Jiangling Motors Corporation Ltd.

2025 Annual Report

1Chapter I Important Notes Contents and Abbreviations

Important Note

The Board of Directors and its members and the senior executives are jointly and

severally liable for the truthfulness accuracy and completeness of the information

disclosed in the report and confirm that the information disclosed herein does not

contain any false statement misrepresentation or major omission.Chairman Qiu Tiangao CFO Li Weihua and Chief of Finance Department Hu

Hanfeng confirm that the Financial Statements in this Annual Report are truthful

and complete.All Directors were present at the Board meeting to review this Annual Report.Future plans development strategies and other forward-looking statements in this

report do not constitute a substantial commitment of the Company to investors.Investors are advised to pay attention to investment risks.The Company's possible risks and countermeasures are described in Section 3 of

this report "Management Discussion and Analysis". Please investors pay attention

to the relevant content.The Annual Report is prepared in Chinese and English. In case of discrepancy

the Chinese version will prevail.The year 2025 profit distribution proposal approved by the Board of Directors is as

follows:

A cash dividend of RMB 5.5581 (including tax) will be distributed for every 10

shares held based on the total share capital of 854581922 shares and there is

no stock dividend. The Board decided not to convert capital reserve to share

capital this time.

2Contents

Chapter I Important Notes Contents and Abbreviatio... 2

Chapter II Brief Introduction and Operating Highli... 5

Chapter III Management Discussion and Analysis ..... 10

Chapter IV Corporate Governance Structure Environment and Social ..... 33

Chapter V Major events ............................. 55

Chapter VI Share Capital Changes & Shareholders .... 60

Chapter VII Bond related Information ............... 66

Chapter VIII Financial Statements .................. 67

3Catalogue on Documents for Reference

1. Originals of 2025 financial statements signed by legal representative Chief

Financial Officer and Chief of Finance Department.

2. Originals of the Independent Auditor’s Reports signed by independent

accountants and stamped by the accounting firm.

3. Originals of all the documents and public announcements disclosed in

newspapers designated by CSRC in 2025.

4. The Annual Report in 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.JMCH JMC Heavy Duty Vehicle Co. Ltd.EVP Executive Vice President

CFO Chief Financial Officer

VP Vice President

4Chapter II Brief Introduction and Operating Highlight

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

No. 2111 Yingbin Middle Avenue Nanchang County

Registered Address

Nanchang City Jiangxi Province P.R.C

Postal Code of

330200

Registered Address

Due to the relocation of JMC’s Qingyunpu site the original

registered address "No. 509 Northern Yingbin Avenue

Changes of Registered

Nanchang City Jiangxi Province" was changed to "No. 2111

Address

Yingbin Middle Avenue Nanchang County Nanchang City

Jiangxi Province" in October 2021.No. 2111 Yingbin Middle Avenue Nanchang County

Headquarters Address

Nanchang City Jiangxi Province P.R.C

Postal Code of

330200

Headquarters Address

Website http://www.jmc.com.cn

E-mail relations@jmc.com.cn

2. Contact Person and Method

Board Secretary Securities Affairs Representative

Name Xu Lanfeng Quan Shi

No. 2111 Yingbin Middle Avenue No. 2111 Yingbin Middle Avenue

Address Nanchang County Nanchang City Nanchang County Nanchang City

Jiangxi Province P.R.C Jiangxi Province 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. Information Disclosure and Place for Achieving Annual Report

Stock Exchange Website for

http://www.szse.cn

Publication of JMC’s Annual Report

5China Securities Securities Times Hong Kong

Newspapers and Website for

Commercial Daily cninfo

Publication of JMC’s Annual Report

(http://www.cninfo.com.cn)

Securities Department Jiangling Motors

Place for Achieving Annual Report

Corporation Ltd.

4. Changes of Registration

Unified social credit code 913600006124469438

Changes in the Main

No change.Business since the Listing

On December 1 1993 JMC A shares were listed on

Shenzhen Stock Exchange while JMCG the founder-

member was the controlling shareholder of the Company. On

September 29 1995 and November 12 1998 JMC issued

additional 344 million B shares totally while after the

additional B share issuance JMCG and Ford were the

controlling shareholders of the Company. On December 8

2005 the 354.176 million JMC shares held by JMCG the

former controlling shareholder were transferred to Jiangling

Changes of Controlling

Motor Holdings Co. Ltd. After the transference Jiangling

Shareholders

Motor Holdings Co. Ltd. and Ford were the controlling

shareholders of the Company.In 2019 Jiangling Motor Holdings Co. Ltd. the former

controlling shareholder was divided and separated into

Jangling Motor Holdings Co. Ltd. and Nanchang Jiangling

Investment Co. Ltd. and transferred the 354.176 million JMC

shares it held to Nanchang Jiangling Investment Co.Ltd. Presently Nanchang Jiangling Investment Co. Ltd. and

Ford are the controlling shareholders of the Company.

5. Other Information

Accounting Firm Appointed by JMC for Audit

Name Ernst & Young Hua Ming LLP

Room 01-12 17th Floor Ernst & Young Building Oriental Plaza

Headquarters Address

No. 1 East Chang'an Street Dongcheng District Beijing

Names of Signed

Qiao Chun Yuan Yong

Accountants

The recommendation agency engaged by the Company executing the persistent

supervision responsibilities in the reporting period

□Applicable □Not Applicable

The financial consultant engaged by the Company performing the duties of

persistent supervision and guidance in the reporting period

6□Applicable □Not Applicable

6. Main accounting data and financial ratios

Unit: RMB

Change

202520242023

(%)

Revenue 39169909929 38374160748 2.07% 33167325081

Profit Attributable to the

Equity Holders of the 1187465719 1537139024 -22.75% 1475597266

Company

Net Profit Attributable to

Shareholders of Listed

Company After Deducting 740844834 1356329085 -45.38% 995236837

Non-Recurring Profit or

Loss

Net Cash Generated From

24119112902633384217-8.41%4567539866

Operating Activities

Basic Earnings Per Share

1.381.78-22.47%1.71

(RMB)

Diluted Earnings Per

1.381.78-22.47%1.71

Share (RMB)

Weighted Average Return

10.34%14.20%-3.86%15.06%

on Equity Ratio

Change

End of Year 2025 End of Year 2024 End of Year 2023

(%)

Total Assets 33725291097 30839912640 9.36% 29141187886

Shareholders’ Equity

Attributable to the Equity 11700238217 11292579854 3.61% 10350145738

Holders of the Company

The lower of the Company’s net profit before and after deduction of non-recurring

gains and losses in the most recent three fiscal years is negative and the audit

report of the most recent year shows that the Company’s ability to continue

operations is uncertain

□Yes □No

The lower of the audited total profit the audited net profit and the audited net

profit after deducting non-recurring gains and losses is negative

□Yes □No

7. Accounting data difference between China GAAP and IFRS

7I. 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

8. Main accounting data quarterly

Unit: RMB

Q1 Q2 Q3 Q4

Revenue 7967428172 10124958038 9196139182 11881384537

Profit Attributable to

the Equity Holders of 305997821 426730226 16405954 438331718

the Company

Net Profit Attributable

to Shareholders of

Listed Company After

147214143392702063-72929211273857839

Deducting Non-

Recurring Profit or

Loss

Net Cash Generated

From Operating -2297115303 2232617519 266402581 2210006493

Activities

Whether the above mentioned financial indicators or the total number are

significantly different from the financial indicators related to the disclosed quarterly

and half-year reports of the Company

□Yes □No

9. Non-recurring profit and loss items and amounts

□Applicable □Not Applicable

Unit: RMB

202520242023

Profit and loss of non-current assets disposal

(including the charge-off part of the asset impairment 59557455 665549 -7453268

provision)

Government subsidies included in the current profit

464318284184409745565157410

and 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 2982859 22603584 6052713

arising from trading financial assets and trading

financial liabilities as well as the investment income

8obtained from the disposal of trading financial assets

trading financial liabilities and available for sale

financial assets

Capital occupation fee charged for non-financial

2474558476615111289415

enterprises included in the current profit and loss

Return of the impairment provision for receivables

18723955433007

with a separate impairment test

Other non-operating income and expenses except the

1793470-22848676379649

above

Other profit and loss items that meet the definition of

-9707120-2060316-11097866

non-recurring profit and loss

Less: Income tax impact amount 79541777 33377674 89195274

Influence of minority shareholders' equity -2870761 -654760 772350

Total 446620885 180809939 480360429

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 that 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.

9Chapter III Management Discussion and Analysis

1. Company’s Core Business during the Reporting Period

During the reporting period the Company's main business is the production and

sale of commercial vehicles passenger vehicle SUVs and related components.The main products include JMC light truck Pickup light bus Ford-branded light

bus MPV Pickup and other commercial vehicle products and passenger vehicle

SUV products. JMC also produces engines frame axle and components. The

Company takes high quality development as the main line anchoring its strategy

around three core directions: intelligent connectivity new energy and global

expansion focuses on value lean operation and transforms from scale expansion

development to lean value growth.In 2025 JMC continued to increase its technological reserves and investment in

new products intelligent connection network new energy and lightweighting andstrengthened its digital operation capability to realize the transformation of “fouronline” including “products online” “customers online” “processes online” and

“employees online”. Through digital technology the Company improved

operational efficiency optimized business processes and innovated business

models and focused on customer-centered integration of the whole value chain.Driven by innovation we are transforming our marketing approach continuously

optimizing channel structures and layouts to enhance synergistic efficiency.Together with our distributors we are forging a more integrated “united front”

model to accelerate market responsiveness. We are innovating our transport

capacity operations focusing on scenario-based requirements to establish an

intelligent operational framework while strengthening collaborations with logistics

enterprises to expand transport capacity partnerships and gradually formed a

customer-centered commercial vehicle ecosystem to focus on the entire life cycle

of automobiles and provided customers with all-around solutions. JMC actively laid

out the RV business and off-road pickup and modified car market to create unique

products and lead the market trend; at the same time the Company steadily

advanced the scenario-based implementation of intelligent driving technologies to

develop industry-leading autonomous driving solutions. JMC strengthened export

cooperation and synergy seized globalisation opportunities optimised resource

allocation across products channels and after-sales services and continuously

forged new drivers for the Company's development.In 2025 JMC planned the productivity of 320 thousand units and the utilization rate

was 118%.Vehicle manufacturing and operation

□Applicable □Not Applicable

Production and Sales Volume Information

Production Volume (Unit) Sales Volume (Unit)

10YOY YOY

2025 FY 2024 FY change 2025 FY 2024 FY change

(%)(%)

By Products

Light Bus 101228 87542 15.63% 99770 87310 14.27%

Truck 82619 65352 26.42% 83207 61932 34.35%

Pickup 59224 72579 -18.40% 59681 73242 -18.52%

SUV 135267 119368 13.32% 134595 118724 13.37%

Total 378338 344841 9.71% 377253 341208 10.56%

By Region

China 378338 344841 9.71% 377253 341208 10.56%

Reasons for the year-on-year change of more than 30%

□Applicable □Not Applicable

The 34.35% year-on-year increase in Truck sales was mainly due to the increase

in overseas sales.Component Kit System Construction

JMC owns in-house R&D and manufacturing capability for key components with

such important components as engine body parts frame and front axle etc.developed and manufactured independently. For some other key components

JMC keeps strategic cooperation with industry leading suppliers e.g. Bosch

Baosteel Garrett ZF Magna Autoliv and Dicastal. JMC has established deep

cooperation with such leading enterprises as CATL FinDreams Battery Sunwoda

and CALB on new energy development. For smart connectivity JMC conducted

diversified cooperation with such giants as Hengrun Baidu Desay SV Momenta

and ThunderSoft etc. for ecology development. With the vision of achieving

customer success JMC cooperates with suppliers to create a customer-centered

vehicle experience and strives to build a sustainable agile supply system. Through

innovative thinking and digitalization JMC has established a complete supplier

access capability improvement and supplier control mechanism from the

perspectives of technology quality cost delivery and service thus effectively

promoting the competitiveness of the supply system.Production and operation of auto parts during the reporting period

□Applicable □Not Applicable

The Company carries out auto finance business

□Applicable □Not Applicable

The Company carries out new energy vehicle related business

□Applicable □Not Applicable

Production and operation of new energy vehicles and parts

Production Sales Volume Revenue

Product Category Capacity (Unit)

Volume (Unit) (Unit) (RMB)

11New Energy

Commercial 80000 32373 32557 2404457109

Vehicles

New Energy

5000049313249553642498

Passenger Vehicles

130000

Note: all new energy

Total vehicles are collinear 37304 35806 2958099607

with corresponding

fuel vehicles.

2. The industry situation of the Company during the reporting period

During the reporting period of 2025 the automotive industry withstood external

pressures such as trade protectionism and the restructuring of global industrial

chains. It overcame multiple challenges including technological breakthroughs and

industry-wide competition demonstrating formidable resilience and vitality in its

development. This resulted in a dual enhancement of both industrial scale and

development quality. Annual automobile production and sales totalled 34.53 million

units and 34.40 million units respectively representing year-on-year increases of

10.4% and 9.4%. This marks the 17th consecutive year China has maintained its

position as the world's largest automotive market. In 2025 policies supporting new

economic entities and new social organisations were intensified and expanded

ensuring a smooth transition and orderly integration. With enterprises launching

new products in rapid succession and sustained growth in end-user demand

annual automobile production and sales achieved growth exceeding expectations.Among these the passenger vehicle market as a core component of automotive

consumption has demonstrated steady growth effectively driving the overall

expansion of the automotive sector. The commercial vehicle market has shown

signs of recovery and improvement with production and sales returning to levels

exceeding 4 million units. Passenger vehicle production and sales reached 30.27

million units and 30.10 million units respectively representing year-on-year

increases of 10.2% and 9.2%. All major passenger vehicle segments maintained

growth. By 2025 the commercial vehicle market exhibited a dual growth trend in

both domestic demand and exports. Driven by robust policies for new energy and

new business models the penetration rate of new energy commercial vehicles has

surged rapidly. Coupled with sustained export growth China's commercial vehicle

market has achieved a recovery and structural expansion. Throughout the year

commercial vehicle production and sales reached 4.261 million units and 4.296

million units respectively representing year-on-year increases of 12% and 10.9%.Among the principal commercial vehicle categories both production and sales of

bus and truck increased year-on-year compared with the same period last year.Within the main truck segments production and sales of heavy truck and light truck

rose while those of medium truck and micro truck declined. Within the main bus

segments sales of large medium and light bus all grew with light bus recording a

higher growth rate than the others. In 2025 total vehicle exports reached 7.098

12million units representing a year-on-year increase of 21.1%. Of this total

passenger vehicle exports amounted to 6.038 million units rising by 21.9%

commercial vehicle exports reached 1.06 million units rising by 17.2%. By

category exports of conventional fuel vehicles reached 4.483 million units a 2%

year-on-year decrease while new energy vehicle exports amounted to 2.615

million units a 103.7% year-on-year increase. In 2025 production and sales of

new energy vehicles reached 16.626 million units and 16.49 million units

respectively representing year-on-year growth of 29% and 28.2%. New energy

vehicle sales accounted for 47.9% of total new vehicle sales an increase of 7

percent points compared with the same period last year. Among the principal

categories of new energy vehicles production and sales across all types recorded

double-digit growth compared with the previous year.

3. Core Competitiveness Analysis

The Company is a modern Sino-foreign joint venture that integrates automobile

research and development manufacturing and sales. It is a pioneer in the Chinese

auto industry that provides excellent products and solutions for the intelligent

logistics field by relying on the market leadership and advanced technology of light

commercial vehicles. It owns the titles of National High-tech Enterprise National

Innovation Pilot Enterprise National Enterprise Technology Center National

Industrial Design Center National Intellectual Property Demonstration Enterprise

and National Vehicle Export Base. It has been ranking among the top 100 most

valuable automobile brands in the world for many consecutive years. In 2025 JMC

light bus ranked No.1 in the segment Pickup ranked No.2 in the segment and

light truck ranked No.7 in the segment. Jiangling Ford Automobile Technology

(Shanghai) Co. Ltd. achieved sales of 29793 units in 2025 with the Bronco and

Ranger models both securing the top annual market share position in their

respective segments. JMC export sales have made sustained growth with sales

of 160 thousand units a year-on-year increase of 38.4%.The Company has always adhered to a customer-centric approach has been a

full scenario solution provider for light commercial vehicles. The Company

providing customized and scalable integrated solutions based on customer usage

scenarios. JMC light bus has an insight into customers’ needs and the light bus

operation scenarios and has launched high-quality excellent and cost-effective

light bus product portfolios achieving the full coverage of scenarios like freight

and passenger transport. At the same time it also continues to hold the first place

in the market in light passenger conversion scenarios such as traveling camping

services and ambulance. JMC Light Trucks has launched its new E shunda small

light truck (3.5 T) and E shunda small light truck (4.5T) based on in-depth customer

insights significantly expanding the Company's new energy truck application

scenarios. The Company has released a new generation of Shunda products

featuring a new cab and a new Blue Flame engine further enhancing vehicle

comfort and fuel efficiency to better serve urban distribution customers. In 2025

JMC Pickup completed the iteration of its two product series launching the all-new

13Baodian and the all-new Yuhu. The all-new Baodian achieved a revolutionary

upgrade in wealth-creation tool pickups with its exceptional durability outstanding

fuel efficiency superior loading capacity and great convenience. Meanwhile the

all-new Yuhu delivers value enhancements for upgrading users offering excellent

appearance superb drivability and remarkable ease of use. At the same time the

DaDao pickup series introduced a mountain version with a flat-bottom cargo box

further refining product offerings for specific scenarios based on the Off-road

Edition and Extreme cold edition solidifying its brand positioning as "China's

Pickup Expert in All Scenarios." JMC Pickup's three major product series continue

to be refreshed forming a product matrix covering the full price range of the pickup

market while continuously improving coverage of segmented scenarios and

enhancing the customer experience.The Company adheres to the dual-brand strategy of Self-owned and Ford giving

full play to its own advantages while deeply integrating Ford's global system. In

terms of technology research and development with the help of Ford's global

platform the Company has gradually formed the core competitiveness of

independent research and development established an independent research and

development system built an advanced global digital design platform and jointly

develops designs and launches specific new products with Ford. The Company

has been an industry-leading technology center and industrial design center.In terms of brand ecosystem the Ford brand has created a unique "Ford Beyond"lifestyle system covering four key areas: " Z-Horizon Experience Hub” "Z-Horizon

Tribe" "Z-Horizon Accessories for Retrofitting" and "Z-Horizon Service". This

system fosters a lifestyle centered on outdoor leisure exploration off-road

adventures and outdoor fun providing users with a "full-scenario outdoor

experience." It empowers users to navigate diverse life scenarios offering reliable

support and driving enjoyment whether on wilderness expeditions or urban

commutes.In terms of brand channels the Company's commercial vehicle segment currently

has 368 authorized first-tier distributors and over 1200 registered secondary

networks and has established a modern marketing system through the four-in-one

franchise model of sales accessories service and information. At the same time

the Ford Beyond Space has formed a three-center model consisting of brand

centers order centers and maintenance centers.In terms of product launches the first all-terrain camping SUV—the Ford Bronco

Basecamp—made its global debut at the 2025 Chengdu International Auto Show

and officially announced its market launch in Nanchang in December. The Ford

Bronco Basecamp is built on the "Ford Fun Domain" native intelligent new energy

technology architecture representing a perfect integration of Ford's century-long

professional technical heritage with China's leading intelligent new energy vehicle

industry chain. It breaks down scenario boundaries providing a new generation of

users with an ultimate "all-scenario all-weather all-terrain" solution transforming

14vehicles from mere modes of transportation into empowering tools for exciting

outdoor lifestyles. The domestically produced Ford Bronco a pure-blood hardcore

off-road vehicle has maintained the top market share in the mid-size traditional

fuel SUV segment priced above RMB 300000. In March 2025 the Desert Runner

Limited Edition was officially launched elevating the overall positioning of the

Bronco family. Following that the Ford Bronco 1966 Special Edition made its debut

at the Shanghai International Auto Show in April and officially hit the market in

September highlighting the Bronco brand's historical heritage and retro trend

appeal. The Ford Bronco family fully embodies diverse charms ranging from

ultimate performance to ultimate freedom and ultimate style interpreting the off-

road attitude of "Play Unconstrained Go Wild" with strength. Additionally the

Company has established a comprehensive product matrix for Ford Ranger across

three series—XLS XLT Wildtrak and FX4—along with multiple versions to better

meet customer demand for premium passenger-oriented and intelligent features.In terms of manufacturing management the Company has vehicle production

bases such as Xiaolan Plant and Fushan Plant covering stamping welding

painting diesel engines gasoline engines and other advanced manufacturing

technology to create a highly intelligent highly flexible smart manufacturing center

it is a demonstration enterprise for the integration of informatization and

industrialization in Jiangxi Province.In terms of autonomous driving the Company deepening the commercialisation of

L4-level autonomous freight vehicles focusing on the development and operation

of autonomous driving for urban freight scenarios by advancing the full-stack in-

house development of the iDEA architecture and end-to-end intelligent driving

algorithms integrating central computing architecture cockpit-driving integration

and full-scenario intelligent driving technologies the Company promotes the

transformation of its entire commercial vehicle product line into intelligent mobile

terminals.In terms of new energy adhering to the strategic plan of "striving for progress while

maintaining stability" the Company strengthens market development accelerates

the layout of electrified products and makes every effort to increase the production

and sales of new energy vehicles. In the passenger vehicle segment it globally

launched the Ford all-terrain camping SUV—the Bronco Basecamp—providing

users with an "all-scenario all-weather all-terrain" solution. In the commercial

vehicle segment it commenced production of the E-Fushun E-Shunda and

heavy-duty wide-body high-capacity electric light truck models optimizing the new

energy product lineup for commercial vehicles. With larger loading space stronger

hauling capacity and lower usage costs these models effectively address

customer pain points.In terms of export business the all-new second-generation Ford Equator sport

model has been launched featuring both traditional gasoline-powered models and

a new hybrid variant. These models are available in the Middle East Africa Latin

America the Philippines and countries in the Indochina Peninsula. The Equator

15sport is currently popular in many countries (regions) worldwide thanks not only

to its diversified market expansion strategy but also to its exceptional product

quality.

4. Core Business Analysis

I. Summary

During the reporting period in response to intensifying market competition stricter

regulations and rising costs the Company focused on quality enhancement new

product development cost control and efficiency optimisation while implementing

multiple marketing measures to mitigate market risks. In 2025 JMC achieved sales

volume of 377253 units including 99770 light buses 83207 trucks 59681

Pickups and 134595 SUVs with a year-on-year increase of 10.56%. In 2025 the

total production volume was 378338 units including 101228 light buses 82619

trucks 59224 Pickups and 135267 SUVs with a year-on-year increase of 9.71%.In 2025 the operation revenue reached RMB 39170 million up 2.07% year-on-

year. The operation cost was RMB 33852 million up 2.73% year-on-year. The

marketing expense was RMB 9000 million down 15.04% year-on-year. The

administration expense was RMB 1050 million up 11.29% year-on-year. The R&D

cost was RMB 1216 million down 7.5% year-on-year. The financial expense was

RMB -132 million up 13.27% year-on-year.II. Revenue and Cost

(a) Composition of Sales Revenue

Unit: RMB

2025 FY 2024 FY YOY

Proportion Proportion change

Amount Amount

(%)(%)(%)

Revenue 39169909929 100% 38374160748 100% 2.07%

By Industry

Automobile Industry 39169909929 100% 38374160748 100% 2.07%

By Products

Vehicle 35956461939 91.80% 35289807942 91.96% 1.89%

Material and

21109755285.39%25108950636.54%-15.93%

Components

Maintenance technical

11024724622.81%5734577431.50%92.25%

services and other

By Region

China 39169909929 100% 38374160748 100% 2.07%

Sales model

Distribution 37107261155 94.73% 36035440181 93.91% 2.97%

Direct selling 2062648774 5.27% 2338720567 6.09% -11.80%

(b) Reach 10% of Revenue or Profit by Industry Product Region or Sales Model

□Applicable □Not Applicable

16Unit: RMB

YOY YOY gross

YOY Cost

Gross turnover margin

Turnover Cost Change

Margin change change

(%)

(%) (points)

By Industry

Automobile

391699099293385151890713.58%2.07%2.73%-0.55%

Industry

By Products

Vehicle 35956461939 31683911528 11.88% 1.89% 3.38% -1.27%

By Region

China 39169909929 33851518907 13.58% 2.07% 2.73% -0.55%

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

(c) Whether the Company’s Goods Revenue Higher Than Service Revenue

□Yes □No

Industry Item Unit 2025 2024 Change (%)

Sales Volume unit 377253 341208 10.56%

Automobile Production Volume unit 378338 344841 9.71%

Inventory Volume unit 6152 5240 17.40%

Explanation on YOY change of over 30%

□Applicable □Not Applicable

(d) Execution of the Company’s Signed Major Sales Contracts and Major

Purchase Contracts as of the Reporting Period

□Applicable □Not Applicable

(e) Composition of Operating Cost

Product categories

Unit: RMB

Item 2025 FY 2024 FY YOY

Product Proportion Proportion Change

Cost Cost

(%)(%)(%)

17Vehicle Cost 31683911528 93.60% 30646951970 93% 3.38%

Material and

Cost 1472902846 4.35% 1917222493 5.82% -23.18%

Components

Maintenance technical

Cost 694704533 2.05% 387570681 1.18% 79.25%

services and other

(f) Whether the Consolidated Scope was Changed During the Reporting Period

□Yes □No

(g) Major Change or Adjustment on Business Products or Services During the

Reporting Period

□Applicable □Not Applicable

(h) Main Customers and Suppliers

Main Customers

Total sales value to top 5 customers（RMB） 16540498902

Accounted for the proportion of JMC’s total annual turnover 42.22%

Included related party transaction accounted for the

39.04%

proportion of JMC’s total annual turnover

Top 5 Customers

Percentage of

Sales Value

No. Name of the Customer JMC’s Total

(RMB)

Turnover (%)

1 Jiangxi Jiangling Motors Imp. & Exp. Co. Ltd. 14907750775 38.06%

Zhenjiang Suzhong Jiangling Automotive

26554552661.67%

Sales Service Co. Ltd.

3 Ford Global Technologies LLC 384878125 0.98%

4 Suizhou Weihan Automotive Service Co. Ltd. 316915489 0.81%

Shanghai Keda Xuzhou Automotive Sales &

52754992470.70%

Service Co. Ltd.Total 16540498902 42.22%

Other introduction to main customers

□Applicable □Not Applicable

Jiangxi Jiangling Motors Imp. & Exp. Co. Ltd. and Ford Global Technologies LLC

are related parties of the Company.Main Suppliers:

Total purchase value from top 5 suppliers (RMB) 4922723925

Accounted for the proportion of JMC’s total annual purchase

16.24%

amount

Included related party transaction accounted for the proportion of

12.78%

JMC’s total annual purchase amount

Top 5 Suppliers:

18Percentage of

Purchase JMC’s Total

No. Name of the Supplier

Value (RMB) Annual Purchase

Amount (%)

1 Magna PT Powertrain (Jiangxi) Co. Ltd. 1261233176 4.16%

Jiangxi Jiangling Qin Chuan Electrical

210485787133.46%

Co. Ltd.

3 Jiangxi Jiangling Chassis Co. Ltd. 951329470 3.14%

Jiangxi Jiangling Lear Interior System

48377235342.76%

Co. Ltd.Jiangxi Zhonglian Intelligent Logistics

58238590322.72%

Co. Ltd.Total 4922723925 16.24%

Other introduction to main suppliers

□Applicable □Not Applicable

Magna PT Powertrain (Jiangxi) Co. Ltd. Jiangxi Jiangling Chassis Co. Ltd.Jiangxi Jiangling Lear Interior System Co. Ltd. and Jiangxi Zhonglian Intelligent

Logistics Co. Ltd. are related parties of the Company.During the reporting period the Company's trading business revenue accounted

for more than 10% of its total operating revenue.□Applicable □Not Applicable

III. Expense

Unit: RMB

2025 2024 YOY Change

Distribution Expenses 899660536 1058948593 -15.04%

Administrative Expenses 1050129082 943622568 11.29%

Finance Income-net -132096412 -152310137 13.27%

R & D Expenses 1216003539 1314579423 -7.50%

IV. Research & Development

Name of main

Project purpose Project progress Goals to be achieved

R&D project

All-new electric Increase the

Enhance the competitiveness of

platform SUV Product was launched Company's operating

passenger vehicle products

project revenue

All-new electric Enhance the competitiveness of Increase the

It will be launched in the

platform Van Van products in overseas Company's operating

third quarter of 2026.export project markets. revenue

All-new electric Enhance the competitiveness of Increase the

It will be launched in the

platform Bus light bus products in domestic Company's operating

fourth quarter of 2026

project markets. revenue

19Increase the

Dadao Pickup Enhance the competitiveness of It will be launched in the

Company's operating

Facelift domestic pickups first quarter of 2026.revenue

E-Luda Wide-

Enhance the competitiveness of

Body Large Increase the

wide-body large battery capacity Launched at the

Battery Company's operating

light truck products in the beginning of 2026.Capacity revenue

domestic market.Product Project

Increase the

Ford Pickup Enhance the competitiveness of It will be launched in the

Company's operating

Facelift domestic pickups fourth quarter of 2026.revenue

Company R & D personnel

2025 2024 Change(%)

R&D staff (person) 2684 2628 2.13%

R&D staff as % of total employees 23.96% 22.75% 1.21%

Educational structure of R&D personnel

Undergraduate 1846 1850 -0.22%

Master 706 639 10.49%

Age composition of R&D personnel

Under the age of 30 years old 539 586 -8.02%

30 ~ 40 years old 1624 1605 1.18%

R&D Investment

2025 2024 Change(%)

R&D investment (RMB) 1490447935 1699761123 -12.31%

R&D investment as % of revenue 3.81% 4.43% -0.62%

Capitalization of R&D investment 274444396 385181700 -28.75%

Capitalization of R&D investment as % of

18.41%22.66%-4.25%

R&D investment

Causes and impacts of major changes in the composition of R&D personnel

□Applicable □Not Applicable

Reason for the substantial change of R&D investment as % of revenue

□Applicable □Not Applicable

Reason and rationality of the substantial change in the capitalization rate of R &

D investment

□Applicable □Not Applicable

V. Cash Flow Analysis

Unit: RMB

Change

Item 2025 2024

(%)

Cash received from operating activities 41357728740 41944318317 -1.40%

Cash outflows from operating activities 38945817450 39310934100 -0.93%

20Net cash flows generated from operating

24119112902633384217-8.41%

activities

Cash received from investing activities 266597930 1055877570 -74.75%

Cash outflows from investing activities 1944020940 2415222271 -19.51%

Net cash flows used in investing

-1677423010-135934470123.40%

activities

Cash received from financing activities 5631691686 3078140000 82.96%

Cash outflows from financing activities 5350201775 3623522122 47.65%

Net cash flows generated from/(used in)

281489911-545382122151.61%

financing activities

Net increase in cash and cash

101597819172865739439.43%

equivalents

Explanation on the major factors regarding major change of related data

□Applicable □Not Applicable

The change in net cash flows generated from/(used in) financing activities is mainly

due to the cash capital increase received by subsidiaries from minority

shareholders this year.The change in the net increase in cash and cash equivalents is primarily attributed

to the increase in net cash flows from financing activities.Explanation on significant difference between net cash generated from operating

activities and net profit during the reporting period.□Applicable □Not Applicable

5. Non- core business analysis

□Applicable □Not Applicable

6. Analysis of Assets and Liabilities

I. Major changes

Unit: RMB

YOY

End of 2025 Beginning of 2025

Asset item Proportion

change

Amount Proportion Amount Proportion (Points)

Cash and cash

1358254034640.27%1254629589040.68%-0.41%

equivalents

Accounts

614140576718.21%418100823413.56%4.65%

receivables

Inventories 2011925708 5.97% 2054517242 6.66% -0.69%

21Long-term equity

2036419210.60%2192980310.71%-0.11%

investments

Fixed assets 5789423822 17.17% 5749474005 18.64% -1.47%

Construction in

5076148731.51%6619117802.15%-0.64%

progress

Right-of-use

1202433070.36%1584856880.51%-0.15%

assets

Short-term

19500000005.78%15000000004.86%0.92%

borrowings

Contract

5458647541.62%4677042911.52%0.10%

liabilities

Long-term

4602760%9414530%0%

borrowings

Lease liabilities 44860116 0.13% 93752634 0.30% -0.17%

Foreign assets account for a relatively high proportion

□Applicable □Not Applicable

II. The fair value of the assets and liabilities.Unit: RMB

1. Financial assets 2.

Subtotal of

financial held for trading Derivative Financing Financial

Item financial Subtotal

assets (excluding derivative financial receivables liabilities

assets

financial assets) assets

Beginning of the

period 12612380 12612380 302065502 314677882 0

Loss/profit in fair -

value in the period 1902466 12612380 -10709914 -10709914

Cumulative

changes in fair

value recorded

into equity

Impairment in the

period

Purchase in the

period 855000000 855000000 9778144252 10633144252

Sell in the period 55000000 55000000 9874358163 9929358163

Other changes

End of the period 801902466 801902466 205851591 1007754057 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

III. Restriction on Assets Rights as of the End of the Reporting Period

Units: RMB

Book value at the

Items Cause for restriction

end of the period

22frozen funds for

Cash and cash equivalents 27137724

litigation.

7. 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 financial assets 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 470390 470390

Amount at the beginning of the year 470390 470390

Gains and losses on fair value changes during the

-9310-9310

period

Cumulative fair value changes recognized in equity 820 820

Amount acquired during the reporting period 130980 130980

Amount sold during the reporting period 485520 485520

Amount at the end of the year 115850 115850

Proportion of the investment amount at the end of

the period to the Company's net assets at the end 0.99% 0.99%

of the reporting period

Statement on whether there were

significant changes of the

No.accounting policies and specific

principles of accounting applied

23to hedging activities during the

reporting period as well as

compared with the previous

reporting period

Explanation of actual gains and The actual trading profit during the reporting

losses during the reporting period period was RMB 10.13 million.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

date resulting in insufficient funds available for

use at the time of delivery which triggers the risk

of fund liquidity and leads to failure to deliver as

Risk analysis and description of

scheduled;

control measures for derivative

3. Credit risk: it may be due to inaccurate forecast

positions during the reporting

the delivery date signed by the forward is not

period (including but not limited

consistent with the actual delivery period resulting

to market risk liquidity risk credit

in the risk of delayed delivery caused by the

risk operational risk legal risk

forward foreign exchange transactions cannot be

etc.)

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.Risk 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

24operational 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 underlying

reporting period the gain or loss on fair value

assumptions and parameters

changes of foreign exchange forward contracts

used.amounted to RMB -9.31 million.Litigation status No.Date of disclosure of the Board

announcement on derivative March 9 2025

investment approval

(2) Derivative investments for speculative purposes during the reporting period

□Applicable □Not Applicable

25During the reporting period the Company did not engage in any derivative

investments for speculative purposes.

8. Sales of Major Assets and Equity

I. Sale of Major Assets

□Applicable □Not Applicable

II. Sales of Major Equity

□Applicable □Not Applicable

9. Analysis of major shareholding companies

□Applicable □Not Applicable

Main Subsidiaries and the Joint-Stock Companies whose operating results

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 car

technology research rental and other

Production and sales

and experimental related services.Main Sales of vehicles of automobiles

development sales of

business and service parts. engines and other

vehicles new energy

automotive parts

vehicles auto parts

etc.Registered

50000.001323793.20267800010000.00

capital

Assets 6556819.10 340728.90 445678.80 1225560.20

Net assets 176889.70 306516.80 -628979.20 -262724.60

Turnover 20062985.90 2098.60 2389854.80 319489.10

Operating

-102620.00-29816.10-58075.10-188862.40

profit

Net profit 24100.00 -29244.90 -751210.20 -188053.90

Acquisition and disposal of the subsidiaries

□Applicable □Not Applicable

Description of the main holding and participating companies

The changes in various data of Jiangling Ford Automotive Technology (Shanghai)

Co. Ltd. are mainly due to the impact of the business adjustments of Jiangling

Ford Automotive Technology (Shanghai) Co. Ltd.

2610. Structured Entities Controlled by JMC

□Applicable □Not Applicable

11. Outlook

I Industry Development

Driven by the sustained vitality of macroeconomic policies the steady emergence

of the "Two New" policy effects and the continuous expansion of overseas market

capacity China's automotive market is expected to maintain a stable growth

trajectory in 2026. Total sales are projected to reach 34.75 million vehicles

representing a year-on-year increase of 1.0%. Among these passenger vehicle

sales are forecasted to reach 30.25 million units up 0.5% year-on-year while

commercial vehicle sales are expected to hit 4.5 million units reflecting a year-on-

year growth of 4.7%. New energy vehicles will continue to experience rapid growth

with annual sales anticipated to reach 19 million units achieving a year-on-year

increase of 15.2%. Regarding automotive exports growth expectations have

moderated due to uncertainties in the external environment with sales projected

to reach 7.4 million units in 2026 representing a year-on-year growth of 4.3%.II Company Strategy

Guided by the development vision of "Connecting the World Leading with

Intelligent Mobility" the Company will adhere to the theme of high-quality

development anchor on the three key directions of intelligent connectivity new

energy and globalization and continuously enhance core competitiveness. This

will drive comprehensive improvements in operational quality product mix and

development momentum. In the commercial vehicle segment the Company will

focus on specialized scenarios such as urban logistics to accelerate the launch

and upgrade of core products continuously consolidate competitive advantages in

market segments and steadily enhance customer value. In the passenger vehicle

segment the Company will target specific demands such as off-road driving to

introduce differentiated products and deliver exceptional customer experiences. At

the same time the Company will keep pace with trends in the automotive industry

by accelerating the transition to new energy increasing investment in research and

development and advancing technological and product innovation. In terms of

overseas market expansion the Company will further refine its local operations

and management capabilities continuously improve its international marketing

service system and brand image consolidate and expand export volumes in key

countries and regions and cultivate export business as a new growth driver. The

Company will comprehensively deploy technologies related to the "New Four"

trends continuously strengthen its presence in core areas such as new energy

vehicles intelligent connected vehicles and autonomous driving and build a

future-oriented globally competitive business ecosystem through integrated and

synergistic development. Additionally the Company will persistently advance its

digital systems leveraging data mining and demand analysis to continuously align

product design manufacturing delivery and after-sales service with user needs

27thereby steadily improving operational efficiency and digital competitive

advantages.III Business Plan

In 2025 the Company achieved sales of 377 thousand vehicles and operating

revenue of RMB 39.17 billion. Based on the actual operating performance in 2025

and a comprehensive analysis of domestic and international economic conditions

the automotive industry raw material markets and national policies in 2026 the

Company has set its 2026 business targets: sales of 430 thousand vehicles and

operating revenue of RMB 42 billion.The Company will adhere to strategic leadership strengthen the implementation

of its strategy and continue to focus on making breakthroughs in three core

directions: intelligence new energy and global expansion. At the same time it will

continuously innovate marketing models deepen private domain marketing drive

brand upgrades and channel renovations enhance customer loyalty through high-

quality products and services and steadily increase product sales. The Company

will persistently advance its product research and development capabilities

particularly in achieving technological breakthroughs in key core areas such as

new energy intelligence and software development. It will uphold a quality-first

strategy promote the high-quality and efficient launch of new products

comprehensively enhance cost efficiency and reduce costs continuously optimize

its cost structure further improve the Company's operational level and achieve

high-quality development. In 2026 the Company will focus on the following areas:

(1) Accelerating the development of intelligent capabilities and the enhancement

of R&D capabilities. By achieving breakthroughs in platform-based technologies

and improving in-house R&D capabilities the Company will build a new-generation

intelligent architecture platform for vehicles covering multiple powertrain routes

thereby enhancing the versatility and scalability of its technologies. Focusing on

central computing architecture cockpit-driving integration and full-scenario

intelligent driving the Company will tackle key areas such as service-oriented

architecture full-stack in-house OTA development and the application of large AI

models. It will implement the core objectives of "high scalability high commonality

high safety and high cost-performance ratio" to accelerate the development of its

intelligent connected vehicle technologies. Guided by market demand the

Company will uphold a quality-first strategy continuously increase investment in

product R&D and focus on enhancing its reserve of R&D capabilities. It will

steadily advance product development iteration and upgrades launching

precisely customized and differentiated products for different usage scenarios to

further enrich its product portfolio. By delivering high-performance high-quality

products to meet market demand the Company will enhance the all-around

competitiveness of its products.

(2) Promoting the accelerated development of new energy vehicles. The Company

will pursue key breakthroughs in the new energy sector accelerating the launch of

28new energy commercial vehicle models featuring larger battery capacities and

extended range for specific market segments such as logistics and passenger

transport. By integrating key technologies and coordinating operations across

multiple business formats the Company aims to achieve leapfrog growth in its new

energy business. In its new energy transport capacity operations the Company

will deeply cultivate the urban delivery sector while simultaneously laying out

related businesses such as used vehicles battery-swapping light trucks and

unmanned vehicles. This will solidify an integrated transport capacity service

ecosystem. At the same time the Company will strengthen asset risk control to

promote the sustained and healthy development of the business.

(3) Further expanding overseas business. The Company will adhere to the "dual-

brand + dual-channel" export strategy enrich its product portfolio and

continuously enhance the competitiveness of its overseas products. At the same

time the Company will conduct in-depth research on overseas markets actively

explore new markets strengthen the promotion of new models and the

development of localized overseas operational capabilities improve the

fundamental overseas brand system enhance overseas brand management and

elevate the overseas brand image. Through initiatives such as pilot customer

service centers promoting the Customer Satisfaction Index (CSI) signing off on

service channels and empowering general agents the Company will promote its

service brand continuously improve its overseas market service levels and

expand its export scale.

(4) Deepening marketing innovation and transformation. The Company will adhere

to a customer-centric approach focus on market demand and deeply cultivate

specific segments. JMC will concentrate on key markets and high-potential regions

driving channel deepening and reform through standardized measures such as

rapid response mechanisms dedicated teams and the development of a

secondary network. Through the refined and systematic operation of

communication matrices and innovative marketing initiatives the Company will

continuously expand its brand influence deepen private domain marketing and

enhance customer loyalty. The Company will fully explore opportunities in the high-

end hardcore off-road vehicle market formulate a portfolio-based product mix

marketing strategy fully leverage the combat effectiveness of newly added

channel resources and continue to promote an exclusive owner ecosystem to

build sustained momentum for sales growth.

(5) Comprehensively advancing digital transformation and upgrading the

management structure. The Company will leverage the value of data to empower

the entire business chain promoting a comprehensive transformation towards

digital intelligence in areas such as production and R&D and advancing the

construction of an enterprise digital intelligence AI online platform. Through cost

control across the entire chain and the activation of organizational talent JMC will

build a solid foundation for long-term development. Efforts will be focused on

driving cost reduction and efficiency enhancement across all areas including sales

29procurement manufacturing R&D and management deepening the awareness

of cost efficiency among all employees further activating organizational

momentum and improving operational efficiency.IV Potential Risks and Solutions

The global economic recovery in 2026 is expected to be fraught with challenges

and uncertainties exacerbated by geopolitical tensions and shifts in trade policies

leading to increasingly intense and complex international competition. The Central

Economic Work Conference has clearly emphasized the overarching principle of

"pursuing progress while ensuring stability." The fundamental trend of the domestic

economy's long-term positive growth remains unchanged. However under the

dual pressures of a strained macroeconomic environment and the reduction of new

energy vehicle subsidies China's automotive market has fully entered a new cycle

characterized by "stock competition" and "structural divergence." The continuous

upgrading of new energy product structures and the intensifying industry

competition pose significant 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 Shifts in Demand

Challenges and Risks: in 2026 the global economic landscape will continue to

undergo adjustments with geopolitical conflicts introducing significant uncertainty.Domestically although incremental policies such as expanding domestic demand

promoting consumption strengthening industries and advancing reforms are

being continuously implemented the rising penetration rate of new energy vehicles

the accelerated development of intelligence and digitalization and the further

increase in market concentration are intensifying industry competition. These

factors pose considerable challenges to the Company's operations.Countermeasures: the Company will adhere to a customer-centric approach base

its strategies on evolving customer demands and market conditions and

steadfastly accelerate its strategic shift toward new energy vehicles. JMC will

speed up the transformation and upgrading of intelligence and digitalization

continuously explore new business growth areas and seize opportunities in the

rapidly developing industry. At the same time the Company will strengthen

innovation in marketing models persist in deepening private domain marketing

drive brand upgrading deepen channel reforms and market penetration and

continuously enhance the competitiveness of its products and services by

maintaining ongoing insights into market and customer needs.

(2) Industry Transformation and Technological Revolution

Challenges and Risks: the accelerated iteration of new energy and intelligent

connected vehicle technologies in the automotive industry along with further

standardization of compliance requirements such as power consumption limits

battery safety and intelligent driving regulations has raised the industry's

technological entry barriers. This places higher demands on the Company's R&D

capabilities and management standards.

30Countermeasures: The Company will focus on key technologies in the new four

modernizations areas (electrification intelligence connectivity and sharing) with

a particular emphasis on breakthroughs in core technologies such as new energy

powertrains intelligent connectivity and new platforms. JMC will enhance its

hardware capabilities for product and technology R&D build a talent team capable

of independent core technology development and continuously increase R&D

investment especially in key core technology areas. The Company will further

deepen its digital transformation strengthen collaboration with advanced domestic

AI large-model enterprises universities and research institutions and accelerate

the application of AI technology in practical business scenarios. These efforts aim

to expedite the Company's development in electrification intelligence sharing and

connectivity.

(3) Cost Competitiveness and Profitability

Challenges and Risks: amidst intensifying industry competition and a shift in

customer demand towards low costs and high cost-performance ratios China's

automotive industry as a whole is caught in a predicament of increasing revenue

without profit growth. In 2025 the industry's average profit margin hit a new low

and the competitive landscape is expected to further intensify in 2026.Concurrently factors such as persistently rising raw material market prices

shortages and sharp price increases in chip supply and international trade

disputes among other adverse supply chain factors are further squeezing profit

margins. This puts pressure on the Company's product cost competitiveness and

profitability.Countermeasures: the Company will focus on continuously promoting cost

reduction and efficiency enhancement deepening marketing innovation and

transformation and increasing product sales and service revenue. JMC will

implement a company-wide special initiative for cost reduction promoting the

optimized allocation of resources across all areas including production

manufacturing product R&D procurement costs sales logistics and

management. The goal is to improve the effectiveness of resource investment and

operational management efficiency. Through these concrete actions the

Company aims to enhance its overall cost competitiveness and profitability and

generate ample cash flow to support its high-quality development.

12. External Research Communication and Media Interview to the Company

□Applicable □Not Applicable

Date Communication Type of Information Discussed

Method Object and Materials offered

April 17 Online Individual JMC Operating

2025 communication investor highlights

on the internet

platform

May 21 Online Individual JMC Operating

2025 communication investor highlights

31on the internet

platform

13. 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

14. Implementation of the action program "Double Enhancement of Quality and

Return"

Whether the Company has disclosed the action plan of "Double Enhancement of

Quality and Return".□Yes □No

32Chapter IV Corporate Governance Structure Environment and

Social

1. Status of the Corporate Governance in JMC

During the reporting period the Company strictly abided by the Company Law the

Securities Law the Code of Corporate Governance for Listed Companies in China

the Rules Governing Listing of Stock on Shenzhen Stock Exchange as well as

relevant laws and regulations to carry out corporate governance activities and

continued to improve its corporate governance.Whether there are significant differences between the actual situation of corporate

governance in the company and the laws administrative regulations and those of

regulations on corporate governance of listed companies promulgated by CSRC

□Yes □No

There is no significant difference between the actual situation of corporate

governance in JMC and the laws administrative regulations and those of

regulations on corporate governance of listed companies promulgated by CSRC.

2. Separation between JMC and the Controlling Shareholders and actual controller

in respect of Personnel Assets and Finance and Independence concerning

Organization and Business:

(1) With respect to personnel matters the positions of chairman and president are

held by different individuals; JMC’s senior management do not hold positions other

than director positions with its controlling shareholders; JMC senior management

personnel are paid by JMC; labor personnel matters and compensation

management of JMC are completely independent.

(2) With respect to assets JMC assets are complete. The assets utilized by JMC

including production system supporting production system and peripheral facilities

and non-patent technology are owned and/or controlled by JMC.

(3) With respect to finance JMC has an independent finance department and

independent accounting system and has a uniform and independent accounting

system and financial control system for its branches and subsidiaries. JMC has its

own bank accounts and there are no bank accounts jointly owned by JMC and its

controlling shareholders. JMC pays taxes independently in accordance with

relevant laws.

(4) With respect to organization JMC’s organization is independent complete and

scientifically established with a sound and efficient operating mechanism. The

establishment and the operation of JMC’s corporate governance are strictly carried

out per the Articles of Association of JMC. Production and administrative

management are independent from the controlling shareholders. JMC has

established an organization structure that meets the need for ongoing development.

(5) With respect to business JMC has independent purchasing production and

sales systems. The purchasing production and sales of main materials and

products are carried out through its own purchasing production & sales functions.JMC is independent from the controlling shareholders in respect to its business and

has independent and complete business and self-sufficient operating capability.

333. Horizontal Competition

□Applicable □Not Applicable

4.Directors and senior managers

(1) Basic information

Share

Shares at Shares

Change

Term of the Stock restricted at the

Name Gender Age Position in the

Office period- options stock period-

reporting

beginning end

period

2016.04.07-

Qiu Tiangao Male 59 Chairman 0 0 0 0 0

2026.06.15

Shengpo 2022.11.24-

Male 59 Vice Chairman 0 0 0 0 0

Wu 2026.06.15

Ryan 2021.10.18-

Male 52 Director 0 0 0 0 0

Anderson 2026.06.15

Yuan 2021.10.18-

Male 57 Director 0 0 0 0 0

Mingxue 2026.06.15

2021.06.25-

Director

Xiong 2026.06.15

Female 61 1200 0 0 0 1200

Chunying 2021.05.01-

President

2026.06.15

2024.04.11-

Director

Zhong 2026.06.15

Female 49 0 0 0 0 0

Junhua 2024.03.26-

EVP

2026.06.15

Independent 2021.10.18-

Yu Zhuoping Male 65 0 0 0 0 0

Director 2026.06.15

Chen Independent 2020.06.19-

Male 46 0 0 0 0 0

Jiangfeng Director 2026.06.15

Independent 2020.06.19-

Wang Yue Female 47 0 0 0 0 0

Director 2026.06.15

Independent 2025.12.30-

Chen Ping Male 60 0 0 0 0 0

Director 2026.06.15

Employee

Liu 2025.12.30-

Male 58 Representative 0 0 0 0 0

Niansheng 2026.06.15

Director

Ding 2022.06.01-

Male 53 EVP 0 0 0 0 0

Wenmin 2026.06.15

2025.11.01-

Li Weihua Female 48 CFO 0 0 0 0 0

2026.06.15

Eric 2021.02.01-

Male 61 VP 0 0 0 0 0

Hermann 2026.06.15

2017.02.01-

Wu Xiaojun Male 51 VP 0 0 0 0 0

2026.06.15

2021.04.01-

VP

2026.06.15

Xu Lanfeng Female 56 0 0 0 0 0

Board 2020.12.01-

Secretary 2026.06.15

2021.10.01-

Wu Jiehong Female 49 VP 0 0 0 0 0

2026.06.15

2022.08.01-

Zeng Fafa Male 47 VP 0 0 0 0 0

2026.06.15

2022.08.01-

Sam lo Male 46 VP 0 0 0 0 0

2026.06.15

342025.01.01-

Chen Lei Male 46 VP 0 0 0 0 0

2026.06.15

2021.10.01-

Joey Zhu Male 43 Ex-CFO 0 0 0 0 0

2025.10.30

Anderson 2022.11.25-

Male 53 Ex-VP 0 0 0 0 0

Liu 2025.10.30

Total — — - — 1200 0 0 0 1200

Whether there are any outgoing Directors and Supervisors and the dismissal of

senior management personnel during the reporting period

□Yes □No

Please refer to " Changes of Directors and Senior Management"

Changes of Directors and Senior Management

□Applicable □Not Applicable

Name Position Status Date Reason

Independent

Chen Ping Elected 2025.12.30 Work need

Director

Employee

Liu Niansheng Representative Elected 2025.12.30 Work need

Director

Chen Lei VP Employment 2025.01.01 Appointment due to work need.Li Weihua CFO Employment 2025.11.01 Appointment due to work need.Joey Zhu Ex-CFO Dismissal 2025.10.31 Work rotation.Anderson Liu Ex-VP Dismissal 2025.10.31 Work rotation.

(2). Employment

The current Directors and Senior Executives’ professional background main

working experience and main responsibilities in the Company:

Directors:

Mr. Qiu Tiangao born in 1966 holds a Bachelor Degree in Mechanical

Manufacturing and a Master Degree in Industrial Engineering from Huazhong

University of Science and Technology and is Chairman of JMCG Chairman of

Nanchange Jiangling Investment Co. Ltd. Chairman of JMC Chairman of Jiangxi

ISUZU Co. Ltd. and Chairman of JMCG New Energy Vehicle Co. Ltd. Mr. Qiu

Tiangao held various positions including General Manager Chairman of Nanchang

Gear Co. Ltd. Chairman of Jiangxi JMCG Gear Co. Ltd. Vice President of

Jiangling Motor Holdings Co. Ltd. and Director & General Manager of JMCG.Mr. Shengpo Wu born in 1966 holds a Bachelor’s Degree in Thermal Energy

Engineering from Tsinghua University in Beijing and Master’s Degrees in

Mechanical Engineering and Information Management respectively from the

University of Nebraska-Lincoln and the Keller Graduate School of Management of

DeVry University and is a Group Vice President of Ford President and Chief

Executive Officer of Ford China and International Markets Group Chairman and

President & Chief Executive Officer of Ford Motor (China) Ltd. Vice Chairman of

JMC and Vice Chairman of Changan Ford Automobile Co. Ltd. Mr. Shengpo Wu

held various positions including Vice President and Regional General Manager for

Honeywell Process Solutions in Greater China President and CEO of Osram’s

35Asia-Pacific business President Asia Pacific and a member of the Global

Executive Committee for Whirlpool Corporation.Mr. Ryan Anderson born in 1973 holds a Bachelor’s Degree in Economics from

University of Chicago and a Master’s Degree in Business Administration from

University of Michigan - Ann Arbor and is Director and CFO of Ford Motor (China)

Ltd. a Director of JMC a Director of Changan Ford Automobile Co. Ltd. a Director

of Fuqi Trading (Shanghai) Ltd. Chairman of Ford Motor Sales Service (Shanghai)

Co. Ltd. and a Director of Ford Model e Technology (Nanjing) Co. Ltd. Mr. Ryan

Anderson has held various positions including Treasurer of Ford Europe Product

Development Controller Marketing & Sales Controller of Ford Asia Pacific Director

of Corporate Financial Planning and Analysis for Ford Motor Company.Mr. Yuan Mingxue born in 1968 holds a Bachelor’s Degree in Auto Engineering

from Beijing Institute of Technology and an EMBA from China Europe International

Business School and is Chief Expert of Chongqing Chang’an Automobile Company

Limited Senior Consultant of Chairman business team Chief Representative in

Europe and a Director of JMC. Mr. Yuan Mingxue has held various positions

including Assistant to the President of Chang’an Auto and Executive Vice President

of Jiangling Holdings Limited Company Assistant to the President and Director of

Strategy Planning Department for Chang’an Auto Assistant to the President and

Director of Overseas Development Department for Chang’an Auto deputy

Secretary of the Party Committee Vice President Executive Vice President

Chairman of the Labor Union for Chang’an Auto.Ms. Xiong Chunying born in 1964 senior engineer holds a Bachelor Degree in

Automobile Engineering from Jiangsu Engineering College a Master Degree in

Industrial Economics from Jiangxi University of Finance and Economics and an

EMBA Degree from China Europe International Business School and is Director

and President of JMC and a Director of Ford Motor Sales Service (Shanghai) Co.Ltd. Ms. Xiong Chunying held various positions including Chief of Quality

Management Department Assistant to the President Vice President Executive

Vice President a Director for JMC.Ms. Zhong Junhua born in 1976 graduated in Financial Accounting from School of

Management Shijiazhuang Tiedao University holds a Bachelor’s Degree in

Economics and a MBA Degree Certified Public Accountant Senior Accountant and

is a Director of Nanchang Jiangling Investment Co. Ltd. and Director & EVP of

JMC an Executive Director & General Manager of Jiangling Motor Sales Co. Ltd.Chairman of Jiangling Ford Automobile Technology (Shanghai) Co. Ltd. in charge

of marketing sales & service and assist the President to manage the Company. Ms.Zhong Junhua held various positions including chief of Assets and Finance

Department for JMCG Chairman of JMCG Finance Co. Ltd. General Manager

Chairman of Nanchang Jiangling Dingsheng Investment Management Co. Ltd.Vice General Manager of JMCG Chairman of Jiangxi JMCG Specialty Vehicles Co.Ltd. Chairman of Jiangxi Jiangling Group Special Vehicle Co. Ltd. and a Director

of JMCG

Mr. Yu Zhuoping born in 1960 holds a Bachelor's Degree in Mechanical

Engineering and a Master's degree in Mechanical Engineering from Tongji

University and a Doctor's Degree in Automotive Engineering from Tsinghua

36University and is Director of Collaborative Innovation Center for Intelligent Energy

Vehicles of Tongji University Chairman of Tongji Automobile Design and Research

Institute Co. Ltd. Chairman and General Manager of Shanghai Intelligent New

Energy Vehicle Science and Technology Innovation Function Platform Co. Ltd. a

Counsellor of Shanghai Municipal People's Government a Deputy Chief Supervisor

of China Society of Automotive Engineers an Independent Director of JMC an

Independent Director of Ningbo Shenglong Automotive Powertrain System Co. Ltd.an Independent Director of Huayu Automotive Systems Co. Ltd. Mr. Yu Zhuoping

held various positions including Director of School of Mechanical Engineering

Executive Deputy Director of New Energy Vehicle Engineering Center Executive

Vice Dean Dean of School of Automotive Studies for Tongji University and

Assistant to the President of Tongji University.Mr. Chen Jiangfeng born in 1979 holds a Bachelor’s Degree and Master’s Degree

in Law from International Law Department Foreign Affairs College and is Senior

Deputy General Counsel & Executive Director of Gilead (Shanghai) Pharmaceutical

Technology Co. and an Independent Director of JMC. Mr. Chen Jiangfeng has held

various positions including Legal Counsel of Ford Motor (China) Ltd. Legal Counsel

of Ford Motor Research & Engineering (Nanjing) Co. Ltd./ Chang’an Ford Mazda

Automobile Corporation Ltd. Nanjing Company/Chang’an Ford Mazda Engine

Company Ltd. Senior Legal Counsel & Compliance Officer of Ford Asia Pacific &

Africa Senior Legal Counsel of BMW China Automotive Trading Ltd. and Member

of China Country Council Head of legal Director Merck Healthcare China.Ms. Wang Yue born in 1978 holds a Bachelor’s Degree in Accountancy from

Henan University a Master’s Degree in Accountancy from Zhongnan University of

Economics and Law and a Doctor’s Degree in Accountancy from Shanghai

University of Financial and Economics and is a Professor of School of Accountancy

for Shanghai University of Financial and Economics an Independent Director of

JMC an Independent Director of Shanghai Chemspec Corporation and an

Independent Director of Shanghai Dearer Medical Equipment Co. Ltd.. Ms. Wang

Yue has served as Research Assistant at The Hong Kong Polytechnic University

and China Europe International School during 2012~2013 served as Visiting

Scholar at Zimmerman Center for University of Illinois at Urbana-Champaign. during

2023~2024 served as visiting scholar at the Newcastle University Business School

in the United Kingdom.Mr. Chen Ping born in 1965 holds a Bachelor’s degree in Radio Technology from

Zhejiang University and an EMBA from China Europe International Business School

(CEIBS) is a recipient of the State Council’s Special Government Allowance. He

currently serves as a Director of Shanghai Electrical Apparatus Research Institute

(Group) Co. Ltd. a Director of Jiangsu Luokai Electromechanical Co. Ltd. a

Director of Shanghai Hi-Tech Control System Co. Ltd. Chairman of Shanghai

Dianke Venture Capital Co. Ltd. a Director of Shanghai Electric Power Research

Institute Technology Co. Ltd. and a Director of Shanghai Seari Intelligent System

Co. Ltd. He also holds dual roles as Supervisor of Shanghai Association for Quality

Supervisor of Shanghai Invention Association Chairman of Shanghai Yangtze

River Delta Advanced Manufacturing Development Research Institute and

Independent Director of JMC. His career includes serving as Vice President

President Chairman and Party Secretary of Shanghai Electrical Apparatus

Research Institute (Group) Co. Ltd. Mr. Chen Ping has been honored with the First

37Prize of Shanghai Municipal Science and Technology Progress Award by the

Shanghai Municipal People's Government and the Second Prize of National

Science and Technology Progress Award by the State Council.Mr. Liu Niansheng born in 1967 holds a Bachelor’s Degree in Forging Technology

and Equipment from Jiangxi Industry University and Postgraduate degree in

Economics and Management from Renmin University of China. He currently holds

the positions of Employee Representative Director and Chairman of the Trade

Union at JMC. He has served as Deputy Director of the Chassis Plant at JMC

Deputy County Governor of Boyang County in Jiangxi Province Deputy Director of

the Manufacturing Department Director of the Chassis Plant Director of the Transit

Plant and Assistant President of JMC.Senior management:

Ms. Xiong Chunying please refer to the part of Directors for her resume.Ms. Zhong Junhua please refer to the part of Directors for her resume.Mr. Ding Wenmin born in 1972 holds a Bachelor’s Degree in Automobile Exertion

from Wuhan University of Technology and is an Executive Vice President of JMC

in charge of the Company's product research and development. Mr. Ding Wenmin

held various positions including Deputy Chief of Product Development Center Chief

of Product Planning & Program Management Department and Assistant to the

President for JMC Vice President of JMC and a Director of JMCG.Ms. Li Weihua born in 1977 holds a Bachelor’s Degree in International Economic

Law from Shanghai University of Finance and Economics and a MBA from Canada

York University Schulich School of Business and is CFO of JMC a Director of

Jiangling Ford Automobile Technology (Shanghai) Co. Ltd. Ms. Li Weihua has held

various positions including Finance Analyst of Ford China Finance Analyst and

Finance Manager of Ford Motor Research & Engineering (Nanjing) Co. Ltd. MFG

Finance Manager PD Finance Manager MFG Finance Controller and PD Finance

Controller for C and C SUV of Ford AP CFO of Ford Lioho CFO of JMC Financial

Vice President of Changan Ford Automobile Co. Ltd. and a Director of Hanon

Systems (Nanchang) Co. Ltd.Mr Eric Hermann born in 1964 holds a Bachelor’s Degree in Engineering

Mechanical and a Master’s Degree in Engineering Mechanical from University of

Michigan and is a Vice President of JMC in charge of the Company's product

research and development. Mr. Eric Hermann held various positions in Ford Motor

Company including Light Truck Exhaust Design Engineer Vehicle NVH Supervisor

VE Launch Leader Exhaust AIS & Clutch Supervisor AIS Cooling Exhaust & CAE

Manager BoF Cooling & Mounts Manager Unibody Exhaust & AIS Manager and

Global AIS Manager as well as the Director of Powertrain Engineering Department

and Assistant President for JMC.Mr. Wu Xiaojun born in 1974 holds an Automobile Design Bachelor’s Degree from

Wuhan University of Technology and a MBA from Jiangxi University of Finance and

Economics and is a Vice President of JMC CEO of New Energy Division for JMC

Executive Director and General Manager of Jiangling Heavy Vehicle Co. Ltd. in

charge of the new energy business of commercial vehicles for the Company. Mr.

38Wu Xiaojun held various positions including Chief of Quality Department Assistant

to the President for JMC and Executive Deputy General Manager of JMC Heavy

Duty Vehicle Co. Ltd.Ms. Xu Lanfeng born in 1969 holds a Bachelor’s Degree in Forging Technology

and Equipment from Jiangxi Industry University and a MBA from University of

International Business and Economics and is a Vice President and the Board

Secretary of JMC in charge of the Company’s human resources and relevant duties

of Board Secretary. Ms. Xu Lanfeng held various positions in JMC including Deputy

Plant Manager of Framing Plant Deputy Chief Chief of Manufacture Department

and Assistant to the President for JMC.Ms. Wu Jiehong born in 1976 holds a Bachelor’s Degree in Finance Management

from Nanchang University and a MBA from Jiangxi University of Finance and

Economics and is a Vice President of JMC in charge of the strategic development

of the Company and assist the CFO to support the financial work. Ms. Wu Jiehong

held various positions including Assistant to the Chief of Financial Department

Chief of Internal Audit Office and Chief of Financial Department for JMC Finance

Manager for Ford APA Chief of Planning Department and Assistant to the

President for JMC.Mr. Zeng Fafa born in 1978 holds a Bachelor's Degree in Automotive Engineering

from Nanchang University China and is a Vice President of JMC in charge of

manufacturing business. Mr. Zeng Fafa held various positions including Deputy

Director of Quality Control Department Director of New Model Program Department

Director of Quality Control Department Director of Quality Control & New Model

Program Department Director of Manufacture Department and an Assistant to the

President for JMC.Mr. Sam Lo born in 1979 holds a Bachelor's Degree in Mechanical Engineering

from National Taiwan University of S&T China a Master's degree in Mechanical

Engineering from National Taiwan University China and is a Vice President of JMC

in charge of manufacturing business of the Company. Mr. Sam Lo held various

positions including Welding Area Manufacturing Engineer Craft Engineer

Production Superintendent and ME Manager of Ford Lio Ho Motor Company

VOME Implementation Body Manager and Final Assembly Manager of Ford Asia &

Pacific Body Area Manager Advisor of Changan Ford Motor Co. Ltd. Harbin Branch

Plant Launch Manager and Plant Manager of Changan Ford Motor Co. Ltd.Hangzhou Branch.Mr. Chen Lei born in 1979 holds a Bachelor's degree in Electrical Automation from

Jiangsu University of Science and Technology and an MBA degree from Nanjing

University of Aeronautics and Astronautics is a Vice President of JMC in charge of

procurement. Mr. Chen Lei has served as the Director of Supplier Technical

Assistance (STA) and Electrified Propulsion Engineering (EPE) Supply Chain for

Ford China EPE Supply Chain Director for Ford China’s EV Business STA Director

for Ford China STA Director for Changan Ford and the Senior Manager of

Electrical STA for Ford Asia Pacific.Positions at the shareholder entities

□Applicable □Not Applicable

39Name Shareholder Title Term of Compensation

Entity Office Paid by

Shareholder

Entity (Y/N)

Qiu Tiangao JIC Chairman 2019.05.28 N

Group Vice

2023.03.01

President

President and CEO

Shengpo Wu Ford Y

of Ford China and

2025.02.06

International

Markets Group

Ryan Anderson Ford CFO Ford China 2021.06.01 Y

Yuan Mingxue JIC Director 2019.05.28 N

Zhong Junhua JIC Director 2019.05.28 N

Description of the positions in the shareholder entities None.Positions in other entities

□Applicable □Not Applicable

Compensation

Name Entity Title Paid by Other

Entities (Y/N)

Qiu Tiangao JMCG Chairman Y

Qiu Tiangao Jiangxi ISUZU Co. Ltd. Chairman N

Qiu Tiangao JMCG New Energy Vehicle Chairman N

Co. Ltd.Qiu Tiangao Nanchang Jiangling Chairman N

Investment Co. Ltd.Shengpo Wu Ford Motor (China) Ltd. Chairman President N

and CEO

Shengpo Wu Changan Ford Automobile Co. Vice Chairman N

Ltd.Shengpo Wu Ford Technology (China) Chairman N

Holding Inc.Shengpo Wu Fuqi Trading (Shanghai) Ltd. Chairman N

Ryan Ford Motor (China) Ltd. Director Chief N

Anderson Financial Officer

Ryan Chang'an Ford Automobile Director N

Anderson Co. Ltd.Ryan Ford Motor Sales Service Chairman N

Anderson (Shanghai) Co. Ltd.Ryan Fuqi Trading (Shanghai) Ltd. Director N

Anderson

Ryan Ford Model e Technology Chairman Head of N

Anderson (Nanjing) Co. Ltd. Power Technology

branch

Ryan Ford Technology (China) Director N

Anderson Holding Inc.Yuan Chongqing Chang'an Chief Expert and Y

Mingxue Automobile Company Limited Senior Consultant of

Chairman Business

40Team Chief

Representative in

Europe

Xiong Ford Motor Sales Service Director N

Chunying (Shanghai) Co. Ltd.Zhong Nanchang Jiangling Director N

Junhua Investment Co. Ltd.Zhong Jiangling Motor Sales Co. Ltd. Executive Director N

Junhua & General Manager

Zhong Jiangling Ford Automobile Chairman N

Junhua Technology (Shanghai) Co.Ltd.Yu Zhuoping Collaborative Innovation Director N

Center for Intelligent Energy

Vehicles of Tongji University

Yu Zhuoping Tongji Automobile Design and Chairman N

Research Institute Co. Ltd.Yu Zhuoping Shanghai Intelligent New Chairman & N

Energy Vehicle Science and President

Technology Innovation

Function Platform Co. Ltd.Yu Zhuoping Huayu Automotive Systems Independent Director Y

Co. Ltd.Yu Zhuoping Ningbo Shenglong Automotive Independent Director Y

Powertrain System Co. Ltd.Yu Zhuoping Shanghai Municipal People's Counsellor N

Government

Yu Zhuoping China Society of Automotive Deputy Chief N

Engineers Supervisor

Chen Gilead (Shanghai) Executive Director Y

Jiangfeng Pharmaceutical Technology Senior Deputy

Co. Ltd. General Counsel

Wang Yue Shanghai University of Professor Y

Finance and Economics

Wang Yue Shanghai Chemspec Independent Director Y

Corporation

Wang Yue Shanghai Tiluo Medical Independent Director Y

Equipment Co. Ltd.Shanghai Dianke Venture

Chen Ping Chairman N

Capital Co. Ltd.Shanghai Electrical Apparatus

Chen Ping Research Institute (Group) Director Y

Co. Ltd.Shanghai Electric Power

Chen Ping Research Institute Technology Director N

Co. Ltd.Shanghai Seari Intelligent

Chen Ping Director N

System Co. Ltd.Shanghai Hi-Tech Control

Chen Ping Director Y

System Co. Ltd.

41Jiangsu Luokai

Chen Ping Director N

Electromechanical Co. Ltd.Shanghai Association for

Chen Ping Supervisor N

Quality

Shanghai Invention

Chen Ping Supervisor N

Association

Shanghai Yangtze River Delta

Advanced Manufacturing

Chen Ping Chairman N

Development Research

Institute

Li Weihua Jiangling Ford Automobile Director N

Technology (Shanghai) Co.Ltd.Wu Xiaojun JMC Heavy Duty Vehicle Co. Executive Director N

Ltd. General Manager

Wu Xiaojun Shenzhen Fujiang New Energy Executive Director N

Automobile Sales Co. Ltd. General Manager

Wu Xiaojun Guangzhou Fujiang New Executive Director N

Energy Automobile Sales Co. General Manager

Ltd.Wu Xiaojun Shanxi Yunnei Power Co. Ltd. Director N

Wu Jiehong JMC Heavy Duty Vehicle Co. Supervisor N

Ltd.Wu Jiehong Shanxi Yunnei Power Co. Ltd. Director N

Wu Jiehong Shenzhen Fujiang New Energy Supervisor N

Automobile Sales Co. Ltd.Description of the positions in other entities None

Penalties from securities regulator to the present and resigned Directors

Supervisors and Senior Executives in the recent three years

□Applicable □Not Applicable

(3). Compensation of Directors and Senior Executives

Decision-making procedure determination of basis and actual payment regarding

the compensation of the Directors and Senior Executives

Directors who did not concurrently hold other management positions in JMC were

not paid by JMC. Director Qiu Tiangao is paid by JMCG. Director Shengpo Wu and

Director Ryan Anderson were paid by Ford. Director Yuan Mingxue was paid by

Chongqing Chang’an Automobile Co. Ltd.(a) In accordance with JMC Executive Compensation Scheme approved by the

Board of Directors the compensation for the Chinese-side senior management

consists of base salary and floating bonus. The base salary level is determined

according the grade of the senior executives and the floating bonus shall be paid

according to the operating performance. 70% of the bonus will be distributed in this

year and the rest 30% will be distributed in the next three years. In 2025 the

Company paid annual compensation before tax of approximately RMB 1500

thousand to EVP Zhong Junhua paid approximately RMB 1810 thousand to EVP

Ding Wenmin paid approximately RMB 1650 thousand to VP Wu Xiaojun paid

42approximately RMB 1660 thousand to VP & Board Secretary Xu Lanfeng paid

approximately RMB 1690 thousand to VP Wu Jiehong paid approximately RMB

1660 thousand to VP Zeng Fafa. The total compensation before tax paid by JMC

for the aforesaid persons was about RMB 9.97 million in the reporting period

including the long-term incentive of RMB 830 thousand deferred from the previous

years.(b)JMC pays annual compensation for Ford-seconded senior management

personnel to Ford in accordance with the Personnel Secondment Agreement signed

between JMC and Ford & Ford Affiliates. In 2025 the Company should pay

approximately RMB 1100 thousand to Ford for Director and President Xiong

Chunying pay approximately RMB 180 thousand for CFO Li Weihua pay US$ 500

thousand for VP Eric Hermann pay RMB 1100 thousand for VP Sam Lo pay RMB

1100 thousand for VP Chen Lei and paid annual compensation before tax of

approximately RMB 960 thousand to Ex-CFO Joey Zhu pay RMB 3150 thousand

for Ex-VP Anderson Liu These payments made by JMC to Ford do not reflect the

actual salaries earned by Ford-seconded senior management.(c) Pursuant to the resolutions of JMC 2011 Annual Shareholder’s Meeting the

annual compensation for the JMC Independent Directors is RMB 100 thousand per

person and JMC bears their travel-related expenses associated with JMC’s

business. In 2025 the Company paid annual compensation before tax of RMB 100

thousand to Independent Director Yu Zhuoping Independent Director Chen

Jiangfeng and Independent Director Wang Yue respectively.Table on compensation of the Directors and Senior Executives in the reporting

period

Unit: RMB’ 000

Compensation Compensation

Present

Name Gender Age Position Before Tax Paid by Related

(Y/N)

Paid by JMC Party (Y/N)

Qiu Tiangao Male 59 Chairman Y 0 Y

Shengpo Wu Male 59 Vice Chairman Y 0 Y

Ryan

Male 52 Director Y 0 Y

Anderson

Yuan

Male 57 Director Y 0 Y

Mingxue

Xiong Director &

Female 61 Y * Y

Chunying President

Zhong

Female 49 Director & EVP Y 1500 N

Junhua

Independent

Yu Zhuoping Male 65 Y 100 N

Director

Chen Independent

Male 46 Y 100 N

Jiangfeng Director

Independent

Wang Yue Female 47 Y 100 N

Director

Independent

Chen Ping Male 60 Y 0 N

Director

Employee

Liu

Male 58 Representative Y # N

Niansheng

Director

Ding Wenmin Male 53 EVP Y 1810 N

Li Weihua Female 48 CFO Y * Y

43Eric Hermann Male 61 VP Y * Y

Wu Xiaojun Male 51 VP Y 1650 N

VP &Board

Xu Lanfeng Female 56 Y 1660 N

Secretary

Wu Jiehong Female 49 VP Y 1690 N

Zeng Fafa Male 47 VP Y 1660 N

Sam lo Male 46 VP Y * Y

Chen Lei Male 46 VP Y * Y

Joey Zhu Male 43 Ex-CFO Y * Y

Anderson Liu Male 53 Ex-VP Y * Y

Total - - - - 10270 -

*See the instructions in the previous paragraph.# Liu Niansheng was appointed as the Employee Representative Director of the Company on

December 30 2025.Except for Independent Directors Directors who

do not hold senior management positions in the

The assessment basis for the actual Company do not receive compensation from the

compensation received by all Directors Company. The assessment basis for the

and senior executives at the end of the compensation received by the Company's

reporting period. senior management is the "JMC Executives

Compensation Scheme" and the "KPIs for the

Company’s senior executives in 2025 ".The compensation for Chinese senior

The performance of the assessment for executives consists of base salary and floating

the actual compensation received by all bonus. The base salary is determined according

Directors and senior executives to the senior executives' job grade while the

management at the end of the reporting floating bonus is approved and paid by the

period. Company's Compensation Committee based on

performance achievement.

70% of the floating bonus for Chinese senior

The deferred payment arrangements

executives is distributed after the performance

for the actual compensation received by

assessment in the following year while the

all Directors and senior executives at

remaining 30% is deferred and paid out in equal

the end of the reporting period.instalments over three years.The clawback and recovery status of

the actual compensation received by all

None

directors and senior executives at the

end of the reporting period.Explanation of Other Situations

□Applicable □Not Applicable

5. Directors’ Performance of Duty

(1) Particulars about the Directors’ attendance to the Board meeting and the

Shareholders’ Meeting

Presence Not to Presence

Required

Presence in form of Presence present in at the

Name Board Absence

in Person Paper by Proxy person in two Shareholde

Attendance

Meeting consecutive rs’ Meeting

44meetings

(Y/N)

Qiu Tiangao 18 4 14 0 0 N 3

Shengpo Wu 18 4 14 0 0 N 2

Ryan

18 3 13 2 0 N 2

Anderson

Yuan Mingxue 18 2 14 2 0 N 0

Xiong

18 4 14 0 0 N 3

Chunying

Zhong Junhua 18 4 14 0 0 N 3

Yu Zhuoping 18 4 14 0 0 N 3

Chen

18 4 14 0 0 N 3

Jiangfeng

Wang Yue 18 4 14 0 0 N 3

Chen Ping 0 0 0 0 0 N 0

Liu Niansheng 0 0 0 0 0 N 0

Statements on failure to attend Board meetings in person for two consecutive

occasions

None.Chen Ping was appointed as an Independent Director of the Company on

December 30 2025 and Liu Niansheng was appointed as the Employee

Representative Director of the Company on December 30 2025.

(2) Dissent from Directors

□Yes □No

The Directors of the Company had no dissent to the relevant proposals of the

Company in the reporting period.

(3) Other introduction to Directors’ Performance of Duty

Whether the Directors' suggestions on the Company have been adopted

□Yes □No

Statement of the adoption or not of the Directors’ suggestions on the Company

All the Directors of the Company fulfill their duties diligently actively pay attention

to the Company’s management information financial situation and major issues

make a thorough study and discussion on the proposals submitted to the Board of

Directors and put forward their respective opinions make recommendations for the

Company's business development fully consider the interests and demands of

minority shareholders while making decisions which strengthens the scientific of

the Board’s decision and promotes the sustainable stable and healthy

development of the Company’s operation.

6. Situation of the Committees under the Board of Directors in the Reporting Period

(1) Audit Committee

Members:

Chairman: Wang Yue

Member: Ryan Anderson Yuan Mingxue Yu Zhuoping Chen Jiangfeng

Secretary: Li Weihua

The number of meetings held in the reporting period: nine.

45The first Audit Committee meeting of 2025 was convened on January 17

2025. Meeting contents:

Reviewed the 2024 Annual Financial and Accounting Statements of JMC and

would review the Company's financial and accounting statements again after the

auditor forms the preliminary audit opinions.Important comments and suggestions made: None.Other performance of duties: None.Details of the objection to matter: None.The second Audit Committee meeting of 2025 was convened on February 28

2025. Meeting contents:

Reviewed the Company's financial report after the certified auditor issued its

initial audit opinions.Important comments and suggestions made: None.Other performance of duties: None.Details of the objection to matters: None.The third Audit Committee meeting of 2025 was convened on March 13 2025.Meeting contents:

1. Reviewed the Ernst & Young Report;

2. Reviewed the 2024 Financial Report audited by the auditor and agreed to

submit it to the Board of Directors for approval;

3. Reviewed the Evaluation of the Auditor’s Performance in 2024 and the

Performance of the Audit Committee’s Supervision Responsibilities;

4. Reviewed the 2024 Internal Control Self-Evaluation Report and agreed to

submit it to the Board of Directors for approval;

5. Reviewed the Audit Committee Performance Report and agreed to submit it

to the Board of Directors for approval;

Important comments and suggestions made: None.Other performance of duties: None.Details of the objection to matters: None.The forth Audit Committee meeting of 2025 was convened on April 18 2025.Meeting contents:

Reviewed the First Quarter FY2025 Financial Accounting Statements and

agreed to submit this proposal to Board of Directors for approval.Important comments and suggestions made: None

Other performance of duties: None.Details of the objection to matters: None.The fifth Audit Committee meeting of 2025 was convened on June 24 2025.Meeting contents:

1.Reviewed the Internal Control Work Report for the first half of 2024 and the

Work Plan for the second half of 2024;

2. Reviewed the Ernst & Young Report.

Important comments and suggestions made: None

Other performance of duties: None.Details of the objection to matters: None.The sixth Audit Committee meeting of 2025 was convened on August 13

2025. Meeting contents:

46Reviewed the First Half FY2025 Financial Accounting Statements and agreed

to submit this proposal to Board of Directors for approval.Important comments and suggestions made: None

Other performance of duties: None.Details of the objection to matters: None.The seventh Audit Committee meeting of 2025 was convened on October 14

2025. Meeting contents:

Reviewed the First Quarter FY2025 Financial Accounting Statements and

agreed to submit this proposal to Board of Directors for approval.Important comments and suggestions made: None

Other performance of duties: None.Details of the objection to matters: None.The eighth Audit Committee meeting of 2025 was convened on October 16

2025. Meeting contents:

Approved Mr. Joey Zhu would no longer serve as the Company's CFO and

appointed Ms. Li Weihua as the Company's CFO and agreed to submit it to the

Board for approval.Important comments and suggestions made: None

Other performance of duties: None.Details of the objection to matters: None.The ninth Audit Committee meeting of 2025 was convened on December 19

2025. Meeting contents:

1.Reviewed the Ernst & Young Report;

2.Reviewed the Year 2025 Assets Impairment Provision Report and agreed to

submit it to the Board for review;

3.Reviewed and approved the 2025 annual financial report audit timing plan;

4.Reviewed the 2025 Internal Control Work Report and approved the Internal

Audit Work Plan for 2026.Important comments and suggestions made: None

Other performance of duties: None.Details of the objection to matters: None.

(2) Compensation Committee

Members:

Chairman: Chen Jiangfeng

Member: Qiu Tiangao Ryan Anderson Yu Zhuoping Wang Yue

Secretary: Xu Lanfeng

The number of meetings held in the reporting period: one.A Compensation Committee meeting was convened on March 13 2025.Meeting contents:

1. Reviewed and approved the Proposal on 2024 Year-end Bonus for the

Company’s senior executives;

2. Reviewed and approved the adjustment of the annual total cash income

target of the Company’s senior executives in 2025;

3. Reviewed and approved the KPIs for the Company’s senior executives in

2025;

475. Reviewed and approved the 2024 Due Diligence Report of the

Compensation Committee.Important comments and suggestions made: None.Other performance of duties: None.Details of the objection to matters: None.

(3) Strategy Committee

Members:

Chairman: Qiu Tiangao

Member: Shengpo Wu Ryan Anderson Yuan Mingxue Xiong Chunying

Zhong Junhua

Secretary: Wu Jiehong

The number of meetings held in the reporting period: one.A Strategy Committee meeting was convened on December 19 2025.Meeting contents:

Review the Company's "Fifteenth Five-Year Strategic Plan."

Important comments and suggestions made: None.Other performance of duties: None.Details of the objection to matters: None.

8. Works of Audit Committee

Risks found by the Audit Committee in the reporting period

□Yes □No

The Audit Committee had no dissent on inspection items in the reporting period.

9. Employees

(1) Employees Professional Structure and Educational Level

Employees in parent company at the end of reporting

11163

period(person)

Employees in subsidiaries at the end of reporting period(person) 40

Total employees at the end of reporting period(person) 11203

Total employees paid compensation (person) 11790

Retired employees bore retirement benefits in parent company and

587

its subsidiaries

Professional Structure

Employees

Type

(Person)

Production Worker 6695

Sales Personnel 536

Technical Personnel 3208

Finance Personnel 138

Administrative Staff 626

Total 11203

Educational Level

Employees

Type

(Person)

Master degree and higher 1005

Undergraduate degree 3430

48Polytechnic school degree 1362

Below polytechnic school degree 5406

Total 11203

(2) Compensation Policy

JMC strictly abided by the relevant requirements of national labor laws and

regulations and provided safe and comfortable work places. The Company also

established and improved the incentive system that can effectively help the

realization of the Company’s strategy and targets based on the characteristics of

the business and talents. The Company promoted the multi-talent incentive system

with orientation on value ability and contribution so as to accelerate the growth of

new automobile talents. The Company also strengthened the connection between

personal interests of core talents and the company's medium and long-term

strategic goals thus driving the achievement of business objectives. At the same

time the Company constantly improved employee welfare policies to meet the

diversified individual needs of employees and improve the employees’ experience

and satisfaction.

(3) Training

By conducting training needs surveys for all employees and building a differentiated

talent development and empowerment system the Company continuously provides

employees with comprehensive and diverse learning opportunities encouraging

and supporting them to pursue continuous efficient and lifelong learning. In 2025

closely aligned with industry development trends the Company strategically

focused on two core areas: "Artificial Intelligence" and "Global Talent for Overseas

Expansion." This forward-looking approach aims to achieve a dual enhancement of

organizational effectiveness and employees' core competitiveness. In terms of

digital and intelligent transformation the Company launched a series of AI

empowerment initiatives helping employees master cutting-edge AI tools through

systematic training driving the evolution of work models from traditional to intelligent

and stimulating individual innovation. In terms of globalization tailored training

programs were developed to support the Company's overseas expansion strategy

including cross-cultural communication localized operations and overseas legal

compliance cultivating comprehensive talent with an international perspective to

support the Company's global business expansion. At the same time the Company

continued its partnership with Tongji University for the specialized cultivation of

high-level talent leveraging postdoctoral workstations at universities such as

Nanchang University to deepen the integration of industry academia and research

continuously expanding the depth and breadth of university-industry cooperation.The Company leverages multi-path synergies to continuously advance its "New

Four Modernizations" talent development program while keenly seizing

opportunities presented by AI transformation and globalization. By building

diversified growth platforms for employees across different business sectors it not

only helps individuals achieve their career aspirations but also fully fulfils its

responsibility as an engine of social innovation.

(4) Labour outsourcing

□Applicable □Not Applicable

9. Profit distribution and capital reserve conversion

49Establishment implementation or adjustment of profit distribution policy esp. cash

dividend distribution policy regarding common stock during the reporting period

□Applicable □Not Applicable

In accordance with the requirements of laws regulations and the Articles of

Association of the Company the Company's profit distribution policy maintains

continuity and stability and the Company pays attention to the reasonable return to

investors. The Company gives priority to cash dividend and subject to the

provisions of laws regulations and the Articles of Association of the Company the

Board of Directors can put forward a mid-term or special profit distribution proposal.The Company's profit distribution policy is in line with the CSRC's guidance on

encouraging cash dividends for listed companies.Special Explanation on Cash Dividend Policy

Whether to comply with the requirements of the Articles of Association of JMC

Y

or resolution of the Shareholders’ Meeting (Y/N)

Whether the standards and proportion of dividends on profit distribution are

Y

clear (Y/N)

Whether the procedures are valid and legal (Y/N) Y

Whether the Independent Director fulfil their duties (Y/N) Y

Whether middle and small shareholders have opportunities to claim their

Y

appeals and their legal rights and interests are completely protected (Y/N)

Whether the condition and procedure are reasonable and transparent when the

Y

cash dividend policy is being changed (Y/N)

The Company made a profit during the reporting period and the profit of the parent

company distributable to the common shareholders is positive but a distribution

plan of cash dividends for the common shares is not put forward

□Applicable □Not Applicable

Proposal on Year 2025 Profit Distribution Plan or Capital Reserve Conversion

□Applicable □Not Applicable

Stock dividend (share) for every 10 shares 0

Cash Dividend (RMB) for every 10 shares (including tax) 5.5581

Total share capital (share) 854581922

Total cash dividend distribution amounts (RMB) (including tax) 474985178

Amount of cash dividend (RMB) in other ways (e.g. repurchase of

0

shares)

Total cash dividend amounts (RMB) (including other ways) 474985178

Distributable profit (RMB) 9752190648

Total cash dividends (including other ways) as a proportion of total

100%

profit distribution

Cash dividend status

If the development stage of the Company is not easy to distinguish but there are major

fund expenditure arrangements the minimum proportion of cash dividends in this profit

distribution shall reach 20% when the profit distribution is carried out.Detailed description of profit distribution or capital reverse conversion proposal

Proposal on year 2025 profit distribution: the Company plans to distribute a cash

dividend of RMB 5.5581 (including tax) for every 10 shares held. Based on the total

share capital of 854581922 shares as of December 31 2025 the total cash dividend

distribution amounts shall be RMB 474985178. The cash dividend on B share shall be

paid in Hong Kong Dollars and converted at the middle rate of the HK dollar’s exchange

50rate against RMB quoted by the People’s Bank of China on the first working day

following the relevant resolution adopted by the Company’s Annual Shareholders’

Meeting. The Board decides not to convert the capital reserve to the share capital this

time. The proposal is subject to the approval of the Company’s 2025 annual

shareholders’ meeting.

10. 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.

11. Internal control system construction and implementation during the reporting

period

(1) Internal control construction and implementation

According to the requirements of the Basic Standard for Enterprise Internal Control

(C-SOX) along with its Application Guidelines and Internal Control Guidelines for

Public Companies listed on the Shenzhen Stock Exchange jointly issued by the

Ministry of Finance and China Security Regulation Commission the Company has

established a set of sound and effective internal control system and at the same

time combined with the internal and external environment internal institutions and

management requirements so as to make the internal control system design

scientific simple applicable and effective operation.The Company has reasonably planned the organizational structure and established

a control structure with the full participation of the Audit Committee Executive

Committee senior management and business level under the leadership of the

Board of Directors. The company has established a "Three Lines of Defense"

internal control system: First Line: Various business/functional departments directly

identify and manage risks in daily operations assuming primary responsibility.Second Line: Risk management/compliance departments such as Legal Quality

and Safety formulate policies supervise coordinate and provide professional

support. Third Line: The Audit Committee has an audit department which

supervises and evaluates the operation of the Company's internal control system

through internal audit.Through the operation analysis and evaluation of the internal control system the

Company has effectively prevented the risks in the operation and management and

promoted the realization of the internal control objectives.This year the Company's internal control can cover the main aspects of the

Company's operation and management without major omissions; the units

businesses and matters and high-risk areas included in the evaluation scope cover

the main aspects of the Company's operation and management without major

omissions.

(2) Major defect of internal control in the reporting period

□Yes □No

12.The Company's management control over the subsidiaries during the reporting

period

51□Applicable □Not Applicable

During the reporting period the Company has not purchased new subsidiaries.

13. Internal Control Self-Assessment Report or Internal Control Audit Report

(1) Internal Control Self-Assessment Report

Issuance date March 28 2026

Index www.cninfo.com.cn

Total value of assets of the

entities in scope counts as % of

100.00%

that disclosed in the consolidated

financial statements

Total value of operating revenue

of the entities in scope counts

100.00%

as % of that disclosed in the

consolidated financial statements

Deficiency Determination Criteria

Type Type Type

Material Weakness: An error that

changes the trend of results

Material Weakness: Unscientific

changes profit to loss or loss to

decision making process such as

profit; Ineffective anti-fraud process

incorrect decisions that result in

or any fraud involving senior

unsuccessful mergers and

management; Ineffective control

acquisitions; Major regulatory

over accounting policies; Ineffective

compliance issues; Frequent

oversight by the Audit Committee

media reports harmful to the

Significant Deficiency: Errors in

Company’s reputation; A lack of

management reporting systems or

control within key business

Corporate accounting records that

processes or systematic

could lead to incorrect management

breakdown of control policies;

decisions; Actions inconsistent with

Material weakness identified in

Company values policies approval

Qualitative Criteria the self-assessment without any

authorities and other Corporate

action plan implemented

guidelines that are likely to

Significant Deficiency: a control

significantly impact cost quality

deficiency or combination of

customer satisfaction reputation or

control deficiencies that does not

competitive advantage; Significant

meet; The criteria for material

control issues in IT infrastructure or

weakness but deserves the

applications that creates significant

concerns of the Audit Committee

risk to corporate assets or

and the Board of Directors

processes; Identification of fraud of

Minor Deficiency: Any control

a significant magnitude or theft that

deficiencies that do not meet the

is significant in value

criteria for material or significant

Minor Deficiency: Any control

deficiencies that do not meet the

criteria for material or significant

Material Weakness: Misstatement in

the Financial Report is more than

1% of the total assets or 1% of the

annual sales revenue in the latest

audited consolidated Financial

Statements the lower of the two Please refer to internal control

indicators above deficiency over financial reporting

Quantitative Criteria

Significant Deficiency: Misstatement for the criteria for non-financial

in the Financial Report is more than reporting internal control.

0.5% of the total assets or 0.5% of

the annual sales revenue in the

latest audited consolidated Financial

Statements the lower of the two

indicators above

52Minor Deficiency: All the deficiencies

that don’t meet the quantitative

criteria for significant

Number of Material Weakness in

0

financial report

Number of Material Weakness in

0

non-financial report

Number of Significant Deficiency in

0

financial report

Number of Significant Deficiency in

0

non-financial report

(2). Internal Control Audit Report

□Applicable □Not Applicable

Opinions in the Internal Control Audit Report

The comments in the Internal Control Audit Report issued by Ernst & Young Hua Ming

LLP are as follows: On December 31 2025 JMC maintained effective internal control of

financial reporting in all major aspects in accordance with the Basic Code for Enterprise

Internal Control and relevant provisions.Disclosure of Internal Control Audit Report Disclosed

Issuance Date March 28 2026

Index www.cninfo.com.cn

Type of Opinion Standard and unqualified opinions

Major Defect Regarding Non-financial Report or not No

Abnormal opinion issued by the accounting firm

□Yes □No

Whether the Opinion issued by the accounting firm keeps the same with that of self-

assessment report made by the Board

□Yes □No

Whether a non-standard audit opinion on internal control was issued during the

reporting period or the previous year.□Yes □No

14.Situation of Problem Rectification for the self-inspection of the special action for

the governance of listed companies

After the Company's self-inspection the Company’s overall compliance operation

was found to be in order and no rectification was found.

15. 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

1. National Pollutant Discharge Permit

Jiangling Motors Management Information Platform

1

Corporation Ltd. https://permit.mee.gov.cn/permitExt/defaults/defa

ult-index!getInformation.action

532. Nanchang Industrial Solid Waste Regulatory

Platform

http://117.40.240.237:10086/index.jsp

3. Credit China

https://www.creditchina.gov.cn/

16. Corporation Social Responsibilities

Details are contained in the Company's Environmental Social and Governance

(ESG) Report which was disclosed on March 28 2026.

17. The consolidation and expansion of poverty alleviation achievements and rural

revitalization

JMC actively fulfils its corporate social responsibility by fully participating in rural

revitalization. Through diversified cooperation models and empowerment initiatives

the Company contributes solid strength to building a new pattern of urban-rural

integration and common prosperity.The Company continues to use "consumption assistance" as a key entry point

deepening the model of "industrial chain collaboration + public welfare

empowerment." This year the Company precisely connected with and procured a

variety of high-quality agricultural products through the "purchase instead of

assistance" approach including yellow peaches from Luoyang Village Suichuan

County Jiangxi Province and Xinfeng navel oranges with a cumulative

procurement volume exceeding 24000 units totalling RMB 1.38 million. This

effectively supported the stable development of rural specialty industries and

stimulated the endogenous momentum of the local economy.In 2025 JMC once again donated RMB 2 million to build 13 convenient bridges in

Yongshun County of Hunan Province Ningdu County of Jiangxi Province and

Xinfeng County of Jiangxi Province. The “JMC Xiqiao Project” initiated in 2007 by

the China Foundation for Rural Development and Jiangling Motors Corporation Ltd.has adhered to the mission of "Building Rural Bridges Connecting Revitalization

Roads" for nearly 20 years. By the end of 2025 JMC has invested over RMB 43.9

million in the project donating and constructing 465 bridges across 132 counties in

25 provinces (municipalities and autonomous regions) benefiting nearly 700000

rural residents in underdeveloped areas.

54Chapter V Major events

1. Commitments

(1) Commitments of actual controlling parties shareholders related parties

acquirers and the Company finished in the reporting period or overdue unfinished

by the end of the reporting period

□Applicable □Not Applicable

There is no commitment of actual controlling parties shareholders related parties

acquirers and the Company finished in the reporting period or overdue unfinished

by the end of the reporting period.

(2) Earnings forecast of the assets or project and the explanations

□Applicable □Not Applicable

(3) The company is involved in performance commitments.

□Applicable □Not Applicable

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 outside guarantee

□Applicable □Not Applicable

The Company had no illegal outside guarantee during the reporting period.

4.The Board's explanation of the situation related to the latest "non-standard audit

Report"

□Applicable □Not Applicable

5. Explanation of the Board of Directors Supervisory Board and Independent

Directors to abnormal opinions from accounting firm

□Applicable □Not Applicable

6. Description of changes in accounting policies accounting estimates or correction

of major accounting errors compared to the financial report of the previous year

□Applicable □Not Applicable

The Company had no changes in accounting policies accounting estimates or

material accounting error corrections during the reporting period.

7.Description of changes in the scope of consolidated statements as compared

with the financial statements of the previous year

□Applicable □Not Applicable

There was no change in the scope of the consolidated statements during the

reporting period.

8. Appointment or Dismissal of Accounting Firm

Current appointed accounting firm

Name Ernst & Young Hua Ming LLP

Compensation (RMB’000) 1770

55Consecutive years offering audit services 2

Names of signed accountants Qiao Chun Yuan Yong

Consecutive years offering audit

Qiao Chun 2 years Yuan Yong 2 years

services of signed accountants

Dismissal of accounting firm

□Yes □No

Appointment of C-SOX auditor financial consultant or sponsor

□Applicable □Not Applicable

Upon the approval of 2024 Third Special Shareholders’ Meeting JMC appointed

Ernst & Young Hua Ming LLP as JMC’s 2024 to 2026 C-SOX auditor. In 2025 JMC

paid RMB 430 thousand to Ernst & Young Hua Ming LLP for the C-SOX audit.

9. Suspension and Termination of Listing after Annual Report Disclosed

□Applicable □Not Applicable

10. Related Matters regarding Bankruptcy

□Applicable □Not Applicable

There was no matter involving bankruptcy during the reporting period.

11. Major Litigation or Arbitration

□Applicable □Not Applicable

There was no major litigation or arbitration during the reporting period.

12. Punishment

□Applicable □Not Applicable

Neither JMC nor its Directors or senior management were punished by regulatory

authorities during the reporting period.

13. Honesty and credit of JMC and its controlling shareholder or actual controlling

party

□Applicable □Not Applicable

14. Major Related Transactions

(1) Routine related party transactions

Please refer to the Note 8 related party transactions of the notes to the consolidated

financial statements in the Chapter VIII Financial Statements for details.

(2) 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.

(3) Related party transaction concerning outside co-investment

Please refer to the details in Section VI "17. Other Major Events " in this report.

(4) Related credit and debt

□Applicable □Not Applicable

Is there non-operating related credit and debt

□Yes □No

56The Company had no non-operating related credit and debt in the reporting

period.

(5) 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)

Wholly-

JMCG

owned 0.85%-

Finance * 1407600 14073010 13888120 1592490

subsidiary of 1.55%

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

Company absorbed deposits 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)

Wholly-

JMCG

owned

Finance 1300000 0 0 0 0

subsidiary

Company

of 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

(6) The transactions between the financial company controlled by the company and

its related parties

□Applicable □Not Applicable

The Company has no controlling financial company.

(7) Other major related party transactions

□Applicable □Not Applicable

Information on the disclosure website of the interim report of major related party

transactions:

Website for

Name Disclosure Date

Disclosure

57Public Announcement on Related Party

2025.05.30 www.cninfo.com.cn.

Transactions

Public Announcement on Proposed Capital

Increase in the Controlled Subsidiary and 2025.09.24 www.cninfo.com.cn.Related Party Transactions

Public Announcement on Forecast of the

2025.12.23 www.cninfo.com.cn.

Routine Related Party Transactions in 2026

15. 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 (14) Note 5 (16) note 5 (32) Note 5 (63) and note 8 (5)

(b) of the financial statements in the Chapter VIII Financial Statements for detail.Project of which the profit and loss brought to the company reaches more than 10%

of the total profit of the company during the reporting period

□Applicable □Not Applicable

There was no leasing project of which the profit and loss brought to the Company

reached more than 10% of the total profit of the Company during the reporting period.

(2) Major guarantee

□Applicable □Not Applicable

The Company had no outside guarantee in the reporting period.

(3) Entrustment on cash asset management

a. Trust investment

□Applicable □Not Applicable

There was no trust investment in the reporting period.b. Entrusted loan

□Applicable □Not Applicable

There was no entrusted loan in the reporting period.

(4) Other major contract

□Applicable □Not Applicable

There was no other major contract in the reporting period.

16. Usage of Raised Fund

□Applicable □Not Applicable

There was no usage of raised fund in the reporting period.

5817. Other Major Events

□Applicable □Not Applicable

Matters regarding the Company's share repurchase

The Company's Board of Directors reviewed and approved the "Proposal on the

Repurchase of the Company's A-Shares" in form of paper meeting from April 10 to

April 11 2025.Please refer to the relevant announcements disclosed on the website

http://www.cninfo.com.cn for details.Name Disclosure Date

JMC Public announcement on the Repurchase of A-Shares 2025.04.14

JMC Share Repurchase Report 2025.04.16

JMC Public announcement on Shareholding of the Top Ten

Shareholders and Top Ten Unrestricted Condition Shareholders 2025.04.16

Regarding the Share Repurchase

JMC Public announcement on the Initial Repurchase of

2025.04.17

Company Shares

JMC Public announcement on Progress of Share Repurchase 2025.05.07

JMC Public announcement on Progress of Share Repurchase 2025.06.04

JMC Public announcement on Progress of Share Repurchase 2025.07.03

JMC Public announcement on Progress of Share Repurchase 2025.08.05

JMC Public announcement on Progress of Share Repurchase 2025.09.03

JMC Public announcement on Completion of Share Repurchase

2025.10.10

and Changes in Shareholding

18.Major event of JMC subsidiary

□Applicable □Not Applicable

Matters regarding the Company's capital increase to its controlling subsidiary and

related-party transactions

The Board of Directors of the Company reviewed and approved in form of paper

meeting on September 22 2025 the Distribution Service Contract for JMC Brand

Vehicles among the Company Jiangling Motor Sales Co. Ltd. and Ford Motor

Sales Service (Shanghai) Co. Ltd. as well as the Revision and Restatement of the

Joint Venture and Shareholders' Agreement of Jiangling Ford Automobile

Technology (Shanghai) Co. Ltd. (2025) between the Company and Ford.Please refer to the Public Announcement on Proposed Capital Increase in the

Controlled Subsidiary and Related Party Transactions published on September 24

2025 on the website http://www.cninfo.com.cn for details.

59Chapter 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 New Reserve- Proportion

Bonus

Shares of total share converted Others Subtotal Shares of total

Shares

shares (%) s shares shares (%)

I. Limited tradable

7508400.09%7508400.09%

A shares

1. Other domestic

7508400.09%7508400.09%

shares

Including:

Domestic legal

7451400.09%7508400.09%

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

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

I. Securities issuance (not including preferred shares) in the reporting period

□Applicable □Not Applicable

II. Explanation on changes of shares shareholding structure assets and liabilities

structure

□Applicable □Not Applicable

III. Current staff shares

□Applicable □Not Applicable

603. Shareholders and actual controlling parties

I. Total shareholders top ten shareholders and top ten shareholders holding

unlimited tradable shares

Total shareholders as JMC had 39701 shareholders including 33919 A-share holders and 5782 B-share

of the end of the holders as of December 31 2025.reporting period

Total shareholders as JMC had 40373 shareholders including 34594 A-share holders and 5779 B-share

of the last month-end holders as of February 28 2026.prior to the disclosure

date of the Report

Top ten shareholders

Shares

Shares

Shareholding Shares at due to

Shareholder Change with

Shareholder Name Percentage the End of mortgage

Type (+-) Trading

(%) Year or mark

Restriction

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 1.10% 9520669 -15889340 0 0

person

Ltd. (HKSCC)

Domestic

Jin Xing 0.62% 5327900 -508800 0 0

Natural Person

Industrial and

Commercial Bank of

China Limited - Domestic non-

Guolian Superior State-owned 0.58% 5028101 5028101 0 0

Industry Mixed legal persons

Securities Investment

Fund

China Merchants

Foreign legal

Securities (HK) Co. 0.54% 4619475 -348100 0 0

person

Ltd.Bank of China Limited

- E Fund Hong Kong

Stock Connect Domestic non-

Dividend Flexible State-owned 0.34% 2907400 2907400 0 0

Allocation Mixed legal persons

Securities Investment

Fund

China Merchants Bank

Co. Ltd. - E Fund Domestic non-

Value Return Mixed State-owned 0.24% 2099400 2099400 0 0

Securities Investment legal persons

Fund

Industrial and

Commercial Bank of

China Limited - HTFTZ Domestic non-

Intelligent State-owned 0.24% 2069224 2069224 0 0

Manufacturing Stock legal persons

Securities Investment

Fund

61China Merchants Bank

Co. Ltd. - China

Southern CSI 1000 Domestic non-

Exchange Traded State-owned 0.22% 1916630 200100 0 0

Open-End Index legal persons

Securities Investment

Fund

Strategic investors or general legal persons become the top 10

None.shareholders due to the placement of new shares

Notes on association among above-mentioned shareholders None.Description of the above shareholders' entrusted/entrusted voting

None.rights and waived voting rights

JMC Share Repurchase Special

Securities Account holds 8632078 A

A special description of the special repurchase account among the top

shares of the Company representing

10 shareholders

1% of the total 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

Ford Motor Company 276228394 B share

Hong Kong Securities Clearing Company Ltd. (HKSCC) 9520669 A share

Jin Xing 5327900 B share

Industrial and Commercial Bank of China Limited - Guolian

5028101 A share

Superior Industry Mixed Securities Investment Fund

China Merchants Securities (HK) Co. Ltd. 4619475 B share

Bank of China Limited - E Fund Hong Kong Stock Connect

Dividend Flexible Allocation Mixed Securities Investment 2907400 A share

Fund

China Merchants Bank Co. Ltd. - E Fund Value Return

2099400 A share

Mixed Securities Investment Fund

Industrial and Commercial Bank of China Limited - HTFTZ

2069224 A share

Intelligent Manufacturing Stock Securities Investment Fund

China Merchants Bank Co. Ltd. - China Southern CSI 1000

Exchange Traded Open-End Index Securities Investment 1916630 A share

Fund

Explanation of the association or concerted action between the top 10 unlimited tradable

shareholders and between the top 10 unlimited tradable shareholders and the top 10 None.shareholders

description of shareholders participating in financing and securities financing business None.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

62The 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.II. Controlling Shareholders

Nature of controlling shareholders: Central/Local government holdings foreign

holdings

Type: Legal person

Legal Establishe Organization

Name Main scope of business

representative d Date code

investment management industrial

Nanchang Jiangling May 28 91360125MA

Qiu Tiangao investment asset management

Investment Co. Ltd. 2019 38LUR91F

and other business.to design manufacture market

and service a full line of Ford cars

trucks sport utility vehicles

(“SUVs”) electrified vehicles and

Ford Motor William Clay January 1 Lincoln luxury vehicles provide

Company Ford Jr. 1903 financial services through Ford

Motor Credit Company LLC and

pursue leadership positions in

electrification autonomous

vehicles and mobility solutions.Equity status of other listed companies in domestic and abroad

market controlled and participated by the controlling shareholders None

during the reporting period

Change of controlling shareholders

□Applicable □Not Applicable

The controlling shareholders of the Company did not change during the reporting

period.III. Actual Controlling Parties

Nature of controlling shareholders: Central/Local State-owned Assets Supervision

and Administration

Type: Legal person

Legal Established Organization

Name Main scope of business

representative Date code

manufacturing of automobiles engines

chassis specialty vehicle transmission other

products automotive quality testing sales of

self-produced products and raw materials

equipment electronic products parts and

9136000015

JMCG Qiu Tiangao July 27 1991 others as well as related after-sales services

8263759R

and maintenance services; development of

products derived from JMC brand light

vehicle; overseas auto project-contracting

export equipment material and related labour

services.development manufacturing sales import &

Chongqing

export business of auto (including sedan)

Changan October 31 9150000020

Zhu Huarong engine automotive components die tools

Automobile 1996 286320X6

installation of machinery technological

Co. Ltd.consultant services among others.

63Equity status of listed companies in domestic and

abroad market controlled by the actual controlling None

parties during the reporting period

Change of actual controlling parties

□Applicable □Not Applicable

There was no change of actual controlling parties in the reporting period.Ownership and control relations between the Company and the actual controlling

parties are shown as follows:

SASAC

Nanchang State-owned Assets

Supervision and Administration

Committee

39.67%100%

Chongqing Changan Automobile Co. Ltd. JMCG

50%50%

Nanchang Jiangling Investment Co. Ltd. Ford Motor Company

41.03%32%

Jiangling Motors Co. Ltd.Actual controlling parties control the Company by the way of trust or other assets

management

□Applicable □Not Applicable

IV. The cumulative number of shares pledged by the controlling shareholder or the

largest shareholder and its acting partners accounts for 80% of the number of

shares held by them.□Applicable □Not Applicable

V. Other legal person shareholder holding more than 10% of total equity of the

Company

□Applicable □Not Applicable

VI Shareholding reducing restriction to controlling shareholders actual controlling

parties restructuring parties and other commitment-making entities

□Applicable □Not Applicable

4.The specific implementation of share repurchase during the reporting period

The implementation progress of share repurchase

□Applicable □Not Applicable

Plan disclosure date 2025.04.14

Proposed number of shares to be 6818.2 thousand shares – 9090.9

repurchased (shares) thousand shares

Proportion of total share capital 0.8%-1%

Proposed repurchase amount RMB 150 million - RMB 200 million

64Within 12 months after the Board of

Proposed repurchase period

Directors' approval

For employee stock ownership

Purpose of repurchase

plans or equity incentives

Number of shares repurchased (shares) 8632078

Proportion of repurchased shares to the

underlying shares involved in the equity Not applicable

incentive plan

The implementation progress of the reduction of the shares repurchase through

centralized bidding

□Applicable □Not Applicable

5. Preferred Shares

□Applicable □Not Applicable

JMC had no preferred shares in the reporting period.

65Chapter VII Bond related Information

□Applicable □Not Applicable

66Chapter VIII Financial Statements

Type of Audit Report Standard and Unqualified Opinion

Signature date March 27 2026

Name of Auditor Ernst & Young Hua Ming LLP

Document No. of Audit Report Ernst & Young Hua Ming (2026) Shen Zi

No. 70038404_V01

67JIANGLING MOTORS CORPORATION LTD.

FINANCIAL STATEMENTS AND

AUDITOR'S REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

[English translation for reference only. Should there be any inconsistency between the

Chinese and English versions the Chinese version shall prevail.]

68AUDITOR’S REPORT

Ernst & Young Hua Ming (2026) Shen Zi No. 70038404_V01

Jiangling Motors Corporation Ltd.To the board of directors of Jiangling Motors Corporation Ltd.(I) Opinion

We have audited the financial statements of Jiangling Motors Corporation Ltd. (the “Company”) which

comprise the consolidated and company balance sheets as at 31 December 2025 and the consolidated

and company income statements the consolidated and company statements of changes in equity and the

consolidated and company statements of cash flows for the year then ended and notes to the financial

statements.In our opinion the accompanying financial statements present fairly in all material respects the

consolidated and the Company’s financial position as at 31 December 2025 and the consolidated and

the Company’s financial performance and cash flows for the year then ended in accordance with

Accounting Standards for Business Enterprises (“ASBEs”).(II) Basis for opinion

We conducted our audit in accordance with China Standards on Auditing (“CSAs”). Our responsibilities

under those standards are further described in the Auditor’s responsibilities for the audit of the financial

statements section of our report. We are independent of the Company in accordance with the Chinese

CPA Independence Standard No. 1 — Requirements for Independence in Financial Statement Audit and

Review Engagements and the China Code of Ethics for Certified Public Accountants (the “Code”) and we

have fulfilled our other ethical responsibilities in accordance with the Code. We complied with the

independence requirements for audits of public interest entities during the audit. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.(III) Key audit matter

Key audit matters are those matters that in our professional judgement were of most significance in our

audit of the financial statements of the current period. These matters were addressed in the context of

our audit of the financial statements as a whole and in forming our opinion thereon and we do not provide

a separate opinion on these matters. For each matter below our description of how our audit addressed

the matter is provided in that context.We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial

statements section of our report including in relation to these matters. Accordingly our audit included the

performance of procedures designed to respond to our assessment of the risks of material misstatement

of the financial statements. The results of our audit procedures including the procedures performed to

address the matters below provide the basis for our audit opinion on the accompanying financial

statements.

69AUDITOR’S REPORT (continued)

Ernst & Young Hua Ming (2026) Shen Zi No. 70038404_V01

Jiangling Motors Corporation Ltd.(III) Key audit matter (Cont’d)

Key Audit Matter How our audit addressed Key Audit Matter

Expenditure on research and development

R&D expenditure in 2025 was The audit procedures we performed on expenditures on

RMB1490447935 of which research and development included:

RMB274444396 was capitalized

as R&D expenditure. As at 31 We understood and evaluated the design of internal

December 2025 the balance of controls related to expenditures on research and

development expenditure was development and tested the operation effectiveness of the

RMB57594483. key controls;

We obtained breakdown of expenditures on research and

We recognize R&D expenditure as development by project and reconciled them with amounts

a key audit matter because the recorded in general ledger;

R&D expenditure is significant We understood the cost allocation method of research and

part of which is capitalized and the development projects reviewed the results of allocation of

assessment of whether the indirect expenses and verified the reasonableness the

capitalization conditions are met indirect expenses attributable to relevant projects

involves significant accounting including payrolls depreciation and amortization

judgments from management expenses;

regarding the technical feasibility We compared costs components across different projects

of the project the likelihood that and incurred research and development costs with

the project will bring sufficient corresponding budgets and evaluated the progress of the

future economic benefits and the different projects by interviewing with project managers on

timing of the capitalization a sampling basis;

commencement. For projects which expenditures on research and

development were capitalised we understood the criteria

See notes 3(14) 5(18) and 5(48) to and timing of capitalisation determined by management;

the financial statements. we checked the feasibility reports of different projects and

interviewed with relevant project managers reviewed the

verification reports and meeting minutes at different

research and development stages to further confirm the

reasonableness of the judgment made by management;

and we assessed the technical feasibility of the

development projects and the likelihood of the generating

of sufficient future economic benefits by considering

market information and the Company's successful

development experience in the past;

We tested expenditures on research and development on

a sampling basis by obtaining and inspecting documents

including contracts and invoices to verify and evaluate the

relevance with research and development activities the

reality of occurrence the accuracy of amount and the

reasonableness of classification;

We reviewed and confirmed the relevant expenditure on

research and development has been sufficiently disclosed

in financial statement.

70AUDITOR’S REPORT (continued)

Ernst & Young Hua Ming (2026) Shen Zi No. 70038404_V01

Jiangling Motors Corporation Ltd.(IV) Other information

Management of Jiangling Motors is responsible for the other information. The other information comprises

all of the information included in 2025 annual report of Jiangling Motors other than the financial statements

and our auditor's report thereon.Our opinion on the financial statements does not cover the other information and we do not express any

form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other information

and in doing so consider whether the other information is materially inconsistent with the financial

statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatement of this other

information we are required to report that fact. We have nothing to report in this regarded.(V) Responsibilities of the management and those charged with governance for the financial

statements

The management of the Company is responsible for the preparation and fair presentation of the financial

statements in accordance with ASBEs and for designing implementing and maintaining such internal

control as the management determines is necessary to enable the preparation of financial statements that

are free from material misstatement whether due to fraud or error.In preparing the financial statements the management is responsible for assessing the Company’s ability

to continue as a going concern disclosing as applicable matters related to going concern and using the

going concern basis of accounting unless the management either intends to liquidate the Company or to

cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.(VI) Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are

free from material misstatement whether due to fraud or error and to issue an auditor’s report that

includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an

audit conducted in accordance with CSAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are generally considered material if individually or in the

aggregate they could reasonably be expected to influence the economic decisions of users taken on the

basis of these financial statements.

71AUDITOR’S REPORT (continued)

Ernst & Young Hua Ming (2026) Shen Zi No. 70038404_V01

Jiangling Motors Corporation Ltd.(VI) Auditor’s responsibilities for the audit of the financial statements (Cont’d)

As part of an audit in accordance with CSAs we exercise professional judgement and maintain

professional scepticism throughout the audit. We also:

(1) Identify and assess the risks of material misstatement of the financial statements whether due to

fraud or error design and perform audit procedures responsive to those risks and obtain audit

evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not

detecting a material misstatement resulting from fraud is higher than for one resulting from error

as fraud may involve collusion forgery intentional omissions misrepresentations or the override

of internal control.

(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures

that are appropriate in the circumstances but not for the purpose of expressing an opinion on the

effectiveness of internal control.

(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by the management.

(4) Conclude on the appropriateness of the management’s use of the going concern basis of

accounting and based on the audit evidence obtained whether a material uncertainty exists related

to events or conditions that may cast significant doubt on the Company’s ability to continue as a

going concern. If we conclude that a material uncertainty exists we are required to draw attention

in our auditor’s report to the related disclosures in the financial statements or if such disclosures

are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained

up to the date of our auditor’s report. However future events or conditions may cause the Company

to cease to continue as a going concern.

(5) Evaluate the overall presentation structure and content of the financial statements including the

disclosures and whether the financial statements represent the underlying transactions and events

in a manner that achieves fair presentation.

(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or

business activities within the Company to express an opinion on the financial statements. We are

responsible for the direction supervision and performance of the group audit. We remain solely

responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the planned scope

and timing of the audit and significant audit findings including any significant deficiencies in internal control

that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant

ethical requirements regarding independence and to communicate with them all relationships and other

matter's that may reasonably be thought to bear on our independence and where applicable related

safeguards.From the matters communicated with those charged with governance we determine those matters that

were of most significance in the audit of the financial statements of the current period and are therefore

the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes

public disclosure about the matter or when in extremely rare circumstances we determine that a matter

should not be communicated in our report because the adverse consequences of doing so would

reasonably be expected to outweigh the public interest benefits of such communication.

72AUDITOR’S REPORT (continued)

Ernst & Young Hua Ming (2026) Shen Zi No. 70038404_V01

Jiangling Motors Corporation Ltd.Ernst & Young Hua Ming LLP Chinese Certified Public Accountant: Terence Qiao

Chinese Certified Public Accountant: Derek Yuan

Beijing the People’s Republic of China 27 March 2026

73JIANGLING MOTORS CORPORATION LTD.

CONSOLIDATED AND COMPANY BALANCE SHEETS

AS AT 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

31 December 31 December 31 December 31 December

Notes 2025 2024 2025 2024

ASSETS

Consolidated Consolidated Company Company

Current assets

Cash and cash equivalents 5(1) 13582540346 12546295890 10966453363 9269593792

Financial assets held for trading 5(2) 801902466 - - -

Derivative financial assets 5(3) - 12612380 - 12612380

Notes receivable 5(4) - 226865 1500000000 1500226865

5(5)、Accounts receivable 6141405767 4181008234 6264582609 5521047573

15(1)

Financing receivables 5(6) 205851591 302065502 150902273 18070384

Advances to suppliers 5(7) 98624060 94749172 98624060 94749172

5(8)、Other receivables 134768377 54013240 134906584 144617207

15(2)

Inventories 5(9) 2011925708 2054517242 2008282424 2046549034

Current portion of non-current assets 5(11) 27153632 20784738 1631907 15161497

Other current assets 5(10) 1194944928 1228372977 956607104 777406955

Total current assets 24199116875 20494646240 22081990324 19400034859

Non-current assets

Long-term receivables 5(12) 71519964 18533908 - 1584891

5(13)、Long-term equity investments 203641921 219298031 654295851 771951961

15(3)

Fixed assets 5(14) 5789423822 5749474005 5065812739 5111224814

Construction in progress 5(15) 507614873 661911780 333295118 582757760

Right-of-use assets 5(16) 120243307 158485688 118037006 142207976

Intangible assets 5(17) 1790269138 1811454853 1584170614 1596623962

Development expenditures 5(18) 57594483 188103430 57594483 188103430

Goodwill 5(21) - - - -

Deferred tax assets 5(19) 980954002 1530144365 - -

Other non-current assets 5(20) 4912712 7860340 4912712 7860340

Total non-current assets 9526174222 10345266400 7818118523 8402315134

TOTAL ASSETS 33725291097 30839912640 29900108847 27802349993

74JIANGLING MOTORS CORPORATION LTD.

CONSOLIDATED AND COMPANY BALANCE SHEETS

AS AT 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

31 December 31 December 31 December 31 December

LIABILITIES AND EQUITY Notes 2025 2024 2025 2024

Consolidated Consolidated Company Company

Current liabilities

Short-term borrowings 5(22) 1950000000 1500000000 1500000000 1500000000

Derivative financial liabilities 5(3) 695349 - 695349 -

Notes payable 5(23) 427292904 - 427292904 -

Accounts payable 5(24) 11397760484 10061223944 11393769153 10047585502

Contract liabilities 5(25) 545864754 467704291 1315151000 536871795

Employee benefits payable 5(26) 729156434 780174574 646304675 672858988

Taxes payable 5(27) 132698441 265198389 121268279 256969632

Other payables 5(28) 5803694871 5739064167 2231605558 2130094497

Current portion of non-current liabilities 5(29) 91863024 86155114 89799585 81053594

Other current liabilities 5(30) 304431406 341548441 183977806 98829073

Total current liabilities 21383457667 19241068920 17909864309 15324263081

Non-current liabilities

Long-term borrowings 5(31) 460276 941453 460276 941453

Lease liabilities 5(32) 44860116 93752634 43797509 82241628

Provisions 5(33) 255436677 287165703 5561579 3553345

Deferred income 5(34) 13406177 61202010 13039843 61202010

Long-term employee benefits payable 5(35) 49853000 59342000 49674000 58991000

Deferred tax liabilities 5(19) 123918738 130301876 105804342 111616233

Other non-current liabilities 5(36) 461860038 370793523 - -

Total non-current liabilities 949795022 1003499199 218337549 318545669

Total liabilities 22333252689 20244568119 18128201858 15642808750

Equity

Share capital 5(37) 863214000 863214000 863214000 863214000

Capital surplus 5(38) 839442490 839442490 839442490 839442490

Less:Treasury shares 5(39) 170214887 - 170214887 -

Other comprehensive income 5(40) (23862000) (26388000) (24258000) (26738000)

Special reserve 5(41) 7860966 5371093 5783345 5147194

Surplus reserve 5(42) 431607000 431607000 431607000 431607000

Retained earnings 5(43) 9752190648 9179333271 9826333041 10046868559

Total equity attributable to

11700238217112925798541177190698912159541243

shareholders of the Company

Minority interests (308199809) (697235333) - -

Total equity 11392038408 10595344521 11771906989 12159541243

TOTAL LIABILITIES AND EQUITY 33725291097 30839912640 29900108847 27802349993

Legal representative: Qiu Tiangao CFO: Weihua Li Finance Department: Hu Hanfeng

75JIANGLING MOTORS CORPORATION LTD.

CONSOLIDATED AND COMPANY INCOME STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

2025202420252024

Item Notes

Consolidated Consolidated Company Company

Revenue 5(44)、15(4) 39169909929 38374160748 37858884526 37937081015

Less: Cost of sales 5(44)、15(4) (33851518907) (32951745144) (33306979297) (32466245873)

Taxes and surcharges 5(45) (1169905869) (1467445089) (1149453477) (1420441384)

Selling and distribution expenses 5(46) (899660536) (1058948593) (145280055) (109668687)

General and administrative expenses 5(47) (1050129082) (943622568) (967222169) (834480512)

Research and development expenses 5(48) (1216003539) (1314579423) (1216003539) (1314579423)

Financial expenses 5(49) 132096412 152310137 125129216 105404859

Including: Interest expenses (18280197) (20304855) (10397368) (19811045)

Interest income 164866232 198915297 144788938 150980757

Add: Other income 5(52) 583377975 514430051 578021129 512394471

Investment income 5(53)、15(5) (5686487) (942269) (7905202) (5236433)

Including: Share of loss of associates and

(15656110)(10363917)(15656110)(10363917)

joint ventures

Gains on changes in fair value 5(54) (7231516) 13071686 (9313221) 13071686

Credit impairment losses 5(51) (1910728) 9638212 (476945140) 6068224

Asset impairment losses 5(50) (349554195) (66600824) (922664466) (66600824)

Gains on disposal of assets 5(55) 61968391 3317046 64146027 3469920

Operating profit 1395751848 1263043970 424414332 2360237039

Add: Non-operating income 5(56) 4696937 5043793 1622167 3032110

Less: Non-operating expenses 5(57) (5314402) (9980157) (5305358) (7121776)

Total profit 1395134383 1258107606 420731141 2356147373

Less: Income tax expenses 5(58) (575761665) (52930797) (26658317) (296806600)

Net profit 819372718 1205176809 394072824 2059340773

Classified by continuity of operations

Net profit from continuing operations 819372718 1205176809 394072824 2059340773

Net profit from discontinued operations - - - -

Classified by ownership of the equity

Minority interests (368093001) (331962215) - -

Attributable to shareholders of the

118746571915371390243940728242059340773

Company

Other comprehensive income net of tax 2526000 (5816000) 2480000 (5759000)

Attributable to shareholders of the Company

Other comprehensive income items

which will not be reclassified to profit or

loss

Changes arising from remeasurement

5(40)2526000(5816000)2480000(5759000)

of defined benefit plan

Attributable to minority interests - - - -

Total comprehensive income 821898718 1199360809 396552824 2053581773

Attributable to shareholders of the

118999171915313230243965528242053581773

Company

Attributable to minority interests (368093001) (331962215) - -

Earnings per share

Basic earnings per share (RMB Yuan) 5(59) 1.38 1.78 —— ——

Diluted earnings per share (RMB Yuan) 5(59) 1.38 1.78 —— ——

Legal representative: Qiu Tiangao CFO: Weihua Li Finance Department: Hu Hanfeng

76JIANGLING MOTORS CORPORATION LTD.

CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

2025202420252024

Item Note

Consolidated Consolidated Company Company

Cash flows generated from operating activities

Cash received from sales of goods or rendering of

40518035470413518132443916242417339365760196

services

Refunds of taxes 300055222 263289557 300055222 263289557

Cash received relating to other operating activities 5(60) 539638048 329215516 477169456 225142211

Sub-total of cash inflows 41357728740 41944318317 39939648851 39854191964

Cash paid for goods and services (31635725091) (32088398075) (30368792074) (30904745276)

Cash paid to and on behalf of employees (2801582122) (2690580651) (2622880082) (2474503947)

Payments of taxes and surcharges (2497343017) (2668968974) (2470227125) (2466735213)

Cash paid relating to other operating activities 5(60) (2011167220) (1862986400) (1163215891) (1095294099)

Sub-total of cash outflows (38945817450) (39310934100) (36625115172) (36941278535)

Net cash flows generated from operating activities 5(61) 2411911290 2633384217 3314533679 2912913429

Cash flows used in investing activities

Cash received from disposal on investments 55000000 800000000 183363000 -

Cash received from returns of investments 264648 9035441 - 4136400

Net cash received from disposal of fixed assets intangible

46898025285370533854377422365729

assets and other long-term assets

Cash received relating to other investing activities 5(60) 164435257 218305076 125309812 158686106

Sub-total of cash inflows 266597930 1055877570 347216586 185188235

Cash paid to acquire fixed assets intangible assets and

(1088237558)(1810776307)(1075561680)(1811006047)

other long-term assets

Cash paid to acquire investments (855000000) (600000000) (97087000) (94113000)

Cash paid relating to other investing activities (783382) (4445964) (783382) (4445964)

Sub-total of cash outflows (1944020940) (2415222271) (1173432062) (1909565011)

Net cash flows used in investing activities (1677423010) (1359344701) (826215476) (1724376776)

Cash flows generated from/(used in) financing activities

Cash received from absorbing investments 752534436 - - -

Including: cash received by the subsidiary from absorbing

752534436---

minority shareholders' investment

Cash received from borrowings 4879157250 3078140000 3945540555 2992390000

Sub-total of cash inflows 5631691686 3078140000 3945540555 2992390000

Cash repayments of borrowings (4521974413) (2813318287) (3950474413) (2813318287)

Cash payments for distribution of dividends profits or

(622714287)(599144621)(617404600)(599144621)

interest expenses

Cash paid relating to other financing activities 5(60) (205513075) (211059214) (200828585) (203163964)

Sub-total of cash outflows (5350201775) (3623522122) (4768707598) (3615626872)

Net cash flows generated from/(used in) financing

281489911(545382122)(823167043)(623236872)

activities

Effect of foreign exchange rate changes on

----

cash and cash equivalents

Net increase in cash and cash equivalents 5(61) 1015978191 728657394 1665151160 565299781

Add: Cash and cash equivalents at beginning of year 5(61) 12475176009 11746518615 9214091023 8648791242

Cash and cash equivalents at end of year 5(61) 13491154200 12475176009 10879242183 9214091023

Legal representative: Qiu Tiangao CFO: Weihua Li Finance Department: Hu Hanfeng

77JIANGLING MOTORS CORPORATION LTD.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

(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 2024 863214000 839442490 - (20572000) 3821625 431607000 8232632623 (365273118) 9984872620

Movements for the year ended 31 December 2024 - - - (5816000) 1549468 - 946700648 (331962215) 610471901

Total comprehensive income

Net profit/(loss) - - - - - - 1537139024 (331962215) 1205176809

Other comprehensive income - - - (5816000) - - - - (5816000)

Total comprehensive income for the year - - - (5816000) - - 1537139024 (331962215) 1199360809

Profit distribution

Distribution to shareholders 5(43) - - - - - - (590438376) - (590438376)

Special reserves

Withdrawal this year - - - - 29631611 - - - 29631611

Used this year - - - - (28082143) - - - (28082143)

Balance at 31 December 2024 863214000 839442490 - (26388000) 5371093 431607000 9179333271 (697235333) 10595344521

Balance at 1 January 2025 863214000 839442490 - (26388000) 5371093 431607000 9179333271 (697235333) 10595344521

Movements for the year ended 31 December 2025 - - 170214887 2526000 2489873 - 572857377 389035524 796693887

Total comprehensive income

Net profit/(loss) - - - - - - 1187465719 (368093001) 819372718

Other comprehensive income - - - 2526000 - - - - 2526000

Total comprehensive income for the year - - - 2526000 - - 1187465719 (368093001) 821898718

Capital contributed by owners and capital decreases

Capital invested by shareholders - - - - - - - 757128525 757128525

Share Repurchase 5(39) - - 170214887 - - - - (170214887)

Profit distribution

Distribution to shareholders 5(43) - - - - - - (614608342) - (614608342)

Special reserve

Withdrawal this year - - - - 28341840 - - - 28341840

Used this year - - - - (25851967) - - - (25851967)

Balance at 31 December 2025 863214000 839442490 170214887 (23862000) 7860966 431607000 9752190648 (308199809) 11392038408

Legal representative: Qiu Tiangao CFO: Weihua Li Finance Department: Hu Hanfeng

78JIANGLING MOTORS CORPORATION LTD.

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

(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 2024 863214000 839442490 - (20979000) 3821625 431607000 8577966162 10695072277

Movements for the year ended 31 December 2024 - - - (5759000) 1325569 - 1468902397 1464468966

Total comprehensive income

Net profit - - - - - - 2059340773 2059340773

Other comprehensive income - - - (5759000) - - - (5759000)

Total comprehensive income for the year - - - (5759000) - - 2059340773 2053581773

Profit distribution

Distribution to shareholders 5(43) - - - - - - (590438376) (590438376)

Special reserve

Withdrawal this year - - - - 29407712 - - 29407712

Used this year - - - - (28082143) - - (28082143)

Balance at 31 December 2024 863214000 839442490 - (26738000) 5147194 431607000 10046868559 12159541243

Balance at 1 January 2025 863214000 839442490 - (26738000) 5147194 431607000 10046868559 12159541243

Movements for the year ended 31 December 2025 - - 170214887 2480000 636151 - (220535518) (387634254)

Total comprehensive income

Net profit - - - - - - 394072824 394072824

Other comprehensive income - - - 2480000 - - - 2480000

Total comprehensive income for the year - - - 2480000 - - 394072824 396552824

Capital contributed by owners and capital

decreases

Share Repurchase 5(39) - - 170214887 - - - - (170214887)

Profit distribution

Distribution to shareholders 5(43) - - - - - - (614608342) (614608342)

Special reserve

Withdrawal this year - - - - 26488118 - - 26488118

Used this year - - - - (25851967) - - (25851967)

Balance at 31 December 2025 863214000 839442490 170214887 (24258000) 5783345 431607000 9826333041 11771906989

Legal representative: Qiu Tiangao CFO: Weihua Li Finance Department: Hu Hanfeng

79JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

1 General information

Jiangling Motors Corporation Ltd. (hereinafter “the Company”) is a Sino-foreign joint stock

enterprise established under the approval of Hong ban (1992) No. 005 of Nanchang

Revolution and Authorisation Group of Company’s Joint Stock on the basis of Jiangxi Motors

Manufacturing Factory on 16 June 1992. The address of its headquarters is Nanchang City

Jiangxi Province of the People’s Republic of China (“the PRC”).On 23 July 1993 with the approval of the China Securities Regulatory Commission

(hereinafter “CSRC”) (Zheng Jian Fa Shen Zi [1993] No. 22) and (Zheng Jian Han Zi [1993]

No. 86) the Company was listed on the Stock Exchange of Shenzhen on 1 December 1993

issuing 494000000 shares in total. On 8 April 1994 a total of 25214000 shares were

distributed for the 1993 dividend distribution programme with the approval of the

shareholders’ meeting and Jiangxi Securities Management Leading Group (Gan Securities

[1994] No. 02). In 1995 with the approval of CSRC (Zheng Jian Fa Zi [1995] No. 144) and

the Shenzhen Securities Management Office (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(37).As at 31 December 2025 the Company’s paid-in capital totalled RMB863214000 with par

value of RMB1 per share.The actual principal business scope of the Company and its subsidiaries (hereinafter “theGroup”) includes production and sales of automobile assemblies such as automobiles

special (modified) vehicles engines and chassis and other automobile parts and provision

of related after-sales services; 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 27 March 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.

80JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates

The Group determines specific accounting policies and estimates based on the features of

its production and operation which mainly comprise the measurement of expected credit

losses on receivables valuation of inventories Inventory write-down provision depreciation

of fixed assets and amortisation of intangible assets and right-of-use assets criteria for

capitalisation of development expenditures impairment of long-term assets recognition

and measurement of revenue and government grants etc.

(1) Statement of compliance with the Accounting Standards for Business Enterprises

The financial statements of the Company for the year ended 31 December 2025 are in

compliance with the Accounting Standards for Business Enterprises and truly and

completely present the consolidated and company’s financial position of the Company as

at 31 December 2025 and their financial performance cash flows and other information for

the year 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.

81JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(5) Preparation of consolidated financial statements

The scope of consolidation of the consolidated financial statements is determined on a

control basis including the financial statements of the Company and all of its subsidiaries."Subsidiary" refers to the entity controlled by the Company (including the divisible part of

the enterprise and the investee as well as the structured entity controlled by the Company

etc.). An investor can control an investee if and only if the investor has the following three

elements: the investor has authority over the investee; Variable returns for participation in

the investee's related activities; Ability to use power over the investee to influence the

amount of its return.If the accounting policies or accounting periods adopted by the subsidiary are inconsistent

with those adopted by the Company the financial statements of the subsidiary shall be

adjusted as necessary in accordance with the accounting policies and accounting periods

of the Company when preparing the consolidated financial statements. The assets

liabilities equity revenues expenses and cash flows arising from all transactions between

companies within the Group are fully offset at the time of the consolidation.If the current loss shared by the minority shareholders of the subsidiary exceeds the share

of the minority shareholders in the shareholders' equity at the beginning of the period the

balance shall still be offset against the minority shareholders' equity.For subsidiaries acquired through a business combination not under common control the

operating results and cash flows of the acquiree are included in the consolidated financial

statements from the date on which the Group acquires control until the termination of the

Group's control over them. In preparing the consolidated financial statements the financial

statements of subsidiaries are adjusted on the basis of the fair value of the identifiable

assets liabilities and contingent liabilities determined at the date of acquisition.For subsidiaries acquired through a business combination under the same control the

operating results and cash flows of the consolidated party are included in the consolidated

financial statements from the beginning of the current period of consolidation. When

compiling the comparative consolidated financial statements the relevant items of the

previous financial statements are adjusted to be deemed to have existed since the ultimate

controller began to exercise control.If changes in relevant facts and circumstances result in a change in one or more of the

control elements the Group will reassess whether to control the investee.Without loss of control a change in minority shareholders' interests is treated as an equity

transaction.

82JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(6) Cash and cash equivalents

Cash comprises the Group’s cash on hand and deposits that can be readily withdrawn on

demand. Cash equivalents are short-term highly liquid investments that are readily

convertible into known amounts of cash subject to an insignificant risk of changes in value.

(7) Foreign currency translation

The Group translates foreign currency transactions into its functional currency.At the time of initial recognition of a foreign currency transaction the amount in the foreign

currency is converted into the base currency of account using the spot exchange rate on

the date of the transaction but the capital invested by the investor in the foreign currency is

converted at the spot exchange rate on the date of the transaction. At the balance sheet

date the spot exchange rate at the balance sheet date is used for foreign currency monetary

items. The resulting differences in settlement and translation of monetary items shall be

included in profit or loss for the current period except for the differences arising from special

foreign currency borrowings related to the acquisition and construction of assets eligible for

capitalization which shall be treated in accordance with the principle of capitalization of

borrowing costs. Foreign currency non-monetary items measured at historical cost are still

translated using the exchange rate used at the time of initial recognition and the amount in

the base currency of accounting remains unchanged. Foreign currency non-monetary items

measured at fair value are translated at the spot exchange rate on the date of fair value

determination and the resulting difference is recognized in profit or loss or other

comprehensive income for the current period according to the nature of the non-monetary

items.Cash flows in foreign currencies are translated using the spot exchange rate on the date of

the cash flows. The effect of exchange rate changes on cash is presented separately in the

statement of cash flows as a reconciliation item.

(8) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a

financial liability or equity instrument of another entity. A financial asset or a financial liability

is recognised when the Group becomes a party to the contractual provisions of the

instrument.

83JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(8) Financial instruments (Cont’d)

(a) Recognition and derecognition of financial instruments

The Group recognises a financial asset or financial liability when it becomes a party to a

contract for a financial instrument.If the following conditions are met the financial assets (or part of the financial assets or

part of a group of similar financial assets) shall be derecognized that is the previously

recognized financial assets shall be transferred out of the balance sheet:

(1) Expiration of the right to receive cash flows from financial assets;

(2) transferred the right to receive cash flows from financial assets or assumed an obligation

under a "transfer agreement" to promptly pay the cash flows received in full to a third party;

and substantially transfers substantially all of the risks and rewards of ownership of a

financial asset or while substantially neither transferring nor retaining substantially all of

the risks and rewards of ownership of a financial asset but relinquishes control of that

financial asset.If the obligation for the financial liability has been fulfilled cancelled or expired the financial

liability is derecognized. If an existing financial liability is replaced by another financial

liability by the same creditor with substantially almost entirely different terms or the terms

of the existing liability are substantially all modified such replacement or modification is

treated as a derecognition of the original liability and recognition of a new liability the

difference in profit or loss for the current period.The purchase and sale of financial assets in the conventional way is recognized and

derecognized according to the accounting of the transaction date. The purchase or sale of

financial assets in a conventional manner means the purchase or sale of financial assets in

accordance with a contract that provides for the delivery of financial assets in accordance

with a schedule normally determined by regulations or market practice. A trading day is the

date on which the Group commits to buy or sell a financial asset.(b) Classification and measurement of financial assets

At the time of initial recognition the Group's financial assets are classified according to the

Group's business model of managing financial assets and the contractual cash flow

characteristics of financial assets: financial assets measured at amortized cost investments

in debt instruments measured at fair value through other comprehensive income and

financial assets measured at fair value through profit or loss. All affected underlying financial

assets will be reclassified if and only when the Group changes its business model for

managing financial assets.Financial assets are measured at fair value at the time of initial recognition but if the

accounts receivable or notes receivable arising from the sale of goods or the provision of

services etc. do not contain a material financing component or do not consider the

financing component of no more than one year the initial measurement shall be carried out

according to the transaction price.For financial assets measured at fair value through profit or loss the relevant transaction

costs are directly recognized in the current profit or loss and the transaction costs related

to other types of financial assets are included in the initial recognition amount.

84JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(8) Financial instruments (Cont’d)

(b) Classification and measurement of financial assets (Cont’d)

The subsequent measurement of a financial asset depends on its classification:

Investments in debt instruments measured at amortized cost

If a financial asset meets the following conditions at the same time it is classified as a

financial asset measured at amortized cost: the business model for managing the financial

asset is to collect contractual cash flows as the goal; The contractual terms of the financial

asset provide that the cash flows generated on a specific date are only payments of principal

and interest based on the amount of principal not paid. Interest income is recognized using

the effective interest rate method for such financial assets and the gains or losses arising

from their derecognition modification or impairment are included in profit or loss for the

current period.Investments in debt instruments at fair value through other comprehensive income

A financial asset is classified as a financial asset measured at fair value through other

comprehensive income if it meets the following conditions: the Group's business model for

managing the financial asset is to collect both contractual cash flows and sell financial

assets; The contractual terms of the financial asset provide that the cash flows generated

on a specific date are only payments of principal and interest based on the amount of

principal not paid. Interest income is recognized for such financial assets using the effective

interest rate method. Except for interest income impairment losses and foreign exchange

differences which are recognized as gains or losses for the current period the remaining

fair value changes are recognized as other comprehensive income. When a financial asset

is derecognized the accumulated gains or losses previously included in other

comprehensive income are transferred out of other comprehensive income and included in

profit or loss for the current period.Financial assets at fair value through profit or loss

The above-mentioned financial assets measured at amortized cost and financial assets

other than those measured at fair value through other comprehensive income are classified

as financial assets measured at fair value through profit or loss. For such financial assets

fair value is used for subsequent measurement and all changes in fair value are recognized

in profit or loss for the current period.(c) Classification and measurement of financial liabilities

At the time of initial recognition the Group's financial liabilities are classified as follows:

financial liabilities at fair value through profit or loss and financial liabilities at amortized

cost. For financial liabilities measured at fair value through profit or loss the relevant

transaction expenses are directly recognized in the current profit or loss and the relevant

transaction costs of the financial liabilities measured at amortized cost are included in their

initial recognition amount.The subsequent measurement of financial liabilities depends on their classification:

85JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(8) Financial instruments (Cont’d)

(c) Classification and measurement of financial liabilities (Cont’d)

Financial liabilities at fair value through profit or loss

Financial liabilities measured at fair value through profit or loss including trading financial

liabilities (including derivatives that are financial liabilities) and financial liabilities designated

at fair value through profit or loss at the time of initial recognition. Trading financial liabilities

(including derivatives that are financial liabilities) are subsequently measured at fair value

and all changes in fair value are recognized in profit or loss for the current period except in

relation to hedge accounting. For financial liabilities designated as measured at fair value

through profit or loss subsequent measurement is carried out at fair value and other fair

value changes are included in profit or loss for the current period except for the fair value

changes caused by changes in the Group's own credit risk which are included in other

comprehensive income. If the inclusion of changes in fair value caused by changes in the

Group's own credit risk into other comprehensive income would cause or magnify the

accounting mismatch in profit or loss the Group will include all changes in fair value (including

the amount affected by changes in its own credit risk) in profit or loss for the current period.Financial liabilities measured at amortized cost

For such financial liabilities the effective interest rate method is used and the subsequent

measurement is carried out according to the amortized cost.(d) Impairment of financial instruments

Methods for determining expected credit losses and accounting treatment methods

The Group conducts impairment treatment and recognizes loss provisions for financial assets

measured at amortized cost debt instrument investments measured at fair value with

changes recognized in other comprehensive income and lease receivables based on

expected credit losses.For receivables that do not contain significant financing components the Group applies a

simplified measurement method to measure the loss provision based on the expected credit

loss amount equivalent to the entire duration of the receivable.For lease receivables and receivables that contain significant financing components the

Group has chosen to apply a simplified measurement approach measuring the loss provision

based on the expected credit loss amount equivalent to the entire duration of the receivable.Apart from the aforementioned simplified measurement methods for financial assets the

Group assesses at each reporting date whether the credit risk has significantly increased

since initial recognition. If the credit risk has not significantly increased since initial

recognition it is classified as Stage 1 and the Group measures the loss allowance at an

amount equal to the expected credit losses over the next 12 months calculating interest

income based on the carrying amount and the effective interest rate. If the credit risk has

significantly increased since initial recognition but no credit impairment has occurred it is

classified as Stage 2 and the Group measures the loss allowance at an amount equal to

the expected credit losses over the entire lifetime calculating interest income based on the

carrying amount and the effective interest rate. If credit impairment occurs after initial

recognition it is classified as Stage 3 and the Group measures the loss allowance at an

amount equal to the expected credit losses over the entire lifetime calculating interest

income based on amortized cost and the effective interest rate. For financial instruments

that have only low credit risk at the reporting date the Group assumes that the credit risk

has not significantly increased since initial recognition.

86JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(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.

87JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(8) Financial instruments (Cont’d)

(f) Derivative financial instruments

The Group uses derivative financial instruments. Derivative financial instruments are initially

measured at the fair value on the date of the signing of the derivative transaction contract

and subsequently measured at their fair value. A derivative financial instrument with a positive

fair value is recognized as an asset and a negative fair value is recognized as a liability.Except in relation to hedge accounting gains or losses arising from changes in the fair value

of derivatives are directly recognized in profit or loss for the current period.(g) Transfer of financial assets

If the Group has transferred almost all of the risks and rewards in the ownership of financial

assets to the transferee the recognition of such financial assets shall be terminated; Where

almost all of the risks and rewards in the ownership of financial assets are retained the

recognition of the financial assets shall not be terminated.If the Group neither transfers nor retains almost all of the risks and rewards in the ownership

of the financial assets it shall be dealt with in the following cases: if it has relinquished control

of the financial assets the financial assets shall be terminated and the assets and liabilities

arising therefrom shall be recognized; If the financial asset is not relinquished the relevant

financial asset shall be recognized according to the extent to which it continues to be involved

in the transferred financial asset and the relevant liabilities shall be recognized accordingly.

(9) Inventories

Inventory includes raw materials work-in-progress finished products low-value

consumables materials in transit and consignment materials.Inventory is initially measured at cost. Inventory costs include procurement costs processing

costs and other costs. Inventories are issued and their actual cost is determined using the

weighted average method. Low-value consumables are amortized using the one-time resale

method.The inventory system adopts a perpetual inventory system.At the balance sheet date inventories are measured at the lower of cost and net realizable

value and if the cost is higher than the net realizable value a provision for inventory decline

is made and included in profit or loss for the current period. Net realizable value is the

estimated selling price of inventory in the ordinary course of business less the estimated

costs to be incurred at completion estimated selling expenses and related taxes. Inventories

related to product lines manufactured and sold in the same region with the same or similar

end use or purpose and difficult to measure separately from other items are provided for

inventory decline on a consolidated basis.

88JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(10) Long-term equity investments

Long-term equity investments comprise the Company’s long-term equity investments in its

subsidiaries and the Group’s long-term equity investments in its associates.Long-term equity investments are initially measured at the initial investment cost at the time

of acquisition. For a long-term equity investment obtained through a business combination

under the same control the initial investment cost shall be the share of the carrying amount

of the owner's equity of the merged party in the consolidated financial statements of the

ultimate controlling party on the date of consolidation; The difference between the initial

investment cost and the carrying amount of the consolidation consideration shall be

adjusted to the capital reserve (if it is insufficient to offset the retained earnings). For long-

term equity investments obtained through a business combination not under common

control the initial investment cost shall be the cost of the merger (if the business

combination of enterprises not under the same control is realized step by step through

multiple transactions the sum of the carrying amount of the equity investment of the

acquiree held before the purchase date and the cost of the new investment on the purchase

date shall be the initial investment cost). For long-term equity investments obtained by

means other than those formed by business combinations the initial investment costs shall

be determined in accordance with the following methods: if they are obtained by paying

cash the initial investment costs shall be the purchase price actually paid and the expenses

taxes and other necessary expenses directly related to the acquisition of the long-term

equity investment; If the issuance of equity securities is obtained the fair value of the equity

securities issued shall be used as the initial investment cost.The long-term equity investments that the Company is able to control the investee are

accounted for using the cost method in the Company's individual financial statements.Control refers to having power over the investee enjoying variable returns by participating

in the relevant activities of the investee and having the ability to use the power over the

investee to influence the amount of returns.

89JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(10) Long-term equity investments (Cont’d)

When the cost method is used long-term equity investments are valued at the initial

investment cost. If the investment is increased or recovered the cost of long-term equity

investment shall be adjusted. The cash dividends or profits declared by the investee are

recognized as investment income for the current period.If the Group has a significant influence on the investee the long-term equity investment is

accounted for by the equity method. Significant influence refers to having the power to

participate in decision-making on the financial and operational policies of the investee but

not being able to control or jointly control the formulation of these policies with other parties.When the equity method is adopted if the initial investment cost of a long-term equity

investment is greater than the fair value share of the investee's identifiable net assets at the

time of investment it shall be included in the initial investment cost of the long-term equity

investment; If the initial investment cost of a long-term equity investment is less than the fair

value share of the investee's identifiable net assets at the time of investment the difference

shall be included in the profit or loss for the current period and the cost of the long-term

equity investment shall be adjusted at the same time.When the equity method is adopted after the long-term equity investment is obtained the

investment profit and loss and other comprehensive income shall be recognized separately

and the book value of the long-term equity investment shall be adjusted according to the

share of the net profit or loss and other comprehensive income realized by the investee that

should be enjoyed or shared. When recognizing the share of the investee's net profit or loss

the investee's net profit shall be recognized after adjustment based on the fair value of the

investee's identifiable assets at the time of acquisition of the investment in accordance with

the Group's accounting policies and accounting periods and offsetting the share attributable

to the investor in proportion to the internal transaction gains and losses incurred with

associates (except that if the internal transaction loss is an asset impairment loss it shall

be recognized in full) and the net profit of the investee shall be recognized after adjustment

except that the assets invested or sold constitute business. The carrying amount of the long-

term equity investment shall be reduced accordingly based on the profits or cash dividends

declared by the investee. The Group recognises that the net loss incurred by the investee

is limited to the carrying amount of the long-term equity investment and other long-term

equity that substantially constitutes a net investment in the investee to be written down to

zero unless the Group has the obligation to bear additional losses. For other changes in

shareholders' equity of the investee other than net profit or loss other comprehensive

income and profit distribution the book value of long-term equity investment shall be

adjusted and included in shareholders' equity.

90JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(11) Fixed assets

Fixed assets are recognised only when the economic benefits associated with them are

likely to flow into the Group and their costs can be reliably measured. Subsequent expenses

related to fixed assets that meet the recognition conditions shall be included in the cost of

fixed assets and the book value of the replaced part shall be derecognized; Otherwise it

will be included in the current profit or loss or the cost of related assets according to the

beneficiary object when it occurs.Fixed assets are initially measured at cost. The cost of acquiring a fixed asset includes the

purchase price relevant taxes and other expenses directly attributable to the asset incurred

before the fixed asset reaches its intended useable state.The depreciation of fixed assets is calculated using the average life method and the useful

life estimated net residual value rate and annual depreciation rate of various types of fixed

assets are as follows:

Estimated net

residual Annual depreciation

Estimated useful lives values rates

Buildings 35 to 40 years 4% 2.4% to 2.7%

Machinery and

equipment 10 to 15 years 4% 6.4% to 9.6%

Vehicles 2 to 10 years 4% to 20% 9.6% to 40%

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.

91JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(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

92JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(14) Intangible assets (Cont’d)

(b) Research and development

The Group's R&D expenditure mainly includes the materials used by the Group in carrying

out R&D activities the remuneration of employees in the R&D department the depreciation

and amortization of assets such as equipment and software used in R&D R&D design

expenses and R&D testing.The expenses in the planned investigation evaluation and selection stages for the study of

the production process of automobile-related products are the expenses in the research

stage and are included in the profit or loss for the current period when incurred; Before

large-scale production the expenditure in the design and testing stages related to the final

application of the production process of automobile-related products is the expenditure in

the development stage and if the following conditions are met it shall be capitalized:

* The development of the production process of automobile-related products has been

fully demonstrated by the technical team;

* The management has the intention to complete the development use or sale of the

production process of automotive-related products;

* The research and analysis of the preliminary market research shows that the products

produced by the production process of automobile-related products have the ability to

be marketed;

* Sufficient technical and financial support for the development of production processes

for automotive-related products and subsequent large-scale production; and

* Expenditures on the development of production processes for automotive-related

products can be reliably aggregated.Expenses in the development stage that do not meet the above conditions shall be included

in the profit or loss for the current period when incurred. Development expenditures that have

been recognized in profit or loss in prior periods are not rerecognized as assets in

subsequent periods. Expenditures incurred in the development phase that have been

capitalized are shown on the balance sheet as development expenditures and are converted

into intangible assets from the date on which the project reaches its intended use.

93JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(15) Impairment of assets

The impairment of assets other than inventories deferred income tax and financial assets

shall be determined according to the following methods: whether there are signs of possible

impairment of assets at the balance sheet date and if there are signs of impairment the

Group will estimate the recoverable amount and conduct impairment tests; Impairment tests

shall be carried out at least at the end of each 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.

94JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(16) Employee compensation

Employee remuneration refers to various forms of remuneration or compensation given by

the Group for the services provided by employees or for the termination of employment

relations including short-term remuneration post-employment benefits and severance

benefits.(a) Short-term compensation

Short-term remuneration includes wages bonuses allowances and subsidies employee

welfare expenses medical insurance premiums work-related injury insurance premiums

housing provident fund trade union and education funds short-term paid absences etc.During the accounting period in which employees provide services the Group recognises

the actual short-term remuneration as a liability and includes it in the profit or loss for the

current period or the cost of related assets. Among them non-monetary benefits are

measured at fair value.(b) Post-employment benefits

The Group classifies post-employment benefit plans into defined contribution plans and

defined benefit plans. A defined deposit and withdrawal plan is a post-employment benefit

plan in which the Group is no longer obligated to make further payments after depositing a

fixed fee into an independent fund; A defined benefit plan is a post-employment benefit plan

in addition to a defined contribution plan. During the reporting period the basic endowment

insurance and unemployment insurance paid for employees were all part of the set deposit

plan. Supplemental retirement benefits for employees are defined benefit plans.(i) Defined contribution plans

Basic pensions

The Group’s employees participate in the basic pension plan set up and administered by

local authorities of Ministry of Human Resources and Social Security. Monthly payments of

premiums on the basic pensions are calculated according to the bases and percentage

prescribed by the relevant local authorities. When employees retire the relevant local

authorities are obliged to pay the basic pensions to them. The amounts based on the above

calculations are recognised as liabilities in the accounting period in which the service has

been rendered by the employees with a corresponding charge to the profit or loss for the

current period or the cost of relevant assets.

95JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(16) Employee compensation (Cont’d)

(ii) Defined benefit plans

The Group also provides employees with supplementary retirement benefits in addition to

the insurance system prescribed by the State. Such supplementary retirement benefits

belong to defined benefit plans. The defined benefit liabilities recognised on the balance

sheet represent the present value of defined benefit obligations less the fair value of the plan

assets. The defined benefit obligations are calculated annually by an independent actuary

using projected unit credit method at the interest rate of treasury bonds with similar obligation

term and currency. Service costs related to supplementary retirement benefits (including

current service costs historical service costs and settled gains or losses) and net interest

are recognised in profit or loss for the current period or the cost of related assets and

changes arising from remeasurement of net liabilities or net assets of defined benefit plans

are recognised in other comprehensive income.(c) Termination benefits

The Group provides compensation for terminating the employment relationship with

employees before the end of the employment contracts or as an offer to encourage

employees to accept voluntary redundancy before the end of the employment contracts. The

Group recognises a liability arising from compensation for termination of the employment

relationship with employees with a corresponding charge to profit or loss for the current

period at the earlier of the following dates: 1) when the Group cannot unilaterally withdraw

an employment termination plan or a curtailment proposal; 2) when the Group recognises

costs or expenses for a restructuring that involves the payment of termination benefits.Internal retirement benefits

The Group provides internal retirement benefits to employees who have received internal

retirement arrangements. Internal retirement benefits refer to the wages paid and social

insurance premiums paid to employees who have not reached the retirement age prescribed

by the state and who have voluntarily quit their jobs with the approval of the Group's

management. The Group pays internal retirement benefits to employees from the date of

commencement of the internal retirement arrangement until the employees reach the normal

retirement age. For the internal retirement benefits the Group will account for the retirement

benefits by comparison and when the conditions for the recognition of the retirement

benefits are met the wages and social insurance premiums to be paid by the employees

during the period from the date of cessation of the employee's services to the normal

retirement date will be recognized as liabilities and included in the profit or loss for the current

period in a lump sum. Changes in actuarial assumptions for retirement benefits and

differences caused by adjustments to benefit standards are recognized in profit or loss for

the current period when they occur.Severance benefits expected to be paid within one year from the balance sheet date are

shown as remuneration payable to employees.

96JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(17) Provisions

Provisions for product warranties compensation to suppliers etc. are recognised when the

Group has a present obligation it is probable that an outflow of economic benefits will be

required to settle the obligation and the amount of the obligation can be measured reliably.A provision is initially measured at the best estimate of the expenditure required to settle

the related present obligation. Factors on a contingency such as the risks uncertainties

and the time value of money are taken into account as a whole in reaching the best estimate

of a provision. Where the effect of the time value of money is material the best estimate is

determined by discounting the related future cash outflows. The increase in the discounted

amount of the provision arising from passage of time is recognised as interest expense.The carrying amount of provisions is reviewed at each balance sheet date and adjusted to

reflect the current best estimate.The provisions expected to be settled within one year since the balance sheet date are

classified as other current liabilities.

(18) Revenue

The Group sells automobiles and automobile parts to distributors or end customers. In

addition the Group also provides customers with auto maintenance and additional quality

warranty services. The Group recognises revenue at the amount of the consideration that

is entitled to be charged by the Group as expected when the customer obtains control over

relevant goods or services.Where two or more obligations are included in a contract between the Group and the

customers at the beginning date of the contract the Group allocates the transaction price

to individual obligation in the relative proportion to the individual selling prices of products

or services committed in each individual obligation. When the individual selling price is

unobservable the Group makes reasonable estimates on the individual selling price with

comprehensive consideration to all available information and by using market adjustment

method cost plus method etc.(a) Sale of automobiles and automobile parts to distributors and end customers

The Group sells automobiles and automobile parts to distributors and end customers.According to the contract the delivery is completed after the products are delivered at the

contracted delivery location and acceptance by both parties. The Group recognises the

revenue at the timing of delivery completion.The credit periods granted by the Group to distributors and end customers are generally

within one year which is consistent with the industry practice and there is no significant

financing component. The Group provides product warranties for automobiles and

automobile parts as required by laws and regulations and recognises the corresponding

provisions (Note 3(17)).The Group provides distributors and end customers with sales discounts based on sales

volume and related revenue is recognised at contract consideration net of the discount

amount estimated based on historical experience and using the expected value method.

97JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(18) Revenue (Cont’d)

(b) Rendering of services

The Group provides customers with automobile transportation automobile maintenance

and additional quality warranty services and the revenue is recognised based on the

progress of service provision within a certain period. According to the nature of the service

provided the performance progress is determined in accordance with the value of the labour

provided to the customer.When the Group recognises revenue based on the stage of completion the amount with

unconditional collection right obtained by the Group is recognised as accounts receivable

and the rest is recognised as contract assets. Meanwhile loss provision for accounts

receivable is recognised on the basis of ECL (Note 3(8)). If the contract price received or

receivable exceeds the amount for the completed service the excess portion will be

recognised as contract liabilities. Contract assets and contract liabilities under the same

contract are presented on a net basis.

(19) Government grants

Government subsidies are recognized when the conditions attached to them can be met and

can be received. If the government subsidy is a monetary asset it shall be measured

according to the amount received or receivable. If the government subsidy is a non-monetary

asset it shall be measured at fair value; If the fair value cannot be reliably obtained it shall

be measured according to the nominal amount.If the government documents stipulate that it is used for the acquisition construction or other

formation of long-term assets it shall be regarded as a government subsidy related to the

assets; If the government documents are not clear the judgment shall be made on the basis

of the basic conditions that must be met to obtain the subsidy and the basic condition of the

formation of long-term assets through acquisition construction or other means shall be

regarded as the government subsidy related to the assets and the other shall be regarded

as the government subsidy related to the income.If the government subsidy related to the income is used to compensate for the relevant costs

expenses or losses in subsequent periods it shall be recognized as deferred income and

shall be included in the profit or loss for the current period or offset the relevant costs in the

period in which the relevant costs expenses or losses are recognized; If it is used to

compensate for the relevant costs expenses or losses that have been incurred it shall be

directly included in the profit or loss for the current period or offset the relevant costs.

98JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(19) Government grants (Cont’d)

Asset-related government subsidies to offset the carrying amount of the underlying assets;

or recognized as deferred income which shall be included in profit or loss in instalments in

a reasonable and systematic manner during the useful life of the relevant asset (except that

the government subsidy measured according to the nominal amount shall be directly

included in the profit or loss for the current period) and if the relevant asset is sold

transferred scrapped or damaged before the end of its useful life the balance of the relevant

deferred income that has not yet been distributed shall be transferred to the profit or loss of

the current period of asset disposal.If the finance department allocates the subsidized funds to the lending bank and the lending

bank provides loans to the Group at a preferential policy interest rate the actual amount of

the borrowed money received shall be used as the recorded value of the borrowing and the

relevant borrowing costs shall be calculated according to the principal of the loan and the

preferential interest rate of the policy.

(20) Deferred income tax

The Group adopts the balance sheet obligation method to provide deferred income tax

based on the temporary differences between the carrying amount of assets and liabilities at

the balance sheet date and the tax base as well as the difference between the carrying

amount and the tax basis of items that are not recognized as assets and liabilities but whose

tax basis can be determined in accordance with the provisions of the tax law.Deferred tax liabilities are recognized for all kinds of taxable temporary differences unless:

* A taxable temporary difference arises in the following transactions: the initial

recognition of goodwill or the initial recognition of assets or liabilities arising in a single

transaction that is not a business combination the transaction occurs that does not

affect neither the accounting profit nor the taxable income or deductible loss and the

assets and liabilities initially recognized do not result in the creation of an equal amount

of taxable temporary differences and deductible temporary differences;

* For taxable temporary differences related to investments in subsidiaries and

associates the timing of the reversal of the temporary difference is controllable and

the temporary difference is likely not to be reversed in the foreseeable future.For deductible temporary differences deductible losses and tax credits that can be carried

forward to future 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.

99JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(20) Deferred income tax (Cont’d)

The Group's deferred tax assets and deferred tax liabilities are measured at the applicable

tax rate during the period in which the assets are expected to be recovered or the liabilities

are liquidated in accordance with the provisions of the tax law and reflect the income tax

impact of the expected recovery of assets or the settlement of liabilities at the balance sheet

date.At the balance sheet date the Group reviews the carrying amount of deferred tax assets

and writes down the carrying amount of deferred tax assets if it is likely that sufficient taxable

income will not be available in future periods to offset the benefits of deferred tax assets. At

the balance sheet date the Group re-evaluates the unrecognised deferred tax assets to the

extent that it is likely to obtain sufficient taxable income to be able to reverse all or part of

the deferred tax assets.Deferred tax assets and deferred tax liabilities are presented on a net basis when the

following conditions are met: they have the legal right to settle current income tax assets

and current income tax liabilities on a net basis; Deferred tax assets and deferred tax

liabilities are related to the income tax levied by the same tax collection and administration

department on the same taxable entity.

(21) Leases

At the commencement date of the contract the Group assesses whether the contract is a

lease or 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.

100JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(21) Leases (Cont’d)

(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.

101JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(22) Safety production fee

The safety production fee withdrawn in accordance with the regulations shall be included in

the cost of the relevant product or the current profit or loss and shall be included in the

special reserve; When using distinguish whether fixed assets are formed and deal with

them separately: if it is an expense expenditure it will directly offset the special reserves; If

fixed assets are formed the expenses incurred shall be collected and the fixed assets shall

be recognized when they reach the intended usable state and the equivalent special

reserves shall be written off and the equivalent accumulated depreciation shall be

recognized.

(23) Fair value measurement

Assets and liabilities measured or disclosed at fair value in the financial statements are

determined based on the lowest level of inputs that are material to the fair value

measurement as a whole: Level 1 inputs which are unadjusted quotes in active markets for

the same assets or liabilities that can be obtained at the measurement date; Level 2 inputs

which are directly or indirectly observable inputs for related assets or liabilities other than

Level 1 inputs; The third level of input value the unobservable input value of the relevant

asset or liability.At each balance sheet date the Group re-evaluates the assets and liabilities recognized in

the financial statements at fair value on an ongoing basis to determine whether there is a

transition between the levels of fair value measurement.

(24) Critical accounting estimates and judgements

The preparation of financial statements requires management to make judgments

estimates and assumptions that affect the amounts and disclosures of income expenses

assets and liabilities as well as the disclosure of contingent liabilities at the balance sheet

date. The results of these uncertainties in assumptions and estimates may result in

significant adjustments to the carrying amounts of the assets or liabilities affected in the

future.(a) Critical judgements in applying the accounting policies

In applying the Group's accounting policies management has made the following

judgments that have a material impact on the amounts recognized in the financial

statements:

Business model

The classification of financial assets at the time of initial recognition depends on the Group's

business model for managing financial assets and in determining the business model the

Group considers the manner in which the performance of financial assets is evaluated and

reported to key management personnel the risks affecting the performance of financial

assets and how they are managed and the manner in which relevant business managers

are remunerated. In assessing whether the objective is to collect contractual cash flows

the Group needs to analyze and determine the reason timing frequency and value of the

sale of financial assets before the maturity date.

102JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(24) Critical accounting estimates and judgements (Cont’d)

(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.

103JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

3 Summary of significant accounting policies and accounting estimates (Cont’d)

(24) Critical accounting estimates and judgements (Cont’d)

(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.

104JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

4 Taxation

(1) The main categories and rates of taxes applicable to the Group are set out below:

Category Taxation basis Tax rate

Value-added tax The difference between the sales amount and 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

for the year of 2025 is 15% (2024: 15%).In 2025 except for the Company the Company’s wholly-owned companies including JMC

Heavy Duty Vehicle Co. Ltd. (“JMCH”) Jiangling Motor Sales Co. Ltd. (“JMCS”) Shenzhen

Fujiang New Energy Automobile Sales Co. Ltd. (“SZFJ”) Guangzhou Fujiang New Energy

Automobile Sales Co. Ltd. (“GZFJ”) and Jiangling Ford Automobile Technology (Shanghai)

Co. Ltd. (“Jiangling Ford (Shanghai)”) were subject to the enterprise income tax at the rate of

25%(2024:25%).

Pursuant to the Announcement on Clarifying the Additional Value-added Tax Credit Policy for

the Advanced Manufacturing Enterprises (Cai Shui [2023] No. 43) jointly issued by the Ministry

of Finance and the State Taxation Administration the Company as an advanced manufacturing

enterprise from January 1 2023 to December 31 2027 the Company will add 5% of the

deductible input tax for the current period to offset the VAT payable.

105JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements

(1) Cash at bank and on hand

31 December 2025 31 December 2024

Cash at bank 11898659395 11067571593

Cash at finance company (a) (Note

8(6))15924948051407604416

Other cash and cash equivalents (b) 27137724 18692687

Interest receivable 64248422 52427194

1358254034612546295890

(a) As at 31 December 2025 the group's bank deposit with Jiangling Automobile Group

Finance Co Ltd. was RMB1592494805. The Group's bank deposits placed with Jiangling

Motor Group Finance Company Limited(“JMCF”) bear interest at the bank's annual interest

rate of 0.85%-1.55% (31 December 2024: 1.35%-2.25%) on RMB deposits for the same

period.JMCF a 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 RMB27137724 (December 31 2024: 18692687) were

the frozen funds of the Group's litigation.

(2) Financial assets held for trading

31 December 2025 31 December 2024

Structural deposits 801902466 -

(3) Derivative financial assets and derivative financial liabilities

31 December 2025 31 December 2024

Derivative financial assets -

Forward exchange contracts - 12612380

Derivative financial liabilities -

Forward exchange contracts 695349 -

106JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(4) Notes receivable

31 December 2025 31 December 2024

Trade acceptance notes - 226932

Less: Provision for bad

-

debts (67)

-226865

(5) Accounts receivable

31 December 2025 31 December 2024

Accounts receivable 6261767357 4299293681

Less: Provision for bad debts (120361590) (118285447)

61414057674181008234

(a) The aging of accounts receivable was analysed as follows:

31 December 2025 31 December 2024

Within 1 year 6136599101 4168893653

1 to 2 years 2332966 1812248

Over 2 years 122835290 128587780

62617673574299293681

As at 31 December 2025 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 64924598 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 10296890 - sales of general automobiles.

107JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

(b) As at 31 December 2025 the top five accounts receivable ranked by the balances of the

debtors are analysed as follows:

Amount of provision % of total

Balance for bad debts balance

The total accounts receivable of

the top five balances 4954439143 74516928 79.12%

(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:

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%

108JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(5) Accounts receivable (Cont’d)

(c) Provision for bad debts (Cont’d)

31 December 2024

Book balance Provision for bad debts

% of total Provision

Amount balance Amount ratio

Provision for bad debts on

the individual basis (i) 104721207 2% 104721207 100.00%

Provision for bad debts on

the grouping basis (ii) 4194572474 98% 13564240 0.32%

4299293681100%1182854472.75%

(i) Accounts receivable for which the provision for bad debts was provided on the individual

basis were analysed follows:

31 December 2025

Book balance Provision for bad debts

Amount Lifetime ECL (%) Amount

New energy subsidies

receivable 37924214 100% 37924214

Receivables for

automobiles 65541333 99.64% 65307597

103465547103231811

31 December 2024

Book balance Provision for bad debts

Amount Lifetime ECL (%) Amount

New energy subsidies

receivable 37924214 100% 37924214

Receivables for

automobiles 66796993 100% 66796993

104721207104721207

As at 31 December 2025 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 RMB103231811 (31 December 2024: RMB104721207) of which

RMB1489396 (2024: RMB5433007) was reversed in profit or loss for the current period.

109JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(5) 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:

31 December 2025

Book balance Provision for bad debts

Lifetime ECL

Amount (%) Amount

Not overdue 1298021154 0.02% 25691 7

Overdue for 1 to 30 days 28433864 1.25% 35424 7

Overdue for 31 to 60 days 9159455 2.18% 19945 6

Overdue for 61 to 90 days 6007784 3.66% 21982 4

Overdue over 90 days 28609142 9.18% 262631 9

13702313993656763

31 December 2024

Book balance Provision for bad debts

Lifetime ECL

Amount (%) Amount

Not overdue 812797881 0.03% 241763

Overdue for 1 to 30 days 109449671 0.55% 600056

Overdue for 31 to 60 days 5621317 0.99% 55441

Overdue for 61 to 90 days 4434000 2.50% 110948

Overdue over 90 days 25539010 9.00% 2298511

9578418793306719

110JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(5) 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:

31 December 2025

Book balance Provision for bad debts

Amount Lifetime ECL (%) Amount

Not overdue 4538555702 0.20% 9077111

31 December 2024

Book balance Provision for bad debts

Amount Lifetime ECL (%) Amount

Not overdue 2933133292 0.20% 5866267

Grouping - Sales of new energy automobiles:

31 December 2025

Book balance Provision for bad debts

Amount Lifetime ECL (%) Amount

Overdue over 90 days 4122180 80.00% 3297744

31 December 2024

Book balance Provision for bad debts

Amount Lifetime ECL (%) Amount

Overdue over 90 days 4123260 80.00% 3298608

111JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(5) 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:

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

31 December 2024

Book balance Provision for bad debts

Lifetime ECL

Amount (%) Amount

Not overdue 270418629 0.30% 811256

Overdue for 1 to 30 days 10276006 0.30% 30828

Overdue for 31 to 60 days 9423011 0.50% 47115

Overdue for 61 to 90 days 6008481 0.60% 36051

Overdue over 90 days 3347916 5.00% 167396

2994740431092646

(iii) The provision for bad debts was RMB2076143 this year.(d) There was no provision for bad debts actually written off during the year.(e) As at 31 December 2025 and 31 December 2024 there were no accounts receivable

pledged.

112JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(6) Financing receivables

31 December 2025 31 December 2024

Bank acceptance notes 205851591 302065502

The Group considers the need for its daily fund management to discount and endorse a

portion of bank acceptance bills and the business model for managing these bills aims both

at receiving contractual cash flows and at selling them; therefore all bank acceptance bills

of the Group are classified as financial assets measured at fair value with changes

recognized in other comprehensive income. In 2025 the Group endorsed and discounted

bank acceptance notes and almost all risks and rewards of ownership have been

transferred to other parties accordingly the carrying amounts of bank acceptance notes

that were derecognised by the Group were RMB1698864617 and

RMB7692252503(2024: RMB1098017761 and RMB2029290040) respectively and

the related losses on discount of RMB244753 (2024: RMB110250) were included in

investment income (Note 5(53)).As at 31 December 2025 and 31 December 2024 as the credit risk characteristics of these

bank acceptance notes were similar no provision for impairment was made individually. In

addition the Group considered that its bank acceptance notes were not exposed to

significant credit risk and the probability of default of these banks was very low.As at 31 December 2025 and 31 December 2024 the Group had no pledged bank

acceptance notes receivable presented in financing receivables.As at 31 December 2025 the Group's bank acceptance notes had been endorsed or

discounted but not yet matured were RMB5373003459 which had been derecognised.There was no significant write-offs of financing receivables for the Group in 2025 (2024:

Nil).

113JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(7) Advances to suppliers

(a) The aging of advances to suppliers is analysed as follows:

31 December 2025 31 December 2024

% of total % of total

Amount balance Amount balance

Within 1 year 94393889 96% 907027 06 96%

Over 1 year 4230171 4% 40464 66 4%

98624060100%94749172100%

(b) As at 31 December 2025 the top five advances to suppliers by the balances of the debtors

are analysed as follows:

Amount % of total balance

Total prepayments of the top

five balances 98624060 100.00%

(8) Other receivables

31 December 2025 31 December 2024

Receivables from land

acquisition and storage 79807336 -

Gas and electricity bills 21112025 18531901

Platform utilization fee 5831714 5525739

Bills for R&D projects 5262421 4723933

Import working capital 5000000 3900523

Guarantees 3932887 7604290

Others 13986707 13987893

13493309054274279

Less: Provision for bad debts (164713) (261039)

13476837754013240

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:

31 December 2025 31 December 2024

Within 1 year 131308902 49055878

Over 1 year 3624188 5218401

13493309054274279

114JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(8) 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:

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%

31 December 2024

Book balance Provision for bad debts

% of total Provision

Amount balance Amount ratio

Provision for bad debts on the

Individual basis 1297367 2% - -

Provision for bad debts on the

grouping basis 52976912 98% 261039 0.49%

54274279100%2610390.48%

Stage 1

12-month ECL 12-month ECL

(grouping) (individual) Total

Provision Provision Provision

Book for bad Book for bad for bad

balance debts balan ce debts debts

31 December 2024 52976912 261039 1297 367 - 261039

Decrease in the

current year - - - - -

Increase in the

current year 2148842 - 78509 969 - -

Provision for bad

debts accrued

during the year - (96326) - - (96326)

31 December 2025 55125754 164713 79807 336 - 164713

As at 31 December 2025 and 31 December 2024 the Group had no other receivables at

Stage 2 and Stage 3. The analysis of other receivables at Stage 1 was stated below:

115JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(8) Other receivables (Cont’d)

(b) Provision for losses and changes in book balance statements (Cont’d):

As at 31 December 2025 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 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

(i)The Group assessed the credit risk of receivable from land acquisition and storage on

the individual basis the receivables were not subject to significant credit risk and were not

overdue and impaired.As at 31 December 2024 the Group’s other receivables with provision for bad debts on the

grouping basis are analysed as follows:

12-month Provision for

Book balance ECL rates bad debts Reason

Provision on the individual basis:

Receivables from refund of social

insurance (i) 1297367 - - ECL

Provision on the grouping basis:

Gas and electricity bills 18531901 0.49% 91314 ECL

Import working capital 7604290 0.49% 37469 ECL

Guarantees 5525739 0.49% 27228 ECL

Platform utilization fee 4723933 0.49% 23277 ECL

Bills for R&D projects 3900523 0.49% 19219 ECL

Others 12690526 0.49% 62532 ECL

54274279261039

(c) In 2025 the Group reversed the provision for bad debts amounting to RMB96326. 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 year.

116JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(8) Other receivables (Cont’d)

(e) As at 31 December 2025 the top five other receivables by the balances of the debtors are

listed as follows:

% of Provision

total for bad

Nature Balance Aging balance debts

receivables from

land acquisition

Company 1 and storage 79807336 within 1 year 59% -

Company 2 Electricity bills 16993000 within 1 year 13% 50774

Import working

Company 3 capital 8678667 within 1 year 6% 25931

Platform

Company 4 utilization fee 5831714 within 1 year 4% 17425

Company 5 Gas bills 4119025 within 1 year 3% 12307

11542974285%106437

117JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(9) Inventories

(a) Inventories were summarised by category as follows:

31 December 2025 31 December 2024

Provision for Provision for

decline in the decline in the

value of Carrying value of Carrying

Book balance inventories amount Book balance inventories amount

Raw materials 1107964940 64981628 1042983312 1297887283 89113586 1208773697

Finished goods 666482402 21361803 645120599 416054999 9124198 406930801

Work in progress 178941925 49688 178892237 208385421 282318 208103103

Low value consumables 65588843 543890 65044953 74927505 8943729 65983776

Materials in transit 67782373 - 67782373 85555538 - 85555538

Materials consigned for processing 12102234 - 12102234 79170327 - 79170327

209886271786937009201192570821619810731074638312054517242

(b) Provision for decline in the value of inventories was analysed as follows:

Increase in the

current year Decrease in the current year

31 December 2024 Provision Reversal Write-off 31 December 2025

Raw materials 89113586 12051738 (1554832) (34628864) 64981628

Finished goods 9124198 19732603 - (7494998) 21361803

Low value consumables 8943729 543890 (42736) (8900993) 543890

Work in progress 282318 38310 (53777) (217163) 49688

10746383132366541(1651345)(51242018)86937009

118JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(9) 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 year 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 year.

(10) Other current assets

31 December 2025 31 December 2024

Taxes prepaid input VAT to be

deducted and to be verified 1288158530 1200018920

Others 42858755 28354057

13310172851228372977

Less: provision for diminution in value (136072357) -

11949449281228372977

In 2025 the Group made a provision for impairment of RMB136072357 for input tax that is

expected to not be deductible or used in the future.

(11) Current portion of non-current assets

31 December 2025 31 December 2024

Current portion of long-term

receivables (Note 5(12)) 27153632 20784738

(12) Long-term receivables

31 December 2025 31 December 2024

Long-term receivables 98706775 39420847

Less: provision for bad debts (33179) (102201)

Current portion of long-term

receivables (Note 5(11)) (27153632) (20784738)

7151996418533908

As at 31 December 2025 the Group's long-term receivables were formed by accounts receivable

from instalment sales and the payments will be gradually recovered from 2026 to 2029.

119JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(13) Long-term equity investments

31 December 2025 31 December 2024

Associates

- Shanxi Yunnei Power Co. Ltd. (“The Power Company”) 177016522 19439324 6

- Hanon Systems (Nanchang) Co. Ltd. (“Hanon Systems”) 26625399 2490478 5

Less: Provision for impairment of long-term equity investments - -

203641921219298031

Associates

Movements for the current year Impairment provision

Increase/ Share of net

Decrease profit/(loss) Cash 31

31 December in under equity dividends Provision for 31 December Shareholding Voting December 31 December

2024 investment method declared impairment 2025 (%) rights (%) 2024 2023

The Power

Company 194393246 - (17376724 ) - - 17701652 2 40% 40% - -

Hanon

Systems 24904785 - 172061 4 - - 2662539 9 19.15% 33.33% - -

Total 219298031 - (15656110 ) - - 20364192 1 - -

Related information of equity in associates is set forth in Note 6(2).

120JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(14) Fixed assets

31 December 2025 31 December 2024

Fixed assets (a) 5789147812 57493 63332

Fixed assets pending for disposal (b) 276010 1 10673

57894238225749474005

(a) Fixed assets

Machinery and Electronic and other. Buildings equipment Vehicles Moulds equipment Total

Cost

31 December 2024 2367665155 3233162193 1000446605 4420796705 4447547715 15469618373

Increase in the

current year

Transfers from

construction in

progress 11761917 113032541 458349281 602003312 288627682 1473774733

others - - 8134817 - - 8134817

Decrease in the

current year

Disposal or

retirement (75600272) (255267096) (49490060) (206692364) (182157824) (769207616)

Others - (35288968) - - (71043089) (106332057)

31 December 2025 2303826800 3055638670 1417440643 4816107653 4482974484 16075988250

Accumulated

depreciation

31 December 2024 528036598 2057309021 389467170 2945591662 3171243383 9091647834

Increase in the

current year

Provision 52801041 173633132 174614255 415547902 318937686 1135534016

Decrease in the

current year

Disposal or

retirement (48348825) (231040644) (31497314) (198463695) (167207230) (676557708)

Others - (14662072) - - (28524207) (43186279)

31 December 2025 532488814 1985239437 532584111 3162675869 3294449632 9507437863

Provision for

impairment

31 December 2024 172020613 39433710 6937087 350150126 60065671 628607207

Increase in the

current year

Provision - 4851803 171094896 905344 5809456 182661499

Decrease in the

current year

Disposal or

retirement - (14068896) (778693) (7386856) (9631686) (31866131)

31 December 2025 172020613 30216617 177253290 343668614 56243441 779402575

Carrying amount

31 December 2025 1599317373 1040182616 707603242 1309763170 1132281411 5789147812

31 December 2024 1667607944 1136419462 604042348 1125054917 1216238661 5749363332

In 2025 depreciation charged to fixed assets amounted to RMB1135534016 (2024:

RMB987377843) 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 RMB1017454850 RMB4303935 RMB51864743 and RMB61910488 (2024:

RMB849126318 RMB6581964 RMB58162821 and RMB73506740) respectively.The costs of fixed assets transferred from construction in progress amounted to RMB1473774733

(2024: RMB1410284216).

121JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(14) Fixed assets(Cont’d)

(a) Fixed assets (Cont’d)

In 2025 Shenzhen Fujiang's leasing business incurred losses and there were indications of

impairment in the related assets. The Group conducted an impairment test on the assets used

for leasing by Shenzhen Fujiang and determined the recoverable amount of the relevant assets

to be RMB583699232 by taking the higher of the fair value less costs of disposal and the

present value of the estimated future cash flows of the assets. Accordingly an impairment

provision of RMB170870890 was made based on the difference between the recoverable

amount as of 31 December 2025 and the carrying amount.(i) Temporarily idle fixed assets

As at 31 December 2025 the fixed assets with a carrying amount of approximately

RMB137144685 (a cost of RMB1253368096) (31 December 2024: a carrying amount of

approximately RMB166048112 and a cost of RMB1419765179) were idle due to the

termination of the equity transfer transaction of JMCH and the change of product process of the

Group. The analysis was as follows:

Accumulated Provision for Carrying

Cost depreciation impairment amount

Buildings 409162422 1140858 03 172020 613 123056 006

Machinery and

equipment 129956554 927487 51 29764 468 7443 335

Vehicles 57745640 498408 46 6252 593 1652 201

Moulds 423834673 1106657 85 313168 888 -

Electronic and other

equipment 232668807 1825329 53 45142 711 4993 143

1253368096549874138566349273137144685

(ii) Operating lease of fixed assets:

As of 31 December 2025 the Cost was RMB923813175 the accumulated depreciation was

RMB169243053 the Impairment provision was RMB170870890 and the carrying amount at

the end of the period was RMB583699232.(ii) Fixed assets with pending certificates of ownership:

Reason for not obtaining

Carrying amount certificates of ownership

Buildings 16144137 Pending procedures

(b) Fixed assets pending for disposal

31 December 2025 31 December 2024

Vehicles 250667 -

Electronic and other equipment 10538 85891

Machinery and equipment 14805 24782

276010110673

As at 31 December 2025 the cost of fixed assets was RMB353554 the impairment provision

was RMB77544 and the carrying amount at the end of the period was RMB276010.

122JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(15) Construction in progress

31 December 2025 31 December 2024

Provision Carrying Provision Carrying

Book balance for impairment amount Book balance for impairment amount

Projects for

commercial

vehicles 390972214 1311599 389660615 441559409 1284000 440275409

Projects for

passenger

vehicles 52470311 4460314 48009997 134553481 4460314 130093167

Projects for

automobile

parts factory 22200973 - 22200973 64627414 - 64627414

Projects for

automobiles

factory 2224873 - 2224873 5625803 - 5625803

Others 46210061 691646 45518415 21981633 691646 21289987

51407843264355595076148736683477406435960661911780

123JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(15) 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 31 December investment in Progress of borrowing the current

Project name (In RMB0000) 2024 current year year current year 2025 budget project costs year Source of fund

Projects for Self-owned

commercial vehicles 352592 44155940 9 88359425 3 (93418144 8) - 39097221 4 7 5% 75% - - fund s

Projects for Self-owned

Passenger vehicles 87750 13455348 1 25146601 5 (33354918 5) - 5247031 1 7 9% 79% - - fund s

Projects for Self-owned

Automobiles factory 52041 562580 3 1433872 4 (1773965 4) - 222487 3 7 5% 75% - - fund s

Projects for

automobile parts Self-owned

factory 18624 6462741 4 7401069 4 (11643713 5) - 2220097 3 8 6% 86% - - fund s

Self-owned

Others - 2198163 3 16452397 0 (7186731 1) (68428231 ) 4621006 1 292 897 - fund s

6683477401387933656(1473774733)(68428231)514078432292897-

(b) Provision for impairment of construction in progress

31 December Increase in the Decrease in the 31 December

2024 current year current year 2025 Reason for provisione

Projects for

commercial vehicles 1284000 27599 - 1311 599 The rec overable amount is lower than the carrying amount

Projects for

passenger vehicles 4460314 - - 4460 314 The rec overable amount is lower than the carrying amount

Others 691646 - - 691 646 The rec overable amount is lower than the carrying amount

643596027599-6463559

124JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(16) Right-of-use assets

Buildings

Cost

31 December 2024 375793465

Increase in the current year

New lease contracts 59472019

Decrease in the current year

Expiration of lease contract (40396766)

Other decrease (608092)

31 December 2025 394260626

Accumulated depreciation

31 December 2024 217307777

Increase in the current year

Provision 88146844

Decrease in the current year

Expiration of lease contract (31196599)

Other decrease (240703)

31 December 2025 274017319

Provision for impairment

31 December 2024 -

Increase in the current year -

Decrease in the current year -

31 December 2025 -

Carrying amount

31 December 2025 120243307

31 December 2024 158485688

125JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(17) Intangible assets

Land use Software Non-patent

rights use fees technologies Others Total

Cost

31 December 2024 625299326 446450261 2320595061 38578700 3430923348

Increase in the

current year - - - - -

Transfers from

construction in

progress - 68428231 - - 68428231

Internal research

and development - - 404953343 - 404953343

Decrease in the

current year - - - - -

Disposal (15623755) (6998434) - - (22622189)

Other decrease - (16300959) - - (16300959)

31 December 2025 609675571 491579099 2725548404 38578700 3865381774

Accumulated

amortisation

31 December 2024 164471284 285873146 1078128739 38578700 1567051869

Increase in the

current year - - - - -

Provision 13100346 55655184 404691627 - 473447157

Decrease in the

current year - - - - -

Disposal (8855105) (6998434) - - (15853539)

Other decrease - (1949477) - - (1949477)

31 December 2025 168716525 332580419 1482820366 38578700 2022696010

Provision for

impairment

31 December 2024 - - 52416626 - 52416626

Increase in the

current year - - - - -

Provision - - - - -

31 December 2025 - - 52416626 - 52416626

Carrying amount

31 December 2025 440959046 158998680 1190311412 - 1790269138

31 December 2024 460828042 160577115 1190049696 - 1811454853

As at 31 December 2025 the intangible assets developed by the Group accounted for 63%

(31 December 2024: 61%) of the carrying amount of intangible assets.

126JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(18) Expenditure on research and development

The Group's total expenditure on research and development activities in 2025 and 2024 is

presented by nature as follows:

20252024

Employee benefits 748021754 872800912

Design fee 279392314 276633918

Consumed materials 158628958 241660045

Depreciation and amortisation 72647497 82982038

Others 231757412 225684210

14904479351699761123

Wherein expenditure on

research and development on

the research phase (Note

5(48))12160035391314579423

(a) The changes in the Group's development expenditures eligible for capitalisation in 2025 is

analysed as follows:

Transfer to intangible

31 December Increase in the current assets in the current 31 December

2024 year year 2025

Projects for

passenger

vehicles 27277985 192599988 219877973 -

Projects for

commercia

l vehicles 160825445 81844408 185075370 57594483

18810343027444439640495334357594483

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 88% as

of 31 December 2025 and is expected to be completed by 2026.In 2025 there was no impairment of the Group's development expenditure items (2024:

nil).

127JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(19) Deferred tax assets and deferred tax liabilities

(a) Deferred tax assets before offsetting

31 December 2025 31 December 2024

Deductible Deductible

temporary temporary

differences and Deferred tax differences and Deferred tax

deductible losses assets deductible losses assets

Accrued expenses and

provisions 4615638068 1037353003 5243226986 1202834659

Recoverable losses 466815447 116703862 3007086847 645511957

Provision for asset

impairment 1942298621 292044435 622528655 94016209

Non-patent technology 593336532 143728516 440753948 100999156

Lease liability 135747740 23290388 179407961 27067280

Employee education

funds unpaid 25931540 4181264 53619310 8554549

Deferred income 13039843 1955976 61202010 9180301

Retirement benefits

plan 10756000 2586000 10153000 2194050

Others 141377441 22698198 122815039 20274065

7944941232164454164297407937562110632226

(b) Deferred tax liabilities before offsetting

31 December 2025 31 December 2024

Taxable

temporary Deferred tax Taxable temporary Deferred tax

differences liabilities differences liabilities

Depreciation of fixed

assets 3106313384 696962697 3045807585 624476184

Right-of-use assets 120159745 22163211 158457332 25571835

Equity transactions

between parent and

subsidiary 207400000 31110000 166600000 24990000

Differences between

the fair value of the

identifiable net

assets and carrying

amount arising from

business

combinations

involving enterprises

not under common

control 72457584 18114396 74742572 18685643

Amortisation of

intangible assets 88850280 18680458 88274866 15312010

Others 1902466 475616 11693768 1754065

35970834597875063783545576123710789737

128JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(19) 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:

31 December 2025 31 December 2024

Deductible temporary differences 3150632098 25985784 25

Deductible losses 2267940580 2316109 85

54185726782830189410

(d) Deductible losses for which no deferred tax asset was recognised will be expired in following

years:

31 December 2025 31 December 2024

2025-594567

2026136794136794

2027150951754109138616

202824624424580885354

2029100815864140855654

2030862449146-

2267940580231610985

(e) The net balances of deferred tax assets and deferred tax liabilities after offsetting were as

follows:

31 December 2025 31 December 2024

Offsetting Balance after Offsetting Balance after

amount offsetting amount offsetting

Deferred tax assets (663587640) 980954002 (580487861) 1530144365

Deferred tax liabilities (663587640) 123918738 (580487861) 130301876

(20) Other non-current assets

31 December 2025 31 December 2024

Prepayment for molds 4912712 7860340

129JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(21) Provision for asset impairment and losses

Decrease in the current year

31 December Increase in the Write-off 31 December

2024 current year Reversal /Disposal 2025

Provision for bad debts of notes receivable (Note 5(4)) 67 - (67) - -

Provision for bad debts of accounts receivable (Note 5(5)) 118285447 3565539 (1489396) - 120361590

Including: Provision for bad debts on the

individual basis 104721207 - (1489396) - 103231811

Provision for bad debts on the

grouping basis 13564240 3565539 - - 17129779

Provision for bad debts of other receivables (Note 5(8)) 261039 - (96326) - 164713

Provision for bad debts of long-term receivables (Note

5(12))102201-(69022)-33179

Sub-total 118648754 3565539 (1654811) - 120559482

Provision for decline in the value of inventories (Note

5(9))10746383132366541(1651345)(51242018)86937009

provisions for other current asset impairment (Note 5

(10))-136072357--136072357

Provision for impairment of fixed assets (Note 5(14)) 628607207 182739043 - (31866131) 779480119

Provision for impairment of construction in progress

(Note 5(15)) 6435960 27599 - - 6463559

Provision for impairment of goodwill (i) 89028412 - - - 89028412

Provision for impairment of intangible assets (Note 5(17)) 52416626 - - - 52416626

Sub-total 883952036 351205540 (1651345) (83108149) 1150398082

1002600790354771079(3306156)(83108149)1270957564

(i) As at 31 December 2019 the Group had made full provision for impairment of goodwill.

130JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(22) Short-term borrowings

31 December 2025 31 December 2024

Credit loan 1950000000 15000000 00

As at 31 December 2025 the Group had no overdue short-term borrowings and the interest

rates ranged from 0.35% to 0.92% (31 December 2024: 0.55% to 0.95%).

(23) Notes payable

31 December 2025 31 December 2024

Banker's Acceptance Payable 427292904 -

(24) Accounts payable

31 December 2025 31 December 2024

Payable for automobile parts 11072236002 97855079 26

Payable for raw and auxiliary

materials 325524482 2757160 18

1139776048410061223944

As at 31 December 2025 accounts payable with aging over one year amounted to

RMB717410426 (31 December 2024: RMB170590008) which mainly represented

payables for materials for which a settlement price had not yet been determined and such

payables had not been finally settled yet.

131JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(25) Contract liabilities

31 December 2025 31 December 2024

Advances for maintenance and warranty

services etc. 860003200 632287355

Advances for automobiles and

automobile parts 147721592 206210459

1007724792838497814

Less: Contract liabilities carried forward

to revenue after 1 year (Note 5(36)

Note 5(44)(c)(i)) (461860038) (370793523)

545864754467704291

In 2025 contract liabilities amounting to RMB454809298 included in the carrying amount

as at 31 December 2024 were transferred to the revenue of 2025 (2024: RMB236041276)

including advances for automobiles and automobile parts amounting to RMB193030415

(2024: RMB129477208) and advances for maintenance and warranty services amounting

to RMB261778883 (2024: RMB106564068).

(26) Employee benefits payable

31 December 2025 31 December 2024

Short-term employee benefits payable (a) 723926311 7718784 85

Defined contribution plans payable (b) 500343 27999 13

Defined benefit plans payable (c) 2289000 30150 00

Termination benefits payable (d) 2440780 24811 76

729156434780174574

(a) Short-term employee benefits

31 December Increase in the Decrease in the 31 December

2024 current year current year 2025

Wages and salaries

bonus allowances

and subsidies 692017542 2071832935 (2083775443) 680075034

Staff welfare 21071704 86009981 (93847798) 13233887

Social security

contributions 812921 147119442 (146755991) 1176372

Including: Medical

insurance 729653 131309238 (130934643) 1104248

Work injury

insurance 83268 15810204 (15821348) 72124

Housing funds 492198 217517186 (217980635) 28749

Labour union funds

and employee

education funds 57484120 21638392 (49710243) 29412269

Other short-term

employee benefits - 7451200 (7451200) -

7718784852551569136(2599521310)723926311

132JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(26) Employee benefits payable (Cont’d)

(b) Defined contribution plans

Decrease in

31 December Increase in the the current 31 December

2024 current year year 2025

Basic pensions 2698067 287975569 (290205330) 468306

Unemployment

insurance 101846 9112787 (9182596) 32037

2799913297088356(299387926)500343

(c) Defined benefit plans

Increase in Decrease in

31 December the current the current 31 December

2024 year year 2025

Post-retirement

benefits payable

(Note 5(35)) 3015000 1406555 (2132555) 2289000

(d) Termination benefits payable

31 December 2025 31 December 2024

Early retirement benefits payable

(Note 5(35)) 1030000 1143000

Other termination benefits (i) 1410780 1338176

24407802481176

(i) In 2025 other termination benefits paid by the Group for termination of the employment

relationship were RMB12695618 (2024: RMB3333613).

(27) Taxes payable

31 December 2025 31 December 2024

Consumption tax payable 59076964 103965331

Enterprise income tax payable 32921540 -

Land use tax payable 4609622 4753390

Unpaid VAT 600401 117211162

Others 35489914 39268506

132698441265198389

133JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(28) Other payables

31 December 2025 31 December 2024

Promotion expenses 3058197201 27271554 25

Research and development project

expenses 947404470 962540747

Construction payment 498931773 466886864

Guarantees 146610838 134483995

Advertising and new product

planning fees 106729208 117665807

Trademark license fee 103978965 61000949

Transportation expenses 87941218 256166660

Ordinary share dividends payable 4006342 6463836

Others 849894856 1006699884

58036948715739064167

As at 31 December 2025 other payables with aging over one year of RMB1601148088

(31 December 2024: RMB1594877126) 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.

(29) Current portion of non-current liabilities

31 December 2025 31 December 2024

Current portion of lease liabilities

(Note 5(32)) 91402749 85684387

Current portion of long-term

borrowings (Note 5(31)) 460275 470727

9186302486155114

(30) Other current liabilities

31 December 2025 31 December 2024

Provisions expected to be settled

within 1 year (Note 5(33)) 285227475 314682704

Others 19203931 26865737

304431406341548441

134JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(31) Long-term borrowings

31 December 2025 31 December 2024

Guaranteed loans(a) 920551 1412180

Credit loans - -

Less: Current portion of long-term

borrowings (Note 5(29)) (460275) (470727)

460276941453

(a) As at 31 December 2025 the above guaranteed loans were long-term borrowings

amounting to USD 130968 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 31 December 2025 the Group had no overdue long-term borrowings at an interest

rate of 1.5% (31 December 2024: 1.5%).

(32) Lease liabilities

31 December 2025 31 December 2024

Lease liabilities (a) 136262865 179437021

Less: Current portion of non-

current liabilities (Note 5(29)) (91402749) (85684387)

4486011693752634

(a) As at 31 December 2025 the Group had no leases that were not included in lease liabilities

but will result in potential future cash outflows.

135JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(33) Provisions

Increase in Decrease in

31 December the current the current 31 December

2024 year year 2025

Product warranties 601848407 262630222 (323814477) 540664152

Less: Provisions expected to

be settled within 1

year (Note 5(30)) (314682704) (285227475)

287165703255436677

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.

(34) Deferred income

Decrease in the

current year

31 December Increase in the Recognised in other 31 December

2024 current year income 202 5

Government grants

Government grants

related to assets 7113989 1941000 (1987381) 70 67608

Government grants

related to

income 54088021 5185000 (52934452) 63385 69

612020107126000(54921833)13406177

136JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(35) Long-term employee benefits payable

31 December 2025 31 December 2024

Supplementary retirement benefits and

early-retirement benefits eligible for

recognition of provisions 53172000 63500000

Less: portion to be paid within one year (3319000) (4158000)

4985300059342000

The retirement and early-retirement benefits payable within one year are included in

employee benefits payable (Note 5(26)(c) Note 5(26)(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.In 2025 the defined benefit gain recognized in current profit and loss was

RMB4510000(2024: 4356000) and the defined benefit gain recognized in other

comprehensive income was RMB2526000 (2024: RMB5816000).

(36) Other non-current liabilities

31 December 2025 31 December 2024

Contract liabilities carried forward to

revenue after 1 year (Note 5(25)) 461860038 370793523

137JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(37) Share capital

Movements for the current year

31 December Shares newly Bonus Transfer from

2024 issued share capital surplus Others Sub-total 31 December 2025

Shares subject to trading restriction -

Other domestic shares

Including: Shares held by domestic

non-state-owned legal

persons 745140 - - - - - 745140

Shares held by domestic

natural persons 5700 - - - - - 5700

750840-----750840

Shares not subject to trading restriction -

Ordinary shares denominated in RMB 518463160 - - - - - 518463160

Domestically listed foreign shares 344000000 - - - - - 344000000

862463160-----862463160

863214000-----863214000

Since the implementation of the Company’s Scheme on Share Split Reform on 13 February 2006 as at 31 December 2025 there were 750840

shares currently unavailable for trading. During the reporting period there was no shares with trading restrictions released from the restricted

conditions.

138JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(37) Share capital (Cont’d)

Movements for the current year

Transfer

31 December Shares Bonus from capital

2023 newly issued share surplus Others Sub-total 31 December 2024

Shares subject to trading restriction -

Other domestic shares

Including: Shares held by domestic

non-state-owned legal

persons 745140 - - - - - 745140

Shares held by domestic

natural persons 5700 - - - - - 5700

750840-----750840

Shares not subject to trading restriction -

Ordinary shares denominated in RMB 518463160 - - - - - 518463160

Domestically listed foreign shares 344000000 - - - - - 344000000

862463160-----862463160

863214000-----863214000

139JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(38) Capital surplus

31 December Increase in the Decrease in the 31 December

2024 current year current ye ar 202 5

Share premium 816609422 - - 816609422

Other capital surplus 22833068 - - 22833068

839442490--839442490

31 December Increase in the Decrease in the 31 December

2023 current year current year 2024

Share premium 816609422 - - 816609422

Other capital surplus 22833068 - - 22833068

839442490--839442490

140JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(39) Treasury stock

31 December 2024 Increase in the current year Decrease in the current year 31 December 2025

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 the unused shares will

be canceled.

(40) Other comprehensive income

Other comprehensive income in the balance Other comprehensive income in the income statement for the year ended 31

sheet December 2025

Attributable Less: Transfer-out

to the Amount of previous other

parent incurred before comprehensive Less: Attributable to the Attributable to

31 December company 31 December income tax for income in the Income tax parent company after the subsidiary

2024 after tax 2025 the current year current year expenses tax after tax

Other comprehensive income that will not be

reclassified to profit or loss

Remeasure changes in defined benefit plans (26388000) 2526000 (23862000) 25260 00 - - 2526000 -

Other comprehensive income in the balance Other comprehensive income in the income statement for the year ended 31

sheet December 2024

Attributable Less: Transfer-out

to the Amount of previous other

parent incurred before comprehensive Less: Attributable to the Attributable to

31 December company 31 December income tax for income in the Income tax parent company after the subsidiary

2023 after tax 2024 the current year current year expenses tax after tax

Other comprehensive income that will not be

reclassified to profit or loss

Remeasure changes in defined benefit plans (20572000) (5816000) (26388000) (5816000) - - (5816000) -

141JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(41) Special reserve

31 December Increase in the Decrease in the 31 December

2024 current year current year 2025

Safety

production cost 5371093 28341840 (25851967 ) 7860966

31 December Increase in the Decrease in the 31 December

2023 current year current year 2024

Safety

production cost 3821625 29631611 (28082143) 5371093

(42) Surplus reserve

31 December Increase in the Decrease in the 31 December

2024 current year current year 2025

Statutory surplus reserve 431607000 - - 431607000

31 December Increase in the Decrease in the 31 December

2023 current year current year 2024

Statutory surplus reserve 431607000 - - 431607000

In accordance with the Company Law of the People’s Republic of China the Company’s

Articles of Association and the resolution of the Board of Directors the Company should

appropriate 10% of net profit for the year 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 year (2025: Nil).

(43) Retained earnings

20252024

Retained earnings at the beginning

of the year 9179333271 8232632623

Add: Net profit attributable to shareholders of the

parent company for the current year 1187465719 1537139024

Less: Ordinary share dividends payable (a) (614608342) (590438376)

Retained earnings at the end of the

year 9752190648 9179333271

142JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(43) Retained earnings(Cont’d)

(a) According to the resolution of the 2024 Annual General Meeting of Shareholders the company

proposed to distribute cash dividends of RMB0.71914 per share to all shareholders for a total of

RMB614608342 based on the deduction of the total issued share capital from the number of shares

in the company's repurchase special securities account until the implementation of profit distribution.According to the resolution of the Board of Directors on March 27 2026 the Board of Directors proposed

that the Company distribute a cash dividend of RMB0.55581 per share to all shareholders with a total

cash dividend of RMB474985178 calculated based on the issued shares minus the number of shares

held in the company’s dedicated repurchase securities account of RMB854581922 (Note 11).

(44) Revenue and cost of sales

(a) Revenue and cost of sales

20252024

revenue cost revenue cost

main

operations 37870906551 33011088313 37235820378 32003611043

other

operations 1299003378 840430594 1138340370 948134101

39169909929338515189073837416074832951745144

(b) The breakdown of revenue

2025

Automobile

maintenance

Automobiles Materials and parts services etc. Total

Recognised at a time point 35956461939 2110975528 - 38067437467

Recognised within a certain

period - - 1102472462 1102472462

359564619392110975528110247246239169909929

2024

Automobile

maintenance

Automobiles Materials and parts services etc. Total

Recognised at a time point 35289807942 2510895063 - 37800703005

Recognised within a certain period - - 573457743 573457743

35289807942251089506357345774338374160748

(c) The breakdown of cost of sales

2025

Automobile

maintenance

Automobiles Materials and parts services etc. Total

Recognised at a time point 31683911528 1472902846 - 33156814374

Recognised within a certain period - - 694704533 694704533

31683911528147290284669470453333851518907

As at 31 December 2025 the amount of revenue corresponding to the performance obligations that

the Group had contracted but had not commenced or completed was RMB1007724792 of which

the Group expects that RMB147721592 and RMB398143162 will be recognised as revenue from

the sales of automobiles and parts and revenue from the sales of automobile maintenance services

respectively in 2026 RMB461860038 will be recognised as revenue from automobile maintenance

services from 2027 to 2030(Note 5(25)).

143JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(45) Taxes and surcharges

20252024

Consumption tax 925776921 112739344 1

City maintenance and construction tax 83998736 12451778 6

Educational surcharge 83619962 12428731 1

Stamp tax 35896314 5045232 3

Real estate tax 20184172 1996627 6

Land use tax 20051853 2037455 9

Others 377911 45339 3

11699058691467445089

(46) Selling and distribution expenses

20252024

Promotion expenses 424714439 479050609

Employee benefits 188590317 252743744

Advertising and new product planning fees 101581928 112244723

Storage expenses 33675410 32230829

Packaging material expenses 30042893 29861191

Depreciation and amortisation expenses 20886072 15597750

Others 100169477 137219747

8996605361058948593

(47) General and administrative expenses

20252024

Employee benefits 641460640 518113814

Depreciation and amortisation expenses 118926227 121213685

Trademark license fee 64163810 90222606

Consulting fees 31113279 34235261

Repair expenses 28316172 32646022

General office expenses 13332712 13264317

Others 152816242 133926863

1050129082943622568

(48) Research and development expenses

20252024

Employee benefits 634509436 705363425

Design fee 168981790 177283649

Materials expenses 150674681 212613178

Depreciation and amortisation expenses 72647497 82982038

Others 189190135 136337133

12160035391314579423

144JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(49) Financial expenses

20252024

Interest costs 12023242 11982579

Add: Interest costs on lease liabilities 6256955 8322276

Interest expenses 18280197 20304855

Less: Interest income from cash at bank (161871607) (192964801)

Other interest income (2994625) (5950496)

Interest income (164866232) (198915297)

Exchange gains or losses 12660809 25017106

Others 1828814 1283199

(132096412)(152310137)

(50) Asset impairment losses

20252024

Impairment of fixed assets 182739043 36573579

Impairment of other current assets 136072357 -

Impairment of inventory 30715196 30027245

Impairment of construction in progress 27599 -

34955419566600824

(51) Credit impairment losses

20252024

Losses on bad debts of accounts receivable 2076143 (9455213)

Losses on bad debts of other receivables (96326) (141945)

Losses on bad debts of notes receivable (67) (17497)

Losses on bad debts of long-term receivables (69022) (23557)

1910728(9638212)

(52) Other income

Asset related/

2025 2024 Income related

Government grants

- Supporting funds by government 37960000 0 130000000 Income related

- Research and development activities

related subsidies 5291445 3 16559837 Income related

- Equipment purchasing-related

subsidies 198738 1 1610714 Asset related

- Other subsidies related with daily

operation 2981645 0 36239194 Income related

Additional deduction of input VAT etc. 11905969 1 330020306 -

583377975514430051

145JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(53) Investment income

20252024

Losses on discount of financing receivables

eligible for derecognition (Note 5(6)) (244753) (110250)

Losses on long-term equity investments

under equity method(Note 5(13)) (15656110) (10363917)

Investment income from forward exchange

settlement 10128967 5237734

Investment income from financial assets held

for trading 85409 4294164

(5686487)(942269)

There is no significant restriction on the remittance of investment income of the Group.

(54) Gains on changes in fair value

20252024

Derivative financial assets and derivative

financial liabilities -

(Losses)/Gains on forward exchange

contracts (9313221) 13071686

Financial assets at fair value through profit

or loss -

Structural deposits 2081705 -

(7231516)13071686

(55) Gains on disposal of assets

Amount recognised in

non-recurring profit or

2025 2024 loss in 2025

Gains on disposal of assets 61968391 3317046 61968391

146JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(56) Non-operating income

Amount recognised in

non-recurring profit or

2025 2024 loss in 2025

Penalty income 3287090 21986 67 3287090

Others 1409847 28451 26 1409847

469693750437934696937

(57) Non-operating expenses

Amount recognised in

non-recurring profit or

2025 2024 loss in 2025

Losses on scrapping

of assets 2712138 27734 64 2712138

Donations 2005620 27926 88 2005620

Others 596644 44140 05 596644

531440299801575314402

(58) Income tax expenses

20252024

Current income tax calculated based

on tax law and related regulations 32954440 26622

Deferred income tax 542807225 52904175

57576166552930797

147JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(58) 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:

20252024

Total profit 1395134383 1258107606

Income tax calculated at applicable tax rates 209270157 188716141

Effect of different applicable tax rates (198126334) (76105027)

Additional deductions (85146304) (172777356)

Deductive loss and temporary differences of

the unrecognised deferred tax asset in

the current period 647095817 108140186

Non-deductible investment losses 2348416 1554588

Costs expenses and losses not deductible

for tax purposes 319913 3402265

Income tax expenses 575761665 52930797

(59) 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:

20252024

Consolidated net profit attributable to ordinary

shareholders of the parent company 1187465719 1537139024

Weighted average number of ordinary shares

outstanding issued by the Company 857528730 863214000

Basic earnings per share 1.38 1.78

In 2025 our company repurchased a total of 8632078 shares (Note 5 (39)). We calculated

the weighted number of shares for this year based on the repurchase time and calculated

earnings per share based on the adjusted number of shares.(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 in 2025 (2024: Nil)

diluted earnings per share equalled to basic earnings per share.

148JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(60) 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

20252024

Government grants 416152879 1793104 67

Guarantees 81207784 677136 79

Others 42277385 821913 70

539638048329215516

(b) Cash paid relating to other operating activities

20252024

Promotion expenses 609211507 5259888 84

Research and

development expenses 567906010 3746128 65

Advertising expenses 99086762 1720593 70

Maintenance expenses 86230074 953401 58

Guarantees 66921556 553338 33

Consulting fees 59058279 470102 90

Trademark royalties 14796759 462661 39

Others 507956273 5463748 61

20111672201862986400

(c) Cash received relating to other investing activities

20252024

Interest from cash at bank 150050351 203725243

Other interest 14384906 14579833

164435257218305076

(d) Cash paid relating to other financing activities

20252024

Payment of treasury shares 170214887 -

Payments of lease liabilities 35025216 210728262

Others 272972 330952

205513075211059214

149JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(61) 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

20252024

Net profit 819372718 1205176809

Add: Asset impairment losses 349554195 66600824

Credit impairment losses 1910728 (9638212)

Depreciation of fixed assets 1135534016 987377843

Amortisation of intangible assets 473447157 411075768

Depreciation of right-of-use assets 88146844 83864887

Gains on disposal of long-term assets (59557455) (665549)

Financial income (133721312) (153285041)

Investment loss 5686487 942269

Losses / (Gains) on changes in fair value 7231516 (13071686)

Decrease / (Increase) in deferred tax assets 549190363 (58140811)

(Decrea se) / Increase in deferred tax liabilities (6383138) 111044986

Increase in inventories (574689215) (1196599903)

Decrease in provisions (61184255) (69967486)

Increase in operating receivables (2053912967) (99967834)

Increase in operating payables 1879730645 1366475616

(Increase) / Decrease in other cash and cash

equivalents (8445037) 2161737

Net cash flows from operating activities 2411911290 2633384217

Net increase in cash and cash equivalents

20252024

Cash and cash equivalents at the end of

the year 13491154200 12475176009

Less: Cash and cash equivalents at the

beginning of the year (12475176009) (11746518615)

Net increase in cash and cash

equivalents 1015978191 728657394

150JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(61) Supplementary information to the cash flow statement (Cont’d)

(b) Changes in liabilities arising from financing activities

Bank borrowings Lease liabilities

(including the current portion) (including the current portion) Other Payables Other Total

31 December 2024 1501412180 179437021 125419835 - 1806269036

Cash inflows from

financing activities 4793407250 - 85750000 752534436 5631691686

Cash outflows from

financing activities (4350426547) (35025216) (964750012) - (5350201775)

Interest accrued in the

current year 6544884 6256955 5478358 - 18280197

Dividends accrued in the

current year - - 614608342 - 614608342

Changes that do not

involve cash receipts

and payments (17216) (14405895) 239290744 - 224867633

31 December 2025 1950920551 136262865 105797267 752534436 2945515119

151JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(61) Supplementary information to the cash flow statement (Cont’d)

(c) Cash and cash equivalents

31 December 2025 31 December 2024

Cash at bank available for payment at any

time 11898659395 11067571593

Cash at finance company available for

payment at any time 1592494805 1407604416

1349115420012475176009

(i) As in Note 5(1) other cash and cash equivalents of RMB27137724 as at 31 December

2025(31 December 2024: RMB18692687) was not included in cash and cash equivalents.

(62) Foreign currency monetary items

31 December 2025

Amounts in

foreign Translation

currencies exchange rate Amounts in RMB

Long-term borrowings-

USD 130968 7.0288 920551

Other payables-

USD 33867645 7.0288 238048904

238969455

152JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

5 Notes to the consolidated financial statements (Cont’d)

(63) Lease

(a) As a lessee

31 December 2025 31 December 2024

Interest expense on lease liabilities 6256955 8322276

Short-term lease expenses with simplified treatment

through profit or loss for the period 4126739 1117726

Total cash outflows related to leases 39151955 211873185

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(16); For lease liabilities see note 5(32).(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:

20252024

Rental income 210202688 72919837

According to the lease contract with the lessee the undiscounted minimum lease collection amount

is as follows:

20252024

Within 1 year (including 1 year) 149604139 131603273

1 to 2 years (inclusive) 28182334 43748470

2 years to 3 years (inclusive) 10771072 18874242

188557545194225985

Fo r fixed assets leased out of operation see Note 5(14).

153JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

6 Equity in other entities

(1) Equity in subsidiaries

Structure of the Group

Main place of Place of Registered Method of

Subsidiaries business registration capital Nature of business Shareholding (%) acquisition

Direct Indirect

Nanchang Nanchang Retail wholesale and lease of Set up by

JMCS Jiangxi Jiangxi 50000000 automobiles 100% - investment

Business

combinations

involving

enterprises not

Taiyuan Taiyuan Manufacture and sales of under common

JMCH Shanxi Shanxi 1323793174 automobiles 100% - control

Shenzhen Shenzhen Retail wholesale and lease of Set up by

SZFJ Guangdong Guangdong 10000000 automobiles 100% - investment

Guangzhou Guangzhou Retail wholesale and lease of Set up by

GZFJ Guangdong Guangdong 10000000 automobiles 100% - investment

Jiangling Ford Retail Technical consultation and Set up by

(Shanghai)(a) Shanghai Shanghai 2678000000 business information consultation 51% - investment

In 2025 the registered capital of Jiangling Ford (Shanghai) was changed from RMB200 million to RMB2.678 billion and the industrial and commercial

registration of the change has been completed.

154JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

6 Equity in other entities (Cont’d)

(1) Equity in subsidiaries (Cont’d)

(a) Subsidiaries with significant minority interests

The Group determines the subsidiaries with significant minority interests by taking into account whether the subsidiaries are listed companies the

proportion of minority interests in the Group’s consolidated shareholders’ equity and the proportion of profit or loss attributable to minority shareholders

in the Group’s consolidated net profit as follows:

Total profit or loss Dividends paid to

Shareholding of attributable to minority minority shareholders for

minority shareholders for the year the year ended 31 Minority interests as

Subsidiaries shareholders ended 31 December 2025 December 2025 at 31 December 2025

Jiangling Ford (Shanghai) 49% (368 093001) - (3081998 09)

Key financial information of the above significant non-wholly owned subsidiaries is presented below.

31 December 2025

Current Non-current Current Non-current

assets assets Total assets liabilities liabilities Total liabilities

Jiangling Ford (Shanghai) 445678786 - 445 678786 1074 395372 262615 1074 657987

2025

Total

comprehensive Cash flows from

Revenue Net loss income operating activities

Jiangling Ford (Shanghai) 2389854773 (751210207) (7 51210207) (511385042)

155JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

6 Equity in other entities (Cont’d)

(2) Equity in associates

(a) General information of significant associates

The Group determines the significant associates by taking into account factors such as whether the

associates are listed companies the proportion of their carrying amounts to the Group’s consolidated

total assets and the proportion of the investment income from long-term equity investments under

equity method to the Group’s consolidated net profit as set out below:

Shareholding (%)

Place of registration Direct Indirect

Associate -

The Power Company Taiyuan Shanxi 40% -

(b) Summarised financial information for significant associates

31 December 2025 31 December 2024

The Power Company The Power Company

Current assets 129114691 170083868

Non-current assets 414895371 437139815

Total assets 544010062 607223683

Current liabilities 120165219 139059465

Non-current liabilities 330626 697

Total liabilities 120495845 139060162

Equity 423514217 468163521

Share of net assets based on shareholding (i) 169405687 187265408

Adjustments

- Unrealised profits arising from internal

transactions (13242488) (13725485)

- Others (ii) 20853323 20853323

Carrying amount of equity investments in

associates 177016522 194393246

156JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

6 Equity in other entities (Cont’d)

(2) Equity in associates (Cont’d)

(b) Summarised financial information for significant associates (Cont’d)

20252024

The Power Company The Power Company

Revenue 83238047 55024619

Net loss (19980000) (21745330)

Other comprehensive

income - -

Total comprehensive loss (19980000) (21745330)

Dividends received from

associates by the Group - -

(i) The Group calculated the shares of net assets in proportion of the shareholdings and based on the

amount attributable to the parent company of the associates in their consolidated financial

statements. The amount in the consolidated financial statements of associates considers the fair

value of identifiable assets and liabilities at the time of acquisition of the investments and the impact

of adjustments to uniform accounting policies. None of the assets involved in transactions between

the Group and associates contribute to business.(ii) Other adjustments were mainly the remeasurement of fair value of remaining equity in the

consolidated financial statements which resulted from the loss of control over the original

subsidiary due to the disposal of part of the equity investment.(c) Summarised information of insignificant associates

20252024

Aggregated carrying amount of investments 26625399 24904785

Aggregate of the following items based on shareholding

Net loss(i) 1720614 (2429558)

Other comprehensive income (i) - -

Total comprehensive loss 1720614 (2429558)

(i) Net profit and other comprehensive income have taken into account the fair value of identifiable

assets and liabilities at the time of acquisition of the investments and the impact of adjustments to

uniform accounting policies.

157JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

7 Segment information

Revenue and profits of the Group mainly arise from production and domestic sales of

automobiles and the primary assets of the Group are all located in China. Management of

the Group assesses the operating performance of the Group as a whole. Therefore no

segment report is prepared for the current year.In 2025 the revenue obtained from a single customer of the Group accounted for more than

10% of the Group’s revenue amounting to RMB14907750775 or 38.06% (2024:

28.27% ) 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 31 December

2024 current year current year 2025

JIC 1000000000 - - 1000000000

Ford USD 42000000 - - USD 42000000

(c) The percentages of shareholding and voting rights in the Company held by major

shareholders

31 December 2025 31 December 2024

Shareholding Voting rights Shareholding Voting rights

(%)(%)(%)(%)

JIC 41.03% 41.03% 41.03% 41.03%

Ford 32% 32% 32% 32%

(2) Information of subsidiaries

The general information and other related information of subsidiaries are set out in Note

6(1).

(3) Information of associates

The information of associates is set out in Note 5(13) and 6(2).

158JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

8 Related parties and related party transactions (Cont’d)

(4) Information of other related parties

Relationship with the Group

JMCG Shareholder of JIC

Chongqing Changan Automobile Co. Ltd.(hereinafter

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

Jiangling Motor Electricity Vehicle 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 Gear Forging 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

Auto Alliance (Thailand) Co.Ltd. 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

159JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

8 Related parties and related party transactions (Cont’d)

(4) Information of other related parties

Relationship with the Group

Ford Otomotiv Sanayi A.S. Joint venture of Ford

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

Chengdu Wanyou Vehicle Trade & Service Co.Ltd

of Chongqing Changan

Controlled by Ultimate Holding Company

Guizhou Wanfu Vehicle Sales & Service Co. Ltd.of Chongqing Changan

Guizhou Wanjia Automobile Sales and Service Co. Controlled by Ultimate Holding Company

LTD of Chongqing Changan

Harbin Dongan Automotive Engine Manufacturing 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

160JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

8 Related parties and related party transactions (Cont’d)

(5) Related party transactions

(a) Purchase and sales of goods provision and receipt of services

Purchase of goods:

Natue of related

party transactions 2025 2 024

Purchase of

Magna PT Powertrain (Jiangxi) Co. Ltd

automobile parts 1261233176 12132839 75

Purchase of

Jiangxi Jiangling Chassis Co.Ltd.automobile parts 951329470 868277838

Jiangxi Jiangling Lear Interior System Purchase of

Co.Ltd. automobile parts 837723534 759463783

Nanchang Baojiang Steel Processing Purchase of raw and

Distribution Co.Ltd. auxiliary materials 816259759 820314741

Nanchang Jiangling Hua Xiang Auto Purchase of

Components Co.Ltd. automobile parts 782570785 1263327476

Jiangxi Zhonglian Intelligent Logistics Co. Purchase of

Ltd. automobile parts 773671632 803875765

Jiangxi Jiangling Special Purpose Vehicle Purchase of

Co.Ltd. automobile parts 670239638 544252769

Nanchang Huaxiang Automotive Interior & Purchase of

Exterior Components Co. Ltd. automobile parts 482995231 -

Nanchang JMCG Liancheng Auto Purchase of

Component Co.Ltd. automobile parts 352302385 368113693

Faurecia Emissions Control Technologies Purchase of

(Nanchang) Co.Ltd. automobile parts 263305340 222487974

Purchase of

Ford

automobile parts 248275827 1400778072

Purchase of

Nanchang JMCG Shishun Logistics Co. Ltd.automobile parts 242743283 181101384

Jiangxi Lingyun Automobile Industry Purchase of

Technology Co.Ltd automobile parts 229353907 195120129

Harbin Dongan Automotive Engine Purchase of

Manufacturing Co. Ltd. automobile parts 215977255 128047672

Nanchang Unistar Electric & Electronics Purchase of

Co.Ltd. automobile parts 213703162 228332729

Jiangxi Jingwei Hirain Technologies Co. Purchase of

Inc. automobile parts 198895268 99869772

Purchase of

Nanchang Yinlun Heat-exchanger Co.Ltd.automobile parts 134126431 117276155

Nanchang JMCG SMR Huaxiang Mirror Co. Purchase of

Ltd. automobile parts 133935730 135512745

Hanon Systems Purchase of

automobile parts 117232460 148048317

Dibao transportation equipment (Nanchang) Purchase of

Co. Ltd automobile parts 104604608 106869480

Purchase of

Changan Ford Automobile Co.Ltd.automobile parts 99825253 178623753

Bosch Electric Drive Systems (Nanchang) Purchase of

Co. Ltd. automobile parts 82122418 -

Jiangxi Lingge Non-ferrous Metal Die- Purchase of

casting Co.Ltd. automobile parts 75935213 64642915

Jiangxi JMCG Specialty Vehicles Purchase of

Corporation Ltd. automobile parts 45040475 49607876

Jiangxi Jiangling Group Special Vehicle Purchase of

Co.Ltd. automobile parts 44306875 42443490

161JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

8 Related parties and related party transactions (Cont’d)

(5) Related party transactions (Cont’d)

(a) Purchase and sales of goods provision and receipt of services (Cont’d)

Purchase of goods (Cont’d):

Natue of related

party transactions 2025 2 024

Jiangxi JMCG Boya brake system Co. Ltd. Purchase of

automobile parts 42712368 284238 58

Nanchang Lianda Machinery Co.Ltd. Purchase of

automobile parts 38919983 32400213

Jiangxi Mingfang Auto Parts Industry Co. Purchase of

Ltd automobile parts 29883748 14178898

Jiangling Motor Group (Nanchang) Fushan Purchase of raw and

Energy Co. LTD auxiliary materials 28023086 30611533

Jiangxi JMCG Shangrao Industrial Co.Ltd. Purchase of

automobile parts 27259053 26325532

Jiangxi Jiangling group Fuxin Auto Parts Purchase of

Co. Ltd automobile parts 19531683 22436081

Ford Motor Co. Thailand Ltd. Purchase of

automobile parts 14503425 139753289

Jiangxi Zhengxing Automotive Parts Purchase of

Manufacturing Co. Ltd. automobile parts 11326534 -

Jiangling Aowei Aotomobile Spare Part Purchase of

Co.Ltd. automobile parts 11079069 10685318

Jiangxi ISUZU Engine Co.Ltd. Purchase of

automobile parts 8933400 2908662

Nanchang JMCG Xinchen Auto Component Purchase of

Co.Ltd. automobile parts 6764371 6604035

Auto Alliance (Thailand) Co.Ltd. Purchase of

automobile parts 2758494 5441378

JMCG Purchase of

automobile parts 2521065 77426792

Jiangling Motor Holdings Co. Ltd Purchase of

automobile parts 2164830 2741332

Nanchang JMCG Frame Co.Ltd. Purchase of

automobile parts 2025282 1000762

Nanchang Gear Forging Co.Ltd. Purchase of

automobile parts 1576503 2563330

Ford Otomotiv Sanayi A.S. Purchase of

automobile parts 1568246 1867906

JMCG Jingma Motors Co. Ltd. Purchase of

automobile parts 44962 1718914

Jiangxi Lingrui Recycling Resources Purchase of raw and

Development Corporation auxiliary materials 17479 33427557

962932269610380187893

The Group purchases goods from related parties based on the agreed price between the two

parties as the pricing basis.

162JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

8 Related parties and related party transactions (Cont’d)

(5) Related party transactions (Cont’d)

(a) Purchase and sales of goods provision and receipt of services (Cont’d)

Receipt of services:

Nature of related party

transactions 2025 20 24

Nanchang JMCG Shishun Logistics Transportation

Co. Ltd. cartage fees etc. 271649658 29145853 3

Ford Global Technologies LLC Technology development 151258877 21893029 9

Ford Motor Research & Engineering Design fees

(Nanjing) Co. Ltd. personnel costs 147796114 135795642

Ford Trademark usage

personnel costs etc. 95741157 95728384

Ford Motor (China) Co. Ltd. Design fees

personnel costs etc. 81785182 41382841

Jiangxi Zhonglian Intelligent Cartage fees

Logistics Co. Ltd. storage fees etc. 78657950 64392144

Jiangxi JMCG Industry Co.Ltd. Meal fees 34022696 33349736

JMCG Jiangxi Engineering Engineering construction

Constructi on Co. Ltd. 26015314 120556432

Ford Motor Sales & Service Promotion expenses

(Shanghai) Co. Ltd. 21704280 -

JMCG Property Management Co. Property fees etc. 17282827 14600286

Jiangxi Jiangling Motors Imp. & Exp. Agency fees

Co. Ltd. advertising fees etc. 16670646 17326503

Jiangxi Jingwei Hirain Technologies Design fees

Co. Inc. 14224700 870000

JMCG Labour costs

rental fees etc. 7917294 4087090

Nanchang Jiangling Hua Xiang Auto Design fees Prototype

Components Co.Ltd. development costs etc. 5244498 -

Chongqing Anfu Vehicle Marketing Warranty and promotion

Co. Ltd. expenses 3247709 2491320

Magna PT Powertrain (Jiangxi) Co. Design fees

Ltd experimental costs 2996779 37220

Chongqing Changan Automobile Personnel costs

Co.Ltd 2691958 2574845

China Changan Group Tianjin Sales Promotion expenses

Co.Ltd 2561509 3394286

Guizhou Wanfu Vehicle Sales & Promotion expenses

Service Co. Ltd. 1755849 3021024

JMCG Jingma Motors Co. Ltd. Promotion expenses 1639863 1124348

Changan Ford Automobile Co.Ltd. Design fees

service fees etc. 1522453 703553

Chengdu Wanxing Vehicle Sales & Warranty and

Service Co. Ltd. promotion expenses 1064820 2522662

Ford Otomotiv Sanayi A.S. Technical services and

technical development 227034 1215889

Jiangxi JMCG Specialty Vehicles Promotion expenses

Sales Corporation Ltd. 209519 1509142

9878886861057072179

The Group’s pricing on services received from related parties is based on the agreed price by both parties.

163JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

8 Related parties and related party transactions (Cont’d)

(5) Related party transactions (Cont’d)

(a) Purchase and sales of goods provision and receipt of services (Cont’d)

Sales of goods and provision of services:

Nature of related party

transactions 2025 2024

Jiangxi Jiangling Motors Imp. & Sales of vehicles and

Exp. Co. Ltd. accessories etc. 14765138898 10827024547

Jiangxi JMCG Specialty Vehicles

Sales Corporation Ltd. Sales of vehicles 221050647 158841415

Sales of vehicles and

JMCG Jingma Motors Co. Ltd.accessories 117419661 123316338

Jiangxi JMCG Specialty Vehicles Sales of vehicles and

Corporation Ltd. accessories 115335232 147776860

Chongqing Anfu Vehicle Marketing Sales of vehicles and

Co. Ltd. accessories 101552685 108989648

Jiangxi Lingrui Recycling

Resources Development Sales of waste

Corporation materials etc. 81499350 70715213

Chengdu Wanxing Vehicle Sales & Sales of vehicles and

Service Co. Ltd. accessories 63769656 98609717

China Changan Group Tianjin Sales of vehicles and

Sales Co.Ltd accessories 50597449 103326239

Nanchang Jiangling Hua Xiang

Auto Components Co.Ltd. Sales of accessories 43166836 21492252

Guizhou Wanfu Vehicle Sales & Sales of vehicles and

Service Co. Ltd. accessories 42481833 60983086

Nanchang Hengou Industry Co. Sales of accessories

Ltd. etc. 37362544 22279648

Jiangxi Jiangling Chassis Co.Ltd. Sales of accessories 33489852 31378213

Nanchang JMCG SMR Huaxiang

Mirror Co. Ltd. Sales of accessories 27290455 30704569

Yunan Wanfu Vehicle Sales & Sales of vehicles and

Service Co. Ltd. accessories 25659210 783

Jiangxi Jiangling Group Special Sales of vehicles and

Vehicle Co.Ltd. accessories 24239203 21765371

Jiangxi Jiangling Special Purpose Sales of vehicles and

Vehicle Co.Ltd. accessories 22348702 26328071

Jiangxi Jiangling Lear Interior

System Co.Ltd. Sales of accessories 22306736 19454493

Jiangxi Zhonglian Intelligent

Logistics Co. Ltd. Sales of accessories 21162565 84009526

Jiangxi ISUZU Co. Ltd. Sales of accessories 17737497 15463036

Nanchang JMCG Liancheng Auto

Component Co.Ltd. Sales of accessories 15430270 16742013

Jiangxi ISUZU Engine Co.Ltd. Sales of accessories 15219564 30660694

Beijing Beifang Changfu Vehicle Sales of vehicles and

Sales & Service Co. Ltd. accessories 13369613 4620426

Sales of accessories

Jiangxi JMCG Industry Co.Ltd.and waste materials 8080110 3756352

Beijing Baiwang Changfu Vehicle Sales of vehicles and

Sales & Service Co. Ltd. accessories 5741638 11338763

Wanyou Automobile Investment Sales of vehicles and

Co. Ltd. accessories 4085315 -

Anhui Wanyou Automobile Sales Sales of vehicles and

service Co. LTD accessories 4058802 70

164JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

8 Related parties and related party transactions (Cont’d)

(5) Related party transactions (Cont’d)

(a) Purchase and sales of goods provision and receipt of services (Cont’d)

Sales of goods and provision of services(Cont’d):

Nature of related

party transactions 2025 2024

Jiujiang Fuwantong Vehicle Co. Sales of vehicles and

Ltd. accessories 3652477 4036

Jiangxi Jiangling Overseas Sales of vehicles and

Automobile Co. Ltd. accessories 3100755 3873

Sales of vehicles and

Jiangxi Fuxiang Vehicle Co. Ltd.accessories 2745084 8226

Chengdu Wanyou Vehicle Trade Sales of vehicles and

& Service Co.Ltd accessories etc. 1690050 184

Magna PT Powertrain (Jiangxi)

Co. Ltd Sales of accessories 1392501 817800

Jiangling Motor Electricity Vehicle

Co. Ltd. Sales of accessories 1358852 1172369

Ford Motor Sales & Service

(Shanghai) Co. Ltd. Provide services 1267635 -

Guizhou Wanjia Automobile Sales of vehicles and

Sales and Service Co. LTD accessories - 7641217

1591480167712049225048

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 year with the Group as the lessor:

Type of the leased

Name of the lessee asset 2025 2024

Jiangxi Zhengxing Automotive Parts

Manufacturing Co. Ltd. Equipment 1307009 -

Jiangling Motor Holdings Co. Ltd. Buildings 8935 158956

Jiangxi ISUZU Co. Ltd. Buildings 2945 6480

1318889165436

(ii) Increase of right-of-use assets in the current year with the Group as the lessee

Type of the leased

Name of the lessor asset 2025 2024

Jiangxi Jiangling Motors Imp. & Exp.Co. Ltd. Buildings - 37552314

Ford Motor (China) Co. Ltd Buildings - 608092

JMCG Buildings - 364586

-38524992

165JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

8 Related parties and related party transactions (Cont’d)

(5) Related party transactions (Cont’d)

(b) Leases(Cont’d)

(iii) Interest costs on lease liabilities in the current year with the Group as the lessee:

Type of the leased asset 2025 2024

Jiangxi Jiangling Motors Imp.& Exp. Co. Ltd. Buildings 804794 998142

JMCG Buildings 95402 503840

Ford Motor (China) Co. Ltd Buildings 20054 11845

9202501513827

(c) Guarantee received

Guaranteed

Guarantor amount Starting date Ending date Fully performed or not

JMCF 920551 5 March 2001 30 October 2029 Not fully performed

In 2025 JMCF provided guarantees for some bank borrowings of the Group with a maximum

guarantee limit of USD2282123. As at 31 December 2025 JMCF provided borrowing guarantee

to the bank borrowing of USD130968 equivalent to RMB920551 (31 December 2024:

USD196453 equivalent to RMB1412180) for the Group.(d) Purchase of assets

Nature of related party

transactions 2025 2024

Jiangxi Jiangling Special

Purpose Vehicle Co.Ltd. Purchase of fixed assets 16503583 34995383

Nanchang Jiangling Hua Xiang

Auto Components Co.Ltd. Purchase of fixed assets 4411457 24446632

Nanchang JMCG Liancheng

Auto Component Co.Ltd. Purchase of fixed assets 3890000 5003929

Magna PT Powertrain (Jiangxi)

Co. Ltd Purchase of fixed assets 2975266 1952878

Jiangxi Jiangling Chassis

Co.Ltd. Purchase of fixed assets 2100000 -

Jiangxi Lingyun Automobile

Industry Technology Co.Ltd Purchase of fixed assets 901500 -

JMCG Jingma Motors Co. Ltd. Purchase of fixed assets - 3928253

Jiangxi Jiangling Lear Interior

System Co.Ltd. Purchase of fixed assets - 2693550

Faurecia Emissions Control

Technologies (Nanchang)

Co.Ltd. Purchase of fixed assets - 2210790

Jiangxi JMCG Specialty

Vehicles Corporation Ltd. Purchase of fixed assets - 135036

3078180675366451

The Group’s pricing on goods sold to related parties is based on the agreed price by both parties.

166JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

8 Related parties and related party transactions (Cont’d)

(5) Related party transactions (Cont’d)

(e) Provision of technology sharing and distribution service

Nature of related party

transactions 2025 2 024

Ford Global Technologies LLC Technical service 384878125 -

Jiangxi Jiangling Motors Imp. & Exp.Co. Ltd. Technical service 142611877 20450200

Ford Electric Mach Technology Technical service

(Nanjing) Co. Ltd. 116791318 199272148

Ford Motor (China) Co. Ltd. Distribution service 14197227 24096419

Ford Trading Company LLC Technical service 9550000 2770000

Ford Vietnam Limited Technical service 1452183 22710000

Ford Motor Research & Engineering Technical service

(Nanjing) Co. Ltd. - 23758214

Nanchang Hengou Industry Co. Ltd. Technical service - 4557500

669480730297614481

The Group’s pricing on technology sharing provided to related parties is based on the agreed

price by both parties.(f) Remuneration of key management

20252024

Remuneration of key management 10270544 14163069

(g) Interest income

20252024

JMCF 14773588 18455436

Cash at bank of the Group deposited with JMCF was calculated based on the bank annual

interest rate for RMB deposit of 0.85% to 1.55% over the same period (2024: 1.35% to 2.25%).

167JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

8 Related parties and related party transactions (Cont’d)

(5) Related party transactions (Cont’d)

(h) Interest expenses

20252024

Ford Motor (China) Co. Ltd. 5309687 -

Jiangxi Zhonglian Intelligent Logistics Co. Ltd. 120000 120000

Nanchang JMCG Shishun Logistics Co. Ltd. 30000 30000

5459687150000

(i) Funds borrowed in

20252024

Ford Motor (China) Co. Ltd. 85750000 85750000

168JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

8 Related parties and related party transactions (Cont’d)

(6) Receivables from and payables to related parties

Accounts receivable

31 December 2025 31 December 2024

Provision

for bad Provision for

Amount debts Amount bad debts

Jiangxi Jiangling Motors Imp.& Exp. Co. Ltd. 4616206969 9532031 298413830 1 6078032

JMCG Jingma Motors Co. Ltd. 47279252 151735 3301377 3 99416

Jiangxi Zhonglian Intelligent

Logistics Co. Ltd. 16607018 49821 1987149 6 59614

Nanchang Jiangling Hua Xiang

Auto Components Co.Ltd. 15544213 46633 518280 8 15548

Jiangxi ISUZU Co. Ltd. 7866057 23598 372013 0 11160

Jiangxi Jiangling Lear Interior

System Co.Ltd. 6755350 20266 475389 1 14262

Jiangxi JMCG Specialty

Vehicles Corporation Ltd. 4907660 1814 5545293 6 17776

Jiangxi JMCG Specialty

Vehicles Sales Corporation

Ltd. 3731251 739 645512 1 1920

Nanchang JMCG Liancheng

Auto Component Co.Ltd. 3065801 9197 376428 8 11293

Jiangxi ISUZU Engine Co.Ltd. 2549343 7648 731483 9 21945

Ford Trading Company LLC 1820000 5460 - -

Jiangxi JMCG Industry

Co.Ltd. 1083907 3252 63167 5 1895

Ford Electric Mach

Technology (Nanjing) Co.Ltd. 158571 476 767317 6 23020

Ford Motor (China) Co. Ltd. - - 630402 8 18912

Ford Vietnam Limited - - 385000 0 11550

4727575392985267031421264626386343

Other re ceivables

31 December 2025 31 December 2024

Provisio

n for bad Provision for

Amount debts Amount bad debts

Jiangxi Jiangling Motors Imp.& Exp. Co. Ltd. 8678667 25931 4959843 24439

Ford Moto r (China) Co. Ltd. 1885311 5656 - -

Ford Motor Sales & Service

(Shang hai) Co. Ltd. 1343694 4031 - -

1190767235618495984324439

169JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

8 Related parties and related party transactions (Cont’d)

(6) Receivables from and payables to related parties (Cont’d)

Advances to suppliers

31 December 2025 31 December 2024

Nanchang Baojiang Steel Processing

Distribution Co. Ltd. 91759002 82972689

Financing receivables

31 December 2025 31 Decem ber 2024

Jiangxi Jiangling Motors Imp. & Exp.Co. Ltd. 147945413 -

JMCG Jingma Motors Co. Ltd. 2468962 8972230

Jiangxi ISUZU Engine Co.Ltd. 712751 5496370

Jiangxi JMCG Specialty Vehicles

Corporation Ltd. 6000 48401766

Jiangxi Jiangling Special Purpose

Vehicle Co.Ltd. - 2079413

Jiangxi ISUZU Co. Ltd. - 110000

15113312665059779

Cash at bank

31 December 2025 31 December 2024

JMCF 1592494805 1407604416

170JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

8 Related parties and related party transactions (Cont’d)

(6) Receivables from and payables to related parties (Cont’d)

Accounts payable

31 December 2025 31 December 2024

Jiangxi Jiangling Lear Interior System Co.Ltd. 419610763 360356137

Nanchang Jiangling Hua Xiang Auto Components

Co.Ltd. 339272999 636898853

Jiangxi Zhonglian Intelligent Logistics Co. Ltd. 298526234 327079328

Jiangxi Jiangling Chassis Co.Ltd. 281190452 255072881

Nanchang Huaxiang Automotive Interior & Exterior

Components Co. Ltd. 264555517 -

Jiangxi Jiangling Special Purpose Vehicle Co.Ltd. 258868938 178167668

Magna PT Powertrain (Jiangxi) Co. Ltd 230896819 213711414

Nanchang JMCG Liancheng Auto Component

Co.Ltd. 127011360 185528237

Nanchang JMCG Shishun Logistics Co. Ltd. 102537845 63592060

Ford 101603052 250461509

Faurecia Emissions Control Technologies (Nanchang)

Co.Ltd. 90135188 66628906

Dibao transportation equipment (Nanchang) Co. Ltd 87101643 55834503

Harbin Dongan Automotive Engine Manufacturing Co.Ltd. 79587095 41835249

Bosch Electric Drive Systems (Nanchang) Co. Ltd. 50329567 -

Nanchang Yinlun Heat-exchanger Co.Ltd. 49496828 37417773

Nanchang JMCG SMR Huaxiang Mirror Co. Ltd. 44866960 43878807

Jiangxi Jingwei Hirain Technologies Co. Inc. 37415298 40491776

Jiangxi Lingyun Automobile Industry Technology

Co.Ltd 37021732 48459492

Hanon Systems 34015272 50706474

Nanchang Unistar Electric & Electronics Co.Ltd. 30110251 30195971

Jiangxi Jiangling Group Special Vehicle Co.Ltd. 23989369 19674440

Jiangxi JMCG Specialty Vehicles Corporation Ltd. 20129520 26610602

Nanchang Lianda Machinery Co.Ltd. 18239104 10731546

Jiangxi JMCG Boya brake system Co. Ltd. 17024842 9558647

Jiangxi Mingfang Auto Parts Industry Co. Ltd 13960106 8944064

Changan Ford Automobile Co.Ltd. 11170263 23802841

Jiangxi Lingge Non-ferrous Metal Die-casting Co.Ltd. 9958459 28707639

Jiangling Aowei Aotomobile Spare Part Co.Ltd. 7000633 6042853

Jiangxi ISUZU Engine Co.Ltd. 5714745 2758942

Jiangxi Zhengxing Automotive Parts Manufacturing

Co. Ltd. 5306616 -

Jiangxi Jiangling group Fuxin Auto Parts Co. Ltd 4913122 3726062

Jiangxi JMCG Shangrao Industrial Co.Ltd. 4470727 7115719

Jiangling Motor Group (Nanchang) Fushan Energy

Co. LTD 3838607 2922507

Nanchang JMCG Xinchen Auto Component Co.Ltd. 3463250 2979179

JMCG 3005892 39486926

JMCG Jingma Motors Co. Ltd. 2650990 2606028

Nanchang JMCG Frame Co.Ltd. 456998 1091724

Jiangxi Lingrui Recycling Resources Development

Corporation - 11463008

Jiangxi Jiangling Motors Imp. & Exp. Co. Ltd. - 11243955

Ford Motor Co. Thailand Ltd. - 6940038

31194470563112723758

171JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

8 Related parties and related party transactions (Cont’d)

(6) Receivables from and payables to related parties (Cont’d)

Other payables

31 December 2025 31 December 2024

Ford 135932978 81 659263

Ford Global Technologies LLC 104008803 45777385

Ford Motor Research & Engineering (Nanjing) Co. Ltd. 101729209 61846021

Ford Motor (China) Co. Ltd. 77322435 144907458

Jiangxi Jiangling Motors Imp. & Exp. Co. Ltd. 71280639 51837372

Nanchang JMCG Shishun Logistics Co. Ltd. 65385503 26831215

Nanchang Jiangling Hua Xiang Auto Components Co.Ltd. 32534219 35565451

JMCG Property Management Co. 22149851 8466756

Ford Motor Sales & Service (Shanghai) Co. Ltd. 21704280 -

Jiangxi Jingwei Hirain Technologies Co. Inc. 13318646 911550

JMCG Jiangxi Engineering Construction Co. Ltd. 12843807 25905249

Jiangxi Jiangling Special Purpose Vehicle Co.Ltd. 9893430 27838079

Chongqing Anfu Vehicle Marketing Co. Ltd. 8611595 165753

JMCG 8449024 7636166

Jiangxi JMCG Specialty Vehicles Sales Corporation Ltd. 8199190 8431243

Jiangxi Zhonglian Intelligent Logistics Co. Ltd. 7271904 5703062

Jiangxi Jiangling Chassis Co.Ltd. 6101537 1681716

Jiangxi JMCG Specialty Vehicles Corporation Ltd. 5979373 5772611

Chengdu Wanxing Vehicle Sales & Service Co. Ltd. 3358444 401182

Jiangxi JMCG Industry Co.Ltd. 3230883 3000344

Chongqing Changan Automobile Co.Ltd 2691958 2574845

Jiangxi Jiangling Lear Interior System Co.Ltd. 2366149 1518633

Guizhou Wanfu Vehicle Sales & Service Co. Ltd. 2365316 2937977

Nanchang JMCG Liancheng Auto Component Co.Ltd. 1890523 1908156

Jiangxi JMCG Boya brake system Co. Ltd. 1646490 39921

Jiangxi Jiangling Group Special Vehicle Co.Ltd. 1547766 653129

Bosch Electric Drive Systems (Nanchang) Co. Ltd. 1365331 -

Magna PT Powertrain (Jiangxi) Co. Ltd 1311073 1488027

Nanchang Unistar Electric & Electronics Co.Ltd. 1246983 270888

China Changan Group Tianjin Sales Co.Ltd 1158724 216345

736896063555945797

Contract liabilities

31 December 2025 31 December 2024

Ford Global Technologies LLC 148989875 -

Jiangxi Jiangling Motors Imp. & Exp. Co. Ltd. 21463072 3930000

Ford Electric Mach Technology (Nanjing) Co. Ltd. 8568735 62310452

Ford Vietnam Limited 2377817 -

Jiangxi Jiangling Group Special Vehicle Co.Ltd. 1810239 1436028

Jiangxi Jiangling Special Purpose Vehicle Co.Ltd. 872161 1506350

Nanchang Hengou Industry Co. Ltd. 281807 1860835

Guizhou Wanjia Automobile Sales and Service Co. LTD - 1318467

18436370672362132

172JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

8 Related parties and related party transactions (Cont’d)

(6) Receivables from and payables to related parties (Cont’d)

Lease liabilities

31 December 2025 31 December 2024

Jiangxi Jiangling Motors Imp. & Exp. Co. Ltd. 17991177 30593850

Ford Motor (China) Co. Ltd. 429403 589853

JMCG - 5862186

1842058037045889

Notes Payable

31 December 2025 31 December 2024

Jiangxi Zhonglian Intelligent Logistics Co. Ltd. 51987191 -

Jiangxi Jiangling Lear Interior System Co.Ltd. 43447910 -

Jiangxi Jingwei Hirain Technologies Co. Inc. 21148158 -

Jiangxi Lingge Non-ferrous Metal Die-casting Co.Ltd. 20028725 -

Dibao transportation equipment (Nanchang) Co. Ltd 5987652 -

142599636-

(7) Commitments in relation to related parties

Capital commitments

31 December 2025 31 December 2024

JMCG Jiangxi Engineering Construction

Co. Ltd. 50047100 664010 0

Guarantee of commitments in relation to related parties is set out in Note 8(5)(c).

9 Contingencies

As at 31 December 2025 the Group had no contingencies that needed to be disclosed in the

notes to the financial statements.

10 Commitments

Capital expenditure commitments

Capital expenditures contracted for by the Group but are not yet necessary to be recognised

on the balance sheet as at the balance sheet date are as follows:

31 December 2025 31 December 2024

Buildings machinery and equipment 447365000 477562000

173JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

11 Subsequent events

(1) Profit distribution

According to the resolution of the meeting of Board of Directors on 27 March 2025 the Board

of Directors proposed to distribute cash dividends of RMB0.55581 per share to all

shareholders calculated on the basis of 854581922 issued shares minus the number of

shares held in the company’s dedicated repurchase securities account for a total of

RMB474985178.

12 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 31 December 2025 the Group’s borrowings

denominated in foreign currencies were USD130968 equivalent to RMB920551. The

Group's other accounts payable denominated in foreign currencies was USD33867645

equivalent to RMB238048904. The Group signed forward exchange contracts to mitigate

the foreign exchange risk(Note 5(3) Note 5(31)).

174JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

12 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 31 December 2025 and 31 December 2024

as follows:

31 December 2025 31 December 2024

USD USD

Financial assets denominated in

foreign currency -

Derivative financial asset - 12612380

Financial liabilities denominated in

foreign currency -

Derivative financial liability 695349 -

Current portion of long-term

borrowings 460275 470727

Long-term borrowings 460276 941453

Other payables 238048904 78220386

23966480479632566

As at 31 December 2025 for various types of foreign currency financial assets and foreign

currency financial liabilities if RMB appreciates or depreciates by 10% against the US dollar

and other factors remain unchanged the Group will increase or decrease its total profit by

approximately RMB23966480 (31 December 2024: approximately RMB6702019)

175JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

12 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 31 December 2025 the Group’s short-term borrowings of

RMB1950000000 (31 December 2024: RMB1500000000) were fixed-rate borrowings

and long-term borrowings of USD130968 (31 December 2024: USD196453) were fixed-

rate contracts therefore there was no significant cash flow interest rate risk.The Group continuously monitors the interest rate position of the Group. Increases in

interest rates will increase the cost of new borrowing and therefore could have a material

adverse effect on the Group’s financial performance. Management makes adjustments

timely with reference to the latest market conditions and may enter into interest rate swap

agreements to mitigate its exposure to interest rate risk. During 2025 and 2024 the Group

did not enter into any interest rate swap agreements.As at 31 December 2025 and 31 December 2024 there was no significant difference

between the fair value and the carrying amount of the Group’s bank borrowings with fixed

rates.

(2) Credit risk

The Group’s credit risk mainly arises from cash at bank and on hand notes receivable

accounts receivable financing receivables other receivables long-term receivables and

derivative financial assets at fair value through profit or loss that are not included in the

impairment assessment scope. The carrying amount of the Group’s financial assets reflects

its maximum credit exposure at the balance sheet date.The Group expects that there is no significant credit risk associated with cash at bank and

on hand since they are deposited at state-owned banks and other large or medium size

banks with good reputation and high credit rating. The Group does not expect that there

will be significant losses from non-performance by these banks.

176JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

12 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 31 December 2025 the Group had no significant collateral or other credit enhancements

held as a result of the debtor’s mortgage (31 December 2024: Nil).

(3) Liquidity risk

Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the

Group. The Group monitors rolling forecasts of the Group’s short-term and long-term liquidity

requirements to ensure it has sufficient cash while maintaining sufficient headroom on its

undrawn committed borrowing facilities from major financial institutions so that the Group

does not breach borrowing limits or covenants on any of its borrowing facilities to meet the

short-term and long-term liquidity requirements.As at the balance sheet date the financial liabilities of the Group were analysed by their

maturity date below at their undiscounted contractual cash flows:

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

31 December 2024

Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total

Short-term

borrowings 1500000000 - - - 1500000000

Accounts

payable 10061223944 - - - 10061223944

Other payables 5742026472 - - - 5742026472

Lease liabilities 90725324 84460529 10891131 - 186076984

Long-term

borrowings 490144 483082 476023 - 1449249

173944658848494361111367154-17490776649

177JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

12 Financial instrument and risk (Cont’d)

(3) Liquidity risk (Cont’d)

(i) As at 31 December 2025 the Group did not have lease contracts that had been signed but

had not yet been performed.

13 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 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 31 December 2024 the assets measured at fair value on a recurring basis by the above

three levels were analysed below:

Level 1 Level 2 Level 3 Total

Financial assets

Derivative financial asset-

Forward foreign exchange

contracts - 12612380 - 12612380

Financing receivables -

Notes receivable - 3020655 02 - 302065 502

-314677882-314677882

As at 31 December 2025 the liabilities measured at fair value on a recurring basis by the

above three levels were analysed below:

178JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

13 Fair value estimates(Cont’d)

Level 1 Level 2 Level 3 Total

Financial liabilities

Derivative financial liabilities -

Forward foreign exchange contracts - 695349 - 695349

(1) Assets and liabilities measured at fair value on a recurring basis (Cont'd)

As at 31 December 2025 the Group had no continuing liabilities at fair value.The Group takes the date on which events causing the transfers between the levels take

place as the timing specific for recognising the transfers. There was no transfer between

Level 1 and Level 2 in 2025.The fair value of financial instruments traded in an active market is determined at the quoted

market price; and the fair value of those not traded in an active market is determined by the

Group using valuation technique.

(2) Assets measured at fair value on a non-recurring basis

As at 31 December 2025 and 31 December 2024 the Group had no assets measured at fair

value on a non-recurring basis.

(3) Assets and liabilities not measured at fair value but for which the fair value is disclosed

The Group’s financial assets and liabilities measured at amortised cost mainly comprise

notes receivable accounts receivable other receivables long-term receivables short-term

borrowings payables lease liabilities and long-term borrowings.The carrying amount of the Group’s financial assets and liabilities not measured at fair value

is a reasonable approximation of their fair value.

14 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 31 December 2025 and 31 December 2024 the Group’s equity ratio was as follows:

31 December 2025 31 December 2024

Total borrowings 1950920551 1501412180

Total shareholders’ equity 11392038408 10595344521

Equity ratio 17% 14%

179JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

15 Notes to the Company’s financial statements

(1) Accounts receivable

31 December 2025 31 December 2024

Accounts receivable 6815674720 5595070789

Less: Provision for bad debts (551092111) (74023216)

62645826095521047573

(a) The aging of accounts receivable was analysed as follows:

31 December 2025 31 December 2024

Within 1 year 6034988177 541510761 9

Over 1 year 780686543 17996317 0

68156747205595070789

As of 31 December 2025 accounts receivable with significant individual amounts and

aging exceeding three years was analysed as follows:

Balance Reason and collection risk

Company1 64924598 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.Company2 64698887 Accounts receivable from related parties within

the group expected to be fully recovered without

provision for bad debts

(b) As at 31 December 2025 the top five accounts receivable ranked by the balances of the

debtors were analysed as follows:

Amount of

provision for bad

Balance debts % of total balance

The total amount of

accounts receivable

in the top five 6590634356 549857303 96.70%

180JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

15 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:

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 29.00% 540672868 27.21%

Provision for bad debts on the

grouping basis (ii) 4828730054 71.00% 10419243 0.22%

6815674720100.00%5510921118.09%

31 December 2024

Book balance Provision for bad debts

% of total Provision

Amount balance Amount ratio

Provision for bad debts on the

individual basis (i) 2294478118 41% 66796993 2.91%

Provision for bad debts on the

grouping basis (ii) 3300592671 59% 7226223 0.22%

5595070789100%740232161.32%

(i) Accounts receivable for which the provision for bad debts was provided on the individual

basis were analysed follows:

31 December 2025

Book balance Provision for bad debts

Amount Lifetime ECL (%) Provision for bad debts

Receivables from related parties

within the Group i) 1922020068 25% 475748270

Receivables for

automobiles ii) 64924598 100% 64924598

1986944666540672868

31 December 2024

Book balance Provision for bad debts

Provision for bad

Amount Lifetime ECL (%) debts

Receivables from related parties

within the Group i) 2227681125 - -

Receivables for

automobiles ii) 66796993 100% 66796993

229447811866796993

i) As at 31 December 2025 the Company’s accounts receivable from subsidiary JMC &

Ford (Shanghai) SZFJ and GZFJ were RMB529737786 RMB1385321982 and

RMB6960300 (31 December 2024: RMB1453456415 RMB767264410 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.

181JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

15 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 31 December 2025 the Company assessed the expected credit losses of the

relevant accounts receivable which were expected to be unrecoverable and therefore

made a provision for bad debts in full amounting to RMB64924598 (31 December 2024:

RMB66796993) which was included in the reversal of profit or loss of RMB1872395

(2024: Return to RMB5433007).

(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:

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

31 December 2024

Book balance Provision for bad debts

Amount Lifetime ECL (%) Amount

Not overdue 136590607 0.03% 40628

Overdue for 1 to 30 days 840000 0.55% 4605

Overdue for 31 to 60 days - - -

Overdue for 61 to 90 days - - -

Overdue over 90 days 1074500 9.00% 96705

138505107141938

Grouping – Export sales of general automobiles:

31 December 2025

Book balance Provision for bad debts

Amount Lifetime ECL (%) Amount

Not overdue 4538555702 0.20% 9077111

182JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

15 Notes to the Company’s financial statements (Cont’d)

(1) Accounts receivable (Cont’d)

(c) Provision for bad debts (Cont’d)

(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are

analysed as follows (Cont’d):

Grouping – Export sales of general automobiles(Cont’d):

31 December 2024

Book balance Provision for bad debts

Amount Lifetime ECL (%) Amount

Not overdue 2933133292 0.20% 5866267

Grouping - Sales of new energy automobiles:

31 December 2025

Book balance Provision for bad debts

Amount Lifetime ECL (%) Amount

Overdue over 90 days 562680 80.00% 450144

31 December 2024

Book balance Provision for bad debts

Amount Lifetime ECL (%) Amount

Overdue over 90 days 563760 80.00% 451008

Grouping – Automobile parts:

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

31 December 2024

Book balance Provision for bad debts

Amount Lifetime ECL (%) Amount

Not overdue 202384142 0.30% 607153

Overdue for 1 to 30 days 10256078 0.30% 30768

Overdue for 31 to 60 days 8788453 0.50% 43942

Overdue for 61 to 90 days 5976016 0.60% 35856

Overdue over 90 days 985823 5.00% 49291

228390512767010

183JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

15 Notes to the Company’s financial statements (Cont’d)

(1) Accounts receivable (Cont’d)

(c) Provision for bad debts (Cont’d)

(iii) The provision for bad debts was RMB477068895 this year.(d) There was no provision for bad debts actually written off during the year.(e) As at 31 December 2025 and 31 December 2024 there were no accounts receivable pledged.

(2) Other receivables

31 December 2025 31 December 2024

Receivables from land acquisition

and storage 79807336 -

Gas and electricity bills 21112025 18531901

Receivables from JMCH 14767717 14542410

Import working capital 5000000 3900523

Receivables from Jiangling Ford

(Shanghai) - 89250000

Others 14363159 186126 97

135050237144837531

Less: Provision for bad debts (143653) (2203 24)

134906584144617207

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:

31 December 2025 31 December 2024

Within 1 year 125074373 1316543 49

Over 1 year 9975864 131831 82

135050237144837531

184JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

15 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:

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%

31 December 2024

Book balance Provision for bad debts

% of total Provision

Amount balance Amount ratio

Provision for bad debts on the

individual basis (i) 105089777 73% - -

Provision for bad debts on

the grouping basis (ii) 39747754 27% 220324 0.55%

144837531100%2203240.15%

185JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

15 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 2024 39747754 220324 105089777 - 220324

Increase/(decrease)

in the current year 727430 - (10514724) - -

Bad debt provision

increased in the

current year - (76671) - - (76671)

31 December 2025 40475184 143653 94575053 - 143653

As at 31 December 2025 and 31 December 2024 the Company did not have any other

receivables at Stage 2 or Stage 3. Other receivables at Stage 1 were analysed below:

(i) As at 31 December 2025 and 31 December 2024 the Company’s other receivables with

provision for bad debts on the individual basis were analysed below:

31 December 2025 31 December 2024

Provision Provision

Book 12-month for bad Book 12-month for bad

Stage 1 balance ECL rates debts balance ECL rates debts

Receivables from land

acquisition and

storage 79807336 - - - - -

Receivables from

JMCH 14767717 - - 14542410 - -

Receivables from

Jiangling Ford

(Shanghai) - - - 89250000 - -

Receivables from

refund of social

insurance - - - 1297367 - -

94575053--105089777--

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.

186JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

15 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 31 December 2025 and 31 December 2024 the Company’s other receivables with

provision for bad debts on the grouping basis were analysed below:

Other receivables with provision on the grouping basis at Stage 1:

As at 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% 1494 0 ECL

Others 14363159 0.46% 6563 1 ECL

40475184143653

As at 31 December 2024 the Company’s other receivables with provision for bad debts on the

grouping basis were analysed below:

Book 12-month ECL Provision for

balance rates bad debts Reason

Provision on the grouping basis:

Gas and electricity bills 18531901 0.49% 91314 ECL

Import working capital 3900523 0.49% 19219 ECL

Others 17315330 0.63% 109791 ECL

39747754220324

(c) The reversed provision for bad debts in the current year amounted to RMB76671.(d) There was no provision for bad debts written off during the year.

187JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

15 Notes to the Company’s financial statements (Cont’d)

(2) Other receivables (Cont’d)

(e) As at 31 December 2025 the top five other receivables ranked by remaining

balances were analysed as follows:

% of Provision

total for bad

Nature Balance Aging balance debts

land compensation

Company 1 and reserve fund 79807336 within 1 year 59% -

Company 2 Electricity bills 16993000 within 1 year 13% 50774

Accounts receivable

Company 3 from subsidiaries 14767717 More than 1 year 11% -

Import working

Company 4 capital etc. 8678667 within 1 year 6% 25931

Company 5 Gas bills 4119025 within 1 year 3% 12307

12436574592%89012

(3) Long-term equity investments

31 December 2025 31 December 2024

Subsidiaries (a) 3646975223 2858943493

Associates (b) 198792911 214449021

38457681343073392514

Less: Provision for impairment of long-term

equity investments for subsidiaries (3191472283) (2301440553 )

Provision for impairment of long-term

equity investments for associates - -

(3191472283)(2301440553)

654295851771951961

188JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

15 Notes to the Company’s financial statements (Cont’d)

(3) Long-term equity investments (Cont’d)

(a) Subsidiaries

Movements for

th e current year

Cash

Ending balance dividends

31 December Additional 31 December of provision for declared this 31 December

2024 investments 2025 impairment year 2025

Carrying

Gross amount Gross amount amount

JMCH 2686943493 - 2686943493 (2301440553) - 385502940

JMCS 50000000 - 50000000 - - 50000000

SZFJ 10000000 - 10000000 - - 10000000

GZFJ 10000000 - 10000000 - - 10000000

Jiangling Ford

(Shanghai) 102000000 788031730 890031730 (890031730) - -

28589434937880317303646975223(3191472283)-455502940

(b) Associates

Movements for the current year Impairment provision

Share of net

Increase in profit/(loss) Cash Voting 31 31

31 December the current under equity dividends Provision for 31 December Shareholding rights December December

2024 year method declared impairment 2025 (%) (%) 2025 2024

The Power

Company 189544236 - (17376 724) - - 17216751 2 40.0 0% 40.00% - -

Hanon

Systems 24904785 - 1720 614 - - 2662539 9 19.1 5% 33.33% - -

Total 214449021 - (15656 110) - - 19879291 1 - -

189JIANGLING MOTORS CORPORATION LTD.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

15 Notes to the Company’s financial statements (Cont’d)

(4) Revenue and cost of sales

(a) Revenue and cost of sales

20252024

revenue cost revenue cost

Main

operations 36764702071 32649840174 36161828891 31639833312

Other

operations 1094182455 657139123 1775252124 826412561

37858884526333069792973793708101532466245873

(b) The breakdown of revenue

2025

Automobile

Materials and maintenance

Automobiles parts services etc. Total

Recognised at a time point 35216528393 1889083506 - 37105611899

Recognised within a certain period - - 753272627 753272627

35216528393188908350675327262737858884526

2024

Automobile

Materials and maintenance

Automobiles parts services etc. Total

Recognised at a time point 34578883303 2287309696 - 36866192999

Recognised within a certain period - - 1070888016 1070888016

345788833032287309696107088801637937081015

As of 31 December 2025 the revenue corresponding to the performance obligations that the

company has signed but has not yet fulfilled or completed is RMB20242500 and is expected

to recognize it as operating income in 2026.

(5) Investment income

20252024

Investment gain from forward exchange

settlement 10128966 5237734

Losses on discount of financing receivables

eligible for derecognition (2378058) (110250)

Losses on long-term equity investments under

equity method (15656110) (10363917)

(7905202)(5236433)

There is no significant restriction on the remittance of investment income to the Company.

190JIANGLING MOTORS CORPORATION LTD.

SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

1 Statement of non-recurring profit or loss for 2025

20252024

Government grants recognised in profit or loss for

the current period except those that are

closely related to ordinary activities and

conform to the national policies and

regulations and are granted in accordance

with certain standards and have a continuous

impact on the Company’s profit or loss 464318284 18440974 5

Gains or losses on disposal of non-current assets 59557455 66554 9

Fund occupation fees received from non-financial

institutions 2474558 476615 1

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 2982859 2260358 4

Net amount of other non-operating income and

expenses 1793470 (228486 7)

Reversal of impairment charges for receivables

that are tested separately for impairment 1872395 543300 7

One-off expenses incurred due to discontinuation

of related business activities (9707120) (206031 6)

523291901213532853

Effect of income tax (79541777) (3337767 4)

Effect of gains or losses on minority interests (net

of tax) 2870761 65476 0

446620885180809939

(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.

191JIANGLING MOTORS CORPORATION LTD.

SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

(All amounts in RMB Yuan unless otherwise stated)

[English translation for reference only]

2 Return on net assets and earnings per share

Weighted average Earnings per share

return on net assets Basic earnings per Diluted earnings

(%) share per share

202520242025202420252024

Net profit attributable to

ordinary shareholders

of the Company 10.34% 14.20% 1.38 1.78 1.38 1.78

Net profit attributable to

ordinary shareholders

of the Company net of

non-recurring profit or

loss 6.45% 12.53% 0.86 1.57 0.86 1.57

192