Chongqing Changan Automobile
Company Limited
2023 Annual Report
April 2024Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 1 Important Notice Contents and Definitions
1. The Board of Directors (or the “Board”) the Supervisory Board as well as the directors
supervisors and senior managers of Chongqing Changan Automobile Co. Ltd. hereby guarantee the
factuality accuracy and completeness of the contents of this Report and its summary and shall be
jointly and severally liable for any misrepresentations misleading statements or material omissions
therein.
2. Zhu Huarong the Company’s legal representative Zhang Deyong the Company’s Chief
Financial Officer and Shi Haifeng the person-in-charge of the accounting organ hereby guarantee
that the financial statements carried in this Report are factual accurate and complete.
3. Except the following directors all the directors have attended the board meeting for reviewing
this Report.Name of the directors absent Positions Reasons for the absence Name of the Trustees
Deng Wei Director Work reasons Jia Lishan
Shi Yaoxiang Director Work reasons Zhang Deyong
Li Keqiang Independent Director Work reasons Tang Guliang
4. Any prospective description such as future business plans and development strategies in this
Report shall not be considered as the Company’s commitment to investors. Investors and relevant
persons shall be sufficiently mindful of risks and undertake the difference in plans predictions and
commitment.
5. Chapter III “Management Discussion and Analysis” of this Report describes the possible risks
and countermeasures of the Company and investors shall pay attention to the relevant content.
6. The Board has approved a final dividend plan as follows: Based on 9917289033 shares a cash
dividend of RMB 3.43 (tax included) per 10 shares is to be distributed to all shareholders without
transferring capital reserve to share capital.This Report have been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions the Chinese version shall prevail.
1Chongqing Changan Automobile Company Limited 2023 Annual Report
CONTENTS
Chapter 1 Important Notice Contents and Definition... 1
Chapter 2 Company Profile and Main Financial Index....5
Chapter 3 Management Discussion and Analysis ........10
Chapter 4 Corporate Governance ......................37
Chapter 5 Environmental and Social Responsibility ...58
Chapter 6 Important Matters ........................ 67
Chapter 7 Share Changes and Shareholder Informatio.. 72
Chapter 8 Preference Shares ........................ 78
Chapter 9 Bonds .................................... 79
Chapter 10 Auditor’s Report ........................ 82
2Chongqing Changan Automobile Company Limited 2023 Annual Report
Documents Available for Reference
I. Financial statements carrying the signatures and seals of the Company’s legal representative the Chief Financial
Officer and the person-in-charge of the accounting organ.Ⅱ. The 2022 Auditor’s Report stamped by the accounting firm and signed and stamped by chartered accountants.Ⅲ. During the reporting period the original copies of all company documents and announcements publicly
disclosed by the Company in China Securities Journal Securities Times Securities Daily Shanghai Securities
News and Hong Kong Commercial Daily.IV. Annual Reports disclosed in other securities markets.Definitions
Items Definitions
Changan Auto Changan
Refers to Chongqing Changan Automobile Co. Ltd.Automobile the Company
China South Industries Group Corporation the Company’s actual
CSG Refers to
controller
China Changan Automobile Group Co. Ltd. formerly known as China
China Changan Refers to
South Industries Automobile Co. Ltd. a subsidiary company of CSG
Chongqing Changan Industry (Group) Co. Ltd. formerly known as
Changan Industry Refers to
Changan Automobile (Group) Co. Ltd. a subsidiary company of CSG
Nanjing Changan Automobile Co. Ltd. a subsidiary company of the
Nanjing Changan Refers to
Company
Hebei Changan Automobile Co. Ltd. a subsidiary company of the
Hebei Changan Refers to
Company
Hefei Changan Automobile Co. Ltd. a subsidiary company of the
Hefei Changan Refers to
Company
Changan Bus Refers to Baoding Changan Bus Co. Ltd. a subsidiary company of the Company
Chongqing Changan Kaicheng Automotive Technology Co. Ltd.Changan Kaicheng Refers to formerly known as Kaicheng Automotive Technology Co. Ltd. a
subsidiary company of the Company
Chongqing Changan Automobile International Sale Service Co. Ltd. a
CIC Refers to
subsidiary company of the Company
Changan Ford Refers to Changan Ford Automobile Co. Ltd. a JV of the Company
Changan Mazda Refers to Changan Mazda Automobile Co. Ltd. a JV of the Company
CME Refers to Changan Mazda Engine Co. Ltd. a JV of the Company
Jiangling Holding Refers to Jiangling Holding Co. Ltd. an associate of the Company
Changan Finance Refers to Changan Automobile Financing Co. Ltd. an associate of the Company
China South Industries Group Finance Co. Ltd. a subsidiary company of
CSG Finance Refers to
South Industries
3Chongqing Changan Automobile Company Limited 2023 Annual Report
United Prosperity Investment Co. Ltd. a subsidiary company of China
UPI Refers to
Changan
Chongqing Changan Technology Co. Ltd. a subsidiary company of the
Changan Technology Refers to
Company
Deepal Automotive Technology Co. Ltd. a subsidiary company of the
Deepal Auto Refers to
Company
Avatr Refers to Avatr Technology (Chongqing) Co. Ltd. an associate of the Company
4Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 2 Company Profile and Main Financial Indexes
I. Basic Information
Stock abbreviation Changan Automobile Changan B Stock Code 000625 200625
Listed on Shenzhen Stock Exchange
Company name in Chinese 重庆长安汽车股份有限公司
Chinese abbreviation 长安汽车
Company name in English Chongqing Changan Automobile Co. Ltd.Legal representative Zhu Huarong
Registered address No. 260 East Jianxin Road Jiangbei District Chongqing
Post code of the registered
address 400023
No. 260 East Jianxin Road Jiangbei District Chongqing.Office address
Building T2 No. 2 Financial City No. 61 Dongshengmen Road Jiangbei District Chongqing.Post code of the office address 400023
Website http://www.changan.com.cn
E-mail address cazqc@changan.com.cn
Ⅱ. Contact Information
Secretary of the Board of Directors Securities affairs representative
Name Zhang Deyong Li Jun Jie Zhonghua
Building T2 No. 2 Financial City No. 61 Building T2 No. 2 Financial City No. 61
Contact address Dongshengmen Road Jiangbei District Dongshengmen Road Jiangbei District
Chongqing Chongqing
TEL 023-67594008 023-67594008
FAX 023-67870261 023-67870261
E-mail address cazqc@changan.com.cn jiezh@changan.com.cn
Ⅲ. Information Disclosure and Filing Site
Stock exchange website where this Report is disclosed http://www.szse.cn
Media and website where this Report is disclosed China Securities Journal Securities Times Securities Daily ShanghaiSecurities News Hong Kong Commercial Daily and www.cninfo.com.cn
Place where this Report is lodged Board Office of the Company
IV. Changes of Registration Information
Organization Code 9150000020286320X6
Changes in the main business since the
Company’s listing Not applicable
1. In December 2005 according to the restructuring program on automobile business
Changes of controlling shareholder since the Company’s actual controller CSG transferred all state-owned shares of Changan
incorporation (if any) Automobile (Group) Company Limited (“Changan Group”) as part of funding for China
South Industries Automobile Co. Ltd. In March 2006 all shares held by Changan
5Chongqing Changan Automobile Company Limited 2023 Annual Report
Group have been transferred to China South Industries Automobile Co. Ltd. China
South Industries Automobile Co. Ltd. became the majority shareholder of the Company
and Changan Group holds zero share since then.
2. In July 2009 with the approval of State Administration for Industry and Commerce
“China South Industries Automobile Co. Ltd.” changed its name to “China ChanganAutomobile Group Co. Ltd.”. No change occurred in its property ownership and
control of the Company.
3. In February 2019 “China Changan Automobile Group LLC” changed its name to
“China Changan Automobile Group Co. Ltd.” with the approval of Beijing
Administration for Industry and Commerce. The company changed from a joint stock
company to a limited liability company.V. Other Relevant Information
The audit firm employed by the Company
Name Lixin Certified Public Accountants (Special General Partnership)
Office address 4th Floor No. 61 Nanjing East Road Huang pu District Shanghai China
Accountants writing signatures Zhu Yuqin Wang Kai
The independent sponsor employed by the Company to exercise constant supervision over the Company in the reporting period
√ Applicable □Not applicable
Name Office address Sponsorrepresentative Supervision period
CITIC Securities Co. 21st Floor CITIC Securities Building No. 48 He Yang Chen October 26 2020 - December
Ltd. Liangmaqiao Road Chaoyang District Beijing Shumian 31 2021
Note: CITIC Securities Co. Ltd. is the recommendation institution for the continuous supervision of the company's non-public
offering of shares in 2020.The independent financial advisor employed by the Company to exercise constant supervision over the Company in the reporting
period
□ Applicable √ Not applicable
VI. Key Accounting Data and Financial Indexes
Does the Company need to retrospectively adjust or restate the accounting data of previous years
√ Yes □ No
Reason:Changes in accounting policies
YoY
2022 change 2021
2023(%)
Original Restated Restated Original Restated
Operating revenue
(RMB) 151297706646.97 121252864085.40 121252864085.40 24.78% 105141877237.05 105141877237.05
Net profit attributable to
shareholders of the 11327463013.15 7798451093.72 7798785367.38 45.25% 3552463320.03 3552631696.73
Company (RMB)
Net profit after
deduction of
non-recurring gains or
losses attributable to 3781846729.11 4458919314.80 3254790124.46 16.19% 1652771338.77 697701167.57
shareholders of the
Company(RMB)
Net cash flow from
operating activities 19861466237.56 5666346858.52 5666346858.52 250.52% 22971723210.84 22971723210.84
(RMB)
Basic earnings per share
(RMB/share) 1.15 0.80 0.80 43.75% 0.36 0.36
Diluted earnings per
share (RMB/share) 1.13 0.78 0.78 44.87% 0.36 0.36
6Chongqing Changan Automobile Company Limited 2023 Annual Report
Weighted average ROE
(%)16.55%13.07%13.07%3.48%6.53%6.53%
YoY
31 December 2022 change 31 December 2021
31 December 2023 (%)
Original Restated Restated Original Restated
Total assets (RMB) 190171127138.27 146048555951.92 146049068075.25 30.21% 135404623479.63 135404791856.33
Net assets attributable to
shareholders of the 71853119985.49 62858105705.70 62858608356.06 14.31% 55732932103.72 55733100480.42
Company (RMB)
Reasons for changes in accounting policies:
From January 1st 2023 the provisions of the Interpretation No. 16 of the Accounting Standards for Business Enterprises will be
implemented and the information for comparable periods will be adjusted. For details please refer to "(31) Changes in Significant
Accounting Policies and Accounting Estimates" in Note 3 "Important Accounting Policies and Accounting Estimates" to the
financial statements.The lower of the Company’s net profit before and after deduction of non-recurring gains and losses in the most recent three fiscal
years is negative and the audit’s report of last year shows that the Company’s ability to continue operations is uncertain.□Yes √ No
The lower of the net profit before and after non-recurring gains and losses is negative.□Yes √ No
VII. The Differences between Chinese Accounting Standards and International Financial
Reporting Standards
1. Differences in net profit and net asset attributable to shareholders in financial report disclosed in
accordance with International Financial Reporting Standards and Chinese Accounting Standards
□ Applicable √ Not applicable
No difference during the reporting period.
2. Differences of net profit and net assets disclosed in financial reports prepared under Overseas Financial
Reporting Standards and Chinese Accounting Standards
□ Applicable √ Not applicable
No difference during the reporting period.
3. Reasons for differences in accounting data under Chinese Accounting Standards and International
Financial Reporting Standards
□ Applicable √ Not applicable
VIII. Key Financial Indexes of 2023 by Quarter
Unit: RMB
First Quarter Second Quarter Third Quarter Forth Quarter
Operating revenues 34556094707.75 30936004161.26 42714220563.67 43091387214.29
Net profit attributable to shareholders of the
Company 6970203078.41 682776268.39 2229425232.97 1445058433.38
Net profit attributable to shareholders of the
Company after deducting non-recurring gains 1481090757.20 27967266.80 2103408917.03 169379788.08
and losses
Net cash flow from operating activities 3383283790.67 3572172922.92 10523163408.37 2382846115.60
Whether there are significant differences between the above-mentioned financial indexes or its total number and the relevant
7Chongqing Changan Automobile Company Limited 2023 Annual Report
financial indexes disclosed in the Company’s quarterly report and semi-annual report
□ Yes √ No
IX. Items and Amounts of Non-Recurring Gains and Losses
√ Applicable □Not applicable
Unit: RMB
Items 2023 2022 2021 Explanation
Gains or losses on disposal of
non-current assets (inclusive of 441000628.40 74862481.00 745601530.26
impairment allowance write-offs)
Government subsidies charged to
current gains or losses (exclusive
of government subsidies given in
the Company’s ordinary course 1463381979.58 1134358181.32 1335952105.80
of business at fixed quotas or
amounts as per the government’s
uniform standards)
In addition to the effective
hedging business related to the
normal operation of the
company the fair value change
gains and losses arising from the
holding of financial assets and -955029.68 3570229.29 42078804.00
financial liabilities by
non-financial enterprises and the
gains and losses arising from the
disposal of financial assets and
financial liabilities
The company formed a non common
control enterprise merger through
additional investment in the original joint
venture Shenlan Automobile (formerly
Chongqing Changan New Energy Vehicle
Technology Co. Ltd.) as detailed in the
Announcement on the Acquisition of
Partial Equity of Changan New Energy
(Announcement No. 2022-78). The equity
Income generated from mergers delivery procedures for this transaction
of enterprises not under the same 5021482128.74 were completed on February 1 2023.control Please refer to the Progress Announcement
on Acquiring Partial Equity of Chang'an
New Energy (Announcement No.:
2023-05) for details. According to Article
48 of Enterprise Accounting Preparation
No. 33- Consolidated Financial
Statements the company recognized an
investment income of 5.021 billion yuan in
the first quarter of 2023 based on the
financial information on the purchase date.Capital occupation fees charged
to non-financial enterprises 66074620.29 40505154.81 11853260.69
through profit or loss for the
current period
Gains and losses on entrusted 6959316.00
loans
Reversal of impairment 21286713.50 2847641.57
provision for accounts receivable
8Chongqing Changan Automobile Company Limited 2023 Annual Report
subject to separate impairment
testing
Gains from remeasuring
remaining equity at fair value 2128313646.36
after losing control
Other non operating income and
expenses other than the above 141715255.35 77519377.00 90085373.52
items
Other profit and loss items that
meet the definition of non 673232447.45 1204463464.00 955238547.90
recurring gains and losses (note)
Minus: influenced amount of 255466128.30 94817746.44 196630848.39
income tax
Non-controlling interests 26136331.29 27627185.99 136207560.62
effects (after tax)
Total 7545616284.04 4543995242.92 2854930529.16
Particulars about other gains and losses that meet the definition of non-recurring gain/loss
√ Applicable □ Not applicable
Note: In this year due to the implementation of the Interpretation Announcement No. 1 on Information Disclosure of Companies
Issuing Securities to the Public - Non recurring Gains and Losses in accordance with the spirit of the announcement documents
adjustments have been made to the non recurring gains and losses of the invested units accounted for under the equity method from
2021 to 2022 based on their respective shares.
Explanation of why the Company reclassifies non-recurrent gain/loss as a recurrent gain/loss item listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gain/Loss
Items
□ Applicable √ Not applicable
No such cases for the reporting period.
9Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 3 Management Discussion and Analysis
I．Industry Overview in 2023
1. The industry analysis
In 2023 the global economic growth rate slowed down the world economic recovery still has uncertainty. At the same time
2023 was also the beginning year of fully implementing the spirit of the 20th National Congress of the Communist Party of China.
This year China’s economy has rebounded and high-quality development has been solidly promoted. Although there were still
unfavorable factors such as insufficient effective demand and weak social expectations the favorable conditions for China’s
development were stronger than the unfavorable factors and the basic trend of economic recovery and long-term improvement has
not changed. This year with the gradual economic recovery and further release of consumer demand the high-quality development
of the automotive industry has achieved new results. The annual production and sales scale continue to expand with double-digit
year-on-year growth effectively driving domestic economic growth. The specific industry situation during the reporting period is as
follows:
The automotive industry has exceeded 30 million units in cumulative production and sales in 2023 with sales reaching 30.094
million units a year-on-year increase of 12.0%. The overall market sales throughout the year showed a fluctuating upward trend
competitive landscape is constantly intensifying.From the perspective of segmented markets the cumulative sales of passenger cars reached 26.063 million units a year-on-year
increase of 10.6%. The cumulative sales of commercial vehicles reached 4.031 million units a year-on-year increase of 22.1%
significantly better than the overall industry and showing a significant recovery momentum.The performance of the new energy vehicle market remained impressive continued to maintain strong growth momentum. In
2023 the sales of new energy vehicles reached 9.495 million units a year-on-year increase of 37.9%. From the perspective of
segmented markets with the continuous efforts of the supply side within the year and the marginal impact of the EV scale growth
the growth rate of XEV models of the narrow definition passenger vehicles was significantly higher than that of EV models and the
sales proportion of XEV of the narrow definition passenger vehicles has increased by 4.3 percentage points year-on-year. The main
share of the narrow definition new energy passenger car market was still dominated by Chinese brands with Chinese brands
supporting 80% of its share. It is worth noting that from the sales ranking of the new energy narrow definition passenger car group
the market pattern has changed compared to 2022. In the EV sector the market share of industry leading enterprises has increased
year-on-year and the concentration has further increased; In the XEV sector with the continuous influx of new entrants the market
share of top companies has loosened and was gradually being eroded by newcomer companies. It can be foreseen that the existing
competitive landscape may be further restructured.The export of automobiles has reached a new level with over 4.9 million vehicles exported throughout the year making a
significant contribution to the overall market growth. Among them the export of new energy vehicles exceeded 1.2 million units a
year-on-year increase of over 70%. Among the top ten enterprise groups in terms of export sales most of them have achieved
double-digit or higher year-on-year growth in export volume. Meanwhile the sales concentration of the top ten enterprise groups in
the industry decreased by 3.9 percentage points year-on-year indicating that as more and more enterprises accelerate their overseas
expansion the export market pattern may further change.
10Chongqing Changan Automobile Company Limited 2023 Annual Report
Source: The above data/information comes from the “China Automobile Industry Production and Sales Express” published by the
China Association of Automobile Manufacturers and its industry information release
2. Changan Auto’s performance
In 2023 facing complex and severe external environments and increasingly intense market competition Changan deeply
implemented and studied the spirit of the Party’s 20th National Congress fully implemented Xi Jinping Thought on Socialism with
Chinese Characteristics for a New Era firmly promoted “The Third Business Venture- Innovation & Entrepreneurship Program” and
pushed forward the “Three Major Plans” (Electrification-“Mission Of Shangri-La” Intelligence-“Dubhe Plan” and
Globalization-“Vast Ocean Plan”) . By overcoming various risks and challenges such as market changes industry adjustments and
intensified competition Changan Automobile has ensured overall stability in market share and has successfully completed the annual
production and business objectives and tasks. In 2023 the company achieved a total sales volume of 2.553 million vehicles a
year-on-year increase of 8.8%. The company’s new energy and export sales has a excellent performance with the self-owned brand
new energy vehicles selling 474045 units annually a year-on-year increase of 74.8%; exports reached 358454 units a year-on-year
increase of 43.9%.
3. Industrial policiesJuly 20th 2023 the National Development and Reform Commission and other 13 departments issued “Several Measures toPromote Automobile Consumption” including optimizing automobile purchase restrictions supporting the update consumption of
aged automobiles accelerating the development of the used car market strengthening the construction of new energy vehicle
supporting facilities focusing on improving the carrying capacity of rural power grids reducing the cost of purchasing and using new
energy vehicles promoting the increase in the procurement quantity of new energy vehicles in public areas strengthening financial
services for automobile consumption encouraging automobile enterprises to develop economy-friendly models and continuously
alleviating parking difficulties and chaos.
4. Major laws and regulations
(1) Market access
Intelligent connected vehicles are a strategic direction for the development of the automobile industry. China attaches great
importance to the technological innovation and application of intelligent connected vehicles. On November 17 2023 the Ministry of
Industry and Information Technology (MIIT) the Ministry of Public Security (MPS) the Ministry of Housing and Urban-RuralDevelopment (MOHURD) and the Ministry of Transportation (MOT) jointly issued the “Notice on Carrying out Pilot Work forMarket Access and Road Access of Intelligent Connected Vehicles”. Changan Automobile is applying for the pilot program and the
application proposal has been submitted to the authorities.
11Chongqing Changan Automobile Company Limited 2023 Annual Report
(2) Standards
Changan ’ s vehicle models are in strict accordance with` the national regulations and standards for development and
manufacturing. All of Changan’s products are in line with the regulations and standards. As for the new standards that have been
implemented Changan has completed the product upgrade and switch according to the time requirements among which the
standards for 2023 are as follows.
(A) GB 17675-2021 “Basic Requirements for Automotive Steering System” was released in February 2021. For vehicles
applying for type approval it has been effective since January 1 2022. For models that already had type approval it has been
effective since January 1 2023. This standard defines the term definition technical requirements and test methods of automobile
steering system and adds that the electrical control of steering system should meet the requirements of electromagnetic compatibility
functional safety failure alarm etc.
(B) GB 39732-2020 “Automobile Event Data Recording System” was released in December 2020. Vehicles applying for type
approval from January 1 2022 shall meet the requirements of this standard except for the elements of class B and article 4.4 and
from January 1 2024 shall meet all the requirements. The standard mainly specifies the terms and definitions technical requirements
test methods appearance and marking of automobile event data recording system.
(C) GB 19578-2021“The Fuel Consumption Limits for Passenger Vehicles”was issued in February 2021 and has been applied
to vehicles that already had type approval since January 1 2023. The standard mainly specifies the fuel consumption limit
requirements based on the total mass of passenger vehicles under WLTC cycle conditions.
(D) GB 9656-2021 “Technical Specification for Glass Safety of Motor Vehicles” was issued in April 2021. From January 1
2023 the glass of vehicles applying for type approval shall meet the requirements of field of vision safety strength safety and
damage safety etc.
(E) GB 16897-2022 “Brake Hose Structure Performance Requirements and Test Methods” was released in August 2022. For
vehicles applying for type approval it has been effective since January 1 2023. For models that already had type approval it has
been effective since July 1 2023. This standard mainly adds the hydraulic brake hose fast tensile strength pneumatic brake hose
flexure fatigue requirements etc.
(F) GB 15084-2022 “Performance and Installation Requirements for Indirect Vision Devices of Motor Vehicles” was released
in December 2022. The standard mainly adds the requirements for the use of electronic rearview mirrors frameless rearview mirrors
etc. The standard has been effective since July 1 2023 for vehicles applying for type approval.(G) GB 18352.6-2016 “Pollutant Emission Limits and Measurement Methods for Light-Duty Vehicles (China Stage 6)” was
released in December 2016 which stipulates the requirements for the type inspection of pollutant emission of light-duty vehicles in
Stage 6 the requirements for production consistency and in-use conformity inspection and the method of determination. Starting
from July 1 2023 all light-duty vehicles sold and registered shall comply with the requirements of this standard of which the Type I
test shall comply with the requirements of the Stage 6b limits and the Type II test (RDE) shall comply with the limits. On May 8
2023 the Ministry of Ecology and Environment the Ministry of Industry and Information Technology the Ministry of Commercethe General Administration of Customs and the State Administration for Market Regulation jointly issued the “Announcement onMatters Relating to the Implementation of the National VI Emission Standard for Automobiles” which permits the sale of some
light-duty vehicle National VIb models with“test only”results from the real driving emissions (RDE) test until December 31 2023.(H) GB 4785-2019“Installation Requirements for Exterior Lighting and Light Signaling Devices for Automobiles and Trailers”
was published in December 2019. From July 1 2023 for vehicles applying for type approval when equipped with daytime running
lights and operating as specified the low beams shall be automatically turned on or off in accordance with the standard requirements
depending on the environmental conditions.II. Analysis of Core Businesses in 2023
As an automobile manufacturer Changan Automobile’s businesses cover R&D manufacturing and sales of vehicles as well as
the R&D and production of engines. At the same time we proactively develop new businesses such as mobility car services new
marketing and sales and battery swapping and steps up efforts in exploring finance used cars and other fields to build a
comprehensive industrial ecology.Changan always adheres to the mission of “leading auto culture and benefiting human life” firmly promotes the “ThirdBusiness Venture — Innovation & Entrepreneurship Program” accelerates the transformation towards an intelligent low-carbon
mobility technology company and strives to build itself into a world-class auto brand. Changan actively develops intelligent
connected new energy vehicles and has established five major independent automobile brands: AVATR DEEPAL NEVO UNI and
Kaicheng promoting the electrification transformation of self-owned brands. At the same time joint venture companies such as
Changan Ford and Changan Mazda produce and sell joint venture brand models. In the field of ICE vehicles Changan has launched a
series of classic self-owned brand models including the CS series EADO series UNI series etc. The joint ventures have multiple
well-known products including EDGE L Explorer the all-new Mondeo the all-new Nautilus Corsair Zephyr CX-50 CX-5 and
Axela. In the field of new energy vehicles Changan has made great efforts to create NEV models such as the AVATR 11 AVATR 12
DEEPAL SL03 DEEPAL S7 NEVOA07 Lumin which are highly popular in the market and loved by consumers.Changan adopts the business model of “equal emphasis on self-owned and joint venture brands” and carries out entity operation
of its own auto brand business such as UNI NEVO DEEPAL and Kaicheng and firmly builds its own classic brands. We manage
investment over joint ventures such as Changan Ford and Changan Mazda and continue to deepen mutual trust and cooperation with
12Chongqing Changan Automobile Company Limited 2023 Annual Report
partners.
1. The Company’s business development in 2023
(1) Adhere to strategic orientation and solidly promote strategic transformation
In 2023 Changan worked together with its partners to vigorously implement strategy. The “Mission of Shangri-La” for
electrification has taken a new step forward building and forming three intelligent NEV brands: AVATR DEEPAL and NEVO
which laid a brand foundation for global competition in the future. Changan also actively optimized its industrial layout and
explored in-depth cooperation throughout the battery industry chain. Times Changan Power Battery Co. Ltd. a joint venture
established by Changan and CATL has officially started production with a designed production capacity of 30GWh and an
automation rate of over 95%. The “Dubhe Plan” for intelligent development has made new breakthroughs continuously building a
“new automobile and new ecosystem”. The third Science and Technology Ecosystem Conference was held and the first digital
intelligent car CD701 based on the SDA platform architecture was officially unveiled and the central + zonal ring network
architecture entered the vehicle integration verification stage opening a new era of digital cars. Changan signed a Memorandum of
Investment Cooperation with Huawei which will accelerate the construction of a complete autonomous and leading full-stack
intelligent vehicle capability for the intelligent era. New progress was achieved in the “Vast Ocean Plan” for global business. Five
global business units were established. DEEPAL S07 DEEPAL L07 were officially launched in Thailand embarking on a new
journey into the Southeast Asian market. The construction of factory in Thailand has begun and the global production layout has
entered a new stage.
(2) Adhere to innovation-driven development and continue to produce key core results
In 2023 Changan Automobile has launched 29 products in total including 7 brand-new products and the product line-up was
continuously improved. AVATR 12 made its global debut at the Munich IAAMobility and it has received more than 20000 orders in
the first month after its launch with an average order price of more than 350000 yuan which has gradually made a stable stance in
the premium market. DEEPAL S7 went to market equipped with the latest-generation CTP technology. In the 2023 Tour of Qinghai
Lake (International) Electric Vehicle Rally it won the championship in six categories including the best range and its average
monthly sales volume exceeded 5000 units. NEVO A07 and Q05 were released successively making the product supply even more
sound; and the launch of the world’s first super range-extended pickup truck Changan Hunter attracted widespread attention.Continuously mastering the core technology of new energy vehicles Changan has released a new self-developed battery brand—
Changan “Golden Shield”. The entire Changan battery series uses high standard new insulation materials with insulation
performance superior to industry standards. The first standard battery cell product of Times Changan Power Battery has been
officially launched with advanced manufacturing technology and battery performance in the industry. It integrates 4C fast charging
technology and the battery can be charged from 20% to 80% in just 10 minutes. Changan also launched industry-leading
technologies such as high-frequency pulse heating next-generation battery integration and new high-efficiency thermal management.Intelligent technology achievements continued to turn results. NID3.0+APA7.0 Navigation Technology was mass produced on
DEEPAL’s two models helping DEEPAL SL03 win the gold medal in the 2023 World Intelligent Driving Challenge. Changan
successfully obtained 17 L3 autonomous driving test licenses for high-speed highways becoming the earliest enterprise that obtained
the most test licenses in a single batch. The National Key Laboratory of Intelligent Vehicle Safety Technology has been approved to
operate promoting the development of high-value technologies such as intelligent safety driving and high safety onboard chips.
(3) Adhere to the user-centered and product-oriented approach and quickly carry out market response
actionsChangan actively invested marketing resources to cope with industry competition and launched the “Changan Preferential CarPurchase Season” activity ensuring the stability of Changan’s automotive industry position. We innovatively revitalized the ICE
market achieving a strong market share in segments. Changan ranked first in the Chinese brand passenger car market (retail) with
sales of over 190000 units for the CS75PLUS series ranking among the top in its segment. The sales of EADO PLUS have
exceeded 160000 units ranking first in the retail market segment The sales of UNI-V exceeded 156000 units with an average
monthly sales of over 12000 units. Rapidly advancing in the new energy market the annual sales of DEEPAL’s two vehicle models
exceeded 128000 units. Among them the DEEPAL SL03 won the German Red Dot 2023 Product Design Award. Within two months
NEVO launched three new cars setting industry records. Within three months of launch the cumulative sales volume reached 40000
units rapidly occupying the market share in the intelligent new car track. The annual sales of Changan Lumin a popular commute
vehicle exceeded 144000 units ranking among the top in its segment. Changan’s global brand communication has been gradually
strengthened and the “Belt and Road Global Tour” has been carried out jointly with Xinhua News Agency to show the world the new
image of “Made in China Intelligently” enhance the international influence of the brand. We have promoted the transformation of the
marketing system deepened the development model of thousands of channels implemented the “three centers” marketing model
reform built over 4000 new order delivery and service centers throughout the year formed more than 9000 global sales and
service outlets and had nearly 120000 professional service personnel. Changan ranked first in J.D. Power’s 2023 China Sales and
Service Satisfaction (SSI) among Chinese brands.
13Chongqing Changan Automobile Company Limited 2023 Annual Report
(4) Adhere to the user-centered and product-oriented approach and quickly carry out market response
actions
Changan continuously deepened partnership Changan Ford New Energy Vehicle Technology Co. Ltd. was established and its
first strategic product CX810 was being proceeded in an orderly manner. We established closer communication mechanisms with
Mazda cooperated on multiple vehicle projects such as J90A and J90K and continuously extended the scope of cooperation.Changan established Chongqing Changxian Intelligent Technology Co. Ltd. with Horizon and signed strategic cooperation
agreements with 15 partners including Huawei Tencent SMIC and China Mobile as well as carried out strategic cooperation with
more than 30 leading enterprises such as CATL Ganfeng Lithium Industry and Baidu focusing on high-value technology
breakthroughs and building core competitiveness in the new energy and intelligent fields.
2. Blockbuster products to be launched in 2023
AVATR 12 jointly built by Changan Huawei and CATL is
positioned as a “future smart premiums sedan” and is the second
model built on CHN’s new-generation smart electric vehicletechnology platform. Designed with the concept of “futureaesthetics” it has a unique shape and is extremely elegant. It
comes standard with three lidars equipped with the HUAWEI
ADS 2.0 high-end intelligent driving assistance system and the
Harmony cockpit developed based on HarmonyOS 4.AVATR 12
DEEPAL S7 is the first SUV built based on the EPA1 all-electric
digital platform which is equipped with a super range-extender
system with pure electric drive long battery life low energy
consumption and 190kW ultra-high power FORCE ultra-
integrated electric drive. The CLTC pure electric range is up to
200 kilometers and the comprehensive range is up to 1120
kilometers. DEEPAL S7 brings an unparalleled travel experience
to the users with its technological sports styling full-roof flow
lamp combination yacht-style wrap-around design and intelligent
ecosystem built on Qualcomm 8155 chip including
programmable intelligent interactive lamps intelligent cockpit
dual zero-gravity seats in the front row AR-HUD 15.6-inch
DEEPAL S7 sunflower screen.DEEPAL SL03i is the first mass-produced smart driving sedan of
DEEPAL brand which has a dynamic vehicle design leading
intelligent technology and powerful rear-wheel drive control.Equipped with NID high-speed navigation intelligent driving
assistance APA remote valet parking assistance 35 sensing
components and a high-precision sub-meter positioning system it
is powerful in sensor detection data calculation parking space
recognition and full-scenario driving assistance. At the same time
it is equipped with a full-sensory digital cockpit with
technological configurations such as efficient voice interaction
DEEPAL SL03i AR-HUD and 14.6-inch sunflower screen to satisfy a variety of
car usage scenarios for young people.
14Chongqing Changan Automobile Company Limited 2023 Annual ReportNEVO A07 is positioned as a “medium-to-large advanced digitalintelligent executive vehicle” and is available in both pure electric
and range-extended versions. It adopts Fuguang design aesthetics
and is equipped with a high-efficiency digital electric drive with a
maximum power of 190kW a peak torque of 320N·m and electric
drive efficiency up to 95%. The entire series comes standard with
L2 IACC intelligent pilot system and iBC digital battery
management system. It has 33 digital intelligence standard
features including frameless doors electric hatchback tailgate
4-door electronic inward opening Snapdragon 8155
high-performance chip and 540° full-field view image.NEVOA07NEVO A05 is positioned as a “digital intelligent AI electric drivesuper-saving family sedan”. It adopts a digitally intelligent bionic
smile front face and hidden door handles giving it a stylish and
pleasing appearance. The entire series is equipped with
configurations such as 13.2-inch high-definition touch console
screen L2 IACC integrated adaptive cruise control system and
540° high-definition panoramic images. It is equipped with NEVO
Digital Intelligence AI electric drive 1.5L high-efficiency
BlueCore hybrid engine iEM Intelligent Energy Management
Mode and IP67-grade high-strength protection battery which is
comprehensively capable of handling diversified family car
NEVOA05 scenarios in the digital intelligent era.NEVO Q05 is the first plug-in hybrid SUV of NEVO brand. The
exterior adopts a trendy inductive design and the interior adopts a
“sail” shape design. It has a smart cockpit and intelligent
configurations such as 540° high-definition panoramic images
steep slope vision assistance APA 5.0 and L2 intelligent assisted
driving system. The longest pure electric range can reach 125
kilometers and the comprehensive range 1215 kilometers.NEVO Q05The 2023 Changan UNI-V is positioned as a “future aestheticsports coupe”. Equipped with 2.0T+8AT and 1.5T+7DCT
BlueCore engines it brings consumers a brand new power
experience with stronger performance and smoother power output.UNI-V iDD (intelligent Dual Drive system) is equipped with a
maximum power of 125kW and the BlueCore NE1.5T hybrid
special engine has a peak torque of 260N·m. The system’s
comprehensive maximum torque is 590N·m the maximum
wheel-end torque is 4470N·m and the acceleration time from
zero to 100 kilometers is only 6.5 seconds with strong power.Changan UNI-V injects new vitality into the A+ class sedan
2023 Changan UNI-V market with its comprehensive advanced smart technology and
sports aesthetics.
15Chongqing Changan Automobile Company Limited 2023 Annual Report
The 2024 Changan UNI-K is a medium and large SUV that
integrates luxury comfort and intelligence. In terms of
appearance it has a technical and fashionable spacious interior
sporty and exquisite new wingspan quilting and 64-color stepless
adjustment of front and rear ambient lights showing a sense of
luxury; in terms of powertrain with the BlueCore new generation
2.0T+8AT power combination it provides strong power output
and smooth shifting experience.
2024 Changan UNI-KThe 3rd-generation CS55PLUS has become a “100000 yuan-levelpremium SUV for home enjoyment” with its good looks good
fuel efficiency good intelligence and good quality making the
CS55 series more competitive. The entire series is equipped with
new generation BlueCore NE 1.5T engine L2 intelligent assisted
driving system steep slope vision assist function 540°
high-definition panoramic image and other practical intelligent
features which are more practical and considerate.The 3rd-generation CS55PLUSThe 3rd-generation CS75PLUS is positioned as the “FutureVehicle”. The entire series is equipped with an Aisin 8-speed
automatic transmission offering two power options i.e. BlueCore
new generation NE 1.5T engine and 2.0T engine. It has four
driving modes (Normal/ECO/Sport/Custom) to create a more
personalized driving experience.The 3rd-generation CS75PLUS
Changan LAMORE is positioned as a “compact family sedan”.With a brand new design language it is equipped with a source
code digital front grille digital cursor LED light group and
hidden door handles etc. Mounted with BlueCore new generation
NE1.5T high-pressure direct injection engine 7-speed wet dual
clutch transmission 540° high-definition panoramic imaging
IMS/DMS intelligent cabin monitoring system and super large
intelligent interactive dual screens it provides users with a
comfortable considerate and high-quality driving experience.Changan LAMORE
16Chongqing Changan Automobile Company Limited 2023 Annual ReportChangan HUNTER PRO is positioned as a “sporty off-roadpickup truck”. Equipped with 2.0T BlueCore power ZF 8-speed
automatic transmission BorgWarner four-wheel drive system five
free driving modes and high-performance off-road suspension all
terrain locking system 18 inch all terrain off-road tires a
maximum 800mm high wading hose 14000 pound electric
winch and a 2.5-ton towing qualification it delivers the desired
pickup truck life for users who are brave in exploration and full of
passion.Changan HUNTER PRO
3. Key models planned for 2024
In 2024 the company will launch a number of new and modified products including more than 8 new energy products
accelerating the pace of transformation towards an intelligent low-carbon mobility technology company.
(1) Strengthen the new energy vehicles line-up and create new digital and intelligent vehicles. In 2024 a total of eight new
products such as E07 C798 DEEPAL G318 AVATR 15 and modified products such as NEVO A07 DEEPAL SL03 DEEPAL S7
will be launched one after another which will further strengthen Changan’s position in the new energy market. E07 is positioned as a
medium and large digital intelligence new vehicle based on SDA platform with variable body shape leading intelligent driving and
intelligent services to provide users with outdoor mobile third space. C798 is positioned as a new benchmark for medium and large
SUVs to create digital intelligence products with superior digital intelligence leapfrog space leading comfort and leading electric
drive to meet the needs of mainstream family users. DEEPAL G318 is positioned as an off-road compact SUV with tough styling
intelligent driving intelligent interaction and intelligent ecology as the highlights to meet the differentiated and intelligent needs of
young users. AVATR 15 is positioned as a high-end multi-person smart electric vehicle with forward-looking styling design
changeable smart space and full-scene intelligent driving as the product selling points to meet the full-scene travel needs of high-end
smart electric vehicle users.
(2) Consolidate the foundation and expand new market for ICE vehicle products to lead in their market segments. In
2024 Changan ICE vehicles will focus on the core market and all IP products will be renewed to create blockbuster products. The
company will launch five new products including C928 and EADO series focusing on the two labels of “BlueCore Power” and
“Standard Intelligent Driving” to further strengthen their competitive leadership and consolidate their position in ICE vehicle market.C928 is positioned as a compact classic SUV with a new exterior design second-generation BlueCore power and standard intelligent
driving providing users with high-quality and efficient travel tool that is “good-looking easy to drive and energy-saving”.Note: The features and configurations mentioned in “II. Analysis of Core Business in 2023” in Chapter 3 are not a true
representation of the features and configurations of actual vehicles. The actual configuration and functions of the model shall be
subject to the official product configuration table.Vehicle manufacturing production and operation during the reporting period
√ Applicable □ Not applicable
Production and sales of vehicles
Production Volume (Unit) Sales Volume (Unit)
YoY YoY
2023 2022 increase/decrease 2023 2022 increase/decrease
(%)(%)
By Region
Domestic 2583215 2298419 12.39% 2194598 2096982 4.66%
Overseas 0 0 0 358454 249169 43.86%
Note: 1. The above sales and production volume includes vehicles produced and sold by the Company and its JVs and associates.
2. Production capacity: In 2023 the design capacity is 2.14 million vehicles. The capacity utilization rate reached 87.31%. In
the past three years the backward production capacity for 0.63 million vehicles and 0.99 million engines have been shut down.Upgrade the capacity for 0.57 million intelligent connected and new energy vehicles and build 0.21 million sets for PACK 0.45 sets
for electric drive and 0.3 million sets for electric control production capacity. The capacity structure is gradually adjusted to new
energy.Cause description of over 30% year-on-year increase/decrease
√ Applicable □ Not applicable
17Chongqing Changan Automobile Company Limited 2023 Annual Report
Mainly due to the following reasons: firstly Chinese automotive companies are increasingly valuing the development of
overseas markets and accelerating their "overseas" layout speed; Secondly in recent years Chinese brands represented by Changan
Automobile have gradually established competitive advantages in the fields of new energy and intelligence and their comprehensive
product strength has significantly increased; Thirdly the large-scale export of new energy vehicles drives the overall export growth.Construction of parts supporting system
Changan Automobile’s main models such as the CS series UNI series AVATR DEEPAL and NEVO are equipped with parts
that combine in-house production and external procurement. Key components such as Changan new generation 7-in-1
ultra-integrated electric drive (industry first 163 patents) are independently developed by the company which can effectively control
costs and enhance the quality control of key parts through self-production; We have cooperated with over 800 international and
domestic first-class parts and components enterprises such as Huawei autonomous driving and intelligent cockpit CATL new energy
battery Chongqing Qingshan Industry 7-speed wet dual clutch transmission TINNOVE intelligent system etc. We have established
a cooperative relationship of mutual trust transparency and collaboration with partners concentrating on “optimal product” “lowestcost” “strongest flexibility” and “strongest partnership” to build an independent controllable safe and reliable supply chain.Our supplier system capability was solidly improved and more than 1322 people studied QCA (Changan Automobile Supplier
Quality Capability Assessment System) series courses. We completed 72 QCA certification audits 87 supplier laboratory
accreditation and 114 on-site evaluation of manufacturing process capabilities in 2023. We established quality capability evaluation
strategies and implemented hierarchical management to continuously promote the improvement of supplier quality management
capabilities.The production and operation of auto parts during the reporting period
□Applicable √ Not applicable
The company conducts auto finance business
□Applicable √ Not applicable
The company conducts NEV-related business
√ Applicable □ Not applicable
Production and operation of new energy vehicles and parts
By Category Production Capacity(unit) Production Volume (unit) Sales Volume (unit)
New Energy Passenger Vehicle 1200000 450087 439531
New Energy Commercial Vehicle 170000 35287 34514
Note: The revenue from the sales of new energy vehicles within the scope of the company's consolidated financial statements is RMB
38545 million in the reporting period.
III. Core Competence Analysis
(1) Scientific and technological R&D capability. The company has always insisted on leading high-quality development with
scientific and technological innovation. It has realized a number of industry-leading technologies and initiated mass production based
on the driving force featuring “user demand + technological innovation” and has further strengthened its independent innovation
capability. In the field of new energy technology the first standard electric core product of Changan’s “Golden Shield” officially
rolled off the production line equipped with a number of cutting-edge technologies in the industry such as “fast-ion ring graphite”
and “ultra-high-conductivity electrolyte”. The “Golden Shield” battery has been installed in many products of NEVO and DEEPALAutomobile; Force ultra-integrated electric drive and intelligent dual drive (iDD) transmission have been awarded “World’s Top 10Electric Drive” “World’s Top 10 New Energy Vehicle Powertrain” and “World’s Top 10 Hybrid Powertrain”. The key technology of
hydrogen fuel engine gained another milestone which means that the second generation of hydrogen engine was successfully ignited.In the field of intelligence the first digital intelligent new car equipped with the SDA platform architecture labeled “Smart Brain”
“Smart Body” and “Smart Service” made its debut. We have made breakthroughs in APA 7.0 remote valet parking NID 3.0
navigation assisted driving end-to-cloud integrated communication display enhancement and other technologies. Some of these
technologies have already been mass-produced and deployed. As of December 2023 the company owned 9322 domestic and
international patents including 2704 invention patents. Its R&D strength has ranked first in the industry in the evaluation of national
enterprise technology centers for seven consecutive terms spanning 14 years.
(2) Product definition capability. The company adheres to a user-centric and innovation-driven approach to build a world-class
product definition capability system. Against the backdrop of increasingly diversified user demands and market changes the product
18Chongqing Changan Automobile Company Limited 2023 Annual Report
definition business breaks traditional rules by disrupting and leapfrogging innovation reconstructing the product definition capability
system and facilitating faster more accurate and more aggressive product-definition. The company optimizes its user research
insight capabilities by adopting innovative and immersive research methods to uncover users’ implicit needs ensuring more precise
user insights. It also optimizes product-definition capabilities by continuously improving and advancing EMD (Experience-Driven
Design) scenario definitions creating high-value differentiated scenarios. Additionally it introduces software service definitions to
build unified iterative and profitable platform-oriented software service products ensuring differentiation in homogeneous
competition. In 2023 the company’s key products performed well with Changan’s ICE vehicle UNI achieving sales exceeding one
million units. The CS75 series and EADO series performed excellently in their respective segments of the ICE vehicle market. New
energy products experienced rapid growth surpassing industry growth rates. Key products such as the DEEPAL SL03 DEEPAL S7
and NEVOA07 were well-received in the market quickly gaining traction upon their launch. The company will continue to focus on
user experience concentrate on core scenarios seize the window of opportunity for intelligent new cars accelerating the realization
of strategic goals for electrification transformation.
(3) Global deployment capability. The company has launched the Vast Ocean Plan pressing the accelerator key for Changan
Automobile’ s overseas expansion. The annual overseas export sales reached 358000 units an increase of 43.9% year-on-year.Company has clearly defined the overseas development goals establishing five regional business units. Overseas deployment is
becoming increasingly sophisticated. The company hosted a brand launch event in Southeast Asia officially introducing DEEPAL’s
two vehicle models into Thailand expanding its footprint globally and initiating a new chapter in expanding global markets. It has
also established its first overseas production base—Changan Automobile Thailand Manufacturing Base truly achieving localized
operations. In countries such as Saudi Arabia Chile and Mexico the market sales rank among the forefront of Chinese brands. In the
future the company will integrate resources accelerate its overseas expansion speed up the layout and channel construction in the
five major global markets further enhance its overseas market capabilities and remain committed to providing excellent technology
products and ultimate service experiences for global users. It aims to contribute to the construction of global economic integration
promote high-quality joint construction of the Belt and Road Initiative and make new and greater contributions.
(4) Brand upward capability. The company’ s brand image has further elevated to a new level continuously building
outstanding brands with distinctiveness value long-term viability and recognition. In terms of brand enhancement the brand image
continues to improve with the establishment of five major brand architectures completing the layout of three major intelligent
electric vehicle brands: AVATR DEEPAL and NEVO. The company has released the Vast Ocean Plan moving towards becoming a
world-class brand. It has deepened the Mission of Shangri-La for new energy vehicles launching the Changan “Golden Shield”
battery brand. The intelligent "Dubhe Plan" has been put in place to continuously build a "new auto species new ecosystem". We
have seized the opportunities in the smart new car arena showcased Changan’ s technology and achievements in new cars and
achieved brand leapfrogging. In terms of brand promotion the company has held brand launch event in Southeast Asia releasing
strategic plans for the Thai market with cumulative overseas communication covering 171 million people enhancing brand
awareness in the Thai market. We collaborated with Xinhua News Agency to launch the “Belt and Road Global Tour” IP
cooperation showcasing “Made in China” as a new calling card to the world helping to further implement Changan’s overseas
strategic plan and enhance brand international influence. Changan had an intensive cooperation with the “Three Body Problem” IP
and became the exclusive title sponsor of the Bilibili “Three Body Problem” animation with a viewership of 620 million and a
cumulative exposure of 4.66 billion across the entire network effectively enhancing the brand's youthfulness and perception of
intelligence. We have innovatively incubated the“SDATechnology Laboratory”proprietary IP comprehensively and systematically
showcasing Changan Automobile as a leader in the era of smart new cars building Changan Automobile's image as a technology
enterprise with a cumulative exposure exceeding 530 million.
(5) Cultural leadership capability. The company deeply practices advanced culture and releases the cutting-edge cultural
concept 4.0 making culture a core competitive advantage. By telling a good story of Changan and promoting Changan culture as
well as conducting learning and promotional activities and organizing competitions it provides cultural leadership for the Vast Ocean
Plan. Around the key areas of production and operation it organizes educational activities on situational tasks and oath-taking
meetings to consolidate the force of advancement. It practices the “dual caring” concept deepens the “five assistance" supportaddresses employees’ urgent needs and concerns and continuously undertakes practical and beneficial tasks for employees
enhancing their sense of achievement happiness and security. It has resolutely fulfilled the social responsibility of state-owned
enterprises and provided immediate aid to disaster areas such as North China’s heavy rain and earthquakes in Gansu with a total
donation of 16.5 million yuan. It has given comprehensive assistance to Yunnan’ s Luxi Yanshan counties and Chongqing’ s
Youyang continuously improving the quality and effectiveness of assistance with a total allocated fund of 10.6 million yuan. It has
fully implemented the rural revitalization strategy deepening assistance to the tea oil industry in Youyang forming a Changan
development model featuring“enterprises join hands to drive industry development” which has been included in the State Council’
s innovative cases of rural revitalization.
(6) Talent organization capability. The company adheres to the strategy of strengthening the enterprise with talents
continuously optimizing its organization strengthening its talent pool and further solidifying support for strategic transformation.Regarding talent it focuses on both internal development and external recruitment creating a global hub for outstanding talent to
gather and grow. It has brought in foreign vice presidents to empower the management team with a global perspective. In important
areas such as design autonomous driving battery technology and big data widely introduce industry-leading and senior talents and
achieve full coverage of senior talents in important fields. It has strengthened the cultivation of young cadres continuously
rejuvenating the structure of deputy general managers and managers. In terms of organization the company ensures that its
organizational structure is aligned with its strategy in a timely manner. Regarding mechanisms it has continuously innovated
incentive and constraint mechanisms incorporating efficiency into comprehensive evaluations stimulating the powerful vitality of
enterprise talents.
19Chongqing Changan Automobile Company Limited 2023 Annual Report
IV. Analysis of Main Business
1. Overview
Compared with 2022 the company's operating revenue was 151.298 billion yuan a year-on-year increase of 24.78%; The net
operating cash flow was 19.861 billion yuan a year-on-year increase of 250.52%. The net profit attributable to shareholders of the
listed company during the reporting period was 11.327 billion yuan a year-on-year increase of 45.25%. The net profit attributable to
shareholders of the listed company after deducting non recurring gains and losses was 3.782 billion yuan a year-on-year increase of
16.19% mainly due to the increase in sales volume and improvement in operating quality.
Please refer to “II Analysis of Main Business” under this chapter.
2. Income and cost
(1) Revenue
20232022
Proportion of Proportion of YoY
Amount (RMB) operating revenue Amount (RMB) operating revenue increase/decrease
（%）(%)(%)
Operating revenue 151297706646.97 121252864085.40 24.78%
By industry
Automotive business 151297706646.97 100% 121252864085.40 100% 24.78%
By product
Vehicles 145303581062.21 96.04% 114066406439.25 94.07% 27.39%
Services and others 5994125584.76 3.96% 7186457646.15 5.93% -16.59%
By region
China 130761245570.53 86.43% 107841417091.18 88.94% 21.25%
Overseas 20536461076.44 13.57% 13411446994.22 11.06% 53.13%
By sales model
Distribution 132864188744.96 87.82% 103713980228.17 85.53% 28.11%
Direct selling 12439392317.25 8.22% 10352426211.08 8.54% 20.16%
Others 5994125584.76 3.96% 7186457646.15 5.93% -16.59%
Note: The Company has 3913 dealers at the end of the reporting period.
(2) The business products regions and sales model accounting for over 10% of the Company’s operating
revenue or operating profit
√ Applicable □ Not applicable
YoY YoY YoY
Operating Revenue Operating Cost Gross increase/decrease of increase/decrease increase/decrease
(RMB) (RMB) margin operating income of operating cost of gross margin
(%)(%)(%)
By industry
Automotive
business 151297706646.97 123522656353.72 18.36% 24.78% 28.12% -2.13%
By product
Vehicles 145303581062.21 119133386315.31 18.01% 27.39% 30.05% -1.68%
By region
China 130761245570.53 108069640682.38 17.35% 21.25% 28.91% -4.91%
By sales model
Distribution 132864188744.96 107715814183.91 18.93% 28.11% 31.51% -2.09%
Where the statistical caliber of the main business data of the Company is adjusted the data is subject to the main business data after
adjustment according to the caliber of the end of the report period in the latest year.□ Applicable √ Not applicable
20Chongqing Changan Automobile Company Limited 2023 Annual Report
(3) Whether revenue from physical sales is higher than service revenue
√ Yes □ No
By business Item 2023 2022 YoY increase/decrease (%)
Sales volume (unit) 2553052 2346151 8.82%
Automotive business Production volume (unit) 2583215 2298419 12.39%
Inventory volume (unit) 66387 54900 20.92%
Note: The above sales production and inventory volume includes vehicles produced and sold by the Company and its JVs and
associates. The analysis over market share is based on the data from China Automobile Industry Association.Cause description of over 30% year-on-year increase/decrease
□ Applicable √ Not applicable
(4) Performance of major sales and purchase contracts as of the end of the reporting period
□ Applicable √ Not applicable
(5) Cost
20232022
Proportion Proportion YoY
By business Item increase/decrease
Amount (RMB) of ofoperational Amount (RMB) operational (%)
cost (%) cost (%)
Products 119133386315.31 96.45% 91604889306.21 95.02% 30.05%
Automotive
business Services and
others 4389270038.41 3.55% 4804721567.55 4.98% -8.65%
Total 123522656353.72 100.00% 96409610873.76 100.00% 28.12%
(6) Whether the scope of consolidation was changed during the reporting period
√ Applicable □ Not applicable
During the reporting period the company has acquired the equity of Deepal Automotive Technology Co. Ltd. from Chongqing
Changxin Equity Investment Fund Partnership Enterprise (Limited Partnership) and Chongqing Liangjiang New Area Equity
Investment Fund Partnership Enterprise (Limited Partnership) with a shareholding ratio of 51.00%. It will be transferred from a joint
venture to a subsidiary for accounting purposes and included in the scope of consolidation.
(7) Major changes or adjustment in business product or service of the Company in the reporting period
□ Applicable √ Not applicable
(8) Major customers and suppliers
Major customers
Total sales revenue from top five customer (RMB) 11855261791.88
Proportion of total sales revenue from top 5 customers in annual total sales
revenue (%) 7.84%
Proportion of total sales revenue from affiliated parties in the top five
customers in annual total sales revenue (%) 6.04%
The top 5 customers
No. Customer Revenue (RMB) Proportion of annual total salesrevenue (%)
1 Customer One 3005944066.62 1.99%
21Chongqing Changan Automobile Company Limited 2023 Annual Report
2 Customer Two 2728785805.44 1.80%
3 Customer Three 2615879134.66 1.73%
4 Customer Four 1767117262.72 1.17%
5 Customer Five 1737535522.44 1.15%
Total 11855261791.88 7.84%
Other information regarding major customers
√ Applicable □ Not applicable
One of the above customers is a joint venture of the Company and there customers are controlled by the same ultimate holding
company. Please refer to item 5 of Note 10 "Related Party Relationships and Transactions" in Chapter 10.Major suppliers
Total purchase amount from top five suppliers (RMB) 22980559004.09
Proportion of total purchase amount from top five suppliers in annual total
purchase amount (%) 18.60%
Proportion of total purchase amount from affiliated parties of the top five
suppliers in total annual total purchase amount (%) 12.60%
Top 5 suppliers
No. Supplier Purchase amount (RMB) Proportion of annual total purchaseamount (%)
1 Supplier One 7909257881.61 6.40%
2 Supplier Two 5232393837.67 4.24%
3 Supplier Three 5165658104.43 4.18%
4 Supplier Four 2501907444.50 2.02%
5 Supplier Five 2171341735.88 1.76%
Total 22980559004.09 18.60%
Other information regarding major suppliers
√ Applicable □ Not applicable
One of the above suppliers is a joint venture of the Company two suppliers are controlled by the same ultimate holding
company. Please refer to item 5 of note 10 “Related Party Relationships and Transactions” in Chapter 10.
3. Expenses
Item 2023 2022 YoY Change (%) Explanation of major changes
Selling expenses Mainly due to the acquisition of
(RMB) 7645205592.88 5138270162.95 48.79% Deepal Auto its sales expenses wereincluded in the merger and increased
Administrative
expenses (RMB) 4097537529.67 3532458198.76 16.00%
Financial costs
(RMB) -897343739.80 -1017305743.08 11.79%
Mainly due to the acquisition of
R&D expenses 5979844653.23 4315444864.76 38.57% Deepal Auto the R&D expenses(RMB) increased due to inclusion in the
merger
4. Research and Development Investment
√Applicable □ Not applicable
Expected impact on the
Projects Purpose Progress Goals future development of the
Company
Advanced Comfort The first product in a brand Complete the Develop new electric vehicle Develop new products to
Car Development new series enhancing market annual models and launch them for enhance market
22Chongqing Changan Automobile Company Limited 2023 Annual Report
competitiveness development task sale as planned competitiveness
New electric SUV products
Development of super expanding the lineup of deep Complete the Develop new electric vehicle Develop new products to
fun electric SUVs blue car models and annual models and launch them for enhance marketenhancing market development task sale as planned competitiveness
competitiveness
The all-new The new generation of smart Complete the Develop a new generation of Develop new products to
generation of plug-in electric sedans enhances annual plug-in hybrid models and
hybrid models market competitiveness development task launch them for sale as
enhance market
planned competitiveness
Research on Energy Creating a "ultra-low power Support the "dual carbon"
Consumption consumption" technology Complete the
Continuously improving strategy and complete the
Technology for New label that balances user annual
Chang'an's positive research
experience in working development task and development system for
storage of electricity
Automobile Vehicles conditions electricity consumption
consumption technology
shelves
Development of
high-performance and Development and validation Realize independent and
scalable fluid of high-performance and Complete research tasks for controllable software code
simulation and scalable fluid simulation and
Complete the
annual each section avoid software supply
optimization software optimization software for development task high-performance and interruption and bottleneck
for automotive automotive research and scalable fluid simulation risks and break foreign
development development software monopolies
Development of Complete the The essential features of the
intelligent electric Building a leading software annual platform's first model have New car transformation and
digital platform and hardware platform development task been defined and 98% of the upgradingfeatures have been developed
R&D staff
2023 2022 Change over the previous year (%)
Number of R&D staff (person) 10972 7899 38.90%
Proportion of R&D personnel 22.34% 18.42% 3.92%
Education background -- -- --
High School diploma or below
(person) 180 262 -31.30%
Bachelor’s degree (person) 7794 5819 33.94%
Master’s degree (person) 2903 1738 67.03%
Doctor’s degree (person) 95 80 18.75%
Age structure -- -- --
Aged below 30 (person) 3718 2217 67.70%
Aged 30 - 40 (person) 6096 4682 30.20%
Aged above 40 (person) 1158 1000 15.80%
R&D Input
2023 2022 Change over the previous year(%)
Amount of R&D Input (RMB) 9007550532.89 5677807968.36 58.64%
Proportion of R&D Input in
Operating Revenue (%) 5.95% 4.68% 1.27%
Amount of Capitalized R&D
Expenditure (RMB) 3027705879.66 1362363103.60 122.24%
Proportion of Capitalized R&D
Expenditure in R&D Input (%) 33.61% 23.99% 9.62%
Cause and effects of significant changes in composition of the R&D staff
√ Applicable □ Not applicable
The company’s R&D personnel increased by 38.9% year-on-year mainly due to the increase in the number of R&D personnel
as a result of the merger and acquisition of DEEPAL Auto. DEEPAL is the core carrier of the company’s Mission of Shangri-La
carrying Changan Automobile’s strategic mission of transitioning to new energy. The merger can strengthen the strategic integration
and resource coordination between Changan Auto and DEEPAL Auto accelerating to building Changan’s new energy brands into
the industry’s leading digital electric vehicle brands.Cause for significant changes in the proportion of total R&D investment in operating revenue from the previous year
□ Applicable √ Not applicable
Cause and Reasonable Explanation of the major changes of the capitalization rate of R&D investment
□ Applicable √ Not applicable
23Chongqing Changan Automobile Company Limited 2023 Annual Report
5. Cash Flow
Unit: RMB
YoYChange
Item 2023 2022 (%)
Subtotal of cash inflows from operating activities 174083254307.51 127195228996.80 36.86%
Subtotal of cash outflows from operating activities 154221788069.95 121528882138.28 26.90%
Net cash flows from operating activities 19861466237.56 5666346858.52 250.52%
Subtotal of cash inflows from investing activities 6989273666.33 2492217372.08 180.44%
Subtotal of cash outflows from investing activities 13197419195.66 5446189241.05 142.32%
Net cash flows from investing activities -6208145529.33 -2953971868.97 -110.16%
Subtotal of cash inflows from financing activities 1018615006.28 2792324450.65 -63.52%
Subtotal of cash outflows from financing activities 3146923971.81 2567894182.64 22.55%
Net cash flows from financing activities -2128308965.53 224430268.01 -1048.32%
Net increase in cash and cash equivalents 11434522853.37 2973518212.75 284.55%
Description of major influence factors of significant change of relevant data on a year-on-year basis
√ Applicable □ Not applicable
In 2023 the net cash flow generated from operating activities increased by 14.195 billion yuan compared to the previous year
mainly due to sales growth and the inclusion of Deepal Auto in the merger this year.The net cash flow generated from investment activities decreased by 3.254 billion yuan compared to the previous year. Firstly
the dividends of joint ventures decreased compared to the previous year resulting in a decrease in "cash received from obtaining
investment income". Secondly according to the business development plan the expenditure on purchasing and constructing fixed
assets increased compared to the previous year resulting in an increase in "cash paid for purchasing fixed assets intangible assets
and other long-term assets". Thirdly there were new term deposits that could not be withdrawn in advance resulting in an increase in
"other cash paid related to investment activities" compared to the previous year. Fourthly the cash balance of Deepal Auto on the
purchase date exceeded the portion of the company's cash offer to purchase its equity resulting in an increase in "other cash received
related to investment activities".The net cash flow generated from financing activities decreased by RMB 2.353 billion compared to the previous year mainly
due to the issuance of bonds of RMB 1 billion in the previous year which was not present in the current year. This resulted in a
decrease in "cash received from borrowing" compared to the previous year as well as an increase in dividend expenses leading to an
increase in "cash paid for distributing dividends profits or paying interest" compared to the previous year.Cause for the significant difference between net cash flows from operating activities and net profit in the reporting period
√ Applicable □ Not applicable
As for the significant difference between net cash flows from operating activities and net profit in the reporting period please
refer to the Item 64 Note 5 “Supplementary Information of the Cash Flow Statement” in the Auditor’s Report.V. Analysis of Non-Main Business
√ Applicable □ Not applicable
Amount (RMB) Proportion of profits (%) Explanation Whether it is sustainableor not
Except for the income of
Please refer to the Item 5 5.021 billion yuanNote 54 “Supplementary generated by theReturn on investment 3050413045.10 28.81% Information of the Cash company's merger ofFlow Statement” in the enterprises not under the
Auditor’s Report. same control as DeepalAuto other sustainable
activities
Profits or losses of fair
value change -19061189.53 -0.18% No
Please refer to the Item 5Impairment losses on Note 57 “Supplementaryassets -813828346.53 -7.69% Information of the Cash NoFlow Statement” in the
Auditor’s Report.Non-operating income 169793538.35 1.60% No
24Chongqing Changan Automobile Company Limited 2023 Annual Report
Non-operating expenses 28073391.83 0.27% No
VI. Analysis of Assets and Liabilities
1. Major Changes in Asset Composition
31 December 2023 31 December 2022 Increase/Dec
Amount (RMB) Proportion of
rease in Description of
total assets (%) Amount (RMB)
Proportion of
total assets (%) Proportion significant changes(%)
Monetary fund 64871042747.88 34.11% 53530183827.34 36.65% -2.54%
Receivables 2411796419.07 1.27% 3068414415.29 2.10% -0.83%
Contract assets 1442876966.30 0.76% 458389187.10 0.31% 0.45%
Inventories 13465847696.93 7.08% 5823307512.90 3.99% 3.09%
Investment
property 6196003.48 0.00% 6422715.04 0.00% 0.00%
Long-term equity
investment 13787391985.47 7.25% 14406662456.28 9.86% -2.61%
Fixed assets 19994084908.14 10.51% 19346764691.44 13.25% -2.74%
Construction in
progress 1914345359.83 1.01% 1387898218.64 0.95% 0.06%
Right-of-use
assets 209480676.04 0.11% 100813386.01 0.07% 0.04%
Short-term loans 30039416.74 0.02% 29000000.00 0.02% 0.00%
Mainly due to increased
Contract
liabilities 7923792852.77 4.17% 5655256792.66 3.87% 0.30%
sales and an increase in
advance payments from
distributors
Long-term loans 72000000.00 0.04% 36000000.00 0.02% 0.02%
Lease liabilities 134254398.07 0.07% 60205397.98 0.04% 0.03%
Mainly due to the
Other current addition of fixed deposits
assets 9735453361.32 5.12% 1054779668.19 0.72% 4.40% that cannot be withdrawnin advance this year the
impact of reclassification
Mainly due to the
intangible assets 15045563649.79 7.91% 4446385255.68 3.04% 4.87% acquisition of Deep BlueMotors increasing
intangible assets
Mainly due to the merger
and acquisition of Deep
Notes payable 37456669928.07 19.70% 22072793864.83 15.11% 4.59% Blue Automobile theincrease in its notes
payable was included in
the merger
Mainly due to the
Other current acquisition of Deep Blue
liabilities 8897936399.92 4.68% 6627044667.62 4.54% 0.14% Motors the provision forexpenses was included in
the merger and increased
Mainly due to the
acquisition of Deep Blue
Estimated
liabilities 6277041416.79 3.30% 4589299321.49 3.14% 0.16%
Automobile its expected
liabilities will be
included in the merger
and increase
Foreign assets account for a relatively high proportion
□ Applicable √ Not applicable
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
25Chongqing Changan Automobile Company Limited 2023 Annual Report
Unit: RMB
Changes in Fair Accumulated Provision
Item Opening Value Gains
Fair Value for Amount of Amount of Sales
Balance and Losses in Changes Impairment Purchase in in Current Other Changes Closing Balance
Current Period Included in in Current Current Period PeriodEquity Period
Financial assets
Financial assets
held for trading
(excluding 280315571.09 -19061189.53 93735034.27 167519347.29
derivative
financial assets)
Investments in
other equity 489950000.00 14240082.71 504190082.71
instruments
Subtotal
financial assets 770265571.09 -19061189.53 14240082.71 93735034.27 671709430.00
Others - - - - -
Total 770265571.09 -19061189.53 14240082.71 93735034.27 671709430.00
Financial
liabilities - - - - -Note: The trading financial assets and investments in other equity instruments in the table above are detailed in “2. Trading FinancialAssets” and “11. Investments in Other Equity Instruments” in Note 5 of Auditor’s Report .Whether there are major changes on measurement attributes for main assets of the Company in reporting period
□ Yes √ No
3. Limitation of asset rights as of the end of the reporting period
Unit: RMB
Item Book Value at the End of Period Limitation Reason
Monetary fund 945084846.77 Acceptance bill deposit
Bill receivable 7309419058.87 Pledge for issuing payable bills
Total 8254503905.64
VII. Analysis of Investments
1. Overall situation
√ Applicable □ Not applicable
Investment amount for the reporting period Investment amount for the previous reporting
(RMB) period (RMB) YoY Change (%)
8798279380.108135765655.118.14%
Joint investment between the Company and professional investment institutions:
Subscribed Subscrip Actual
Name of investment capital tion capital
institutions contribution ratio contribution Progress
(RMB) (%) (RMB)
Chongqing Changyu The fund completed the registration work of the China
Private Equity Investment 348000000 23.20% 69600000 Securities Investment Fund Industry Association onFund Partnership Enterprise December 7th 2023 with the registration code
(Limited Partnership) SACR66
Chongqing Changan As of the end of the reporting period Chongqing
Innovation Private Equity Changan Innovation Private Equity Investment Fund
Investment Fund 300000000 46.08% 70230769 Partnership Enterprise (Limited Partnership) increased
Partnership Enterprise its capital by 150 million yuan to the company's joint
(Limited Partnership) venture Avrta in 2023
26Chongqing Changan Automobile Company Limited 2023 Annual Report
2. The major equity investment obtained in reporting period
□ Applicable √ Not applicable
3. The ongoing major non-equity investment in reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Security investments
√ Applicable □ Not applicable
Gains and Accumulat Purchase
Initial Accountin Book value at losses from
ed fair
value amount Sales amount Gains and Book value atSecurity Stock Account
type code Abbreviation investment cost
g the beginning changes in fair changes during the during the losses of the the end of the Source
RMB measurem of the reporting value during included reporting reporting period reporting reporting
ing of funds
（ ） ent model period（RMB） the period in equity period （RMB） period（RMB）period（RMBsubject
）（RMB）
（RMB （RMB））
Stock 301215 Southwest
Fair value Trading Self-ow
Securities 98999997.80 measurem 125052628.80 35692104.47 0.00 0.00 0.00 37098946.54 160744733.27 financial nedent assets funds
China Fair value Trading Self-ow
Stock 600369 Automobile 50000000.00 measurem 126112500.00 5349310.72 0.00 0.00 131461810.72 5349310.72 0.00 financial ned
Corporation ent assets funds
Total 148999997.80 -- 251165128.80 41041415.19 0.00 0.00 131461810.72 42448257.26 160744733.27 -- --
(2) Derivative investments
√ Applicable □ Not applicable
1） Derivative investments for hedging purposes during the reporting period
√ Applicable □ Not applicable
Unit: 10000 RMB
Investment Proportion of
Initial Profit and loss
derivatives Initial from changes
Accumulated Amount of Amount of amount at investment amount
Investment type of derivatives investment in fair value in changes in fair purchase in sales in the the end of at the end of theinvestment amount the current value included in the reporting reporting the reporting period toamount period equity period period reporting net assets of theperiod Company
Forward Exchange 85419 85419 -6008 -4197 238576 232022 91973 1.28%
Total 85419 85419 -6008 -4197 238576 232022 91973 1.28%
Explanation of changes of the
accounting policies and accounting
principles of the Company’s
hedging during the reporting period Not applicable
compared with the previous
reporting period
Description of actual gains/losses
during the reporting period During the reporting period RMB 2320.22 million was sold and the actual transaction profit was RMB 18.11 million.Changan Automobile adheres to the principle of risk neutrality in carrying out forward foreign exchange settlement and
Description of hedging effect sales business based on normal production and operation locks in income and cost through forward foreign exchangetransactions avoids the risk of exchange rate fluctuations reduces the uncertainty of operating profits and ensures the
realization of annual operating objectives.Source of funds Self-owned funds
Risk analysis
1. Market risk: In the case of large changes in the exchange rate the difference between the exchange rate of the forward
Risk analysis and control measures exchange contract and the actual exchange rate on the expiration date may cause the Company to lose money.for derivatives investment during 2. Liquidity risk: Due to inaccurate predictions the delivery date signed for foreign exchange hedging business is
the reporting period (including but inconsistent with the actual delivery date resulting in insufficient funds available for delivery leading to liquidity risks
not limited to market risk liquidity and inability to deliver on schedule.risk credit risk operational risk 3. Default risk: Due to inaccurate forecasts the delivery date signed by the forward exchange transaction is inconsistent
legal risk etc.) with the actual delivery period resulting in the delayed delivery risk caused by the failure of the forward exchange
transaction to be delivered at the agreed time.
4. Operational risk: Risks may arise due to inadequate internal control mechanisms and unprofessional operators.
27Chongqing Changan Automobile Company Limited 2023 Annual Report
5. Legal risks: If the terms of the transaction contract are not clear the Company may face legal risks.
Risk control measures
1. The Company and its subsidiaries will pay attention to the changes in the exchange rate market strengthen the study of
exchange rates study the future exchange rate trends improve the forecasting ability of exchange rates and reduce the
impact of exchange rate fluctuations on the Company.
2. In order to prevent delayed transaction settlement of forward exchange the business management departments of the
Company and its subsidiaries will track the progress of payment and collection avoid overdue payments and try to reduce
the risk to the minimum.
3. The Company and its subsidiaries will strengthen business knowledge training improve the comprehensive business
quality of relevant personnel and improve the ability to identify and prevent exchange rate risks.
4. The Company has formulated the “Measures for the Administration of Forward Exchange Trading Business (Trial)”
which clearly stipulates the business operation principles approval authority internal operation processes and
requirements risk handling procedures etc. and the operation must be handled in strict accordance with the requirements
of the measurements.Changes in market price or fairvalue of invested derivatives during The Company’s measurement of Financial Instruments follows the “Accounting Standard for Business Enterprises Articlethe reporting period (the specific 22 - Recognition and Measurement of Financial Instruments” and the fair value is basically measured and recognized
methods relevant assumptions and with reference to bank pricing. During the reporting period the gain on the change in fair value of forward exchange
parameters used in the analysis of contracts was RMB -60.08 million.the fair value should be disclosed)
Whether it is involved in a lawsuit Not applicable
Disclosure date of derivatives
investment approval board March 16th 2023
announcement
Disclosure date of derivatives
investment approval shareholders June 29th 2023
meeting announcement
The company and its subsidiaries carry out foreign exchange hedging business on the basis of normal production and
operation with prudence as the principle with the purpose of currency hedging and avoiding exchange rate risks. By
Opinions of independent directors locking in exchange rates to reduce exchange rate volatility risks it will not affect the normal development of the main
on the Company’s derivatives business. The company has formulated the "Management Measures for Forward Foreign Exchange Trading Business
investment and risk control (Trial)" and improved relevant internal control processes. The targeted risk control measures taken by the company arefeasible and there is no situation that harms the interests of the company shareholders especially small and medium-sized
shareholders. The deliberation process of this proposal complies with relevant laws and regulations as well as the
provisions of the Company's Articles of Association.
2） Derivative investment for the purpose of speculation during the reporting period
□Applicable √ Not applicable
During the reporting period there was no derivative investment for the purpose of speculation.
5. Use of raised funds
√ Applicable □ Not applicable
(1) Overall use of raised funds
√ Applicable □ Not applicable
Unit: 10000 RMB
The total
The used amount of Cumulative Proportion of total The purpose Amount of
Types of Total funds Net amount
amount of Total raised total amount The total and funds
Year of raised total funds accumulated funds with of raised
raised
funds amount of placement raised idleraise raised funds raised in use of funds purpose funds with unused of the for morethe current raised changed in purpose with funds unused than two
period reporting changed purposechanged funds yearsperiod
Deposited
Non-publi in a
2020 c offering600000.00598608.41127866.62 597126.69 0 160545.86 26.82%10914.53 dedicated 0
of shares account for
raised funds
Total -- 600000.00598608.41127866.62 597126.69 0 160545.86 26.82%10914.53 -- 0
Description of the overall use of raised funds
1. The board of directors of the Company believes that the Company has disclosed the storage and actual use of the Company’s raised funds in atimely true accurate and complete manner in accordance with the “Guidelines for the Standardized Operation of Listed Companies on the ShenzhenStock Exchange” and relevant format guidelines. There are no violations in the management of raised funds. The Company has faithfully fulfilled its
obligation to disclose the investment direction and progress of the raised funds.
28Chongqing Changan Automobile Company Limited 2023 Annual Report
2. The net amount of raised funds after deducting other issuance expenses is RMB 5986.08 million the actual net amount of raised funds after
adjustment is RMB 6039.30 million. The Company used the raised funds of RMB 3252.08 million RMB 747.22 million RMB 693.30 million and
RMB 1278.67 million respectively in 2020 2021 2022 and 2023. As of December 31 2023 the Company has used a total of RMB 5971.27 million
of the raised funds.
(2) Use of the raised funds in committed projects
√ Applicable □ Not applicable
Unit: 10000 RMB
Cumulative
Committed projects and Whether Total Adjusted investment
Investment Whether the Whether it Whether the
placement of extra funds the project committed total
Amount amount as progress as of project has Benefits meets the feasibility of
has been investment of investment invested of the end the end of the reached the realized this expected the project hasraised changed raised funds (1) this year of the period% (3) = intended year return changed
period (2) (2)/(1) usable state significantly
Committed projects
H series fifth phase NE1
series first phase engine
production capacity Yes 141568.38 103313.68 1675.50 102506.51 99.22% Yes 541200 Yes No
construction project
Crash Laboratory Capacity
Upgrade Project Yes 11505.75 8251.85 300.61 8342.63 101.10% Yes
Not Not
applicable applicable No
CD569 production line
construction project Yes 15576.22 9418.59 183.43 9616.70 102.10% Yes 46710 Yes No
Hefei Changan Automobile
Co. Ltd. adjustment and Yes 249958.06 142399.78 692.97 133901.72 94.03% Yes 129930 No No
upgrade project
Supplementary working
capital No 180000.00 180000.00 - 180000.00 100.00% No
Not Not
applicable applicable No
New generation
energy-saving product Not Not
transformation and No - 160545.86 125014.11 162759.13 101.38% No applicable applicable No
upgrading project
Total 598608.41 603929.76 127866.62 597126.69 98.87% -- -- -- --
The reasons for not
reaching the planned The reasons why the adjustment and upgrading project of Hefei Changan Automobile Co. Ltd. did not achieve the expected revenue are
progress or expected as follows: the penetration rate of new energy continued to increase in 2023 the sales of traditional fuel passenger vehicles declined
benefits (by specific and industry competition intensified.projects)
Description of major
changes in the feasibility of N/A
the project
The amount use and
progress of extra raised Not applicable
funds
Change in implementation
location of the committed N/A
projects
Adjustment to
implementation method of N/A
committed project
On November 18th 2020 the Ninth Meeting of the Eighth Session of the Board of Directors of the Company reviewed and approved
Upfront investment and the “Proposal on the Use of Raised Funds to Replace Early Investment in Self-Own Funds” and agreed to use raised funds of RMB
replacement of committed 1378818553.05 to replace pre-invested sell-raised funds for the project. The replacement of the raised funds has been verified by the
projects Ernst & Young Hua Ming (2020) Special Zi No. 60662431_D05 special report issued by Ernst & Young Hua Ming Certified Public
Accountants (special general partnership).Use of idle raised funds for
temporary supplement of N/A
working capital
The company's original plan for four fundraising projects including the H-series Phase V and NE1 series Phase I engine production
capacity construction project collision testing laboratory capacity upgrading construction project CD569 production line construction
Amount and cause of project and Hefei Changan Automobile Co. Ltd. adjustment and upgrading project resulted in some savings compared to the previous
surplus of funds raised for plan. The main reason is that the company reduced the actual investment amount through the localization of imported equipment during
project implementation the project implementation process; At the same time in order to continuously improve the quality of operation the company has
continuously optimized the plan during the project construction process and implemented lean investment process management
achieving control over investment scale and pace. Based on the company's long-term strategic planning and current development needs
29Chongqing Changan Automobile Company Limited 2023 Annual Report
and after comprehensive analysis in order to further improve the efficiency of the use of raised funds the company has adjusted the
investment scale of the original raised funds investment project and allocated the remaining funds of RMB 1605.46 million to the
company's new generation energy-saving product transformation and upgrading project.The purpose and placement
of the unused raised funds Deposited in a dedicated account by the Company for raised funds
Defects and other problems
in utilization and disclosure N/A
of the raised funds
(3) Changes of projects supported by raised funds
√ Applicable □ Not applicable
Unit: 10000 RMB
Total Significant
amount of The amount Actual Investment The date whenactually cumulative progress as the project Benefits changes in
The commitment of the funds to be invested investment of the end reached the achieved
Whether the the
Changed project original project invested in
expected
during the amount as of of the intended during the benefits have feasibilitythe project
after the reporting the end of the period (%) availability
reporting been achieved of the
period period (2) (3)=(2)/(1) status period project afterchange (1) the change
1. H series fifth phase NE1
series first phase engine pr
A new oduction capacity construct
generation of ion project
energy-saving 2. Crash Laboratory Capaci
products ty Upgrade Construction Pr In the year of Not Not
transformation oject
160545.86 125014.11 162759.13 101.38% 2024 applicable applicable No
and upgrading 3. CD569 production line c
projects onstruction project4. Hefei Changan Automob
ile Co. Ltd. adjustment and
upgrade project
Total -- 160545.86 125014.11 162759.13 101.38% -- -- -- --
1. The company's original plan for four fundraising projects including the H-series Phase V and NE1
series Phase I engine production capacity construction project collision testing laboratory capacity
upgrading construction project CD569 production line construction project and Hefei Changan
Automobile Co. Ltd. adjustment and upgrading project resulted in some savings compared to the
previous plan. The main reason is that the company reduced the actual investment amount through the
localization of imported equipment during the project implementation process; At the same time in
order to continuously improve the quality of operation the company has continuously optimized the
plan during the project construction process and implemented lean investment process management
Reasons for change decision-making procedures and achieving control over investment scale and pace. Based on the company's long-term strategic
information disclosure (by specific project) planning and current development needs and after comprehensive analysis in order to further improvethe efficiency of the use of raised funds the company has adjusted the investment scale of the original
raised funds investment project and allocated the remaining funds of RMB 1605.46 million to the
company's new generation energy-saving product transformation and upgrading project.
2. Decision-making procedure: The Company held the 38th meeting of the 8th Board of Directors onApril 26th 2022 and approved the proposal of “Adjusting and Changing the Use of Part of the RaisedFunds”. The proposal has yet to be submitted to the Company’s General Meeting of Shareholders for
consideration.
3. Information disclosure: Please refer to the announcement of “Adjusting and Changing the Use ofPart of the Raised Funds” on http://www.cninfo.com.cn (Announcement Number: 2022-23).Reasons for failure to meet the planned schedule or
projected benefits (by project) Not applicable
Description of significant changes in the feasibility of the
project after the change Not applicable
VIII. Sale of significant Assets and Equity
1. Sale of significant assets
□ Applicable √ Not applicable
30Chongqing Changan Automobile Company Limited 2023 Annual Report
2. Sale of significant equity
□ Applicable √ Not applicable
IX. Analysis of Major Shareholding and Joint Stock Companies
√ Applicable □ Not applicable
Major subsidiaries and joint stock companies that affect the company’s net profit by more than 10%
Unit: 10000 RMB
Registered Operating
Name Type Main capital Totalbusinesses assets Net assets
Operating
income profit Net profit
Deepal Automotive Technology subsidiary Production and
Co. Ltd. company sales of vehicles 32811 2286788 -196911 2588251 -300254 -299893and parts
Avatr Technology (Chongqing) Joint Stock Production and
Co. Ltd. Company sales of vehicles 199496 1264405 209378 564536 -368556 -369250and parts
Subsidiaries acquired and sold in the reporting period
√ Applicable □ Not applicable
During the reporting period the company has acquired the equity of Deepal Automotive Technology Co. Ltd. from Chongqing
Changxin Equity Investment Fund Partnership Enterprise (Limited Partnership) and Chongqing Liangjiang New Area Equity
Investment Fund Partnership Enterprise (Limited Partnership) with a shareholding ratio of 51.00%. It will be transferred from a joint
venture to a subsidiary for accounting purposes and included in the scope of consolidation.Name Acquisition and disposal of subsidiaries Impact on overall productionduring the reporting period operation and performance
Deepal Automotive Technology Co. Ltd. Mergers of enterprises not under commoncontrol Significant impact
Description of major holding and participating companies
During the reporting period Deepal Auto accelerated the development of new energy vehicles enriched the Deepal brand
product line increased research and development investment resulting in losses. Avatr is in a strategic investment period with
significant resource investment in product research and development brand promotion channel building and technical talent
introduction resulting in losses.X. Information of main shareholding and joint stock companies
□ Applicable √ Not applicable
XI. Prospects of Future Development
1. Industrial Landscape and Tendency
The overall performance of the automotive market in 2023 was good serving as an important force in promoting economic
recovery. It mainly exhibited the following characteristics:
(1) Overall characteristics of the industry: Industry recovery exceeded expectations the total production and sales volume of
the automobile industry exceeded 30 million units in 2023. Car brands from Europe the United States Japan Germany South Korea
China used to be the main players in China’s auto market whereas Chinese brand has dominated half of the market share now.
(2) New energy trends: China’s new energy vehicle production and sales ranked first in the world for nine consecutive years
and under the dual promotion of policy and market the market share of new energy vehicles will continue to increase in the future.
(3) Intelligent trends: With the development and application of artificial intelligence big data and other new technologies the
car has evolved from a traditional transportation tool into a new smart digital vehicle based on new energy and deeply integrated with
intelligence to provide users with a more integrated and comprehensive services. The policy to support the industrialization of NOA
(navigation-assisted driving) formally kicked off and intelligent driving has gradually become the dominant factor for consumers to
purchase cars. Intelligent technology capability and applications have become the core elements of competition among car
companies.
(4) Globalization trends: China’s auto industry has accelerated the pace of going overseas and become an important force for
Chinese brands to go overseas. More Chinese brand automotive companies will expand their overseas market presence in the future
actively participating in international competition seizing the incremental opportunities of ICE vehicle market in developing country
and new energy vehicle opportunities in developed country.
(5) Interconnected industry chain trends: The automotive industry chain has become more flexible and developed towards an
31Chongqing Changan Automobile Company Limited 2023 Annual Report
interconnected structure. The automobile industry form has been reshaped from the traditional unidirectional chain based on the
petroleum internal combustion engine to a new automobile mesh ecosystem in which the OEM Tier1 and raw material suppliers are
linked and relevant industries like petroleum and electric power are deeply involved.
2. Corporation Development Strategy
Chinese automotive brands are currently facing historic development opportunities. New energy is the core strength of Chinese
brands intelligence is an important element of differentiated competitiveness and overseas markets have become a certain increment
in the future. Looking to the future Changan will take the initiative to recognize and respond to changes plan the overall situation
with strategic thinking and meet challenges with transformation and change. Since the release of the Third Business Venture -
Innovation & Entrepreneurship Program in 2017 Changan has been constantly reviewing and optimizing the program which has
now been iterated to version 7.0. Changan will adhere to Xi Jinping’s Thought on Socialism with Chinese Characteristics in the New
Era as its guide and take “strategic leadership systematic change extreme efficiency and innovative breakthrough” as the key to
accelerate its transformation into an intelligent low-carbon mobility technology company and move forward to a world-class
automobile brand. By 2030 Changan aims to achieve sales of 5 million vehicles including 4 million vehicles in the independent
sector 3-3.5 million vehicles in new energy sales and 1.2 million vehicles overseas.To this end Changan will implement the “215”
partnership initiative adhere to the “two major enhancements” upgrade the “one major relationship” and realize the “five newleaps”.
(1) Adhere to the "two major enhancements"
Firstly we will insist on the double promotion of new energy vehicles and ICE vehicles. In 2023 China's new energy passenger
car penetration rate reached 35.7% while fuel vehicles still occupied an important market share of 64.3%. Based on this the
company will adhere to the business strategy of “two-pronged development” for new energy vehicles and ICE vehicles adapt to
market changes provide competitive products in different market segments meet the needs of the majority of users in different
scenarios and ensure that the new energy vehicles and ICE vehicles are both upgraded.Secondly we will insist on double promotion in domestic and international markets. Two-thirds of the global automobile market
lies overseas and China's automobile industry is accelerating to go overseas in all aspects. Based on this the company will put
globalization in a more important strategic position on the basis of stabilizing the domestic base.
(2) Upgrade the “one major relationship”—partnership
Competition in the automobile market has become more intense. In order to obtain better development by sharing resources and
complementing advantages with each other we will work with dealers suppliers and users to maintain a partnership featuring
“risk-sharing value co-creation and benefit-sharing” and go hand in hand to seek a better future.
(3) Realize the “five new leaps”
First we will unswervingly take the strategy as the guide to realize the new leap in transformation and upgrading. Second we
will unswervingly optimize the product layout to realize the new leap in brand enhancement. Third we will unswervingly strengthen
the scientific and technological innovation to realize the new leap in technological leadership. Fourth we will unswervingly build the
industrial ecosystem to realize the new leap in win-win development. Fifth we will unswervingly promote the customer management
to realize the new leap in service experience.
3. Operation Plan
Changan’s actual sales of 2553052 vehicles in 2023 reached the Board’s target. Changan’s Board of Directors business
objective for 2024 is to strive to achieve production and sales of over 2.65 million vehicles. Changan will continue to follow the
guidance of Xi Jinping Thought on Socialism with Chinese Characteristics in the New Era fully implement the spirit of the 20th
CPC National Congress and the 2nd Plenary Session of the 20th CPC Central Committee adhere to the general principle of seeking
progress while maintaining stability and make every effort to achieve the production and operation targets for 2024 with the
keywords of “strategic leadership systemic change extreme efficiency and innovative breakthrough”. We will focus on the following
tasks: First strengthen Party building and guarantee high-quality development with high-quality Party building. Second promote
Changan Automobile’s third business venture - Innovation and Entrepreneurship Program Version 7.0 and accelerate the
transformation to an intelligent low-carbon mobility technology company. Third adhere to the customer-centered approach and
continue to create blockbuster products. Fourth adhere to the systematic change to accelerate the construction of innovation system
capacity. Fifth strengthen resource integration and enhance operational capacity. Sixth adhere to the two-way empowerment create
a new type of cooperation model and make every effort to ensure the sustainable development of joint ventures. Seventh adhere to
reform and innovation and orderly push forward the organizational change talent management and mechanism innovation. Eighth
adhere to the bottom-line thinking build a solid bottom line of the red line and guard against and resolve major risks. Ninth carry
out in-depth practice of the leading culture and build culture as the core competitiveness.
4. Capital Expenditure Plan for 2024
In order to achieve the strategic goals of the company the investment plan of the company and its holding subsidiaries in 2024
is RMB 10721.2 million including RMB 4580.26 million fixed assets investment and RMB 6140.94 million equity investment.Fixed assets investment mainly focuses on the adjustment of new energy production capacity structure investment in R&D capability
investment in new energy products and digital transformation deepening the layout of new energy industry accelerating the pace of
32Chongqing Changan Automobile Company Limited 2023 Annual Report
new energy product investment and continuously improving digital and R&D capabilities. Equity investment mainly supports the
development of independent brands expands overseas markets promotes the construction of intelligent capabilities and accelerates
the deepening development of the new energy industry chain. The company will research and develop various channels of
fundraising and fund utilization plans based on project progress combined with operating and financing environment conditions to
improve fund utilization efficiency and reduce fund costs.
5. Possible Risks
(1) Supply chain stability risk
The world’s political and economic instability and uncertainty have increased and the global industrial chain supply chain is
facing reconstruction. The automotive industry with its long industrial chain and typical globalized division of labor may still face
supply chain risks in the current environment.Countermeasures: First by combining the relevant policies of promoting the construction of a modernized industrial system
with technological innovation at the national level we will increase the independent development of key core components
continuously advance the technological research of key core components and promote domestic substitution. Second we will
continuously strengthen the cooperation between enterprises upstream and downstream of the industrial chain and reduce the risk of
supply fluctuations through long-term agreements and reserving risky components.
(2) Overseas business risks
As China’s position in the global industrial chain continues to rise China’s automobile industry has accelerated its overseas
expansion and has been gradually laying out by region and step in many aspects including research production supply sales and
shipment. With fierce and complex international competition and profound changes in international economic and trade rules
Chinese enterprises are facing more challenges in going out for development. More and more Chinese enterprises have encountered
investigations and lawsuits against anti-monopoly anti-subsidy infringement of trade secrets and commercial bribery overseas.Countermeasures: The company will unswervingly push forward the Vast Ocean Plan and deeply participate in international
competition. In participating in overseas market competition the company has formulated a perfect compliance management system
adhered to the bottom line and red line of operation and met the compliance requirements of the target market in all aspects such as
investment products parts and components and regulations etc. Meanwhile the company has also formed a comprehensive
tracking and research mechanism for the international market in terms of politics economy society environment and regulations on
a daily weekly and monthly basis in order to control the risks of overseas operation to the maximum extent possible.XII. Reception Research Communication Interviews and Other Activities during the
Reporting Period
√ Applicable □ Not applicable
Type of
Reception
Date Research Type Research Index
place
Object
February 1st For details see the February 2nd 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:February 1st 2023 investor relations activities record sheet.
For details see the March 7th 2023 Shenzhen stock exchange
March 3rd 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
March 3rd 2023 investor relations activities record sheet.March 16th For details see the March 20th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:March 16th 2023 investor relations activities record sheet.
Panoramic For details see the May 10th 2023 Shenzhen stock exchangeMay 8th 2023 Online roadshow All investors interactive (http://irm.cninfo.com.cn) on the Changan Automobile:May 8th 2023 investor relations activities record sheet.For details see the May 16th 2023 Shenzhen stock exchange
May 12th 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
May 12th 2023 investor relations activities record sheet.For details see the May 19th 2023 Shenzhen stock exchange
May 17th 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
May 17th 2023 investor relations activities record sheet.For details see the June 1st 2023 Shenzhen stock exchange
May 30th 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
May 30th 2023 investor relations activities record sheet.For details see the June 17th 2023 Shenzhen stock exchange
June 14th 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
June 14th 2023 investor relations activities record sheet.June 28th 2023 Chongqing Field research Institution For details see the June 29th 2023 Shenzhen stock exchange
33Chongqing Changan Automobile Company Limited 2023 Annual Report
interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
June 28th 2023 investor relations activities record sheet.For details see the June 29th 2023 Shenzhen stock exchange
June 29th 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
June 29th 2023 investor relations activities record sheet.For details see the July 13th 2023 Shenzhen stock exchange
July 12th 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
July 12th 2023 investor relations activities record sheet.For details see the July 13th 2023 Shenzhen stock exchange
July 13th 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
July 13th 2023 investor relations activities record sheet.For details see the July 19th 2023 Shenzhen stock exchange
July 19th 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
July 19th 2023 investor relations activities record sheet.For details see the July 21st 2023 Shenzhen stock exchange
July 20th 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
July 20th 2023 investor relations activities record sheet.For details see the July 21st 2023 Shenzhen stock exchange
July 21st 2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
July 21st 2023 investor relations activities record sheet.Panoramic
August 31th Roadshow and For details see the August 31th 2023 Shenzhen stock exchange
2023 Online "Entering All investors interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
Finance" August 31th 2023 investor relations activities record sheet.September 5th For details see the September 5th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:September 5th 2023 investor relations activities record sheet.
September 13th For details see the September 13th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:September 13th 2023 investor relations activities record sheet.
September 15th For details see the September 15th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:September 15th 2023 investor relations activities record sheet.
September 20th For details see the September 20th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:September 20th 2023 investor relations activities record sheet.
September 21st For details see the September 21st 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:September 21st 2023 investor relations activities record sheet.
September 26th For details see the September 26th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:September 26th 2023 investor relations activities record sheet.
October 11th For details see the October 11th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:October 11th 2023 investor relations activities record sheet.
October 18th For details see the October 18th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:October 18th 2023 investor relations activities record sheet.
October 19th Interactive Easy For details see the October 19th 2023 Shenzhen stock exchange
2023 Online Cloud Interview All investors interactive (http://irm.cninfo.com.cn) on the Changan Automobile:October 19th 2023 investor relations activities record sheet.
October 25th For details see the October 25th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:October 25th 2023 investor relations activities record sheet.
October 26th For details see the October 26th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:October 26th 2023 investor relations activities record sheet.
October 27th For details see the October 27th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:October 27th 2023 investor relations activities record sheet.
October 31th For details see the October 31st 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:October 31th 2023 investor relations activities record sheet (I).
October 31th Interactive Easy For details see the October 31th 2023 Shenzhen stock exchange
2023 Online Cloud Interview All investors interactive (http://irm.cninfo.com.cn) on the Changan Automobile:October 31th 2023 investor relations activities record sheet (II)..
34Chongqing Changan Automobile Company Limited 2023 Annual Report
November 1st For details see the November 1st 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:November 1st 2023 investor relations activities record sheet.
November 2nd For details see the November 2nd 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:November 2nd 2023 investor relations activities record sheet.
November 6th For details see the November 6th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:November 6th 2023 investor relations activities record sheet.
November 7th For details see the November 7th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:November 7th 2023 investor relations activities record sheet.
November 9th For details see the November 9th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:November 9th 2023 investor relations activities record sheet.
November 10th For details see the November 10th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:November 10th 2023 investor relations activities record sheet.
November 13th For details see the November 13th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:November 13th 2023 investor relations activities record sheet.
November 14th For details see the November 14th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:November 14th 2023 investor relations activities record sheet.
November 15th For details see the November 15th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:November 15th 2023 investor relations activities record sheet.
November 16th For details see the November 16th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:November 16th 2023 investor relations activities record sheet.
November 20th For details see the November 20th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:November 20th 2023 investor relations activities record sheet.
November 23rd For details see the November 23rd 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:November 23rd 2023 investor relations activities record sheet.
November 24th For details see the November 24th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:November 24th 2023 investor relations activities record sheet.
November 27th For details see the November 27th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:November 27th 2023 investor relations activities record sheet.
November 28th For details see the November 28th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:November 28th 2023 investor relations activities record sheet.
November 29th For details see the November 29th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:November 29th 2023 investor relations activities record sheet.
November 30th For details see the November 30th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:November 30th 2023 investor relations activities record sheet.
December 1st For details see the December 1st 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:December 1st 2023 investor relations activities record sheet.
December 5th For details see the December 5th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:December 5th 2023 investor relations activities record sheet.
December 11th For details see the December 11th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:December 11th 2023 investor relations activities record sheet.
December 12th For details see the December 12th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:December 12th 2023 investor relations activities record sheet.
December 14th For details see the December 14th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:December 14th 2023 investor relations activities record sheet.
35Chongqing Changan Automobile Company Limited 2023 Annual Report
December 15th For details see the December 15th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:December 15th 2023 investor relations activities record sheet.
December 21st For details see the December 22nd 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:December 21st 2023 investor relations activities record sheet.
December 26th For details see the December 27th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:December 26th 2023 investor relations activities record sheet.
December 28th For details see the December 29th 2023 Shenzhen stock exchange
2023 Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:December 28th 2023 investor relations activities record sheet.
XIII Implementation of the “Parallel Improvement of Quality and Return” Initiative
Whether the company has disclosed the “Parallel Improvement of Quality and Return” Initiative.√ Yes □ No
In order to implement the guiding ideology of "revitalizing the capital market and boosting investor confidence" proposed by the
Politburo meeting of the Communist Party of China Central Committee better play the "three roles" of central enterprises in
scientific and technological innovation industrial control and security support safeguard the interests of all shareholders enhance
investor confidence and promote the long-term healthy and sustainable development of the company the company has formulated
the "dual improvement of quality and return" action plan. The specific measures include firmly guiding the strategy to accelerate the
transformation into an intelligent low-carbon travel technology company improving the standard operation level of corporate
governance strengthening information disclosure to enhance transparency and valuing shareholder returns to improve investor
satisfaction. For specific details please refer to the "Announcement on the Action Plan for" Double Improvement of Quality and
Return "(Announcement No. 2024-13) disclosed by the company on March 7th 2024 on the Juchao Information Network
(www.cninfo. com. cn).In accordance with the provisions of the Company Law and the Articles of Association regarding profit distribution policies
combined with the actual situation and development needs of the company and in order to fully repay shareholders the company's
profit distribution plan for 2023 is as follows: based on the total share capital of 9917289033 shares a cash dividend of RMB 3.43
(including tax) will be distributed to all shareholders for every 10 shares. The company plans to distribute a total of RMB
3401630138.32 (including tax) in cash accounting for 30.03% of the net profit attributable to shareholders of the listed company in
the consolidated financial statements for this year. No bonus shares will be issued and no share capital will be converted from
reserve funds. The cash dividend amount for this year increased by 45.31% year-on-year fully sharing the company's development
achievements with investors.The company is scheduled to hold the 2023 annual performance briefing on April 19th 2024 (Friday) from 3:00 pm to 5:00 pm
through the "Chang'an Automobile Video Account" "Panoramic Roadshow" and "Jinmen Finance". Investors are welcome to
actively participate.`
36Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 4 Corporate Governance
I. The Basic Situation of Corporate Governance
During the reporting period the company continuously improved its corporate governance structure established and improved
its internal management and control system and continuously promoted the improvement of the company's standardized operation
level in strict accordance with the requirements of the Company Law the Securities Law and the relevant regulatory documents of
the China Securities Regulatory Commission and Shenzhen Stock Exchange. The actual situation of corporate governance of the
company meets the requirements of the regulatory documents of the China Securities Regulatory Commission on listed company
governance.During the reporting period according to the new normative documents issued by the China Securities Regulatory Commission
and the Shenzhen Stock Exchange the company improved a series of standardized management systems such as the Articles of
Association the Rules of Procedure of the General Meeting of Shareholders the Rules of Procedure of the Board of Directors the
Rules of Procedure of the Board of Supervisors and the Measures for the Administration of Authorization of the Board of Directors
continuously optimized the construction of corporate governance-related systems and management processes promoted the
implementation in an orderly manner and strived to improve the company's decision-making efficiency and governance effectiveness.Implement the reform of the independent director system of listed companies revise the work system for independent directors and
the work rules of the audit committee in accordance with the Measures for the Administration of Independent Directors of Listed
Companies issued by the China Securities Regulatory Commission and formulate the work rules for special meetings of independent
directors so as to provide institutional support for independent directors to play the role of participation in decision-making
supervision checks and balances and professional consultation in the board of directors.In 2023 in accordance with the provisions of the Articles of Association the company will hold a timely general election
establish the ninth board of directors to complete the selection and appointment of the chairman senior management and secretary of
the board of directors. Taking the re-election of the board of directors as an opportunity the composition of the special committee
under the board of directors was optimized the nomination function was added the remuneration and appraisal committee was
changed to the nomination and remuneration appraisal committee and the division of responsibilities and job requirements of each
special committee were systematically integrated and the composition and main responsibilities of the special committee were
improved.The company has established an effective internal control system over the financial report. According to company’s operation
and management characteristics the company strictly implemented the “Enterprise Accounting Standards” improved the basic
accounting management established a sound financial system optimized accounting and statements preparation process
strengthened the financial supervision conducted the in-depth implementation of financial management established the management
foundation work accounting and finance management authorization the monetary fund management financing purchasing and
payment fixed assets projects under construction accounting policy accounting estimate consolidated financial statements cost
management inventory management financial analysis and other financial management system to ensure the quality of accounting
information and the safety of the Company property. According to internal control deficiencies identified standards of the financial
report there is no internal control defects over financial reporting in the report period. The full text of the internal control
self-evaluation report is published on http://www.cninfo.com.cn onApril 18th 2024.Whether there are differences between corporate governance and the related requirements of “Company Law” and China
CSRC.□ Yes √ No
There is no difference between corporate governance and the related requirements of “Company Law” and China CSRC.II. The Independence of the Company in Terms of Assets Personnel Finance Organization
And Business Relative to Controlling Shareholders and Actual Controllers
The Company is completely independent from the controlling shareholders and actual controllers in terms of business assets
personnel institutions and finance.
1. Business: The business of Changan Auto is independent of controlling shareholders and actual controllers. It makes
independent decisions operates independently and is responsible for its own profits and losses. It has a complete business and
industrial system including procurement production sales and research and development. The controlling shareholders and actual
controllers do not directly or indirectly interfere in the production and business activities of Changan Auto.
2. Personnel: The controlling shareholder and the actual controller are completely independent from the personnel labor and
personnel of Changan Auto. They have independent staff teams complete labor management performance appraisal and other
systems and salary systems and independently sign the Labor Contract with employees according to law.
3. Assets: The assets of controlling shareholders and actual controllers are strictly separated from Changan Auto and the
property rights are clearly defined. There is no direct or indirect interference in the production and operation of Changan Auto.Changan Auto has independent production system auxiliary production system supporting facilities land use rights and other assets
legally owns land real estate machinery and equipment trademarks related to production and operation and has an independent raw
37Chongqing Changan Automobile Company Limited 2023 Annual Report
material procurement and product sales system.
4. Organization: The controlling shareholder the actual controller and Changan Auto have independent production operation
and office places. There is no mixed operation.
5. Finance: The controlling shareholder the actual controller and Changan Auto have independent finance and accounting
departments with independent finance and accounting personnel and have established independent accounting system and financial
management system. They make financial decisions independently open bank accounts and pay taxes independently and do not
share bank accounts. Changan Auto handles tax registration independently and pays tax independently according to law.Ⅲ. Competition Situation
□Applicable √ Not applicable
IV. Annual Shareholders Meeting and Extraordinary General Meeting during the Reporting
Period
1. Shareholders meeting during the reporting period
Investors’
Meeting Session Type participation Opening Time Disclosure Time Resolution Index
Ratio
http//www.cninfo.com.cn
2022 Annual
Shareholders Meeting Annual 50.620% June 28th2023 June 29th 2023
2022 Annual Shareholders Meeting
Resolution Announcement
(Announcement Number: 2023-26)
http//www.cninfo.com.cn
2023 The First 2023 The First Extraordinary
Extraordinary EGM 40.107% July 27th 2023 July 28th 2023 General Meeting Resolution
General Meeting Announcement (Announcement
Number: 2023-49)
http//www.cninfo.com.cn
2023 The Second September 15th September 16th 2023 The Second ExtraordinaryExtraordinary EGM 39.109% 2023 2023 General Meeting ResolutionGeneral Meeting Announcement (Announcement
Number: 2023-66)
2. The shareholders of preferred shares with voting right restored request to convene an extraordinary
general meeting
□Applicable √ Not applicable
V. Directors Supervisors and Senior Management Personnel
1. Basic information
Share Share
Shares held volume volume Shares
Appoint Start End at beginning increased decreased
Other held at the Reasons for
Name Gender Age Position ment date date of reporting in the in the
increase/de end of the increase
status period reporting reporting crease reporting /decrease in(share） period period (share) period shares
share share （share)（ ） （ ）
Chairman
Zhu M 58 Secretary of Incumbe 2020-06 2026-07Huarong the Party nt -22 -27 500864 500864
Committee
Deng Wei M 52 Director Incumbe 2023-09 2026-07nt -15 -27
Shi M 43 Director Incumbe 2024-01 2026-07Yaoxiang nt -30 -27
Jia Lishan M 53 Director Incumbe 2023-07 2026-07
38Chongqing Changan Automobile Company Limited 2023 Annual Report
nt -27 -27
Zhao Fei M 49 Director Incumbe 2023-07 2026-07nt -27 -27 353080 353080
Director
President
Wang Jun M 51 and Deputy Incumbe 2020-06 2026-07nt -22 -27 364000 364000Party
Secretary
Director
Zhang CFO
Deyong M 48 Secretary of
Incumbe 2020-06 2026-07
the Board of nt -22 -27
353080353080
Directors
Cao M 52 Independent Incumbe 2020-06 2026-07Xingquan Director nt -22 -27
Yang M 63 Independent Incumbe 2021-09 2026-07 PersonalXinmin Director nt -17 -27 0 30000 30000 reasons
Li M 60 Independent Incumbe 2022-06 2026-07Keqiang Director nt -15 -27
Ding Wei M 63 Independent Incumbe 2022-06 2026-07Director nt -15 -27
Tang M 61 Independent Incumbe 2022-06 2026-07Guliang Director nt -15 -27
Zhang M 45 Independent Incumbe 2022-06 2026-07Ying Director nt -15 -27
Chairman of
Wen Hong M 57 the Incumbe 2023-07 2026-07Supervisory nt -27 -27
Board
Sun M 57 Supervisor Incumbe 2020-06 2026-07Dahong nt -22 -27
Employee
Shi Supervisory Incumbe 2021-11 2026-07
Shengwei M 52 Board nt -08 -27
Member
Employee
Luo Yan F 49 Supervisory Incumbe 2020-06 2026-07Board nt -19 -27 0 500 500
Personal
reasons
Member
Deputy
Tan Secretary of Incumbe 2023-10 2026-07
Benhong M 48 the Party nt -24 -27 353080 353080
Committee
Pu Secretary of
Xingchua M 52 Discipline Incumbe 2023-03 2026-07
n Inspection nt -03 -27Commission
Executive
Ye Pei M 48 Vice Incumbe 2020-07 2026-07
President nt -13 -27
353080353080
Executive
Chen Wei M 51 Vice Incumbe 2023-07 2026-07nt -13 -27 353080 353080President
Li ExecutiveM 42 Vice Incumbe 2022-01 2026-07Mingcai nt -28 -27 353080 353080President
Yang Executive Incumbe 2022-12 2026-07
Dayong M 49 Vice nt -28 -27 252200 252200President
Executive
Peng Tao M 45 Vice Incumbe 2022-12 2026-07
President nt -28 -27
248612248612
Klaus Vice Incumbe 2023-10 2026-07
Zyciora M 62 President nt -07 -27
Zhang
Xiaoyu M 44
Executive Incumbe 2023-12 2026-07
Vice nt -01 -27 248612 248612
39Chongqing Changan Automobile Company Limited 2023 Annual Report
President
Wang M 41 Vice Incumbe 2022-01 2026-07Xiaofei President nt -12 -27 171990 171990
Wang Hui M 42 Vice Incumbe 2022-09 2026-07President nt -22 -27 171990 171990
Zhang Vice Incumbe 2023-01 2026-07
Fatao M 41 President nt -05 -27 248612 248612
Deng Vice Incumbe 2023-12 2026-07
Chenghao M 37 President nt -01 -27
Li Jun F 54 Secretary of Incumbe 2020-07 2026-07the Board nt -13 -27 248612 248612
Secretary of
Hua
Zhanbiao M 56
Discipline Outgoing 2020-07 2023-03Inspection -13 -03 353080 353080
Commission
Zhou
Kaiquan M 50 Director Outgoing
2021-092023-05
-17-30
Chairman of
Lian Jian M 60 the Outgoing 2021-09 2023-05Supervisory -17 -31
Board
Xian M 53 Director Outgoing 2022-07 2023-07Zhigang -26 -27
Liu Gang M 57 Director Outgoing 2021-02 2023-07-18 -27
Ren
Xiaochan M 67 Independent Outgoing 2020-06 2023-07
g Director -22 -27
Wei M 54 Independent Outgoing 2020-06 2023-07Xinjiang Director -22 -27
Deputy
Yuan Secretary of 2020-07 2023-10
Mingxue M 55 the Party Outgoing -13 -24 364000 364000
Committee
Zhang Bo M 45 Director Outgoing 2021-02 2023-12-18 -26
Total -- -- -- -- -- -- 5291052 30500 5321552 --
Whether there are any outgoing directors and supervisors and the dismissal of senior management personnel during the
reporting period
√Yes □ No
See “V. 1. Changes in Directors Supervisors and Senior Management Personnel” in Chapter 4.Changes in Directors Supervisors and Senior Management Personnel
√ Applicable □ Not applicable
Name Position Type Date Reason
Zhang Fatao Vice President Appointed January 5th 2023 Appointment
Secretary of Discipline
Pu Xingchuan Inspection Commission(Senior Management Appointed March 3rd 2023 Appointment
Personnel)
Jia Lishan Director Elected July 27th 2023 Appointment
Zhao Fei Director Elected July 27th 2023 Appointment
Wen Hong Chairman of theSupervisory Board Elected July 27th 2023 Appointment
Deng Wei Director Elected September 15th 2023 Appointment
Klaus Zyciora Vice President Appointed October 7th 2023 Appointment
Deputy Secretary of the
Tan Benhong Party Committee(Senior Management Appointed October 24th 2023 Appointment
Personnel)
Zhang Xiaoyu Executive VicePresident Appointed December 1st 2023 Appointment
40Chongqing Changan Automobile Company Limited 2023 Annual Report
Deng Chenghao Vice President Appointed December 1st 2023 Appointment
Shi Yaoxiang Director Elected January 30th 2024 Appointment
Secretary of Discipline
Hua Zhanbiao Inspection Commission Dismissal from(Senior Management Employment March 3rd 2023 Job change
Personnel)
Zhou Kaiquan Director Outgoing May 30th 2023 Job change
Lian Jian Chairman of theSupervisory Board Outgoing May 31th 2023 Reaching the statutory retirement age
Xian Zhigang Director Outgoing July 27th 2023 General election
Liu Gang Director Outgoing July 27th 2023 General election
Ren Xiaochang Independent Director Leave office uponexpiration of term July 27th 2023 Leaving office after 6 years of tenure
Wei Xinjiang Independent Director Leave office uponexpiration of term July 27th 2023 Leaving office after 6 years of tenure
Deputy Secretary of the
Yuan Mingxue Party Committee Dismissal from(Senior Management Employment October 24th 2023 Job change
Personnel)
Tan Benhong Executive Vice Dismissal fromPresident Employment October 24th 2023 Job change
Zhang Xiaoyu Vice President Dismissal fromEmployment December 1st 2023 Job change
Zhang Bo Director Outgoing December 26th 2023 Job change
2. Incumbency
Professional background work experience and duties and responsibilities of incumbent Directors Supervisors and Senior
Manager Personnel
(1) Directors
Mr. Zhu Huarong Chairman and Party Secretary Chairman of Changan Ford Motor Co. Ltd. Chairman of Avtar Technology
(Chongqing) Co. Ltd. and Director of Nanchang Jiangling Investment Co. Ltd. Born in 1965 holds a master's degree and is a senior
engineer. Formerly served as the Deputy Director of the Technology Department Chief Engineer of the Automobile Manufacturing
Plant Assistant to the President and Director of the Technology Center Director of the Science and Technology Committee Deputy
General Manager of the Company Dean of the Engineering Research Institute Vice President and Party Secretary of Changan
Automobile Deputy Secretary of the Party Committee of Changan Automobile President of Changan Automobile and Director of
China Changan Automobile Group.Mr. Deng Wei Director. Born in 1971 holds a master's degree and is a senior engineer. The current Director of Strategic
Development Department of China Ordnance Equipment Group Executive Director of China Ordnance Equipment Group
Information Center Co. Ltd. concurrently serving as Chairman of Fujian Chenguang Qiming Technology Co. Ltd. and Chairman of
China Ordnance Equipment Group Fuzhou University Advanced Technology Innovation Research Institute. Formerly served as the
Deputy Director of the Development Planning Department Deputy Director of the Strategic Development Department and Director
of the Science and Technology Information Technology Department of the Ordnance Equipment Group. He was also a member of the
Standing Committee and Deputy Governor of the Honghe Hani and Yi Autonomous Prefecture in Yunnan Province a director of
Chongqing Chang'an Wangjiang Industrial Group Co. Ltd. and a director of Xi'an Kunlun Industrial (Group) Co. Ltd.Mr. Shi Yaoxiang Director. Born in 1980 holds a master's degree and is a senior accountant. The current Director of Finance
Department of Ordnance Equipment Group Director of Southern Industrial Asset Management Co. Ltd. and Director of Finance
Co. Ltd. of Ordnance Equipment Group. Formerly served as a director and chief accountant of Sichuan Huachuan Industry Co. Ltd.director and chief accountant of Changan Industry chief accountant of Chongqing Changan Wangjiang Industrial Group Co. Ltd.deputy director of the finance department of Ordnance Equipment Group and director general manager and deputy party secretary
of Southern Industrial Asset Management Co. Ltd.Mr. Jia Lishan Director. Born in 1970 holds a PhD and is a senior engineer. The current Director of Industry Promotion
Department of Ordnance Equipment Group and Chairman of Jinan Qingqi Suzuki Motorcycle Co. Ltd. Formerly served as the
Director of the Industrial Development Department Director of the Comprehensive Office and Deputy Director of the Development
Planning Department of the Optoelectronics Department of the Ordnance Equipment Group Chairman and Party Secretary of
Chongqing Dajiang Industry Co. Ltd. and Deputy Director of the Industrial Promotion Department of the Ordnance Equipment
Group.Mr. Zhao Fei Director. Born in 1974 holds a master's degree and is a senior engineer. The current Chairman and Party
Secretary of China Changan Automobile Group Co. Ltd. Formerly served as the Director of the Engine Technology Institute and
41Chongqing Changan Automobile Company Limited 2023 Annual Report
Deputy Factory Director of the Engine Fourth Factory of Changan Automobile Research Institute Deputy General Manager of the
Science and Technology Development Department of China Changan Group Director and General Manager of Harbin Dongan
Automobile Engine Manufacturing Co. Ltd. Party Secretary and Chairman Assistant to the President and Minister of Strategic
Planning Department and Party Branch Secretary of Changan Automobile Vice President and Executive Vice President of the
company Party Secretary and Executive Vice President of Changan Ford and President and Deputy Party Secretary of China
Changan Automobile Group.Mr. Wang Jun Director President and Deputy Secretary of the Party Committee Executive Director and General Manager of
Chongqing Changan Technology Co. Ltd. Chairman of Deepal Automotive Technology Co. Ltd. Director of Changan Ford
Automobile Co. Ltd. Chairman of Changan Mazda Automobile Co. Ltd. Chairman of Changan Mazda Engine Co. Ltd. and
Chairman of Era Changan Power Battery Co. Ltd. Born in 1972 holds a master's degree and is a senior engineer. Formerly served as
Vice President and Director of Product Planning Department of Changan Automobile Engineering Research Institute Manager of
Product Management Department and Director of Marketing Department of Sales Co. Ltd. Assistant to Changan Automobile
President and General Manager of Sales Co. Ltd. Secretary of the Party Committee and General Manager of Commercial Vehicle
Business Unit Executive Vice President of the company representative of the integration of industrialization and industrialization
management Chairman of the Trade Union and President of Changan Automobile University.Mr. Zhang Deyong Director Chief Accountant Board Secretary Director of Changan Ford Motor Co. Ltd. Director of
Nanchang Jiangling Investment Co. Ltd. Director of Changan Automobile Finance Co. Ltd. and Director of Ordnance Equipment
Group Finance Co. Ltd. Born in 1975 Master of Accounting (MPAcc) Senior Accountant. Formerly served as the Director and
Assistant Director of the Finance Department of the Automation Research Institute of the Ordnance Equipment Group Deputy
Director of the Finance Department of the Finance Department of the Ordnance Equipment Group (on secondment) Director Chief
Accountant and Party Committee Member of Chongqing Changjiang Electric Co. Ltd. Deputy Director of the Finance Department
of the Ordnance Equipment Group (on secondment) Director Chief Accountant and Party Committee Member of Changan Industry
Executive Vice President of Changan Automobile and General Legal Advisor of the company.Mr. Cao Xingquan independent director. Born in 1971 with a Doctor of Laws degree. Currently a professor at the School of
Civil and Commercial Law of Southwest University of Political Science and Law and a doctoral supervisor in the field of civil and
commercial law; Also serving as an independent director of Construction Industry (002265) and Fuling Electric Power (600452).Having 23 years of experience in teaching and researching civil and commercial law including 20 years of teaching at Southwest
University of Political Science and Law focusing on research in commercial law company law securities law and insurance law. He
had led or participated in more than 20 scientific research projects published more than 60 academic papers in law published
academic works and co edited more than 10 teaching materials. Formerly served as Deputy Chief Judge of the Fourth Civil Trial
Division of the First Intermediate People's Court of Chongqing member of the Civil Administrative Procuratorate Expert Committee
of the People's Procuratorate of Chongqing and member of the Expert Advisory Committee of the First and Fifth Intermediate
People's Courts of Chongqing.Mr. Yang Xinmin independent director. Born in 1960 with a PhD in Applied Mathematics. Currently a professor at the School
of Mathematical Sciences Chongqing Normal University director of the Chongqing National Center for Applied Mathematics and
director of the Key Laboratory of Optimization and Control of the Ministry of Education; Also serving as a director of Chongqing
Immediate Science and Technology Development Foundation and an independent director of Construction Industry (002265). Mainly
engaged in systematic research in the field of operations research (mathematics) awarded the title of National Excellent Science and
Technology Worker in 2012 National Outstanding Professional and Technical Talent in 2014 and elected as an academician of the
International Academy of Systems and Control Sciences in 2016. Hosted over 10 projects funded by the National Natural Science
Foundation of China including 1 major project 2 key projects and 1 international (regional) project. Received multiple awards
including the National Natural Science Second Prize the Ministry of Education Natural Science First Prize and the Chongqing
Supreme Science and Technology Outstanding Contribution Award. Formerly served as Vice Chairman of the Chinese Mathematical
Society and Vice Chairman of the Chinese Society of Systems Engineering.Mr. Li Keqiang independent director. Born in 1963 with a Ph.D. in Automotive Engineering. He is currently a professor and
doctoral supervisor of the School of Vehicles and Transportation of Tsinghua University director of the National Key Laboratory of
Intelligent Green Vehicles and Transportation of Tsinghua University and an academician of the CAE Member; He also serves as an
independent director of the listed company navinfo (002405) and the non listed company Guangqi Aian New Energy Vehicle Co. Ltd.Formerly served as the Director of the Department of Automotive Engineering at Tsinghua University.Mr. Ding Wei independent director. Born in 1960 with a Bachelor's degree in Finance. The current founder and chairman of
Xiamen Borun Capital Investment Management Co. Ltd; Also serving as independent directors of Guotai Junan (601211) and
Hengsheng Electronics (600570). Formerly served as an economist and department head at the World Bank and International
Monetary Fund President of Deutsche Bank China Chairman of the Investment Banking Business Management Committee and
Head of the Investment Banking Department at China International Finance Corporation member of the Global Senior Management
Committee and Global Investment Decision Committee at Temasek concurrently serving as President of China President and
Chairman of CICC Capital Operations Limited and Independent Non Executive Director of Shenzhou Car Rental Co. Ltd.Mr. Tang Guliang independent director. Born in 1962 with a PhD in Finance. Current Professor of Finance at the School of
International Business University of International Business and Economics; He also serves as an independent director of listed
companies Kyushu Tong (600998) and Fosun Pharmaceuticals (600196) as well as non listed companies Three Gorges Capital Co.Ltd. and China Construction Investment Leasing Co. Ltd. Mainly engaged in teaching and research in management accounting and
financial management with unique and influential achievements in budget management group control performance evaluation
financial strategy and capital operation. I have published 4 monographs and 40 works and have published over 120 papers in
high-end academic journals such as Accounting Review TAR and Management World. Formerly served as an independent director of
companies such as Minmetals Development (600058) Changjiang Securities (000783) and Guangfeng Technology (688007).Mr. Zhang Ying independent director. Born in 1978 with a Ph.D. in Management. Current Professor and Vice Dean of
42Chongqing Changan Automobile Company Limited 2023 Annual Report
Guanghua School of Management at Peking University; He also serves as an independent director of China Film (600977) and Mein
Gene (06667. HK). The research focuses on the intersection of psychology and economics and excels in using experimental and data
methods to study how individual behavioral decisions and social attitudes affect corporate strategy and policy formulation. Received
awards such as the Outstanding Young Scholar Award from the American Academy of Marketing Sciences and the Global Top
Marketing Scholar Award from the American Marketing Association. He has been selected as one of the National Youth Top Talents
by the Organization Department of the CPC Central Committee awarded the Outstanding Youth Fund by the National Natural
Science Foundation of China and honored as a Cultural Master and "Four First Batch" Talent by the Propaganda Department of the
CPC Central Committee. Formerly taught at the University of Texas in the United States.
2. Supervisors
Mr. Wen Hong Chairman of the Supervisory Board. Born in 1966 holds a master's degree and is a senior engineer. The current
Deputy Director and Senior Manager of the Southwest Regional Department of the Weapon Equipment Group. Formerly served as
the Deputy Director of the Office of Chongqing Construction Industry (Group) Co. Ltd. Deputy Secretary of the Party Committee
Secretary of the Discipline Inspection Commission and Deputy General Manager of Chongqing Construction Motorcycle Co. Ltd.Deputy Secretary of the Party Committee and Deputy General Manager of Chongqing Construction Electromechanical Co. Ltd.Chairman and Party Secretary of Baoding Tianwei Baobian Co. Ltd. and Chairman and General Manager of Baoding Electric
Equipment Co. Ltd.Mr. Sun Dahong Supervisor. Born in 1966 master's degree senior economist. Currently he is the Deputy Director and Senior
Professional of the Audit Risk Control and Legal Department of the Weapon Equipment Group. He has served as the Deputy Director
of the Legal Department of the General Office of the Weapon Equipment Group the Deputy Director and Director of the Legal
Advisory Office the Director of the Legal Affairs Department the Director of the Security and Confidentiality Bureau the Deputy
Director of the Office and the Deputy Director of the Legal Department.Mr. Shi Shengwei Employee Supervisor. Born in 1971 bachelor’s degree political engineer. Currently he is the Discipline
Inspection Officer of the Supervision Division of Changan Automobile Discipline Inspection Department. He has served as a
workshop group and machining worker in Changan Company a mechanic in the first machining section of the Engine Branch a
publicity officer and office director of the Party-Masses Studio of the Comprehensive Management Division of the Fourth Factory a
director of the Party-Masses Studio of the Comprehensive Management Division of Changan Automobile Jiangbei Engine Factory a
discipline inspection and supervision officer of the Discipline Inspection Division of the Discipline Inspection and Supervision
Department and a manager of the Changan Mazda Integrity Employment Office.Ms. Luo Yan employee supervisor. Born in 1974 bachelor’s degree assistant economist. Currently she is the director of the
Jiangbei Branch of the Shared Service Center of Changan Automobile Human Resources Department. She has served as a
maintenance electrician engineering surveyor labor technology quota officer and planner in Workshop 232 of the Third Factory of
Changan Company as well as the director of the Employee Welfare Office of the Salary Management Office of the Human
Resources Department of Changan Automobile and the director of the Third Office of Salary and Welfare Management.
3. Senior Management other than Directors and Supervisors
Mr. Tan Benhong Deputy Secretary of the Party Committee Chairman of the Trade Union and General Manager of Changan
Learning Center. Born in 1975 holds a master's degree and is a senior engineer. Formerly served as the Director of the Technical
Planning Research Institute of Changan Automobile Engineering Research Institute Deputy Chief Engineer and Director of the
Technical Planning Research Institute of the Automobile Engineering Research Institute Vice President of Changan Automobile
Engineering Research Institute President of Beijing Research Institute Minister of Marketing Department Minister of Brand Public
Relations Department and Minister of Product Planning Department. Also served as the Executive Vice President Party Secretary
Company Spokesperson General Manager of the Styling Design Institute Executive Vice President of Changan Automobile
Engineering Research Institute and CEO of Avrta Technology (Chongqing) Co. Ltd.Mr. Pu Xingchuan Secretary of the Commission for Discipline Inspection and Director of the Office of the Leading Group for
Inspection Work. Born in 1971 master's degree senior economist. He has served as Deputy Secretary of the Party Committee
Secretary of the Discipline Inspection Commission and Chairman of the Labor Union of Chongqing Qingshan Industry Co. Ltd.Director of the Office of the Southwest Military Industry Bureau Secretary of the Party Committee Secretary of the Discipline
Inspection Commission and Chairman of the Labor Union of Southwest Ordnance Industry Co. Ltd. Director General Manager
and Deputy Secretary of the Party Committee of Wanyou Automobile Investment Co. Ltd. and Chairman and Secretary of the Party
Committee of Southwest Ordnance Industry Co. Ltd.Mr. Ye Pei Executive Vice President and General Manager of Changan Brand Business Unit. Born in 1975 master's degree
engineer. He used to be the assistant to the general manager of Changan Nanjing the deputy director of Changan Automobile
Quality Department the deputy director of the company's office the general manager and secretary of the party committee of
Changan Nanjing the deputy general manager of the commercial vehicle business department the assistant to the president the
director of the strategic planning department the secretary of the party branch of the company the general manager and secretary of
the party committee of the car sales business department the general manager and secretary of the party committee of the passenger
vehicle marketing business department the vice president of Changan Automobile the director of the passenger vehicle operation
management committee and the director of the Auchan operation management committee.Mr. Chen Wei Executive Vice President General Legal Advisor Chief Compliance Officer Director of Changan Ford Motor
and Director of China Changan Automobile Group. Born in 1972 bachelor's degree political engineer. He has served as Deputy
Factory Director Factory Director and Secretary of the Party Committee of Changan Automobile Manufacturing Factory Vice
President of Personnel and Secretary of the Discipline Inspection Commission of Changan Ford Director of the Logistics
Department of Changan Automobile Manufacturing Secretary of the Party Branch and OTD Project Director of the company
General Manager and Secretary of the Party Committee of Beijing Changan Automobile Company Director of the Construction
Project of Beijing Research Institute Secretary of the Party Committee of Chongqing Lingyao Automobile Co. Ltd. and Vice
President and Deputy Director of Passenger Vehicle Management Committee Deputy Director of Auchan Operation Management
43Chongqing Changan Automobile Company Limited 2023 Annual Report
Committee.of Changan Automobile.Mr. Li Mingcai Executive Vice President and Management Representative of the Integration of Industrialization and
Urbanization. Born in 1981 with a master's degree. He has served as General Manager Assistant and Sales Regional Manager of
Changan Automobile's Overseas Business Development Department Deputy General Manager of Overseas Business Development
Department General Manager of International Companies Executive Deputy General Manager of Overseas Business Development
Department Project Director of Russian JV Manager of Brazil Project Team General Manager of Overseas Business Department
General Legal Advisorand Vice President of Changan Automobile.Mr. Yang Dayong Executive Vice President Director Executive Vice President and Party Secretary of Changan Ford Motor
Chairman President and Product Vice President of Changan Ford New Energy Vehicle Technology Co. Ltd. Born in 1974 with a
bachelor's degree. Formerly served as Deputy Director of Changan Automobile Marketing Department Deputy Director and Minister
of Commercial Vehicle Business Management Department Minister of Brand Public Relations Department Party Branch Secretary
and Company News Spokesperson Senior Project Director of High end Automobile Brand Project Team Senior Project Director of
Intelligent Industry Development Project Team General Manager and Party Secretary of Changan New Energy and Vice President
of Changan Automobile.Mr. Peng Tao Executive Vice President Chairman of Chongqing Changan Kaicheng Automotive Technology Co. Ltd.Chairman of Chongqing Changan Kuayue Vehicle Co. Ltd. Chairman of Chongqing Changan Kuayue Vehicle Marketing Co. Ltd.Director of Nanjing Lingxing Technology Co. Ltd. Director and Investment Committee Member of Nanjing Lingxing Industry
Fund Management Co. Ltd. and Investment Decision Committee Member of Nanjing Lingxing Equity Investment Partnership
Enterprise. Born in 1978 holds a bachelor's degree and is a senior engineer. Formerly served as Vice Minister Executive Vice
General Manager and Party Branch Secretary of Changan Automobile Product Planning Department Executive Vice General
Manager General Manager and Party Committee Secretary of Passenger Vehicle Marketing Business Unit and Vice President of
Changan Automobile.Mr. Klaus Zyciora Vice President. Born in 1961 German. Formerly served as interior designer exterior director and design
leader for Volkswagen as well as design leader for Volkswagen Group.Mr. Zhang Xiaoyu Executive Vice President Chairman of the Company Science and Technology Association Director of the
National Key Laboratory of Intelligent Vehicle Safety Technology and Chairman of Chongqing Changxian Intelligent Technology
Co. Ltd. Born in 1979 holds a PhD and is a senior engineer. Formerly served as Deputy General Manager and General Manager of
the UK R&D Center at Changan Automotive Power Research Institute Deputy General Manager of the Power Research Institute
Director of the company's H13T project Director of the NE series powertrain project General Manager of the Power Research
Institute General Manager of the Product Development Department II General Manager of Changan Forward looking Technology
Research Institute and Vice President of the company.Mr. Wang Xiaofei Vice President. Born in 1982 bachelor’s degree engineer. He used to be the Deputy Director of the Product
Department of Changan Commercial Vehicle Business Unit the Deputy Director of the Product Department of Auchan Automotive
Business Unit the Deputy General Manager and Product Marketing Director of Passenger Vehicle Marketing Business Unit the
Deputy General Manager of Product Planning Department and the General Manager of Auchan Automotive Business Unit.Mr. Wang Hui Vice President Chairman of Jiangling Holdings Co. Ltd. and Director of Changan Ford Motor Co. Ltd. Born
in 1981 with a bachelor's degree in engineering. Formerly served as the Director of the New Business Coordination Project Group of
Changan Automobile Director of the Company Office and Party Branch Secretary Executive Vice President and Party Secretary of
Changan Engine Head of Changan Mazda New Energy Cooperation Project Executive Vice President and Party Secretary of
Changan Mazda General Manager of Overseas Business Development Department and General Manager of Southeast Asia Business
Unit.Mr. Zhang Fatao Vice President. Born in 1982 bachelor’s degree assistant engineer. He has served as Deputy Director of the
Office of Changan Automobile Company General Manager of the Technology and Project Management Department Secretary of
the Party Branch Executive Vice Chairman of the Association for Science and Technology PDS Project Director Director of the
Company's Office Secretary of the Party Branch Director of the Party Committee Office Director of the Board Office General
Manager of the Human Resources Department Director of the Party Committee Organization Department and Director of the Talent
Management Department of Changan Learning Center.Mr. Deng Chenghao Vice President General Manager and Party Secretary of Deepal Automotive Technology Co. Ltd. Born in
1986 holds a PhD and is a senior engineer. Formerly served as Assistant General Manager and Deputy General Manager of Power
Development Department of Chongqing Changan New Energy Vehicle Technology Co. Ltd. Director of C385EV-E series project
General Manager and Party Secretary of Chongqing Changan New Energy Vehicle Technology Co. Ltd.Ms. Li Jun Secretary of the Board of Directors and Senior Expert of the Board Office. Born in 1969 Master of Business
Administration Senior Accountant. She has served as the Director of the Securities Division of the Finance Department of Changan
Automobile the Director of the Capital Operations Division of the Finance Department the Director of the Board of Directors Office
the Deputy Director of the Finance Department and the Deputy General Manager of the Capital Operations Department.Employment in shareholders’ work unit
√Applicable □ Not applicable
Whether having
Name Name of shareholders’ work Position in shareholders’ work Term start Term end
renumeration or
unit unit date date allowance inshareholders’ work
unit
Deng Wei China South Industries Group Director of StrategicCo. Ltd. Development Department Y
44Chongqing Changan Automobile Company Limited 2023 Annual Report
Shi Yaoxiang China South Industries GroupCo. Ltd. Director of Finance Department Y
Jia Lishan China South Industries Group Director of Industry PromotionCo. Ltd. Department Y
Zhao Fei China Changan AutomobileGroup Co. Ltd Chairman and Party Secretary Y
Wen Hong China South Industries Group
Deputy Director and Senior
Co. Ltd. Specialist of Southwest Regional YDepartment
China South Industries Group Deputy Director and SeniorSun Dahong Co. Ltd. Specialist of Audit Risk Control Yand Legal Department
Chen Wei China Changan AutomobileGroup Co. Ltd Director N
Position in
other work unit None
Employment status in other units
√Applicable □ is not applicable
Term Whether get
Name Name of other Termwork units Position in other work units startdate end date
allowance in
other work unit
Southwest Professor of the School of Civil and Commercial Law of
Cao Xingquan University ofPolitical Science Southwest University of Political Science and Law and a Y
& Law doctoral tutor in the direction of civil and commercial law
Professor of the School of Mathematical Sciences of
Chongqing Chongqing Normal University Director of the Chongqing
Yang Xinmin Normal National Center for Applied Mathematics Director of the Y
University Key Laboratory of Optimization and Control of the
Ministry of Education
Professor and doctoral supervisor of the School of
Tsinghua Vehicle and Transportation of Tsinghua UniversityLi Keqiang University Director of the National Key Laboratory of Intelligent YGreen Vehicles and Transportation of Tsinghua
University academician of the CAE Member
Xiamen Borun
Capital
Ding Wei Investment Founder and Chairman of Xiamen Borun Capital
Management Co. Investment Management Co. Ltd.Y
Ltd
Professor Department of Finance International Business
University of School University of International Business and
International Economics contributing editor and reviewer ofTang Guliang Business and "Accounting Research" deputy editor of "China Y
Economics Management Accounting" management accountingconsulting expert from the Ministry of Finance member
of the CIMA Research Committee in the United Kingdom
Distinguished Professor Boya of Peking University Vice
Dean of Guanghua School of Management Director of
Peking University Management Case Study Center
Zhang Ying Peking Senior Researcher of China Management ResearchUniversity Center at Cambridge University UK Professional Editor Y
in Chief of Chinese Journal of Management Science and
Executive Vice Editor of Chinese Journal of Marketing
Science
Position in
other work unit None
Securities regulator’s punishment to the current and former directors supervisors and senior management during the
reporting period in recent three years.□Applicable √ Not applicable
45Chongqing Changan Automobile Company Limited 2023 Annual Report
3. Remuneration of directors supervisors and senior management personnel
Decision-making process basis the actual payment of remuneration for directors supervisors and senior management
personnel
Decision-making process: the annual remuneration of the company's directors supervisors and senior executives except for
independent directors is issued in accordance with the relevant remuneration management regulations and standards of the company
and based on the achievement of performance targets submitted to the company's board of directors for approval before distribution.The basis: the senior management evaluation is divided into annual appraisal and term assessment. The salary of employee
supervisors shall be paid by position in accordance with the company's salary system. Payment of company independent directors is
prescribed by the board of directors and submitted to the board of directors of the company and approved by the shareholders'
general meeting.Actual payments: Since June 2022 Mr. Li Keqiang an independent director has voluntarily waived receiving allowances and
other independent directors are paid according to the allowance standards. Vice President Deng Chenghao was appointed as a senior
management personnel of the company in December 2023. The salary of the senior management personnel of the company starts
from the following month so no senior management personnel salary was received during the reporting period. In 2023 directors
supervisors and senior executives who receive remuneration from the company had a total of RMB 34.39 million in remuneration
payable.Remuneration of Directors Supervisors and Senior Management Personnel during the reporting period
Unit: RMB
Total pre-tax Whether
Name Gender Age Position Office status remuneration from remunerated by
the Company related-partiesof the company
Chairman Secretary
Zhu Huarong M 58 of the Party Incumbent 2634743 N
Committee
Deng Wei M 52 Director Incumbent Y
Shi Yaoxiang M 43 Director Incumbent Y
Jia Lishan M 53 Director Incumbent Y
Zhao Fei M 49 Director Incumbent Y
Director
Wang Jun M 51 President and Deputy Incumbent 2634743 N
Party Secretary
Director CFO
Zhang Deyong M 48 Secretary of the Incumbent 2124651 N
Board of Directors
Cao Xingquan M 52 Independent Director Incumbent 153333 N
Yang Xinmin M 63 Independent Director Incumbent 153333 N
Li Keqiang M 60 Independent Director Incumbent N
Ding Wei M 63 Independent Director Incumbent 153333 N
Tang Guliang M 61 Independent Director Incumbent 153333 N
Zhang Ying M 45 Independent Director Incumbent 153333 N
Wen Hong M 57 Chairman of theSupervisory Board Incumbent Y
Sun Dahong M 57 Supervisor Incumbent Y
Employee
Shi Shengwei M 52 Supervisory Board Incumbent 231107 N
Member
Employee
Luo Yan F 49 Supervisory Board Incumbent 362491 N
Member
Tan Benhong M 48 Deputy Secretary ofthe Party Committee Incumbent 1917319 N
Secretary of
Pu Xingchuan M 52 Discipline Inspection Incumbent 1047810 N
Commission
Ye Pei M 48 Executive VicePresident Incumbent 2217536 N
Chen Wei M 51 Executive VicePresident Incumbent 1980569 N
Li Mingcai M 42 Executive Vice Incumbent 2133403 N
46Chongqing Changan Automobile Company Limited 2023 Annual Report
President
Yang Dayong M 49 Executive VicePresident Incumbent 2111019 N
Peng Tao M 45 Executive VicePresident Incumbent 2104157 N
Klaus Zyciora M 62 Vice President Incumbent 938697 N
Zhang Xiaoyu M 44 Executive VicePresident Incumbent 2072453 N
Wang Xiaofei M 41 Vice President Incumbent 2094846 N
Wang Hui M 42 Vice President Incumbent 1679704 N
Zhang Fatao M 41 Vice President Incumbent 1152546 N
Deng M 37 Vice President IncumbentChenghao N
Li Jun F 54 Secretary of theBoard Incumbent 979198 N
Secretary of
Hua Zhanbiao M 56 Discipline Inspection Outgoing 1138676 N
Commission
Zhou Kaiquan M 50 Director Outgoing Y
Lian Jian M 60 Chairman of theSupervisory Board Outgoing Y
Xian Zhigang M 53 Director Outgoing Y
Liu Gang M 57 Director Outgoing Y
Ren Xiaochang M 67 Independent Director Outgoing 70000 N
Wei Xinjiang M 54 Independent Director Outgoing 70000 N
Yuan Mingxue M 55 Deputy Secretary ofthe Party Committee Outgoing 1923382 N
Zhang Bo M 45 Director Outgoing Y
Total -- -- -- -- 34385715 --
Explanation of other situations.□Applicable √ Not applicable
VI. Performance of Directors during the reporting period
1. Board of Directors in the reporting period
Meeting Date ofconvening Disclosure date Meeting resolution
The 51st meeting of the 8th Session January 5th January 6th 2023 Please refer to the Resolution of the 51st meeting of theof Board of Directors 2023 8th Board of Directors (No: Announcement 2023-01)
The 52nd meeting of the 8th Session February 17th February 17th 2023 Please refer to the resolution of the 52nd meeting of theof Board of Directors 2023 8th Board of Directors (Announcement No: 2023-06)
The 53rd meeting of the 8th Session March 3rd 2023 March 4th 2023 Please refer to the Resolution of the 53rd meeting of theof Board of Directors 8th Board of Directors (Announcement No: 2023-10)
The 54th meeting of the 8th Session March 15th March 16th 2023 Please refer to the Resolution of the 54th meeting of theof Board of Directors 2023 8th Board of Directors (Announcement No: 2023-13)
The 55th meeting of the 8th Session March 29th
of Board of Directors 2023 No disclosable matters involved
The 56th meeting of the 8th Session April 16th 2023 April 18th 2023 Please refer to the Resolution of the 56th meeting of theof Board of Directors 8th Board of Directors (Announcement No: 2023-16)
The 57th meeting of the 8th Session
of Board of Directors April 27th 2023 April 28th 2023
Please refer to the Resolution of the 57th Meeting of the
8th Board of Directors (Announcement No: 2023-25)
The 58th meeting of the 8th Session
of Board of Directors May 16th 2023 No disclosable matters involved
The 59th meeting of the 8th Session
of Board of Directors June 8th 2023 June 9th 2023
Please refer to the Resolution of the 59th Meeting of the
8th Board of Directors (Announcement No: 2023-33)
The 60th meeting of the 8th Session June 26th 2023 June 27th 2023 Please refer to the Resolution of the 60th Meeting of theof Board of Directors 8th Board of Directors (Announcement No: 2023-35)
47Chongqing Changan Automobile Company Limited 2023 Annual Report
The 61st Meeting of the 8th Session Please refer to the Resolution of the 61th Meeting of the
of Board of Directors July 11th 2023 July 12th 2023 8th Board of Directors (Announcement No: 2023-39)
The 1st meeting of the 9th Session of
Board of Directors July 27th 2023 July 28th 2023
Please refer to the Resolution of the 1st Meeting of the
9th Board of Directors (Announcement No: 2023-50)
The 2nd meeting of the 9th Session August 3rd August 4th2023 Please refer to the Resolution of the 2nd Meeting of theof Board of Directors 2023 9th Board of Directors (Announcement No: 2023-54)
The 3rd meeting of the 9th Session September September Please refer to the Resolution of the 3rd Meeting of the
of Board of Directors 30th2023 31st2023 9th Board of Directors (Announcement No: 2023-57)
The 4th meeting of the 9th Session September 15th
of Board of Directors 2023 No disclosable matters involved
The 5th meeting of the 9th Session October 7th Please refer to the Resolution of the 5th Meeting of the
of Board of Directors 2023 October 9th 2023 9th Board of Directors (Announcement No: 2023-68)
The 6th meeting of the 9th Session October 19th
of Board of Directors 2023 No disclosable matters involved
The 7th meeting of the 9th Session October 24th
of Board of Directors 2023 October 25th 2023
Please refer to the Resolution of the 7th Meeting of the
9th Board of Directors (Announcement No: 2023-71)
The 8th meeting of the 9th Session October 30th October 31st 2023 Please refer to the Resolution of the 8th Meeting of theof Board of Directors 2023 9th Board of Directors (Announcement No: 2023-74)
The 9th meeting of the 9th Session November 15th November 16th Please refer to the Resolution of the 9th Meeting of the
of Board of Directors 2023 2023 9th Board of Directors (Announcement No: 2023-79)
The 10th meeting of the 9th Session November 24th
of Board of Directors 2023 No disclosable matters involved
The 11st meeting of the 9th Session December 1st December 2nd Please refer to the Resolution of the 11st Meeting of the
of Board of Directors 2023 2023 9th Board of Directors (Announcement No: 2023-82)
The 12nd meeting of the 9th Session December 8th Please refer to the Resolution of the 12nd Meeting of
of Board of Directors 2023 December 9th 2023 the 9th Board of Directors (Announcement No:2023-85)
The 13rd meeting of the 9th Session December 20th December 21st Please refer to the Resolution of the 13rd Meeting of
of Board of Directors 2023 2023 the 9th Board of Directors (Announcement No:2023-89)
The 14th meeting of the 9th Session December 29th
of Board of Directors 2023 No disclosable matters involved
2. Attendance of directors at the board of directors and shareholders’ meeting
Attendance at BOD meetings and shareholders' meeting
Number of BOD Absent from
meetings that Number ofBOD meeting Attendance byName should be means of Attendance
meetings for Attendance at
attended in this attendance at communication by proxy
Absence two shareholders’
spot consecutive meetingsreporting period times
Zhu Huarong 25 3 22 0 NO 3
Deng Wei 10 1 9 0 NO 0
Jia Lishan 14 1 13 0 NO 0
Zhao fei 14 1 13 0 NO 0
Wang Jun 25 3 22 0 NO 3
Zhang Deyong 25 3 22 0 NO 3
Cao Xingquan 25 3 22 0 NO 2
Yang Xinmin 25 3 22 0 NO 2
Li Keqiang 25 0 22 3 NO 1
Ding Wei 25 2 22 1 NO 1
Tang Guliang 25 3 22 0 NO 1
Zhang Ying 25 2 22 1 NO 1
Zhou Kaiquan 8 1 6 1 NO 0
Xian Zhigang 11 1 9 1 NO 0
48Chongqing Changan Automobile Company Limited 2023 Annual Report
Liu Gang 11 1 9 1 NO 0
Ren Xiaochang 11 2 9 0 NO 2
Wei Xinjiang 11 2 9 0 NO 0
Zhang Bo 24 0 21 3 NO 0
Explanation of the members of the Board who failed to attend Board meetings in person for two consecutive times
Not applicable
3. The directors’ objections to the relevant matters of the company
Disagreement of the directors on matters related to the Company
□Yes √ No
During the reporting period the directors did not raise objections to the relevant matters of the company.
4. Other statement of the directors performance of duties
Whether the directors' suggestions on the company are adopted
√Yes □ No
Description of the directors on the adoption or non-adoption of relevant suggestions of the company
During the reporting period the directors of the company strictly followed the relevant provisions of the Company Law and the
Articles of Association of the company diligently performed their duties and obligations actively attended the board of directors and
special committees carefully deliberated on various proposals made independent judgments and professional decisions on major
matters and issued independent and impartial independent opinions on the company's nomination of directors appointment of senior
management annual profit distribution and other matters. In addition the directors put forward valuable professional opinions or
suggestions on the construction of the company's system and daily business decision-making all of which were adopted or responded
to which effectively improved the company's standardized operation and scientific decision-making level and safeguarded the
legitimate rights and interests of the company and all shareholders.VII. Duty Performance of Specialized Committees of the Board of Directors during the
Report Period
Number Important Other
Specific
Committee of Date of comments and performa
Members Meeting content objection
name meetings convening suggestions that nce of
(if any)
held are made duties
Internal audit work plan for 2023.February Unanimously
and audit inspection work report for
17th 2023 passed
the fourth quarter of 2022
March 24th Financial and Accounting Unanimously
2023 Statements for 2022 (Pre-trial) passed
Financial statements for 2022 (after
April audit); 2022 Annual Audit Results Unanimously
11th 2023 and Communication Report on passed
Tang Important Matters
Guliang 2022 Annual Internal Control Audit
Audit Wei
6 Report; Proposal for self-evaluation
Committee Xinjiang report on internal control in 2022;
Zhang Proposal on the appointment of
Deyong April auditors for the 2023 financial report Unanimously
16th 2023 and internal control report; Internal passed
audit report for the first quarter；
Special explanation for the
provision reversal and resale of
asset impairment provisions
Proposal on canceling the
June 5th Unanimously
re-appointment of the 2023 financial
2023 passed
reporting auditor and the internal
49Chongqing Changan Automobile Company Limited 2023 Annual Report
control report auditor
July 11th The employment plan of the Unanimously
2023 accounting firm passed
Proposal on the appointment of
auditors for financial reports and
auditors for internal control reports
August in 2023; Reports on the audit work Unanimously
Tang 18th 2023 for the first half of 2023；Reports on passed
Guliang the rectification of the company's
Zhang Bo， 2 management opinions andCao suggestions in 2022
Xingquan The audit report for the third quarter
of 2023; The rectification report of
November Unanimously
the "Opinions and Suggestions of
16th 2023 passed
the Company's Management" for the
annual review in 2022
Tang
Guliang December Overall audit strategy and key audit Unanimously
Cao 29th 2023 matters passed
Xingquan
Proposal on the rules for
January 5th determining the comprehensive Unanimously
2023 assessment and evaluation results of passed
the company's leadership team
Proposal on the achievement of the
February first release of the restriction period Unanimously
17th 2023 for the first grant of the A-share passed
Zhang restricted stock incentive plan
Ying Wei Proposal on the 2022 tenure system
5
Xinjiang and contractual assessment results of
March 15th Unanimously
Ding Wei the company's management
2023 passed
members and the 2023
implementation plan
July 11th Proposal on adjusting the allowance Unanimously
2023 of independent directors passed
Nomination Proposal on amending the
and July 27th Unanimouslycompany's A-share restricted stock
Remuneration 2023 passedincentive plan
Committee
Proposal on the addition of directors;
(Remuneration
Proposal on adjusting the repurchase
and Appraisal
August price of the A-share restricted stock Unanimously
Committee)
30th 2023 incentive plan and repurchasing and passed
canceling part of the restricted
shares
October Proposal on the appointment of Unanimously
Zhang 7th 2023 senior management passed
Ying Tang October Proposal on the change of senior Unanimously
6
Guliang 24th 2023 management passed
Ding Wei Proposal on the annual
November comprehensive assessment and Unanimously
15th 2023 evaluation rating plan of the passed
company's leadership team members
December Proposal on the appointment of Unanimously
1st 2023 senior management passed
December Proposal on the achievement of the Unanimously
8th 2023 lifting of the restriction on the sale passed
50Chongqing Changan Automobile Company Limited 2023 Annual Report
of A-share restricted stock incentive
plan
Proposal on the 2023 financing plan
February 2023 investment plan and equity Unanimously
17th 2023 participation in the establishment of passed
Zhu a battery joint venture
Huarong Proposal on the development of bill
Zhang Bo， pool business proposal on theWang Jun 3 company and its subsidiaries to carry
March 15th Unanimously
Ren out foreign exchange hedging
2023 passed
Xiaochang business 2023 financial securities
Li Keqiang business plan and opportunistic
The Strategic disposal of trading financial assets
and April 2022 financial statements and 2023 Unanimously
Investment 16th 2023 financial budget explanation passed
Committee
August Proposal on capital increase to joint Unanimously
30th 2023 ventures passed
Proposal on the establishment of Unanimously
Chongqing Changfu Private Equity passed
Wang Jun October
Investment Fund Partnership
Zhang Bo 3 7th 2023
(Limited Partnership) (tentative
Li Keqiang
name).Proposal on the disposal of land and
October Unanimously
housing assets on the north side of
30th 2023 passed
Hebei Chang'an Overhaul Plant
Note: On July 27th 2023 the company's Compensation and Assessment Committee was renamed as the Nomination and
Compensation Assessment Committee.VIII. The work of the board of supervisors
Whether the company was at risk during the report period according to the supervision of the board of supervisors
□Yes √ No
The Board of Supervisors supervised and inspected the legal compliance of the company's financial situation measurement of
managing major affairs of the company operation and management activities and the implementation of major strategies. The Board
of Supervisors has no objection to the supervision matters during the reporting period.IX. The Employees of the Company
1. The number of employees professional field and education level
Number of incumbent employees in the parent company 33275
Number of incumbent employees in major subsidiaries 15842
Total number of incumbent employees 49117
Total number of incumbent salaried employees 49117
Number of retired employees for whom parent company and major
subsidiary bear the costs 2942
Professional composition
Professional fields Number
Production 28321
Sales 2595
Technology 13479
Finance 563
Administration 617
Management 3542
Total 49117
Educational Background
Degree Number
PhD 131
Postgraduate 4243
51Chongqing Changan Automobile Company Limited 2023 Annual Report
Bachelor 16071
Junior college 12860
Technical secondary school and high school 14690
Middle school and below 1122
Total 49117
2. Compensation policy
Changan practices the concept of value creation and value sharing in salary distribution continuously optimizes and improves
the compensation system adheres to the principle of “performance-driven and result-oriented” improves the effectiveness of
distribution strengthens the double benchmarking of performance and salary and guides the business units to continuously improve
their efficiency and effectiveness. We innovate incentive mechanism optimize resource allocation establish and improve medium-
and long-term incentive and constraint mechanism closely bind the interests of the core members with the company’s medium- and
long-term operation support the company’s strategic development and boost the company's operating performance.
3. Training planIn 2024 the key to employee training will be driven by “strategic leadership systematic change extreme efficiency andinnovative breakthroughs” which will comprehensively support Changan’s transformation into an intelligent low-carbon mobility
technology company. In 2024 we will focus on the globalization of the Vast Ocean Plan and promote the training of international
talents in various regions and accelerate the construction of new capabilities for globalization. We will continue to strengthen the
operational capability of management talents and the professional capability of strategy implementation and carry out training
programs such as training of management talents and digital transformation training to promote the development of strategic
transformation. We will comprehensively launch the BlueCore Program for training and certification of district team leaders to
enhance the company's production safety management capability.
4. Outsourcing of services
□Applicable √ Not applicable
X. Distribution of profits and capital reserve
The formulation implementation or adjustment of profit distribution policies especially the formulation implementation or the
adjustment situation of cash dividend policy.√ Applicable □Not applicable
According to the China Securities Regulatory Commission requirements the Notice on Further Implementing Matters
concerning Cash Dividends of Listed Companies as issued by the CSRC the Guideline No. 3 for the Supervision of Listed
Companies—Cash Dividends of Listed Companies in combination with the practical situation of the company the Company has
rectified the “Articles of Association” and clarified the distributable profit caliber dividend distribution means principle form cash
dividend conditions and proportion stock dividend condition plan making and review procedures the implementation the
conditions of distribution policy adjustment and decision-making procedures etc policy adjustment and strengthen the institutional
guarantee of the dividend for investors. For details of the company’s specific distribution policy please refer to the Articles of
Association. Company’s reported profit distribution plan and equity shares in line with the relevant provisions of the Articles of
Association and relevant provisions.Special statement for cash dividend policy
Whether it comply with the Articles of Association or the resolutions of the shareholders'
general meeting: Yes
Are the standard and the proportion of distribution clear: Yes
Are the related decision-making process and mechanism thorough: Yes
Have independent directors fulfilled their duties and performed their due roles: Yes
If the company does not distribute cash dividends specific reasons should be disclosed as well
as the measures to be taken next to enhance investor returns: Not Applicable
Whether medium and minority shareholders have the chance to fully express their views and
demands and whether the legitimate rights and interests are fully protected: Yes
Whether cash dividend policy is adjusted or changed and whether the conditions and
procedures are compliant and transparent: Not Applicable
During the reporting period the company made profits and the parent company could distribute profits to shareholders but did not
put forward the dividend distribution plan
□ Applicable √ Not applicable
52Chongqing Changan Automobile Company Limited 2023 Annual Report
Plans of profit distribution and increase of capital stock by transfer of capital reserve during the reporting period
√ Applicable □Not applicable
Number of bonus shares per ten shares (share) 0
Dividend per ten shares (RMB) (tax included) 3.43
Increased shares through transfer for per 10 shares (shares) 0
Equity base of distribution plan (shares) 9917289033
Cash dividends (RMB) (tax included) 3401630138.32
Cash dividend (RMB) of other means (such as repurchase) 0
Total cash dividend (RMB) (including other means) 3401630138.32
Distributable profits (RMB) 44297589798.86
Proportion (%) of cash dividends (including other means) to
total profit distribution 100%
Cash dividend policy：
others
Detailed description of profit distribution or increase of capital stock by transfer of capital reserves
The 19th meeting of the 9th Session of Board Of Directors of the company deliberated and passed the 2022 Profit Distribution Plan
which still needs to be submitted to the 2022 annual general meeting for deliberation. In accordance with the provisions of the
Articles of Association the relevant decision-making procedures and mechanisms are thorough which fully protect the legitimate
rights and interests of medium and minority investors.XI. Implementation of company equity incentive plans employee stock incentive plans or
other incentive measures
√ Applicable □ Not applicable
1. Equity incentive
On July 13th 2020 the 2nd meeting of the 8th Session of Board of Directors and the 2nd meeting of the 8th Session of Board ofSupervisors reviewed and approved proposals such as “Proposal on
(Draft)> and its Summary” and “Proposal on
on the incentive plan revision.On February 18th 2021 the Company held the first extraordinary general meeting in 2021 and reviewed and approved
proposals such as “Proposal on
expressed their independent agreement.On March 3rd 2021 the Company completed the registration of restricted stocks and disclosed the “Announcement on theCompletion of the Registration of the Initial Granting of the A-Share Restricted Stock Incentive Plan”. 1247 people were actually
granted with 76195400 restricted shares. The listing date of restricted shares was March 5 2021.On August 30th 2021 the Company held the 25th meeting of the 8th Session of Board of Directors and the 12th meeting of the
8th Session of Board of Supervisors which reviewed and approved the “Proposal on Adjusting the Repurchase Price of A-ShareRestricted Stock Incentive Plan” and “Proposal on Repurchase and Cancellation of Certain Restricted Shares Granted to IncentiveObjects but still with Sales Restriction”. The independent directors expressed independent agreement.On September 17th 2021 the Company held the second extraordinary general meeting in 2021 and reviewed and approved the
“Proposal on Repurchase and Cancellation of Certain Restricted Shares Granted to Incentive Objects but still with Sales Restriction”.On November 19th 2021 the Company held the 29th meeting of the 8th Session of Board of Directors and the 15th meeting ofthe 8th Session of Board of Supervisors and reviewed and approved the “Proposal on Adjusting the Amount of Reserved A-ShareRestricted Stock Incentive Plan” and “Proposal on Granting Reserved Restricted Stocks to the Incentive Objects of the A-ShareRestricted Stock Incentive Plan”. The independent expressed independent agreement.On December 21th 2021 the Company completed the repurchase and cancellation of all 1.036 million restricted shares that had
been granted to the original 11 incentive objects but still had sales restrictions.On December 30th 2021 the Company completed the registration of the reserved restricted stock and disclosed the
53Chongqing Changan Automobile Company Limited 2023 Annual Report
“Announcement on the Completion of the Grant of the Reserved A-Share Restricted Stock of the Incentive Plan”; 356 people were
granted with 17761200 reserved restricted stocks. The listing date of reserved restricted stocks was December 31th 2021.On August 2nd 2022 the company held the 43rd meeting of the 8th Board of Directors and the 18th meeting of the 8th Board
of Supervisors and reviewed and approved the Proposal on Adjusting the Repurchase Price of A-share Restricted Stock Incentive
Plan and Repurchasing and Cancelling Some Restricted Stocks. The independent directors of the company have expressed
independent opinions that they agree with.On August 18th 2022 the company held the third extraordinary general meeting of shareholders in 2022 and reviewed and
approved the Proposal on Adjusting the Repurchase Price of the A-share Restricted Stock Incentive Plan and Repurchase and
Cancellation of Some Restricted Stocks.On February 17th 2023 the company held the 52nd meeting of the 8th Board of Directors and the 21st meeting of the 8th
Board of Supervisors and reviewed and approved the Proposal on the Achievements of the First Release of Restriction Conditions
during the First Grant Period of the A-share Restricted Stock Incentive Plan. The independent directors of the company have
expressed independent opinions that they agree with.On March 3rd 2023 the company disclosed the "Indicative Announcement on the Release of Restricted Shares from Listing
and Circulation during the First Release Period of the First Grant Part of the A-share Restricted Stock Incentive Plan" and the date of
release of restricted shares from listing and circulation was March 6th 2023.Equity incentives for directors and senior management
√ Applicable □ Not applicable
Unit: share
Shares Price of Market Number of
Number of
Exercisable Number of newly Number of
shares exercised
shares price at the restricted
exercised end of the shares held shares granted Grant price of restricted
Name Position during the during during the reporting at the unlocked restricted restricted shares held
reporting the reporting period beginning in the shares shares at the end
period reporting period (RMB/share of the current during the (RMB/share) of theperiod (RMB/share) ) period period reporting periodperiod
Zhu Chairman Secretary
Huarong of the Party 16.83 455000 150150 3.07 304850Committee
Zhao Fei Director 16.83 353080 116516 3.07 236564
Director President
Wang Jun Deputy Secretary of 16.83 364000 120120 3.07 243880
the Party Committee
Zhang Director The Chief
Deyong Accountant Board 16.83 353080 116516 3.07 236564of Directors Sectary
Tan Deputy Secretary of
Benhong the Party Committee 16.83 353080 116516 3.07 236564
Ye Pei Executive VicePresident 16.83 353080 116516 3.07 236564
Chen Wei Executive VicePresident 16.83 353080 116516 3.07 236564
Li Executive Vice
Mingcai President 16.83 353080 116516 3.07 236564
Yang Executive Vice
Dayong President 16.83 252200 83226 7.22 168974
Peng Tao Executive VicePresiden 16.83 248612 82042 3.07 166570
Zhang
Xiaoyu Vice President 16.83 248612 82042 3.07 166570
Wang
Xiaofei Vice President 16.83 171990 56757 3.07 115233
Wang
Hui Vice President 16.83 171990 56757 3.07 115233
Zhang
Fatao Vice President 16.83 248612 82042 3.07 166570
Li Jun Board of DirectorsSectary 16.83 248612 82042 3.07 166570
Yuan Deputy Secretary of
Mingxue the Party Committee 16.83 364000 120120 3.07 243880(outgoing)
Secretary of
Hua Discipline &
Zhanbiao Inspection 16.83 353080 116516 3.07 236564Commission
(outgoing)
Total -- -- -- 5245188 1730910 -- 3514278
Notes (if any) 1. The above-mentioned personnel and positions are as of the disclosure date of this report;
54Chongqing Changan Automobile Company Limited 2023 Annual Report
2. The original initial grant price of the Company's A-share restricted shares was 6.66 yuan per share and the reserved
grant price was 9.93 yuan per share. The number of shares and the grant price have been adjusted accordingly based on
the implementation of the Company's equity distribution plans for 2020 2021 and 2022.Evaluation mechanism and incentives for senior managers
For details please refer to “V. 3. Remuneration of Directors Supervisors and Senior Management” in Chapter 4.
2. Implementation of employee stock ownership plans
□Applicable √ Not applicable
3. Other employee incentives
□Applicable √ Not applicable
XII. Internal control system building and implementation during reporting period
1. Internal control building and implementation
Optimize the internal control team and improve control effectiveness. We established a matrix team of company level
internal control specialists opened up internal control communication channels at all levels of the company formed a working
mechanism with clear responsibilities and clear communication from top to bottom and improved the communication efficiency of
cross department internal control work. We implemented concomitant internal control supervision and management of key business
processes which was carried out in the same place at the same time and in the same direction as the business so as to help the
business review the compliance of decision-making procedures and assess the risk of decision-making content further strengthening
the effectiveness of internal control.Improve the management system and strengthen the binding force of the internal control system. We improved top-level
design promoted inventory management revised and issued the Internal Control Evaluation Manual clarified the division of work
and responsibilities of internal control standardized the scope standards steps and other requirements of internal control evaluation
improved the internal control system and achieved closed-loop management of control evaluation and rectification. We
continuously integrated and optimized business systems embedded internal control system control requirements into specific
business systems clarified business link control requirements and risk response measures and built a standardized comprehensive
and effective management system.Strengthen authorization management and improve internal control and supervision mechanism. We reviewed the
authorization management system refined the power and responsibility boundaries of each level based on the authorization list of the
board of directors and revised and issued the management authorization form and centralized and decentralized authority list for
institutions at all levels. We prepared a list of incompatible positions comprehensively cleaned up incompatible positions at all levels
of the company’s institutions sorted out the responsibilities of important positions and key personnel adjusted unreasonable
positions and personnel settings and achieved the separation of incompatible position responsibilities and personnel.Promote the construction of offshore internal control system and prevent and control offshore business risks. Through
group-level control and based on the existing internal control system of the company we exported internal control system to overseas
organizations at all levels. At the same time we set up localized organizations established business authorization systems and
designed overseas business system documents in accordance with the actual operation as well as the laws and regulations of the
countries (regions) where the overseas units were located. We continuously improved the offshore internal control system and further
enhanced the rigid constraints of the offshore internal control system.Carry out comprehensive internal control evaluation to promote the continuous optimization of the internal control
system. Organizations at all levels of the company used the Internal Control Evaluation Manual as a standardized process to actively
evaluate the effectiveness of the implementation of the internal control system identified problems developed measures improved
implementation and ensured the effective operation and rigid constraints of the company’s internal control system.
2. Details of significant defects in internal control during the reporting period
□ Yes √ No
XIII. Management and control of subsidiaries of the company during the reporting period
Problems
Integration encounter Follow-upName Integration plan progress ed in the
Solutions Progress solution
integratio taken plan
n
55Chongqing Changan Automobile Company Limited 2023 Annual Report
During the reporting period the company has acquired Completed Not Not Not Not
the equity of Deepal Automotive Technology Co. Ltd. applicable applicable applicable applicable
Deepal from Chongqing Changxin Equity Investment Fund
Automotive Partnership Enterprise (Limited Partnership) and
Technology Chongqing Liangjiang New Area Equity Investment
Co. Ltd. Fund Partnership Enterprise (Limited Partnership) witha shareholding ratio of 51.00%. It will be transferred
from a joint venture to a subsidiary for accounting
purposes and included in the scope of consolidation.XIV. Internal control self-evaluation report or internal control audit report
1. Self-evaluation report of internal control
Date of Full-text disclosure of internal
control evaluation report April 18th 2024
Inquiry index of internal control evaluation
report full text disclosure www.cninfo.com.cn
The proportion of the total assets of units
included in the evaluation scope to the total
assets in the company's consolidated 100%
financial statements
The proportion of the operating income of
the unit in the evaluation scope to the total
operating income of the company's 100%
consolidated financial statements
Defect identification standard
Type Financial reports Non-financial report
1. Fraud of the directors supervisors and 1. Lack of or violation of democratic
senior managers of the Company. decision-making procedures;
2. The Company shall correct the published 2. Violation against state laws and
financial report to correct major regulations with serious punishment;
misstatements caused by fraud or errors or 3. Large loss of medium and senior
major misstatements in the current financial management personnel and senior
Qualitative standards report found by certified public accountants technical personnel;
but not identified by the company's internal 4. Frequent and serious negative media
control of the Company. coverage that spread far;
3. The Audit Committee has ineffective 5. Lack of institutional control or
supervision over the company’s external institutional system failure of important
financial reports and financial report internal business;
control. 6. Major defects in internal control notrectified.The misstatement amount in the financial Identification according to the internal
Quantitative standards statements in the following range: control defect quantitative standard in
Misstated 1% of the total assets financial report.Number of material defects in financial
reports 0
Number of material defects in
non-financial reports 0
Number of important defects in financial
reports 0
Number of important defects in
non-financial reports 0
2. Internal control audit report
√ Applicable □ Not applicable
Review opinions of the internal control audit report
The audit opinion in the internal control audit report issued by Lixin Certified Public Accountants (Special General Partnership) is
as follows: Chongqing Changan Automobile Co. Ltd. maintained effective internal control over financial reporting in all material
aspects as of December 31 2023 in accordance with the Basic Standards for Enterprise Internal Control and relevant regulations.Disclosure of the internal control
audit report Disclosed
56Chongqing Changan Automobile Company Limited 2023 Annual Report
Date of full text disclosure of the
internal control audit report April 18th 2024
Inquiry index of Internal Control
Audit Report www.cninfo.com.cn
Opinion type of internal control
audit report Standard without reservations
Material defects in non-financial
reports None
Whether the accounting firm issues a non-standard opinion internal control audit report
□Yes √ No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report of the board of
directors
√Yes □No
XV. Rectification of self-inspection problems in the Special Action of Listed Companies
According to the company’s self-inspection the company’s overall compliance operation shows that there are no issues
requiring rectification.
57Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 5 Environmental and Social Responsibility
Ⅰ. Major Environment Concerns
Whether the listed company and its subsidiaries are reckoned as major pollutant discharging units by environment protection
department or not
√Yes □No
Environmental protection-related policies and industry standards
The company strictly implements the laws regulations standards and requirements for environmental protection in its
production and operation. The regulatory standards include Environmental Protection Law of the People’s Republic of China Law
on Air Pollution Prevention and Control Law of the People’s Republic of China on Prevention and Control of Water Pollution Law
of the People’s Republic of China on Prevention and Control of Environmental Pollution by Solid Waste Law of People’s Republic
of China on Environmental Impact Assessment etc.Administrative regulations or rules include Measures for the Administration of Environmental Monitoring Measures for the
Administration of the List of Key Units of Environmental Supervision Measures for Enterprise Environmental Credit Evaluation
Administrative Measures for the Legal Disclosure of Enterprise Environmental Information Contingency Plan for Environmental
Emergencies etc.National standards include Integrated Wastewater Discharge Standard Integrated Emission Standard of Air Pollutants Standard
for Fugitive Emission of Volatile Organic Compounds Technical Requirement for Low-Volatile-Organic-Compound-Content
Coatings Product Technical specification for operation of wastewater online monitoring system (CODCr NH3-N et al.) Technical
Specification for Continuous Monitoring of Non-Methane Total Hydrocarbons in Waste Gas from Stationary Pollution Sources
Technical guide for leak detection and repair of volatile organic compounds in industriesetc Technical Specifications for the Setting
of Hazardous Waste Identification Signs etc. Industry standards include Technical Specification for Application and Issuance of
Pollutant Permit Automotive Industry Foundry Industry Air Pollutant Emission Standards Technical Guidelines for Self-monitoring
of Pollutant Discharging Units etc.Local standards include Emission standard of Air Pollutants for Surface Coating of Automobile Manufacturing Industry
Emission Standard of Air Pollutants for Catering Industry Emission Standard of Air Pollutants for Boilers etc. The company collects
and interprets the newly released and implemented regulations and standards quarterly and conducts compliance evaluations to
ensure that the company’s production and operation are always legally compliant.Environmental Protection Administrative License
——Administrative License Information for Construction Projects
In 2023 there will be a total of 7 EIA approval documents for construction projects as follows:
Name and document number of
Name of construction project environmental impact assessment approval Approval Authority Approval
document acquisition time
Renovation project of office R&D Chongqing Construction Project Chongqing Ecology
base in Sino-German Industrial Environmental Impact Assessment and Environment
Park Document Approval Letter Bureau (Liangjiang
March 3rd 2023
(YLJHZ [2023] No. 21) NewArea Branch)
Opinions on the approval of the
Hebei Changan Automobile Co. environmental impact report of the vehicle
Ltd. vehicle production capacity production capacity optimization and
Dingzhou Ecology
optimization and upgrading project upgrading project of Hebei Changan
and Environment March 7th 2023
Automobile Co. Ltd Bureau
(DHS [2023] No. 3)
Opinions on the examination and approval
Hefei Changan Automobile Co. of the environmental impact report of the
Ltd. A158 series pure electric "Hefei Changan Automobile Co. Ltd. A158 Hefei Ecology and
passenger car production line series pure electric passenger car production Environment March 27th 2023
technical transformation project line technical transformation project". Bureau
(HJS [2023] No. 10020)
Yubei factory replacement and Chongqing Construction Project Chongqing Ecology
green upgrade construction project Environmental Impact Assessment and Environment May 6th 2023
58Chongqing Changan Automobile Company Limited 2023 Annual Report
Document Approval Letter Bureau
(YSHZ [2023] No. 25)
Technical transformation project of Chongqing Construction Project Chongqing Ecology
C318 series new energy passenger Environmental Impact Assessment and Environment
car production line of Liangjiang Document Approval Letter Bureau (Liangjiang June 26th 2023
No. 3 Factory (YLJHZ [2023] No. 65) NewArea Branch)
Chongqing Changan Automobile
Co. Ltd. Changan Automobile HE Chongqing Construction Project Chongqing Ecology
series engine production line Environmental Impact Assessment and Environment
technical transformation project Document Approval Letter Bureau (Liangjiang
July 4th 2023
(phase I) (YLJHZ [2023] No. 68) NewArea Branch)
Opinions on the approval of the
Baoding Chang'an Bus environmental impact report on the technical
Manufacturing Co. Ltd. G393 transformation of the G393 production line Dingzhou Ecology December 20th
production line technical of Baoding Changan Bus Manufacturing and Environment 2023
transformation project Co. Ltd Bureau
(DHS [2023] No. 14)
——Information on administrative permission for pollutant discharge
In 2023 each base involved a total of 13 pollution discharge license documents including 4 re applications 7 changes 2 others
and no extension. For details see the "National Pollution Discharge License Management Information Platform" at
http://permit.mee.gov.cn.——Other administrative licensing information
None.Industry emission standards and specific conditions of pollutant emissions involved in production and
business activities
Name of the Total
company or Main pollutants and specific Discharge
Number of Distribution Discharge Total
pollutants means discharge of discharge concentration Pollutant discharge standards discharge
approved Excessive
subsidiary outlets outlets (mg/L) (Tons/year) discharge emissions(Tons/year)
COD Two outlets 39.95 21.84 46.67 —
Ammonia for workshop Integrated Wastewater Discharge
nitrogen 1.23 0.67 4.21 —
Wastewater Intermittent facilities andStandard（GB8978-1996); TheTotal nickel emissions 3 one main 0.01 Influent Water Quality Requirements 0.01 0.04 —set by the Yubei District Sewage
Total zinc outlet for the 0.03 Treatment Plant in Chongqing 0.02 — —
Phosphate Plant 0.36 0.20 0.28 —
Sulfur Emission Standard of Air Pollutants
dioxide 4.56 for Surface Coating of 2.96 4.08 —Chongqing Nitrogen 52.49 Automobile Manufacturing IndustryChangan oxides （DB 50/577-2015); 19.67 67.39 —Automobile Particulate Outlets 0.50 Emission Standards of Air PollutantsCo. Ltd. Exhaust gas matter Organized for Industrial Kiln and Furnace DB
0.3124.20—34 around the （Yubei Plant Volatile emissions Plant 50/659-2016);
organic 1.04 Integrated Emission Standards of Air 2.44 158.21 —compounds Pollutants（DB 50/418-2016);Toluene + 0.10 Emission Standards of Air PollutantsXylene for Boiler（DB 50/658-2016) 0.54 — —During the reporting period the Yubei Plant of Chongqing Changan Automobile Co. Ltd. was included in the List of Key Pollutant Discharge
Soil Units of Chongqing in 2023 with a total of 2260.22 tons of hazardous waste generated in this period. The 2265.84 tons have been legally utilizedand disposed of by manufacturers with hazardous waste operation permits produced 24589.07 tons of general industrial solid waste and 24589.07 —
tons of utilization and disposal.COD An outlet for 107 9.23 14.02 —
Ammonia workshop
Integrated Wastewater DischargeIntermittent facilities and 4.35 Standard（GB8978-1996); TheWastewater nitrogen
0.921.4—
Total nickel emissions one main
Influent Water Quality Requirements
0.08 set by Guoyuangang Sewage 0.01 0.04 —outlet for the
Total zinc Plant 0.118 Treatment Plant in Chongqing 0.04 0.28 —
Sulfur 1.33 Emission standard of Air PollutantsChongqing dioxide for Surface Coating of 0.05 1.23 —
Changan Nitrogen Automobile Manufacturing IndustryAutomobile oxides 46.95 DB 50/577-2015); 9.46 18.23 —（Co. Ltd. Particulate Outlets 5.62 Emission Standards of Air Pollutants(Liangjiang
Plant Exhaust gas
matter Organizedemissions 30 around the for Industrial Kiln and Furnace（DB
4.3736.14—
Campus No. Volatile Plant 50/659-2016);1) organic 5.87 Integrated Emission Standards of Air 12.35 63.06 —compounds Pollutants（DB 50/418-2016);Toluene + 0.423 Emission Standards of Air Pollutantsxylene for Boiler DB 50/658-2016) 0.27 2.68 —（During the reporting period Liangjiang Plant Campus No. 1 of Changan Automobile was included in the List of Key Pollutant Discharge Units of
Soil Chongqing in 2023 with a total of 1804.59 tons of hazardous waste in this period. A total of 1798.43 tons were legally utilized and disposed of bymanufacturers with hazardous waste operation permits produced 18254.69 tons of general industrial solid waste and 18254.69 tons of utilization —
and disposal.Chongqing COD Intermittent An outlet for 58 Integrated Wastewater Discharge 38.13 46.00 —Changan Wastewater Ammonia emissions 2 workshop Standard（GB8978-1996); TheAutomobile nitrogen facilities and 3.035 Influent Water Quality Requirements 2.01 4.60 —
59Chongqing Changan Automobile Company Limited 2023 Annual Report
Co. Ltd. Total nickel one main 0.05 set by the Guoyuangang Sewage 0.004 0.14 —
(Liangjiang outlet for the Treatment Plant in Chongqing
Plant Total zinc Plant 0.0393 0.03 1.38 —
Campus No. Sulfur 0.905 Emission standard of Air Pollutants2) dioxide for Surface Coating of 0.11 4.12 —
Nitrogen Automobile Manufacturing Industryoxides 60.158 （DB 50/577-2015); 29.57 34.72 —Particulate
Organized Outletsmatter 6.7522
Emission Standards of Air Pollutants 12.26 50.61 —Exhaust gas 47 around the for Industrial Kiln and Furnace（DBVolatile emissions Plant 50/659-2016);
organic 3.315 Integrated Emission Standards of Air 7.84 543.23 —compounds Pollutants（DB 50/418-2016);Toluene + 0.3593 Emission Standards of Air Pollutantsxylene 0.36 5.49for Boiler（DB 50/658-2016) —During the reporting period Liangjiang Plant Campus NO. 2 was included in the List of Key Pollutant Discharge Units of Chongqing in 2023
Soil with a total of 3789.29 tons of hazardous waste. The 3821.38 tons were legally utilized and disposed of by manufacturers with hazardous waste —
operation permits produced 33554.15 tons of general industrial solid waste and 33554.15 tons of utilization and disposal.COD An outlet for 64.15
workshop Integrated Wastewater Discharge
13.7145—Total nickel 0.33 Standard（GB8978-1996); The 0.005 0.09 —Wastewater Ammonia Intermittent facilities andemissions 2 one main 2.65 Influent Water Quality Requirementsnitrogen 0.55 4.5 —
outlet for the set by the Guoyuangang Sewage
Total zinc Plant 0.08 Treatment Plant in Chongqing 0.01 0.81 —
Chongqing Particulate 10.005 Emission standard of Air Pollutants 5.58 64.24 —
Changan matter for Surface Coating of
Automobile VOCs 8.04 Automobile Manufacturing Industry 7.49 244.36 —Co. Ltd. SO2 0 （DB 50/577-2015); 0.02 5.34 —(Liangjiang Toluene + Outlets Emission Standards of Air Pollutants
Plant Exhaust gas Organizedxylene emissions 38 around the1.88 for Industrial Kiln and Furnace（DB 0.53 0.95 —Campus No. Plant 50/659-2016);
3) Integrated Emission Standards of AirNOx 51.52 Pollutants（DB 50/418-2016); 6.11 24.78 —Emission Standards of Air Pollutantsfor Boiler（DB 50/658-2016)During the reporting period Liangjiang Plant Campus NO. 3 was included in the List of Key Pollutant Discharge Units in Chongqing in 2023
Soil with a total of 1721.97 tons of hazardous waste generated in this period. 1724.55 tons were legally utilized and disposed of by manufacturers with —
hazardous waste operation permits produced 16705.82 tons of general industrial solid waste and 16705.82 tons of utilization and disposal.COD 89.22 Integrated Wastewater Discharge 14.45 22.50 —
Wastewater Ammonia Intermittent Main outletStandard（GB8978-1996); The
2
nitrogen emissions for the Plant 2.7 Influent Water Quality Requirementsset by the Guoyuangang Sewage 1.45 2.25 —
Chongqing （NH3-N） Treatment Plant in Chongqing
Changan Particulate
Automobile 4.179 Emission Standards of Air Pollutantsmatter 14.66 — —Co. Ltd. Organized Outlets for Industrial Kiln and Furnace（DBSO2(Jiangbei Exhaust gas emissions 93 around the
350/659-2016);4.91——
Engine Plant VOCs Plant 1.7 Integrated Emission Standards of Air 1.55 — —Plant No.1） NOx 7.23 Pollutants（DB 50/418-2016) 8.19 — —During the reporting period Jiangbei Engine Plant Plant NO. 1 was included in the List of Key Pollutant Discharge Units in Chongqing in 2023
Soil and a total of 4345.15 tons of hazardous waste was generated in this period. 4347.97 tons were legally utilized and disposed of by manufacturerswith hazardous waste operation permits or exemption certificates produced 1703.78 tons of general industrial solid waste and 1703.78 tons of —
utilization and disposal.COD 89.3 Integrated Wastewater Discharge 9.98 11.08 —
Wastewater Ammonia Intermittent 1 Main outletStandard（GB8978-1996); Thenitrogen emissions for the Plant 1.31 Influent Water Quality Requirementsset by Guoyuangang Sewage 1.00 1.11 —（NH3-N） Treatment Plant in Chongqing
Chongqing Non-
Changan methane total 2.8 3.24 — —
Automobile hydrocarbons Emission Standards of Air Pollutants
Co. Ltd. Nitrogen
Exhaust gas oxides OrganizedOutlets 17.96 for Industrial Kiln and Furnace（DB 3.03 — —(Jiangbei emissions 37 around the 50/659-2016);
Engine Plant Particulate factory 7.93 Integrated Emission Standards of Air 16.71 — —Plant No. 2） matter Pollutants（DB 50/418-2016)Sulfur
dioxide 3 1.94 — —
During the reporting period Jiangbei Engine Plant Plant NO. 2 was included in the List of Key Pollutant Discharge units in Chongqing in 2023
Soil and a total of 8000.86 tons of hazardous waste was generated in this period. 7995.46 tons were legally utilized and disposed of by manufacturerswith hazardous waste operation permits or exemption certificates produced 555.86 tons of general industrial solid waste and 555.86 tons of —
utilization and disposal.COD An outlet for 29.75 6.28 25.76 —
Ammonia workshop Integrated Wastewater Dischargenitrogen 3.34Intermittent facilities and Standard（GB8978-1996); The Inlet
0.523.48—
Wastewater Total nickel emissions 3 two main 0.14 Water Quality Requirements set by 0 0.029 —
outlets for Guoyuangang Sewage TreatmentTotal zinc 0.092
the Plant Plant in Chongqing
0.009——
Phosphate 0.09 0.02 0.13 —
Particulate
matter 3.98 8.92 38.03 —Chongqing
Volatile Emission standard of Air PollutantsLingyao
organic 3.54 for Surface Coating ofAutomobile
compounds Automobile Manufacturing Industry
7.43111.4—Co. Ltd. Outlets （DB 50/577-2015);Exhaust gas Toluene + Organizedemissions 40 around thexylene 0.91Plant Integrated Emission Standards of Air
0.766.46—Sulfur 3L Not Pollutants（DB 50/418-2016);（dioxide Emission Standards of Air Pollutants 0 7.12detected —） for Boiler（DB 50/658-2016)Nitrogen
oxides 11.92 0.56 16.26 —
Soil During the reporting period Chongqing Lingyao Automobile Co. Ltd. (Changan Suzuki) was included in the List of Key Pollutant DischargeUnits in Chongqing in 2023 and a total of 2113.83 tons of hazardous waste was generated in this period 2113.83 tons were legally utilized and —
60Chongqing Changan Automobile Company Limited 2023 Annual Report
disposed of by manufacturers with hazardous waste operation permits or exemption certificates produced 15992.23 tons of general industrial solid
waste and 15992.23 tons of utilization and disposal.COD An outlet for 48.1 15.55 63.68 —
Ammonia workshop
Wastewater nitrogen Intermittent
3.7 Integrated Discharge Standard of 1.19 3.81 —
emissions 2 facilities andTotal nickel a main outlet 0.06 Water Pollutants (DB11/307-2013) 0.001 0.01 —
Phosphate for the Plant 1.92 0.53 — —
Chongqing Nitrogen
Changan oxides 10.88 0.41 3.18 —
Automobile Volatile Emission standard of Air Pollutants
Co. Ltd. organic Outlets 2.79 for Surface Coating of 6.15 458.76 —
Beijing compounds Automobile Manufacturing IndustryExhaust gas Organized 52 around the
Changan Sulfur emissions Plant
(DB11/1227-2015);
Automobile 2.93 Integrated Emission Standards of Airdioxide 4.09 — —
Company Pollutants（DB11/501-2017）Particulate
matter 1.87 4.12 — —
During the reporting period Chongqing Changan Automobile Co. Ltd. Beijing Changan Automobile Company was included in the List of Key
Soil Pollutant Discharge units in Beijing in 2023 and a total of 618.18 tons of hazardous waste was generated in this period 618.18 tons were legallyutilized and disposed of by manufacturers with hazardous waste operation permits or exemption certificates produced 8730.23 tons of general —
industrial solid waste and 8730.23 tons of utilization and disposal.COD 38.18 27.10 169.55 —
Total
nitrogen Two outlets 12.70for workshop Integrated Wastewater Discharge
9.5743.98—Wastewater Total nickel Intermittent 3 facilities and 0.008 Standard（GB8978-1996); 0.01 0.09 —Total emissions a main outlet The Pipe Standards set by Hefei
phosphorus 0.25 West Group Sewage Treatment Plant 0.12 — —for the Plant
Hefei Ammonia
Changan nitrogen 1.92 0.42 16.96 —
Automobile Emission Control Standard for
Co. Ltd Organized Outlets Industrial Enterprises Volatile
Exhaust gas VOCs emissions 74 around the 5.21 19.03 65.03 —Plant Organic Compounds of Tianjin
（DB12/524-2020）
During the reporting period Hefei Changan Automobile Co. Ltd. was included in the List of Key Pollutant Discharge Units in Hefei in 2023 and
Soil a total of 2278.01 tons of hazardous waste was generated in this period 2275.06 tons were legally utilized and disposed of by manufacturers withhazardous waste operation permits or exemption certificates produced 32460.93 tons of general industrial solid waste and 32460.93 tons of —
utilization and disposal.COD 34.04 1.71 13.336 —
Total
nitrogen An outlet for 3.64 Integrated Wastewater Discharge 0.12 14.24 —Total nickel workshop 0.085 Standard（GB8978-1996); 0.001 0.06Nanjing Wastewater IntermittentTotal
Changan emissions
2 facilities and 0.38 The Pipe Standards set by Nanjingphosphorus a main outlet Lishui Qinyuan Sewage Treatment 0.01 0.08 —
Automobile Ammonia for the Plant Co. Ltd.Co. Ltd. nitrogen 1.32 0.04 0.26 —
(The old （NH3-N）
factory has NOx 33 Emission standard of Air Pollutants 0.66 — —
been Particulate for Surface Coating ofdiscontinued matter 0.99 Automobile Manufacturing Industry 0.94 — —on June 10th
2023) VOCs
Organized 6 Outlets 3.179 (DB32/2862 – 2016); 3.95 38.48 —Exhaust gas emissions around the Integrated Emission Standards of Air
Plant Pollutants (GB 16297 - 1996);
SO2 3 Emission Standards of Air Pollutants 0.08 — —
for Boiler (GB13271-2014)
Soil — —
COD 34.25 3.74 43.08 —
Total
nitrogen 4.69 Integrated Wastewater Discharge 0.54 1.20 —Total Intermittent An outlet for Standard（GB8978-1996);Wastewater phosphorus emissions 1 workshop 1.1 The Pipe Standards set by Nanjing 0.14 0.39 —facilitiesAmmonia Lishui Qinyuan Sewage Treatment
nitrogen Co. Ltd.0.81 0.10 0.86 —
Nanjing （NH3-N）
Changan NOx 16 Emission standard of Air Pollutants 0.27 — —
Automobile Particulate for Surface Coating of
Co. Ltd. matter 15 Automobile Manufacturing Industry 2.30 — —
(The new VOCs Organized 6 Outlets 9.67 (DB32/2862 – 2016);factory) 14.05 31.57 —Exhaust gas emissions around the Integrated Emission Standards of Air
Plant Pollutants (GB 16297 - 1996);
SO2 0 Emission Standards of Air Pollutants 0.00 — —
for Boiler (GB13271-2014)
During the reporting period Nanjing Changan Automobile Co. Ltd.(The new factory) was included in the List of Key Pollutant Discharge Units in
Soil Nanjing in 2023 and a total of 1277.49 tons of hazardous waste was generated in this period 1264.58 tons were legally utilized and disposed ofby manufacturers with hazardous waste operation permits or exemption certificates produced 728.52 tons of general industrial solid waste and —
728.52 tons of utilization and disposal.(Including the old factory of Nanjing Changan Automobile Co. Ltd)
Ammonia
nitrogen 2.5612 0.12 4.8 —
COD An outlet for 79.018 Integrated wastewater discharge 7.53 63.71 —Total Intermittent workshop standard（GB8978-1996);Wastewater nitrogen emissions 2 facilities and 9.88 The Influent Water Quality 0.92 7.32 —a main outletTotal Requirements Set by GezhoubaHebei for the Plant
Changan phosphorus
1.858 Water Dingzhou Branch 0.14 0.92
Automobile Total nickel 0.059 0.002 0.03 —
Co. Ltd Sulfur 3 Integrated Emission Standards of Airdioxide Pollutants GB16297-1996; 0.19 30.01 —
Non-methane Organized Outlets Emission Standards of Air Pollutants
Exhaust gas totalhydrocarbons emissions
51 around the 11.61 for Industrial Kiln and Furnace 18.23 570.34 —
plant DB1640-2012;
Particulate 3.53 Emission Control Standards formatter Volatile Organic Compounds by 4.70 53.4 —
61Chongqing Changan Automobile Company Limited 2023 Annual Report
Industrial Enterprises
Nitrogen 14 DB13/2322-2016;oxides Emission Standards of Air Pollutants 3.78 31.47 —for Boiler（DB13/5161-2020)During the reporting periodHebei Changan Automobile Co. Ltd was included in the List of Key Pollutant Discharge Units in Dingzhou In 2023
Soil with a total of 738.30 tons of hazardous waste generated in this period of which 695.81 tons have been legally utilized and disposed of bysuppliers with hazardous waste operation permits produced 8067.69 tons of general industrial solid waste and 8067.69 tons of utilization and —
disposal.COD A workshop 133.95 11.44 72.71 —
Ammonia facility
nitrogen discharge 6.7575 Integrated Wastewater Discharge 0.54 4.14 —Hebei Standard（GB8978-1996);Changan Wastewater
Total Intermittent outlet and
nitrogen emissions 2 one factory 14.74 The Influent Water Quality 1.33 5.51 —
Automobile Total total Requirements Set by GezhoubaCo. Ltd. No. phosphorus discharge 1.853 Water Dingzhou Branch 0.003 12 Plant (The outlet
pollutant Nickel 0.16 0.005 0.06 —
discharge Sulfur 3 Integrated Emission Standards of Airdioxide Pollutants GB16297-1996; 3.95 88.23 —permit will
be merged Nitrogen 3 Emission Standards of Air Pollutantsoxides for Industrial Kiln and Furnace 6.82 33.75 —with the
same plant in Particulate Outlets DB1640-2012;
December Exhaust gas matter
Organized 5
emissions 94 around the Emission Control Standards for
12.52850.8—
2023 and the plant Volatile Organic Compounds by
original Volatile Industrial Enterprises
license will organic 6.7 DB13/2322-2016; 42.29 880.62 —
be cancelled compounds Emission Standards of Air Pollutantsat the same for Boiler（DB13/5161-2020)time) During the reporting period Campus NO.2 of Chongqing Changan Kaicheng Automobile Technology Co. Ltd. (formerly known as Changan Bus)
Soil was included in the List of Key Pollutant Discharge Units in Dingzhou in 2023. A total of 890.16 tons of hazardous waste were generated in thisperiod and 896.32 tons were legally utilized and disposed of by suppliers with hazardous waste operation permits produced 12062.49 tons of —
general industrial solid waste and 12062.49 tons of utilization and disposal.All pollutants are discharged to the standard and there is no discharge exceeding the standard and the total amount. For details
of the name distribution and pollutant discharge of each discharge outlet please refer to the "Environmental Information Disclosure
Information System in accordance with the Law" of the province or city where it is located and the public website is detailed in the
following table.Enterprise environmental information
The name of the organization disclosure system in accordance with Public website
the law
Yubei Plant Liangjiang Plant Enterprise environmental information
Jiangbei Engine Plant disclosure system in accordance with http://183.66.66.47:10001/eps/index/enterprise-search
Chongqing Lingyao the law（Chongqing）
Beijing Changan Automobile Enterprise environmental information
Company disclosure system in accordance with https://hjxxpl.bevoice.com.cn:8002/homethe law（Beijing）
Hefei Changan Automobile Enterprise environmental information
Co. Ltd disclosure system in accordance with http://112.27.211.30:18900/st_yfpl_html/dist/#/homethe law（Anhui）
Enterprise environmental informationhttp://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-webapp/wNanjing Changan Automobile disclosure system in accordance with eb/viewRunner.htmlviewId=http://ywxt.sthjt.jiangsu.gov.cCo. Ltd the law Jiangsu n:18181/spsarchive-webapp/web/sps/views/yfpl/views/yfpl（ ） HomeNew/index.js
Hebei Changan Automobile Enterprise environmental information
Co. Ltd disclosure system in accordance with http://121.29.48.71:8080/#/guidethe law（Hebei）
Treatment of pollutants
Pollutant type Main processing technology Processing method
Spraying VOCs exhaust Venturi wet paint mist treatment+zeolite rotary adsorption
gas concentration+TNV incineration; Activated carbon adsorption;
Deal with by oneself or
Low temperature plasma themselves
Drying VOCs exhaust gas TNV or RTO incineration Deal with by oneself orthemselves
Other VOCs exhaust gas Activated carbon adsorption Deal with by oneself or
Exhaust gas themselvesTest exhaust gas (nitrogen
oxide) Automotive three-way catalytic converter
Deal with by oneself or
themselves
Foundry dust Bag type dust removal Deal with by oneself orthemselves
Foundry stench Alkali adsorption or biosorption Deal with by oneself orthemselves
Refueling mist Mechanical filtration Deal with by oneself or
62Chongqing Changan Automobile Company Limited 2023 Annual Report
themselves
Phosphating waste gas Coagulation sedimentation Self processing oroutsourcing operations
Wastewater Oily wastewater Oil separation+air flotation Self processing oroutsourcing operations
Comprehensive
wastewater Coagulation sedimentation+aerobic biochemistry
Self processing or
outsourcing operations
Waste solvent Utilization or incineration Outsourcing utilizationand disposal
Wet metal chips Utilize Outsourcing utilizationand disposal
Aluminum ash packaging Utilize Outsourcing utilization
Solid waste drum and disposalWastewater treatment Landfill Outsourcing utilizationsludge and disposal
Recyclable general
industrial solid waste Utilize
Outsourcing utilization
and disposal
Others Incineration or landfill Outsourcing utilizationand disposal
Noise Mechanical noise Damping and sound insulation Deal with by oneself orthemselves
In 2023 a set of activated carbon adsorption facilities will be added to the exhaust gas of Nanjing Chang'an Hazardous Waste
Room Hefei Chang'an Point Replenishment Wax Wastewater Treatment Station Liangjiang Factory's laundry room tooling
cleaning room and Yubei Plant's No. 1 and No. 2 wastewater treatment stations while welding and grinding wet dust removal
facilities will be added to the first plant of Liangjiang Plant four lithium bromide refrigeration units in Plant No. 3 will be renovated
for low-nitrogen combustion and four lithium bromide refrigeration units will be converted to electric refrigeration. Pollution control
facilities are included in the preventive maintenance management of equipment like production equipment and there are ledgers
operating procedures or work instructions preventive maintenance procedures preventive maintenance plans and implementation
records equipment spot checks dosing slag removal consumables replacement and other operation records and the facilities are
operating normally. The key pollutant discharging units are equipped with automatic monitoring facilities for wastewater and waste
gas in accordance with the requirements of the local ecological and environmental authorities and entrust the operation and
maintenance of the third-party professional companies and the facilities are operating normally. In 2023 there will be no non-normal
operation of pollution control facilities..Contingency Plan for environmental emergencies
The manufacturing sites as required carries out risk assessment of environmental emergencies emergency resource surveys
formulated or revised contingency plans for environmental emergencies prepared on-site response plans for units with environmental
risk and continuously carried out hidden danger investigation and treatment. In 2023 3 manufacturing sites completed the revision
and filing of contingency plan for environmental emergencies as shown in the following table:
Unit Contingency Plan File Code Filing Authority
Jiangbei Engine Plant Chongqing Changan Automobile Co. Ltd. Jiangbei
Chongqing Municipal
Engine Plant No. 2 Plant Emergency Plan for 500128-2023-030-L Bureau of Ecology andNo. 2 Plant Environmental Emergencies Environment LiangjiangNew District Bureau
Nanjing Changan Automobile Co. Ltd. Nanjing Lishui District
Nanjing Changan (Development Zone Factory) Emergency Plan for 3201242023062L Ecological Environment
Environmental Emergencies Bureau
Hefei Changan Hefei Changan Automobile Co. Ltd. emergency plan
Hefei High-tech Zone
for environmental emergencies 340171-2023-043M Ecological EnvironmentBranch
All bases formulate emergency drill plans in accordance with the requirements of laws and regulations and carry out emergency
drills as planned so as to continuously improve the practicality of emergency plans and the emergency handling ability of employees.No environmental emergencies occurred in 2023.Environmental self-monitoring plan
In 2023 key units responsible for pollution discharge of the company prepared self-monitoring plans and carried out
self-monitoring in accordance with the requirements of laws and regulations and disclosed monitoring information on
self-monitoring data release platforms of various provinces as required by local ecological environment authorities. See the following
table for the public websites.Units Environmental Self-Monitoring PlanDisclosure Platform Website
63Chongqing Changan Automobile Company Limited 2023 Annual Report
Yubei Plant Liangjiang Plant Jiangbei Key Pollution Source Monitoring Data http://119.84.149.34:20003/publish2/d
Engine Plant Chongqing Lingyao Release Platform ataSearchPub/entList.aspx
Beijing Changan Automobile Company National Pollutant Discharge Permit http://xxgk.bevoice.com.cn/monitor-puManagement Information Platform b/index.do
Anhui Province Discharge Units
Hefei Changan Automobile Co. Ltd Self-Monitoring Information Disclosure https://wryjc.cnemc.cn/gkpt/mainZxjc/
Platform 340000
http://ywxt.sthjt.jiangsu.gov.cn:18181/
Jiangsu Province Enterprise "Environmental spsarchive-webapp/web/viewRunner.ht
Nanjing Changan Automobile Co. Ltd. Protection Facebook" information disclosure mlviewId=http://218.94.78.91:18181/
platform spsarchive-webapp/web/sps/views/yfpl
/views/home/index.js
Hebei Provincial Pollutant Discharge Unit
Hebei Changan Automobile Co. Ltd Self-monitoring Information Disclosure https://wryjc.cnemc.cn/gkpt/mainZxjc/
Platform 130000
Investment in environmental treatment and protection and payment of environmental protection tax
The company’s environmental protection investment mainly includes: the construction of environmental protection facilities
operation and maintenance of environmental protection facilities solid waste transportation and disposal (hazardous waste included)
sewage treatment monitoring revision of contingency plans purchase of emergency materials environmental protection tax etc.The company paid environmental protection tax of RMB 1467600 in 2023.Measures taken to reduce carbon emissions during the reporting period and effects
√ Applicable □Not applicable
In 2023 Changan continued to promote the goal of “reaching carbon peak by 2027 and carbon neutrality by 2045”.Changan has taken solid efforts in energy-saving and carbon-reducing measures in manufacturing achieving a 2.36%
year-on-year reduction in carbon emission per vehicle and a 6.25% year-on-year reduction in carbon emissions per engine. We took
in-depth measures to reduce carbon emission in the manufacturing process and tap potential. We have launched a total of 79 carbon
reduction initiatives from various dimensions including energy efficiency optimization process improvement lean start-stop
scheduling optimization achieving carbon reduction of 15000 tons. We vigorously promoted energy structure reform. Bases in Yuzui
of Chongqing Hefei province and Hebei province have built photovoltaic power stations totaling about 79MW generated and
consumed green and clean energy by ourselves with a total consumption of 57.6 million kWh of green power throughout the year
realizing carbon reduction of 50000 tons. Changan actively participated in market-based green power trading responding to the call
of local policies to purchase green power of 3 million kWh realizing carbon reduction of 0.2 million tons.Changan carried out low-carbon technology research and application development in various technical fields of products
breaking through and mastering more than 100 core technologies reducing its average carbon emission intensity per vehicle by 6.5%
year-on-year. Among them: (A) In the field of new energy the independent CTP battery has realized mass production. CTV battery
has completed the industrialization sample test. The integration rate of the whole package is more than 76% and the self-developed
an electrodeless power battery control technology has improved the instantaneous power of charging and discharging by up to 20%.
(B) In the field of new power breakthroughs were made in more than 20 core technologies such as hydrogen fuel engine ultra-high
thermal efficiency engine power domain controller hybrid motor controller etc. The independent hybrid electric drive realized mass
production adopting the 10-layer Hairpin flat-wire oil-cooled motor with a power density of 7kW/kg and the highest assembly
efficiency of 95% which was awarded “Heart of China” 2023 Top 10 Engines and Hybrid Systems. We developed HE series hybrid
exclusive engines with the highest thermal efficiency exceeding 44%; We developed Changan Automobile’s second-generationhydrogen fuel engine realizing zero-carbon and near-zero emissions and won the “Top 10 Achievement Transformation Award ofthe Engineer Excellence Competition”. (C) In the field of new materials Changan has established the ability to independently
account for the carbon emissions of its products and has completed 15 research studies on the application of low-carbon material
technologies which have been carried and applied in a number of vehicle models realizing a carbon reduction of about 2% for a
single vehicle model. Changan is committed to creating low-carbon products. DEEPAL SL03 is equipped with an ultra-integrated
electric drive integrating a number of low-carbon technologies such as low wind resistance light weight and low voltage power
consumption. The carbon emission value of the whole vehicle is lower than that of the industry by more than 10% and it has been.Administrative penalties imposed for environmental reasons during the reporting period are shown below
None.
64Chongqing Changan Automobile Company Limited 2023 Annual Report
Other environmental protection-related information
1. Environmental credit evaluation
In 2023 Yubei Factory 3 bases of Liangjiang Factory 2 bases of Jiangbei Engine Chongqing Lingyao rated as Chongqing 2022
Environmental Integrity Enterprise Mold Division rated as Yubei District Environmental Integrity Enterprise Hefei Chang'an rated
as Anhui Province Environmental Integrity Enterprise and Nanjing Changan rated as Jiangsu Province General Trustworthy
Enterprise.
2. Green supply management information
Changan has actively leveraged its industry influence to form a partnership of mutual trust shared responsibility and shared
benefits and build a new supply chain system of open cooperation win-win benefits and sustainable development. Chongqing
Changan has been shortlisted as a “National Green Supply Chain Management Enterprise” and “National Green DesignDemonstration Enterprise”. Currently it has 18 green design products and 2 green factories (Yubei Factory and Liangjiang Factory)
and has been shortlisted as a “Pilot Enterprise of Extended Producer Responsibility for Automobiles”.We promoted green design and production eliminated high energy-consuming equipment and established green supply chain
management and green corporate dynamic management. We piloted the collection of supplier product carbon emission data and
collaborative carbon reduction. Through the access certification - Changan Business Partner Code of Conduct Changan clarified the
obligations and responsibilities in terms of human rights and working conditions business ethics conflict of interest environmental
protection and conflict minerals etc. Through the management of VOC control prohibited substances special supply requirements
and green procurement evaluation we worked with suppliers to improve our environmental performance and encourage them to save
energy and reduce emissions and develop in a green and low-carbon way; We have implemented the management of IATF16949
quality management system certificate and ISO14001 environmental certification management of which 98.4% of the suppliers have
passed the IATF16949 95.1% have passed the ISO14001 and 20% of the suppliers have been qualified as Green Factories and
Green Supply Chain Management Enterprises.For the management of hazardous substances the collection and control of automotive material data energy consumption and
other information is realized by completing systematic data declaration through CAMDS and realizing comprehensive analysis and
data accounting through the ELV compliance system.Check China Automotive Green Dismantling System (http://www.cagds.org.cn) for Changan outlets for recycling scrapped
vehicles. Companies to recycle or use dismantled vehicles can also log in on the CAGDS website or CAGDS system to see the
manual of M1 passenger car dismantling. Users can check relevant information on the M1 vehicle disassembly manual through the
WeChat mini program “Vehicle Disassembly Manual Identity Analysis Tool”.Power battery recycling service outlets can be checked on Changan Automobile Official Website (https://www.changan.com.cn).II. Social Responsibility
The full text of the company's 2023 environmental social and governance (ESG) report has been published on the same day as
the company's annual report on http://www.cninfo.com.cn.III. The Company Consolidated and Expanded the Achievements of Poverty Alleviation and
Rural Revitalization
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics in the New Era Changan comprehensively
implemented the spirit of the 20th CPC National Congress as well as that of the opinions of the CPC Central Committee and the
State Council on comprehensively advancing the revitalization of the countryside conscientiously implemented the government'swork arrangements adhered to the general tone of seeking progress while maintaining a steady growth and focused on “guarding thebottom line focusing on development and promoting revitalization”. Highlighting annual tasks targeted initiatives and practical
orientation Changan did a good job of targeted assistance in a solid and orderly manner continuously improved the quality and
effectiveness of assistance and effectively carried out its political and social responsibilities contributing Changan's strengths to the
comprehensive promotion of rural revitalization.
1. Strengthen organizational leadership
We held 6 meetings among senior company leaders to study and arrange key work. We held 12 thematic working sessions on
rural revitalization and targeted support to decide on key programs study the plans line out measures and speed up the work.Changan's leadership visited Youyang County of Chongqing for research and guidance promoting targeted assistance projects in an
orderly manner.
2. Guarantee funds for assistance
Changan had pooled 10.6 million yuan for assistance including 4.6 million yuan for Luxi County in Yunnan and 6 million yuan
for Yanshan County in Yunnan to support the comprehensive revitalization of rural industries talents culture ecology and
organization in these two counties. Our purpose is to drive the development of rural industries improve the local ecosystem make
local culture more civilized and improve people’s well-being with more effective governance.
65Chongqing Changan Automobile Company Limited 2023 Annual Report
3. Promote industrial assistance
Carrying out the government’s overall plan on the implementation of rural revitalization Changan continued to do a good job in
helping the Youyang Tea Oil Project and helped build a long-term mechanism of scientific management system with the core of
improving the operation and management ability. First we boosted marketing and channels and through the company’s sales
network we helped Chongqing Youzhou Tea Oil Technology Co. Ltd. to realize sales of 32.12 million yuan. Second we enhancedthe brand and corporate image carried out the Changan Automobile cross-border new public welfare activity themed “bring newbenefit with love and share a better life” and held a signing ceremony for sustainable development cooperation activities which
Xinhua News Agency Xinhua Net Global Times Guangming Daily and other media attended and reported. Changan helped
Youyang Tea Oil make its debut with a high-end national oil brand image in the independent zone of Shanghai Chongqing Chengdu
Guangzhou international auto shows engaging in cross-border new public welfare to expand its influence and setting an example for
enterprises to assume their social responsibility. Third we improved the business management system adding 91 new business
management system documents upgrading and refining a more scientific and applicable management system of Youyang Tea Oil
helping Youzhou Oil Tea Technology Company to build a long-term mechanism of scientific management system. Fourth we carried
out carbon sink methodology research established the oil tea tree carbon sink measurement model parameter system and
measurement standards and built the oil tea tree carbon sink assessment methodology system.
4. Implement consumer support
Focusing on promoting the stable sales of supported products Changan encouraged all business units and employees to buyagricultural products from the targeted supported areas and actively participated in “ Spring Action for Consumption Supportthrough SOEs under Central Government” and “Week of Consumption for Rural Area Products through SOEs under CentralGovernment” with a total consumption support of 2.095 million yuan. Among them1.478 million yuan was consumed in two
counties in Yunnan and 617000 yuan in other regions. Changan has taken practical actions to promote the development of industries
in poverty-stricken areas and stabilize the income of poverty-stricken people.
5. Promote employment assistanceLeveraging its advantages as an automobile manufacturer Changan has made skill training the focus and set up 2 “ChanganAutomobile Classes”in Luxi County and Yanshan County in Yunnan Province and Youyang County in Chongqing. We carried out 2
expert lectures on campus and 2 rounds of recruitment at targeted areas. A total of 406 students were recruited turning employment
assistance into concrete actions and helping increase the income of people from rural areas.
6. Summarize and disseminateUnder the title of “From Giving Fish to Teaching ‘Fishing’- Changan Automobile Promoted the Implementation of RuralRevitalization and Achieved Results” Changan submitted the case to the Association of Listed Companies in China to publicize andpromote its effective and distinctive practice activities in rural revitalization and was awarded the “Outstanding Practice Case ofListed Companies in Rural Revitalization”.
66Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 6 Important Matters
I. Undertaking performance
1. Undertakings completed during the reporting period and yet to be performed as of the end of the
reporting period of the company’s actual controllers shareholders related-parties acquirers and the
company’s related parties of the undertakings.√ Applicable □Not applicable
Undertakings Undertaking party Type ofundertaking Description Date Duration Performance
The shares of Changan Automobile
China South Industries Group subscribed through this offering
Undertakings Co. Ltd.; China Changan Sales shall not be transferred in any way
made at the IPO Automobile Group Co. Ltd.; restrictions within 36 months after the offering October 36 Fulfillment
or refinancing Southern Industry Asset for shares including but not limited to public 2020 Months completed
Management Co. Ltd. transfer through the securities
market or by agreement.China South Industries Group From November 7th 2023 within 6
Other Co. Ltd.; China Changan Sales months the company will not
commitments Automobile Group Co. Ltd.; restrictions reduce its holdings through
Novemb 6 Months In normal
Southern Industry Asset for shares centralized bidding or bulk trading er 2023 progress
Management Co. Ltd. in the secondary market.Whether the
promise is
fulfilled as Yes
scheduled
2. Explanation on whether assets or projects reach the earnings forecast and reasons when there is earning
forecast for asset or projects and the reporting period is within the forecast period.□Applicable √ Not applicable
II. Non-operating funds the listed company occupied by controlling shareholders and their
related parties
□Applicable √ Not applicable
During the reporting period there was no non-operating funds of the listed company occupied by the controlling shareholder
and related parties.III. Irregular external guarantee
□Applicable √ Not applicable
The Company has no irregular external guarantee during the reporting period.IV. Explanation of the Board of Directors on the latest “Non-standard Audit Report”
□Applicable √ Not applicable
67Chongqing Changan Automobile Company Limited 2023 Annual Report
V. Explanation of the “Non-Standard Audit Report” issued by the accounting firm during the
reporting period by the BOD BOS and independent directors (if any)
□Applicable √ Not applicable
VI. Explanation of changes in accounting policies accounting estimates and remedies for
significant accounting errors
√ Applicable □ Not applicable
Please refer to "(31) Changes in Significant Accounting Policies and Accounting Estimates" in Note 3 to the financial
statements for details.VII. Explanation of changes in the consolidated statement scope compared to the last annual
report
√ Applicable □ Not applicable
During the reporting period the company has acquired the equity of Deepal Automotive Technology Co. Ltd. from Chongqing
Changxin Equity Investment Fund Partnership Enterprise (Limited Partnership) and Chongqing Liangjiang New Area Equity
Investment Fund Partnership Enterprise (Limited Partnership) with a shareholding ratio of 51.00%. It will be transferred from a joint
venture to a subsidiary for accounting purposes and included in the scope of consolidation.VIII. Appointment and dismissal of the accounting firm
The appointed accounting firm
The name of the domestic accounting firm Lixin Certified Public Accountants (Special General Partnership)
Payment (RMB: 10000) 324.90(Excluding tax)
Years of audit services 1
Names of Certified Public Accountants Zhu Yuqin Wang Kai
Years of services provided by Certified Public Accountants 1
Whether to re-appoint the accounting firms
√Yes □ No
Whether to hire a new accounting firm during the audit period
□Yes √ No
Does the replacement of accounting firm follow the approval process
√Yes □ No
Detailed explanation of the situation regarding the change of appointment or change of accounting firm
Considering that Ernst & Young Huaming LLP (Special General Partnership) has served the company continuously for more
than 10 years which does not comply with the provisions of Article 12 of the Management Measures for the Selection and
Appointment of Accounting Firms by State owned Enterprises and Listed Companies which stipulates that the continuous
appointment period shall not exceed 10 years the proposal to appoint Lixin Certified Public Accountants (Special General
Partnership) as the company's audit institution for the year 2023 has been reviewed and approved by the third meeting of the ninth
board of directors and the second extraordinary general meeting of shareholders in 2023 providing financial audit and internal
control audit services.Description of the internal control accounting firms financial adviser or sponsor
√Applicable □ Not applicable
After the third meeting of the ninth board of directors and the second extraordinary general meeting of shareholders in 2023 the
company has successively reviewed and approved the proposal on the appointment of auditors for the 2023 financial report and
internal control report. The company has hired Lixin Certified Public Accountants (Special General Partnership) as the auditor for the
2023 internal control report. The company paid an internal control audit fee of RMB 949800 (excluding tax) for the internal control
audit services provided by Lixin Certified Public Accountants (Special General Partnership) in 2023.IX. Delisting after the disclosure of the annual report
□Applicable √ Not applicable
68Chongqing Changan Automobile Company Limited 2023 Annual Report
X. Bankruptcy and restructuring
□Applicable √ Not applicable
During the report period there is no bankruptcy or restructuring.XI. Crucial litigation and arbitration
□Applicable √ Not applicable
During the reporting period the company has no crucial litigation and arbitration.XII. Punishment and rectification
□Applicable √ Not applicable
During the reporting period there’s no punishment and rectification..XIII. The integrity of company its controlling shareholder and actual controller
□Applicable √ Not applicable
XIV. Significant related-party transactions
1. Related-party transactions related to daily operation
For details please refer to Note 12 “Related Party Relationships and Transactions” under the Chapter 10.
2. Related-party transactions of acquisition or sales of assets or equity
□Applicable √ Not applicable
3. Related-party transactions of common foreign investment
□Applicable √ Not applicable
4. Related rights and debt relations
√Applicable □Not applicable
For details please refer to Note 12 "Related Party Relationships and Transactions" under the Chapter 10.Whether there is any non-business related credits and debts
□Yes √ No
There is no non-operating associated credits and debts during the reporting period.
5. Transactions with associated financial companies
√ Applicable □Not applicable
Deposit
Amount incurred in the current
Maximum period
Related party Relationship daily deposit
Beginning
limit (RMB: Interest rate balance (RMB: Total deposit
Total Ending balance
withdrawal (RMB: 10000)
10000) 10000) amount (RMB:10000) amount (RMB:10000)
China South A company
Industries controlled by
Group Finance the actual 2000000 0.35%-2.1% 1986295 23579401 23573094 1992602
Co. Ltd. controller of
69Chongqing Changan Automobile Company Limited 2023 Annual Report
Changan
Automobile
A company
Changan controlled by
Automobile the actual
Financing Co. controller of 1500000 1.85%-2.25% 1495000 1499000 1495000 1499000
Ltd. Changan
Automobile
Loan
Amount incurred in the current
Beginning period
Related party Relationship Loan amount(RMB: 10000) Interest rate balance (RMB: Total amount
Total Ending balance
10000) of loan (RMB: repayment (RMB: 10000)
10000) amount (RMB:10000)
A company
China South controlled by
Industries the actual
Group Finance controller of 50000 1%-4.75% 6900 6000 5300 7600
Co. Ltd. Changan
Automobile
Credit granting or other financial business
Related party Relationship Business Total amount (RMB: Actual amount incurred10000) (RMB: 10000)
China South Industries A company controlled by
Group Finance Co. Ltd. the actual controller of Credit granting 1150000 379908Changan Automobile
6. Transactions between the financial company controlled by the company and related parties
□Applicable √ Not applicable
7. Other significant related-party transactions
√ Applicable □Not applicable
Interim announcement of major related-party transactions on the website
Interim announcement Interimannouncement date Wsebsite
Announcement of Expected Related-party Transactions in the Ordinary Course of
2023 April 18th 2023 http://www.cninfo.com.cn
XV. Major contracts and their performance
1. Custody contracting and leasing
（1）Custody
□Applicable √ Not applicable
Custody information
There is no custody during the reporting period.
（2）Contracting
□Applicable √ Not applicable
Contracting information
There is no contracting during the reporting period.
70Chongqing Changan Automobile Company Limited 2023 Annual Report
（3）Leasing
√ Applicable □Not applicable
Leasing informationLeasing of related parties can be found in Item 5 (2) of Note 12 of Financial Statements “Related Party and RelatedTransactions”.Projects whose profit and loss to the company account for more than 10% of total profits during the reporting period.□ Applicable √ Not applicable
There was no project whose profit and loss to the company accounted for more than 10% of total profits during the reporting
period.
2. Guarantee
□Applicable √ Not applicable
There’s no guarantee during the report period.
3. Entrustment of cash asset management
(1) Entrust wealth management
□Applicable √ Not applicable
There’s no entrusting wealth management during the reporting period.
(2) Entrusted loans
□Applicable √ Not applicable
There is no entrusted loan during the reporting period.
4. Other major contracts
□Applicable √ Not applicable
There are no other major contracts of the Company during the reporting period.XVI. Other important events
√ Applicable □ Not applicable
During the reporting period the company has completed the acquisition of a portion of equity in Deepal Automobile. The
company's shareholding in Deepal Automobile has increased from 40.66% to 51.00% and will be included in the company's
consolidated financial statements starting from February 2023. For specific details please refer to the "Progress Announcement on
Acquiring Partial Equity of Changan New Energy" (Announcement No. 2023-05) disclosed by the company on February 18 2023 on
the Juchao Information Network (www.cninfo. com. cn).XVII. Important matters of the Company’s subsidiary
□Applicable √ Not applicable
71Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 7 Share Changes and Shareholder Information
Ⅰ. Change in shareholdings
1. Change in shareholdings
Unit: One share
Before change Changes（+，-） After changeQuantity Ratio Additional Stock Provident fundissued dividend transfer Other Subtotal Quantity Ratio
Shares with sales restrictions 675775474 6.81% -570969575 -570969575 104805899 1.06%
1. State-owned legal person
shares 515311738 5.19% -515311738 -515311738 0 0.00%
2. Other domestic shares 159248366 1.61% -55055477 -55055477 104192889 1.05%
Including: domestic legal
person shares
domestic natural person
shares 159248366 1.61% -55055477 -55055477 104192889 1.05%
3. Foreign shares 1215370 0.01% -602360 -602360 613010 0.01%
Including: foreign legal
persons shares
foreign natural person
shares 1215370 0.01% -602360 -602360 613010 0.01%
Shares without sales
restrictions 9246023948 93.19% 566459186 566459186 9812483134 98.94%
1.Ordinary shares
denominated in RMB 7604409171 76.64% 566459186 566459186 8170868357 82.39%
2. Domestic listed foreign
shares 1641614777 16.55% 1641614777 16.55%
Total shares 9921799422 100.00% -4510389 -4510389 9917289033 100.00%
Reasons for share change
√ Applicable □ Not applicable
(1) A-share restricted stock incentive plan lifting restricted shares for listing and circulation
On March 6th 2023 the company lifted its restricted shares and listed them for circulation with a total of 44275061 shares.For specific details please refer to the "Notice on the First Release of Restricted Shares from the Restricted Stock Incentive Plan for
A-shares". On January 2nd 2024 the company lifted the restrictions on the sale of 7366678 shares which were listed for
circulation. The registration of the lifting of restrictions and changes was completed after the market closed on December 29th 2023.For specific details please refer to the "Notice on the lifting of restrictions on the sale of A-share restricted stock incentive plans".The above-mentioned incentive targets for lifting restrictions include some directors and senior management personnel of the
company and the stocks obtained will be locked in accordance with relevant laws and regulations.
(2) Partial cancellation of restricted stock repurchases in A-shares
On June 20th and December 5th 2023 the company completed the repurchase and cancellation of 2476422 shares and
2033967 shares of restricted stocks that had been granted to some of the original incentive objects but had not yet been released
from restrictions. For specific details please refer to the Announcement on the Completion of Repurchase and Cancellation of Some
Restricted Stocks. The total share capital of the company was reduced from 9921799422 shares to 9917289033 shares.
(3) Non public offering of restricted shares for listing and circulation
On November 7th 2023 the company's non-public offering of restricted shares was listed and circulated with a total of
515311738 shares. For specific details please refer to the "Notice on the Listing and Circulation of Restricted Shares by Non Public
Development Banks".
(4) Other reasons for changes
Other changes in the company's limited sale shares are due to changes in lock up shares of directors supervisors and senior
executives as well as changes in lock up shares of departing executives.Approval of share change
√ Applicable □ Not applicable
(1) A-share restricted stock incentive plan lifting restricted shares for listing and circulation
Approved by the 52nd meeting of the 8th Board of Directors the 21st meeting of the 8th Board of Supervisors the 12th meeting
of the 9th Board of Directors and the 4th meeting of the 9th Board of Supervisors on February 17 and December 8 2023
respectively.
72Chongqing Changan Automobile Company Limited 2023 Annual Report
(2) Partial cancellation of restricted stock repurchases in A-shares
The first repurchase cancellation issue was reviewed and approved by the 43rd meeting of the 8th Board of Directors and the
18th meeting of the 8th Board of Supervisors of the company on August 2nd 2022 and by the 3rd extraordinary general meeting of
shareholders of the company on August 18th 2022. The second repurchase cancellation matter was reviewed and approved by the
third meeting of the ninth board of directors and the second meeting of the ninth supervisory board on August 30th 2023 and by the
second extraordinary general meeting of shareholders of the company on September 15th 2023.
(3) Non public offering of restricted shares for listing and circulation
After verification and confirmation by the Shenzhen Stock Exchange and China Securities Depository and Clearing Corporation
Shenzhen Branch the non-public offering of restricted shares was listed and circulated on November 7th 2023.Transfer of shares
√ Applicable □ Not applicable
See Chapter 7 I 1 "Reasons for share change" for details.Impact of share changes on financial indicators such as basic earnings per share and diluted earnings per
share in the latest year and the latest period and net assets per share attributable to ordinary shareholders
of the company
√ Applicable □ Not applicable
The basic earnings per share at the beginning of the reporting period was RMB 0.80 yuan and at the end RMB 1.15 yuan; the
diluted earnings per share at the beginning of the reporting period was RMB 0.78 yuan and at the end was RMB 1.13 yuan; the net
assets per share attributable to ordinary shareholders at the beginning were RMB 6.34 yuan and at the end RMB 7.25 yuan.Other information deemed necessary by the company or required by securities regulators to disclose
□Applicable √ Not applicable
2. Changes in restricted shares
√ Applicable □ Not applicable
Unit: share(s)
Number of Number ofIncrease shares with Number ofrestricted
Name of shareholders shares at the during the sales restriction
restricted Reasons for Date of removal of sales
beginning of reporting removed during
shares at the
period the reporting end of the
restrictions restriction
the period period period
Southern Industry Asset Non-public issuance
Management Co. Ltd. 340186916 340186916 0 of A shares in 2020 November 7th 2023
China Changan
Automobile Group Co. 170093458 170093458 0 Non-public issuanceof A shares in 2020 November 7th 2023Ltd.China South Industries 5031364 5031364 0 Non-public issuanceGroup Co. Ltd. of A shares in 2020 November 7th 2023
On March 6th 2023 44275061
shares were listed and circulated.On January 2 2024 7366678
shares were listed and outstanding.The restricted shares granted for
the first time and reserved to the
incentive recipients will also be
released in two batches with each
A-share restricted stock 160418388 -4510389 51641739 104266260 Equity incentive batch of restricted shares being
restricted for a period of 36
months and 48 months
respectively from the date of
completion of the corresponding
grant registration and the
proportion of the restricted shares
granted to the incentive recipients
will be 33% and 34% respectively.Lock-in shares of
directors supervisors
Other shareholders 45348 505241 10950 539639 senior executives and Lift the sale restriction accordingoutgoing executives in to the relevant rules
addition to restricted
stocks
Total 675775474 -4005148 566964427 104805899 -- --
Note: Among the A-share restricted shares the "increase in the number of restricted shares in the current period" refers to the
repurchase and cancellation of a total of 4510389 shares.
73Chongqing Changan Automobile Company Limited 2023 Annual Report
II. Issuing and listing of securities
1. Securities issuance (excluding preference shares) during the reporting period
□Applicable √ Not applicable
2. Changes in the company’s total shares and shareholding structure and changes in the company's asset
and liability structure
√ Applicable □ Not applicable
Please see Chapter 7 I 1 “Reasons for share change” for the changes in the total number of ordinary shares and shareholder
structure of the Company during the reporting period.At the beginning of the reporting period the total assets were RMB 146049068075.25; the total liabilities were RMB
83099751390.43 and the asset-liability ratio was 56.90%. At the end of the period the total assets were RMB 190171127138.27
the total liabilities were RMB 115487870299.24 and the asset-liability ratio was 60.73%.
3. Existing employee shares
□Applicable √ Not applicable
III. Shareholders and actual controllers
1. Number of shareholders and shareholding
Unit: share(s)
Number of Number of
ordinary shareholders Number of shareholdersholding preference holding preference shares
At the end of the report period the shareholders at
total number of shareholders 451892 the month-end 453758
shares with 0 with restored voting
prior to the restored voting rights at the month-end
0
disclosure date rights at the end of prior to the disclosure
of this Report the reporting date of this Reportperiod
Shareholders holding more than 5% of the shares or top 10 shareholders (Excludes shares lent through refinancing)
Number of Increase/ Number of Number of Condition of
Name Nature Percentag shares held as of
decrease shares held shares held shares (pledged
e the end of the during theReporting with sales without sales
labeled or frozen)
reporting period restrictions restrictions Status AmounPeriod t
China Changan Automobile Group State-owned legal
Co. Ltd. person 17.98% 1783090143 0 1783090143
China South Industries Group Co. State-owned legal
Ltd. person 14.23% 1410747155 0 1410747155
Southern Industry Asset Management State-owned legal
Co. Ltd. person 4.60% 456253257 -49990000 456253257
China Securities Finance Co. Ltd. Domestic generallegal person 4.30% 426362905 0 426362905
United Prosperity Investment Co. Ltd. Foreign legal person 2.83% 280498832 0 280498832
Hong Kong Securities Clearing Co. Not
Ltd. Foreign legal person 2.37% 235386954 92260045 235386954 pledged
China Merchants Securities (HK) Co. labeled or
Ltd. Foreign legal person 0.54% 53627322 13721703 53627322 frozen
GUOTAI JUNAN SECURITIES
HONG KONG LIMITED Foreign legal person 0.46% 46075641 3393226 46075641（ ）
Shen Yanjun Domestic natural
persons 0.35% 35003248 35003248 35003248
Industrial and Commercial Bank of
China Co. Ltd. - Huatai Pinebridge Funds wealth
CSI 300 ETF Securities Investment management 0.35% 34286544 17407430 34286544
Fund products etc
Among the top 10 shareholders the actual controller China South Industries Group Co. Ltd. and its
Description of the related party relationship or acting in wholly-owned subsidiary Southern Industry Asset Management Co. Ltd. the controlling shareholder
concert among the above shareholders China Changan Automobile Group Co. Ltd. and its wholly-owned subsidiary United ProsperityInvestment Co. Ltd. are parties acting in concert by “Measures for the Administration of Takeover of
74Chongqing Changan Automobile Company Limited 2023 Annual ReportListed Companies”.Description of the above-mentioned shareholders
entrusting/being entrusted with voting rights and waiver of None
voting rights
Shareholdings of the top 10 ordinary shareholders of unrestricted shares
Number of shares without sales Shares type
Shareholders restrictions at the end of the
reporting period Type Number
China Changan Automobile Group Co. Ltd. 1783090143 RMB ordinary shares 1783090143
China South Industries Group Co. Ltd. 1410747155 RMB ordinary shares 1410747155
Southern Industry Asset Management Co. Ltd. 456253257 RMB ordinary shares 456253257
China Securities Finance Co. Ltd. 426362905 RMB ordinary shares 426362905
United Prosperity Investment Co. Ltd. 280498832 Domestic listed foreign shares 280498832
Hong Kong Securities Clearing Co. Ltd. 235386954 RMB ordinary shares 235386954
China Merchants Securities (HK) Co. Ltd. 53627322 Domestic listed foreign shares 53627322
GUOTAI JUNAN SECURITIES（HONG KONG）
LIMITED 46075641 Domestic listed foreign shares 46075641
Shen Yanjun 35003248 RMB ordinary shares 35003248
Industrial and Commercial Bank of China Co. Ltd. - Huatai
Pinebridge CSI 300 ETF Securities Investment Fund 34286544 RMB ordinary shares 34286544
Description of the related relationship or acting in concert Among the top 10 shareholders the actual controller China South Industries Group Co. Ltd. and its
among the top 10 shareholders of unrestricted circulating wholly-owned subsidiary Southern Industry Asset Management Co. Ltd. the controlling shareholder
shares and between the top 10 shareholders of unrestricted China Changan Automobile Group Co. Ltd. and its wholly-owned subsidiary United Prosperity
tradable shares and the top 10 shareholders Investment Co. Ltd. are parties acting in concert as stipulated in the “Measures for the Administrationof Takeover of Listed Companies”.Description of the participation of the top 10 ordinary Shareholder Shen Yanjun holds 35003248 shares of the Company through the customer credit
shareholders in margin trading business transaction guarantee securities account of GF Securities Co. Ltd.The top 10 shareholders participated in the refinancing business and lent shares
√ Applicable □ Not applicable
Unit: share(s)
The top 10 shareholders participated in the refinancing of loaned shares
The shares lent at the At the end of the period
Initial ordinary account Ordinary account and
beginning of the period the shares were loaned
and credit account credit account holdings at
were refinanced and have and have not been
holdings the end of the period
not been returned returned
Shareholder Name
Proportion Proportion Proportion Proportion
Total of total Total of total Total of total Total of total
quantity share quantity share quantity share quantity share
capital capital capital capital
Industrial and Commercial
Bank of China Co. Ltd. -
Huatai Pinebridge CSI 300 16879114 0.17% 3443400 0.03% 34286544 0.35% 2795700 0.03%
ETF Securities Investment
Fund
The top 10 shareholders changed from the previous period
√ Applicable □ Not applicable
Unit: share(s)
Changes in the top 10 shareholders compared to the end of the previous period
The number of shares held in the
The number of shares lent at shareholders' ordinary account credit
the end of the period and has account and refinancing loans at the
New not yet been returned end of the period and not yet
Shareholder Name entry/ returned
Exit Proportion of
Total Proportion of total
total share Total quantity
quantity share capital
capital
Shen Yanjun Newentry 35003248 0.35%
Industrial and Commercial Bank of China Co. Ltd. - Huatai New
Pinebridge CSI 300 ETF Securities Investment Fund entry 2795700 0.03% 37082244 0.37%
China Construction Bank Corporation - China Energy
Innovation Equity Securities Investment Fund Exit 8848656 0.09%
Taiping Life Insurance Company Limited Exit 23834736 0.24%
Whether the top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares without sales restrictions
agreed on the repurchase transactions during the report period
75Chongqing Changan Automobile Company Limited 2023 Annual Report
□ Yes √ No
The top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares without sales restrictions did not
agree on the repurchase transactions during the reporting period.
2. The company's controlling shareholder
Nature of the controlling shareholder: the central state-owned
Type of the controlling shareholder: legal person
Name Legal /Representative Date ofestablishment Organization code Business scope and major products:
Design development manufacturing and sales of car
motorcycle and engine and parts; sales of optical products
electronic and optoelectronic products night vision
China Changan device information and communication equipment;
Automobile Group Co. Zhao Fei December26th 2005 911100007109339484 technical development transfer consultation technicalLtd. training and other technical service related to the
operation mentioned above; imports and exports; merge
and acquisition and asset restructuring consultation;
telecommunications services and agency bookkeeping.Equity of other domestic
and overseas listed As of the end of the reporting period controlling shares of listed companies: Harbin Dongan Auto Engine Co. Ltd.companies where he has (stock code 600178); Hunan Tianyan Machinery Co. Ltd. (stock code 600698) Chongqing Changan Minsheng APLL
controlled and participated Logistics Co. Ltd (stock code 01292.HK)
during the reporting period
The change of controlling shareholder during the reporting period
□Applicable √ Not applicable
No changes in controlling shareholder during the reporting period.
3. The actual controller and its parties acting in concert
Nature of the actual controller: the central state-owned asset management institution
Type of the actual controller: legal person
Name Legal Representative Date ofestablishment Organization code Businesses
Investment and management of state-owned assets
operation and management R&D manufacturing
guarantee and services of vehicles electrical equipment
China South Industries optoelectronic information products and equipment
Group Corp. Xu Xianping Jun 29th1999 91110000710926043F mechanical equipment engineering and constructionmachinery chemical materials (except hazardous
chemicals) fire-fighting equipment medical and
environmental protection equipment metal and non-metal
materials and products.As of the end of the reporting period directly or indirectly controlling the listed company: Harbin Dongan Automotive
Other domestic and Power Co. Ltd. (stock code 600178); Baoding Tianwei Baobian Electric Co. Ltd. (stock code 600550); Jiangling
overseas listed companies Automobile Co. Ltd. (stock code 000550); Hunan Tianyan Machinery Co. Ltd. (stock code 600698); Chongqing
controlled by the actual Construction Automotive Systems Co. Ltd. (stock code 200054); China Optics Group Co. Ltd. (stock code 002189);
controller during the report Construction Industry Group (Yunnan) Co. Ltd. (stock code 002265); Chongqing Chang'an Minsheng Logistics Co.period Ltd. (stock code 01292); Hubei Huaqiang Technology Co. Ltd. (stock code 688151); Anhui Great Wall Military
Industry Co. Ltd. (stock code 601606).The change of the actual controller during the reporting period
□Applicable √ Not applicable
No changes in the actual controller during the reporting period.The equity and control relationship between the company and the actual controller:
76Chongqing Changan Automobile Company Limited 2023 Annual Report
Actual controlling through trust or other asset management.□Applicable √ Not applicable
4. Pledged shares held by controlling shareholder or the largest shareholder and its parties acting in
concert account for 80% of the shares.□Applicable √ Not applicable
5. Other corporate shareholders holding over 10% shares.
□Applicable √ Not applicable
6. Shareholding restriction and reduction of controlling shareholder actual controller restructuring party
and other commitment entities
□Applicable √ Not applicable
IV. Share repurchase during the reporting period
Share repurchase
□Applicable √ Not applicable
Reducing repurchased shares by centralized bidding
□Applicable √ Not applicable
77Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 8 Preference Shares
□ Applicable √ Not applicable
There was no preferred share in the Company in the reporting period.
78Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 9 Bonds
√Applicable □ Not applicable
I. Enterprise Bonds
□Applicable √ Not applicable
No enterprise bonds in the Reporting Period
II. Corporate Bonds
√Applicable □ Not applicable
1. Basic Information of the Corporate Bonds
Unit: 10000 RMB
Abbrevi Bond Date of Value Maturi Bonds Interes Trading
Bond Name Way of redemption
ation Code issue date ty balance t rate place
Single interest is
Chongqing Changan calculated on an annual
Automobile Co. Ltd. basis excluding
publicly issued science Dece Dece Dece compound interest. The
22 Shenzhen
and technology 148147. mber mber mber interest is paid once a
Changan 100000 3.00% Stock
innovation corporate SZ 19th 20th 20th year and the principal is
K1 Exchange
bonds to professional 2022 2022 2027 repaid once due. The
investors in 2022 last interest is paid with
( Phase I ) the payment of the
principal.This bond is issued to professional institutional investors who open A-share securities
Appropriate arrangement of the investors (if
accounts in Shenzhen Branch of China Securities Depository and Clearing Co. Ltd.any)
(excluding purchasers prohibited by laws and regulations).Applicable trading mechanism Centralized bidding trade and block trading
Risk of termination of listing transactions (if
None
any) and countermeasures
Overdue bonds
□ Applicable √ Not applicable
2. The Trigger and Execution of the Option Clause of the Issuers or Investors and the Investor Protection
Clause
□Applicable √ Not applicable
3. Intermediary
Signature Contact person of
Bond Intermediary Office address Contact number
accountant intermediary
Chongqing Lead underwriter 22nd Floor CITIC Securities
Hu Yan
Changan and bond trustee: Building No. 48 Jiang Haotian
Qiao Chun 010-60837490
Automobile CITIC Securities Liangmaqiao Road Jiang jiarong
Yuan Yong
Co. Ltd. Co. Ltd. Chaoyang District Beijing
79Chongqing Changan Automobile Company Limited 2023 Annual Report
publicly issued Joint lead 27th and 28th Floors Block
science and underwriter: China 2 Guomao Building No. 1 Qi Qin Yan
010-65051166
technology International Capital Jianguomenwai Street Runan Li Cong
innovation Corporation Limited Chaoyang District Beijing
corporate Floor 8-10 Building A
bonds to Law Firm: Beijing Rongchao Business Center
professional ZhongLun Law Xu Zhigang 0755-332569026003 Yitian Road Futian
investors in Firm District Shenzhen
2022 (Phase Accounting firm: 17th Floor Ernst & Young
I ) Ernst & Young Hua Tower Oriental Plaza No. 1
Qiao Chun Yuan
Ming LLP (Special East Chang An Avenue Dong 023-62736177
Yong
General Cheng District Beijing
Partnership) China
17th Floor PICC
Rating agency: Property&Casualty Insurance
Sun Changzheng
United Credit Building No. 2 010-85679696
Li Jingyun
Rating Co. Ltd. Jianguomenwai Street
Chaoyang District Beijing
Indicate by tick mark whether above intermediary changed in the Reporting Period
□ Yes √ No
4. List of the Usage of the Raised Funds
Unit: 10000 RMB
Whether is consistent
Rectification of
Operation of with the usage using
Unused raised funds for
Bond Total amount Amount spent special account plan and other
amount violation
for raised funds agreements stipulated in
operation
the raising specification
Chongqing Changan
Automobile Co. Ltd. Relevant special
publicly issued accounts for
No illegal use
science and raised funds are
100000 100000 0 of raised Yes
technology innovation used normally
funds
corporate bonds to according to
professional investors regulations
in 2022 ( Phase I )
The raised funds were used for project construction
□ Applicable √ Not applicable
The Company changed the usage of above funds raised from bonds during the Reporting Period.□ Applicable √ Not applicable
5. Adjustment of Credit Rating Results during the Reporting Period
□Applicable √ Not applicable
6. Execution and Changes of Guarantee Repayment Plan and Other Repayment Guarantee Measures as
well as Influence on Equity of Bond Investors during the Reporting Period
□Applicable √ Not applicable
III. Debt Financing Instruments of Non-financial Enterprises
□Applicable √ Not applicable
No such cases in the Reporting Period.
80Chongqing Changan Automobile Company Limited 2023 Annual Report
IV. Convertible Corporate Bonds
□Applicable √ Not applicable
No such cases in the Reporting Period.V. Losses of Scope of Consolidated Financial Statements during the Reporting Period
Exceeding 10% of Net Assets up the Period-end of Last Year
□Applicable √ Not applicable
VI. Matured Interest-bearing Debt excluding Bonds up the Period-end
□Applicable √ Not applicable
VII. Whether there was any Violation of Rules and Regulations during the Reporting Period
□ Yes √ No
VIII. The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company up the Period-end
Unit: 10000 RMB
Items 31 December 2023 31 December 2022 Increase/decrease
Current ratio 1.27 1.35 -5.93%
Debt/asset ratio 60.73% 56.90% 3.83%
Quick ratio 1.14 1.28 -10.94%
31 December 2023 31 December 2022 Increase/decrease
Net profit after deducting 378184.67 325479.01 16.19%
non-recurring profit or loss
Debt/EBITDA ratio 13.76% 14.01% -0.25%
Interest cover (times) 147.61 137.44 7.40%
Cash-to-interest cover (times) 302.50 116.39 159.90%
EBITDA-to-interest cover 241.90 239.17 1.14%
(times)
Loan repayment rate 100% 100% 0
Interest coverage 100% 100% 0
81Chongqing Changan Automobile Company Limited 2023 Annual Report
Chapter 10 Auditor’s Report
Xin Kuai Shi Bao Zi【2024】 No. ZG11157
Chongqing Changan Automobile Company Limited
To the shareholders of
Chongqing ChanganAutomobile Company Limited
82Chongqing Changan Automobile Company Limited 2023 Annual Report
Auditor’s Report
Xin Kuai Shi BaoZi【2024】 No. ZG11157
ChongqingChanganAutomobile Company Limited
To the shareholders of
ChongqingChanganAutomobile Company Limited:
Opinion
We have audited the accompanying financial statements of Chongqing Changan
Automobile Company Limited which comprise the consolidated and the company balance
sheet as at 31 December 2023 and the consolidated and the company income statements
the statements of changes in equity and the cash flow statements for the year then ended
and notes to the financial statements.In our opinion the accompanying financial statements of Chongqing Changan Automobile
Company Limited present fairly in all material respects the consolidated and the
Company’s financial position as at 31 December 2023 and the consolidated and the
Company’s financial performance and cash flows for the year then ended in accordance with
Accounting Standards for Business Enterprises (“ASBEs”).Basis for opinion
We conducted our audit in accordance with China Standards on Auditing (“CSAs”). Our
responsibilities under those standards are further described in the Auditor’s responsibilities
for the audit of the financial statements section of our report. We are independent of the
Company in accordance with China Code of Ethics for Certified Public Accountants (the
“Code”) and we have fulfilled our other ethical responsibilities in accordance with the Code.We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.Key audit matters
Key audit matters are those matters that in our professional judgement were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole and in
forming our opinion thereon and we do not provide a separate opinion on these matters.For each matter below our description of how our audit addressed the matter is provided in
that context.
83Chongqing Changan Automobile Company Limited 2023 Annual Report
Auditor’s Report (continued)
Key audit matters (continued)
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of
the financial statements section of our report including in relation to these matters.Accordingly our audit included the performance of procedures designed to respond to our
assessment of the risks of material misstatement of the financial statements. The results of
our audit procedures including the procedures performed to address the matters below
provide the basis for our audit opinion on the accompanying financial statements.Key audit matter How our audit addressed the key
audit matter
Non-controlling interest business combination
n the current fiscal year Chongqing Changan With regard to the warranty
Automobile Co. Ltd. (hereinafter referred to as provisions audited by us:
'Changan Automobile') concluded the acquisition of
a 10.34% equity interest in Shenlan Automobile * Acquire and scrutinize pertinent
Technology Co. Ltd. (hereinafter referred to as transaction documents including
'Shenlan Automobile') boosting its ownership to equity transfer agreements and
51%. Changan Automobile has treated this board resolutions and engage in
acquisition as a non-controlling business discussions with management
combination for accounting purposes.The regarding the determination of the
management commissioned independent external acquisition date.appraisers to evaluate the fair value of identifiable
net assets. On the acquisition date Changan * Secure and evaluate the equity
Automobile revalued the original equity held at fair acquisition appraisal report
value resulting in the recognition of investment assessing the qualifications
income totaling RMB 5021482128.74. professional competency and
Additionally goodwill amounting to RMB independence of third-party
1800926049.16 was recognized due to the appraisal institutions involved.
merger cost surpassing the fair value of identifiable
net assets acquired. Given the substantial impact of * Engage internal evaluation experts
Shenlan Automobile's identifiable net assets' fair to assess the methodologies and
value on Changan Automobile's consolidated critical assumptions utilized in
financial statements and the significant determining fair value.management judgment involved we have
identified this as a key audit matter. * Examine management's
accounting treatment of the
business combination to verify
adherence to accounting
standards along with assessing the
sufficiency of related disclosures in
the notes to the consolidated
financial statements.
84Chongqing Changan Automobile Company Limited 2023 Annual Report
Auditor’s Report (continued)
Key audit matters (continued)
Key audit matter How our audit addressed the key audit
matter
Operating Revenue confirmation
Chongqing Changan Automobile Co. Ltd. With regard to the capitalization of
(hereinafter referred to as 'Changan internal development costs audited by us:
Automobile') derives its primary revenue from
automobiles automobile components related * Assess and test the efficacy of internal
products and other outputs. In 2023 Changan controls pertaining to the design and
Automobile recorded operating revenue of RMB execution of operating revenue.
1512.98 billion representing a year-on-year
growth rate of 24.78%. Given that revenue * Secure key sales contracts scrutinize
serves as a pivotal performance indicator for contract terms concerning control
Changan Automobile there exists inherent risk transfer and revenue recognition and
associated with potential management verify adherence to the company's
manipulation of revenue recognition timing to accounting policies.meet specific goals or expectations.Consequently we identify revenue recognition * Perform analytical review procedures
as a critical audit focus area. analyzing changes in various revenue
categories and gross margins to
ascertain the reasonableness of
fluctuations.* Conduct thorough examinations
of revenue recognition
scrutinizing supporting
documentation such as delivery
orders logistics documents and
sales invoices.* Select samples for transactions
occurring post-balance sheet
date review supporting
documentation like delivery
orders and logistics documents
and assess the appropriateness
of revenue recording within the
relevant accounting period.* Investigate for significant
revenue reversals or substantial
returns post-reporting period.
85Chongqing Changan Automobile Company Limited 2023 Annual Report
Auditor’s Report (continued)
Other information
The management of the Chongqing Changan Automobile Company Limited (the
“Management”) is responsible for the other information. The other information comprises
the information included in the annual report other than the financial statements and our
auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the
other information and in doing so consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit or
otherwise appears to bematerially misstated.If based on the work we have performed we conclude that there is a material
misstatement of this other information we are required to report that fact. We have
nothing to report in this regard.Management’s and governance’ responsibility for the financial statements
The Management is responsible for the preparation and fair presentation of these financial
statements in accordance with ASBEs and for designing implementing and maintaining
such internal control as the management determines is necessary to enable the preparation
of financial statements that are free from material misstatement whether due to fraud or
error.In preparing the financial statements the Management is responsible for assessing the
Company’s ability to continue as a going concern disclosing as applicable matters related
to going concern and using the going concern basis of accounting unless the management
either intends to liquidate the Company or to cease operations or has no realistic alternative
but to do so.Those charged with governance are responsible for overseeing the Company’s financial
reporting process.
86Chongqing Changan Automobile Company Limited 2023 Annual Report
Auditor’s Report (continued)
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement whether due to fraud or error and to issue
an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance but is not a guarantee that an audit conducted in accordance with CSAs will
always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are generally considered material if individually or in the aggregate they could
reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.As part of an audit in accordance with CSAs we exercise professional judgement and
maintain professional skepticism throughout the audit.We also:
(1) Identify and assess the risks of material misstatement of the financial statements
whether due to fraud or error design and perform audit procedures responsive to those
risks and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error as fraud may involve collusion forgery
intentional omissions misrepresentations or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosuresmade by themanagement.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of
accounting and based on the audit evidence obtained whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists
we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or if such disclosures are inadequate to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However future events or conditions may cause the Company to cease to
continue as a going concern.
(5) Evaluate the overall presentation including the disclosures structure and content of the
financial statements and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
87Chongqing Changan Automobile Company Limited 2023 Annual Report
Auditor’s Report (continued)
Auditor’s responsibilities for the audit of the financial statements (continued)
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Company to express an opinion on the financial
statements. We are responsible for the direction supervision and performance of the
Group audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the
planned scope and timing of the audit and significant audit findings including any
significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when in
extremely rare circumstances we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.ZhuYuQin
BDOChina Shu Lun PanCertified Public
Accountants LLP ChineseCertified Public Accountant
(Engagement partner)
Wang Kai
ChineseCertified Public Accountant
Shanghai the PRC 16April 2024
88ChongqingChanganAutomobile Company Limited
CONSOLIDATED BALANCE SHEET
31 December 2023
(Expressed in RenminbiYuan)
Assets Notes V 2023/12/31 2022/12/31
Current assets
Cash 1 64871042747.88 53530183827.34
Financial assets held for trading 2 167519347.29 280315571.09
Notes receivable 3 37658391214.01 35849660652.96
Accounts receivable 4 2411796419.07 3068414415.29
Prepayments 5 287711010.62 749572262.00
Other receivables 6 894268431.82 1261157951.14
Inventories 7 13465847696.93 5823307512.90
Contract assets 8 1442876966.30 458389187.10
Other current assets 9 9735453361.32 1054779668.19
Total current assets 130934907195.24 102075781048.01
Non-current assets
Long-term
equity investments 10 13787391985.47 14406662456.28
Other equity instrument
investment 11 504190082.71 489950000.00
Investment property 12 6196003.48 6422715.04
Fixed assets 13 19994084908.14 19346764691.44
Construction in progress 14 1914345359.83 1387898218.64
Right-of-use assets 15 209480676.04 100813386.01
Intangible assets 16 15045563649.79 4446385255.68
Development expenditure VI 2241820556.70 723211177.47
Goodwill 17 1810730443.16 9804394.00
Long-term deferred expenses 18 24162220.06 26375422.17
Deferred tax assets 19 3248254057.65 3028999310.51
Other non-current assets 20 450000000.00
Total non-current assets 59236219943.03 43973287027.24
TOTAL ASSETS 190171127138.27 146049068075.25
The notes form an integral part of the financial statements.
89ChongqingChanganAutomobile Company Limited
CONSOLIDATED BALANCE SHEET (continued)
31 December 2023
(Expressed in RenminbiYuan)
Notes V 2023/12/31 2022/12/31
Current liabilities
Short-term loans 22 30039416.74 29000000.00
Notes payable 23 37456669928.07 22072793864.83
Account payable 24 38289947321.45 29449664138.75
Receipts in advance 25 686755.00
Contract liabilities 26 7923792852.77 5655256792.66
Payroll payable 27 2750661337.26 2807158489.85
Tax payable 28 1928723907.38 1749946082.32
Other payables 29 5880882512.97 6082766424.67
Non-current liabilities due within
one year 30 80077042.88 885723901.34
Other current liabilities 31 8897936399.92 6627044667.62
Total current liabilities 103239417474.44 75359354362.04
Non-current liabilities
Long-term loans 32 72000000.00 36000000.00
Bonds payable 33 999607547.16 999528301.88
Lease Liabilities 34 134254398.07 60205397.98
Long-term account payable 35 952446118.57 553518750.12
Long term payroll payable 36 30414000.00 35013000.00
Accrued liabilities 37 6277041416.79 4589299321.49
Deferred income 38 718840543.52 347568549.62
Deferred tax liabilities 19 1566074982.00 237036741.16
Other non-current liabilities 39 1497773818.69 882226966.14
Total non-current liabilities 12248452824.80 7740397028.39
Total liabilities 115487870299.24 83099751390.43
The notes form an integral part of the financial statements.
90ChongqingChanganAutomobile Company Limited
CONSOLIDATED BALANCE SHEET (continued)
31 December 2023
(Expressed in RenminbiYuan)
Notes V 2023/12/31 2022/12/31
Owners’ equity
Share capital 40 9917289033.00 9921799422.00
Capital reserves 41 8251287637.70 8532806685.77
Less: treasury shares 42 382277095.96 627060416.52
Other
comprehensive Income 43 118318784.04 98841615.42
Special reserves 44 54323330.34 24090898.05
Surplus reserves 45 4276245864.64 3528165002.27
Retained earnings 46 49617932431.73 41379965149.07
Equity attributable to owners 71853119985.49 62858608356.06
Minority interests 2830136853.54 90708328.76
Total equity 74683256839.03 62949316684.82
TOTAL LIABILITIES
AND OWNERS’ EQUITY 190171127138.27 146049068075.25
The financial statements have been signed by:
Legal Principal in Charge Chief
Representative: of Accountancy: Accountant:
The notes form an integral part of the financial statements.
91ChongqingChanganAutomobile Company Limited
CONSOLIDATED INCOMESTATEMENT
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Notes V 2023 2022
Operating revenue 47 151297706646.97 121252864085.40
Less: Operating cost 47 123522656353.72 96409610873.76
Tax and surcharges 48 4758426281.70 4101847822.50
Operating expenses 49 7645205592.88 5138270162.95
General and administrative
expenses 50 4097537529.67 3532458198.76
Research and development
expenses 51 5979844653.23 4315444864.76
Financial income 52 -897343739.80 -1017305743.08
Interest expense 52 65658308.92 48683490.36
Interest income 52 1172272116.20 1014346758.69
Add: Other incomes 53 1644319505.04 529819888.31
Investment income/(loss) 54 3050413045.10 -768957070.79
Including: Investment
income/(loss)
from associates and joint
venture 54 -2201515632.81 -3060648491.82
Earnings from fair value
changes 55 -19061189.53 3570229.29
Impairment loss of credit 56 -46742115.91 -32242010.27
Impairment loss on assets 57 -813828346.53 -945853716.20
Gain on disposal of assets 58 440995737.23 74862481.00
Operating profit 10447476610.97 7633737707.09
Add: Non-operating income 59 169793538.35 128910416.79
Less: Non-operating expenses 60 28073391.83 54391039.79
Total profit 10589196757.49 7708257084.09
Less: Income tax expense 61 1087297716.52 -36769018.51
Net profit 9501899040.97 7745026102.60
Classification by going concern
Net profit from
continuing operations 9501899040.97 7745026102.60
Classification by ownership
attribution
Net profit attributable
to owners 11327463013.15 7798785367.38
Minority interests -1825563972.18 -53759264.78
The notes form an integral part of the financial statements.
92ChongqingChanganAutomobile Company Limited
CONSOLIDATED INCOMESTATEMENT (continued)
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Notes V 2023 2022
Other comprehensive income
net of tax
Total comprehensive income
attributable to owners
net of tax 19477168.62 34464805.89
Other comprehensive income not to be
reclassified to profit or loss in
subsequent periods
Change in net liability or assets from
defined benefit plan 540000.00 112000.00
Other comprehensive income under
the equity method cannot be converted
into profit or loss -1454051.91 602832.07
Changes in fair value of other equity
investment 12104070.30 -4675000.00
11190018.39-3960167.93
Other comprehensive income to be
reclassified to profit or loss in
subsequent periods:
Other comprehensive income under
the equity method to be converted into
profit or loss -75815.98
Foreign currency reserve 8287150.23 38500789.80
8287150.2338424973.82
Total comprehensive income
attributable to minority interests net of
tax (1916.69
Total comprehensive income 9521376209.59 7779488991.80
Including:
Total comprehensive income
11346940181.777833250173.27
attributable to owners
Total comprehensive income
attributable to minority interest -1825563972.18 -53761181.47
Earnings per share
Basic earnings per share 62 1.15 0.80
Diluted earnings per share 62 1.13 0.78
The notes form an integral part of the financial statements.
93ChongqingChanganAutomobile Company Limited
CONSOLIDATEDSTATMENTOFCHANGES IN SHAREHOLDERS’ EQUITY
Year ended 31 December 2023
(Expressed in RenminbiYuan)
2023
Equity attributable to owners
Share capital Capital Less: treasury Other Special Surplus Retained Subtotal Minority Total equity
reserves shares comprehensive reserves reserves earnings interest
income
At 31 December 2022 9921799422.00 8532806685.77 627060416.52 98841615.42 24090898.05 3528165002.27 41379965149.07 62858608356.06 90708328.76 62949316684.82
Changes during the year:
Total comprehensive income 19477168.62 11327463013.15 11346940181.77 -1825563972.18 9521376209.59
Capital contributed by owners and
capital decreases -4510389.00 -281519048.07 -218038971.73 -67990465.34 4557548599.34 4489558134.00
1. Ordinary shares
contribution from owners -4510389.00 -4510389.00 35190000.00 30679611.00
2.Amount of share-based
payments included in
shareholders' equity 348509207.00 348509207.00 348509207.00
3.Others -630028255.07 -218038971.73 -411989283.34 4522358599.34 4110369316.00
Distribution of profit -26744348.83 748080862.37 -3089495730.49 -2341414868.12 -150000.00 -2314820519.29
1.Surplus reserve 748080862.37 -748080862.37
2.Distribution to owners -26744348.83 -2341414868.12 -2341414868.12 -150000.00 -2314820519.29
Internal transfer of shareholder
equity
1.Capital reserve converted
into share capital
2.Other comprehensive income
converted to retained earnings
Special reserves 30232432.29 30232432.29 7593897.62 37826329.91
1.Provided 126209917.06 126209917.06 9354725.09 135564642.15
2.Ultilized -95977484.77 -95977484.77 -1760827.47 -97738312.24)
Disposal of subsidiaries -
At 31 December 2023 9917289033.00 8251287637.70 382277095.96 118318784.04 54323330.34 4276245864.64 49617932431.73 71853119985.49 2830136853.54 74683256839.03
The notes form an integral part of the financial statements.
94ChongqingChanganAutomobile Company Limited
CONSOLIDATEDSTATMENTOFCHANGES IN SHAREHOLDERS’ EQUITY (continued)
Year ended 31 December 2023
(Expressed in RenminbiYuan)
2022
Equity attributable to owners
Share capital Capital Less: treasury Other Special Surplus Retained Subtotal Minority Total equity
reserves shares comprehensive reserves reserves earnings interest
income
At 31 December 2021 7632153402.00 9776193360.38 655812327.60 69442469.53 27988260.61 2982292413.67 35900674525.13 55732932103.72 133307840.48 55866239944.20
Add:Changes in accounting
policies 15440.88 152935.82 168376.70 168376.70
Opening balance for the year 7632153402.00 9776193360.38 655812327.60 69442469.53 27988260.61 2982307854.55 35900827460.95 55733100480.42 133307840.48 55866408320.90
Total comprehensive income 34464805.89 7798785367.38 7833250173.27 -53761181.47 7779488991.80
Capital contributed by owners and
capital decreases 1046259345.39 1046259345.39 1046259345.39
1.Amount of share-based
payments included in
shareholders' equity 380209900.00 380209900.00 380209900.00
2.Others 666049445.39 666049445.39 666049445.39
Distribution of profit -28751911.08 545857147.72 -2324713339.26 -1750104280.46 -1750104280.46
1.Surplus reserve 545857147.72 -545857147.72
2.Distribution to owners -28751911.08 -1778856191.54 -1750104280.46 -1750104280.46
3.Others
Internal transfer of shareholder
equity 2289646020.00 -2289646020.00 -5065660.00 5065660.00
1.Capital reserve converted
into share capital
2。Others -5065660.00 5065660.00
Special reserves -3897362.56 -3897362.56 286981.06 -3610381.50
1.Provided 104696987.95 104696987.95 3726050.64 108423038.59
2.Ultilized -108594350.51 -108594350.51 -3439069.58 -112033420.09
Other 10874688.69 10874688.69
At 31 December 2022 9921799422.00 8532806685.77 627060416.52 98841615.42 24090898.05 3528165002.27 41379965149.07 62858608356.06 90708328.76 62949316684.82
The notes form an integral part of the financial statements.
95ChongqingChanganAutomobile Company Limited
CONSOLIDATEDCASH FLOWSTATEMENT
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Notes V 2023 2022
CASH FLOWS FROM
OPERATING ACTIVITIES
Cash received from sale of goods
or rendering of services 168499172064.84 122619321871.95
Refunds of taxes 2225768807.06 2134224529.98
Cash received relating to other
operating activities 63 3358313435.61 2441682594.87
Subtotal of cash inflows 174083254307.51 127195228996.80
Cash paid for goods and services 120590933831.95 97369979246.46
Cash paid to and on behalf of
employees 11126200718.40 9188241321.99
Cash paid for all types of taxes 11570501390.34 8604964741.08
Cash paid relating to other
operating activities 63 10934152129.26 6365696828.75
Subtotal of cash outflows 154221788069.95 121528882138.28
Net cash flows from operating
activities 63 19861466237.56 5666346858.52
CASH FLOWS FROM INVESTING
ACTIVITIES
Cash received from recovery
of investment 131461810.72 131455724.43
Cash received from return
on investment 344832879.75 1750853747.11
Net cash received from disposal of
fixed assets intangible assets
and other long-term assets 296034699.57 609907900.54
Cash received relating to other
investing activities 63 6216944276.29 -
Subtotal of cash inflows 6989273666.33 2492217372.08
Cash paid for acquisition of
fixed assets intangible assets
and other long-term assets 2824057426.66 1405004336.97
Cash paid for investment 2373361769.00 3226058570.32
Other cash disbursed
in connection with
investment activities 63 8000000000.00 815126333.76
Subtotal of cash outflows 13197419195.66 5446189241.05
Net cash flows from investing
activities -6208145529.33 -2953971868.97)
The notes form an integral part of the financial statements.
96ChongqingChanganAutomobile Company Limited
CONSOLIDATEDCASH FLOWSTATEMENT (continued)
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Notes V 2023 2022
CASH FLOWS FROM
FINANCING ACTIVITIES:
Cash received from absorbing
investments 35190000.00-
Including: cash received by the
subsidiary from absorbing
minority shareholders' investment
Cash received from borrowings 120000000.00 1086598301.88
Cash received relating to
other financing activities 63 863425006.28 1705726148.77
Sub-total of cash inflows 1018615006.28 2792324450.65
Cash repayments of borrowings 683000000.00 391370000.00
Cash paid for distribution of
dividends or profits and
interest expenses 2380851402.08 1803960937.04
Cash paid relating to
other financing activities 63 83072569.73 372563245.60
Sub-total of cash outflows 3146923971.81 2567894182.64
Net cash flows from financing activities -2128308965.53 224430268.01
EFFECT OF CHANGES IN
EXCHANGE RATE ON CASH -90488889.33 36712955.19)
NET INCREASE IN CASH
AND CASH EQUIVALENTS 11434522853.37 2973518212.75
Add: Opening balance of
cash and cash equivalents 52491435047.74 49517916834.99
CLOSING BALANCE OF
CASH AND CASH EQUIVLANT 63 63925957901.11 52491435047.74
The notes form an integral part of the financial statements.
97ChongqingChanganAutomobile Company Limited
BALANCE SHEET
31 December 2023
(Expressed in RenminbiYuan)
Notes
2023/12/312022/12/31
XVII
Current assets
Cash 44029520088.62 44742705933.76
Financial assets held
for trading 160744733.27 251165128.80
Notes receivable 33788748503.90 32497209409.96
Accounts receivable 1 8579504025.23 5538504821.82
Prepayments 112547088.73 519014279.72
Other receivables 2 237247787.26 859026748.64
Inventories 5615873258.35 2872390838.54
Contract assets 128498871.61 221555444.48
Other current assets 5522797370.57 199954784.05
Total current assets 98175481727.54 87701527389.77
Non-current assets
Long-term equity investments 3 19435450021.37 17385137116.25
Other equity instrument
investment 504190082.71 489950000.00
Fixed assets 13453515476.81 14214227798.06
Construction in progress 1407521918.44 895860965.16
Right-of-use assets 168093468.85 78806182.57
Intangible assets 3312017680.07 3299143861.49
Development expenditure 2017011508.06 616814902.46
Long-term deferred expenses 21709036.17 24406892.18
Deferred tax assets 2774652958.37 2631463197.21
Other non-current assets 450000000.00
Total non-current assets 43544162150.85 39635810915.38
TOTAL ASSETS 141719643878.39 127337338305.15
The notes form an integral part of the financial statements.
98ChongqingChanganAutomobile Company Limited
BALANCE SHEET (continued)
31 December 2023
(Expressed in RenminbiYuan)
Notes
2023/12/312022/12/31
XVII
Current liabilities
Notes payable 25950782831.24 18728133049.99
Accounts payable 23842258668.42 21488548997.96
Contract liabilities 4606921633.17 3997514972.13
Payroll payable 1919102689.66 2436938973.59
Taxes payable 1300178990.13 1376448691.45
Other payables 3236371408.79 5425776798.83
Non-current liabilities due
within one year 56170742.39 635180849.52
Other current liabilities 6286218965.50 5932680982.04
Total current liabilities 67198005929.30 60021223315.51
Non-current liabilities
Long term loans 72000000.00 36000000.00
Bonds Payable 999607547.16 999528301.88
Lease Liabilities 117490288.82 45437270.79
Long term payable 120081551.85 144571302.45
Long term payroll payable 17659000.00 20565000.00
Contingent liabilities 4402025046.54 3936444965.49
Deferred income 603864707.08 150000000.00
Deferred tax liabilities 197625245.62 195053909.31
Other non-current liabilities 1287646146.69 844435549.31
Total non-current liabilities 7817999533.76 6372036299.23
Total liabilities 75016005463.06 66393259614.74
Owner’s equity
Share capital 9917289033.00 9921799422.00
Capital reserves 8406226198.82 8047195325.61
Less: treasury shares 382277095.96 627060416.52
Other comprehensive income 169049829.02 157416810.63
Special reserves 19514786.95 10285640.79
Surplus reserves 4276245864.64 3528165002.27
Retained earnings 44297589798.86 39906276905.63
Total owner’s equity 66703638415.33 60944078690.41
TOTAL LIABILITIES
AND OWNERS’ EQUITY 141719643878.39 127337338305.15
The notes form an integral part of the financial statements.
99ChongqingChanganAutomobile Company Limited
INCOMESTATEMENT
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Notes
XVII 2023/12/31 2022/12/31
Operating revenue 4 118698033782.77 106665145289.28
Less: Operating cost 4 98509854086.30 86241479807.95
Tax and surcharges 2918130753.90 2941819015.41
Operating expenses 3539037793.87 3664889410.65
General and administrative
expenses 2766449647.21 2913302431.16
Research and development
expenses 3822529677.53 4234015352.11
Financial income -809080245.53 -825576954.93
Interest expense 40655362.11 26032591.55
Interest income 865820973.86 868071769.55
Add: Other incomes 1564577278.73 283581332.54
Investment income 5 -1224231437.03 -1923078565.61
Including: Investment
Income/(loss) from
associates and
joint venture -2157754465.24 -3075237898.94
Income/(loss) from fair value
changes 41019998.59 -25580213.00
Credit impairment loss 10927568.37 -15475196.02
Impairment loss -477092984.70 -659679327.77
Gain/(loss) on disposal of
assets 397686430.93 33996713.38
Operating profit 8263998924.38 5188980970.45
Add: Non-operating income 111413858.23 50112744.21
Less: Non-operating expenses 22524889.94 25461278.69
Total profit 8352887892.67 5213632435.97
Less: Income tax expense 872079268.95 -244939041.24
Net profit 7480808623.72 5458571477.21
Classification by going concern
Net profit from
continuing operations 7480808623.72 5458571477.21
The notes form an integral part of the financial statements.
100ChongqingChanganAutomobile Company Limited
INCOMESTATEMENT (continued)
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Notes
XVII 2023/12/31 2022/12/31
Other comprehensive income
net of tax
Total comprehensive income
attributable to owners
net of tax
Other comprehensive income
not to be reclassified to
profit or loss in
subsequent periods
Change in net liability or
assets from defined
benefit plan 983000.00 141000.00
Other comprehensive income
under the equity method
cannot be converted into
profit or loss -1454051.91 602832.07
Changes in fair value of
other equity investment 12104070.30 -4675000.00
11633018.39-3931167.93
Other comprehensive income
to be reclassified to profit
or loss in subsequent periods
Reclassification of financial
assets recognized in other
comprehensive income
Amounts under equity
method 70412.45
Total comprehensive income 7492441642.11 5454710721.73
The notes form an integral part of the financial statements.
101ChongqingChanganAutomobile Company Limited
STATMENTOFCHANGES IN SHAREHOLDERS’ EQUITY
Year ended 31 December 2023
(Expressed in RenminbiYuan)
2023
Share capital Capital reserves Less: treasury Other Special reserves Surplus reserves Retained earnings Total owner’s equity
shares comprehensive income
At 31 December 2022 9921799422.00 8047195325.61 627060416.52 157416810.63 10285640.79 3528165002.27 39906276905.63 60944078690.41
Add:Changes in accounting
policies
Changes during the year:
Total comprehensive income 11633018.39 7480808623.72 7492441642.11
Capital contributed by owners and capital
decreases -4510389.00 354030873.21 -218038971.73 567559455.94
1. Ordinary shares contribution from
owners -4510389.00 -4510389.00
2.Amount of share-based payments
included in shareholders' equity 348509207.00 348509207.00
3.Others 5521666.21 -218038971.73 223560637.94
Distribution of profit -26744348.83 748080862.37 -3089495730.49 -2314670519.29
1.Surplus reserve 748080862.37 -748080862.37
2.Distribution to owners -26744348.83 -2341414868.12 -2314670519.29
Internal transfer of shareholder equity
1.Capital reserve converted into share
capital
2.Other comprehensive earnings converted
to retained earnings
Special reserves 9229146.16 9229146.16
1.Provided 65743690.42 65743690.42
2.Ultilized -56514544.26 -56514544.26
Disposition of subsidiaries 5000000.00 5000000.00
At 31 December 2023 9917289033.00 8406226198.82 382277095.96 169049829.02 19514786.95 4276245864.64 44297589798.86 66703638415.33
The notes form an integral part of the financial statements.
102ChongqingChanganAutomobile Company Limited
STATMENTOFCHANGES IN SHAREHOLDERS’ EQUITY (continued)
Year ended 31 December 2023
(Expressed in RenminbiYuan)
2022
Share capital Capital reserves Less: treasury Other Special reserves Surplus reserves Retained earnings Total owner’s equity
shares comprehensive income
At 31 December 2021 7632153402.00 9293065334.91 655812327.60 166051336.11 7552984.45 2982292413.67 36887741937.47 56313045081.01
Add:Changes in accounting
policies 15440.88 138967.94 154408.82
Changes during the year:
Total comprehensive income -3860755.48 5458571477.21 5454710721.73
Capital contributed by owners and capital
decreases 1043776010.70 1043776010.70
1.Amount of share-based payments
included in shareholders' equity 380209900.00 380209900.00
2.Others 663566110.70 663566110.70
Distribution of profit -28751911.08 545845221.86 -2324713339.26 -1750104280.46
1.Surplus reserve 545845221.86 -545845221.86
2.Distribution to owners -28751911.08 -1778856191.54 -1750104280.46
Internal transfer of shareholder equity 2289646020.00 -2289646020.00 -4773770.00 4773770.00
1.Capital reserve converted into share
capital 2289646020.00 -2289646020.00
2. Other comprehensive income transferred
to retained earnings -4773770.00 4773770.00
Special reserves 2732656.34 2732656.34
1.Provided 61019966.31 61019966.31
2.Ultilized -58287309.97 -58287309.97
Disposition of subsidiaries -120235907.73 -120235907.73
At 31 December 2022 9921799422.00 8047195325.61 627060416.52 157416810.63 10285640.79 3528165002.27 39906276905.63 60944078690.41
The notes form an integral part of the financial statements.
103ChongqingChanganAutomobile Company Limited
CASH FLOWSTATEMENT
Year ended 31 December 2023
(Expressed in RenminbiYuan)
20232022
CASH FLOWS FROM
OPERATING ACTIVITIES
Cash received from sale of goods
or rendering of services 121118712751.06 101043628683.39
Refunds of taxes 30303650.49 215500668.27
Cash received relating to other
operating activities 3109565404.95 2041143114.40
Subtotal of cash inflows 124258581806.50 103300272466.06
Cash paid for goods and services 90035055033.05 80159943881.88
Cash paid to and on behalf of
employees 6959713091.69 6388175996.37
Cash paid for all types of taxes 5715167820.29 5761670921.49
Cash paid relating to other
operating activities 8188283938.48 4922708175.82
Subtotal of cash outflows 110898219883.51 97232498975.56
Net cash flows from operating
activities 13360361922.99 6067773490.50
CASH FLOWS FROM INVESTING
ACTIVITIES
Cash received from recovery
of investment 131461810.72 121799633.86
Cash received from return
on investment 324982879.75 1809926134.11
Net cash received from disposal of
fixed assets intangible assets
and other long-term assets 10480609.45 554362304.63
Cash received relating to other
investing activities -
Subtotal of cash inflows 466925299.92 2486088072.60
Cash paid for acquisition of
fixed assets intangible assets
and other long-term assets 2008243647.99 1064936821.33
Cash paid for investment 4026183368.63 3506058570.32
Cash paid relating to other
investing activities 5500000000.00
Subtotal of cash outflows 11534427016.62 4570995391.65
Net cash flows from investing
activities -11067501716.70 -2084907319.05
The notes form an integral part of the financial statements.
104ChongqingChanganAutomobile Company Limited
CASH FLOWSTATEMENT (continued)
Year ended 31 December 2023
(Expressed in RenminbiYuan)
20232022
CASH FLOWS FROM
FINANCING ACTIVITIES:
Cash received from absorbing
investments -
Cash received from borrowings 40000000.00 1039528301.88
Sub-total of cash inflows 40000000.00 1039528301.88
Cash repayments of borrowings 604000000.00 354300000.00
Cash paid for distribution of
dividends or profits and
interest expenses 2375052447.79 1802234067.67
Cash paid relating to
other financing activities 62453603.64 23280631.67
Sub-total of cash outflows 3041506051.43 2179814699.34
Net cash flows from financing activities -3001506051.43 -1140286397.46
EFFECT OF CHANGES IN
EXCHANGE RATE ON CASH -
NET INCREASE IN CASH
AND CASH EQUIVALENTS -708645845.14 2842579773.99
Add: Opening balance of
cash and cash equivalents 44732418327.28 41889838553.29
CLOSING BALANCE OF
CASH AND CASH EQUIVLANT 44023772482.14 44732418327.28
The notes form an integral part of the financial statements.
105ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
I 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.On 31 December 2023
the total share capital of the company was RMB9917289033.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 SouthGroup respectively.According to the Articles of Association the financial statements which has been approved by
the board of directors was submitted to general meeting of shareholders for approval.
106ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
II BASISOF PREPERATION
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 provisionsissued subsequently by the MOF (correctly referred to as “Accounting Standards for BusinessEnterprises”).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.III SUMMARYOFSIGNIFICANTACCOUNTING 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 withAccounting Standards for Business Enterprises
The financial statements present fairly and fully the financial position of the company on 31
December 2023 and the financial results and the cash flows for the year 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 isYuan. 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.
4. Business combination
Business combinations are classified into business combinations involving entities under
common control and business combinations involving entities not under common control.
107ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
4. Business combination (continued)
Business combination involving entities under common control
A business combination involving entities under common control is a business combination in
which all of the combining entities are ultimately controlled by the same party or parties both
before and after the combination and that control is not transitory. For a business combination
involving entities under common control the party which on the combination date obtains
control of another entity participating in the combination is the acquiring party while that other
entity participating in the combination is a party being acquired. Combination date is the date
on which the acquiring party effectively obtains control of the party being acquired.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
A business combination involving entities not under common control is a business combination
in which all of the combining entities are not ultimately controlled by the same party or parties
both before and after the combination. For a business combination involving entities not under
common control the party that on the acquisition date obtains control of another entity
participating in the combination is the acquirer while that other entity participating in the
combination is the acquiree. Acquisition date is the date on which the acquirer effectively
obtains control of the acquiree.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 theGroup recognize the remaining difference in profit or loss.
108ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
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 theGroup should reassess whether it has taken control of the investee.
6. 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.
109ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
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.
110ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
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 all 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 andmeasurement 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 at fair value through profit or loss financial assets at amortized cost and
financial assets at fair value through other comprehensive income. All affected related financial
assets will be reclassified only if 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.
111ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
9. Financial instruments(continued)
Classification andmeasurement of financial assets(continued)
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.
112ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
9. Financial instruments (continued)
Classification andmeasurement of financial assets (continued)
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.Financial liabilities are classified at initial recognition as financial liabilities at fair value through
profit or loss other financial liabilities. For financial liabilities at fair value through profit or loss
relevant transaction costs are directly recognized in profit or loss and transaction costs relating
to other financial assets are included in the initial recognition amounts.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.Other financial liabilities
Other financial liabilities are subsequently measured at amortized cost using the effective
interest method.
113ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
9. Financial instruments (continued)
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.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.
114ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
9. Financial instruments (continued)
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 asset; and if the Group retains substantially all the risks
and rewards of the financial asset theGroup 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.TheGroup 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. If factors that resulted in the provision for the inventory have disappeared
and made the net realizable value higher than their book value the amount of the write-down
should be reversed to the extent of the amount of the provision for the inventory and the
reversed amount should be recognized in the income statement for the current period.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.
115ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
11. Long-term equity investments
Long-term equity investments include investments in subsidiaries joint ventures and
associates.Long-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.
116ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
11. Long-term equity investments (continued)
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.
117ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
11. Long-term equity investments (continued)
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 transferred 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.
12. 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.TheGroup adopts the cost method to make follow-up measurement to the investment property.The buildings are depreciated under straight-line method.
13. 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.
118ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
13. Fixed assets (continued)
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.
14. 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.
15. Borrowing costs
Borrowing costs are interest and other costs incurred by the Group in connection with the
borrowing of the funds. Borrowing costs include interest amortization of discounts or
premiums related to borrowings ancillary costs incurred in connection with the arrangement of
borrowings and exchange differences arising from foreign currency borrowings.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
3) activities that are necessary to prepare the asset for its intended use or sale are in
progress.
119ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
15. Borrowing costs (continued)
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.
16. Right-of-use assets
TheGroup's right-of-use assets are mainly buildings.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 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. 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.When the Group remeasures the lease liability according to the present value of the changed
lease payment and adjusts the book value of the right of use asset if the carrying amount of the
right-of-use assets has been reduced to zero but the lease liabilities still need to be further
reduced theGroup will include the remaining amount in the profit or loss of the current period.
120ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
17. 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.The useful life of an intangible asset that is not being amortised 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.
121ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
18. 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.
19. Impairment of assets
The Group determines the impairment of assets other than the impairment of inventory
contract assets deferred income taxes and financial assets using the following methods:
The Group assesses at the balance sheet date whether there is any indication that an asset may
be impaired. If any indication exists that an asset may be impaired the Group estimates the
recoverable amount of the asset and performs impairment tests. Goodwill arising from a
business combination and an intangible asset with an indefinite useful life are tested for
impairment at least at the end of every year irrespective of whether there is any indication that
the asset may be impaired. An intangible asset which is not ready for its intended use is tested
for impairment at least at the end of every year.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.
122ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
19. Impairment of assets (continued)
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.Once the above impairment loss is recognized it cannot be reversed in subsequent periods.
20. 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.
21. 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.
123ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
21. Employee benefits (continued)
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 theGroup 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.
124ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
22. Lease liabilities
At the commencement date of the lease period the Group recognizes the present value of the
outstanding lease payments as a lease liability excluding short-term leases and leases of
low-value assets. When calculating the present value of the lease payment the Group uses the
lease implied rate as the discount rate and if the lease implied interest rate cannot be
determined the lessee incremental borrowing rate is used as the discount rate. The Group
calculates the interest expense of the lease liability in each period of the lease term according to
the fixed periodic interest rate and records it into the current profit and loss unless otherwise
specified it is included into the cost of relevant assets. Variable lease payments that are not
included in the measurement of lease liabilities are included in the profit or loss of the current
period when actually incurred unless otherwise specified to be included in the cost of the
underlying assets.After the commencement date of the lease period the Group remeasures the lease liability
against the present value of the changed lease payment amount when there is a change in the
amount of substantial fixed payments a change in the amount expected to pay due to the
residual value of the guarantee a change in the index or ratio used to determine the amount of
the lease payment the assessment of the purchase option the renewal option or the option to
terminate the lease.
23. 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.
125ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
24. 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.
126ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
25. 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.
127ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
25. Revenue from contracts with customers (continued)
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 III 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 theGroup's commitment to perform tasks.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.
26. 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 theGroup refer to Note III 9.
128ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
26. Contract assets and contract liabilities (continued)
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.
27. 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.TheGroup 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.
129ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
28. Income taxes
Income tax comprises current and deferred tax. Income tax is recognized as an income or an
expense and include in the income statement for the current period except to the extent that
the tax arises from a business combination or if it relates to a transaction or event which is
recognized directly in equity.Current income tax liabilities or assets for the current and prior periods are measured at the
amount expected to be paid (or recovered) according to the requirements of tax laws.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:
(1) 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.A 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.
130ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
28. Income taxes (continued)
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.
29. Leases
Identification of 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. To assess whether a
contract conveys the right to control the use of an identified asset for a period of time the
Group assesses whether throughout the period of use the customer has both of the right to
obtain substantially all of the economic benefits from use of the identified asset and the right to
direct the use of the identified asset.
131ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
29. Leases (continued)
Assessment of the lease term
The lease term is the non-cancellable period of a lease for which the Group has the right to use
an underlying asset. If the Group has an option to extend the lease that is the Group has the
right to extend the lease and is reasonably certain to exercise that option the lease term also
includes periods covered by an option to extend the lease. If the Group has an option to
terminate the lease that is the Group has the right to terminate the lease but is reasonably
certain not to exercise that option the lease term includes periods covered by an option to
terminate the lease. The Group reassesses whether it is reasonably certain to exercise an
extension option purchase option or not to exercise a termination option upon the occurrence
of either a significant event or a significant change in the circumstances that is within the
control of the Group and affects whether the Group is reasonably certain to exercise an option
not previously included in its determination of the lease term.As lessee
TheGroup's general accounting treatment as a lessee is provided in Notes III 16 and 22.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.TheGroup recording the operating lease as a lessor
Rental income under an operating lease is recognized on a straight-line basis over the lease
term through profit or loss. Variable lease payments that are not included in the measurement
of lease receivables are charged to profit or loss as incurred.
132ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
29. Leases (continued)
The Group accounts for a modification to an operating lease as a new lease from the effective
date of the modification considering any prepaid or accrued lease payments relating to the
original lease as part of the lease payments for the new lease.A finance lease is a lease that transfers in substance all the risks and rewards incident to
ownership of an asset. An operating lease is a lease other than a finance lease.
30. Methods for Determining Importance and Selection Criteria
Items Importance Criteria
The net assets of subsidiaries account for more than 5%
Important non wholly-owned of the company's consolidated net assets or the net profit
subsidiaries accounts for more than 10% of the company's
consolidated net profit
Investment gains and losses under the equity method for
Important joint ventures long-term equity investments account for more than 10%
of the company's consolidated net profit
The individual write off amount accounts for more than
Important accounts
5% of the total bad debt provision for various accounts
receivable write off
receivable or the amount exceeds 15 million yuan
Significant amount of bad
The single recovery or reversal amount accounts for more
debt provision reversal or
than 5% of the total bad debt reserves of various
recovery for accounts
receivables or the amount exceeds 15 million yuan
receivable
The individual amount accounts for more than 5% of the
Important prepayments with
total prepaid accounts or the amount exceeds 15 million
an aging of over 1 year
yuan
Important accounts payable The individual amount accounts for more than 5% of the
with an aging of over 1 year or total amount of various accounts payable or the amount
overdue exceeds 15 million yuan
Significant other payables The individual amount accounts for more than 5% of the
with an aging of over 1 year or total amount of other accounts payable or the amount
overdue exceeds 15 million yuan
The ending balance of the project is more than 50 million
Important ongoing projects
yuan
31. Changes in significant accounting policies and accounting estimates
1. Changes in significant accounting policies
Implementation of Accounting Standards for Business Enterprises Interpretation No. 16 in
relation to the Accounting Treatment for Deferred Income Tax Related to Assets and Liabilities
Arising from a SingleTransaction toWhich the Initial Recognition Exemption Does Not Apply.On 30 November 2022 the Ministry of Finance issued the Accounting Standards for Business
Enterprises Interpretation No. 16 (Cai Kuai [2022] No. 31 hereinafter referred to as
“Interpretation No. 16”) pursuant to which the requirements of the Accounting Treatment for
Deferred Income Tax Related to Assets and Liabilities Arising from a Single Transaction to
133ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Which the Initial Recognition Exemption Does Not Apply have come into effect on 1 January
2023.
Interpretation No. 16 stipulates that where the exemption from the initial recognition of
deferred income tax liabilities and deferred income tax assets does not apply to a single
transaction (including lease transactions in which the lessee initially recognises a lease liability
at the commencement date of the lease term and individual transactions such as those in
which an estimated liability is recognised and included in the cost of the underlying asset due
to the existence of an obligation to dispose of fixed assets) that is not a business combination
and
that affects neither the accounting profit nor taxable income (or deductible losses) at the time
of its occurrence and that results in the creation of an equivalent amount of taxable temporary
differences and deductible temporary differences as a result of the initial recognition of the
assets and liabilities an enterprise shall recognise a deferred income tax liability and deferred
income tax asset respectively at the time of the occurrence of the transaction in accordance
with the relevant provisions of Accounting Standards for Business Enterprises No. 18 – Income
Taxes and other relevant regulations.For taxable temporary differences and deductible temporary differences arising from a single
transaction to which the requirement applies that occurs between the beginning of the earliest
period for which the requirement applies in the financial statements of the first application of
the requirement and the date of application and for lease liabilities and right-of-use assets
recognized as a result of a single transaction to which the requirement applies and for
estimated liabilities associated with disposal obligations and corresponding underlying assets
recognised at the beginning of the earliest period for which the requirement applies the
enterprise shall make adjustments in accordance with the requirement.The Company has implemented this stipulation since 1 January 2023 the major impacts of the
implementation of this stipulation are as follows:
Item 2022/1/1
Consolidation Company
Deferred income tax assets 168376.70 154408.82
Surplus reserves 15440.88 15440.88
Retained earnings 152935.82 138967.94
Item Consolidation Company
2023.12.31/20232022.12.31/20222023.12.31/20232022.12.31/2022
Deferred income tax assets 716511.81 512123.33 552669.86 273667.46
Surplus reserves 55266.98 27366.74 55266.98 27366.74
Retained earnings 660939.30 475283.62 497402.88 246300.72
Minority shareholder equity 305.53 9472.97
Income tax expenses -204388.48 -343746.63 -279002.40 -119258.64
Minority interest -9167.44 9472.97
134ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
IV TAXES
1. Main taxes and tax rates
Tax rate
TaxCategory Taxable Basis
（%）
Taxable basis is calculated based on the sales of goods
and taxable services as determined by tax laws. Output
Value added tax (“VAT”) tax is calculated based on this taxable basis. After 6、7、9、13
deducting the input tax allowed for the current period
the difference is the payable value-added tax.ConsumptionTax Payment is made according to taxable sales revenue. 1、3、5
Urban Maintenance and Payment is based on the actual payment of value-added
5、7
ConstructionTax tax and consumption tax.Corporate Income Tax
Payment is determined by taxable income. 15-41
(CIT)
Payment is based on the actual payment of value-added
Education Surcharge 3
tax and consumption tax.Payment is based on the actual payment of value-added
Local Education Surcharge 2
tax and consumption tax.
2. Tax benefits
1.In accordance with relevant regulations governing the identification of national
high-tech enterprises and associated tax incentives the company and its
subsidiaries listed below have been recognized as high-tech enterprises. They are
entitled to enjoy a preferential enterprise income tax rate of 15% during the
specified periods: the company (from 2021 to 2023) Hebei Chanagan Automobile
Co. Ltd. (from 2023 to 2025) and Shenlan Automobile Technology Co. Ltd. (from
2023 to 2025).
2.As per the joint announcement by the Ministry of Finance the State
Administration ofTaxation and the National Development and ReformCommission
outlined in Announcement No. 23 of 2020 a corporate income tax rate of 15% is
applicable to encouraged industries in the western regions from January 1 2021 to
December 31 2030. Subsidiaries of the company namely Chongqing Changan
Automobile International Sales Service Co. Ltd. Chongqing Changan Special
Purpose Vehicle Co. Ltd. Chongqing Changan Automobile Customer Service Co.Ltd. Chongqing Changan Automobile Software Technology Co. Ltd. Chongqing
Changan Technology Co. Ltd. Chongqing Lingyao Automobile Co. Ltd. and
Chongqing Chehumei Technology Co. Ltd. fulfill the criteria and are subject to a
corporate income tax rate of 15%.
3.Pursuant to Announcement No. 12 of 2023 issued by the Ministry of Finance and
the State Administration of Taxation which aims to further support the
development of small and micro-enterprises and individual businesses through tax
policies small and micro-profit enterprises are eligible for a 25% reduction in
135ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
taxable income resulting in a corporate income tax rate of 20%. The subsidiaries of
the company including Chongqing Xingzhi Technology Co. Ltd. Guangzhou
Changan New Energy Automobile Sales Service Co. Ltd. Nanjing Changan New
Energy Automobile Sales Service Co. Ltd. Xiamen Changan New Energy
Automobile Sales Service Co. Ltd. Shenlan Automobile Nanjing Research Institute
Co. Ltd. and Shenlan Automobile Marketing Service (Shenzhen) Co. Ltd. have
been identified as small and micro-profit enterprises and are entitled to this tax
preferential policy.
4.As outlined in Announcement No. 43 of 2023 issued by the Ministry of Finance and
the State Administration of Taxation regarding the value-added tax incremental
deduction policy for advanced manufacturing enterprises eligible enterprises are
permitted to deduct 5% of the current deductible input tax amount to offset the
payable value-added tax from January 1 2023 to December 31 2027. The company
and Hebei Changan Automobile Co. Ltd. fulfill the specified conditions in 2023 and
qualify for this incremental deduction policy.
136ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
V NOTESTOTHECONSOLIDATED FINANCIAL STATEMENTS
1. Cash
20232022
Cash 35257.05 32155.77
Cash at bank 29493854273.50 17642961747.50
Cash deposited by theGroup
34916021247.0234812952043.78
in the finance company
Other cash 461131970.31 1074237880.29
Total 64871042747.88 53530183827.34
Note： the cash deposited by the Group in the finance company (related party) refer to note
XII7.
2. Financial assets held for trading
20232022
Equity instrument investment 160744733.27 251165128.80
Others 6774614.02 29150442.29
Total 167519347.29 280315571.09
137ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
3. Notes receivable
(1) Classification of notes receivable
20232022
Commercial acceptance bill 9069703846.26 10010938909.34
Bank acceptance bill 28588687367.75 25838721743.62
Total 37658391214.01 35849660652.96
(2) Pledged notes receivable
2023
Commercial acceptance bill 398491314.59
Bank acceptance bill 6910927744.28
Total 7309419058.87
(3) Endorsed or discounted but unexpired notes receivable as at the end of reporting period
are as follow:
2023
Derecognition Un-derecognition
Commercial acceptance bill 120000.00 -
Bank acceptance bill 4376220432.46 -
Total 4376340432.46 -
(4) As at 31 December 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
comments)
4. Accounts receivable
(1) Aging analysis of the accounts receivable on 31 December 2023 is as follows:
20232022
Within 1 year 2455130606.98 2905353787.00
138ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
1 to 2 years 9231834.37 176712124.08
2 to 3 years 436370.13 25732015.24
Over 3 years 196256136.33 201045330.53
Total 2661054947.81 3308843256.85
Less: Provision 249258528.74 (240428841.56)
2411796419.073068414415.29
(2) The movements in provision for impairment of accounts receivable are as
follows:
Beginning balance Accrual Reversal Write-off Others Ending balance
2023.00240428841.5670843141.9222674151.0239339303.72249258528.74
2022.00215274377.6235457297.584945346.855357486.79240428841.56
(3) Analysis of accounts receivable by category as at 31 December 2023 is as follows:
2023
Balance Accrual
Amount (%) Amount (%)
Individually analyzed for provision 1155752310.55 43.43 139066311.49 12.03
Provision based on the combination
of credit risk characteristics 1505302637.26 56.57 110192217.25 7.32
Total 2661054947.81 100.00 249258528.74
2022
Balance Accrual
Amount (%) Amount (%)
Individually analyzed for provision 2059626543.23 62.25 152800930.19 7.42
Provision based on the combination
of credit risk characteristics 1249216713.62 37.75 87627911.37 7.01
Total 3308843256.85 100.00 240428841.56
139ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
4. Accounts receivable (continued)
(4) The Group’s accounts receivable was analyzed for provision by expected credit
loss model
20232022
Estimated face Expected Expected credit Face balance Provision Provision for bad
value for default credit loss loss for the entire ratio (%) debt
rate (%) duration
Within 1 year 1362056874.81 0.40 5437718.64 1031532359.36 0.41 4211660.35
1 to 2 years 7237418.29 5.15 372562.67 30724065.06 7.24 2225905.84
2 to 3 years 25707148.00 16.02 4118732.53
Over 3 years 136008344.16 76.75 104381935.94 161253141.20 47.80 77071612.65
Total 1505302637.26 110192217.25 1249216713.62 87627911.37
(5) As at 31 December 2023 accounts receivable from Top 5 clients amounted to
RMB1244068823.70 accounted for46.75%.
(6) There were no accounts receivable derecognized due to transfer of financial assets
during 2023 (2022: Nil).
5. Prepayments
(1) Aging analysis of the prepayments is as follows:
20232022
Aging Amount Percentage Amount Percentage
(%)(%)
Within 1 year 281522043.69 97.86 523061724.51 69.78
1 to 2 years 1248976.74 0.43 217460711.49 29.01
2 to 3 years 128513.87 0.04 8858465.69 1.18
Over 3 years 4811476.32 1.67 191360.31 0.03
Total 287711010.62 100.00 749572262.00 100.00
(2) As at 31 December 2023 prepayments to Top 5 suppliers amounted to RMB
191960998.58 which accounted for 66.72% of the total prepayments.
140ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Other receivables
(1) Aging analysis of other receivables as at 31 December 2022 is as follows:
20232022
Within 1 year 832441463.15 1192972701.51
1 to 2 years 7857497.78 57855077.50
2 to 3 years 50952225.85 1364188.70
Over 3 years 10686669.55 18062282.93
Total 901937856.33 1270254250.64
Less: Provision 7669424.51 9096299.50
894268431.821261157951.14
(2) Other receivables are classified by nature as follows:
20232022
New energy subsidy 586119720.60 667729527.63
Investment 95100000.00 399486432.52
Reserve 74416322.72 63922920.44
Margin 15176743.46 16618938.83
Other 131125069.55 122496431.22
Total 901937856.33 1270254250.64
(3) For other receivables the changes in the provision for bad debts based on 12-month
expected credit losses and the entire duration of expected credit losses are as follows:
Beginning Provision Reversal Write-off Ending balance
balance
20239096299.50202326.321629201.317669424.51
20227466239.961886641.46156581.929096299.50
141ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Other receivables (continued)
(4) at 31 December 2023 top five debtors of other receivables are as follows:
As at 31 December 2023 prepayments to Top 5 suppliers amounted to RMB731970247.60
which accounted for81.16% of the total prepayments.
(5) For the year ended 2023 there were no accounts receivable derecognized due to transfer
of financial assets. (2022: Nil).
142ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
7. Inventories
(1) Classification of inventories
20232022
Balance Provision Net value Balance Provision Net value
Rawmaterials 748776600.96 378040520.19 370736080.77 1230104093.50 439269923.99 790834169.51
Material in
transit 81586613.21 - 81586613.21 130255961.90 - 130255961.90
Work in
progress 1291990811.53 63870083.00 1228120728.53 1719902124.07 53609953.08 1666292170.99
Finish goods 11890690577.52 202418376.89 11688272200.63 3264190903.27 87522918.36 3176667984.91
Consigned
processing
material 27617777.37 - 27617777.37 26582772.70 - 26582772.70
Consumables 69514296.42 - 69514296.42 32674452.89 - 32674452.89
Total 14110176677.01 644328980.08 13465847696.93 6403710308.33 580402795.43 5823307512.90
(2) Provision for inventories
2023
Beginning balance Provision Reduction Ending balance
Raw
439269923.99117361725.77178591129.57378040520.19
materials
Work in
53609953.0829043469.6418783339.7263870083.00
progress
Finish
87522918.36284024928.17169129469.64202418376.89
goods
Total 580402795.43 430430123.58 366503938.93 644328980.08
(3) Note for inventory provision
The Group assesses whether the cost of inventory is higher than the net realizable value and
makes provision of the difference. Net realizable value is the estimated by selling price in the
ordinary course of business deduct estimated costs in further production to sell and estimated
necessary distribution expense and tax expense. The reversal of inventory provisions is due to
price rebound of previous impaired inventories by net realizable value test while written off
inventory provisions are due to selling off of previous impaired inventories in current year.
143ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
8. Contract assets
2023
Book balance Impairment Book value
Contract assets 2104221673.68 661344707.38 1442876966.30
2022
Book balance Impairment Book value
Contract assets 747871586.89 289482399.79 458389187.10
The movement of impairment for contract assets is as follows:：
Balance at the beginning of the Provision Reverse Merger increase in this end of year balance
year period
2023289482399.79251154505.6014748375.00135456176.99661344707.38
2022169661981.98129619022.819798605.00289482399.79
9. Other current assets
20232022
InputVAT to be deducted 1393763691.38 1140996871.24
Prepaid taxes and fees 336795620.72 3078565.10
Time deposits and others 8004894049.22 3723435.08
Total 9735453361.32 1147798871.42
144ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
10. Long-term equity investments
Beginning balance Addition Investment Other comprehensive Other equity Cash dividends d Others Ending balance Ending
Income/(loss) under income variation eclared balance of
equity method provision
Joint Venture
Changan Ford Automobile Co. Ltd. 712459351.85 - -712459351.85 - - -
Changan Mazda Automobile Co. Ltd. 1433304456.32 - -555064964.19 - - 878239492.13 -
Changan Mazda Engine Co. Ltd. 824042049.05 - 10463657.35 - - -29500000.00 805005706.40 -
Nanchang Jiangling Holding Co. Ltd. 1810629644.86 - 297030927.25 -1454051.91 - - 2106206520.20 -
Subtotal 4780435502.08 - -960029731.44 -1454051.91 - -29500000.00 3789451718.73 -
Associates
Chongqing Changan Kuayue Automobile Co. Ltd. 209768936.34 - 18996315.30 - - - 228765251.64 -
Chongqing Changan Kuayue Automobile Sales Co. Ltd. (note1) - - - - - - - -
Beijing Fang’an cresent taxi Co. Ltd. (note1) - - - - - - - -
Changan Automobile Financing Co.Ltd 2778898410.33 - 350378027.17 - - -87883463.64 3041392973.86 -
Nanjing Chelai Travel Technology Co. Ltd. 624773.31 - -39948.66 - - - 584824.65 -
Hunan Guoxin Semiconductor Technology Co. Ltd. 25452425.26 - 3049806.83 - - - 28502232.09 -
Nanjing Leading Equity Investment Management Co. Ltd. (Limited
Partnership) 2570421464.70 - 75371861.99 - - - - 2645793326.69 -
Nanjing Leading Equity Investment Partnership 1112210.69 - -4810.57 - - - - 1107400.12 -
DEEPAL Automotive Technology Co. Ltd. 940490937.99 -60118846.57 - - -880372091.42- -
Changan Power Battery Co. Ltd 392000000.00 -49934527.28 342065472.72
Time FAW Power Battery Co. Ltd 43994598.72 -20000000.00 252012401.15 276006999.87
Chongqing Wutong Chelian Technology Co. Ltd 4514124.67 75267178.90 79781303.57
Chongqing Changxian Intelligent Technology Co. Ltd 102000000.00 3033367.07 105033367.07
Changan Ford New Energy Vehicle Co. Ltd 100000000.00 -32286335.07 67713664.93
Chongqing Anda Semiconductor Co. Ltd 45000000.00 9157.18 45009157.18
Western Car Network (Chongqing) Co. Ltd 2500000.00 205079.57 2478830.95 5183910.52
Zhongqi Chuangzhi Technology Co. Ltd. 168492790.78 300000000.00 -19977570.24 - - - - 448515220.54 -
Chongqing Changxin Zhiqi Private Equity Investment Fund
Partnership (Limited Partnership) 170440054.08 37711000.00 -3632657.70 - - - - 204518396.38 -
Anhe Chongqing Dingfeng Auto Contractual Private Equity
Investment Fund 61568706.08 123646.33 - - - - 61692352.41 -
Avatr Technology (Chongqing) Co. Ltd. 2644535940.48 1229820000.00 -1584167346.90 5521666.21 - - 2295710259.79 -
Chongqing Changan Innovation private Equity Investment Fund
Partnership (Limited Partnership) 1000844.59 69230769.00 -127139.60 - - - - 70104473.99 -
Anhe (Chongqing) Stock Right Investment Fund Management
Co.Ltd. 5150787.41 656221.13 - 163807.32 - - 5970815.86 -
Hangzhou Chelizi Intelligent Technology Co. Ltd. 3020026.80 - -1908363.60 - - - 1111663.20 -
Master Changan Automobile Limited 45248645.36 - 8946469.63 - -10817915.33 - - 43377199.66 -
Subtotal 9626226954.20 2278261769.00 -1242918870.60 -5132441.80 -107883463.64 -550613680.42 9997940266.74 -
Total 14406662456.28 2278261769.00 -2202948602.04 -1454051.91 -5132441.80 -137383463.64 -550613680.42 13787391985.47 -
145ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
11. Investment in other equity instruments
2023
Accumulative changes in Fair value Dividends Income Reason for being designated
fair value included in other as fair value through other
comprehensive income comprehensive income
China South Industry Group Finance Co. Ltd 178519200.00 335540000.00 180656814.04 Unlisted equity instruments
National Innovation Center of Intelligent and connected Vehicles 33000000.00 83000000.00 Unlisted equity instruments
Guolian Automobile Power Battery Research Institute Co.Ltd. -410000.00 39590000.00 Unlisted equity instruments
China South Industries Financial Leasing Co. Ltd. -2252000.00 28300000.00 Unlisted equity instruments
Zhong Fa Lian Investment Co. Ltd. -6198141.28 14801858.72 25385760.00 Unlisted equity instruments
CAERI(Beijing) automobile Lightweight Technology Research
Institution Co. Ltd. -41776.01 2958223.99 - Unlisted equity instruments
Total 202617282.71 489950000.00 206042574.04
2022
Accumulative changes in Fair value Dividends Income Reason for being designated
fair value included in other as fair value through other
comprehensive income comprehensive income
China South Industry Group Finance Co. Ltd 181979200.00 339000000.00 143737363.49 Unlisted equity instruments
National Innovation Center of Intelligent and connected Vehicles 2700000.00 52700000.00 73034.00 Unlisted equity instruments
Guolian Automobile Power Battery Research Institute Co.Ltd. - 40000000.00 - Unlisted equity instruments
China South Industries Financial Leasing Co. Ltd. 3698000.00 34250000.00 411666.67 Unlisted equity instruments
Zhong Fa Lian Investment Co. Ltd. - 21000000.00 15866100.00 Unlisted equity instruments
CAERI(Beijing) automobile Lightweight Technology Research
Institution Co. Ltd. - 3000000.00 - Unlisted equity instruments
Total 188377200.00 489950000.00 160088164.16
146ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
12. Investment property
Cost Model
Buildings 2023 2022
Original cost
Beginning and Ending balance 10050100.00 10050100.00
Accumulated depreciation and amortization
Beginning 3627384.96 3400673.40
Accrual 226711.56 226711.56
Ending 3854096.52 3627384.96
Impairment Provision
Beginning and Ending - -
Carrying amount
Ending 6196003.48 6422715.04
Beginning 6422715.04 6649426.60
The investment property is rented to third parties in the form of operating lease.As at 31 December 2023 there was no investment property without property certificate (As at 31
December 2022: Nil).
147ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
13. Fixed assets
(1) Details of fixed assets
2023
Buildings Machinery Vehicles Other Equipment Total
Original cost
Beginning 9828625137.70 26295137118.43 1983195890.87 9475715171.05 47582673318.05
Purchase 706533581.95 9802052.35 1517311.38 202294796.54 920147742.22
Transfer from
Construction in
progress 164306817.76 1901912764.41 26182833.90 837640602.21 2930043018.28
Business - 482696122.52 97376.64 84273275.42 567066774.58
combination
Fluctuations in 8399878.58 7007646.12 - 119299.03 15526823.73
exchange
Government 58261221.88 8275601.20 107400577.29 173937400.37
grants
Disposal 305015534.29 547606412.85 333562325.80 94407055.10 1280591328.04
Fluctuations in
exchange - 431263.94 - - 431263.94
Ending 10402849881.70 28090256805.16 1669155485.79 10398235511.86 50560497684.51
Accumulated depreciation
Beginning 3123481499.40 16387379193.35 712742045.45 5343343137.24 25566945875.44
Accrual 344055307.70 1923757726.39 187760095.93 536345748.31 2991918878.33
Business
- 88123493.69 11806.91 30208499.83 118343800.43combination
Fluctuations in 781002.33 2262440.79 - 119299.03 3162742.15exchange
Disposal 216272376.70 497096573.15 129579029.84 82279152.31 925227132.00
Fluctuations in 389601.60 389601.60
exchange - - -
Ending 3252045432.73 17904036679.47 770934918.45 5827737532.10 27754754562.75
Impairment provision
Beginning 97718327.95 2189788051.83 57769334.61 323687036.78 2668962751.17
Accrual 1194531.79 175982243.03 584361.62 75443557.21 253204693.65
Disposal 35744034.56 46577150.36 24996448.83 3191597.45 110509231.20
Ending 63168825.18 2319193144.50 33357247.40 395938996.54 2811658213.62
Carrying amount
Ending 7087635623.79 7867026981.19 864863319.94 4174558983.22 19994084908.14
Beginning 6607425310.35 7717969873.25 1212684510.81 3808684997.03 19346764691.44
148ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
13. Fixed assets (continued)
(1) Details of fixed assets (continued)
2022
Buildings Machinery Vehicles Other Equipment Total
Original cost
Beginning 9881301151.22 26013931324.85 1421170657.53 9442094973.15 46758498106.75
Purchase 1265124.39 3890620.93 1608965.83 10537259.44 17301970.59
Transfer from
Construction in
progress 15846963.74 576973067.51 670805017.81 373187890.97 1636812940.03
Government
grants 16984544.50 146643567.32 - 24611126.55 188239238.37
Disposal 52803557.15 153014327.54 109955267.54 316751699.72 632524851.95
Other deduction - - 433482.76 8742126.24 9175609.00
Ending 9828625137.70 26295137118.43 1983195890.87 9475715171.05 47582673318.05
Accumulated depreciation
Beginning 2830770398.43 14770986696.00 537352883.68 4988689213.76 23127799191.87
Accrual 319496770.54 1708030839.79 228535233.82 580979774.97 2837042619.12
Disposal 26785669.57 91638342.44 52941050.82 225100138.35 396465201.18
Other deduction - - 205021.23 1225713.14 1430734.37
Ending 3123481499.40 16387379193.35 712742045.45 5343343137.24 25566945875.44
Impairment provision
Beginning 99421052.16 1772417722.74 99933602.55 332966687.27 2304739064.72
Accrual 858451.71 465342187.03 763786.28 6436099.39 473400524.41
Disposal 2561175.92 47971857.94 42928054.22 15715749.88 109176837.96
Ending 97718327.95 2189788051.83 57769334.61 323687036.78 2668962751.17
Carrying amount
Ending 6607425310.35 7717969873.25 1212684510.81 3808684997.03 19346764691.44
Beginning 6951109700.63 9470526906.11 783884171.30 4120439072.12 21325959850.16
Buildings Machinery Vehicles Other Equipment Total
Original cost
Beginning 9881301151.22 26013931324.85 1421170657.53 9442094973.15 46758498106.75
Purchase 1265124.39 3890620.93 1608965.83 10537259.44 17301970.59
Transfer from
Construction in
progress 15846963.74 576973067.51 670805017.81 373187890.97 1636812940.03
Government
grants 16984544.50 146643567.32 - 24611126.55 188239238.37
Disposal 52803557.15 153014327.54 109955267.54 316751699.72 632524851.95
Other deduction - - 433482.76 8742126.24 9175609.00
Ending 9828625137.70 26295137118.43 1983195890.87 9475715171.05 47582673318.05
Accumulated depreciation
Beginning 2830770398.43 14770986696.00 537352883.68 4988689213.76 23127799191.87
Accrual 319496770.54 1708030839.79 228535233.82 580979774.97 2837042619.12
Disposal 26785669.57 91638342.44 52941050.82 225100138.35 396465201.18
Other deduction - - 205021.23 1225713.14 1430734.37
149ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Ending 3123481499.40 16387379193.35 712742045.45 5343343137.24 25566945875.44
Impairment provision
Beginning 99421052.16 1772417722.74 99933602.55 332966687.27 2304739064.72
Accrual 858451.71 465342187.03 763786.28 6436099.39 473400524.41
Disposal 2561175.92 47971857.94 42928054.22 15715749.88 109176837.96
Ending 97718327.95 2189788051.83 57769334.61 323687036.78 2668962751.17
Carrying amount
Ending 6607425310.35 7717969873.25 1212684510.81 3808684997.03 19346764691.44
Beginning 6951109700.63 9470526906.11 783884171.30 4120439072.12 21325959850.16
(2) Fixed assets that are temporarily unused
On December 31 2023 fixed assets with a book value of approximately RMB 187074047.38
(December 31 2022: book value of approximately RMB 191192253.37 ) were temporarily idle
due to product planning and other reasons.
150ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
(3) The fixed assets which are rented out under operating leases is as follow:
2023
Buildings Machinery Vehicles Total
Original cost
Beginning 2488884425.25 4895655978.57 1690556607.27 9075097011.09
Addition 1118879622.96 142830539.29 83293181.80 1345003344.05
Deduction 1138575772.16 15597434.48 260746586.25 1414919792.89
Ending 2469188276.05 5022889083.38 1513103202.82 9005180562.25
Accumulated depreciation
Beginning 1173475939.45 3173259755.76 548224825.54 4894960520.75
Addition 218745523.15 269118109.09 181048474.00 668912106.24
Deduction 597521948.03 5568968.41 121431708.83 724522625.27
Ending 794699514.57 3436808896.44 607841590.71 4839350001.72
Impairment provision
Beginning 14371205.80 402165577.72 - 416536783.52
Addition - 62855567.23 52616.94 62908184.17
Deduction 400000.00 2443894.07 - 2843894.07
13971205.80462577250.8852616.94476601073.62
Carrying amount
Ending 1660517555.68 1123502936.06 905208995.17 3689229486.91
Beginning 1301037280.00 1320230645.09 1142331781.73 3763599706.82
151ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
13. Fixed assets (continued)
(3) The fixed assets which are rented out under operating leases is as follow:
2022
Buildings Machinery Vehicles Total
Original cost
Beginning 407385917.78 193922403.14 1142516412.19 1743824733.11
Addition 2106368074.56 4818277154.51 655644459.59 7580289688.66
Deduction 24869567.09 116543579.08 107604264.51 249017410.68
Ending 2488884425.25 4895655978.57 1690556607.27 9075097011.09
Accumulated depreciation
Beginning 98821531.20 68789989.43 438775091.17 606386611.80
Addition 1078562000.71 3157041669.93 193774365.75 4429378036.39
Deduction 3907592.46 52571903.60 84324631.38 140804127.44
Ending 1173475939.45 3173259755.76 548224825.54 4894960520.75
Impairment provision
Beginning 13971205.80 63528839.55 - 77500045.35
Addition 400000.00 338636738.17 - 339036738.17
14371205.80402165577.72-416536783.52
Carrying amount
Ending 1301037280.00 1320230645.09 1142331781.73 3763599706.82
Beginning 294593180.78 61603574.16 703741321.02 1059938075.96
（4） As at December 31 2023 the Company has no fixed assets that has not been issued with
property certificates
152ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
14. Construction in progress
(1) Details of construction in progress
Item 2023 2022
Balance Provision Carrying amount Balance Provision Carrying amount
Constraction project 750986351.54 - 750986351.54 142449903.88 - 142449903.88
Production line
construction and
technical innovation
project 626139410.60 - 626139410.60 709221196.20 - 709221196.20
Engine plant 204550269.22 20921684.06 183628585.16 30761643.22 20921684.06 9839959.16
Environmental
relocation project 59586596.48 - 59586596.48 306134604.02 - 306134604.02
Others 302845555.72 8841139.67 294004416.05 245063849.66 24811294.28 220252555.38
Total 1944108183.56 29762823.73 1914345359.83 1433631196.98 45732978.34 1387898218.64
The movement of impairment for construction in progress is as follows:
Beginning balance Provision Write-off Ending balance
202345732978.345343493.6121313648.2229762823.73
202271691670.001533334.0027492025.6645732978.34
153ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
14. Construction in progress (continued)
(2) Movements of significant construction in progress in 2023
Budget Beginning balance Addition Transfer to fixed Ending balance The project Progress of Source of funds
(RMB0000) assets investments’ construction
proportion of
budget
Constraction project 831204.00 142449903.88 737732863.28 129196415.62 750986351.54 49.23% 49.23% Self-funded
Production line
construction and technical Self-rasied and683360.77 709221196.20 1505740539.45 1588822325.05 626139410.60 46.52% 46.52% additional issuance
innovation project
Engine plant 44276.00 30761643.22 198149011.67 24360385.67 204550269.22 51.07% 51.07% Self-funded
Environmental relocation Self-rasied and
182476.00306134604.02251932293.60498480301.1459586596.4875.93%75.93%
project additional issuance
Others 245063849.66 746965296.86 689183590.80 302845555.72
Total 1433631196.98 3440520004.86 2930043018.28 1944108183.56
154ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
14. Construction in progress (continued)
(2) Movements of significant construction in progress in 2022：(continued)
Budget Beginning balance Addition Other deduction Transfer to fixed assets The project Progress of Source of funds Ending balance
(RMB0000) investments’ construction
proportion of
budget
Mini-bus production
137470.00 110892336.09 191447800.99 - 227314759.26 62% 62% Self-funded 75025377.82
equipment
Car production
360738.00 283628123.26 282894772.61 120121061.17 226106906.06 35% 35% Self-raised and additional 220294928.64
equipment issuance
Self-raised and additional
Engine plant 485216.00 127069581.90 507405858.99 - 129916781.84 63% 63% 504558659.05issuance
Vehicle research
209906.00 27661450.64 36536296.38 - 46457644.52 75% 75% Self-funded 17740102.50
institution
Car production project of
394980.00 13073052.88 80152211.39 - 37361748.01 88% 88% Self-raised and additional 55863516.26
Hefei Changan issuance
Light vehicle project 65828.00 20953663.84 58492273.87 - 65904728.84 44% 44% Self-funded 13541208.87
Car-sharing project 721192899.46 19868623.27 64969026.54 666460917.58 9631578.61
Others 155705431.36 572826869.45 - 237289453.92 491242846.89
Total 1460176539.43 1749624706.95 185090087.71 1636812940.03 1387898218.64
155ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
15. Right-of-use assets
2023
Buildings Buildings
20232022
Cost
Beginning 152893426.61 92864546.90
Addition 186945842.28 141510763.34
Disposal 1500158.70 2689483.42
Other deduction 78792400.21
Ending 338339110.19 152893426.61
Accumulated depreciation
Beginning 52080040.60 26551483.92
Accrual 78278552.25 29882264.96
Disposal 1500158.70 582721.40
Other deduction 3770986.88
Ending 128858434.15 52080040.60
Carrying amount
Ending 209480676.04 100813386.01
Beginning 100813386.01 66313062.98
156ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
16. Intangible assets
2023
Land use rights Software use Trademark use Non-patent Patent Total
rights rights technology technology
Original cost
Beginning 2237966691.60 845391055.17 211864157.55 7695744860.28 85556571.30 11076523335.90
Purchase 100195305.27 34751882.26 46276.23 5936930.14 24943.40 139344264.55
Internal
research and
development - - 2018394526.72 - 2018394526.72
Business combination 2866725.32 2412758750.00 8724451355.13 11140076830.45
Fluctuations
in exchange 840010.76 840010.76
Government
grants - 1611072.75 - - - 1611072.75
Disposal 526361.41 - - 6000.00 - 532361.41
Ending 2337635635.46 882238600.76 2624669183.78 18444521672.27 85581514.70 24374646606.97
Accumulated amortization
Beginning 468031897.59 726462315.72 211791516.98 4904544443.73 7129714.27 6317959888.29
Accrual 46046280.63 33239628.48 221185346.46 1923283524.17 8556280.71 2232311060.45
Business combination 1531371.38 279188219.15 280719590.53
Fluctuations
in exchange 797371.30 797371.30
Disposal 197871.96 - 1450.00 - 199321.96
Ending 513880306.26 762030686.88 432976863.44 7107014737.05 15685994.98 8831588588.61
Impairment provision
Beginning - 23617923.17 - 288560268.76 - 312178191.93
Accrual - - 19916416.63 50676624.03 - 70593040.66
Business combination - - 114723135.98 - 114723135.98
Ending - 23617923.17 19916416.63 - 453960028.77 - 497494368.57
Carrying amount
Ending 1823755329.20 96589990.67 2171775903.71 10883546906.45 69895519.72 15045563649.79
Beginning 1769934794.01 95310816.28 72640.57 2502640147.79 78426857.03 4446385255.68
157ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
17. Goodwill
2023
Beginning Addition Deduction Ending balance
balance
Hebei ChanganAutomobile Co. Ltd. 9804394.00 - - 9804394.00
Nanjing ChanganAutomobile Co. Ltd. - - - -
DEEPALAutomotiveTechnologyCo. Ltd. - 1800926049.16 1800926049.16
Total 9804394.00 1800926049.16 1810730443.16
The movement of provision for goodwill is as follow:
2023 and 2022
Beginning balance Addition Deduction Ending balance
Nanjing ChanganAutomobile Co. Ltd. 73465335.00 - - 73465335.00
Due to the accumulated losses of Nanjing Changan Automobile Co. Ltd. provision for related
goodwill has been fully accrued and amounted to RMB73465335.00.
18. Long-term deferred expenses
Beginning balance Addition Deduction Ending balance
202326375422.171357462.163570664.2724162220.06
202215032814.1915184585.043841977.0626375422.17
19. Deferred tax assets and liabilities
Deferred income tax assets and deferred income tax liabilities that are not offset:
20232022
Deferred tax assets Deductible Deferred tax assets Deductible Deferred tax assets
temporary temporary
differences differences
Assets provision 3326010289.07 505667423.10 3278951051.51 491238489.39
Accrued expenses and
contingent liabilities 9745432595.40 1478634793.00 8585308052.56 1298584169.65
Unpaid tech development
expense and advertisement
expense 108882829.52 16332424.43 372397166.51 55859574.98
Deferred income 3143730047.41 516280314.00 2699509959.27 457007113.15
Unpaid salary and bonus and
others 5069078308.78 762158961.20 4933440721.02 741142942.18
Total 21393134070.18 3279073915.73 19869606950.87 3043832289.35
20232022
Deferred tax liabilities： Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
158ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Available-for-sale financial
assets on the changes in
fair value recorded in
capital reserve 271136632.22 40670494.83 358180218.36 53727032.75
Fair value adjustment of
business combination not
under common control 9077843422.40 1361676513.36 204733319.00 30709997.85
Long-term equity
investment 1053139619.28 157970942.89 971329619.28 145699442.89
Other 234662947.30 36576889.00 133866716.92 21733246.50
Total 10636782621.20 1596894840.08 1668109873.56 251869720.00
Deferred income tax assets and deferred income tax liabilities that are offset:
20232022
Items： Offset amount Balance of deferred Offset amount Balance of deferred
between deferred income tax assets or between deferred income tax assets or
income tax assets liabilities after income tax assets liabilities after
and liabilities offsetting and liabilities offsetting
Deferred tax assets 30819858.08 3248254057.65 14832978.84 3028999310.51
DeferredTax Liability 30819858.08 1566074982.00 14832978.84 237036741.16
Unrecognized deductible temporary differences and tax losses of unrecognized are as follows:
20232022
The deductible temporary difference 1764330466.02 1785535297.97
The deductible tax loss 10207352860.58 3908340793.95
Total 11971683326.60 5693876091.92
159ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
20. Deferred tax assets and liabilities (continued)
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.Maturity period for unrecognized deductible tax losses:
20232022
2023719486343.29
20241026714782.44644243430.69
20251484227541.07669056651.63
20262622637735.99172527777.26
20272162063388.5514762188.38
2028 and beyond 2911709412.53 1688264402.70
Total 10207352860.58 3908340793.95
20. Other non current assets
20232022
Advance payment for engineering 450000000.00
Total 450000000.00
21. The assets with ownership or right restricted
20232022
Cash and cash equivalents 945084846.77 1038748779.60
Note receivables 7309419058.87 6340255963.00
Intangible assets 42203917.80
Fixed assets 20942566.80
8254503905.647442151227.20
22. Short-term loans
Classification of short-term loans：
20232022
Credit loans 30039416.74
Mortgage loans 29000000.00
Total 30039416.74 29000000.00
As at 31 December 2023 the interest rates of the above loans were3.90%-4.50% (as at 31
160ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
December 2022: 4.60%-4.75%).As at 31 December 2023 there was no overdue short-term loan (as at 31 December 2022: Nil).
23. Notes payable
20232022
Commercial acceptance bill 2943672886.95 5001155687.84
Bank acceptance bill 34512997041.12 17071638176.99
Total 37456669928.07 22072793864.83
As at 31 December 2023 there is no overdue unpaid notes payable (as at 31 December 2022: Nil)
24. Accounts payable
20232022
Accounts payable 38289947321.45 29449664138.75
As at 31 December 2023 there were no significant accounts payable aged over one year (as at 31
December 2022: Nil).
25. Advance payment
20232022
unearned rent 686755.00
26. Contract liabilities/Advances from customers
20232022
Advance payment 6780177101.71 4808762223.46
Advance service payment 1143615751.06 846494569.20
Total 7923792852.77 5655256792.66
161ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
27. Payroll payable
2023
Beginning Addition Deduction Ending balance
balance
Short term salary benefits 2716484740.12 10526154931.41 10597058347.32 2645581324.21
Defined contribution plans 88857749.73 914289145.67 915891050.74 87255844.66
Early retirement benefits 1816000.00 24175889.85 8167721.46 17824168.39
Total 2807158489.85 11464619966.93 11521117119.52 2750661337.26
2022
Beginning Addition Deduction Other Ending
balance deduction balance
Short term salary benefits 2474414390.26 8829988102.78 8546570667.33 41347085.59 2716484740.12
Defined contribution plans 89216538.26 667430841.13 665797989.33 1991640.33 88857749.73
Early retirement benefits 2940000.00 2323630.24 3447630.24 - 1816000.00
Total 2566570928.52 9499742574.15 9215816286.90 43338725.92 2807158489.85
27. Payroll payable (continued)
Short term salary benefits：
2023
Beginning Addition Deduction Ending balance
balance
Salary bonus allowance
and subsidy 2221656081.04 8452204683.00 8502894778.05 2170965985.99
Employee benefit 50756371.68 382215686.12 412846663.88 20125393.92
Social insurance
Medical insurance 21350192.95 533438605.38 534604800.89 20183997.44
Industrial injury
insurance 11102522.24 59402870.38 59750558.36 10754834.26
Maternity insurance 1395744.99 2761057.26 2232733.92 1924068.33
Others 24783404.93 24783404.93
Housing accumulation fund 83944161.72 570666608.11 631689858.47 22920911.36
Labor fund and employee
education fund 326279665.50 500682016.23 428255548.82 398706132.91
162ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Total 2716484740.12 10526154931.41 10597058347.32 2645581324.21
2022
Beginning Addition Deduction Other Ending
balance deduction balance
Salary bonus allowance
and subsidy 2051402711.53 7146292092.31 6945040964.14 30997758.66 2221656081.04
Employee benefit 50630435.22 386349815.91 386037939.85 185939.60 50756371.68
Social insurance
Medical insurance 21021344.24 395967753.79 394480490.19 1158414.89 21350192.95
Industrial injury
insurance 11118683.26 40723587.86 40684896.28 54852.60 11102522.24
Maternity insurance 1382325.53 1172637.29 1159217.83 - 1395744.99
Housing accumulation
fund 82772742.30 491467767.44 488154268.15 2142079.87 83944161.72
Labor fund and employee
education fund 256086148.18 368014448.18 291012890.89 6808039.97 326279665.50
Total 2474414390.26 8829988102.78 8546570667.33 41347085.59 2716484740.12
27. Payroll payable (continued)
Defined contribution plans：
2023
Beginning Addition Deduction Ending balance
balance
Basic retirement
security 79031084.59 885375217.34 886518169.93 77888132.00
Unemployment
insurance 9826665.14 28913928.33 29372880.81 9367712.66
Total 88857749.73 914289145.67 915891050.74 87255844.66
2022
Beginning Addition Deduction Other Ending balance
balance Deduction
Basic retirement 79483988.05 646286750.65 644976261.42 1763392.69 79031084.59
163ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
security
Unemployment
insurance 9732550.21 21144090.48 20821727.91 228247.64 9826665.14
Total 89216538.26 667430841.13 665797989.33 1991640.33 88857749.73
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 theGroup.
28. Taxes payable
20232022
Value-added tax 366815941.84 655162944.40
Consumption tax 307949880.80 378822293.63
Corporate income tax 1136075075.53 550250134.24
City maintenance and construction tax and 51726243.42 106797577.85
Oedtuhcearstion surcharge 66156765.79 58913132.20
Total 1928723907.38 1749946082.32
164ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
29. Other payables
20232022
Purchase and construction of fixed assets intangible
1550681604.041190478260.12
assets and engineering deposits
Customer and supplier margin 874043416.71 839653876.07
Advanced receipt of land and plant disposal fees 150000000.00 635268035.18
Treasury stock repurchase 382277095.96 627060416.52
Advertisement fees 648229494.43 505569065.16
Storage fees and freight 488072948.00 382409902.25
Maintenance fees 295480247.86 278765596.52
Capital increase from third parties received in advance
138398550.00697956559.00
by subsidiaries
Others 1353699155.97 925604713.85
Total 5880882512.97 4562626344.69
30. Non-current liability within 1 year
20232022
Long-term loan within 1 year 4000000.00 604000000.00
Defined benefit plans that expire within 1 year 1190000.00
Long-term payables within 1 year 244429325.65
Lease liabilities within 1 year 74887042.88 37294575.69
80077042.88885723901.34
165ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
31. Other current liabilities
20232022
Accrued commercial discount payable 5277859952.56 3837216057.38
Accrued market development expense 1229871896.85 1004950610.70
Accrued transportation fee 428540512.92 728264657.72
Accrued technology royalty 712779170.48 534463454.23
Accrued labor service fee 52021714.94 107051967.02
Accrued negative points for fuel consumption 76611049.98 59308609.28
Others 1120252102.19 355789311.29
Total 8897936399.92 6627044667.62
32. Long-term Loan
20232022
Net long-term borrowings 72000000.00 36000000.00
As at 31 December 2023 the interest rates of the above loans were 1.00% (as at 31 December 2022: 1.00%-3.00%).As at 31 December 2023 there is no overdue long-term loans (as at 31 December 2022: Nil).
33. Bonds Payable
20232022
Corporate Bonds 999607547.16 999528301.88
In December 2023 theCompany publicly issued technology innovation corporate bonds (Phase I) to professional investors
with a face value of RMB1000000000.00 a coupon rate of 3% simple interest payable annually the interest payment
date is December 20 of each year from 2023 to 2027 and the final redemption date is December 20 2027.
34. Lease liabilities
20232022
Lease liabilities 209141440.95 97499973.67
Less：Lease liabilities within 1 year 74887042.88 37294575.69
134254398.0760205397.98
166ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
35. Long-term payables
20232022
Long-term payables 804264787.97 408939511.34
Special payables 148181330.60 144579238.78
Total 952446118.57 553518750.12
Long-term payables:
20232022
Accounts payable for construction projects on
behalf of others 804264787.97
Purchase of fixed assets 653368836.99
Less：Long-term payables within 1 year 244429325.65
Total 804264787.97 408939511.34
Special payables:
2023
Beginning Addition Deduction Ending
Intelligent manufacturing project 54122972.00 106346500.00 81350954.74 79118517.26
Lightweight design of automobile structure 14410557.94 7640605.31 6769952.63
Others 76045708.84 53178952.56 66931800.69 62292860.71
Total 144579238.78 159525452.56 155923360.74 148181330.60
2022
Beginning Addition Deduction Ending
Land relocation compensation of Nanjing
changan 55350709.40 - 55350709.40 -
Intelligent manufacturing project 82777201.36 6169200.00 34823429.36 54122972.00
Lightweight design of automobile structure 18903766.50 4900000.00 9393208.56 14410557.94
Others 25928275.13 71133518.47 21016084.76 76045708.84
Total 182959952.39 82202718.47 120583432.08 144579238.78
167ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
36. Long-term payroll payable
20232022
Net obligation of defined benefit plan 26880000.00 29227000.00
Early retirement 3534000.00 5786000.00
Total 30414000.00 35013000.00
In addition to basic retirement security and unemployment insurance which are managed by local
government the Group offers different kinds of overall pension and annual compensation to some
retired employees until their death. The Group provides subsidies to former military personnel who
participated in specific wars and offers large medical treatment insurance for all retired personnel. The
Group also offered early-retired salary social insurances and housing accumulation fund with different
standards until their formal retirement (Male: Age 60; Female: Age 50 or 55). These amounts of social
insurances and housing accumulation fund are based on cost base and statutory proportion.The present value of the defined benefits plans is valued by expected cumulative welfare units
determination which was ensured byAon Enterprise Solutions Shanghai Co Ltd. at 31 December 2023.The related plans recognized in the profit and loss of the defined benefit plan are as follows:
20232022
Service costs- current period 57000.00 56000.00
Net interest -940000.00 818000.00
Net post-employment benefit costs -908000.00 874000.00
Recorded in general administrative expenses -908000.00 874000.00
Movement of present value of defined benefits plan is as follows:
Defined Benefit PlanObligation
20232022
Beginning balance 29227000.00 30917000.00
Charged to income Statement of the current period
Service costs- current period 313000.00 56000.00
Interest expense net -940000.00 818000.00
Actuarial losses charged to other
comprehensive income -540000.00 -112000.00
Benefits Payment -899000.00 -2452000.00
Ending balance 26880000.00 29227000.00
168ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
37. Accrued liabilities
2023
Beginning Addition Deduction Ending
Warranty 4152001660.31 2893224624.23 1068664474.45 5976561810.09
Contingent liabilities of
contract performance 437297661.18 51551251.31 188369305.79 300479606.70
Total 4589299321.49 2944775875.54 1257033780.24 6277041416.79
2022
Beginning Addition Deduction Ending
Warranty 3295272783.50 1595486879.87 738758003.06 4152001660.31
Contingent liabilities of
contract performance 543742894.34 26346680.32 132791913.48 437297661.18
Total 3839015677.84 1621833560.19 871549916.54 4589299321.49
38. Deferred income
2023
2022.12.31 Addition Deduction Other deduction 2023.12.31
Government grants
related to assets 166416924.2 619538720.00 175548473.12 248266726.10
Government grants
related to gains 181151625.42 - 72718252.98 108433372.44
347568549.62619538720.00248266726.10718840543.52
2022
2021.12.31 Addition Deduction Other deduction 2022.12.31
Government grants
related to assets 224903605.46 129752557.11 188239238.37 - 166416924.2
Government grants
related to gains 699846125.66 - 299235506.09 219458994.15 181151625.42
924749731.12129752557.11487474744.46219458994.15347568549.62
As at 31 December 2023 details of liabilities related to government grants are as follows:
2022.12.31 Addition Deduction 2023.12.31
169ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Related to assets: 166416924.20 619538720.00 175548473.12 610407171.08
Production and
construction 166416924.20 619538720.00 175548473.12 610407171.08
subsidies
Related to gains: 181151625.42 72718252.98 108433372.44
R&D technology
121750757.2744099593.2977651163.98
subsidies
Other government
59400868.1528618659.8359400868.15
subsidies
Total 347568549.62 619538720.00 248266726.10 718840543.52
39. Other non-current liabilities
20232022
Advance service payment 1497773818.69 882226966.14
170ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
40. Share capital
2023
movement
Beginning Issuance of shares Stock dividend Transfer of reserve to Others Sub-total Ending
common shares
I. Restricted shares
1 Shares held by state-owned legal
persons 515311738.00 - - 515311738.00
2 Other domestic
shareholdings 159248366.00 - - 159248366.00
Including：
shares held by
domestic legal persons - - - -
shares held by
domestic natural persons 159248366.00 - - 159248366.00
3 Foreign shareholdings 1215370.00 - - 1215370.00
Total of restricted shares 675775474.00 - - 675775474.00
II. Unrestricted shares
1 RMB ordinary shares 7604409171.00 - - 4510389.00 4510389.00 7599898782.00
2 Foreign-funded shares listed
domestically 1641614777.00 - - 1641614777.00
Total of unrestricted shares 9246023948.00 - - 4510389.00 4510389.00 9241513559.00
III. Total shares 9921799422.00 - - 9917289033.00
171ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
2022
movement
Beginning Issuance of shares Stock dividend Transfer of reserve to Others Sub-total Ending
common shares
I. Restricted shares
1 Shares held by state-owned legal
persons 396393645.00 - - 118918093.00 - 118918093.00 515311738.00
2 Other domestic
shareholdings 122490320.00 - - 36747096.00 10950.00 36758046.00 159248366.00
Including：
shares held by
domestic legal persons - - - - - - -
shares held by
domestic natural persons 122490320.00 - - 36747096.00 10950.00 36758046.00 159248366.00
3 Foreign shareholdings 934900.00 - - 280470.00 - 280470.00 1215370.00
Total of restricted shares 519818865.00 - - 155945659.00 10950.00 155956609.00 675775474.00
II. Unrestricted shares
1 RMB ordinary shares 5849553939.00 - - 1754866182.00 (10950.00 ) 1754855232.00 7604409171.00
2 Foreign-funded shares listed
domestically 1262780598.00 - - 378834179.00 - 378834179.00 1641614777.00
Total of unrestricted shares 7112334537.00 - - 2133700361.00 (10950.00 ) 2133689411.00 9246023948.00
III. Total shares 7632153402.00 - - 2289646020.00 - 2289646020.00 9921799422.00
172ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
41. Capital reserves
2023
Beginning Addition Deduction Ending
Share premium 6485177332.59 333258382.40 14067193.00 6804368521.99
Share-based payments 648749767.92 362576400.00 333258382.40 678067785.52
Capital reserve
transferred arising
from the old
standards 44496899.00 - - 44496899.00
Restricted capital
reserve of equity
investments 17015985.20 - - 17015985.20
Others (Note 1) 1337366701.06 33537855.64 663566110.70 707338445.99
Total 8532806685.77 729372638.03 1010891686.10 8251287637.70
2022
Beginning Addition Deduction Ending
Share premium 8774823352.59 - 2289646020.00 6485177332.59
Share-based payments 268539867.92 380209900.00 - 648749767.92
Capital reserve
transferred arising
from the old
standards 44496899.00 - - 44496899.00
Restricted capital
reserve of equity
investments 17015985.20 - - 17015985.20
Others (Note 1) 671317255.67 666049445.39 - 1337366701.06
Total 9776193360.38 1046259345.39 2289646020.00 8532806685.77
42. Treasury stock
2023
Beginning Addition Deduction Ending
Treasury stock 627060416.52 - 244783320.56 382277095.96
2022
Beginning Addition Deduction Ending
Treasury stock 655812327.60 - 28751911.08 627060416.52
173ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
43. Other comprehensive income
Accumulated other comprehensive income in consolidated balance sheet attributable to parent
company is as follows:
2023
2022.12.31 Movement 2023.12.31
Re-measurement of changes in defined
benefit plans -185000.00 540000.00 355000.00
Other comprehensive income that cannot be
transferred to profit or loss under the
equity method -2765221.82 -1454051.91 -4219273.73
Other comprehensive income on convertible
gains and losses under the equity method 75815.98 -75815.98
Changes in the fair value of other equity
instrument investments 160120620.00 12104070.30 172224690.30
Translation difference of foreign currency
financial statements -58252966.78 8287150.23 -50041632.53
Total 98841615.42 19477168.62 118318784.04
2022
2021.12.31 Movement 2022.12.31
Re-measurement of changes in defined
benefit plans (297000.00) 112000.00 (185000.00 )
Other comprehensive income that cannot be
transferred to profit or loss under the
equity method (3368053.89) 602832.07 (2765221.82 )
Other comprehensive income on convertible
gains and losses under the equity method - (75815.98) (75815.98 )
Changes in the fair value of other equity
instrument investments 169861280.00 (9740660.00) 160120620.00
Translation difference of foreign currency
financial statements (96753756.58) 38500789.80 (58252966.78 )
Total 69442469.53 29399145.89 98841615.42
174ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
41. Other comprehensive income (continued)
Current occurrence amount of other comprehensive income in consolidated income statement attributable to parent company:
2023
Amount before tax Deduct: amounts Deduct: amounts Deduct: Income Amount attributable to Amount attributable
transferred to income transferred to tax owners tominority interests
statement which were retained earnings
recognized in other which were
comprehensive income recognized in other
in prior period comprehensive
income in prior
period
Other comprehensive income not to be reclassified to profit or loss in subsequent period
Change in net liability or assets from defined benefit plan 540000.00 - - - 540000.00 -
Other comprehensive income that cannot be transferred to profit or loss under the equity
method -1454051.91 - - - -1454051.91 -
Fair value change of Investment in other
equity instruments 14240082.71 - 2136012.41 12104070.30 -
Subtotal 13326030.80 - 2136012.41 11190018.39 -
Other comprehensive income will be reclassified to profit or loss in subsequent period -
Other comprehensive income which can convert to gain and loss under the equity method
Foreign currency translation difference 8287150.23 - 8287150.23
Subtotal 8287150.23 - 8287150.23
Total 21613181.03 ) 2136012.41 19477168.62
175ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
2022
Amount before tax Deduct: amounts Deduct: amounts Deduct: Income Amount attributable to Amount attributable
transferred to income transferred to tax owners tominority interests
statement which were retained earnings
recognized in other which were
comprehensive income recognized in other
in prior period comprehensive
income in prior
period
Other comprehensive income not to be reclassified to profit or loss in subsequent period
Change in net liability or assets from defined benefit plan (112000.00 ) - - - (112000.00 ) -
Other comprehensive income that cannot be transferred to profit or loss under the equity
method (602832.07 ) - - - (602832.07 ) -
Fair value change of Investment in other
equity instruments 5500000.00 - (5065660.00 ) 825000.00 9740660.00 -
Subtotal 4785167.93 - (5065660.00 ) 825000.00 9025827.93 -
Other comprehensive income will be reclassified to profit or loss in subsequent period -
Other comprehensive income which can convert to gain and loss under the equity method 75815.98 - - - 75815.98 -
Foreign currency translation difference (37775975.99 ) 722897.12 - - (38500789.80 ) 1916.69
Subtotal (37700160.01 ) 722897.12 - - (38424973.82 ) 1916.69
Total (32914992.08 ) 722897.12 (5065660.00 ) 825000.00 (29399145.89 ) 1916.69
176ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
44. Special reserves
2023
Beginning Addition Deduction Ending
Safety fund 24090898.05 126209917.06 95977484.77 54323330.34
2022
Beginning Addition Deduction Ending
Safety fund 27988260.61 104696987.95 108594350.51 24090898.05
45. Surplus reserves
2023
Beginning Addition Deduction Ending
Statutory surplus 3528137635.53 748080862.37 - 4276245864.64
2022
Beginning Addition Deduction Ending
Statutory surplus 2982292413.67 545845221.86 - 3528137635.53
177ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
46. Retained earnings
20232022
Retained earnings at beginning of the year 41379965149.07 35900674525.13
Adjusting the total undistributed profits at the beginning
of the year (increase+ decrease -) 152935.82
Add: Profits attributable to parent company for the
current year 11327463013.15 7798785367.38
Add: Other comprehensive income transferred to
retained earnings 5065660.00
Less: Appropriation to statutory surplus reserves 748080862.37 545857147.72
Less: Ordinary share dividend of cash 2341414868.12 1778856191.54
Retained earnings at the end of year 49617932431.73 41379965149.07
47. Operating revenue and cost
20232022
Revenue Cost Revenue Cost
Main business 148183136224.90 121653251310.51 117565143198.95 94573428488.62
Other business 3114570422.07 1869405043.21 3687720886.45 1836182385.14
Total 151297706646.97 123522656353.72 121252864085.40 96409610873.76
Operating revenue listed as follows:
20232022
Revenue generated from customer contracts 150837473020.25 120838238851.66
Provide labor and other services 460233626.72 414625233.74
Total 151297706646.97 121252864085.40
The breakdown of operating revenue generated from contracts with customers is as follows:
178ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
45. Operating revenue and cost (continued)
Revenue generated from customer contracts：
20232022
Revenue recognition time
Recognize revenue at a certain point in
time 149806264812.48 120203760630.11
Recognize revenue within a certain period
of time 1031208207.77 634478221.55
Total 150837473020.25 120838238851.66
The income recognized in the current year and included in the book value of contract liabilities
at the beginning of the year is as follows:
20232022
Sales of goods 145303581062.21 114066406439.25
Provision of services and others 5533891958.04 6771832412.41
Total 150837473020.25 120838238851.66
The estimated time when the total transaction price that has not been fulfilled (or partially
fulfilled) performance obligations allocated to the end of the year is recognized as revenue is as
follows:
20232022
Domestic 130301011943.81 107426791857.44
overseas 20536461076.44 13411446994.22
Total 150837473020.25 120838238851.66
48. Tax and surcharges
20232022
Consumption tax 3689083562.44 3022759216.21
City maintenance and construction tax 416207782.33 454863299.03
Educational surcharge 180693475.51 229702527.01
Others 472441461.42 394522780.25
Total 4758426281.70 4101847822.50
179ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
49. Operating expenses
20232022
Sales service fee 3435342406.81 2132352506.82
Promotion advertising fee 2685049398.19 1760645464.70
Payroll and welfare 754840131.95 718415703.07
Transportation and storage fees 426167063.06 296302707.75
Travelling expenses 128037954.91 71192697.52
Package expenses 34279133.27 42180208.06
Consulting fee 25208016.75 31870498.85
Training fee 37558797.59 27499082.32
Others 118722690.35 57811293.86
Total 7645205592.88 5138270162.95
50. General and administrative expenses
20232022
Payroll and welfare 2510857635.06 2361704245.03
Share-based payments 362576400.00 380209900.00
Administrative expenses 533464030.04 342662496.31
Depreciation and amortization 506232270.50 209021291.13
Traffic expenses 50337862.88 54685498.40
Travelling expenses 31365995.19 7465840.51
Others 102703336.00 176708927.38
Total 4097537529.67 3532458198.76
51. Research and development expenses
20232022
Payroll and welfare 1751875403.13 1744089751.78
Depreciation and amortization 2235391711.61 1221653901.00
Subcontract fee 844870793.73 580052391.93
Material fee 617867191.88 192475951.44
Test fee 186414711.98 109549382.65
Others 343424840.90 467623485.96
Total 5979844653.23 4315444864.76
180ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
52. Financial income
20232022
Interest income 1172272116.20 1014346758.69
Less: Foreign exchange gain or loss 169367527.65 -79104476.10
Interest expense 65658308.92 48683490.36
Others 39902539.83 27462001.35
Total -897343739.80 -1017305743.08
53. Other income
2023 2022 Amount recognized in
2021 as non-recurring
profit and loss
Government subsidies related to
daily activities 1644319505.04 529819888.31 1644319505.04
Government subsidies related to daily activities are as follows:
20232022
Production and construction subsidies 935787265.00 385172523.26
Other government subsidies 708532240.04 144647365.05
1644319505.04529819888.31
54. Investment income
20232022
Long-term equity investment income/(loss)
accounted for by the equitymethod -2201515632.81 -3060648491.82
The investment income of financial asset
held for trading during its holding period 1406842.07 3289610.51
Dividend income from remaining investments
in other equity instruments 206042574.04 160088164.16
Investment income from disposal of
long-term equity investments 1.00
Investment income obtained from the
disposal of trading financial assets 18106159.85
Business combination 5021482128.74
Gains from the remeasurement of the
remaining equity at fair value
after the loss of control 2128313646.36
Others 4890972.21 -
Total 3050413045.10 -768957070.79
181ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
55. Fair value change
20232022
Financial assets held for trading -19061189.53 3570229.29
56. Impairment loss of credit
20232022
Bad debt for account receivable 48168990.90 30511950.73
Bad debt for other receivables -1426874.99 1730059.54)
Total 46742115.91 32242010.27
57. Impairment loss on assets
20232022
Impairment of inventory 248550585.56 284897475.48
Impairment of contract assets 236406130.60 119820417.81
Impairment of fixed assets 252935096.10 473400524.41
Impairment of intangible assets 70593040.66 66201964.50
Impairment of construction in progress 5343493.61 1533334.00
Total 813828346.53 945853716.20
58. Gain on disposal of assets
Amount recognized
in 2023 as
non-recurring profit
2023 2022 and loss
Gain on disposal of intangible assets 431533750.49 74862481.00 431533750.49
Gain on disposal of fixed-assets 9461986.74 9461986.74
Total 440995737.23 74862481.00 440995737.23
182ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
59. Non-operating income
Amount recognized
in 2023 as
non-recurring profit
2023 2022 and loss
Fines penalties and others 169793538.35 128910416.79 169793538.35
60. Non-operating expenses
Amount recognized in
2023 as non-recurring
2023 2022 profit and loss
Donation 23663690.00 19172451.80 23663690.00
Fines and penalties 4073147.35 1168042.33 4073147.35
Others 336554.48 34050545.66 336554.48
Total 28073391.83 54391039.79 28073391.83
183ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
61. Income tax expense
20232022
Current income tax expense 1450814903.31 689928709.52
Deferred income tax expense -363517186.79 -726353981.40
Total 1087297716.52 -36425271.88
The relationship between income tax expense and profit/(loss) before tax is as follows:
2023
Profit before tax 10589196757.49
Tax at the applicable tax rate 1588379513.62
Impact of different tax rates of subsidiaries 55937616.85
Adjustments to current income tax of previous period -16714286.64
Non-taxable income 183906215.55
Non-deductible tax expense 1905984.77
Usage previous deductible losses -67491591.34
Unrecognized deductible temporary differences and
deductible losses 77420652.42
Additional deduction arising from research and
development expense -749436146.91
Others 13389758.20
Tax expense under actual tax rate of the Group 1087297716.52
184ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
62. Earnings per share (“EPS”)
20232022
Basic EPS
Going concern 1.15 0.80
Diluted EPS
Going concern 1.13 0.78
The basic EPS is calculated by dividing the net profit of the current period attributable to the
ordinary shareholders of the Company by the weighted average number of outstanding ordinary
shares.The numerator of diluted earnings per share is determined based on the current net profit
attributable to the ordinary shareholders of the company after adjusting the following factors:
(1) the interest of diluted potential ordinary shares that have been recognized as expenses in the
current period; (2) The proceeds or expenses that will be incurred upon conversion of diluted
potential ordinary shares; (3) the income tax impact related to the above adjustment.The denominator of diluted earnings per share is equal to the sum of the following two items: (1)
the weighted average number of ordinary shares issued by the parent company in the basic
earnings per share; (2) the weighted average number of ordinary shares increased by assuming
the conversion of diluted potential ordinary shares into ordinary shares.When calculating the weighted average number of ordinary shares increased by the conversion
of diluted potential ordinary shares into issued ordinary shares the diluted potential ordinary
shares issued in previous periods are assumed to be converted at the beginning of the current
period; Diluted potential ordinary shares issued in the current period are assumed to be
converted on the issuance date. In 2023 the restricted stock incentive plan implemented by the
company diluted earnings per share.
63. Notes to cash flow statement
(1) Items of cash received relating to other operating activities are as follows:
20232022
Interest income 1172272116.20 1014346758.69
Government grants 1841460063.44 711835358.28
Others 344581255.97 715500477.90
Total 3358313435.61 2441682594.87
185ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
62. Notes to cash flow statement (continued)
(2) Items of cash paid relating to other operating activities are as follows:
20232022
Selling expense 6878810680.77 4057275191.41
Administrative expense 717871224.11 594849261.20
Research and development expenses 1992577538.50 951048522.32
Others 1344892685.88 762523853.82
Total 10934152129.26 6365696828.75
(3) Items of cash received relating to other investing activities are as follows:
20232022
Business Combination 6216944276.29
Total 6216944276.29
(4) Items of cash received relating to other investing activities are as follows:
20232022
Fixed deposit 8000000000.00
Cash transferred out from the loss of
control of the subsidiary 815126333.76
(5) Items of cash received relating to other financing activities are as follows:
20232022
Withdraw for deposit of bill 863425006.28 1705726148.77
(6) Items of cash paid relating to other financing activities are as follows:
20232022
Payment for deposit of bill 17925527.40 328638801.53
Repurchase restricted share
Others 65147042.33 43924444.07
Total 83072569.73 372563245.60
186ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
64. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
Cash flows from operating activities calculated by adjusting the net profit:
20232022
Net profit 9501899040.97 7745026102.60
Add: Impairment provision for assets 860570462.44 978095726.47
Depreciation of fixed assets 2991918878.33 2837042619.12
Right-of-use assets depreciation 70896183.37 29882264.96
Depreciation and amortization of investment
property 226711.56 226711.56
Amortization of intangible assets 2232311060.45 1045661359.97
Amortization of long-term deferred expense 3570664.27 3841977.06
Disposal income on fixed assets intangible
assets and others
long-term assets -440995737.23 -74862481.00
Loss/(income) of abandonment of fixed assets 4891.17
Income of fair value movement 19061189.53 -3570229.29
Financial expense 156147198.25 8976404.49
Investment income/(loss) -3050413045.10 768957070.79
Increase in deferred tax assets -219254747.14 -748011416.82
Increase/(decrease) in inventory -7706466368.68 744669432.21
Deferred income tax liabilities Increased/(decreased) -144262439.65 21313688.79
Increase/(decrease) in operating receivables -1687114693.11 -10855537441.91
Increase in operating payables 17273366988.13 3164635069.52
Net cash flows from operating activities 19861466237.56 5666346858.52
Movement of cash and cash equivalents:
Ending balance of cash 63925957901.11 52491435047.74
Less: beginning balance of cash 52491435047.74 49517916834.99
Increase in cash and cash equivalents 11434522853.37 2973518212.75
187ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
64. Supplementary information of cash flow statement (continued)
(2) Net cash paid for acquiring subsidiaries in this period:
20232022
Net cash received from subsidiaries -6216944276.29
(3) Cash and cash equivalents
20232022
Cash
Including: Cash 35257.05 32155.77
Bank deposits that can be readily used 63902699987.48 52455913791.28
Other cash and cash equivalents that can be
23222656.5835489100.69
readily used
Cash equivalents
Ending balance of cash and cash equivalents 63925957901.11 52491435047.74
Note: The restricted cash and cash equivalents of the Group are not included in the cash and
cash equivalents.
65. ForeignMonetary Item
2023
Exchange Translated to
Original Currency
Rate RMB
Cash 775543757.76
USD 27673169.85 7.0827 196000760.10
EUR 10732881.24 7.8592 84351860.24
GBP 4076378.88 9.0411 36854949.09
RUB 4115101447.98 0.0803 330442646.27
THB 586060854.78 0.2074 121549021.28
JPY 126384876.00 0.0502 6344520.78
Accounts receivable 227291127.63
USD 32091028.51 7.0827 227291127.63
Other receivables 53011478.72
GBP 1340852.36 9.0411 12122780.27
EUR 5027057.30 7.8592 39508648.73
USD 100559.00 7.0827 712229.23
JPY 13303197.00 0.0502 667820.49
Accounts Payable 134371726.09
RUB 1246829072.52 0.0803 100120374.52
JPY 20714693.00 0.0502 1039877.59
EUR 4199560.51 7.8592 33005185.96
USD 3830.58 7.0827 27130.85
GBP 19815.86 9.0411 179157.17
Other Payables 2321563.33
188ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
USD 27470.66 7.0827 194566.44
EUR 235258.64 9.0411 2126996.89
66. Lease arrangements
(1) As lessor
The income related to operating leases are listed as follows:
20232022
Leasehold Income 460233626.72 414625233.74
According to the lease contract signed with the lessee the minimum lease collection
amount of irrevocable lease is as follows:
20232022
Less than 1 year (including 1 year) 388255072.48 485069034.35
1 to 2 years (including 2 years) 260689384.89 393916228.04
2 to 3 years (including 3 years) 130967274.89 258908078.26
3 to 4 years (including 3 years) 34577303.73 116180073.26
4 to 5 years (including 3 years) 26810816.32 33175628.20
Over 5 years 1506050.47 25435140.79
842805902.781312684182.90
(2) As lessee
20232022
Interest expense of lease liabilities 9034012.98 3315624.26
Short term lease expenses with simplified treatment
included in current profit and loss 78849902.44 68405663.80
Lease expense of low value assets with simplified
treatment included in current profit and loss 920517.27 3208292.72
Total cash outflow related to leasing 98885795.36 96132331.89
VI Research and development expenses
20232022
Employee Benefits 3556084891.96 2183744717.61
Depreciation and amortization 2237878184.31 1221653901.00
189ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Outsourcing fees 1216189214.55 1038910329.94
Material costs 749129534.46 215645999.38
Test fee 557428126.11 446674285.17
Others 690840581.50 571178735.26
Total 9007550532.89 5677807968.36
2023
Beginning balance Addition Addition Deduction Ending balance
Internal research and Business Other
development combination Recognized as intangible assets deduction
Automobile
Development 723211177.47 568748628.02 3027705879.66 2018394526.72 59450601.737 2241820556.70
2022
Beginning balance Addition Deduction Ending balance
Internal research Recognized as Charged to income Other deduction
and development intangible assets Statement of the
current year
Automobile
Development 727568248.78 1362363103.60 1052395491.38 62815604.46 251509079.07 723211177.47
190ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
VIIChanges in the scope of consolidation
1. Mergers of enterprises not under the same control that occurred in this period
Equity
Time of acquis Equity Purcha Basis for Income of the purchased party from Net profit of the purchased party from Cash flow of the purchased party from
equity Cost of equity ition acquisition se determining the the purchase date to the end of the the purchase date to the end of the the purchase date to the end of the
acquisition acquisition ratio method date purchase date period period period
DEEPAL Automotive
Technology Co. 2023.2
Ltd. 2023.2.1 1331621441.70 10.34 Cash .1 Acquiring control 25882512213.36 -2998926405.37 1365253450.96
191ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
1. Mergers of enterprises not under the same control that occurred in this period
(Continued)
DEEPAL Automotive
Technology Co. Ltd.Merge costs
—Cash 1331621441.70
—Fair value of equity held before the purchase date on
the purchase date 5248006233.55
Merge costs 6579627675.25
decrease：Fair value share of identifiable net assets
acquired 4778701626.09
Goodwill/merger cost less than the fair value share of
identifiable net assets acquired 1800926049.16
The identifiable assets and liabilities of the purchased party on the purchase date:
Fair value Book value
Inventories 2755821424.92 2673407113.72
Fixed assets 448453376.58 436567361.38
Intangible assets 10744634103.94 1028650075.89
Other Current Assets 14267576307.83 14258892818.92
Other Non-Current Asset 1592032100.39 1593696147.48
Asset 29808517313.66 19991213517.39
current liabilities 18995437442.81 18995437442.81
Non current liabilities 1485143844.91 13850798.81
liabilities 20480581287.72 19009288241.62
Net assets 9327936025.94 981925275.77
192ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
VIII Shares in other entities
1. Shares in subsidiaries
The subsidiaries of the Company are as follows：
Company name Main Registered Nature of Registered Total proportion of
operating place business capital shareholders (%)
place (0000)
direct indirect
I.The subsidiary formed by establish or investment
Chongqing Changan International Automobile Sales Co.Ltd. Chongqing Chongqing Sales 118275.64 100.00 -
Chongqing Changan Connected Car Technology Co. Ltd. Chongqing Chongqing Lease 8850.00 100.00 -
Chongqing Changan Special Automobile Co. Ltd.(note 2) Chongqing Chongqing Sales 2000.00 50.00 -
Chongqing Changan Automobile Supporting ServiceCo. Ltd. Chongqing Chongqing Sales 3000.00 99.00 1.00
Chongqing Changan New Energy Automobile Co. Ltd. Chongqing Chongqing R&D 2900.00 100.00 -
Chongqing Changan Europe DesignAcademy Co. Ltd. Turin Italy Turin Italy R&D EUR1738 100.00 -
Nottingham Nottingham
ChanganUnited KingdomR&DCenter Co. Ltd. United United
Kingdom Kingdom R&D GBP2639 100.00 -
BeijingChangan R&DCenter Co. Ltd. Beijing Beijing R&D 100.00 100.00 -
Yokohama Yokohama
Changan Japan Designing Center Co.Ltd.Japan Japan R&D JPY1000 100.00 -
ChanganUnited States R&DCenter Co. Ltd. TroyUnited Detriot
states United states R&D USD154 100.00 -
Moscow
ChanganAutomobile Russia Co. Ltd. Moscow Russia Russia Sales SUR220382 100.00 -
ChanganAutomobile Investment (Shenzhen)Co. Ltd. Shenzhen Shenzhen Sales 23789.00 100.00 -
Nanjing Changan New Energy Automobile Sales & Service Co.Ltd. Nanjing Nanjing Sales 5000.00 100.00 -
ChongqingAnyi AutomobileTechnical ServiceCo. Ltd. Chongqing Chongqing Sales 200.00 100.00 -
XiamenChangan New Energy Automobile Co. Ltd. Xiamen Xiamen Sales 200.00 100.00 -
GuangzhouChangan New Energy Automobile Co. Ltd. Guangzhou Guangzhou Sales 400.00 100.00 -
Chongqing ChehemeiTechnologyCo. Ltd. Chongqing Chongqing Sales 1000.00 100.00 -
Chongqing Changan Kaicheng Automobile Technology Co.Ltd. Chongqing Chongqing Sales 100000.00 83.64 -
Chongqing Changan Automobile Software Technology Co.Ltd. Chongqing Chongqing R&D 9900.00 100.00 -
Chongqing XingzhiTechnology Co. Ltd. Chongqing Chongqing Sales 4900.00 100.00 -
Chongqing ChanganTechnology Co. Ltd. Chongqing Chongqing R&D 9000.00 100.00 -
Chongqing ChanganXing Technology Co. Ltd. Chongqing Chongqing R&D 2000.00 100.00 -
NanjingChangan Automobile Co. Ltd. (note 1) Nanjing Nanjing Manufacturing 60181.00 84.73 -
Chongqing Changan LingyaoAutomobile Co. Ltd. Chongqing Chongqing Manufacturing 133764.00 100.00 -
Manufacturing
DEEPALAutomotiveTechnology Co. Ltd Chongqing Chongqing 32810.83 51oo
Hefei Changan Automobile Co.Ltd. Hefei Hefei Manufacturing 227500.00 100.00 -
Note 1: The proportion of the company's voting rights in Nanjing Changan Automobile Co. Ltd. is 91.53%. The
reason for the inconsistency between the shareholding ratio and the proportion of voting rights is that
someminority shareholders entrust the company to exercise their voting rights.Note 2: The remaining shareholders of Chongqing Changan Special Purpose Vehicle Co. Ltd. have signed the
"Concerted Acting Persons Agreement" with the company all agreeing to vote in accordance with the
company's voting intentions so the company can exercise control over it so it is included in the scope
of consolidated financial report.
2. Important non wholly-owned subsidiaries
Closing balance of
Minority shareholder Profit and loss attributable to minority minority shareholders'
subsidiary shareholding ratio shareholders in the current period equity
DEEPAL Automotive
Technology Co. Ltd 49% -1466822887.69 -963121538.83
193ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
3. Main financial information of important non wholly-owned subsidiaries
2023
subsidiary current assets Non current assets assets current liabilities Non current liabilities liabilities
DEEPAL Automotive Technology Co. Ltd 19532107979.29 3335776374.16 22867884353.45 23372178834.61 1464812108.74 24836990943.35
2022
subsidiary current assets Non current assets assets current liabilities Non current liabilities liabilities
DEEPAL Automotive Technology Co. Ltd 17304462820.64 3031817521.55 20336280342.19 18443264762.77 802998605.97 19246263368.74
2023
subsidiary Operating income Net profit Total comprehensive income Cash flow from operating activities
DEEPAL Automotive Technology Co. Ltd 25882512213.36 -2998926405.37 -2998926405.37 3338314121.63
2022
subsidiary Operating income Net profit Total comprehensive income Cash flow from operating activities
DEEPAL Automotive Technology Co. Ltd 15677573297.11 -3196559864.14 -3196559864.14 5685083425.27
194ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
4. Important joint ventures or associates
Total proportion of
Main operating Registered shareholders (%) Accounting treatment methods for investments in joint Is it strategic for oursubsidiary Nature of business
place place ventures or joint ventures company's activities
direct indirect
Avatr Technology research and
(Chongqing) Co. Ltd. Chongqing Chongqing development 40.9939 Equity method Yes
5. Main financial information of important joint ventures
20232022
Avatr Technology (Chongqing) Co. Ltd. Avatr Technology (Chongqing) Co. Ltd.current assets 10513768163.43 4119117631.56
Non current assets 2130278114.28 1080940094.70
assets 12644046277.71 5200057726.26
current liabilities 9864279866.61 2344911952.16
Non current liabilities 685987794.52 82076507.58
liabilities 10550267661.13 2426988459.74
Minority shareholder equity
Equity attributable to shareholders of the parent company 2093778616.58 2773069266.52
Net asset share calculated based on shareholding ratio 858321512.30 1136789242.05
Adjustment matters 1437388747.49 1507746698.43
Book value of equity investment in joint ventures 2295710259.79 2644535940.48
Net profit -3692504949.03 -2015302440.74
Total comprehensive income -3692504949.03 -2015302440.74
195ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. The table below shows the financial status of the less important joint ventures and associates:
20232022
Joint venture
Total book value of the investment 3789451718.73 4780435502.08
Total amount calculated by
shareholding proportion
Net profit -960029731.44 -967472466.00
Other comprehensive income -1454051.91 602832.07
Total comprehensive income -961483783.35 -966869633.93
Associates
Total book value of the investment 7702230006.95 6981691013.72
Total amount calculated by
shareholding proportion
Net profit 341248476.30 -1154049730.76
Other comprehensive income
Total comprehensive income 341248476.30 -1154049730.76
As at 31 December 2023 since the Group has no obligation to undertake the extra loss of
Chongqing Changan Kuayue Automobile Sales Co. Ltd Jiangling Motors Co. Ltd and
Changan Ford Automobile Co. Ltd. When extra loss occurs the Group writes down the
long-term investment to zero without recognizing the extra loss.IX Government grants
（1） Types amounts and reporting items of government subsidies
1. Government subsidies included in current profit and loss
Government subsidies related to assets
Offsetting the book value of related
Projects for
Items presented in the Government assets
offsetting
balance sheet subsidy balance Previous period
Current amount related assets
amount
Offsetting fixed
assets/
Deferred income 610407171.08 175548473.12 188239238.37
intangible
assets
Total 610407171.08 175548473.12 188239238.37
grants related to income
The amount of offsetting related cost and expense losses
Items to offset related cost
and expense losses Current amount Previous period amount
Operating cost 170360460.12 87580801.54
Operating expenses 46703658.08 4958904.12
General and administrative
13512686.3262862742.73
expenses
196ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
The amount of offsetting related cost and expense losses
Items to offset related cost
and expense losses Current amount Previous period amount
Research and development
86393841.24179583821.24
expenses
Total 316970645.76 334986269.63
197ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
2.Debt projects involving government subsidies
Last year's year-end Newly added subsidy Projects for offsetting Current period offset
Liability items Closing balance Related to assets / returns
balance amount in this period related assets cost expense amount
Deferred income 166416924.20 619538720.00 175548473.12 610407171.08 Related to assets
Deferred income 181151625.42 72718252.98 108433372.44 Related to returns
198ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
X Risks associated with financial instruments
（1） Various risks arising from financial instruments
Our company faces various financial risks in the process of operation including credit risk
liquidity risk and market risk (including exchange rate risk interest rate risk and other price
risk). The above financial risks and the risk management policies adopted by our company to
reduce these risks are as follows:
The overall goal of our company's risk management is to develop risk management policies that
minimize risks as much as possible without excessively affecting the company's competitiveness
and adaptability.
1. Credit risk
Credit risk refers to the risk of financial losses incurred by the company due to the counterparty's
failure to fulfill contractual obligations.The credit risk of our company mainly arises from monetary funds notes receivable accounts
receivable accounts receivable financing other receivables as well as debt instrument
investments measured at fair value with changes recognized in current profit and loss that are
not included in the impairment assessment scope.Our company's monetary funds are mainly deposited in state-owned banks with good
reputation and high credit ratings as well as other large and medium-sized listed banks. We
believe that there is no significant credit risk and there will be almost no significant losses
caused by bank defaults.In addition our company has established relevant policies to control credit risk exposure for
notes receivable accounts receivable accounts receivable financing contract assets and other
receivables. Our company evaluates the credit qualifications of customers based on their
financial status the possibility of obtaining guarantees from third parties credit records and
other factors such as current market conditions and sets corresponding credit periods. Our
company will regularly monitor customer credit records. For customers with poor credit records
we will use written reminders shorten or cancel credit periods etc. to ensure that our overall
credit risk is within a controllable range.
2. Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when a company fulfills its obligation to
settle by delivering cash or other financial assets.Our company's policy is to ensure sufficient cash to repay maturing debts. Liquidity risk is
centrally controlled by the finance department of our company.The finance department ensures
that the company has sufficient funds to repay debts under all reasonable forecasts by
monitoring cash balances readily available securities and rolling forecasts of cash flows for the
next 12 months. Simultaneously continuously monitor whether the company complies with the
provisions of the loan agreement and obtain commitments from major financial institutions to
provide sufficient standby funds to meet short-term and long-term funding needs.The various financial liabilities of our company are presented as undiscounted contract cash
flows at maturity as follows:
Closing balance
Item Total undiscounted
Within one year One to two years Two to five years Over five years Book value
contract amount
Short-term
30862587.5730862587.5730039416.74
loans
Notes
37456669928.0737456669928.0737456669928.07
payable
Accounts
38289947321.4538289947321.4538289947321.45
payable
Other
5592483962.975592483962.975880882512.97
payables
Non-current 85021520.17 85021520.17 80077042.88
199ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Closing balance
Item Total undiscounted
Within one year One to two years Two to five years Over five years Book value
contract amount
liabilities
due within 1
year
Long-term
772666.6736462000.0036076000.0073310666.6772000000.00
loan
Lease
58380494.0186883614.74145264108.75134254398.07
liabilities
Long-term
970485209.92970485209.92804264787.97
payables
Bonds
30000000.0030000000.001060000000.001120000000.00999607547.16
payable
Total 81485757986.90 124842494.01 1182959614.74 970485209.92 83764045305.57 83747742955.31
Closing balance
Item Total undiscounted
Within one year One to two years Two to five years Over five years Book value
contract amount
Short-term
29621345.0029621345.0029000000.00
loans
Notes payable 22072793864.83 22072793864.83 22072793864.83
Accounts
29449664138.7529449664138.7529449664138.75
payable
Other payables 4749541830.49 4749541830.49 6082766424.67
Non-current
liabilities due 907011961.68 907011961.68 885723901.34
within 1 year
Long-term loan 360000.00 36090000.00 36450000.00 36000000.00
Lease
28446270.6436466546.8064912817.4460205397.98
liabilities
Long-term
195656936.33229263541.66424920477.99408939511.34
payables
Bonds payable 30000000.00 30000000.00 1090000000.00 1150000000.00 999528301.88
Total 57238633140.75 254463206.97 1391820088.46 58884916436.18 60024621540.79
3. Market risk
The market risk of financial instruments refers to the risk of fluctuations in the fair value or
future cash flows of financial instruments due to market price changes including exchange rate
risk interest rate risk and other price risks.
(1) Interest rate risk
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial
instruments due to changes in market interest rates.Fixed interest rate and floating interest rate interest bearing financial instruments expose the
company to fair value interest rate risk and cash flow interest rate risk respectively. Our
company determines the ratio of fixed and floating rate instruments based on the market
environment and maintains an appropriate combination of fixed and floating rate instruments
through regular review and supervision. When necessary our company will use interest rate
swap tools to hedge interest rate risk.Our company's revenue and operating cash flow are generally not affected by fluctuations in
market interest rates. As of December 31 2023 all bank loans and payable bonds of our
company bear interest at a fixed rate. Our company currently does not hedge interest rate risk.
(2) Exchange rate risk
Exchange rate risk refers to the risk of fluctuations in the fair value or future cash flows of
financial instruments due to changes in foreign exchange rates.Our company continuously monitors the scale of foreign currency transactions and foreign
currency assets and liabilities to minimize the foreign exchange risks we face. In addition the
company may also sign forward foreign exchange contracts or currency swap contracts to avoid
exchange rate risks. In this period and the previous period our company did not sign any
forward foreign exchange contracts or currency swap contracts.The exchange rate risk faced by our company mainly comes from financial assets and liabilities
200ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
denominated in US dollars. The amount of foreign currency financial assets and foreign currency
financial liabilities converted into RMB is listed below:
2023.12.312022.12.31
Item Other foreign Other foreign
Dollar Total Dollar Total
currencies currencies
Cash 196000760.10 579542997.66 775543757.76 391277812.22 111466597.50 502744409.72
Accounts
227291127.63227291127.63281485439.30281485439.30
receivable
Other
712229.2352299249.4953011478.72222592.1017185394.4317407986.53
receivables
Account
27130.85134344595.24134371726.09415271.9423599339.6924014611.63
payable
Other
194566.442126996.892321563.338187604.861755928.379943533.23
payables
Total 424225814.25 768313839.28 1192539653.53 681588720.42 154007259.99 835595980.41
As of December 31 2023 with all other variables remaining unchanged if the RMB appreciates
or depreciates by 5% against the US dollar the company will increase or decrease its net profit
by RMB 18029597.10.The management believes that 5% reasonably reflects the reasonable range of possible
changes in the Chinese yuan against the US dollar in the next year.
(3) Other price risks
Other price risk refers to the risk of fluctuations in the fair value or future cash flows of financial
instruments due to market price changes other than exchange rate and interest rate risks.Our company's other price risks mainly arise from various equity instrument investments and
there is a risk of price fluctuations in equity instruments.As of December 31 2023 with all other variables remaining unchanged if the value of equity
instruments increases or decreases by 5% the company will increase or decrease its net profit
by RMB 6831651.16. The management believes that 5% reflects a reasonable range of possible
changes in the value of equity instruments in the next year.XI Disclosure of fair value
1. Assets and liabilities measured at fair value
2023
Inputmeasured at fair value
Quoted price in Important and Important but Total
activemarket observable input unobservable input
(The first level) (The second (The third level)level）
Financial asset held for trading
Equity instrument investment 160744733.27 - 160744733.27
Others - 6774614.02 - 6774614.02
Investment in other equity
instruments - - 504190082.71 504190082.71
Total 160744733.27 6774614.02 504190082.71 671709430.00
2022
Inputmeasured at fair value
201ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Quoted price in Important and Important but Total
activemarket observable input unobservable input
(The first level) (The second (The third level)level）
Financial asset held for trading
Equity instrument investment 126112500.00 125052628.80 - 251165128.80
Others - 29150442.29 - 29150442.29
Investment in other equity
instruments - - 489950000.00 489950000.00
Total 126112500.00 154203071.09 489950000.00 770265571.09
2. 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
Comparable transaction value
2023 504190082.71 Market approach multiplier / Post-tax discount rate
Comparable transaction value
2022 489950000.00 Market approach multiplier / Post-tax discount rate
202ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
XII Related party relationships and transactions
1. The holding company
Holding company Place of Nature of the business Registered capital Proportion of Proportion of
registration shares in the voting rights in
Company the company
Automobile and its
engines spare parts
China Changan Automobile Group manufacturing
Co. Ltd. Beijing marketing 6092273400.00 20.81% 20.81%
The ultimate holding company is China South Industries Group Corporation.
2. Subsidiaries
Refer to Note VIII. Interests in Other Entities for details of the Group’s subsidiaries.
3. Joint ventures and associates
Refer to Note VIII. Interests in Other Entities for details of the Group’s important joint ventures
and associates.
203ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
4. Other related parties
Related parties Relationship
ChongqingChangfeng Jiquan Machinery Co. Ltd. Controlled by the same ultimate holding company
Chongqing Chang'an Intelligent Industrial Technology Service Co. Ltd Controlled by the same ultimate holding company
Chongqing Chang'an Construction Engineering Co. Ltd Controlled by the same ultimate holding company
Chongqing Chang'an Industrial (Group) Co. Ltd Controlled by the same ultimate holding company
Chongqing Yihong Defense Technology Co. Ltd Controlled by the same ultimate holding company
Chongqing Xiyi Automobile Connecting Rod Co. Ltd Controlled by the same ultimate holding company
ChongqingWanyou Zunda Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
ChongqingWanyou Zhicheng Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
ChongqingWanyou Xingjian Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
ChongqingWanyou Economic Development Co. Ltd Controlled by the same ultimate holding company
ChongqingWanyou Ducheng Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
ChongqingWanyou Chengxing Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Chongqing Chang'an 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 Automotive Parts Co. Ltd Controlled by the same ultimate holding company
Chongqing Qingshan Industrial Co. Ltd Controlled by the same ultimate holding company
Chongqing Automotive Air Conditioner Co. Ltd Controlled by the same ultimate holding company
Chongqing Pingshan Taikai Carburetor Co. Ltd Controlled by the same ultimate holding company
Chongqing Construction Tongda Industrial Co. Ltd Controlled by the same ultimate holding company
Chongqing Construction Electromechanical Co. Ltd Controlled by the same ultimate holding company
Chongqing Construction Industry (Group) Co. Ltd Controlled by the same ultimate holding company
Chongqing Construction Transmission Technology Co. Ltd Controlled by the same ultimate holding company
Related parties Relationship
204ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Chongqing Construction Automotive 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 Xinda Vehicle 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 Marketing 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 Ordnance Equipment Group Commercial Factoring Co. Ltd Controlled by the same ultimate holding company
China Ordnance Equipment Group Financial Leasing Co. Ltd Controlled by the same ultimate holding company
Chang'an Automobile Finance Co. Ltd Controlled by the same ultimate holding company
YunnanWanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
YunnanWanxing Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Ya'anWanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Southwest Ordnance Industry Chongqing Environmental Protection Research Institute Co. Ltd Controlled by the same ultimate holding company
Wanyou Automobile Investment Co. Ltd Controlled by the same ultimate holding company
Sichuan Ningjiang ShanchuanMachinery Co. Ltd Controlled by the same ultimate holding company
Sichuan Jian'an Industry Co. Ltd Controlled by the same ultimate holding company
PanzhihuaWanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
LuzhouWanyou Automobile Service Co. Ltd Controlled by the same ultimate holding company
Longchang ShanchuanMachinery Co. Ltd Controlled by the same ultimate holding company
JiangsuWanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Construction Industry Group (Yunnan) Co. Ltd Controlled by the same ultimate holding company
Related parties Relationship
205ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Hubei Xiaogan Huazhong Car Lamp Co. Ltd Controlled by the same ultimate holding company
Hubei HuazhongMarelli Automotive Lighting Co. Ltd Controlled by the same ultimate holding company
Harbin Dong'an Automotive Engine Manufacturing Co. Ltd Controlled by the same ultimate holding company
Harbin Dong'an Automotive Power Co. Ltd Controlled by the same ultimate holding company
GuizhouWanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
GuangxiWanyou 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
ChengduWanyou Xiangyu Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
ChengduWanyou Auto Trade Service Co. Ltd Controlled by the same ultimate holding company
ChengduWanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
ChengduWanyou Trading Co. Ltd Controlled by the same ultimate holding company
ChengduWanyou Filter Co. Ltd Controlled by the same ultimate holding company
Chengdu Lingchuan Special Industry 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 Optics and Precision Machinery Co. Ltd Controlled by the same ultimate holding company
Chengdu Huachuan Electric Equipment Co. Ltd Controlled by the same ultimate holding company
Chenzhi (Chongqing) Brake System Co. Ltd Controlled by the same ultimate holding company
Weapon 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
Beijing North Changfu Automobile Sales Co. Ltd Controlled by the same ultimate holding company
BazhongWanyou 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
Chenzhi (Chengdu) Intelligent Suspension Co. Ltd Controlled by the same ultimate holding company
Chengdu Zhongzi Guangming Catalytic Technology Co. Ltd Controlled by the same ultimate holding company
Related parties Relationship
206ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Chongqing Chang'anMinsheng Logistics Co. Ltd Controlled by the same ultimate holding company
Hunan TianyanMachinery Co. Ltd Controlled by the same ultimate holding company
China Ordnance Equipment Group Human Resources Development Center Controlled by the same ultimate holding company
China Ordnance Newspaper Controlled by the same ultimate holding company
Southern Yingte Air Conditioning Co. Ltd Controlled by the same ultimate holding company
Southern Faurecia Automotive Parts Co. Ltd Controlled by the same ultimate holding company
Hunan TianyanMachinery Co. Ltd Controlled by the same ultimate holding company
Beijing Zhongbing Insurance Brokerage Co. Ltd Controlled by the same ultimate holding company
Chongqing Naishite Steering System Co. Ltd Participated by theUltimate holding company
Chongqing Lingchuan Automotive Parts Manufacturing Technology Co. Ltd Participated by theUltimate holding company
Chongqing Jianshe Hanang Automotive Thermal Management System Co. Ltd Participated by theUltimate holding company
Chongqing Dajiang Yuqiang Plastic Products Co. Ltd Participated by theUltimate holding company
Chongqing Dajiang Yapu Automotive Parts Co. Ltd Participated by theUltimate holding company
Chongqing Dajiang National Precision Machinery Manufacturing Co. Ltd Participated by theUltimate holding company
Chongqing Dajiang Dongyang Plastic Products Co. Ltd Participated by theUltimate holding company
United Automotive Electronics (Chongqing) Co. Ltd Participated by theUltimate holding company
Li Er Chang'an (Chongqing) Automotive Systems Co. Ltd Participated by theUltimate holding company
Chang'an Laisi (Chongqing) Robot Intelligent Equipment Co. Ltd Participated by theUltimate holding company
Tiannake Lingchuan (Chongqing) Exhaust System Co. Ltd Participated by theUltimate holding company
Nanjing Tiefu Transmission System (Chongqing) Co. Ltd Participated by theUltimate holding company
Hafei Automobile Co. Ltd Participated by theUltimate holding company
207ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between theGroup and its related parties
(1) Transactions of goods and services
Purchases of goods and services from related parties
Related parties Nature of the transaction 2023 2022
ChongqingQingshan Industrial Co. Ltd Purchase of spare parts and accept service 7909257881.61 5929105477.16
ChongqingChang'anMinsheng Logistics Co. Ltd Purchase of spare parts and accept service 5165658104.43 3463898449.23
Jiangling Holdings Limited Purchase of spare parts and accept service 2501907444.50 138548818.43
Sichuan Jian'an Industry Co. Ltd Purchase of spare parts and accept service 1189789519.57 797061806.68
Chenzhi (Chongqing) Brake SystemCo. Ltd Purchase of spare parts and accept service 1169593423.84 850217286.61
Hubei HuazhongMarelli Automotive LightingCo. Ltd Purchase of spare parts and accept service 1123367388.13 1000676703.53
Chongqing Naishite Steering SystemCo. Ltd Purchase of spare parts and accept service 1057076294.06 831405194.98
UnitedAutomotive Electronics (Chongqing) Co. Ltd Purchase of spare parts and accept service 1010229555.68 822043773.13
Harbin Dong'anAutomotive Engine ManufacturingCo. Ltd Purchase of spare parts and accept service 821839603.40 1059383069.06
SouthernYingteAir Conditioning Co. Ltd Purchase of spare parts and accept service 802270183.24 417113793.15
Southern FaureciaAutomotive Parts Co. Ltd Purchase of spare parts and accept service 706168677.33 474902181.20
ChengduZhongzi GuangmingCatalyticTechnologyCo. Ltd Purchase of spare parts 688149261.93 29580684.02
ShenlanAutomotiveTechnology Co. Ltd Purchase of spare parts and accept service 666172597.14 4693770740.03
Chongqing Dajiang Dongyang Plastic Products Co. Ltd Purchase of spare parts and accept service 618976091.63 390094811.70
Chongqing Dajiang National Precision Machinery Manufacturing Co. Purchase of spare parts and accept service 496995640.59 353842435.47
Ltd
Chengdu Huachuan Electric Equipment Co. Ltd Purchase of spare parts and accept service 461695054.62 433491184.42
Chongqing DajiangYapuAutomotive Parts Co. Ltd Purchase of spare parts 452268436.90 367878744.52
5. Major transactions between theGroup and its related parties (continued)
(1) Transactions of goods and services (continued)
208ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Purchases of goods and services from related parties (continued)
Related parties Nature of the transaction 2023 2022
Sichuan Ningjiang ShanchuanMachinery Co. Ltd Purchase of spare parts and accept service 432815652.22 236368439.32
Harbin Dong'anAutomotive Power Co. Ltd Purchase of spare parts and accept service 395901799.55 510666022.83 Harbin Dong'anAutomotive Power Co. Ltd
NatiefuTransmission System (Chongqing) Co. Ltd Purchase of spare parts and accept service 389817223.54 349384726.01
Chongqing wutongChelianTechnologyCo. Ltd Purchase of spare parts and accept service 343192676.83 162264149.40
Li Er Chang'an (Chongqing) Automotive Systems Co. Ltd Purchase of spare parts 336686106.50 398441173.61
ChongqingConstructionTransmissionTechnologyCo. Ltd Purchase of spare parts and accept service 280512432.69 188542642.58
Chongqing Lingchuan Automotive Parts Manufacturing Technology Purchase of spare parts 213630757.24 136745996.51
Co. Ltd
Chang'anAutomobile FinanceCo. Ltd Accept service 203900716.83
Chongqing Jianshe Hanang Automotive Thermal Management System Purchase of spare parts 174129034.27 151002052.30
Co. Ltd
HunanTianyanMachineryCo. Ltd Purchase of spare parts 143867189.64
Hubei Xiaogan HuazhongCar LampCo. Ltd Purchase of spare parts and accept service 137367855.66 100374013.64
ChengduWanyou Filter Co. Ltd Purchase of spare parts and accept service 131715230.00 131651417.70
Chongqing ShangshangAutomotive Parts Co. Ltd Purchase of spare parts 129114128.66 84981815.82
Era Chang'an Power Battery Co. Ltd Purchase of spare parts 95181872.65
ChongqingChangxian IntelligentTechnologyCo. Ltd Purchase of spare parts and accept service 93604392.49
ChongqingYihong DefenseTechnology Co. Ltd Purchase of spare parts 75489406.20 36665517.10
5. Major transactions between theGroup and its related parties (continued)
209ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
(1) Transactions of goods and services (continued)
Purchases of goods and services from related parties (continued)
Related parties Nature of the transaction 2023 2022
Tiannake Lingchuan (Chongqing) Exhaust SystemCo. Ltd Purchase of spare parts and accept service 75305544.57 67353980.86
ChongqingQingshanTransmission Sales Co. Ltd Purchase of spare parts 67569783.88 32926122.52
BeijingWutongChelianTechnologyCo. Ltd Purchase of spare parts and accept service 66771769.32 104475718.53
ChongqingConstructionAutomotiveAir Conditioner Co. Ltd Purchase of spare parts 55811393.01 60528242.94
ChongqingWanyou Economic Development Co. Ltd Purchase of spare parts and accept service 53578718.07 66255194.45
ChongqingConstructionTongda Industrial Co. Ltd Purchase of spare parts and accept service 52480106.10 25814511.10
Chengdu LingchuanAutomotive FuelTankCo. Ltd Purchase of spare parts 49988528.24 33992791.02
JiangsuWanyouAutomobile Sales andService Co. Ltd Accept service 47556715.66 7102848.68
Avita (Chongqing) Automobile Sales and Service Co. Ltd Purchase of spare parts 42227013.92
YunnanWanyouAutomobile Sales and Service Co. Ltd Accept service 39341743.95 25188983.36
ChengduWanyouXiangyuAutomobile Sales and Service Co. Ltd Purchase of spare parts and accept service 32444290.19 12062273.95
GuizhouWanyouAutomobile Sales and Service Co. Ltd Accept service 25147910.62 13511730.91
Longchang Shanchuan Machinery Co. Ltd Purchase of spare parts 24200356.23 27909131.44
ChongqingChang'an Intelligent Industrial Technology Service Co. Ltd Accept service 15950070.92 2946005.80
ChongqingChang'an Property Management Co. Ltd Accept service 15428001.25 4134339.52
ChongqingChang'an Industrial (Group) Co. Ltd Accept service 13270362.89 12292136.25
ChengduWanyouAutoTrade Service Co. Ltd Accept service 11285463.97 9348028.62
China ChanganAutomobile GroupTianjin Sales Co. Ltd Accept service 9516199.15 1371694.94
210ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between theGroup and its related parties (continued)
(1) Transactions of goods and services (continued)
Purchases of goods and services from related parties (continued)
Related parties Nature of the transaction 2023 2022
Anhui Wanyou Automobile Sales and Service Co. Ltd Accept service 8013949.98 5293300.68
Construction Industry Group (Yunnan) Co. Ltd Purchase of spare parts 7389085.00 107396789.80
ChongqingWanyou Ducheng Automobile Sales and Service Co. Ltd Accept service 6717354.59 4101094.51
ChongqingWanyou Xingjian Automobile Sales and Service Co. Ltd Accept service 3832530.21 1423274.77
ChongqingWanyou Chengxing Automobile Sales and Service Co. Ltd Accept service 3773979.88
Chang'anMazda Automobile Co. Ltd Accept service 3645821.90
Chang'anMazda Engine Co. Ltd Accept service 3237665.14
China Changan Automobile Group Co. Ltd Accept service 3001862.66
Ya'anWanyou Automobile Sales and Service Co. Ltd Purchase of spare parts and accept service 2761315.77 1946181.65
ChengduWanyou Automobile Sales and Service Co. Ltd accept service 2176652.22 678453.32
Chongqing Dajiang Jiexin Forging Co. Ltd Purchase of spare parts 1404946.66 3078583.33
LuzhouWanyou Automobile Service Co. Ltd accept service 1343676.63 509671.25
Chengdu Jialing Huaxi Optics and Precision Machinery Co. Ltd Purchase of spare parts 931742.59 2786069.10
PanzhihuaWanyou Automobile Sales and Service Co. Ltd accept service 672314.14 451213.56
Avita Technology (Chongqing) Co. Ltd Purchase of spare parts 517327.44
Zhongqi Chuangzhi Technology Co. Ltd accept service 480000.00 320000.00
Southwest Ordnance Industry Chongqing Environmental Protection accept service 445897.62 2049165.81
Research Institute Co. Ltd
211ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between theGroup and its related parties (continued)
(1) Transactions of goods and services (continued)
Purchases of goods and services from related parties (continued)
Related parties Nature of the transaction 2023 2022
Chenzhi (Chengdu) Intelligent Suspension Co. Ltd Purchase of spare parts 329060.27 10745694.02
Chongqing Dajiang Yuqiang Plastic Products Co. Ltd Purchase of spare parts 284403.78 459367.27
Beijing Zhongbing Insurance Brokerage Co. Ltd Purchase of spare parts and accept service 226367.35 226434.19
Beijing Beiji Electromechanical Industry Co. Ltd Purchase of spare parts 181057.41 38462.43
ChengduWanyou Trading Co. Ltd accept service 109105.05 55017.09
China Ordnance Equipment Group Commercial Factoring Co. Ltd accept service 93693.30
Shanghai Jiaxing Automotive Service Co. Ltd accept service 80043.15
ChongqingWanyou Zunda Automobile Sales and Service Co. Ltd Purchase of spare parts and accept service 76401.73 12900.95
Nanjing Lingxing Technology Co. Ltd Purchase of spare parts and accept service 59006.16 348114.07
China Ordnance Equipment Group Human Resources Development accept service 23113.20
Center
China Ordnance Newspaper Purchase of spare parts and accept service 22467.73
Nanjing Chelai Chuxing Technology Co. Ltd accept service 15222.66
Changan Ford Motor Co. Ltd Purchase of spare parts 203.40 35475.70
Hunan TianyanMachinery Co. Ltd Purchase of spare parts and accept service 2092525.14
Chongqing Construction Industry (Group) Co. Ltd Purchase of spare parts 1197461.49
Chongqing Pingshan Taikai Carburetor Co. Ltd Purchase of spare parts 170426.18
ChongqingWanyou Zhicheng Automobile Sales and Service Co. Ltd Purchase of spare parts 127433.63
212ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between theGroup and its related parties (continued)
(1) Transactions of goods and services (continued)
Purchases of goods and services from related parties (continued)
Related parties Nature of the transaction 2023 2022
YunnanWanxing Automobile Sales and Service Co. Ltd accept service 76719.72
China Ordnance Equipment Group Co. Ltd accept service 22339.62
Chongqing Chang'an Industrial (Group) Co. Ltd Pay comprehensive service fee 86759331.24 72388391.31
Chongqing Chang'an Intelligent Industrial Technology Service Co. Ltd Procurement of engineering materials 2049697.68
Chang'an Laisi (Chongqing) Robot Intelligent Equipment Co. Ltd Procurement of engineering materials 1756066.31 14202332.81
Chongqing Chang'anMinsheng Logistics Co. Ltd Procurement of engineering materials 13862.82
Sichuan Jian'an Industry Co. Ltd Procurement of engineering materials 44.14
213ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between theGroup and its related parties (continued)
(1) Transactions of goods and services (continued)
Sales of goods and services to related parties
Related parties Nature of the transaction 2023 2022
AvitaTechnology (Chongqing) Co. Ltd Sales of vehicle parts and services 3005944066.62 714145977.09
ChongqingWanyouZundaAutomobile Sales and Service Co. Ltd Selling parts and services 2615879134.66 1476308931.64
ChongqingWanyou Economic Development Co. Ltd Sales of vehicle parts and services 1767117262.72 1684301990.87
ChengduWanyouXiangyuAutomobile Sales and Service Co. Ltd Sales of vehicle parts and services 1737535522.44 1284359479.27
JiangsuWanyouAutomobile Sales andService Co. Ltd Sales of vehicle parts and services 1328878775.22 470683276.14
GuizhouWanyouAutomobile Sales and Service Co. Ltd Sales of vehicle parts and services 1311607201.25 884848504.37
YunnanWanyouAutomobile Sales and Service Co. Ltd Sales of vehicle parts and services 1105265913.83 1142270993.20
ChengduWanyouAutoTrade Service Co. Ltd Sales of vehicle parts and services 597327672.80 549991470.85
WanyouAutomobile Investment Co. Ltd Selling vehicles and services 584399985.39 598010950.82
Chongqing Fuji Supply Chain Management Co. Ltd Selling vehicles 538716791.96
Chang'anAutomobile FinanceCo. Ltd Provide labor services 354417122.66 490826007.07
AnhuiWanyouAutomobile Sales and Service Co. Ltd Sales of vehicle parts and services 306169916.41 260352341.97
China ChanganAutomobile GroupTianjin Sales Co. Ltd Sales of vehicle parts and services 304080496.29 247493153.78
Chang'anMazdaAutomobile Co. Ltd Sales of vehicle parts and services 288828348.49 64329600.00
Master ChanganAutomobile Co. Ltd Sales of vehicle parts and services 279656730.41 924463919.88
ShenlanAutomotiveTechnology Co. Ltd Sales of vehicle parts and services 111103766.19 2609084124.78
ChongqingChang'an KuayueVehicle Co. Ltd Selling parts and services 93017748.87 77335639.06
ChongqingAnfuAutomobile MarketingCo. Ltd Sales of vehicle parts and services 58386460.13 27875221.32
214ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between theGroup and its related parties (continued)
(1) Transactions of goods and services (continued)
Sales of goods and services to related parties (continued)
Related parties Nature of the transaction 2023 2022
Chongqing Qingshan Industrial Co. Ltd Sales of vehicle parts and services 31157207.00 158523290.48
China Ordnance Equipment Group Financial Leasing Co. Ltd Provide labor services 25691328.80 48064780.21
Changan Ford Motor Co. Ltd Selling partsand services 9082666.28 179318692.12
Chang'anMazda Engine Co. Ltd Selling partsand services 4748723.27
ChongqingWanyou Ducheng Automobile Sales and Service Co. Ltd Sales of vehicle parts and services 3605914.02 2714289.11
Harbin Dong'an Automotive Engine Manufacturing Co. Ltd Selling parts 3358934.35 28271075.57
Chongqing Chang'an Industrial (Group) Co. Ltd Provide labor services 3283373.72
Chongqing Chang'anMinsheng Logistics Co. Ltd Selling parts and services 3088120.79 2148551.67
Ya'anWanyou Automobile Sales and Service Co. Ltd Sales of vehicle parts and services 2547798.92 3074292.53
ChongqingWanyou Xingjian Automobile Sales and Service Co. Ltd Sales of vehicle parts and services 2366433.23 1575307.62
Weapon Equipment Group Finance Co. Ltd Provide labor services 2065012.08 1852079.79
Nanjing Lingxing Technology Co. Ltd Provide labor services 1947663.55 1871703.43
ChengduWanyou Automobile Sales and Service Co. Ltd Sales of vehicle parts and services 1731121.33 934370.23
Chongqing Chang'an Intelligent Industrial Technology Service Co. Ltd Provide labor services 1656676.95
Southern Yingte Air Conditioning Co. Ltd Provide labor services 1651787.03 2943.40
Chongqing Shangshang Automotive Parts Co. Ltd Provide labor services 1252080.34
Jiangling Holdings Limited Selling parts and services 1243519.20 397278.07
215ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between theGroup and its related parties (continued)
(1) Transactions of goods and services (continued)
Sales of goods and services to related parties (continued)
Related parties Nature of the transaction 2023 2022
Chongqing wutong Chelian Technology Co. Ltd Provide labor services 1096933.00 11320.75
LuzhouWanyou Automobile Service Co. Ltd Sales of vehicle parts and services 1009690.18 820143.92
Chongqing Naishite Steering System Co. Ltd Selling parts and services 995304.99
Chongqing Chang'an Kuayue Vehicle Marketing Co. Ltd Selling parts 704862.14 281930.93
PanzhihuaWanyou Automobile Sales and Service Co. Ltd Selling parts and services 671997.23 712145.73
Sichuan Ningjiang ShanchuanMachinery Co. Ltd Provide labor services 632600.17 13329.40
Southern Faurecia Automotive Parts Co. Ltd Provide labor services 498120.79
China Ordnance Equipment Group
Commercial Factoring Co. Ltd Provide labor services 358584.46 106858.13
China Changan Automobile Group Hefei Investment Co. Ltd Selling vehicles 230752.22 2169330.09
Sichuan Jian'an Industry Co. Ltd Provide labor services 228618.74
Chenzhi (Chongqing) Brake System Co. Ltd Provide labor services 214511.78
Chongqing Construction Transmission Technology Co. Ltd Selling parts and services 187996.19
Hunan TianyanMachinery Co. Ltd Provide labor services 169811.32
ChengduWanyou Trading Co. Ltd Selling parts and services 167458.36 25171.68
Chengdu Huachuan Electric Equipment Co. Ltd Selling vehicles and services 164961.79
Chongqing Dajiang National Precision Machinery Manufacturing Co. Selling parts and services 114266.17 37118575.61
Ltd
216ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between theGroup and its related parties (continued)
(1) Transactions of goods and services (continued)
Sales of goods and services to related parties (continued)
Related parties Nature of the transaction 2023 2022
China Changan Automobile Group Co. Ltd Provide labor services 85080.76 84905.66
ChongqingWanyou Zhicheng Automobile Sales and Service Co. Ltd Selling parts 79500.96
Dali Wanfu Automobile Sales and Service Co. Ltd Selling parts 59084.14
Nanjing Tiefu Transmission System (Chongqing) Co. Ltd Provide labor services 52739.15
Chongqing Lingchuan Automotive Parts Manufacturing Technology Selling parts and services 32454.14 1866175.08
Co. Ltd
ChongqingWanyou Chengxing Automobile Sales and Service Co. Ltd Provide labor services 18983.24
Chongqing Dajiang Dongyang Plastic Products Co. Ltd Selling parts and services 18867.92 750186.19
Chongqing Construction Automotive Air Conditioner Co. Ltd Selling parts and services 8490.57 11946.90
Hubei HuazhongMarelli Automotive Lighting Co. Ltd Provide labor services 1313.00
Chongqing Construction Tongda Industrial Co. Ltd Provide labor services 1070.21
Hubei Xiaogan Huazhong Car Lamp Co. Ltd Provide labor services 340.99
Zhongqi Chuangzhi Technology Co. Ltd Provide labor services 0.94
YunnanWanxing Automobile Sales and Service Co. Ltd Selling vehicles and parts 18948851.57
Tiannake Lingchuan (Chongqing) Exhaust System Co. Ltd Selling parts 4244013.23
Chengdu Lingchuan Automotive Fuel Tank Co. Ltd Selling parts 1480056.13
Construction Industry Group (Yunnan) Co. Ltd Selling parts 1365240.00
Chongqing Construction Industry (Group) Co. Ltd Selling parts 253525.27
217ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between theGroup and its related parties (continued)
(1) Transactions of goods and services (continued)
Sales of goods and services to related parties (continued)
Related parties Nature of the transaction 2023 2022
Li Er Chang'an (Chongqing) Automotive Systems Co. Ltd Selling parts and services 147535.15
Chongqing Dajiang Yuqiang Plastic Products Co. Ltd Selling parts 131400.00
Hainan Anxinxing Information Technology Co. Ltd Provide labor services 28301.89
Harbin Dong'an Automotive Power Co. Ltd Provide labor services 1173.00
Changan Ford Motor Co. Ltd Provide personnel technical support 22556634.55 26618313.54
Chang'anMazda Automobile Co. Ltd Provide personnel technical support 19654432.21 20766828.90
Jiangling Holdings Limited Provide personnel technical support 16029196.23 1465987.40
Chang'anMazda Engine Co. Ltd Provide personnel technical support 13114270.22 13623103.29
Chongqing Chang'an Kuayue Vehicle Co. Ltd Provide personnel technical support 3633857.52 2724505.28
Jiangling Automobile Co. Ltd Provide personnel technical support 2003201.96 1158831.59
Chongqing Chang'anMinsheng Logistics Co. Ltd Provide personnel technical support 1271925.14
Time FAW Power Battery Co. Ltd Provide personnel technical support 1234091.00
Avita Technology (Chongqing) Co. Ltd Provide personnel technical support 682780.43
Chongqing Anda Semiconductor Co. Ltd Provide personnel technical support 291666.67
Chongqing wutong Chelian Technology Co. Ltd Provide personnel technical support 208063.02
China Changan Automobile Group Co. Ltd Provide personnel technical support 169811.32
Weapon Equipment Group Finance Co. Ltd Provide personnel technical support 143990.86
Chongqing Shangshang Automotive Parts Co. Ltd Provide personnel technical support 115392.25
218ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between theGroup and its related parties (continued)
(1) Transactions of goods and services (continued)
Sales of goods and services to related parties (continued)
Related parties Nature of the transaction 2023 2022
Chongqing Construction Transmission Technology Co. Ltd Provide personnel technical support 27872.04
Chongqing Naishite Steering System Co. Ltd Provide personnel technical support 18026.66
Chongqing Dajiang National Precision Machinery Manufacturing Co. Provide personnel technical support
2520.00
Ltd
Shenlan Automotive Technology Co. Ltd Provide personnel technical support 87739303.52
Hainan Anxinxing Information Technology Co. Ltd Provide personnel technical support 634354.87
YunnanWanyou Automobile Sales and Service Co. Ltd Interest income from delayed payment of 374716.09 297408.89
funds
ChengduWanyou Auto Trade Service Co. Ltd Interest income from delayed payment of 54859.95 109002.02
funds
ChongqingWanyou Economic Development Co. Ltd Interest income from delayed payment of 14602.59 66581.59
funds
China Changan Automobile Group Tianjin Sales Co. Ltd Interest income from delayed payment of 7601.77 21429.12
funds
JiangsuWanyou Automobile Sales and Service Co. Ltd Interest income from delayed payment of 1380.53 32918.60
funds
Anhui Wanyou Automobile Sales and Service Co. Ltd Interest income from delayed payment of 42256.63
funds
219ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between theGroup and its related parties (continued)
(1) Transactions of goods and services (continued)
Sales of goods and services to related parties (continued
Related parties Nature of the transaction 2023 2022
Wanyou Automobile Investment Co. Ltd Interest income from delayed payment of 19690.27
funds
ChengduWanyou Xiangyu Automobile Sales and Service Co. Ltd Interest income from delayed payment of 9988.50
funds
Chongqing Chang'anMinsheng Logistics Co. Ltd Interest income from delayed payment of 4584.91
funds
GuizhouWanyou Automobile Sales and Service Co. Ltd Interest income from delayed payment of 3686.97
funds
220ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between theGroup and its related parties (continued)
(2) Lease between related parties
As lessor
Tenant Name Type of
20232022
leased assets
Shanghai JiaxingAutomotive Service Co. Ltd Vehicle 45796707.70 28781100.74
ShenlanAutomotiveTechnology Co. Ltd Building and equipment 27782737.08 129219487.60
ChongqingChang'an Industrial (Group) Co. Ltd Building 3283373.72 6667632.38
Nanjing LingxingTechnologyCo. Ltd Vehicle 2605067.26 89060494.43
ChongqingWanyou Economic Development Co. Ltd Building and land 660932.72 642201.84
ChongqingChang'anMinsheng Logistics Co. Ltd Building and land 541948.47 703167.61
AvitaTechnology (Chongqing) Co. Ltd Vehicle 364393.81
SouthernYingteAir Conditioning Co. Ltd Vehicle 48849.56 67752.21
ChongqingChang'an Real Estate Development Co. Ltd Vehicle 24424.78
221ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
5. Major transactions between theGroup and its related parties (continued)
(2) Lease between related parties (continued)
As lessee
Name of lessor Type of 2023 2022
leased assets Simplified Variable lease Simplified Variable lease
rental fees for payments not InterestIncreased rental fees for payments not Interest Increas
short-term included in the Rent paid expenses usage short-term included in the expenses ed
leases and measurement of on lease rights leases and low measurement Rent paid on lease usage
low value lease liabilities liabilities assets value asset of lease liabilities rights
asset leases assumed leases liabilities assumed assets
Chongqing Chang'anWarehouse 21347779.20 21845685.75
Minsheng Logistics Co. 27741456.55 17233282.09
Ltd
Chongqing Chang'anLand 3245650.70
Property Management 5955322.40
Co. Ltd
5. Major transactions between theGroup and its related parties (continued)
(3) Key management personnel compensation
Projects 2023 2022
Keymanagement personnel compensation 34385715.00 29192727.00
(4) Other related-party transactions
Deposit and loan matters with Ordnance EquipmentGroup Finance Co. Ltd.:
222ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Related parties Related party transaction content 2023.12.31/2023.1-12
Weapon EquipmentGroup FinanceCo. Ltd bank deposit 19926021247.02
Weapon EquipmentGroup FinanceCo. Ltd Collecting interest 210297724.70
Weapon EquipmentGroup FinanceCo. Ltd Commercial acceptance bill 3865904188.47
Weapon EquipmentGroup FinanceCo. Ltd Long term loans 76000000.00
Weapon EquipmentGroup FinanceCo. Ltd Payment of interest and handling fees 6065040.06
Deposit and loan matters with ChanganAutomobile Finance Co. Ltd.:
Related parties Related party transaction content 2023.12.31/2023.1-12
Chang'anAutomobile FinanceCo. Ltd bank deposit 14990000000.00
Chang'anAutomobile FinanceCo. Ltd Collecting interest 287218750.00
6. Amounts due from/to related parties
(1) Accounts receivables
Entry name Related parties 2023 2022
Accounts receivable
Avita Technology (Chongqing) Co. Ltd 674602846.19 320592883.29
Chang'anMazda Automobile Co. Ltd 177061948.01 72378357.38
Chongqing Chang'an Kuayue Vehicle Co. Ltd 23099903.46 39592219.39
Chang'an Automobile Finance Co. Ltd 21019909.48 68199053.80
Maaster Changan Automobile Co. Ltd 16553872.36 37958837.25
223ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Chang'anMazda Engine Co. Ltd 15886858.18 3494661.85
Chongqing Fuji Supply Chain Management Co. Ltd 13934855.12
Changan Ford Motor Co. Ltd 9976923.10 195582372.52
Jiangling Holdings Limited 9791503.74 83513666.55
Chongqing Chang'an Industrial (Group) Co. Ltd 7139838.45 3626628.57
JiangsuWanyou Automobile Sales and Service Co. Ltd 6117845.18
6. Amounts due from/to related parties (continued)
(1) Accounts receivables (continued)
Entry name Related parties 2023 2022
China Ordnance Equipment Group Financial Leasing Co. Ltd 5186975.56 9734968.89
Shanghai Jiaxing Automotive Service Co. Ltd 4300560.00 5181800.00
Chongqing Chang'an Minsheng Logistics Co. Ltd 3269852.16 688099.86
Chongqing wutong Chelian Technology Co. Ltd 1210700.00
Chenzhi (Chengdu) Intelligent Suspension Co. Ltd 497845.97
Nanjing Lingxing Technology Co. Ltd 321563.47 4209516.65
Chongqing Anfu Automobile Marketing Co. Ltd 278200.00
YunnanWanyou Automobile Sales and Service Co. Ltd 121200.00
Chongqing Chang'an Kuayue Vehicle Marketing Co. Ltd 26019.30 31861.79
ChengduWanyou Xiangyu Automobile Sales and Service Co. Ltd 368.00 127548.00
Harbin Dong'an Automotive Engine Manufacturing Co. Ltd 0.02 147532.81
224ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Shenlan Automotive Technology Co. Ltd 3623354650.53
Chongqing Qingshan Industrial Co. Ltd 29579405.37
Jiangling Automobile Co. Ltd 1176831.13
GuizhouWanyou Automobile Sales and Service Co. Ltd 63900.00
China Ordnance Equipment Group Commercial Factoring Co. Ltd 1841.34
6. Amounts due from/to related parties (continued)
(1) Accounts receivables (continued)
Entry name Related parties 2023 2022
Notes receivable Wanyou Automobile Investment Co. Ltd 2618900000.00 3047690000.00
Avita Technology (Chongqing) Co. Ltd 1162667212.07 121822864.29
Chongqing Fuji Supply Chain Management Co. Ltd 70015971.00
YunnanWanyou Automobile Sales and Service Co. Ltd 46000000.00 43000000.00
Chongqing Qingshan Industrial Co. Ltd 48163692.11 40463588.91
Chongqing Chang'an Kuayue Vehicle Co. Ltd 37033400.00
ChongqingWanyou Economic Development Co. Ltd 31000000.00 20250000.00
ChengduWanyou Auto Trade Service Co. Ltd 22500000.00 22500000.00
GuizhouWanyou Automobile Sales and Service Co. Ltd 14200000.00 7300000.00
Harbin Dong'an Automotive Engine Manufacturing Co. Ltd 272292.05 3029467.77
Shenlan Automotive Technology Co. Ltd 1011838777.69
Prepayments
225ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Wutong Chelian Technology Co. Ltd 12438660.30
Shenlan Automotive Technology Co. Ltd 10397480.50
6. Amounts due from/to related parties (continued)
(1) Accounts receivables (continued)
Entry name Related parties 2023 2022
Other receivables
Chongqing Changyu Private Equity Investment Fund Partnership Enterprise
69600000.00
(Limited Partnership)
Chongqing Changxin Zhiqi Private Equity Investment Fund Partnership Enterprise
25500000.00
(Limited Partnership)
Jiangling Holdings Limited 70.00
Weapon Equipment Group Finance Co. Ltd 859049.92
Chongqing Chang'an Minsheng Logistics Co. Ltd 436.57
226ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Amounts due from/to related parties (continued)
(2) Accounts payables
Entry name Related parties 2023 2022
Accounts payable Jiangling Holdings Limited 1354996530.62 1116408615.48
Chongqing Qingshan Industrial Co. Ltd 1161486369.43 153454423.03
Chongqing Naishite Steering System Co. Ltd 460868914.97 278876988.05
Hubei HuazhongMarelli Automotive Lighting Co. Ltd 304497612.19 236096916.60
Chengdu Zhongzi Guangming Catalytic Technology Co. Ltd 288969832.65 32759347.97
Southern Yingte Air Conditioning Co. Ltd 218167579.17 87495633.58
Sichuan Ningjiang Shanchuan Machinery Co. Ltd 217032427.38 11108409.24
Sichuan Jian'an Industry Co. Ltd 209471637.23 40868455.07
Chongqing Dajiang Yapu Automotive Parts Co. Ltd 188849804.56 152806662.74
United Automotive Electronics (Chongqing) Co. Ltd 175204866.08 72864235.98
Chongqing Dajiang Dongyang Plastic Products Co. Ltd 160704720.85 86558622.08
Chenzhi (Chongqing) Brake System Co. Ltd 146361112.11 142620012.97
Chengdu Huachuan Electric Equipment Co. Ltd 133533197.37 41958250.19
Southern Faurecia Automotive Parts Co. Ltd 133412554.27 79576674.87
Nanjing Tiefu Transmission System (Chongqing) Co. Ltd 131979852.57 49148122.03
Harbin Dong'an Automotive Engine Manufacturing Co. Ltd 112601705.64 99563867.81
Era Chang'an Power Battery Co. Ltd 95181872.65
Harbin Dong'an Automotive Power Co. Ltd 82269854.10 103616123.17
227ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name Related parties 2023 2022
Chongqing Dajiang National Precision Machinery Manufacturing Co. Ltd 80230007.07 6417935.77
Hunan TianyanMachinery Co. Ltd 62751647.18 143359.78
Chongqing Construction Transmission Technology Co. Ltd 53190098.24 18773538.36
Chongqing Lingchuan Automotive Parts Manufacturing Technology Co. Ltd 44644512.83 25869763.88
Chongqing Shangshang Automotive Parts Co. Ltd 32922573.42 13575599.30
Hubei Xiaogan Huazhong Car Lamp Co. Ltd 30315072.22 19359970.66
ChengduWanyou Filter Co. Ltd 23915398.04 14115700.51
Chongqing Yihong Defense Technology Co. Ltd 22446756.72 4247025.85
Chongqing Construction Tongda Industrial Co. Ltd 21293902.87 11268342.31
Chengdu Lingchuan Automotive Fuel Tank Co. Ltd 18306736.20 8056699.53
Chongqing Construction Automotive Air Conditioner Co. Ltd 15466830.30 10360465.69
Chongqing Chang'an Minsheng Logistics Co. Ltd 12682710.95 12696301.88
Chongqing Qingshan Transmission Sales Co. Ltd 11834165.78 10199151.11
ChongqingWanyou Economic Development Co. Ltd 7393900.62 757763.87
Chongqing Jianshe Hanang Automotive Thermal Management System Co. Ltd 5633908.16 2388277.76
Longchang ShanchuanMachinery Co. Ltd 4292608.83 1759775.48
Chongqing wutong Chelian Technology Co. Ltd 3636473.60
228ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Chongqing Dajiang Yuqiang Plastic Products Co. Ltd 3588068.59 496894.20
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name Related parties 2023 2022
Wutong Chelian Technology Co. Ltd 1781815.70 4301349.18
Chongqing Chang'an Intelligent Industrial Technology Service Co. Ltd 1443978.00
Chenzhi (Chengdu) Intelligent Suspension Co. Ltd 1220521.72 1358424.58
China Changan Automobile Group Co. Ltd 1040003.18
Avita Technology (Chongqing) Co. Ltd 914385.00
Chongqing Chang'an Industrial (Group) Co. Ltd 601675.65 236355.17
Avita (Chongqing) Automobile Sales and Service Co. Ltd 587070.80
Chongqing Construction Industry (Group) Co. Ltd 575587.79
Chongqing Dajiang Jiexin Forging Co. Ltd 421518.30 312203.77
Construction Industry Group (Yunnan) Co. Ltd 327412.94 4210156.64
Chengdu Jialing Huaxi Optics and Precision Machinery Co. Ltd 242083.74 559576.76
Beijing Beiji Electromechanical Industry Co. Ltd 141911.64 3165.30
Chongqing Jialing Yimin Special Equipment Co. Ltd 104496.50 104496.50
Chengdu Lingchuan Special Industry Co. Ltd 101585.16 220175.48
Tiannake Lingchuan (Chongqing) Exhaust System Co. Ltd 93157.04 5380229.34
Chongqing Construction Electromechanical Co. Ltd 47265.91 47265.91
229ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Li Er Chang'an (Chongqing) Automotive Systems Co. Ltd 41271.92 109342564.03
Chongqing Xiyi Automobile Connecting Rod Co. Ltd 38422.14 38422.14
Shanghai Jiaxing Automotive Service Co. Ltd 32771.36
ChongqingWanyou Xingjian Automobile Sales and Service Co. Ltd 20842.80 20842.80
Hangzhou Chelizi Intelligent Technology Co. Ltd 12350.00 12350.00
Hafei Automobile Co. Ltd 344.04 344.04
Shenlan Automotive Technology Co. Ltd 822638571.39
Chang'an Laisi (Chongqing) Robot Intelligent Equipment Co. Ltd 8537490.14
Changan Ford Motor Co. Ltd 1878695.33
Southwest Ordnance Industry Chongqing Environmental Protection Research
963651.26
Institute Co. Ltd
Chongqing Automotive Air Conditioner Co. Ltd 205041.51
Chongqing Dajiang Xinda Vehicle Co. Ltd 56251.08
Chongqing Chang'an Kuayue Vehicle Co. Ltd 1382.56
Chongqing Changfeng Jiquan Machinery Co. Ltd 1340.91
ChengduWanyou Auto Trade Service Co. Ltd 250.00
Notes payable
Chongqing Qingshan Industrial Co. Ltd 1723679349.53 1078658254.05
230ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name Related parties 2023 2022
Jiangling Holdings Limited 1047608994.41 59248188.59
Chongqing Chang'an Minsheng Logistics Co. Ltd 443503065.10 300858223.58
Chongqing Naishite Steering System Co. Ltd 403879297.14 327738252.79
Southern Yingte Air Conditioning Co. Ltd 243848518.33 130650474.98
Chongqing Dajiang Dongyang Plastic Products Co. Ltd 241360000.00 145840000.00
Harbin Dong'an Automotive Engine Manufacturing Co. Ltd 234620000.00 197280000.00
Chongqing Dajiang Yapu Automotive Parts Co. Ltd 215540000.00 175450000.00
Nanjing Tiefu Transmission System (Chongqing) Co. Ltd 122855842.38 98250000.00
Hubei HuazhongMarelli Automotive Lighting Co. Ltd 122400000.00 139690000.00
Chongqing Lingchuan Automotive Parts Manufacturing Technology Co. Ltd 113510000.00 80530000.00
Southern Faurecia Automotive Parts Co. Ltd 107251528.51 36370000.00
Chengdu Zhongzi Guangming Catalytic Technology Co. Ltd 102880000.00 560000.00
Hunan TianyanMachinery Co. Ltd 97750000.00 630000.00
Sichuan Ningjiang Shanchuan Machinery Co. Ltd 80902422.85 60759442.02
Chongqing Jianshe Hanang Automotive Thermal Management System Co. Ltd 77160000.00 82600000.00
231ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Chenzhi (Chongqing) Brake System Co. Ltd 73980457.72 118961825.13
ChengduWanyou Filter Co. Ltd 51120000.00 34373849.84
Tiannake Lingchuan (Chongqing) Exhaust System Co. Ltd 44930000.00 32530000.00
Chongqing Shangshang Automotive Parts Co. Ltd 41023156.32 33869017.86
Hubei Xiaogan Huazhong Car Lamp Co. Ltd 35788907.01 15650000.00
Chongqing Yihong Defense Technology Co. Ltd 26870000.00 19560000.00
Chongqing Construction Tongda Industrial Co. Ltd 15579467.79 10640000.00
Chongqing Construction Automotive Air Conditioner Co. Ltd 14260000.00 20050000.00
Harbin Dong'an Automotive Power Co. Ltd 11090000.00 59090000.00
Southwest Ordnance Industry Chongqing Environmental Protection Research 10355405.72
Institute Co. Ltd
Longchang ShanchuanMachinery Co. Ltd 6670000.00 6140145.72
Chongqing Construction Transmission Technology Co. Ltd 5667059.25 1314548.20
Sichuan Jian'an Industry Co. Ltd 4757300.00
Chengdu Lingchuan Automotive Fuel Tank Co. Ltd 2640000.00
Chongqing Dajiang Jiexin Forging Co. Ltd 340000.00 1090000.00
Shenlan Automotive Technology Co. Ltd 293766946.00
Chongqing Dajiang National Precision Machinery Manufacturing Co. Ltd 7765999.95
Chengdu Jialing Huaxi Optics and Precision Machinery Co. Ltd 950000.00
232ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name Related parties 2023 2022
Other payables
Chongqing Chang'an Minsheng Logistics Co. Ltd 500998344.99 392075910.69
Chongqing Qingshan Industrial Co. Ltd 18225258.51 7868918.85
JiangsuWanyou Automobile Sales and Service Co. Ltd 12433698.10 4970000.00
Shanghai Jiaxing Automotive Service Co. Ltd 10098882.10
ChongqingWanyou Economic Development Co. Ltd 9733185.00 7660147.80
ChengduWanyou Xiangyu Automobile Sales and Service Co. Ltd 9558725.84 7732620.00
YunnanWanyou Automobile Sales and Service Co. Ltd 7847297.00 10068122.20
Chang'an Laisi (Chongqing) Robot Intelligent Equipment Co. Ltd 7439420.93 917118.52
Chongqing Chang'an Construction Engineering Co. Ltd 7120158.39 26391448.08
Southwest Ordnance Industry Chongqing Environmental Protection Research
6567229.16
Institute Co. Ltd
China Changan Automobile Group Tianjin Sales Co. Ltd 4967547.10 3729000.00
GuizhouWanyou Automobile Sales and Service Co. Ltd 4854300.00 4007517.20
Chongqing Chang'an Property Management Co. Ltd 4291910.22 1935184.57
Chongqing Chang'an Intelligent Industrial Technology Service Co. Ltd 4000701.62 4404413.09
233ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name Related parties 2023 2022
Southern Yingte Air Conditioning Co. Ltd 3885605.94 1567432.39
ChengduWanyou Automobile Sales and Service Co. Ltd 3200000.00 790000.00
Southern Faurecia Automotive Parts Co. Ltd 2292829.98
Ya'an Wanyou Automobile Sales and Service Co. Ltd 2100513.14 2063900.00
ChengduWanyou Auto Trade Service Co. Ltd 2041261.84 3607415.80
Sichuan Jian'an Industry Co. Ltd 1670420.64 2101400.49
Chongqing Naishite Steering System Co. Ltd 1238092.98
ChengduWanyou Filter Co. Ltd 939532.50 1266573.71
Anhui Wanyou Automobile Sales and Service Co. Ltd 938180.00 1475600.00
Chongqing Chang'an Industrial (Group) Co. Ltd 875856.10 2960859.38
Changan Ford Motor Co. Ltd 752549.61
ChongqingWanyou Ducheng Automobile Sales and Service Co. Ltd 737780.00 1096014.24
Chongqing Lingchuan Automotive Parts Manufacturing Technology Co. Ltd 681921.10 219898.32
ChongqingWanyou Xingjian Automobile Sales and Service Co. Ltd 441740.00 400000.00
Hubei HuazhongMarelli Automotive Lighting Co. Ltd 411875.16
Chengdu Huachuan Electric Equipment Co. Ltd 237375.50 173206.40
234ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name Related parties 2023 2022
Chengdu Zhongzi Guangming Catalytic Technology Co. Ltd 229627.31
LuzhouWanyou Automobile Service Co. Ltd 221800.00 129140.00
Chongqing Shangshang Automotive Parts Co. Ltd 215604.00 1113793.54
ChongqingWanyou Zunda Automobile Sales and Service Co. Ltd 213235.41
Beijing North Changfu Automobile Sales Co. Ltd 200000.00
United Automotive Electronics (Chongqing) Co. Ltd 159089.20 3439700.00
ChongqingWanyou Chengxing Automobile Sales and Service Co. Ltd 120000.00
Chongqing Dajiang Xinda Vehicle Co. Ltd 100000.00 150000.00
Chongqing Dajiang National Precision Machinery Manufacturing Co. Ltd 99087.65
Nanjing Tiefu Transmission System (Chongqing) Co. Ltd 89598.75
Chongqing Construction Transmission Technology Co. Ltd 88358.88
Sichuan Ningjiang Shanchuan Machinery Co. Ltd 84283.54
Chenzhi (Chongqing) Brake System Co. Ltd 81873.02 293868.55
China Ordnance Newspaper 44850.00
Hunan TianyanMachinery Co. Ltd 21696.00 1235044.80
Chongqing Dajiang Yapu Automotive Parts Co. Ltd 17514.74 10855.59
235ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name Related parties 2023 2022
Harbin Dong'an Automotive Engine Manufacturing Co. Ltd 12665.04 203155.92
Dali Wanfu Automobile Sales and Service Co. Ltd 1691.00
Chongqing Construction Tongda Industrial Co. Ltd 1343.94 33787.00
Chongqing Yihong Defense Technology Co. Ltd 159.91
Shenlan Automotive Technology Co. Ltd 113039584.99
Chongqing Dajiang Dongyang Plastic Products Co. Ltd 1423800.00
Chongqing Anfu Automobile Marketing Co. Ltd 200000.00
Construction Industry Group (Yunnan) Co. Ltd 148030.00
China Changan Automobile Group Hefei Investment Co. Ltd 106890.47
Harbin Dong'an Automotive Power Co. Ltd 106468.60
Jiangling Holdings Limited 47703.40
Hubei Xiaogan Huazhong Car Lamp Co. Ltd 27828.32
ChengduWanyou Trading Co. Ltd 11391.20
PanzhihuaWanyou Automobile Sales and Service Co. Ltd 4550.30
China Changan Automobile Group Co. Ltd 1000.00
236ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name Related parties 2023 2022
Contract liabilities
ChengduWanyou Xiangyu Automobile Sales and Service Co. Ltd 110584225.04 64279954.50
ChongqingWanyou Zunda Automobile Sales and Service Co. Ltd 89057725.73 74694999.66
GuizhouWanyou Automobile Sales and Service Co. Ltd 68070242.12 96702773.24
ChongqingWanyou Economic Development Co. Ltd 62975674.47 124667991.83
YunnanWanyou Automobile Sales and Service Co. Ltd 55836423.36 49769852.59
JiangsuWanyou Automobile Sales and Service Co. Ltd 26589072.67 58420002.39
Wanyou Automobile Investment Co. Ltd 23183182.96 47689212.74
ChengduWanyou Auto Trade Service Co. Ltd 16498448.61 18393074.44
Anhui Wanyou Automobile Sales and Service Co. Ltd 9994433.27 12540522.24
ChongqingWanyou Zhicheng Automobile Sales and Service Co. Ltd 9803782.94
China Changan Automobile Group Tianjin Sales Co. Ltd 8118237.92 33057138.53
Maaster Changan Automobile Co. Ltd 6452463.66 5213676.57
Avita Technology (Chongqing) Co. Ltd 970882.61 5832549.46
Chang'an Automobile Finance Co. Ltd 606371.68 685200.00
237ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Hafei Automobile Co. Ltd 417648.22 471942.49
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name Related parties 2023 2022
ChengduWanyou Automobile Sales and Service Co. Ltd 345372.38 101869.64
Chongqing Chang'an Minsheng Logistics Co. Ltd 271047.12 416441.17
ChongqingWanyou Ducheng Automobile Sales and Service Co. Ltd 207654.20 373179.91
Ya'an Wanyou Automobile Sales and Service Co. Ltd 112302.96 75083.25
ChongqingWanyou Xingjian Automobile Sales and Service Co. Ltd 66275.60 155719.35
LuzhouWanyou Automobile Service Co. Ltd 54775.96 91342.25
Dali Wanfu Automobile Sales and Service Co. Ltd 46416.87 3486.06
BazhongWanyou Automobile Sales and Service Co. Ltd 44625.20 50426.48
PanzhihuaWanyou Automobile Sales and Service Co. Ltd 32689.44 16305.41
ChengduWanyou Trading Co. Ltd 15049.38 18900.00
China Changan Automobile Group Hefei Investment Co. Ltd 9091.15 10273.00
Chongqing Shangshang Automotive Parts Co. Ltd 3522.12 12979.98
YunnanWanxing Automobile Sales and Service Co. Ltd 87.61 6816.00
Changan Ford Motor Co. Ltd 0.32 493954.43
Jiangling Holdings Limited 6854200.00
238ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Chongqing Anfu Automobile Marketing Co. Ltd 149000.00
6. Amounts due from/to related parties (continued)
(2)Accounts payables(continued)
Entry name
Related parties 2023 2022
Guangxi Wanyou Automobile Sales and Service Co. Ltd 302.40
239ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
XIII Share-based payments
Granting objects All equity instruments unlocked in this period All equity instruments that have expired in this period
Quantity (10000 shares) amount Quantity (10000 shares) amount
employees 51641739.00 199366029.42 4510389.00 18591901.33
Equity-settled share payments are as follows:
20232022
Accumulated amount of equity-settled
share-based payments included in capital
reserve 1011326167.92 648749767.92
Equity-settled share-based payments recognized
as expenses 362576400.00 380209900.00
XIV Contingencies and commitments
1. Commitments
Contracted but not provided for
20232022
Capital commitments 11619677925.31 11675534857.57
Investment commitments 1132500000.00 1782940000.00
Total 12752177925.31 13458474857.57
XV Events after the balance sheet date
1. The dividends after balance sheet date
The profit distribution plan for 2023 is based on the total share capital of 9917289033 shares a
cash dividend of 3.43 yuan (including tax) will be distributed to all shareholders for every 10
shares without converting the reserve fund into share capital.XVI Other important event
Capital management:
20232022
liabilities 115487870299.24 83099751390.43
Less: Cash and cash equivalents 63925957901.11 52491435047.74
240ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Adjusted net liabilities 51561912398.13 30608316342.69
Owner's equity 74683256839.03 62949316684.82
Adjusted debt/capital ratio 69.04% 48.62%
XVII Notes to the Company’s financial statements
1. Accounts Receivable
(1) Aging analysis of accounts receivable as at 31 December 2023 is as follows:
20232022
Less than 1 year (including 1 year) 7757039345.74 444506829755
1 to 2 years (including 2 years) 462977782 99770597380
2 to 3 years (including 3 years) 713934590.78
Over 3 years 172295427.89 213.599440.84
8647.899142235656373712.19
Less：Provision (68395117.00) (117868890.37)
8579504025.235538504821.82
(2) Analysis of the accounts receivable by category as at 31 December 2023 is as follows:
2023
Balance Provision
Amount % Amount %
Individually analyzed provision 8521036971.35 98.53 37652846.20 0.44
Provision for bad debts based on credit risk
characteristics 126862170.88 1.47 30742270.80 24.23
Total 8647899142.23 100.00 68395117.00
2022
Balance Provision
Amount % Amount %
Individually analyzed provision 5137221177.03 90.82 76252846.20 1.48
Provision for bad debts based on credit risk
characteristics 519152535.16 9.18 41616044.17 8.02
Total 5656373712.19 100.00 117868890.37
(3) Accounts receivable was analyzed for provision by expected credit loss model:
241ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
20232022
Balance amount % Provision Balance amount % Provision
Within 1 year 92354390.53 0.23 212524.43 452608491.21 0.89 4009679.22
1 to 2 years 2924698.66 4.54 132902.58 30625665.06 7.23 2214135.18
2 to 3 years - - - - - -
Over 3 years 31583081.69 96.24 30396843.79 35918378.89 98.54 35392229.77
Total 126862170.88 30742270.80 519152535.16 41616044.17
(4) Movements of provision for accounts receivable are as follows:
Beginning balance Provision Write-off Ending balance
2023117868890.3710873773.3738600000.0068395117.00
2022102237112.4217018007.911386229.96-117868890.37
(5) As at 31 December 2023 accounts receivable from top 5 clients amounted to RMB
6094777237.45 accounted for 70.48% of the total amount.
2. Other receivables
sports event 2023 2022
Other receivables 237247787.26 859026748.64
237247787.26859026748.64
total
(1) Aging analysis of other receivables as at 31 December 2023 is as follows:
20232022
Within 1 year 231794668.72 842446117.27
1 to 2 years 3543202.13 7116112.63
2 to 3 years 1987846.67 1226346.51
Over 3 years 6930932.77 15300830.26
244256650.29866089406.67
Less：Provision (7008863.03) (7062658.03)
Total 237247787.26 859026748.64
(2) Disclosure of bad debt accrual method by category:
2023
Balance Provision
Amount % Amount %
242ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Individually analyzed provision 173323245.26 70.96 6842932.77 3.95
Provision for bad debts based on credit risk
characteristics 70933405.03 29.04 165930.26 0.23
Total 244256650.29 100.00 7008863.03
2022
Balance Provision
Amount % Amount %
Individually analyzed provision 777670023.39 89.79 6842932.77 0.88
Provision for bad debts based on credit risk
characteristics 88419383.28 10.21 219725.26 0.25
Total 866089406.67 100.00 7062658.03
Accounts receivable was analyzed for provision by expected credit loss model:
2023
Balance amount % Provision
Within 1 year 65487628.14 0.03 16272.65
1 to 2 years 3483169.23 0.52 18256.09
2 to 3 years 1874607.66 3.62 67913.39
Over 3 years 88000.00 72.15 63488.13
Total 70933405.03 165930.26
(3) Provision for bad debts
Phase I Phase II Phase III
Expected credit
Expected credit
Expected credit losses for the
provision for bad debts losses over lifetime add up the total
losses for the entire duration
(credit impairment
next 12 months (no credit
incurred)
impairment)
Prior year-end balance 219725.26 6842932.77 7062658.03
Balance at the end of the
previous year for the
current period
--Transfer to Phase II
--Transferred to phase III
--Transfer back to phase
II
--Return to phase I
Provision for the current
period
Reversal during the
period 53795.00 53795.00
Write-offs during the
period
243ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Phase I Phase II Phase III
Expected credit
Expected credit
provision for bad debts Expected credit losses for the losses over lifetime add up the total
losses for the entire duration
(credit impairment
next 12 months (no credit
incurred)
impairment)
Write-offs during the
period
Other changes
Closing balance 165930.26 6842932.77 7008863.03
The movement in the carrying amount of other receivables is shown below:
Phase I Phase II Phase III
Expected credit Expected credit
Carrying amount Expected credit losses losses for the losses over add up the total
for the next 12 entire duration lifetime (credit
months (no credit impairment
impairment) incurred)
Prior year-end
balance 859246473.90 6842932.77 866089406.67
Balance at the end
of the previous year
for the current
period
--Transfer to Phase
II
--Transferred to
phase III
--Transfer back to
phase II
--Return to phase I
Additions during the
period 5814416518.24 5814416518.24
Derecognition
during the period 6436249274.62 6436249274.62
Other changes
Closing balance 237413717.52 6842932.77 244256650.29
(4) Movements of provision for accounts receivable are as follows:
Beginning balance Provision Reversal Ending balance
20237062658.0353795.00-7008863.033
20227219239.96-156581.937062658.03
244ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
(5) Analysis of other receivables by nature is as follows:
20232022
Prepaid equity investment 109286581.45 399486432.52
Energy-saving and new energy subsidy 31782936.00 338394118.63
Pretty cash 69048305.62 63139873.12
Internal transactions 25410795.04 32946539.47
Others 8728032.18 32122442.93
Total 244256650.29 866089406.67
(6) Other receivables with the top five closing balances aggregated by party owed，As at 31
December 2023 the top five closing balances of other receivables totalled RMB
154619333.48 representing 63.30% of the total closing balance of other receivables.
245ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
3. Long-term investments
(1) Investments in subsidiaries
Increase/decrease during the period
Impairment provision
Provision for Closing balance ofinvestee Prior year-end balance Prior year-end Reduced Closing balance
balance Additional investments impairment for the rest
provision for impairment
investment
the period
Hefei Chang'an Automobile Co.Ltd. 1535367765.23 1535367765.23
Chongqing ChanganAutomobile International Sales
203068581.00979000000.001182068581.00
& ServiceCo.Ltd.Chongqing Chang'an KaichengAutomotive
Technology Co.Ltd 977793971.55 977793971.55
Chongqing SuzuyoAutomobile Co.Ltd. 594949059.30 594949059.30
Nanjing Chang'anAutomobile Co.Ltd. 422183259.00 422183259.00
Chang'an Automobile Russia Co.Ltd. 251242589.15 251242589.15
ChanganAutomobile UK R&DCentre LLP 250093850.95 250093850.95
ChanganAutomobile Investment (Shenzhen)
Co.Ltd. 237889511.00 237889511.00
Chongqing Chang'an European DesignCentre
155469913.50155469913.50
Co.Ltd.Chongqing Chang'an Automobile Software
99000000.0099000000.00
Technology Co.Ltd.Chongqing Chang'an TechnologyCo.Ltd. 90000000.00 90000000.00
246ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Increase/decrease during the period
Impairment provision
Closing balance of
investee Prior year-end balance Prior year-end Provision forReduced Closing balance provision for impairment
balance Additional investments impairment for the restinvestment
the period
Chongqing Chang'an Auto LinkTechnologyCo.Ltd. 88500000.00 88500000.00
Nanjing Changan New EnergyVehicle Sales &
50000000.0050000000.00
ServiceCo.Ltd.Chongqing Zhilai Dadao New Energy Co.Ltd. 49194195.00 49194195.00 49194195.00 49194195.00
Chongqing ChanganAutomobile Customer Service
29700000.0029700000.00
Co.Ltd
Chongqing Chang'anhangAutomobile Co.Ltd. 20000000.00 20000000.00
Deep BlueAutomotiveTechnologyCo.Ltd. 1655606604.29 1655606604.29
Chang'an American R&DCentre Co.Ltd. 10243460.00 10243460.00
Chongqing ChehemeiTechnology Co.Ltd. 10000000.00 10000000.00
Guangzhou Changan NewEnergyVehicle Sales &
4000000.004000000.00
ServiceCo.Ltd.Chongqing Chang'an Special PurposeVehicle
2500000.002500000.00
Co.Ltd.XiamenChangan New EnergyVehicle Sales &
2000000.002000000.00
ServiceCo.Ltd.Chongqing Anyi AutomobileTechnical Service
Co.Ltd. 2000000.00 2000000.00
Chang'an Japan DesignCentre Co.Ltd. 1396370.15 1396370.15
BeijingChang'an Automobile Engineering &
1000000.001000000.00
Technology Research Co.Ltd.Hebei Changan Automobile Co.Ltd 350000.00 350000.00
Chang'an Automobile SoutheastAsia Co.Ltd. 3.00 3.00
247ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Increase/decrease during the period
Impairment provision
Closing balance of
investee Prior year-end balance Prior year-end Provision forReduced Closing balance
balance Additional investments impairment for the rest
provision for impairment
investment
the period
ChanganAutomotive Parts (Thailand) Co.Ltd. 3.00 3.00
ChanganAutomobile Sales (Thailand) Co.Ltd. 3.00 3.00
Total 5067942525.83 49194195.00 999000009.00 1655606604.29 7722549139.12 49194195.00
248ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
(2) Investments in associates joint ventures
Increase/decrease during the period
Closing
Impairment balance
Redu make
provision of
Prior year-end ced Gains and losses on Adjustments provisio
investee Prior
Declaration of
balance Additional inves investments to other Other changes cash dividends or n for Closing balance provision
year-end investments the restrecognised under comprehensiv in equity for
balance tmen profits impairthe equity method e income impairme
t ment
nt
1. Joint ventures
Nanchang Jiangling Investment
1810629644.86297030927.25(1454051.91)2106206520.20
Co.Ltd.Chang'an Mazda Motor Corporation 1433304456.32 (555064964.19) 878239492.13
Changan Mazda Engine Co.Ltd. 824042049.05 10463657.35 (29500000.00) 805005706.40
Changan Ford Motor Company Ltd. 712459351.85 (712459351.85)
Subtotal 4780435502.08 (960029731.44) (1454051.91) (29500000.00) 3789451718.73
2. Associated enterprises
ChanganAutomobile Finance
2778898410.33350378027.17(87883463.64)3041392973.86
Co.Ltd.Nanjing Link Equity Investment
2570421464.7075371861.992645793326.69
Partnership (Limited Partnership)
CACChuangzhiTechnologyCo.Ltd. 168492790.78 300000000.00 (19977570.24) 448515220.54
Chongqing Chang'an Crossing 209768936.34 18996315.30 228765251.64
VehicleCo.Ltd.Chongqing Changxin Zhiqi Private
Equity Investment Fund Partnership 170440054.08 37711000.00 (3632657.70) 204518396.38
(Limited Partnership)
TimesChangan Power Battery
152000000.00(19362367.72)132637632.28
Co.Ltd.Chongqing Longline Intelligent
102000000.001217635.38103217635.38
Technology Co.Ltd.Chongqing Chang'an Innovation
Private Equity Investment Fund 1000844.59 69230769.00 (127139.60) 70104473.99
Partnership (Limited Partnership)
Changan Ford New EnergyVehicle
100000000.00(32286335.07)67713664.93
Co.Ltd.Anhe Chongqing Dingfeng
Automobile Contractual Private 61568706.08 123646.33 61692352.41
Equity Fund
249ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
Increase/decrease during the period
Closing
Impairment balance
Redu make
provision
Prior year-end ced
Gains and losses on Adjustments
Declaration of provisio
of
investee Prior Additional investments to other Other changes Closing balance provision
balance inves cash dividends or n for the rest
year-end investments recognised under comprehensiv in equity for
tmen profits impair
balance the equity method e income impairme
t ment
nt
HunanGuoxin Semiconductor
25452425.263049806.8328502232.09
Technology Co.Ltd.Nanjing Link Equity Investment
1112210.69(4810.57)1107400.12
Management Co.Ltd.Nanjing Chelai Travelling
624773.31(39948.66)584824.65
Technology Co.Ltd.AvitaTechnology (Chongqing)
1228287241.131229820000.00(1525530933.78)5521666.21938097973.56
Co.Ltd.Deep BlueAutomotiveTechnology
Co.Ltd. 369885426.05 1331621441.70 (45900263.46) (1655606604.29)
Subtotal
7585953283.343322383210.70(1197724733.80)5521666.21(87883463.64)(1655606604.29)7972643358.52
Total 12366388785.42 3322383210.70 (2157754465.24) (1454051.91) 5521666.21 (117383463.64) (1655606604.29) 11762095077.25
250ChongqingChanganAutomobile Company Limited
Notes to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan)
4. Operating revenue and cost
20232022
Revenue Cost Revenue Cost
Primary Operation 111283143529.64 95058222527.07 99659461376.20 83039189231.43
Other Operation 7414890253.13 3451631559.23 7005683913.08 3202290576.52
Total 118698033782.77 98509854086.30 106665145289.28 86241479807.95
5. Investment income/loss
20232022
Long-term equity investment income
accounted for by the cost method 722850000.00 653072387.00
Long-term equity investment income/(loss)
accounted for by the equity method (2157754465.24) (3075237898.94)
The investment income of financial asset held for trading
during its holding period 1406842.07 3289610.51
Dividend income from remaining investments in
other equity instruments 206042574.04 160088164.16
Investment income from disposal of long-term equity
investments 1.00 (1805399.76)
Gains from the remeasurement of the remaining equity at
fair value after the loss of control 337514571.42
Others 3223611.10 -
Total (1224231437.03) (1923078565.61)
251ChongqingChanganAutomobile Company Limited
Supplementary Information to Financial Statement
Year ended 31 December 2023
(Expressed in RenminbiYuan) Supplementary information
XVIIINotes to the Company’s financial statements
1. Schedule of non-recurring profit and loss
2023
Non-current asset disposal gains and losses (including the write-off portion of the
asset impairment provision) 441000628.40
Government subsidies included in the current profit and loss (closely related to the
business of the enterprise except for government subsidies that
are fixed or quantified according to the national unified standard) 1463381979.58
Interest on late payment of funds charged to non-financial enterprises 66074620.29
In addition to the effective hedging business related to the company's normal
business operations the fair value changes in gains and losses
arising from holding trading financial assets -955029.68
Reversal of impairment provision for accounts receivable that are tested separately
for impairment 21286713.50
Other non-operating income and expenses other than the above 141715255.35
Business combination 5021482128.74
Other 673232447.45
Income tax impact -255466128.30
Minority shareholders' equity impact (after tax) -26136331.29
Total 7545616284.04
2. Return on equity and earnings per share
2023
Weighted average Earnings per share
return on equity
(%) Basic EPS Diluted EPS
Net profit attributable to the Company’s ordinary
shareholders 16.55 1.15 1.13
Net profit attributable to the Company’s ordinary
shareholders after deducting non-recurring profit and
loss 5.53 0.38 0.38
252
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