Chongqing Changan Automobile Company Limited
2023 Semi-annual Report Financial Statements
August 2023The Financial Statements
I. Auditing Report
No audit on the semi-annual financial report.II. Financial statements
Financial in notes to the statements of the unit is: RMB yuan
1. Consolidated Balance Sheet
In RMB Yuan
Account 2023.6.30 2023.1.1
Current assets:
Cash 65985946564.21 53530183827.34
Trading financial assets 262239446.37 280315571.09
Notes receivable 33963917823.31 35849660652.96
Accounts receivable 2477017799.35 3068414415.29
Prepayments 662389388.99 749572262.00
Other receivables 959635940.20 1261157951.14
Including: dividends receivable 180656814.04
Inventories 10252940583.44 5823307512.90
Contract assets 2227324510.17 458389187.10
Assets held for sale 327144.11 -
Other current assets 1126348926.89 1054779668.19
Total current assets 117918088127.04 102075781048.01
Non-current assets:
Long-term equity investments 13788910316.27 14406662456.28
Investment in other equity instruments 489950000.00 489950000.00
Investment properties 6309359.26 6422715.04
Fixed assets 18869352705.47 19346764691.44
Construction in progress 2225500468.09 1387898218.64
Right-of-use asset 186760454.06 100813386.01
Intangible assets 15068479509.60 4446385255.68
Development expenditure 1393772255.65 723211177.47
Goodwill 1809337918.87 9804394.00
Long-term deferred expenses 25237506.61 26375422.17
Deferred tax assets 3211105057.00 3028487187.18
Total non-current assets 57074715550.88 43972774903.91
TOTAL ASSETS 174992803677.92 146048555951.92
Current liabilities:
Short-term loans 50000000.00 29000000.00
Trading financial liabilities 37813520.40 -
Notes payable 33712072409.02 22072793864.83
2Accounts payable 30465634254.25 29449664138.75
Contract liability 7116078624.58 5655256792.66
Payroll payable 4002974882.87 2807158489.85
Taxes payable 1546790269.12 1749946082.32
Other payables 8462527432.79 6082766424.67
Including: interest payable 16112069.40 1478888.85
Dividends payable 2341524610.92 79742.80
Non-current liabilities within one year 69596855.90 885723901.34
Other current liabilities 7391295648.04 6627044667.62
Total current liabilities 92854783896.97 75359354362.04
Non-current liabilities:
Long-term loans 76000000.00 36000000.00
Bonds payable 999558490.56 999528301.88
Lease liability 120870028.21 60205397.98
Long-term payables 136176629.42 553518750.12
Long-term payroll payable 32144585.90 35013000.00
Estimated liabilities 5663765591.18 4589299321.49
Deferred Revenue 350542948.42 347568549.62
Deferred tax liabilities 1641744451.94 237036741.16
Other non-current liabilities 1186870228.93 882226966.14
Total non-current liabilities 10207672954.56 7740397028.39
Total liabilities 103062456851.53 83099751390.43
Owners’ equity (or Shareholders’ equity):
Share capital 9919323000.00 9921799422.00
Capital reserves 8055341447.46 8532806685.77
Less: treasury shares 442866474.72 627060416.52
Other comprehensive income 146575802.76 98841615.42
Special reserves 53566585.57 24090898.05
Surplus reserves 3528137635.53 3528137635.53
Retained earnings 46691054344.13 41379489865.45
Equity attributable to owners 67951132340.73 62858105705.70
Minority interests 3979214485.66 90698855.79
Total Owners’ equity (or Shareholders’ equity) 71930346826.39 62948804561.49
Liabilities and owners' equity (or shareholders'
174992803677.92146048555951.92
equity) in total
Legal person: Zhu Huarong Chief financial officer: Zhang Deyong The head of accounting department: Chen Jianfeng
2. Balance sheet
In RMB Yuan
Account 2023.6.30 2023.1.1
Current assets:
Cash 49612761169.23 44742705933.76
Trading financial assets 262239446.37 251165128.80
Notes receivable 30191885135.89 32497209409.96
Accounts receivable 9034639091.77 5538504821.82
Prepayments 384123437.64 519014279.72
3Other receivables 287117037.30 859026748.64
Including: dividends receivable 180656814.04
Inventories 3116400210.80 2872390838.54
Contract assets 190244001.11 221555444.48
Other current assets 1585516.57 199954784.05
Total current assets 93080995046.68 87701527389.77
Non-current assets:
Long-term equity investments 18677206479.38 17385137116.25
Investment in other equity instruments 489950000.00 489950000.00
Fixed assets 13738675532.50 14214227798.06
Construction in progress 1302130391.01 895860965.16
Right-of-use asset 146496392.45 78806182.57
Intangible assets 3107507892.58 3299143861.49
Development expenditure 842475143.40 616814902.46
Long-term deferred expenses 23330341.50 24406892.18
Deferred tax assets 2742289372.93 2631189529.75
Total non-current assets 41070061545.75 39635537247.92
TOTAL ASSETS 134151056592.43 127337064637.69
Current liabilities:
Notes payable 22929207918.01 18728133049.99
Accounts payable 21951564942.03 21488548997.96
Contract liability 3889013319.36 3997514972.13
Payroll payable 3205228940.22 2436938973.59
Taxes payable 723833589.23 1376448691.45
Other payables 6307174533.43 5425776798.83
Including: interest payable 16022222.20 1478888.85
Dividends payable 2341414868.12
Non-current liabilities within one year 52058482.61 635180849.52
Other current liabilities 5933407026.04 5932680982.04
Total current liabilities 64991488750.93 60021223315.51
Non-current liabilities:
Long-term loans 76000000.00 36000000.00
Bonds payable 999558490.56 999528301.88
Lease liability 94497087.94 45437270.79
Long-term payables 136736360.65 144571302.45
Long-term payroll payable 17938948.80 20565000.00
Estimated liabilities 4103060663.98 3936444965.49
Deferred Revenue 150000000.00 150000000.00
Deferred tax liabilities 200127370.94 195053909.31
Other non-current liabilities 999203989.60 844435549.31
Total non-current liabilities 6777122912.47 6372036299.23
Total liabilities 71768611663.40 66393259614.74
Owners’ equity (or Shareholders’ equity):
Share capital 9919323000.00 9921799422.00
Capital reserves 8227900416.30 8047195325.61
Less: treasury shares 442866474.72 627060416.52
4Other comprehensive income 157416810.63 157416810.63
Special reserves 24136173.85 10285640.79
Surplus reserves 3528137635.53 3528137635.53
Retained earnings 40968397367.44 39906030604.91
Total Owners’ equity (or Shareholders’ equity) 62382444929.03 60943805022.95
Liabilities and owners' equity (or shareholders'
134151056592.43127337064637.69
equity) in total
3. Consolidated Income Statement
In RMB Yuan
Account Current Period Prior Period
1.Operating revenue 65492098869.01 56573568393.71
Less: Operating cost 54001999268.58 45360090482.20
Tax and surcharges 2186174248.99 1946300231.77
Operating expenses 3068434621.37 2285329821.77
General and administrative expenses 2271960408.55 2184034305.10
Research and development expenses 2964604104.48 1932294144.67
Financial expenses (453268104.89) (437998348.99)
Interest expense 36814471.44 17892411.14
Interest income 532594819.89 438428075.90
Add: Other income 657988649.18 186910289.65
Investment income 5023108819.32 2354040073.27
Including: Investment income from associates and joint
(180436966.53)78821605.75
venture
Gains from changes in fair value (23334661.15) 26136888.77
Credit impairment loss (15513488.10) (10774686.62)
Asset impairment loss (397274160.99) (241827585.46)
Gain on disposal of assets 366667730.28 68244082.28
2.Operating profit 7063837210.47 5686246819.08
Add: Non-operating income 93295575.81 54366637.51
Less: Non-operating expenses 13498961.02 4870215.23
3.Total profit 7143633825.26 5735743241.36
Less: Income tax expense 176620825.19 (103280125.74)
4.Net profit 6967013000.07 5839023367.10
Classification by going concern
Net profit from continuing operations 6967013000.07 5839023367.10
Net profit from discontinued operations
Classification by ownership attribution
Net profit attributable to owners 7652979346.80 5857626135.78
Minority interests (685966346.73) (18602768.68)
5.Other comprehensive income net of tax 47734187.34 121654.81
Net after-tax net of other comprehensive income
47734187.34121654.81
attributable to the parent company owner
Other comprehensive income that will be 47734187.34 121654.81
5reclassified into profit or loss
Other comprehensive income that can be
146228.18
transferred to profit or loss under the equity method
Foreign currency financial statement translation
47734187.34(24573.37)
difference
6.Total comprehensive income 7014747187.41 5839145021.91
Total comprehensive income attributable to owners 7700713534.14 5857747790.59
Total comprehensive income attributable to minority
(685966346.73)(18602768.68)
interest
7.Earnings per share
Basic earnings per share 0.78 0.60
Diluted earnings per share 0.76 0.59
Legal person: Zhu Huarong Chief financial officer: Zhang Deyong The head of accounting department: Chen Jianfeng
4. Income Statement
In RMB Yuan
Account Current Period Prior Period
1.Operating revenue 54376375197.21 50290300571.12
Less: Operating cost 45316394387.31 40914984492.63
Tax and surcharges 1453554280.40 1434768916.69
Operating expenses 1594619192.27 1475590737.64
General and administrative expenses 1686722665.70 1915207107.81
Research and development expenses 2538873301.65 1851660640.99
Financial expenses (368021413.76) (342363432.16)
Interest expense 22584078.19 13595854.23
Interest income 399510519.70 365385141.66
Add: Other income 657920000.00 54300000.00
Investment income 585161578.54 986054122.33
Including: Investment income from associates and
(141552078.57)(92372274.55)
joint venture
Gains from changes in fair value 32897781.54 26136888.77
Credit impairment loss 949935.35 (286476.97)
Asset impairment loss (288325731.15) (128723015.24)
Gain on disposal of assets 365125023.58 42691501.37
2.Operating profit 3507961371.50 4020625127.78
Add: Non-operating income 81107919.29 25372227.33
Less: Non-operating expenses 11520621.79 2696319.99
3.Total profit 3577548669.00 4043301035.12
Less: Income tax expense 173767038.35 (136087013.13)
4.Net profit 3403781630.65 4179388048.25
Net profit from continuing operations 3403781630.65 4179388048.25
Net profit from discontinued operations
5.Other comprehensive income net of tax 146228.18
6.Total comprehensive income 3403781630.65 4179534276.43
65. Consolidated cash flow statement
In RMB Yuan
Account Current Period Prior Period
1.Cash flows from operating activities:
Cash received from sale of goods or rendering of services 73931703144.09 61813960686.95
Refunds of taxes 1199246444.10 896338589.28
Cash received relating to other operating activities 1753218395.89 1401417655.54
Subtotal of cash inflows 76884167984.08 64111716931.77
Cash paid for goods and services 54711756692.18 46918151331.30
Cash paid to and on behalf of employees 4415366034.62 3773793442.65
Cash paid for all types of taxes 5442991004.83 4028962242.26
Cash paid relating to other operating activities 5358597538.86 3538573495.36
Subtotal of cash outflows 69928711270.49 58259480511.57
Net cash flows from operating activities 6955456713.59 5852236420.20
2.Cashflows from investing activities:
Cash received from investment recovery 14839200.00
Cash received from investment income 1406842.07 381628412.00
Net cash received from disposal of fixed assets intangible
35915330.45280603391.85
assets and other long-term assets
Cash received relating to other investing activities 6216944276.29
Subtotal of cash inflows 6254266448.81 677071003.85
Cash paid for acquisition of fixed assets intangible assets and
857592457.14783516340.12
other long-term assets
Cash paid for acquisition of investments 137000000.00 1461640640.00
Cash paid relating to other investing activities 815126333.76
Subtotal of cash outflows 994592457.14 3060283313.88
Net cash flows from investing activities 5259673991.67 (2383212310.03)
3.Cash flows from financing activities:
Absorb cash received from investment 35190000.00
Cash received from borrowing 90000000.00 68070000.00
Cash received relating to other financing activities 362339945.61 715239432.26
Subtotal of cash inflows 487529945.61 783309432.26
Cash repayments of borrowings 629000000.00 300903500.00
Cash paid for distribution of dividends or profits and interest
6163524.401797127172.44
expenses
Cash paid relating to other financing activities 418524690.02 699230692.02
Subtotal of cash outflows 1053688214.42 2797261364.46
Net cash flows from financing activities (566158268.81) (2013951932.20)
4.Effect of changes in exchange rate on cash 13258565.35 59278475.19
5.Net increase in cash and cash equivalents 11662231001.80 1514350653.16
Add: Opening balance of cash and cash equivalents 52491435047.74 49517916834.99
6.Closing balance of cash and cash equivalents 64153666049.54 51032267488.15
6. Cash flow statement
In RMB Yuan
Account Current Period Prior Period
71.Cash flows from operating activities:
Cash received from sale of goods or rendering of services 57757311678.85 51488841934.67
Cash received relating to other operating activities 30303650.49 46609602.87
Cash received relating to other operating activities 1828991752.50 676108022.43
Subtotal of cash inflows 59616607081.84 52211559559.97
Cash paid for goods and services 42458816511.21 38192576888.27
Cash paid to and on behalf of employees 2826100179.04 2615212696.17
Cash paid for all types of taxes 3421770360.23 2892112750.99
Cash paid relating to other operating activities 3661788216.38 2383343811.11
Subtotal of cash outflows 52368475266.86 46083246146.54
Net cash flows from operating activities 7248131814.98 6128313413.43
2.Cashflows from investing activities:
Cash received from investment recovery 14839200.00
Cash received from return on investments 1556842.07 381628412.00
Net cash received from disposal of fixed assets intangible
8857134.39255368088.61
assets and other long-term assets
Subtotal of cash inflows 10413976.46 651835700.61
Cash paid for acquisition of fixed assets intangible assets and
723218813.52633161880.29
other long-term assets
Cash paid for acquisition of investments 1069135009.18 1461640640.00
Subtotal of cash outflows 1792353822.70 2094802520.29
Net cash flows from investing activities (1781939846.24) (1442966819.68)
3.Cash flows from financing activities:
Cash received from borrowings 40000000.00 40000000.00
Subtotal of cash inflows 40000000.00 40000000.00
Cash paid for debt repayment 600000000.00 300000000.00
Cash paid for distribution of dividends or profits and interest
3470000.001795680672.36
expenses
Cash paid relating to other financing activities 32666733.27 12551861.64
Subtotal of cash outflows 636136733.27 2108232534.00
Net cash flows from financing activities (596136733.27) (2068232534.00)
4.Effect of changes in exchange rate on cash
5.Net increase in cash and cash equivalents 4870055235.47 2617114059.75
Add: Opening balance of cash and cash equivalents 44732418327.28 41889838553.29
6.Closing balance of cash and cash equivalents 49602473562.75 44506952613.04
87. Consolidated statement of changes in shareholders’ equity
Current Period
In RMB Yuan
Current period
Equity attributable to owners
Items
Other Minority
Less: Treasury Special Surplus Retained Total equity
Share capital Capital reserves comprehensiv interest
shares reserve reserve earnings
e income
I. At end of last year 9921799422.00 8532806685.77 627060416.52 98841615.42 24090898.05 3528137635.53 41379489865.45 90698855.79 62948804561.49
II. At beginning of year 9921799422.00 8532806685.77 627060416.52 98841615.42 24090898.05 3528137635.53 41379489865.45 90698855.79 62948804561.49
III. Changes during the year (2476422.00) (477465238.31) (184193941.80) 47734187.34 29475687.52 5311564478.68 3888515629.87 8981542264.90
1.Total comprehensive
47734187.347652979346.80(685966346.73)7014747187.41
income
2. Capital contributed by
owners and capital (2476422.00) (477465238.31) (157449592.97) (322492067.34)
decreases
(1) Ordinary shares
invested by owners
(2) The amount of share-
based payment included in 187899000.00 187899000.00
owner's equity
(3) Others (2476422.00) (665364238.31) (157449592.97) (510391067.34)
3. Distribution of profit (26744348.83) (2341414868.12) (150000.00) (2314820519.29)
(1) Distribution to
(26744348.83)(2341414868.12)(150000.00)(2314820519.29)
owners
(2) Others
4.Internal carry forward of
owner's equity
5. Special reserves 29475687.52 29475687.52
(1) Pick-up in current
64708453.3064708453.30
period
(2) Used in current
(35232765.78)(35232765.78)
period
96.Others 4574631976.60 4574631976.60
IV. At end of current period 9919323000.00 8055341447.46 442866474.72 146575802.76 53566585.57 3528137635.53 46691054344.13 3979214485.66 71930346826.39
Prior period
In RMB Yuan
Prior period
Equity attributable to owners
Items
Other Minority
Less: Treasury Special Surplus Total equity
Share capital Capital reserves comprehens Retained earnings interest
shares reserve reserve
ive income
I. At end of last year 7632153402.00 9776193360.38 655812327.60 69442469.53 27988260.61 2982292413.67 35900674525.13 133307840.48 55866239944.20
II. At beginning of year 7632153402.00 9776193360.38 655812327.60 69442469.53 27988260.61 2982292413.67 35900674525.13 133307840.48 55866239944.20
III. Changes during the
2289646020.00(1433769009.30)121654.8121158894.874078769944.24(7729996.65)4948197507.97
year
1.Total comprehensive
121654.815857626135.78(18602768.68)5839145021.91
income
2. Capital contributed by
owners and capital 855877010.70 855877010.70
decreases
(1) The amount of
share-based payment
192310900.00192310900.00
included in owner's
equity
(2) Others 663566110.70 663566110.70
3. Distribution of profit (1778856191.54) (1778856191.54)
Distribution to
(1778856191.54)(1778856191.54)
owners
4.Internal carry forward
2289646020.00(2289646020.00)
of owner's equity
Capital reserve
converted into capital 2289646020.00 (2289646020.00)
(or share capital)
5. Special reserves 21158894.87 21158894.87
(1) Pick-up in 46183489.83 46183489.83
10current period
(2) Used in current
(25024594.96)(25024594.96)
period
6.Others 10872772.03 10872772.03
IV. At end of current
9921799422.008342424351.08655812327.6069564124.3449147155.482982292413.6739979444469.37125577843.8360814437452.17
period
118. Statement of changes in shareholders’ equity
Current Period
In RMB Yuan
Current period
Items Other Less: Treasury
Share capital Capital reserves comprehensive Special reserve Surplus reserve Retained earnings Total equity
shares
income
I. At end of last year 9921799422.00 8047195325.61 627060416.52 157416810.63 10285640.79 3528137635.53 39906030604.91 60943805022.95
II. At beginning of year 9921799422.00 8047195325.61 627060416.52 157416810.63 10285640.79 3528137635.53 39906030604.91 60943805022.95
III. Changes during the
(2476422.00)180705090.69(184193941.80)13850533.061062366762.531438639906.08
year
1.Total comprehensive
3403781630.653403781630.65
income
2. Capital contributed by
owners and capital (2476422.00) 180705090.69 (157449592.97) 335678261.66
decreases
(1) The amount of
share-based payment 187899000.00 187899000.00
included in owner's equity
(2) Others (2476422.00) (7193909.31) (157449592.97) 147779261.66
3. Distribution of profit (26744348.83) (2341414868.12) (2314670519.29)
(1) Distribution to
(26744348.83)(2341414868.12)(2314670519.29)
owners
(2) Others
4.Internal carry forward of
owner's equity
Capital reserve
converted into capital (or
share capital)
5. Special reserves 13850533.06 13850533.06
(1) Pick-up in current
32871513.6632871513.66
period
(2) Used in current
(19020980.60)(19020980.60)
period
6.Disposal of subsidiaries
12IV. At end of current period 9919323000.00 8227900416.30 442866474.72 157416810.63 24136173.85 3528137635.53 40968397367.44 62382444929.03
Prior period
In RMB Yuan
Prior period
Items Other Less: Treasury
Share capital Capital reserves comprehensiv Special reserve Surplus reserve Retained earnings Total equity
shares
e income
I. At end of last year 7632153402.00 9293065334.91 655812327.60 166051336.11 7552984.45 2982292413.67 36887741937.47 56313045081.01
II. At beginning of year 7632153402.00 9293065334.91 655812327.60 166051336.11 7552984.45 2982292413.67 36887741937.47 56313045081.01
III. Changes during the
2289646020.00(1433769009.30)146228.188998316.802280296154.313145317709.99
year
1.Total comprehensive
146228.184179388048.254179534276.43
income
2. Capital contributed by
owners and capital 855877010.70 855877010.70
decreases
(1) The amount of
share-based payment
192310900.00192310900.00
included in owner's
equity
(2) Others 663566110.70 663566110.70
3. Distribution of profit (1778856191.54) (1778856191.54)
Distribution to
(1778856191.54)(1778856191.54)
owners
4.Internal carry forward
2289646020.00(2289646020.00)
of owner's equity
Capital reserve
converted into capital 2289646020.00 (2289646020.00)
(or share capital)
5. Special reserves 8998316.80 8998316.80
(1) Pick-up in
30492980.1030492980.10
current period
(2) Used in current
(21494663.30)(21494663.30)
period
136.Disposal of
(120235702.40)(120235702.40)
subsidiaries
IV. At end of current
9921799422.007859296325.61655812327.60166197564.2916551301.252982292413.6739168038091.7859458362791.00
period
14III. CORPORATE INFORMATION
Chongqing Changan Automobile Company Limited (hereafter referred to as “the Company”) is a company limited by shares registered
in Chongqing People’s Republic of China. It was established on 31 October 1996 with an indefinite business period. The ordinary A
shares of Renminbi issued by the company and the B shares of domestically listed foreign shares have been listed on the Shenzhen
Stock Exchange. The company is headquartered at 260 Jianxin East Road Jiangbei District Chongqing China and its office address
is T2 Building No. 2 Financial City No. 61 Dongshengmen Road Jiangbei District Chongqing China.After the establishment of the company the share capital and shareholding structure have undergone several changes. As of June 30
2023 the company’s controlling shareholder China Changan Automobile Group Company Limited (hereinafter referred to as “ChinaChangan”) and its wholly-owned subsidiary United Prosperity Investment Co. Ltd. held a total of ordinary shares of the company
2063588975 shares with an equity ratio of 20.80%. China South Industries Group Co. Ltd. (hereinafter referred to as “China SouthGroup”) the parent company of China Changan and its wholly-owned subsidiary South Industries International Holdings (Hong Kong)
Company Limited hold 1921622884 ordinary shares of the company with a 19.37% shareholding ratio. China Changan and China
South Group holds ordinary shares 3985211859 in total with a shareholding ratio of 40.18%.The Company and its subsidiaries collectively refer to as the Group and its main business activities are: the manufacturing and sales
of automobiles (including cars) automobile engine products and supporting parts.The holding company and ultimate holding company of the Company are China Changan and China South Group respectively.The scope of consolidation in the consolidated financial statement is determined based on control. For the consolidation scope of this
year please refer to Note VIII.IV. BASIS OF PREPARATION
1. Basis of compilation
The financial statements have been prepared in accordance with Accounting Standards for Business Enterprises-Basic Standard and
the specific standards issued and modified subsequently and the implementation guidance interpretations and other relevant provisions
issued subsequently by the MOF (correctly referred to as “Accounting Standards for Business Enterprises”).
1. Going-concern
The financial statements are presented on a going concern basis.The financial statements have been prepared under the historical cost convention except for certain financial instruments. If the assets
are impaired the corresponding provisions should be made accordingly.V. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
According to the actual production and operation characteristics the group formulated the specific accounting policies and accounting
estimates mainly reflected in provision of accounts receivables inventory valuation depreciation of fixed assets intangible assets
amortization condition of capitalization of research and development expense and revenue recognition and measurement.
1. Statement of compliance with Accounting Standards for Business Enterprises
The financial statements present fairly and fully the financial position of the company on 30 June 2023 and the financial results and
the cash flows in the half year of 2023 then ended in accordance with Accounting Standards for Business Enterprises.
2. Accounting year
The accounting year of the Group is from 1 January to 31 December of each calendar year.
3. Functional currency
The Group’s functional and reporting currency is the Renminbi (“RMB”). Unless otherwise stated the unit of the currency is Yuan.Each entity in the Group determines its own functional currency in accordance with the operating circumstances. At the end of the
reporting period the foreign currency financial statements are translated into the reporting currency of the Company of RMB.
154. Business combination
Business combinations are classified into business combinations involving entities under common control and business combinations
involving entities not under common control.Business combination involving entities under common control
If the enterprise participating in the merger is ultimately controlled by the same party or the same parties before and after the merger
and the control is not temporary it is a business merger under the same control.Assets and liabilities that are obtained by the acquiring party in a business combination involving entities under common control shall
be measured at their carrying amounts at the combination date as recorded by the party being acquired. The difference between the
carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination (or the aggregate face
value of shares issued as consideration) shall be adjusted to capital reserve. If the capital reserve is not sufficient to absorb the difference
any excess shall be adjusted against retained earnings.Business combination involving entities not under common control
If the enterprise participating in the merger is not ultimately controlled by the same party or the same parties before and after the merger
it is a business merger not under the same control.The acquirer shall measure the acquiree’s identifiable assets liabilities and contingent liabilities acquired in the business combination
at their fair values on the acquisition date.Goodwill is initially recognized and measured at cost being the excess of the aggregate of the fair value of the consideration transferred
(or the fair value of the equity securities issued) and any fair value of the Group’s previously held equity interest in the acquiree over
the Group’s interest in the fair value of the acquiree’s net identifiable assets. After initial recognition goodwill is measured at cost
less any accumulated impairment losses. Where the aggregate of the fair value of the consideration transferred (or the fair value of
the equity securities issued) and any fair value of the Group’s previously held equity interest in the acquiree is lower than the Group’s
interest in the fair value of the acquiree’s net identifiable assets the Group reassesses the measurement of the fair value of the acquiree’s
identifiable assets liabilities and contingent liabilities and the fair value of the consideration transferred (or the fair value of the equity
securities issued) together with the fair value of the Group’s previously held equity interest in the acquiree. If after that reassessment
the aggregate of the fair value of the consideration transferred (or the fair value of the equity securities issued) and the Group’s
previously held equity interest in the acquiree is still lower than the Group’s interest in the fair value of the acquiree’s net identifiable
assets the Group recognize the remaining difference in profit or loss.
5. Consolidated financial statements
The scope of the consolidated financial statements which include the financial statements of the Company and all of its subsidiaries
is determined on the basis of control. A subsidiary is an entity that is controlled by the Company (such as an enterprise a deemed
separate entity or a structured entity controlled by the Company).In the preparation of the consolidated financial statements the financial statements of the subsidiaries are prepared for the same
reporting period as the Company using consistent accounting policies. All intra-group assets and liabilities equity income expenses
and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.When the current loss belong to minorities of the subsidiary exceeds the beginning equity of the subsidiary belong to minorities the
exceeded part will still deduct the equity belong to minorities.With respect to subsidiaries acquired through business combinations involving entities not under common control the operating results
and cash flows of the acquiree should be included in the consolidated financial statements from the day that the Group gains control
till the Group ceases the control of it. While preparing the consolidated financial statements the acquirer should adjust the subsidiary’s
financial statements on the basis of the fair values of the identifiable assets liabilities and contingent liabilities recognized on the
acquisition date.With respect to subsidiaries acquired through business combinations involving entities under common control the operating results
and cash flows of the acquiree should be included in the consolidated financial statements from the beginning of the period in which
the combination occurs.If the changes of relevant facts and circumstances will result in the changes of one or more control elements then the Group should
reassess whether it has taken control of the investee.
166. Joint venture arrangement classification and joint operation
Joint venture arrangements are classified into joint operation and joint venture. Joint operation refers to those joint venture arrangements
relevant assets and liabilities of which are enjoyed and assumed by the joint ventures. Joint ventures refer to those joint venture
arrangements only the right to net assets of which is enjoyed by the joint ventures.Any joint venture shall recognize the following items related to its share of benefits in the joint operation and conduct accounting
treatment in accordance with relevant accounting standards for business enterprises: assets it solely holds and its share of jointly-held
assets based on its percentage; liabilities it solely assumes and its share of jointly-assumed liabilities based on its percentage; incomes
from sale of output enjoyed by it from the joint operation; incomes from sale of output from the joint operation based on its percentage;
and separate costs and costs for the joint operation based on its percentage.
7. Cash and cash equivalents
Cash comprises cash on hand and bank deposits which can be used for payment at any time; Cash equivalents are short-term highly
liquid investments held by the Group that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of changes in value.
8. Foreign currency translation
The Group translates the amount of foreign currency transactions occurred into functional currency.The foreign currency transactions are recorded on initial recognition in the functional currency by applying to the foreign currency
amount at the spot exchange rate on the transaction dates. Foreign currency monetary items are translated using the spot exchange rate
quoted by the People’s Bank of China at the balance sheet date. The exchange gains or losses arising from occurrence of transactions
and exchange of currencies except for those relating to foreign currency borrowings specifically for construction and acquisition of
fixed assets capitalized are dealt with in the profit and loss accounts. Non-monetary foreign currency items measured at historical cost
remain to be translated at the spot exchange rate prevailing on the transaction date and the amount denominated in the functional
currency should not be changed. Non-monetary foreign currency items measured at fair value should be translated at the spot exchange
rate prevailing on the date when the fair values are determined. The exchange difference thus resulted should be charged to the current
income or other comprehensive income account of the current period.When preparing consolidated financial statements the financial statements of the subsidiaries presented in foreign currencies are
translated into Renminbi as follows: asset and liability accounts are translated into Renminbi at exchange rates ruling at the balance
sheet date; shareholders’ equity accounts other than retained profits are translated into Renminbi at the applicable exchange rates ruling
at the transaction dates; income and expense in income statement are translated into Renminbi average exchange rate of the period in
which the transaction occurred (unless the exchange rate fluctuation makes it inappropriate to adopt this exchange rate for conversion
the spot exchange rate on the date of cash flow shall be adopted for conversion); total difference between translated assets and translated
liabilities and shareholders’ equity is separately listed as “foreign currency exchange differences” below retained profits. The translation
difference arising from the settlement of oversea subsidiaries is charged to the current liquidation profit and loss in proportion to the
settlement ratio of the assets concerned.Foreign currency cash flows and the cash flows of foreign subsidiaries should be translated using the average exchange rate prevailing
on the transaction month during which the cash flows occur (unless the exchange rate fluctuation makes it inappropriate to adopt this
exchange rate for conversion the spot exchange rate on the date of cash flow shall be adopted for conversion). The amount of the effect
on the cash arising from the change in the exchange rate should be separately presented as an adjustment item in the cash flow statement.
9. 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.Recognition and derecognition
The Group recognizes a financial asset or a financial liability when the Group becomes a party to the contractual provision of the
instrument.A financial asset (or where applicable a part of a financial asset or part of a group of similar financial assets) is primarily derecognized
(i.e. removed from the Group’s consolidated balance sheet) when:
1) the rights to receive cash flows from the financial asset have expired;
2) the Group has transferred its rights to receive cash flows from the financial asset or has assumed an obligation to pay the received
cash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) has transferred substantially
17all the risks and rewards of the financial asset or (b) has neither transferred nor retained substantially all the risks and rewards of the
asset but has transferred control of the financial asset.A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are
substantially modified such an exchange or modification is treated as a derecognition of the original liability and a recognition of a
new liability and the difference between the respective carrying amounts is recognized in profit or loss.Regular way purchases and sales of financial assets are recognized and derecognized using trade date accounting. Regular way
purchases or sales are purchases or sales of financial assets that require delivery within the period generally established by regulation
or convention in the marketplace. The trade date is the date that the Group committed to purchase or sell a financial asset.Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the
Group’s business model for managing them: financial assets measured at amortized cost financial assets measured at fair value with
changes included in other comprehensive income and financial assets measured at fair value with changes included in current profit
and loss. All affected related financial assets are reclassified when and only when the group changes its business model for managing
financial assets.Financial assets are measured at fair value on initial recognition but accounts receivable or notes receivable arising from the sale of
goods or rendering of services that do not contain significant financing components or for which the Group has applied the practical
expedient of not adjusting the effect of a significant financing component due within one year are initially measured at the transaction
price.For financial assets at fair value through profit or loss relevant transaction costs are directly recognized in profit or loss and transaction
costs relating to other financial
The subsequent measurement of financial assets depends on their classification as follows:
Debt investments measured at amortized cost
The Group measures financial assets at amortized cost if both of the following conditions are met: the financial asset is held within a
business model with the objective to hold financial assets in order to collect contractual cash flows; the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.Financial assets at amortized cost are subsequently measured using the effective interest method. Gains and losses are recognized in
profit or loss when the asset is derecognized modified or impaired.Debt investments at fair value through other comprehensive income
The Group measures debt investments at fair value through other comprehensive income if both of the following conditions are met:
the financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling; the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding. Interest income is recognized using the effective interest method. The interest income impairment
losses and foreign exchange revaluation are recognized in profit or loss. The remaining fair value changes are recognized in other
comprehensive income. Upon derecognition the cumulative fair value change recognized in other comprehensive income is recycled
to profit or loss.Equity investments at fair value through other comprehensive income
The Group can elect to classify irrevocably its equity investments which are not held for trading as equity investments designated at
fair value through other comprehensive income. Only the relevant dividend income (excluding the dividend income explicitly recovered
as part of the investment cost) is recognized in profit or loss. Subsequent changes in the fair value are included in other comprehensive
income
and no provision for impairment is made. When the financial asset is derecognized the accumulated gains or losses previously included
in other comprehensive income are transferred from other comprehensive income to retained earnings.Financial assets at fair value through profit or loss
The financial assets other than the above financial assets measured at amortized cost and financial assets at fair value through other
comprehensive income are classified as financial assets at fair value through profit or loss. Such financial assets are subsequently
measured at fair value with net changes in fair value recognized in profit or loss.Classification and measurement of financial liabilities
18Financial liabilities are classified as: financial liabilities measured at fair value through profit or loss and other financial liabilities
measured at amortized cost. For financial liabilities measured at fair value and whose changes are included in the current profit and
loss the relevant transaction costs are directly included in the current profit and loss and the relevant transaction costs of other financial
liabilities measured at amortized cost are included in their initial recognition amount.The subsequent measurement of financial liabilities depends on their classification as follows:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated
upon initial recognition as at fair value through profit or loss. Financial liabilities held for trading are subsequently measured at fair
value with net changes in fair value recognized in profit or loss. Gains or losses on liabilities designated at fair value through profit or
loss are recognized in profit or loss except for the gains or losses arising from the Group’s own credit risk which are presented in other
comprehensive income with no subsequent reclassification to profit or loss.Financial liabilities measured at amortized cost
Other financial liabilities are subsequently measured at amortized cost using the effective interest method.Impairment of financial assets
On the basis of expected credit loss the Group carries out impairment treatment on financial assets measured at amortized cost and
contract assets and recognizes loss reserves
For receivables and contract assets that do not contain significant financing components the Group uses a simplified measurement
method to measure the loss provision based on the expected credit loss amount for the entire duration.For financial assets other than the simplified measurement method mentioned above the Group assesses on each balance sheet date
whether its credit risk has not increased significantly since initial recognition it is in the first stage. The Group measures the loss
provision based on the amount equivalent to the expected credit loss in the next 12 months and calculates the interest income based
on the book balance and the actual interest rate; if the credit risk has increased significantly since initial recognition but has not yet
suffered credit impairment it is in the second at this stage the Group measures the loss provision based on the amount equivalent to
the expected credit loss for the entire duration and calculates the interest income based on the book balance and the actual interest rate;
If credit impairment occurs after initial recognition it is in the third stage. The amount of expected credit losses is measured over the
entire duration of the loss allowance and interest income is calculated based on amortized cost and effective interest rate. For financial
instruments with low credit risk on the balance sheet date the Group assumes that their credit risk has not increased significantly since
initial recognition.The Group assesses the expected credit losses of financial instruments based on individual items and portfolios. The Group has
considered the credit risk characteristics of different customers and evaluated the expected credit losses of accounts receivable and
other receivables based on the ageing combination.Please refer to Note VII3 for the disclosure of the Group’s judgment criteria for significant increase in credit risk and the definition of
credit impairment assets that have occurred.The factors reflected in the group's method of measuring expected credit losses on financial instruments include the unbiased probability
weighted average amount determined by evaluating a series of possible results the time value of money and reasonable and evidentiary
information on past events current conditions and forecasts of future economic conditions available at the balance sheet date without
unnecessary additional costs or efforts.When the Group no longer reasonably expects to be able to fully or partially recover the contractual cash flows of financial assets the
Group directly writes down the book balance of the financial asset.Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable
legal right to offset the recognized amounts; and there is an intention to settle on a net basis or to realize the assets and settle the
liabilities simultaneously.Transfer of financial assets
If the Group transfers substantially all the risks and rewards of ownership of the financial asset the Group derecognizes the financial
19asset; and if the Group retains substantially all the risks and rewards of the financial asset the Group does not derecognize the financial
asset.If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset the Group determines
whether it has retained control of the financial asset. In this case: (i) if the Group has not retained control it derecognizes the financial
asset and recognize separately as assets or liabilities any rights and obligations created not retained in the transfer; (ii) if the Group has
retained control it continues to recognize the financial asset to the extent of its continuing involvement in the transferred financial asset
and recognizes an associated liability.
10. Inventories
Inventory includes raw materials goods in transit work in progress finished goods consigned processing materials low-value
consumables.Inventory is initially carried at the actual cost. Inventory costs comprise all costs of purchase costs of conversion and other costs
incurred in bringing the inventory to its present location and condition. Weighted average method is assigned to the determination of
actual costs of inventories. One-off writing off method is adopted in amortization of low-value consumables.The Group applies a perpetual counting method of inventory.At the balance sheet date the inventory is stated at the lower of cost and net realizable value. If the cost is higher than the net realizable
value provision for the inventory should be made through profit or loss.Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the
estimated costs necessary to make the sale. The impairment provision should be made on a basis of each item of inventories according
to the difference between cost and net realizable value. For large numbers of inventories at relatively low unit prices the provision for
loss on decline in value of inventories should be made by category.
11.Assets held for sale
The group divides non current assets or asset groups that meet the following conditions into held for sale categories:
1) In accordance with the practice of selling such assets or groups of assets in similar transactions they can be sold immediately
under current conditions;
2) The sale is likely to occur that is the group has made a decision on a sale plan and obtained a definite purchase commitment and
the sale is expected to be completed within one year.If the book value of non current assets (excluding financial assets deferred income tax assets and assets formed by employee
remuneration) or disposal groups held for sale is higher than the net value of fair value minus selling expenses the book value shall
be written down to the net value of fair value minus selling expenses and the amount written down shall be recognized as asset
impairment losses and included in the current profits and losses. At the same time provision for impairment of assets held for sale
shall be made.Non current assets held for sale or non current assets in the disposal group are not depreciated or amortized and interest and other
expenses on liabilities in the disposal group held for sale continue to be recognized.When non current assets or disposal groups no longer meet the criteria for the classification of held for sale categories the group will
no longer continue to classify them as held for sale categories or remove noncurrent assets from the disposal groups held for sale and
will measure them according to the lower of the following:
1) The book value before being classified as held for sale is adjusted according to the depreciation amortization or impairment that
should have been recognized under the assumption that it is not classified as held for sale;
2) Recoverable amount.
12. Long-term equity investments
Long-term equity investments include investments in subsidiaries joint ventures and associates.
20Long-term equity investments are recognized at initial investment cost upon acquisition. For a long-term equity investment acquired
through a business combination under common control the initial investment cost of the long-term equity investment shall be the
absorbing party’s share of the carrying amount of the owners’ equity of the party being absorbed in the consolidated financial statements
of the ultimate controlling party at combination date. The difference between the initial investment cost and the carrying amount of
cash paid non-cash assets transferred and liabilities assumed shall be adjusted to capital reserve. If the balance of capital reserve is not
sufficient any excess shall be adjusted to retained earnings. Any other comprehensive income previously recognized shall be accounted
for on the same basis as would have been required if the investee had directly disposed of the related assets or liabilities. The portion
recognized based on changes in the investee’s equity (other than net profit or loss other comprehensive income and profit appropriation)
is charged to profit or loss upon disposal of such long-term equity investment. For those partially disposed equity investments gains
or losses upon disposal are proportionately recognized in profit or loss when they still constitute long-term equity investments after the
disposal and are fully charged to profit or loss when they are reclassified to financial instruments after the disposal. For business
combination involving entities not under common control the initial investment cost should be the cost of acquisition (for step
acquisitions not under common control the initial investment cost is the sum of the carrying amount of the equity investment in the
acquiree held before the acquisition date and the additional investment cost paid on the acquisition date) which is the sum of the fair
value of assets transferred liabilities incurred or assumed and equity instruments issued. If the equity investments in the acquiree
involve other comprehensive income prior to the acquisition date when disposing of the investments the relevant other comprehensive
income will be accounted for on the same basis as would have been required if the investee had directly disposed of the related assets
or liabilities. The portion recognized based on changes in the investee’s equity (other than net profit or loss other comprehensive
income and profit appropriation) is charged to profit or loss upon disposal of such long-term equity investment. The initial investment
cost of a long-term equity investment acquired otherwise than through a business combination shall be determined as follows: for a
long-term equity investment acquired by paying cash the initial investment cost shall be the actual purchase price has been paid plus
those costs taxes and other necessary expenditures directly attributable to the acquisition of the long-term equity investment; for those
acquired by the issue of equity securities the initial investment cost shall be the fair value of the equity securities issued.The Company adopted cost method to account for long-term investments in the subsidiaries in the separate financial statements of the
Company. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.Under cost method the long-term equity investment is valued at the cost of the initial investment. The cost of long-term equity
investment should be adjusted in case of additional investment or disinvestments. When cash dividends or profits are declared by the
invested enterprise is recognized as investment income in current period.The equity method is applied to account for long-term equity investments when the Group has jointly control or significant influence
on the investee enterprise. Joint control is the contractually agreed sharing of control over an economic activity and exists only when
the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control (the
ventures). Significant influence is the power to participate in the financial and operating policy decisions of an economic activity but
is not control or joint control over those policies.Under equity method when the initial investment cost of a long-term equity investment exceeds the investing enterprise’s interest in
the fair values of the investee’s identifiable net assets at the acquisition date the difference is accounted for as an initial cost. As to the
initial investment cost is less than the investing enterprise’s interest in the fair values of the investee’s identifiable net assets at the
acquisition date the difference shall be charged to the income statement for the current period and the cost of the long-term equity
investment shall be adjusted accordingly.Under equity method the Group recognizes its share of post-acquisition equity in the investee enterprise for the current period as a
gain or loss on investment and also increases or decreases the carrying amount of the investment. When recognizing its share in the
net profit or loss of the investee entities the Group should based on the fair values of the identifiable assets of the investee entity when
the investment is acquired in accordance with the Group’s accounting policies and periods after eliminating the portion of the profits
or losses arising from internal transactions with joint ventures and associates attributable to the investing entity according to the share
ratio (but losses arising from internal transactions that belong to losses on the impairment of assets should be recognized in full)
recognize the net profit of the investee entity after making appropriate adjustments. The book value of the investment is reduced to the
extent that the Group’s share of the profit or cash dividend declared to be distributed by the investee enterprise. However the share of
net loss is only recognized to the extent that the book value of the investment is reduced to zero except to the extent that the Group
has incurred obligations to assume additional losses. The Group shall adjust the carrying amount of the long-term equity investment
for other changes in owners’ equity of the investee enterprise (other than net profits or losses) and include the corresponding
adjustments in equity which should be realized through profit or loss in subsequent settlement of the respective long-term investment.On settlement of a long-term equity investment the difference between the proceeds actually received and the carrying amount shall
be recognized in the income statement for the current period. As to other comprehensive income recognized based on measurement of
the original equity investment by employing the equity method accounting treatment shall be made on the same basis as would be
required if the invested entity had directly disposed of the assets or liabilities related thereto when measurement by employing the
equity method is terminated. As to any change in owners' equity of the invested entity other than net profit or loss other comprehensive
income and profit distribution the investing party shall be transferred to the income statement for the current period. If the remaining
equities still be measured under the equity method accumulative change previously recorded in other comprehensive income shall be
21transferred to current profit or loss in measurement on the same basis as the invested entity had directly disposed of the assets or
liabilities related thereto. The income or loss recorded in the equity directly should been transferred to the current income statement on
settlement of the equity investment on the disposal proportion.
13. Investment property
Investment property are properties held to earn rentals or for capital appreciation or both including rented land use right land use
right which is held and prepared for transfer after appreciation and rented building.The initial measurement of the investment property shall be measured at its actual cost. The follow-up expenses pertinent to an
investment property shall be included in the cost of the investment property if the economic benefits pertinent to this real estate are
likely to flow into the enterprise and the cost of the investment property can be reliably measured. Otherwise they should be included
in the current profits and losses upon occurrence.The Group adopts the cost method to make follow-up measurement to the investment property. The buildings are depreciated under
straight-line method.
14. Fixed assets
A fixed asset probably shall be recognized only when the economic benefits associated with the asset will flow to the Group and the
cost of the asset can be measured reliably. Subsequent expenditure incurred for a fixed asset that meet the recognition criteria shall be
included in the cost of the fixed asset and the book value of the component of the fixed asset that is replaced shall be derecognized.Otherwise such expenditure shall be recognized in the income statement in the period during which they are incurred.Fixed assets are initially measured at actual cost on acquisition. The cost of a purchased fixed asset comprises the purchase price
relevant taxes and any directly attributable expenditure for bringing the asset to working condition for its intended use such as delivery
and handling costs installation costs and other surcharges.Fixed assets are depreciated on straight-line basis. The estimated useful lives estimated residual values and annual depreciation rates
for each category of fixed assets are as follows:
Category Deprecation period Residual rate (%) Yearly deprecation rate (%)
Buildings 20 to 35 years 3% 2.77%-4.85%
Machinery (Note) 5 to 20 years 3% 4.85%-19.40%
Vehicles 4 to 10 years 3% 9.70%-24.25%
Others 3 to 21 years 3% 4.62%-32.33%
Note: the molds in machinery should be depreciated in units-of-production method.The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at least at the
end of each year and makes adjustments if necessary.
15. Construction in progress
The cost of construction in progress is determined according to the actual expenditure for the construction including all necessary
construction expenditure incurred during the construction period borrowing costs that should be capitalized before the construction
reaches the condition for intended use and other relevant expenses.Construction in progress is transferred to fixed assets when the asset is ready for its intended use.
16. Borrowing costs
The borrowing costs that are directly attributable to the acquisition construction or production of a qualifying asset are capitalized
otherwise the borrowing costs are expensed in the period during which they are incurred. A qualifying asset is an asset (an item of
property plant and equipment and inventory etc.) that necessarily takes a substantial period of time to get ready for its intended use of
sale.The capitalization of borrowing costs is as part of the cost of a qualifying asset shall commence when:
1) expenditure for the asset is being incurred;
2) borrowing costs are being incurred; and
223) activities that are necessary to prepare the asset for its intended use or sale are in progress.
Capitalization of borrowing costs shall be ceased when substantially all the activities
necessary to prepare the qualifying asset for its intended use or sale have been done. And subsequent borrowing costs are recognized
in the income statement.During the capitalization period the amount of interest to be capitalized for each accounting period shall be determined as follows:
1) where funds are borrowed for a specific-purpose the amount of interest to be capitalized is the actual interest expense incurred
on that borrowing for the period less any bank interest earned form depositing the borrowed funds before being used on the asset or
any investment income on the temporary investment of those funds;
2) where funds are borrowed for a general-purpose the amount of interest to be capitalized on such borrowings is determined by
applying a weighted average interest rate to the weighted average of the excess amounts of cumulative expenditure on the asset over
and above the amounts of specific-purpose borrowings.During the construction or manufacture of assets that are qualified for capitalization if abnormal discontinuance other than procedures
necessary for their reaching the expected useful conditions happens and the duration of the discontinuance is over three months the
capitalization of the borrowing costs is suspended. Borrowing costs incurred during the discontinuance are recognized as expense and
charged to the income statement of the current period till the construction or manufacture of the assets resumes.
17. Right-of-use assets
At the commencement date of the lease period the Group recognizes its right to use the leased assets during the lease period as a right-
of-use asset initial measurement is made at cost. Cost of right to use assets including: the initial measured amount of the lease liability;
the amount of lease payments paid on or before the start date of the lease period in addition the relevant amount of lease incentive
should be deducted; Initial direct expenses incurred by the lessee; the estimated cost incurred by the lessee for dismantling and removing
the leased assets restoring the site where the leased assets are located or restoring the leased assets to the state agreed in the lease
terms. If the group remeasures the lease liabilities due to changes in lease payments the book value of the right to use assets shall be
adjusted accordingly. The Group adopts the average age method to depreciate the assets of the right of use. If it can be reasonably
determined that the ownership of the leased asset is obtained at the expiration of the lease term the Group adopts depreciation within
the remaining service life of the leased asset. If it is impossible to reasonably determine that the ownership of the leased asset can be
obtained at the expiration of the lease term the Group adopts depreciation within the shorter of the lease term and the remaining service
life of the leased asset.
18. Intangible assets
An intangible asset probably shall be recognized only when the economic benefits associated with the asset will flow to the Group and
the cost of the asset can be measured reliably. Intangible assets are initially measured at cost. The cost of intangible assets acquired in
a business combination is the fair value as at the date of acquisition if the fair value can be reliably measured.The useful life of the intangible assets shall be assessed according to the estimated beneficial period expected to generate economic
benefits. An intangible asset shall be regarded as having an indefinite useful life when there is no foreseeable limit to the period over
which the asset is expected to generate economic benefits for the Group.The useful lives of the intangible assets are as follow:
Useful life
Land use right 43 to 50 years
Software 2 years
Trademark 10 years
Non-patent technology 5 to 11 years
Patent technology 10 years
Land use rights that are purchased or acquired through the payment of land use fees are accounted for as intangible assets. With respect
to self-developed properties the corresponding land use right and buildings should be recorded as intangible and fixed assets separately.As to the purchased properties if the reasonable allocation of outlays cannot be made between land and buildings all assets purchased
will be recorded as fixed assets. The cost of a finite useful life intangible asset is amortized using the straight-line method during the
estimated useful life. For an intangible asset with a finite useful life the Group reviews the estimated useful life and amortization
method at least at the end of each year and adjusts if necessary.The Group should test an intangible asset with an indefinite useful life for impairment by comparing its recoverable amount with its
carrying amount annually whenever there is an indication that the intangible asset may be impaired. An intangible asset with an
indefinite useful life shall not be amortized.
23The useful life of an intangible asset that is not being amortized shall be reviewed each period to determine whether events and
circumstances continue to support an indefinite useful life assessment for that asset. If there are indicators that the intangible asset has
finite useful life the accounting treatment would be in accordance with the intangible asset with finite useful life.
19. Research and development expenditures
The Group classified the internal research and development expenditures as follows: research expenditures and development cost.The expenditures in research stage are charged to the current income on occurrence.The expenditures in development stage are capitalized that should meet all the conditions of (a) it is technically feasible to finish
intangible assets for use or sale; (b) it is intended to finish and use or sell the intangible assets; (c) the usefulness of methods for
intangible assets to generate economic benefits shall be proved including being able to prove that there is a potential market for the
products manufactured by applying the intangible assets or there is a potential market for the intangible assets itself or the intangible
assets will be used internally; (d) it is able to finish the development of the intangible assets and able to use or sell the intangible assets
with the support of sufficient technologies financial resources and other resources; and (e) the development expenditures of the
intangible assets can be reliably measured. Expenses incurred that don’t meet the above requirements unanimously should be expensed
in the income statement of the reporting period.The Group discriminates between research and development stage with the condition that the project research has been determined in
which the relevant research complete all the fractionalization of products measurements and final product scheme under final approval
of management. The expenditures incurred before project-determination stage is charged to the current income otherwise it is recorded
as development cost.
20. Impairment of assets
The impairment of assets other than inventory contract assets deferred income tax assets and financial assets is determined according
to the following methods: on the balance sheet date it is judged whether there are signs of possible impairment of assets. If there are
signs of impairment the group will estimate its recoverable amount and conduct an impairment test. Impairment tests shall be
conducted at least at the end of each year for goodwill formed by business combination intangible assets with uncertain service life
and intangible assets that have not yet reached the usable state regardless of whether there are signs of impairment.The recoverable amount is determined according to the higher of the net amount of the fair value of the asset minus the disposal
expenses and the present value of the expected future cash flow of the asset. The group estimates its recoverable amount on the basis
of individual assets; If 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 recognition of an asset group shall be based on
whether the main cash inflow generated by the asset group is independent of the cash inflow of other assets or asset groups.The recoverable amount of an asset is the higher of its fair value less costs to sell and the present value of the future cash flow expected
to be derived from the asset. The Group estimates the recoverable amount on an individual basis. If it is not possible to estimate the
recoverable amount of the individual asset the Group determines the recoverable amount of the asset group to which the asset belongs.Identification of an asset group is based on whether major cash flows generated by the asset group are independent of the cash flows
from other assets or asset groups.When the recoverable amount of an asset or asset group is less than its carrying amount the carrying amount is reduced to the
recoverable amount. The impairment of asset is provided for and the impairment loss is recognized in the income statement for the
current period.For the purpose of impairment testing the carrying amount of goodwill acquired in a business combination is allocated on a reasonable
basis to related asset groups; if it is impossible to allocate to the related asset groups it is allocated to each of the related sets of asset
groups. Each of the related asset groups or related sets of asset groups is a group or set of asset group that is able to benefit from the
synergies of the business combination and shall not be larger than a reportable segment determined by the Group.When an impairment test is conducted on an asset group or a set of asset groups that contains goodwill if there is any indication of
impairment the Group firstly tests the asset group or the set of asset groups excluding the amount of goodwill allocated for impairment
i.e. it determines and compares the recoverable amount with the related carrying amount and then recognize impairment loss if any.Thereafter the Group tests the asset group or set of asset groups including goodwill for impairment the carrying amount (including
the portion of the carrying amount of goodwill allocated) of the related asset group or set of asset groups is compared to its recoverable
amount. If the carrying amount of the asset group or set of asset groups is higher than its recoverable amount the amount of the
impairment loss is firstly eliminated by and amortized to the book value of the goodwill included in the asset group or set of asset
groups and then eliminated by the book value of other assets according to the proportion of the book values of assets other than the
goodwill in the asset group or set of asset groups.
24Once the above impairment loss is recognized it cannot be reversed in subsequent periods.
21. Long-term deferred expenses
The long-term deferred expenses represent the payment for the improvement on buildings and other expenses which have been paid
and should be deferred in the following years. Long-term deferred expenses are amortized on the straight-line basis over the expected
beneficial period and are presented at actual expenditure net of accumulated amortization.
22. Employee benefits
Employee benefits refer to all kinds of remunerations or compensation made by enterprises to their employees in exchange for services
provided by the employees or termination of labor relation. Employee compensation includes short-term compensation and post-
employment benefits. The benefits offered by enterprises to the spouse children the dependents of the employee the family member
of deceased employee and other beneficiaries are also employee compensation.Short-term employee salaries
During the accounting period of employee rendering service the actual employees salaries and are charged to the statement of profit
or loss as they become payable in balance sheet.Post-employment benefits (Defined contribution plans)
The employees of the Group participate in pension insurance which is managed by local government and the relevant expenditure is
recognized when incurred in the costs of relevant assets or the profit and loss for the current period.Post-employment benefits (Defined benefit plan)
The Group operates a defined benefit pension plan which requires contributions to be made to a separately administered fund. The
benefits are unfunded. The cost of providing benefits under the defined benefit plan is determined using the projected unit credit
actuarial valuation method.Remeasurements arising from defined benefit pension plans are recognized immediately in the consolidated statement of financial
position with a corresponding debit or credit to retained profits through other comprehensive income in the period in which they occur.Remeasurements are not reclassified to profit or loss in subsequent periods.Past service costs are recognized in profit or loss at the earlier of: the date of the plan amendment or curtailment; and the date that the
Group recognizes restructuring-related costs.Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group recognizes the following
changes in the net defined benefit obligation under administrative expenses in the consolidated statement of profit or loss by function:
*service costs comprising current service costs past-service costs gains and losses on curtailments and non-routine settlements; net
interest expense or income.Termination benefits
Termination benefits are recognized at the earlier of when the Group can no longer withdraw the offer of those benefits and when the
Group recognizes restructuring costs involving the payment of termination benefits.
23. Lease liabilities
At the beginning of the lease term the Group recognizes the present value of the unpaid lease payments as a lease liability except for
short-term leases and low value asset leases. Lease payments include fixed and substantially fixed payments after deducting lease
incentives variable lease payments depending on an index or ratio amounts expected to be payable based on the guaranteed residual
value and also includes the exercise price of the purchase option or amounts payable to exercise the termination lease option provided
that the group reasonably determines that the option or lease term will be exercised to reflect the group's exercise of the termination
lease option.In calculating the present value of lease payments the group uses the embedded interest rate of the lease as the discount rate; If the
25embedded interest rate of the lease cannot be determined the incremental loan interest rate of the lessee shall be used as the discount
rate. The group calculates the interest expense of lease liabilities during each period of the lease term at a fixed cyclical interest rate
and includes it in the current profit and loss unless otherwise specified in the cost of related assets. The amount of variable lease
payments not included in the measurement of lease liabilities shall be included in the current profit and loss when actually incurred
unless otherwise stipulated in the cost of related assets.After the beginning date of the lease term the group increases the carrying amount of the lease liabilities when it recognizes interest
and decreases the carrying amount of the lease liabilities when it pays the lease payments. When the substantial fixed payment changes
the estimated amount payable of the guarantee residual value changes the index or ratio used to determine the lease payment changes
the evaluation results or actual exercise of the purchase option renewal option or termination option changes the group remeasures
the lease liability according to the present value of the changed lease payment.
24. Provisions
An obligation related to a contingency shall be recognized by the Group as a provision when all of the following conditions are satisfied
except for contingent considerations and contingent liabilities assumed in a business combination not involving entities under common
control:
1) the obligation is a present obligation of the Group;
2) it is probable that an outflow of economic benefits from the Group will be required to settle the obligation;
3) a reliable estimate can be made of the amount of the obligation.
Contingent liabilities are initially measured according to the current best estimate for the expenditure necessary for the performance of
relevant present obligations with comprehensive consideration given to factors such as the risks uncertainty and time value of money
relating to contingencies. The book value of the contingent liabilities should be reviewed at each balance sheet date. If there is objective
evidence showing that the book value cannot reflect the present best estimate the book value should be adjusted according to the best
estimate.The contingent liabilities of the acquiree acquired in the business combination involving entities not under common control are
measured at fair value upon initial recognition. After initial recognition the balance of the amount recognized according to the estimated
liabilities and the amount initially recognized after deducting the accumulated amortization determined by the revenue recognition
principle is subsequently measured at the higher of the two.
25. Share-based payments
A share-based payment is classified as either an equity-settled share-based payment or a cash-settled share-based payment. An equity-
settled share-based payment is a transaction in which the Group receives services and uses shares or other equity instruments as
consideration for settlement.An equity-settled share-based payment in exchange for services received from employees is measured at the fair value of the equity
instruments granted to the employees. If such equity-settled share-based payment could vest immediately related costs or expenses at
an amount equal to the fair value on the grant date are recognized with a corresponding increase in capital reserves; if such equity-
settled share-based payment could not vest until the completion of services for a vesting period or until the achievement of a specified
performance condition the Group at each balance sheet date during the vesting period recognizes the services received for the current
period as related costs and expenses with a corresponding increase in capital reserves at an amount equal to the fair value of the equity
instruments at the grant date based on the best estimate of the number of equity instruments expected to vest. The fair value is
determined using the closing price of the company's shares on the grant date.For awards that do not ultimately vest because non-market performance and/or service conditions have not been met no expense is
recognized. Where awards include a market or non-vesting condition the transactions are treated as vesting irrespective of whether
the market or non-vesting condition is satisfied provided that all other performance and/or service conditions are satisfied.Where the terms of an equity-settled share-based award are modified as a minimum an expense is recognized as if the terms had not
been modified. In addition an expense is recognized for any modification that increases the total fair value of the share-based
payment or is otherwise beneficial to the employee as measured at the date of modification.Where an equity-settled share-based award is cancelled it is treated as if it had vested on the date of cancellation and any expense not
yet recognized for the award is recognized immediately. This includes any award where non-vesting conditions within the control of
either the Group or the employee are not met. However if a new award is substituted for the cancelled award and is designated as a
replacement on the date that it is granted the cancelled and new awards are treated as if they were a modification of the original award.
2626. Revenue from contracts with customers
The Group has fulfilled its performance obligations in the contracts that is the revenue is recognized when the customer obtains control
of the relevant goods or services. Obtaining control over related goods or services means being able to lead the use of the goods or the
provision of the services and obtain almost all of the economic benefits from it.Contracts for the sale of goods
A contract for the sale of goods between the Group and the customer usually includes the performance obligation to transfer of goods
transportation services and free maintenance. The Group allocates the transaction price to each individual performance obligation in
accordance with the relative proportion of the stand-alone selling price of the goods or services promised by each individual
performance obligation on the date of contract commencement. Regarding the performance obligations of the transferred goods the
Group usually recognizes revenue at the point when the performance obligations are fulfilled based on the following indicators which
include: a present right to payment for goods the transfer of significant risks and rewards of ownership of goods the transfer of legal
title to goods the transfer of physical possession of goods the customer’s acceptance of goods.Provide service contract
The performance obligations of the service provision contract between the Group and the customer are due to the fact that the customer
obtains and consumes the economic benefits brought by the performance of the Group at the same time the Group performs the contract
and the Group has the right to accumulate the economic benefits during the entire contract period. The Group regards it as a performance
obligation performed within a period and recognizes the revenue according to the performance progress unless the performance
progress cannot be reasonably determined. In accordance with the output method the Group determines the progress of the performance
of the service provided based on the completed or delivered products. When the performance progress cannot be reasonably determined
if the cost incurred by the Group is expected to be compensated the revenue will be recognized according to the amount of the cost
incurred until the performance progress can be reasonably determined.Variable consideration
Some contracts between the Group and customers have sales rebate arrangements forming variable consideration. The Group
determines the best estimate of the variable consideration based on the expected value or the most likely amount but the transaction
price including the variable consideration does not exceed the amount that the accumulated recognized revenue will most likely not be
materially reversed when the relevant uncertainty is eliminated.Warranty obligations
In accordance with contractual agreements and legal provisions the Group provides quality assurance for the goods sold. For guarantee
quality assurance to ensure that the products sold meet the established standards the Group conducts accounting treatment in
accordance with Note V 23. For the service quality assurance that provides a separate service in addition to the established standards
to ensure that the goods sold meet the established standards the Group regards it as a single performance obligation based on the
stand-alone selling price of the quality assurance of the goods and services provided. In a relative proportion part of the transaction
price is allocated to service quality assurance and revenue is recognized when the customer obtains control of the service. When
assessing whether the quality assurance provides a separate service in addition to ensuring that the products sold meet the established
standards the Group considers whether the quality assurance is a legal requirement the quality assurance period and the nature of the
Group's commitment to perform tasks.Reward points program
The group grants reward points to customers when selling goods or providing services and customers can exchange reward points for
free or discounted goods or services. The incentive points plan provides customers with a significant right which the group regards as
a single performance obligation apportions part of the transaction price to the incentive points in accordance with the relative
proportion of the separate selling price of the goods or services provided and the incentive points and recognizes revenue when the
customer obtains control of the points exchanged goods or services or when the points expire.Principal/agent
For the Group to lead a third party to provide services to customers on behalf of the Group the Group has the right to independently
determine the price of the goods or services traded that is the Group can control the relevant goods before transferring the goods to
the customers so the Group is the main responsible person and recognize revenue based on the total consideration received or
receivable. Otherwise the Group acts as an agent and recognizes revenue based on the amount of commission or fees expected to be
charged. This amount should be based on the net amount of the total consideration received or receivable minus the price payable to
other related parties or based on the established commission amount or proportions etc.
2727. Contract assets and contract liabilities
The Group lists contract assets or contract liabilities in the balance sheet based on the relationship between performance obligations
and customer payments. The Group offsets the contract assets and contract liabilities under the same contract as net amount.Contract assets
Contract assets refer to the right to receive consideration for the transfer of goods or services to customers and this right depends on
factors other than the passage of time.The determination method and accounting treatment method of the expected credit loss of the contract assets of the Group refer to Note
III 9.Contract liabilities
Contract liabilities refer to the obligation to transfer goods or services to customers for the consideration received or receivable from
customers such as the payment received by companies before the transfer of promised goods or services.
28. Government grants
A government grant is recognized only when there is reasonable assurance that the entity will comply with any conditions attached to
the grant and the grant will be received. Monetary grants are accounted for at received or receivable amount. Non-monetary grants are
accounted for at fair value. If there is no reliable fair value available the grants are accounted for a nominal amount.A government grant which is specified by the government documents to be used to purchase and construct the long-term assets shall
be recognized as the government grant related to assets. A government grant which is not specified by the government documents shall
be judged based on the basic conditions to obtain the government grant. The one whose basic condition was to purchase and construct
the long-term assets shall be recognized as the government grant related to assets.The Group uses the net method to account for government grants.Government grants related to income to be used as compensation for future expenses or losses shall be recognized as deferred income
and shall be charged to the current profit or loss or be used to write down the relevant loss during the recognition of the relevant cost
expenses or losses; or used as compensation for relevant expenses or losses already incurred by enterprises shall be directly charged to
the profit and loss account in the current period or used to write down the relevant cost.The government grants related to assets shall be used to write down the book value of the relevant assets or be recognized as deferred
income. The government grants related to assets recognized as deferred income shall be charged to the profit and loss reasonably and
systematically in stages over the useful lives of the relevant assets. The government grants measured at nominal amount shall be directly
charged to the current profit and loss. The remaining book value of the government grants related to assets should be charged to the
profit and loss account in the current period when the relative assets sold transferred disposed or damaged.
29. Deferred income tax
For temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts and
temporary differences between the carrying amounts and the tax bases of items the tax bases of which can be determined for tax
purposes but which have not been recognized as assets and liabilities deferred taxes are provided using the liability method.A deferred tax liability is recognized for all taxable temporary differences except:
to the extent that the deferred tax liability arises from the initial recognition of goodwill or the initial recognition of an asset or liability
in a transaction which contains both of the following characteristics: the transaction is not a business combination and at the time of
the transaction it affects neither the accounting profit nor taxable profit or loss.
(2) in respect of taxable temporary differences associated with investments in subsidiaries associates and interests in jointly-
controlled enterprises where the timing of the reversal of the temporary differences can be controlled and it is probable that the
temporary differences will not reverse in the foreseeable future.
28A deferred tax asset is recognized for deductible temporary differences carry forward of unused tax credits and unused tax losses to
the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry
forward of unused tax credits and unused tax losses can be utilized except:
(1) where the deferred tax asset relating to the deductible temporary differences arises from the initial recognition of an asset or
liability in a transaction that is not a business combination and at the time of the transaction affects neither the accounting profit nor
taxable profit or loss; and
(2) in respect of deductible temporary differences associated with investments in subsidiaries associates and interests in joint
ventures deferred tax assets are only recognized to the extent that it is probable that the temporary differences will reverse in the
foreseeable future and taxable profit will be available against which the temporary differences can be utilized.At the balance sheet date deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when
the asset is realized or the liability is settled according to the requirements of tax laws. The measurement of deferred tax assets and
deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Group expects at the balance sheet
date to recover the assets or settle the liabilities.At the balance sheet date the Group reviews the book value of deferred tax assets. If it is probable that sufficient taxable income cannot
be generated to use the tax benefits of deferred tax assets the book value of deferred tax assets should be reduced. When it is probable
that sufficient taxable income can be generated the amount of such reduction should be reversed. When it is probable that sufficient
taxable income can be generated the amount of such reduction should be reversed.When the following conditions are met at the same time the deferred tax assets and deferred tax liabilities are listed at the net amount
after offset: the legal right to settle the current income tax assets and current income tax liabilities at the net amount; the deferred tax
assets and deferred tax liabilities are related to the income tax levied by the same tax collection and management department on the
same taxable subject or different taxpaying subjects However in the future during each period when the significant deferred tax assets
and deferred tax liabilities are reversed the tax payer involved intends to settle the current income tax assets and current income tax
liabilities with net amount or obtain assets and pay off debts at the same time.
30. Leases
At inception of a contract the Group assesses whether the contract is or contains a lease. A contract is or contains a lease if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.As lessee
In addition to short-term leases and low value asset leases the Group recognizes right to use assets and lease liabilities for leases. See
notes 5 17 and 23 for accounting treatment.Short-term leases and leases of low-value assets
The Group considers a lease that at the commencement date of the lease has a lease term of 12 months or less and does not contains
any purchase option as a short-term lease; and a lease with a lower value of a single leased asset is recognized as a low value asset
lease.As lessor
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying
asset except that a lease is classified as an operating lease at the inception date.The Group recording the operating lease as a lessor
Rental income from operating leases is recognized as current profit and loss on a straight line basis during each period of the lease
term and variable lease payments not included in lease receipts are included in current profit and loss when actually incurred. The
initial direct expenses are capitalized and amortized on the same basis as the recognition of rental income during the lease period and
are included in the current profit and loss by stages.
31. Profit distribution
The cash dividend of the Group is recognized as liabilities after the approval of general meeting of stockholders.
2932. Safety fund
The safety fund extracted by the Group shall be recognized as the cost of the related products or income statement while be recognized
as special reserve. When using safety fund it shall be distinguished whether it will form fixed assets or not. The expenditure shall write
down the special reserve; the capital expenditure shall be recognized as fixed assets when meet the expected conditions for use and
write down the special reserve while recognizing accumulated depreciation with the same amount.
33. Fair value measurement
The Group measures derivatives and equity investments at fair value at the end of each reporting period. Fair value is the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date.The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data and other supporting
information are available to measure fair value giving priority to the use of relevant observable inputs and using unobservable inputs
only when observable inputs are unavailable or not feasible to obtain.All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value
hierarchy described as follows based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly
observable
Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognized in the financial statements on a recurring basis the Group determines whether transfers
have occurred between levels in the hierarchy by reassessing categorization at the end of each reporting period.
34. Significant accounting judgments and estimates
The preparation of financial statements requires management to make judgments estimates and assumptions that affect the amounts
and disclosures of revenues expenses assets and liabilities and the disclosure of contingent liabilities at the balance sheet date.However uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the
carrying amounts of the assets or liabilities affected in the future.Judgments
In the process of applying the Group’s accounting policies management has made the following judgments which have significant
effect on the financial statements:
Business model
The classification of financial assets at initial recognition depends on the business model of the Group’s management of financial assets.When judging the business model the Group considers the methods including enterprise evaluation and reporting of financial asset
performance to key management personnel risks affecting financial asset performance and its arrangement method and the way in
which related business managers get paid. When evaluating whether to take contract cash flow as the goal the Group needs to analyze
and judge the reasons time frequency and value of the sale of financial assets before the due date.Contract cash flow characteristics
The classification of financial assets at initial recognitions depends on the contractual cash flow characteristics of the financial assets.It is necessary to determine whether the contractual cash flow is only for the payment of principal and interest based on outstanding
principal including correction of the time value of money during the evaluation it is necessary to determine whether there is a
significant difference compared to the benchmark cash flow. For financial assets that include prepayment characteristics it is necessary
to determine whether the fair value of the prepayment characteristics is very small etc.Uncertainty of accounting estimates
30The crucial assumptions of significant accounting estimates in future and other crucial sources of estimated uncertainty which may
result in the significant adjustments to the book value of the subsequent accounting period are as the following:
Impairment of financial instruments and contract assets
The Group uses the expected credit loss model to assess the impairment of financial instruments and contract assets. The application
of the expected credit loss model requires significant judgments and estimates. All reasonable and valid information must be considered
including forward-looking information. In making these judgments and estimates the Group infers the expected changes in the credit
risk of the debtor based on historical repayment data combined with economic policies macroeconomic indicators industry risks and
other factors. Different estimates may affect the provision for impairment losses. The provision for impairment losses may not be equal
to the actual amount of future impairment losses.Impairment of non-current assets other than financial assets (goodwill excluded)
The Group assesses at each reporting date whether there is an indication that non-current assets other than financial assets may be
impaired. If there is any sign of possible assets impairment the assets concerned should be subject to impairment test. When the
carrying amount of an asset or the relevant assets group exceeds its recoverable amount which is the higher one of the net amount of
the fair value of the asset minus the disposal expenses and the present value of the expected future cash flow of the asset the asset is
considered impaired. The fair value minus the disposal expenses is determined by reference to the recent market transactions price or
observed market price less any directly attributable expenditure for disposing. When making an estimate of the present value of the
future cash flow of an asset the Group should estimate the future cash flows of the asset or the relevant assets group with the
appropriate discount rate selected to reflect the present value of the future cash flows.Fair value of unlisted equity investments
The group uses the market method to determine the fair value of unlisted equity investments. This requires the group to determine
comparable listed companies select market multipliers estimate liquidity discounts etc. so it is uncertain.Development expenditures
When determining the capitalization amount management should make assumptions such as the expected cash flows of the assets
related the applicable discount rate and expected benefit period.Deferred tax assets
The Group should recognize the deferred income tax assets arising from all the existing unutilized tax deficits and deductible temporary
differences to the extent of the amount of the taxable income which it is most likely to obtain and which can be deducted from the
deductible temporary differences. Enormous accounting judgments as well as the tax planning are compulsory for management to
estimate the time and amount of prospective taxable profits and thus determine the appropriate amount of the deferred tax assets
concerned.Warranty
The Group provides warranties on automobile and undertakes to repair or replace items that fail to perform satisfactorily based on
certain pre-determined conditions. Factors that influence estimation of related warranty claim include: 1) renewal of laws and
regulations; 2) quality promotion of Group products; 3) change of parts and labour cost. In general the Group records warranty based
on selling volume and estimated compensatory unit warranty cost deduction multi-agreed compensation from suppliers. As at balance
sheet day the Group launches retrospective analysis on warranty carrying amount in consideration of accrual warranty payment during
relative warranty period and recent trends of product renovation and replacement and further adjustment if necessary. Any increase
or decrease in the provision would affect profit or loss in future years.Lessee Incremental Borrowing Rate
For leases for which the interest rate implicit in the lease cannot be determined the Group uses the lessee's incremental borrowing rate
as the discount rate to calculate the present value of lease payments. When determining the incremental borrowing rate the Group
takes the observable interest rate as the reference basis for determining the incremental borrowing rate according to the economic
environment in which it is located. The reference interest rate is adjusted according to the specific conditions of the leasing business to
obtain the applicable incremental borrowing rate.
35. Significant accounting judgments and estimates
(1) Significant accounting policy changes
□ Applicable √ Not applicable
(2) Changes in significant accounting estimates
□ Applicable √ Not applicable
31VI. TAXES
1. Main taxes and tax rates
The income from the sale of goods and the income from the provision of services are calculated at the tax
Value added tax
rates of 13% and 6% respectively and the VAT is calculated on the basis of the difference after deducting
(“VAT”)
the input tax that is allowed to be deducted in the current period.Consumption tax Consumption tax is calculated at 1% 3% or 5% of taxable income.City maintenance and
5% or 7% of the turnover tax paid is calculated and paid.
construction tax
Educational surcharge 3% of the actual turnover tax paid is calculated and paid.Local educational
2% of the actual turnover tax paid is calculated and paid.
surcharge
Corporate income tax Corporate income tax is paid at 15% or 25% of taxable income.
2. Tax benefits
According to the relevant provisions of the national high-tech identification and relevant tax preferential policies the following
companies of the Group are identified as high-tech enterprises and are subjected to the preferential corporate income tax rate of 15%
within the prescribed period: the company (2021-2023) and the Company’s subsidiaries including Hebei Changan Automobile
Company Limited (2020-2022) Deepal Automobile Technology Company Limited (2021-2023).According to the Announcement on Continuing the Income Tax Policy for Enterprises in the Large-scale Development of the Western
Region jointly issued by the Ministry of Finance the State Administration of Taxation and the National Development and Reform
Commission from January 1 2021 to December 31 2030 enterprise income tax will be levied at a reduced rate of 15% for encouraged
industrial enterprises located in the western region. Chongqing Changan Automobile International Sales Service Co. Ltd. Chongqing
Changan Special Purpose Vehicle Co. Ltd. Chongqing Changan Automobile Customer Service Co. Ltd. Chongqing Lingyao
Automobile Co. Ltd. and Chongqing Chehemei Technology Co. Ltd. subsidiaries of the Company meet the above requirements and
are subject to corporate income tax calculated at a 15% corporate income tax rate.According to the announcement on enterprise income tax policy for promoting the high-quality development of integrated circuit
industry and software industry jointly issued by the Ministry of finance the State Administration of Taxation the development and
Reform Commission and the Ministry of industry and information technology integrated circuit design equipment materials
packaging testing enterprises and software enterprises encouraged by the State shall be exempted from enterprise income tax from the
first year to the second year from the profit making year From the third year to the fifth year the enterprise income tax shall be reduced
by half at the statutory tax rate of 25%. Chongqing Changan Automotive Software Technology Co. Ltd. a subsidiary of the company
meets the above conditions and is subject to enterprise income tax at the statutory tax rate of half this year.VII. Notes to the consolidated financial statements
1. Cash
In RMB Yuan
Item Ending balance Beginning balance
Cash 1886.16 32155.77
Cash at bank 64133735374.29 52455913791.28
Other cash 1852209303.76 1074237880.29
Total 65985946564.21 53530183827.34
As at 30 June 2023 the book value of restricted cash and cash equivalents is RMB 1832280514.67 which was mainly restricted for
the issuance of acceptance bill (December 31 2022: RMB 1038748779.60).As at 30 June 2023 the cash at bank oversea is equivalent to RMB 1186263774.58 (December 31 2022: RMB 231286316.97).
32As of June 30 2023 the monetary capital deposited by the group in the financial company of the related party was RMB
34557412889.08 (December 31 2022: RMB 34812952043.78). See note XII and 5 for details.
The interest income of bank demand deposits is obtained according to the interest rate of bank demand deposits. 7-day bank call
deposits and time deposits can be withdrawn at any time according to the group's cash demand and interest income is obtained
according to the corresponding bank deposit interest rate.
2. Transactional financial assets
In RMB Yuan
Item Ending balance Beginning balance
Equity instrument investment 262239446.37 251165128.80
Others 29150442.29
Total 262239446.37 280315571.09
As of June 30 2023 the trading financial assets measured at fair value are 27.09 million ordinary shares of Southwest Securities Co.Ltd. held by the group (December 31 2022: 33.63 million shares) and 26.05 million restricted shares held by the group in China
Automobile Research automobile testing ground Co. Ltd. (December 31 2022: Nil).
3. Notes receivable
(1) Classification of notes receivable
In RMB Yuan
Item Ending balance Beginning balance
Commercial acceptance bill 22559968628.70 25838721743.62
Bank acceptance bill 11403949194.61 10010938909.34
Total 33963917823.31 35849660652.96
(2)Notes receivable pledged
In RMB Yuan
Item Pledged amount
Commercial acceptance bill 6179911994.47
Bank acceptance bill 199543152.00
Total 6379455146.47
As of June 30 2023 the bills receivable of the above amount had been pledged for issuing bills payable.
(3)Endorsed or discounted but unexpired notes receivable as at the end of reporting period
In RMB Yuan
Amount derecognized at the end of the Amount not derecognized at the end of
Item
period the period
Commercial acceptance bill 5501433908.49 -
Bank acceptance bill 228955.19 -
Total 5501662863.68 -
(4)At the end of the period the company transferred the bills to accounts receivable due to the drawer's non performance
As at 30 June 2023 there was no note receivables converted to accounts receivable due to the inability of the drawer to perform the
contract. (As at 31 December 2022: Nil)
4. Accounts receivable
(1)Aging analysis of the accounts receivable
33In RMB Yuan
Aging Ending balance Beginning balance
Within 1 year 2416543623.42 2905353787.00
1 to 2 years 71350324.51 176712124.08
2 to 3 years 6060396.21 25732015.24
Over 3 years 208767029.46 201045330.53
Total 2702721373.60 3308843256.85
Less: Provision (225703574.25) (240428841.56)
Total 2477017799.35 3068414415.29
(2)The movements in provision for impairment of accounts receivable are as follows:
In RMB Yuan
Change amount in the current period
Beginning
Category Merger Withdrawal Ending balance balance Provision Write-off
increase or reversal
2023.6.30240428841.5621786720.498683488.916323653.9938871822.72225703574.25
2022.12.31215274377.6235457297.584945346.855357486.79240428841.56
(3)Analysis of accounts receivable by category
In RMB Yuan
Ending balance
Category Balance Provision
Book value
Amount % Amount %
Individually analyzed for provision 1717016214.88 63.53 128730126.47 7.50 1717016214.88
Accounts receivable analyzed as
985705158.7236.4796973447.789.84985705158.72
groups for provision
Total 2702721373.60 100.00 225703574.25 8.35 2702721373.60
Beginning balance
Category Balance Provision
Book value
Amount % Amount %
Individually analyzed for provision 2059626543.23 62.25 152800930.19 7.42 2059626543.23
Accounts receivable analyzed as
1249216713.6237.7587627911.377.011249216713.62
groups for provision
Total 3308843256.85 100.00 240428841.56 7.27 3308843256.85
(4)The Group’s accounts receivable was analyzed for provision by expected credit loss model
In RMB Yuan
Ending balance
Aging Expected credit loss rate Expected credit loss for the
Estimated face value for default
(%) entire duration
Within 1 year 754808931.73 0.19 1407868.22
1 to 2 years 58832021.35 6.24 3669447.39
2 to 3 years 5803750.00 16.02 929861.76
Over 3 years 166260455.64 54.71 90966270.41
Total 985705158.72 9.84 96973447.78
34Beginning balance
Aging Expected credit loss rate Expected credit loss for the
Estimated face value for default
(%) entire duration
Within 1 year 1031532359.36 0.41 4211660.35
1 to 2 years 30724065.06 7.24 2225905.84
2 to 3 years 25707148.00 16.02 4118732.53
Over 3 years 161253141.20 47.80 77071612.65
Total 1249216713.62 7.01 87627911.37
(5) Accounts receivable with top five ending balances collected by debtors
As at June 30 2023 accounts receivable from Top 5 clients amounted to RMB 910077900.68 accounted for 33.67% of the total
accounts receivable (December 31 2022: RMB 1880530647.71 accounted for 56.83% of the total amount).
(6) Accounts receivable derecognized due to transfer of financial assets
As of June 30 2023 the Group has no accounts receivable that are derecognized as the transfer of financial assets (December 31 2022:
Nil).
5. Prepayments
(1) Prepayments listed by aging
In RMB Yuan
Ending balance Beginning balance
Aging
Amount % Amount %
Within 1 year 622741040.66 94.01 523061724.51 69.78
1 to 2 years 30083298.85 4.54 217460711.49 29.01
2 to 3 years 8860304.45 1.34 8858465.69 1.18
Over 3 years 704745.03 0.11 191360.31 0.03
Total 662389388.99 100.00 749572262.00 100.00
(2) Prepayments of the top five ending balances collected by prepayment object
As at 30 June 2022 the total amount of the top five prepayments was RMB 1474271190.88 accounting for 38.15% of the total
amount of prepayments (2021: RMB 1151298912.20 accounting for 35.52%).
6. Other receivables
In RMB Yuan
Item Ending balance Beginning balance
Dividend receivable 180656814.04
Other receivables 778979126.16 1261157951.14
Total 959635940.20 1261157951.14
(1)Dividend receivable
In RMB Yuan
Project (or investee) Ending balance Beginning balance
Weaponry Group Finance Co. Ltd 180656814.04
Total 180656814.04
(2)Other receivables
351) Aging analysis of other receivables
In RMB Yuan
Aging Ending balance Beginning balance
Within 1 year 404062220.98 1192972701.51
1 to 2 years 324136540.21 57855077.50
2 to 3 years 48742138.29 1364188.70
Over 3 years 11184947.78 18062282.93
Total 788125847.26 1270254250.64
Less: Provision (9146721.10) (9096299.50)
Total 778979126.16 1261157951.14
2) Other receivables are classified by nature
In RMB Yuan
Nature Ending balance Beginning balance
Bond 382933957.10 16618938.83
Subsidies for new energy vehicles 191328464.00 667729527.63
Petty cash 52817507.27 63703195.18
Investment funds 35000000.00 399486432.52
Other 116899197.79 113619856.98
Total 778979126.16 1261157951.14
3) The changes in the provision for bad debts for other receivables based on the 12-month expected credit losses and the expected
credit losses for the entire duration
In RMB Yuan
Change amount in the current period
Beginning
Category Withdrawal or Ending balance balance Provision Write-off
reversal
2023.6.309096299.5074667.4024245.809146721.10
2022.12.317466239.961886641.46156581.92100000.009096299.50
4) Other receivables with top five ending balances collected by debtors
In RMB Yuan
Proportion in Ending
ending balance of balance of
Name Nature Ending balance Aging
other receivables bad debt
(%) provision
First Bond 300000000.00 1 to 2 years 38.06
Subsidies for new energy
Second 191328464.00 Within 1 year 24.28
vehicles
Third Disposal of assets 48350040.00 2 to 3 years 6.13
Fourth Bond 44615500.00 Within 1 year 5.66
Fifth Equity investment funds 35000000.00 Within 1 year 4.44
Total 619294004.00 - 78.57
5) Other receivables derecognized due to transfer of financial assets
As of June 30 2023 the Group has no other receivables derecognized as financial asset transfers. (December 31 2022: Nil).
7. Inventory
(1) Classification of inventory
36In RMB Yuan
Ending balance Beginning balance
Provision for Provision for
impairment of impairment of
inventories or inventories or
Item provision for provision for
Balance Net value Balance Net value
impairment of impairment of
contract contract
performance performance
costs costs
Raw
926643222.25387861235.15538781987.101230104093.50439269923.99790834169.51
materials
Work in
178075579.62178075579.62130255961.90130255961.90
transit
Work in
1126031029.0868920010.071057111019.011719902124.0753609953.081666292170.99
progress
Commodity
8543057327.8597202201.728445855126.133264190903.2787522918.363176667984.91
stock
Consigned
processing 26582772.70 26582772.70
material
Spare parts 33116871.58 33116871.58 32674452.89 32674452.89
Total 10806924030.38 553983446.94 10252940583.44 6403710308.33 580402795.43 5823307512.90
(2) Provision for inventory
In RMB Yuan
Beginning Increase Decrease
Item Ending balance
balance Provision Other Reversal Write-off
Raw materials 439269923.99 68334317.49 19789507.89 240682.47 139291831.75 387861235.15
Work in
53609953.0828045494.93330076.9912405360.9568920010.07
progress
Commodity
87522918.3617771158.05160909600.793234731.90165766743.5897202201.72
stock
Total 580402795.43 114150970.47 180699108.68 3805491.36 317463936.28 553983446.94
8. Contract assets
In RMB Yuan
Ending balance Beginning balance
Item Provision for Provision for
Balance Net value Balance Net value
impairment impairment
Contract
2712885743.74485561233.572227324510.17747871586.89289482399.79458389187.10
assets
Total 2712885743.74 485561233.57 2227324510.17 747871586.89 289482399.79 458389187.10
Current contract assets provision for impairment：
In RMB Yuan
Beginning balance Provision Turn back Resale Ending balance
2023.6.30289482399.7965572656.78135456176.994950000.00485561233.56
2022.12.31169661981.98129619022.819798605.00289482399.79
379. Assets held for sale
In RMB Yuan
Provision for Estimated Expected
Item Balance Net value Fair Value
impairment disposal costs disposal time
Assets held for
327144.11 327144.11 Within 1 year
sale
Total 327144.11 327144.11
10. Other current assets
In RMB Yuan
Item Ending balance Beginning balance
Accrual input tax 874407379.73 803647039.82
Prepaid taxes 237176376.68 250386657.89
Others 14765170.48 745970.48
Total 1126348926.89 1054779668.19
3811. Long-term equity investments
In RMB Yuan
Increase / decrease Provision
Investee Beginning balance Investment income under Ending balance ending
Addition Other decreases
equity method balance
I. Joint Venture
Changan Ford Automobile Co. Ltd. 712459351.85 399619898.50 1112079250.35
Changan Mazda Automobile Co. Ltd. 1433304456.32 (100026283.01) 1333278173.31
Changan Mazda Engine Co. Ltd. 824042049.05 4107980.55 828150029.60
Nanchang Jiangling Holding Co. Ltd. 1810629644.86 146167915.87 1956797560.73
Subtotal 4780435502.08 449869511.91 5230305013.99
II. Associates
Chongqing Changan Kuayue Automobile Co.
209768936.345402511.72215171448.06
Ltd.Changan Automobile Financing Co.Ltd 2778898410.33 172182412.71 2951080823.04
Nanjing Chelai Travel Technology Co. Ltd. 624773.31 (92277.85) 532495.46
Hunan Guoxin Semiconductor Technology Co.
25452425.2671917.1925524342.45
Ltd.Jiangling Holding Co. Ltd.(note 1)
Chongqing Changan Kuayue Automobile Sales
Co. Ltd. (note 1)
Nanjing Leading Equity Investment
2570421464.70(51784.35)2570369680.35
Management Co. Ltd. (Limited Partnership)
Nanjing Leading Equity Investment Partnership 1112210.69 (5089.84) 1107120.85
Zhongqi Chuangzhi Technology Co. Ltd. 168492790.78 (6754636.46) 161738154.32
Chongqing Changxin Zhiqi Private Equity
Investment Fund Partnership (Limited 170440054.08 242103.89 170682157.97
Partnership)
Anhe Chongqing Dingfeng Automobile
61568706.084.2661568710.34
Contract Private Equity Investment Fund
Avatr Technology (Chongqing) Co. Ltd 2644535940.48 (745447867.08) 1899088073.40
Chongqing Changan Innovation Private Equity 1000844.59 446.93 1001291.52
39Investment Fund Partnership Enterprise
(Limited Partnership)
Anhe (Chongqing) Equity Investment Fund
5150787.41(553650.85)4597136.56
Management Co. Ltd.Hangzhou Chelizi Intelligent Technology Co.
3020026.803020026.80
Ltd.Master Changan Automobile Co. Ltd. 45248645.36 6823643.69 52072289.05
Chongqing Changxian Intelligent Technology
102000000.0066933.68102066933.68
Co. Ltd
Deepal Automobile Technology Co. Ltd.(note
940490937.99(67105457.17)(873385480.82)
2)
Time FAW Power Battery Co. Ltd.(note 3) 252012401.16 2691403.28 254703804.44
Chongqing Wutong Chelian Technology Co.
75267178.906686538.6181953717.51
Ltd. (note 3)
Western Car Network (Chongqing) Co. Ltd.
2478830.94(151734.46)2327096.48
(note 3)
Beijing Fang’an cresent taxi Co. Ltd. (note 4)
Subtotal 9626226954.20 431758411.00 (625994582.10) (873385480.82) 8558605302.28
Total 14406662456.28 431758411.00 (176125070.19) (873385480.82) 13788910316.27
Note 1: As of June 30 2023 the Group had no obligation to bear additional losses to Chongqing Changan Kuayue Vehicle Marketing Co. Ltd. and Jiangling Holdings Co. Ltd. Therefore when
they incurred excess losses only long-term equity investments were written down to zero and no excess losses related to investments in the aforementioned companies were recognized.Note 2: In February 2023 due to the acquisition of equity in Deepal Automobile Technology Co. Ltd. by the group it changed from an associate to a subsidiary.Note 3: This year the Group increased the investment of 329758411.00 yuan in the affiliated enterprises Time FAW Power Battery Co. Ltd. wutong Chelian Technology Co. Ltd. and Western
Chewang (Chongqing) Co. Ltd. which is the result of the Group's acquisition of Deepal Automobile Technology Co. Ltd. and its long-term equity investment in the affiliated enterprises is
included in the consolidation scope.Note 4: In January 2023 the Group completed the equity disposal of Beijing Fangan Crescent Taxi Co. Ltd.
4012. Investment in other equity instruments
In RMB Yuan
Accumulative Reason for being
changes in fair designated
value included in
Item Fair value Dividends Income as fair value
other through other
comprehensive comprehensive
income income
China South Industry Group Finance Co. Unlisted equity
181979200.00339000000.00180656814.04
Ltd. instruments
Guoqi (Beijing) Intelligent Network
Unlisted equity
Association Automotive Research Institute 2700000.00 52700000.00
instruments
Co. Ltd.Guoqi Automobile Power Cell Research Unlisted equity
40000000.00
Co. Ltd. instruments
China South Industry Group Financial Unlisted equity
3698000.0034250000.00
Leasing Co. Ltd. instruments
Unlisted equity
Zhong Fa Lian Investment Co. Ltd. 21000000.00
instruments
CAERI(Beijing) automobile Lightweight
Technology Research Unlisted equity 3000000.00
instruments
Institution Co. Ltd.Total 188377200.00 489950000.00 180656814.04
13. Investment property
Cost Model
In RMB Yuan
Item Buildings Total
I. Original cost
1. Opening balance 10050100.00 10050100.00
2. Increase in current period
3. Decrease in current period
4. Ending balance 10050100.00 10050100.00
II. Accumulated depreciation and amortization
1. Opening balance 3627384.96 3627384.96
2. Increase in current period 113355.78 113355.78
3. Decrease in current period
4. Ending balance 3740740.74 3740740.74
III. Impairment provision
1. Opening balance
2. Increase in current period
3. Decrease in current period
4. Ending balance
IV. Net Value
1. Ending 6309359.26 6309359.26
2. Beginning 6422715.04 6422715.04
The investment property is rented to third parties in the form of operating lease.
41As at 30 June 2023 there was no investment property without property certificate (As at 31 December 2021: Nil).
14. Fixed assets
(1) Details of fixed assets
In RMB Yuan
Item Buildings Machinery Vehicles Other Equipment Total
I. Original cost
Beginning 9828625137.70 26295137118.43 1983195890.87 9475715171.05 47582673318.05
Purchase 4473693.57 215663.71 7809446.06 12498803.34
Transfer from
Construction in 61804269.27 340347569.12 13604766.67 440568271.53 856324876.59
progress
Increase in
470810107.3097376.6496160690.62567068174.56
business merger
Other additions 6587437.89 5495575.99 60580.42 445449.63 12589043.93
Disposal 299969783.23 170283554.82 39508903.91 102557039.61 612319281.57
Government grants 25065921.11 36347887.20 61413808.31
Other decrease 361031.96 9923097.01 205904.59 10490033.56
Ending 9596686029.67 26910991491.47 1921111582.61 9918141989.28 48346931093.03
II.Accumulated
depreciation
Beginning 3123481499.40 16387379193.35 712742045.45 5343343137.24 25566945875.44
Accrual 171728462.63 801278672.10 141340209.22 378124663.67 1492472007.62
Increase in
88078845.8011806.9130208499.83118299152.54
business merger
Other additions 2817640.69 4561751.68 8603.52 775586.11 8163582.00
Disposal 215472125.28 133916182.37 28858045.79 97997712.86 476244066.30
Other decrease 358999.11 8831258.30 102262.81 9292520.22
Ending 3082196478.33 17138551022.26 825142356.50 5654454173.99 26700344031.08
III.Impairment
Provision
Beginning 97718327.95 2189788051.83 57769334.61 323687036.78 2668962751.17
Accrual 4087988.86 121158826.10 42369038.67 17229525.66 184845379.29
Increase in
62029.55252215.89314245.44
business merger
Disposal 34731080.99 34393754.16 4415040.34 3348143.93 76888019.42
Ending 67075235.82 2276615153.32 95723332.94 337820634.40 2777234356.48
IV. Net Value
Ending 6447414315.52 7495825315.89 1000245893.17 3925867180.89 18869352705.47
Beginning 6607425310.35 7717969873.25 1212684510.81 3808684997.03 19346764691.44
(2) Fixed assets that are temporarily unused
On June 30 2023 the fixed assets with a book value of RMB 108924744.94 (December 31 2022: RMB 191192253.37) were tem
porarily idle due to product upgrading and other reasons.
42(3) The fixed assets which are rented out under operating leases
In RMB Yuan
Item Ending
Buildings 184106042.14
Vehicles 915602548.69
Total 1099708590.83
(4) Fixed assets with incomplete property rights certificates
In RMB Yuan
Reasons for not completing the property
Item Book value
rights certificate
Engine and vehicle project 917466884.66 Processing
Global R&D Center Project 9246434.77 Processing
Total 926713319.43
15. Construction in progress
(1) Details of construction in progress
In RMB Yuan
Ending balance Beginning balance
Item
Balance Provision Carrying amount Balance Provision Carrying amount
Mini-bus
production 80451176.96 80451176.96 75025377.82 75025377.82
equipment
Car production
298244431.711310363.23296934068.48242918939.8622624011.22220294928.64
equipment
Engine plant 608138520.52 608138520.52 504558659.05 504558659.05
Vehicle research
24918534.1624918534.1617740102.5017740102.50
institution
Car production
Project of 52500806.38 52500806.38 55863516.26 55863516.26
Hefei Changan
Yubei Factory
Replacement
and Upgrading 426535063.94 426535063.94 41224362.58 41224362.58
Construction
Project
Nanjing
493667793.08493667793.08385922235.89385922235.89
Changan Project
Others 265463471.46 23108966.89 242354504.57 110378003.02 23108967.12 87269035.90
Total 2249919798.21 24419330.12 2225500468.09 1433631196.98 45732978.34 1387898218.64
43(2) Movements of significant construction in progress
In RMB Yuan
The project
investments’ Progress of Budget Beginning Transferred to Other
Item Addition Ending balance proportion construction Source of funds
(In 1000 RMB) balance fixed assets deduction
of budget (%)
(%)
Mini-bus
production 137470.00 75025377.82 116170932.89 110715639.06 29494.69 80451176.96 70.00 70.00 Self-funded
equipment
Self-raised and
Car production
360738.00 220294928.64 88627425.25 11987406.41 879.00 296934068.48 37.00 37.00 additional
equipment
issuance
Self-raised and
Engine plant 485216.00 504558659.05 175347789.87 71758364.90 9563.50 608138520.52 67.00 67.00 additional
issuance
Vehicle research
209906.00 17740102.50 36321076.06 29142644.40 24918534.16 77.00 77.00 Self-funded
institution
Car production Self-raised and
project of 394980.00 55863516.26 29114023.06 15540120.15 16936612.79 52500806.38 89.00 89.00 additional
Hefei Changan issuance
Yubei Factory
Replacement
and Upgrading 450000.00 41224362.58 386152904.19 842202.83 426535063.94 10.00 10.00 Self-funded
Construction
Project
Nanjing
231028.77 385922235.89 117819350.58 9443204.39 630589.00 493667793.08 22.00 22.00 Self-funded
Changan Project
Others 87269035.90 762822965.95 607737497.28 242354504.57
Total 1387898218.64 1712376467.85 856324876.59 18449341.81 2225500468.09
44(3) The movement of impairment for construction in progress is as follows:
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
June 30 2023 45732978.34 21313648.22 24419330.12
December 31 2022 71691670.00 1533334.00 27492025.66 45732978.34
16. Right-of-use assets
In RMB Yuan
Item Buildings Total
I. Original cost
1. Beginning 152893426.61 152893426.61
2. Purchase 91206361.68 91206361.68
3. Disposal 34586561.85 34586561.85
4. Other deduction 216647.90 216647.90
5. Ending 278469702.24 278469702.24
II. Accumulated depreciation
1. Beginning 52080040.60 52080040.60
2. Purchase 32246838.71 32246838.71
3. Disposal 7382368.87 7382368.87
4. Other deduction
5. Ending 91709248.18 91709248.18
III. Impairment provision
1. Beginning
2. Purchase
3. Disposal
4. Other deduction
5. Ending
III. Carrying amount 186760454.06 186760454.06
1. Ending 100813386.01 100813386.01
2. Beginning 152893426.61 152893426.61
17. Intangible assets
(1) Details of intangible assets
In RMB Yuan
Non-patent Software use Trademark use
Item Land use rights Patent Total
technology rights rights
I. Original cost
Beginning 2237966691.60 85556571.30 7695744860.28 845391055.17 211864157.55 11076523335.90
Purchase 841400.00 16280912.97 17122312.97
Internal
research and 891781541.36 891781541.36
development
45Increase in
8751791175.803812679.222412758750.0011168362605.02
business merger
Other
244259.88244259.88
additions
Government
696933.96696933.96
subsidies
Ending 2237966691.60 85556571.30 17340158977.44 865031973.28 2624622907.55 23153337121.17
II. Accumulated
amortization
Beginning 468031897.59 7129714.27 4904544443.73 726462315.72 211791516.98 6317959888.29
Accrual 23244982.66 4515887.14 492517355.98 17725650.40 100531614.60 638535490.78
Increase in
658468887.401531371.38660000258.78
business merger
Ending 491276880.25 11645601.41 6055530687.11 745719337.50 312323131.58 7616495637.85
III. Impairment
provision
Beginning 288560268.76 23617923.17 312178191.93
Accrual 41460645.81 41460645.81
Increase in
114723135.98114723135.98
business merger
Ending 444744050.55 23617923.17 468361973.72
IV 、 Carrying
amount
Ending 1746689811.35 73910969.89 10839884239.78 95694712.61 2312299775.97 15068479509.60
Beginning 1769934794.01 78426857.03 2502640147.79 95310816.28 72640.57 4446385255.68
As of June 30 2023 intangible assets formed through internal research and development accounted for 71.94% of the year-end book
value of intangible assets (December 31 2022: 56.28%).As of June 30 2023 there is no land use rights that have not completed the land use right certificate (December 31 2022: Nil).
18. Development expenditure
In RMB Yuan
Deduction
Beginning
Item Charged to income Recognized as Ending balance balance Statement of the Other deduction
intangible assets
current year
Automobile
723211177.471063209112.26568748628.02891781541.3669615120.74
Development
Total 723211177.47 1063209112.26 568748628.02 891781541.36 69615120.74
19. Development expenditure
(1) Original book value of goodwill
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Hebei Changan Automobile Co. Ltd 9804394.00 9804394.00
Nanjing Changan Automobile Co. Ltd
Deepal Automobile Technology Co. Ltd 1799533524.87 1799533524.87
46Total 9804394.00 1799533524.87 1809337918.87
(2) Provision for goodwill
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Nanjing Changan Automobile Co. Ltd. 73465335.00 73465335.00
Total 73465335.00 73465335.00
20. Long-term deferred expenses
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Long-term
26375422.17330568.521468484.0825237506.61
deferred expenses
Total 26375422.17 330568.52 1468484.08 25237506.61
21. Deferred tax assets and liabilities
(1) Deferred income tax assets that are not offset:
In RMB Yuan
Ending balance Beginning balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Assets provision 3335103631.55 500307251.00 3278951051.51 491238489.39
Accrued expenses and
8746751245.951322800648.658585308052.561298584169.65
contingent liabilities
Unpaid tech development
expense and advertisement 148198861.26 22229829.19 372397166.51 55859574.98
expense
Deferred income 2681013729.64 452674206.27 2699509959.27 457007113.15
Unpaid salary and bonus and
6041961732.14913093121.894831140039.89725797840.01
others
Total 20953029200.54 3211105057.00 19767306269.74 3028487187.18
(2) Deferred income tax liabilities that are not offset:
In RMB Yuan
Ending balance Beginning balance
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Changes in fair value of trading financial
392544668.5358881700.28358180218.3653727032.75
assets
Fair value adjustment of business
9556125001.531433418750.23204733319.0030709997.85
combination not under common control
47Long-term equity investment 941637804.40 141245670.66 971329619.28 145699442.89
Other 43149109.32 8198330.77 46001784.40 6900267.67
Total 10933456583.78 1641744451.94 1580244941.04 237036741.16
(3) Details of unrecognized deferred tax assets
In RMB Yuan
Item Ending balance Beginning balance
The deductible temporary difference 1365435669.75 1785535297.97
The deductible tax loss 10857072476.10 3908340793.95
Total 12222508145.85 5693876091.92
Note: Due to the uncertainty of whether there will be enough taxable profit in future to utilize the above deductible loss no deferred
tax assets have been recognized accordingly.
(4) Maturity period for unrecognized deductible tax losses:
In RMB Yuan
Year Ending balance Beginning balance Notes
2023719486343.29719486343.29
2024644243430.69644243430.69
2025669056651.63669056651.63
2026172527777.26172527777.26
2027 and beyond 8651758273.23 1703026591.08
Total 10857072476.10 3908340793.95
22. Short-term loans
In RMB Yuan
Item Ending balance Beginning balance
Mortgage loans 29000000.00
Guaranteed loan 50000000.00
Total 50000000.00 29000000.00
As at 30 June 2023 there was no overdue short-term loan (as at 31 December 2022: Nil).
23. Trading financial liabilities
In RMB Yuan
Item Ending balance Beginning balance
Trading financial liabilities 37813520.40
Total 37813520.40
24. Notes payable
In RMB Yuan
48Item Ending balance Beginning balance
Commercial acceptance bill 2778006144.76 5001155687.84
Bank acceptance bill 30934066264.26 17071638176.99
Total 33712072409.02 22072793864.83
As at 30 June 2023 there were no significant accounts payable aged over one year (as at 31 December 2022: Nil).
25. Accounts payable
In RMB Yuan
Item Ending balance Beginning balance
Accounts payable 30465634254.25 29449664138.75
Total 30465634254.25 29449664138.75
As at 30 June 2023 there were no significant accounts payable aged over one year (as at 31 December 2022: Nil).
26. Contract liabilities
In RMB Yuan
Item Ending balance Beginning balance
Advance payment 6085144617.15 4808762223.46
Advance service payment 1030934007.43 846494569.20
Total 7116078624.58 5655256792.66
27. Payroll payable
(1) Payroll payable
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Short term salary
2716484740.125070477217.903908885458.123878076499.90
benefits
Defined contribution
88857749.73427650480.66393425847.42123082382.97
plans
Early retirement
1816000.001816000.00
benefits
Total 2807158489.85 5498127698.56 4302311305.54 4002974882.87
(2) Short term salary benefits：
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
1. Salary bonus allowance
2221656081.044158712198.932906028582.433474339697.54
and subsidy
2. Employee benefit 50756371.68 187911611.89 231383764.66 7284218.91
3. Social insurance 33848460.18 317201669.69 290720761.46 60329368.41
49Medical insurance 21350192.95 268524262.03 246361315.68 43513139.30
Industrial injury
11102522.2429456054.7423747390.1316811186.85
insurance
Maternity insurance 1395744.99 442746.86 1833449.59 5042.26
Supplementary
18778606.0618778606.06
medical insurance
4. Housing accumulation
83944161.72259477229.93309278181.8834143209.77
fund
5. Labor fund and employee
326279665.50147174507.46171474167.69301980005.27
education fund
Total 2716484740.12 5070477217.90 3908885458.12 3878076499.90
(3) Defined contribution plans：
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
1. Basic retirement
79031084.59405052440.21374117320.86109966203.94
security
2. Unemployment
9826665.1422598040.4519308526.5613116179.03
insurance
Total 88857749.73 427650480.66 393425847.42 123082382.97
The salary bonus allowance and subsidy employee benefits and other social insurances mentioned above are paid in time according
to related laws and regulations and sets of the Group.
28. Taxes payable
In RMB Yuan
Item Ending balance Beginning balance
Value-added tax 726595058.42 655162944.40
Consumption tax 427033929.08 378822293.63
Corporate income tax 261659659.74 550250134.24
City maintenance and construction tax 90984717.30 106797577.85
Others 40516904.58 58913132.20
Total 1546790269.12 1749946082.32
29. Other payables
In RMB Yuan
Item Ending balance Beginning balance
Interest payable 16112069.40 1478888.85
Dividend Payable 2341524610.92 79742.80
Other payables 6104890752.47 6081207793.02
Total 8462527432.79 6082766424.67
50（1） Interest payable
In RMB Yuan
Item Ending balance Beginning balance
Interest on long-term loans with
installment payments and due repayment 22222.21 562222.18
of principal
Interest payable on short-term loans 89847.20
Interest payable on corporate bonds 15999999.99 916666.67
Total 16112069.40 1478888.85
（2） Dividend Payable
In RMB Yuan
Item Ending balance Beginning balance
Common stock dividends 2341414868.12
Minority shareholder dividends 109742.80 79742.80
Total 2341524610.92 79742.80
（3） Other payables
In RMB Yuan
Item Ending balance Beginning balance
Payment for the purchase and construction of fixed
1660151791.661190478260.12
assets intangible assets and engineering deposit
Customer and supplier deposit 1394012215.84 839653876.07
Advertising expenses 689677376.28 505569065.16
Storage and shipping fees 595944380.19 382409902.25
Treasury stock repurchase obligation 442866474.72 627060416.52
Repair and processing costs 272324171.31 278765596.52
National Supplementary Advance Appropriation 175967030.00 697956559.00
Advance payment for land and plant disposal 635268035.18
Other 873947312.47 924046082.20
Total 6104890752.47 6081207793.02
30. Non-current liability within 1 year
In RMB Yuan
Item Ending balance Beginning balance
Long-term loan within 1 year 4000000.00 604000000.00
Long-term payables within 1 year 244429325.65
Lease liabilities within 1 year 65596855.90 37294575.69
Total 69596855.90 885723901.34
5131. Other current liabilities
In RMB Yuan
Item Ending balance Beginning balance
Accrued commercial discount payable 4467809005.78 3837216057.38
Accrued market development expense 976607722.67 1004950610.70
Accrued transportation fee 803463091.70 728264657.72
Accrued technology royalty 650010691.12 534463454.23
Accrued integrated services fee 83460160.55 87715544.50
Accrued negative points for fuel
73106266.3259308609.28
consumption
Accrued labor service fee 51173874.83 107051967.02
Accrued utilities 35050613.99 60370787.91
Others 250614221.08 207702978.88
Total 7391295648.04 6627044667.62
32. Long-term Loan
In RMB Yuan
Item Ending balance Beginning balance
Credit loan 80000000.00 640000000.00
Deduction: Loan within 1 year 4000000.00 604000000.00
Net Long-term Loan 76000000.00 36000000.00
As at June 30 2023 the interest rates of the above loans were 1.00% (as at 31 December 2022: 1.00%-3.00%).As at June 30 2023 there is no overdue long-term loans (as at 31 December 2022: Nil).
33. Bonds payable
In RMB Yuan
Item Ending balance Beginning balance
Corporate bonds 999558490.56 999528301.88
Total 999558490.56 999528301.88
Our company publicly issued technology innovation company bonds (Phase 1) to professional investors in December 2022 with a face
value of RMB 1000000000.00 and a fixed coupon rate of 3%. The simple interest is paid annually from December 20 2023 to 2027
and the final redemption date is December 20 2027.
34. Lease liabilities
In RMB Yuan
Item Ending balance Beginning balance
Lease liabilities 186466884.11 97499973.67
Less：Lease liabilities within 1 year 65596855.90 37294575.69
Net lease liabilities 120870028.21 60205397.98
5235. Long-term payables
In RMB Yuan
Item Ending balance Beginning balance
Long-term payables 408939511.34
Special payables 136176629.42 144579238.78
Total 136176629.42 553518750.12
(1) Long-term payables:
In RMB Yuan
Item Ending balance Beginning balance
Purchase of fixed assets 653368836.99
Less：Long-term payables within 1 year 244429325.65
Total 408939511.34
(2) Special payables:
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Intelligent manufacturing
54122972.0042324009.5344438445.6252008535.91
project
Lightweight design of
14410557.94390000.001962400.8412838157.10
automobile structure
Others 76045708.84 23993009.70 28708782.13 71329936.41
Total 144579238.78 66707019.23 75109628.59 136176629.42
36. Long-term payroll payable
In RMB Yuan
Item Ending balance Beginning balance
Net obligation of defined benefit plan 26358585.90 29227000.00
Early retirement 5786000.00 5786000.00
Total 32144585.90 35013000.00
37. Contingent liabilities
In RMB Yuan
Item Ending balance Beginning balance
Warranty 5228857409.75 4152001660.31
Contingent liabilities of contract
434908181.43437297661.18
performance
Total 5663765591.18 4589299321.49
5338. Deferred income
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Government grants related to
222169206.6663820286.0072095887.20213893605.46
assets
Government grants related to
125399342.9611700000.00450000.00136649342.96
gains
Total 347568549.62 75520286.00 72545887.20 350542948.42
Details of government grants are as follows:
In RMB Yuan
Liability Beginning balance Addition Deduction Ending balance
Related to assets: 222169206.66 63820286.00 9985144.93 62110742.27
Production and
166416924.2063820286.009985144.9362110742.27
construction subsidies
Other government
55752282.46
subsidies
Related to gains: 125399342.96 11700000.00 450000.00
R&D technology
121750757.2711700000.00450000.00
subsidies
Other government
3648585.69
subsidies
Total 347568549.62 75520286.00 10435144.93 62110742.27
39. Other non-current liabilities
In RMB Yuan
Item Ending balance Beginning balance
Advance service payment 2217804236.36 1728721535.34
Deduction: Advance service payment
1030934007.43846494569.20
within 1 year
Net other non-current liabilities 1186870228.93 882226966.14
40. Share capital
In RMB Yuan
Changes（+，-）Beginning
Provident Additional Stock Ending balance balance fund Others
issued dividend
transfer
I. Shares with sales
675775474.00(46200160.00)629575314.00
restrictions
1. State-owned legal
515311738.00515311738.00
person shares
2. Other domestic shares 159248366.00 (46200160.00) 113048206.00
Including: Domestic legal
person shares
54Domestic natural person
159248366.00(46200160.00)113048206.00
shares
3. Foreign shares 1215370.00 1215370.00
Including: Foreign legal
person shares
Foreign natural person
shares
II. Shares without sales
9246023948.0043723738.009289747686.00
restrictions
1.Ordinary shares
7604409171.0043723738.007648132909.00
denominated in RMB
2. Domestic listed foreign
1641614777.001641614777.00
shares
III. Total shares 9921799422.00 (2476422.00) 9919323000.00
41. Capital reserves
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Share premium 6485177332.59 286327307.00 7193909.31 6764310730.28
Share-based payments 648749767.92 187899000.00 286327307.00 550321460.92
Capital reserve
transferred arising from 44496899.00 44496899.00
the old standards
reserve of equity
17015985.2017015985.20
investments
Other capital reserves
1337366701.065395781.70663566110.70679196372.06
(Note)
Total 8532806685.77 479622088.70 957087327.01 8055341447.46
Note : In 2023 the decrease in other capital reserves was mainly due to the transfer of changes in capital reserves under the equity
method accounting involved in the original holding of equity in Deepal Automobile Technology Co. Ltd. into the current period's
profit and loss.
42. Treasury stock
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Treasury stock 627060416.52 184193941.80 442866474.72
Total 627060416.52 184193941.80 442866474.72
5543. Other comprehensive income
In RMB Yuan
Amount for this reporting period
Deduct: other Amount
Deduct: amounts
comprehensiv attributa
transferred to
e income in ble to
income statement
Beginning the previous minority
Item which were Deduct:
balance Amount period and Amount attributable interests
Ending balance
recognized in Income
before tax transferred to to owners
other tax
retained
comprehensive
earnings in
income in prior
the current
period
period
I. Other comprehensive income that cannot be
transferred to profit or loss under the equity 157170398.18 157170398.18
method
Change in net liability or assets from
(185000.00)(185000.00)
defined benefit plan
Other comprehensive income that
cannot be transferred to profit or loss under the (2765221.82) (2765221.82)
equity method
Changes in the fair value of other
160120620.00160120620.00
equity instrument investments
II. Other comprehensive income will be
reclassified to profit or loss in subsequent (58328782.76) 47734187.34 47734187.34 (10594595.42)
period
Other comprehensive income that can
be transferred to profit or loss under the equity (75815.98) (75815.98)
method
Foreign currency translation difference (58252966.78) 47734187.34 47734187.34 (10518779.44)
Total 98841615.42 47734187.34 47734187.34 146575802.76
5644. Special reserves
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Safety fund 24090898.05 64708453.30 35232765.78 53566585.57
Total 24090898.05 64708453.30 35232765.78 53566585.57
45. Surplus reserves
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Statutory surplus 3528137635.53 3528137635.53
Total 3528137635.53 3528137635.53
46. Retained earnings
In RMB Yuan
Item Current period Prior period
Retained earnings at beginning of the year 41379489865.45 35900674525.13
Add: Profits attributable to parent company for the
7652979346.805857626135.78
current year
Less: Ordinary share dividend of cash 2341414868.12 1778856191.54
Retained earnings at the end of year 46691054344.13 39979444469.37
47. Operating revenue and cost
In RMB Yuan
Amount for this period Amount for prior period
Item
Revenue Cost Revenue Cost
Main business 64198056038.61 53253026788.59 55281269652.99 44486900457.55
Other business 1294042830.40 748972479.99 1292298740.72 873190024.65
Total 65492098869.01 54001999268.58 56573568393.71 45360090482.20
48. Tax and surcharges
In RMB Yuan
Item Amount for this period Amount for prior period
Consumption tax 1666317085.12 1469234309.60
City maintenance and construction tax 208432679.24 194046087.99
Educational surcharge 140534177.17 133244356.31
Others 170890307.46 149775477.87
Total 2186174248.99 1946300231.77
5749. Operating expenses
In RMB Yuan
Item Amount for this period Amount for prior period
Sales service fee 1248854504.34 1151982258.69
Promotion advertising fee 1084798251.79 552426701.41
Payroll and welfare 430787399.64 297621384.05
Transportation and storage fees 220838227.15 205973233.78
Travelling expenses 47325735.92 30218731.48
Package expenses 11749644.92 28619986.39
Others 24080857.61 18487525.97
Total 3068434621.37 2285329821.77
50. General and administrative expenses
In RMB Yuan
Item Amount for this period Amount for prior period
Payroll and welfare 1787629699.79 1766803412.30
Depreciation and amortization 231626256.31 110312454.37
Traffic expenses and travelling expenses 34511835.46 21235281.45
Others 218192616.99 285683156.98
Total 2271960408.55 2184034305.10
51. Research and development expenses
In RMB Yuan
Item Amount for this period Amount for prior period
Payroll and welfare 1349892332.55 819010682.93
Depreciation and amortization 1015646669.62 614117321.15
Subcontract fee 287631512.09 272218189.13
Material fee 173948774.18 112662406.81
Test fee 64510633.02 17479289.63
Others 72974183.02 96806255.02
Total 2964604104.48 1932294144.67
52. Financial income
In RMB Yuan
Item Amount for this period Amount for prior period
Interest income 532594819.89 438428075.90
Less: Foreign exchange gain or loss 24815219.82 (40733323.13)
Interest expense 36814471.44 17892411.14
Others 17697023.74 23270638.90
Total 453268104.89 437998348.99
5853. Other income
Government subsidies related to daily activities
In RMB Yuan
Item Amount for this period Amount for prior period
Production and construction subsidies 657988649.18 186910289.65
54. Investment income
In RMB Yuan
Item Amount for this period Amount for prior period
Long-term equity investment losses accounted for by the equity
(180436966.53)78821605.75
method
Investment income from disposal of long-term equity investments 1.00
The investment income of financial asset held for trading during
1406842.072690400.00
its holding period
Dividend income from remaining investments in other equity
180656814.04144222128.67
instruments
Gains from the remeasurement of the remaining equity at fair
2128305938.85
value after the loss of control
Income generated from business combinations not under the same
5021482128.74
control
Total 5023108819.32 2354040073.27
55. Fair value change
In RMB Yuan
Source of income from changes in fair value Amount for this period Amount for prior period
Financial assets held for trading 14575284.30 26136888.77
Financial liabilities held for trading (37909945.45)
Total (23334661.15) 26136888.77
56. Impairment loss of credit
In RMB Yuan
Item Amount for this period Amount for prior period
Bad debt for account receivable 15463066.50 10913106.06
Bad debt for other receivables 50421.60 （138419.44）
Total 15513488.10 10774686.62
57. Impairment loss on assets
In RMB Yuan
Item Amount for this period Amount for prior period
Impairment of inventory 110345479.11 72131985.60
Impairment of fixed assets 184845379.29 165117956.10
59Impairment of intangible assets 41460645.81 2920133.24
Impairment of contract assets 60622656.78 1657510.52
Total 397274160.99 241827585.46
58. Gain on disposal of assets
In RMB Yuan
Item Amount for this period Amount for prior period
Gain on disposal of fixed-assets 366667730.28 68244082.28
Total 366667730.28 68244082.28
59. Non-operating income
In RMB Yuan
Amount recognized in current
Item Amount for this period Amount for prior period period as non-recurring profit
and loss
Fines penalties and others 93295575.81 54366637.51 93295575.81
Total 93295575.81 54366637.51 93295575.81
60. Non-operating expenses
In RMB Yuan
Amount recognized in current
Item Amount for this period Amount for prior period period as non-recurring profit
and loss
Donation 10600000.00 10600000.00
Vehicle reward 841680.00 1711728.00 841680.00
Fines and penalties 52548.37 1327232.91 52548.37
Others 2004732.65 1831254.32 2004732.65
Total 13498961.02 4870215.23 13498961.02
61. Income tax expense
(1) Table of income tax expense
In RMB Yuan
Item Amount for this period Amount for prior period
Current income tax expense 429737792.88 48946847.14
Deferred income tax expense (253116967.69) (152226972.88)
Total 176620825.19 (103280125.74)
60(2) The relationship between profit before tax and income tax expense
In RMB Yuan
Item Amount for this period
Total profit 7143633825.26
Tax at the applicable tax rate 1071545073.79
Impact of different tax rates of subsidiaries 24441849.80
Adjustments to current income tax of previous period 20812467.28
Non-taxable income (28463044.30)
Usage previous deductible losses 164951569.37
Utilize previous deductible losses (16643751.06)
Profit or loss attributable to joint ventures and associates (723007804.69)
Additional deduction (337015535.00)
Income tax expense 176620825.19
62. Other comprehensive income
Please refer to notes VII 43.
63. Notes to cash flow statement
(1) Items of cash received relating to other operating activities
In RMB Yuan
Item Amount for this period Amount for prior period
Interest income 527001902.34 438428075.90
Government grants 863412085.63 401800087.37
Others 362804407.92 561189492.27
Total 1753218395.89 1401417655.54
(2) Items of cash paid relating to other operating activities
In RMB Yuan
Item Amount for this period Amount for prior period
Selling expense 2429716985.74 1980235740.95
Administrative expense 617746243.11 569553555.35
Research and development expenses 1384809950.23 609764742.34
Others 926324359.78 379019456.72
Total 5358597538.86 3538573495.36
(3) Items of cash received relating to other investing activities
In RMB Yuan
Item Amount for this period Amount for prior period
61Net cash received from business merger 6216944276.29
Total 6216944276.29
(4) Items of cash paid relating to other investing activities
In RMB Yuan
Item Amount for this period Amount for prior period
Cash transferred out from the loss of
815126333.76
control of the subsidiary
Total 815126333.76
(5) Items of cash received relating to other financing activities
In RMB Yuan
Item Amount for this period Amount for prior period
Withdraw for deposit of bill 362339945.61 715239432.26
Total 362339945.61 715239432.26
(6) Items of cash paid relating to other financing activities
In RMB Yuan
Item Amount for this period Amount for prior period
Payment for deposit of bill 377810786.49 669560830.95
Repurchase of restricted stocks 1327927.25
Others 39385976.28 29669861.07
Total 418524690.02 699230692.02
64. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
In RMB Yuan
Supplementary information Amount for this period Amount for prior period
1. Cash flows from operating activities calculated by adjusting the
net profit
Net profit 6967013000.07 5839023367.10
Add: Impairment provision for assets 412787649.09 252602272.08
Depreciation of fixed assets 1492472007.62 1435681140.90
Right-of-use assets depreciation 32246838.71 16605322.98
Depreciation and amortization of investment real estate 113355.78
Amortization of intangible assets 638535490.78 528117679.23
Amortization of long-term deferred expense 1468484.08 1826783.84
Increase in deferred income 65085141.07 (139049041.50)
Disposal income on fixed assets intangible assets and
(366667730.28)(68244082.28)
others
62Income of fair value movement 23334661.15 (26136888.77)
Financial expense 36814471.44 17892411.14
Investment income (5023108819.32) (2354040073.27)
Increase in deferred tax assets (182617869.82) (154489446.55)
Decrease in deferred tax liabilities 1404707710.78 2262473.67
Decrease in inventory (4429633070.54) (244183357.63)
Decrease in operating payables 1025339747.77 1273807337.63
Increase in operating payables 4665879442.66 (722465767.08)
Share-based payments cost 187899000.00 192310900.00
Others 3787202.55 715388.71
Net cash flows from operating activities 6955456713.59 5852236420.20
2．Movement of cash and cash equivalents:
Ending balance of cash 64153666049.54 51032267488.15
Less: beginning balance of cash 52491435047.74 49517916834.99
Increase in cash and cash equivalents 11662231001.80 1514350653.16
(2) Cash and cash equivalents
In RMB Yuan
Item Ending balance Beginning balance
I. Cash
Including: Cash 1886.16 32155.77
Bank deposits that can be
64133735374.2952455913791.28
readily used
Other monetary funds that can
19928789.0935489100.69
be used for payment at any time
II. Ending balance of cash and cash
64153666049.5452491435047.74
equivalents
65. The assets with ownership or right restricted
In RMB Yuan
Item Ending balance Explanation
Cash and cash equivalents 1832280514.67 Acceptance bill deposit
Note receivables 6379455146.47 Pledge for issuing bills payable
Fixed assets 28900540.24 Processing release procedures
Intangible assets 16614436.08 Processing release procedures
Total 8257250637.46
66. Foreign Monetary Item
In RMB Yuan
Item Original Currency Exchange Rate Translated to RMB
Cash
Including: USD 29760695.54 7.2258 215044833.83
GBP 8367752.13 7.8771 65913620.30
63EUR 3968271.98 9.1432 36282704.37
JPY 148663225.00 0.0501 7448027.57
RUB 7733842927.23 0.0834 645002500.13
Accounts receivable
Including: USD 56418.30 7.2258 407667.35
EUR 3523830.00 7.8771 27757561.29
GBP 414688.44 9.1432 3791579.34
Other receivables
Including: USD 1318.04 7.2258 9523.89
EUR 2723874.52 7.8771 21456231.98
GBP 49632.42 9.1432 453799.14
JPY 100000.00 0.0501 5010.00
Accounts Payable
Including: USD 6995.00 7.2258 50544.47
EUR 199529.46 9.1432 1824337.76
GBP 29760695.54 7.2258 215044833.83
Other Payables 8367752.13 7.8771 65913620.30
Including: USD 3968271.98 9.1432 36282704.37
GBP 148663225.00 0.0501 7448027.57
67. Government grants
The government grants accounted by the Group with the net method offset the book value of relevant assets and related costs as follows:
In RMB Yuan
Amount for this period Amount for prior period
Government grants related to assets 62110742.27 132421192.00
Write down: Fixed assets 61413808.31 132421192.00
Intangible assets 696933.96
Government grants related to income 50967519.78 177846131.22
Write down: Operating cost 23614843.48 73489574.95
Operating expenses 6763467.92 964950.11
General and administrative expenses 8254895.38 10761122.82
Research and development expenses 12334313.00 92433583.34
Financial income 196900.00
For other government grants refer to notes V 38 and 53.VIII. The change of consolidation scope
1. Business combination not under the Same Control
（1） Business combinations not under common control that occurred in the current period
The Company originally held 40.66% equity in Deepal Automobile Technology Co. Ltd. (referred as “Deepal Auto”) which can have
a significant impact on it and is accounted for using the equity method. The Company has signed an Equity Transfer Agreement with
Chongqing Changxin Equity Investment Fund Partnership (Limited Partnership) (referred as “Changxin Fund”) and Chongqing
Liangjiang New Area Chengwei Equity Investment Fund Partnership (Limited Partnership) (referred as “Chengwei Fund”)
shareholders of Deep Blue Automobile to acquire 10.34% of the equity of Deepal Auto for cash of RMB 1331.6214 million The
64transaction completed equity delivery procedures on February 1 2023. After the completion of the acquisition the company held a
total of 51.00% equity in Deepal Auto. On the acquisition date the company recognized a profit of RMB 5021482128.74 from the
merger of enterprises not under the same control.From the date of purchase to the end of the current period the operating income of Deepal Auto was RMB 8828401817.81 and the
net loss was RMB 1058521570.86.
(2) Merger costs and goodwill
In RMB Yuan
Consolidation costs Deepal Auto
-- Cash 1331621441.70
-- Fair value of non cash assets ——
--Fair value of debt issued or assumed ——
-- Fair value of equity securities issued ——
-- Fair value of contingent consideration ——
--Fair value of equity held before the purchase date at the
5248006233.55
purchase date
--Other ——
Total consolidated costs 6579627675.25
Minus: Fair value share of identifiable net assets obtained 4780094150.38
The amount of goodwill/merger cost less than the fair value
1799533524.87
share of identifiable net assets obtained
Method for determining the fair value of merger costs: income method
(3) The identifiable assets and liabilities of the purchased party on the purchase date
In RMB Yuan
Deepal Auto
Fair value on purchase date Book value on purchase date
Assets:
inventory 2750696247.99 2668394136.79
fixed assets 446508547.00 434621131.80
intangible assets 10744244703.94 1028260675.89
Total other current assets 14258866595.00 14258866595.00
Total other non current assets 1604398095.47 1605804945.65
Total Assets 29804714189.40 19995947485.13
Liabilities:
Total Current Liabilities 18184591739.10 18184591739.10
Total Non-current Liabilities 816971121.83 821924907.70
Total liabilities 19001562860.93 19006516646.80
Shareholders' (or owners') equity 10803151328.47 989430838.33
Method for determining the fair value of identifiable assets and liabilities: asset based method
(4) Gains or losses arising from remeasuring equity held before the purchase date at fair value
Is there any transaction that achieves business merger through multiple transactions and obtains control during the reporting period
□ Yes √ No
652. Combination under the same control
□ Applicable √ Not Applicable
3. Counter purchase
□ Applicable √ Not Applicable
4. Disposing subsidiary
Whether there is a single disposal of the subsidiary company investment that is the loss of control of the situation
□ Applicable √ Not Applicable
5. Change of consolidation scope due to other reasons
□ Applicable √ Not Applicable
IX. Stake in other entities
1. Rights in subsidiaries
The subsidiaries of the Company are as follows：
Total proportion of
Registered
Main operating shareholders (%)
Company name Registered place Nature of business capital (ten
place
thousand) Direct Indirect
I. The subsidiary formed by establishment or investment
Chongqing Changan International
Chongqing Chongqing Sales 20375.64 100.00 -
Automobile Sales Co. Ltd.Chongqing Changan Vehicle
Networking Technology Co. Chongqing Chongqing Lease 8850.00 100.00 -
Ltd.Chongqing Changan Special
Automobile Sales Co. Ltd Chongqing Chongqing Sales 2000.00 50.00 -
(Note 1)
Chongqing Changan Automobile
Chongqing Chongqing Sales 3000.00 99.00 1.00
Supporting Service Co. Ltd.Chongqing Changan New Energy
Chongqing Chongqing R&D 2900.00 100.00 -
Automobile Co. Ltd.Chongqing Changan Europe
Turin Italy Turin Italy R&D EUR 1738 100.00 -
Design Center Co. Ltd.Changan United Kingdom R&D Nottingham United Nottingham United
R&D GBP 2639 100.00 -
Center Co. Ltd. Kingdom Kingdom
Beijing Changan R&D Center
Beijing Beijing R&D 100.00 100.00 -
Co. Ltd.Changan Japan Designing Center
Habin Habin R&D JYP1000 100.00 -
Co.Ltd
Changan United States R&D
Troy United states Troy United states R&D USD154 100.00 -
Center Co. Ltd.Changan Automobile Russia Co. RUB
Moscow Russia Moscow Russia Sales 100.00 -
Ltd. 220382
Changan Automobile Changan Automobile Changan Automobile
Changan Automobile Investment Investment Investment Investment
23789.00100.00
(Shenzhen) Co. Ltd. (Shenzhen) Co. (Shenzhen) Co. (Shenzhen) Co.Ltd. Ltd. Ltd.Nanjing Changan New Energy
Automobile Sales & Service Nanjing Nanjing Sales 5000.00 100.00 -
Co. Ltd.Chongqing Anyi Automotive Chongqing Chongqing Sales 200.00 100.00 -
66Technology Service Co. Ltd.
Xiamen Changan New Energy
Automobile Sales & Service Xiamen Xiamen Sales 200.00 100.00 -
Co. Ltd.Guangzhou Changan New Energy
Automobile Sales & Service Guangzhou Guangzhou Sales 400.00 100.00 -
Co. Ltd.Chongqing Chehemei Technology
Chongqing Chongqing Sales 1000.00 100.00
Co. Ltd.Chongqing Changan Kaicheng
Automobile Technology Co. Chongqing Chongqing Sales 100000.00 83.64
Ltd.Chongqing Changan Automobile
Chongqing Chongqing R&D 9900.00 100.00
Software Technology Co. Ltd.Chongqing Chehemei Technology
Chongqing Chongqing Sales 4900.00 100.00
Co. Ltd.Chongqing Changan Technology
Chongqing Chongqing R&D 9000.00 100.00
Co. Ltd
II. The subsidiary formed by business combination not under common control
Nanjing Changan Automobile
Nanjing Nanjing Manufacturing 60181.00 84.73 -
Co. Ltd.(Note 2)
Chongqing Lingyao Automobile
Chongqing Chongqing Manufacturing 133764.00 100.00 -
Co. Ltd.Deepal Automobile Technology
Chongqing Chongqing Manufacturing 32810.83 51.00
Co. Ltd
III. The subsidiary formed by business combination under common control
Hefei Changan Automobile
Hefei Hefei Manufacturing 227500.00 100.00 -
Co.Ltd.Note 1: The remaining shareholders of Chongqing Changan Special Automobile Co. Ltd. made an agreement with the Company that
the remaining shareholders are to vote in accordance with the Company. The main financial and operating policies have been controlled
by the Company so it is included in the scope of consolidated financial statements.Note 2: The Company owns 91.53% of voting shares of Nanjing Changan Automobile Co. Ltd. the difference between proportion of
voting shares and proportion of shares held is due to the voting right consigned from minority shareholders.As at June 30 2023 the Group has no subsidiaries with important minority interests.
2. Transactions result in change of holding share proportion but no effect in control of subsidiaries
□ Applicable √ Not applicable
3. Stakes in joint ventures and associates
(1) Significant joint ventures or associates
Main Registered Total proportion of
Registered Accounting
Company name operating Nature of business capital (ten shareholders (%)
place treatment
place thousand) Direct Indirect
I. Joint ventures
Changan Ford Manufacture and sale of
Chongqing Chongqing USD24100 50.00 - Equity
Automobile Co. Ltd. automobiles and components
Changan Mazda Manufacture and sale of
Nanjing Nanjing USD11681 47.50 - Equity
Automobile Co. Ltd. automobiles and components
Changan Mazda
Manufacture and sale of
Engine Co. Ltd. Nanjing Nanjing USD20996 50.00 - Equity
automobiles and components
(Note 1)
67Jiangling Investment Investment Management Industrial
Nanchang Nanchang 100000.00 50.00 - Equity
Co. Ltd. Investment and Asset Management
II. Associates
Chongqing Changan Develop product and sale of
Kuayue Automobile Chongqing Chongqing automobile and components; import 6533.00 34.30 - Equity
Co. Ltd. and export goods.Sale of Changan Kuayue’ s
Chongqing Changan
automobile and agricultural cars and
Kuayue Automobile Chongqing Chongqing 300.00 34.30 - Equity
components. Technical advisory
Sales Co. Ltd.services for automobile
Beijing Fang’an Taxi
Beijing Beijing For the car loan business 2697.96 22.24 - Equity
Co. Ltd.Provide car loan; provide vehicle
loans and operating equipment loans
Chongqing Auto to car dealers including the
Chongqing Chongqing 476843.10 28.66 - Equity
Finance Co. ltd. construction loans of exhibition
hallspare parts loans and
maintenance equipment loans etc.Car sales leasing software
Nanjing Chelai Travel
Nanjing Nanjing technology development technical 10000.00 10.00 - Equity
Technology Co. Ltd.services
Technology development
Hunan Guoxin
consulting technical services
Semiconductor Zhuzhou Zhuzhou 50000.00 25.00 - Equity
technology transfer in the field of
Technology Co. Ltd.power semiconductors
Beijing Wutong Technology development technical
Chelian Technology Beijing Beijing consulting technical services 56055.88 - 41.30 Equity
Co. Ltd. technology transfer
Anhe (Chongqing)
Equity Investment
Chongqing Chongqing Equity investment management 1260.00 - 44.44 Equity
Fund Management
Co. Ltd.Hangzhou Chelizi
Intelligent Hangzhou Hangzhou Car travel service 630.00 - 20.00 Equity
Technology Co. Ltd.Pakistan Master Lahore Lahore Manufacture and sale of
PKR75000 30.00 Equity
Motors Co. Ltd. Pakistan Pakistan automobiles and components
Jiangling Holding Manufacture and sale of
Nanchang Nanchang 200000.00 25.00 - Equity
Co. Ltd. automobiles and components
Nanjing Leading
Equity investment and related
Equity Investment Nanjing Nanjing 976000.00 16.39 - Equity
services
Partnership
Nanjing Leading
Equity Investment Private equity investment fund
Nanjing Nanjing 1000.00 15.00 - Equity
Management Co. management and related services
Ltd.Zhongqi Chuangzhi 1600000.0
Technology Co. Ltd. Nanjing Nanjing R&D 3.125 - Equity 0
Chongqing Changxin
Zhiqi Private Equity
Investment Fund Chongqing Chongqing Equity Investment 50200.00 49.80 - Equity
Partnership (Limited
Partnership)
AVATR. Co. Ltd Nanjing Nanjing R&D 164466.00 40.9939 Equity
Chongqing Changan
Innovation Private
Equity Investment
Chongqing Chongqing Private equity investment funds 65100.00 46.08 Equity
Fund Partnership
Enterprise (Limited
Partnership)
Development production sales and
provision of related after-sales and
technical consulting services for
Time FAW Power
Ningde Ningde lithium-ion batteries power 200000.00 - 10.00 Equity
Battery Co. Ltd
batteries ultra large capacity energy
storage batteries and battery
systems
Western Car Network Chongqing Chongqing Internet information services; 10000.00 - 5.00 Equity
68(Chongqing) Co. Ltd Inspection and testing services
Anhe Chongqing
Dingfeng Automobile
Contract Private Chongqing Chongqing Private equity investment funds 15436.00 40.00 - Equity
Equity Investment
Fund
Chongqing
Changxian Intelligent Chongqing Chongqing Software development and sales 25500.00 45.00 - Equity
Technology Co. Ltd
(2) Key financial information of significant joint ventures
Changan Ford Automobile Co. Ltd. is the important joint venture to the Group and makes great influence in the share of profit and
loss in joint venture and associates the Group adopts equity method to deal with the investment to it.The table below shows the financial status of Changan Ford Automobile Co. Ltd. and all the information has been adjusted to eliminate
the difference of the accounting policies.In RMB Yuan
Beginning balance/Amount for prior
Ending balance/Amount for this period
period
Current assets 11465596213.84 15159099717.00
Including: cash and cash
4625531681.386818327323.00
equivalent
Non-current assets 20108880589.29 20859166829.00
31574476803.1336018266546.00
Total assets 19534096219.77 26771621602.00
Non-current liabilities 9705223801.71 7716321374.00
Total liabilities 29239320021.48 34487942976.00
Minority interests
Equity attributable to owners 2335156781.65 1530323570.00
Net asset owned according to share
1167578390.83765161785.00
proportion
Adjustment （55499140.48） （52702433.15）
Book value of investment 1112079250.35 712459351.85
Operating income 21760633483.51 23377802470.94
Financial expenses 131187660.08 228432281.92
Income tax expense 592223920.46 158336533.41
Net profit 799233915.94 1045203295.40
(3) The financial status of the less important joint ventures and associates
In RMB Yuan
Ending balance Beginning balance
Joint venture:
Total book value of the investment 4118225763.64 4067976150.23
Total amount calculated by shareholding
proportion
--Net profit 50249613.41 340098900.17
--Other comprehensive income
--Total comprehensive income 50249613.41 340098900.17
69Associates:
Total book value of the investment 8558605302.28 9626226954.20
Total amount calculated by shareholding
proportion
--Net profit (630303537.91) (784138202.60)
--Other comprehensive income 146228.18
--Total comprehensive income (630303537.91) (783991974.42)
(4) Excessive losses incurred by joint ventures or associates
As at 30 June 2023 since the Group has no obligation to undertake the extra loss of Chongqing Changan Kuayue Automobile Sales
Co. Ltd Jiangling Holdings Co. Ltd. When extra loss occurs the Group writes down the long-term investment to zero without
recognizing the extra loss.X. Risks associated with financial instruments
1. Classification of financial instruments
As at balance sheet day the book values of financial instruments are as follows:
Financial assets
In RMB Yuan
Financial assets Financial assets
measured at fair value measured at fair value
Financial assets
and whose changes and whose changes are
2023.6.30 measured at amortized Total
are recorded in the recorded in Other
cost
current profit and loss comprehensive income
(standard required) (specified)
Cash 65985946564.21 65985946564.21
Financial assets for
262239446.37262239446.37
trading
Notes receivable 33963917823.31 33963917823.31
Accounts receivable 2477017799.35 2477017799.35
Other receivables 924635940.20 924635940.20
Other current assets 14765170.48 14765170.48
Investment in other
489950000.00489950000.00
equity instrument
Total 262239446.37 103366283297.55 489950000.00 104118472743.92
In RMB Yuan
Financial assets
Financial assets measured
measured at fair value
Financial assets at fair value and whose
and whose changes are
2022.12.31 measured at amortized changes are recorded in Total
recorded in the current
cost Other comprehensive
profit and loss
income (specified)
(standard required)
Cash 53530183827.34 53530183827.34
Financial assets for
280315571.09280315571.09
trading
Notes receivable 35849660652.96 35849660652.96
Accounts receivable 3068414415.29 3068414415.29
70Other receivables 861671518.62 861671518.62
Other current assets 745970.48 745970.48
Investment in other
489950000.00489950000.00
equity instrument
Total 280315571.09 93310676384.69 489950000.00 94080941955.78
Financial liabilities
In RMB Yuan
2023.6.302022.12.31
Short-term loans 50000000.00 29000000.00
Trading financial liabilities 37813520.40 -
Notes payable 33712072409.02 22072793864.83
Accounts payable 30465634254.25 29449664138.75
Other payables 8286560402.79 4749541830.49
Non-current liabilities due within 1 year 69596855.90 885723901.34
Long-term loan 76000000.00 36000000.00
Lease liabilities 120870028.21 60205397.98
Long-term payables 408939511.34
Bonds payable 999558490.56 999528301.88
Total 73818105961.13 58691396946.61
2. Transfer of financial assets
The transferred financial assets that entirely derecognized but continuing involved
As at June 30 2023 the book value of the bank acceptance bill that the Group has endorsed to the supplier to settle accounts payable
is RMB 5501662863.68 (December 31 2022: RMB 5294424281.62). On June 30 2023 its maturity date is 1 to 6 months.According to the relevant provisions of the "Negotiable Instruments Law" if the accepting bank refuses to pay its holder has the right
to recourse against the Group ("continued involvement "). The Group believes that the Group has transferred almost all of its risks and
rewards and therefore terminates the confirmation of the book value of the settlement accounts payable and the related accounts
payable. The maximum loss and undiscounted cash flow of continuing involvement and repurchase are equal to its book value. The
Group believes that continued involvement in fair value is not significant.In the first half of 2023 the Group did not recognize gains or losses on its transfer date. The Group shall continue to be involved in the
proceeds or expenses of the year in which the recognition of financial assets has been terminated and the cumulative recognition thereof.Endorsements occur roughly and evenly during the year.
3. Risks of financial instruments
The Group faces risks of various financial instruments in its daily activities mainly including credit risk liquidity risk and market risk
(including exchange rate risk interest rate risk and price risk). The main financial instruments of the Group include monetary funds
equity investments loans bills receivable accounts receivable bills payable accounts payable lease liabilities bonds payable etc.The risks associated with these financial instruments and the risk management strategies adopted by the Group to reduce these risks
are described below.The Group has formulated risk management policies to identify and analyze the risks faced by the Group set appropriate risk acceptance
levels and design corresponding internal control procedures to monitor the Group's risk levels. The Group will periodically re-examine
these risk management policies and related internal control systems to adapt to changes in market conditions or the Group ’s operating
activities. The internal audit department also regularly and irregularly checks whether the implementation of the internal control system
complies with the risk management policy.
71Credit risk
The Group only deals with recognized and reputable customers. In accordance with the Group's policy a credit review is required for
all customers who require credit transactions. In addition the Group continuously monitors the balance of accounts receivable to ensure
that the Group does not face significant bad debt risk. For transactions that are not settled with the relevant business unit's bookkeeping
standard currency the Group does not provide credit transaction conditions unless specifically approved by the Group's credit control
department.Since the counterparties of monetary funds and bank acceptance receivables are reputable banks with higher credit ratings these
financial instruments have lower credit risk.Other financial assets of the Group include commercial acceptance bills receivable accounts receivable other receivables etc. The
credit risk of these financial assets and contract assets comes from counterparty default and the maximum risk exposure is equal to the
carrying amount of these instruments. In 2022 there was no credit risk arising from financial guarantee.Since the Group only trades with approved and reputable customers there is no need for collateral. Credit risk is centralized and
managed according to customers. As at the balance sheet date the Group has a specific concentration of credit risks. 33.67% of the
Group's accounts receivable (December 31 2022: 56.83%) originated from the top five customers with the balance of accounts
receivable. The Group does not hold any collateral or other credit enhancements for the balance of accounts receivable.Judgment criteria for significant increase in credit risk
The Group evaluates on each balance sheet date whether the credit risk of the relevant financial instruments has increased significantly
since the initial recognition. In determining whether credit risk has increased significantly since the initial recognition the Group
considers that reasonable and evidence-based information can be obtained without unnecessary additional cost or effort including
qualitative and quantitative analysis based on the Group's historical data external credit risk ratings and forward-looking information.Based on a single financial instrument or a portfolio of financial instruments with similar credit risk characteristics the Group compares
the default risk of financial instruments on the balance sheet date with the default risk on the initial confirmation date to determine the
change of default risk of financial instruments during their expected duration.When one or more of the following quantitative or qualitative criteria are triggered the Group believes that the credit risk of financial
instruments has significantly increased:
* the quantitative criterion is that the default probability of the remaining duration on the report date increases by more than a certain
percentage compared with the initial confirmation;
* qualitative criteria mainly include material adverse changes in the operating or financial situation of the debtor early warning
customer list etc.;
Definition of assets that have incurred credit impairment
In order to determine whether credit impairment occurs the Group adopts a definition standard consistent with the internal credit risk
management objectives for relevant financial instruments and considers both quantitative and qualitative indicators. The Group mainly
takes the following factors into consideration when evaluating whether the debtor has credit impairment:
* significant financial difficulties of the issuer or debtor;
* debtor breaches the contract such as default or overdue payment of interest or principal;
* the creditor gives the debtor concessions that the debtor would not have made under any other circumstances for economic or
contractual reasons related to the debtor's financial difficulties;
* the debtor is likely to go bankrupt or undergo other financial restructuring;
* the financial difficulties of the issuer or debtor result in the disappearance of an active market for the financial asset;
* purchase or source a financial asset at a substantial discount that reflects the fact that a credit loss has occurred.The credit impairment of financial assets may be caused by the joint action of multiple events but not by events that can be identified
separately.A parameter for measuring expected credit losses
According to whether the credit risk has significantly increased and whether the credit impairment has occurred the Group measures
the impairment provision for different assets with the expected credit loss of 12 months or the whole duration respectively. The key
parameters of expected credit loss measurement include default probability default loss rate and default risk exposure. The Group takes
into account the quantitative analysis and forward-looking information of historical statistical data (such as counterparty rating
72guarantee method and types of collateral repayment method etc.) to establish default probability default loss rate and default risk
exposure models.The relevant definition is as follows:
* probability of default is the probability that the debtor will not be able to meet its repayment obligations in the next 12 months or
throughout the remaining period. The default probability of the Group is adjusted based on the results of the historical credit loss model
and forward-looking information is added to reflect the default probability of the debtor in the current macroeconomic environment.* the default loss rate refers to the Group's expectation of the extent of losses from default risk exposure. Default loss rates also vary
depending on the type of counterparty the type and priority of recourse and the collateral. The default loss rate is the percentage of
the risk exposure loss at the time of default calculated on the basis of the next 12 months or the whole duration;
* default exposure is the amount that should be paid to the Group at the time of default over the next 12 months or throughout the
remaining duration.The assessment of a significant increase in credit risk and the calculation of expected credit losses involve forward-looking information.Through the analysis of historical data the Group identifies the key economic indicators that affect the credit risks and expected credit
losses of each business type.Liquidity risk
The Group adopts cycle liquidity planning instrument to manage capital shortage risks. The instrument takes into consideration the
maturity date of financial instruments plus estimated cash flow from the Group’s operations.The Group’s objective is to maintain a balance between continuity of funding and flexibility and sufficient cash to support operating
capital through financing functions by the use of bank loans debentures etc.Market risk
Interest rate risk
The Group’s revenue and operating cash flows are seldomly influenced by the interest fluctuation. As at 30 June 2023 the Group’s
loans and bonds are bearing fixed interest rate and the Group is not hedging the risk currently.Foreign currency risk
The Group’s exposures to fluctuation in foreign currency exchange rate mainly arise from operating activities where transactions are
settled in currencies other than the units' functional currency and net investment to offshore subsidiary.In 30 June 2022 the Group only has limited transactional currency exposures of its total revenue that is valued in currencies other than
the units' functional currency. The estimated influence of fluctuation of foreign currency is insignificant; therefore the Group hasn’t
carried out large amount of hedging to reduce the risk.Equity instruments investment price risk
The price risk of equity instrument investment refers to the risk that the fair value of equity securities is reduced due to changes in the
level of stock indexes and changes in the value of individual securities. On June 30 2023 the Group's listed equity instrument
investment (Note VII 2) was listed on the Shanghai Stock Exchange and measured on the basis of market quotes on the balance sheet
date. The following table illustrates the sensitivity of the Group’s net profit and loss to every 5% change in the fair value of equity
instrument investments (based on the book value at the balance sheet date) under the assumption that all other variables remain constant.In RMB Yuan
Carrying amount of equity Change in fair Increase/(decrea
investments value se) in equity
2023.6.30
Shanghai- Equity investment included in financial
assets at 98889450.00 5% 4202801.63
fair value through profit or loss
Shanghai- Equity investment included in financial
98889450.00(5%)(4202801.63)
assets at
73fair value through profit or loss
Shenzhen- Equity investment included in financial
assets at 163349996.37 5% 6942374.85
fair value through profit or loss
Shenzhen- Equity investment included in financial
assets at 163349996.37 (5%) (6942374.85)
fair value through profit or loss
2022.12.31
Shanghai- Equity investment included in financial
assets at 126112500.00 5% 5359781.25
fair value through profit or loss
Shanghai- Equity investment included in financial
assets at 126112500.00 (5%) (5359781.25)
fair value through profit or loss
Shenzhen- Equity investment included in financial
assets at 125052628.80 5% 5314736.72
fair value through profit or loss
Shenzhen- Equity investment included in financial
assets at 125052628.80 (5%) (5314736.72)
fair value through profit or loss
4. Capital management
The main goal of the Group’s capital management is to ensure that the ability of continuous operation and maintain healthy capital
ratios in order to support business development and to maximize shareholder value.The Group manages the capital structure and adjusts it with the change of economy trend and the risk feature of the assets. To maintain
or adjust the capital structure the Group can rectify dividend distribution return capital to shareholders or issue new shares. The Group
is not subject to external mandatory capital requirements constraints. The goal principle and procedure of capital management stay the
same in 2022 and 30 June 2023.The Group’s leverage ratio on the balance sheet date is as follows:
June 30 2023 December 31 2022
Leverage ratio 58.90% 56.90%
XI. Disclosure of fair value
1. Assets and liabilities measured at fair value
June 30 2023
In RMB Yuan
Input measured at fair value
Quoted price in Important and Important but
active market observable input unobservable input Total
(The first level) (The second level) (The third level)
Trading financial assets 262239446.37 262239446.37
Equity instrument investment 262239446.37 262239446.37
Other equity instrument investments 489950000.00 489950000.00
Trading financial liabilities 37813520.40 37813520.40
Total 262239446.37 37813520.40 489950000.00 790002966.77
74December 31 2022
In RMB Yuan
Input measured at fair value
Quoted price in Important and Important but
active market observable input unobservable input Total
(The first level) (The second level) (The third level)
Trading financial assets 126112500.00 154203071.09 280315571.09
Equity instrument investment 126112500.00 125052628.80 251165128.80
Derivative financial assets 29150442.29 29150442.29
Other equity instruments 489950000.00 489950000.00
Total 126112500.00 154203071.09 489950000.00 770265571.09
2. Fair value estimation
Management has assessed and concluded accounts including cash notes receivable accounts receivable other receivables other
payables notes payable and accounts payable and so on whose fair value equals to book value because of its short term to overdue.Financial assets and financial liabilities are measured at the amount that an asset could be exchanged for or by which a liability could
be incurred or settled by knowledge willing parties in a current arm’s-length transaction other than liquidation or unwilling sales.Methods and hypothesis followed are used for determining fair value.Long-term loans and long-term payables use discounted cash flow method to determine its fair value with discount rate in accordance
with market return of other financial instruments based on similar terms credit risks and remaining terms. As at 30 June 2023 the
default risk of long-term loans and short-term loans were considered immaterial.The equity instruments listed by the Group are ordinary shares with unrestricted sale conditions and their fair value is determined at
the quoted market price. The Group's unlisted equity instrument investments are estimated at fair value using the market method based
on unobservable market prices or interest rate assumptions. The Group mainly refers to the evaluation reports of independent qualified
professional appraisers. The Group believes that the fair value and its changes estimated by valuation techniques are reasonable and
are also the most appropriate value on the balance sheet date.The Group entered into a derivative financial instrument contract with the bank. The Group's derivative financial instruments are
foreign exchange forward contracts which are measured using valuation techniques similar to the present value method. The observable
input value of the market covered by the model is the forward exchange rate. The book value of a foreign exchange forward contract
is the same as the fair value.
3. Unobservable input
The following is an overview of the important unobservable input value of the third level fair value measurement:
Fair value Valuation techniques Non-observable input value
Investment in other equity instrument
2023.6.30 489950000.00 Market approach Comparable transaction value multiplier
2022.12.31 489950000.00 Market approach Comparable transaction value multiplier
XII. Related party relationships and transactions
1. Parent company of the Company
75Proportion of Proportion of
Place of
Parent company Nature of the business Registered capital shares in the voting rights in the
registration
Company (%) company (%)
China Changan Manufacture and sale of
Automobile Group Beijing automobiles engine and 6092273400.00 20.80% 20.80%
Co Ltd. components
The Final controlling party is China South Industries Group corporation
2. Subsidiaries
See subsidiaries in IX（1）. Stake in other entities.
3. Joint ventures and associates
See Joint ventures and associates in IX（3） Stake in other entities.
4. Other related parties
Related parties Relationship
Chongqing Changan Intelligent Industrial Technology Service Co. Ltd. Controlled by the same ultimate holding company
Chongqing Changan Construction Co. Ltd. Controlled by the same ultimate holding company
Chongqing Changan industry (Group) Co. Ltd Controlled by the same ultimate holding company
Chongqing Changan Real Estate Development Co. Ltd Controlled by the same ultimate holding company
Chongqing Yihong Engineering Plastic Products Co. Ltd. Controlled by the same ultimate holding company
Chongqing Xiyi Automobile Connecting Rod Co. Ltd. Controlled by the same ultimate holding company
Chongqing Wanyou Zunda Automobile Sales & Service Co. Ltd. Controlled by the same ultimate holding company
Chongqing Wanyou Economic Development Co. Ltd. Controlled by the same ultimate holding company
Chongqing Wanyou Xingjian Auto Sales & Service Co. Ltd. Controlled by the same ultimate holding company
Chongqing Wanyou Ducheng Auto Sales Service Co. Ltd. Controlled by the same ultimate holding company
Chongqing Changan Property Management Co. Ltd. Controlled by the same ultimate holding company
Chongqing Qingshan Transmission Sales Co. Ltd. Controlled by the same ultimate holding company
Chongqing Shangfang Automobile Fittings Co. Ltd. Controlled by the same ultimate holding company
Chongqing Qingshan Industrial Co. Ltd Controlled by the same ultimate holding company
Chongqing Construction Tongda Industrial Co. Ltd. Controlled by the same ultimate holding company
Chongqing Jianshe Mechanical & Electrical Equipment Co. Ltd. Controlled by the same ultimate holding company
Chongqing Changrong Machinery Co. Ltd. Controlled by the same ultimate holding company
Chongqing Jianshe Automobile Air-conditioner Co. Ltd. Controlled by the same ultimate holding company
Chongqing Jialing Yimin Special Equipment Co. Ltd. Controlled by the same ultimate holding company
Chongqing Fuji Supply Chain Management Co. Ltd Controlled by the same ultimate holding company
Chongqing Dajiang Jiexin Forging Co. Ltd. Controlled by the same ultimate holding company
Chongqing Anfu Automobile Co. Ltd. Controlled by the same ultimate holding company
China Changan Automobile Group Tianjin Sales Co. Ltd Controlled by the same ultimate holding company
China Changan Automobile Group Hefei Investment Co. Ltd Controlled by the same ultimate holding company
China South Industries Group Commercial Factoring Co. Ltd. Controlled by the same ultimate holding company
China Ordnance Equipment Group Finance Leasing Co. Ltd Controlled by the same ultimate holding company
Yunnan Xiyi Industries Co. Ltd. Controlled by the same ultimate holding company
Yunnan Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Yaan Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
76Related parties Relationship
Southwest Ordnance Industry Chongqing Environmental Protection
Controlled by the same ultimate holding company
Research Institute Co. Ltd.Wanyou Automobile Investment Co. Ltd Controlled by the same ultimate holding company
Sichuan Ningjiang Shanchuan Machinery Co. Ltd Controlled by the same ultimate holding company
Sichuan Jianan Industrial Co. Ltd Controlled by the same ultimate holding company
Panzhihua Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Luzhou Wanyou Automobile Service Co. Ltd Controlled by the same ultimate holding company
Longchang Shanchuan Precision Welded Tube Co. Ltd. Controlled by the same ultimate holding company
Jiangsu Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Hubei Xiaogan Huazhong Car Lamp Co. Ltd Controlled by the same ultimate holding company
Hubei Huazhong Marelli Automotive Lighting Co. Ltd Controlled by the same ultimate holding company
Harbin Dongan Automotive Engine Manufacturing Co. Ltd Controlled by the same ultimate holding company
Harbin Dongan Automotive Power Co. Ltd Controlled by the same ultimate holding company
Guizhou Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Dali Wanfu Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Chengdu Wanyou Xiangyu Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Chengdu Wanyou Automobile Trading Service Co. Ltd Controlled by the same ultimate holding company
Chengdu Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Chengdu Wanyou Trading Co. Ltd Controlled by the same ultimate holding company
Chengdu Wanyou Filter Co. Ltd Controlled by the same ultimate holding company
Chengdu Lingchuan Automotive Fuel Tank Co. Ltd Controlled by the same ultimate holding company
Chengdu Jialing Huaxi Optical Precision Machinery Co. Ltd Controlled by the same ultimate holding company
Chengdu Huachuan Electric Equipment Co. Ltd Controlled by the same ultimate holding company
Ordnance Equipment Group Finance Co. Ltd Controlled by the same ultimate holding company
Beijing Beiji Electromechanical Industry Co. Ltd Controlled by the same ultimate holding company
Bazhong Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Anhui Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Chongqing Changan Minsheng Logistics Co. Ltd. Participated by the Ultimate holding company
Chongqing Nexteer Steering System Co.Ltd. Participated by the Ultimate holding company
Chongqing Lingchuan Auto Parts Manufacturing Technology Co. Ltd. Participated by the Ultimate holding company
Chongqing Hanon Jianshe Automotive Thermal Systems Co. Ltd. Participated by the Ultimate holding company
Chongqing Dajiang Yuqiang Plastic Co. Ltd. Participated by the Ultimate holding company
Dajiang Yapp Automotive Systems Co. Ltd. Participated by the Ultimate holding company
Chongqing Dajiang Guoli Precision Machinery Manufacturing Co. Ltd. Participated by the Ultimate holding company
Chongqing Dajiang Tongyang Plastics Co. Ltd. Participated by the Ultimate holding company
China Ordnance Equipment Group Human Resources Development
Participated by the Ultimate holding company
Center
China Ordnance News Participated by the Ultimate holding company
Changan Laisi (Chongqing) robot intelligent equipment Co. Ltd Participated by the Ultimate holding company
Tiannak Lingchuan (Chongqing) exhaust system Co. Ltd Participated by the Ultimate holding company
South Inter Air-conditioner Co.Ltd. Participated by the Ultimate holding company
South Tianhe Chassis System Co. Ltd. Participated by the Ultimate holding company
CSM Faurecia Automotive Parts Co. Ltd. Participated by the Ultimate holding company
GKN HUAYU Driveline Systems (Chongqing) Co. Ltd Participated by the Ultimate holding company
United Automotive Electronics (Chongqing) Co. Ltd Participated by the Ultimate holding company
Lear Changan (Chongqing) Automotive System Co. Ltd Participated by the Ultimate holding company
77Related parties Relationship
Hunan Tianyan Machinery Co. Ltd Participated by the Ultimate holding company
Hafei Automobile Co. Ltd Participated by the Ultimate holding company
Chengdu Zhongzi Guangming Catalytic Technology Co. Ltd Participated by the Ultimate holding company
Chengdu Ningjiang Zhaohe Automotive Parts Co. Ltd Participated by the Ultimate holding company
Beijing Zhongbing Insurance Brokerage Co. Ltd. Participated by the Ultimate holding company
Ald Fortune Auto Leasing & Renting (Shanghai) Co. Ltd. Companies in which the company participates
Nanjing LingHang Technology Co. Ltd. Companies in which the company participates
Nanjing Chelai Travel Technology Co. Ltd Companies in which the company participates
Jiangling Automobile Co. Ltd Companies in which the company participates
Beijing Wutong Chelian Technology Co. Ltd. Companies in which the company participates
5. Related-party transaction
(1) Transactions of goods and services
Goods purchased and services received
In RMB Yuan
Related parties Nature of Current amount Approved Whether it Prior-period
the transaction exceeds the amount
transaction amount transaction
amount
Changan Mazda Automobile Co. Accept
1270637.36 - Yes -
Ltd labor
Procurement
Jiangling Holdings Co. Ltd. 514070488.27 8778224627.96 No 585345.00
of parts
Nanjing Chelai Travel Technology Accept
15222.66 114017.07 No -
Co. Ltd labor
Purchasing
parts and
Deepal Automobile Technology
accepting 666172597.14 1510689568.63 No 716672719.94
Co. Ltd
labor
services
Purchasing
parts and
Beijing Wutong Chelian
accepting 32740169.65 194226725.34 No 67885814.09
Technology Co. Ltd.labor
services
Anhui Wanyou Automobile Sales Accept
2622805.44 2514824.71 Yes 2284126.26
Service Co. Ltd. labor
Chengdu Huachuan Electric Procurement
265398399.77 832589256.66 No 201518601.15
Equipment Co. Ltd. of parts
Chengdu Ningjiang Zhaohe
Procurement
Automobile Components Co. 303637.08 9343729.88 No 7248464.81
of parts
Ltd.Chengdu Wanyou Trading Co. Accept
44034.79 85826.66 No 22527.44
Ltd labor
Chengdu Wanyou Automobile Accept
826173.26 119774.35 Yes 368483.54
Sales and Service Co. Ltd labor
78Related parties Nature of Current amount Approved Whether it Prior-period
the transaction exceeds the amount
transaction amount transaction
amount
Chengdu Wanyou Auto Trade Accept
3136714.77 7373745.99 No 5421148.49
Service Co. Ltd. labor
Chengdu Wanyou Xiangyu Auto Accept
8781051.72 3797209.13 Yes 6376107.26
Sales and Service Co. Ltd. labor
Guizhou Wanyou Auto Sales and Accept
6496124.73 7491378.51 No 6881968.71
Service Co. Ltd. labor
Purchasing
parts and
Harbin Dongan Auto Engine Co.accepting 201477650.66 600127415.35 No 263267944.07
Ltd.labor
services
Harbin Dongan Automotive Procurement
286555317.12 697042854.91 No 653853009.25
Engine Manufacturing Co. Ltd. of parts
Hunan Tianyan Machinery Co. Procurement
59035655.33 8302082.10 Yes 2617013.13
Ltd of parts
Jiangsu Wanyou Automobile Accept
3530670.99 4080339.68 No 2015418.16
Sales Service Co. Ltd. labor
Luzhou Wanyou Automobile Accept
208109.30 569722.83 No 307508.81
Service Co. Ltd. labor
CSM Faurecia Automotive Parts Procurement
293507822.63 1597097938.30 No 252639803.32
Co. Ltd. of parts
Southern Tianhe Chassis Systems Procurement
547250941.45 1899968522.28 No 459025340.96
Co. Ltd of parts
South Inter Air-conditioner Procurement
324599906.01 1348876494.10 No 202161276.20
Co.Ltd. of parts
Panzhihua Wanyou Auto Sales & Accept
148176.37 661829.31 No 257324.00
Service Co. Ltd. labor
Purchasing
parts and
Sichuan Jian'an Industrial Co. Ltd accepting 569748423.73 1696226350.55 No 534985354.14
labor
services
Sichuan Ningjiang Shanchuan Procurement
250225299.36 630594357.18 No 159762835.80
Machinery Co Ltd. of parts
Ya'an Wanyou Auto Sales and Accept
1014389.55 1056331.27 No 846681.30
Service Co. Ltd. labor
Yunnan Wanyou Auto Sales and Accept
10507634.88 16222898.50 No 13728699.67
Service Co. Ltd. labor
China Changan Automobile Accept
2515157.69 812228.08 Yes 692160.09
Group Tianjin Sales Co. Ltd. labor
Chongqing Qingshan Industrial Procurement
4247550166.24 No 3637088928.81
Co. Ltd of parts 11215297928.42
Chongqing Wanyou Ducheng Accept
973308.83 2870066.24 No 2584670.89
Auto Sales Service Co. Ltd. labor
Chongqing Wanyou Xingjian Accept
810225.03 555113.26 Yes 716753.30
Auto Sales & Service Co. Ltd. labor
Purchasing
parts and
Chongqing Wanyou Economic
accepting 14785490.80 59570534.71 No 40779608.17
Development Co. Ltd.labor
services
79Related parties Nature of Current amount Approved Whether it Prior-period
the transaction exceeds the amount
transaction amount transaction
amount
Chongqing Wanyou Zunda
Procurement
Automobile Sales & Service Co. 38252.00 - Yes 114.95
of parts
Ltd.Chongqing Changan Minsheng Accept
2685849489.33 8082612973.07 No 1760470945.02
Logistics Co. Ltd. labor
Beijing Beiji Mechanical and Procurement
55471.89 60001.39 No 18410.18
Electrical Industry Co. Ltd. of parts
Chengdu Zhongzi Guangming Procurement
277552589.96 51855210.76 Yes -
Catalytic Technology Co. Ltd of parts
Chengdu Jialing Huaxi Optical & Procurement
501828.63 4336389.65 No 1538164.71
Precision Machinery Co. Ltd. of parts
Chengdu Lingchuan Vehicle Oil Procurement
22896846.34 53576855.25 No 18148367.15
Tank Co. Ltd. of parts
Purchasing
parts and
Chengdu Wanyou Filter Co. Ltd. accepting 60828232.32 256871985.48 No 76561417.56
labor
services
Hubei Huazhong Marelli Procurement
425498458.56 3093309593.37 No 473880131.14
Automobile Lighting Co. Ltd. of parts
Hubei Xiaogan Huazhong Car Procurement
62177934.16 228392134.24 No 51876744.41
Lamp Co. Ltd of parts
Procurement
Yunnan Xiyi Industries Co. Ltd. 65386027.01 174256873.80 No 53637731.83
of parts
China Ordnance Equipment
Accept
Group Human Resources 5377.35 - Yes -
labor
Development Center
China Ordnance Equipment
Accept
Group Commercial Factoring Co. 76040.43 123178.62 No -
labor
Ltd
Chongqing Dajiang Jiexin Procurement
916320.42 4355976.69 No 1845245.27
Forging Co. Ltd of parts
Chongqing Dajiang Yuqiang Procurement
196038.83 138773.63 Yes 344226.01
Plastic Co. Ltd. of parts
Chongqing Jianshe Automobile Procurement
30929139.50 110627918.48 No 38555506.77
Air-conditioner Co. Ltd. of parts
Chongqing Construction Tongda Procurement
27756255.26 70281670.64 No 16331004.84
Industrial Co. Ltd. of parts
Chongqing Nexteer Steering Procurement
482284076.02 1872399642.19 No 400416384.73
System Co.Ltd. of parts
Chongqing Shangfang Procurement
56847951.59 182911907.96 No 52075600.58
Automobile Fittings Co. Ltd. of parts
Chongqing Qingshan Procurement
29495148.15 47903411.54 No 18687536.60
Transmission Sales Co. Ltd. of parts
Chongqing Yihong Engineering Procurement
35614480.95 71088788.77 No 14903524.92
Plastic Products Co. Ltd. of parts
Chongqing Changan industry Accept
6981144.30 16940554.44 No 6341330.87
(Group) Co. Ltd labor
Chongqing Changan Property Accept
5556152.45 11211104.18 No 1928927.46
Management Co. Ltd. labor
Beijing Zhongbing Insurance Procurement
179456.11 284148.54 No 45762.00
Brokerage Co. Ltd. of parts
80Related parties Nature of Current amount Approved Whether it Prior-period
the transaction exceeds the amount
transaction amount transaction
amount
Lear Changan (Chongqing) Procurement
186552716.15 671258752.46 No 229595709.77
Automotive System Co. Ltd of parts
Purchasing
parts and
United Automotive Electronics
accepting 489858832.36 1429975183.76 No 411241559.03
(Chongqing) Co. Ltd
labor
services
GKN HUAYU Driveline Systems Procurement
175750765.78 790510541.08 No 210241479.79
(Chongqing) Co. Ltd. of parts
Nanjing LingHang Technology Accept
33388.14 784986.19 No 304110.83
Co. Ltd. labor
Tiannak Lingchuan (Chongqing) Procurement
23033580.78 94817712.44 No 30942900.59
exhaust system Co. Ltd of parts
Changan Laisi (Chongqing) robot Procurement
1756066.31 6080910.24 No -
intelligent equipment Co. Ltd of parts
Purchasing
parts and
Chongqing Dajiang Tongyang
accepting 251637351.95 642430775.12 No 191978923.57
Plastics Co. Ltd.labor
services
Purchasing
Chongqing Dajiang Guoli parts and
Precision Machinery accepting 243266094.33 602237925.04 No 167524798.04
Manufacturing Co. Ltd. labor
services
Dajiang Yapp Automotive Procurement
218898950.45 639666919.95 No 167401222.48
Systems Co. Ltd. of parts
Chongqing Hanon Jianshe
Procurement
Automotive Thermal Systems 75943637.67 262419840.76 No 71943120.72
of parts
Co. Ltd.Chongqing Lingchuan Auto Parts
Procurement
Manufacturing Technology Co. 101723761.38 246500284.04 No 67077513.30
of parts
Ltd.Chongqing Changan Intelligent
Industrial Technology Service Accept labor 11279433.62 5609648.20 Yes 513085.15
Co. Ltd
Longchang Shanchuan Precision Procurement
12373330.60 46371255.34 No 16006962.03
Welded Tube Co. Ltd. of parts
Purchasing
goods and
Zhongqi Chuangzhi Technology
accepting 480000.94 416000.00 Yes -
Co. Ltd
labor
services
Chongqing Changrong Procurement
136845945.08 471572232.84 No 105095477.66
Machinery Co. Ltd. of parts
Purchasing
parts and
Chongqing Wutong Chelian
accepting 157766418.74 2421865920.85 No 18867924.00
Technology Co. Ltd.labor
services
Purchased
China Ordnance News Agency 18555.76 20726.01 No 8235.84
Items
Avatr Technology (Chongqing) Procurement
928938.06 - Yes -
Co. Ltd of parts
81Related parties Nature of Current amount Approved Whether it Prior-period
the transaction exceeds the amount
transaction amount transaction
amount
Southwest Ordnance Industry
Chongqing Environmental
Accept labor 445897.62 3371826.69 No 643025.04
Protection Research Institute Co.Ltd.Changan Ford Automobile Co. Procurement
- 21351.61 No 33177.65
Ltd. of parts
Changan Auto Finance Co. Ltd. Accept labor 40003766.38 83784480.00 No 154563517.61
Southwest Ordnance Industry Procurement
- 1300000.00 No -
Co. Ltd of parts
Chongqing Changrong Procurement
- 60989.98 No -
Machinery Co. Ltd of parts
Nanyang Lida Optoelectronics Procurement
- 9739.85 No -
Co. Ltd of parts
Yunnan Wanxing Auto Sales
Accept labor - 143000.00 No 92971.05
Service Co. Ltd.Chongqing Changxian Intelligent
Accept labor - 910000000.00 No -
Technology Co. Ltd
Chongqing construction industry Procurement
- - No 726973.62
(Group) Co. Ltd of parts
Chongqing Pingshan Tk Procurement
- - No 113625.19 Carburetor Co. Ltd. of parts
Chongqing Wanyou Advertising Procurement
- - No 144000.00
Co.Ltd. of parts
Ald Fortune Auto Leasing & Procurement
- - No 2081065.28
Renting (Shanghai) Co. Ltd. of parts
Avatr (Chongqing) Automobile Procurement
61949625.77 - Yes -
Sales Service Co. Ltd of parts
Total: 14784492172.04 54791273787.10 12077344092.00
Goods sold and services offered
In RMB Yuan
Related parties Nature of the transaction Current amount Prior-period Amount
Selling parts and providing labor
Changan Ford Automobile Co. Ltd. 2017778.68 1977509.38
services
Changan Mazda Automobile Co. Ltd Selling parts 7133803.72 -
Jiangling Holdings Co. Ltd. Providing labor services 207500.00 384888.69
Changan Automobile Financing Co. Ltd. Providing labor services 174835059.92 233886141.47
Chongqing Changan Kuayue Automobile Selling complete vehicles and
105713055.0035175120.00
Co. Ltd. components
Chongqing Changan Kuayue Automobile
Selling parts 129155.26 84044.68
Sales Co. Ltd.Selling vehicle parts and
Deepal Automobile Technology Co. Ltd 111103766.19 941495311.87
providing labor services
Pakistan Master Automobile Co. Ltd. Selling complete vehicles 109372901.50 686073063.37
China Changan Automobile Group Co.Providing labor services 23760.00 -
Ltd
Anhui Wanyou Automobile Sales Service Selling vehicle parts and
140376222.36101714909.87
Co. Ltd. providing labor services
82Related parties Nature of the transaction Current amount Prior-period Amount
Chengdu Huachuan Electric Equipment Selling complete vehicles and
99293.70-
Co. Ltd. providing labor services
Selling parts and providing labor
Chengdu Wanyou Trading Co. Ltd. 95348.42 8176.99
services
Chengdu Wanyou Auto Sales and Service Selling vehicle parts and
832930.32472725.21
Co.Ltd. providing labor services
Chengdu Wanyou Auto Trade Service Selling vehicle parts and
329514962.73312041141.75
Co. Ltd. providing labor services
Chengdu Wanyou Xiangyu Auto Sales Selling vehicle parts and
697109803.93699738917.76
and Service Co. Ltd. providing labor services
Guizhou Wanyou Auto Sales and Service Selling vehicle parts and
565501997.62501259585.12
Co. Ltd. providing labor services
Harbin Dongan Automotive Engine
Selling parts 1993518.61 24251252.09
Manufacturing Co. Ltd.Hunan Tianyan Machinery Co. Ltd Providing labor services 169811.32 -
Jiangsu Wanyou Automobile Sales Selling vehicle parts and
314630817.93105718270.77
Service Co. Ltd. providing labor services
Luzhou Wanyou Automobile Service Co. Selling complete vehicles and
592242.82450709.55
Ltd. components
Panzhihua Wanyou Auto Sales & Service Selling parts and providing labor
329795.23383700.50
Co. Ltd. services
Selling complete vehicles and
Wanyou Automobile Investment Co. Ltd. 291309672.29 327743125.35
providing labor services
Ya'an Wanyou Auto Sales and Service Selling vehicle parts and
1523835.89889767.43
Co. Ltd. providing labor services
Yunnan Wanyou Auto Sales and Service Selling vehicle parts and
555923788.70546916400.91
Co. Ltd. providing labor services
China South Industries Group Financial
Provide services 16343690.21 7077169.81
Leasing Co. Ltd.China Changan Automobile Group Hefei
Selling complete vehicles 201106.20 -
Investment Co. Ltd.China Changan Automobile Group Selling vehicle parts and
131130406.12113428610.55
Tianjin Sales Co. Ltd. providing labor services
Selling complete vehicles and
Chongqing Anfu Automobile Co. Ltd. 29676902.67 7775221.22
components
Chongqing Fuji Supply Chain
Selling complete vehicles 69216929.01 -
Management Co. Ltd
Selling vehicle parts and
Chongqing Tsingshan Industrial Co. Ltd. 470541.17 72087696.68
providing labor services
Chongqing Wanyou Ducheng Auto Sales Selling complete vehicles and
2029066.921472801.11
Service Co. Ltd. components
Chongqing Wanyou Xingjian Auto Sales
Selling parts 914070.23 853360.20
& Service Co. Ltd.Chongqing Wanyou Economic Selling vehicle parts and
895356870.07924172360.80
Development Co. Ltd. providing labor services
Chongqing Wanyou Zunda Automobile
Selling parts 1211267157.57 319697765.86
Sales & Service Co. Ltd.Chongqing Changan Minsheng Logistics Selling parts and providing labor
1389240.001018913.85
Co. Ltd. services
China South Industry Group Finance Co.Provide services 667592.00 550714.07
Ltd.Hubei Huazhong Marelli Automotive
Selling goods 1313.00 -
Lighting Co. Ltd
83Related parties Nature of the transaction Current amount Prior-period Amount
Yunnan Xiyi Industries Co. Ltd. Selling parts 663752.00
China South Industries Group
Provide services 5913.36 44333.22
Commercial Factoring Co. Ltd.Chongqing Jianshe Automobile Air-
Selling parts 7964.60 11946.90
conditioner Co. Ltd.Chongqing Nexteer Steering System
Selling parts 5921500.00 1552230.09
Co.Ltd.United Automotive Electronics
Selling parts 4577309.74 -
(Chongqing) Co. Ltd
Nanjing LingHang Technology Co. Ltd. Providing labor services 850308.10 1873252.38
Ald Fortune Auto Leasing & Renting
Providing labor services 91754.87 13010318.55
(Shanghai) Co. Ltd.Tiannak Lingchuan (Chongqing) exhaust
Selling parts 937224.65 2651092.85
system Co. Ltd
Chongqing Dajiang Guoli Precision Selling parts and providing labor
5757279.8114217387.85
Machinery Manufacturing Co. Ltd. services
Chongqing Lingchuan Auto Parts
Selling parts 765342.53 1214708.00
Manufacturing Technology Co. Ltd.Zhongqi Chuangzhi Technology Co. Ltd Selling goods 0.94 -
Chongqing Wutong Chelian Technology
Selling goods 271.68 -
Co. Ltd
Selling parts and providing labor Avatr Technology (Chongqing) Co. Ltd. 966811840.03 52471011.00
services
Dali Wanfu Automobile Sales and
Selling parts 11752.21 -
Service Co. Ltd
Hainan Anxinxing Information
Providing labor services - 28301.89
Technology Co. Ltd.Sales of parts and maintenance
Harbin Dongan Auto Engine Co. Ltd. - 1173.00
services
Yunnan Wanxing Auto Sales Service Co. Selling complete vehicles and
-18951586.08
Ltd. components
Chongqing Changan Minsheng Boyu Sales of complete vehicles and
-23716.98
Logistics Co. Ltd. training fees
Chengdu Lingchuan Vehicle Oil Tank
Selling parts - 938416.81
Co. Ltd.Chongqing Dajiang Yuqiang Plastic Co.Selling parts - 131400.00
Ltd.Chongqing construction industry (Group)
Selling parts - 193218.11
Co. Ltd
Chongqing Dajiang Tongyang Plastics
Selling parts - 533842.98
Co. Ltd.Avatr (Chongqing) Automobile Sales
Selling goods 660.38 -
Service Co. Ltd
Total: 6754944830.21 6077311065.60
(2) Related-party leasing
Rent assets to related parties
In RMB Yuan
Lessee Type of leased assets Report period Amount Same period of last
84period Amount
South Inter Air-conditioner Co.Ltd. Vehicle 48849.56 67752.21
Chongqing Changan Industries Group
Building 3283373.71 3397373.71
Co. Ltd.Nanjing LingHang Technology Co.Vehicle 2624149.56 63932417.73
Ltd.Ald Fortune Auto Leasing & Renting
Vehicle 22935079.52 2696360.42
(Shanghai) Co. Ltd.Deepal Automobile Technology Co. Building land and battery
27782737.0810675075.50
Ltd Workshop
Chongqing Changan Minsheng
Building 348266.98 354900.63
Logistics Co. Ltd.Chongqing Wanyou Economic
Building and land 321100.92 321100.92
Development Co. Ltd.Chongqing Changan Real Estate
Vehicle 24424.78 -
Development Co. Ltd
Total 81444981.12 57367982.11
Rent assets from related parties
In RMB Yuan
Rent paid
Lessor Type of leased assets Same period of last period
Report period Amount
Amount
Chongqing Changan Minsheng
Land 8133557.01 1730062.80
Logistics Co. Ltd
Chongqing Changan Property
Land 2977660.00 -
Management Co. Ltd
Total 11111217.01
(3) Other related transactions
Integrated service charges
In RMB Yuan
Related parties Nature of the transaction Report period Amount Same period of last
period Amount
Payment of land rental fees - 3091095.90
Payment of building rental fees - 1197968.00
Changan Industries (Group) Co. Ltd
Payment of utilities 37806926.34 27574790.98
Others - 513677.67
Total 32377532.55 37806926.34
Purchase of project materials
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
85Chongqing Changan Minsheng Logistics Co. Ltd - 8150.95
Changan Laisi (Chongqing) robot intelligent equipment Co. Ltd - 7830088.50
Chongqing Changan Intelligent Industrial Technology Service
2743362.86-
Co. Ltd
Total 2743362.86 7838239.45
Staff expenses for technical supporting
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
Changan Mazda Automobile Co. Ltd 9131656.92 222474.38
Changan Ford Automobile Co. Ltd 5605674.97 7943502.33
Changan Mazda Engine Co. Ltd. 6703950.04 242821.56
Hainan Anxinxing Information Technology Co. Ltd. - 634354.87
Chongqing Shangfang Auto Parts Co. Ltd 37002.00 -
Jiangling Holdings Co. Ltd 7343774.35 -
Chongqing Changan Crossing Vehicle Co. Ltd 1212194.63 -
China Changan Automobile Group Co. Ltd 169811.32 -
Chongqing Nexteer Steering System Co. Ltd 18026.66 -
Chongqing Dajiang National Precision Machinery
2520.00-
Manufacturing Co. Ltd
Jiangling Automobile Co. Ltd 826370.83 -
Chongqing Construction Transmission Technology Co. Ltd 27872.04 -
Chongqing WutongChelian Technology Co. Ltd 208063.02 -
Avatr Technology (Chongqing) Co. Ltd 682780.43 -
Total 31969697.21 9043153.14
Techonology development service charges
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
Chongqing Tsingshan Industrial Co. Ltd. 10144721.22
Changan Mazda Automobile Co. Ltd 397572.54
Total 10542293.76
Collection of trademark use rights fees
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
Chongqing Changan Kuayue Automobile Co. Ltd. 6009433.96 270188.68
86Related party monetary funds
In RMB Yuan
Related parties Ending Amount Beginning Amount
China South Industries Group Finance Co. Ltd 19857412889.08 19862952043.78
Changan Automobile Finance Co. Ltd 14700000000.00 14950000000.00
Total 34557412889.08 34812952043.78
First half of 2023 the annual interest rate of deposits deposited with related parties is 0.35% - 2.25% and the term is 0-12 months.Borrowing
Short-term borrowing
In RMB Yuan
Related parties Ending Amount Beginning Amount
China South Industries Group Finance Co. Ltd 20000000.00 29000000.00
Long-term borrowing
In RMB Yuan
Related parties Ending Amount Beginning Amount
China South Industries Group Finance Co. Ltd 80000000.00 40000000.00
Interest income of deferred payment
In RMB Yuan
Related parties Report period Amount Same period of last period Amount
Jiangsu Wanyou Automobile Sales Service Co. Ltd 1380.53 -
Chongqing Wanyou Economic Development Co. Ltd - 6588.40
China Changan Automobile Group Tianjin Sales Co. - 2489.29
Ltd.Total 1380.53 9077.69
6. Payment and receivables of related parties
(1) Payment receivables of related listed companies
In RMB Yuan
Items Related parties Ending balance Beginning balance
Notes Chongqing Changan Kuayue Automobile
37452780.00-
receivable Sales Co. Ltd.
87Items Related parties Ending balance Beginning balance
Notes
Deepal Automobile Technology Co. Ltd - 3623354650.53
receivable
Notes Chengdu Wanyou Auto Trade Service Co.
22000000.0022500000.00
receivable Ltd.Notes Guizhou Wanyou Auto Sales and Service
5000000.007300000.00
receivable Co. Ltd.Notes Harbin Dongan Automotive Engine
1000729.173029467.77
receivable Manufacturing Co. Ltd.Notes
Wanyou Automobile Investment Co. Ltd. 2214980000.00 3047690000.00
receivable
Notes Yunnan Wanyou Auto Sales and Service
35000000.0043000000.00
receivable Co. Ltd.Notes
Chongqing Tsingshan Industrial Co. Ltd. 40822710.36 40463588.91
receivable
Notes Chongqing Wanyou Economic
27000000.0020250000.00
receivable Development Co. Ltd.Notes
Avatr Technology (Chongqing) Co. Ltd. 494166303.64 121822864.29
receivable
Subtotal 2877422523.17 6929410571.50
Account
Changan Ford Automobile Co. Ltd. 6885149.43 195582372.52
receivable
Account
Changan Mazda Automobile Co. Ltd 9148414.64 72378357.38
receivable
Account
Changan Mazda Engine Co. Ltd. 3373248.04 3494661.85
receivable
Account
Jiangling Holdings Co. Ltd. 49384266.38 121166512.75
receivable
Account
Changan Auto Finance Co. Ltd. 29156758.91 68199053.80
receivable
Account Chongqing Changan Kuayue Vehicle Co.
17920237.9039592219.39
receivable Ltd
Account
Beijing Fang’an cresent taxi Co. Ltd. - 38600000.00
receivable
Account Chongqing Changan Kuayue Automobile
14942.8031861.79
receivable Sales Co. Ltd.Account
Deepal Automobile Technology Co. Ltd - 1011838777.69
receivable
Account
Pakistan Master Automobile Co. Ltd. 30444169.62 37958837.25
receivable
Account China Changan Automobile Group Co.
180000.00-
receivable Ltd
Account Chengdu Huachuan Electric Equipment
50000.00-
receivable Co. Ltd
Account Harbin Dongan Automotive Engine
391043.25147532.81
receivable Manufacturing Co. Ltd.Account China South Industries Group Financial
5410074.209734968.89
receivable Leasing Co. Ltd.Account
Chongqing Tsingshan Industrial Co. Ltd. 31864429.19 29579405.37
receivable
Account Chongqing Changan industry (Group)
3626628.573626628.57
receivable Co. Ltd
Account
Nanjing LingHang Technology Co. Ltd. 1428345.48 4209516.65
receivable
88Items Related parties Ending balance Beginning balance
Account Ald Fortune Auto Leasing & Renting
4315640.005181800.00
receivable (Shanghai) Co. Ltd.Account
Avita Technology (Chongqing) Co. Ltd. 394779882.78 320592883.29
receivable
Account
JMC - 1176831.13
receivable
Account Chongqing Changan Minsheng Logistics
-688099.86
receivable Co. Ltd.Account Chengdu Wanyou Xiangyu Automobile
-127548.00
receivable Sales and Service Co. Ltd
Account Guizhou Wanyou Auto Sales and Service
-63900.00
receivable Co. Ltd.Account China South Industries Group
-1841.34
receivable Commercial Factoring Co. Ltd.Account Chongqing Changan Intelligent Industrial
-0.15
receivable Technology Service Co. Ltd
Account Tiannak Lingchuan (Chongqing) exhaust
-0.03
receivable system Co. Ltd
Subtotal 588373231.19 1963973610.51
Other Chongqing Changan Minsheng Logistics
475374.49436.57
receivable Co. Ltd.Other China South Industry Group Finance Co.
243650.67859049.92
receivable Ltd.Other
Nanjing LingHang Technology Co. Ltd. 107028.38 -
receivable
Chongqing Changxin Zhiqi Private Equity
Other
Investment Fund Partnership (Limited 35000000.00 -
receivable
Partnership)
Other Chongqing Changan industry (Group)
1157446.691157446.69
receivable Co. Ltd
Other China South Industries Group
44615500.00-
receivable Commercial Factoring Co. Ltd.Other China Changan Automobile Group Hefei
282382.49-
receivable Investment Co. Ltd
Subtotal 81881382.72 2016933.18
Advanced
Deepal Automobile Technology Co. Ltd - 10397480.50
payment
Advanced Beijing Wutong Chelian Technology Co.
12769380.3012438660.30
payment Ltd.Subtotal 12769380.30 22836140.80
(2) Accounts payable to related parties of listed companies
In RMB Yuan
Items Related parties Ending balance Beginning balance
Notes payable Jiangling Holdings Co. Ltd. 772650078.38 59248188.59
Notes payable Deepal Automobile Technology Co. Ltd - 293766946.00
Notes payable Harbin Dongan Auto Engine Co. Ltd. 69720000.00 59090000.00
89Items Related parties Ending balance Beginning balance
Harbin Dongan Automotive Engine Manufacturing
Notes payable 181260000.00 197280000.00
Co. Ltd.Notes payable Hunan Tianyan Machinery Co. Ltd 3680000.00 -
Notes payable CSM Faurecia Automotive Parts Co. Ltd. 71521000.00 36370000.00
Notes payable South Tianhe Chassis System Co. Ltd. 46898358.00 118961825.13
Notes payable South Inter Air-conditioner Co.Ltd. 188840000.00 130650474.98
Notes payable Sichuan Ningjiang Shanchuan Machinery Co Ltd. 109816824.00 60759442.02
Notes payable Chongqing Tsingshan Industrial Co. Ltd. 1313041354.00 1078658254.05
Notes payable Chongqing Changan Minsheng Logistics Co. Ltd. 336484318.39 300858223.58
Notes payable CDGM Tanaka Environmental Catalyst Co.Ltd. 62940000.00 560000.00
Chengdu Jialing Huaxi Optical & Precision
Notes payable 330000.00 950000.00
Machinery Co. Ltd.Notes payable Chengdu Lingchuan Vehicle Oil Tank Co. Ltd. 2620000.00 -
Notes payable Chengdu Wanyou Filter Co. Ltd. 26550000.00 34373849.84
Hubei Huazhong Marelli Automobile Lighting Co.Notes payable 144870000.00 139690000.00
Ltd.Notes payable Hubei Xiaogan Huazhong Automobile Light Co. Ltd. 36940000.00 15650000.00
Notes payable Chongqing Dajiang Jiexin Forging Co. Ltd. 1010000.00 1090000.00
Chongqing Jianshe Automobile Air-conditioner Co.Notes payable 21560000.00 20050000.00
Ltd.Notes payable Chongqing Construction Tongda Industrial Co. Ltd. 14439729.00 10640000.00
Notes payable Chongqing Nexteer Steering System Co.Ltd. 192490000.00 327738252.79
Notes payable Chongqing Shangfang Automobile Fittings Co. Ltd. 34683825.00 33869017.86
Chongqing Yihong Engineering Plastic Products Co.Notes payable 19740000.00 19560000.00
Ltd.GKN HUAYU Driveline Systems (Chongqing) Co.Notes payable 118680000.00 98250000.00
Ltd
Tiannak Lingchuan (Chongqing) exhaust system Co.Notes payable 29740000.00 32530000.00
Ltd
Notes payable Chongqing Dajiang Tongyang Plastics Co. Ltd. 205123800.00 145840000.00
Chongqing Dajiang Guoli Precision Machinery
Notes payable 4463262.00 7765999.95
Manufacturing Co. Ltd.Notes payable Dajiang Yapp Automotive Systems Co. Ltd. 199010000.00 175450000.00
Chongqing Hanon Jianshe Automotive Thermal
Notes payable 49510000.00 82600000.00
Systems Co. Ltd.
90Items Related parties Ending balance Beginning balance
Chongqing Lingchuan Auto Parts Manufacturing
Notes payable 90380000.00 80530000.00
Technology Co. Ltd.Longchang Shanchuan Precision Welded Tube Co.Notes payable 4942403.00 6140145.72
Ltd.Southwest Ordnance Industry Chongqing
Notes payable 1012449.43 -
Environmental Protection Research Institute Co. Ltd.Notes payable Chongqing Changrong Machinery Co. Ltd. - 1314548.20
Notes payable Hunan Tianyan Machinery Co. Ltd. - 630000.00
Subtotal 4354947401.20 3570865168.71
Account
Jiangling Holdings Co. Ltd. 164547071.39 1116408615.48
payable
Account
Hangzhou Chelizi Intelligent Technology Co. Ltd. 12350.00 12350.00
payable
Account
Deepal Automobile Technology Co. Ltd - 822638571.39
payable
Account
Beijing Wutong Chelian Technology Co. Ltd. 1632357.66 4301349.18
payable
Account
Chengdu Huachuan Electric Equipment Co. Ltd. 57494293.50 41958250.19
payable
Account Chengdu Ningjiang Zhaohe Automobile Components
1175453.901358424.58
payable Co. Ltd.Account
Harbin Dongan Auto Engine Co. Ltd. 41477760.18 103616123.17
payable
Account Harbin Dongan Automotive Engine Manufacturing
480894.0999563867.81
payable Co. Ltd.Account
Hafei Automobile Co. Ltd 344.04 344.04
payable
Account
Hunan Tianyan Machinery Co. Ltd 62773650.28 -
payable
Account
CSM Faurecia Automotive Parts Co. Ltd. 106611292.57 79576674.87
payable
Account
South Tianhe Chassis System Co. Ltd. 188361446.89 142620012.97
payable
Account
South Inter Air-conditioner Co.Ltd. 130716589.27 87495633.58
payable
Account
Sichuan Jian'an Industrial Co.Ltd. 107350795.49 40868455.07
payable
Account
Sichuan Ningjiang Shanchuan Machinery Co Ltd. 32663780.69 11108409.24
payable
Account
Chongqing Tsingshan Industrial Co. Ltd. 711328381.80 153454423.03
payable
Account Chongqing Wanyou Xingjian Auto Sales & Service
20842.8020842.80
payable Co. Ltd.Account
Chongqing Wanyou Economic Development Co. Ltd. 4575091.49 757763.87
payable
Account
Chongqing Changan Minsheng Logistics Co. Ltd. 10622441.06 12696301.88
payable
Account
CDGM Tanaka Environmental Catalyst Co.Ltd. 257112640.35 32759347.97
payable
91Items Related parties Ending balance Beginning balance
Account Chengdu Jialing Huaxi Optical & Precision
202481.66559576.76
payable Machinery Co. Ltd.Account
Chengdu Lingchuan Vehicle Oil Tank Co. Ltd. 11183506.80 8056699.53
payable
Account
Chengdu Wanyou Filter Co. Ltd. 26556287.37 14115700.51
payable
Account Hubei Huazhong Marelli Automobile Lighting Co.
146612808.09236096916.60
payable Ltd.Account
Hubei Xiaogan Huazhong Automobile Light Co. Ltd. 17446057.16 19359970.66
payable
Account
Yunnan Xiyi Industries Co. Ltd. 28768504.82 4210156.64
payable
Account
Chongqing Dajiang Jiexin Forging Co. Ltd. 107645.85 312203.77
payable
Account
Chongqing Dajiang Yuqiang Plastic Co. Ltd. 38651.31 496894.20
payable
Account
Chongqing Jialing Yimin Special Equipment Co. Ltd. 104496.50 104496.50
payable
Account Chongqing Jianshe Automobile Air-conditioner Co.
15637578.0810360465.69
payable Ltd.Account Chongqing Jianshe Mechanical & Electrical
47265.9147265.91
payable Equipment Co. Ltd.Account
Chongqing Construction Tongda Industrial Co. Ltd. 20074980.69 11268342.31
payable
Account
Chongqing Nexteer Steering System Co.Ltd. 330092881.48 278876988.05
payable
Account
Chongqing Shangfang Automobile Fittings Co. Ltd. 19581178.77 13575599.30
payable
Account
Chongqing Qingshan Transmission Sales Co. Ltd. 6031563.88 10199151.11
payable
Account
Chongqing Xiyi automobile connecting rod Co. Ltd 38422.14 38422.14
payable
Account Chongqing Yihong Engineering Plastic Products Co.
10554570.554247025.85
payable Ltd.Account
Chongqing Changan industry (Group) Co. Ltd 234239.51 236355.17
payable
Account Lear Changan (Chongqing) Automotive System Co.
9335.39109342564.03
payable Ltd
Account
United Automotive Electronics (Chongqing) Co. Ltd 98553343.25 72864235.98
payable
Account GKN HUAYU Driveline Systems (Chongqing) Co.
41873286.9949148122.03
payable Ltd
Account Tiannak Lingchuan (Chongqing) exhaust system Co.
43743.185380229.34
payable Ltd
Account
Chongqing Dajiang Tongyang Plastics Co. Ltd. 74791702.46 86558622.08
payable
Account Chongqing Dajiang Guoli Precision Machinery
17036265.166417935.77
payable Manufacturing Co. Ltd.Account
Dajiang Yapp Automotive Systems Co. Ltd. 158843424.75 152806662.74
payable
Account Chongqing Hanon Jianshe Automotive Thermal
1646423.152388277.76
payable Systems Co. Ltd.
92Items Related parties Ending balance Beginning balance
Account Chongqing Lingchuan Auto Parts Manufacturing
37859893.3525869763.88
payable Technology Co. Ltd.Account Chongqing Changan Intelligent Industrial Technology
1443978.00-
payable Service Co. Ltd
Account Longchang Shanchuan Precision Welded Tube Co.
3273547.801759775.48
payable Ltd.Account
Chongqing Changrong Machinery Co. Ltd. 40659325.37 18773538.36
payable
Account
Chongqing Wutong Chelian Technology Co. Ltd 2379826.71 -
payable
Account
Avatr Technology (Chongqing) Co. Ltd 1049700.00 -
payable
Account Changan Reis (Chongqing) Robotic Intelligent
-8537490.14
payable Equipment Co. Ltd.Account
Changan Ford Automobile Co. Ltd. - 1878695.33
payable
Account Southwest Ordnance Industry Chongqing
-963651.26
payable Environmental Protection Research Institute Co. Ltd.Account
Chengdu Lingchuan Special Industry Co. Ltd. - 220175.48
payable
Account
Chongqing Automobile Air-conditioner Co. Ltd. - 205041.51
payable
Account
Hunan Tianyan Machinery Co. Ltd. - 143359.78
payable
Account
Chongqing Dajiang Xinda Vehicles Shares Co. Ltd. - 56251.08
payable
Account Beijing Beiji Mechanical and Electrical Industry Co.-3165.30
payable Ltd.Account
Chongqing Changan Kuayue Vehicle Co. Ltd - 1382.56
payable
Account
Chongqing Changfeng Jiquan Machinery Co. Ltd. - 1340.91
payable
Account
Chengdu Wanyou Auto Trade Service Co. Ltd. 426628.98 250
payable
Account Chongqing Wanyou Ducheng Auto Sales Service Co.
3486.65-
payable Ltd.Subtotal 2992164509.21 3906698522.62
Contract
Changan Ford Automobile Co. Ltd. 0.36 493954.43
liabilities
Contract
Changan Automobile Finance Co. Ltd 685200.00 685200.00
liabilities
Contract
Anhui Wanyou Automobile Sales Service Co. Ltd. 13745063.04 12540522.24
liabilities
Contract
Bazhong Wanyou Auto Sales & Service Co. Ltd. 50426.48 50426.48
liabilities
Contract
Chengdu Wanyou Trading Co. Ltd. 34357.00 18900.00
liabilities
Contract
Chengdu Wanyou Auto Sales and Service Co.Ltd. 111561.78 101869.64
liabilities
Contract
Chengdu Wanyou Auto Trade Service Co. Ltd. 29592086.71 18393074.44
liabilities
Contract Chengdu Wanyou Xiangyu Auto Sales and Service
94127263.3864279954.50
liabilities Co. Ltd.
93Items Related parties Ending balance Beginning balance
Contract
Guizhou Wanyou Auto Sales and Service Co. Ltd. 51855145.20 96702773.24
liabilities
Contract
Hafei Automobile Co. Ltd 471942.49 471942.49
liabilities
Contract
Jiangsu Wanyou Automobile Sales Service Co. Ltd. 87805094.37 58420002.39
liabilities
Contract
Luzhou Wanyou Automobile Service Co. Ltd. 76183.28 91342.25
liabilities
Contract
Panzhihua Wanyou Auto Sales & Service Co. Ltd. 44578.01 16305.41
liabilities
Contract
Wanyou Automobile Investment Co. Ltd. 13995992.74 47689212.74
liabilities
Contract
Ya'an Wanyou Auto Sales and Service Co. Ltd. 94915.31 75083.25
liabilities
Contract
Yunnan Wanyou Auto Sales and Service Co. Ltd. 24818155.28 49769852.59
liabilities
Contract China Changan Automobile Group Hefei Investment
10273.0010273.00
liabilities Co. Ltd.Contract China Changan Automobile Group Tianjin Sales Co.
20689970.8733057138.53
liabilities Ltd.Contract Chongqing Wanyou Ducheng Auto Sales Service Co.
288575.24373179.91
liabilities Ltd.Contract Chongqing Wanyou Xingjian Auto Sales & Service
163077.92155719.35
liabilities Co. Ltd.Contract
Chongqing Wanyou Economic Development Co. Ltd. 112755890.79 124667991.83
liabilities
Contract Chongqing Wanyou Zunda Automobile Sales &
67022495.8874694999.66
liabilities Service Co. Ltd.Contract
Chongqing Changan Minsheng Logistics Co. Ltd. 239944.56 416441.17
liabilities
Contract
Chongqing Shangfang Automobile Fittings Co. Ltd. 12979.98 12979.98
liabilities
Contract
Avatr Technology (Chongqing) Co. Ltd 587105.03 5832549.46
liabilities
Contract
Dali Wanfu Automobile Sales and Service Co. Ltd 206.06 3486.06
liabilities
Contract
Jiangling Holdings Co. Ltd. - 6854200.00
liabilities
Contract
Pakistan Master Automobile Co. Ltd. - 5213676.57
liabilities
Contract
Chongqing Anfu Automobile Co. Ltd. - 149000.00
liabilities
Contract
Yunnan Wanxing Auto Sales Service Co. Ltd. - 6816.00
liabilities
Contract
Guangxi Wanyou Auto Sales and Service Co. Ltd. - 302.4
liabilities
Subtotal 519278484.76 601249170.01
Other
Nanjing Chelai Travel Technology Co. Ltd 17201.61 -
payables
Other
Deepal Automobile Technology Co. Ltd - 113039584.99
payables
Other
China Changan Automobile Group Co. Ltd. 1000.00 1000.00
payables
94Items Related parties Ending balance Beginning balance
Other
Anhui Wanyou Automobile Sales Service Co. Ltd. 735600.00 1475600.00
payables
Other
Chengdu Huachuan Electric Equipment Co. Ltd. 593.85 173206.40
payables
Other
Chengdu Wanyou Auto Sales and Service co.Ltd. 190000.00 790000.00
payables
Other
Chengdu Wanyou Auto Trade Service Co. Ltd. 2843347.45 3607415.80
payables
Other Chengdu Wanyou Xiangyu Auto Sales and Service
6069300.007732620.00
payables Co. Ltd.Other
Guizhou Wanyou Auto Sales and Service Co. Ltd. 1119300.00 4007517.20
payables
Other
Harbin Dongan Auto Engine Co. Ltd. 80465.04 106468.60
payables
Other Harbin Dongan Automotive Engine Manufacturing
205660.00203155.92
payables Co. Ltd.Other
Jiangsu Wanyou Automobile Sales Service Co. Ltd. 4609714.52 4970000.00
payables
Other
Luzhou Wanyou Automobile Service Co. Ltd. 121800.00 129140.00
payables
Other
South Tianhe Chassis System Co. Ltd. 442571.34 293868.55
payables
Other
South Inter Air-conditioner Co.Ltd. 57987.25 1567432.39
payables
Other
Sichuan Jian'an Industrial Co.Ltd. 7726533.47 2101400.49
payables
Other
Sichuan Ningjiang Shanchuan Machinery Co Ltd. 57554.22 -
payables
Other
Ya'an Wanyou Auto Sales and Service Co. Ltd. 1863900.00 2063900.00
payables
Other
Yunnan Wanyou Auto Sales and Service Co. Ltd. 5277100.00 10068122.20
payables
Other China Changan Automobile Group Tianjin Sales Co.
4329000.003729000.00
payables Ltd.Other
Chongqing Tsingshan Industrial Co. Ltd. 20421377.38 7868918.85
payables
Other Chongqing Wanyou Ducheng Auto Sales Service Co.
572718.721096014.24
payables Ltd.Other Chongqing Wanyou Xingjian Auto Sales & Service
400880.00400000.00
payables Co. Ltd.Other
Chongqing Wanyou Economic Development Co. Ltd. 7013538.00 7660147.80
payables
Other Chongqing Wanyou Zunda Automobile Sales &
2150000.00-
payables Service Co. Ltd.Other
Chongqing Changan Minsheng Logistics Co. Ltd. 702549204.53 392075910.69
payables
Other
Chengdu Wanyou Filter Co. Ltd. 1257067.02 1266573.71
payables
Other Hubei Huazhong Marelli Automobile Lighting Co.
16218.04-
payables Ltd.Other Chongqing Jianshe Automobile Air-conditioner Co.
72772.00-
payables Ltd.
95Items Related parties Ending balance Beginning balance
Other
Chongqing Construction Tongda Industrial Co. Ltd. 43645.91 33787.00
payables
Other
Chongqing Nexteer Steering System Co.Ltd. 2580821.97 -
payables
Other
Chongqing Shangfang Automobile Fittings Co. Ltd. 560706.00 1113793.54
payables
Other Chongqing Yihong Engineering Plastic Products Co.
81.06-
payables Ltd.Other
Chongqing Changan industry (Group) Co. Ltd 791056.30 2960859.38
payables
Other
Chongqing Changan Property Management Co. Ltd. 5865755.49 1935184.57
payables
Other
Chongqing Changan Construction Co. Ltd. 26375786.10 26391448.08
payables
Other
United Automotive Electronics (Chongqing) Co. Ltd 33324.83 3439700.00
payables
Other GKN HUAYU Driveline Systems (Chongqing) Co.
308222.97-
payables Ltd.Other
Nanjing Lingxing Technology Co. Ltd 7275.64 -
payables
Other Ald Fortune Auto Leasing & Renting (Shanghai) Co.
7500000.00-
payables Ltd.Other Changan Reis (Chongqing) Robotic Intelligent
1913989.51917118.52
payables Equipment Co. Ltd.Other Chongqing Dajiang Guoli Precision Machinery
141250.00-
payables Manufacturing Co. Ltd.Other Chongqing Lingchuan Auto Parts Manufacturing
26668.00219898.32
payables Technology Co. Ltd.Other Chongqing Changan Intelligent Industrial Technology
1467227.644404413.09
payables Service Co. Ltd
Other
Chongqing Changrong Machinery Co. Ltd. 283545.60 -
payables
Other
China Ordnance News 17100.00 -
payables
Other Southwest Ordnance Industry Chongqing
8269753.03-
payables Environmental Protection Research Institute Co. Ltd.Other
Dali Wanfu Automobile Sales and Service Co. Ltd 26793.40 -
payables
Other
Chongqing Dajiang Tongyang Plastics Co. Ltd. - 1423800.00
payables
Other
Hunan Tianyan Machinery Co. Ltd. - 1235044.80
payables
Other
Chongqing Anfu Automobile Co. Ltd. - 200000.00
payables
Other
Chongqing Dajiang Xinda Vehicles Shares Co. Ltd. - 150000.00
payables
Other
Yunnan Xiyi Industries Co. Ltd. - 148030.00
payables
Other China Changan Automobile Group Hefei Investment
-106890.47
payables Co. Ltd.Other
Jiangling Holdings Co. Ltd. - 47703.40
payables
96Items Related parties Ending balance Beginning balance
Other
Hubei Xiaogan Huazhong Automobile Light Co. Ltd. - 27828.32
payables
Other
Chengdu Wanyou Trading Co. Ltd. - 11391.20
payables
Other
Dajiang Yapp Automotive Systems Co. Ltd. - 10855.59
payables
Other
Panzhihua Wanyou Auto Sales & Service Co. Ltd. - 4550.30
payables
Other
Chongqing Changan Kuayue Vehicle Co. Ltd 43187810.00 -
payables
Subtotal 869603217.89 611209294.41
XIII. Share-based payments
1. General information
√ Applicable □ Non-applicable
Unit: share currency: RMB
Total amount of equity instruments granted by the
0.00
company in the current period
Total amount of equity instruments exercised by the
44275061.00
company in the current period
Total amount of various equity instruments expired
2476422.00
in the current period of the company
The scope of exercise price of stock options issued
by the company at the end of the period and the No
remaining term of the contract
Restricted shares were granted for the first time in February 2021 the grant
The scope of exercise price of other equity price was 6.66 yuan/share (before adjustment) and the remaining term is 32
instruments issued at the end of the period and the months;
remaining term of the contract Restricted shares were reserved for grant in November 2021 the grant price was
9.93 yuan/share (before adjustment) and the remaining term is 42 months
2. Equity settled share based payment
√ Applicable □ Non-applicable
In RMB Yuan
Determination method of fair value of equity
Market price method model calculation
instruments on the grant date
Basis for determining the number of exercisable Based on the best estimate of the number of exercisable equity instruments the
equity instruments relevant expenses and costs are calculated according to the fair value of the
equity instruments on the grant date
Reasons for significant differences between the
No
current estimate and the previous estimate
Cumulative amount of equity settled share based
550321460.92
payment included in capital reserve
Total recognized expenses of equity settled share
187899000.00
based payment in the current period
3. Cash settled share based payment
□ Applicable √ Not applicable
974. Modification and termination of share based payment
□ Applicable √ Not applicable
5. Other
□ Applicable √ Not applicable
XIV. Commitments and Contingencies
1. Significant commitments
Contracted but not provided for
Items 2023.6.30 2022.12.31
Capital commitments 10900775809.89 11675534857.57
Investment commitments 714150001.00 1782940000.00
Total 11614925810.89 13458474857.57
2. Contingencies
By June 30 2023 no material contingencies needed to be disclosed.XV. Events after the balance sheet date
None
XVI. Other important events
1. Segment information
The Group identifies operating segments based on the internal organization structure managerial requirements and internal reporting
system and identifies reportable segments based on operating segments and discloses segment information by operating segment.An operating segment is a component of the Group that meets all the following conditions:
(1) it engages in business activities from which it may earn revenues and incur expenses;
(2) its operating results are regularly reviewed by the Company’s management to make decisions about resources to be allocated to
the segment and assess its performance; and
(3) the Group can obtain relevant accounting information such as its financial position operating results and cash flows.
If two or more segments have similar economic characteristics and meet certain conditions they can be aggregated into a single
operating segment.The revenue and profit of the Group mainly consist of the automobile manufacturing and domestic sales. The Group’s principal
assets are in China. The operating performance of the Group has been evaluated as a whole by the management. So the segment
report has not been prepared for this year.
982. Lease arrangements
(1) As lessor
The Group leases buildings machinery and equipment and vehicles for a lease term of 1-15 years forming an operating lease.Details for investment property and operating leased fixed assets refer to note VII 13 and 14.The income related to operating leases are listed as follows:
In RMB Yuan
Report period Amount
Leasehold Income 233112047.46
According to the lease contract signed with the lessee the minimum lease collection amount of irrevocable lease is as follows:
In RMB Yuan
Ending balance
Less than 1 year (including 1 year) 472029012.94
1 to 2 years (including 2 years) 332018203.12
2 to 3 years (including 3 years) 192256798.72
3 to 4 years (including 3 years) 78908912.59
4 to 5 years (including 3 years) 20943996.69
Over 5 years 47276700.94
Total 1143433625.00
(2) As lessee
In RMB Yuan
Report period Amount
Interest expense of lease liabilities 7350104.73
Short term lease expenses with simplified treatment included in current profit and loss 39773086.74
Lease expense of low value assets with simplified treatment included in current profit and loss 123052.14
Total cash outflow related to leasing 67798755.00
The leased assets leased by the Group include buildings and other equipment used in the operation activities. The lease term of
houses and buildings is usually 1-5 years and that of other equipment is usually 2-5 years.XVII. Notes to the main items of the parent company’s financial statements
1. Account Receivables
(1) Aging analysis of accounts receivable is as follow:
In RMB Yuan
Account receivable age Ending balance Beginning balance
Less than 1 year (including 1 year) 8025560564.12 4445068297.55
1 to 2 years (including 2 years) 316966984.01 997705973.80
2 to 3 years (including 3 years) 587836483.56 -
99Over 3 years 182543593.50 213599440.84
Total 9112907625.19 5656373712.19
Minus：Provision (78268533.42) (117868890.37)
Net value of accounts receivable 9034639091.77 5538504821.82
(2) Movements of provision for accounts receivable are as follows:
In RMB Yuan
Report period Amount
Items Beginning balance Ending balance
Accrual Reversal Write-off
2023.6.30117868890.371000356.9538600000.0078268533.42
2022.12.31102237112.4217018007.911386229.96117868890.37
(3) Disclosure of accounts receivable
In RMB Yuan
Ending balance
Items Book balance Provision for bad-debts
Book value
Amount （%） Amount （%）
Individual assessment of credit 8780451896.59 96.35 37652846.20 0.43 8742799050.39
expected loss and provision for bad
debts
Assess bad debt provision for 332455728.60 3.65 40615687.22 12.22 291840041.38
expected credit expected loss
according to credit risk characteristics
combination
Total 9112907625.19 100.00 78268533.42 0.86 9034639091.77
Beginning balance
Items Book balance Provision for bad-debts
Book value
Amount （%） Amount （%）
Individual assessment of credit 5137221177.03 90.82 76252846.20 1.48 5060968330.83
expected loss and provision for bad
debts
Assess bad debt provision for 519152535.16 9.18 41616044.17 8.02 477536490.99
expected credit expected loss
according to credit risk
characteristics combination
Total 5656373712.19 100.00 117868890.37 2.08 5538504821.82
(4) Accounts receivable of the top five ending balances collected by the debtor
As of June 30 2023 the top five accounts receivable amounted to RMB 7003710837.32 accounting for 76.85% of the total accounts
receivable (December 31 2022: RMB 3044844058.24 accounting for 53.83% of the total accounts receivable).
1002. Other receivables
In RMB Yuan
Items Ending balance Beginning balance
Dividends receivable 180656814.04
Other receivables 106460223.26 859026748.64
Total 287117037.30 859026748.64
(1) Dividends receivable
In RMB Yuan
Items ( or invested units ) Ending balance Beginning balance
China South Industry Group Finance Co. Ltd. 180656814.04
Total 180656814.04
(2) Other receivables
1) Aging analysis of other receivables is as follows:
In RMB Yuan
Account receivable age Ending balance Beginning balance
Within 1 year 101340518.06 842446117.27
1 to 2 years 3795520.37 7116112.63
2 to 3 years 100000.00 1226346.51
Over 3 years 8337264.46 15300830.26
Total 113573302.89 866089406.67
Minus:Provision (7113079.63) (7062658.03)
Net value of other receivables 106460223.26 859026748.64
2) Analysis of other receivables by nature is as follows:
In RMB Yuan
Items Ending balance Beginning balance
Petty cash 52736507.27 62920147.86
Prepaid equity investment 35000000.00 399486432.52
Internal transactions 5815029.62 32946539.47
Energy-saving and new energy subsidy 338394118.63
Others 12908686.37 25279510.16
Total 106460223.26 859026748.64
1013) The changes in the provision for bad debts for other receivables based on the 12-month expected credit loss and the
expected credit loss for the entire duration are as follows:
In RMB Yuan
Report period Amount
Items Beginning balance Ending balance
Accrual Reversal
2023.6.307062658.0374667.4024245.807113079.63
2022.12.317062658.0374667.4024245.807113079.63
4) Top five debtors of other receivables are as follows:
In RMB Yuan
Ending
Proportion of total
Items Nature of payment Ending balance Aging balance of
other receivables (%)
provision
First place Investment funds 35000000.00 Within 1 year 30.82
Second place Internal transactions 4628877.79 Within 1 year 4.08
Third place Margin 4058265.28 Within 1 year 3.57
Fourth place Margin 3200000.00 Within 1 year 2.82
Fifth place Margin 2000000.00 Over 5 years 1.76
Total 48887143.07 43.05
5) Other receivables derecognized due to transfer of financial assets
As of June 30 2023 the Group had no other receivables derecognized as financial asset transfers (December 31 2022: None).
1023. Long-term equity investment
（1） Investment in subsidiaries
In RMB Yuan
Changes during report period
Ending Balance of
Investee Opening Balance reduce Ending Balance
Addition Provision for impairment provision
investment
Nanjing Changan Automobile Co. Ltd. 422533259.00 422533259.00
Chongqing Changan International Automobile 203068581.00 203068581.00
Sales Co. Ltd.Chongqing Changan Automobile Supporting 29700000.00 29700000.00
Service Co. Ltd.Chongqing Changan Special Automobile Co. 2500000.00 2500000.00
Ltd.Chongqing Changan Europe Design Center 155469913.50 155469913.50
Co. Ltd.Chongqing Changan New Energy Automobile 49194195.00
Co. Ltd.Changan United Kingdom R&D Center Co. 250093850.95 250093850.95
Ltd.Chongqing Changan Connected Car 88500000.00 88500000.00
Technology Co. Ltd.Beijing Changan R&D Center Co. Ltd. 1000000.00 1000000.00
Changan United States R&D Center Co. Ltd. 10243460.00 10243460.00
Changan Japan Designing Center Co.Ltd. 1396370.15 1396370.15
Hefei Changan Automobile Co.Ltd. 1535367765.23 1535367765.23
Changan Automobile Russia Co. Ltd. 251242589.15 251242589.15
Chongqing Changan Lingyao Automobile Co. 594949059.30 594949059.30
Ltd.Changan Automobile Investment (Shenzhen) 237889511.00 237889511.00
Co. Ltd
Chongqing Anyi Automobile Technical Service 2000000.00 2000000.00
Co. Ltd.
103Guangzhou Changan New Energy Automobile 4000000.00 4000000.00
Co. Ltd.Xiamen Changan New Energy Automobile Co. 2000000.00 2000000.00
Ltd.Chongqing Chehemei Technology Co. Ltd. 10000000.00 10000000.00
Nanjing Changan New Energy Automobile 50000000.00 50000000.00
Sales & Service Co. Ltd.Chongqing Changan Automobile Software 99000000.00 99000000.00
Technology Co. Ltd.Chongqing Changan Kaicheng Automobile 977793971.55 977793971.55
Technology Co. Ltd.Chongqing Xingzhi Technology Co. Ltd
Chongqing Changan Technology Co. Ltd 90000000.00 90000000.00
Deepal Automobile Technology Co. Ltd 1655606604.29 1655606604.29
Total 5018748330.83 1655606604.29 6674354935.12 49194195.00
（2） Investment in associates and joint ventures
In RMB Yuan
Changes during report period
Investee Opening Balance Investment income/loss under equity Ending Balance
Addition Others
method
1. Joint ventures
Changan Ford Automobile Co. Ltd. 2934876043.99 522860908.17 3457736952.16
Changan Mazda Automobile Co.Ltd.Changan Mazda Engine Co. Ltd.Nanchang Jiangling Investment Co.Ltd.Subtotal 7267680136.01 862959808.34 (423000000.00) 7707639944.35
2. Associates
Chongqing Changan Kuayue
209768936.345402511.72215171448.06
Automobile Co. Ltd.Chongqing Changan Kuayue Vehicle
104Marketing Co. Ltd
Beijing Fang'an Crescent Taxi Co.Ltd
Changan Automobile Financing Co.
2778898410.33172182412.712951080823.04
Ltd.Avatr Technology (Chongqing) Co.
1228287241.13(716583868.90)511703372.23
Ltd.Nanjing Chelai Travel Technology
624773.31(92277.85)532495.46
Co. Ltd.Coresing Semiconductor Technology
25452425.2671917.1925524342.45
Co. Ltd.Nanjing Leading Equity Investment
1112210.69(5089.84)1107120.85
Management Co. Ltd.Nanjing Leading Equity Investment
2570421464.70(51784.35)2570369680.35
Partnership (Limited Partnership)
Zhongqi Chuangzhi Technology Co.
168492790.78(6754636.46)161738154.32
Ltd.Chongqing Changxin Zhiqi Private
Equity Investment Fund Partnership 170440054.08 242103.89 170682157.97
(Limited Partnership)
Anhe Chongqing Dingfeng
Automobile Contract Private Equity 61568706.08 4.26 61568710.34
Investment Fund
Chongqing Changan Innovation
Private Equity Investment Fund
1000844.59446.931001291.52
Partnership Enterprise (Limited
Partnership)
Deepal Automobile Technology Co.
369885426.05(45900263.46)(323985162.59)
Ltd
Chongqing Changxian Intelligent
102000000.0066933.68102066933.68
Technology Co. Ltd
Jiangling Holding Co. Ltd.Subtotal 7585953283.34 102000000.00 (591421590.48) (323985162.59) 6772546530.27
Total 12366388785.42 102000000.00 (141552078.57) (323985162.59) 12002851544.26
1054. Operating revenue and cost
In RMB Yuan
Report period Same period of last year
Items
Revenue Cost Revenue Cost
Main business 51607236773.22 44256352201.98 47015290808.29 39177855123.67
Other business 2769138423.99 1060042185.33 3275009762.83 1737129368.96
Total 54376375197.21 45316394387.31 50290300571.12 40914984492.63
5. Investment income
In RMB Yuan
Items Current amount Prior-period amount
Long-term equity investment losses
544650000.00594000000.00
accounted for by the cost method
Long-term equity investment losses
(141552078.57)(92372274.55)
accounted for by the equity method
Investment income from disposal of long-term equity investments 1.00
The investment income of financial asset held for trading during its
1406842.072690400.00
holding period
Dividend income from remaining investments in
180656814.04144222128.67
other equity instruments
Gains from the remeasurement of the remaining equity at fair value after
337513868.21
the loss of control
Total 585161578.54 986054122.33
Long-term equity investment income under equity method
In RMB Yuan
Investee Current amount Prior-period amount
Changan Ford Automobile Co. Ltd. 399619898.50 522860908.17
Changan Mazda Automobile Co. Ltd. (100026283.01) 236050510.98
Changan Mazda Engine Co. Ltd. 4107980.55 15784275.65
Nanchang Jiangling Investment Co. Ltd. 146167915.87 88264113.54
Jiangling Holding Co. Ltd. (41202595.77)
Chongqing Changan Kuayue Automobile Co. Ltd. 5402511.72 (20594524.55)
Changan Automobile Financing Co. Ltd. 172182412.71 152764747.43
Avatr Technology (Chongqing) Co. Ltd. (716583868.90) (82620701.16)
Hainan Anxinxing Information Technology Co. Ltd. (368900.00)
Nanjing Chelai Travel Technology Co. Ltd. (92277.85) (97213.22)
Coresing Semiconductor Technology Co. Ltd. 71917.19 (552714.09)
Nanjing Leading Equity Investment Management Co. Ltd. (5089.84) (9266.61)
Nanjing Leading Equity Investment Partnership (Limited (51784.35) (42899.72)
Partnership)
Zhongqi Chuangzhi Technology Co. Ltd. (6754636.46) (9012542.48)
Chongqing Changxin Zhiqi Private Equity Investment Fund 242103.89 (5754.39)
Partnership (Limited Partnership)
Anhe Chongqing Dingfeng Automobile Contract Private 4.26
Equity Investment Fund
Chongqing Changan Innovation Private Equity Investment 446.93
106Fund Partnership Enterprise (Limited Partnership)
Chongqing Changxian Intelligent Technology Co. Ltd 66933.68
Deepal Automobile Technology Co. Ltd (45900263.46) (953589718.33)
Total (141552078.57) (92372274.55)
XVIII. Additional information
1. Non-recurring profit and loss statement of current period
√ Applicable □ Non-applicable
In RMB Yuan
Items Amount explanation
Profit and loss of non-current assets disposition 366667730.28
Government subsidies counted in current profit and loss (except the 856008089.78
government subsidies which are closely related with business events
and given certain amount according to national standards)
Interest on late payment of funds charged to non-financial enterprises 17949915.40
In addition to the effective hedging business related to the company's (23334661.15)
normal business operations the fair value changes in gains and losses
arising from holding trading financial assets
Income from business combinations not under common control 5021482128.74
Other non-operating income and expenses other than the above items 79796614.79
Minus:Income tax impact 171307435.24
Minority shareholders' equity impact (after tax) 3341059.80
Total 6143921322.80 --
If the company identifies non-recurring profit and loss defined by Information Disclosure by Companies Offering Securities to the
Public No. 1--non-recurring profit and loss and non-recurring profit and loss defined by Information Disclosure by Companies Offering
Securities to the Public No. 1--non-recurring profit and loss as recurring profit and loss explain the reasons.
2. Return on equity and earnings per share
Weighted average Earnings per share
Profit in report period return on equity
（%） Basic EPS(yuan/share) Diluted EPS(yuan/share)
Net profit belonging to the Company’s common
11.70%0.780.76
stockholders
Net profit belonging to the Company’s common
stockholders after deducting non-recurring profit 2.31% 0.15 0.15
and loss
The group's presentation of return on net assets and earnings per share is in accordance with the preparation rules for information
disclosure of companies offering securities to the public No. 9 - Calculation and disclosure of return on net assets and earnings per
share (revised in 2010) of the CSRC.
3. Accounting data difference by domestic and foreign accounting standards
(1) Net profit and net asset differences from financial statements by international accounting standards and PRC GAAP
□ Applicable √ Not applicable
(2) Net profit and net asset differences from financial statements by overseas accounting standards and PRC GAAP
□ Applicable √ Not applicable
107(3) Description on accounting data differences by domestic and foreign accounting standards. If auditing institutions abroad
have adjusted the data differences identify the name of the auditing institution abroad.None
4. Others
□ Applicable √ Not applicable
108
沪公网安备31011802005267号
