JIANGLING MOTORS CORPORATION LTD.FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2025
[English translation for reference only. Should there be any inconsistency between the
Chinese and English versions the Chinese version shall prevail.]Jiangling Motors Corporation Ltd.[English translation for reference only]
Content Page
2025 First Half-year financial statements
Consolidated and company balance sheets 1 - 2
Consolidated and company income statements 3
Consolidated and company cash flow statements 4
Consolidated statement of changes in shareholders’ equity 5
Company statement of changes in shareholders’ equity 6
Notes to the financial statements 7 - 117
Supplementary Information 1 - 2JIANGLING MOTORS CORPORATION LTD.CONSOLIDATED AND COMPANY BALANCE SHEETS
AS AT 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
31 December 31 December
30 June 2025 30 June 2025
ASSETS Notes 2024 2024
Consolidated* Company*
Consolidated Company
Current assets
Cash and cash equivalents 5(1) 11840450248 12546295890 8812639341 9269593792
Derivative financial assets 5(2) 4568083 12612380 4568083 12612380
Notes receivable 5(3) 570313 226865 1000570313 1500226865
Accounts receivable 5(4)、14(1) 5685857715 4181008234 6715437913 5521047573
Financing receivables 5(5) 310302211 302065502 22005635 18070384
Advances to suppliers 5(6) 45567217 94749172 45567217 94749172
Other receivables 5(7)、14(2) 55829685 54013240 231205459 144617207
Inventories 5(8) 1590186600 2054517242 1582189364 2046549034
Current portion of non-current assets 5(10) 16089107 20784738 9271197 15161497
Other current assets 5(9) 1214078126 1228372977 782122256 777406955
Total current assets 20763499305 20494646240 19205576778 19400034859
Non-current assets
Long-term receivables 5(11) 17387215 18533908 - 1584891
Long-term equity investments 5(12)、14(3) 209494706 219298031 762148636 771951961
Fixed assets 5(13) 5972145854 5749474005 5118985576 5111224814
Construction in progress 5(14) 501719953 661911780 434498010 582757760
Right-of-use assets 5(15) 118011325 158485688 104359703 142207976
Intangible assets 5(16) 1753990312 1811454853 1537017915 1596623962
Development expenditures 5(17) 152800683 188103430 152800683 188103430
Goodwill 5(20) - - - -
Deferred tax assets 5(18) 1535803432 1530144365 - -
Other non-current assets 5(19) 6386526 7860340 6386526 7860340
Total non-current assets 10267740006 10345266400 8116197049 8402315134
TOTAL ASSETS 31031239311 30839912640 27321773827 27802349993
* Unaudited financial indexes
1JIANGLING MOTORS CORPORATION LTD.
CONSOLIDATED AND COMPANY BALANCE SHEETS
AS AT 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
31 December 31 December
30 June 2025 30 June 2025
LIABILITIES AND EQUITY Notes 2024 2024
Consolidated* Company*
Consolidated Company
Current liabilities
Short-term borrowings 5(21) 1400000000 1500000000 1000000000 1500000000
Accounts payable 5(22) 10276435013 10061223944 10271525911 10047585502
Contract liabilities 5(23) 635547682 467704291 272153347 536871795
Employee benefits payable 5(24) 638813703 780174574 557704024 672858988
Taxes payable 5(25) 127849617 265198389 117562476 256969632
Other payables 5(26) 5899601355 5739064167 2507594559 2130094497
Current portion of non-current liabilities 5(27) 83537908 86155114 77892029 81053594
Other current liabilities 5(28) 346008533 341548441 45182598 98829073
Total current liabilities 19407793811 19241068920 14849614944 15324263081
Non-current liabilities
Long-term borrowings 5(29) 703163 941453 703163 941453
Lease liabilities 5(30) 19244305 93752634 10506914 82241628
Provisions 5(31) 300621143 287165703 5487495 3553345
Deferred income 5(32) 65827527 61202010 65769194 61202010
Long-term employee benefits payable 5(33) 57627748 59342000 57276748 58991000
Deferred tax liabilities 5(18) 220032344 130301876 201632325 111616233
Other non-current liabilities 5(34) 415521158 370793523 - -
Total non-current liabilities 1079577388 1003499199 341375839 318545669
Total liabilities 20487371199 20244568119 15190990783 15642808750
Equity
Share capital 5(35) 863214000 863214000 863214000 863214000
Capital surplus 5(36) 839442490 839442490 839442490 839442490
Less: treasury shares 5(37) 168909971 - 168909971 -
Other comprehensive income 5(38) (26388000) (26388000) (26738000) (26738000)
Special reserve 3812986 5371093 3589087 5147194
Surplus reserve 5(39) 431607000 431607000 431607000 431607000
Retained earnings 5(40) 9297452950 9179333271 10188578438 10046868559
Total equity attributable to shareholders
11240231455112925798541213078304412159541243
of the Company
Minority interests (696363343) (697235333) - -
Total equity 10543868112 10595344521 12130783044 12159541243
TOTAL LIABILITIES AND EQUITY 31031239311 30839912640 27321773827 27802349993
* Unaudited financial indexes
Legal representative: Qiu Tiangao CFO: Joey Zhu Finance Department: Hu Hanfeng
2JIANGLING MOTORS CORPORATION LTD.
CONSOLIDATED AND COMPANY INCOME STATEMENTS
For six months ended 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
2024 First Half- 2025 First Half- 2024 First Half-
2025 First Half-year
Item Notes year year year
Consolidated*
Consolidated* Company* Company*
Revenue 5(41)、14(4) 18092386210 17920065801 17406169505 17885950058
Less: Cost of sales 5(41)、14(4) (15539656822) (15489880688) (15239926676) (15176367555)
Taxes and surcharges 5(42) (542573504) (673383353) (532041500) (651112639)
Selling and distribution expenses 5(43) (466792493) (617075751) (79713765) (63278732)
General and administrative expenses 5(44) (460681221) (460505827) (426432074) (420738982)
Research and development expenses 5(45) (652925801) (617237727) (652925801) (617237727)
Financial expenses 5(46) 55376687 87655467 46578703 61810235
Including: Interest expenses (8006883) (13395131) (3904430) (13169162)
Interest income 74461188 116562375 61200769 90256996
Add: Other income 5(49) 321265671 379965220 316023140 379781774
Investment income 5(50)、14(5) 679581 6108391 (594717) 3455680
Including: Share of loss of associates and
joint ventures (9803325) (2527255) (9803325) (2527255)
Gains on changes in fair value 5(51) (7003758) 4948826 (7182998) 4970251
Credit impairment losses 5(48) (2295627) 2387703 (2973269) (184716)
Asset impairment losses 5(47) 42736 4296473 42736 4296473
Gains on disposal of assets 5(52) 18372675 10657596 18587389 10372755
Operating profit 816194334 558002131 845610673 1421716875
Add: Non-operating income 5(53) 1697188 1134539 926403 205746
Less: Non-operating expenses 5(54) (206747) (5221095) (202738) (2565347)
Total profit 817684775 553915575 846334338 1419357274
Less: Income tax expenses 5(55) (84084738) 56969254 (90016091) (155090033)
Net profit 733600037 610884829 756318247 1264267241
Classified by continuity of operations
Net profit from continuing operations 733600037 610884829 756318247 1264267241
Net profit from discontinued operations - - - -
Classified by ownership of the equity
Minority interests 871990 (284595288) - -
Attributable to shareholders of the 732728047 895480117 756318247 1264267241
Company
Other comprehensive income net of tax - - - -
Attributable to shareholders of the Company
Other comprehensive income items which
will not be reclassified to profit or loss
Changes arising from remeasurement
5(38)----
of defined benefit plan
Attributable to minority interests - - - -
Total comprehensive income 733600037 610884829 756318247 1264267241
Attributable to shareholders of the Company 732728047 895480117 756318247 1264267241
Attributable to minority interests 871990 (284595288) - -
Earnings per share
Basic earnings per share (RMB Yuan) 5(56) 0.85 1.04 —— ——
Diluted earnings per share (RMB Yuan) 5(56) 0.85 1.04 —— ——
* Unaudited financial indexes
Legal representative: Qiu Tiangao CFO: Joey Zhu Finance Department: Hu Hanfeng
3JIANGLING MOTORS CORPORATION LTD.
CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS
For six months ended 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
2025 First Half- 2024 First Half- 2025 First Half- 2024 First Half-
year year year year
Item Note
Consolidated* Consolidated* Company* Company*
Cash flows (used in)/generated from operating activities
Cash received from sales of goods or rendering of
services 18065495131 18941092268 17662368377 18741276443
Refunds of taxes - 164581363 - 164581363
Cash received relating to other operating activities 5(57) 284304086 118884525 245989854 95504577
Sub-total of cash inflows 18349799217 19224558156 17908358231 19001362383
Cash paid for goods and services (14632015284) (14491870430) (14018348095) (13973193906)
Cash paid to and on behalf of employees (1489737422) (1478169089) (1380952099) (1350502965)
Payments of taxes and surcharges (1043908883) (1462969310) (1028058774) (1420869779)
Cash paid relating to other operating activities 5(57) (1248635412) (1058219650) (721703374) (642894199)
Sub-total of cash outflows (18414297001) (18491228479) (17149062342) (17387460849)
Net cash flows (used in)/generated from operating
activities 5(58) (64497784) 733329677 759295889 1613901534
Cash flows used in investing activities
Cash received from disposal of investments 55000000 400000000 3400000 -
Cash received from returns on investments 264648 6789112 - 4136400
Net cash received from disposal of fixed assets intangible
assets and other long-term assets 39374129 9005122 37584825 7544579
Cash received relating to other investing activities 5(57) 86306501 128144704 62942334 103696833
Sub-total of cash inflows 180945278 543938938 103927159 115377812
Cash paid to acquire fixed assets intangible assets and
other long-term assets (555808114) (832578865) (548027823) (835883605)
Cash paid to acquire investments (55000000) (400000000) (92750000) -
Cash paid relating to other investing activities (202957) (116333) (202957) (116333)
Sub-total of cash outflows (611011071) (1232695198) (640980780) (835999938)
Net cash flows used in investing activities (430065793) (688756260) (537053621) (720622126)
Cash flows used in financing activities
Cash received from borrowings 2933325556 995542778 2448764444 995542778
Cash received relating to other financing activities - 661625 - -
Sub-total of cash inflows 2933325556 996204403 2448764444 995542778
Cash repayments of borrowings (2950240906) (1802237020) (2950240906) (1802237020)
Cash payments for distribution of dividends profits or
interest expenses (315656) (4455249) (315656) (4455249)
Cash paid relating to other financing activities 5(57) (182377597) (12923965) (179521751) (8831429)
Sub-total of cash outflows (3132934159) (1819616234) (3130078313) (1815523698)
Net cash flows used in financing activities (199608603) (823411831) (681313869) (819980920)
Effect of foreign exchange rate changes on
cash and cash equivalents - - - -
Net (decrease)/ increase in cash and cash equivalents 5(58) (694172180) (778838414) (459071601) 73298488
Add: Cash and cash equivalents at beginning of year 5(58) 12475176009 11746518615 9214091023 8648791242
Cash and cash equivalents at end of period 5(58) 11781003829 10967680201 8755019422 8722089730
* Unaudited financial indexes
Legal representative: Qiu Tiangao CFO: Joey Zhu Finance Department: Hu Hanfeng
4JIANGLING MOTORS CORPORATION LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For six months ended 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
Attributable to shareholders of the parent company
Item Note Share capital Capital
Less: Other Special Surplus Retained Minority interests Total equity
surplus treasury comprehensishares ve income reserve reserve earnings
Balance at 1 January 2024 863214000 839442490 - (20572000) 3821625 431607000 8232632623 (365273118) 9984872620
Movements for six months ended 30 June 2024* - - - - 780355 - 305041741 (284595288) 21226808
Total comprehensive income
Net profit/(loss) - - - - - - 895480117 (284595288) 610884829
Other comprehensive income - - - - - - - - -
Total comprehensive income for the period - - - - - - 895480117 (284595288) 610884829
Capital contributed by owners and capital
decreases
Capital invested by shareholders - - - - - - - - -
Profit distribution
Distribution to shareholders 5(40) - - - - - - (590438376) - (590438376)
Special reserves
Withdrawal this period - - - - 12307442 - - - 12307442
Used this period - - - - (11527087) - - - (11527087)
Balance at 30 June 2024* 863214000 839442490 - (20572000) 4601980 431607000 8537674364 (649868406) 10006099428
Balance at 1 January 2025 863214000 839442490 - (26388000) 5371093 431607000 9179333271 (697235333) 10595344521
Movements for six months ended 30 June 2025* - - 168909971 - (1558107) - 118119679 871990 (51476409)
Total comprehensive income
Net profit - - - - - - 732728047 871990 733600037
Other comprehensive income - - - - - - - - -
Total comprehensive income for the period - - - - - - 732728047 871990 733600037
Capital contributed by owners and capital
decreases
Repurchase of shares 5(37) - - 168909971 - - - - - (168909971)
Profit distribution
Distribution to shareholders 5(40) - - - - - - (614608368) - (614608368)
Special reserve
Withdrawal this period - - - - 10109653 - - - 10109653
Used this period - - - - (11667760) - - - (11667760)
Balance at 30 June 2025* 863214000 839442490 168909971 (26388000) 3812986 431607000 9297452950 (696363343) 10543868112
* Unaudited financial indexes
Legal representative: Qiu Tiangao CFO: Joey Zhu Finance Department: Hu Hanfeng
5JIANGLING MOTORS CORPORATION LTD.
COMPANY STATEMENT OF CHANGES IN EQUITY
For six months ended 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
Other
Share capital Capital surplus Less: treasury comprehensiv Special Surplus RetainedItem Note shares e income reserve reserve earnings
Total equity
Balance at 1 January 2024 863214000 839442490 - (20979000) 3821625 431607000 8577966162 10695072277
Movements for six months ended 30 June 2024* - - - - 780355 - 673828865 674609220
Total comprehensive income
Net profit - - - - - - 1264267241 1264267241
Other comprehensive income - - - - - - - -
Total comprehensive income for the period - - - - - - 1264267241 1264267241
Profit distribution
Distribution to shareholders 5(40) - - - - - - (590438376) (590438376)
Special reserve
Withdrawal this period - - - - 12307442 - - 12307442
Used this period - - - - (11527087) - - (11527087)
Balance at 30 June 2024* 863214000 839442490 - (20979000) 4601980 431607000 9251795027 11369681497
Balance at 1 January 2025 863214000 839442490 - (26738000) 5147194 431607000 10046868559 12159541243
Movements for six months ended 30 June 2025* - - 168909971 - (1558107) - 141709879 (28758199)
Total comprehensive income
Net profit - - - - - - 756318247 756318247
Other comprehensive income - - - - - - - -
Total comprehensive income for the period - - - - - - 756318247 756318247
Capital contributed by owners and capital decreases
Repurchase of shares 5(37) - - 168909971 - - - - (168909971)
Profit distribution
Distribution to shareholders 5(40) - - - - - - (614608368) (614608368)
Special reserve
Withdrawal this period - - - - 10109653 - - 10109653
Used this period - - - - (11667760) - - (11667760)
Balance at 30 June 2025* 863214000 839442490 168909971 (26738000) 3589087 431607000 10188578438 12130783044
* Unaudited financial indexes
Legal representative: Qiu Tiangao CFO: Joey Zhu Finance Department: Hu Hanfeng
6JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
1 General information
Jiangling Motors Corporation Ltd. (hereinafter “the Company”) is a Sino-foreign joint stock
enterprise established under the approval of Hong ban (1992) No. 005 of Nanchang
Revolution and Authorisation Group of Company’s Joint Stock on the basis of Jiangxi
Motors Manufacturing Factory on 16 June 1992. The address of its headquarters is
Nanchang City Jiangxi Province of the People’s Republic of China (“the PRC”).On 23 July 1993 with the approval of the China Securities Regulatory Commission
(hereinafter “CSRC”) (Zheng Jian Fa Shen Zi [1993] No. 22) and (Zheng Jian Han Zi [1993]
No. 86) the Company was listed on the Stock Exchange of Shenzhen on 1 December
1993 issuing 494000000 shares in total. On 8 April 1994 a total of 25214000 shares
were distributed for the 1993 dividend distribution programme with the approval of the
shareholders’ meeting and Jiangxi Securities Management Leading Group (Gan Securities
[1994] No. 02). In 1995 with the approval of CSRC (Zheng Jian Fa Zi [1995] No. 144) and
the Shenzhen Securities Management Office (Shen Zheng Ban Fu [1995] No. 92) the
Company issued 174000000 ordinary shares (“B shares”). In 1998 with the approval of
CSRC (Zheng Jian Guo Zi [1998] No. 19) the Company issued additional 170000000 B
shares.According to the resolution of the shareholders’ meeting regarding the split share structure
reform on 11 January 2006 the Company implemented the Scheme on Split Share
Structure Reform on 13 February 2006. After the implementation the Company’s total paid-
in capital remains the same. Related details are disclosed in Note 5(35).As at 30 June 2025 the Company’s paid-in capital totalled RMB863214000 with par
value of RMB1 per share.The actual principal business scope of the Company and its subsidiaries (hereinafter “theGroup”) includes production and sales of automobile assemblies such as automobiles
special (modified) vehicles engines and chassis and other automobile parts and provision
of related after-sales services; retail and wholesale of imported FORD E series
automobiles of Ford Motor (China) Co. Ltd. as the dealer; import and export of automobiles
and parts; dealership of used cars; provision of enterprise management and consulting
services related to production and sales of automobiles.These financial statements were authorised for issue by the Company's Board of Directors
on 25 August 2025.
2 Basis of preparation of the financial statement
(1) Basis of preparation
The financial statements are prepared in accordance with the Accounting Standard for
Business Enterprises - Basic Standard specific accounting standards and relevantregulations and in subsequent periods (hereinafter collectively referred to as “theAccounting Standards for Business Enterprises” or “CASs”) and the disclosure
requirements in the Preparation Convention of Information Disclosure by Companies
Offering Securities to the Public No.15 - General Rules on Financial Reporting issued by
CSRC.
(2) Going concern
These financial statements have been prepared on a going concern basis.
7JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates
The Group determines specific accounting policies and estimates based on the features of
its production and operation which mainly comprise the measurement of expected credit
losses on receivables valuation of inventories Inventory write-down provision
depreciation of fixed assets and amortisation of intangible assets and right-of-use assets
criteria for capitalisation of development expenditures impairment of long-term assets
recognition and measurement of revenue and government grants etc.
(1) Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for six months ended 30 June 2025 are in
compliance with the Accounting Standards for Business Enterprises and truly and
completely present the consolidated and company’s financial position of the Company as at
30 June 2025 and their financial performance cash flows and other information for the
period then ended.
(2) Accounting year
The Group's accounting year is a calendar year i.e. from 1 January to 31 December each
year.
(3) Functional currency
The base currency of the Company and its subsidiaries and the currency used in the
preparation of these financial statements are RMB. Unless otherwise specified they are
expressed in RMB.
(4) The determination method and selection basis of the material standard followed by financial
statement disclosure
? Significant recovery or reversal of The amount of a single recovery or reversal
allowance for doubtful accounts exceeds 1% of the total amount of various
receivable receivables and is greater than RMB 15 million.Significant prepayments with an The amount of a single prepayment exceeds
aging of over 1 year 10% of the total amount of various prepayments
and is greater than RMB 15 million.Significant construction in progress The budget of a single project exceeds RMB 50
million.Significant non-wholly owned The net assets of the subsidiary account for
subsidiaries more than 5% of the group’s net assets or its
net profit impact reaches 10% or more of the
group’s consolidated net profit.Significant associated companies The carrying value of long-term equity
investment in a single investee exceeds 5% of
the group’s net assets or is greater than RMB
100 million or the investment income/loss under
the equity method accounts for 10% or more of
the group’s consolidated net profit.
8JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(5) Preparation of consolidated financial statements
The scope of consolidation of the consolidated financial statements is determined on a
control basis including the financial statements of the Company and all of its subsidiaries."Subsidiary" refers to the entity controlled by the Company (including the divisible part of
the enterprise and the investee as well as the structured entity controlled by the Company
etc.). An investor can control an investee if and only if the investor has the following three
elements: the investor has authority over the investee; Variable returns for participation in
the investee's related activities; Ability to use power over the investee to influence the
amount of its return.If the accounting policies or accounting periods adopted by the subsidiary are inconsistent
with those adopted by the Company the financial statements of the subsidiary shall be
adjusted as necessary in accordance with the accounting policies and accounting periods
of the Company when preparing the consolidated financial statements. The assets
liabilities equity revenues expenses and cash flows arising from all transactions between
companies within the Group are fully offset at the time of the consolidation.If the current loss shared by the minority shareholders of the subsidiary exceeds the share
of the minority shareholders in the shareholders' equity at the beginning of the period the
balance shall still be offset against the minority shareholders' equity.For subsidiaries acquired through a business combination not under common control the
operating results and cash flows of the acquiree are included in the consolidated financial
statements from the date on which the Group acquires control until the termination of the
Group's control over them. In preparing the consolidated financial statements the financial
statements of subsidiaries are adjusted on the basis of the fair value of the identifiable
assets liabilities and contingent liabilities determined at the date of acquisition.For subsidiaries acquired through a business combination under the same control the
operating results and cash flows of the consolidated party are included in the consolidated
financial statements from the beginning of the current period of consolidation. When
compiling the comparative consolidated financial statements the relevant items of the
previous financial statements are adjusted to be deemed to have existed since the ultimate
controller began to exercise control.If changes in relevant facts and circumstances result in a change in one or more of the
control elements the Group will reassess whether to control the investee.Without loss of control a change in minority shareholders' interests is treated as an equity
transaction.
9JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(6) Cash and cash equivalents
Cash comprises the Group’s cash on hand and deposits that can be readily withdrawn on
demand. Cash equivalents are short-term highly liquid investments that are readily
convertible into known amounts of cash subject to an insignificant risk of changes in value.
(7) Foreign currency translation
The Group translates foreign currency transactions into its functional currency.At the time of initial recognition of a foreign currency transaction the amount in the foreign
currency is converted into the base currency of account using the spot exchange rate on
the date of the transaction but the capital invested by the investor in the foreign currency is
converted at the spot exchange rate on the date of the transaction. At the balance sheet
date the spot exchange rate at the balance sheet date is used for foreign currency
monetary items. The resulting differences in settlement and translation of monetary items
shall be included in profit or loss for the current period except for the differences arising
from special foreign currency borrowings related to the acquisition and construction of
assets eligible for capitalization which shall be treated in accordance with the principle of
capitalization of borrowing costs. Foreign currency non-monetary items measured at
historical cost are still translated using the exchange rate used at the time of initial
recognition and the amount in the base currency of accounting remains unchanged.Foreign currency non-monetary items measured at fair value are translated at the spot
exchange rate on the date of fair value determination and the resulting difference is
recognized in profit or loss or other comprehensive income for the current period according
to the nature of the non-monetary items.Cash flows in foreign currencies are translated using the spot exchange rate on the date of
the cash flows. The effect of exchange rate changes on cash is presented separately in the
statement of cash flows as a reconciliation item.
(8) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity. A financial asset or a financial
liability is recognised when the Group becomes a party to the contractual provisions of the
instrument.
10JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(8) Financial instruments (Cont’d)
(a) Recognition and derecognition of financial instruments
The Group recognises a financial asset or financial liability when it becomes a party to a
contract for a financial instrument.If the following conditions are met the financial assets (or part of the financial assets or
part of a group of similar financial assets) shall be derecognized that is the previously
recognized financial assets shall be transferred out of the balance sheet:
(1) Expiration of the right to receive cash flows from financial assets;
(2) transferred the right to receive cash flows from financial assets or assumed an
obligation under a "transfer agreement" to promptly pay the cash flows received in full to a
third party; and substantially transfers substantially all of the risks and rewards of
ownership of a financial asset or while substantially neither transferring nor retaining
substantially all of the risks and rewards of ownership of a financial asset but relinquishes
control of that financial asset.If the obligation for the financial liability has been fulfilled cancelled or expired the financial
liability is derecognized. If an existing financial liability is replaced by another financial
liability by the same creditor with substantially almost entirely different terms or the terms
of the existing liability are substantially all modified such replacement or modification is
treated as a derecognition of the original liability and recognition of a new liability the
difference in profit or loss for the current period.The purchase and sale of financial assets in the conventional way is recognized and
derecognized according to the accounting of the transaction date. The purchase or sale of
financial assets in a conventional manner means the purchase or sale of financial assets in
accordance with a contract that provides for the delivery of financial assets in accordance
with a schedule normally determined by regulations or market practice. A trading day is the
date on which the Group commits to buy or sell a financial asset.(b) Classification and measurement of financial assets
At the time of initial recognition the Group's financial assets are classified according to the
Group's business model of managing financial assets and the contractual cash flow
characteristics of financial assets: financial assets measured at amortized cost
investments in debt instruments measured at fair value through other comprehensive
income and financial assets measured at fair value through profit or loss. All affected
underlying financial assets will be reclassified if and only when the Group changes its
business model for managing financial assets.Financial assets are measured at fair value at the time of initial recognition but if the
accounts receivable or notes receivable arising from the sale of goods or the provision of
services etc. do not contain a material financing component or do not consider the
financing component of no more than one year the initial measurement shall be carried out
according to the transaction price.For financial assets measured at fair value through profit or loss the relevant transaction
costs are directly recognized in the current profit or loss and the transaction costs related
to other types of financial assets are included in the initial recognition amount.
11JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(8) Financial instruments (Cont’d)
(b) Classification and measurement of financial assets (Cont’d)
The subsequent measurement of a financial asset depends on its classification:
Investments in debt instruments measured at amortized cost
If a financial asset meets the following conditions at the same time it is classified as a
financial asset measured at amortized cost: the business model for managing the financial
asset is to collect contractual cash flows as the goal; The contractual terms of the financial
asset provide that the cash flows generated on a specific date are only payments of
principal and interest based on the amount of principal not paid. Interest income is
recognized using the effective interest rate method for such financial assets and the gains
or losses arising from their derecognition modification or impairment are included in profit
or loss for the current period.Investments in debt instruments at fair value through other comprehensive income
A financial asset is classified as a financial asset measured at fair value through other
comprehensive income if it meets the following conditions: the Group's business model for
managing the financial asset is to collect both contractual cash flows and sell financial
assets; The contractual terms of the financial asset provide that the cash flows generated
on a specific date are only payments of principal and interest based on the amount of
principal not paid. Interest income is recognized for such financial assets using the effective
interest rate method. Except for interest income impairment losses and foreign exchange
differences which are recognized as gains or losses for the current period the remaining
fair value changes are recognized as other comprehensive income. When a financial asset
is derecognized the accumulated gains or losses previously included in other
comprehensive income are transferred out of other comprehensive income and included in
profit or loss for the current period.Financial assets at fair value through profit or loss
The above-mentioned financial assets measured at amortized cost and financial assets
other than those measured at fair value through other comprehensive income are classified
as financial assets measured at fair value through profit or loss. For such financial assets
fair value is used for subsequent measurement and all changes in fair value are
recognized in profit or loss for the current period.(c) Classification and measurement of financial liabilities
At the time of initial recognition the Group's financial liabilities are classified as follows:
financial liabilities at fair value through profit or loss and financial liabilities at amortized
cost. For financial liabilities measured at fair value through profit or loss the relevant
transaction expenses are directly recognized in the current profit or loss and the relevant
transaction costs of the financial liabilities measured at amortized cost are included in their
initial recognition amount.The subsequent measurement of financial liabilities depends on their classification:
12JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(8) Financial instruments (Cont’d)
(c) Classification and measurement of financial liabilities (Cont’d)
Financial liabilities at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss including trading financial
liabilities (including derivatives that are financial liabilities) and financial liabilities
designated at fair value through profit or loss at the time of initial recognition. Trading
financial liabilities (including derivatives that are financial liabilities) are subsequently
measured at fair value and all changes in fair value are recognized in profit or loss for the
current period except in relation to hedge accounting. For financial liabilities designated as
measured at fair value through profit or loss subsequent measurement is carried out at fair
value and other fair value changes are included in profit or loss for the current period
except for the fair value changes caused by changes in the Group's own credit risk which
are included in other comprehensive income. If the inclusion of changes in fair value
caused by changes in the Group's own credit risk into other comprehensive income would
cause or magnify the accounting mismatch in profit or loss the Group will include all
changes in fair value (including the amount affected by changes in its own credit risk) in
profit or loss for the current period.Financial liabilities measured at amortized cost
For such financial liabilities the effective interest rate method is used and the subsequent
measurement is carried out according to the amortized cost.(d) Impairment of financial instruments
Methods for determining expected credit losses and accounting treatment methods
The Group conducts impairment treatment and recognizes loss provisions for financial
assets measured at amortized cost debt instrument investments measured at fair value
with changes recognized in other comprehensive income and lease receivables based on
expected credit losses.For receivables that do not contain significant financing components the Group applies a
simplified measurement method to measure the loss provision based on the expected
credit loss amount equivalent to the entire duration of the receivable.For lease receivables and receivables that contain significant financing components the
Group has chosen to apply a simplified measurement approach measuring the loss
provision based on the expected credit loss amount equivalent to the entire duration of the
receivable.Apart from the aforementioned simplified measurement methods for financial assets the
Group assesses at each reporting date whether the credit risk has significantly increased
since initial recognition. If the credit risk has not significantly increased since initial
recognition it is classified as Stage 1 and the Group measures the loss allowance at an
amount equal to the expected credit losses over the next 12 months calculating interest
income based on the carrying amount and the effective interest rate. If the credit risk has
significantly increased since initial recognition but no credit impairment has occurred it is
classified as Stage 2 and the Group measures the loss allowance at an amount equal to
the expected credit losses over the entire lifetime calculating interest income based on the
carrying amount and the effective interest rate. If credit impairment occurs after initial
recognition it is classified as Stage 3 and the Group measures the loss allowance at an
amount equal to the expected credit losses over the entire lifetime calculating interest
income based on amortized cost and the effective interest rate. For financial instruments
that have only low credit risk at the reporting date the Group assumes that the credit risk
has not significantly increased since initial recognition.
13JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(8) Financial instruments (Cont’d)
(d) Impairment of financial instruments (Cont’d)
The Group's methodology for measuring expected credit losses on financial instruments
reflects factors such as the weighted average amount of unbiased probabilities determined
by evaluating a range of possible outcomes the time value of money and reasonable and
evidence-based information on past events current conditions and projections of future
economic conditions that are available at the balance sheet date without unnecessary
additional cost or effort.The credit risk characteristics of various types of financial assets for which the expected
credit losses are calculated separately are significantly different from those of other
financial assets in this category. When the information of expected credit losses cannot be
assessed at a reasonable cost for a single financial asset the Group divides the
receivables into several portfolios based on the credit risk characteristics calculates the
expected credit losses on the basis of the portfolio and determines the basis and accrual
method of the portfolio as follows:
Banker's Acceptance State-owned banks and joint-stock banks
Portfolio
Commercial Acceptance Customers who purchase using commercial acceptance bills
Bill Portfolio
The domestic general For domestic general automobile procurement customers the
vehicle sales mix overdue date is used as the starting point of overdue aging
Export general vehicle For export general automobile procurement customers the
sales mix overdue date is used as the starting point of overdue aging
New energy vehicle sales For new energy vehicle procurement customers the overdue
mix date is used as the starting point of overdue aging
Component sales mix For parts procurement customers the overdue date is used as
the starting point of overdue aging
Other receivables Other receivables of the same nature
combinations
When the Group no longer reasonably expects to be able to recover all or part of the
contractual cash flows of financial assets the Group directly writes down the carrying
balance of such financial assets.(e) Financial Instrument Offset
If the following conditions are met at the same time the financial assets and financial
liabilities are presented in the balance sheet as net amounts after offsetting each other: they
have the legal right to offset the recognized amount and such legal right is currently
enforceable; The plan is to settle on a net basis or at the same time to realise the financial
asset and settle the financial liability.
14JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(8) Financial instruments (Cont’d)
(f) Derivative financial instruments
The Group uses derivative financial instruments. Derivative financial instruments are
initially measured at the fair value on the date of the signing of the derivative transaction
contract and subsequently measured at their fair value. A derivative financial instrument
with a positive fair value is recognized as an asset and a negative fair value is recognized
as a liability.Except in relation to hedge accounting gains or losses arising from changes in the fair
value of derivatives are directly recognized in profit or loss for the current period.(g) Transfer of financial assets
If the Group has transferred almost all of the risks and rewards in the ownership of
financial assets to the transferee the recognition of such financial assets shall be
terminated; Where almost all of the risks and rewards in the ownership of financial assets
are retained the recognition of the financial assets shall not be terminated.If the Group neither transfers nor retains almost all of the risks and rewards in the
ownership of the financial assets it shall be dealt with in the following cases: if it has
relinquished control of the financial assets the financial assets shall be terminated and the
assets and liabilities arising therefrom shall be recognized; If the financial asset is not
relinquished the relevant financial asset shall be recognized according to the extent to
which it continues to be involved in the transferred financial asset and the relevant
liabilities shall be recognized accordingly.
(9) Inventories
Inventory includes raw materials work-in-progress finished products low-value
consumables materials in transit and consignment materials.Inventory is initially measured at cost. Inventory costs include procurement costs
processing costs and other costs. Inventories are issued and their actual cost is
determined using the weighted average method. Low-value consumables are amortized
using the one-time resale method.The inventory system adopts a perpetual inventory system.At the balance sheet date inventories are measured at the lower of cost and net realizable
value and if the cost is higher than the net realizable value a provision for inventory
decline is made and included in profit or loss for the current period. Net realizable value is
the estimated selling price of inventory in the ordinary course of business less the
estimated costs to be incurred at completion estimated selling expenses and related
taxes. Inventories related to product lines manufactured and sold in the same region with
the same or similar end use or purpose and difficult to measure separately from other
items are provided for inventory decline on a consolidated basis.
15JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(10) Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its
subsidiaries and the Group’s long-term equity investments in its associates.Long-term equity investments are initially measured at the initial investment cost at the time
of acquisition. For a long-term equity investment obtained through a business combination
under the same control the initial investment cost shall be the share of the carrying amount
of the owner's equity of the merged party in the consolidated financial statements of the
ultimate controlling party on the date of consolidation; The difference between the initial
investment cost and the carrying amount of the consolidation consideration shall be
adjusted to the capital reserve (if it is insufficient to offset the retained earnings). For long-
term equity investments obtained through a business combination not under common
control the initial investment cost shall be the cost of the merger (if the business
combination of enterprises not under the same control is realized step by step through
multiple transactions the sum of the carrying amount of the equity investment of the
acquiree held before the purchase date and the cost of the new investment on the
purchase date shall be the initial investment cost). For long-term equity investments
obtained by means other than those formed by business combinations the initial
investment costs shall be determined in accordance with the following methods: if they are
obtained by paying cash the initial investment costs shall be the purchase price actually
paid and the expenses taxes and other necessary expenses directly related to the
acquisition of the long-term equity investment; If the issuance of equity securities is
obtained the fair value of the equity securities issued shall be used as the initial investment
cost.The long-term equity investments that the Company is able to control the investee are
accounted for using the cost method in the Company's individual financial statements.Control refers to having power over the investee enjoying variable returns by participating
in the relevant activities of the investee and having the ability to use the power over the
investee to influence the amount of returns.
16JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(10) Long-term equity investments (Cont’d)
When the cost method is used long-term equity investments are valued at the initial
investment cost. If the investment is increased or recovered the cost of long-term equity
investment shall be adjusted. The cash dividends or profits declared by the investee are
recognized as investment income for the current period.If the Group has a significant influence on the investee the long-term equity investment is
accounted for by the equity method. Significant influence refers to having the power to
participate in decision-making on the financial and operational policies of the investee but
not being able to control or jointly control the formulation of these policies with other parties.When the equity method is adopted if the initial investment cost of a long-term equity
investment is greater than the fair value share of the investee's identifiable net assets at the
time of investment it shall be included in the initial investment cost of the long-term equity
investment; If the initial investment cost of a long-term equity investment is less than the
fair value share of the investee's identifiable net assets at the time of investment the
difference shall be included in the profit or loss for the current period and the cost of the
long-term equity investment shall be adjusted at the same time.When the equity method is adopted after the long-term equity investment is obtained the
investment profit and loss and other comprehensive income shall be recognized separately
and the book value of the long-term equity investment shall be adjusted according to the
share of the net profit or loss and other comprehensive income realized by the investee that
should be enjoyed or shared. When recognizing the share of the investee's net profit or
loss the investee's net profit shall be recognized after adjustment based on the fair value of
the investee's identifiable assets at the time of acquisition of the investment in accordance
with the Group's accounting policies and accounting periods and offsetting the share
attributable to the investor in proportion to the internal transaction gains and losses incurred
with associates (except that if the internal transaction loss is an asset impairment loss it
shall be recognized in full) and the net profit of the investee shall be recognized after
adjustment except that the assets invested or sold constitute business. The carrying
amount of the long-term equity investment shall be reduced accordingly based on the
profits or cash dividends declared by the investee. The Group recognises that the net loss
incurred by the investee is limited to the carrying amount of the long-term equity investment
and other long-term equity that substantially constitutes a net investment in the investee to
be written down to zero unless the Group has the obligation to bear additional losses. For
other changes in shareholders' equity of the investee other than net profit or loss other
comprehensive income and profit distribution the book value of long-term equity
investment shall be adjusted and included in shareholders' equity.
17JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(11) Fixed assets
Fixed assets are recognised only when the economic benefits associated with them are
likely to flow into the Group and their costs can be reliably measured. Subsequent
expenses related to fixed assets that meet the recognition conditions shall be included in
the cost of fixed assets and the book value of the replaced part shall be derecognized;
Otherwise it will be included in the current profit or loss or the cost of related assets
according to the beneficiary object when it occurs.Fixed assets are initially measured at cost. The cost of acquiring a fixed asset includes the
purchase price relevant taxes and other expenses directly attributable to the asset
incurred before the fixed asset reaches its intended useable state.The depreciation of fixed assets is calculated using the average life method and the useful
life estimated net residual value rate and annual depreciation rate of various types of fixed
assets are as follows:
Estimated net
residual Annual depreciation
Estimated useful lives values rates
Buildings 35 to 40 years 4% 2.4% to 2.7%
Machinery and
equipment 10 to 15 years 4% 6.4% to 9.6%
Vehicles 2 to 10 years 4% to 22.32% 9.6% to 42.2%
Moulds 5 years - 20%
Electronic and other
equipment 5 to 7 years 4% 13.7% to 19.2%
The estimated useful life and the estimated net residual value of a fixed asset and the
depreciation method applied to the asset are reviewed and adjusted as appropriate at each
year-end.
(12) Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction
costs installation costs borrowing costs that are eligible for capitalisation and other costs
necessary to bring the construction in progress ready for their intended use. Construction in
progress is transferred to fixed assets when the assets are ready for their intended use
and depreciation is charged starting from the following month. The carrying amount of
construction in progress is reduced to the recoverable amount when the recoverable
amount is below the carrying amount (Note 3(15)).The criteria for transferring construction in progress to fixed assets when they reach their
intended usable state are as follows:
The earlier of completion acceptance or actual
Buildings commencement of use.The earlier of completion of installation and
Machinery and equipment acceptance or actual commencement of use.The earlier of completion of installation and
Vehicles acceptance or actual commencement of use.The earlier of completion of installation and
Moulds acceptance or actual commencement of use.The earlier of completion of installation and
Electronic and other equipment acceptance or actual commencement of use.
3 Summary of significant accounting policies and accounting estimates (Cont’d)
18JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(13) Borrowing costs
The borrowing costs that can be directly attributable to the acquisition construction or
production of assets that meet the conditions for capitalization shall be capitalized and
other borrowing costs shall be included in the profit or loss for the current period.Borrowing costs are capitalized when capital expenditures and borrowing costs have been
incurred and the acquisition construction or production activities necessary to bring the
asset to its intended usable or marketable condition have commenced.When the acquisition construction or production of assets eligible for capitalization reaches
the intended usable or saleable state the borrowing costs shall cease to be capitalized.Borrowing costs incurred thereafter are included in profit or loss for the current period.During the capitalization period the amount of interest capitalization in each accounting
period shall be determined according to the following method: the amount of special
borrowings shall be determined by deducting the interest income or investment income of
temporary deposits actually incurred in the current period; The general borrowings
occupied shall be calculated and determined on the basis of the weighted average of the
accumulated asset expenditures exceeding the portion of special borrowings multiplied by
the weighted average real interest rate of the general borrowings occupied.In the process of acquisition construction or production of assets eligible for capitalization
if there is an abnormal interruption other than the procedures necessary to reach the
intended usable or saleable state and the interruption period exceeds 3 consecutive
months the capitalization of borrowing costs shall be suspended. Borrowing costs incurred
during the interruption period are recognized as expenses and are included in profit or loss
for the current period until the acquisition or construction of assets or production activities
resume.
(14) Intangible assets
(a) Useful life of intangible assets
Intangible assets are amortized using the straight-line method over their useful lives and
their useful lives are as follows:
Estimated useful lives Basis for determination
Land use rights 50 years The term of the land use right
Software Usage Fees 5 years Estimated period of use
Non-patented 5-7 years Estimated period of use combinedtechnology with the product life span
19JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(14) Intangible assets (Cont’d)
(b) Research and development
The Group's R&D expenditure mainly includes the materials used by the Group in carrying out
R&D activities the remuneration of employees in the R&D department the depreciation and
amortization of assets such as equipment and software used in R&D R&D design expenses
and R&D testing.The expenses in the planned investigation evaluation and selection stages for the study of
the production process of automobile-related products are the expenses in the research stage
and are included in the profit or loss for the current period when incurred; Before large-scale
production the expenditure in the design and testing stages related to the final application of
the production process of automobile-related products is the expenditure in the development
stage and if the following conditions are met it shall be capitalized:
* The development of the production process of automobile-related products has been
fully demonstrated by the technical team;
* The management has the intention to complete the development use or sale of the
production process of automotive-related products;
* The research and analysis of the preliminary market research shows that the products
produced by the production process of automobile-related products have the ability to
be marketed;
* Sufficient technical and financial support for the development of production processes
for automotive-related products and subsequent large-scale production; and
* Expenditures on the development of production processes for automotive-related
products can be reliably aggregated.Expenses in the development stage that do not meet the above conditions shall be
included in the profit or loss for the current period when incurred. Development
expenditures that have been recognized in profit or loss in prior periods are not
rerecognized as assets in subsequent periods. Expenditures incurred in the development
phase that have been capitalized are shown on the balance sheet as development
expenditures and are converted into intangible assets from the date on which the project
reaches its intended use.
20JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(15) Impairment of assets
The impairment of assets other than inventories deferred income tax and financial assets
shall be determined according to the following methods: whether there are signs of
possible impairment of assets at the balance sheet date and if there are signs of
impairment the Group will estimate the recoverable amount and conduct impairment tests;
Impairment tests shall be carried out at least at the end of each period for goodwill formed
as a result of business combinations intangible assets with indefinite useful lives and
intangible assets that have not yet reached a usable state regardless of whether there is
any indication of impairment.The recoverable amount is determined based on the higher of the fair value of the asset
less disposal costs and the present value of the asset's projected future cash flows. The
Group estimates its recoverable amount on a single asset basis; Where it is difficult to
estimate the recoverable amount of a single asset the recoverable amount of the asset
group shall be determined on the basis of the asset group to which the asset belongs. The
determination of the asset group is based on whether the main cash inflow generated by
the asset group is independent of other assets or the cash inflow of the asset group.When the recoverable amount of an asset or asset group is lower than its carrying amount
the Group writes down its carrying amount to the recoverable amount and the written down
amount is included in the profit or loss for the current period and the corresponding asset
impairment provision is made.For the impairment test of goodwill the carrying amount of goodwill is allocated to the
relevant asset group or combination of asset groups in a reasonable manner from the date
of purchase. The relevant asset group or combination of asset groups is the asset group or
combination of asset groups that can benefit from the synergies of the business
combination and is not larger than the operating segment determined by the Group.Compare the carrying amount and recoverable amount of the asset group or asset group
combination containing goodwill if the recoverable amount is lower than the book value
the impairment loss amount shall first be offset against the carrying amount of the goodwill
allocated to the asset group or asset group combination and then the carrying amount of
other assets shall be offset proportionally according to the proportion of the carrying
amount of other assets in the asset group or asset group portfolio except goodwill.Once the above-mentioned asset impairment loss is recognized it will not be reversed in
subsequent accounting periods.
21JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(16) Employee compensation
Employee remuneration refers to various forms of remuneration or compensation given by
the Group for the services provided by employees or for the termination of employment
relations including short-term remuneration post-employment benefits and severance
benefits.(a) Short-term compensation
Short-term remuneration includes wages bonuses allowances and subsidies employee
welfare expenses medical insurance premiums work-related injury insurance premiums
housing provident fund trade union and education funds short-term paid absences etc.During the accounting period in which employees provide services the Group recognises
the actual short-term remuneration as a liability and includes it in the profit or loss for the
current period or the cost of related assets. Among them non-monetary benefits are
measured at fair value.(b) Post-employment benefits
The Group classifies post-employment benefit plans into defined contribution plans and
defined benefit plans. A defined deposit and withdrawal plan is a post-employment benefit
plan in which the Group is no longer obligated to make further payments after depositing a
fixed fee into an independent fund; A defined benefit plan is a post-employment benefit
plan in addition to a defined contribution plan. During the reporting period the basic
endowment insurance and unemployment insurance paid for employees were all part of
the set deposit plan. Supplemental retirement benefits for employees are defined benefit
plans.(i) Defined contribution plans
Basic pensions
The Group’s employees participate in the basic pension plan set up and administered by
local authorities of Ministry of Human Resources and Social Security. Monthly payments of
premiums on the basic pensions are calculated according to the bases and percentage
prescribed by the relevant local authorities. When employees retire the relevant local
authorities are obliged to pay the basic pensions to them. The amounts based on the
above calculations are recognised as liabilities in the accounting period in which the
service has been rendered by the employees with a corresponding charge to the profit or
loss for the current period or the cost of relevant assets.
22JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(16) Employee compensation (Cont’d)
(ii) Defined benefit plans
The Group also provides employees with supplementary retirement benefits in addition to
the insurance system prescribed by the State. Such supplementary retirement benefits
belong to defined benefit plans. The defined benefit liabilities recognised on the balance
sheet represent the present value of defined benefit obligations less the fair value of the
plan assets. The defined benefit obligations are calculated annually by an independent
actuary using projected unit credit method at the interest rate of treasury bonds with similar
obligation term and currency. Service costs related to supplementary retirement benefits
(including current service costs historical service costs and settled gains or losses) and net
interest are recognised in profit or loss for the current period or the cost of related assets
and changes arising from remeasurement of net liabilities or net assets of defined benefit
plans are recognised in other comprehensive income.(c) Termination benefits
The Group provides compensation for terminating the employment relationship with
employees before the end of the employment contracts or as an offer to encourage
employees to accept voluntary redundancy before the end of the employment contracts.The Group recognises a liability arising from compensation for termination of the
employment relationship with employees with a corresponding charge to profit or loss for
the current period at the earlier of the following dates: 1) when the Group cannot unilaterally
withdraw an employment termination plan or a curtailment proposal; 2) when the Group
recognises costs or expenses for a restructuring that involves the payment of termination
benefits.Internal retirement benefits
The Group provides internal retirement benefits to employees who have received internal
retirement arrangements. Internal retirement benefits refer to the wages paid and social
insurance premiums paid to employees who have not reached the retirement age
prescribed by the state and who have voluntarily quit their jobs with the approval of the
Group's management. The Group pays internal retirement benefits to employees from the
date of commencement of the internal retirement arrangement until the employees reach
the normal retirement age. For the internal retirement benefits the Group will account for
the retirement benefits by comparison and when the conditions for the recognition of the
retirement benefits are met the wages and social insurance premiums to be paid by the
employees during the period from the date of cessation of the employee's services to the
normal retirement date will be recognized as liabilities and included in the profit or loss for
the current period in a lump sum. Changes in actuarial assumptions for retirement benefits
and differences caused by adjustments to benefit standards are recognized in profit or loss
for the current period when they occur.Severance benefits expected to be paid within one year from the balance sheet date are
shown as remuneration payable to employees.
23JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(17) Provisions
Provisions for product warranties compensation to suppliers etc. are recognised when the
Group has a present obligation it is probable that an outflow of economic benefits will be
required to settle the obligation and the amount of the obligation can be measured reliably.A provision is initially measured at the best estimate of the expenditure required to settle
the related present obligation. Factors on a contingency such as the risks uncertainties
and the time value of money are taken into account as a whole in reaching the best
estimate of a provision. Where the effect of the time value of money is material the best
estimate is determined by discounting the related future cash outflows. The increase in the
discounted amount of the provision arising from passage of time is recognised as interest
expense.The carrying amount of provisions is reviewed at each balance sheet date and adjusted to
reflect the current best estimate.The provisions expected to be settled within one year since the balance sheet date are
classified as other current liabilities.
(18) Revenue
The Group sells automobiles and automobile parts to distributors or end customers. In
addition the Group also provides customers with auto maintenance and additional quality
warranty services. The Group recognises revenue at the amount of the consideration that is
entitled to be charged by the Group as expected when the customer obtains control over
relevant goods or services.Where two or more obligations are included in a contract between the Group and the
customers at the beginning date of the contract the Group allocates the transaction price
to individual obligation in the relative proportion to the individual selling prices of products
or services committed in each individual obligation. When the individual selling price is
unobservable the Group makes reasonable estimates on the individual selling price with
comprehensive consideration to all available information and by using market adjustment
method cost plus method etc.(a) Sale of automobiles and automobile parts to distributors and end customers
The Group sells automobiles and automobile parts to distributors and end customers.According to the contract the delivery is completed after the products are delivered at the
contracted delivery location and acceptance by both parties. The Group recognises the
revenue at the timing of delivery completion.The credit periods granted by the Group to distributors and end customers are generally
within one year which is consistent with the industry practice and there is no significant
financing component. The Group provides product warranties for automobiles and
automobile parts as required by laws and regulations and recognises the corresponding
provisions (Note 3(17)).The Group provides distributors and end customers with sales discounts based on sales
volume and related revenue is recognised at contract consideration net of the discount
amount estimated based on historical experience and using the expected value method.
24JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(18) Revenue (Cont’d)
(b) Rendering of services
The Group provides customers with automobile transportation automobile maintenance
and additional quality warranty services and the revenue is recognised based on the
progress of service provision within a certain period. According to the nature of the service
provided the performance progress is determined in accordance with the value of the
labour provided to the customer.When the Group recognises revenue based on the stage of completion the amount with
unconditional collection right obtained by the Group is recognised as accounts receivable
and the rest is recognised as contract assets. Meanwhile loss provision for accounts
receivable is recognised on the basis of ECL (Note 3(8)). If the contract price received or
receivable exceeds the amount for the completed service the excess portion will be
recognised as contract liabilities. Contract assets and contract liabilities under the same
contract are presented on a net basis.
(19) Government grants
Government subsidies are recognized when the conditions attached to them can be met
and can be received. If the government subsidy is a monetary asset it shall be measured
according to the amount received or receivable. If the government subsidy is a non-
monetary asset it shall be measured at fair value; If the fair value cannot be reliably
obtained it shall be measured according to the nominal amount.If the government documents stipulate that it is used for the acquisition construction or
other formation of long-term assets it shall be regarded as a government subsidy related to
the assets; If the government documents are not clear the judgment shall be made on the
basis of the basic conditions that must be met to obtain the subsidy and the basic condition
of the formation of long-term assets through acquisition construction or other means shall
be regarded as the government subsidy related to the assets and the other shall be
regarded as the government subsidy related to the income.If the government subsidy related to the income is used to compensate for the relevant
costs expenses or losses in subsequent periods it shall be recognized as deferred income
and shall be included in the profit or loss for the current period or offset the relevant costs in
the period in which the relevant costs expenses or losses are recognized; If it is used to
compensate for the relevant costs expenses or losses that have been incurred it shall be
directly included in the profit or loss for the current period or offset the relevant costs.
25JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(19) Government grants (Cont’d)
Asset-related government subsidies to offset the carrying amount of the underlying assets;
or recognized as deferred income which shall be included in profit or loss in instalments in
a reasonable and systematic manner during the useful life of the relevant asset (except that
the government subsidy measured according to the nominal amount shall be directly
included in the profit or loss for the current period) and if the relevant asset is sold
transferred scrapped or damaged before the end of its useful life the balance of the
relevant deferred income that has not yet been distributed shall be transferred to the profit
or loss of the current period of asset disposal.If the finance department allocates the subsidized funds to the lending bank and the
lending bank provides loans to the Group at a preferential policy interest rate the actual
amount of the borrowed money received shall be used as the recorded value of the
borrowing and the relevant borrowing costs shall be calculated according to the principal of
the loan and the preferential interest rate of the policy.
(20) Deferred income tax
The Group adopts the balance sheet obligation method to provide deferred income tax
based on the temporary differences between the carrying amount of assets and liabilities at
the balance sheet date and the tax base as well as the difference between the carrying
amount and the tax basis of items that are not recognized as assets and liabilities but
whose tax basis can be determined in accordance with the provisions of the tax law.Deferred tax liabilities are recognized for all kinds of taxable temporary differences unless:
* A taxable temporary difference arises in the following transactions: the initial
recognition of goodwill or the initial recognition of assets or liabilities arising in a single
transaction that is not a business combination the transaction occurs that does not
affect neither the accounting profit nor the taxable income or deductible loss and the
assets and liabilities initially recognized do not result in the creation of an equal
amount of taxable temporary differences and deductible temporary differences;
* For taxable temporary differences related to investments in subsidiaries and
associates the timing of the reversal of the temporary difference is controllable and
the temporary difference is likely not to be reversed in the foreseeable future.For deductible temporary differences deductible losses and tax credits that can be carried
forward to future periods the Group recognises deferred tax assets to the extent that it is
likely to obtain future taxable income to offset the deductible temporary differences
deductible losses and tax credits unless:
* A deductible temporary difference arises in a single transaction that is not a business
combination the transaction does not affect the accounting profit or taxable income or
deductible loss at the time of the transaction and the assets and liabilities initially
recognized do not result in the creation of an equal amount of taxable temporary
difference and a deductible temporary difference;
* For deductible temporary differences related to investments in subsidiaries and
associates the temporary differences are likely to be reversed in the foreseeable
future and taxable income to be used to offset the temporary differences is likely to be
obtained in the future.
26JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(20) Deferred income tax (Cont’d)
The Group's deferred tax assets and deferred tax liabilities are measured at the applicable
tax rate during the period in which the assets are expected to be recovered or the liabilities
are liquidated in accordance with the provisions of the tax law and reflect the income tax
impact of the expected recovery of assets or the settlement of liabilities at the balance
sheet date.At the balance sheet date the Group reviews the carrying amount of deferred tax assets
and writes down the carrying amount of deferred tax assets if it is likely that sufficient
taxable income will not be available in future periods to offset the benefits of deferred tax
assets. At the balance sheet date the Group re-evaluates the unrecognised deferred tax
assets to the extent that it is likely to obtain sufficient taxable income to be able to reverse
all or part of the deferred tax assets.Deferred tax assets and deferred tax liabilities are presented on a net basis when the
following conditions are met: they have the legal right to settle current income tax assets
and current income tax liabilities on a net basis; Deferred tax assets and deferred tax
liabilities are related to the income tax levied by the same tax collection and administration
department on the same taxable entity.
(21) Leases
At the commencement date of the contract the Group assesses whether the contract is a
lease or an included lease and if a party to the contract relinquishes the right to control the
use of one or more identified assets for a certain period of time in exchange for
consideration the contract is a lease or a included lease.(a) As the lessee
In addition to short-term leases and leases of low-value assets the Group recognises right-
of-use assets and lease liabilities for leases.If the contract includes both lease and non-lease parts the Group shall apportion the
contract consideration according to the relative proportion of the individual prices of each
part.At the commencement date of the lease term the Group recognises its right to use the
leased asset during the lease term as a right-of-use asset which is initially measured at
cost. The cost of a right-of-use asset includes: the initial measurement amount of the lease
liability; the amount of the lease payment paid on or before the start date of the lease term
(less the amount in relation to the lease incentive received); Initial direct expenses incurred
by the lessee; The costs that the lessee expects to incur in order to dismantle and remove
the leased asset restore the premises on which the leased asset is located or restore the
leased asset to the condition agreed in the terms of the lease. If the Group remeasures
lease liabilities due to changes in lease payments the carrying amount of right-of-use
assets will be adjusted accordingly. Subsequently the Group adopted the average life
method to provide depreciation for right-of-use assets. If it can be reasonably determined
that the ownership of the leased assets will be acquired at the end of the lease term the
Group shall accrue depreciation during the remaining useful life of the leased assets. If it is
not reasonably certain that the ownership of the leased assets can be obtained at the end
of the lease term the Group shall accrue depreciation during the period between the lease
term and the remaining useful life of the leased assets.
27JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(21) Leases (Cont’d)
At the commencement date of the lease term the Group recognises the present value of
the outstanding lease payments as lease liabilities excluding short-term leases and leases
of low-value assets. Lease payments include fixed payments and substantial fixed
payments net of lease incentives variable lease payments depending on the index or ratio
expected payments based on the residual value of the guarantee and the exercise price of
the purchase option or the exercise of the termination option provided that the Group
reasonably determines that the option will be exercised or the lease term reflects that the
Group will exercise the lease termination option. Variable lease payments that are not
included in the measurement of lease liabilities are recognized in profit or loss for the
current period when actually incurred unless otherwise specified in the cost of the relevant
assets. The Group remeasures lease liabilities based on the present value of the changed
lease payments when there is a change in the amount of the real fixed payment a change
in the estimated amount payable for the residual value of the guarantee a change in the
index or ratio used to determine the amount of the lease payment and a change in the
evaluation result or actual exercise of the option to purchase renew or terminate the
option.The Group recognises a lease with a lease term of not more than 12 months and without a
purchase option as a short-term lease on the commencement date of the lease term; When
a single leased asset is a brand new asset a lease with a lower value is recognized as a
lease of a low-value asset. The Group chooses not to recognise right-of-use assets and
lease liabilities for short-term leases and leases of low-value assets. The cost of the
relevant asset or current profit or loss is recognized on a straight-line basis for each period
of the lease term.(b) As the lessor
Leases that transfer substantially all of the risks and rewards associated with ownership of
the leased assets at the lease commencement date are finance leases and all other
leases are operating leases.The rental income from operating leases is recognized as profit or loss for the current
period on a straight-line basis for each period of the lease term and the variable lease
payments that are not included in the lease receipts are recognized in the profit or loss for
the current period when actually incurred. Initial direct expenses are capitalised and
amortized over the lease term on the same basis as rental income recognition and are
included in profit or loss for the current period.On the commencement date of the lease term the Group recognized the financial lease
receivables for the financial lease and terminated the recognition of the financial lease
assets. When the Group initially measures the financial lease receivables the net lease
investment is used as the recorded value of the financial lease receivables. Net lease
investment is the sum of the unsecured residual value and the present value of lease
receipts not yet received at the start date of the lease term discounted at the interest rate
embedded in the lease including initial direct costs. The Group calculates and recognises
interest income for each period of the lease term at a fixed periodic interest rate. Variable
lease payments made by the Group that are not included in the measurement of net lease
investments are recognized in profit or loss for the current period when they are actually
incurred.
28JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(22) Safety production fee
The safety production fee withdrawn in accordance with the regulations shall be included in
the cost of the relevant product or the current profit or loss and shall be included in the
special reserve; When using distinguish whether fixed assets are formed and deal with
them separately: if it is an expense expenditure it will directly offset the special reserves; If
fixed assets are formed the expenses incurred shall be collected and the fixed assets shall
be recognized when they reach the intended usable state and the equivalent special
reserves shall be written off and the equivalent accumulated depreciation shall be
recognized.
(23) Fair value measurement
Assets and liabilities measured or disclosed at fair value in the financial statements are
determined based on the lowest level of inputs that are material to the fair value
measurement as a whole: Level 1 inputs which are unadjusted quotes in active markets for
the same assets or liabilities that can be obtained at the measurement date; Level 2 inputs
which are directly or indirectly observable inputs for related assets or liabilities other than
Level 1 inputs; The third level of input value the unobservable input value of the relevant
asset or liability.At each balance sheet date the Group re-evaluates the assets and liabilities recognized in
the financial statements at fair value on an ongoing basis to determine whether there is a
transition between the levels of fair value measurement.
(24) Critical accounting estimates and judgements
The preparation of financial statements requires management to make judgments
estimates and assumptions that affect the amounts and disclosures of income expenses
assets and liabilities as well as the disclosure of contingent liabilities at the balance sheet
date. The results of these uncertainties in assumptions and estimates may result in
significant adjustments to the carrying amounts of the assets or liabilities affected in the
future.(a) Critical judgements in applying the accounting policies
In applying the Group's accounting policies management has made the following
judgments that have a material impact on the amounts recognized in the financial
statements:
Business model
The classification of financial assets at the time of initial recognition depends on the
Group's business model for managing financial assets and in determining the business
model the Group considers the manner in which the performance of financial assets is
evaluated and reported to key management personnel the risks affecting the performance
of financial assets and how they are managed and the manner in which relevant business
managers are remunerated. In assessing whether the objective is to collect contractual
cash flows the Group needs to analyze and determine the reason timing frequency and
value of the sale of financial assets before the maturity date.
29JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(24) Critical accounting estimates and judgements (Cont’d)
Characteristics of contractual cash flows
The classification of financial assets at the time of initial recognition depends on the
contractual cash flow characteristics of the financial assets and it is necessary to
determine whether the contractual cash flows are only the payment of principal and interest
based on the outstanding principal whether there is a significant difference compared with
the benchmark cash flow when the time value of money is included in the assessment of
the time value of money and whether the fair value of the prepayment feature is very small
in the case of financial assets containing prepayment features.Judgment of a significant increase in credit risk and credit impairment that has occurred
In distinguishing the different stages of financial instruments the Group's judgment on the
significant increase in credit risk and the credit impairment that has occurred is as follows:
The Group's main criteria for judging a significant increase in credit risk are that the number
of overdue days exceeds 30 days or there is a significant change in one or more of the
following indicators: the debtor's business environment internal and external credit ratings
significant changes in actual or expected operating results and a significant decline in the
value of collateral or the credit rating of the guarantor that will affect the probability of
default.The Group's main criteria for judging that credit impairment has occurred are that the
number of overdue days exceeds 90 days (i.e. default has occurred) or one or more of the
following conditions are met: the debtor has significant financial difficulties undergoes other
debt restructuring or is likely to go bankrupt.?
(b) Uncertainty in the estimate
The following are key assumptions about the future at the balance sheet date and other key
sources of uncertainty in the estimates that may result in significant adjustments to the
carrying amounts of assets and liabilities in future periods.Impairment of financial instruments
The Group uses an expected credit loss model to assess the impairment of financial
instruments and the application of the expected credit loss model requires significant
judgment and estimation taking into account all reasonable and substantiated information
including forward-looking information. In making these judgments and estimates the Group
inferred the expected changes in the debtor's credit risk based on historical repayment data
combined with economic policies macroeconomic indicators industry risks and other
factors. Different estimates may affect the provision for impairment and the provision for
impairment may not be equal to the actual amount of impairment losses in the future.
30JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(24) Critical accounting estimates and judgements (Cont’d)
Impairment of non-current assets other than financial assets (other than goodwill)
The Group determines whether there is any indication of possible impairment of non-
current assets other than financial assets at the balance sheet date. For intangible assets
with an indefinite useful life in addition to the impairment test conducted annually when
there are signs of impairment the impairment test is also conducted. Other non-current
assets other than financial assets are tested for impairment when there are indications
that their book value is not recoverable. Impairment occurs when the carrying amount of an
asset or group of assets is higher than the recoverable amount i.e. the higher of the fair
value less disposal costs and the present value of the projected future cash flows. The fair
value net of disposal costs is determined by reference to the agreed sale price or
observable market price of a similar asset in an arm's length transaction less incremental
costs directly attributable to the disposal of the asset. When estimating the present value of
future cash flows management must estimate the projected future cash flows of the asset
or group of assets and select an appropriate discount rate to determine the present value of
future cash flows.Development expenditures
When determining the amount to be capitalized management must make assumptions
regarding the estimated future cash flows of the asset the applicable discount rate and the
expected benefit period.Deferred tax assets
To the extent that there is likely to be sufficient taxable income to cover the deductible loss
deferred tax assets should be recognised for all unutilised deductible losses. This requires
management to use a great deal of judgment to estimate the timing and amount of taxable
income to be obtained in the future combined with a tax planning strategy to determine the
amount of deferred tax assets to be recognized.Warranty
For a portfolio of contracts with similar characteristics the Group makes a reasonable
estimate of the warranty rate based on historical warranty data current warranty situation
and all relevant information such as product improvement and market changes. The
estimated warranty rates may not be equal to the actual future warranty rates and the
Group has re-evaluated the warranty rates at least at each balance sheet date and
determined the projected liabilities based on the re-assessed warranty rates.
31JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Taxation
(1) The main categories and rates of taxes applicable to the Group are set out below:
Category Taxation basis Tax rate
Value-added tax The difference between the sales amount and 13% 9% and
(“VAT”) the output tax calculated at the applicable tax 6%
rate after deducting the input tax amount for
which the credit is granted
Consumption tax Taxable sales amount 9% 5% and
3%
City maintenance and The payment amount of VAT and consumption 7% and 5%
construction tax tax
Enterprise income tax Taxable income 25% and 15%
(2) Tax preference
According to the relevant regulations of the national high-tech certification and related
preferential tax policies the company has passed the certification of high-tech enterprises in
2024 and is valid for three years. The corporate income tax rate applicable to the Company
in the six months ended 30 June 2025 is 15% (the six months ended 30 June 2024：15%).As at 30 June 2025 except for the Company the Company’s wholly-owned companies
including JMC Heavy Duty Vehicle Co. Ltd. (“JMCH”) Jiangling Motor Sales Co. Ltd.(“JMCS”) Shenzhen Fujiang New Energy Automobile Sales Co. Ltd. (“SZFJ”) Guangzhou
Fujiang New Energy Automobile Sales Co. Ltd. (“GZFJ”) and Jiangling Ford Automobile
Technology (Shanghai) Co. Ltd. (“Jiangling Ford (Shanghai)”) were subject to the
enterprise income tax at the rate of 25% (the six months ended 30 June 2024：25%).Pursuant to the Announcement on Clarifying the Additional Value-added Tax Credit Policy
for the Advanced Manufacturing Enterprises (Cai Shui [2023] No. 43) jointly issued by the
Ministry of Finance and the State Taxation Administration the Company as an advanced
manufacturing enterprise from January 1 2023 to December 31 2027 the Company will
add 5% of the deductible input tax for the current period to offset the VAT payable.
32JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements
(1) Cash at bank and on hand
30 June 2025 31 December 2024
Cash at bank 10420513196 11067571593
Cash at finance company (a) (Note
8(6))13604906331407604416
Other cash and cash equivalents (b) 8856058 18692687
Interest receivable 50590361 52427194
1184045024812546295890
(a) As at 30 June 2025 the group's bank deposit with Jiangling Automobile Group Finance Co
Ltd. was RMB1360490633. The Group's bank deposits placed with Jiangling Motor
Group Finance Company Limited(“JMCF”) bear interest at the bank's annual interest rate of
0.85%-1.55% (31 December 2024: 1.35%-2.25%) on RMB deposits for the same period.
JMCF a holding subsidiary of Jiangling Motors Group Co. Ltd (“JMCG”) is a non-banking
financial institution. JMCG holds 50% equity capital of Nanchang Jiangling Investment Co.Ltd. (“JIC”) a main shareholder of the Company.(b) Other cash and cash equivalents of RMB 8856058 (31 December 2024： 18692687)
were the frozen funds of the Group's litigation.
(2) Derivative financial assets
30 June 2025 31 December 2024
Derivative financial assets -
Forward exchange contracts 4568083 12612380
33JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(3) Notes receivable
30 June 2025 31 December 2024
Trade acceptance notes 570399 226932
Less: Provision for bad debts (86) (67)
570313226865
(a) As at 30 June 2025 there were no notes receivable pledged.(b) Provision for bad debts
For notes receivable arising from sales of goods and rendering of services in the ordinary
course of operating activities the Group measures the loss provision based on the lifetime
ECL regardless of whether there is a significant financing component.The provision for bad debts of notes receivable is analysed by category as follows:
30 June 2025
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
grouping basis (i) 570399 100% 86 0.02%
31 December 2024
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
grouping basis (i) 226932 100% 67 0.03%
(i) Notes receivable for which the provision for bad debts is provided on the grouping basis are
analysed as follows:
Grouping - Trade acceptance notes:
As at 30 June 2025 the Group’s provision for bad debts for trade acceptance notes of the
grouping was measured based on the lifetime ECL and the related amount was RMB86
(31 December 2024: RMB67) of which RMB19 was accrued As at 30 June 2025 .
(ii) There was no provision for bad debts actually written off during the period.
34JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(4) Accounts receivable
30 June 2025 31 December 2024
Accounts receivable 5806454271 4299293681
Less: Provision for bad debts (120596556) (118285447)
56858577154181008234
(a) The aging of accounts receivable was analysed as follows:
30 June 2025 31 December 2024
Within 1 year 5674116013 4168893653
1 to 2 years 5821338 1812248
Over 2 years 126516920 128587780
58064542714299293681
As at 30 June 2025 accounts receivable with individually significant amounts and aged
over three years were analyzed as follows:
Balance Reasons and risk of collection
Company 1 66796993 As the debtor had difficulties in operation and
was involved in several lawsuits the Group
considered that the receivable was difficult to be
recovered and therefore a provision for bad
debts had been made in full.Company 2 37924214 The Group considered that the new energy
subsidy amount was difficult to be recovered
from relevant subsidy distribution departments
over a long period of time and therefore a
provision for bad debts had been made in full.Company 3 13874400 Due to the cash flow arrangement of the debtor
the accounts receivable had a long aging but the
debtor has a good historical collection situation
and still has normal business dealings with the
Group and the Group considered that the
receivables were likely to be recovered so a
provision for bad debts was made in the
grouping - sales of general automobiles.
35JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(4) Accounts receivable (Cont’d)
(b) As at 30 June 2025 the top five accounts receivable ranked by the balances of the debtors
are analysed as follows:
Amount of provision % of total
Balance for bad debts balance
The total accounts receivable of
the top five balances 4398524799 75277591 75.75%
(c) Provision for bad debts
For accounts receivable the Group measures the loss provision based on the lifetime ECL
regardless of whether there is a significant financing component.The provision for bad debts of accounts receivable was analysed by category as follows:
30 June 2025
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 104721207 2% 104721207 100.00%
Provision for bad debts on the
grouping basis (ii) 5701733064 98% 15875349 0.28%
5806454271100%1205965562.08%
31 December 2024
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 104721207 2% 104721207 100.00%
Provision for bad debts on the
grouping basis (ii) 4194572474 98% 13564240 0.32%
4299293681100%1182854472.75%
(i) Accounts receivable for which the provision for bad debts was provided on the individual
basis were analysed follows:
30 June 2025
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
New energy subsidies
receivable 37924214 100% 37924214
Receivables for
automobiles 66796993 100% 66796993
104721207104721207
36JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(4) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(i) Accounts receivable for which the provision for bad debts is provided on the individual
basis are analysed follows (Cont’d):
31 December 2024
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
New energy subsidies
receivable 37924214 100% 37924214
Receivables for
automobiles 66796993 100% 66796993
104721207104721207
As at 30 June 2025 The Group assessed the expected credit losses on the related
accounts receivable the Group considered the receivables cannot be collected therefore
full provision was made for those receivables. The related amount was
RMB104721207(31 December 2024: RMB104721207) no impact on profit or loss for
the current period (the six months ended 30 June 2024: no impact on profit or loss for the
current period) .(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows:
Grouping - Domestic sales of general automobiles:
30 June 2025
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 1292095722 0.02% 194061
Overdue for 1 to 30 days 23237765 0.48% 110893
Overdue for 31 to 60 days 9348928 1.19% 111090
Overdue for 61 to 90 days 7439342 2.52% 187831
Overdue over 90 days 23969449 9.00% 2157250
13560912062761125
37JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(4) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows (Cont’d):
Grouping - Domestic sales of general automobiles:
31 December 2024
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 812797881 0.03% 241763
Overdue for 1 to 30 days 109449671 0.55% 600056
Overdue for 31 to 60 days 5621317 0.99% 55441
Overdue for 61 to 90 days 4434000 2.50% 110948
Overdue over 90 days 25539010 9.00% 2298511
9578418793306719
Grouping - Export sales of general automobiles:
30 June 2025
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 4085275267 0.20% 8170551
31 December 2024
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 2933133292 0.20% 5866267
Grouping - Sales of new energy automobiles:
30 June 2025
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Overdue over 90 days 4122180 80.00% 3297744
31 December 2024
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Overdue over 90 days 4123260 80.00% 3298608
38JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(4) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows (Cont’d):
Grouping – Automobile parts:
30 June 2025
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 210521900 0.30% 631566
Overdue for 1 to 30 days 11139819 0.30% 33419
Overdue for 31 to 60 days 11101048 0.50% 55505
Overdue for 61 to 90 days 5650986 0.60% 33906
Overdue over 90 days 17830658 5.00% 891533
2562444111645929
31 December 2024
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 270418629 0.30% 811256
Overdue for 1 to 30 days 10276006 0.30% 30828
Overdue for 31 to 60 days 9423011 0.50% 47115
Overdue for 61 to 90 days 6008481 0.60% 36051
Overdue over 90 days 3347916 5.00% 167396
2994740431092646
(iii) The accrued amount of provision for bad debts for the period was RMB 2311109.(d) There was no provision for bad debts actually written off during the period.(e) As at 30 June 2025 and 31 December 2024 there were no accounts receivable pledged.
39JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(5) Financing receivables
30 June 2025 31 December 2024
Bank acceptance notes 310302211 302065502
The Group considers the need for its daily fund management to discount and endorse a
portion of bank acceptance bills and the business model for managing these bills aims
both at receiving contractual cash flows and at selling them; therefore all bank acceptance
bills of the Group are classified as financial assets measured at fair value with changes
recognized in other comprehensive income. For the six months ended 30 June 2025 the
Group endorsed and discounted bank acceptance notes and almost all risks and rewards
of ownership have been transferred to other parties accordingly the carrying amounts of
bank acceptance notes that were derecognised by the Group were RMB524875268 and
RMB3232573819 ( 31 December 2024: RMB1098017761 and RMB2029290040)
respectively and the related losses on discount of RMB234105 ( for the six months ended
30 June 2024: Nil) were included in investment income (Note 5(50)).
As at 30 June 2025 and 31 December 2024 as the credit risk characteristics of these bank
acceptance notes were similar no provision for impairment was made individually. In
addition the Group considered that its bank acceptance notes were not exposed to
significant credit risk and the probability of default of these banks was very low.As at 30 June 2025 and 31 December 2024 the Group had no pledged bank acceptance
notes receivable presented in financing receivables.As at 30 June 2025 the Group's bank acceptance notes had been endorsed or discounted
but not yet matured were RMB 3564724876 which had been derecognised.There was no significant write-offs of financing receivables for the Group As at 30 June
2025 (the six months ended 30 June 2024：Nil).
40JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(6) Advances to suppliers
(a) The aging of advances to suppliers is analysed as follows:
30 June 2025 31 December 2024
% of total % of total
Amount balance Amount balance
Within 1 year 42564557 93% 90702706 96%
Over 1 year 3002660 7% 4046466 4%
45567217100%94749172100%
(b) As at 30 June 2025 the top five advances to suppliers by the balances of the debtors are
analysed as follows:
Amount % of total balance
Total prepayments of the top five
balances 45556195 99.98%
(8) Other receivables
30 June 2025 31 December 2024
Gas and electricity bills 8799782 18531901
Guarantees 6426024 7604290
Import working capital 5000000 3900523
Platform utilization fee 4788230 5525739
Bills for R&D projects 3952445 4723933
Sales service fee 3156146 -
Stock repurchase securities funds 1099623 -
Receivables from refund of social
insurance - 1297367
Others 22896531 12690526
5611878154274279
Less: Provision for bad debts (289096) (261039)
5582968554013240
The Group did not have any fund deposited at other parties under the centralised fund
management and represented in other receivables.(a) The aging of other receivables is analysed as follows:
30 June 2025 31 December 2024
Within 1 year 49911898 49055878
Over 1 year 6206883 5218401
5611878154274279
41JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(7) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements:
The provision for bad debts of other receivables is analysed by category as follows:
30 June 2025
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the individual
basis 1099623 2% - -
Provision for bad debts on the
grouping basis 55019158 98% 289096 0.53%
56118781100%2890960.52%
31 December 2024
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
Individual basis 1297367 2% - -
Provision for bad debts on the
grouping basis 52976912 98% 261039 0.49%
54274279100%2610390.48%
Stage 1
12-month ECL
12-month ECL (grouping) (individual) Total
Provision Provision Provision
Book for bad Book for bad for bad
balance debts balance debts debts
31 December 2024 52976912 261039 1297367 - 261039
Decrease in the
current period - - (197744) - -
Increase in the
current period 2042246 - - - -
Provision for bad
debts accrued
during the period - 28057 - - 28057
30 June 2025 55019158 289096 1099623 - 289096
As at 30 June 2025 and 31 December 2024 the Group had no other receivables at Stage 2
and Stage 3. The analysis of other receivables at Stage 1 was stated below:
(i) As at 30 June 2025 the Group’s other receivables with provision for bad debts were
analysed below:
42JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(7) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements (Cont’d):
12-month Provision for
Book balance ECL rates bad debts Reason
Provision on the individual basis:
Stock repurchase securities funds i) 1099623 - - ECL
Provision on the grouping basis:
Gas and electricity bills 8799782 0.53% 46238 ECL
Guarantees 6426024 0.53% 33765 ECL
Import working capital 5000000 0.53% 26272 ECL
Platform utilization fee 4788230 0.53% 25160 ECL
Bills for R&D projects 3952445 0.53% 20768 ECL
Sales service fee 3156146 0.53% 16584 ECL
Others 22896531 0.53% 120309 ECL
56118781289096
i)The Group assessed the Stock repurchase securities funds individually and based on the
judgment of credit risk the receivables were not subject to significant credit risk and were
not overdue and impaired.(i) As at 31 December 2024 the Group’s other receivables with provision for bad debts on the
grouping basis are analysed as follows:
12-month Provision for
Book balance ECL rates bad debts Reason
Provision on the individual basis:
Receivables from refund of social
insurance i) 1297367 - - ECL
Provision on the grouping basis:
Gas and electricity bills 18531901 0.49% 91314 ECL
Guarantees 7604290 0.49% 37469 ECL
Platform utilization fee 5525739 0.49% 27228 ECL
Bills for R&D projects 4723933 0.49% 23277 ECL
Import working capital 3900523 0.49% 19219 ECL
Others 12690526 0.49% 62532 ECL
54274279261039
(c) As at 30 June 2025 the Group accrued the provision for bad debts amounting to
RMB28057.(d) There was no provision for bad debts actually written off during the period.(e) As at 30 June 2025 the top five other receivables by the balances of the debtors are listed
as follows:
% of Provision
total for bad
Nature Balance Aging balance debts
Company 1 Gas bills 8799782 within 1 year 16% 46238
Import working
Company 2 Capitaletc. 7754132 within 1 year 14% 40744
Platform utilization
Company 3 fee 4788230 within 1 year 9% 25160
Company 4 Sales service fee 3156146 within 1 year 6% 16584
Claim for
Company 5 compensation 2166155 within 1 year 4% 11382
2666444549%140108
43JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(8) Inventories
(a) Inventories were summarised by category as follows:
30 June 2025 31 December 2024
Provision for Provision for
decline in the decline in the
value of Carrying value of Carrying
Book balance inventories amount Book balance inventories amount
Raw materials 1159931052 87208653 1072722399 1297887283 89113586 1208773697
Finished goods 204694453 1812453 202882000 416054999 9124198 406930801
Work in progress 162929070 282318 162646752 208385421 282318 208103103
Low value consumables 69190012 741914 68448098 74927505 8943729 65983776
Materials in transit 64213199 - 64213199 85555538 - 85555538
Materials consigned for processing 19274152 - 19274152 79170327 - 79170327
168023193890045338159018660021619810731074638312054517242
(b) Provision for decline in the value of inventories was analysed as follows:
Increase in the
current period Decrease in the current period
31 December 2024 Provision Reversal Write-off 30 June 2025
Raw materials 89113586 - - (1904933) 87208653
Finished goods 9124198 - - (7311745) 1812453Low value consumables 8943729 - （42736) (8159079) 741914Work in progress 282318 - - - 282318107463831-（42736)(17375757)90045338
44JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(8) Inventories (Cont’d)
(c) Provision for decline in the value of inventories was analysed as follows:
The Group uses whether the cost is higher than the net realizable value as the basis for the
provision for inventory decline. Net realizable value is determined by the estimated selling
price of the inventory less the estimated costs to be incurred at completion estimated
contract performance costs and selling expenses and related taxes. The reason for the
reversal or resale of the provision for inventory decline in the current period is the increase
in the net realizable value of the inventory for which the provision for inventory decline has
been made in previous periods or the sales realized in the current period.
(9) Other current assets
30 June 2025 31 December 2024
Taxes prepaid input VAT to be
deducted and to be verified 1177906926 1200018920
Others 36171200 28354057
12140781261228372977
(10) Current portion of non-current assets
30 June 2025 31 December 2024
Current portion of long-term
receivables (Note 5(11)) 16089107 20784738
(11) Long-term receivables
30 June 2025 31 December 2024
Long-term receivables 34918655 41474312
Less: Unearned financing income (1383690) (2053465)
Provision for bad debts (58643) (102201)
Current portion of long-term
receivables (Note 5(10)) (16089107) (20784738)
1738721518533908
As at 30 June 2025 the Group's long-term receivables were formed by instalment receipts
from disposal of fixed assets and instalment sales etc. and the payments will be recovered
from 2025 to 2029.
45JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(12) Long-term equity investments
30 June 2025 31 December 2024
Associates
- Shanxi Yunnei Power Co. Ltd. (“The Power Company”) 182325974 194393246
- Hanon Systems (Nanchang) Co. Ltd. (“Hanon Systems”) 27168732 24904785
Less: Provision for impairment of long-term equity investments - -
209494706219298031
Associates
Movements for the current period Impairment provision
Share of net
Increase/ profit/(loss) Cash Provision 31
31 December Decrease in under equity dividends for 30 June Shareholding Voting 30 June December
2024 investment method declared impairment 2025 (%) rights (%) 2025 2024
The Power
Company 194393246 - (12067272) - - 182325974 40% 40% - -
Hanon
Systems 24904785 - 2263947 - - 27168732 19.15% 33.33% - -
Total 219298031 - (9803325) - - 209494706 - -
Related information of equity in associates is set forth in Note 6(2).
46JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(13) Fixed assets
30 June 2025 31 December 2024
Fixed assets (a) 5972042966 5749363332
Fixed assets pending for disposal (b) 102888 110673
59721458545749474005
(a) Fixed assets
Electronic
Machinery and and other. Buildings equipment Vehicles Moulds equipment Total
Cost
31 December 2024 2367665155 3233162193 1000446605 4420796705 4447547715 15469618373
Increase in the current
period
Transfers from
construction in
progress 1401975 386951 287199046 424121056 125601584 838710612
Decrease in the current
period
Disposal or
retirement (2648470) (238891707) (26909471) (66384345) (166118002) (500951995)
Others - (7579508) - - (61725722) (69305230)
30 June 2025 2366418660 2987077929 1260736180 4778533416 4345305575 15738071760
Accumulated
depreciation
31 December 2024 528036598 2057309021 389467170 2945591662 3171243383 9091647834
Increase in the current
period
Provision 26438806 87688561 75453217 203689658 159559544 552829786
Decrease in the current
period
Disposal or
retirement (1386199) (220620354) (20921987) (59043618) (153879527) (455851685)
Others - (714358) - - (22162635) (22876993)
30 June 2025 553089205 1923662870 443998400 3090237702 3154760765 9165748942
Provision for
impairment
31 December 2024 172020613 39433710 6937087 350150126 60065671 628607207
Increase in the current
period
Provision - - - - - -
Decrease in the current
period
Disposal or
retirement - (12391459) (778693) (7254855) (7902348) (28327355)
30 June 2025 172020613 27042251 6158394 342895271 52163323 600279852
Carrying amount
30 June 2025 1641308842 1036372808 810579386 1345400443 1138381487 5972042966
31 December 2024 1667607944 1136419462 604042348 1125054917 1216238661 5749363332
As at 30 June 2025 depreciation charged to fixed assets amounted to RMB552829786 (the
six months ended 30 June 2024：RMB485221314) of which the depreciation expenses
charged in the cost of sales selling and distribution expenses general and administrative
expenses and research and development expenses were RMB492673591 RMB2314697
RMB26170440 and RMB31671058 (the six months ended 30 June 2024 ：
RMB413536440 RMB3897033 RMB29315200 and RMB38472641) respectively.The costs of fixed assets transferred from construction in progress amounted to
RMB838710612 (the six months ended 30 June 2024：RMB574864185).
47JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(13) Fixed assets(Cont’d)
(a) Fixed assets (Cont’d)
(i) Temporarily idle fixed assets
As at 30 June 2025 the fixed assets with a carrying amount of approximately
RMB157121026 (a cost of RMB1277164465) (31 December 2024: a carrying amount of
approximately RMB166048112 and a cost of RMB1419765179) were idle due to the
termination of the equity transfer transaction of JMCH and the change of product process of
the Group. The analysis was as follows:
Accumulated Provision for Carrying
Cost depreciation impairment amount
Buildings 409162422 112097962 172020613 125043847
Machinery and
equipment 126045578 85951059 26148468 13946051
Vehicles 57471069 48932313 6029518 2509238
Moulds 428029716 111902446 315977900 149370
Electronic and
other equipment 256455680 196266408 44716752 15472520
1277164465555150188564893251157121026
(ii) Operating lease of fixed assets:
As at 30 June 2025 the Cost was RMB790120592 the accumulated depreciation was RMB
95879504 and the carrying amount at the end of the period was RMB694241088.
(ii) Fixed assets with pending certificates of ownership:
Reason for not obtaining
Carrying amount certificates of ownership
Buildings 8681792 Pending procedures
(b) Fixed assets pending for disposal
30 June 2025 31 December 2024
Electronic and other equipment 85891 85891
Machinery and equipment 16997 24782
102888110673
48JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(14) Construction in progress
30 June 2025 31 December 2024
Provision Provision
for Carrying Book for Carrying
Book balance impairment amount balance impairment amount
Projects for
passenger
vehicles 182738290 4460314 178277976 134553481 4460314 130093167
Projects for
commercial
vehicles 152406753 1284000 151122753 364639322 1284000 363355322
Projects for
automobile parts
factory 70892849 - 70892849 64627414 - 64627414
Projects for
automobiles
factory 4560522 - 4560522 5625803 - 5625803
Others 97557499 691646 96865853 98901720 691646 98210074
50815591364359605017199536683477406435960661911780
49JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(14) Construction in progress (Cont’d)
(a) Movement of significant projects of construction in progress
Transfer to Accumulative Including:
Transfer to fixed intangible assets % of project capitalised Borrowing costs
Budget (In 31 December Increase in the assets in the in the current investment in Progress of borrowing capitalised in the
Project name RMB0’000) 2024 current period current period period 30 June 2025 budget project costs current period Source of fund
Projects for passenger
vehicles 85572 134553481 117603562 (69418753) - 182738290 65% 65% - - Self-owned funds
Projects for commercial
vehicles 273349 364639322 256334290 (468566859) - 152406753 74% 74% - - Self-owned funds
Projects for automobiles
factory 50023 5625803 187078 (1252359) - 4560522 75% 75% - - Self-owned funds
Projects for automobile
parts factory 14752 64627414 15675692 (9410257) - 70892849 58% 58% - - Self-owned funds
Self-owned funds
Others 98901720 296065063 (290062384) (7346900) 97557499 292897 - and borrowings
668347740685865685(838710612)(7346900)508155913292897-
(b) Provision for impairment of construction in progress
Increase in the Decrease in the
31 December 2024 current period current period 30 June 2025 Reason for provision
The recoverable amount is lower than the
Projects for commercial vehicles 1284000 - - 1284000 carrying amount
The recoverable amount is lower than the
Projects for passenger vehicles 4460314 - - 4460314 carrying amount
The recoverable amount is lower than the
Others 691646 - - 691646 carrying amount
6435960--6435960
50JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(15) Right-of-use assets
Buildings
Cost
31 December 2024 375793465
Increase in the current period
New lease contracts 117970
Decrease in the current period
Expiration of lease contract (136110)
30 June 2025 375775325
Accumulated depreciation
31 December 2024 217307777
Increase in the current period
Provision 40592333
Decrease in the current period
Expiration of lease contract (136110)
30 June 2025 257764000
Provision for impairment
31 December 2024 -
Increase in the current period -
Decrease in the current period -
30 June 2025 -
Carrying amount
30 June 2025 118011325
31 December 2024 158485688
51JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(16) Intangible assets
Land use Software Non-patent
rights use fees technologies Others Total
Cost
31 December 2024 625299326 446450261 2320595061 38578700 3430923348
Increase in the
current period
Transfers from
construction in
progress - 7346900 - - 7346900
Internal research
and development - - 167668180 - 167668180
Decrease in the
current period
Disposal (2369411) (782409) - - (3151820)
30 June 2025 622929915 453014752 2488263241 38578700 3602786608
Accumulated
amortisation
31 December 2024 164471284 285873146 1078128739 38578700 1567051869
Increase in the
current period
Provision 6568314 27601062 197243548 - 231412924
Decrease in the
current period
Disposal (1302714) (782409) - - (2085123)
30 June 2025 169736884 312691799 1275372287 38578700 1796379670
Provision for
impairment
31 December 2024 - - 52416626 - 52416626
Increase in the
current period
Provision - - - - -
30 June 2025 - - 52416626 - 52416626
Carrying amount
30 June 2025 453193031 140322953 1160474328 - 1753990312
31 December 2024 460828042 160577115 1190049696 - 1811454853
As at 30 June 2025 the intangible assets developed by the Group accounted for 62% (31
December 2024: 61%) of the carrying amount of intangible assets.
52JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(17) Expenditure on research and development
The Group's total expenditure on research and development activities As at 30 June 2025
and 2024 is presented by nature as follows:
Six months ended 30 June
20252024
Employee benefits 449540890 371085867
Design fee 121218012 195801929
Consumed materials 77767929 95215493
Depreciation and amortisation 37108953 42867809
Others 99655450 97106716
785291234802077814
Wherein expenditure on research
and development on the
research phase (Note 5(45)) 652925801 617237727
(a) The changes in the Group's development expenditures eligible for capitalisation As at 30
June 2025 is analysed as follows:
Transfer to intangible
31 December Increase in the assets in the current 30 June
2024 current period period 2025
Projects for
passenger
vehicles 27277985 93171433 - 120449418
Projects for
commercial
vehicles 160825445 39194000 167668180 32351265
188103430132365433167668180152800683
The capitalization of the vehicle project started when the product was ready and the R&D
data was frozen and it had passed the Group's technical review meeting. After the
completion of the development of the project it is expected to be ready for mass
production of vehicle products with marketing capabilities with a progress of
approximately 71% as of 30 June 2025 and is expected to be completed by 2025.As at 30 June 2025 there was no impairment of the Group's development expenditure
items (the six months ended 30 June 2024：nil).
53JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(18) Deferred tax assets and deferred tax liabilities
(a) Deferred tax assets before offsetting
30 June 2025 31 December 2024
Deductible Deductible
temporary temporary
differences and Deferred tax differences and Deferred tax
deductible losses assets deductible losses assets
Accrued expenses and
provisions 4693645985 1066620321 5243226986 1202834659
Recoverable losses 3416095086 762925165 3007086847 645511957
Provision for asset
impairment 580297581 87610318 622528655 94016209
Non-patent technology 516378804 122008757 440753948 100999156
Lease liability 102200325 20562469 179407961 27067280
Employee education
funds unpaid 50863636 8092589 53619310 8554549
Deferred income 65769194 9865379 61202010 9180301
Retirement benefits
plan 9573915 2107187 10153000 2194050
Others 172388013 22437888 122815039 20274065
9607212539210223007397407937562110632226
(b) Deferred tax liabilities before offsetting
30 June 2025 31 December 2024
Taxable Taxable
temporary Deferred tax temporary Deferred tax
differences liabilities differences liabilities
Depreciation of fixed assets 3277206567 703454256 3045807585 624476184
Right-of-use assets 117893355 19216896 158457332 25571835
Equity transactions between
parent and subsidiary 187000000 28050000 166600000 24990000
Differences between the fair
value of the identifiable net
assets and carrying amount
arising from business
combinations involving
enterprises not under
common control 73600076 18400019 74742572 18685643
Amortisation of intangible
assets 87867813 16790393 88274866 15312010
Others 3649471 547421 11693768 1754065
37472172827864589853545576123710789737
54JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(18) Deferred tax assets and deferred tax liabilities (Cont’d)
(c) Deductible temporary differences and deductible losses for which no deferred tax asset
was recognised were analysed as follows:
30 June 2025 31 December 2024
Deductible temporary differences 2592011848 2598578425
Deductible losses 242042829 231610985
28340546772830189410
(d) Deductible losses for which no deferred tax asset was recognised will be expired in
following years:
30 June 2025 31 December 2024
2025594567594567
2026136794136794
2027109138616109138616
20288088535480885354
20294089481040855654
203010392688-
242042829231610985
(e) The net balances of deferred tax assets and deferred tax liabilities after offsetting were as
follows:
30 June 2025 31 December 2024
Offsetting Balance after Offsetting Balance after
amount offsetting amount offsetting
Deferred tax assets (566426641) 1535803432 (580487861) 1530144365
Deferred tax liabilities (566426641) 220032344 (580487861) 130301876
(19) Other non-current assets
30 June 2025 31 December 2024
Prepayment for molds 6386526 7860340
55JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(20) Provision for asset impairment and losses
Decrease in the current period
31 December Increase in the Write-off
2024 current period Reversal /Disposal 30 June 2025
Provision for bad debts of notes receivable (Note
5(3))6719--86
Provision for bad debts of accounts receivable (Note
5(4))1182854472311109--120596556
Including: Provision for bad debts on the
individual basis 104721207 - - - 104721207
Provision for bad debts on the
grouping basis 13564240 2311109 - - 15875349
Provision for bad debts of other receivables (Note
5(7))26103928057--289096
Provision for bad debts of long-term receivables
(Note 5(11)) 102201 - (43558) - 58643
Sub-total 118648754 2339185 (43558) - 120944381
Provision for decline in the value of inventories
(Note 5(8)) 107463831 - (42736) (17375757) 90045338
Provision for impairment of fixed assets (Note 5(13)) 628607207 - - (28327355) 600279852
Provision for impairment of construction in progress
(Note 5(14)) 6435960 - - - 6435960
Provision for impairment of goodwill (i) 89028412 - - - 89028412
Provision for impairment of intangible assets (Note
5(16))52416626---52416626
Sub-total 883952036 - (42736) (45703112) 838206188
10026007902339185(86294)(45703112)959150569
(i) As at 31 December 2019 the Group had made full provision for impairment of goodwill.- 56 -JIANGLING MOTORS CORPORATION LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(21) Short-term borrowings
30 June 2025 31 December 2024
Credit loan 1400000000 1500000000
As at 30 June 2025 the Group had no overdue short-term borrowings and the interest rates
ranged from 0.5% to 0.85% (31 December 2024: 0.55% to 0.95%).
(22) Accounts payable
30 June 2025 31 December 2024
Payable for automobile parts 9946234021 9785507926
Payable for raw and auxiliary
materials 330200992 275716018
1027643501310061223944
As at 30 June 2025 accounts payable with aging over one year amounted to
RMB195886018 (31 December 2024: RMB170590008) which mainly represented
payables for materials for which a settlement price had not yet been determined and such
payables had not been finally settled yet.
57JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(23) Contract liabilities
30 June 2025 31 December 2024
Advances for maintenance and warranty
services etc. 894196338 632287355
Advances for automobiles and automobile
parts 156872502 206210459
1051068840838497814
Less: Contract liabilities carried forward
to revenue after 1 year (Note 5(34) Note
5(41)(c)(i)) (415521158) (370793523)
635547682467704291
(24) Employee benefits payable
30 June 2025 31 December 2024
Short-term employee benefits payable (a) 615939366 771878485
Defined contribution plans payable (b) 18716337 2799913
Defined benefit plans payable (c) 3015000 3015000
Termination benefits payable (d) 1143000 2481176
638813703780174574
(a) Short-term employee benefits
31 December Increase in the Decrease in the
2024 current period current period 30 June 2025
Wages and salaries
bonus allowances
and subsidies 692017542 1017543497 (1173988578) 535572461
Staff welfare 21071704 32981927 (38638307) 15415324
Social security
contributions 812921 74730146 (65495192) 10047875
Including: Medical
insurance 729653 66384072 (58137714) 8976011
Work injury
insurance 83268 8346074 (7357478) 1071864
Housing funds 492198 101007398 (101121179) 378417
Labour union funds
and employee
education funds 57484120 23310486 (26269317) 54525289
Other short-term
employee benefits - 3891043 (3891043) -
7718784851253464497(1409403616)615939366
58JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(24) Employee benefits payable (Cont’d)
(b) Defined contribution plans
Decrease in
31 December Increase in the the current
2024 current period period 30 June 2025
Basic pensions 2698067 143857338 (128432540) 18122865
Unemployment
insurance 101846 4554161 (4062535) 593472
2799913148411499(132495075)18716337
(c) Defined benefit plans
Increase in Decrease in
31 December the current the current
2024 period period 30 June 2025
Post-retirement
benefits payable
(Note 5(33)) 3015000 1135167 (1135167) 3015000
(d) Termination benefits payable
30 June 2025 31 December 2024
Early retirement benefits payable
(Note 5(33)) 1143000 1143000
Other termination benefits (i) - 1338176
11430002481176
(i) As at 30 June 2025 other termination benefits paid by the Group for termination of the
employment relationship were RMB2458544 (the six months ended 30 June 2024 ：
RMB908195).
(25) Taxes payable
30 June 2025 31 December 2024
Consumption tax payable 85683878 103965331
Land use tax payable 4703203 4753390
Unpaid VAT 2021791 117211162
Others 35440745 39268506
127849617265198389
59JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(26) Other payables
30 June 2025 31 December 2024
Promotion expenses 2574908038 2727155425
Research and development project
expenses 803756032 962540747
Ordinary share dividends payable 620436482 6463836
Construction payment 393475959 466886864
Transportation expenses 221004714 256166660
Guarantees 143365491 134483995
Advertising and new product
planning fees 88109227 117665807
Trademark license fee 81116480 61000949
Consulting fees 33037236 42367665
Technological transformation project
expenses 13271106 13301266
Others 927120590 951030953
58996013555739064167
As at 30 June 2025 other payables with aging over one year of RMB1691750001 (31
December 2024: RMB1594877126) mainly comprised guarantees collected from
distributors and repair stations payables for promotion payables for research and
development expenses and payables for construction projects. Such payables had not
been finally settled yet in view of the continuing business transactions with distributors and
service providers and engineering projects and research and development projects that
had not yet been accepted and completed.
(27) Current portion of non-current liabilities
30 June 2025 31 December 2024
Current portion of lease liabilities
(Note 5(30)) 83069133 85684387
Current portion of long-term
borrowings (Note 5(29)) 468775 470727
8353790886155114
(28) Other current liabilities
30 June 2025 31 December 2024
Provisions expected to be settled
within 1 year (Note 5(31)) 325555076 314682704
Others 20453457 26865737
346008533341548441
60JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(29) Long-term borrowings
30 June 2025 31 December 2024
Guaranteed loans(a) 1171938 1412180
Less: Current portion of long-term
borrowings (Note 5(27)) (468775) (470727)
703163941453
(a) As at 30 June 2025 the above guaranteed loans were long-term borrowings amounting to
USD163710 guaranteed by JMCF (note 8(5)(c)) borrowed from Industrial and
Commercial Bank of China (“ICBC”) Nanchang Ganjiang Sub-branch with interests paid
every half year and the principal paid in instalments between 10 December 2007 and 27
October 2027.
30 June 2025 31 December 2024
Amount in Amount in
Starting Maturity Interest foreign RMB foreign RMB
date date Currency rate (%) currency equivalent currency equivalent
ICBC
Nanchang
Ganjiang Sub 27 February 27 October
- branch 1998 2027 USD 1.5% 163710 1171938 196453 1412180
(b) As at 30 June 2025 the Group had no overdue long-term borrowings at an interest rate of
1.5% (31 December 2024: 1.5%).
(30) Lease liabilities
30 June 2025 31 December 2024
Lease liabilities (a) 102313438 179437021
Less: Current portion of non-
current liabilities (Note 5(27)) (83069133) (85684387)
1924430593752634
(a) As at 30 June 2025 the Group had no leases that were not included in lease liabilities but
will result in potential future cash outflows.
61JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(31) Provisions
Increase in Decrease in
31 December the current the current 31 December
2024 period period 2024
Product warranties 601848407 179196025 (154868213) 626176219
Less: Provisions expected to
be settled within 1
year (Note 5(28)) (314682704) (325555076)
287165703300621143
Product warranties are expenses expected to be incurred during the warranty period from
free after-sales services product warranty and other services for the vehicles sold.
(32) Deferred income
Increase in Decrease in
31 December the current the current
2024 period period 30 June 2025
Government grants 61202010 6321000 (1695483) 65827527
(a) Government grants
Decrease in the
current period
31 December Increase in the Recognised in
2024 current period other income 30 June 2025
Government grants
related to assets 7113989 1556000 (998881) 7671108
Government grants
related to income 54088021 4765000 (696602) 58156419
612020106321000(1695483)65827527
62JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(33) Long-term employee benefits payable
30 June 2025 31 December 2024
Supplementary retirement benefits
and early-retirement benefits
eligible for recognition of
provisions 61785748 63500000
Less: Payable within 1 year (4158000) (4158000)
5762774859342000
The retirement and early-retirement benefits payable within one year are included in
employee benefits payable (Note 5(24)(c) Note 5(24)(d)).For retired and early-retired employees the Group provides them with a certain amount of
supplementary benefits during their retirement or early-retirement period. The amount of
benefits depends on the employee’s position length of service and salary at the time of
retirement or early-retirement and is adjusted in accordance with inflation rate and other
factors. The Group’s obligations for supplementary retirement and early-retirement
benefits as at the balance sheet date were calculated using projected unit credit method
and were reviewed by an external independent actuary.(a) Movements of retirement and early-retirement benefits of the Group are as follows:
Present value of the obligations of the defined
benefit plan
30 June 2025 31 December 2024
Opening balance 63500000 56916000
Cost of defined benefit plans
recognised in profit or loss for
the current period
- Current service cost - 1237000
- Past service cost - 1131000
- Actuarial gains or losses -
recognised immediately 610000
- Net interest - 1378000
Remeasurement of net liabilities for
defined benefit plans
- Actuarial losses(Note 5(38)) - 5816000
Other movements
- Benefits paid (1714252) (3588000)
Ending balance 61785748 63500000
63JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(33) Long-term employee benefits payable (Cont’d)
(b) The major actuarial assumptions used to determine the present value of defined benefit
plan obligations of the Group
30 June 2025 31 December 2024
Discount rate 1.75% 1.75%
Inflation rate 2.00% 2.00%
Salaries and benefits growth rates 0%-6% 0%-6%
Future mortality assumptions were determined based on the China Life Insurance Mortality
Table (2010-2013) which is publicly available statistical information for the Chinese region.
(34) Other non-current liabilities
30 June 2025 31 December 2024
Contract liabilities carried forward to
revenue after 1 year (Note 5(23)) 415521158 370793523
64JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(35) Share capital
Movements for the current period
31 December Shares newly Bonus Transfer from
2024 issued share capital surplus Others Sub-total 30 June 2025
Shares subject to trading restriction -
Other domestic shares
Including: Shares held by domestic
non-state-owned legal
persons 745140 - - - - - 745140
Shares held by domestic
natural persons 5700 - - - - - 5700
750840-----750840
Shares not subject to trading restriction -
Ordinary shares denominated in RMB 518463160 - - - - - 518463160
Domestically listed foreign shares 344000000 - - - - - 344000000
862463160-----862463160
863214000-----863214000
Since the implementation of the Company’s Scheme on Share Split Reform on 13 February 2006 as at 30 June 2025 there were 750840 shares
currently unavailable for trading. During the reporting period there was no shares with trading restrictions released from the restricted conditions.
65JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(35) Share capital (Cont’d)
Movements for the current year
Transfer
31 December Shares Bonus from capital
2023 newly issued share surplus Others Sub-total 31 December 2024
Shares subject to trading restriction -
Other domestic shares
Including: Shares held by domestic
non-state-owned legal
persons 745140 - - - - - 745140
Shares held by domestic
natural persons 5700 - - - - - 5700
750840-----750840
Shares not subject to trading restriction -
Ordinary shares denominated in RMB 518463160 - - - - - 518463160
Domestically listed foreign shares 344000000 - - - - - 344000000
862463160-----862463160
863214000-----863214000
66JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(36) Capital surplus
31 December Increase in the Decrease in the
2024 current period current period 30 June 2025
Share premium 816609422 - - 816609422
Other capital surplus 22833068 - - 22833068
839442490--839442490
31 December Increase in the Decrease in the 31 December
2023 current year current year 2024
Share premium 816609422 - - 816609422
Other capital surplus 22833068 - - 22833068
839442490--839442490
(37) Treasury shares
31 December Increase in the Decrease in the
2024 current period current period 30 June 2025
Treasury shares - 168909971 - 168909971
The increase in treasury shares during the current period was due to the repurchase of A-shares
issued by the Company which shall be allotted for implementing the Employee Stock Ownership Plan
(ESOP) or share incentive schemes.
67JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(38) Other comprehensive income
Other comprehensive income in the balance Other comprehensive income in the income statement for six months
sheet ended 30 June 2025
Less: Transfer-
Amount out of previous
Attributable to incurred other Attributable to
the parent before income comprehensive the parent Attributable to
31 December company after tax for the income in the Less: Income company after the subsidiary
2024 tax 30 June 2025 current period current period tax expenses tax after tax
Other comprehensive income that will
not be reclassified to profit or loss
Actuarial gains on defined benefit
plans (26388000) - (26388000) - - - - -
Other comprehensive income in the balance Other comprehensive income in the income statement for six months
sheet ended 31 December 2024
Less: Transfer-
Amount out of previous
Attributable to incurred other Attributable to
the parent before income comprehensive the parent Attributable to
31 December company after 31 December tax for the income in the Less: Income company after the subsidiary
2023 tax 2024 current year current year tax expenses tax after tax
Other comprehensive income that will
not be reclassified to profit or loss
Actuarial gains on defined benefit
plans (20572000) (5816000) (26388000) (5816000) - - (5816000) -
68JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(39) Surplus reserve
31 December Increase in the Decrease in the
2024 current period current period 30 June 2025
Statutory surplus reserve 431607000 - - 431607000
31 December Increase in the Decrease in the 31 December
2023 current year current year 2024
Statutory surplus reserve 431607000 - - 431607000
In accordance with the Company Law of the People’s Republic of China the Company’s
Articles of Association and the resolution of the Board of Directors the Company should
appropriate 10% of net profit for the period to the statutory surplus reserve and the
Company can cease appropriation when the statutory surplus reserve accumulated to
more than 50% of the registered capital. The statutory surplus reserve can be used to
make up for the loss or increase the share capital upon approval from the appropriate
authorities. As the accumulated appropriation to the statutory surplus reserve exceeded
50% of the registered capital no appropriation was made in the current period (the six
months ended 30 June 2024：Nil).The Company reserves the discretionary surplus reserve after the shareholders’ meeting
approves the proposal from the Board of Directors. The discretionary surplus reserve can
be used to compensate for the losses incurred in prior periods or increase the share
capital upon approval from appropriate authorities.
(40) Retained earnings
Six months ended 30 June
20252024
Retained earnings at the beginning
of the year 9179333271 8232632623
Add: Net profit attributable to shareholders of the
parent company for the current period 732728047 895480117
Less: Ordinary share dividends payable (a) (614608368) (590438376)
Retained earnings at the end of the
period 9297452950 8537674364
(a) On June 24 2025 the Company's 2024 Annual General Meeting examined and approved
the Company's 2024 Profit Distribution Proposal. Cash dividends will be distributed at
RMB 0.71914 per share amounting to RMB 614608368 in total based on the total share
capital as of the record date for the distribution less the total number of shares held in the
Company's special repurchase securities account.
69JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(41) Revenue and cost of sales
Six months ended 30 June
20252024
Revenue from main operations 17647624305 17435844213
Revenue from other operations 444761905 484221588
1809238621017920065801
Six months ended 30 June
20252024
Cost of sales from main operations 15234142089 15079623428
Cost of sales from other operations 305514733 410257260
1553965682215489880688
(a) Revenue and cost of sales from main operations
Six months ended 30 June
20252024
Revenue from Cost of sales from Revenue from Cost of sales from
main operations main operations main operations main operations
(Restated)
Sales of
automobiles 16473174098 14334899112 16234132009 14124912768
Sales of
automobile
parts 879700380 604581639 858699049 615732277
Automobile
maintenance
services etc. 294749827 294661338 343013155 338978383
17647624305152341420891743584421315079623428
(b) Revenue and cost of sales from other operations
Six months ended 30 June
20252024
Revenue from Cost of sales from Revenue from Cost of sales from
other operations other operations other operations other operations
Sales of
materials 219681704 197278683 326730729 312885452
Others 225080201 108236050 157490859 97371808
444761905305514733484221588410257260
70JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(41) Revenue and cost of sales (Cont’d)
(c) The breakdown of the Group’s revenue by product and service transfer time was as follows:
Six months ended 30 June 2025
Automobile
Automobile maintenance Materials and
Automobiles parts services etc. others Total
Revenue from main operations 16473174098 879700380 294749827 - 17647624305
Including: Recognised at a
time point 16473174098 879700380 - - 17352874478
Recognised
within a certain
period - - 294749827 - 294749827
Revenue from other
operations (i) - - - 444761905 444761905
1647317409887970038029474982744476190518092386210
Six months ended 30 June 2024
Automobile
Automobile maintenance Materials and
Automobiles parts services etc. others Total
Revenue from main operations 16234132009 858699049 343013155 - 17435844213
Including: Recognised at a
time point 16234132009 858699049 - - 17092831058
Recognised
within a certain
period - - 343013155 - 343013155
Revenue from other
operations (i) - - - 484221588 484221588
1623413200985869904934301315548422158817920065801
(i) The Group's revenue from other operations includes sales of materials and technical service
provided. Revenue from sales of materials is recognised at a certain time point and revenue
from technical service provided is recognised within a certain period.As at 30 June 2025 the amount of revenue corresponding to the performance obligations that
the Group had contracted but had not commenced or completed was RMB1051068840 of
which the Group expects that RMB156872501 and RMB478675181 will be recognised as
revenue from the sales of automobiles and parts and revenue from the sales of automobile
maintenance services respectively in 2025 RMB415521158 will be recognised as revenue
from automobile maintenance services from 2026 to 2030(Note 5(23)).
(42) Taxes and surcharges
Six months ended 30 June
20252024
Consumption tax 435046919 524126267
City maintenance and construction tax 35278515 49997854
Educational surcharge 35050903 49882499
Stamp tax 16794959 29026562
Real estate tax 10106318 9909327
Land use tax 10097811 10228561
Others 198079 212283
542573504673383353
71JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(43) Selling and distribution expenses
Six months ended 30 June
20252024
Promotion expenses 203844392 279009783
Employee benefits 106794037 119214306
Advertising and new product planning fees 39306864 54490620
Storage expenses 22792774 24921332
Packaging material expenses 18726471 15610119
Depreciation and amortisation expenses 6365515 8566421
Others 68962440 115263170
466792493617075751
(44) General and administrative expenses
Six months ended 30 June
20252024
Employee benefits 278702135 257247147
Depreciation and amortisation expenses 59481750 60085504
Trademark license fee 33660541 52181119
Repair expenses 6888317 10219241
General office expenses 6048357 5334911
Consulting fees 4691161 7170257
Others 71208960 68267648
460681221460505827
(45) Research and development expenses
Six months ended 30 June
20252024
Employee benefits 389317458 300676533
Materials expenses 73513933 82212567
Design fee 70720348 124951201
Depreciation and amortisation expenses 37108953 42867809
Others 82265109 66529617
652925801617237727
72JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(46) Financial expenses
Six months ended 30 June
20252024
Interest costs 5017907 8911864
Add: Interest costs on lease liabilities 2988976 4483267
Interest expenses 8006883 13395131
Less: Interest income from cash at bank (72870258) (112657246)
Other interest income (1590930) (3905129)
Interest income (74461188) (116562375)
Exchange gains or losses 10477168 15075445
Others 600450 436332
(55376687)(87655467)
(47) Asset impairment losses
Six months ended 30 June
20252024
Losses on decline in the value of inventories (42736) (4296473)
(48) Credit impairment losses
Six months ended 30 June
20252024
Losses on bad debts of accounts receivable 2311109 (2199927)
Losses on bad debts of other receivables 28057 (155303)
Losses on bad debts of notes receivable 19 (17564)
Losses on bad debts of long-term receivables (43558) (14909)
2295627(2387703)
(49) Other income
Six months ended 30 June Asset related/
2025 2024 Income related
Government grants
- Supporting funds by government 191600000 50000000 Income related
- Research and development
activities related subsidies 596602 13820858 Income related
- Equipment purchasing-related
subsidies 998881 805357 Asset related
- Other subsidies related with daily
operation 9046699 11752761 Income related
Additional deduction of input
VAT etc. 119023489 303586244 —
321265671379965220
73JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(50) Investment income
Six months ended 30 June
20252024
Losses on discount of financing receivables
eligible for derecognition (Note 5(5)) (234105) -
Losses on long-term equity investments
under equity method(Note 5(12)) (9803325) (2527255)
Investment income from forward exchange
settlement 10631603 5982935
Investment income from financial assets held
for trading 85408 2652711
6795816108391
There is no significant restriction on the remittance of investment income of the Group.
(51) Gains on changes in fair value
Six months ended 30 June
20252024
Derivative financial assets and derivative
financial liabilities -
(Losses) /Gains on forward exchange
contracts (7182998) 4970251
Financial assets at fair value through profit
or loss -
Structural deposits 179240 (21425)
(7003758)4948826
(52) Gains on disposal of assets
Six months ended 30 June Amount recognised
2025 2024 in non-recurring profit
or loss As at 30 June
2025
Gains on disposal of assets 18372675 10657596 18372675
74JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(53) Non-operating income
Six months ended 30 June Amount recognised in
2025 2024 non-recurring profit or
loss As at 30 June
2025
Penalty income and
Others 1697188 1134539 1697188
(54) Non-operating expenses
Six months ended 30 June Amount recognised in
2025 2024 non-recurring profit or
loss As at 30 June
2025
Losses on scrapping of
assets - 65698 -
Donations 5032 2792688 5032
Others 201715 2362709 201715
2067475221095206747
(55) Income tax expenses
Six months ended 30 June
20252024
Current income tax calculated based
on tax law and related regulations 13337 4274
Deferred income tax 84071401 (56973528)
84084738(56969254)
75JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(55) Income tax expenses (Cont’d)
The reconciliation from income tax calculated based on the applicable tax rates and total
profit presented in the consolidated income statement to the income tax expenses is listed
as follows:
Six months ended 30 June
20252024
Total profit 817684775 553915575
Income tax calculated at applicable tax rates 122652716 83087336
Effect of different applicable tax rates 33360309 (71290587)
Additional deductions (75507128) (72828094)
Deductive loss and temporary differences of
the unrecognised deferred tax asset in the
current period 966317 3135138
Non-deductible investment losses 1470498 379088
Costs expenses and losses not deductible
for tax purposes 1142025 547865
Income tax expenses 84084738 (56969254)
(56) Earnings per share
(a) Basic earnings per share
Basic earnings per share are calculated by dividing consolidated net profit attributable to
ordinary shareholders of the parent company by the weighted average number of
outstanding ordinary shares of the parent company:
Six months ended 30 June
20252024
Consolidated net profit attributable to ordinary
shareholders of the parent company 732728047 895480117
Weighted average number of ordinary shares
outstanding issued by the Company 860455004 863214000
Basic earnings per share 0.85 1.04
(b) Diluted earnings per share are calculated by dividing consolidated net profit attributable to
ordinary shareholders of the parent company adjusted based on the dilutive potential
ordinary shares by the adjusted weighted average number of outstanding ordinary shares
of the Company. As there were no dilutive potential ordinary shares as at 30 June 2025
(the six months ended 30 June 2024：Nil) diluted earnings per share equalled to basic
earnings per share.
76JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(57) Notes to the cash flow statement
The Group does not present cash flows on a net basis and the significant cash flow items
are presented as follows:
(a) Cash received relating to other operating activities
Six months ended 30 June
20252024
Government grants 208694864 75117834
Guarantees 43240153 18017968
Others 32369069 25748723
284304086118884525
(b) Cash paid relating to other operating activities
Six months ended 30 June
20252024
Research and development expenses 391730406 279544973
Promotion expenses 383162063 262782714
Advertising expenses 73585126 106878573
Maintenance expenses 44922284 34102249
Guarantees 35780586 29075464
Consulting fees 31116397 24608124
Trademark royalties 10261304 32447757
Others 278077246 288779796
12486354121058219650
(c) Cash received relating to other investing activities
Six months ended 30 June
20252024
Interest from cash at bank 74707091 118380474
Other interest 11599410 9764230
86306501128144704
(d) Cash paid relating to other financing activities
Six months ended 30 June
20252024
Lease liabilities 12377597 12923965
Stock repurchases 170000000 -
18237759712923965
77JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(58) Supplementary information to the cash flow statement
(a) Supplementary information to the cash flow statement
Reconciliation from net profit to cash flows from operating activities
Six months ended 30 June
20252024
Net profit 733600037 610884829
Add: Asset impairment losses (Note 5(47)) (42736) (4296473)
Credit impairment losses (Note 5(48)) 2295627 (2387703)
Depreciation of fixed assets (Note 5(13)) 552829786 485221314
Amortisation of intangible assets (Note 5(16)) 231412924 200787127
Depreciation of right-of-use assets (Note 5(15)) 40592333 41568134
Gains on disposal of long-term assets (18414462) (10591898)
Financial income (56039252) (88092019)
Investment income (Note 5(50)) (679581) (6108391)
Losses/ (Gains) on changes in fair value (Note
5(51))7003758(4948826)
Increase in deferred tax assets (5659067) (56687904)
Increase/(Decrease) in deferred tax liabilities 89730468 (285624)
Decrease/(Increase) in inventories 149005794 (788821169)
Increase in provisions 24327812 30899260
Increase in operating receivables (1474752408) (719744780)
(Decrease) /Increase in operating payables (349545446) 1043839882
Decrease in other cash and cash equivalents 9836629 2093918
Net cash flows from operating activities (64497784) 733329677
Net increase in cash and cash equivalents
Six months ended 30 June
20252024
Cash and cash equivalents at the end of
the period 11781003829 10967680201
Less: Cash and cash equivalents at the
beginning of the year (12475176009) (11746518615)
Net increase in cash and cash equivalents (694172180) (778838414)
78JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(58) Supplementary information to the cash flow statement (Cont’d)
(b) Changes in liabilities arising from financing activities
Bank borrowings Lease liabilities
(including the (including the current
current portion) portion) Other Payables Total
31 December 2024 1501412180 179437021 125419835 1806269036
Cash inflows from financing activities 2847575556 - 85750000 2933325556
Cash outflows from financing activities (2950194385) (12377597) (362177) (2962934159)
Interest accrued in the current period 2377923 2988976 2639982 8006881
Dividends accrued in the current period - - 614608368 614608368
Changes that do not involve cash
receipts and payments 664 (67734962) 70873804 3139506
30 June 2025 1401171938 102313438 898929812 2402415188
79JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(58) Supplementary information to the cash flow statement (Cont’d)
(c) Cash and cash equivalents
30 June 2025 31 December 2024
Cash at bank available for payment at any
time 10420513196 11067571593
Cash at finance company available for
payment at any time 1360490633 1407604416
1178100382912475176009
(i) As in Note 5(1) other cash and cash equivalents of RMB8856058 as at 30 June 2025(31
December 2024: RMB18692687) was not included in cash and cash equivalents.
(59) Foreign currency monetary items
30 June 2025
Amounts in
foreign Translation
currencies exchange rate Amounts in RMB
Long-term borrowings-
USD 163710 7.1586 1171938
Other payables-
USD 14271673 7.1586 102165197
103337135
80JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(60) Lease
(a) As a lessee
Six months ended 30 June
20252024
Interest expense on lease liabilities 2988976 4483267
Short-term lease expenses with simplified 2047029 43810
treatment through profit or loss for the period
Total cash outflows related to leases 14424626 12967775
The leased assets leased by the Group include houses and buildings used in the course of
operation and the lease term of houses and buildings is usually 1-5 years.Right-of-use assets see note 5(15); For lease liabilities see note 5(30).(b) As a lessor
The Group leases out its premises buildings and means of transport for lease terms ranging
from 1 to 3 years to form an operating lease.Operating leases
Gains and losses related to operating leases are presented as follows:
Six months ended 30 June
20252024
Rental income 98802662 14847056
According to the lease contract with the lessee the undiscounted minimum lease collection
amount is as follows:
30 June 2025 31 December 2024
Within 1 year (including 1 year) 175489359 131603273
1 to 2 years (inclusive) 45380806 43748470
2 years to 3 years (inclusive) 9595672 18874242
230465837194225985
For fixed assets leased out of operation see Note 5(13).
81JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Equity in other entities
(1) Equity in subsidiaries
Structure of the Group
Main place of Place of Registered Method of
Subsidiaries business registration capital Nature of business Shareholding (%) acquisition
Direct Indirect
Nanchang Nanchang Retail wholesale and lease of Set up by
JMCS Jiangxi Jiangxi 50000000 automobiles 100% - investment
Business
combinations
involving
enterprises not
Taiyuan Taiyuan Manufacture and sales of under common
JMCH Shanxi Shanxi 1323793174 automobiles 100% - control
Shenzhen Shenzhen Retail wholesale and lease of Set up by
SZFJ Guangdong Guangdong 10000000 automobiles 100% - investment
Guangzhou Guangzhou Retail wholesale and lease of Set up by
GZFJ Guangdong Guangdong 10000000 automobiles 100% - investment
Jiangling Ford Sales of automobiles technical and Set up by
(Shanghai)(a) Shanghai Shanghai 200000000 business information consultation 51% - investment
82JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Equity in other entities (Cont’d)
(1) Equity in subsidiaries (Cont’d)
(a) Subsidiaries with significant minority interests
The Group determines the subsidiaries with significant minority interests by taking into account whether the subsidiaries are listed companies the
proportion of minority interests in the Group’s consolidated shareholders’ equity and the proportion of profit or loss attributable to minority shareholders in
the Group’s consolidated net profit as follows:
Total profit or loss
attributable to minority Dividends paid to
Shareholding of shareholders for six minority shareholders for
minority months ended 30 June six months ended 30 Minority interests as
Subsidiaries shareholders 2025 June 2025 at 30 June 2025
Jiangling Ford (Shanghai) 49% 871990 - (696363343)
Key financial information of the above significant non-wholly owned subsidiaries is presented below.
30 June 2025
Current Non-current Current Non-current
assets assets Total assets liabilities liabilities Total liabilities
Jiangling Ford (Shanghai) 307387580 567957831 875345411 2257478972 39016117 2296495089
Six months ended 30 June 2025
Total
comprehensive Cash flows from
Revenue Net loss loss operating activities
Jiangling Ford (Shanghai) 1667276790 1779572 1779572 （388582257）
83JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Equity in other entities (Cont’d)
(2) Equity in associates
(a) General information of significant associates
The Group determines the significant associates by taking into account factors such as
whether the associates are listed companies the proportion of their carrying amounts to the
Group’s consolidated total assets and the proportion of the investment income from long-
term equity investments under equity method to the Group’s consolidated net profit as set
out below:
Place of Shareholding (%)
registration Direct Indirect
Associate -
The Power Company Taiyuan Shanxi 40% -
(b) Summarised financial information for significant associates
30 June 2025 31 December 2024
The Power
Company The Power Company
Current assets 153401579 170083868
Non-current assets 414720626 437139815
Total assets 568122205 607223683
Current liabilities 130340579 139059465
Non-current liabilities 390039 697
Total liabilities 130730618 139060162
Equity 437391587 468163521
Share of net assets based on
shareholding (i) 174956635 187265408
Adjustments
- Unrealised profits arising from internal
transactions (13483984) (13725485)
- Others (ii) 20853323 20853323
Carrying amount of equity investments in
associates 182325974 194393246
84JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Equity in other entities (Cont’d)
(2) Equity in associates (Cont’d)
(b) Summarised financial information for significant associates (Cont’d)
The six months ended 30 June
20252024
The Power Company The Power Company
Revenue 42666259 27275105
Net loss (6102629) (10982624)
Other comprehensive income - -
Total comprehensive loss (6102629) (10982624)
Dividends received from
associates by the Group - -
(i) The Group calculated the shares of net assets in proportion of the shareholdings and based
on the amount attributable to the parent company of the associates in their consolidated
financial statements. The amount in the consolidated financial statements of associates
considers the fair value of identifiable assets and liabilities at the time of acquisition of the
investments and the impact of adjustments to uniform accounting policies. None of the
assets involved in transactions between the Group and associates contribute to business.(ii) Other adjustments were mainly the remeasurement of fair value of remaining equity in the
consolidated financial statements which resulted from the loss of control over the original
subsidiary due to the disposal of part of the equity investment.(c) Summarised information of insignificant associates
The six months ended 30 June
20252024
Aggregated carrying amount of investments 27168732 28773014
Aggregate of the following items based on
shareholding
Net loss(i) 2263947 1438671
Other comprehensive income (i) - -
Total comprehensive loss 2263947 1438671
(i) Net profit and other comprehensive income have taken into account the fair value of
identifiable assets and liabilities at the time of acquisition of the investments and the impact
of adjustments to uniform accounting policies.
85JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Segment information
Revenue and profits of the Group mainly arise from production and domestic sales of
automobiles and the primary assets of the Group are all located in China. Management of
the Group assesses the operating performance of the Group as a whole. Therefore no
segment report is prepared for the current period.The six months ended 30 June 2025 the revenue obtained from a single customer of the
Group accounted for more than 10% of the Group’s revenue amounting to
RMB6014014463 or 33.24% (the six months ended 30 June 2024： 28.22% ) of the
Group’s revenue.
8 Related parties and related party transactions
(1) Information of major shareholders
(a) General information of major shareholders
Type of Place of Legal
enterprise registration representative Nature of business Code of organisation
State-owned Nanchang Investment and asset
JIC enterprise China Qiu Tiangao management 91360125MA38LUR91F
Foreign United William Clay Ford Manufacture and sales
Ford enterprise States Jr. of automobiles N/A
(b) Registered capital and changes in major shareholders
31 December Increase in the Decrease in the
2024 current period current period 30 June 2025
JIC 1000000000 - - 1000000000
Ford USD 42000000 - - USD 42000000
(c) The percentages of shareholding and voting rights in the Company held by major
shareholders
30 June 2025 31 December 2024
Shareholding Voting rights Shareholding Voting rights
(%)(%)(%)(%)
JIC 41.03% 41.03% 41.03% 41.03%
Ford 32% 32% 32% 32%
(2) Information of subsidiaries
The general information and other related information of subsidiaries are set out in Note
6(1).
(3) Information of associates
The information of associates is set out in Note 5(12).
86JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(4) Information of other related parties
Relationship with the Group
JMCG Shareholder of JIC
Chongqing Changan Automobile Co. Ltd.(hereinafter
referred to as “Chongqing Changan”) Shareholder of JIC
Jiangling Automobile Group (Nanchang) Fushan
Energy Co. Ltd. Controlled by JMCG
Jiangxi JMCG Industry Co. Ltd. Controlled by JMCG
JMCF Controlled by JMCG
Jiangxi JMCG Specialty Vehicles Co. Ltd. Controlled by JMCG
Jiangxi Jiangling Lear Interior System Co. Ltd. Controlled by JMCG
Jiangxi Lingrui Recycling Resources Development
Corporation Controlled by JMCG
Jiangxi Jiangling Chassis Co. Ltd. Controlled by JMCG
Nanchang Jiangling HuaXiang Auto Components Co.Ltd. Controlled by JMCG
JMCG Property Management Co. Controlled by JMCG
JMCG Jiangxi Engineering Construction Co. Ltd. Controlled by JMCG
Nanchang JMCG Liancheng Auto Component Co. Controlled by JMCG
Ltd.Jiangling Aowei Automobile Spare Part Co. Ltd. Controlled by JMCG
Nanchang JMCG Shishun Logistics Co. Ltd. Controlled by JMCG
Nanchang Lianda Machinery Co. Ltd. Controlled by JMCG
JMCG Jingma Motors Co. Ltd. Controlled by JMCG
Jiangxi JMCG Shangrao Industrial Co.Ltd. Controlled by JMCG
Nanchang Unistar Electric & Electronics Co. Ltd. Controlled by JMCG
Jiangxi ISUZU Engine Co. Ltd. Controlled by JMCG
Jiangxi ISUZU Co. Ltd. Controlled by JMCG
Nanchang Hengou Industry Co. Ltd. Controlled by JMCG
Nanchang Jiangling Group Frame Co. Ltd Controlled by JMCG
Jiangxi Jiangling Special Purpose Vehicle Co. Ltd. Controlled by JMCG
Jiangling Motor Electricity Vehicle Co. Ltd. Controlled by JMCG
Jiangxi Lingge Non-ferrous Metal Die-casting Co. Ltd. Controlled by JMCG
Jiangxi Jiangling Motors Imp. & Exp. Co. Ltd. Controlled by JMCG
Jiangxi JMCG Specialty Vehicles Sales Corporation Controlled by JMCG
Ltd.Nanchang Gear Forging Co.Ltd. Controlled by JMCG
Jiangxi JMCG Boya brake system Co. Ltd. Controlled by JMCG
Jiangxi Mingfang Auto Parts Industry Co. Ltd. Controlled by JMCG
Jiangxi Jiangling group Fuxin Auto Parts Co. Ltd. Controlled by JMCG
Ford Motor (China) Co. Ltd. Controlled by Ford
Ford Trading Company LLC Controlled by Ford
Ford Motor Research & Engineering (Nanjing) Co.Ltd. Controlled by Ford
Ford Global Technologies LLC Controlled by Ford
Ford Vietnam Limited Controlled by Ford
Ford Motor Co. Thailand Ltd. Controlled by Ford
Auto Alliance (Thailand) Co. Ltd. Controlled by Ford
Ford Electric Mach Technology (Nanjing) Co. Ltd. Controlled by Ford
Changan Ford Automobile Co. Ltd. Joint venture of Ford
87JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(4) Information of other related parties
Relationship with the Group
China Changan Group Tianjin Sales Co. Ltd. Controlled by Ultimate Holding Companyof Chongqing Changan
Chongqing Anfu Vehicle Marketing Co. Ltd. Controlled by Ultimate Holding Companyof Chongqing Changan
Controlled by Ultimate Holding Company
Chengdu Wanxing Vehicle Sales & Service Co. Ltd. of Chongqing Changan
Guizhou Wanfu Vehicle Sales & Service Co. Ltd. Controlled by Ultimate Holding Companyof Chongqing Changan
Beijing Baiwang Changfu Vehicle Sales & Service Co. Controlled by Ultimate Holding Company
Ltd. of Chongqing Changan
Beijing Beifang Changfu Vehicle Sales & Service Co. Controlled by Ultimate Holding Company
Ltd. of Chongqing Changan
Guizhou Wanjia Automobile Sales and Service Co. Controlled by Ultimate Holding Company
LTD of Chongqing Changan
Harbin Dongan Automotive Engine Manufacturing Co. Controlled by Ultimate Holding Company
Ltd. of Chongqing Changan
Nanchang Yinlun Heat-exchanger Co. Ltd. Joint venture of JMCG
Jiangling Motor Holdings Co. Ltd. Associate of JMCG
Magna PT Powertrain (Jiangxi) Co. Ltd. Associate of JMCG
Nanchang Baojiang Steel Processing Distribution Co.Ltd. Associate of JMCG
Faurecia Emissions Control Technologies (Nanchang)
Co. Ltd. Associate of JMCG
Jiangxi Jiangling Group Special Vehicle Co. Ltd. Associate of JMCG
Nanchang JMCG SMR Huaxiang Mirror Co. Ltd. Associate of JMCG
Jiangxi Lingyun Automobile Industry Technology Co.Ltd. Associate of JMCG
Jiangxi Zhonglian Intelligent Logistics Co. Ltd. Associate of JMCG
Nanchang JMCG Xinchen Auto Component Co. Ltd. Associate of JMCG
Dibao transportation equipment (Nanchang) Co. Ltd. Associate of JMCG
Bosch Electric Drive Systems (Nanchang) Co. Ltd. Associate of JMCG
Jiangxi Jingwei Hirain Technologies Co. Inc. Associate of JMCG
88JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(5) Related party transactions
(a) Purchase and sales of goods provision and receipt of services
Purchase of goods:
Six months ended 30 June
Nature of related
party transactions 2025 2024
Magna PT Powertrain (Jiangxi) Co. Purchase of
Ltd. automobile parts 615426603 600584838
Nanchang Jiangling HuaXiang Auto Purchase of
Components Co. Ltd. automobile parts 475708044 590768738
Jiangxi Jiangling Chassis Co. Ltd. Purchase ofautomobile parts 456223430 393178316
Nanchang Baojiang Steel Processing Purchase of raw
Distribution Co. Ltd. materials 393721342 405780356
Jiangxi Zhonglian Intelligent Logistics Purchase of
Co. Ltd. automobile parts 356907375 377760824
Jiangxi Jiangling Lear Interior Purchase of
System Co. Ltd. automobile parts 351786847 347400376
Jiangxi Jiangling Special Purpose Purchase of
Vehicle Co. Ltd. automobile parts 324790233 264589567
Nanchang JMCG Liancheng Auto Purchase of
Component Co. Ltd. automobile parts 178172213 177941031
Faurecia Emissions Control Purchase of
Technologies (Nanchang) Co. Ltd. automobile parts 109443670 108646612
Ford Purchase ofautomobile parts 105699063 780177730
Nanchang Unistar Electric & Purchase of
Electronics Co. Ltd. automobile parts 102115941 116897654
Jiangxi Lingyun Automobile Industry Purchase of
Technology Co. Ltd. automobile parts 99583790 97543965
Nanchang JMCG Shishun Logistics Purchase of
Co. Ltd. automobile parts 98311283 87848436
Harbin Dongan Automotive Engine Purchase of
Manufacturing Co. Ltd. automobile parts 97181277 -
Jiangxi Jingwei Hirain Technologies Purchase of
Co. Inc. automobile parts 72032364 -
Hanon Systems Purchase ofautomobile parts 61455877 66928237
Nanchang JMCG SMR Huaxiang Purchase of
Mirror Co. Ltd. automobile parts 59494853 60847557
Nanchang Yinlun Heat-exchanger Purchase of
Co. Ltd. automobile parts 58949235 58593286
Changan Ford Automobile Co. Ltd. Purchase ofautomobile parts 51634635 68157110
Dibao transportation equipment Purchase of
(Nanchang) Co. Ltd. automobile parts 39406356 35165670
Jiangxi Lingge Non-ferrous Metal Purchase of
Die-casting Co. Ltd. automobile parts 34941067 33360233
Jiangxi JMCG Specialty Vehicles Purchase of
Co. Ltd. automobile parts 29024057 28757183
Jiangxi Jiangling Group Special Purchase of
Vehicle Co. Ltd. automobile parts 19227733 23270189
89JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(5) Related party transactions
(a) Purchase and sales of goods provision and receipt of services
Purchase of goods(Cont’d):
Jiangxi JMCG Boya brake system Purchase of
Co. Ltd. automobile parts 18123765 11236000
Nanchang Lianda Machinery Co. Purchase of
Ltd. automobile parts 16682458 15348196
Jiangling Automobile Group
(Nanchang) Fushan Energy Co. Purchase of raw
Ltd. materials
1439901115562142
Jiangxi JMCG Shangrao Industrial Purchase of
Co.Ltd. automobile parts 14096083 13577892
Jiangxi Mingfang Auto Parts Industry Purchase of
Co. Ltd. automobile parts 11020726 5908983
Jiangxi Jiangling group Fuxin Auto Purchase of
Parts Co. Ltd. automobile parts 8510953 10743777
Bosch Electric Drive Systems Purchase of
(Nanchang) Co. Ltd. automobile parts 7826726 -
Jiangling Aowei Automobile Spare Purchase of
Part Co. Ltd. automobile parts 5264524 5562150
Nanchang JMCG Xinchen Auto Purchase of
Component Co. Ltd. automobile parts 3157004 3127958
JMCG Purchase ofautomobile parts 2511812 22525005
Nanchang Jiangling Group Frame Purchase of
Co. Ltd automobile parts 1831595 -
Jiangxi ISUZU Engine Co. Ltd. Purchase ofautomobile parts 1429344 40104
Ford Motor Co. Thailand Ltd. Purchase ofautomobile parts 1406550 68314885
Jiangling Motor Holdings Co. Ltd. Purchase ofautomobile parts 1315804 1126880
Jiangxi Lingrui Recycling Resources Purchase of raw
Development Corporation materials 17479 16477867
Auto Alliance (Thailand) Co. Ltd. Purchase ofautomobile parts 625550 2915565
Nanchang Gear Forging Co.Ltd. Purchase ofautomobile parts 939798 1061737
JMCG Jingma Motors Co. Ltd. Purchase ofautomobile parts 18478 1038886
43004149484918765935
The products purchased by the Group from related parties are divided into two categories:
purchase of imported parts and purchase of domestic parts.The pricing on imported parts purchased from Ford or its suppliers is based on the
agreed price by both parties;
The pricing on domestic accessories purchased from other related parties is determined
through quotation cost accounting and negotiation between the two parties and is
adjusted regularly.
90JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods provision and receipt of services (Cont’d)
Receipt of services:
Six months ended 30 June
Nature of related party
transactions 2025 2024
Nanchang JMCG Shishun Transportation
Logistics Co. Ltd. removal fee etc. 155311266 147357676
Trademark
Ford Global Technologies LLC management feestechnology 86110654 130437253
development
Ford Motor Research & Design fee Personnel
Engineering (Nanjing) Co. Ltd. costs 66182110 73479037
Ford Technical services andpersonnel costs 41545223 27438900
Jiangxi Zhonglian Intelligent Cartage fee storage
Logistics Co. Ltd. fee etc. 29651515 45941842
Ford Motor (China) Co. Ltd. Design fee Personnelcosts etc. 36140632 27098764
Jiangxi JMCG Industry Co. Ltd. Meals 16289997 16543562
Jiangxi Jiangling Motors Imp. & Agency fee
Exp. Co. Ltd. advertising fee etc. 6740642 9290495
JMCG Property Management Co. Property fees etc. 6669045 7073104
JMCG Jiangxi Engineering Engineering
Construction Co. Ltd. construction 4742946 117416875
JMCG Labour fee rental feeetc. 3371580 349520
Jiangxi Jingwei Hirain
Technologies Co. Inc. Design fees 2298200 -
Chongqing Anfu Vehicle
Marketing Co. Ltd. Promotion 1936652 1604135
Magna PT Powertrain (Jiangxi) Design fee
Co. Ltd. experimental costs 1914618 190790
China Changan Group Tianjin
Sales Co. Ltd. Promotion 1864600 500867
Chongqing Changan Automobile
Co. Ltd. Personnel costs 1285866 1287423
Guizhou Wanfu Vehicle Sales &
Service Co. Ltd. Promotion 1027748 276632
Jiangxi JMCG Specialty Vehicles
Sales Corporation Ltd. Promotion - 1180264
463083294607467139
The Group’s pricing on services received from related parties is based on the agreed price by both parties.
91JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods provision and receipt of services (Cont’d)
Sales of goods and provision of services:
Six months ended 30 June
Nature of related
party transactions 2025 2024
Jiangxi Jiangling Motors Imp. & Sales of vehicles
Exp. Co. Ltd. and accessories etc. 6011263897 5042910917
Jiangxi JMCG Specialty Vehicles
Sales Corporation Ltd. Sales of vehicles 103335709 49551991
Jiangxi JMCG Specialty Vehicles Sales of vehicles
Co. Ltd. and accessories 61861871 35660121
Chongqing Anfu Vehicle Sales of vehicles
Marketing Co. Ltd. and accessories 60329061 55047669
JMCG Jingma Motors Co. Ltd. Sales of vehiclesand accessories 51445265 67278640
Jiangxi Lingrui Recycling
Resources Development Sales of accessories
Corporation and waste materials
3574156833437495
Chengdu Wanxing Vehicle Sales Sales of vehicles
& Service Co. Ltd. and accessories 28676309 43979176
China Changan Group Tianjin Sales of vehicles
Sales Co. Ltd. and accessories 23377989 45621776
Guizhou Wanfu Vehicle Sales & Sales of vehicles
Service Co. Ltd. and accessories 21092325 25337145
Jiangxi Jiangling Chassis Co. Sales of
Ltd. accessories etc. 18339260 17336576
Nanchang Hengou Industry Co.Ltd. Sales of accessories 15439211 8697566
Nanchang Jiangling HuaXiang Sales of
Auto Components Co. Ltd. accessories etc. 13227215 10562548
Nanchang JMCG SMR Huaxiang Sales of
Mirror Co. Ltd. accessories etc. 12793698 14319726
Jiangxi Jiangling Group Special Sales of vehicles
Vehicle Co. Ltd. and accessories 10849292 14599239
Jiangxi Zhonglian Intelligent Sales of
Logistics Co. Ltd. accessories etc. 10533862 33330915
Jiangxi Jiangling Lear Interior Sales of
System Co. Ltd. accessories etc. 8478228 8935487
Jiangxi ISUZU Engine Co. Ltd. Sales ofaccessories etc. 7991895 16335938
Nanchang JMCG Liancheng Auto Sales of
Component Co. Ltd. accessories etc. 7108114 8093548
Jiangxi ISUZU Co. Ltd. Sales ofaccessories etc. 7060132 8510068
92JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods provision and receipt of services (Cont’d)
Sales of goods and provision of services(Cont’d):
Six months ended 30 June
Nature of related party
transactions 2025 2024
Jiangxi JMCG Industry Co. Ltd. Sales of accessoriesand waste materials 4011751 1704763
Jiangxi Jiangling Special Sales of vehicles
Purpose Vehicle Co. Ltd. and accessories 2446876 2800546
Beijing Baiwang Changfu
Vehicle Sales & Service Co. Sales of vehiclesand accessories 193894 11027317Ltd.Guizhou Wanjia Automobile Sales of vehicles
Sales and Service Co. LTD and accessories 21318 7248862
Beijing Beifang Changfu Vehicle Sales of vehicles
Sales & Service Co. Ltd. and accessories 230857 4420133
65158495975566748162
The Group’s pricing on goods sold to related parties is based on the agreed price by both parties.(b) Leases
(i) The lease income recognised in the current period with the Group as the lessor:
Six months ended 30 June
Name of the lessee Type of the leased asset 2025 2024
Jiangling Motor Holdings Co. Ltd. Buildings 8935 14727
Jiangxi ISUZU Co. Ltd. Buildings 2945 -
1188014727
(ii) Increase of right-of-use assets in the current period with the Group as the lessee
Six months ended 30 June
Name of the lessee Type of the leased asset 2025 2024
Jiangxi Jiangling Motors Imp. &
Exp. Co. Ltd. Buildings - 37552314
(iii) Interest costs on lease liabilities in the current period with the Group as the lessee:
Six months ended 30 June
Name of the lessee
Name of the lessee Type of the leased asset 2025 2024
Jiangxi Jiangling Motors Imp. &
Exp. Co. Ltd. Buildings 455655 426978
JMCG Buildings 84749 301701
Ford Motor (China) Co. Ltd Buildings 10804 -
551208728679
93JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(c) Guarantee received
Guaranteed
Guarantor amount Starting date Ending date Fully performed or not
JMCF 1171938 5 March 2001 30 October 2029 Not fully performed
As at 30 June 2025 JMCF provided guarantees for some bank borrowings of the Group with
a maximum guarantee limit of USD2282123. As at 30 June 2025 JMCF provided borrowing
guarantee to the bank borrowing of USD163710 equivalent to RMB1171938 (31 December
2024: USD196453 equivalent to RMB1412180) for the Group.
(d) Transfer of assets
Six months ended 30 June
Nature of related party
transactions 2025 2024
Shanxi Yunnei Power Group Co. Ltd. Sales of fixed assets 8340 -
Jiangxi JMCG Industry Co. Ltd. Sales of fixed assets 3658 4442
JMCG Jingma Motors Co. Ltd. Sales of fixed assets - 44381
1199848823
The pricing on transfer of assets between the Group and related parties is based on the
agreed price by both parties.(e) Purchase of assets
Six months ended 30 June
Nature of related party
transactions 2025 2024
Jiangxi Jiangling Special Purpose Purchase of fixed assets
Vehicle Co. Ltd. 19211155 2140583
Nanchang JMCG Liancheng Auto Purchase of fixed assets
Component Co. Ltd. 3890000 -
Jiangxi Jiangling Chassis Co. Purchase of fixed assets
Ltd. 2100000 -
Magna PT Powertrain (Jiangxi) Purchase of fixed assets
Co. Ltd. 1712116 738376
Nanchang Jiangling HuaXiang Purchase of fixed assets
Auto Components Co. Ltd. - 11714950
JMCG Jingma Motors Co. Ltd. Purchase of fixed assets - 3928253
Jiangxi Jiangling Special Purpose Purchase of fixed assets
Vehicle Co. Ltd. - 2079737
2691327120601899
The pricing on purchase of assets between the Group and related parties is based on the agreed
price by both parties.
94JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(f) Provision of technology sharing and distribution service
Six months ended 30 June
Nature of related party
transactions 2025 2024
Ford Electric Mach Technology Technical service 72814268 55406177
(Nanjing) Co. Ltd.Ford Global Technologies LLC Technical service 15853895 -
Ford Motor (China) Co. Ltd. Distribution and technical 13355759 12653421service
Jiangxi Jiangling Motors Imp. & Technical service 2750566 13958000
Exp. Co. Ltd.Ford Vietnam Limited Technical service 1452183 7250000
Ford Motor Research & Technical service - 19141233
Engineering (Nanjing) Co. Ltd.Ford Trading Company LLC Technical service - 2450000
106226671110858831
The Group’s pricing on technology sharing provided to related parties is based on the agreed
price by both parties.(g) Remuneration of key management
Six months ended 30 June
20252024
Remuneration of key management 7897859 9376278
(h) Interest income
Six months ended 30 June
20252024
JMCF 7873071 8461182
Cash at bank of the Group deposited with JMCF was calculated based on the bank annual
interest rate for RMB deposit of 0.85% to 1.55% over the same period (the six months ended
30 June 2024：1.35% to 2.25%).
(i) Interest expenses
Six months ended 30 June
20252024
Ford Motor (China) Co. Ltd. 2629588 -
Jiangxi Zhonglian Intelligent Logistics Co. Ltd. - 120000
Nanchang JMCG Shishun Logistics Co. Ltd. - 30000
2629588150000
(j) Funds borrowed in
Six months ended 30 June
20252024
Ford Motor (China) Co. Ltd. 85750000 -
95JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(6) Receivables from and payables to related parties
30 June 2025 31 December 2024
Provision Provision
for bad for bad
Accounts receivable Amount debts Amount debts
Jiangxi Jiangling Motors Imp. &
Exp. Co. Ltd. 4168764395 8456123 2984138301 6078032
JMCG Jingma Motors Co. Ltd. 36989454 120370 33013773 99416
Jiangxi JMCG Specialty
Vehicles Sales Corporation Ltd. 18114890 2721 6455121 1920
Jiangxi JMCG Specialty
Vehicles Co. Ltd. 15322698 2908 55452936 17776
Ford Motor (China) Co. Ltd. 8400157 25200 6304028 18912
Jiangxi ISUZU Co. Ltd. 7986005 25935 3720130 11160
Nanchang Jiangling HuaXiang
Auto Components Co. Ltd. 7054757 21164 5182808 15548
Jiangxi Zhonglian Intelligent
Logistics Co. Ltd. 5849606 17549 19871496 59614
Jiangxi Jiangling Lear Interior
System Co. Ltd. 3961394 11884 4753891 14262
Jiangxi ISUZU Engine Co. Ltd. 3660181 10981 7314839 21945
Nanchang JMCG Liancheng
Auto Component Co. Ltd. 2763243 8290 3764288 11293
Jiangxi Jiangling Group Special
Vehicle Co. Ltd. 1017884 153 - -
Ford Electric Mach Technology
(Nanjing) Co. Ltd. 230000 690 7673176 23020
Ford Vietnam Limited 483022 1449 3850000 11550
4280597686870541731414947876384448
Other receivables
Jiangxi Jiangling Motors Imp. &
Exp. Co. Ltd. 7754132 40744 4959843 24439
30 June 2025 31 December 2024
Advances to suppliers
Nanchang Baojiang Steel Processing Distribution Co. Ltd. 41393500 82972689
Prepayment for projects
Jiangxi Jiangling Motors Imp. & Exp. Co. Ltd. 152334 -
Financing receivables
Jiangxi JMCG Specialty Vehicles Co. Ltd. 28000979 48401766
JMCG Jingma Motors Co. Ltd. 13800036 8972230
Jiangxi ISUZU Engine Co. Ltd. 1254500 5496370
Jiangxi Jiangling Special Purpose Vehicle Co. Ltd. - 2079413
Jiangxi ISUZU Co. Ltd. - 110000
4305551565059779
Cash at bank
JMCF 1360490633 1407604416
96JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(6) Receivables from and payables to related parties (Cont’d)
30 June 2025 31 December 2024
Accounts payable
Nanchang Jiangling HuaXiang Auto Components Co.Ltd. 450560485 636898853
Jiangxi Jiangling Lear Interior System Co. Ltd. 443558046 360356137
Jiangxi Zhonglian Intelligent Logistics Co. Ltd. 396990666 327079328
Jiangxi Jiangling Chassis Co. Ltd. 303987652 255072881
Jiangxi Jiangling Special Purpose Vehicle Co. Ltd. 262264048 178167668
Magna PT Powertrain (Jiangxi) Co. Ltd. 234145249 213711414
Nanchang JMCG Liancheng Auto Component Co. Ltd. 171641834 185528237
Harbin Dongan Automotive Engine Manufacturing Co.Ltd. 102693126 -
Nanchang JMCG Shishun Logistics Co. Ltd. 95141108 63592060
Ford 77776252 250461509
Jiangxi Lingyun Automobile Industry Technology Co. Ltd. 67672870 48459492
Faurecia Emissions Control Technologies (Nanchang) Co.Ltd. 67624600 66628906
Hanon Systems 58401360 50706474
Dibao transportation equipment (Nanchang) Co. Ltd. 57297461 55834503
Jiangxi JMCG Specialty Vehicles Co. Ltd. 52249719 26610602
Nanchang JMCG SMR Huaxiang Mirror Co. Ltd. 42186306 43878807
Nanchang Unistar Electric & Electronics Co. Ltd. 41013865 30195971
Nanchang Yinlun Heat-exchanger Co. Ltd. 39297207 37417773
Jiangxi Lingge Non-ferrous Metal Die-casting Co. Ltd. 26574147 28707639
Changan Ford Automobile Co. Ltd. 22302340 23802841
Jiangxi Jingwei Hirain Technologies Co. Inc. 19743709 -
Jiangxi Jiangling Group Special Vehicle Co. Ltd. 15138677 19674440
Jiangxi JMCG Boya brake system Co. Ltd. 12041807 9558647
Jiangxi JMCG Shangrao Industrial Co.Ltd. 11784964 7115719
Nanchang Lianda Machinery Co. Ltd. 9784545 10731546
Jiangxi Jiangling group Fuxin Auto Parts Co. Ltd. 9671830 3726062
Jiangxi Mingfang Auto Parts Industry Co. Ltd. 8692279 8944064
Bosch Electric Drive Systems (Nanchang) Co. Ltd. 8319791 -
JMCG 5927040 39486926
Jiangling Aowei Automobile Spare Part Co. Ltd. 4131291 6042853
Nanchang JMCG Xinchen Auto Component Co. Ltd. 3275783 2979179
JMCG Jingma Motors Co. Ltd. 2624506 2606028
Nanchang Jiangling Group Frame Co. Ltd 1831595 1091724
Jiangxi ISUZU Engine Co. Ltd. 1611664 2758942
Ford Motor Co. Thailand Ltd. 1422765 6940038
Jiangxi Lingrui Recycling Resources Development
Corporation - 11463008
Jiangxi Jiangling Motors Imp. & Exp. Co. Ltd. - 11243955
Jiangling Automobile Group (Nanchang) Fushan Energy
Co. Ltd. 951806 2922507
31303323933030396733
97JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(6) Receivables from and payables to related parties (Cont’d)
30 June 2025 31 December 2024
Other payables
Ford Motor (China) Co. Ltd. 233311158 144907458
Ford 95852918 69903294
Ford Global Technologies LLC 78524824 57533353
Jiangxi Jiangling Motors Imp. & Exp. Co. Ltd. 59039752 51837372
Ford Motor Research & Engineering (Nanjing) Co. Ltd. 53627396 61846021
Jiangxi Jiangling Special Purpose Vehicle Co. Ltd. 33479182 27838079
JMCG Jiangxi Engineering Construction Co. Ltd. 26411601 25905249
Nanchang Jiangling HuaXiang Auto Components Co. Ltd. 26258673 35565451
Nanchang JMCG Shishun Logistics Co. Ltd. 16440167 26831215
JMCG Property Management Co. 12055102 8466756
Jiangxi JMCG Specialty Vehicles Sales Corporation Ltd. 9439472 8431243
JMCG 6050389 7636166
Jiangxi JMCG Specialty Vehicles Co. Ltd. 5620020 5772611
Jiangxi Jiangling Chassis Co. Ltd. 5145999 1681716
Jiangxi JMCG Industry Co. Ltd. 2643705 3000344
Jiangxi Jingwei Hirain Technologies Co. Inc. 2533557 -
Magna PT Powertrain (Jiangxi) Co. Ltd. 1978748 1488027
Nanchang JMCG Liancheng Auto Component Co. Ltd. 1769818 1908156
Faurecia Emissions Control Technologies (Nanchang) Co.Ltd. 1728294 558188
Jiangxi Jiangling Lear Interior System Co. Ltd. 1705670 1518633
Chongqing Changan Automobile Co. Ltd.(hereinafter
referred to as “Chongqing Changan”) 1404500 2574845
Jiangxi Zhonglian Intelligent Logistics Co. Ltd. 903531 5703062
Guizhou Wanfu Vehicle Sales & Service Co. Ltd. 71929 2937977
675996405553845216
Contract liabilities
Ford Global Technologies LLC 160155205 -
Ford Electric Mach Technology (Nanjing) Co. Ltd. 68285785 62310452
Jiangxi Jiangling Motors Imp. & Exp. Co. Ltd. 5550816 3930000
Guizhou Wanjia Automobile Sales and Service Co. LTD 1323814 1318467
JMCG Jingma Motors Co. Ltd. 1001327 632699
Nanchang Hengou Industry Co. Ltd. - 1860835
Jiangxi Jiangling Special Purpose Vehicle Co. Ltd. - 1506350
Jiangxi Jiangling Group Special Vehicle Co. Ltd. - 1436028
23631694772994831
Lease liabilities
Jiangxi Jiangling Motors Imp. & Exp. Co. Ltd. 24268140 30593850
JMCG 1180864 5862186
Ford Motor (China) Co. Ltd. 510405 589853
2595940937045889
98JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(7) Commitments in relation to related parties
Capital commitments
30 June 2025 31 December 2024
JMCG Jiangxi Engineering Construction
Co. Ltd. 1897200 6640100
Guarantee of commitments in relation to related parties is set out in Note 8(5)(c).
9 Contingencies
As at 30 June 2025 the Group had no contingencies that needed to be disclosed in the notes
to the financial statements.
10 Commitments
Capital expenditure commitments
Capital expenditures contracted for by the Group but are not yet necessary to be recognised
on the balance sheet as at the balance sheet date are as follows:
30 June 2025 31 December 2024
Buildings machinery and equipment 395073000 477562000
99JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
11 Financial instrument and risk
The Group’s activities expose it to a variety of financial risks which mainly comprise market
risk (primarily including foreign exchange risk and interest rate risk) credit risk and liquidity
risk. The above financial risks and the Group’s risk management policies to mitigate the risks
are as follows:
The Board of Directors is responsible for planning and establishing the Group’s risk
management framework formulating the Group’s risk management policies and related
guidelines and supervising the implementation of risk management measures. The Group
has established risk management policies to identify and analyse the risks faced by the
Group. These risk management policies specify the risks such as market risk credit risk and
liquidity risk management. The Group regularly evaluates the market environment and
changes in the Group’s operating activities to determine whether to update the risk
management policies and systems or not. The Group’s risk management is carried out by
the Risk Management Committee under policies approved by the Board of Directors. The
Risk Management Committee works closely with other business departments of the Group
to identify evaluate and avoid relevant risks. The internal audit department of the Group
conducts periodical audit to the controls and procedures for risk management and reports
the audit results to the Audit Committee of the Group.
(1) Market risk
(a) Foreign exchange risk
The Group’s major operational activities are carried out in the mainland China and a majority
of the transactions are denominated in RMB. The Group is exposed to foreign exchange risk
arising from the recognised assets and liabilities and future transactions denominated in
foreign currencies primarily with respect to USD. The Group continuously monitors the
amount of assets and liabilities and transactions denominated in foreign currencies to
minimise the foreign exchange risk. As at 30 June 2025 the Group’s borrowings
denominated in foreign currencies were USD163710 equivalent to RMB1171938. The
Group's other accounts payable denominated in foreign currencies was USD14271673
equivalent to RMB102165197. The Group signed forward exchange contracts to mitigate
the foreign exchange risk(Note 5(2) Note 5(29)).
100JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
11 Financial instrument and risk (Cont’d)
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
The financial assets and financial liabilities denominated in foreign currencies which were
held by the Group were expressed in RMB as at 30 June 2025 and 31 December 2024 as
follows:
30 June 2025
USD EUR Total
Financial asset
denominated in foreign
currency -
Derivative financial
assets 4568083 - 4568083
Financial liabilities
denominated in foreign
currency -
Current portion of long- 468775 - 468775
term borrowings
Long-term borrowings 703163 - 703163
Other payables 102165197 - 102165197
103337135-103337135
31 December 2024
USD EUR Total
Financial asset
denominated in foreign
currency -
Derivative financial
assets 12612380 - 12612380
Financial liabilities
denominated in foreign
currency -
Current portion of long-
term borrowings 470727 - 470727
Long-term borrowings 941453 - 941453
Other payables 78220386 - 78220386
79632566-79632566
101JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
11 Financial instrument and risk (Cont’d)
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
As at 30 June 2025 for various types of foreign currency financial assets and foreign
currency financial liabilities if RMB appreciates or depreciates by 10% against the US
dollar and other factors remain unchanged the Group will increase or decrease its total
profit by approximately RMB9876905 (31 December 2024: approximately RMB6702019)
(b) Interest rate risk
The Group’s interest rate risk mainly arises from interest-bearing debts such as short-term
borrowings and long-term borrowings. The financial liabilities of floating interest rate
expose the Group to cash flow interest rate risk and the financial liabilities of fixed interest
rate expose the Group to fair value interest rate risk. The Group determines the relative
proportions of fixed-rate and floating-rate contracts based on the prevailing market
environment. As at 30 June 2025 the Group’s short-term borrowings of
RMB1400000000 (31 December 2024: RMB1500000000) were fixed-rate borrowings
and long-term borrowings of USD163710 (31 December 2024: USD196453) were fixed-
rate contracts therefore there was no significant cash flow interest rate risk.The Group continuously monitors the interest rate position of the Group. Increases in
interest rates will increase the cost of new borrowing and therefore could have a material
adverse effect on the Group’s financial performance. Management makes adjustments
timely with reference to the latest market conditions and may enter into interest rate swap
agreements to mitigate its exposure to interest rate risk. During the six months ended 30
June 2025 and 2024 the Group did not enter into any interest rate swap agreements.As at 30 June 2025 and 31 December 2024 there was no significant difference between
the fair value and the carrying amount of the Group’s bank borrowings with fixed rates.
(2) Credit risk
The Group’s credit risk mainly arises from cash at bank and on hand notes receivable
accounts receivable financing receivables other receivables long-term receivables and
derivative financial assets at fair value through profit or loss that are not included in the
impairment assessment scope. The carrying amount of the Group’s financial assets
reflects its maximum credit exposure at the balance sheet date.The Group expects that there is no significant credit risk associated with cash at bank and
on hand since they are deposited at state-owned banks and other large or medium size
banks with good reputation and high credit rating. The Group does not expect that there
will be significant losses from non-performance by these banks.
102JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
11 Financial instrument and risk (Cont’d)
(2) Credit risk (Cont’d)
The Group has policies to limit the credit exposure on notes receivable accounts
receivable financing receivables other receivables and long-term receivables. The Group
assesses the credit quality of and sets credit limits on its customers by taking into account
their financial position the availability of guarantee from third parties their credit history
and other factors such as current market conditions. The credit history of the customers is
regularly monitored by the Group. In respect of customers with a poor credit history the
Group will use written payment reminders or shorten or cancel credit periods to ensure
the overall credit risk of the Group is limited to a controllable extent.As at 30 June 2025 the Group had no significant collateral or other credit enhancements
held as a result of the debtor’s mortgage (31 December 2024: Nil).
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the
Group. The Group monitors rolling forecasts of the Group’s short-term and long-term
liquidity requirements to ensure it has sufficient cash while maintaining sufficient
headroom on its undrawn committed borrowing facilities from major financial institutions so
that the Group does not breach borrowing limits or covenants on any of its borrowing
facilities to meet the short-term and long-term liquidity requirements.As at the balance sheet date the financial liabilities of the Group were analysed by their
maturity date below at their undiscounted contractual cash flows:
30 June 2025
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term
borrowings 1400000000 - - - 1400000000
Accounts
payable 10276435013 - - - 10276435013
Other payables 5902281454 - - - 5902281454
Lease liabilities 86286511 16217736 3464182 - 105968429
Long-term
borrowings 484596 477564 236146 - 1198306
17665487574166953003700328-17685883202
31 December 2024
1 to 2
Within 1 year years 2 to 5 years Over 5 years Total
Short-term
borrowings 1500000000 - - - 1500000000
Accounts
payable 10061223944 - - - 10061223944
Other payables 5742026472 - - - 5742026472
Lease liabilities 90725324 84460529 10891131 - 186076984
Long-term
borrowings 490144 483082 476023 - 1449249
173944658848494361111367154-17490776649
103JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
11 Financial instrument and risk (Cont’d)
(3) Liquidity risk (Cont’d)
(i) As at 30 June 2025 the Group did not have lease contracts that had been signed but had not
yet been performed.
12 Fair value estimates
The level in which fair value measurement is categorised is determined by the level of the
fair value hierarchy of the lowest level input that is significant to the entire fair value
measurement:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.Level 2: Inputs other than quoted prices included within Level 1 that are observable for the
asset or liability either directly or indirectly.Level 3: Unobservable inputs for the asset or liability.
(1) Assets and liabilities measured at fair value on a recurring basis
As at 30 June 2025 the assets measured at fair value on a recurring basis by the above
three levels were analysed below:
Level 1 Level 2 Level 3 Total
Financial assets
Derivative financial asset-
Forward foreign exchange
contracts - 4568083 - 4568083
Financing receivables -
Notes receivable - 310302211 - 310302211
-314870294-314870294
As at 31 December 2024 the assets measured at fair value on a recurring basis by the
above three levels were analysed below:
Level 1 Level 2 Level 3 Total
Financial assets
Derivative financial asset-
Forward foreign exchange
contracts - 12612380 - 12612380
Financing receivables -
Notes receivable - 302065502 - 302065502
-314677882-314677882
104JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
12 Fair value estimates (Cont’d)
(1) Assets and liabilities measured at fair value on a recurring basis (Cont'd)
As at 30 June 2025 the Group had no continuing liabilities at fair value.The Group takes the date on which events causing the transfers between the levels take
place as the timing specific for recognising the transfers. There was no transfer between
Level 1 and Level 2 As at 30 June 2025.The fair value of financial instruments traded in an active market is determined at the
quoted market price; and the fair value of those not traded in an active market is
determined by the Group using valuation technique.
(2) Assets measured at fair value on a non-recurring basis
As at 30 June 2025 and 31 December 2024 the Group had no assets measured at fair
value on a non-recurring basis.
(3) Assets and liabilities not measured at fair value but for which the fair value is disclosed
The Group’s financial assets and liabilities measured at amortised cost mainly comprise
notes receivable accounts receivable other receivables long-term receivables short-term
borrowings payables lease liabilities and long-term borrowings.The carrying amount of the Group’s financial assets and liabilities not measured at fair
value is a reasonable approximation of their fair value.
13 Capital management
The Group’s capital management policies aim to safeguard the Group’s ability to continue
as a going concern in order to provide returns for shareholders and benefits for other
stakeholders and to maintain an optimal capital structure to reduce the cost of capital.In order to maintain or adjust the capital structure the Group may adjust the amount of
dividends paid to shareholders refund capital to shareholders issue new shares or sell
assets to reduce debts.The Group's total capital is calculated as “shareholders’ equity” as shown in the
consolidated balance sheet. The Group is not subject to external mandatory capital
requirements and monitors capital on the basis of equity ratio.As at 30 June 2025 and 31 December 2024 the Group’s equity ratio was as follows:
30 June 2025 31 December 2024
Total borrowings 1401171938 1501412180
Total shareholders’ equity 10543868112 10595344521
Equity ratio 13% 14%
105JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
14 Notes to the Company’s financial statements
(1) Accounts receivable
30 June 2025 31 December 2024
Accounts receivable 6792485882 5595070789
Less: Provision for bad debts (77047969) (74023216)
67154379135521047573
(a) The aging of accounts receivable was analysed as follows:
30 June 2025 31 December 2024
Within 1 year 6460195786 5415107619
Over 1 year 332290096 179963170
67924858825595070789
As of December 31 2024 accounts receivable with significant individual amounts and
aging exceeding three years was analysed as follows:
Balance Reason and collection risk
SZFJ 34049026 The Company evaluates the receivables from its
subsidiary SZFJ on an individual basis. Based on
the judgment of credit risk these receivables were
not subject to significant credit risk and were not
impaired.Company1 66796993 Due to the operating difficulties of the defaulting
company and several lawsuits involved the
Company considered that the receivables were
difficult to collect and had therefore made full
provision for bad debts.(b) As at 30 June 2025 the top five accounts receivable ranked by the balances of the
debtors were analysed as follows:
Amount of
provision for bad
Balance debts % of total balance
The total amount of
accounts receivable
in the top five 6519537469 75045090 95.98%
106JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
14 Notes to the Company’s financial statements (Cont’d)
(1) Accounts receivable (Cont’d)
(c) Provision for bad debts
For accounts receivable the Company measures the loss provision based on the lifetime
ECL regardless of whether there is a significant financing component.The provision for bad debts of accounts receivable was analysed by category as follows:
30 June 2025
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 2415852597 36% 66796993 2.76%
Provision for bad debts on the
grouping basis (ii) 4376633285 64% 10250976 0.23%
6792485882100%770479691.13%
31 December 2024
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 2294478118 41% 66796993 2.91%
Provision for bad debts on the
grouping basis (ii) 3300592671 59% 7226223 0.22%
5595070789100%740232161.32%
(i) Accounts receivable for which the provision for bad debts was provided on the individual
basis were analysed follows:
30 June 2025
Book balance Provision for bad debts
Amount Lifetime ECL (%) Provision for bad debts
Receivables from related parties
within the Group i) 2349055604 - -
Receivables for
automobiles ii) 66796993 100% 66796993
241585259766796993
31 December 2024
Book balance Provision for bad debts
Amount Lifetime ECL (%) Provision for bad debts
Receivables from related parties
within the Group i) 2227681125 - -
Receivables for
automobiles ii) 66796993 100% 66796993
229447811866796993
i) As at 30 June 2025 the Company’s accounts receivable from subsidiary Jiangling Ford
(Shanghai) SZFJ GZFJ and JMCS were RMB1280618554 RMB1015100113
RMB6960300 and RMB46376637 (31 December 2024: RMB1453456415
RMB767264410 RMB6960300 and Nil). The Company assessed the receivables from
subsidiaries individually and based on the judgment of credit risk the receivables from
subsidiaries were not subject to significant credit risk and were not overdue and impaired.
107JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
14 Notes to the Company’s financial statements (Cont’d)
(1) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(i) Accounts receivable for which the provision for bad debts was provided on the individual
basis were analysed follows (Cont’d):
ii) As at 30 June 2025 the Company assessed the expected credit losses of the relevant
accounts receivable which were expected to be unrecoverable and therefore made a
provision for bad debts in full amounting to RMB66796993 (31 December 2024:
RMB66796993) which no impact on profit or loss for the current period (the six months
ended 30 June 2024：no impact on profit or loss for the current period).(ii) Accounts receivable for which provision for bad debts was made on the grouping basis
were analysed as follows:
Grouping – Domestic sales of general automobiles:
30 June 2025
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 109066194 0.02% 16380
Overdue for 1 to 30 days 1136000 0.48% 5421
Overdue for 31 to 60 days 4562828 1.19% 54218
Overdue for 61 to 90 days 3124000 2.52% 78876
Overdue over 90 days 1691800 9.00% 152262
119580822307157
31 December 2024
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 136590607 0.03% 40628
Overdue for 1 to 30 days 840000 0.55% 4605
Overdue for 31 to 60 days - - -
Overdue for 61 to 90 days - - -
Overdue over 90 days 1074500 9.00% 96705
138505107141938
Grouping – Export sales of general automobiles:
30 June 2025
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 4085275267 0.20% 8170551
108JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
14 Notes to the Company’s financial statements (Cont’d)
(1) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows (Cont’d):
Grouping – Export sales of general automobiles(Cont’d):
31 December 2024
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 2933133292 0.20% 5866267
Grouping - Sales of new energy automobiles:
30 June 2025
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Overdue over 90 days 562680 80.00% 450144
31 December 2024
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Overdue over 90 days 563760 80.00% 451008
Grouping – Automobile parts:
30 June 2025
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 129315319 0.30% 387946
Overdue for 1 to 30 days 10742088 0.30% 32226
Overdue for 31 to 60 days 9434791 0.50% 47174
Overdue for 61 to 90 days 5234958 0.60% 31410
Overdue over 90 days 16487360 5.00% 824368
1712145161323124
31 December 2024
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 202384142 0.30% 607153
Overdue for 1 to 30 days 10256078 0.30% 30768
Overdue for 31 to 60 days 8788453 0.50% 43942
Overdue for 61 to 90 days 5976016 0.60% 35856
Overdue over 90 days 985823 5.00% 49291
228390512767010
109JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
14 Notes to the Company’s financial statements (Cont’d)
(1) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(iii) The accrued amount of provision for bad debts for the period was RMB3024753.(d) There was no provision for bad debts actually written off during the period.(e) As at 30 June 2025 and 31 December 2024 there were no accounts receivable pledged.
(2) Other receivables
30 June 2025 31 December 2024
Receivables from Jiangling Ford
(Shanghai) 181236919 89250000
Receivables from JMCH 12858981 14542410
Gas and electricity bills 8799782 18531901
Import working capital 5000000 3900523
Stock repurchase securities funds 1099623 -
Receivables from refund of social
insurance - 1297367
Others 22402496 17315330
231397801144837531
Less: Provision for bad debts (192342) (220324)
231205459144617207
The Company did not have any fund deposited at other parties under the centralised fund
management and represented in other receivables.(a) The aging of other receivables was analysed as follows:
30 June 2025 31 December 2024
Within 1 year 219141862 131654349
Over 1 year 12255939 13183182
231397801144837531
110JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
14 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements
The provision for bad debts of other receivables were analysed by category as follows:
30 June 2025
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 195195523 84% - -
Provision for bad debts on the
grouping basis (ii) 36202278 16% 192342 0.53%
231397801100%1923420.08%
31 December 2024
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 105089777 73% - -
Provision for bad debts on the
grouping basis (ii) 39747754 27% 220324 0.55%
144837531100%2203240.15%
111JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
14 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements (Cont’d):
Stage 1
12-month ECL (grouping) 12-month ECL (individual) Total
Provision
Book Provision for for bad Provision for
balance bad debts Book balance debts bad debts
31 December 2024 39747754 220324 105089777 - 220324
Increase in the
current period - - 90105746 - -
Decrease in the
current period (3545476) - - - -
Bad debt provision
decreased in the
current period - (27982) - - (27982)
30 June 2025 36202278 192342 195195523 - 192342
As at 30 June 2025 and 31 December 2024 the Company did not have any other receivables
at Stage 2 or Stage 3. Other receivables at Stage 1 were analysed below:
(i) As at 30 June 2025 and 31 December 2024 the Company’s other receivables with provision
for bad debts on the individual basis were analysed below:
30 June 2025
12-month ECL Provision for
Stage 1 Book balance rates bad debts Reason
Receivables from Jiangling Ford
(Shanghai) 181236919 - - i)
Receivables from JMCH 12858981 - - ii)
Stock repurchase securities
funds 1099623 - -
195195523--
The Company assessed the receivables from subsidiary and stock repurchase securities
funds based on the judgment of credit risk the receivables were not subject to significant
credit risk and were not overdue and impaired.
31 December 2024
12-month ECL Provision for
Stage 1 Book balance rates bad debts Reason
Receivables from Jiangling
Ford (Shanghai) 89250000 - - i)
Receivables from JMCH 14542410 - - ii)
Receivables from refund of
social insurance 1297367 - -
105089777--
112JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
14 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements (Cont’d):
(ii) As at 30 June 2025 and 31 December 2024 the Company’s other receivables with provision
for bad debts on the grouping basis were analysed below:
Other receivables with provision on the grouping basis at Stage 1:
As at 30 June 2025 the Company’s other receivables with provision for bad debts on the
grouping basis were analysed below:
Book 12-month Provision for
balance ECL rates bad debts Reason
Provision on the grouping basis:
Gas and electricity bills 8799782 0.53% 46238 ECL
Import working capital 5000000 0.53% 26272 ECL
Others 22402496 0.53% 119832 ECL
36202278192342
As at 31 December 2024 the Company’s other receivables with provision for bad debts on the
grouping basis were analysed below:
Book 12-month ECL Provision for
balance rates bad debts Reason
Provision on the grouping basis:
Gas and electricity bills 18531901 0.49% 91314 ECL
Import working capital 3900523 0.49% 19219 ECL
Others 17315330 0.63% 109791 ECL
39747754220324
(c) The reversed provision for bad debts in the current period amounted to RMB27982.(d) There was no provision for bad debts written off during the period.
113JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
14 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables (Cont’d)
(e) As at 30 June 2025 the top five other receivables ranked by remaining balances
were analysed as follows:
Provisio
% of total n for bad
Nature Balance Aging balance debts
Receivables from
Company 1 subsidiaries 181236919 within 1 year 78% -
Receivables from
Company 2 subsidiaries 12858981 Over 1 year 6% -
Company 3 Gas bills 8799782 within 1 year 4% 46238
Import
Company 4 working capitaletc 7754132 within 1 year 3% 40744
Claim for
Company 5 compensation 2166155 within 1 year 1% 11382
21281596992%98364
(3) Long-term equity investments
30 June 2025 31 December 2024
Subsidiaries (a) 2858943493 2858943493
Associates (b) 204645696 214449021
30635891893073392514
Less:Provision for impairment of long-term
equity investments for subsidiaries (2301440553) (2301440553)
Provision for impairment of long-term
equity investments for associates - -
(2301440553)(2301440553)
762148636771951961
114JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
14 Notes to the Company’s financial statements (Cont’d)
(3) Long-term equity investments (Cont’d)
(a) Subsidiaries
Movements for
the current period
Ending balance Cash dividends
31 December Additional of provision for declared this
2024 investments 30 June 2025 impairment period 30 June 2025
Carrying
Gross amount Gross amount amount
JMCH 2686943493 - 2686943493 (2301440553) - 385502940
JMCS 50000000 - 50000000 - - 50000000
SZFJ 10000000 - 10000000 - - 10000000
GZFJ 10000000 - 10000000 - - 10000000
Jiangling Ford
(Shanghai) 102000000 - 102000000 - - 102000000
2858943493-2858943493(2301440553)-557502940
(b) Associates
Movements for the current period Impairment provision
Share of net
Increase in profit/(loss) Cash Voting 31
31 December the current under equity dividends Provision for Shareholding rights 30 June December
2024 period method declared impairment 30 June 2025 (%) (%) 2025 2024
The Power
Company 189544236 - (12067272) - - 177476964 40% 40% - -
Hanon
Systems 24904785 - 2263947 - - 27168732 19.15% 33.33% - -
Total 214449021 - (9803325) - - 204645696 - -
- 115 -JIANGLING MOTORS CORPORATION LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
14 Notes to the Company’s financial statements (Cont’d)
(4) Revenue and cost of sales
The six months ended 30 June
20252024
Revenue from main operations 17063223739 16828092423
Revenue from other operations 342945766 1057857635
1740616950517885950058
The six months ended 30 June
20252024
Cost of sales from main operations 15018996560 14766862877
Cost of sales from other operations 220930116 409504678
1523992667615176367555
(a) Revenue and cost of sales from main operations
The six months ended 30 June
20252024
Cost of sales Cost of sales
Revenue from from main Revenue from from main
main operations operations main operations operations
(Restated)
Sales of
automobiles 16289695231 14433831338 16001794796 14131205491
Sales of
automobile
parts 766519823 578156537 787392775 596752534
Automobile
maintenance
services and
others 7008685 7008685 38904852 38904852
17063223739150189965601682809242314766862877
(b) Revenue and cost of sales from other operations
The six months ended 30 June
20252024
Cost of sales Cost of sales
Revenue from from other Revenue from from other
other operations operations other operations operations
Sales of
materials 219772653 197371409 326770645 312926556
Others 123173113 23558707 731086990 96578122
3429457662209301161057857635409504678
116JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
14 Notes to the Company’s financial statements (Cont’d)
(4) Revenue and cost of sales (Cont’d)
The breakdown of the Company’s revenue by product and service transfer time was as
(c) follows:
The six months ended 30 June 2025
Automobile
Automobile maintenance Materials
Automobiles parts services etc. and others Total
Revenue from main
operations 16289695231 766519823 7008685 - 17063223739
Including: Recognised at a
time point 16289695231 766519823 - - 17056215054
Recognised within
a certain period - - 7008685 - 7008685
Revenue from other
operations (i) - - - 342945766 342945766
16289695231766519823700868534294576617406169505
The six months ended 30 June 2024
Automobile
Automobile maintenance Materials
Automobiles parts services and others Total
Revenue from main
operations 16001794796 787392775 38904852 - 16828092423
Including: Recognised at a
time point 16001794796 787392775 - - 16789187571
Recognised
within a certain
period - - 38904852 - 38904852
Revenue from other
operations (i) - - - 1057857635 1057857635
1600179479678739277538904852105785763517885950058
(i) The Company’s revenue from other operations includes sales of materials and technical
service provided. Revenue from sales of materials is recognised at a certain time point and
revenue from technical service provided is recognised within a certain period.As at 30 June 2025 the amount of revenue corresponding to the performance obligations
that the Company had contracted but had not commenced or completed was
RMB272153347 which the Company expected that would be recognised as revenue in
2025.
(5) Investment income
The six months ended 30 June
20252024
Investment gain from forward exchange
settlement 10631603 5982935
Losses on discount of financing receivables
eligible for derecognition (1422995) -
Losses on long-term equity investments under
equity method (9803325) (2527255)
(594717)3455680
There is no significant restriction on the remittance of investment income to the Company.
117JIANGLING MOTORS CORPORATION LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
1 Statement of non-recurring profit or loss
The six months ended 30 June
20252024
Government grants recognised in profit or loss for
the current period except those that are closely
related to ordinary activities and conform to the
national policies and regulations and are
granted in accordance with certain standards
and have a continuous impact on the
Company’s profit or loss 202242182 76378976
Gains or losses on disposal of non-current assets 18414462 10591898
Fund occupation fees received from non-financial
institutions 1240008 3230604
Gains or losses arising from changes in fair value
of financial assets and liabilities held and gains
or losses on disposal of related financial assets
and liabilities except for the effective hedging
business related to the normal operation 3713253 13584473
Net amount of other non-operating income and
expenses 1448653 (4020858)
One-off expenses incurred due to discontinuation
of related business activities (86573) (523093)
22697198599242000
Effect of income tax (33644788) (15639039)
Effect of gains or losses on minority interests (net
of tax) (515356) 704668
19281184184307629
(1) Basis for preparation of statement of non-recurring profit or loss
In 2023 the CSRC issued the Explanatory Announcement No. 1 on Information Disclosure
by Companies Offering Securities to the Public - Non-recurring Profit or Loss (Revised in
2023) (hereinafter “2023 Explanatory Announcement No. 1 ”) which came into effect from
the date of promulgation.Under the requirements in the 2023 Explanatory Announcement No. 1 non-recurring profit
or loss refers to those arises from transactions and events that are not directly relevant to
ordinary activities or that are relevant to ordinary activities but are extraordinary and not
expected to happen frequently that would have an influence on the financial statements
users’ making economic decisions based on the financial performance and profitability of
an enterprise.
1JIANGLING MOTORS CORPORATION LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 June 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Return on net assets and earnings per share
Weighted average Earnings per share
return on net assets Basic earnings per Diluted earnings
(%) share per share
The six months ended 30 June
202520242025202420252024
Net profit attributable to
ordinary shareholders
of the Company 6.30% 8.29% 0.85 1.04 0.85 1.04
Net profit attributable to
ordinary shareholders
of the Company net of
non-recurring profit or
loss 4.64% 7.51% 0.63 0.94 0.63 0.94
2
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