited
593126699.86442153591.03
abroad
Other description:
2. Notes Receivable
(1) Classified presentation of notes receivable
Unit: CNY
Item Closing Balance Opening Balance
Commercial acceptance notes 584654660.00 2641582.80
Total 584654660.00 2641582.80
230Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
(2) Disclosure by the method of provision for bad debts
Unit: CNY
Closing Balance Opening Balance
Provision for Bad Provision for Bad
Book Balance Book Balance
Debts Debts
Category Provisi Book Value Provisi Book Value
on on
Amount Scale Amount Amount Scale Amount
Proport Proport
ion ion
Including:
Notes
receivable with
provision for 585340000.00 100.00% 685340.00 0.12% 584654660.00 2649000.00 100.00% 7417.20 0.28% 2641582.80
bad debts by
portfolio
Including:
Commercial
585340000.00100.00%685340.000.12%584654660.002649000.00100.00%7417.200.28%2641582.80
acceptance bill
Total 585340000.00 100.00% 685340.00 0.12% 584654660.00 2649000.00 100.00% 7417.20 0.28% 2641582.80
Provision for bad debts by portfolio: commercial acceptance bill
Unit: CNY
Closing Balance
Name
Book Balance Provision for Bad Debts Provision Proportion
Within 1 year 585340000.00 685340.00 0.12%
Total 585340000.00 685340.00
Description of the basis for determining this portfolio:
231Full Text of Annual Report 2025 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
(3) Provision for bad debts provided recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: CNY
Change in the Current Period
Opening Closing
Category
Balance Recovery orProvision Write-off Others Balance
Reversal
Commercial
7417.20677922.80685340.00
acceptance bill
Total 7417.20 677922.80 685340.00
Important provision for bad debts recovered or reversed in the current period:
□Applicable□Not applicable
3. Accounts Receivable
(1) Disclosure by aging
Unit: CNY
Aging Closing Book Balance Opening Book Balance
Within 1 year (including 1 year) 3300727255.73 6872611350.77
1-2 years 1980252488.65 157505139.84
2-3 years 52721529.62 75249438.78
Over 3 years 260578970.27 217725478.29
3-4 years 56330191.95 23161532.86
4-5 years 24104043.53 38071959.47
Over 5 years 180144734.79 156491985.96
Total 5594280244.27 7323091407.68
232Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
(2) Disclosure by the method of provision for bad debts
Unit: CNY
Closing Balance Opening Balance
Book Balance Provision for Bad Debts Book Balance Provision for Bad Debts
Catego Provisio Provisio
ry Book Value Book Value
Amount Scale Amount n nProporti Amount Scale Amount Proporti
on on
Accou
nts
receiva
ble
with
provisi
on for 233830588.76 4.18% 212773844.79 90.99% 21056743.97 178969510.25 2.44% 156416729.05 87.40% 22552781.20
bad
debts
on an
individ
ual
basis
Includi
ng:
Accou
nts
receiva
ble
with
provisi
on for 5360449655.51 95.82% 106376029.03 1.98% 5254073626.48 7144121897.43 97.56% 99378536.09 1.39% 7044743361.34
bad
debts
by
portfoli
o
233Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Includi
ng:
Aging
portfoli 5360449655.51 95.82% 106376029.03 1.98% 5254073626.48 7144121897.43 97.56% 99378536.09 1.39% 7044743361.34
o
Total 5594280244.27 100.00% 319149873.82 5.70% 5275130370.45 7323091407.68 100.00% 255795265.14 3.49% 7067296142.54
234Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Provision for bad debts on an individual basis
Unit: CNY
Opening Balance Closing Balance
Name ReasonsProvision for Provision for Provision
Book Balance Book Balance for
Bad Debts Bad Debts Proportion
Provision
It is
highly
probable
Customer that the
37612001.7037612001.7043842501.7043842501.70100.00%
1 amounts
will not
be
recovered
It is
highly
FAW-
probable
HONGTA
that the
Yunnan 43170001.84 43170001.84 100.00%
amounts
Automobil
will not
e Co. Ltd.be
recovered
It is
highly
probable
Customer that the
11948079.3011948079.3011682802.8111682802.81100.00%
2 amounts
will not
be
recovered
It is
highly
probable
Customer that the
11226311.1911226311.1910977059.7110977059.71100.00%
3 amounts
will not
be
recovered
It is
highly
probable
Customer that the
10820948.893246284.6710567768.473170330.5430.00%
4 amounts
will not
be
recovered
Customer It is
10066741.313052841.319843235.142829335.1328.74%
5 highly
235Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
probable
that the
amounts
will not
be
recovered
It is
highly
Aggregati probable
on of that the
97295427.8689331210.88103747219.0997101813.0693.60%
Other amounts
Entities will not
be
recovered
Total 178969510.25 156416729.05 233830588.76 212773844.79
Bad debt provision made as per portfolio:
Unit: CNY
Closing Balance
Name
Book Balance Provision for Bad Debts Provision Proportion
Within 1 year 3300517217.31 13562803.30 0.41%
1-2 years 1947837139.61 31805548.72 1.63%
2-3 years 42231592.71 5075095.00 12.02%
3-4 years 21152632.66 7221508.79 34.14%
4-5 years 1895877.11 1895877.11 100.00%
Over 5 years 46815196.11 46815196.11 100.00%
Total 5360449655.51 106376029.03
Description of the basis for determining this portfolio:
If the provision for bad debts of accounts receivable is withdrawn based on the general model of expected credit
losses:
□Applicable□Not applicable
(3) Provision for bad debts provided recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: CNY
Change in the Current Period
Category Opening Balance Recovery or Closing Balance
Provision Write-off Others
Reversal
Provisio
n
assessed
156416729.0556219279.092272859.282410695.93212773844.79
on an
individu
al basis
Provisio
99378536.09-18548009.637603672.3533149174.92106376029.03
n
236Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
assessed
on a
collectiv
e basis
by
portfolio
of credit
risk
character
istics
Total 255795265.14 37671269.46 2272859.28 7603672.35 35559870.85 319149873.82
(4) Accounts Receivable Actually Written off in Current Period
Unit: CNY
Item Amount Written off
Accounts receivable actually written off 7603672.35
(5) Other accounts receivable and contractual assets from the top five borrowers classified based on the
ending balance
Unit: CNY
Closing Balance
Proportion in of Bad Debt
Total Closing Provision for
Closing Closing Balance of
Closing Balance of Balance of Accounts
Balance of Accounts
Name of Unit Accounts Accounts Receivable and
Contractual Receivable and
Receivable Receivable and Impairment
Assets Contractual Assets
Contractual Provision for
Assets Contractual
Assets
China FAW Group
Import & Export 2234511326.78 2234511326.78 39.44% 10305219.33
Co. Ltd.Customer 1 141293345.19 141293345.19 2.49% 141239.35
China FAW Group
129510000.00129510000.002.29%323775.00
Co. Ltd.Customer 2 110984600.00 110984600.00 1.96% 110984.60
Customer 3 90651775.53 90651775.53 1.60% 90651.78
Total 2706951047.50 2706951047.50 47.78% 10971870.06
4. Contract Assets
(1) Contractual assets
Unit: CNY
Item Closing Balance Opening Balance
237Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Provision Provision
Book Balance for Bad Book Value Book Balance for Bad Book Value
Debts Debts
Contract
71442590.62500889.7670941700.8615055893.05600351.0014455542.05
assets
Total 71442590.62 500889.76 70941700.86 15055893.05 600351.00 14455542.05
238Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
(2) Disclosure by the method of provision for bad debts
Unit: CNY
Closing Balance Opening Balance
Book Balance Provision for Bad Debts Book Balance Provision for BadDebts
Category Provisi Book Value Provisi Book Value
Amount Scale Amount on Amount Scale Amount onProport Propor
ion tion
Including:
Provision for
bad debts
made by 71442590.62 100.00% 500889.76 0.70% 70941700.86 15055893.05 100.00% 600351.00 3.99% 14455542.05
portfolio
Including:
Aging
portfolio 71442590.62 100.00% 500889.76 0.70% 70941700.86 15055893.05 100.00% 600351.00 3.99% 14455542.05
Total 71442590.62 100.00% 500889.76 0.70% 70941700.86 15055893.05 100.00% 600351.00 3.99% 14455542.05
Provision for bad debts by portfolio: aging portfolio
Unit: CNY
Closing Balance
Name
Book Balance Provision for Bad Debts Provision Proportion
Aging portfolio 71442590.62 500889.76 0.70%
Total 71442590.62 500889.76
Description of the basis for determining this portfolio:
239Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Provision for bad debts based on the general model of expected credit losses
□Applicable□Not applicable
(3) Provision for bad debts provided recovered or reversed in the current period
Unit: CNY
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 -99461.24
collection
contract assets
Total -99461.24 ——
5. Receivables Financing
(1) Presentation of receivables financing by category
Unit: CNY
Item Closing Balance Opening Balance
Notes receivable 6556062093.60 10019816248.98
Total 6556062093.60 10019816248.98
(2) Financing of receivables endorsed or discounted by the Company at the end of the period and not yet
due on the balance sheet date
Unit: CNY
Derecognized Amount at the End Amount Not Derecognized at the
Item
of the Period End of the Period
Bank acceptance bill 4467366839.63
Total 4467366839.63
6. Other Receivables
Unit: CNY
Item Closing Balance Opening Balance
Dividends receivable 157707661.77
Other receivables 1391631269.91 1182925650.71
Total 1391631269.91 1340633312.48
(1) Dividends receivable
1) Classification of dividends receivable
Unit: CNY
240Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Item (or Investee) Closing Balance Opening Balance
First Automobile Finance Co. Ltd. 156960226.90
FAW Jiefang Fujie (Tianjin)
747434.87
Technology Industry Co. Ltd.Total 157707661.77
(2) Other receivables
1) Classification of other receivables by nature
Unit: CNY
Nature Closing Book Balance Opening Book Balance
Current account 824659856.88 916206955.43
Claim payment 334971419.71 262619355.01
Margin deposit 32890443.24 30382472.86
Reserve fund 1522107.26 9876260.52
Export tax rebate 292305791.19
Others 5782820.39
Total 1492132438.67 1219085043.82
2) Disclosure by aging
Unit: CNY
Aging Closing Book Balance Opening Book Balance
Within 1 year (including 1 year) 891664767.81 348766762.84
1-2 years 55307717.81 164029838.32
2-3 years 96389137.89 688094494.92
Over 3 years 448770815.16 18193947.74
3-4 years 433989633.00 726113.75
4-5 years 462406.26 3701471.89
Over 5 years 14318775.90 13766362.10
Total 1492132438.67 1219085043.82
241Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
3) Disclosure by the method of provision for bad debts
□Applicable □Not applicable
Unit: CNY
Closing Balance Opening Balance
Categ Book Balance Provision for Bad Debts Book Balance Provision for Bad Debts
ory Book Value Book Value
Amount Scale Amount Provision ProvisionProportion Amount Scale Amount Proportion
Provi
sion
for
bad
debts
made 54673642.70 3.66% 54673642.70 100.00% 2097739.41 0.17% 2097739.41 100.00%
by
indiv
idual
item
Inclu
ding:
Provi
sion
for
bad
debts 1437458795.97 96.34% 45827526.06 3.19% 1391631269.91 1216987304.41 99.83% 34061653.70 2.80% 1182925650.71
made
by
portf
olio
Inclu
ding:
Agin
g
portf 1403594845.47 94.07% 45827526.06 3.27% 1357767319.41 1176728571.03 96.53% 34061653.70 2.89% 1142666917.33
olio
Portf 33863950.50 2.27% 33863950.50 40258733.38 3.30% 40258733.38
242Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
olio
of
guara
ntees
depos
its
and
petty
cash
reser
ves
Total 1492132438.67 100.00% 100501168.76 6.74% 1391631269.91 1219085043.82 100.00% 36159393.11 2.97% 1182925650.71
243Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Provision for bad debts on an individual basis
Unit: CNY
Opening Balance Closing Balance
Name Provision for Provision for Provision Reasons for
Book Balance Book Balance
Bad Debts Bad Debts Proportion Provision
It is highly
Beijing
probable
Guoneng
that the
Battery 53118196.29 53118196.29 100.00%
amounts
Technology
will not be
Co. Ltd.recovered
It is highly
probable
Other
that the
Organizatio 2097739.41 2097739.41 1555446.41 1555446.41 100.00%
amounts
ns
will not be
recovered
Total 2097739.41 2097739.41 54673642.70 54673642.70
Bad debt provision made as per portfolio:
Unit: CNY
Closing Balance
Name
Book Balance Provision for Bad Debts Provision Proportion
Within 1 year 838546571.52 6189551.84 0.74%
1-2 years 55307717.81 2369631.87 4.28%
2-3 years 96389137.89 7190692.48 7.46%
3-4 years 433989633.00 17626014.12 4.06%
4-5 years 462406.26 459006.26 99.26%
Over 5 years 12763329.49 11992629.49 93.96%
Total 1437458795.97 45827526.06
Description of the basis for determining the portfolio classification
Provision for bad debts based on the general model of expected credit losses:
Unit: CNY
Stage I Stage II Stage III
Expected Credit Expected Credit Loss in Expected CreditProvision for Bad Debts
Losses for the the Duration (Credit Loss for the Entire
Total
Next 12 Months Impairment Has Not Duration (WithOccurred) Credit Impairment)
Balance as of January
0120252970998.6231090655.082097739.4136159393.11
Balance on January 1
2025 in the current
period
-- Transfer to stage II -413307.88 413307.88
Provision in the current
period 3632461.10 8134011.26 53118196.29 64884668.65
Write-off in the current 600.00 542293.00 542893.00
244Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
period
Balance as of December
3120256189551.8439637974.2254673642.70100501168.76
Basis for stage division and proportion of bad debt provision: For Stage 1 and Stage 2 bad debt provisions are
made based on aging analysis at a rate of 0.74% for Stage 1 and 6.62% for Stage 2. For accounts classified
under Stage 3 the Company measures the loss allowance at an amount equal to the lifetime expected credit
losses of such accounts receivable.Significant book balance changes occurred in the provision for losses in the current period
□Applicable□Not applicable
4) Provision recovery or reversal of bad debts in the current period
Provision for bad debts in the current period:
Unit: CNY
Change in the Current Period
Category OpeningBalance Closing BalanceProvision Recovery or Charge-off OtherReversal or Write-off s
Provision for bad
debts made by 2097739.41 53118196.29 542293.00 54673642.70
individual item
Loss allowance
assessed on a
collective basis by 34061653.70 11766472.36 600.00 45827526.06
portfolio of credit
risk characteristics
Total 36159393.11 64884668.65 542893.00 100501168.76
5) Other receivables written off in the current period
Unit: CNY
Item Amount Written off
Other receivables written off during the period 542893.00
6) Top five ending balances of other receivables classified by debtors
Unit: CNY
Proportion In
Name of Unit Nature of
Total Closing Closing Balance
Payment Closing Balance Aging Balance of of Provision forOther Bad Debts
Receivables
Customer 1 Funds for land
purchase and 410862800.00 3-4 years 27.54% 17626014.12
reserve
Customer 2 Export tax Within 1
243166382.2216.30%802449.06
refund year
245Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
receivable
Customer 3 Receivables
Within 1
from disposal 129042064.00 8.65% 1445271.12
year
of assets
Customer 4 New energy Within 1
62417699.124.18%699078.23
subsidy year
Customer 5 Current Within 1
53118196.293.56%53118196.29
account year
Total 898607141.63 60.23% 73691008.82
7. Advance Payment
(1) Presentation of advance payment by aging
Unit: CNY
Closing Balance Opening Balance
Aging
Amount Scale Amount Scale
Within 1 year 117553190.64 84.52% 118197236.62 91.88%
1-2 years 14008226.93 10.07% 1609861.97 1.25%
2-3 years 196210.66 0.14% 8541250.38 6.64%
Over 3 years 7325289.70 5.27% 290810.50 0.23%
Total 139082917.93 128639159.47
Reasons for delay in settlement of advance payment with important amounts and aging over 1 year:
(2) Top five ending balances of advance payments classified by advance payment objects
The aggregate closing balance of the top five prepayments grouped by prepayment counterparty amounted to
CNY 51346793.33 representing 36.91% of the total closing balance of prepayments.Other description:
8. Inventories
Does the Company need to comply with the disclosure requirements of the real estate industry: No
(1) Classification of inventories
Unit: CNY
Closing Balance Opening Balance
Impairment Impairment
Provision of Provision of
Item
Balance Inventories or Inventories orBook Book Value Book Balance Book Value
Contract Contract
Performance Performance
Costs Costs
Raw
materi 107089403.09 694789.05 106394614.04 314311378.76 38992671.09 275318707.67
al
246Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Goods
in
437687716.134124290.30433563425.83445006311.2611526023.10433480288.16
proces
s
Goods
in 10584120202.88 196982278.91 10387137923.97 7452128355.61 253655992.67 7198472362.94
stock
Revol
ving
265751386.8244429158.03221322228.7977088960.572406972.1474681988.43
materi
al
Outso
urced
semi-
finishe 2335686262.76 68691006.13 2266995256.63 2270730746.00 135470983.23 2135259762.77
d
produ
cts
Total 13730334971.68 314921522.42 13415413449.26 10559265752.20 442052642.23 10117213109.97
(2) Impairment provision of inventories and contract performance costs
Unit: CNY
Increase in the Current Period Decrease in the Current Period
Item Opening Balance Closing Balance
Provision Others Reverse orCharge-off Others
Raw
material 38992671.09 717565.45 1850934.32 4069802.48 36796579.33 694789.05
Goods in
process 11526023.10 25290864.72 31908263.31 784334.21 4124290.30
Goods in
stock 253655992.67 234616382.58 2150370.55 273326828.51 20113638.38 196982278.91
Revolvin
g 2406972.14 9817331.10 40195541.42 2877264.46 5113422.17 44429158.03
material
Outsourc
ed semi-
finished 135470983.23 23578594.20 21471229.10 111082989.46 746810.94 68691006.13
products
Total 442052642.23 294020738.05 65668075.39 423265148.22 63554785.03 314921522.42
9. Long-Term Receivables Due Within 1 Year
Unit: CNY
Item Closing Balance Opening Balance
Long-term receivables due within
355532986.69377668442.06
one year
Total 355532986.69 377668442.06
247Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
10. Other Current Assets
Unit: CNY
Item Closing Balance Opening Balance
Input VAT to be credited 661738191.96 802923987.38
Prepaid taxes 9159294.16
Input VAT to be certified 482448569.27 610578724.24
Others 3794639.52 135462.60
Total 1157140694.91 1413638174.22
Other description:
248Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
11. Investment in Other Equity Instruments
Unit: CNY
Reason for
Gains Cumulative Being
Included in Gains Are Cumulative Losses Dividend Designated as
Other Losses Included in Included in Are Included in Income Being
Project Name Closing Balance Opening Balance Comprehen
Other Other Other Measured at
sive Comprehensive Comprehens Comprehensive
Recognized Fair Value and
Incomes in Incomes in the ive Incomes Incomes at the End
in the Changes
the Current Current Period at the End of of the Current
Current Included in
Period the Current Period
Period Other
Period Comprehensive
Incomes
Investments
designated for
REFIRE 210703161.60 540066528.00 329363366.40 270076838.40 long-termholding for
strategic
purposes
Total 210703161.60 540066528.00 329363366.40 270076838.40
Other description:
12. Long-term Receivables
(1) Long-term receivables
Unit: CNY
Closing Balance Opening Balance
Discount
Item Provision for Bad Provision for Bad
Book Balance Book Value Book Balance Book Value Rate Range
Debts Debts
Sales of goods by
448333877.3847823273.37400510604.01542060036.9853480359.31488579677.67
installment
Long-term receivables -403237832.06 -47704845.37 -355532986.69 -430595782.49 -52927340.43 -377668442.06
249Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
due within one year
Total 45096045.32 118428.00 44977617.32 111464254.49 553018.88 110911235.61
(2) Disclosure by the method of provision for bad debts
Unit: CNY
Closing Balance Opening Balance
Book Balance Provision for Bad Debts Book Balance Provision for Bad Debts
Category Provisio
n Book Value Provision Book ValueAmount Scale Amount Proporti Amount Scale Amount Proportio
on n
Including:
Provision
for bad
debts 448333877.38 100.00% 47823273.37 10.67% 400510604.01 542060036.98 100.00% 53480359.31 9.87% 488579677.67
made by
portfolio
Including:
Aging
portfolio 448333877.38 100.00% 47823273.37 10.67% 400510604.01 542060036.98 100.00% 53480359.31 9.87% 488579677.67
Total 448333877.38 100.00% 47823273.37 10.67% 400510604.01 542060036.98 100.00% 53480359.31 9.87% 488579677.67
Provision for bad debts by portfolio: aging portfolio
Unit: CNY
Closing Balance
Name
Book Balance Provision for Bad Debts Provision Proportion
Long-term receivables 448333877.38 47823273.37 10.67%
Total 448333877.38 47823273.37
Description of the basis for determining this portfolio:
250Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
13. Long-Term Equity Investments
Unit: CNY
Openi Increase/Decrease in the Current Period Closin
ng g
Balan Investment GainsReduc Adjustment to Cash Dividends Impair Balan
Opening Balance ce of or LossesAdditional ed Other Changes in and Profits Are ment Closing Balance ce ofInvestee
(Book Value) Impair Recognized under OthersInvestment Invest Comprehensiv Other Equity Declared to Be Provis (Book Value) Impair
ment the Equityment e Income Paid ion ment
Provis Method Provis
ion ion
I. Joint ventures
Jiefang
Times
New
Energy 40983228.82 191000000.00 4754785.30 331582.58 -2372061.61 234697535.09
Technol
ogy Co.Ltd.Subtotal 40983228.82 191000000.00 4754785.30 331582.58 -2372061.61 234697535.09
II. Associated enterprises
Changc
hun
Automo
tive Test 735066941.17 22097037.33 -817976.65 33768915.54 722577086.31
Center
Co.Ltd.Sanguar
d
Automo
bile 184102155.37 461994.70 6969353.89 191533503.96
Insuranc
e Co.Ltd.FAW
87914511.501508935.87-88022.931240000.0088095424.44
Changc
251Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
hun
Ansteel
Jiefang
Steel
Processi
ng and
Distribu
tion Co.Ltd.FAW
Changc
hun
Baoyou
Jiefang
Steel 43865938.84 5388497.15 6902383.03 42352052.96
Processi
ng and
Distribu
tion Co.Ltd.FAW
Jiefang
Fujie
(Tianjin)
Technol 37096903.44 1228110.06 -3202.96 1000000.00 386153.10 37707963.64
ogy
Industry
Co.Ltd.Foshan
Diyiyua
nsu New
Energy 28484079.98 -4481215.23 24002864.75
Technol
ogy Co.Ltd.Changc
hun 14733920.76 -2674990.68 12058930.08
Wabco
252Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Automo
tive
Control
System
Co.Ltd.Diyi
AESC
New
Energy
Power
4040781.2112250000.00-16290781.21
Technol
ogy
(Wuxi)
Co.Ltd.Suzhou
Zhito
Technol
ogy Co.Ltd.SmartLi
nk
Subtotal 1135305232.27 12250000.00 7237587.99 6966150.93 -905999.58 42911298.57 386153.10 1118327826.14
Total 1176288461.09 203250000.00 11992373.29 6966150.93 -574417.00 42911298.57 -1985908.51 1353025361.23
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
253Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
14. Investment Properties
(1) Investment properties measured at cost
□Applicable □Not applicable
Unit: CNY
Project
Houses and under
Item Land Use Right Total
Buildings Constructi
on
I. Original book value
1.Opening balance 108628147.40 7498763.44 116126910.84
2. Increase in the current
133356.96133356.96
period
(1) Purchase
(2) Transfer from
inventories/fixed assets/construction 133356.96 133356.96
in progress
(3) Increase due to
business combination
3.Decrease in the current
6242345.446242345.44
period
(1) Disposal 6242345.44 6242345.44
(2) Other transfer-out
4. Closing balance 102519158.92 7498763.44 110017922.36
II. Accumulated depreciation and
accumulated amortization
1.Opening balance 61732028.88 1558905.65 63290934.53
2. Increase in the current
5059872.58152577.605212450.18
period
(1) Provision or
5059872.58152577.605212450.18
amortization
3.Decrease in the current
3197687.473197687.47
period
(1) Disposal 3197687.47 3197687.47
(2) Other transfer-out
4. Closing balance 63594213.99 1711483.25 65305697.24
III. Impairment provision
1.Opening balance
2. Increase in the current
period
254Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
(1) Provision
3.Decrease in the current
period
(1) Disposal
(2) Other transfer-out
4. Closing balance
IV. Book value
1. Closing book value 38924944.93 5787280.19 44712225.12
2. Opening book value 46896118.52 5939857.79 52835976.31
The recoverable amount is the net amount of the fair value after deducting the disposal expenses
□Applicable□Not applicable
The recoverable amount is the present value of the expected future cash flow
□Applicable□Not applicable
(2) Investment properties measured at fair value
□Applicable□Not applicable
15. Fixed Assets
Unit: CNY
Item Closing Balance Opening Balance
Fixed assets 10988508730.09 11192711830.63
Disposal of fixed assets 4578248.33 5588741.57
Total 10993086978.42 11198300572.20
255Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
(1) Details of fixed assets
Unit: CNY
Item Houses and Machinery Transportation Electronic OfficeBuildings Equipment Equipment Equipment Equipment Others Total
I. Original book value
1.Opening balance 6345629801.82 18907276323.97 190421010.75 751797169.08 66794647.34 1402060800.25 27663979753.21
2. Increase in the current
period 694967071.99 955131219.01 17328388.82 70661295.62 19941261.56 107986239.78 1866015476.78
(1) Purchase 399750826.81 17334744.50 58815233.85 19846695.72 107637217.35 603384718.23
(2) Transfer from
construction in progress 687558109.47 549176027.70 11582166.88 349396.56 1248665700.61
(3) Increase due to business
combination
(4) Others 7408962.52 6204364.50 -6355.68 263894.89 94565.84 -374.13 13965057.94
3.Decrease in the current
period 49069755.16 982438369.63 28088145.69 20376915.71 5905682.00 31561326.79 1117440194.98
(1) Disposal or retirement 49069755.16 981396887.52 28088145.69 20376915.71 5905682.00 31561326.79 1116398712.87
(2) Transferred to investment
properties 133356.96 133356.96
(3) Others 908125.15 908125.15
4. Closing balance 6991527118.65 18879969173.35 179661253.88 802081548.99 80830226.90 1478485713.24 28412555035.01
II. Accumulated depreciation
1.Opening balance 2647820937.69 11765076408.49 142301805.63 651297497.99 47989583.56 1193334887.79 16447821121.15
2. Increase in the current
period 331380783.38 1214954481.28 23117509.36 89504673.05 6632155.59 77002981.26 1742592583.92
(1) Provision 329866202.67 1211205445.32 22947061.05 88937688.43 6449177.43 77004099.25 1736409674.15
(2) Others 1514580.71 3749035.96 170448.31 566984.62 182978.16 -1117.99 6182909.77
3.Decrease in the current
period 34668094.69 662038464.43 23728680.81 28389867.62 4248873.42 30224168.45 783298149.42
(1) Disposal or retirement 34668094.69 661617403.62 23728680.81 28389867.62 4248873.42 30224168.45 782877088.61
(2) Others 421060.81 421060.81
256Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
4. Closing balance 2944533626.38 12317992425.34 141690634.18 712412303.42 50372865.73 1240113700.60 17407115555.65
III. Impairment provision
1.Opening balance 12344.37 20451354.58 42350.40 2940752.08 23446801.43
2. Increase in the current
period
(1) Provision
3.Decrease in the current
period 12344.37 5658638.41 42142.85 802926.53 6516052.16
(1) Disposal or retirement 12344.37 5658638.41 42142.85 802926.53 6516052.16
4. Closing balance 14792716.17 207.55 2137825.55 16930749.27
IV. Book value
1. Closing book value 4046993492.27 6547184031.84 37970619.70 89669245.57 30457153.62 236234187.09 10988508730.09
2. Opening book value 3697796519.76 7121748560.90 48119205.12 100499671.09 18762713.38 205785160.38 11192711830.63
257Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
(2) Fixed assets without property ownership certificates
Unit: CNY
Reasons for Failure to Obtain the
Item Book Value
Certificate
Property ownership certificate to
be processed after the government
Guanghan base project 238248670.02
issues the completion acceptance
and filing procedures
Project of exiting the city and The new factory is in the process
35862009.64
entering the industrial park of being handled.The property ownership certificate
Equipment workshop works 358128902.27
has not yet been applied for
Other description:
(3) Impairment testing of fixed assets
□Applicable□Not applicable
(4) Disposal of fixed assets
Unit: CNY
Item Closing Balance Opening Balance
Houses and buildings 44184.97
Machinery equipment 4089685.63 3066994.74
Means of transport 70688.57 357163.02
Electronic equipment 12750.00 23158.49
Office equipment 86291.45 1004714.07
Others 318832.68 1092526.28
Total 4578248.33 5588741.57
Other description:
16. Construction in Progress
Unit: CNY
Item Closing Balance Opening Balance
Project under construction 131371243.36 688181815.22
Total 131371243.36 688181815.22
(1) Construction in Progress
Unit: CNY
Closing Balance Opening Balance
Item Impai
Book Balance rment Book Value Book Balance
Impairment
Provision Book Value
Provi
258Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
sion
New and
reconstruc
ted 167885.85 167885.85 30573415.10 1945416.12 28627998.98
investmen
t project
Technical
transforma
tion 131203357.51 131203357.51 659609313.43 55497.19 659553816.24
investmen
t project
Total 131371243.36 131371243.36 690182728.53 2000913.31 688181815.22
259Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
(2) Changes in important construction in progress in the current period
Unit: CNY
Cum Includi Capit
Other Proportion ulativ
ng:
of e Capital
alizat
Decr ized ion
Amount eases Accumula Amo Interest Rate
Project ted unt of
Capit
Name Budget Opening Balance
Increase in the Transferred to in the Project Amoun al
Current Period Fixed Assets in the Curre Closing Balance Investment in Progress
of
Capit t
Intere
st in SourcCurrent Period nt during e
Perio Constructi alize the Curre
d ons to d ntBudget Intere Curren Perio
st tPeriod d
Constructi
on of an
integrated Self-
business 95500000.00 17719690.62 40316634.82 58036325.44 60.77% 60.77% funde
and d
finance
platform
Medium
and
heavy-
duty Self-
engine 667780000.00 56974238.16 15567560.60 41406677.56 12.93% 19.44% funde
upgrade d
and
renovation
project
Heavy-
duty MT Proce
gearbox eds +
assembly 83480000.00 14051898.37 43378010.19 47321528.91 10108379.65 57.00% 57.00% self-
production raised
preparatio funds
n project
260Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Business
integration
and
technolog
y
upgrading Proce
project of eds +
light 227508500.00 8751554.22 11902858.26 11902858.26 8751554.22 92.00% 100.00% self-
vehicle raised
frame of funds
Qingdao
Vehicle
Division
of Jiefang
Limited
Environm
ental
protection
technolog
y upgrade
Proce
project of
eds +
cab
79800000.00 7060643.17 36318078.65 36318078.65 7060643.17 46.00% 100.00% self-
coating
raised
line of
funds
Qingdao
Vehicle
Division
of Jiefang
Limited
FAW Proce
423550000.00126583954.80237488519.50364072474.3087.65%100.00%
Jiefang eds +
261Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Wuxi self-
R&D raised
Base funds
Constructi
on Project
(23V8501
)
Engine
constructi
on and
natural
gas test Self-
capacity 1227430000.00 6555229.67 6555229.67 79.58% 100.00% funde
improvem d
ent project
(16L)
(20V8503
)
6DM3
upgraded
engine
adaptabilit
Self-
y
57479980.00 4063791.49 38775270.77 42839062.26 84.96% 100.00% funde
transforma
d
tion
project
(23V8508
)
R&D Proce
capacity 691362100.00 413094135.26 129860314.44 542954449.70 89.45% 100.00% eds +
improvem self-
262Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
ent project raised
of FAW funds
Jiefang
Qingdao
Base
Project of
exiting the
city and Self-
entering 936068800.00 19204724.39 4517467.76 23722192.15 94.00% 100.00% funde
the d
industrial
park
FAW
Jiefang
Self-
south new
413800000.00 5243154.69 3617637.19 8860791.88 93.63% 99.00% funde
energy
d
base
project
Total 4903759380.00 615773547.01 609704259.41 1100114226.38 125363580.04
263Full Text of Annual Report 2025 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: CNY
Houses and Machinery
Item Land Total
Buildings Equipment
I. Original book
value
1.Opening balance 183128392.44 58312113.04 17802288.94 259242794.42
2. Increase in the
1386167.381386167.38
current period
(1) New lease 1378304.83 1378304.83
(2) Others 7862.55 7862.55
3.Decrease in the
63150685.284064325.43431485.9167646496.62
current period
(1) Lease expiration 62366936.78 3533351.98 431485.91 66331774.67
(2) Revaluation
705756.88530973.451236730.33
adjustment
(3) Others 77991.62 77991.62
4. Closing balance 121363874.54 54247787.61 17370803.03 192982465.18
II. Accumulated
depreciation
1.Opening balance 116760390.73 22624377.20 15497705.92 154882473.85
264Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
2. Increase in the
25421550.4910987838.661302252.7737711641.92
current period
(1) Provision 25421550.49 10987838.66 1302252.77 37711641.92
3.Decrease in the
58800495.961275932.70431485.9160507914.57
current period
(1) Disposal
(2) Lease expiration 58733684.29 1275932.70 431485.91 60441102.90
(3) Others 66811.67 66811.67
4. Closing balance 83381445.26 32336283.16 16368472.78 132086201.20
III. Impairment
provision
1.Opening balance
2. Increase in the
current period
(1) Provision
3.Decrease in the
current period
(1) Disposal
4. Closing balance
IV. Book value
1. Closing book
37982429.2821911504.451002330.2560896263.98
value
2. Opening book
66368001.7135687735.842304583.02104360320.57
value
(2) Impairment test of right-of-use assets
□Applicable□Not applicable
Other description:
20. Intangible Assets
(1) Details of intangible assets
Unit: CNY
Patent Non-patented
Item Land Use Right Software Total
Rights Technology
I. Original book
value
1.Opening
2613919878.90518350613.94633044419.573765314912.41
balance
2. Increase in the 1916351.08 158151362.07 30465179.47 190532892.62
current period
265Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
(1) Purchase 453245.00 28591040.04 29044285.04
(2) Internal R&D 158151362.07 158151362.07
(3) Increase due
to business
combination
(3) Others 1463106.08 1874139.43 3337245.51
3.Decrease in the
49093947.0512844495.4961938442.54
current period
(1) Disposal 48881314.36 12784764.95 61666079.31
(2) Others 212632.69 59730.54 272363.23
4. Closing
2566742282.93676501976.01650665103.553893909362.49
balance
II. Accumulated
amortization
1.Opening
662152276.59375747341.98390187329.451428086948.02
balance
2. Increase in the 57475093.07 48936000.55 101349667.72 207760761.34
current period
(1) Provision 56529666.40 48936000.55 101332552.36 206798219.31
(2) Others 945426.67 17115.36 962542.03
3.Decrease in the
15622500.9912721516.6628344017.65
current period
(1) Disposal 15475937.08 12714506.47 28190443.55
(2) Others 146563.91 7010.19 153574.10
4. Closing
704004868.67424683342.53478815480.511607503691.71
balance
III. Impairment
provision
1.Opening
126763.41126763.41
balance
2. Increase in the
current period
(1) Provision
3.Decrease in the
5616.105616.10
current period
(1) Disposal
(2) Others 5616.10 5616.10
4. Closing
121147.31121147.31
balance
IV. Book value
1. Closing book
1862616266.95251818633.48171849623.042286284523.47
value
266Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
2. Opening book
1951640838.90142603271.96242857090.122337101200.98
value
Intangible assets developed internally through the Company’s R&D activities accounted for 18.30% of the total
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. Long-term Deferred Expenses
Unit: CNY
Amortization
Opening Increase in the
Item Amount in the Other Decreases Closing Balance
Balance Current Period
Current Period
Start-up costs 74286.06 74286.06
Total 74286.06 74286.06
Other description:
22. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets not offset
Unit: CNY
Closing Balance Opening Balance
Item Deductible Deferred Income Deductible Temporary Deferred Income
Temporary
Tax Assets Difference Tax Assets
Difference
Impairment
provision of 775878032.77 158507658.22 797768103.97 148751169.98
assets
Unrealized
gains of internal 322451184.88 73647117.10 153881436.39 38470359.10
transactions
Deductible
13958566650.042347598363.3510589766314.641765089314.84
losses
Estimated
1031139209.41196723844.62697556880.11115586665.72
liabilities
Deferred
income –
518347372.61107910350.35512685762.47109012100.36
government
grants
Assets 54129.96 16238.99 653809.89 196142.97
267Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
depreciation
differences
Lease liabilities 7983859.73 1392527.67 58263018.99 13770069.13
Accrued
2290146273.70541067851.813227055244.11769751687.24
expenses
Employee
compensation 94922683.27 15029861.21 94430202.39 15390464.58
payable
Contract
558137107.2885969638.33553633245.4185386658.52
liabilities
Total 19557626503.65 3527863451.65 16685694018.37 3061404632.44
(2) Deferred income tax liabilities not offset
Unit: CNY
Closing Balance Opening Balance
Item Taxable Temporary Deferred Income Taxable Temporary Deferred Income
Difference Tax Liabilities Difference Tax Liabilities
Depreciation of
fixed assets with
amortization period 1417506057.59 272294678.03 1833126166.73 337124836.34
longer than tax
preference period
Right-of-use assets 60896263.98 15114028.65 43191229.17 10183212.28
Accrued interest
829617777.78135269333.34476710852.2276467601.95
income
Total 2308020099.35 422678040.02 2353028248.12 423775650.57
(3) Deferred tax assets or liabilities presented in net amount after offset
Unit: CNY
Opening Mutual
Closing Mutual Offset Closing Balance of Opening Balance of
Offset Amount of
Amount of Deferred Deferred Tax Assets Deferred Tax Assets
Item Deferred Tax
Tax Assets and or Liabilities after or Liabilities after
Assets and
Liabilities Offset Offset
Liabilities
Deferred Income
422083753.753105779697.903061404632.44
tax assets
Deferred income
422083753.75594286.27423775650.57
tax liabilities
(4) Details of unrecognized deferred tax assets
Unit: CNY
Item Closing Balance Opening Balance
Deductible temporary difference 490033723.19 572093879.05
268Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Deductible losses 89728296.79 225388600.72
Total 579762019.98 797482479.77
(5) Deductible losses of unrecognized deferred tax assets will be due in the following years
Unit: CNY
Year Closing Amount Opening Amount Remarks
20261117141.381441940.00
20273276878.633524136.57
20286680332.896764901.92
20297171414.0115796963.90
2030581497.39
203270901032.49197860658.33
Total 89728296.79 225388600.72
Other description:
23. Other current assets
Unit: CNY
Closing Balance Opening Balance
Impai Impai
Item rment rment
Book Balance Book Value Book Balance Book Value
Provi Provi
sion sion
Advance
payments
for 108920866.51 108920866.51 113186886.26 113186886.26
construction
projects
Advance
payments
for
135167223.18135167223.1865245589.3365245589.33
equipment
and
software
Fixed
deposits and
2118833333.342118833333.342465761111.132465761111.13
accrued
interest
Total 2362921423.03 2362921423.03 2644193586.72 2644193586.72
Other description:
269Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
24. Assets with Restricted Ownership or Use Right
Unit: CNY
Closing Opening
Item Restriction Restriction
Book Balance Book Value Restriction Book Balance Book Value Restriction
Type Type
Housing maintenance
Housing maintenance fund security deposits
Monetary Withdrawal Withdrawal
51247499.59 51247499.59 fund security deposit for 50810175.89 50810175.89 for three categories of
capital restricted restricted
three types of personnel personnel and frozen
funds
Due to the Tanzanian Due to the Tanzanian
government’s central government’s central
railway reconstruction railway reconstruction
project approximately project approximately
2000 square meters of 2000 square meters of
land belonging to the land belonging to the
Intangible Company’s Tanzanian Company’s Tanzanian
1846858.87 1072038.65 Others 2059491.56 1150344.99 Others
assets subsidiary was subsidiary was
expropriated in March expropriated in March
2017. To date no official 2017. To date no
documentation or official documentation
notification has been or notification has been
received from the received from the
Tanzanian authorities. Tanzanian authorities.Total 53094358.46 52319538.24 52869667.45 51960520.88
Other description:
270Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
25. Short-term Borrowings
(1) Classification of short-term borrowings
Unit: CNY
Item Closing Balance Opening Balance
Credit loans 50000000.00
Total 50000000.00
Notes to the classification of short-term borrowings:
26. Notes Payable
Unit: CNY
Category Closing Balance Opening Balance
Bank acceptance bill 12809740164.11 15370906363.16
Total 12809740164.11 15370906363.16
The total amount of notes payable due but unpaid at the end of the current period is CNY 0.00.
27. Accounts Payable
(1) Presentation of accounts payable
Unit: CNY
Item Closing Balance Opening Balance
Payment for goods 19831192964.14 16650985030.88
Expenses and others 1719132817.09 595368938.17
Total 21550325781.23 17246353969.05
(2) Significant accounts payable with aging over one year or overdue
Unit: CNY
Reasons for Not Being Repaid
Item Closing Balance
or Carried Over
China FAW Group Import & Export Co. Ltd. 63241767.29 Outstanding
Supplier 1 39358458.00 Contract not yet matured
Supplier 2 38868983.46 Outstanding
Supplier 3 28659999.04 Outstanding
Supplier 4 20946238.91 Contract not yet due
Total 191075446.70
Other description:
(3) Whether there are any overdue payments to small and medium-sized enterprises (SMEs)
Whether the Company qualifies as a large enterprise
□Yes□No
271Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
28. Other Payables
Unit: CNY
Item Closing Balance Opening Balance
Dividends payable 171500.02 171500.02
Other payables 2544364706.47 4526037421.21
Total 2544536206.49 4526208921.23
(1) Dividends payable
Unit: CNY
Item Closing Balance Opening Balance
Ordinary stock dividends 171500.02 171500.02
Total 171500.02 171500.02
Other description including the disclosure of the reasons for not paying the important dividends payable for
more than 1 year:
(2) Other payables
1) Presentation of other payables by payment nature
Unit: CNY
Item Closing Balance Opening Balance
Intercompany payables 250480926.86 429144255.09
Deposits and guarantees received 180304571.09 235940482.07
Expenses payable 1215617066.06 2665746970.54
Project funds payable 897745578.97 1188958861.78
Repurchase obligations of
216563.496246851.73
restricted shares
Total 2544364706.47 4526037421.21
2) Other significant payables with aging over 1 year or overdue
Unit: CNY
Reasons for Not Being Repaid or
Item Closing Balance
Carried Over
Supplier 1 16950000.00 Pending warranty acceptance
Supplier 2 14952289.90 Pending warranty acceptance
Supplier 3 Pending final acceptance and
10400000.00
warranty acceptance
Supplier 4 10085000.00 Pending warranty acceptance
Total 52387289.90
Other description:
272Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
29. Advance Receipts
(1) Presentation of advance receipts
Unit: CNY
Item Closing Balance Opening Balance
Rental fee 826097.22 674009.56
Total 826097.22 674009.56
30. Contract Liabilities
Unit: CNY
Item Closing Balance Opening Balance
Payment for goods 1914561508.84 2015193856.18
Others 755136468.47 633128232.65
Contract liabilities are included in
-66560308.63-217767924.33
other current liabilities
Total 2603137668.68 2430554164.50
Significant contractual liabilities with aging over 1 year
31. Employee Compensation Payable
(1) Presentation of employee compensation payable
Unit: CNY
Increase in the Decrease in the
Item Opening Balance Closing Balance
Current Period Current Period
I. Short-term
954241602.964510721834.284470440387.05994523050.19
compensation
II. Post-
employment
771551.66627418615.23625317338.822872828.07
benefits - defined
contribution plan
III. Dismissal
39431741.4457371654.1457623523.6839179871.90
welfare
IV. Other benefits
49110000.0042449093.7744409093.7747150000.00
due within one year
Total 1043554896.06 5237961197.42 5197790343.32 1083725750.16
(2) Presentation of short-term compensation
Unit: CNY
Increase in the Decrease in the
Item Opening Balance Closing Balance
Current Period Current Period
1. Wages bonuses 626337023.60 3146167491.65 3144489091.86 628015423.39
273Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
allowances and
subsidies
2. Employee
235631763.45235631763.45
welfare expenses
3. Social insurance
1236540.25339987837.61337273869.743950508.12
premiums
Including: medical
1236540.25319409287.20316723014.433922813.02
insurance premiums
Work-
related injury 20578550.41 20550855.31 27695.10
insurance premiums
4. Housing
482963776.54482751905.54211871.00
provident fund
5. Labor union
funds and employee 324735755.63 107949156.32 72271947.75 360412964.20
education funds
6. Other short-term
1932283.48198021808.71198021808.711932283.48
compensations
Total 954241602.96 4510721834.28 4470440387.05 994523050.19
(3) Presentation of defined contribution plan
Unit: CNY
Increase in the Decrease in the
Item Opening Balance Closing Balance
Current Period Current Period
1. Basic endowment
308714.56442434109.12440470853.072271970.61
insurance
2. Unemployment
462837.1019137487.9018999467.54600857.46
insurance premiums
3. Payment of
165847018.21165847018.21
enterprise annuity
Total 771551.66 627418615.23 625317338.82 2872828.07
Other description:
32. Taxes Payable
Unit: CNY
Item Closing Balance Opening Balance
VAT 35336077.77 34237788.67
Corporate income tax 78942359.45 136470856.41
Individual income tax 6889857.47 7020253.06
Urban maintenance and
3432985.443308379.91
construction tax
274Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Property tax 10465370.93 7843917.34
Land use tax 4719417.56 3902829.10
Education surcharges 5736405.00 4430820.03
Other taxes 21751387.60 18318058.50
Total 167273861.22 215532903.02
Other description:
33. Non-Current Liabilities Due Within One Year
Unit: CNY
Item Closing Balance Opening Balance
Lease liabilities due within one
6293750.2429941701.02
year
Estimated liabilities due within one
519599645.37
year
Total 525893395.61 29941701.02
Other description:
34. Other Current Liabilities
Unit: CNY
Item Closing Balance Opening Balance
Output VAT to be transferred 66560308.63 217767924.33
Total 66560308.63 217767924.33
Other description:
35. Long-term Debts
(1) Classification of long-term borrowings
Unit: CNY
Item Closing Balance Opening Balance
Credit loans 136000000.00
Total 136000000.00
Notes to the classification of long-term debts:
The Company’s indirect controlling shareholder China FAW Group Co. Ltd. provided state-owned capital
operation budget funds to the Company through entrusted loans and entered into an entrusted loan agreement in
the amount of CNY 136 million.Other notes including interest rate range:
36. Lease Liabilities
Unit: CNY
Item Closing Balance Opening Balance
275Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Lease payment 8138171.16 59490077.98
Unrecognized financing costs -154311.43 -2116776.32
Reclassified to non-current liabilities due
-6293750.24-29941701.02
within one year
Total 1690109.49 27431600.64
Other description:
37. Long-term Employee Compensation Payable
(1) Long-term employee compensation payable
Unit: CNY
Item Closing Balance Opening Balance
I. Post-employment welfare - net liabilities of
625080000.00682430000.00
defined benefit plan
II. Dismissal welfare 91732589.92 98901796.39
Long-term employee compensation payable due
-86329871.90-88541741.44
within one year
Total 630482718.02 692790054.95
38. Provisions
Unit: CNY
Item Closing Balance Opening Balance Reason
Pending litigation 52822772.39 23974831.93 Contract disputes
Product quality Expenses for return replacement
586381172.71951513050.80
assurance and repair
Social insurance for contract
Others 29476995.29 17226995.29 workers / Excess losses of
associates
Total 668680940.39 992714878.02
Other description including important assumptions and estimation descriptions related to important estimated
liabilities:
39. Deferred Income
Unit: CNY
Item Opening Balance Increase in the Decrease in theCurrent Period Current Period Closing Balance Reason
Governme
nt 2936362847.77 501101604.80 590619645.87 2846844806.70
subsidies
Total 2936362847.77 501101604.80 590619645.87 2846844806.70 --
Other description:
276Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
40. Share Capital
Unit: CNY
Increase/Decrease (+/-)
Share
Issue Bonu Transfe
Opening Balance of rred Closing Balance
New sShare from Others SubtotalShare Accum
s s ulation
Fund
Total
share 4922371176.00 -1090201.00 -1090201.00 4921280975.00
s
Other notes: During the reporting period the performance targets set for the third release period of the reserved
grants under the Company’s Phase I restricted share incentive plan were not achieved. The Company
repurchased and canceled the relevant restricted shares from the incentive recipients reducing share capital by
CNY 1090201.00.
41. Capital Reserves
Unit: CNY
Increase in the Decrease in the
Item Opening Balance Closing Balance
Current Period Current Period
Capital premium (stock
10961835016.884993120.5210956841896.36
premium)
Other capital reserves 999645030.86 574417.06 999070613.80
Total 11961480047.74 5567537.58 11955912510.16
Other description including increase/decrease in the current period and reasons for change:
Note 1: The decrease in capital reserve (share premium) of CNY 4993120.52 in the current period was mainly
attributable to the repurchase of restricted shares by the Company.Note 2: The decrease in other capital reserves in the current period was mainly attributable to a decrease of
CNY 574417.00 in other changes in equity of long-term equity investments accounted for under the equity
method and other decreases of CNY 0.06.
42. Treasury Shares
Unit: CNY
Increase in the Decrease in the
Item Opening Balance Closing Balance
Current Period Current Period
Treasury shares 6246851.73 6246851.73
Total 6246851.73 6246851.73
Other notes including changes and reasons for changes during the current period: The decrease of CNY
6246851.73 in treasury shares was attributable to the repurchase and cancellation by the Company.
277Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
43 Other Comprehensive Income
Unit: CNY
Amount Incurred in Current Period
Less:
Curre
nt
Less:
Profits
Current
or
Retaine
Losses
d
Transf
Earning Less
erred
s :
from After-tax
Amount Incurred Transfer Inco
Item Opening Balance Other After-tax Amount Amountbefore Income red from me Closing Balance
Comp Attributable to Attributable to
Tax in the Current Other Tax
rehens Parent Company Minority
Period Compre Exp
ive Shareholders
hensive ense
Incom
Income s
e
Recorde
Recor
d in the
ded in
Previous
the
Period
Previo
us
Period
I. Other
comprehens
ive incomes
that cannot
18899058.75-300094012.51-300094012.51-281194953.76
be
reclassified
into profits
or losses
Including:
changes
arising from
re-
-58350000.0022300000.0022300000.00-36050000.00
measuremen
t of the
defined
benefit plan
Other
comprehens
ive incomes
that cannot
be
reclassified 17962530.75 6969353.89 6969353.89 24931884.64
into profit
or loss
under the
equity
method
Change
s in fair 59286528.00 -329363366.40 -329363366.40 -270076838.40
value of
278Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
investment
in other
equity
instruments
II. Other
comprehens
ive incomes
that will be -115811405.46 24043724.43 9717634.59 14326089.84 -106093770.87
reclassified
into profits
or losses
Including:
other
comprehens
ive incomes
that can be
reclassified -5354172.83 -3202.96 -3202.96 -5357375.79
into profits
or losses
under the
equity
method
Transla
tion
difference in
foreign -110457232.63 24046927.39 9720837.55 14326089.84 -100736395.08
currency
financial
statements
Total other
comprehens -96912346.71 -276050288.08 -290376377.92 14326089.84 -387288724.63
ive incomes
Other description including the adjustment of the effective part of cash flow hedging profit or loss transferred
to the initially recognized amount of the hedged item:
44. Special Reserves
Unit: CNY
Increase in the Decrease in the
Item Opening Balance Closing Balance
Current Period Current Period
Work safety cost 277345883.15 34868716.60 68909884.86 243304714.89
Total 277345883.15 34868716.60 68909884.86 243304714.89
Other description including increase/decrease in the current period and reasons for change:
45. Surplus Reserve
Unit: CNY
Increase in the Decrease in the
Item Opening Balance Closing Balance
Current Period Current Period
Statutory surplus 2907021755.69 1054620.61 2908076376.30
279Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
reserve
Discretionary
297526491.71297526491.71
surplus reserves
Total 3204548247.40 1054620.61 3205602868.01
Description of surplus reserve including increase/decrease and reasons for change in the current period:
46. Undistributed Profits
Unit: CNY
Item Current Period Previous Period
Undistributed profits at the end of the previous
6055339906.816246533634.66
period before adjustment
Undistributed profits at the beginning of the current
6055339906.816246533634.66
period after adjustment
Add: net profit attributable to owners of parent
724545159.90622427699.65
company in the current period
Less: withdrawal of statutory surplus reserve 1054620.61 109035301.36
Common stock dividends payable 246064048.75 693579557.10
Others 11006569.04
Undistributed profits at the end of the period 6532766397.35 6055339906.81
Details of adjustment to undistributed profits at the beginning of the period:
1) The retroactive adjustment of the Accounting Standards for Business Enterprises and its relevant new
regulations impacts the opening undistributed profit by CNY 0.00.
2) The changes in accounting policies impact the opening undistributed profit by CNY 0.00.
3) The correction of major accounting errors impacts the opening undistributed profit by CNY 0.00.
4) The change in combination scope caused by the same control impacts the opening undistributed profit by
CNY 0.00.
5) Other adjustments affect the opening undistributed profit by CNY 0.00 in total.
47. Operating Revenue and Operating Cost
Unit: CNY
Amount Incurred in Current Period Amount Incurred in the Previous Period
Item
Income Cost Income Cost
Main business 62233813433.10 58029080171.90 56781606864.49 53523342363.25
Other business 444187605.94 232958447.19 1799499394.04 1384734160.18
Total 62678001039.04 58262038619.09 58581106258.53 54908076523.43
The lowest of the Company’s audited total profit net profit and net profit after deducting non-recurring profit
and loss for the reporting period was negative.□Yes□No
Other description
Information related to the transaction price allocated to remaining performance obligations:
280Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
As of the end of the reporting period the revenue corresponding to performance obligations under contracts
signed but not yet performed or partially performed amounted to CNY 342966284.64 which is expected to be
recognized as revenue in 2026.
48. Taxes and Surcharges
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Urban maintenance and
38226212.5124096553.91
construction tax
Education surcharges 25711128.01 15981804.33
Property tax 80468799.74 71614904.12
Land use tax 42636785.46 44935261.58
Vehicle and vessel use tax 147308.93 129183.90
Stamp duty 72873035.15 61581104.85
Environmental protection tax 863934.17 667407.02
Others 1936003.82 1401800.93
Total 262863207.79 220408020.64
Other description:
49 Administrative Expenses
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Employee compensation 959131088.47 1036574708.68
Depreciation cost 95557234.10 134953520.82
Repair and Maintenance Expenses 69154919.46 200223047.11
Amortization of intangible assets 65555982.75 92882626.65
Others 250745061.25 316018573.84
Total 1440144286.03 1780652477.10
Other description:
50. Sales Expenses
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Employee compensation 645769600.42 606050106.71
Packing cost 149257380.55 122479099.15
Travel expense 108382591.25 132924519.61
Sales service fee 49503312.36 85577730.20
Storage fee 88375644.41 120442414.18
Rental fee 67617693.24 56013886.40
281Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Others 225012745.69 149839839.67
Total 1333918967.92 1273327595.92
Other description:
51. R&D Expenses
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Employee compensation 1478487311.03 1484942094.42
Depreciation amortization expense 219147698.54 239634685.96
Test fee 211772142.82 279968389.34
Material cost 181655850.72 187891190.14
Others 192114256.59 217049281.90
Total 2283177259.70 2409485641.76
Other description:
52 Financial Expenses
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Interest expense 2035470.45 2594098.03
Interest income -564269093.28 -619382020.15
Exchange gain or loss 36946291.24 -81571963.58
Cash discount -91978357.45 -130500808.28
Net actuarial interest 12445523.28 17984781.72
Fees and other charges 1944063.46 4904245.62
Total -602876102.30 -805971666.64
Other description:
53. Other Income
Unit: CNY
Amount Incurred in the Previous
Sources of other income Amount Incurred in Current Period
Period
Government subsidies 590619645.87 618258791.46
Additional Input VAT Credit 350446039.65 509114356.63
Commission for withholding
2026313.122035928.98
individual income tax
Total 943091998.64 1129409077.07
54. Investment Income
Unit: CNY
Item Amount Incurred in Current Amount Incurred in the
282Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Period Previous Period
Income from long-term equity
investments accounted for using the 11992373.29 310581812.67
equity method
Investment income from disposal of
469265324.69
long-term equity investment
Investment income from disposal of
44920688.34
trading financial assets
Others -100077886.24 -150154510.85
Total -43164824.61 629692626.51
Other description:
55. Credit Impairment Loss
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Bad debt losses of notes receivable -677922.80 207820.97
Bad debt losses of accounts
-35398410.18-12108686.11
receivable
Bad debt losses of other
-64884668.6580572073.84
receivables
Bad debt losses of long-term
-25535304.55-14179402.72
receivables
Total -126496306.18 54491805.98
Other description:
56. Impairment Loss on Assets
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
I. Inventory falling price loss and
contract performance cost -294020738.05 -352663464.80
impairment loss
II. Impairment Loss of
-24385.92
Construction in Progress
III. Loss from contractual asset
99461.24-159644.74
impairment
Total -293945662.73 -352823109.54
Other description:
283Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
57. Income fromAssets Disposal
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Sources of Income from Assets Disposal
Period Previous Period
Gains from disposal of fixed assets (“-” for
98232649.30-2556989.65
loss)
Gains or losses from disposal of right-of-use
2879267.20
assets
Gains or losses from disposal of intangible
41831048.24
assets
Total 142942964.74 -2556989.65
58. Non-operating Income
Unit: CNY
Amount Included in
Amount Incurred in Amount Incurred in the
Item Current Non-recurring
Current Period Previous Period
Profits and Losses
Gains from damage and
retirement of non-current 495868.77 841253.88 495868.77
assets
Gains from write-off of current
54561766.1669577213.5454561766.16
accounts
Income from compensation
23038308.5922783642.5623038308.59
liquidated damages and fines
Others 2125316.77 8290435.68 2125316.77
Total 80221260.29 101492545.66 80221260.29
Other description:
59. Non-operating Expenses
Unit: CNY
Amount Included in
Amount Incurred in Amount Incurred in the
Item Current Non-recurring
Current Period Previous Period
Profits and Losses
Donation 250000.00 8988110.00 250000.00
Losses from damage and
retirement of non-current 2098828.67 1873692.16 2098828.67
assets
Compensation liquidated
1783420.0117552554.471783420.01
damages
Others 106119.93 370560.94 106119.93
Total 4238368.61 28784917.57 4238368.61
Other description:
284Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
60. Income Tax Expenses
(1) Statement of income tax expenses
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Current income tax expenses 71737908.37 126075087.26
Deferred income tax expense -463145268.76 -459297534.77
Total -391407360.39 -333222447.51
(2) Adjustment process of accounting profits and income tax expenses
Unit: CNY
Item Amount Incurred in Current Period
Total profits 397145862.35
Income tax expense calculated at statutory/applicable
99286465.59
tax rate
Effect of different tax rates applied to subsidiaries -19002915.46
Effect of adjustment to income tax of previous periods -28042858.06
Effect of non-deductible costs expenses and losses 147441.79
Effect of using the deductible losses of deferred tax
-114589595.46
assets not recognized in the previous periods
Effects of deductible temporary differences or
deductible losses of deferred income tax assets 4626853.34
unrecognized in the current period
Profit or loss of joint ventures and associated
-1845055.46
enterprises calculated by equity method
Tax effect of additional deduction for research and
-331987696.67
development expenses
Income tax expenses -391407360.39
Other description:
61. Other Comprehensive Income
Refer to Note 43 to VII “Notes to Consolidated Financial Statements” in Section VIII “Financial Report”.
62. Notes to the Cash Flow Statement
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the Previous
285Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Period
Government subsidies received 504046732.55 571544389.16
Collection and payment 324265768.91 391660955.82
Bank interest 264434389.93 126285131.12
Fines and compensation received 7216444.68 13638624.11
Intercompany balances and others 418082566.03 43179416.08
Total 1518045902.10 1146308516.29
Description of other cash received related to operating activities:
Other cash paid related to operating activities
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Out-of-pocket expenses 2205898409.06 1137805570.04
Current account 145121802.21 277620463.50
Donations 250000.00 8988110.00
Total 2351270211.27 1424414143.54
Description of other cash payments related to operating activities:
(2) Cash related to investing activities
Cash received from significant investing activities
Unit: CNY
Amount Incurred in Current Amount Incurred in the
Item
Period Previous Period
Withdrawal of structured deposits 30700000000.00
Disposal price of long-term equity
investments accounted for using the equity 4357068905.33
method
Total 30700000000.00 4357068905.33
Description of other cash received related to investing activities:
Other cash paid related to investing activities
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Fixed deposits 1500000000.00 2400000000.00
Total 1500000000.00 2400000000.00
Cash paid for important investing activities
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Purchase of structured deposits 30700000000.00
Cash paid for acquisition of equity
interest in joint venture Jiefang 191000000.00
Times New Energy Technology
286Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Co. Ltd.Cash paid for the purchase of
equity in FAW (Africa) Investment 147576957.96 180371837.52
Co. Ltd.Cash paid to purchase the equity of
40460300.41
Jiefang Motors Tanzania Ltd.Cash paid for establishment of
joint venture Diyi AESC New
4900000.00
Energy Power Technology (Wuxi)
Co. Ltd.Total 31038576957.96 225732137.93
Description of other cash paid related to investing activities:
(3) Cash related to financing activities
Other cash paid related to financing activities
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Repayment of lease liabilities 5720929.25 16667194.16
Total 5720929.25 16667194.16
Description of other cash payments related to financing activities:
Changes in liabilities arising from financing activities
□Applicable□Not applicable
63. Supplementary Information to Cash Flow Statement
(1) Supplementary information to cash flow statement
Unit: CNY
Amount in the Amount of the
Supplementary Information
Current Period Previous Period
1. Reconciliation of net profit to cash flows from operating
activities
Net Profit 788553222.74 659271152.29
Add: impairment provision of assets 420441968.91 298331303.56
Depreciation of fixed assets depletion of oil and gas assets
1741622124.331780705889.72
and productive biological assets
Depreciation of right-of-use asset 37711641.92 51883038.66
Amortization of intangible assets 206798219.31 205690065.43
Amortization of long-term deferred expenses
Losses/gains on disposal of fixed assets intangible assets
-142942964.742556989.65
and other long-term assets (gains expressed as “-”)
Loss from retirement of fixed assets (incomes to be listed 1602959.90 1873692.16
287Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
with “-”)
Loss from changes in fair value (incomes to be listed with
“-”)
Financial expenses (incomes to be listed with “-”) 14480993.73 -474436370.43
Investment losses (incomes to be listed with “-”) -56913061.63 -779847137.36
Decrease of deferred income tax assets (increase to be
-44375065.46-449315465.25
listed with “-”)
Increases of deferred income tax liabilities (decrease to be
-423181364.3011114174.97
listed with “-”)
Decrease in inventories (increase to be listed with “-”) -3594334367.70 -413235112.72
Decrease in operating receivables (increase to be listed
4226659243.87-10160069654.49
with “-”)
Increase in operating items payable (decrease to be listed
-491091118.223504475291.22
with “-”)
Others -89284164.46
Net cash flows from operating activities 2685032432.66 -5850286307.05
2. Major investment and financing activities not related to cash
deposit and withdrawal:
Conversion of debt into capital
Convertible corporate bonds within one year
Fixed assets acquired under financial lease
3. Net changes in cash and cash equivalents:
Closing balance of cash 19663237066.02 19391201104.68
Less: opening balance of cash 19391201104.68 23108714054.86
Add: ending balance of cash equivalents
Less: opening balance of cash equivalents
Net increase in cash and cash equivalents 272035961.34 -3717512950.18
(2) Net cash paid for acquisition of subsidiaries in the current period
Unit: CNY
Amount
Cash or cash equivalents paid in the current period for business
combination occurred in the current period
Add: Cash or cash equivalents paid in the current period for
147576957.96
business combinations in prior periods
Net cash paid to acquire subsidiaries 147576957.96
Other description:
(3) Composition of cash and cash equivalents
Unit: CNY
288Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Item Closing Balance Opening Balance
I. Cash 19663237066.02 19391201104.68
Including: cash on hand 1828617.96 300158.23
Bank deposits readily available for
19661407007.1619390900946.45
payment
Other monetary funds available for
1440.90
payment on demand
II. Closing balance of cash and cash
19663237066.0219391201104.68
equivalents
64. Foreign Currency Monetary Items
(1) Foreign currency monetary items
Unit: CNY
Foreign Currency
Closing Balance
Item Balance at the End of the Exchange Rate
Converted into CNY
Period
Monetary capital 663646446.42
Including: USD 10418064.98 7.0288 73226495.13
EUR 22405.57 8.2355 184521.07
HKD
Shilling 7861784623.77 0.0029 22799175.41
Rand 1334665375.98 0.4224 563762654.81
Japanese Yen 82000000.00 0.0448 3673600.00
Accounts receivable 826560722.28
Including: USD 16456303.06 7.0288 115668062.95
EUR 3594731.00 8.2355 29604407.15
HKD
Shilling 98723077937.92 0.0029 286296926.02
Rand 935112041.09 0.4224 394991326.16
Long-term loans
Including: USD
EUR
HKD
Other receivables 26897564.34
Including: USD 3782953.17 7.0288 26589621.24
Shilling 47547463.60 0.0029 137887.64
Rand 402593.42 0.4224 170055.46
Accounts payable 405153094.32
Including: USD 384528.36 7.0288 2702772.94
EUR 55096.73 8.2355 453749.12
Shilling 71165850902.75 0.0029 206380967.62
289Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Rand 463105124.61 0.4224 195615604.64
Other payables 96214823.38
Including: USD 10330.99 7.0288 72614.46
EUR 47045.25 8.2355 387441.16
Shilling 131203733.89 0.0029 380490.83
Rand 225624160.06 0.4224 95303645.21
Japanese Yen 1576601.00 0.0448 70631.72
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
Principal business Recording
Unit Registered Capital
Place Currency
FAW Vehicle Manufacturing South Johannesburg South South African
ZAR 654.795 million
Africa Co. Ltd. Africa Rand
FAW Jiefang Austria R&D Co. Ltd. Steyr Austria EUR 2 million EUR
Dar es Salaam
Jiefang Motors Tanzania Ltd. 220 thousand shillings Tanzanian shilling
Tanzania
Jiefang Best Co. Ltd. Yokohama Japan JPY 82 million Japanese Yen
Jiefang Saudi Arabia Co. Ltd. Saudi Arabia SAR 30 million SAR
65. Lease
(1) The Company acting as the lessee
□Applicable □Not applicable
Variable lease payments are not included in the measurement of lease liabilities
□Applicable□Not applicable
Lease expenses for simplified short-term leases or low-value asset leases
□Applicable □Not applicable
Unit: CNY
Item Amount in the Current Period
Interest expense on lease liabilities 1921935.94
Short-term lease expenses under simplified treatment included in the cost of
28661549.72
related assets or current profit or loss
Total cash outflow related to leases 5720929.25
Circumstances involving sale and leaseback transactions
290Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
(2) The Company acting as the lessor
Operating lease with the Company acting as the lessor
□Applicable □Not applicable
Unit: CNY
Including: Income Related to
Item Rental Income Variable Lease Payments Not
Included in the Lease Receipts
Operating lease income 21303497.60
Total 21303497.60
Financing lease with the Company acting as the lessor
□Applicable□Not applicable
Yearly undiscounted lease receipts for the next five years
□Applicable□Not applicable
Reconciliation of Undiscounted Lease Receivables and Net Investment in Leases
(3) Gains and losses recognized from sales of finance lease as a manufacturer or distributor
□Applicable□Not applicable
VIII. R&D Expenditures
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the PreviousPeriod
Including: Expensed R&D
expenditure 2283177259.70 2409485641.76
Capitalized R&D
expenditure 298645742.07 390738120.65
1. R&D Projects Eligible for Capitalization
Unit: CNY
Increase in the Current Decrease in the Current
Period Period
Transferr
Item Opening Balance ed toInternal Closing Balance
Other Recognized as Current
Development
s Intangible Assets Profits
Expenditures
and
Losses
A2205 23547997.18 25929944.72 49477941.90
A2207 41535297.80 22980331.78 64515629.58
A2208 30524736.25 24512006.74 55036742.99
291Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
A2209 32047370.79 32047370.79
A2305 39500208.40 31260752.01 70760960.41
A2306 47071931.70 8032682.99 55104614.69
A2307 62451369.97 5088441.99 67539811.96
A2308 46948645.47 24274378.96 71223024.43
L126 22108818.25 27688174.42 49796992.67
L2403 38408.37 4606237.34 4644645.71
L2405 228815.19 22161877.55 22390692.74
T2208 35117380.02 16050962.17 51168342.19
T2209 14557788.58 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 12152129.50 600.00 12152729.50
XC2411107 2967534.05 2967534.05
Z2407 12299822.33 18829551.19 31129373.52
Z2408 9466942.22 9049334.90 18516277.12
Z2409 9393773.35 3021775.44 12415548.79
Z2431 4889882.99 4889882.99
Z2442 32424484.68 30621383.36 63045868.04
Z2443 411413.51 15245348.08 15656761.59
Z2444 132123.81 4402075.44 4534199.25
Total 500611951.24 298645742.07 158151362.07 641106331.24
Significant capitalized R&D projects
Expected
Specific Basis
Generation
R&D Expected Completion Time Point of for
Item Method of
Progress Time Capitalization Starting Capitalization
Economic
Starting
Benefits
Being adopted
by
consideration
Product Production
A2205 April 30 2027 December 1 2023 and decision-
validation and sales
making at the
project review
meeting
Being adopted
by
consideration
Product Production
A2207 April 30 2027 January 1 2023 and decision-
validation and sales
making at the
project review
meeting
Product Production Being adopted
A2208 April 30 2027 January 1 2023
validation and sales by
292Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
consideration
and decision-
making at the
project review
meeting
Being adopted
by
consideration
Product Production
A2305 February 28 2026 March 1 2023 and decision-
validation and sales
making at the
project review
meeting
Being adopted
by
consideration
Product Production
A2307 February 28 2026 March 1 2023 and decision-
validation and sales
making at the
project review
meeting
Being adopted
by
consideration
Product Production
A2308 June 30 2026 March 1 2023 and decision-
validation and sales
making at the
project review
meeting
Being adopted
by
consideration
Product Production
T2208 April 30 2026 January 1 2023 and decision-
validation and sales
making at the
project review
meeting
Being adopted
by
consideration
Pilot Production
Z2407 January 31 2026 February 1 2024 and decision-
production and sales
making at the
project review
meeting
Being adopted
by
consideration
Development Production
Z2442 December 31 2026 June 1 2024 and decision-
phase and sales
making at the
project review
meeting
Pilot Production Being adopted
T2209 January 31 2026 January 1 2023
production and sales by
293Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
consideration
and decision-
making at the
project review
meeting
Being adopted
by
Trial
consideration
production Production
L126 May 10 2026 April 7 2026 and decision-
start / TR5B and sales
making at the
stage
project review
meeting
IX. Changes in Consolidation Scope
1. Changes in Consolidation Scope for Other Reasons
Explanation of other changes in the scope of consolidation (e.g. establishment of new subsidiaries liquidation
of subsidiaries etc.) and related information:
On September 4 2025 the Company established Jiefang Best Co. Ltd.On November 9 2025 the Company invested in establishing Jiefang Saudi Arabia Co. Ltd.X. Equity in Other Entities
1. Equity in Subsidiaries
(1) Composition of the enterprise group
Unit: CNY
Registe Share Proportion
Principal
Name of red Nature of Way of
Registered Capital Business
Subsidiary Addres Business IndireDirect AcquisitionPlace
s ct
Business
FAW Jiefang Vehicle combination
Changch Chang
Automotive Co. 10803012510.01 manufacturin 100.00% under
un chun
Ltd. g common
control
Business
FAW Jiefang
Vehicle combination
(Qingdao) Qingda
802000000.00 Qingdao manufacturin 100.00% under
Automotive Co. o
g and sales common
Ltd.control
FAW Jiefang Automotive Business
Dalian Diesel 1400000000.00 Dalian Dalian engine 100.00% combination
Engine Co. Ltd. manufacturin under
294Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
g common
control
Manufacturin
Business
FAW Jiefang g of
combination
Lvdong Recycling automotive
38094059.61 Wuxi Wuxi 100.00% under
Technology components
common
(Wuxi) Co. Ltd. and
control
accessories
Business
FAW Jiefang Technology combination
Austria R&D Co. 15765000.00 Austria Austria research and 100.00% under
Ltd. development common
control
FAW Jiefang Establishme
Changch Chang
Automotive Sales 200000000.00 Vehicle sales 100.00% nt by
un chun
Co. Ltd. investment
FAW Jiefang Uni-
Technical Establishme
D Transportation
90000000.00 Tianjin Tianjin services and 100.00% nt by
Technology
other services investment
(Tianjin) Co. Ltd.Business
combination
Jiefang Motors Tanzan
1654.00 Tanzania Vehicle sales 100.00% under
Tanzania Ltd. ia
common
control
Business
FAW (Africa) combination
Changch Chang
Investment Co. 680000000.00 Vehicle sales 55.00% under
un chun
Ltd. common
control
Business
FAW Vehicle
Vehicle combination
Manufacturing South South
466105291.49 manufacturin 98.00% under
South Africa Co. Africa Africa
g and sales common
Ltd.control
FAW Jiefang
Group Establishme
Changch Chang
International 200000000.00 Vehicle sales 100.00% nt by
un chun
Automobile Co. investment
Ltd.Other
technology Establishme
Jiefang Best Co.
3775936.00 Japan Japan promotion 51.00% nt by
Ltd.service investment
industries
Establishme
Jiefang Saudi Saudi Saudi
12869500.00 Vehicle sales 100.00% nt by
Arabia Co. Ltd. Arabia Arabia
investment
Description of the fact that the shareholding proportion in subsidiaries is different from the proportion of voting
295Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
rights: none
Basis for holding half or less of the voting rights but still controlling the investee and for holding more than
half of the voting rights but not controlling the investee: none
Basis for control of important structured entities included in the consolidation scope: none
Basis for determining whether the Company is an agent or a principal: none
Other description: none
2. Equities in Joint Ventures or Associated Enterprises
(1) Important joint ventures or associated enterprises
Share Proportion Accounting
Treatment
Registe Method for
Principal
Name of Joint Ventures or red Nature of Investment in
Business
Associated Enterprises Addres Business IndireDirect JointPlace
s ct Ventures or
Associated
Enterprises
Sanguard Automobile Changchu Chang Financial Equity
17.50%
Insurance Co. Ltd. n chun insurance method
FAW Changchun Ansteel
Changchu Chang Industrial Equity
Jiefang Steel Processing and 40.00%
n chun manufacturing method
Distribution Co. Ltd.FAW Changchun Baoyou
Changchu Chang Industrial Equity
Jiefang Steel Processing and 21.81%
n chun manufacturing method
Distribution Co. Ltd.Manufacturing of
Changchun Wabco Automotive Changchu Chang automotive Equity
40.00%
Control System Co. Ltd. n chun components and method
accessories
Research and
Suzhou Zhito Technology Co. Equity
Suzhou Suzhou experimental 25.30%
Ltd. method
development
Software and
FAW Jiefang Fujie (Tianjin) information Equity
Tianjin Tianjin 10.00%
Technology Industry Co. Ltd. technology method
services
Software and
Nanjin information Equity
SmartLink Nanjing 29.48%
g technology method
services
Manufacturing
Foshan Diyiyuansu New Equity
Foshan Foshan and technical 45.00%
Energy Technology Co. Ltd. method
services
Changchun Automotive Test Changchu Chang Technical Equity
14.63%
Center Co. Ltd. n chun services method
Jiefang Times New Energy Shijiazhua Shijiaz Technical 47.03% Equity
296Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Technology Co. Ltd. ng huang services and method
other services
Engineering and
technology
Diyi AESC New Energy Power Equity
Wuxi Wuxi research and 49.00%
Technology (Wuxi) Co. Ltd. method
experiment
development
Explanation of the fact that the shareholding proportion in joint ventures or associated enterprises is different
from the proportion of voting rights: there is no difference between the shareholding proportion and the
proportion of voting rights.Basis for holding less than 20% of voting rights but with significant influence or holding 20% or more of
voting rights but without significant influence: The Company holds 17.50% of the shares of Xin’an Automobile
Insurance Co. Ltd. and according to the Articles of Association of the Company the Company appoints one
director thereby exercising significant influence over Xin’an Automobile Insurance Co. Ltd. The Company
holds 10.00% of the shares of Jiefang Fujie (Tianjin) Technology Industry Co. Ltd. and according to the
Articles of Association of the Company the Company appoints three directors thereby exercising significant
influence over Jiefang Fujie (Tianjin) Technology Industry Co. Ltd. The Company holds 14.63% of the shares
of Changchun Automotive Test Center Co. Ltd. and according to the Articles of Association of the Company
the Company appoints one director thereby exercising significant influence over Changchun Automotive Test
Center Co. Ltd.
(2) Excess losses incurred by joint ventures or associated enterprises
Unit: CNY
Unrecognized Losses in Accumulated
Unrecognized Losses
Name of Joint Ventures the Current Period (or Unrecognized Losses at
Accumulated in Prior
or Associated Enterprises Net Profit Shared in the the End of the Current
Periods
Current Period) Period
Suzhou Zhito Technology
181709441.2130815579.30212525020.51
Co. Ltd.SmartLink 19547758.40 21300513.90 40848272.30
Other description: none
XI. Government subsidies
1. Government Subsidies Are Recognized at the Receivable Amount at the End of the Reporting Period
□Applicable□Not applicable
Reasons for failing to receive the expected amount of government subsidies at the expected time point
□Applicable□Not applicable
2. Liability Items with Government Subsidies
□Applicable □Not applicable
297Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Unit: CNY
Amoun
t
Recog
nized
in Amount Related
New
Acco Non- Transferred to to Assets
Government Other
unt Opening Balance Operati Other Income in Closing Balance / Related
Grants Received Changes
Item ng the Current to
during the Period
Income Period Income
in the
Curren
t
Period
Defer
red
2936362847.77501101604.80590619645.872846844806.70
inco
me
3. Government Subsidies Are Included in the Current Profit or Loss
□Applicable □Not applicable
Unit: CNY
Amount Incurred in the Previous
Account Item Amount Incurred in Current Period
Period
Government subsidies 590619645.87 618258791.46
Other notes: N/A
XII. Risks Related to Financial Instruments
1. Various Risks Arising from Financial Instruments
The Company is exposed to various financial risks in the course of its operations: credit risk liquidity risk and
market risk (including exchange rate risk interest rate risk and other price risks). These financial risks and the
risk management policies adopted by the Company to mitigate these risks are described below.
(1) Credit risk
Credit risk is the risk of financial loss to the Company arising from the failure of a counterparty to meet its
contractual obligations.The Company’s credit risk primarily arises from cash and cash equivalents accounts receivable other
receivables non-current assets due within one year long-term receivables other equity instrument investments
notes payable accounts payable other payables non-current liabilities due within one year and lease liabilities.Details of each financial instrument have been disclosed in relevant notes.
298Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
The Company’s cash and cash equivalents are primarily bank deposits placed with state-owned banks and other
large and medium-sized listed banks with sound reputations and high credit ratings. The Company considers
that there is no significant credit risk and that material losses due to bank defaults are highly unlikely.In addition for notes receivable accounts receivable financing receivables contract assets and other
receivables the Company has established policies to control credit risk exposure. The Company assesses the
creditworthiness of customers and sets appropriate credit periods based on their financial condition the
availability of third-party guarantees credit history and other factors such as current market conditions. The
Company monitors the credit records of customers regularly and take measures such as written reminders
shortening of credit period or cancellation of credit period for customers with poor credit records so as to
ensure that the overall credit risk is within a controllable range.
(2) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations that are settled by
delivering cash or other financial assets.The Company’s policy is to ensure that it has sufficient cash to repay debts as they fall due. Liquidity risk is
managed centrally by the Company’s finance department. The finance department ensures that the Company
maintains sufficient funds to meet its obligations under all reasonably foreseeable circumstances by monitoring
cash balances readily marketable securities and rolling 12-month cash flow forecasts. The Company also
continuously monitors compliance with borrowing agreement covenants and maintains commitments from
major financial institutions to provide sufficient standby funding to meet short-term and long-term liquidity
requirements.The sources of the Company’s working capital include funds generated from operating activities bank loans
and other loans. As of December 31 2025 the Company had unused bank credit facilities of CNY 38.049
billion.
(3) Market risk
Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to
changes in market prices including exchange rate risk interest rate risk and other price risks.* Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates.Fixed-rate and floating-rate interest-bearing financial instruments expose the Company to fair value interest rate
risk and cash flow interest rate risk respectively. The Company determines the appropriate mix of fixed-rate
and floating-rate instruments based on market conditions and maintains this mix through regular review.* Exchange rate risk
299Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Exchange rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates.The Company’s foreign exchange risk exposure is primarily related to the euro. Except for assets held by
subsidiaries established in Austria Tanzania and South Africa that are denominated in euros shillings and
rand respectively the Company’s main business activities are priced and settled in CNY. The balance of the
Company’s assets and liabilities were all in CNY as of December 31 2025 except a small amount of monetary
capitals including the balance in EUR. Therefore the Company does not believe that the exchange rate risk
faced is significant.* Other price risk
Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market prices other than those arising from exchange rate risk or interest rate risk.The Company’s exposure to other price risk arises primarily from investments in equity instruments.
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: CNY
End-of-Period Fair Value
Item Level I Fair Value Level II Fair Value Level III Fair
Measurement Measurement Value TotalMeasurement
I. Ongoing fair value
measurement -- -- -- --
(I) Financial assets held for
trading
(1) Equity instruments 210703161.60 210703161.60
Accounts receivable financing 6556062093.60 6556062093.60
300Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Total assets are measured at
fair value on an ongoing basis 210703161.60 6556062093.60 6766765255.20
II. Non-ongoing fair value
measurement -- -- -- --
2. Basis for Determination of Market Prices for Continuous and Non-Continuous Level I Measurement
Items at Fair Value
The Company’s other equity instrument investments measured at Level 1 fair value comprise listed equity
securities with fair value determined based on quoted market prices.
3. Valuation Techniques and Qualitative and Quantitative Information about Key Parameters of Items
Subject to Continuous and Non-Continuous Level II Fair Value Measurement
The Company’s financing receivables measured at Level 2 fair value comprise notes receivable which are held
with the intention of holding to maturity or endorsement. Due to their short remaining maturities the carrying
amount approximates fair value.
4. Valuation Techniques and Qualitative and Quantitative Information on Key Parameters for Items
Measured at Level 3 Fair Value on a Recurring and Non-Recurring Basis
Any input value (non-observable input value) not based on observable market data is used for assets or
liabilities.XIV. Related Parties and Related Party Transactions
1. Parent Company of the Company
Shareholding Proportion of
Name of Parent Registered Nature of Registered Proportion of Voting Rights of
Company Address Business Capital the Parent the ParentCompany in the Company in the
Company Company
Production and
FAW Changchun sales ofautomobiles and CNY 78 billion 62.19% 62.19%
parts
Description of the parent company of the Company: The ultimate controlling party of the Company is China
FAW Group Co. Ltd.Other description: The registered capital of the parent company has not changed during the reporting period.
2. Subsidiaries of the Company
For details of subsidiaries of the Company please refer to Article 1 in X “Equity in Other Entities” of Section
VIII “Financial Report”.
3. Information on Joint Ventures and Associated Enterprises of the Company
For details of important joint ventures or associated enterprises of the Company please refer to Article 2 in X
301Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
“Equity in Other Entities” of Section VIII “Financial Report”.Other joint ventures or associated enterprises that have related party transactions with the Company in the
current period or in the previous period resulting in balance are as follows:
Name of Joint Ventures or Associated Enterprises Relationship with the Company
Associated enterprise of the Company the same
Changchun Automotive Test Center Co. Ltd.ultimate controlling party
Associated enterprise of the Company the same
Sanguard Automobile Insurance Co. Ltd.ultimate controlling party
FAW Changchun Baoyou Jiefang Steel Processing and
Associated enterprise of the Company
Distribution Co. Ltd.FAW Changchun Ansteel Jiefang Steel Processing and
Associated enterprise of the Company
Distribution Co. Ltd.Changchun Wabco Automotive Control System Co.Associated enterprise of the Company
Ltd.Suzhou Zhito Technology Co. Ltd. Associated enterprise of the Company
SmartLink Associated enterprise of the Company
FAW Jiefang Fujie (Tianjin) Technology Industry Co.Associated enterprise of the Company
Ltd.Jiefang Times New Energy Technology Co. Ltd. Joint venture of the Company
Foshan Diyiyuansu New Energy Technology Co. Ltd. Associated enterprise of the Company
Other description:
4. Information on Other Related Parties
Relationship between Other Related Parties and the
Names Of Other Related Parties
Company
China FAW Group Import & Export Co. Ltd. The same ultimate controlling party
FAW-HONGTAYunnan Automobile Co. Ltd. The same ultimate controlling party
FAW (Eastern Europe) Co. Ltd. The same ultimate controlling party
Qiming Information Technology Co. Ltd. The same ultimate controlling party
FAW Harbin Light-Automobile Co. Ltd. The same ultimate controlling party
FAW Forging (Jilin) Co. Ltd. The same ultimate controlling party
Hainan Tropical Automobile Test Co. Ltd. The same ultimate controlling party
FAW INTERNATIONAL (HONG KONG) TRADING
The same ultimate controlling party
COMPANY LIMITED
FAWAsset Management Co. Ltd. The same ultimate controlling party
First Automobile Finance Co. Ltd. The same ultimate controlling party
FAWMold Manufacturing Co. Ltd. The same ultimate controlling party
FAW Foundry Co. Ltd. The same ultimate controlling party
China Automotive New Energy Technology Co. Ltd. The same ultimate controlling party
FAW Changchun Automobile Trading Service Co.The same ultimate controlling party
Ltd.FAW Zhixing Technology (Nanjing) Co. Ltd. The same ultimate controlling party
FAW Southern (Shenzhen) Technology Development
The same ultimate controlling party
Co. Ltd.Changchun FAWAutomobile Culture Communication
The same ultimate controlling party
Co. Ltd.Wuxi Sawane Spring Co. Ltd. The same ultimate controlling party
302Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Faw (Dalian) Trade and Logistics Co. Ltd The same ultimate controlling party
Yidong New Energy Technology Co. Ltd. The same ultimate controlling party
FAW Fuhua Ecological Co. Ltd. The same ultimate controlling party
FAW Changchun Tianqi Process Equipment
The same ultimate controlling party
Engineering Co. Ltd.Tianjin FAWAutomotive Parts Co. Ltd. The same ultimate controlling party
FAW Bestune Auto Co. Ltd. The same ultimate controlling party
FAW Huaxiang Lightweight Technology (Changchun)
The same ultimate controlling party
Co. Ltd.FAW Chuxing Technology Co. Ltd. The same ultimate controlling party
FAW Fuhua Automobile Sales and Service
The same ultimate controlling party
(Changchun) Co. Ltd.
Volkswagen FAW Engine (Dalian) Co. Ltd. The same ultimate controlling party
FAW New Energy Vehicle Sales (Guangzhou) Co.The same ultimate controlling party
Ltd.China Logistics Group Automotive Supply Chain
Other related parties
Technology Co. Ltd.Changan Mazda Automobile Co. Ltd. Other related parties
Dalian Qingfeng Bus Co. Ltd. Other related parties
Shandong Pengxiang Automobile Co. Ltd. Other related parties
FAW Jingye Engine Co. Ltd. Other related parties
Changchun Yidong Clutch Co. Ltd. Other related parties
Grammer Vehicle Parts (Harbin) Co. Ltd. Other related parties
Fawer Auto Parts Co. Ltd. Other related parties
Changchun FAWSN Group Co. Ltd. Other related parties
FAW Changchun Yanfeng Visteon Electronics Co.Other related parties
Ltd.Changchun FAWAY Group Automobile Components
Other related parties
Co. Ltd.FAW Jilin Automobile Co. Ltd. Other related parties
The Ninth Institute of Project Planning & Research of
Other related parties
China Machinery Industry (FIPPR)
FAW-FINDREAMS New Energy Technology Co.Other related parties
Ltd.FAW Changchun Comprehensive Utilization Co. Ltd. Other related parties
Changchun FAW United Casting Company (CFU) Other related parties
Wuxi CRRC New Energy Automobile Co. Ltd. Other related parties
Hongqi Intelligent Mobility Technology (Beijing) Co.Other related parties
Ltd.China Unicom FAW Communication Technology
Other related parties
(Changchun) Co. Ltd.
China Unicom Smart Connection Technology Limited Other related parties
Changchun Sodexo Management Service Co. Ltd. Other related parties
Changchun Automotive Economic and Technological
Development Zone Environmental Sanitation and Other related parties
Cleaning Co. Ltd.Other description:
303Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
5. Related Transactions
(1) Related transactions of purchasing or selling goods and providing or receiving labor services
Statement of goods purchase/reception of labor services
Unit: CNY
Is the
Transa
Content of ction
Amount Incurred in Approved Amount Incurred in
Related Parties Related Amoun
Current Period Transaction Amount the Previous Period
Transaction t
Exceed
ed
Goods purchase
Fawer Auto
and reception of 1554626359.24 2078310000.00 No 1393565622.28
Parts Co. Ltd.labor services
Goods purchase
FAW Foundry
and reception of 753092907.46 1099910000.00 No 657358784.92
Co. Ltd.labor services
China Logistics
Group
Goods purchase
Automotive
and reception of 735164482.11 652820000.00 Yes 529499509.51
Supply Chain
labor services
Technology
Co. Ltd.Changchun Goods purchase
FAWSN Group and reception of 682439775.33 826930000.00 No 511097465.83
Co. Ltd. labor services
Shandong
Goods purchase
Pengxiang
and reception of 399638511.49 473670000.00 No 304925953.37
Automobile
labor services
Co. Ltd.Goods purchase
FAW Forging
and reception of 392116775.40 474630000.00 No 365403123.07
(Jilin) Co. Ltd.labor services
Changchun
FAWAY Group Goods purchase
Automobile and reception of 383953908.74 505150000.00 No 339991796.88
Components labor services
Co. Ltd.FAW
Changchun
Goods purchase
Ansteel Jiefang
and reception of 376195899.25 533930000.00 No 358054094.91
Steel Processing
labor services
and Distribution
Co. Ltd.FAW Goods purchase
314377334.18 551560000.00 No 369869782.69
Changchun and reception of
304Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Baoyou Jiefang labor services
Steel Processing
and Distribution
Co. Ltd.Goods purchase
SmartLink and reception of 276398582.88 224240000.00 Yes 220434387.96
labor services
Changchun Goods purchase
Yidong Clutch and reception of 219097403.80 270200000.00 No 183035565.44
Co. Ltd. labor services
Grammer
Goods purchase
Vehicle Parts
and reception of 164962133.61 295170000.00 No 197447028.27
(Harbin) Co.labor services
Ltd.The Ninth
Institute of
Project
Planning & Goods purchase
Research of and reception of 113418053.41 285030000.00 No 186538068.22
China labor services
Machinery
Industry
(FIPPR)
Goods purchase
China FAW Co.and reception of 90919381.90 468570000.00 No 252730203.20
Ltd.labor services
Changchun
Goods purchase
Automotive
and reception of 65974310.75 132460000.00 No 82265371.58
Test Center Co.labor services
Ltd.Sanguard
Goods purchase
Automobile
and reception of 29470096.74 980000000.00 No 23231707.86
Insurance Co.labor services
Ltd.China FAW
Goods purchase
Group Co. Ltd.and reception of 390183257.50 778250000.00 No 381773790.99
and other
labor services
related parties
Statement of goods sales/rendering of services
Unit: CNY
Content of Related Amount Incurred in Amount Incurred in
Related Parties
Transaction Current Period the Previous Period
China FAW Group Import & Export Co. Sales of goods /
492650168.3112208203691.11
Ltd. provision of services
FAW Jiefang Fujie (Tianjin) Technology Sales of goods /
2186929424.181070399702.99
Industry Co. Ltd. provision of services
Jiefang Times New Energy Technology Sales of goods /
1768437137.19214999831.32
Co. Ltd. provision of services
305Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Sales of goods /
FAW Fuhua Ecological Co. Ltd. 39682958.68 170491057.39
provision of services
FAW Changchun Comprehensive Sales of goods /
138720773.45181631688.30
Utilization Co. Ltd. provision of services
China FAW Group Co. Ltd. and other Sales of goods /
335635214.53170720813.84
related parties provision of services
Description of related-party transactions involving the purchase and sale of goods and the provision and receipt
of services:
In 2025 the procurement of goods and acceptance of labor from related parties specifically China Logistics
Group Automotive Supply Chain Technology Co. Ltd. and Smartlink Intelligent Technology (Nanjing) Co.Ltd. exceeded the estimated amounts but none of the excess portions reached the approval threshold.
(2) Related Lease
The Company as the lessor:
Unit: CNY
Lease Income Lease Income
Name of Lessee Type of Leased Assets Recognized in the Recognized in the
Current Period Previous Period
Changchun FAWAY Group Houses and buildings
811332.117779052.50
Automobile Components Co. Ltd. equipment
Changchun Automotive Test Center Houses buildings and
6550000.006000000.00
Co. Ltd. land
FAW Changchun Baoyou Jiefang
Steel Processing and Distribution Houses and Buildings 1056155.96 1059049.54
Co. Ltd.China FAW Co. Ltd. Houses and Buildings 774875.72 774875.72
Shandong Pengxiang Automobile
Houses and Buildings 772040.36 772040.36
Co. Ltd.Fawer Auto Parts Co. Ltd. Houses and Buildings 395405.50 395405.50
China Unicom FAW
Houses buildings and
Communication Technology 160561.25 44036.69
land
(Changchun) Co. Ltd.
Foshan Diyiyuansu New Energy
Houses and Buildings 4877728.56 48441.12
Technology Co. Ltd.
306Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
The Company as the lessee:
Unit: CNY
Rental Expenses for Variable Lease
Simplified Short- Payments Are Not
Interest Expense on Lease Increased Right-of-
Term Leases or Included in the Rent Paid
Liabilities Incurred Use Assets
Low-Value Asset Measurement of
Leases Lease Liabilities
Type of
Name of Lessor Leased Amoun
Assets Amount Amount Amount t Amount AmountAmount Amount Amount
Incurred Incurred Incurred Incurre Amount Incurred Incurred
Incurred in Incurred in Incurred in
in in the in d in the Incurred in the in in the
Current Current the Previous
Current Previou Current Previo Previous Period Current Previous
Period Period Period
Period s Period Period us Period Period
Period
Houses
China FAW
and 228348.62 5439057.94 11189.99 154694.08
Co. Ltd.Buildings
China FAW
Land 4265876.00 1674.44 114069.31
Group Co. Ltd.Changchun
Houses
Automotive
and 23051.33
Test Center Co.Buildings
Ltd.Description of related leases
307Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
(3) Remuneration of key management personnel
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Remuneration of key management
7811200.0012319100.00
personnel
(4) Other related transactions
* Interest income and interest expense
Unit: CNY
Transaction Amount in the Current Amount of the Previous
Related Parties
Content Period Period
First Automobile Finance
Interest income 138934754.11 137754954.50
Co. Ltd.* Equity investment
Unit: CNY
Related Parties Amount Incurred in Current Amount Incurred in thePeriod Previous Period
China FAW Group Import & Export Co.Ltd. 385749224.63
Jiefang Times New Energy Technology
Co. Ltd. 191000000.00
6. Receivables and Payables of Related Parties
(1) Receivables
Unit: CNY
Closing Balance Opening Balance
Project
Related Parties
Name Provision for Provision forBook Balance Book Balance
Bad Debts Bad Debts
China FAW
Accounts
Group Import & 2234511326.78 10305219.33 5859058467.14 7201938.50
receivable
Export Co. Ltd.Accounts China FAW
129510000.00323775.0018690000.0052332.00
receivable Group Co. Ltd.FAW-HONGTA
Accounts Yunnan
43170001.8443170001.8443170001.8416226515.53
receivable Automobile Co.Ltd.FAW Jiefang
Accounts Fujie (Tianjin)
13972450.0013972.45
receivable Technology
Industry Co.
308Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Ltd.Accounts Dalian Qingfeng
9815252.679815252.67
receivable Bus Co. Ltd.Accounts FAW (Eastern
8076840.978076.84
receivable Europe) Co. Ltd.Shandong
Accounts Pengxiang
2637689.418606.1798139.49274.79
receivable Automobile Co.Ltd.Accounts FAW Jingye
1820957.231820957.231820957.231820957.23
receivable Engine Co. Ltd.Changchun
Accounts
Automotive Test 909491.16 2273.73
receivable
Center Co. Ltd.Accounts China FAW Co.
823482.022058.71215088.2064.53
receivable Ltd.Accounts
SmartLink 653252.72 1540.32
receivable
Qiming
Accounts Information
502107.301255.27
receivable Technology Co.Ltd.Suzhou Zhito
Accounts
Technology Co. 74399.90 186.00
receivable
Ltd.Changchun
Accounts
Yidong Clutch 206475.46 145073.52
receivable
Co. Ltd.Grammer Vehicle
Accounts
Parts (Harbin) 54285.00 135.71 128609.10 360.11
receivable
Co. Ltd.FAW Harbin
Accounts Light-
41527.50103.825280362.5914785.02
receivable Automobile Co.Ltd.Jiefang Times
Accounts New Energy
27000.003237.3048121630.43741664.91
receivable Technology Co.Ltd.Accounts Fawer Auto Parts
18642.5246.61113274.44317.17
receivable Co. Ltd.Changchun
Accounts
FAWSN Group 13367.99 33.42
receivable
Co. Ltd.Accounts FAW Forging
12785.7031.96
receivable (Jilin) Co. Ltd.Hainan Tropical
Accounts
Automobile Test 7307.62 18.27
receivable
Co. Ltd.
309Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
FAW Changchun
Accounts Yanfeng Visteon
2959.807.402722.497.62
receivable Electronics Co.Ltd.FAW
INTERNATION
AL (HONG
Accounts
KONG) 586.20 0.59
receivable
TRADING
COMPANY
LIMITED
Changchun
FAWAY Group
Accounts
Automobile 13.50 0.03
receivable
Components Co.Ltd.FAWAsset
Accounts
Management 5535503.14 460080.44
receivable
Co. Ltd.Other
FAW Jingye
receivable 199194.30 199194.30
Engine Co. Ltd.s
China Logistics
Group
Other
Automotive
receivable 660748.74 3554.77 721180.07 829.46
Supply Chain
s
Technology Co.Ltd.Other FAW Jilin
receivable Automobile Co. 538200.00 538200.00 538200.00 538200.00
s Ltd.Other
First Automobile
receivable 156960226.90
Finance Co. Ltd.s
FAW Jiefang
Other Fujie (Tianjin)
receivable Technology 747434.87
s Industry Co.Ltd.Other China FAW
receivable Group Import & 605190.66 60.52
s Export Co. Ltd.Other Changchun
receivable Yidong Clutch 144919.63 144919.63
s Co. Ltd.Other
FAW Forging
receivable 24275070.79 271880.79 25771.06 412.34
(Jilin) Co. Ltd.s
Prepayme China FAW 8039473.42 10406342.22
310Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
nts Group Import &
Export Co. Ltd.FAWMold
Prepayme
Manufacturing 38487775.26
nts
Co. Ltd.Sanguard
Prepayme Automobile
2523973.86
nts Insurance Co.Ltd.FAW Changchun
Ansteel Jiefang
Prepayme
Steel Processing 2017504.50
nts
and Distribution
Co. Ltd.Qiming
Prepayme Information
266654.10
nts Technology Co.Ltd.The Ninth
Institute of
Prepayme Project Planning
267810.00
nts & Research of
China Machinery
Industry (FIPPR)
Prepayme Fawer Auto Parts
1718.69
nts Co. Ltd.Other non- China FAW
current Group Import & 134968826.75
assets Export Co. Ltd.Other non- FAWMold
current Manufacturing 29088895.78
assets Co. Ltd.China Unicom
FAW
Other non-
Communication
current 639459.98
Technology
assets
(Changchun)
Co. Ltd.Jiefang Times
Notes New Energy
570000000.00337000.00
receivable Technology Co.Ltd.FAW Jiefang
Accounts Fujie (Tianjin)
receivable Technology 261802571.63
financing Industry Co.Ltd.Accounts Jiefang Times
213777738.69
receivable New Energy
311Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
financing Technology Co.Ltd.FAW Changchun
Accounts
Comprehensive
receivable 21292640.37
Utilization Co.financing
Ltd.Accounts Tianjin FAW
receivable Automotive Parts 4172258.75
financing Co. Ltd.Accounts
FAW Bestune
receivable 3973420.53
Auto Co. Ltd.financing
Accounts
FAW Forging
receivable 2500000.00
(Jilin) Co. Ltd.financing
FAW Huaxiang
Accounts Lightweight
receivable Technology 1627985.58
financing (Changchun)
Co. Ltd.Accounts FAWMold
receivable Manufacturing 1606234.00
financing Co. Ltd.Accounts FAW Fuhua
receivable Ecological Co. 1200018.00
financing Ltd.Accounts FAW Chuxing
receivable Technology Co. 1081825.50
financing Ltd.Accounts
China FAW Co.receivable 746080.53
Ltd.financing
Changchun
Accounts FAWAY Group
receivable Automobile 623360.60
financing Components Co.Ltd.FAW Fuhua
Accounts Automobile
receivable Sales and Service 236970.12
financing (Changchun)
Co. Ltd.Accounts Changchun
receivable Yidong Clutch 148876.28
financing Co. Ltd.Volkswagen
Accounts
FAW Engine
receivable 95223.00
(Dalian) Co.
financing
Ltd.
312Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Accounts Changchun
receivable FAWSN Group 47839.71
financing Co. Ltd.FAW New
Accounts Energy Vehicle
receivable Sales 46046.35
financing (Guangzhou)
Co. Ltd.Accounts Changan Mazda
receivable Automobile Co. 36000.00
financing Ltd.Accounts
Fawer Auto Parts
receivable 28732.74
Co. Ltd.financing
(2) Payables
Unit: CNY
Closing Book Opening Book
Project Name Related Parties
Balance Balance
Accounts payable Fawer Auto Parts Co. Ltd. 554547091.79 355988850.46
Accounts payable Changchun FAWSN Group Co. Ltd. 221738405.34 85321175.51
Accounts payable China FAW Group Import & Export Co. Ltd. 219473151.67 1898694473.44
China Logistics Group Automotive Supply
Accounts payable 155121503.58 29397716.29
Chain Technology Co. Ltd.Accounts payable Shandong Pengxiang Automobile Co. Ltd. 139168108.69 50367519.94
Changchun FAWAY Group Automobile
Accounts payable 116355441.41 88446817.25
Components Co. Ltd.Accounts payable FAW Forging (Jilin) Co. Ltd. 104287491.57 52222805.16
Accounts payable FAW Foundry Co. Ltd. 92864308.80 91061337.27
FAW-FINDREAMS New Energy Technology
Accounts payable 71457331.93
Co. Ltd.Accounts payable Changchun Yidong Clutch Co. Ltd. 68909666.31 38821930.69
Accounts payable Grammer Vehicle Parts (Harbin) Co. Ltd. 41730506.19 28653515.03
Accounts payable SmartLink 40811288.74 28517491.67
Accounts payable Changchun Automotive Test Center Co. Ltd. 23829152.93 13024962.13
Accounts payable FAW Harbin Light-Automobile Co. Ltd. 23548239.25 19881614.85
Accounts payable Qiming Information Technology Co. Ltd. 20157119.42 12060584.46
Accounts payable China FAW Co. Ltd. 11138216.71 13917957.95
Accounts payable Suzhou Zhito Technology Co. Ltd. 10370800.24 5359358.44
Accounts payable Lishen New Energy Technology Co. Ltd. 4550318.20
Changchun Wabco Automotive Control System
Accounts payable 2767744.93 2394.60
Co. Ltd.FAW Changchun Automobile Trading Service
Accounts payable 2032919.26 1730558.14
Co. Ltd.Accounts payable FAWMold Manufacturing Co. Ltd. 1786837.42 265639.24
FAW Changchun Comprehensive Utilization
Accounts payable 955920.49 793257.18
Co. Ltd.
313Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Changchun FAW United Casting Company
Accounts payable 675472.12 925760.20
(CFU)
Accounts payable Wuxi CRRC New Energy Automobile Co. Ltd. 671702.84
FAW Changchun Yanfeng Visteon Electronics
Accounts payable 424737.46 113757.79
Co. Ltd.Accounts payable Hainan Tropical Automobile Test Co. Ltd. 283427.02 1297348.12
Hongqi Intelligent Mobility Technology
Accounts payable 272176.98 161683.99
(Beijing) Co. Ltd.
The Ninth Institute of Project Planning &
Accounts payable 128334.68 211295.00
Research of China Machinery Industry (FIPPR)
FAW Changchun Baoyou Jiefang Steel
Accounts payable 117302.65 117302.64
Processing and Distribution Co. Ltd.Accounts payable FAW Zhixing Technology (Nanjing) Co. Ltd. 55500.00 162764.38
FAW Southern (Shenzhen) Technology
Accounts payable 47194.91
Development Co. Ltd.Changchun FAWAutomobile Culture
Accounts payable 32252.07
Communication Co. Ltd.China Unicom FAW Communication
Accounts payable 11391.10 570673.57
Technology (Changchun) Co. Ltd.Accounts payable China FAW Group Co. Ltd. 10891.00 2167054.00
China Unicom Smart Connection Technology
Accounts payable 9000.00
Limited
Changchun Sodexo Management Service Co.Accounts payable 3816.80 364975.90
Ltd.Accounts payable Sanguard Automobile Insurance Co. Ltd. 10.00 767333.24
Accounts payable Wuxi Sawane Spring Co. Ltd. 1561718.65
Accounts payable FAWAsset Management Co. Ltd. 95370.72
Changchun Automotive Economic and
Technological Development Zone
Accounts payable 74164.68
Environmental Sanitation and Cleaning Co.Ltd.Other payables FAWMold Manufacturing Co. Ltd. 27240328.49 41077996.08
The Ninth Institute of Project Planning &
Other payables 25045719.40 48072993.31
Research of China Machinery Industry (FIPPR)
Other payables Fawer Auto Parts Co. Ltd. 10095000.00 18670420.82
Other payables China FAW Group Import & Export Co. Ltd. 8950873.07 178714672.05
Other payables Qiming Information Technology Co. Ltd. 6786180.32 16459597.55
Other payables Faw (Dalian) Trade and Logistics Co. Ltd 1576217.70
China Unicom FAW Communication
Other payables 1511480.70 407106.82
Technology (Changchun) Co. Ltd.Other payables Shandong Pengxiang Automobile Co. Ltd. 1200000.00 900000.00
Other payables Suzhou Zhito Technology Co. Ltd. 10000.00 10000.00
Other payables Changchun Yidong Clutch Co. Ltd. 144919.63 144919.63
Other payables China FAW Co. Ltd. 3964596.49
Other payables Changchun Automotive Test Center Co. Ltd. 2335846.87
Other payables SmartLink 2021250.49
FAW Changchun Automobile Trading Service
Other payables 680077.79
Co. Ltd.Other payables Hongqi Intelligent Mobility Technology 19498.41
314Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
(Beijing) Co. Ltd.
Other payables FAW-HONGTAYunnan Automobile Co. Ltd. 7841.86
Accounts
received in China FAW Group Import & Export Co. Ltd. 149838.00
advance
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
China Unicom FAW Communication
received in 6422.06 17431.21
Technology (Changchun) Co. Ltd.advance
Accounts
FAW Changchun Comprehensive Utilization
received in 7023.60
Co. Ltd.advance
Contract
Suzhou Zhito Technology Co. Ltd. 1737426.88 334399.64
liabilities
Contract Jiefang Times New Energy Technology Co.
7109659.32
liabilities Ltd.Contract FAW Jiefang Fujie (Tianjin) Technology
125330759.69534710214.15
liabilities Industry Co. Ltd.Contract
China FAW Group Import & Export Co. Ltd. 1019325.34 1630202.78
liabilities
Contract FAW Changchun Automobile Trading Service
23743.3626830.00
liabilities Co. Ltd.Contract FAW Changchun Comprehensive Utilization
1141546.141060984.43
liabilities Co. Ltd.Contract
Yidong New Energy Technology Co. Ltd. 1486725.66
liabilities
Contract
FAWAsset Management Co. Ltd. 26613.28 26613.23
liabilities
Contract
FAW Fuhua Ecological Co. Ltd. 8221842.57 37006295.80
liabilities
Contract
Shandong Pengxiang Automobile Co. Ltd. 117868.88
liabilities
Contract FAW INTERNATIONAL (HONG KONG)
88419.78
liabilities TRADING COMPANY LIMITED
Notes payable Hainan Tropical Automobile Test Co. Ltd. 84000.00
Notes payable Qiming Information Technology Co. Ltd. 16496982.08
Notes payable FAW Harbin Light-Automobile Co. Ltd. 23766696.20
Notes payable FAW Foundry Co. Ltd. 19009104.72
Notes payable FAW Changchun Tianqi Process Equipment 8593.65
Engineering Co. Ltd.Notes payable Fawer Auto Parts Co. Ltd. 433633378.38
Notes payable Changchun FAWAY Group Automobile 73909925.61
Components Co. Ltd.Notes payable Changchun FAWSN Group Co. Ltd. 135879614.68
315Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Notes payable Changchun Yidong Clutch Co. Ltd. 29706254.52
Notes payable FAW Changchun Comprehensive Utilization 2503479.63
Co. Ltd.Notes payable Shandong Pengxiang Automobile Co. Ltd. 24645791.61
Notes payable FAW Changchun Yanfeng Visteon Electronics 196917.48
Co. Ltd.Notes payable The Ninth Institute of Project Planning & 20608.00
Research of China Machinery Industry (FIPPR)
Notes payable Grammer Vehicle Parts (Harbin) Co. Ltd. 1002607.67
Notes payable China Logistics Group Automotive Supply 9484552.62
Chain Technology Co. Ltd.Notes payable Changchun Automotive Test Center Co. Ltd. 186700.00
Notes payable Sanguard Automobile Insurance Co. Ltd. 12408806.10
Notes payable Suzhou Zhito Technology Co. Ltd. 5149504.80
XV. Share-based Payment
1. General Conditions of Share-Based Payments
□Applicable □Not applicable
Unit: CNY
Shares Granted Shares Exercised Shares Unlocked
Shares Invalidated in the Current
in the Current in the Current in the Current
Grantee PeriodPeriod Period Period
Category
Amoun Amoun Amoun
Qty. Qty. Qty. Qty. Amount
t t t
Manager 1090201.00 6246851.73
Total 1090201.00 6246851.73
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: CNY
Restricted shares are determined according to the
Measures for determining the fair value of equity
instruments on the grant date closing price on the grant date and stock options are
determined according to the B-S option pricing model.Important parameters of fair value of equity
instruments on the grant date Quoted prices in active markets
The Company determines the number according to the
Proposal on the Restricted Share Incentive Plan of FAW
Basis for determining the number of exercisable
equity instruments Jiefang Group Co. Ltd. (Draft) and Its Summary the
Proposal on the Regulations for the Implementation
Assessment of Restricted Share Incentive Plan of FAW
316Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Jiefang Group Co. Ltd. the Proposal on the
Regulations for Restricted Share Incentive of FAW
Jiefang Group Co. Ltd. and the Proposal on
Requesting the Shareholders’ Meeting to Authorize the
Board of Directors to Handle Matters Related to the
Company’s Restricted Share Incentive Plan.Aggregate amount of equity-settled share-based
payment charged to the capital reserve 4993120.58
Total expenses recognized by equity-settled share-
based payment in the current period 17012.29
Other description
3. Cash-settled Share-based Payment
□Applicable□Not applicable
4. Share-based Payment Expenses in the Current Period
□Applicable □Not applicable
Unit: CNY
Equity-settled Share-based Cash-settled Share-based Payment
Grantee Category
Payment Expenses Expenses
Manager 17012.29
Total 17012.29
Other description
XVI. Commitments and Contingencies
1.Important Commitments
As of December 31 2025 the Company has no commitments that should be disclosed.
2. Contingencies
(1) The Company has no important contingencies to be disclosed.
(2) Other information required by the industry information disclosure guidelines
The Company shall comply with the disclosure requirements for the automobile manufacturing industry asspecified in the “Self-regulatory Guidelines of Shenzhen Stock Exchange for Listed Companies No. 3 - IndustryInformation Disclosure.”
The sales amount of mortgage sales financial leases and other modes accounts for more than 10% of the
operating income.□Applicable□Not applicable
317Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
The Company’s guarantee to dealer
□Applicable□Not applicable
XVII. Events after the Balance Sheet Date
1. Profit Distribution
Dividends to be distributed per
0.45
10 shares (CNY)
Dividends per 10 shares
declared upon deliberation and 0.45
approval (CNY)
Based on the total share capital of 4921280975 shares a cash
dividend of CNY 0.45 (tax inclusive) will be distributed to all shareholders
for every 10 shares they hold; the cash dividends to be distributed will reach
CNY 221457643.87 (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.If the Company’s total share capital changes due to share repurchases
Profit distribution scheme
or other reasons before the implementation of the distribution plan a cash
dividend of CNY 0.45 (tax inclusive) will be distributed to all shareholders
per 10 shares based on the total share capital registered on the record date
when the profit distribution plan is implemented in the future with the
specific amount subject to the actual distribution.This distribution plan is subject to the review and approval of the 2025
annual shareholders’ meeting before implementation.XVIII. Notes to Main Items of Parent Company’s Financial Statements
1. Other Receivables
Unit: CNY
Item Closing Balance Opening Balance
Dividends receivable 156960226.90
Other receivables 6460014041.31 6314003121.96
Total 6460014041.31 6470963348.86
(1) Dividends receivable
1) Classification of dividends receivable
Unit: CNY
Item (or Investee) Closing Balance Opening Balance
First Automobile Finance Co. Ltd. 156960226.90
Total 156960226.90
318Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
2) Disclosure by the method of provision for bad debts
□Applicable□Not applicable
(2) Other receivables
1) Classification of other receivables by nature
Unit: CNY
Nature Closing Book Balance Opening Book Balance
Current account 6460473047.57 6314127833.96
Total 6460473047.57 6314127833.96
2) Disclosure by aging
Unit: CNY
Aging Closing Book Balance Opening Book Balance
Within 1 year (including 1 year) 6460014041.31 6313668827.70
Over 3 years 459006.26 459006.26
3-4 years 459006.26
4-5 years 459006.26
Total 6460473047.57 6314127833.96
319Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
3) Disclosure by the method of provision for bad debts
Unit: CNY
Closing Balance Opening Balance
Provision for Bad Provision for Bad
Book Balance Book Balance
Debts Debts
Category Provisi Book Value Provisi Book Value
on on
Amount Scale Amount Amount Scale Amount
Proport Proport
ion ion
Including:
Provision for
bad debts
6460473047.57100.00%459006.260.01%6460014041.316314127833.96100.00%124712.000.00%6314003121.96
made by
portfolio
Including:
Aging 0.00%
6460473047.57100.00%459006.260.01%6460014041.316314127833.96100.00%124712.006314003121.96
portfolio
Total 6460473047.57 100.00% 459006.26 0.01% 6460014041.31 6314127833.96 100.00% 124712.00 0.00% 6314003121.96
320Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Provision for bad debts by portfolio: aging portfolio
Unit: CNY
Closing Balance
Name
Book Balance Provision for Bad Debts Provision Proportion
Provision for bad debts
6460473047.57459006.260.01%
made by portfolio
Total 6460473047.57 459006.26
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses:
Unit: CNY
Stage I Stage II Stage III
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
Has Not Occurred) Credit Impairment)
Balance as of January 01 2025 124712.00 124712.00
Balance on January 1 2025 in the
current period
Provision in the current period 334294.26 334294.26
Balance as of December 31 2025 459006.26 459006.26
Basis for stage division and proportion of bad debt provision
Significant book balance changes occurred in the provision for losses in the current period
□Applicable□Not applicable
4) Top five ending balances of other receivables classified by debtors
Unit: CNY
Proportion in
Closing
total ending
Nature of Balance of
Name of Unit Closing Balance Aging balance of
Payment Provision for
other
Bad Debts
receivables
FAW Jiefang Automotive Co. Current
6460014041.31 Within 1 year 99.99%
Ltd. account
Current
Customer 1 459006.26 4-5 years 0.01% 459006.26
account
Total 6460473047.57 100.00% 459006.26
2. Long-term Equity Investment
Unit: CNY
Closing Balance Opening Balance
Item
Book Balance Impai Book Value Book Balance Impai Book Value
rment rment
321Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Provi Provi
sion sion
Invest
ment
in 21612940897.09 21612940897.09 21611015169.73 21611015169.73
subsidi
aries
Invest
ment
in
associa
ted
enterpr 191533503.96 191533503.96 184102155.37 184102155.37
ises
and
joint
venture
s
Total 21804474401.05 21804474401.05 21795117325.10 21795117325.10
322Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
(1) Investment in subsidiaries
Unit: CNY
Openin Increase/Decrease in the Current Period Closin
g g
Balanc Balanc
Impair
Opening Balance e of Closing Balance e of
Investee
(Book Value) Impair Additional Reduced ment Others (Book Value) Impair
ment Investment Investment Provisi ment
on
Provisi Provisi
on on
FAW Jiefang Automotive Co. Ltd. 21081923036.51 128566440.12 20953356596.39
FAW (Africa) Investment Co. Ltd. 329092133.22 329092133.22
FAW Jiefang Group International Automobile
200000000.00200000000.00
Co. Ltd.Jiefang Best Co. Ltd. 1925727.36 1925727.36
FAW Jiefang Lvdong Recycling Technology
38566440.1238566440.12
(Wuxi) Co. Ltd.FAW Jiefang Uni-D Transportation Technology
90000000.0090000000.00
(Tianjin) Co. Ltd.Total 21611015169.73 1925727.36 128566440.12 128566440.12 21612940897.09
(2) Investment in associated enterprises and joint ventures
Unit: CNY
Openin Increase/Decrease in the Current Period Closin
g g
Balanc Chan CashInvestment Balanc
Opening Balance e of Addit Reduce Adjustment to ges Dividends ImpaiGains or Losses Closing Balance e ofInvestee
(Book Value) Impair ional d Other in and Profits rment OthRecognized (Book Value) Impair
ment Inves Invest Comprehensive Other Are Provi ersunder the ment
Provisi tment ment Income Equit Declared sionEquity Method Provisi
on y to Be Paid on
I. Joint ventures
323Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
II. Associated enterprises
Sanguard Automobile
184102155.37461994.706969353.89191533503.96
Insurance Co. Ltd.Subtotal 184102155.37 461994.70 6969353.89 191533503.96
Total 184102155.37 461994.70 6969353.89 191533503.96
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
324Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
3. Investment Income
Unit: CNY
Item Amount Incurred in Current Amount Incurred in the PreviousPeriod Period
Long-term equity investment income
calculated with cost method 11000000.00 353500000.00
Income from long-term equity
investments accounted for using the 461994.70 274277967.89
equity method
Investment income from disposal of
long-term equity investment 469265324.69
Total 11461994.70 1097043292.58
XIX. Supplementary Information
1. Breakdown of Non-recurring Profit or Loss of Current Period
□Applicable □Not applicable
Unit: CNY
Item Amount Description
Profits or losses on disposal of non-current It refers to the net gain on
142942964.74
assets disposal of non-current assets.Government subsidies included in the current
profit or loss (except those closely related to the
Company’s normal operations conforming to
the State policies and regulations and enjoyed in 590619645.87
line with the specified standards and having a
continuous impact on the profit or loss of the
Company)
Excluding the gains and losses from changes in
fair value and the gains and losses from
disposal of financial assets and financial It refers to the investment income
liabilities held by non-financial enterprises 44920688.34 arising from the disposal of
other than those related to the Company’s trading financial assets.normal operating activities and qualifying as
effective hedging.The reversal of impairment
Reversal of impairment provision for
2272859.28 provision for receivables subject
receivables subject to separate impairment test
to separate impairment test.Non-operating income and expenses other than The net non-operating income and
75982891.68
the above expenses.Less: amount affected by income tax 148638053.67
Amount affected by minority shareholder’s
-11465.38
equity (after-tax)
Total 708112461.62 --
325Full Text of Annual Report 2025 of FAW Jiefang Group Co. Ltd.
Specific conditions of other profit and loss items meeting the definition of non-recurring profit and loss:
□Applicable□Not applicable
There are no specific conditions of profit and loss items meeting definition of non-recurring profit and loss for
the Company.Explanation on defining the non-recurring profit and loss items listed in the Explanatory Announcement No.1
on Information Disclosure by Companies Issuing Securities Publicly - Non-recurring Profit and Loss as
recurring profit and loss items
□Applicable□Not applicable
2. Return on Net Assets and Earnings per Share
Earnings per Share
Profit for the Reporting Weighted Average Return
Period on Equity Basic Earnings per Share Diluted Earnings per
(CNY/Share) Share (CNY/Share)
Net profit attributable to
ordinary shareholders of 2.73% 0.1472 0.1472
the Company
Net profit attributable to
ordinary shareholders of
the Company after 0.06% 0.0033 0.0033
deduction of non-
recurring profit and loss
3. Differences in Accounting Data under Domestic and Foreign Accounting Standards
(1) Differences in net profit and net assets between financial reports disclosed simultaneously under
International Financial Reporting Standards (IFRS) and Chinese Accounting Standards (CAS)
□Applicable□Not applicable
(2) Differences in net profit and net assets between financial reports disclosed simultaneously under
overseas accounting standards and Chinese Accounting Standards (CAS)
□Applicable□Not applicable
(3) Explanation of the reasons for accounting data differences under domestic and foreign accounting
standards shall be given and where data audited by an overseas audit authority has been adjusted based
on the differences the name of the overseas institution shall be indicated.
326
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