Jiangling Motors Corporation Ltd.
2026 Half-year Report
1Chapter I Important Notes Contents and Abbreviations
Important Notes
The Company’s Board of Directors and its members and senior management
warrant that the contents of the Half?Year Report are true accurate and
complete free of any false records misleading statements or material
omissions and assume individual and joint?and?several legal liabilities therefor.Chairman Qiu Tiangao CFO Li Weihua and Chief of Finance Department
Jiang Nan warrant that the Financial Statements in this Half-year Report are
true accurate and complete.All the Directors were present at the Board meeting to review this Half-year
Report.Future plans development strategies and other forward-looking statements in
this Report do not constitute a substantive commitment of the Company to
investors. Investors are reminded to note investment risks.The Company's possible risks and countermeasures are set out in Section 3 of
this Report "Management’s Discussion and Analysis". Please investors refer
to the relevant content.Neither cash dividend nor stock dividend is to be distributed. The Board has
decided not to convert capital reserves into share capital for this period.The Half-year Report is prepared in Chinese and English. In case of
discrepancy the Chinese version will prevail.
2Contents
Chapter I Important Notes Contents and Abbreviatio... 2
Chapter II Brief Introduction and Operating Highli... 5
Chapter III Management Discussion and Analysis ...... 8
Chapter IV Corporate Governance Structure Environment and Social ... 21
Chapter V Major events ............................. 23
Chapter VI Share Capital Changes & Shareholders .... 27
Chapter VII Bond related Information ............... 31
Chapter VIII Financial Statements .................. 32
3Catalogue on Documents for Reference
1. Originals of 2026 Half-year financial statements signed by Chairman Chief
Financial Officer and Chief of Finance Department.
2. Originals of all the documents and public announcements disclosed in
newspapers designated by CSRC in the first half of 2026.
3. English version of the Half-year Report prepared per the China GAAP.
Abbreviations:
CSRC China Securities Regulatory Commission
JMCG Jiangling Motors Group Co. Ltd.Ford Ford Motor Company
JIC Nanchang Jiangling Investment Co. Ltd.JMC or the Company Jiangling Motors Corporation Ltd.EVP Executive Vice President
CFO Chief Financial Officer
VP Vice President
4Chapter II Brief Introduction and Operating Highlights
1. Company’s information
Share’s name Jiangling Motors Jiangling B Share’s Code 000550 200550
Place of listing Shenzhen Stock Exchange
Company’s Chinese江铃汽车股份有限公司
name
English name Jiangling Motors Corporation Ltd.Abbreviation JMC
Company legal
Qiu Tiangao
representative
2. Contact person and method
Board Secretary Securities Affairs Representative
Name Wu Jiehong Quan Shi
No. 2111 Yingbin Middle Avenue No. 2111 Yingbin Middle Avenue
Address Nanchang City Jiangxi Province Nanchang City Jiangxi Province
P.R.C P.R.C
Tel 86-791-85266178 86-791-85266178
Fax 86-791-85232839 86-791-85232839
E-mail relations@jmc.com.cn relations@jmc.com.cn
3. Other matters
I. Contact methods
Changes of registered address headquarter address postal code website
and e-mail in the reporting period
□Applicable □Not Applicable
The Company's registered address headquarter address postal code
website and e-mail remain unchanged during the reporting period.For details please refer to the 2025 Annual Report.II. Changes of newspapers and website for information disclosure and place
for accessing half-year report in the reporting period
□Applicable □Not Applicable
There is no change of names of the media and website of Stock Exchange for
publication of the Company’s Half-year Report and the place for accessing the
Company’s Half-year Report in the reporting period. Please refer to 2025
Annual Report for details.III. Other Relevant Information
Whether other relevant information has changed during the reporting period
□Applicable □Not Applicable
54. Main accounting data and financial indicators
Whether the previous accounting data should be retroactively adjusted
□Yes □No
Unit: RMB
Reporting period Same period
(2026 first half) last year Change (%)
Revenue 19361867251 18092386210 7.02%
Profit Attributable to the
Equity Holders of the 738802231 732728047 0.83%
Company
Net Profit Attributable to
Shareholders of Listed
Company After 598112705 539916206 10.78%
Deducting Non-Recurring
Profit or Loss
Net Cash Generated
597893721-644977841027%
From Operating Activities
Basic Earnings Per
0.860.851.18%
Share (RMB)
Diluted Earnings Per
0.860.851.18%
Share (RMB)
Weighted Average Down 0.18
6.12%6.30%
Return on Equity Ratio percentage points
At the end of the At the end of the
reporting period previous year Change (%)
Total Assets 31876243256 33725291097 -5.48%
Shareholders’ Equity
Attributable to the Equity 11963695309 11700238217 2.25%
Holders of the Company
5. Accounting data difference between China GAAP and IFRS
I. Differences in net profit and net assets in financial statements between in
accordance with international accounting standards and Chinese accounting
standards
□Applicable □Not Applicable
II. Differences in net profit and net assets in financial statements between in
accordance with overseas accounting standards and Chinese accounting
standards
□Applicable □Not Applicable
6. Non-recurring profit and loss items and amounts
□Applicable □Not Applicable
6Unit: RMB
Reporting period
(2026 first half)
Profit and loss of non-current assets disposal (including
4574194
the charge-off part of the asset impairment provision)
Government subsidies included in the current profit and
164601774
loss
In addition to the effective hedging business related to
the normal operating business of the Company holding
the gains and losses of fair value changes arising from
trading financial assets and trading financial liabilities 989383
as well as the investment income obtained from the
disposal of trading financial assets trading financial
liabilities and available for sale financial assets
Capital occupation fee charged for non-financial
1978923
enterprises included in the current profit and loss
Return of the impairment provision for receivables with
1558669
a separate impairment test
Other non-operating income and expenses except the
-1613481
above
Less: Income tax impact amount 27724936
Influence of minority shareholders' equity 3675000
Total 140689526
Details of other profit and loss items that meet the definition of non-recurring
profit and loss
□Applicable □Not Applicable
There is no other profit and loss items that meet the definition of non-recurring
profit and loss in the Company.The description of the non-recurring profit and loss items listed in Corporate
Information Disclosure of Public Issuing Securities No.1 are defined as
recurring profit and loss items
□Applicable □Not Applicable
The Company does not have a situation in which the non-recurring profit and
loss items listed in No.1 of Corporate Information Disclosure Announcement
No.1 are defined as recurring profit and loss.
7Chapter III Management Discussion and Analysis
1. Company’s Core Business During the Reporting Period
JMC is a comprehensive automotive manufacturer integrating R&D
manufacturing sales and service of complete vehicles and automotive
components. It is a National High-Tech Enterprise a National Innovative Pilot
Enterprise and a "National Vehicle Export Base" and has been ranked among
the world's 100 most valuable automotive brands for many consecutive years.Its main products include JMC-brand light truck Pickup and light bus as well
as Ford-brand light bus pickup trucks MPV and other commercial vehicles
and passenger SUV models. The company also produces engines frames
axles and other components.In terms of R&D strategy the company is building a technological innovation
system centered on new energy vehicle technologies intelligent connected
vehicle technologies and other key areas. In the first half of 2026 the company
has achieved phased breakthroughs in core technology development including
hybrid powertrain systems NVH control and power platforms. In the field of
intelligence it is advancing the development of a next-generation vehicle
architecture platform with a focus on centralized computing integrated cockpit
and autonomous driving and full-scenario intelligent driving while pursuing the
goals of high scalability high commonality high safety and high cost-
effectiveness.In terms of manufacturing the company has comprehensively deployed smart
manufacturing. The two major vehicle manufacturing bases at Xiaolan and
Fushan have fully established a complete whole-chain vehicle manufacturing
system including stamping welding painting final assembly CKD parts
warehousing vehicle testing tracks and intelligent logistics support. The overall
automation rate reaches as high as 98% with 100% automation in core
assembly operations forming full-industry-chain manufacturing capabilities for
light commercial vehicles and their components.In terms of sales and service in the domestic market it took the lead in
establishing a modern marketing system adopting an exclusive dealership
model integrating sales spare parts service and survey—a "four-in-one"
approach—with over 1000 dealerships in total. In overseas markets the
company continues to expand cooperative distribution channels with its export
footprint now covering more than 120 countries and regions worldwide. In the
first half of 2026 cumulative exports grew by 44.8% year-on-year.
8In terms of the post-sales ecosystem the company is deeply engaged in urban
delivery capacity providing customers with cost-effective new energy
commercial vehicle operation solutions. At the same time it is deepening
collaboration in the used-vehicle sector and making strategic deployments in
battery-swapping services autonomous vehicles and other ecosystem
initiatives.Looking ahead the company will continue to focus on core technology areas
such as new energy powertrains intelligent connected vehicles and next-
generation platforms. It will accelerate its global expansion adhere to value-
driven and lean operations and transition from a scale-expansion development
model to a lean value-growth model.
2. Core Competitiveness Analysis
The Company is a modern Sino-foreign joint venture stock-limited enterprise
integrating automotive R&D manufacturing and sales. Leveraging its leading
position in the light commercial vehicle market and advanced technologies it
stands as a pioneer in China's automotive industry providing superior products
and solutions for the smart logistics sector. The Company is recognized as a
National High-tech Enterprise a National Innovative Pilot Enterprise a
State-recognized Corporate Technology Center a National Industrial Design
Center a National Intellectual Property Demonstration Enterprise and a
National Vehicle Export Base. It has been listed among the world's top 100
most valuable automotive brands for multiple consecutive years. Guided by its
corporate vision of ‘Smart Mobility Global Connectivity ’ We strive to evolve
into a green and smart mobility technology company with cutting-edge
technologies superior quality and worldwide customer trust. In the first half of
2026 within its industry segments: JMC light buses maintained the No. 1
market share; JMC pickup trucks ranked No. 2 in market share; JMC light trucks
ranked No. 7 in market share.The Company has always remained customer-centric. As a provider of full-
scenario solutions for light commercial vehicles it offers customized and
scalable integrated solutions based on customer usage scenarios continuously
covering urban delivery passenger commuting recreational camping medical
emergency services and specialized modification applications. Through C2B
customized product services end-to-end logistics solutions and mobility
platform services the Company helps customers improve operational efficiency
and reduce total cost of ownership throughout the vehicle lifecycle.The Company continues to refine its product portfolio of light bus light truck
and Pickup. JMC light buses address the needs of freight transport passenger
transport and specialized modifications while strengthening the synergy
9between conventional powertrain and new energy products. JMC light trucks
driven by customer insights are steadily advancing new energy models such
as the E-Shunda and the next-generation Shunda series enhancing loading
efficiency driving comfort and energy savings. JMC pickup trucks are available
in three major series—Baodian Yuhu and Daodao—covering a wide range of
applications from workhorse tools and commercial-passenger dual-purpose
vehicles to off-road leisure models. With scenario-based variants the Company
is enriching its full-price-band product matrix.The Company adheres to a dual-brand strategy encompassing its own
proprietary brand and the Ford brand fully leveraging its own strengths while
deeply integrating into Ford's global system. In terms of technological R&D the
Company draws on Ford's global platforms to continuously enhance its
independent R&D system and global digital design platform and collaborates
with Ford on the development design and launch of specific new products.In terms of brand ecosystem development the Ford brand continues to build
the "Ford Beyond" lifestyle system which encompasses four major pillars:
experience spaces outdoor lifestyle communities personalized boutique
modifications and vehicle services/support delivering a comprehensive off-
road and outdoor experience for users. The Ford Bronco Basecamp further
enriches the new-energy off-road product lineup and was awarded the Red Dot
Product Design Award in 2026 during the reporting period. The locally produced
Ford Bronco and Ford Ranger continue to meet user demands for performance
personalization premium features and intelligent configurations through a
diverse range of series and variants.In terms of manufacturing management the Company operates vehicle
production bases including the Xiaolan Plant and the Fushan Plant
encompassing advanced manufacturing processes for stamping welding
painting final assembly as well as diesel and gasoline engine production. It
continues to build highly intelligent and highly flexible smart manufacturing
centers and enhances multi-variant production efficiency and product quality
consistency through digital quality management flexible production scheduling
and supply chain coordination.In terms of autonomous driving the Company continues to deepen the
commercial deployment of L4 autonomous delivery vehicles with a focus on
the development and operation of autonomous driving systems for intra-city
freight scenarios. It is advancing the coordinated validation of autonomous
driving systems vehicle platforms and operational use cases driving the
transformation of its commercial vehicle products into smart mobile terminals.
10In the field of new energy vehicles the Company pursues steady yet aggressive
progress accelerating the expansion of its electric vehicle portfolio and market
development. For passenger vehicles it leverages the Ford Bronco Basecamp
to broaden new-energy outdoor scenarios. For commercial vehicles it
continues to advance products such as the E-Fushun E-Shunda and
heavy-duty wide-body high-capacity electric light trucks refining its new-energy
product lineup with a focus on greater loading space enhanced transport
capability and lower operating costs. Through initiatives such as "JMC Fun-to
Drive" the Company explores synergies across products services and
operational ecosystems.In terms of export operations the Company leverages its diversified market
expansion capabilities and product quality to continuously promote its light
commercial vehicles pickup trucks and SUV in overseas markets. The all-new
second-generation Ford Territory gasoline and hybrid models have been
introduced to markets in the Middle East Africa Latin America the Philippines
and Indochina with the export product mix and regional footprint steadily being
refined.
3. Core Business Analysis
SummaryRefer to the relevant content of “1. the Company’s Core Business During theReporting Period”.Year-over-Year Changes of Main Financial Data
Unit: RMB
YOY change
2026 1H 2025 1H Reason
（%）
Revenue 19361867251 18092386210 7.02%
Cost of sales 17006947505 15539656822 9.44%
Distribution costs 391175890 466792493 -16.20%
Administrative expenses 411224874 460681221 -10.74%
Finance expense -44583409 -55376687 19.49%
Income tax expense 90395586 84084738 7.51%
Research and
658610108785291234-16.13%
Development Expenditure
Mainly due to the
growth in sales and
Net cash generated from improved efficiency
597893721-644977841027%
operating activities in collecting
payments from
dealers.Net cash used in investing
-363314849-43006579315.52%
activities
11Mainly due to the
Net cash used in financing
-1617489156 -199608603 -710.33% decrease in short-
activities
term borrowings
Mainly due to the
Net increase/(decrease) in
-1382910284 -694172180 -99.22% decrease in short-
cash and cash equivalents
term borrowings
Significant changes in the composition or source of profits during the reporting
period
□Applicable □Not Applicable
There was no significant change in the composition or source of profits in the
period.Composition of Core Business
Unit: RMB
2026 First Half 2025 First Half
YOY change
Proportion Proportion
Amount Amount （%）
(%)(%)
Revenue 19361867251 100% 18092386210 100% 7.02%
By Industry
Automobile Industry 19361867251 100% 18092386210 100% 7.02%
By Products
Vehicle 17693463556 91.38% 16700185890 92.30% 5.95%
Material and Components 1002068386 5.18% 1099382084 6.08% -8.85%
Maintenance technical
6663353093.44%2928182361.62%127.56%
services and other
By region
China 19361867251 100% 18092386210 100% 7.02%
Reach 10% of Revenue or Profit by Industry Product or Region
□Applicable □Not Applicable
Unit: RMB
Y-O-Y gross
Gross Y-O-Y turnover Y-O-Y Cost
Turnover Cost margin change
Margin change (%) Change (%)
(points)
By Industry
Automobile
193618672511700694750512.16%7.02%9.44%-1.95%
Industry
By Products
Vehicle 17693463556 15957405543 9.81% 5.95% 9.58% -2.99%
By Region
China 19361867251 17006947505 12.16% 7.02% 9.44% -1.95%
If the Company’s core business scope is adjusted during the reporting period
the Company’s core business data of last year need to be adjusted per the
scope in this year
□Applicable □Not Applicable
4. Non-core business analysis
□Applicable □Not Applicable
5. Analysis of Assets and Liabilities
12I. Major changes
Unit: RMB
YOY
June 30 2026 December 31 2025 Proportion
Asset item
change
Amount Proportion Amount Proportion (Points)
Cash and cash equivalents 12171980445 38.19% 13582540346 40.27% -2.08%
Accounts receivable 6318608512 19.82% 6141405767 18.21% 1.61%
Inventories 2115057030 6.64% 2011925708 5.97% 0.67%
Long-term equity
1750031680.55%2036419210.60%-0.05%
investments
Fixed assets 5486106001 17.21% 5789423822 17.17% 0.04%
Construction in progress 549633231 1.72% 507614873 1.51% 0.21%
Right-of-use asset 80664967 0.25% 120243307 0.36% -0.11%
Short-term borrowings 350000000 1.10% 1950000000 5.78% -4.68%
Contract liabilities 510991920 1.60% 545864754 1.62% -0.02%
Long-term borrowings 223004 0% 460276 0% 0%
Lease liabilities 33555476 0.11% 44860116 0.13% -0.02%
II. Main Overseas Assets
□Applicable □Not Applicable
III. The fair value of the assets and liabilities.□Applicable □Not Applicable
Unit: RMB
1.Trading
financial
assets financial
financial Financing Financial
Item (excluding assets Subtotal
assets receivables liabilities
derivative Subtotal
financial
assets)
Beginning
of the
period 801902466 801902466 205851591 1007754057 0
Loss/profit
in fair value
in the
period -164274 -164274 -164274
Cumulative
changes in
fair value
recorded
into equity
Impairment
in the
period
Purchase in
the period 1600000000 1600000000 4753827271 6353827271
13Sell in the
period 1600000000 1600000000 4911183521 6511183521
Other
changes
End of the
period 801738192 801738192 48495341 850233533 0
Other change
None.Whether there is a significant change in the measurement attributes of the
Company's main assets during the reporting period
□Applicable □Not Applicable
IV. Restriction on Assets Rights as of the End of the Reporting Period
Unit: RMB
Book value at the end
Items Cause for restriction
of the period
Cash and cash
26196044 Frozen funds for litigation.
equivalents
6. Investment Analysis
I. Summary
□Applicable □Not Applicable
II. Obtained Major Equity Investment during the Reporting Period
□Applicable □Not Applicable
III. Ongoing Major Non-Equity Investment during the Reporting Period
□Applicable □Not Applicable
IV. Financial Assets Investment
(a) Stock Investment
□Applicable □Not Applicable
There was no stock investment during the reporting period.(b)Derivative Investment
□Applicable □Not Applicable
(1) Derivative investments for hedging purposes during the reporting period
□Applicable □Not Applicable
Units: RMB’000
Foreign
Exchange -
Types of Derivatives Investments Total
Forward
Purchase
Initial investment amount 115850 115850
14Amount at the beginning of the year 115850 115850
Gains and losses on fair value changes during the
-3900-3900
period
Cumulative fair value changes recognized in equity -4060 -4060
Amount acquired during the reporting period 42830 42830
Amount sold during the reporting period 66600 66600
Amount at the end of the year 92080 92080
Proportion of the investment amount at the end of
the period to the Company's net assets at the end 0.77% 0.77%
of the reporting period
Statement on whether there
were significant changes of the
accounting policies and specific
principles of accounting applied
No.to hedging activities during the
reporting period as well as
compared with the previous
reporting period
Explanation of actual gains and
The actual trading loss amounted to RMB
losses during the reporting
160000.
period
JMC forward business adheres to the principle of
risk neutrality and is based on normal production
Description of hedging effects and operation with the main purpose of
maintaining financial stability and avoiding the risk
of exchange rate fluctuations.Sources of funds for derivatives
Self-owned funds.investments
Risk analysis:
1. Market risk: In the case of large exchange rate
fluctuations losses may arise from the deviation of
the exchange rate of the forward contract from the
market spot rate on the maturity date of the
contract;
2. Liquidity risk: it may be due to inaccurate
forecasts that the delivery date signed by the
forward is inconsistent with the actual delivery
Risk analysis and description of date resulting in insufficient funds available for
control measures for derivative use at the time of delivery which triggers the risk
positions during the reporting of fund liquidity and leads to failure to deliver as
period (including but not limited scheduled;
to market risk liquidity risk 3. Credit risk: It may be due to inaccurate forecast
credit risk operational risk legal the delivery date signed by the forward is not
risk etc.) consistent with the actual delivery period resulting
in the risk of delayed delivery caused by the
forward foreign exchange transactions cannot be
delivered according to the agreed time;
4. Operational risk: the risk may be caused by
imperfect internal control mechanism and
improper operation mode of operators;
5. Legal risk: may face legal risks due to
insufficient completeness of contract terms or
disputes over jurisdictional terms.
15Risk control measures:
1. The Company conducts forward foreign
exchange transactions based on scientific
forecasts of forward foreign exchange demand in
accordance with its business plan to meet
operational needs to avoid and prevent the impact
of exchange rate fluctuations on the Company
and does not engage in speculative transactions;
2. With regard to the possible performance
guarantee issues arising from foreign exchange
derivative transactions the business execution
department of the Company will establish a
tracking mechanism to implement tracking
management of the progress of business receipts
and payments to effectively prevent the risk of
default on delivery and ensure that potential
losses are controlled within the minimum scope;
3. Through strengthening the training of business
knowledge the Company will enhance the
comprehensive business quality of relevant
personnel and improve the ability to identify and
prevent risks;
4. The Company has formulated the Foreign
Exchange Risk Control Process and the
operators strictly follow the requirements of the
system;
5. The Company chooses financial institutions with
legitimate qualifications good credit and long-term
business relations with the Company as
counterparties for forward foreign exchange
transactions with low risk of default.The Company recognizes and measures the fair
Disclosure of changes in thevalue in accordance with Chapter 7 “Measurementmarket prices or fair value ofof Financial Instruments” of “Accounting Standardderivative instruments held
for Business Enterprises No. 22 - Recognition and
during the reporting period. TheMeasurement of Financial Instruments” and the
analysis of the fair value of
fair value is basically determined by reference to
derivatives shall disclose the
the bank's pricing for the purpose of fair value
specific valuation methods
measurement and recognition. During the
applied as well as the
reporting period the gain or loss on fair value
underlying assumptions and
changes of foreign exchange forward contracts
parameters used.amounted to RMB -3.9 million.Litigation status No.Derivatives Investment Approval
Board Announcement 2025.12.23
Disclosure Date
(2) Derivative investments for speculative purposes during the reporting
period
□Applicable □Not Applicable
During the reporting period the Company did not engage in any derivative
investments for speculative purposes.V. Usage of Raised Fund
16□Applicable □Not Applicable
There was no usage of raised fund on the reporting period.
7. Sales of Major Assets and Equity
I. Sales of Major Assets
□Applicable □Not Applicable
No Major Assets were sold during the reporting period.II. Sales of Major Equity
□Applicable □Not Applicable
8. Analysis of major shareholding companies
□Applicable □Not Applicable
Operating Results of Main Subsidiaries and Joint-Stock Companies whose
impact on JMC’s net profit more than 10%
Unit: RMB’000
Jiangling Ford Shenzhen Fujiang
Jiangling Motors
Name of JMC Heavy Duty Automobile New Energy
Sales Corporation
companies Vehicle Co. Ltd. Technology Automobile Sales
Ltd
(Shanghai) Co. Ltd. Co. Ltd.Type of Whole-owned Whole-owned Whole-owned
Holding subsidiary
companies subsidiary subsidiary subsidiary
Engineering and Automotive sales
technology research car rental and
Production and sales
and experimental other related
Main Sales of vehicles of automobiles
development sales of services.business and service parts. engines and other
vehicles new energy
automotive parts
vehicles auto parts
etc.Registered
50000.001323793.202678000.0010000.00
capital
Assets 5052667.10 324645.40 247532.50 1194772.20
Net assets 112822.50 300135.80 -623881.10 -266376.30
Turnover 9726766.70 2088.30 12057.30 119016.60
Operating
-85519.60-6666.605098.10-4078.30
profit
Net profit -64067.20 -6381.00 5098.10 -3651.70
Acquisition and disposal of the subsidiaries
□Applicable □Not Applicable
Description of the main holding and participating companies
None.
179. Structured Entities Controlled by JMC
□Applicable □Not Applicable
10. Potential Challenges and Solutions
In 2026 ongoing geopolitical conflicts continued to impact the global economy
with slowing economic growth rising inflationary pressures and heightened
global economic uncertainty. China's domestic economy remained generally
stable with GDP growing by 4.7% year-on-year in the first half of the year
demonstrating a trajectory of "stability resilience novelty and optimization"
achieving both effective qualitative improvement and reasonable quantitative
growth. At the same time however China's automotive market has entered a
phase of inventory-based attrition marked by weak domestic consumer
demand steadily rising new energy vehicle penetration and intensifying
industry competition all of which pose considerable challenges to the
Company's operations. To maintain steady and robust growth the Company
will focus on the following key areas:
(1) Market competition and demand shifts.
Challenges and risks: In 2026 due to weak big-ticket consumer spending and
the phase-out of policy support the domestic market continued to contract.Although export growth in the international market exceeded expectations the
external environment has become more complex severe and uncertain. At the
same time the fuel-powered vehicle market continued to shrink significantly
while new energy products grew steadily. Market concentration further
increased and industry competition grew even more intense posing
considerable challenges to the Company's operations.Response measures: The Company will remain customer-centric grounded in
customer needs and new changes in the market environment while
continuously exploring new business growth drivers to seize early opportunities
in rapidly evolving industry segments. It will firmly accelerate the strategic pace
of new energy transformation stabilize its core light commercial vehicle
business and capture structural opportunities in the new energy sector. At the
same time the Company will strengthen marketing model innovation
accelerate channel transformation continue to explore overseas market
opportunities and enhance overseas capability building. By continuously
monitoring market and customer insights it will further improve the
competitiveness of its products and services.
(2) Industry Transformation and Technological Revolution.
Challenges and Risks: The automotive industry is experiencing rapid
technological iteration with intensive implementation of new safety regulations
energy consumption constraints and intelligent connected vehicle compliance
rules. These further raise the bar for new vehicle market access imposing
18higher requirements on enterprises' R&D capabilities and management
standards.Countermeasures: The company is focusing on the "New Four Modernizations"
of the automotive industry—electrification intelligence connectivity and
sharing—by concentrating efforts on core key technologies such as new energy
powertrains intelligent connected systems and next-generation vehicle
architecture platforms. On one hand we are strengthening our R&D foundation
by upgrading supporting hardware for product and technology development
expanding and cultivating specialized teams capable of independently
developing core technologies and continuously increasing R&D investment
with a strategic emphasis on core technology areas. On the other hand we are
advancing internal digital transformation in depth proactively collaborating with
leading domestic AI model enterprises universities and research institutes to
establish collaborative R&D channels thereby accelerating the deployment of
artificial intelligence technologies across various business scenarios. Through
a synergistic approach that combines independent technology R&D talent
development digital upgrading and industry-university-research collaboration
we are comprehensively propelling the company toward high-quality
development in electrification intelligence connectivity and sharing.
(3) Cost Competitiveness and Profitability.
Challenges and Risks: As industry competition intensifies end-user marketing
expenditures continue to rise. At the same time adverse factors on the supply
side have become increasingly prominent—prices of raw materials such as
precious metals and lithium carbonate are experiencing high-level volatility
automotive chip supply remains tight with procurement costs rising sharply and
the international trade environment is complex and ever-changing. With these
multiple pressures converging the profit margins of the vehicle manufacturing
industry have been continuously squeezed placing sustained strain on the
company's cost competitiveness and profitability.Countermeasures: The company remains firmly committed to prioritizing quality
and will continue to provide customers with stable product quality and superior
product services. We will vigorously drive marketing innovation and
transformation to enhance product competitiveness and further expand sales
scale and market share. We will deepen cost reduction and efficiency
improvement efforts by continuously carrying out company-wide cost-saving
initiatives across all domains—covering manufacturing product R&D
procurement costs sales logistics and management—to promote optimal
resource allocation improve the effectiveness of resource investment and
enhance operational management efficiency. Through these concrete actions
we aim to improve the company's overall cost competitiveness and profitability
to support the company's high-quality development.
1911. Development and implementation of the market value management system
and valuation enhancement plan
Whether the Company has a market value management system in place.□Yes □No
Whether the Company has disclosed plans for valuation enhancement.□Yes □No
12. Implementation of the action plan of "Double Enhancement of Quality and
Return"
Whether the Company has disclosed the action plan of "Double Enhancement
of Quality and Return".□Yes □No
20Chapter IV Corporate Governance Structure Environment
and Social
1. Changes of Directors and senior management
□Applicable □Not Applicable
Name Position Status Date Reason
Independent
Yong Wang Elected 2026.06.25 Re-election
Director
Independent
Xue Linnan Elected 2026.06.25 Re-election
Director
Employee
Luo Wenhua Representative Elected 2026.06.25 Re-election
Director
Chen Independent End of term
2026.06.25 End of term of office
Jiangfeng Director of office
Independent End of term
Wang Yue 2026.06.25 End of term of office
Director of office
Employee
End of term
Liu Niansheng Representative 2026.06.25 End of term of office
of office
Director
Liu Senhai VP Employment 2026.04.01 Appointment due to work need
Wu Jiehong Board Secretary Employment 2026.04.01 Appointment due to work need
VP & Board
Xu Lanfeng Dismissal 2026.03.31 Work rotation
Secretary
2. Proposal on profit distribution and converting capital reserve to share
capital for the reporting period
□Applicable □Not Applicable
The Company has decided that neither cash dividend nor stock dividend is to
be distributed and not to convert capital reserve to share capital for the first half
of 2026.
3. Implementation of Equity Incentive Plan Employee Stock Ownership Plan
and Other Employee Incentive Method
□Applicable □Not Applicable
There was neither equity incentive plan or ESOP nor other employee
incentive method during the reporting period.
4. Environmental Information Disclosure Status
Whether the listed company and its major subsidiaries are included in the list
of enterprises required to disclose environmental information in accordance
with the law.□Applicable □Not Applicable
Number of enterprises included in the accordance with the law
1
environmental information disclosure list (units)
Serial Environmental Information Disclosure Report
Company name
Number Index
Jiangling Motors 1. National Pollutant Discharge Permit
1
Corporation Ltd. Management Information Platform
21https://permit.mee.gov.cn/perxxgkinfo/syssb/xkgg/
xkgg!licenseInformation.action;
2. Nanchang Industrial Solid Waste Regulatory
Platform
http://117.40.240.237:10086/index.jsp.
5. Social responsibility
In the first half of 2026 JMC continued to empower rural revitalization
deepening its "JMC Xiqiao Bridge Project" public welfare brand by donating
RMB 2 million to the China Foundation for Rural Development specifically
designated for the construction of convenience bridges. This project was jointly
initiated by JMC and the China Foundation for Rural Development in 2007
adhering to the mission of "Building Rural Bridges Connecting the Path to
Revitalization" for nearly two decades. As of the end of June 2026 the company
has cumulatively invested over RMB 45.9 million built 465 convenience bridges
covering 25 provinces (autonomous regions and municipalities directly under
the central government) and 132 counties benefiting more than 700000 people
in underdeveloped areas. These efforts have effectively addressed local
transportation difficulties and contributed JMC's strength to the comprehensive
revitalization of rural areas.
22Chapter V Major Events
1. Commitments by actual controlling parties shareholders related parties
acquirers and the Company finished in the reporting period or overdue yet
unfinished by the end of the reporting period
□Applicable □Not Applicable
There is no commitment by actual controlling parties shareholders related
parties acquirers and the Company finished in the reporting period or overdue
yet unfinished by the end of the reporting period.
2. Non-operating funding in the Company occupied by controlling shareholder
and its affiliates
□Applicable □Not Applicable
There was no non-operating funding in the Company occupied by controlling
shareholder and its affiliates.
3. Illegal external guarantee
□Applicable □Not Applicable
The Company had no illegal external guarantee during the reporting period.
4. Appointment or Dismissal of Accounting Firm
Whether the 2026 half-year report is audited
□Yes □No
JMC 2026 half-year report is not audited.
5. Explanation of the Board of Directors to abnormal opinions from accounting
firm for the reporting period
□Applicable □Not Applicable
6. Explanation of the Board of Directors to abnormal opinions from accounting
firm in 2025 report
□Applicable □Not Applicable
7. Related Matters regarding Bankruptcy
□Applicable □Not Applicable
There was no matter involving bankruptcy during the reporting period.
8. Litigation or arbitration
Major Litigation or Arbitration
□Applicable □Not Applicable
There was no major litigation or arbitration during the reporting period.Other litigation
□Applicable □Not Applicable
239. Punishment
□Applicable □Not Applicable
10. Good-faith status of JMC and its controlling shareholder or actual
controlling party
□Applicable □Not Applicable
11. Major related transactions
I. Routine related party transactions
□Applicable □Not Applicable
Please refer to the note 8 “Related party Transactions” to the financial
statements in the Chapter VIII Financial Statements for details.Index of the announcement on forecast of the routine related party Transactions:
Website for
Name Disclosure Date
Disclosure
Public Announcement on Forecast of the
2025.12.23 www.cninfo.com.cn.
Routine Related Party Transactions in 2026
II. Major related party transaction concerning transfer of assets or equity
□Applicable □Not Applicable
There was no major related party transaction concerning transfer of assets or
equity in the reporting period.III. Related party transaction concerning joint external investment
□Applicable □Not Applicable
There was no joint external investment during the reporting period.IV. Related credit and debt
□Applicable □Not Applicable
Is there non-operating related credit and debt
□Yes □No
The Company had no non-operating related credit and debt in the reporting
period.V. Transaction with related financial companies or financial companies that
the company holds
□Applicable □Not Applicable
Deposit business
Balance at Current amount
Balance at
the
Maximum Deposit Take out the the end of
Related The related beginning of
daily deposit Deposit rate amount amount the period
party relationship the
limit (RMB (RMB (RMB
period(RMB
thousands) thousands) thousands)
thousands)
JMCG Wholly-owned
Finance Subsidiary of * 0.85%-1.4% 1592490 6302540 6542550 1352480
Company JMCG
* Note: JMC applies the consolidated deposit limit in JMCG Finance Company
at the end of each month to the lower of the following: 1) 25% of JMCG Finance
24Company absorbed deposit in prior year end; or 2) 12% of JMC’s consolidated
total cash reserve.Loan business
Balance at Current amount
the Balance at
loan limit Loan beginning Loan Repayment the end of
Related The related
(RMB rate of the amount amount the period
party relationship
thousands) range period (RMB (RMB (RMB
(RMB thousands) thousands) thousands)
thousands)
JMCG Wholly-
owned
Finance 1300000 0% 0 0 0 0
Subsidiary of
Company JMCG
Granting credit or other financial business
The related Total (RMB Actual amount
Related party Type of business
relationship thousands) (RMB thousands)
JMCG Finance Wholly-owned
Granting credit 1300000 0
Company Subsidiary of JMCG
VI. The transactions between the financial company controlled by the
company and its related parties
□Applicable □Not Applicable
The Company has no controlling financial company.VII. Other major related party transactions
□Applicable □Not Applicable
The Company has no other major related party transaction in the reporting
period.
12. Major Contracts and Execution
(1) Entrustment contract or lease
a. Entrustment
□Applicable □Not Applicable
There was no entrustment in the reporting period.b. Contract
□Applicable □Not Applicable
There was no contract in the reporting period.c. Lease
□Applicable □Not Applicable
Please refer to the Note 5 (12) note 5 (14) note 5 (31) note 5 (62) and note 8
(5) (b) of the financial statements in the Chapter VIII Financial Statements for
details.Project of which the profit and loss brought for the company reaches more
than 10% of the total profit of the company during the reporting period
□Applicable □Not Applicable
25There was no leasing project of which the profit and loss brought for the
Company reached more than 10% of the total profit of the Company during
the reporting period.II. Major guarantee
□Applicable □Not Applicable
The Company had no external guarantee in the reporting period.III. Entrusted financial management
□Applicable □Not Applicable
There was no entrusted financial management in the reporting period.IV. Other Major Contracts
□Applicable □Not Applicable
There was no other major contract in the reporting period.
13. External Research Communication and Media Interview to the Company
□Applicable □Not Applicable
Date Communication Type of Information Discussed
Method Object and Materials offered
April 16 Online Individual JMC Operating
2026 communication investor highlights
on the internet
platform
May 15 Online Individual JMC Operating
2026 communication investor highlights
on the internet
platform
14. Other major events
□Applicable □Not Applicable
There was no other major event in the reporting period.
15. Major event of JMC subsidiary
□Applicable □Not Applicable
26Chapter VI Share Capital Changes & Shareholders
1. Changes of shareholding structure
I. Table of the changes of shareholding structure
Before the change Change (+ -) After the change
Proportion Reserve- Proportion
New Bonus Sub-
Shares of total converted Others Shares of total
shares Shares total
shares (%) shares shares (%)
I. Limited tradable
7508400.09%7508400.09%
A shares
1. Other domestic
7508400.09%7508400.09%
shares
Including:
Domestic legal
7451400.09%7451400.09%
person shares
Domestic natural
57000.00%57000.00%
person shares
II. Unlimited
86246316099.91%86246316099.91%
tradable shares
1. A shares 518463160 60.06% 518463160 60.06%
2. B shares 344000000 39.85% 344000000 39.85%
III. Total 863214000 100.00% 863214000 100.00%
Causes of shareholding changes
□Applicable □Not Applicable
Approval of changes of shareholding structure
□Applicable □Not Applicable
Shares Transfer
□Applicable □Not Applicable
Progress in the implementation of share repurchase
□Applicable □Not Applicable
The implementation progress of reducing the buyback shares by means of
centralized bidding
□Applicable □Not Applicable
Impact on accounting data such as the latest EPS diluted EPS
shareholders’ equity attributable to the equity holders of the Company
generated from shares transfer
□Applicable □Not Applicable
Others to be disclosed necessarily or per the requirements of securities
regulator
□Applicable □Not Applicable
II. Changes of limited A shares
□Applicable □Not Applicable
2. Securities issuance and listing
□Applicable □Not Applicable
273. Shareholders and shareholding status
Total shareholders (as of JMC had 34931 shareholders including 29239 A-shareholders and 5692 B-shareholders.June 30 2026)
Shareholding status of shareholders holding more than 5% of shares or the top 10 shareholders (excluding shares lent
through securities lending)
Shares
Shareholding Shares at Shares with due to
Shareholder
Shareholder Name Percentage the End of Change (+-) Trading mortgage
Type
(%) Year Restriction or mark or
frozen
Nanchang Jiangling State-owned
41.03%354176000000
Investment Co. Ltd. legal person
Foreign legal
Ford Motor Company 32.00% 276228394 0 0 0
person
Hong Kong Securities
Foreign legal
Clearing Company Ltd. 1.15% 9934770 414101 0 0
person
(HKSCC)
Industrial and
Commercial Bank of
Domestic non-
China Limited - Guolian
State-owned 0.73% 6288001 1259900 0 0
Superior Industry Mixed
legal persons
Securities Investment
Fund
Domestic natural
Jin Xin 0.59% 5121500 -206400 0 0
person
China Merchants Fund
Domestic non-
Management Co. Ltd. -
State-owned 0.33% 2839600 2839600 0 0
Social Security Fund
legal persons
Portfolio 1903
CITIC Securities Co.Ltd. – Invesco Great
Wall CSI Shanghai-
Domestic non-
Hong Kong-Shenzhen
State-owned 0.30% 2632600 2632600 0 0
Dividend Growth Low
legal persons
Volatility Index
Securities Investment
Fund
Domestic natural
Li Yifeng 0.21% 1850000 343500 0 0
person
Xingyin Wealth
Management Co. Ltd. -
Xingyin Wealth
Domestic non-
Management Fuli
State-owned 0.18% 1550548 1272906 0 0
Xingcheng Alpha 3-
legal persons
Month Holding Period
No. 3 Mixed Wealth
Management Product
Domestic natural
Li Guilin 0.16% 1400545 20200 0 0
person
Notes on association among above-mentioned Shareholders holding more than 5% are not related.shareholders
Description of the above shareholders' entrusted /
None.entrusted voting rights and waived voting rights
JMC Share Repurchase Special Securities Account holds
A special description of the special repurchase
8632078 A shares of the Company representing 1% of the total
account among the top 10 shareholders
outstanding shares of the Company.Top ten shareholders holding unlimited tradable shares
Shareholder Name Shares without Trading Restriction Share Type
Nanchang Jiangling Investment Co. Ltd. 354176000 A share
28Ford Motor Company 276228394 B share
Hong Kong Securities Clearing Company Ltd. (HKSCC) 9934770 A share
Industrial and Commercial Bank of China Limited - Guolian
6288001 A share
Superior Industry Mixed Securities Investment Fund
Jin Xin 5121500 B share
China Merchants Fund Management Co. Ltd. - Social Security
2839600 A share
Fund Portfolio 1903
CITIC Securities Co. Ltd. – Invesco Great Wall CSI Shanghai-
Hong Kong-Shenzhen Dividend Growth Low Volatility Index 2632600 A share
Securities Investment Fund
Li Yifeng 1850000 B share
Xingyin Wealth Management Co. Ltd. - Xingyin Wealth
Management Fuli Xingcheng Alpha 3-Month Holding Period No. 3 1550548 A share
Mixed Wealth Management Product
Li Guilin 1400545 A share
Explanation of the association or concerted
action between the top 10 unlimited tradable
shareholders and between the top 10 Shareholders holding more than 5% are not related.unlimited tradable shareholders and the top
10 shareholders
Participation of Shareholders holding more than 5% of shares top 10
shareholders and top 10 shareholders with unlimited shares in the lending of
shares in the refinancing business
□Applicable □Not Applicable
Change in the top 10 shareholders of the Company and the top 10 shareholders
with unlimited shares from the previous period due to lending/repatriation of
refinancing business
□Applicable □Not Applicable
Stock buy-back by top ten shareholders or top ten shareholders holding
unlimited tradable shares in the reporting period
□Applicable □Not Applicable
The top 10 common shareholders of the Company and the top 10 common
shareholders with unlimited conditions of sale did not conduct agreed
repurchase transactions during the reporting period.
4. Changes of shares held by Directors Supervisors and senior management
□Applicable □Not Applicable
There was no change of shares held by Directors and senior management in
the reporting period. Please refer to 2025 annual report for details.
5. Change of controlling shareholders or actual controlling parties
The company has previously disclosed that the actual controller is planning a
change in control that has not yet been completed please explain the current
progress of the change in control.□Applicable □Not Applicable
Change of controlling shareholders
□Applicable □Not Applicable
There was no change of controlling shareholders during the reporting period.Change of actual controlling parties
□Applicable □Not Applicable
29There was no change of actual controlling parties during the reporting period.
6. Preferred Shares
□Applicable □Not Applicable
JMC had no preferred shares in the reporting period.
30Chapter VII Bond related Information
□Applicable □Not Applicable
31JIANGLING MOTORS CORPORATION LTD.
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2026
[English translation for reference only. Should there be any inconsistency between the
Chinese and English versions the Chinese version shall prevail.]
32JIANGLING MOTORS CORPORATION LTD.
CONSOLIDATED AND COMPANY BALANCE SHEETS
AS AT 30 June 2026
(All amounts in RMB Yuan unless otherwise stated)
31 December 31 December
30 June 2026 30 June 2026
Notes 2025 2025
ASSETS Consolidated* Company*
Consolidated Company
Current assets
Cash and cash equivalents 5(1) 12171980445 13582540346 10884645288 10966453363
Financial assets held for trading 5(2) 801738192 801902466 - -
Notes receivable - - - 1500000000
Accounts receivable 5(3)、14(1) 6318608512 6141405767 6584740492 6264582609
Financing receivables 5(4) 48495341 205851591 14248635 150902273
Advances to suppliers 5(5) 143467706 98624060 143467706 98624060
Other receivables 5(6)、14(2) 28374836 134768377 26873762 134906584
Inventories 5(7) 2115057030 2011925708 2111610476 2008282424
Current portion of non-current assets 5(9) 30563429 27153632 - 1631907
Other current assets 5(8) 1209190698 1194944928 1032122553 956607104
Total current assets 22867476189 24199116875 20797708912 22081990324
Non-current assets
Long-term receivables 5(10) 74960888 71519964 - -
Long-term equity investments 5(11)、14(3) 175003168 203641921 625657098 654295851
Fixed assets 5(12) 5486106001 5789423822 4756917835 5065812739
Construction in progress 5(13) 549633231 507614873 449017979 333295118
Right-of-use assets 5(14) 80664967 120243307 79397904 118037006
Intangible assets 5(15) 1609163337 1790269138 1406849797 1584170614
Development expenditures 5(16) 27873802 57594483 27873802 57594483
Goodwill 5(19) - - - -
Deferred tax assets 5(17) 1001922775 980954002 - -
Other non-current assets 5(18) 3438898 4912712 3438899 4912712
Total non-current assets 9008767067 9526174222 7349153314 7818118523
TOTAL ASSETS 31876243256 33725291097 28146862226 29900108847
* Unaudited financial indexes
33JIANGLING MOTORS CORPORATION LTD.
CONSOLIDATED AND COMPANY BALANCE SHEETS
AS AT 30 June 2026
(All amounts in RMB Yuan unless otherwise stated)
31 December 31 December
30 June 2026 30 June 2026
LIABILITIES AND EQUITY Notes 2025 2025
Consolidated* Company*
Consolidated Company
Current liabilities
Short-term borrowings 5(20) 350000000 1950000000 - 1500000000
Derivative financial liabilities 5(21) 3517243 695349 3517243 695349
Notes payable 5(22) 338413385 427292904 338413385 427292904
Accounts payable 5(23) 11059636157 11397760484 11056352768 11393769153
Contract liabilities 5(24) 510991920 545864754 1142836762 1315151000
Employee benefits payable 5(25) 552470058 729156434 504402775 646304675
Taxes payable 5(26) 106072832 132698441 94618848 121268279
Other payables 5(27) 5887712956 5803694871 2418627609 2231605558
Current portion of non-current
5(28)25477356918630242356313189799585
liabilities
Other current liabilities 5(29) 315358044 304431406 178562910 183977806
Total current liabilities 19149649951 21383457667 15760895431 17909864309
Non-current liabilities
Long-term borrowings 5(30) 223004 460276 223004 460276
Lease liabilities 5(31) 33555476 44860116 33378710 43797509
Provisions 5(32) 265759555 255436677 5288651 5561579
Deferred income 5(33) 20587336 13406177 20233836 13039843
Long-term employee benefits
5(34)48158339498530004797933949674000
payable
Deferred tax liabilities 5(17) 189302556 123918738 171473784 105804342
Other non-current liabilities 5(35) 511013459 461860038 - -
Total non-current liabilities 1068599725 949795022 278577324 218337549
Total liabilities 20218249676 22333252689 16039472755 18128201858
Equity
Share capital 5(36) 863214000 863214000 863214000 863214000
Capital surplus 5(37) 839442490 839442490 839442490 839442490
Less:Treasury shares 5(38) 170214887 170214887 170214887 170214887
Other comprehensive income 5(39) (23862000) (23862000) (24258000) (24258000)
Special reserve 5(40) 7501005 7860966 5423384 5783345
Surplus reserve 5(41) 431607000 431607000 431607000 431607000
Retained earnings 5(42) 10016007701 9752190648 10162175484 9826333041
Total equity attributable to
11963695309117002382171210738947111771906989
shareholders of the Company
Minority interests (305701729) (308199809) - -
Total equity 11657993580 11392038408 12107389471 11771906989
TOTAL LIABILITIES AND EQUITY 31876243256 33725291097 28146862226 29900108847
* Unaudited financial indexes
Legal representative: Qiu Tiangao CFO: Weihua Li Finance Department: JiangNan
34JIANGLING MOTORS CORPORATION LTD.
CONSOLIDATED AND COMPANY INCOME STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
2026 First Half- 2025 First Half- 2026 First Half- 2025 First Half-
Item Notes year year year year
Consolidated* Consolidated* Company* Company*
Revenue 5(43)、14(4) 19361867251 18092386210 18570906713 17406169505
Less: Cost of sales 5(43)、14(4) (17006947505) (15539656822) (16450734868) (15239926676)
Taxes and surcharges 5(44) (484992704) (542573504) (474618966) (532041500)
Selling and distribution expenses 5(45) (391175890) (466792493) (73852661) (79713765)
General and administrative expenses 5(46) (411224874) (460681221) (403928385) (426432074)
Research and development expenses 5(47) (625261173) (652925801) (625261173) (652925801)
Financial expenses 5(48) 44583409 55376687 39061247 46578703
Including: Interest expenses (4122958) (8006883) (2692925) (3904430)
Interest income 41542231 74461188 34573756 61200769
Add: Other income 5(51) 353221017 321265671 345086695 316023140
Investment income 5(52)、14(5) (254145) 679581 (1178773) (594717)
Including: Share of loss of associates and
(2013354)(9803325)(2013354)(9803325)
joint ventures
Gains on changes in fair value 5(53) 1608894 (7003758) (3900257) (7182998)
Credit impairment losses 5(50) (772026) (2295627) 687094 (2973269)
Asset impairment losses 5(49) (9532170) 42736 258829 42736
Gains on disposal of assets 5(54) 2793321 18372675 3366936 18587389
Operating profit 833913405 816194334 925892431 845610673
Add: Non-operating income 5(55) 1911499 1697188 893096 926403
Less: Non-operating expenses 5(56) (4129007) (206747) (4128847) (202738)
Total profit 831695897 817684775 922656680 846334338
Less: Income tax expenses 5(57) (90395586) (84084738) (111829059) (90016091)
Net profit 741300311 733600037 810827621 756318247
Classified by continuity of operations
Net profit from continuing operations 741300311 733600037 810827621 756318247
Net profit from discontinued operations - - - -
Classified by ownership of the equity
Minority interests 2498080 871990 - -
Attributable to shareholders of the
738802231732728047810827621756318247
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 of
5(39)----
defined benefit plan
Attributable to minority interests - - - -
Total comprehensive income 741300311 733600037 810827621 756318247
Attributable to shareholders of the
738802231732728047810827621756318247
Company
Attributable to minority interests 2498080 871990 - -
Earnings per share
Basic earnings per share (RMB Yuan) 5(58) 0.86 0.85 —— ——
Diluted earnings per share (RMB Yuan) 5(58) 0.86 0.85 —— ——
* Unaudited financial indexes
Legal representative: Qiu Tiangao CFO: Weihua Li Finance Department: JiangNan
35JIANGLING MOTORS CORPORATION LTD.
CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
2026 First Half- 2025 First Half- 2026 First Half- 2025 First Half-
Item Note year year year year
Consolidated* Consolidated* Company* Company*
Cash flows generated from/(used in) operating activities
Cash received from sales of goods or rendering of
20866902082180654951312119847220017662368377
services
Cash received relating to other operating activities 5(59) 208551870 284304086 183552740 245989854
Sub-total of cash inflows 21075453952 18349799217 21382024940 17908358231
Cash paid for goods and services (16975998886) (14632015284) (16403031250) (14018348095)
Cash paid to and on behalf of employees (1528477991) (1489737422) (1470080507) (1380952099)
Payments of taxes and surcharges (931091338) (1043908883) (905983855) (1028058774)
Cash paid relating to other operating activities 5(59) (1041992016) (1248635412) (754723646) (721703374)
Sub-total of cash outflows (20477560231) (18414297001) (19533819258) (17149062342)
Net cash flows generated from/(used in) operating
activities 5(60)
597893721(64497784)1848205682759295889
Cash flows used in investing activities
Cash received from disposal on investments 1629010300 55000000 32660300 3400000
Cash received from returns of investments 5212055 264648 - -
Net cash received from disposal of fixed assets intangible
1326495203937412912024491637584825
assets and other long-term assets
Cash received relating to other investing activities 5(59) 68574336 86306501 60068686 62942334
Sub-total of cash inflows 1835446211 180945278 212973902 103927159
Cash paid to acquire fixed assets intangible assets and
(598509374)(555808114)(601551489)(548027823)
other long-term assets
Cash paid to acquire investments (1600000000) (55000000) - (92750000)
Cash paid relating to other investing activities (251686) (202957) (251686) (202957)
Sub-total of cash outflows (2198761060) (611011071) (601803175) (640980780)
Net cash flows used in investing activities (363314849) (430065793) (388829273) (537053621)
Cash flows generated from/(used in) financing activities
Cash received from borrowings 1847927333 2933325556 1499313333 2448764444
Sub-total of cash inflows 1847927333 2933325556 1499313333 2448764444
Cash repayments of borrowings (3450223818) (2950240906) (3000223818) (2950240906)
Cash payments for distribution of dividends profits or
(156789)(315656)(156789)(315656)
interest expenses
Cash paid relating to other financing activities 5(59) (15035882) (182377597) (13972304) (179521751)
Sub-total of cash outflows (3465416489) (3132934159) (3014352911) (3130078313)
Net cash flows generated from/(used in) financing
(1617489156) (199608603) (1515039578) (681313869) activities
Effect of foreign exchange rate changes on
----
cash and cash equivalents
Net decrease in cash and cash equivalents 5(60) (1382910284) (694172180) (55663169) (459071601)
Add: Cash and cash equivalents at beginning of year 5(60) 13491154200 12475176009 10879242183 9214091023
Cash and cash equivalents at end of period 5(60) 12108243916 11781003829 10823579014 8755019422
* Unaudited financial indexes
Legal representative: Qiu Tiangao CFO: Weihua Li Finance Department: JiangNan
36JIANGLING MOTORS CORPORATION LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
Attributable to shareholders of the parent company
Less: Other Minority
Item Note Capital Special Surplus Retained Total equity
Share capital Treasury comprehensive interests
surplus reserve reserve earnings
Stock income
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
Share Repurchase - - 168909971 - - - - - (168909971)
Profit distribution
Distribution to shareholders 5(42) - - - - - - (614608368) - (614608368)
Special reserves
Withdrawal this period - - - - 10109653 - - - 10109653
Used this period - - - - (11667760) - - - (11667760)
Balance at 30 June 2025 * 863214000 839442490 168909971 (26388000) 3812986 431607000 9297452950 (696363343) 10543868112
Balance at 1 January 2026 863214000 839442490 170214887 (23862000) 7860966 431607000 9752190648 (308199809) 11392038408
Movements for six months ended 30 June 2026 * - - - - (359961) - 263817053 2498080 265955172
Total comprehensive income
Net profit - - - - - - 738802231 2498080 741300311
Other comprehensive income - - - - - - - - -
Total comprehensive income for the period - - - - - - 738802231 2498080 741300311
Profit distribution
Distribution to shareholders 5(42) - - - - - - (474985178) - (474985178)
Special reserve
Withdrawal this period - - - - 10160763 - - - 10160763
Used this period - - - - (10520724) - - - (10520724)
Balance at 30 June 2026 * 863214000 839442490 170214887 (23862000) 7501005 431607000 10016007701 (305701729) 11657993580
* Unaudited financial indexes
Legal representative: Qiu Tiangao CFO: Weihua Li Finance Department: JiangNan
37JIANGLING MOTORS CORPORATION LTD.
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
Less: Other
Capital Surplus
Share capital Treasury comprehensive Special reserve Retained earnings Total equity
Item Note surplus reserve
Stock income
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
Share Repurchase - - 168909971 - - - - (168909971)
Profit distribution
Distribution to shareholders 5(42) - - - - - - (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
Balance at 1 January 2026 863214000 839442490 170214887 (24258000) 5783345 431607000 9826333041 11771906989
Movements for six months ended 30 June 2026 * - - - - (359961) - 335842443 335482482
Total comprehensive income
Net profit - - - - - - 810827621 810827621
Other comprehensive income - - - - - - - -
Total comprehensive income for the period - - - - - - 810827621 810827621
Profit distribution
Distribution to shareholders 5(42) - - - - - - (474985178) (474985178)
Special reserve
Withdrawal this period - - - - 10160763 - - 10160763
Used this period - - - - (10520724) - - (10520724)
Balance at 30 June 2026 * 863214000 839442490 170214887 (24258000) 5423384 431607000 10162175484 12107389471
* Unaudited financial indexes
Legal representative: Qiu Tiangao CFO: Weihua Li Finance Department: JiangNan
38JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 (Shenzhen 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(36).As at 30 June 2026 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; import and export of automobiles and parts; dealership of
used cars; provision of enterprise management and consulting services related to
production sales and rent of automobiles.These financial statements were authorised for issue by the Company's Board of Directors
on 21 August 2026.
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.
39JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 2026 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 2026 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 RMB15 million.Significant prepayments with an The amount of a single prepayment exceeds 10%
aging of over 1 year of the total amount of various prepayments and is
greater than RMB15 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 more
subsidiaries 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 RMB100 million or
the investment income/loss under the equity
method accounts for 10% or more of the group’s
consolidated net profit.
40JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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.
41JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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.
42JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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.
43JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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:
44JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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.
45JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 SSuummmmaaryry o of fs sigignnifiifcicaannt ta acccoouunntitningg p poolilcicieiess a anndd a acccoouunntitningg e esstitmimaatetess ( C(Coonnt’td’d) )
(8) FFininaanncciaial li ninsstrturummeenntsts ( C(Coonnt’td’d) )
(d) ImImppaairimrmeennt to of ff ifninaanncciaial li ninsstrturummeenntsts ( C(Coonnt’td’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 contractually agreed payment due date is used as the starting
point of overdue aging
Export general vehicle For export general automobile procurement customers the
sales mix contractually agreed payment due date is used as the starting
point of overdue aging
New energy vehicle For new energy vehicle procurement customers the
sales mix contractually agreed payment due date is used as the starting
point of overdue aging
Component sales mix For parts procurement customers the contractually agreed
payment due 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.
46JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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.
47JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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.
48JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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.
49JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 5 to 10 years 4% to 20% 9.6% to 16%
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.
50JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Summary of significant accounting policies and accounting estimates (Cont’d)
(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 Estimated period of use combined
5-7 years
technology with the product life span
51JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 recognized 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.
52JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 year 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.
53JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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.
54JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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.
55JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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.
56JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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.
57JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 years 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.
58JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 a 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.
59JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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)
(a) As the lessee(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.
60JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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.
61JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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)
(a) Critical judgements in applying the accounting policies(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.
62JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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)
(b) Uncertainty in the estimate(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.
63JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 the 13% 9% and 6%
(“VAT”) output tax calculated at the applicable tax 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
six months ended 30 June 2026 is 15% (the six months ended 30 June 2025: 15%).As at 30 June 2026 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 2025: 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.
64JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 2026 31 December 2025
Cash at bank 10755764460 11898659395
Cash at finance company (a)
(Note 8(6)) 1352479456 1592494805
Other cash and cash equivalents (b) 26196044 27137724
Interest receivable 37540485 64248422
1217198044513582540346
(a) As at 30 June 2026 the group's bank deposit with Jiangling Automobile Group Finance Co
Ltd. was RMB1352479456. 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%-
1.4% (31 December 2025: 0.85%-1.55%) on RMB deposits for the same period.
JMCF a 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 RMB26196044 (31 December 2025: 27137724) were
the frozen funds of the Group's litigation.
(2) Financial assets held for trading
30 June 2026 31 December 2025
Structural deposits 801738192 801902466
(3) Accounts receivable
30 June 2026 31 December 2025
Accounts receivable 6439752462 6261767357
Less: Provision for bad debts (121143950) (120361590)
63186085126141405767
(a) The aging of accounts receivable was analysed as follows:
30 June 2026 31 December 2025
Within 1 year 6315226798 6136599101
1 to 2 years 3517464 2332966
Over 2 years 121008200 122835290
64397524626261767357
65JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(3) Accounts receivable (Cont’d)
As at 30 June 2026 accounts receivable with individually significant amounts and aged
over three years were analyzed as follows:
Balance Reasons and risk of collection
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
Company 1 63365929 had been made in full.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
Company 2 37924214 bad debts had been made in full.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
Company 3 9804890 - sales of general automobiles.(b) As at 30 June 2026 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 5399184129 74277299 84%
(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 2026
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on
the individual basis (i) 101799259 2% 101673142 99.88%
Provision for bad debts on
the grouping basis (ii) 6337953203 98% 19470808 0.31%
6439752462100%1211439501.88%
66JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(3) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
31 December 2025
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on
the individual basis (i) 103465547 2% 103231811 99.77%
Provision for bad debts on
the grouping basis (ii) 6158301810 98% 17129779 0.28%
6261767357100%1203615901.92%
(i) Accounts receivable for which the provision for bad debts was provided on the individual
basis were analysed follows:
30 June 2026
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
New energy subsidies
receivable 37924214 100.00% 37924214
Receivables for
automobiles 63875045 99.80% 63748928
101799259101673142
31 December 2025
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
New energy subsidies
receivable 37924214 100.00% 37924214
Receivables for
automobiles 65541333 99.64% 65307597
103465547103231811
As at 30 June 2026 the Group assessed the expected credit losses on the related
accounts receivable. The Group considered a portion of the receivables cannot be
collected therefore a provision for bad debt was made for those receivables. The related
amount was RMB101673142 (31 December 2025: RMB103231811) of which
RMB1558669 (the six months ended 30 June 2025: no impact on profit or loss for the
current period) was reversed in profit or loss for the current period.
67JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(3) 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:
Grouping - Domestic sales of general automobiles:
30 June 2026
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 1055737138 0.08% 819336
Overdue for 1 to 30 days 8014455 2.60% 208339
Overdue for 31 to 60 days 4373909 4.40% 192288
Overdue for 61 to 90 days 1577940 6.12% 96594
Overdue over 90 days 39833988 9.18% 3656760
11095374304973317
31 December 2025
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 1298021154 0.02% 256917
Overdue for 1 to 30 days 28433864 1.25% 354247
Overdue for 31 to 60 days 9159455 2.18% 199456
Overdue for 61 to 90 days 6007784 3.66% 219824
Overdue over 90 days 28609142 9.18% 2626319
13702313993656763
68JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(3) 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:
30 June 2026
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 4953208692 0.20% 9906417
31 December 2025
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 4538555702 0.20% 9077111
Grouping - Sales of new energy automobiles:
30 June 2026
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Overdue over 90 days 4122180 80.00% 3297744
31 December 2025
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Overdue over 90 days 4122180 80.00% 3297744
69JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(3) 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 2026
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 173507910 0.30% 520524
Overdue for 1 to 30 days 55025397 0.30% 165076
Overdue for 31 to 60 days 26579221 0.50% 132896
Overdue for 61 to 90 days 7358756 0.60% 44153
Overdue over 90 days 8613617 5.00% 430681
2710849011293330
31 December 2025
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 188462019 0.30% 565386
Overdue for 1 to 30 days 22120280 0.30% 66361
Overdue for 31 to 60 days 17471552 0.50% 87358
Overdue for 61 to 90 days 11088147 0.60% 66529
Overdue over 90 days 6250531 5.00% 312527
2453925291098161
(iii) The provision for bad debts was RMB782360 this period.(d) There was no provision for bad debts actually written off during the period.(e) As at 30 June 2026 and 31 December 2025 there were no accounts receivable pledged.
70JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(4) Financing receivables
30 June 2026 31 December 2025
Bank acceptance notes 48495341 205851591
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 2026 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 RMB797009380 and
RMB3892639938(2026: RMB1698864617 and RMB7692252503) respectively and
the related losses on discount of RMB6180 ( for the six months ended 30 June 2025 :
RMB234105) were included in investment income (Note 5(52)).As at 30 June 2026 and 31 December 2025 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 2026 and 31 December 2025 the Group had no pledged bank acceptance
notes receivable presented in financing receivables.As at 30 June 2026 the Group's bank acceptance notes had been endorsed or discounted
but not yet matured were RMB4534675768 which had been derecognised.There was no significant write-offs of financing receivables for the Group as at 30 June
2026 ( the six months ended 30 June 2025 : Nil).
71JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(5) Advances to suppliers
(a) The aging of advances to suppliers is analysed as follows:
30 June 2026 31 December 2025
% of total % of total
Amount balance Amount balance
Within 1 year 139232552 97% 943938 89 96%
Over 1 year 4235154 3% 42301 71 4%
143467706100%98624060100%
(b) As at 30 June 2026 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 143467706 100%
(6) Other receivables
30 June 2026 31 December 2025
Bills for R&D projects 7311261 5262421
Import working capital 5000000 5000000
Guarantees 3304083 3932887
Gas and electricity bills 2111988 21112025
Platform utilization fee - 5831714
Receivables from land -
acquisition and storage 79807336
Others 10743062 13986707
28470394134933090
Less: Provision for bad debts (95558) (164713)
28374836134768377
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 2026 31 December 2025
Within 1 year 25527472 131308902
Over 1 year 2942922 3624188
28470394134933090
72JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(6) 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 2026
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis - - - -
Provision for bad debts on the
grouping basis 28470394 100% 95558 0.34%
28470394100%955580.34%
31 December 2025
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
Individual basis 79807336 59% - -
Provision for bad debts on the
grouping basis 55125754 41% 164713 0.30%
134933090100%1647130.12%
Stage 1
12-month ECL 12-month ECL
(grouping) (individual) Total
Provisio
Provision n for Provision
Book for bad bad for bad
balance debts Book ba lance debts debts
31 December 2025 55125754 164713 798 07336 - 164713
Decrease in the
current period (26655360) - (7980 7336) - -
Provision for bad
debts accrued
during the period - (69155) - - (69155)
30 June 2026 28470394 95558 - - 95558
As at 30 June 2026 and 31 December 2025 the Group had no other receivables at Stage 2
and Stage 3. The analysis of other receivables at Stage 1 was stated below:
73JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(6) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements (Cont’d):
As at 30 June 2026 the Group’s other receivables with provision for bad debts were
analysed below:
12-month Provision for
Book balance ECL rates bad debts Reason
Provision on the grouping basis:
Bills for R&D projects 7311261 0.34% 24540 ECL
Import working capital 5000000 0.34% 16782 ECL
Guarantees 3304083 0.34% 11090 ECL
Gas and electricity bills 2111988 0.34% 7089 ECL
Others 10743062 0.34% 36057 ECL
2847039495558
As at 31 December 2025 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:
Receivable from land acquisition and
storage (i) 79807336 - - ECL
Provision on the grouping basis:
Gas and electricity bills 21112025 0.30% 63082 ECL
Platform utilization fee 5831714 0.30% 17425 ECL
Bills for R&D projects 5262421 0.30% 15724 ECL
Import working capital 5000000 0.30% 14940 ECL
Guarantees 3932887 0.30% 11751 ECL
Others 13986707 0.30% 41791 ECL
134933090164713
(c) As at 30 June 2026 the Group reversed the provision for bad debts amounting to
RMB69155. The reversal in the current period is due to the actual receipt of other
receivables corresponding to the provision for bad debts in the previous period.(d) There was no provision for bad debts actually written off during the period.(e) As at 30 June 2026 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
Import working
Company 1 Capital.etc 6101420 within 1 year 21% 20479
Company 2 Gas bills 2111988 within 1 year 7% 7089
Company 3 Office expenses 2106895 within 1 year 7% 7072
Company 4 Repair fees 1523041 within 1 year 5% 5112
Company 5 Design fees 1431000 within 1 year 5% 4803
1327434445%44555
74JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(7) Inventories
(a) Inventories were summarised by category as follows:
30 June 2026 31 December 2025
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 1182814690 59117650 1123697040 1107964940 64981628 1042983312
Finished goods 613307636 3594240 609713396 666482402 21361803 645120599
Work in progress 252785824 39848 252745976 178941925 49688 178892237
Low value consumables 62131201 - 62131201 65588843 543890 65044953
Materials in transit 34034865 - 34034865 67782373 - 67782373
Materials consigned for processing 32734552 - 32734552 12102234 - 12102234
21778087686275173821150570302098862717869370092011925708
(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 2025 Provision Reversal Write-off 30 June 2026
Raw materials 64981628 - (258830) (5605148) 59117650
Finished goods 21361803 - - (17767563) 3594240
Low value consumables 543890 - - (543890) -
Work in progress 49688 - - (9840) 39848
86937009-(258830)(23926441)62751738
75JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(7) 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 years or
the sales realized in the current period.
(8) Other current assets
30 June 2026 31 December 2025
Taxes prepaid input VAT to be
deducted and to be verified 1290806147 1288158530
Others 64247908 42858755
13550540551331017285
Less: provision for diminution in value (145863357) (136072357)
12091906981194944928
As at 30 June 2026 the Group made a provision for impairment of RMB9791000 for input tax that
is expected to not be deductible or used in the future.
(9) Current portion of non-current assets
30 June 2026 31 December 2025
Current portion of long-term
receivables (Note 5(10)) 30563429 27153632
(10) Long-term receivables
30 June 2026 31 December 2025
Long-term receivables 105616317 98706775
Less: provision for bad debts (92000) (33179)
Current portion of long-term
receivables (Note 5(9)) (30563429) (27153632)
7496088871519964
As at 30 June 2026 the Group's long-term receivables were formed by accounts receivable from
instalment sales and the payments will be gradually recovered from 2026 to 2030.
76JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(11) Long-term equity investments
30 June 2026 31 December 2025
Associates
- Shanxi Yunnei Power Co. Ltd. (“The Power Company”) 175003168 17701652 2
- Hanon Systems (Nanchang) Co. Ltd. (“Hanon Systems”) - 2662539 9
Less: Provision for impairment of long-term equity investments - -
175003168203641921
Associates
Movements for the current period Impairment provision
Share of net
profit/(loss) Cash 31
31 December Decrease in under equity dividends Provision for Shareholding Voting 30 June December
2025 investment method declared impairment 30 June 2026 (%) rights (%) 2026 2025
The Power
Company 177016522 - (2013354 ) - - 17500316 8 40.00% 40.00% - -
Hanon
Systems 26625399 (26625399 ) - - - - - - - -
Total 203641921 (26625399 ) (2013354 ) - - 17500316 8 - -
The Group disposed of its equity interest in insignificant associate Hanon Systems during the period. The investment is no longer accounted for as
an associate starting from the disposal date with gain or loss on disposal recorded in current-period investment income.Related information of equity in associates is set forth in Note 6(2).
77JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(12) Fixed assets
30 June 2026 31 December 2025
Fixed assets (a) 5485540829 57891 47812
Fixed assets pending for disposal (b) 565172 2 76010
54861060015789423822
(a) Fixed assets
Machinery and Electronic and other. Buildings equipment Vehicles Moulds equipment Total
Cost
31 December 2025 2303826800 3055638670 1417440643 4816107653 4482974484 16075988250
Increase in the
current period
Transfers from
construction in
progress 2110389 38879342 108477951 119803534 31606975 300878191
Decrease in the
current period
Disposal or
retirement - (45683858) (41298220) (28501649) (61956456) (177440183)
Others - (27576781) (908900) - (12531962) (41017643)
30 June 2026 2305937189 3021257373 1483711474 4907409538 4440093041 16158408615
Accumulated
depreciation
31 December 2025 532488814 1985239437 532584111 3162675869 3294449632 9507437863
Increase in the
current period
Provision 25704383 84977723 85909933 228553117 158293133 583438289
Decrease in the
current period
Disposal or
retirement - (34128695) (24641212) (27304741) (53529124) (139603772)
Others - (23690850) (176524) - (7084623) (30951997)
30 June 2026 558193197 2012397615 593676308 3363924245 3392129018 9920320383
Provision for
impairment
31 December 2025 172020613 30216617 177253290 343668614 56243441 779402575
Increase in the
current period
Provision - - - - - -
Decrease in the
current period
Disposal or
retirement - (11091314) (3715859) (718419) (11329580) (26855172)
30 June 2026 172020613 19125303 173537431 342950195 44913861 752547403
Carrying amount
30 June 2026 1575723379 989734455 716497735 1200535098 1003050162 5485540829
31 December 2025 1599317373 1040182616 707603242 1309763170 1132281411 5789147812
As at 30 June 2026 depreciation charged to fixed assets amounted to RMB583438289 (the six
months ended 30 June 2025: RMB552829786) 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 RMB530345081 RMB1360355 RMB22714791 and
RMB29018062 (the six months ended 30 June 2025: RMB492673591 RMB2314697
RMB26170440 and RMB31671058) respectively.The costs of fixed assets transferred from construction in progress amounted to RMB300878191
(the six months ended 30 June 2025: RMB838710612).
78JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(12) Fixed assets(Cont’d)
(a) Fixed assets (Cont’d)
(i) Temporarily idle fixed assets
As at 30 June 2026 the fixed assets with a carrying amount of approximately RMB131654250
(a cost of RMB1108465781) (31 December 2025: a carrying amount of approximately
RMB137144685 and a cost of RMB1253368096) 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 11607364 4 172020 613 1210681 65
Machinery and
equipment 67541512 4963894 0 14928 912 29736 60
Vehicles 37019296 3122831 9 4664 138 11268 39
Moulds 420123177 10767270 8 312450 469 -
Electronic and other
equipment 174619374 13854219 0 29591 598 64855 86
1108465781443155801533655730131654250
(ii) Operating lease of fixed assets:
As of 30 June 2026 the Cost was RMB999741657 the accumulated depreciation was
RMB227857297 the Impairment provision was RMB168451912 and the carrying amount at
the end of the period was RMB603432448.(ii) Fixed assets with pending certificates of ownership:
Reason for not obtaining
Carrying amount certificates of ownership
Buildings 14713106 Pending procedures
(b) Fixed assets pending for disposal
30 June 2026 31 December 2025
Vehicles 517900 250667
Electronic and other equipment 47272 10538
Machinery and equipment - 14805
565172276010
79JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(13) Construction in progress
30 June 2026 31 December 2025
Provision Carrying Provision Carrying
Book balance for impairment amount Book balance for impairment amount
Projects for
commercial
vehicles 300816638 1287127 299529511 390972214 1311599 389660615
Projects for
automobiles
factory 109108187 - 109108187 2224873 - 2224873
Projects for
passenger
vehicles 51510017 4460314 47049703 52470311 4460314 48009997
Projects for
automobile
parts factory 9343056 - 9343056 22200973 - 22200973
Others 85294420 691646 84602774 46210061 691646 45518415
55607231864390875496332315140784326435559507614873
80JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(13) Construction in progress (Cont’d)
(a) Movement of significant projects of construction in progress
Including:
Borrowing
Transfer to Transfer to Accumulative costs
fixed assets in intangible % of project capitalised capitalised in
Budget 31 December Increase in the the current assets in the investment in Progress of borrowing the current
Project name (In RMB0000) 2025 current period period current period 30 June 2026 budget project costs period Source of fund
Projects for Self-owned
commercial vehicles 306652 390972214 131889558 (222045134) - 30081663 8 7 2% 72% - - fund s
Projects for Self-owned
Passenger vehicles 93874 52470311 35960310 (36920604) - 5151001 7 7 7% 77% - - fund s
Projects for Self-owned
Automobiles factory 35280 2224873 110099068 (3215754) - 10910818 7 3 2% 32% - - fund s
Projects for
automobile parts Self-owned
factory 15599 22200973 15013547 (27782968) (88496 ) 934305 6 8 3% 83% - - fund s
Self-owned
Others - 46210061 50476919 (10938203) (454357 ) 8529442 0 292 897 - fund s
514078432343439402(300902663)(542853)556072318292897-
(b) Provision for impairment of construction in progress
31 December Increase in the Decrease in the
2025 current period current period 30 June 2026 Reason for provision
Projects for
commercial vehicles 1311599 - (24 472) 1287127 The rec overable amount is lower than the carrying amount
Projects for
passenger vehicles 4460314 - - 4460314 The rec overable amount is lower than the carrying amount
Others 691646 - - 691646 The rec overable amount is lower than the carrying amount
6463559-(24472)6439087
81JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(14) Right-of-use assets
Buildings
Cost
31 December 2025 394260626
Increase in the current period
New lease contracts 1063665
Decrease in the current period -
30 June 2026 395324291
Accumulated depreciation
31 December 2025 274017319
Increase in the current period
Provision 40718016
Decrease in the current period
Other decrease (76011)
30 June 2026 314659324
Provision for impairment
31 December 2025 -
Increase in the current period -
Decrease in the current period -
30 June 2026 -
Carrying amount
30 June 2026 80664967
31 December 2025 120243307
82JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(15) Intangible assets
Land use Software Non-patent
rights use fees technologies Others Total
Cost
31 December 2025 609675571 491579099 2725548404 38578700 3865381774
Increase in the
current period
Transfers from
construction in
progress - 542853 - - 542853
Internal research
and development - - 63069616 - 63069616
Decrease in the
current period
Disposal - - - - -
30 June 2026 609675571 492121952 2788618020 38578700 3928994243
Accumulated
amortisation
31 December 2025 168716525 332580419 1482820366 38578700 2022696010
Increase in the
current period
Provision 6443669 28827483 209447118 - 244718270
Decrease in the
current period
Disposal - - - - -
30 June 2026 175160194 361407902 1692267484 38578700 2267414280
Provision for
impairment
31 December 2025 - - 52416626 - 52416626
Increase in the
current period
Provision - - - - -
30 June 2026 - - 52416626 - 52416626
Carrying amount
30 June 2026 434515377 130714050 1043933910 - 1609163337
31 December 2025 440959046 158998680 1190311412 - 1790269138
As at 30 June 2026 the intangible assets developed by the Group accounted for 61% (31
December 2025: 63%) of the carrying amount of intangible assets.
83JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(16) Expenditure on research and development
The Group's total expenditure on research and development activities As at 30 June 2026
and 2025 is presented by nature as follows:
Six months ended 30 June
20262025
Employee benefits 345646582 449540890
Design fee 96310917 121218012
Consumed materials 97053597 77767929
Depreciation and amortisation 34819651 37108953
Others 84779361 99655450
658610108785291234
Wherein expenditure on
research and development on
the research phase (Note
5(47))625261173652925801
(a) The changes in the Group's development expenditures eligible for capitalisation As at 30
June 2026 is analysed as follows:
Transfer to intangible
31 December Increase in the current assets in the current 30 June
2025 period period 2026
Projects for
commercia
l vehicles 57594483 33348935 63069616 27873802
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 60% as
of 30 June 2026 and is expected to be completed within the second quarter 2027.As at 30 June 2026 there was no impairment of the Group's development expenditure
items (the six months ended 30 June 2025: nil).
84JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(17) Deferred tax assets and deferred tax liabilities
(a) Deferred tax assets before offsetting
30 June 2026 31 December 2025
Deductible Deductible
temporary temporary
differences and Deferred tax differences and Deferred tax
deductible losses assets deductible losses assets
Accrued expenses and
provisions 4917417935 1103667749 4615638068 1037353003
Recoverable losses 338438492 84609623 466815447 116703862
Provision for asset
impairment 1916737437 288350223 1942298621 292044435
Non-patent technology 663931580 164593824 593336532 143728516
Lease liability 58183620 17099535 135747740 23290388
Employee education
funds unpaid 24513077 3955561 25931540 4181264
Deferred income 20233836 3035075 13039843 1955976
Retirement benefits
plan 10191744 2501362 10756000 2586000
Others 178484789 22963450 141377441 22698198
8128132510169077640279449412321644541642
(b) Deferred tax liabilities before offsetting
30 June 2026 31 December 2025
Taxable
temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Depreciation of fixed
assets 3333978885 789596576 3106313384 696962697
Right-of-use assets 80610898 16315515 120159745 22163211
Equity transactions
between parent and
subsidiary 227800000 34170000 207400000 31110000
Differences between
the fair value of the
identifiable net
assets and carrying
amount arising from
business
combinations
involving enterprises
not under common
control 71315088 17828772 72457584 18114396
Amortisation of
intangible assets 86246319 19810772 88850280 18680458
Others 1738192 434548 1902466 475616
38016893828781561833597083459787506378
85JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(17) 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 2026 31 December 2025
Deductible temporary differences 2989302402 31506320 98
Deductible losses 2433306489 22679405 80
54226088915418572678
(d) Deductible losses for which no deferred tax asset was recognised will be expired in following
years:
30 June 2026 31 December 2025
2026-136794
2027150759177150951754
2028246244245246244245
202910081586411008158641
2030862449146862449146
2031165695280-
24333064892267940580
(e) The net balances of deferred tax assets and deferred tax liabilities after offsetting were as
follows:
30 June 2026 31 December 2025
Offsetting Balance after Offsetting Balance after
amount offsetting amount offsetting
Deferred tax assets (688853627) 1001922775 (663587640) 980954002
Deferred tax liabilities (688853627) 189302556 (663587640) 123918738
(18) Other non-current assets
30 June 2026 31 December 2025
Prepayment for molds 3438898 4912712
86JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(19) Provision for asset impairment and losses
Decrease in the current period
31 December Increase in the Write-off
2025 current period Reversal /Disposal 30 June 2026
Provision for bad debts of accounts receivable (Note 5(3)) 120361590 2341029 (1558669) - 121143950
Including: Provision for bad debts on the
individual basis 103231811 - (1558669) - 101673142
Provision for bad debts on the
grouping basis 17129779 2341029 - - 19470808
Provision for bad debts of other receivables (Note 5(6)) 164713 - (69155) - 95558
Provision for bad debts of long-term receivables (Note
5(10))33179-58821-92000
Sub-total 120559482 2341029 (1569003) - 121331508
Provision for decline in the value of inventories (Note
5(7))86937009-(258830)(23926441)62751738
provisions for other current asset impairment (Note 5 (8)) 136072357 9791000 - - 145863357
Provision for impairment of fixed assets (Note 5(12)) 779480119 - - (26932716) 752547403
Provision for impairment of construction in progress
(Note 5(13)) 6463559 - - (24472) 6439087
Provision for impairment of goodwill (i) 89028412 - - - 89028412
Provision for impairment of intangible assets (Note 5(15)) 52416626 - - - 52416626
Sub-total 1150398082 9791000 (258830) (50883629) 1109046623
127095756412132029(1827834)(50883629)1230378131
(i) As at 31 December 2019 the Group had made full provision for impairment of goodwill.
87JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(20) Short-term borrowings
30 June 2026 31 December 2025
Credit loan 350000000 19500000 00
As at 30 June 2026 the Group had no overdue short-term borrowings and the interest rates
ranged from 0.75% to 0.87% (31 December 2025: 0.35% to 0.92%).
(21) Erivative financial liabilities
30 June 2026 31 December 2025
Derivative financial liabilities -
Forward exchange contracts 3517243 695349
(22) Notes payable
30 June 2026 31 December 2025
Banker's Acceptance Payable 338413385 427292904
(23) Accounts payable
30 June 2026 31 December 2025
Payable for automobile parts 10721487036 110722360 02
Payable for raw and auxiliary
materials 338149121 3255244 82
1105963615711397760484
As at 30 June 2026 accounts payable with aging over one year amounted to
RMB715052632 (31 December 2025: RMB717410426) 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.
(24) Contract liabilities
30 June 2026 31 December 2025
Advances for maintenance and warranty
services etc. 817626690 860003200
Advances for automobiles and
automobile parts 204378689 147721592
10220053791007724792
Less: Contract liabilities carried forward
to revenue after 1 year (Note 5(35)
Note 5(43)(c)(i)) (511013459) (461860038)
510991920545864754
88JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(25) Employee benefits payable
30 June 2026 31 December 2025
Short-term employee benefits payable (a) 548202659 7239263 11
Defined contribution plans payable (b) 473307 5003 43
Defined benefit plans payable (c) 2289000 22890 00
Termination benefits payable (d) 1505092 24407 80
552470058729156434
(a) Short-term employee benefits
31 December Increase in the Decrease in the
2025 current period current period 30 June 2026
Wages and salaries
bonus allowances
and subsidies 680075034 971570902 (1144755696) 506890240
Staff welfare 13233887 38888351 (39190036) 12932202
Social security
contributions 1176372 70392000 (70873990) 694382
Including: Medical
insurance 1104248 63994088 (64475713) 622623
Work injury
insurance 72124 6397912 (6398277) 71759
Housing funds 28749 113862772 (113884639) 6882
Labour union funds
and employee
education funds 29412269 22723943 (24457259) 27678953
Other short-term
employee benefits - 3653818 (3653818) -
7239263111221091786(1396815438)548202659
89JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(25) Employee benefits payable (Cont’d)
(b) Defined contribution plans
Decrease in
31 December Increase in the the current
2025 current period period 30 June 2026
Basic pensions 468306 140631334 (140657459) 442181
Unemployment
insurance 32037 4459745 (4460656) 31126
500343145091079(145118115)473307
(c) Defined benefit plans
Increase in Decrease in
31 December the current the current
2025 period period 30 June 2026
Post-retirement
benefits payable
(Note 5(35)) 2289000 1130405 (1130405) 2289000
(d) Termination benefits payable
30 June 2026 31 December 2025
Early retirement benefits payable
(Note 5(34)) 1030000 1030000
Other termination benefits (i) 475092 1410780
15050922440780
(i) As at 30 June 2026 other termination benefits paid by the Group for termination of the
employment relationship were RMB1886038 (the six months ended 30 June 2025:
RMB2458544).
(26) Taxes payable
30 June 2026 31 December 2025
Consumption tax payable 60355129 59076964
Land use tax payable 4422459 4609622
Unpaid VAT 2924769 600401
Enterprise income tax payable 141141 32921540
Others 38229334 35489914
106072832132698441
90JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(27) Other payables
30 June 2026 31 December 2025
Promotion expenses 3083170376 30581972 01
Research and development project
expenses 807509350 947404470
Ordinary share dividends payable 478804588 4006342
Construction payment 267208228 498931773
Guarantees 137125650 146610838
Advertising and new product
planning fees 119855723 106729208
Trademark license fee 106331004 103978965
Transportation expenses 63032247 87941218
Others 824675790 849894856
58877129565803694871
As at 30 June 2026 other payables with aging over one year of RMB1898140637 (31
December 2025: RMB1601148088) mainly comprised 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.
(28) Current portion of non-current liabilities
30 June 2026 31 December 2025
Current portion of lease liabilities
(Note 5(31)) 25031350 91402749
Current portion of long-term
borrowings (Note 5(30)) 446006 460275
2547735691863024
(29) Other current liabilities
30 June 2026 31 December 2025
Provisions expected to be settled
within 1 year (Note 5(32)) 288776796 285227475
Others 26581248 19203931
315358044304431406
91JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(30) Long-term borrowings
30 June 2026 31 December 2025
Guaranteed loans(a) 669010 920551
Less: Current portion of long-term
borrowings (Note 5(28)) (446006) (460275)
669010460276
(a) As at 30 June 2026 the above guaranteed loans were long-term borrowings amounting to
USD 98226 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.(b) As at 30 June 2026 the Group had no overdue long-term borrowings at an interest rate of
1.5% (31 December 2025: 1.5%).
(31) Lease liabilities
30 June 2026 31 December 2025
Lease liabilities (a) 58586826 136262865
Less: Current portion of non-
current liabilities (Note 5(28)) (25031350) (91402749)
3355547644860116
(a) As at 30 June 2026 the Group had no leases that were not included in lease liabilities but will
result in potential future cash outflows.
92JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(32) Provisions
Increase in Decrease in
31 December the current the current 30 June
2025 period period 2026
Product warranties 540664152 165657871 (151785672) 554536351
Less: Provisions expected to
be settled within 1
year (Note 5(29)) (285227475) (288776796)
255436677265759555
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.
(33) Deferred income
Decrease in the
current period
31 December Increase in the Recognised in other
2025 current period income 30 June 202 6
Government grants
Government grants
related to assets 7067608 113300 (959333) 62 21575
Government grants
related to
income 6338569 10444100 (2416908) 143657 61
1340617710557400(3376241)20587336
93JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(34) Long-term employee benefits payable
30 June 2026 31 December 2025
Supplementary retirement benefits and
early-retirement benefits eligible for
recognition of provisions 51477339 53172000
Less: portion to be paid within one year (3319000) (3319000)
4815833949853000
The retirement and early-retirement benefits payable within one year are included in
employee benefits payable (Note 5(25)(c) Note 5(25)(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.
(35) Other non-current liabilities
30 June 2026 31 December 2025
Contract liabilities carried forward to
revenue after 1 year (Note 5(24)) 511013459 461860038
94JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(36) Share capital
Movements for the current period
31 December Shares newly Bonus Transfer from
2025 issued share capital surplus Others Sub-total 30 June 2026
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 2026 there were 750840 shares
currently unavailable for trading. During the reporting period there was no shares with trading restrictions released from the restricted conditions.
95JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(37) Capital surplus
31 December Increase in the Decrease in the
2025 current period current perio d 30 June 202 6
Share premium 816609422 - - 816609422
Other capital surplus 22833068 - - 22833068
839442490--839442490
(38) Treasury stock
31 December Increase in the Decrease in the
2025 current period current period 30 June 2026
Treasury stock 170214887 - - 170214887
In 2025 with the board's approval the company repurchased 8632078 shares through a dedicated
securities account via centralized bidding. The repurchased shares will be allocated to the employee
stock ownership plan or equity incentive programs. If the company fails to utilize all repurchased shares
within 36 months after completion the unused shares will be canceled.
96JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(39) Other comprehensive income
Other comprehensive income in the balance Other comprehensive income in the income statement for the period ended
sheet 30 June 2026
Attributable Amount Less: Transfer-out
to the incurred before of previous other
parent income tax for comprehensive Less: Attributable to the Attributable to
31 December company the current income in the Income tax parent company after the subsidiary
2025 after tax 30 June 2026 period current period expenses tax after tax
Other comprehensive income that will not be
reclassified to profit or loss
Remeasure changes in defined benefit plans (23862000) - (23862000) - - - - -
97JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(40) Special reserve
31 December Increase in the Decrease in the
2025 current period current period 30 June 2026
Safety
production cost 7860966 10160763 (10520724) 7501005
(41) Surplus reserve
31 December Increase in the Decrease in the
2025 current period current period 30 June 2026
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 statuary surplus reserve exceeded 50% of the
registered capital no appropriation was made in the current period (the six months ended
30 June 2025: Nil).
(42) Retained earnings
Six months ended 30 June
20262025
Retained earnings at the beginning
of the year 9752190648 9179333271
Add: Net profit attributable to shareholders of the
parent company for the current period 738802231 732728047
Less: Ordinary share dividends payable (a) (474985178) (614608368)
Retained earnings at the end of the Period
100160077019297452950
98JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(42) Retained earnings(Cont’d)
(a) On June 25 2026 the Company's 2025 Annual General Meeting examined and approved the
Company's 2025 Profit Distribution Proposal. Cash dividends will be distributed at RMB 0.55581 per
share amounting to RMB 474985178 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.
(43) Revenue and cost of sales
(a) Revenue and cost of sales
Six months ended 30 June
20262025
revenue cost revenue cost
main
operations 18640906727 16626494530 17647624305 15234142089
other
operations 720960524 380452975 444761905 305514733
19361867251170069475051809238621015539656822
(b) The breakdown of revenue
Six months ended 30 June 2026
Automobile
maintenance
Automobiles Materials and parts services etc. Total
Recognised at a time point 17693463556 1002068386 - 18695531942
Recognised within a certain
period - - 666335309 666335309
17693463556100206838666633530919361867251
Six months ended 30 June 2025
Automobile
maintenance
Automobiles Materials and parts services etc. Total
Recognised at a time point 16700185890 1099382084 - 17799567974
Recognised within a certain period - - 292818236 292818236
16700185890109938208429281823618092386210
(c) The breakdown of cost of sales
Six months ended 30 June 2026
Automobile
maintenance
Automobiles Materials and parts services etc. Total
Recognised at a time point 15957405543 698954395 - 16656359938
Recognised within a certain period - - 350587567 350587567
1595740554369895439535058756717006947505
As at 30 June 2026 the amount of revenue corresponding to the performance obligations that the
Group had contracted but had not commenced or completed was RMB1022005379 of which the
Group expects that RMB204378689 and RMB306613231 will be recognised as revenue from the
sales of automobiles and parts and revenue from the sales of automobile maintenance services
respectively in 2026 RMB511013459 will be recognised as revenue from automobile maintenance
services from 2027 to 2031(Note 5(24)).
99JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(44) Taxes and surcharges
Six months ended 30 June
20262025
Consumption tax 382861091 43504691 9
City maintenance and construction tax 32877944 3527851 5
Educational surcharge 32711039 3505090 3
Stamp tax 17028777 1679495 9
Real estate tax 9867435 1010631 8
Land use tax 9486135 1009781 1
Others 160283 19807 9
484992704542573504
(45) Selling and distribution expenses
Six months ended 30 June
20262025
Promotion expenses 204957020 203844392
Employee benefits 47147539 106794037
Advertising and new product planning fees 47607233 39306864
Packaging material expenses 18444045 18726471
Storage expenses 15306678 22792774
Depreciation and amortisation expenses 9259745 6365515
Others 48453630 68962440
391175890466792493
(46) General and administrative expenses
Six months ended 30 June
20262025
Employee benefits 277683992 278702135
Depreciation and amortisation expenses 57390508 59481750
Trademark license fee 12488370 33660541
Repair expenses 8741678 6888317
General office expenses 4876890 6048357
Consulting fees 2343855 4691161
Others 47699581 71208960
411224874460681221
(47) Research and development expenses
Six months ended 30 June
20262025
Employee benefits 328324751 389317458
Materials expenses 94804005 73513933
Design fee 89047999 70720348
Depreciation and amortisation expenses 34819651 37108953
Others 78264767 82265109
625261173652925801
100JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(48) Financial expenses
Six months ended 30 June
20262025
Interest costs 2228816 5017907
Add: Interest costs on lease liabilities 1894142 2988976
Interest expenses 4122958 8006883
Less: Interest income from cash at bank (39536688) (72870258)
Other interest income (2005543) (1590930)
Interest income (41542231) (74461188)
Exchange gains or losses (7732726) 10477168
Others 568590 600450
(44583409)(55376687)
(49) Asset impairment losses
Six months ended 30 June
20262025
Impairment of other current assets 9791000 -
Impairment of inventory (258830) (42736)
9532170(42736)
(50) Credit impairment losses
Six months ended 30 June
20262025
Losses on bad debts of accounts receivable 782360 2311109
Losses on bad debts of other receivables (69155) 28057
Losses on bad debts of notes receivable - 19
Losses on bad debts of long-term receivables 58821 (43558)
7720262295627
(51) Other income
Six months ended 30 June Asset related/
2026 2025 Income related
Government grants
- Supporting funds by government 15750000 0 191600000 Income related
- Research and development activities
related subsidies 153948 9 596602 Income related
- Equipment purchasing-related
subsidies 95933 3 998881 Asset related
- Other subsidies related with daily
operation 460295 2 9046699 Income related
Additional deduction of input VAT etc. 18861924 3 119023489 -
353221017321265671
101JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(52) Investment income
Six months ended 30 June
20262025
Losses on discount of financing receivables
eligible for derecognition (Note 5(4)) (6180) (234105)
Losses on long-term equity investments
under equity method(Note 5(11)) (2013354) (9803325)
Investment gains from disposal of long-term
equity investment 2384900 -
Investment (losses)/gain from forward
exchange settlement (158139) 10631603
Investment (losses)/gain from financial
assets held for trading (461372) 85408
(254145)679581
There is no significant restriction on the remittance of investment income of the Group.
(53) Gains on changes in fair value
Six months ended 30 June
20262025
Derivative financial assets and derivative
financial liabilities -
Losses on forward exchange contracts (3900257) (7182998)
Financial assets at fair value through profit
or loss -
Structural deposits 5509151 179240
1608894(7003758)
(54) Gains on disposal of assets
Six months ended 30 June Amount recognised
2026 2025 in non-recurring
profit or loss As at
30 June 2026
Gains on disposal of assets 2793321 18372675 2793321
102JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(55) Non-operating income
Six months ended 30 June Amount recognised in
2026 2025 non-recurring profit or
loss As at 30 June
2026
Penalty income 856559 9109 38 856559
Others 1054940 7862 50 1054940
191149916971881911499
(56) Non-operating expenses
Six months ended 30 June Amount recognised in
2026 2025 non-recurring profit or
loss As at 30 June
2026
Losses on scrapping
of assets 793842 - 793842
Donations 2000000 50 32 2000000
Others 1335165 2017 15 1335165
41290072067474129007
(57) Income tax expenses
Six months ended 30 June
20262025
Current income tax calculated based
on tax law and related regulations 45980541 13337
Deferred income tax 44415045 84071401
9039558684084738
103JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(57) 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
20262025
Total profit 831695897 817684775
Income tax calculated at applicable tax rates 124754385 122652716
Effect of different applicable tax rates 40966458 33360309
Tax credit (391696) -
Additional deductions (79403826) (75507128)
Deductive loss and temporary differences of
the unrecognised deferred tax asset in
the current period 1009053 966317
Non-deductible investment losses 2955718 1470499
Costs expenses and losses not deductible
for tax purposes 505494 1142025
Income tax expenses 90395586 84084738
(58) 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
20262025
Consolidated net profit attributable to ordinary
shareholders of the parent company 738802231 732728047
Weighted average number of ordinary shares
outstanding issued by the Company 854581922 860455004
Basic earnings per share 0.86 0.85
(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 2026
(the six months ended 30 June 2025: Nil) diluted earnings per share equalled to basic
earnings per share.
104JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(59) 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
20262025
Government grants 173454791 2086948 64
Guarantees 25034174 432401 53
Others 10062905 323690 69
208551870284304086
(b) Cash paid relating to other operating activities
Six months ended 30 June
20262025
Research and
development expenses 536928606 391730 406
Promotion expenses 193697090 383162 063
Maintenance expenses 37913666 44922 284
Advertising expenses 34428066 73585 126
Guarantees 29288350 35780 586
Consulting fees 10384947 31116 397
Trademark royalties 8560973 10261 304
Others 190790318 278077 246
10419920161248635412
(c) Cash received relating to other investing activities
Six months ended 30 June
20262025
Interest from cash at bank 66244608 74707091
Other interest 2329728 11599410
6857433686306501
(d) Cash paid relating to other financing activities
Six months ended 30 June
20262025
Payments of lease liabilities 15035882 12377597
Payment of treasury shares - 170000000
15035882182377597
105JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(60) 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
20262025
Net profit 741300311 733600037
Add: Asset impairment losses 9532170 (42736)
Credit impairment losses 772026 2295627
Depreciation of fixed assets 583438289 552829786
Amortisation of intangible assets 244718270 231412924
Depreciation of right-of-use assets 40718016 40592333
Gains of long-term assets (2189294) (18414462)
Financial income (45153234) (56039252)
Investment loss / (Gains) 254145 (679581)
(Gains) /Losses on changes in fair value (1608894) 7003758
Increase in deferred tax assets (20968773) (5659067)
Increase in deferred tax liabilities 65383818 89730468
(Increase) / Decrease in inventories (173321933) 149005794
Increase in provisions 13872199 24327812
Increase in operating receivables (69369634) (1474752408)
Decrease in operating payables (790425441) (349545446)
Decrease in other cash and cash equivalents 941680 9836629
Net cash flows from operating activities 597893721 (64497784)
Net increase in cash and cash equivalents
Six months ended 30 June
20262025
Cash and cash equivalents at the end of
the period 12108243916 11781003829
Less: Cash and cash equivalents at the
beginning of the year (13491154200) (12475176009)
Net increase in cash and cash
equivalents (1382910284) (694172180)
106JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(60) Supplementary information to the cash flow statement (Cont’d)
(b) Changes in liabilities arising from financing activities
Lease liabilities
Bank borrowings (including the current
(including the current portion) portion) Other Payables Total
31 December 2025 1950920551 136262865 105797267 2192980683
Cash inflows from financing
activities 1847927333 - - 1847927333
Cash outflows from financing
activities (3450223818) (15035882) (156789) (3465416489)
Interest accrued in the current
period 2072667 1894142 156149 4122958
Dividends accrued in the
current period - - 474985178 474985178
Changes that do not involve
cash receipts and payments (27723) (64534299) 66339940 1777918
30 June 2026 350669010 58586826 647121745 1056377581
107JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(60) Supplementary information to the cash flow statement (Cont’d)
(c) Cash and cash equivalents
30 June 2026 31 December 2025
Cash at bank available for payment at any
time 10755764460 11898659395
Cash at finance company available for
payment at any time 1352479456 1592494805
1210824391613491154200
(i) As in Note 5(1) other cash and cash equivalents of RMB26196044 as at 30 June 2026(31
December 2025: RMB27137724) was not included in cash and cash equivalents.
(61) Foreign currency monetary items
30 June 2026
Amounts in
foreign Translation
currencies exchange rate Amounts in RMB
Long-term borrowings-
USD 98226 6.8109 669010
Other payables-
USD 32316372 6.8109 220103578
220772588
108JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (Cont’d)
(62) Lease
(a) As a lessee
Six months ended 30 June
20262025
Interest expense on lease liabilities 1894142 2988976
Short-term lease expenses with simplified treatment
through profit or loss for the period 2408748 2047029
Total cash outflows related to leases 17444630 14424626
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.Rig ht-of-use assets see note 5(14); For lease liabilities see note 5(31).(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
Ga ins and losses related to operating leases are presented as follows:
Six months ended 30 June
20262025
Rental income 98562591 98802662
According to the lease contract with the lessee the undiscounted minimum lease collection amount
is as follows:
30 June 2026 31 December 2025
Within 1 year (including 1 year) 134292225 149604139
1 to 2 years (inclusive) 29640977 28182334
2 years to 3 years (inclusive) 13982919 10771072
177916121188557545
Fo r fixed assets leased out of operation see Note 5(12).
109JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 Retail Technical consultation and Set up by
(Shanghai)(a) Shanghai Shanghai 2678000000 business information consultation 51% - investment
110JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 Dividends paid to
Shareholding of attributable to minority minority shareholders for
minority shareholders for the period the period ended 30 June Minority interests as
Subsidiaries shareholders ended 30 June 2026 2026 at 30 June 2026
Jiangling Ford (Shanghai) 49% 2498080 - (3057017 29)
Key financial information of the above significant non-wholly owned subsidiaries is presented below.
30 June 2026
Current Non-current Current Non-current
assets assets Total assets liabilities liabilities Total liabilities
Jiangling Ford (Shanghai) 247532467 - 247 532467 871 236779 176767 871 413546
Six months ended 30 June 2026
Total
comprehensive Cash flows from
Revenue Net loss income operating activities
Jiangling Ford (Shanghai) 12057340 5098122 5098122 (193597515)
111JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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:
Shareholding (%)
Place of registration Direct Indirect
Associate -
The Power Company Taiyuan Shanxi 40% -
(b) Summarised financial information for significant associates
30 June 2026 31 December 2025
The Power Company The Power Company
Current assets 125021913 129114691
Non-current assets 413605903 414895371
Total assets 538627816 544010062
Current liabilities 80462099 120165219
Non-current liabilities 40288625 330626
Total liabilities 120750724 120495845
Equity 417877092 423514217
Share of net assets based on shareholding (i) 167150837 169405687
Adjustments
- Unrealised profits arising from internal
transactions (13000992) (13242488)
- Others (ii) 20853323 20853323
Carrying amount of equity investments in
associates 175003168 177016522
112JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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)
Six months ended 30 June
20262025
The Power Company The Power Company
Revenue 43361423 42666259
Net loss (5900419) (6102629)
Other comprehensive
income - -
Total comprehensive loss (5900419) (6102629)
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.
113JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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.As at 30 June 2026 the revenue obtained from a single customer of the Group accounted
for more than 10% of the Group’s revenue amounting to RMB8757404627 or 45.23%
(the six months ended 30 June 2025: 33.24% ) 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
2025 current period current period 30 June 2026
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 2026 31 December 2025
Shareholding Voting rights Shareholding Voting rights
(%)(%)(%)(%)
JIC 41.03% 41.03% 41.03% 41.03%
Ford 32.00% 32.00% 32.00% 32.00%
(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 6(1).
114JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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
Shareholder of JIC
referred to as “Chongqing Changan”)
Jiangling Motor Group (Nanchang) Fushan Energy
Controlled by JMCG
Co. LTD
JMCF Controlled by JMCG
JMCG Property Management Co. Controlled by JMCG
JMCG Jiangxi Engineering Construction Co. Ltd. Controlled by JMCG
Jiangxi Jiangling Chassis Co.Ltd. Controlled by JMCG
Jiangling Aowei Aotomobile Spare Part Co.Ltd. Controlled by JMCG
Jiangxi JMCG Boya brake system Co. Ltd. Controlled by JMCG
Jiangxi Jiangling group Fuxin Auto Parts Co. Ltd Controlled by JMCG
JMCG Jingma Motors Co. Ltd. Controlled by JMCG
Jiangxi Jiangling Motors Imp. & Exp. Co. Ltd. Controlled by JMCG
Jiangxi Jiangling Lear Interior System Co.Ltd. Controlled by JMCG
Jiangxi JMCG Specialty Vehicles Corporation Ltd. Controlled by JMCG
Jiangxi JMCG Specialty Vehicles Sales Corporation
Controlled by JMCG
Ltd.Jiangxi JMCG Shangrao Industrial Co.Ltd. Controlled by JMCG
Jiangxi JMCG Industry Co.Ltd. Controlled by JMCG
Jiangxi Jiangling Special Purpose Vehicle Co.Ltd. Controlled by JMCG
Jiangxi Jiangling Overseas Automobile Co. Ltd. Controlled by JMCG
Jiangxi Lingge Non-ferrous Metal Die-casting Co.Ltd. Controlled by JMCG
Jiangxi Lingrui Recycling Resources Development
Controlled by JMCG
Corporation
Jiangxi Mingfang Auto Parts Industry Co. Ltd Controlled by JMCG
Jiangxi Fuxiang Vehicle Co. Ltd. Controlled by JMCG
Jiangxi ISUZU Engine Co.Ltd. Controlled by JMCG
Jiangxi ISUZU Co. Ltd. Controlled by JMCG
Jiujiang Fuwantong Vehicle Co. Ltd. Controlled by JMCG
Nanchang Hengou Industry Co. Ltd. Controlled by JMCG
Nanchang Jiangling Hua Xiang Auto Components
Controlled by JMCG
Co.Ltd.Nanchang JMCG Frame Co.Ltd. Controlled by JMCG
Nanchang JMCG Liancheng Auto Component
Controlled by JMCG
Co.Ltd.Nanchang JMCG Shishun Logistics Co. Ltd. Controlled by JMCG
Nanchang Lianda Machinery Co.Ltd. Controlled by JMCG
Nanchang Unistar Electric & Electronics Co.Ltd. Controlled by JMCG
Ford Motor Company Limited Controlled by Ford
Ford Global Technologies LLC Controlled by Ford
Ford Motor Co. Thailand Ltd. Controlled by Ford
Ford Trading Company LLC Controlled by Ford
Ford Vietnam Limited Controlled by Ford
Ford Electric Mach Technology (Nanjing) Co. Ltd. Controlled by Ford
Ford Motor (China) Co. Ltd. Controlled by Ford
Ford Motor Research & Engineering (Nanjing) Co.Controlled by Ford
Ltd.Ford Motor Sales & Service (Shanghai) Co. Ltd. Controlled by Ford
115JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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
Changan Ford Automobile Co.Ltd. Joint venture of Ford
Controlled by Ultimate Holding Company
Anhui Wanyou Automobile Sales service Co. LTD
of Chongqing Changan
Beijing Baiwang Changfu Vehicle Sales & Service Co. C o n trolled by Ultimate Holding Company
Ltd. of Chongqing Changan
Beijing Beifang Changfu Vehicle Sales & Service Co. Controlled by Ultimate Holding Company
Ltd. of Chongqing Changan
Controlled by Ultimate Holding Company
Chengdu Wanxing Vehicle Sales & Service Co. Ltd.of Chongqing Changan
Controlled by Ultimate Holding Company
Guizhou Wanfu Vehicle Sales & Service Co. Ltd.of Chongqing Changan
Harbin Dongan Automotive Engine Manufacturing Controlled by Ultimate Holding Company
Co. Ltd. of Chongqing Changan
Controlled by Ultimate Holding Company
Wanyou Automobile Investment Co. Ltd.of Chongqing Changan
Controlled by Ultimate Holding Company
Yunan Wanfu Vehicle Sales & Service Co. Ltd.of Chongqing Changan
Controlled by Ultimate Holding Company
China Changan Group Tianjin Sales Co.Ltd
of Chongqing Changan
Controlled by Ultimate Holding Company
Chongqing Anfu Vehicle Marketing Co. Ltd.of Chongqing Changan
Jiangxi Zhengxing Automotive Parts Manufacturing
Joint venture of JMCG
Co. Ltd.Nanchang Huaxiang Automotive Interior & Exterior
Joint venture of JMCG
Components Co. Ltd.Nanchang Yinlun Heat-exchanger Co.Ltd. Joint venture of JMCG
Bosch Electric Drive Systems (Nanchang) Co. Ltd. Associate of JMCG
Dibao transportation equipment (Nanchang) Co. Ltd Associate of JMCG
Jiangling Motor Holdings Co. Ltd Associate of JMCG
Jiangxi Jiangling Group Special Vehicle Co.Ltd. Associate of JMCG
Jiangxi Jingwei Hirain Technologies Co. Inc. Associate of JMCG
Jiangxi Lingyun Automobile Industry Technology
Associate of JMCG
Co.Ltd
Jiangxi Zhonglian Intelligent Logistics Co. Ltd. Associate of JMCG
Magna PT Powertrain (Jiangxi) Co. Ltd Associate of JMCG
Nanchang Baojiang Steel Processing Distribution
Associate of JMCG
Co.Ltd.Faurecia Emissions Control Technologies
Associate of JMCG
(Nanchang) Co.Ltd.Nanchang JMCG SMR Huaxiang Mirror Co. Ltd. Associate of JMCG
Nanchang JMCG Xinchen Auto Component Co.Ltd. Associate of JMCG
116JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 2026 2 025
Purchase of
Jiangxi Jiangling Chassis Co.Ltd. automobile parts 485429429 4562234 30
Purchase of
Magna PT Powertrain (Jiangxi) Co. Ltd automobile parts 469027753 615426603
Jiangxi Jiangling Lear Interior System Purchase of
Co.Ltd. automobile parts 401273447 351786847
Nanchang Baojiang Steel Processing Purchase of raw
Distribution Co.Ltd. materials 395894180 393721342
Jiangxi Zhonglian Intelligent Logistics Co. Purchase of
Ltd. automobile parts 352556470 356907375
Nanchang Huaxiang Automotive Interior & Purchase of
Exterior Components Co. Ltd. automobile parts 341494851 -
Jiangxi Jiangling Special Purpose Vehicle Purchase of
Co.Ltd. automobile parts 314810597 324790233
Nanchang Jiangling Hua Xiang Auto Purchase of
Components Co.Ltd. automobile parts 255363975 475708044
Faurecia Emissions Control Technologies Purchase of
(Nanchang) Co.Ltd. automobile parts 168363621 109443670
Nanchang JMCG Liancheng Auto Purchase of
Component Co.Ltd. automobile parts 143273040 178172213
Harbin Dongan Automotive Engine Purchase of
Manufacturing Co. Ltd. automobile parts 122556192 97181277
Jiangxi Lingyun Automobile Industry Purchase of
Technology Co.Ltd automobile parts 113193189 99583790
Jiangxi Jingwei Hirain Technologies Co. Purchase of
Inc. automobile parts 111357094 72032364
Nanchang Unistar Electric & Electronics Purchase of
Co.Ltd. automobile parts 109260278 102115941
Purchase of
Nanchang JMCG Shishun Logistics Co. Ltd. automobile parts 104840082 98311283
Bosch Electric Drive Systems (Nanchang) Purchase of
Co. Ltd. automobile parts 68274636 7826726
Purchase of
Nanchang Yinlun Heat-exchanger Co.Ltd. automobile parts 61135159 58949235
Nanchang JMCG SMR Huaxiang Mirror Co. Purchase of
Ltd. automobile parts 56404128 59494853
Dibao transportation equipment (Nanchang) Purchase of
Co. Ltd automobile parts 52481374 39406356
Jiangxi Lingge Non-ferrous Metal Die- Purchase of
casting Co.Ltd. automobile parts 40251753 34941067
Purchase of
Ford automobile parts 33281597 105699063
Jiangxi Mingfang Auto Parts Industry Co. Purchase of
Ltd automobile parts 28393705 11020726
Purchase of
Changan Ford Automobile Co.Ltd. automobile parts 25640911 51634635
Purchase of
Jiangxi JMCG Boya brake system Co. Ltd. automobile parts 24615623 18123765
Purchase of
Nanchang Lianda Machinery Co.Ltd. automobile parts 19591890 16682458
117JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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)
Purchase of goods (Cont’d):
Six months ended 30 June
Natue of related
party transactions 2026 2 025
Jiangxi JMCG Specialty Vehicles Purchase of
Corporation Ltd. automobile parts 14527279 290240 57
Purchase of
Jiangxi JMCG Shangrao Industrial Co.Ltd. automobile parts 13727454 14096083
Jiangling Motor Group (Nanchang) Fushan Purchase of raw
Energy Co. LTD materials 12965615 14399011
Jiangxi Jiangling group Fuxin Auto Parts Purchase of
Co. Ltd automobile parts 10758249 8510953
Jiangling Aowei Aotomobile Spare Part Purchase of
Co.Ltd. automobile parts 5857630 5264524
Jiangxi Jiangling Group Special Vehicle Purchase of
Co.Ltd. automobile parts 5641484 19227733
Jiangxi Zhengxing Automotive Parts Purchase of
Manufacturing Co. Ltd. automobile parts 5255680 -
Nanchang JMCG Xinchen Auto Component Purchase of
Co.Ltd. automobile parts 2896173 3157004
Purchase of
Ford Motor Co. Thailand Ltd. automobile parts 2214877 1406550
Purchase of
Shanxi Yunnei Power Group Co. Ltd. automobile parts 1066375 -
Purchase of
Jiangling Motor Holdings Co. Ltd automobile parts 723187 1315804
Purchase of
Nanchang JMCG Frame Co.Ltd. automobile parts 342791 1831595
Purchase of
Jiangxi ISUZU Engine Co.Ltd. automobile parts 560 1429344
Purchase of
JMCG automobile parts - 2511812
43747423284237357766
The Group purchases goods from related parties based on the agreed price between the two
parties as the pricing basis.
118JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 2026 20 25
Nanchang JMCG Shishun Logistics Transportation removal
Co. Ltd. fee etc. 159911027 15531126 6
Ford Global Technologies LLC Technical development 60155108 8611065 4
Ford Motor Sales & Service
(Shanghai) Co. Ltd. Distribution and promotion 56598047 -
Trademark management
fees Personnel costs
Ford etc. 29020309 41545223
Jiangxi Zhonglian Intelligent Cartage fee storage fee et
Logistics Co. Ltd. c. 27641909 29651515
Jiangxi JMCG Industry Co.Ltd. Meals 16587449 16289997
Ford Motor Research & Engineering Design fee Personnel
(Nanjing) Co. Ltd. costs 12667875 66182110
Jiangxi Jiangling Motors Imp. & Exp. Agency fee advertising
Co. Ltd. fee etc. 6757098 6740642
Design fee Personnel
Ford Motor (China) Co. Ltd. costs etc. 5801773 36140632
JMCG Jiangxi Engineering
Construction Co. Ltd. Engineering construction 5673787 4742946
JMCG Property Management Co. Property fees etc. 3955468 6669045
JMCG Labour fee rental fee etc. 3624107 3371580
Jiangxi Jingwei Hirain Technologies
Co. Inc. Design fees 2858100 2298200
Bosch Electric Drive Systems
(Nanchang) Co. Ltd. Design fees 1528050 -
Chongqing Changan Automobile
Co. Ltd. Personnel costs 1428577 1285866
Chongqing Anfu Vehicle Marketing
Co. Ltd. Promotion 814980 1936652
China Changan Group Tianjin Sales
Co.Ltd Promotion 502076 1864600
Guizhou Wanfu Vehicle Sales &
Service Co. Ltd. Promotion 341212 1027748
Magna PT Powertrain (Jiangxi) Co. Design fee experimental
Ltd costs - 1914618
395866952463083294
The Group’s pricing on services received from related parties is based on the agreed price by both
parties.
119JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 2026 2025
Jiangxi Jiangling Motors Imp. & Sales of vehicles and
Exp. Co. Ltd. accessories etc. 8657360088 6011263897
Jiangxi JMCG Specialty Vehicles
Sales Corporation Ltd. Sales of vehicles 101574718 103335709
Sales of vehicles and
JMCG Jingma Motors Co. Ltd. accessories 70754780 51445265
Jiangxi Lingrui Recycling
Resources Development Sales of waste
Corporation materials etc. 37233143 35741568
Chongqing Anfu Vehicle Sales of vehicles and
Marketing Co. Ltd. accessories 29790066 60329061
Nanchang Hengou Industry Co.Ltd. Sales of accessories 26624147 15439211
Yunan Wanfu Vehicle Sales & Sales of vehicles and
Service Co. Ltd. accessories 25041170 -
Jiangxi Jiangling Group Special Sales of vehicles and
Vehicle Co.Ltd. accessories 21567230 10849292
Chengdu Wanxing Vehicle Sales Sales of vehicles and
& Service Co. Ltd. accessories 20686397 28676309
Jiangxi Jiangling Chassis
Co.Ltd. Sales of accessories 19629963 18339260
Nanchang Jiangling Hua Xiang
Auto Components Co.Ltd. Sales of accessories 19120874 13227215
Jiangxi JMCG Specialty Vehicles Sales of vehicles and
Corporation Ltd. accessories 18055690 61861871
Guizhou Wanfu Vehicle Sales & Sales of vehicles and
Service Co. Ltd. accessories etc. 13492611 21092325
Beijing Beifang Changfu Vehicle Sales of vehicles and
Sales & Service Co. Ltd. accessories etc. 12218081 230857
Jiangxi Jiangling Lear Interior
System Co.Ltd. Sales of accessories 10240847 8478228
China Changan Group Tianjin Sales of vehicles and
Sales Co.Ltd accessories 9503723 23377989
Nanchang JMCG SMR Huaxiang
Mirror Co. Ltd. Sales of accessories 9372436 12793698
Sales of accessories
Jiangxi ISUZU Co. Ltd. etc. 9106313 7060132
Jiangxi Zhonglian Intelligent
Logistics Co. Ltd. Sales of accessories 9012934 10533862
Jiangxi Jiangling Special Sales of vehicles and
Purpose Vehicle Co.Ltd. accessories 7753811 2446876
Anhui Wanyou Automobile Sales Sales of vehicles and
service Co. LTD accessories 6476614 -
Nanchang JMCG Liancheng
Auto Component Co.Ltd. Sales of accessories 5661202 7108114
Wanyou Automobile Investment Sales of vehicles and
Co. Ltd. accessories 4682357 -
Sales of accessories
Jiangxi JMCG Industry Co.Ltd. and waste materials 4411270 4011751
Beijing Baiwang Changfu Vehicle Sales of vehicles and
Sales & Service Co.Ltd. accessories etc. 3541976 193894
120JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 2026 2025
Sales of vehicles and
Jiangxi Fuxiang Vehicle Co. Ltd. accessories etc. 2388186 -
Jiangxi Jiangling Overseas Sales of vehicles and
Automobile Co. Ltd. accessories etc. 2031816 -
Jiangxi ISUZU Engine Co.Ltd. Sales of accessories 1417314 7991895
Jiujiang Fuwantong Vehicle Co. Sales of vehicles and
Ltd. accessories 1389451 -
91601392086515828279
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 2026 2025
Jiangxi Zhengxing Automotive
Parts Manufacturing Co. Ltd. Equipment 653504 -
JMCG Jingma Motors Co. Ltd. Equipment 181540 -
Jiangling Motor Holdings Co. Ltd Buildings - 8935
Jiangxi ISUZU Co. Ltd. Buildings - 2945
83504411880
(ii) Interest costs on lease liabilities in the current period with the Group as the lessee:
Six months ended 30 June
Type of the leased asset 2026 2025
Jiangxi Jiangling Motors Imp.& Exp. Co. Ltd. Buildings 241956 455655
Ford Motor (China) Co. Ltd. Buildings 7666 10804
JMCG Buildings - 84749
249622551208
(c) Guarantee received
Guaranteed
Guarantor amount Starting date Ending date Fully performed or not
JMCG 669010 14 February 2025 14 February 2028 Not fully performed
As at 30 June 2026 JMCG provided guarantees for some bank borrowings of the Group with a maximum
guarantee limit of USD196453. As at 30 June 2026 JMCG provided borrowing guarantee to the bank
borrowing of USD98226 equivalent to RMB669010 (31 December 2025: USD130968 equivalent to
RMB920551) for the Group.
121JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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)
(d) Purchase of assets
Six months ended 30 June
Nature of related party
transactions 2026 2025
Jiangxi Jiangling Special
Purpose Vehicle Co.Ltd. Purchase of fixed assets 5422200 19211155
Nanchang Jiangling Hua Xiang
Auto Components Co.Ltd. Purchase of fixed assets 1364883 -
Magna PT Powertrain (Jiangxi)
Co. Ltd Purchase of fixed assets 654300 1712116
Nanchang JMCG Liancheng
Auto Component Co.Ltd. Purchase of fixed assets - 3890000
Jiangxi Jiangling Chassis
Co.Ltd. Purchase of fixed assets - 2100000
744138326913271
The Group’s pricing on goods sold to related parties is based on the agreed price by both parties.(e) Provision of technology and distribution service
Six months ended 30 June
Nature of related
party transactions 2026 2 025
Ford Global Technologies LLC Technical service 358547430 15853895
Jiangxi Jiangling Motors Imp. & Exp.Co. Ltd. Technical service 100044539 2750566
Ford Motor Company Limited Technical service 11757601 -
Ford Electric Mach Technology
(Nanjing) Co. Ltd. Technical service 5758619 72814268
Ford Vietnam Limited Technical service 2377817 1452183
Ford Trading Company LLC Technical service 1140000 -
Ford Motor (China) Co. Ltd. Distribution service - 13355759
479626006106226671
The Group’s pricing on technology provided to related parties is based on the agreed price by
both parties.(f) Remuneration of key management
Six months ended 30 June
20262025
Remuneration of key management 8245277 7897859
(g) Interest income
Six months ended 30 June
20262025
JMCF 2262723 7873071
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 1.4% over the same period (the six months ended 30
June 2025: 0.85% to 1.55%).
122JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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)
(h) Interest expenses
Six months ended 30 June
20262025
Jiangxi Zhonglian Intelligent Logistics Co. Ltd. 120000 -
Nanchang JMCG Shishun Logistics Co. Ltd. 30000 -
Ford Motor (China) Co. Ltd. - 2629588
1500002629588
(i) Funds borrowed in
Six months ended 30 June
20262025
Ford Motor (China) Co. Ltd. - 85750000
123JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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
Accounts receivable
30 June 2026 31 December 2025
Provision Provision
for bad for bad
Amount debts Amount debts
Jiangxi Jiangling Motors Imp.& Exp. Co. Ltd. 5080317525 10575729 46162069 69 9532031
JMCG Jingma Motors Co. Ltd. 51157944 177055 472792 52 151735
Jiangxi JMCG Specialty
Vehicles Sales Corporation
Ltd. 24709195 19176 37312 51 739
Jiangxi Zhonglian Intelligent
Logistics Co. Ltd. 10042122 30126 166070 18 49821
Nanchang Jiangling Hua Xiang
Auto Components Co.Ltd. 6876492 20629 155442 13 46633
Jiangxi Jiangling Chassis
Co.Ltd. 5106679 15320 - -
Jiangxi Jiangling Lear Interior
System Co.Ltd. 3787830 11363 67553 50 20266
Jiangxi ISUZU Co. Ltd. 3706563 11589 78660 57 23598
Nanchang JMCG SMR
Huaxiang Mirror Co. Ltd. 3174719 9524 - -
Jiangxi ISUZU Engine Co.Ltd. 2074215 30289 25493 43 7648
Nanchang JMCG Liancheng
Auto Component Co.Ltd. 1972719 5918 30658 01 9197
Ford Global Technologies
LLC 1135910 3408 - -
Jiangxi JMCG Industry
Co.Ltd. 449795 1349 10839 07 3252
Jiangxi JMCG Specialty
Vehicles Corporation Ltd. 149399 448 49076 60 1814
Ford Trading Company LLC - - 18200 00 5460
51946611071091192347274168219852194
Other re ceivables
30 June 2026 31 December 2025
Provision
for bad Provision for
Amount debts Amount bad debts
Jiangxi Jiangling Motors Imp.& Exp. Co. Ltd. 6101420 20479 8678667 25931
JMCG 1355843 4551 51000 153
Jiangxi Zhengxing Automotive
Parts Man ufacturing Co. Ltd. 1107690 3718 373230 1120
Ford Moto r (China) Co. Ltd. 1028081 - 1885311 5656
Ford Motor Sales & Service
(Shang hai) Co. Ltd. - - 1343694 4031
9593034287481233190236891
124JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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)
Advances to suppliers
30 June 2026 31 December 2025
Nanchang Baojiang Steel Processing
Distribution Co. Ltd. 139232552 9 1759002
Financing receivables
30 June 2026 31 Decem ber 2025
JMCG Jingma Motors Co. Ltd. 6839924 2468962
Jiangxi ISUZU Co. Ltd. 500000 -
Jiangxi ISUZU Engine Co.Ltd. 138519 712751
Jiangxi Jiangling Motors Imp. & Exp. Co.Ltd. - 147945413
Jiangxi JMCG Specialty Vehicles
Corporation Ltd. - 6000
7478443151133126
Cash at bank
30 June 2026 31 December 2025
JMCF 1352479456 1592494805
125JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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)
Accounts payable
30 June 2026 31 December 2025
Jiangxi Jiangling Lear Interior System Co.Ltd. 378878342 419610763
Jiangxi Jiangling Chassis Co.Ltd. 331430620 281190452
Nanchang Jiangling Hua Xiang Auto Components
Co.Ltd. 283169260 339272999
Jiangxi Zhonglian Intelligent Logistics Co. Ltd. 269348187 298526234
Jiangxi Jiangling Special Purpose Vehicle Co.Ltd. 267014846 258868938
Nanchang Huaxiang Automotive Interior & Exterior
Components Co. Ltd. 212194415 264555517
Magna PT Powertrain (Jiangxi) Co. Ltd 159155425 230896819
Nanchang JMCG Liancheng Auto Component
Co.Ltd. 110079747 127011360
Faurecia Emissions Control Technologies (Nanchang)
Co.Ltd. 99990924 90135188
Nanchang JMCG Shishun Logistics Co. Ltd. 85748139 102537845
Dibao transportation equipment (Nanchang) Co. Ltd 83187087 87101643
Jiangxi Lingyun Automobile Industry Technology
Co.Ltd 71142737 37021732
Harbin Dongan Automotive Engine Manufacturing Co.Ltd. 70543404 79587095
Ford 56189404 101603052
Nanchang Yinlun Heat-exchanger Co.Ltd. 41177326 49496828
Bosch Electric Drive Systems (Nanchang) Co. Ltd. 40891163 50329567
Nanchang JMCG SMR Huaxiang Mirror Co. Ltd. 36319924 44866960
Nanchang Unistar Electric & Electronics Co.Ltd. 32298898 30110251
Jiangxi JMCG Specialty Vehicles Corporation Ltd. 30668307 20129520
Jiangxi Jingwei Hirain Technologies Co. Inc. 27672556 37415298
Jiangxi Mingfang Auto Parts Industry Co. Ltd 16856355 13960106
Jiangxi JMCG Boya brake system Co. Ltd. 16513877 17024842
Nanchang Lianda Machinery Co.Ltd. 13898069 18239104
Changan Ford Automobile Co.Ltd. 11860475 11170263
Jiangxi Jiangling Group Special Vehicle Co.Ltd. 9876061 23989369
Jiangxi Jiangling group Fuxin Auto Parts Co. Ltd 6097003 4913122
Jiangling Aowei Aotomobile Spare Part Co.Ltd. 6073499 7000633
Jiangxi Lingge Non-ferrous Metal Die-casting Co.Ltd. 5857864 9958459
Jiangxi Zhengxing Automotive Parts Manufacturing
Co. Ltd. 5657189 5306616
Jiangxi JMCG Shangrao Industrial Co.Ltd. 4250374 4470727
Nanchang JMCG Xinchen Auto Component Co.Ltd. 3031541 3463250
JMCG 3005892 3005892
JMCG Jingma Motors Co. Ltd. 2755602 2650990
Ford Motor Co. Thailand Ltd. 2073411 -
Jiangling Motor Group (Nanchang) Fushan Energy Co.LTD 1040868 3838607
Jiangxi ISUZU Engine Co.Ltd. 190473 5714745
27961392643084974786
126JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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)
Other payables
30 June 2026 31 December 2025
Ford 135539633 135 932978
Jiangxi Jiangling Motors Imp. & Exp. Co. Ltd. 110552968 71280639
Ford Global Technologies LLC 87408675 104008803
Ford Motor Research & Engineering (Nanjing) Co. Ltd. 59950338 101729209
Ford Motor (China) Co. Ltd. 48035191 77322435
Ford Motor Sales & Service (Shanghai) Co. Ltd. 45862796 21704280
Nanchang JMCG Shishun Logistics Co. Ltd. 41537456 65385503
Nanchang Jiangling Hua Xiang Auto Components
Co.Ltd. 23112507 32534219
Jiangxi Jingwei Hirain Technologies Co. Inc. 15139956 13318646
JMCG 10435907 8449024
Jiangxi Jiangling Special Purpose Vehicle Co.Ltd. 10285937 9893430
Jiangxi JMCG Specialty Vehicles Corporation Ltd. 5861648 5979373
Chongqing Anfu Vehicle Marketing Co. Ltd. 5856174 8611595
Chengdu Wanxing Vehicle Sales & Service Co. Ltd. 4471623 3358444
Chongqing Changan Automobile Co. Ltd. 4120536 2691958
Jiangxi Jiangling Lear Interior System Co.Ltd. 3858520 2366149
Jiangxi Jiangling Chassis Co.Ltd. 3740125 6101537
Guizhou Wanfu Vehicle Sales & Service Co. Ltd. 3701535 2365316
JMCG Property Management Co. 3673584 22149851
Yunan Wanfu Vehicle Sales & Service Co. Ltd. 3445909 900239
Jiangxi JMCG Industry Co.Ltd. 2807617 3230883
JMCG Jiangxi Engineering Construction Co. Ltd. 2720247 12843807
Bosch Electric Drive Systems (Nanchang) Co. Ltd. 2657173 1365331
Jiangxi Zhonglian Intelligent Logistics Co. Ltd. 2077742 7271904
Nanchang JMCG Liancheng Auto Component Co.Ltd. 1912719 1890523
Nanchang Unistar Electric & Electronics Co.Ltd. 1355206 1246983
Magna PT Powertrain (Jiangxi) Co. Ltd 684925 1311073
Jiangxi Jiangling Group Special Vehicle Co.Ltd. 609825 1547766
China Changan Group Tianjin Sales Co.Ltd 572876 1158724
Jiangxi JMCG Boya brake system Co. Ltd. 538146 1646490
Jiangxi JMCG Specialty Vehicles Sales Corporation Ltd. 410264 8199190
642937758737796302
Contract liabilities
30 June 2026 31 December 2025
Ford Global Technologies LLC 43382188 148989875
Jiangxi Jiangling Motors Imp. & Exp. Co. Ltd. 19619035 21463072
Jiangxi Jiangling Special Purpose Vehicle Co.Ltd. 16465170 872161
Ford Motor Company Limited 5352399 -
Jiangxi JMCG Specialty Vehicles Corporation Ltd. 3233836 56453
Yunan Wanfu Vehicle Sales & Service Co. Ltd. 3110967 19399
Ford Electric Mach Technology (Nanjing) Co. Ltd. 2810116 8568735
Chongqing Anfu Vehicle Marketing Co. Ltd. 2631122 275471
Guizhou Wanfu Vehicle Sales & Service Co. Ltd. 2185256 299778
Chengdu Wanxing Vehicle Sales & Service Co. Ltd. 1450742 467299
Beijing Baiwang Changfu Vehicle Sales & Service
Co.Ltd. 1396899 840943
Jiangxi Jiangling Group Special Vehicle Co.Ltd. 201696 1810239
Ford Vietnam Limited 10000 2377817
101849426186041242
127JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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)
Lease liabilities
30 June 2026 31 December 2025
Jiangxi Jiangling Motors Imp. & Exp. Co. Ltd. 11638084 17991177
Ford Motor (China) Co. Ltd. 346817 429403
1198490118420580
Notes Payable
30 June 2026 31 December 2025
Jiangxi Jingwei Hirain Technologies Co. Inc. 43174800 21148158
Jiangxi Zhonglian Intelligent Logistics Co. Ltd. 21272253 51987191
Jiangxi Lingge Non-ferrous Metal Die-casting Co.Ltd. 15926434 20028725
Nanchang Unistar Electric & Electronics Co.Ltd. 10108661 -
Jiangxi Jiangling Lear Interior System Co.Ltd. - 43447910
Dibao transportation equipment (Nanchang) Co. Ltd - 5987652
90482148142599636
(7) Commitments in relation to related parties
Capital commitments
30 June 2026 31 December 2025
JMCG Jiangxi Engineering Construction
Co. Ltd. 42897500 50047100
Jiangxi JMCG Specialty Vehicles
Corporation Ltd. 61000 -
4295850050047100
Guarantee of commitments in relation to related parties is set out in Note 8(5)(c).
9 Contingencies
As at 30 June 2026 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 2026 31 December 2025
Buildings machinery and equipment 670953000 447365000
128JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 2026 the Group’s borrowings
denominated in foreign currencies were USD98226 equivalent to RMB669010. The
Group's other accounts payable denominated in foreign currencies was USD32316372
equivalent to RMB220103578. The Group signed forward exchange contracts to mitigate
the foreign exchange risk.
129JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 2026 and 31 December 2025 as
follows:
30 June 2026 31 December 2025
USD USD
Financial liabilities denominated in
foreign currency -
Derivative financial liability 3517243 695349
Current portion of long-term
borrowings 446006 460275
Long-term borrowings 223004 460276
Other payables 220103578 238048904
224289831239664804
As at 30 June 2026 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
RMB22428983 (31 December 2025: approximately RMB23966480)
130JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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)
(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 2026 the Group’s short-term borrowings of RMB350000000
(31 December 2025: RMB1950000000) were fixed-rate borrowings and long-term
borrowings of USD98226 (31 December 2025: USD130968) 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
2026 and 2025 the Group did not enter into any interest rate swap agreements.
As at 30 June 2026 and 31 December 2025 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.
131JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 2026 the Group had no significant collateral or other credit enhancements held
as a result of the debtor’s mortgage (31 December 2025: 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 2026
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Derivative
financial liability 3517243 - - - 3517243
Short-term
borrowings 350000000 - - - 350000000
Notes payable 338413385 - - - 338413385
Accounts
payable 11059636157 - - - 11059636157
Other payables 5887712956 - - - 5887712956
Lease liabilities 26641995 14118843 20991452 - 61752290
Long-term
borrowings 454369 224676 - - 679045
176663761051434351920991452-17701711076
31 December 2025
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Derivative
financial
liability 695349 - - - 695349
Short-term
borrowings 1950000000 - - - 1950000000
Notes payable 427292904 - - - 427292904
Accounts
payable 11397760484 - - - 11397760484
Other payables 5803694871 - - - 5803694871
Lease liabilities 94181823 19112654 27987771 - 141282248
Long-term
borrowings 472357 465454 - - 937811
196740977881957810827987771-19721663667
132JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 2026 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 2026 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
Financial assets held for
trading -
Structured deposit - 801738192 - 801738192
Financing receivables -
Notes receivable - 484953 41 - 48495 341
-850233533-850233533
As at 31 December 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
Financial assets held for
trading -
Structured deposit - 801902466 - 801902466
Financing receivables -
Notes receivable - 2058515 91 - 205851 591
-1007754057-1007754057
As at 30 June 2026 the liabilities measured at fair value on a recurring basis by the above
three levels were analysed below:
133JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
12 Fair value estimates(Cont’d)
Level 1 Level 2 Level 3 Total
Financial liabilities
Derivative financial liabilities -
Forward foreign exchange contracts -- 3517243 -- 3517243
(1) Assets and liabilities measured at fair value on a recurring basis (Cont'd)
As at 31 December 2026 the liabilities measured at fair value on a recurring basis by the
above three levels were analysed below:
Level 1 Level 2 Level 3 Total
Financial liabilities
Derivative financial liabilities -
Forward foreign exchange contracts -- 695349 -- 695349
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 2026.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 2026 and 31 December 2025 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.
134JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
12 Fair value estimates(Cont’d)
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 2026 and 31 December 2025 the Group’s equity ratio was as follows:
30 June 2026 31 December 2025
Total borrowings 350669010 1950920551
Total shareholders’ equity 11657993580 11392038408
Equity ratio 3% 17%
135JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 2026 31 December 2025
Accounts receivable 7135200763 6815674720
Less: Provision for bad debts (550460271) (551092111)
65847404926264582609
(a) The aging of accounts receivable was analysed as follows:
30 June 2026 31 December 2025
Within 1 year 6124506751 60349881 77
Over 1 year 1010694012 7806865 43
71352007636815674720
As of 30 June 2026 accounts receivable with significant individual amounts and aging
exceeding three years was analysed as follows:
Balance Reason and collection risk
Company1 63365929 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 2026 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 6981085205 549289086 98%
136JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 2026
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 1953207304 27% 5 39114199 27.60%
Provision for bad debts on the
grouping basis (ii) 5181993459 73% 11346072 0.22%
7135200763100.00%5504602717.71%
31 December 2025
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 1986944666 29% 540672868 27.21%
Provision for bad debts on the
grouping basis (ii) 4828730054 71% 10419243 0.22%
6815674720100%5510921118.09%
(i) Accounts receivable for which the provision for bad debts was provided on the individual
basis were analysed follows:
30 June 2026
Book balance Provision for bad debts
Amount Lifetime ECL (%) Provision for bad debts
Receivables from related parties
within the Group i) 1889841375 25% 475748270
Receivables for
automobiles ii) 63365929 100% 63365929
1953207304539114199
31 December 2025
Book balance Provision for bad debts
Provision for bad
Amount Lifetime ECL (%) debts
Receivables from related parties
within the Group i) 1922020068 25% 475748270
Receivables for
automobiles ii) 64924598 100% 64924598
1986944666540672868
i) As at 30 June 2026 the Company’s accounts receivable from subsidiary JMC & Ford
(Shanghai) SZFJ and GZFJ were RMB524807454 RMB1358073621 and
RMB6960300 (31 December 2025: RMB529737786 RMB1385321982 and
RMB6960300). The Company has individually assessed the receivable from JMC & Ford
(Shanghai) a subsidiary and recognized an impairment loss of RMB475748270 based
on its evaluation of credit risk(31 December 2025: 475748270).
137JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 2026 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 RMB63365929 (31 December 2025:
RMB64924598) which was included in the reversal of profit or loss of RMB1558669 (the
six months ended 30 June 2025: 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 2026
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 57828043 0.08% 44879
Overdue for 1 to 30 days 2322100 2.60% 60364
Overdue for 31 to 60 days 234500 4.40% 10309
Overdue for 61 to 90 days 1577940 6.12% 96594
Overdue over 90 days 2063126 9.18% 189395
64025709401541
31 December 2025
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 114439713 0.02% 22651
Overdue for 1 to 30 days - - -
Overdue for 31 to 60 days 2549619 2.18% 55521
Overdue for 61 to 90 days - - -
Overdue over 90 days 2058700 9.18% 188989
119048032267161
Grouping – Export sales of general automobiles:
30 June 2026
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 4953208692 0.20% 9906417
138JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 2025
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 4538555702 0.20% 9077111
Grouping - Sales of new energy automobiles:
30 June 2026
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Overdue over 90 days 562680 80.00% 450144
31 December 2025
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Overdue over 90 days 562680 80.00% 450144
Grouping – Automobile parts:
30 June 2026
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 126339298 0.30% 379018
Overdue for 1 to 30 days 28017996 0.30% 84054
Overdue for 31 to 60 days 8156807 0.50% 40784
Overdue for 61 to 90 days - - -
Overdue over 90 days 1682277 5.00% 84114
164196378587970
31 December 2025
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 160521184 0.30% 481564
Overdue for 1 to 30 days 5892457 0.30% 17677
Overdue for 31 to 60 days 1349957 0.50% 6750
Overdue for 61 to 90 days 481041 0.60% 2886
Overdue over 90 days 2319001 5.00% 115950
170563640624827
139JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 reversed provision for bad debts in the current period amounted to RMB631840.(d) There was no provision for bad debts actually written off during the period.(e) As at 30 June 2026 and 31 December 2025 there were no accounts receivable pledged.
(2) Other receivables
30 June 2026 31 December 2025
Import working capital 5000000 5000000
Receivables from JMCH 3930364 14767717
Gas and electricity bills 2111988 21112025
Receivables from land acquisition
and storage - 79807336
Others 15924800 143631 59
26967152135050237
Less: Provision for bad debts (93390) (14365 3)
26873762134906584
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 2026 31 December 2025
Within 1 year 24630218 1250743 73
Over 1 year 2336934 99758 64
26967152135050237
140JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 2026
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 3930364 15% - 0.00%
Provision for bad debts on
the grouping basis (ii) 23036788 85% 93390 0.41%
26967152100%933900.35%
31 December 2025
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 94575053 70% - 0.00%
Provision for bad debts on
the grouping basis (ii) 40475184 30% 143653 0.35%
135050237100%1436530.11%
141JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 Book for bad Provision for
balance bad debts balance debts bad debts
31 December 2025 40475184 143653 94575053 - 143653
Decrease in the
current period (17438396) - (90644689) - -
Bad debt provision
decreased in the
current period - (50263) - - (50263)
30 June 2026 23036788 93390 3930364 - 93390
As at 30 June 2026 and 31 December 2025 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 2026 and 31 December 2025 the Company’s other receivables with provision
for bad debts on the individual basis were analysed below:
30 June 2026 31 December 2025
Provision Provision
Book 12-month for bad Book 12-month for bad
Stage 1 balance ECL rates debts balance ECL rates debts
Receivables from
JMCH 3930364 - - 14767717 - -
Receivables from
land acquisition and
storage - - - 79807336 - -
3930364-94575053-
The Company assessed the receivables from refund of social insurance individually and based
on the judgment of credit risk the receivables were not subject to significant credit risk and were
not overdue and impaired.
142JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 2026 and 31 December 2025 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 2026 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:
Import working capital 5000000 0.34% 1678 2 ECL
Gas and electricity bills 2111988 0.34% 708 9 ECL
Others 15924800 0.44% 6951 9 ECL
2303678893390
As at 31 December 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 21112025 0.30% 63082 ECL
Import working capital 5000000 0.30% 14940 ECL
Others 14363159 0.46% 65631 ECL
40475184143653
(c) The reversed provision for bad debts in the current period amounted to RMB50263.(d) There was no provision for bad debts written off during the period.
143JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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 2026 the top five other receivables ranked by remaining balances
were analysed as follows:
% of Provision
total for bad
Nature Balance Aging balance debts
Import working
Company 1 capital etc. 6101420 within 1 year 23% 20479
Accounts receivabl
Company 2 e from subsidiaries 3930364 within 1 year 15% -
Company 3 Gas bills 2111988 within 1 year 8% 7089
Company 4 Office expenses 2106895 within 1 year 8% 7072
Company 5 Repair fees 1523041 within 1 year 6% 5112
1577370860%39752
(3) Long-term equity investments
30 June 2026 31 December 2025
Subsidiaries (a) 3646975223 3646975223
Associates (b) 170154158 198792911
38171293813845768134
Less: Provision for impairment of long-term
equity investments for subsidiaries (3191472283) (3191472283 )
Provision for impairment of long-term
equity investments for associates - -
(3191472283)(3191472283)
625657098654295851
144JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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
Cash
Ending balance dividends
31 December Additional of provision for declared this
2025 investments 30 June 2026 impairment period 30 June 2026
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) 890031730 - 890031730 (890031730) - -
3646975223-3646975223(3191472283)-455502940
(b) Associates
Movements for the current period Impairment provision
Share of net
Decrease in profit/(loss) Cash Voting 31
31 December the current under equity dividends Provision for Shareholding rights 30 June December
2025 period method declared impairment 30 June 2026 (%) (%) 2026 2025
The Power
Company 172167512 - (201335 4) - - 17015415 8 40.0 0% 40.00% - -
Hanon
Systems 26625399 (26625399 ) - - - - - - - -
Total 198792911 (26625399 ) (201335 4) - - 17015415 8 - -
145JIANGLING MOTORS CORPORATION LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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
(a) Revenue and cost of sales
The six months ended 30 June
20262025
revenue cost revenue cost
Main
operations 17950761593 16162026280 17063223739 15018996560
Other
operations 620145120 288708588 342945766 220930116
18570906713164507348681740616950515239926676
(b) The breakdown of revenue
The six months ended 30 June 2026
Automobile
Materials and maintenance
Automobiles parts services etc. Total
Recognised at a time point 17150831558 930881727 - 18081713285
Recognised within a certain period - - 489193428 489193428
1715083155893088172748919342818570906713
The six months ended 30 June 2025
Automobile
Materials and maintenance
Automobiles parts services etc. Total
Recognised at a time point 16296703916 986292477 - 17282996393
Recognised within a certain period - - 123173112 123173112
1629670391698629247712317311217406169505
As of 30 June 2026 the revenue corresponding to the performance obligations that the
company has signed but has not yet fulfilled or completed is RMB1142836762 and is
expected to recognize it as operating income in 2027.
(5) Investment income
The six months ended 30 June
20262025
Investment (losses)/gain from forward
exchange se ttlement (158139) 10631603
Losses on discount of financing receivables
eligible for derecognition (1392180) (1422995)
Investment gains from disposal of long-term
equity investment 2384900 -
Losses on long-term equity investments under
equity method (2013354) (9803325)
(1178773)(594717)
There is no significant restriction on the remittance of investment income to the Company.
146JIANGLING MOTORS CORPORATION LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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
20262025
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 164601774 202242 182
Gains or losses on disposal of non-current assets 4574194 18414 462
Fund occupation fees received from non-financial
institutions 1978923 1240 008
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 989383 3713 253
Net amount of other non-operating income and
expenses (1613481) 1448 653
Reversal of impairment charges for receivables
that are tested separately for impairment 1558669 -
One-off expenses incurred due to discontinuation
of related business activities - (865 73)
172089462226971985
Effect of income tax (27724936) (336447 88)
Effect of gains or losses on minority interests (net
of tax) (3675000) (5153 56)
140689526192811841
(1) Basis for preparation of statement of non-recurring profit or loss for 2025
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.
147JIANGLING MOTORS CORPORATION LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2026
(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
202620252026202520262025
Net profit attributable to
ordinary shareholders
of the Company 6.12% 6.30% 0.86 0.85 0.86 0.85
Net profit attributable to
ordinary shareholders
of the Company net of
non-recurring profit or
loss 4.96% 4.64% 0.70 0.63 0.70 0.63
148
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