Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report August 2023Chongqing Changan Automobile Company Limited 2023 Semi-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 Chen Jianfeng the person-in-charge of the accounting organ hereby guarantee that the financial statements carried in this Report are factual accurate and complete. 3. All the directors have attended the board meeting for reviewing this Report. 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. For the first half of 2023 the Company has no plans of cash dividend no bonus shares and no share converted from capital reserve.This Report has 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 Semi-Annual Report CONTENTS Chapter 1 Important Notice Contents and Definition... 1 Chapter 2 Company Profile and Main Financial Index... 4 Chapter 3 Management Discussion and Analysis ........ 8 Chapter 4 Corporate Governance ..................... 26 Chapter 5 Environment and Social Responsibility .... 29 Chapter 6 Important Matters ........................ 42 Chapter 7 Changes in the Shareholding of the Compa.. 47 Chapter 8 Preferred Shares ......................... 53 Chapter 9 Bonds .................................... 54 Chapter 10 The Financial Statements ................ 56 2Chongqing Changan Automobile Company Limited 2023 Semi-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. 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.Definitions Items Definitions Changan Auto Changan Refers to Chongqing Changan Automobile Co. Ltd.Automobile the Company CSG Refers to China South Industries Group Corporation the Company’s actual controller China Changan Automobile Group Co. Ltd. formerly known as China South China Changan Refers to Industries Automobile Co. Ltd. a subsidiary company of CSG Chongqing Changan Industry (Group) Co. Ltd. formerly known as Changan Changan Industry Refers to Automobile (Group) Co. Ltd. a subsidiary company of CSG Nanjing Changan Refers to Nanjing Changan Automobile Co. Ltd. a subsidiary company of the Company Hebei Changan Refers to Hebei Changan Automobile Co. Ltd. a subsidiary company of the Company Hefei Changan Refers to Hefei Changan Automobile Co. Ltd. a subsidiary company of the Company Changan Bus Refers to Baoding Changan Bus Co. Ltd. a subsidiary company of the Company Kaicheng Automobile Refers to Kaicheng Automobile Technology Co. Ltd. a subsidiary company of the Company Chongqing Changan Automobile International Sale Service Co. Ltd. a subsidiary CIC Refers to 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 South CSG Finance Refers to Industries UPI Refers to United Prosperity Investment Co. Ltd. a subsidiary company of China Changan Changan Technology Refers to Chongqing Changan Technology Co. Ltd. a subsidiary company of the Company Deepal Auto Refers to Deepal Automobile Technology Co. Ltd. a subsidiary company of the Company Avatr Refers to Avatr Technology (Chongqing) Co. Ltd. an associate of the Company 3Chongqing Changan Automobile Company Limited 2023 Semi-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 in Chinese重庆长安汽车股份有限公司 name Company abbreviation in长安汽车 Chinese name Company name in Chongqing Changan Automobile Co. Ltd.English Legal representative Zhu Huarong 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.Contact address Dongshengmen Road Jiangbei District 61 Dongshengmen Road Jiangbei Chongqing District Chongqing TEL 023-67594008 023-67594008 FAX 023-67870261 023-67870261 E-mail address cazqc@changan.com.cn jiezh@changan.com.cn III. Others 1. Contact information Whether registration address office address and its post code as well as website and email of the Company changed in the reporting period or not □ Applicable √ Not applicable The registration address office address and post code as well as website and email of the Company did not change in the reporting period. See more details in Annual Report 2022. 2. Information disclosure and preparation place Whether information disclosure and preparation place changed in reporting period or not 4Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report □ Applicable √ Not applicable The newspaper appointed for information disclosure the website for the publishment of the semi-annual report appointed by CSRC and the preparation place for semi-annual report did not change in the reporting period. See more details in Annual Report 2022. 3. Other relevant information Whether other relevant information changed in the reporting period or not □ Applicable √ Not applicable IV. Key Accounting Data and Financial Indexes Does the Company need to retrospectively adjust or restate the accounting data of previous years □Yes √ No The reporting period The same period of last year YoY change (%) Operating revenue (RMB) 65492098869.01 56573568393.71 15.76% Net profit attributable to shareholders of 7652979346.805857626135.7830.65% the Company (RMB) Net profit after deduction of non-recurring gains or losses attributable to shareholders 1509058024.00 3100113819.34 -51.32% of the Company(RMB) Net cash flow from operating activities 6955456713.595852236420.2018.85% (RMB) Basic earnings per share (RMB/share) 0.78 0.60 30.00% Diluted earnings per share (RMB/share) 0.76 0.59 28.81% Weighted average ROE (%) 11.70% 10.06% 1.64% 30 June 2023 31 December 2022 YoY change (%) Total assets (RMB) 174992803677.92 146048555951.92 19.82% Net assets attributable to shareholders of 67951132340.7362858105705.708.10% the Company (RMB) V. 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 5Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 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 VI. Items and Amounts of Non-Recurring Gains and Losses √ Applicable □ Not applicable Unit: RMB Item Amount Illustration Non-recurring items and amounts (including accrued 366667730.28 reversal assets impairment part) Government subsidies included in the profit and loss of the current period (Except closely related to business operations in accordance with the national 856008089.78 unified standard quota or quantitative enjoyment of government subsidies) Capital occupation fees charged to non-financial 17949915.40 enterprises included in the current profit and loss In addition to the effective hedging business related to the normal business of the company the gains and losses from changes in fair value arising from the holding of trading financial assets derivative financial assets trading financial liabilities derivative financial -23334661.15 liabilities and disposal of transactional financial assets derivative finance Investment income from assets trading financial liabilities derivative financial liabilities and other debt investments The company formed a business merger under non common control through additional investment in the original joint venture Deepal Automobile Technology Co. Ltd. (hereinafter referred to as "Deepal Automobile" formerly Chongqing Changan New Energy Automobile Income from business combinations not under Technology Co. Ltd.) as detailed in the 5021482128.74 common control "Announcement on the Acquisition of Partial Equity of Changan New Energy" (Announcement No. 2022-78). The transaction completed the equity delivery procedures on February 1 2023.Please refer to the "Progress Announcement on Acquiring Partial Equity of Changan New Energy" (Announcement No. 2023-05) for 6Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 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.Other non-operating income and expenses other than 79796614.79 the above items Subtract: Influenced amount of income tax 171307435.24 Influenced amount of minority shareholders’ equity 3341059.80 (after tax) Total 6143921322.80 -- Explanation of why the Company reclassifies recurrent gain/loss as an Extraordinary 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. 7Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Chapter 3 Management Discussion and Analysis I. The main business of the Company in the reporting period 1. Business overview As an automobile manufacturer Changan Automobile’s businesses cover the 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 and become an intelligent low-carbon mobility technology company.Changan always adheres to the mission of “Leading Auto Culture for a Better Life” to the concept of “energy savingenvironmental protection scientific and technological intelligence”. At the same time Changan vigorously develops new energy and intelligent vehicles is committed to leading automobile civilization with science and technology innovation and strives to provide customers with high-quality products and services. The company now owns homegrown brands including Changan Automobile and Kaicheng Automobile and has innovatively built three NEV brands i.e. Avatr Deepal and Changan Qiyuan to promote its own brand to move upward. In addition Changan also produces and sells joint-venture models through Sino-foreign joint ventures Changan Ford and Changan Mazda. Changan has launched a series of iconic models including CS series EADO series and UNI series. Joint ventures have launched Edge L Explorer New Generation Nautilus Corsair Aviator Zephyr CX-50 CX-5 Axela and other well-received products. In the field of new energy vehicles Deepal SL03 Deepal S7 Avatr E11 UNI-V iDD Lumin have been launched. Many models of the company are welcomed by consumers.Our operation attaches “equal importance to homegrown and joint venture brands”. We make determined efforts in developing iconic homegrown brands with Changan Auto Deepal Auto and Kaicheng Automobile brands as independent entities. For Changan Ford Changan Mazda and other joint ventures we adopt investment management and continue to deepen mutual trust and cooperation with partners. 2. Industry situation In the first half of 2023 China’s economy continued to recover and the “triple pressure” has been alleviated to a certain extent and all industries have shown varying degrees of recovery momentum. But constrained by weak consumption and other factors the internal impetus for economic growth is not strong and the foundation for economic recovery is not yet solid. In the face of subsidy withdrawal insufficient demand and other headwind factors the auto industry in the first half of the year to increase promotion campaigns increase the supply of new models together with the national and local policies for automobile consumption and the gradual recovery of automobile market demand. At the same time new energy vehicles automobile exports and Chinese brands continued to maintain a good momentum which helped the industry achieve positive growth in the first half of the year. The specific situation of the industry during the reporting period is as follows: In the first half of 2023 the domestic automobile industry achieved a cumulative sales volume of 13.239 million units had a 9.8% year-over-year growth and the overall sales volume showed a low trend before and then a high trend. By model the cumulative sales volume of passenger vehicles in the first half of the year was 11.268 million units had an 8.8% year-over-year growth which was less than the industry. Due to the favorable factors such as macroeconomic recovery and strengthening of infrastructure investment the commercial vehicles market achieved double-digit rapid growth year-over-year and achieved 1.971 million sales in the first half of the year had a 15.8% year-over-year growth and had an obvious recovery momentum.New energy vehicles and automobile exports as the two major growth highlights of the current automobile market continue to effectively drive the overall market growth with good performance. Although the new energy subsidy policy has been withdrawn at the end of 2022 the new energy vehicles market in the first half of 2023 still maintained a sustained growth trend and the production and sales reached a new high in the same period respectively completed 3.788 million units and 3.747 million units with year-over- year growth of more than 40% continuing to show a prosperous trend of production and sales. From the market segment EV and XEV have a different performance affected by battery cost convenience of use and other factors XEV model growth rate is significantly 8Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report higher than EV model. Chinese automobile brands continue to be the main source of growth of the new energy passenger automobile market contributing more than 75% sales of the new energy passenger cars. The market share of Chinese automobile brands in the new energy passenger cars raised to 53.5% nearing a record high.Automobile exports grew rapidly exceeding 2 million units in the first half of 2023 contributing significantly to the overall growth of the market of which the export of new energy vehicles reached 534000 units had a year-over-year growth more than 150%.In recent years with a more complete industrial chain continuous and rapid iteration of intelligent technology scale advantages and abundant product matrix Chinese automobile brands have promoted the continuous development and growth of China's automobile export scale.(The above data/information is collected from “China Automotive Industry Production and Sales Express” published by China Association of Automobile Manufacturers and its industry information release) 3. Enterprise market performance In the first half of 2023 in the context of complex and severe internal and external situations Changan adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era further promotes the Third Business Venture — Innovation & Entrepreneurship Program and firmly transform into an intelligent low-carbon mobility technology company. In the face of changes in the market competition environment exceeding expectations Changan actively and decisively took effective measures to cope with the impact of market changes on the production and operation of the enterprise and maintained the overall stability of the production and operation of the enterprise. In the first half of 2023 the sales volume reached 1.216 million units had an 8.0% year- over-year growth and the group's sales volume ranked fourth in the industry one place higher than that of the same period last year.Among them exported 116218 units overseas; self-owned brand of new energy vehicles sold 176057 units had a 107.2% year-over- year growth better than the industry growth rate of 63.1 percentage points.During the reporting period Changan Automobile focused on the Third Business Venture — Innovation & Entrepreneurship Program and paid close attention to the implementation of the strategy and released the overseas strategy Vast Ocean Plan making it clear that the overseas market would realize the development goal of “Four Ones” by 2030. By establishing the Southeast Asia Division and the European regional headquarters overseas development will get into a new era. Faced with the challenges of subsidy withdrawal insufficient demand and unexpected market fluctuations we made every effort to increase the stock and seize the incremental volume and took the initiative to formulate and implement the “Ten Billion Yuan Benefits for Vehicle Purchase” and “Equal Price for ICE andEV” which effectively responded to the impact of competitors’ price drop on the market segments where Changan Automobile’s products are located and the Company’s sales volume and market share have been significantly increased. Terminal retail data showed that in the first half of 2023 Changan’s passenger brand (ICE) sales ranked first among China’s homegrown brands. CS75 series sales ranked first in the compact SUV segment. The sales of EADO PLUS remained first among China’s homegrown branded compact sedan (ICE) for three consecutive months and sales of DEEPAL SL03 ranked second among new energy medium-sized sedan and the market actions have achieved certain results. The Company strengthened technology leadership and unswervingly promoted core technology research and development for product development acceleration. In the first half of year the UNI-V iDD the third generation of CS75 PLUS Lamore DEEPAL S7 Ford Edge L the new generation of the Lincoln Nautilus Mazda CX-50 and other new or updated products were launched. Product innovations have yielded fruitful results. Adhering to the user-centered product-oriented philosophy Changan vigorously promoted the new marketing and sales transformation and achieved the direct data connection management of thousands of stores of Changan Passenger Vehicles Lumin and Kaicheng and the new marketing and sales network model landed in an orderly manner.II. Core Competence Analysis 1. Science and technology R&D capability. The company adheres to innovation-driven development and promotes the implementation of technological development plan at full speed. Driven by sci-tech innovation and ecosystem building and led by a user-centric approach Changan strengthens investment in science and technology innovation and delivers first-in-the-industry 9Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report technologies. New breakthroughs have been made in product development and technological innovation. In the intelligent fieldChangan continues to build intelligence core capabilities of “chips control units mapping components cloud network andalgorithms”. The development of the main functions of the SDA-S platform have been completed. UNI-V won Smart Star of 2022 at International Automotive Test and Assessment Summit. In the field of NEV technologies the trial production of semi-solid batteries has been completed and the batteries have been tested on prototypes. Changan’s second-generation hydrogen FCEVs ran successfully.The Force ultra-integrated e-drive won the 2nd World Top10 Electric Drive System and “China Heart” 2022 top 10 NEV power system.As of June 2023 the company owns 9869 patents globally including 2658 invention patents. 2. Product definition. With the philosophy of “being user-centric innovation-driven and building world-class product definitioncapabilities” the company aims to build an industry-leading product definition system to make the process more efficient more accurate and more competitive. Changan improves product definition capability defines use scenarios with an experience-driven EMD scenario definition approach. Also the company keeps building a Software as a Service platform which is unified upgradable and profitable. The company’s key products are well-received in the market. The CS75 series UNI-V Eado series Deepal SL03 and S7 are selling well. The company will continue to be user-centric focus on core use cases and improve Deepal Avatr and Changan Qiyuan product lineup to speed up electrification. 3. Brand power. The company keeps strengthening brand value management and innovative brand promotion refreshing brand structure and strategy and improving brand customer satisfaction. In terms of brand value management Changan builds the brand structure with the goal of “a larger scale higher value and fresher image”. The company launched the overseas business strategy Vast Ocean Plan to build Changan Auto’s international brand image. Deepal Automobile was recognized as the 2023 China Media Group Brand Power Project and was awarded the “Leading Homegrown NEV Brand” which greatly enhanced the customer perception of Deepal’s NEV products. In terms of brand promotion in the first half of 2023 the company launched four models including Deepal’s first SUV product S7 and the third-generation CS75PLUS with a total of more than 1 billion brand reaches cumulatively. This year marks the tenth anniversary of the Belt and Road Initiative the company cooperated with Xinhua News Agency's "Along the Belt and Road" program to promote the implementation of Changan's overseas strategic plan and enhance the brand's international influence. In addition the company won the first place among Chinese homegrown brands in J.D. Power’s 2023 Sales Satisfaction Index. 4. Intelligent manufacturing. With the intelligent manufacturing strategy of “Cloud Network Platform and Scenarios” the company is exploring the digital transformation in all use cases in new plants. Based on IIOT platform Changan adopts unified platforms and technologies to build IoT platforms data mid-end and business mid-end to improve the capability of business iteration.With the production capability of electric drive ECUs and batteries Changan has completed an initial layout of the production capacity of NEV components. The new plant in Nanjing and Chongqing Yubei have applied technologies including 5G digital twin and AI machine vision and built more than 40 intelligent manufacturing scenarios to build 5G+ plants with intelligent and green manufacturing capabilities. 5. Leading culture. Changan continues to build a leading company culture with various measures to promote the entrepreneurial culture inside the company. Education campaigns and investigation and research have been carried out in a solid manner to solve development problems. The company organized a speech contest on the theme of leading culture and “oral history” interviews to create a number of high-quality cultural promotion programs which were included in the 2023 Changan Automobile Leading Culture Story Annual. Changan cares for employees and promotes employee mental health services and updates Employee Health Care Program 2.0 to enhance employees' sense of gain and happiness. We shoulder corporate social responsibilities continue to engage in rural revitalization and poverty alleviation and promote the targeted assistance programs in Luxi and Yanshan counties in Yunnan and Youyang in Chongqing. Changan has offered RMB 10.6 million of assistance funds for the two counties in Yunnan. 6. Mechanism and efficiency. The company continues to build a strong talent team and actively restructures organization to stimulate talent vitality. In terms of talent building the company continues to attract top talent globally in design global marketing NEV technologies software etc. Also Changan keeps nurturing talent in operational management strategy to optimize human resources. In terms of incentives we optimize the company’s incentive plan adopt restricted stock and improve the program co- 10Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report investment to further stimulate the vitality of the organization. In terms of efficiency enhancement the company has accelerated digital transformation improved top-level planning carried out in-depth digital transformation training and promoted digital transformation in all business units.III. Analysis of Main Business Overview Whether it is the same as the company’s main business disclosure during the reporting period √ Yes □ No Please refer to the relevant content of "I. The main business of the Company in the reporting period" in chapter 3 of this report.Y-o-y changes in key financial data Unit: RMB The reporting period The same period of last year YoY change (%) Reasons for changes Operating revenue 65492098869.01 56573568393.71 15.76% Operating cost 54001999268.58 45360090482.20 19.05% Mainly due to the acquisition of Deepal Auto its sales Sales expense 3068434621.37 2285329821.77 34.27% expenses were included in the merger and increased General and administrative 2271960408.552184034305.104.03% expenses Mainly due to an increase in R&D expenses 2964604104.48 1932294144.67 53.42% research and development investment Financial expenses -453268104.89 -437998348.99 -3.49% Mainly due to an increase in Impairment loss -397274160.99 -241827585.46 -64.28% impairment of contract assets and intangible assets Mainly due to the merger and acquisition of Deepal Auto Investment income 5023108819.32 2354040073.27 113.38% which resulted in the original equity being remeasured at fair value Mainly due to the disposal of Asset disposal income 366667730.28 68244082.28 437.29% Tea Garden Factory Three in this period Mainly due to an increase in Other income 657988649.18 186910289.65 252.03% government subsidies received in the current period 11Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Income tax expense 176620825.19 -103280125.74 271.01% Mainly due to the year-on- Subtotal of cash inflow from 6955456713.59 5852236420.20 18.85% year increase in due receipts operating activities of bills Mainly due to the fact that the balance of cash and cash equivalents of Deepal auto on Subtotal of cash inflow from 5259673991.67 -2383212310.03 320.70% the purchase date exceeds the investment activities cash offer of the company to purchase its equity which is included in the project Mainly due to the fact that the equity distribution in 2022 Net cash flow from financing has not been paid in the -566158268.81-2013951932.2071.89% activities current period and the equity distribution in the same period has been paid Mainly due to the acquisition Net increase in cash and cash of Deepal Auto and the year- 11662231001.801514350653.16670.11% equivalents on-year increase in bill maturity Major changes on profit composition or profit resources in reporting period √ Applicable □ Not applicable During the reporting period the company's profit was greatly affected by non-recurring gains and losses. For details please refer to "VI. Items and Amounts of Non-Recurring Gains and Losses " in Chapter 2 of this report.Composition of the operating revenue The reporting period The same period of last year YoY Proportion of Proportion of increase/decrease Amount (RMB) operating revenue Amount (RMB) operating revenue (%) （%）(%) Operating revenue 65492098869.01 100% 56573568393.71 100% 15.76% By industry Automotive business 65492098869.01 100% 56573568393.71 100% 15.76% By product Vehicles 61803014700.65 94.37% 53462409290.12 94.50% 15.60% Services and 3689084168.365.63%3111159103.595.50%18.58% others By region China 57602185093.44 87.95% 49995769261.71 88.37% 15.21% 12Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Overseas 7889913775.57 12.05% 6577799132.00 11.63% 19.95% The business products and regions accounting for over 10% of the Company’s operating revenue or operating profit √ Applicable □ Not applicable YoY YoY YoY Operating Operating Cost Gross margin increase/decrease increase/decrease increase/decrease Revenue (RMB) (RMB) (%) of operating of operating cost of gross margin income (%) (%) (%) By business Automotive 65492098869.0154001999268.5817.54%15.76%19.05%-2.28% business By product Vehicles 61803014700.65 50899747867.52 17.64% 15.60% 18.56% -2.06% By region China 57602185093.44 46823857913.11 18.71% 15.21% 19.84% -3.14% Overseas 7889913775.57 7178141355.47 9.02% 19.95% 14.14% 4.62% 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 IV. Analysis of Non-Main Business √ Applicable □ Not applicable Amount (RMB) Proportion of profits (%) Explanation Whether it is sustainable or not Except for the income of 5.021 Please refer to the Item 54 billion yuan generated by theNote 7 “Investment company's merger of enterprisesInvestment income 5023108819.32 70.32%income ” in the In Chapter not under the same control as 10 of this report. Deepal Auto other sustainable assets Profits or losses of fair -23334661.15 -0.33% No value change Please refer to the Item 57Impairment losses on Note 7 “Impairment losses-397274160.99 -5.56% Noassets on assets” in the In Chapter 10 of this report. Non-operating income 93295575.81 1.31% No 13Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Non-operating expenses 13498961.02 0.19% No V. Analysis of Assets and Liabilities 1. Major Changes in Asset Composition 30 June 2023 31 December 2022 Increase/D Proportio Proportion ecrease in Description of significant changes Amount (RMB) n of total Amount (RMB) of total Proportion assets (%) assets (%) (%) Monetary fund 65985946564.21 37.71% 53530183827.34 36.65% 1.06% Receivables 2477017799.35 1.42% 3068414415.29 2.10% -0.68% Mainly due to the acquisition of Deepal Auto the receivable new energy subsidies have been Contract assets 2227324510.17 1.27% 458389187.10 0.31% 0.96% included in the consolidated financial statements resulting in an increase Mainly due to the increase in exported cars and the acquisition Inventories 10252940583.44 5.86% 5823307512.90 3.99% 1.87% of Deepal Motors which included their inventory in the merger Investment 6309359.260.00%6422715.040.00%0.00% property Long-term equity 13788910316.277.88%14406662456.289.86%-1.98% investment Fixed assets 18869352705.47 10.78% 19346764691.44 13.25% -2.47% Mainly due to the acquisition of Deepal Auto the inclusion of its Construction in ongoing construction projects in 2225500468.091.27%1387898218.640.95%0.32% progress the merger and an increase in the company's replacement and upgrading projects Right-of-use 186760454.060.11%100813386.010.07%0.04% assets Mainly due to the acquisition of Intangible assets 15068479509.60 8.61% 4446385255.68 3.04% 5.57% Deepal Auto and the increase in intangible assets Development Mainly due to the acquisition of 1393772255.650.80%723211177.470.50%0.30% expenditure Deepal Auto its development 14Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report expenses have been included in the consolidated financial statements and increased Goodwill mainly formed due to the Goodwill 1809337918.87 1.03% 9804394.00 0.01% 1.02% acquisition of Deepal Auto Short-term loans 50000000.00 0.03% 29000000.00 0.02% 0.01% Mainly due to the merger and acquisition of Deepal Auto the Notes payable 33712072409.02 19.26% 22072793864.83 15.11% 4.15% increase in notes payable was included in the merger Contract liabilities 7116078624.58 4.07% 5655256792.66 3.87% 0.20% Mainly due to the increase in the balance of short-term Payable employee compensation payable and the 4002974882.872.29%2807158489.851.92%0.37% compensation merger of Deepal Auto which included employee compensation payable in the merger Mainly due to provision for equity Other payables 8462527432.79 4.84% 6082766424.67 4.16% 0.68% distribution in 2022 Long-term loans 76000000.00 0.04% 36000000.00 0.02% 0.02% Lease liabilities 120870028.21 0.07% 60205397.98 0.04% 0.03% Temporary taxable differences Deferred Tax 1641744451.94 0.94% 237036741.16 0.16% 0.78% mainly arising from the acquisition Liability of Deepal Auto Minority shareholders' equity Minority mainly arising from the non shareholders' 3979214485.66 2.27% 90698855.79 0.06% 2.21% wholly-owned acquisition of equity Deepal Auto 2. Major overseas assets □ applicable √ not applicable 3. Assets and liabilities measured at fair value √ Applicable □ Not applicable Unit: RMB Accumulated Provision Amount Changes in Fair Amount of Opening Fair Value for of Item Value Gains and Sales in Other Changes Closing Balance Balance Changes Impairment Purchas Losses in Current Period Included in in Current e in 15Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Current Period Equity Period Current Period Financial assets 1.Financial assets held for trading (excluding 280315571.0914575284.3021823463.9710827945.05262239446.37 derivative financial assets) 2.Investments in other 489950000.00489950000.00 equity instruments Subtotal financial 770265571.0914575284.3021823463.9710827945.05752189446.37 assets Total 770265571.09 14575284.30 21823463.97 10827945.05 752189446.37 Financial liabilities - -37909945.45 - 96425.05 37813520.40Note: The trading financial assets and investments in other equity instruments in the table above are detailed in “2. Trading FinancialAssets” and “12. Investments in Other Equity Instruments” in Note 7 of the Financial Statements.Whether there are major changes on measurement attributes for main assets of the Company in reporting period □ Yes √ No 4. Property rights limits by the end of report period Unit: RMB Item Book Value at the End of This Year Limited Reason Monetary fund 1832280514.67 Deposit of acceptance bill Notes receivable 6379455146.47 Pledge for issuing bills payable Intangible assets 28900540.24 Processing release procedures Fixed assets 16614436.08 Processing release procedures Total 8257250637.46 VI. Analysis of Investment 1. Overall situation √ Applicable □ Not applicable Investment amount for the Investment amount for the Item YoY Change (%) reporting period (RMB) previous reporting period (RMB) Equity investments 102000000.00 1860368900.00 -94.52% Fixed assets 12498803.34 52569218.29 -76.22% Construction in progress 1542862623.35 787512886.09 95.92% 16Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Intangible assets 17122312.97 95564437.69 -82.08% Total 1674483739.66 2796015442.07 -40.11% 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. Investment of Financial Assets (1) Security investments √ Applicable □ Not applicable Accumulate Purchase Gains and losses Sales amount Gains and Accounting Book value at the d fair value amount Book value at the from changes in during the losses of the Source Security Stock Abbreviatio Initial investment measurement beginning of the changes during the end of the Accounting fair value during reporting reporting of type code n cost（RMB） model reporting period included in reporting reporting period subject the period period period funds（RMB） equity period （RMB）（RMB） （RMB） （RMB）（RMB） （RMB） Self- CPG Fair value Trading Stock 301215 98999997.80 125052628.80 38297367.57 0.00 0.00 0.00 39704209.64 163349996.37 owned Securities measurement financial assets funds Self- Southwest Fair value Trading Stock 600369 50000000.00 126112500.00 -5399586.03 0.00 0.00 21823463.97 -5399586.03 98889450.00 owned Securities measurement financial assets funds Total 148999997.80 -- 251165128.80 32897781.54 0.00 0.00 21823463.97 34304623.61 262239446.37 -- -- (2) Derivative investments √ Applicable □ Not applicable （1） Derivative investments for hedging purposes during the reporting period √ Applicable □ Not applicable Unit: 10000 RMB Investment Initial Profit and loss Accumulated Amount of Amount of Proportion of investment amount at the derivatives from changes in changes in fair purchase in sales in the amount at the end of the Investment type of derivatives end of the investment fair value in the value included the reporting reporting reporting period to net reporting amount current period in equity period period assets of the Company period Forward Exchange 85419 -5623 0 153162 70291 168290 2.48% Total 85419 -5623 0 153162 70291 168290 2.48% 17Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Explanation of changes of the accounting policies and accounting principles of the Company’s hedging Not applicable during the reporting period compared with the previous reporting period Description of actual gains/losses During the reporting period 702.91 million yuan was sold and the actual profit and loss amount was 10.73 million yuan.during the reporting period Changan Automobile adheres to the principle of risk neutrality in carrying out forward foreign exchange settlement and sales business based on normal production and operation locks in income and cost through forward foreign exchange Description of hedging effect transactions 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 exchange contract and the actual exchange rate on the expiration date may cause the Company to lose money. 2. Liquidity risk: The foreign exchange hedging business is based on the Company’s foreign exchange assets and liabilities and matches the actual foreign exchange receipts and expenditures to ensure that there are sufficient funds for liquidation at the time of delivery so as to reduce the cash flow demand on the maturity date. 3. Default risk: Due to inaccurate forecasts the delivery date signed by the forward exchange transaction is inconsistent 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.Risk analysis and control measures for 4. Operational risk: Forward exchange transactions are complex which may cause risks due to imperfect internal control derivatives investment during the and unprofessional operators.reporting period (including but not 5. Legal risks: If the terms of the transaction contract are not clear the Company may face legal risks.limited to market risk liquidity risk Risk control measures credit risk operational risk legal risk 1. The Company and its subsidiaries will pay attention to the changes in the exchange rate market strengthen the study etc.) 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 management principles management systems operational processes risk control etc. and the operation must be handled in strict accordance with the requirements of the measurements.Changes in market price or fair valueThe Company’s measurement of Financial Instruments follows the “Accounting Standard for Business Enterprisesof invested derivatives during theArticle 22 - Recognition and Measurement of Financial Instruments” and the fair value is basically measured and reporting period (the specific methods recognized with reference to bank pricing. During the reporting period the loss on the change in fair value of forward relevant assumptions and parameters exchange contracts was RMB 56.23 million.used in the analysis of the fair value 18Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report should be disclosed) Whether it is involved in a lawsuit Not applicable Disclosure date of derivatives investment approval board May 16 2023 announcement Disclosure date of derivatives investment approval shareholders June 29 2023 meeting announcement The foreign exchange hedging business carried out by the company and its subsidiaries is based on normal production and operation with the principle of stability with the purpose of currency hedging and avoiding exchange rate risks. By locking in exchange rates to reduce exchange rate fluctuation risks it will not affect the normal development of the main Opinions of independent directors on business. The company has formulated the "Management Measures for Forward Foreign Exchange Trading Business the Company’s derivatives investment (Trial)" and improved relevant internal control processes. The targeted risk control measures taken by the company are and risk control feasible and there are no situations that harm the interests of the company shareholders especially small and medium- sized shareholders. The review process of this proposal complies with relevant laws and regulations as well as the provisions of the Company’s relevant rules. （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 Amount of amount of Total raised funds total amount of total The total The purpose funds raised Types of Total funds total funds accumulated with of raised raised amount of and placement Year idle for raised funds raised raised in the use of funds purpose funds with funds with unused of the unused more than current raised changed in purpose purpose funds funds two years period reporting changed changed period Deposited in a Non-public dedicated 2020 offering of 603929.76 61735.01 530995.08 0 160545.86 26.58% 72934.38 0 account for shares raised funds Total -- 603929.76 61735.01 530995.08 0 160545.86 26.58% 72934.38 -- 0 Description of the overall use of raised funds 19Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 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 a timelytrue accurate and complete manner in accordance with the “Guidelines for the Standardized Operation of Listed Companies on the Shenzhen StockExchange” 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. 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 and RMB 693.30 million respectively in 2020 2021 and 2022 In the half year of 2023 RMB 617.35 million of raised funds were used. As of June 30 2023 the Company has used a total of RMB 5309.95 million of the raised funds. (2) Use of the raised funds in committed projects √ Applicable □ Not applicable Unit: 10000 RMB Whether Total Adjusted Cumulative Investment Whether the Whether it Whether the Committed projects and Amount investment progress as of project has Benefits feasibility of placement of extra funds the project committed total meets the raised has been investment of investment invested amount as of the end of the reached the realized this the project has changed raised funds (1) this year the end of the period% (3) = intended year expected changed period (2) (2)/(1) usable state return significantly Committed projects H series fifth phase NE1 series first phase engine production capacity Yes 141568.38 103313.68 865.59 101696.60 98.43% Yes 159608.00 Not applicable 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 9418.59 183.36 9616.63 102.10% Yes 2284.00 Not applicable No Hefei Changan Automobile Co. Ltd. adjustment and Yes 249958.06 142399.78 343.51 133552.26 93.79% Yes 49098.00 Not No upgrade project applicable Supplementary working capital No 180000.00 180000.00 - 180000.00 100.00% No Not Not applicable applicable No A new generation of energy-saving products No - 160545.86 60041.94 97786.96 60.91% No Not Not transformation and applicable applicable No upgrading projects Total 598608.41 603929.76 61735.01 530995.08 87.92% - - - - The reasons for not reaching the planned progress or expected N/A benefits (by specific projects) Description of major changes in the feasibility of N/A the project The amount use and progress of extra raised Not applicable funds 20Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Change in implementation location of the committed N/A projects Adjustment to implementation method of N/A committed project On November 18 2020 the Ninth Meeting of the Eighth Session of the Board of Directors of the Company reviewed and approved the Upfront investment and “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 originally planned to invest in four fundraising projects including the H series phase five the NE1 series phase I engine production capacity construction project the collision test room capacity upgrade construction project the CD569 production line construction project and the adjustment and upgrading project of Hefei Changan Automobile Co. Ltd. Compared with the planning there is some unused founds mainly because the company has reduced the actual investment amount by means of localized substitution of Amount and cause of imported equipment in the process of project implementation in order to reduce the impact of the overseas epidemic on the project surplus of funds raised for construction cycle. In the process of project construction the scheme has been continuously optimized and the lean investment process project implementation management has realized the control of the investment scale. According to the company's long-term strategic planning and development needs at the current stage after comprehensive research and judgment by the company in order to further improve the use efficiency of raised funds the company plans to adjust the investment scale of the original raised funds investment projects and use the estimated surplus funds of RMB 1605458600 for the company's new generation of energy conservation Product transformation and upgrading project.The purpose and placement Deposited in a dedicated account by the Company for raised funds of the unused 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 Actual The amount The date when amount of cumulative Investment Benefits Significant actually the project Whether the funds to be investment progress as of achieved changes in the The commitment of invested reached the expected Changed project invested in amount as the end of the during the feasibility of the the original project during the intended benefits have the project of the end period (%) reporting project after the reporting availability been achieved after the of the (3)=(2)/(1) period change period status change (1) period (2) 21Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 1. H series fifth phas e NE1 series first ph ase engine productio n capacity constructi A new on project generation of 2. Crash Laboratory energy-saving Capacity Upgrade C In the year of Not products onstruction Project 160545.86 60041.94 97786.96 60.91% Not applicable No 2023 applicable transformation 3. CD569 production and upgrading line construction pr projects oject 4. Hefei Changan Au tomobile Co. Ltd. a djustment and upgra de project 合计--160545.8660041.9497786.96---------- 1. There was a balance of the original project investment funds compared to upfront planning. The main reason is that in order to reduce the impact of the overseas epidemic on the project construction cycle the company has reduced the actual investment amount through the localization of imported equipment in the project implementation process in order to reduce the investment in the project construction cycle and at the same time the company has continuously optimized the program in the project construction process in order to continuously improve the quality of operation and lean investment process management has realized the control of the scale and rhythm of investment. According to the company’s long-term strategic planning and Reasons for change decision-making procedures the current development needs after the company’s comprehensive research. In order to further improve the and information disclosure (by specific project) efficiency of the use of the raised funds the company intends to adjust the investment scale of the original raised funds investment projects and the expected balance of RMB 1605.46 million for the company’s new generation of energy-saving product transformation and upgrading projects. 2. Decision-making procedure: The Company held the 38th meeting of the 8th Board of Directors on April 26 2022 and approved the proposal of “Adjusting and Changing the Use of Part of the Raised Funds”. 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 of Part of theRaised Funds” (Announcement No.: 2022-23) on http://www.cninfo.com.cn.Reasons for failure to meet the planned schedule or Not applicable projected benefits (by project) Description of significant changes in the feasibility Not applicable of the project after the change VII. Sale of significant Assets and Equity 1. Sale of significant assets □ Applicable √ Not applicable 22Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 2. Sale of significant equity □ Applicable √ Not applicable VIII. 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 Main Registered Total Operating Operating Net Name Type Net assets businesses capital assets revenue profit profit Joint Stock Produce and sell Changan Ford Automobile Co. Ltd. 24100USD 3157448 233516 2176063 139605 79923 Company auto and parts Avatr Technology (Chongqing) Joint Stock Produce and sell 164466857468102639224465-175643-175646 Co. Ltd. Company auto and parts Deepal Automobile Technology Produce and sell Subsidiary 32811 1759834 -3805 882840 -105900 -105852 Co. Ltd. auto and parts Subsidiaries acquired and sold in the reporting period √ Applicable □ Not applicable During the reporting period Changan Automobile acquired the equity of Deepal Automobile Technology Co. Ltd. from Chongqing Changxin Equity Investment Fund Partnership (Limited Partnership) and Chongqing Liangjiang New Area Chengcheng Equity Investment Fund Partnership (Limited Partnership) with a shareholding ratio of 51.00%. It was transferred from a joint venture to a subsidiary for accounting and included in the consolidation scope.Acquisition and disposal of subsidiaries Impact on overall production Name during the reporting period operation and performance Business combinations not under common Deepal Automobile Technology Co. Ltd. Significant impact control Description of major holding and participating companies Avatr Technology (Chongqing) Co. Ltd. due to the initial introduction of the first high-end product in 2023 and the impact of industry price wars sales did not meet expectations and it is still in the strategic investment period with significant resource investment resulting in increased year-on-year losses in profits. Changan Ford Automobile Co. Ltd. was affected by the contraction of the ICE market and the lower-than-expected development of new energy vehicles resulting in a year-on-year decrease in sales and a decrease in net profit.IX. Structural main business under the company control □ Applicable √ Not applicable X. Possible risks and corresponding measures At present the foundation of domestic economy is not stable yet with weak demand. The consumer confidence is yet to be boosted 23Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report especially in major purchases. The recovery of the automobile market still faces pressure.As for international landscape the great power and industrial chain competition has intensified with geopolitical conflicts and frictions leading to higher risks of local decoupling of the industrial chain and disturbance in the global automotive supply chain.In terms of overseas markets inflation in advanced economies remains high the monetary tightening cycle is still ongoing and economic downside risks remain which may lead to volatility in overseas automobile markets. On the other hand changes in the monetary policy of major economies increase the risk of fluctuations in RMB exchange rate which may lead to foreign exchange losses in product exports.Under the Third Business Venture — Innovation & Entrepreneurship Program Changan is committed to promoting the building of a new shared community of business and supply ecosystem to integrate the entire industrial chain and reduce supply chain risks. In overseas markets we will accelerate the Vast Ocean Plan to build a new international image and enhance competitiveness through the comprehensive upgrading of brand power product power service level and corporate image.XI. Reception Research Communication Interviews and Other Activities during the Reporting Period Type of Date Reception place Research Type Research Index Object For details see the February 2nd 2023 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the On February 1st 2023 Chongqing Field research Institution Changan Automobile: February 1st 2023 investor relations activities record sheet For details see the March 7th 2023 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the On March 3rd 2023 Chongqing Field research Institution Changan Automobile: March 3rd 2023 investor relations activities record sheet For details see the March 20th 2023 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the On March 16th 2023 Chongqing Field research Institution Changan Automobile: March 16th 2023 investor relations activities record sheet For details see the May 10th 2023 Shenzhen stock“Panorama Road exchange interactive (http://irm.cninfo.com.cn) on theOn May 8th 2023 Oneline All investorsShow World” webcast Changan Automobile: May 8th 2023 investor relations activities record sheet For details see the May 16th 2023 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the On May 12th 2023 Chongqing Field research Institution Changan Automobile: May 12th 2023 investor relations activities record sheet For details see the May 19th 2023 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the On May 17th 2023 Chongqing Field research Institution Changan Automobile: May 17th 2023 investor relations activities record sheet 24Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report For details see the June 1st 2023 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the On May 30th 2023 Chongqing Field research Institution Changan Automobile: May 30th 2023 investor relations activities record sheet For details see the June 17th 2023 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the On June 14th 2023 Chongqing Field research Institution Changan Automobile: June 14th 2023 investor relations activities record sheet For details see the June 29th 2023 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the On June 28th 2023 Chongqing Field research Institution Changan Automobile: June 28th 2023 investor relations activities record sheet For details see the June 29th 2023 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the On June 29th 2023 Chongqing Field research Institution Changan Automobile: June 29th 2023 investor relations activities record sheet 25Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Chapter 4 Corporate Governance I. 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 Meeting Decision Ratio 2022 Annual http//www.cninfo.com.cn Shareholders Annual 50.620% June 28th 2023 June 29th 2023 2022 Annual Shareholders Meeting Resolution Meeting Announcement (Announcement Number: 2023-36) 2. The shareholders of preferred shares with voting right restored request to convene an extraordinary general meeting □ Applicable √ Non-applicable II. Departure and Hiring information of the directors supervisors and senior manager √ Available □ Not-available Name Position Type Date Reason Zhang Fatao Vice President Appointed January 5th 2023 Appointment Secretary of Discipline Inspection Commission Pu Xingchuan Appointed March 3rd 2023 Appointment (Senior Management Personnel) Jia Lishan Director Elected July 27th 2023 Appointment Zhao Fei Director Elected July 27th 2023 Appointment Chairman of the Wen Hong Supervisory Board Elected July 27th 2023 Appointment Supervisor Secretary of Discipline Inspection Commission Dismissal from Hua Zhanbiao March 3rd 2023 Job change (Senior Management Employment Personnel) Zhou Kaiquan Director Outgoing May 30th 2023 Job change Lian Jian Chairman of the Outgoing May 31st 2023 Retirement 26Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Supervisory Board Supervisor Xian Zhigang Director Outgoing July 27th 2023 General election Liu Gang Director Outgoing July 27th 2023 General election Leave office upon Ren Xiaochang Independent Director July 27th 2023 Leaving office after 6 years of tenure expiration of term Leave office upon Wei Xinjiang Independent Director July 27th 2023 Leaving office after 6 years of tenure expiration of term III. Preplan for Company common stock profit distribution and capital reserves converting into share capital in the reporting period □ Applicable √ Non-applicable The company plans not to distribute cash dividends not to send bonus shares not to increase equity by provident fund in the first half of the year.IV. 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 and its Summary” and “Proposal on ”. The independent directors expressed their independent agreement on the incentive plan.On February 1st 2021 the 11th meeting of the 8th Session of Board of Directors and the 7th meeting of the 8th Session of Boardof Supervisors reviewed and approved proposals such as “Proposal on and its Summary” and “Proposal on (Revision)”. The independent directors expressed their independent agreement 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 and its Summary” “Proposal on” and “Proposal on General Meeting Granting Full Authority to the Board of Directors to Handle Matters Related to Equity Incentives”.On February 22nd 2021 the Company held the twelfth meeting of the Session of Board of Directors and the 8th meeting of theSession of Board of Supervisors which reviewed and approved proposals such as “Proposal on Adjusting the List of Incentive Objectsand Incentive Quantity of the A-Share Restricted Stock Incentive Plan under Initial Granting” and "”Proposal on Granting RestrictedStocks for the First Time to Incentive Objects of A-Share Restricted Stock Incentive Plan”. The independent directors expressed their independent agreement. 27Chongqing Changan Automobile Company Limited 2023 Semi-Annual ReportOn 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 “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.On June 20th 2023 the Company completed the repurchase and cancellation of all 2.476 million restricted shares that had been granted to the original 23 incentive objects but still had sales restrictions. 2. Implementation of employee stock ownership plans □ Applicable √ Not applicable 3. Other employee incentives □ Applicable √ Not applicable 28Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Chapter 5 Environment 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 Emission Standard of Air Pollutants for Foundry Industry Standard for Fugitive Emission of Volatile Organic Compounds Technical Requirement for Low-Volatile-Organic-Compound-Content Coatings Product etc. Industry standards include Technical Specification for Application and Issuance of Pollutant Permit Automotive Industry Self-Monitoring Technology Guidelines for Pollution Sources Technical specification for operation of wastewater online monitoring system (CODCr NH3-N et al.) Technical guide for leak detection and repair of volatile organic compounds in industries 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 the first half of 2023 there will be a total of 4 EIA approval documents for construction projects as follows: Name and document number of Approval Name of construction project environmental impact assessment approval Approval Authority acquisition time document Hefei Changan Automobile Co. Approval Opinions on the Environmental Hefei Ecology andLtd. A158 Series Pure Electric Impact Report of “Hefei ChanganEnvironment March 27th 2023 Passenger Vehicle Production Line Automobile Co. Ltd. A158 Series Pure Bureau Technical Transformation Project Electric Passenger Vehicle Production Line 29Chongqing Changan Automobile Company Limited 2023 Semi-Annual ReportTechnical Transformation Project” (HJS [2023] No. 10020) Chongqing Construction Project Chongqing Ecology Sino German Industrial Park Office Environmental Impact Assessment and Environment March 3rd 2023 R&D Base Reconstruction Project Document Approval Letter Bureau (Liangjiang (YLJHZ [2023] No. 021) New Area Branch) Chongqing Construction Project Chongqing Ecology Yubei Factory Replacement and Environmental Impact Assessment and Environment Green Upgrade Construction May 6th 2023 Document Approval Letter Bureau Project (YSHZ [2023] No. 025) Technical Transformation Project Chongqing Construction Project Chongqing Ecology of C318 Series New Energy Environmental Impact Assessment and Environment June 26th 2023 Passenger Vehicle Production Line Document Approval Letter Bureau (Liangjiang at Liangjiang Three Factories (YLJHZ [2023] No. 065) New Area Branch) ——Information on administrative permission for pollutant discharge In the first half of 2023 each base involved a total of 3 pollution discharge license documents including 1 reapplications 2 changes and no extensions. 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 Total Name of the Number of Distribution Discharge Total Main pollutants and specific Discharge approved Excessive company or discharge of discharge concentration Pollutant discharge standards discharge pollutants means discharge emissions subsidiary outlets outlets (mg/L) (Tons/year) (Tons/year) COD Two outlets 41.78 10.27 347.9 — Integrated Wastewater Discharge Ammonia for2.23 Standard（GB8978-1996); The 0.46 31.31 —nitrogen workshop Intermittent Influent Water Quality Wastewater 3 facilities Total nickel emissions 0.09 Requirements set by the Yubei 0.01 0.17 — and one Chongqing District Sewage Treatment Plant in Total zinc main outlet 0.03 0.01 3.48 — Changan Chongqing Phosphate for the Plant 0.49 0.04 0.70 — Automobile Co. Ltd. Sulfur 2.92 Emission Standard of Air Pollutants 0.82 16.95 — Yubei Plant dioxide for Surface Coating of Outlets Nitrogen Organized Automobile Manufacturing Industry Exhaust gas 32 around the 46.49 6.27 75.40 —oxides emissions （DB 50/577-2015);Plant Particulate Emission Standards of Air 0.160.2994.33— matter Pollutants for Industrial Kiln and 30Chongqing Changan Automobile Company Limited 2023 Semi-Annual ReportVolatile Furnace（DB 50/659-2016);organic 0.85 Integrated Emission Standards of 1.02 221.21 —compounds Air Pollutants（DB 50/418-2016);Emission Standards of Air Toluene +0.07 Pollutants for Boiler（DB 50/658- 0.08 50.00 —Xylene 2016) During the reporting period the Yubei Plant of Chongqing Changan Automobile Co. Ltd. was included in the List of Key Pollutant Discharge Units of Chongqing in 2023 with a total of 1094.97 tons of hazardous waste generated in this period. The 1094.97 tons have been legally utilized Soil — and disposed of by manufacturers with hazardous waste operation permits produced 11641.34 tons of general industrial solid waste and 11271.09 tons of utilization and disposal. COD An outlet for 107 Integrated Wastewater Discharge 4.12 14.02 —workshop Standard（GB8978-1996); TheAmmonia Intermittent facilities 4.35 Influent Water Quality 0.41 1.40 — Wastewater nitrogen 2 emissions and one Requirements set by Guoyuangang Total nickel 0.08 0 0.04 — main outlet Sewage Treatment Plant in Total zinc for the Plant 0 Chongqing 0.08 0.28 — Sulfur Emission standard of Air Pollutants 001.23— Chongqing dioxide for Surface Coating of Changan Nitrogen Automobile Manufacturing Industry 0.16018.23—Automobile oxides （DB 50/577-2015);Co. Ltd. Emission Standards of Air Particulate Outlets (Liangjiang Organized 0.17 Pollutants for Industrial Kiln and 3.16 36.14 — Exhaust gas matter 31 around thePlant emissions Furnace（DB 50/659-2016);Plant Campus No. Volatile Integrated Emission Standards of1) organic 0.19 5.23 63.06 — Air Pollutants（DB 50/418-2016);compounds Emission Standards of AirToluene + Pollutants for Boiler（DB 50/658- 0.010.172.68— xylene 2016) During the reporting period Liangjiang Plant Campus No. 1 of Changan Automobile was included in the List of Key Pollutant Discharge Units of Chongqing in 2023 with a total of 506.73 tons of hazardous waste in this period. A total of 509.90 tons were legally utilized and Soil — disposed of by manufacturers with hazardous waste operation permits produced 4386.17 tons of general industrial solid waste and 4227.98 tons of utilization and disposal.COD An outlet for 66.56 Integrated Wastewater Discharge 20.91 46 —workshop Standard（GB8978-1996); TheChongqing Ammonia Intermittent facilities 1.98 Influent Water Quality 0.58 4.6 — Changan Wastewater nitrogen 2 emissions and one Requirements set by the Automobile Total nickel 0.07 0 0.14 — main outlet Guoyuangang Sewage Treatment Co. Ltd.Total zinc for the Plant 0.03 Plant in Chongqing 0.01 1.38 — (Liangjiang Plant Sulfur Emission standard of Air Pollutants Outlets 0.91 0.06 4.12 — Campus No. dioxide Organized for Surface Coating of Exhaust gas 50 around the 2) Nitrogen emissions Automobile Manufacturing Industry Plant 86.7 15.32 34.72 —oxides （DB 50/577-2015); 31Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Particulate Emission Standards of Air 7.2314.1950.61— matter Pollutants for Industrial Kiln andFurnace（DB 50/659-2016);Volatile Integrated Emission Standards of organic 6.67 18.88 543.23 —Air Pollutants（DB 50/418-2016);compounds Emission Standards of AirToluene + Pollutants for Boiler（DB 50/658- 0.690.401.54— xylene 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 2005.66 tons of hazardous waste. The 2033.62 tons were legally utilized and disposed of by manufacturers with hazardous — waste operation permits produced 16699.71 tons of general industrial solid waste and 16699.71 tons of utilization and disposal.COD An outlet for 72.3 Integrated Wastewater Discharge 13.92 45 —workshop Standard（GB8978-1996); TheTotal nickel 0.11 0.01 0.1 — Intermittent facilities Influent Water Quality Wastewater 2 Ammonia emissions and one Requirements set by the 2.380.654.5— nitrogen main outlet Guoyuangang Sewage Treatment Total zinc for the Plant 0 Plant in Chongqing 0.02 0.81 — Particulate Emission standard of Air Pollutants Chongqing 9.8 5.15 64.24 — matter for Surface Coating of Changan Automobile VOCs 7.2 Automobile Manufacturing Industry 3.59 244.36 — （DB 50/577-2015);Co. Ltd. SO2 0 0 5.34 — Emission Standards of Air (Liangjiang Outlets Toluene + Organized 0.71 Pollutants for Industrial Kiln and Plant Exhaust gas 38 around the 0.51 0.95 —xylene emissions Furnace（DB 50/659-2016);Campus No. Plant Integrated Emission Standards of 3)Air Pollutants（DB 50/418-2016);NOx 64 Emission Standards of Air 3.17 24.78 —Pollutants for 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 1036.90 tons of hazardous waste generated in this period. 1021.50 tons were legally utilized and disposed of by manufacturers — with hazardous waste operation permits produced 7486.78 tons of general industrial solid waste and 7486.78 tons of utilization and disposal.Integrated Wastewater Discharge COD 100.61 6.04 22.5 —Chongqing Standard（GB8978-1996); TheChangan Intermittent Main outlet Influent Water Quality Wastewater Ammonia 2 Automobile emissions for the Plant Requirements set by the nitrogen 4.16 0.60 2.25 — Co. Ltd. Guoyuangang Sewage Treatment（NH3-N） (Jiangbei Plant in Chongqing Engine Particulate Outlets Emission Standards of Air Plant Plant Organized 12.43 8.54 — — Exhaust gas matter 93 around the Pollutants for Industrial Kiln andNo.1） emissionsSO2 Plant 14.47 Furnace（DB 50/659-2016); 2.80 — — 32Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report VOCs 5.99 Integrated Emission Standards of 0.62 — —Air Pollutants（DB 50/418-2016)NOx 23.52 4.70 — — During the reporting period Jiangbei Engine Plant Plant NO. 1 was included in the List of Key Pollutant Discharge Units in Chongqing in 2023 and a total of 1834.49 tons of hazardous waste was generated in this period. 1834.49 tons were legally utilized and disposed of by Soil — manufacturers with hazardous waste operation permits or exemption certificates produced 1390.54 tons of general industrial solid waste and 1390.54 tons of utilization and disposal. COD 88.23 Integrated Wastewater Discharge 4.80 11.08 —Standard（GB8978-1996); TheIntermittent Main outlet Influent Water Quality Wastewater Ammonia 1 emissions for the Plant Requirements set by Guoyuangang nitrogen 0.54 0.48 1.11 — Sewage Treatment Plant in（NH3-N） Chongqing Non- Chongqing methane Changan total 1.91 1.95 — — Automobile hydrocarbon Emission Standards of Air Co. Ltd. s Outlets Pollutants for Industrial Kiln and (Jiangbei OrganizedExhaust gas Nitrogen 37 around the Furnace（DB 50/659-2016);Engine emissions 8.18 1.56 — — oxides factory Integrated Emission Standards of Plant PlantParticulate Air Pollutants（DB 50/418-2016)No. 2） 10.14 7.87 — — matter Sulfur 4.710.96—— dioxide During the reporting period Jiangbei Engine Plant Plant NO. 2 was included in the List of Key Pollutant Discharge units in Chongqing in 2023 and a total of 3995.92 tons of hazardous waste was generated in this period. 3995.92 tons were legally utilized and disposed of by Soil — manufacturers with hazardous waste operation permits or exemption certificates produced 323.08 tons of general industrial solid waste and 323.08 tons of utilization and disposal. COD 26.58 3.48 25.76 — An outlet for Ammonia Integrated Wastewater Discharge workshop 3.34 0.28 3.48 —nitrogen Standard（GB8978-1996); TheIntermittent facilities Wastewater 3 Inlet Water Quality Requirements Total nickel emissions and two 0 0 — — set by Guoyuangang Sewage Chongqing main outlets Total zinc 0.04 Treatment Plant in Chongqing 0 — — Lingyao for the Plant Automobile Phosphate 0.09 0.01 0.13 — Co. Ltd. Particulate Emission standard of Air Pollutants 3.84.0838.03— matter Outlets for Surface Coating of Organized Exhaust gas Volatile 40 around the Automobile Manufacturing Industry emissionsorganic Plant 3.17 （DB 50/577-2015); 3.22 111.4 —compounds Integrated Emission Standards of 33Chongqing Changan Automobile Company Limited 2023 Semi-Annual ReportToluene + Air Pollutants（DB 50/418-2016); 1.440.486.46— xylene Emission Standards of AirPollutants for Boiler（DB 50/658-Sulfur 3L 2016) 0 7.12 dioxide Nitrogen 10.670.2916.26 oxides During the reporting period Chongqing Lingyao Automobile Co. Ltd. (Changan Suzuki) was included in the List of Key Pollutant Discharge Units in Chongqing in 2023 and a total of 852.04 tons of hazardous waste was generated in this period 852.04 tons were legally utilized and Soil — disposed of by manufacturers with hazardous waste operation permits or exemption certificates produced 7187.50 tons of general industrial solid waste and 7187.50 tons of utilization and disposal.COD An outlet for 51.2 9.18 63.68 — workshop Ammonia Intermittent facilities 4.69 Integrated Discharge Standard of 1 3.81 — Wastewater nitrogen 2 emissions and a main Water Pollutants (DB11/307-2013) Total nickel 0.0531 0 0.01 — outlet for the Chongqing Phosphate Plant 1.368 0.23 / — Changan Automobile Nitrogen Emission standard of Air Pollutants 9.330.153.18— Co. Ltd. oxides for Surface Coating of Outlets Beijing Automobile Manufacturing Industry Exhaust gas Volatile Organized 52 around the Changan (DB11/1227-2015); organic emissions Plant 2.42 3.25 458.76 — Automobile Integrated Emission Standards of compounds Company Air Pollutants（DB11/501-2017） During the reporting period Chongqing Changan Automobile Co. Ltd. Beijing Changan Automobile Company was included in the List of Key Pollutant Discharge units in Beijing in 2023 and a total of 288.34 tons of hazardous waste was generated in this period 288.34 tons were Soil — legally utilized and disposed of by manufacturers with hazardous waste operation permits or exemption certificates produced 4280.03 tons of general industrial solid waste and 4280.03 tons of utilization and disposal.COD 44.38 12.17 144.13 — Two outlets Total for 11.24 Integrated Wastewater Discharge 3.08 39.44 — nitrogenworkshop Standard（GB8978-1996);Total nickel Intermittent 0.01 0 0.09 — Wastewater 3 facilities The Pipe Standards set by Hefei Hefei emissions Total and a main West Group Sewage Treatment Changan 0.18 0.05 4.73 phosphorus outlet for the Plant Automobile Ammonia Plant Co. Ltd 0.72 0.198 14.41 — nitrogen Emission Control Standard for Outlets Organized Industrial Enterprises Volatile VOCs 83 around the 4 6.435 1139.6 — Exhaust gas emissions Organic Compounds of Tianjin Plant （DB12/524-2020） 34Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report During the reporting period Hefei Changan Automobile Co. Ltd. was included in the List of Key Pollutant Discharge Units in Hefei in 2023 and a total of 910.39 tons of hazardous waste was generated in this period 911.8 tons were legally utilized and disposed of by manufacturers Soil — with hazardous waste operation permits or exemption certificates produced 13062.06 tons of general industrial solid waste and 13062.06 tons of utilization and disposal.COD 37.55 1.47 13.34 — Total An outlet for 2.83 0.08 14.24 — nitrogen Integrated Wastewater Discharge workshopTotal nickel 0.19 Standard（GB8978-1996); 0 0.06Intermittent facilities Wastewater 2 The Pipe Standards set by Nanjing Total emissions and a main 0.19 Lishui Qinyuan Sewage Treatment 0.01 0.08 — phosphorus outlet for the Co. Ltd.Ammonia Plant nitrogen 0.94 0.03 0.26 —（NH3-N） Nanjing NOx 9.67 Emission standard of Air Pollutants 0.66 8.79 — Changan for Surface Coating of Automobile Particulate 0.60.9410.24— Co. Ltd. matter Automobile Manufacturing Industry (DB32/2862 – 2016); VOCs Organized Outlets 4.3 3.95 38.48 — 6 Integrated Emission Standards of Exhaust gas emissions around the Air Pollutants (GB 16297 - 1996); Plant Emission Standards of Air SO2 3 0.08 53.4 — Pollutants for Boiler (GB13271- 2014) During the reporting period Nanjing Changan Automobile Co. Ltd. was included in the List of Key Pollutant Discharge Units in Nanjing in 2023 and a total of 617 tons of hazardous waste was generated in this period 642 tons were legally utilized and disposed of by manufacturers Soil — with hazardous waste operation permits or exemption certificates produced 780 tons of general industrial solid waste and 760 tons of utilization and disposal.Ammonia 3.10.114.8— nitrogen An outlet for COD 115 Integrated wastewater discharge 3.84 63.71 — workshopstandard（GB8978-1996);Total Intermittent facilities Hebei Wastewater 2 4.57 The Influent Water Quality 0.25 7.32 — nitrogen emissions and a main Changan Requirements Set by Gezhouba outlet for the Total Automobile Water Dingzhou Branch Plant 0.84 0.04 0.92 phosphorus Co. Ltd Campus Total nickel 0 0 0.03 — NO.1 Sulfur Integrated Emission Standards of 30.1830.01— dioxide Outlets Air Pollutants GB16297-1996; Organized Non- 51 around the Emission Standards of Air Exhaust gas emissions methane plant 11.61 Pollutants for Industrial Kiln and 11.43 570.34 — total Furnace DB1640-2012; 35Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report hydrocarbon Emission Control Standards for s Volatile Organic Compounds by Industrial Enterprises DB13/2322- Particulate 3.532016;2.8353.4— matter Emission Standards of AirNitrogen Pollutants for Boiler（DB13/5161- 140.6931.47— oxides 2020) During the reporting period Hebei Changan Automobile Co. Ltd Campus NO.1 was included in the List of Key Pollutant Discharge Units in Dingzhou In 2023 with a total of 325.14 tons of hazardous waste generated in this period of which 315.18 tons have been legally utilized and Soil — disposed of by suppliers with hazardous waste operation permits produced 4147.56 tons of general industrial solid waste and 4147.56 tons of utilization and disposal.COD 104.43 7.09 72.71 — A workshop Ammonia facility 1.36 nitrogen Integrated Wastewater Discharge 0.284.14— dischargeStandard（GB8978-1996);Total Intermittent outlet and Wastewater 2 15.6 The Influent Water Quality 0.60 5.51 — nitrogen emissions one factory Requirements Set by Gezhouba Total total 1.1 Water Dingzhou Branch discharge 0.18 1 phosphorus Hebei outlet Changan Nickel 0.16 0 0.06 — Automobile Sulfur Integrated Emission Standards of 33.9488.23— Co. Ltd dioxide Air Pollutants GB16297-1996; Campus Emission Standards of Air Nitrogen NO.2 3 Pollutants for Industrial Kiln and 4.05 33.75 — oxides (Baoding Furnace DB1640-2012; Particulate Outlets Changan Organized 5 Emission Control Standards for 8.75 850.8 — matter 94 around the Bus Exhaust gas emissions Volatile Organic Compounds by plant Manufacturi Industrial Enterprises DB13/2322- ng Co. Ltd) Volatile 2016; organic 6.7 Emission Standards of Air 20.88 880.62 —compounds Pollutants for Boiler（DB13/5161- 2020) During the reporting period Hebei Changan Automobile Co. Ltd Campus NO.2 (Baoding Changan Bus Manufacturing Co. Ltd) was included in the List of Key Pollutant Discharge Units in Dingzhou in 2023. A total of 473.79 tons of hazardous waste were generated in this period and Soil — 456.78 tons were legally utilized and disposed of by suppliers with hazardous waste operation permits produced 5528.87 tons of general industrial solid waste and 5528.87 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 "National Pollutant Discharge Certificate Management Information Platform" (Website: http: //permit mee. gov.cn) and "Changan Automobile Brand Official Website" for details (Website: https://www.changan.com.cn/sociologyindex=2). 36Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Treatment of pollutants Pollutant type Main processing technology Processing method Venturi wet paint mist treatment+zeolite rotary adsorption Deal with by oneself or Spraying VOCs exhaust concentration+TNV incineration; Activated carbon themselves gas adsorption ; Low temperature plasma Deal with by oneself or Drying VOCs exhaust gas TNV or RTO incineration themselves Deal with by oneself or Other VOCs exhaust gas Activated carbon adsorption themselves Exhaust gas Test exhaust gas (nitrogen Deal with by oneself or Automotive three-way catalytic converter oxide) themselves Deal with by oneself or Foundry dust Bag type dust removal themselves Deal with by oneself or Foundry stench Alkali adsorption or biosorption themselves Deal with by oneself or Refueling mist Mechanical filtration themselves Self processing or Phosphating waste gas Coagulation sedimentation outsourcing operations Self processing or Wastewater Oily wastewater Oil separation+air flotation outsourcing operations Comprehensive Self processing or Coagulation sedimentation+aerobic biochemistry wastewater outsourcing operations Outsourcing utilization Waste solvent Utilization or incineration and disposal Outsourcing utilization Wet metal chips Utilize and disposal Aluminum ash packaging Outsourcing utilization Utilize drum and disposal Solid waste Wastewater treatment Outsourcing utilization Landfill sludge and disposal Recyclable general Outsourcing utilization Utilize industrial solid waste and disposal Outsourcing utilization Others Incineration or landfill and disposal Deal with by oneself or Noise Mechanical noise Damping and sound insulation themselves In the first half of 2023 a new set of exhaust gas treatment facilities will be installed in Nanjing Changan and Hefei Changan 37Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report respectively. Pollution treatment facilities are included in the preventive maintenance management of equipment like other production equipment. There are standing books operating procedures or operation instructions preventive maintenance procedures preventive maintenance plans and implementation records equipment spot inspection dosing slag removal consumables replacement and other operation records. All facilities run normal. Key pollutant discharge units are equipped with automatic monitoring facilities for wastewater and waste gas according to the requirements of the local department of ecological conservation and entrust a third-party professional company for operation and maintenance. The facilities run normal. There is no abnormal operation of pollution treatment facilities in the first half of 2023.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 the first half of 2023 Jiangbei Engine Plant (Plot 3) completed the revision and filing of contingency plan for environmental emergencies as shown in the following table: Unit Contingency Plan File Code Filing Authority Chongqing Ecology and Jiangbei Engine Chongqing Changan Automobile Co. Ltd. Jiangbei Environment Bureau Plant Plant No. 2 Engine Plant Plant No. 2 Risk Assessment Report on 500128-2023-030-L (Liangjiang New Area (Plot 3) Environmental Emergencies Branch) 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 the first half of 2023.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 605900 yuan in the first half of 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.Environmental Self-Monitoring Plan Units Website Disclosure Platform Yubei Plant Liangjiang Plant Jiangbei Key Pollution Source Monitoring Data http://119.84.149.34:20003/publish2/dat Engine Plant Chongqing Lingyao Release Platform aSearchPub/entList.aspx Beijing Environmental Information http://xxgk.bevoice.com.cn/monitor- Beijing Changan Automobile Company Disclosure Platform for Enterprises and pub/index.do 38Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Institutions Anhui Province Discharge Units Self- Hefei Changan Automobile Co. Ltd http://39.145.0.253:8081/index Monitoring Information Disclosure Platform Jiangsu Province Discharge Units Self- http://218.94.78.61:8080/newPub/web/h Nanjing Changan Automobile Co. Ltd.Monitoring Information Disclosure Platform ome.htm National Pollution Source Monitoring https://wryjc.cnemc.cn/gkpt/mainZxjc/1 Hebei Changan Automobile Co. Ltd. Information Management and Sharing 30000 Platform Administrative penalties imposed for environmental reasons during the reporting period are shown below None.Measures taken to reduce carbon emissions during the reporting period and effects √ Applicable □Not applicable Changan’s dual carbon targets: Changan aims to reach carbon peaking by 2027 and carbon neutrality by 2045. By 2025 the carbon intensity per unit of manufacturing will reduce by 30%. By 2030 Changan's supply chain will reduce by 30% compared to 2020.To achieve the carbon peaking and carbon neutrality targets Changan in the first half of 2023 has taken solid efforts in energy- saving and carbon-reduction measures in manufacturing achieving a 7% year-on-year reduction in carbon emission per unit. We carried out energy mix shifts. The manufacturing bases in Chongqing Yuzui Hefei and Hebei have built 79 MW of photovoltaic power stations which generated clean energy for their own use. The total consumption of green electricity throughout the first half of the year stood at 26 million kWh with carbon emissions down by 21000 tons. The planning and construction of photovoltaic plants in Chongqing Lingyao and Yubei New Plant Nanjing New Plant and Beijing Base are carried out in an orderly manner and on schedule with an expected new installed capacity of 77MW 56 million kWh of new green power per year and 51000 tons of new carbon reduction per year. The company will further raise the proportion of green energy use and reduce corporate carbon emissions.The company carries out research on low carbon technology in various areas and has achieved tangible results. In the field of NEVs the company focuses on the upgrading of electric drive efficiency the integration and development of battery systems and the research on energy consumption under all climate and driving conditions to build a new energy power system and provide users with a worry-free mobility experience with low energy consumption in all use scenarios. In terms of new powertrains the company focuses on multiple energy-saving solutions including high-efficiency engines high-efficiency e-drives intelligent plug-in hybrid systems and hydrogen fuel cell engines. We continue to build industry-leading intelligent iDD powertrain and Force Power systems to provide users with a “high-efficiency low-carbon and intelligent” driving experience. In the field of new materials the company has completed 15 low-carbon material technology studies realized the application of various types of low-carbon materials and built the ability to calculate the carbon footprint of products. The Deepal SL03 was awarded the “2023 China’s leading low-carbon model”.Other environmental protection-related information In the first half of 2023 various production bases such as Liangjiang Plant Jiangbei Engine Plant Yubei Plant and Chongqing Lingyao carried out environmental credit evaluation work for the year 2022 in accordance with the requirements of the local ecological and environmental regulatory authorities. 39Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report II. Social Responsibility Guided by Xi Jinping's Thought of Socialism with Chinese Characteristics for a New Era Chang An Automobile comprehensively implements the spirit of the 20th CPC National Congress thoroughly carries out the decision-making and deployment of the Central Committee of the Communist Party of China and the State Council on targeted assistance consolidates the foundation gives full play to its strengths adds impetus pushes forward in a coordinated manner and adopts multi-measures and concurrent measures to continuously improve the quality and effectiveness of its assistance comprehensively push forward the revitalization of the countryside carry out the role of the centralized enterprise and fulfill its political and social responsibilities. 1.Strengthen organizational leadership 1. Held six meetings of the leading group for fixed-point assistance work studied the annual fixed-point assistance work and reviewed the report on the plan of the company's fixed-point assistance in two counties of Yunnan province in 2023. 2. Held the thematic work of fixed-point assistance for rural revitalization six times determined key assistance projects studied programs formulated measures and promoted the work. 3. The leaders in charge of the company went to Youyang to carry out thematic education research and exchanged and discussed with Chongqing Youzhou Tea Oil Technology Co. Ltd. about the problems and optimization suggestions in the operation of the management system. 2.Guarantee assistance funds A total of 10.6 million yuan of assistance funds were allocated including 4.6 million yuan in Luxi County and 6 million yuan in Yanshan County of Yunnan province to help rural development rural construction and rural governance in a solid and orderly manner making new progress in rural revitalization and taking new steps in agricultural and rural modernization. 3.Promote industrial assistance Implement the overall plan of the government on the implementation of rural revitalization continue to do a good job of fixed- point assistance Youyang tea oil project to improve the management ability as the core to help build a long-term mechanism of scientific management system. One is to help marketing and channels. Through the company's sales channels we helped Chongqing Youzhou Tea Oil Technology Co. Ltd. to achieve sales of 14.54 million yuan which helped its sales exceed 54.12 million yuan in the first half of the year. The second is to enhance the brand and corporate image. “Love has new benefits. Share a Better Life” – Changan Automobile cross-border new public welfare activities held a sustainable development cooperation signing ceremony. CCTV Xinhua News Agency Xinhua net Global Times Guangming Daily and other media attended the conference and in print. Changan Automobile with Chongqing Youzhou Tea Oil Technology Co. Ltd. to the independent zone of high-end national oil brand image respectively appeared in Shanghai Chongqing two international auto show cross-border new public welfare to expand its influence to provide help for enterprises to bear social responsibility samples. The third is to build a management system assisting Chongqing Youzhou tea oil Technology Co. Ltd. to carry out the management system 1.0 publicity and implementation work promoting the management system landing to promote sustainable development. The fourth is the research of carbon sink methodology. Organize the exchanges of experts from the Ministry of Ecology and Environment establish the biomass estimation equation and evaluation criteria of Chongqing tea oil tree establish the carbon sink measurement model parameter system and measurement standard of tea oil tree and establish the carbon sink evaluation method system of tea oil trees. 4. Provide consumer assistance In response to the call of the government encourage all units of the company and the majority of employees to directly purchase agricultural products with regional characteristics and actively participate in the "Central Enterprise Consumption Assistance Action Plan " activity. Until June 30 complete consumption assistance 1.328000 yuan of which 756000 yuan in two counties in Yunnan and 572000 yuan in other regions taking concrete actions to promote industrial development in poverty-stricken areas and steadily increase the incomes of people living out of poverty. 5.Promote skill help 40Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report By exploiting the advantages of the automobile industry and taking skills training as the starting point we conducted 2 experts campus lectures and 2 social recruitments in Luxi County and Yanshan County of Yunnan Province recruiting a total of 100 students and residents promoting the employment of rural labor force and helping farmers to increase income and achieve prosperity. 41Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Chapter 6 Important Matters I. Commitments finished in implementation by the Company shareholders actual controller acquirer directors supervisors senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period √ Applicable □Not applicable Type of Undertakings Undertaking party Description Date Duration Performance undertaking The shares of Changan Automobile subscribed through China South Industries Group this offering shall not be Undertakings Co. Ltd.; China Changan Sales transferred in any way within 36 In normal made at the IPO Automobile Group Co. Ltd.; restrictions October 2020 36 Months months after the offering progress or refinancing Southern Industry Asset for shares including but not limited to public Management Co. Ltd.transfer through the securities market or by agreement.Whether the promise is Yes fulfilled as scheduled 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. Appointment and dismissal of the accounting firm Is the semi-annual financial report audited □ Yes √ No The company's semi-annual report has not been audited. 42Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report V. The board of directors and supervisors explaining the "nonstandard audit report" from the accounting firm during the reporting period □ Applicable √ Not-applicable VI. The board of directors explaining the "nonstandard audit report" of last year □ Applicable √ Not-applicable VII. Bankruptcy and restructuring □ Applicable √ Not applicable During the report period there is no bankruptcy or restructuring.VIII. Crucial litigation events Crucial litigation and arbitration events □ Applicable √ Not-applicable During the report period the company has no crucial litigation or arbitration events.Other litigation events □ Applicable √ Not-applicable IX. Punishment and rectification □ Applicable √ Not applicable X. The integrity of company its controlling shareholder and actual controller □ Applicable √ Not applicable XI. Significant related-party transactions 1. Related-party transactions related to daily operation √Applicable □Not-applicable For details please refer to Note 12 “Related Party Relationships and Transactions” under Chapter 10. 2. Related-party transaction 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 Chapter 10.Whether there is any non-business-related credits and debts 43Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report □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 Beginning daily deposit Ending balance Related party Relationship Interest rate balance (RMB: Total limit (RMB: Total deposit withdrawal (RMB: 10000) 10000) 10000) amount (RMB: amount (RMB: 10000) 10000) A company China South controlled by Industries the actual 20000000.35%-2.1%198629515951593159521471985741 Group Finance controller of Co. Ltd. Changan Automobile A company Changan controlled by Automobile the actual 15000001.85%-2.25%14950005800006050001470000 Finance Co. controller of LTD Changan Automobile Loan Amount incurred in the current period Beginning Loan amount Total Ending balance Related party Relationship Interest rate balance (RMB: (RMB: 10000) Total amount repayment (RMB: 10000) 10000) of loan (RMB: amount (RMB: 10000) 10000) A company China South controlled by Industries the actual 500001%-4.75%69006000290010000 Group Finance controller of Co. Ltd. Changan Automobile Credit granting or other financial business Total amount (RMB: Actual amount incurred Related party Relationship Business 10000) (RMB: 10000) China South Industries A company controlled by Credit granting 1150000 294709 44Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Group Finance Co. Ltd. the actual controller of Changan 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 XII. Major contracts and their performance 1. Custody contracting and leasing （1）Custody □Applicable √ Not-applicable There is no custody during the reporting period. （2）Contracting □Applicable √ Not-applicable There is no contracting during the reporting period. （3）Leasing √Applicable □Not-applicable Leasing informationLeasing of related parties can be found in Item 5 (2) of Note twelve 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. Entrust wealth management □Applicable √ Not-applicable There’s no entrusting wealth management during the reporting period. 4. Other major contracts □ Applicable √ Not applicable There are no other major contracts of the Company during the reporting period.XIII. Other important events √ Applicable □Not applicable During the reporting period the company has completed the acquisition of partial equity of Deepal Auto and its shareholding in Deepal Auto has increased from 40.66% to 51.00% which has been included in the company's consolidated financial statements since February 2023. For specific details please refer to the "Progress Announcement on Acquiring Partial Equity of Changan New Energy" 45Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report (Announcement No. 2023-05) disclosed by the company on February 18th 2023 on www.cninfo. com. cn. XIV. Important matters of the Company's subsidiary □ Applicable √ Not applicable 46Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Chapter 7 Changes in the Shareholding of the Company and Shareholders I. Change in shareholdings 1. Change in shareholdings Unit: One share Before change Changes（+，-） After changeAdditional Stock Provident Quantity Ratio Other Subtotal Quantity Ratio issued dividend fund transfer Shares with sales restrictions 675775474 6.81% -46200160 -46200160 629575314 6.35% 1. State-owned legal person 5153117385.19%5153117385.20% shares 2. Other domestic shares 159248366 1.61% -46200160 -46200160 113048206 1.14% Including: domestic legal person shares domestic natural person 1592483661.61%-46200160-462001601130482061.14% shares 3. Foreign shares 1215370 0.01% 1215370 0.01% Including: foreign legal persons shares foreign natural person 12153700.01%12153700.01% shares Shares without sales 924602394893.19%4372373843723738928974768693.65% restrictions 1.Ordinary shares 760440917176.64%4372373843723738764813290977.10% denominated in RMB 2. Domestic listed foreign 164161477716.55%164161477716.55% shares Total shares 9921799422 100.00% -2476422 -2476422 9919323000 100.00% Reasons for share change √ Applicable □ Not applicable (1) The first grant of restricted stock incentive plan for A-shares the first period of lifting restrictions and the listing and circulation of restricted shares On March 6th 2023 the company's A-share restricted stock incentive plan granted shares for the first time during the first period of lifting restrictions and the restricted shares were listed for circulation. A total of 1210 incentive objects met the conditions for lifting restrictions this time The number of restricted stocks that have been lifted from restrictions on sale is 44275061 shares (for specific 47Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report details please refer to the "Notice on the Listing and Circulation of Restricted Shares during the First Release Period of the A-share Restricted Stock Incentive Plan"). The incentive targets for lifting the restrictions on sales this time 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) Cancellation of partial A-share restricted stock repurchase On June 20th 2023 the company completed the repurchase and cancellation of a total of 2476422 A-share restricted stocks held by the original 23 incentive subjects (see the "Announcement on the Completion of Repurchase and Cancellation of Some Restricted Stocks" for details) and the total share capital of the company was reduced from 9921799422 shares to 9919323000 shares. (3) Other reasons for changes Other changes in the company's shares with limited sales conditions are caused by changes in the locked shares of supervisors and retired executives.Approval of share change √ Applicable □ Not applicable (1) The first grant of restricted stock incentive plan for A-shares the first period of lifting restrictions and the listing and circulation of restricted shares This matter was reviewed and approved at the 52nd meeting of the 8th Board of Directors and the 21st meeting of the 8th Board of Supervisors of the company on February 17th 2023. (2) Cancellation of partial A-share restricted stock repurchase This matter was reviewed and approved at 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 at the 3rd Extraordinary General Meeting of Shareholders of the company on August 18th 2022.Transfer of shares √ Applicable □ Not applicable See Chapter 7 I 1 "Reasons for share change" for details.Implementation progress of share repurchase □ Applicable √ Not applicable Implementation progress of reducing and repurchasing shares by means of centralized bidding □ Applicable √ Not applicable 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 0.60 yuan per share and at the end of the period is 0.78 yuan per share. The diluted earnings per share at the beginning of the reporting period was RMB 0.59 yuan per share and at the end of the period is 0.76 yuan per share. The net assets per share attributable to ordinary shareholders at the beginning were RMB 6.34 per share and at the end of the period is RMB 6.85 per share. 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 of Number of Increase during restricted shares shares with sales restricted shares at Reasons for Date of removal of Name of shareholders the reporting at the beginning restriction the end of the restrictions sales restriction period of the period removed during period 48Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report the reporting period Southern Industry Asset Non-public issuance 3401869163401869162023-10-26 Management Co. Ltd. of A shares in 2020 China Changan Automobile Group Non-public issuance 1700934581700934582023-10-26 Co. Ltd. of A shares in 2020 China South Industries Group Co. Non-public issuance 503136450313642023-10-26 Ltd. of A shares in 2020 Equity incentive The restricted stock granted by the incentive object for the first time and reserved for the restricted stock is released in three batches. The restriction period of each batch is 24 months 36 months and 48 months from the date of completion of the corresponding grant registration. The A-share restricted stock 160418388 44275061 -2476422 113666905 proportion of lifting the restriction is 33 % 33 % and 34 % of the total number of shares granted by the incentive object a total of 44275061 shares were granted for the first time during the first period of lifting restrictions and were listed and circulated on March 6th 2023 Locked shares of supervisorsenior Lift the sale restriction executives and Other shareholders 45348 551323 596671 according to the outgoing executives relevant rules other than Restricted stock Total 675775474 44275061 -1925099 629575314 -- -- Note: Due to the fact that the 23 original incentive targets in the A-share restricted stock incentive plan no longer meet the requirements for incentive targets the above "increased number of restricted shares in this period" refers to a total of 2476422 shares held by the company on June 20th 2023 which have been granted but have not yet been lifted and have been repurchased 49Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report and cancelled.II. Issuing and listing of securities □ Applicable √ Not-applicable III. Shareholding and shareholders of the company Unit: share(s) At the end of the report period the Number of shareholders holding preference shares with 6557680 total number of shareholders restored voting rights at the end of the reporting period Shareholders holding more than 5% of the shares or top 10 shareholders Increase/ Condition of Number of Number of Number of decrease shares (pledged shares held as of shares held shares held Name Nature Percentage during the labeled or frozen) the end of the with sales without sales Reporting reporting period restrictions restrictions Status Amount Period China Changan Automobile Group State-owned 17.98%17830901431700934581612996685 Co. Ltd. legal person China South Industries Group Co. State-owned 1405715791 14.22%14107471555031364 Ltd. legal person Southern Industry Asset State-owned 5.10%506243257340186916166056341 Management Co. Ltd. legal person Domestic China Securities Finance Co. Ltd. general legal 4.30% 426362905 426362905 person United Prosperity Investment Co. Foreign legal Not 2.83%280498832280498832 Ltd. person pledged labeled or Hong Kong Securities Clearing Co. Foreign legal 1.77% 175854458 32727549 175854458 frozen Ltd. person China Construction Bank Funds wealth Corporation - Huaxia Energy management 0.73% 71921430 71921430 Reform Equity Securities Investment products etc.Fund China Construction Bank Corporation - Guangfa China Funds wealth Securities All Index Automotive management 0.35% 34540666 6181800 34540666 Index Initiated Securities products etc.Investment Fund 50Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Xinhua Life Insurance Co. Ltd. - Funds wealth Dividend - Individual Dividend - management 0.34% 33336801 33336801 33336801 018L-FH002 Shenzhen products etc. China Merchants Securities (HK) Foreign legal 0.33%33166598-673902133166598 Co. Ltd. person Among the top 10 shareholders the actual controller China South Industries Group Co. Ltd. and its wholly- Description of the related party relationship or owned subsidiary Southern Industry Asset Management Co. Ltd. the controlling shareholder China Changan acting in concert among the above shareholders Automobile Group Co. Ltd. and its wholly-owned subsidiary United Prosperity Investment Co. Ltd. are parties acting in concert by “Measures for the Administration of Takeover of Listed Companies”.Description of the above-mentioned shareholders entrusting/being entrusted with voting rights and None waiver of 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 Type Number reporting period China Changan Automobile Group Co. Ltd. 1612996685 RMB ordinary shares 1612996685 China South Industries Group Co. Ltd. 1405715791 RMB ordinary shares 1405715791 China Securities Finance Co. Ltd. 426362905 RMB ordinary shares 426362905 United Prosperity Investment Co. Limited 280498832 Domestic listed foreign shares 280498832 Hong Kong Securities Clearing Co. Ltd. 175854458 RMB ordinary shares 175854458 Southern Industry Asset Management Co. Ltd. 166056341 RMB ordinary shares 166056341 China Construction Bank Corporation - Huaxia 71921430 RMB ordinary shares 71921430 Energy Reform Equity Securities Investment Fund China Construction Bank Corporation - Guangfa China Securities All Index Automotive Index 34540666 RMB ordinary shares 34540666 Initiated Securities Investment Fund Xinhua Life Insurance Co. Ltd. - Dividend - 33336801 RMB ordinary shares 33336801 Individual Dividend -018L-FH002 Shenzhen China Merchants Securities (HK) Co. Ltd. 33166598 Domestic listed foreign shares 33166598 Description of the related relationship or acting in Among the top 10 shareholders the actual controller China South Industries Group Co. Ltd. and its wholly- concert among the top 10 shareholders of owned subsidiary Southern Industry Asset Management Co. Ltd. the controlling shareholder China Changan unrestricted circulating shares and between the top Automobile Group Co. Ltd. and its wholly-owned subsidiary United Prosperity Investment Co. Ltd. are 10 shareholders of unrestricted tradable shares and parties acting in concert as stipulated in the “Measures for the Administration of Takeover of Listedthe top 10 shareholders Companies”.Description of the top 10 ordinary shareholders participating in the margin trading and securities None lending business Whether the top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares without sales restrictions 51Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report agreed on the repurchase transactions during the report period □ 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.IV. Changes in the shareholding of directors supervisors and senior management √ Applicable □ Not applicable Number of Number of shares held Number of restricted Number of Number of at the shares held stocks granted restricted restricted stocks Employment Increase Reduce Name Duties beginning at the end of at the stocks granted granted at the end status (shares) (shares) of the the period beginning of in the current of the period period (shares) the period period (shares) (shares) (shares) (shares) Employee Luo Yan Incumbent 0 500 500 supervisor Total 0 500 500 Note: The shareholding of other directors supervisors and senior management personnel of the company did not change during the reporting period. Please refer to the 2022 annual report for details.V. The change of the controlling shareholders and the actual controllers During the reporting period the change of controlling shareholders □ Applicable √ Not-applicable No changes in controlling shareholders during the reporting period.The change of the actual controllers during the reporting period □ Applicable √ Not-applicable No changes in the actual controllers during the reporting period. 52Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Chapter 8 Preferred Shares □ Available √ Not- available During the reporting period there were no preferred shares in the company. 53Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Chapter 9 Bonds √Available □ Not- available 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: RMB Abbreviati Bond Date of Value Maturi Bonds balance InteresBond Name Way of redemption Trading on Code issue date ty t rate place Chongqing Single interest is Changan calculated on an annual Automobile Co.basis excluding Ltd. publicly Dece Dece Dece compound interest. The issued science 22 Shenzhen 148147. mber mber mber interest is paid once a and technology Changan 1000000000 3.00% Stock SZ 19th 20th 20th year and the principal is innovation K1 Exchange 2022 2022 2027 repaid once due. The last corporate bonds interest is paid with the to professional payment of the investors in principal. 2022 ( Phase I ) This bond is issued to professional institutional investors who open A-share securities accounts Appropriate arrangement of the investors in Shenzhen Branch of China Securities Depository and Clearing Co. Ltd. (excluding purchasers (if any) prohibited by laws and regulations).Applicable trading mechanism Centralized bidding trade and block trading Risk of termination of listing transactions None (if 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. Adjustment of Credit Rating Results during the Reporting Period □ Applicable √ Not applicable 4. 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 54Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report III. Debt Financing Instruments of Non-financial Enterprises □ Applicable √ Not applicable No such cases in the Reporting Period.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. The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the Company up the Period-end Unit: 10000 RMB Items 30 June 2023 31 December 2022 Increase/decrease Current ratio 1.27 1.28 -0.78% Debt/asset ratio 58.90% 56.90% 2.00% Quick ratio 1.16 1.20 -3.33% The reporting period Same period last year Increase/decrease Net profit after deducting 150905.80 310011.38 -51.32% non-recurring profit or loss Debt/EBITDA ratio 9.04% 9.90% -0.86% Interest cover (times) 181.73 296.09 -38.62% Cash-to-interest cover (times) 188.93 327.08 -42.24% EBITDA-to-interest cover 252.97 431.43 -41.36% (times) Loan repayment rate 100% 100% 0 Interest coverage 100% 100% 0 55Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Chapter 10 The Financial Statements I. Auditing Report No audit on the semi-annual financial report.II. Financial statements Financial in notes to the statements of the unit is: RMB yuan 1. Consolidated Balance Sheet In RMB Yuan Account 2023.6.30 2023.1.1 Current assets: Cash 65985946564.21 53530183827.34 Trading financial assets 262239446.37 280315571.09 Notes receivable 33963917823.31 35849660652.96 Accounts receivable 2477017799.35 3068414415.29 Prepayments 662389388.99 749572262.00 Other receivables 959635940.20 1261157951.14 Including: dividends receivable 180656814.04 Inventories 10252940583.44 5823307512.90 Contract assets 2227324510.17 458389187.10 Assets held for sale 327144.11 - Other current assets 1126348926.89 1054779668.19 Total current assets 117918088127.04 102075781048.01 Non-current assets: Long-term equity investments 13788910316.27 14406662456.28 Investment in other equity instruments 489950000.00 489950000.00 Investment properties 6309359.26 6422715.04 Fixed assets 18869352705.47 19346764691.44 Construction in progress 2225500468.09 1387898218.64 Right-of-use asset 186760454.06 100813386.01 Intangible assets 15068479509.60 4446385255.68 Development expenditure 1393772255.65 723211177.47 Goodwill 1809337918.87 9804394.00 Long-term deferred expenses 25237506.61 26375422.17 Deferred tax assets 3211105057.00 3028487187.18 Total non-current assets 57074715550.88 43972774903.91 TOTAL ASSETS 174992803677.92 146048555951.92 Current liabilities: Short-term loans 50000000.00 29000000.00 Trading financial liabilities 37813520.40 - Notes payable 33712072409.02 22072793864.83 Accounts payable 30465634254.25 29449664138.75 56Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Contract liability 7116078624.58 5655256792.66 Payroll payable 4002974882.87 2807158489.85 Taxes payable 1546790269.12 1749946082.32 Other payables 8462527432.79 6082766424.67 Including: interest payable 16112069.40 1478888.85 Dividends payable 2341524610.92 79742.80 Non-current liabilities within one year 69596855.90 885723901.34 Other current liabilities 7391295648.04 6627044667.62 Total current liabilities 92854783896.97 75359354362.04 Non-current liabilities: Long-term loans 76000000.00 36000000.00 Bonds payable 999558490.56 999528301.88 Lease liability 120870028.21 60205397.98 Long-term payables 136176629.42 553518750.12 Long-term payroll payable 32144585.90 35013000.00 Estimated liabilities 5663765591.18 4589299321.49 Deferred Revenue 350542948.42 347568549.62 Deferred tax liabilities 1641744451.94 237036741.16 Other non-current liabilities 1186870228.93 882226966.14 Total non-current liabilities 10207672954.56 7740397028.39 Total liabilities 103062456851.53 83099751390.43 Owners’ equity (or Shareholders’ equity): Share capital 9919323000.00 9921799422.00 Capital reserves 8055341447.46 8532806685.77 Less: treasury shares 442866474.72 627060416.52 Other comprehensive income 146575802.76 98841615.42 Special reserves 53566585.57 24090898.05 Surplus reserves 3528137635.53 3528137635.53 Retained earnings 46691054344.13 41379489865.45 Equity attributable to owners 67951132340.73 62858105705.70 Minority interests 3979214485.66 90698855.79 Total Owners’ equity (or Shareholders’ equity) 71930346826.39 62948804561.49 Liabilities and owners' equity (or shareholders' equity) in total 174992803677.92 146048555951.92 Legal person: Zhu Huarong Chief financial officer: Zhang Deyong The head of accounting department: Chen Jianfeng 2. Balance sheet In RMB Yuan Account 2023.6.30 2023.1.1 Current assets: Cash 49612761169.23 44742705933.76 Trading financial assets 262239446.37 251165128.80 Notes receivable 30191885135.89 32497209409.96 Accounts receivable 9034639091.77 5538504821.82 Prepayments 384123437.64 519014279.72 Other receivables 287117037.30 859026748.64 57Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Including: dividends receivable 180656814.04 Inventories 3116400210.80 2872390838.54 Contract assets 190244001.11 221555444.48 Other current assets 1585516.57 199954784.05 Total current assets 93080995046.68 87701527389.77 Non-current assets: Long-term equity investments 18677206479.38 17385137116.25 Investment in other equity instruments 489950000.00 489950000.00 Fixed assets 13738675532.50 14214227798.06 Construction in progress 1302130391.01 895860965.16 Right-of-use asset 146496392.45 78806182.57 Intangible assets 3107507892.58 3299143861.49 Development expenditure 842475143.40 616814902.46 Long-term deferred expenses 23330341.50 24406892.18 Deferred tax assets 2742289372.93 2631189529.75 Total non-current assets 41070061545.75 39635537247.92 TOTAL ASSETS 134151056592.43 127337064637.69 Current liabilities: Notes payable 22929207918.01 18728133049.99 Accounts payable 21951564942.03 21488548997.96 Contract liability 3889013319.36 3997514972.13 Payroll payable 3205228940.22 2436938973.59 Taxes payable 723833589.23 1376448691.45 Other payables 6307174533.43 5425776798.83 Including: interest payable 16022222.20 1478888.85 Dividends payable 2341414868.12 Non-current liabilities within one year 52058482.61 635180849.52 Other current liabilities 5933407026.04 5932680982.04 Total current liabilities 64991488750.93 60021223315.51 Non-current liabilities: Long-term loans 76000000.00 36000000.00 Bonds payable 999558490.56 999528301.88 Lease liability 94497087.94 45437270.79 Long-term payables 136736360.65 144571302.45 Long-term payroll payable 17938948.80 20565000.00 Estimated liabilities 4103060663.98 3936444965.49 Deferred Revenue 150000000.00 150000000.00 Deferred tax liabilities 200127370.94 195053909.31 Other non-current liabilities 999203989.60 844435549.31 Total non-current liabilities 6777122912.47 6372036299.23 Total liabilities 71768611663.40 66393259614.74 Owners’ equity (or Shareholders’ equity): Share capital 9919323000.00 9921799422.00 Capital reserves 8227900416.30 8047195325.61 Less: treasury shares 442866474.72 627060416.52 Other comprehensive income 157416810.63 157416810.63 58Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Special reserves 24136173.85 10285640.79 Surplus reserves 3528137635.53 3528137635.53 Retained earnings 40968397367.44 39906030604.91 Total Owners’ equity (or Shareholders’ equity) 62382444929.03 60943805022.95 Liabilities and owners' equity (or shareholders' equity) in total 134151056592.43 127337064637.69 3. Consolidated Income Statement In RMB Yuan Account Current Period Prior Period 1.Operating revenue 65492098869.01 56573568393.71 Less: Operating cost 54001999268.58 45360090482.20 Tax and surcharges 2186174248.99 1946300231.77 Operating expenses 3068434621.37 2285329821.77 General and administrative expenses 2271960408.55 2184034305.10 Research and development expenses 2964604104.48 1932294144.67 Financial expenses (453268104.89) (437998348.99) Interest expense 36814471.44 17892411.14 Interest income 532594819.89 438428075.90 Add: Other income 657988649.18 186910289.65 Investment income 5023108819.32 2354040073.27 Including: Investment income from associates and joint venture (180436966.53) 78821605.75 Gains from changes in fair value (23334661.15) 26136888.77 Credit impairment loss (15513488.10) (10774686.62) Asset impairment loss (397274160.99) (241827585.46) Gain on disposal of assets 366667730.28 68244082.28 2.Operating profit 7063837210.47 5686246819.08 Add: Non-operating income 93295575.81 54366637.51 Less: Non-operating expenses 13498961.02 4870215.23 3.Total profit 7143633825.26 5735743241.36 Less: Income tax expense 176620825.19 (103280125.74) 4.Net profit 6967013000.07 5839023367.10 Classification by going concern Net profit from continuing operations 6967013000.07 5839023367.10 Net profit from discontinued operations Classification by ownership attribution Net profit attributable to owners 7652979346.80 5857626135.78 Minority interests (685966346.73) (18602768.68) 5.Other comprehensive income net of tax 47734187.34 121654.81 Net after-tax net of other comprehensive income attributable to the parent company owner 47734187.34 121654.81 Other comprehensive income that will be reclassified into profit or loss 47734187.34 121654.81 59Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Other comprehensive income that can be transferred to profit or loss under the equity method 146228.18 Foreign currency financial statement translation difference 47734187.34 (24573.37) 6.Total comprehensive income 7014747187.41 5839145021.91 Total comprehensive income attributable to owners 7700713534.14 5857747790.59 Total comprehensive income attributable to minority interest (685966346.73) (18602768.68) 7.Earnings per share Basic earnings per share 0.78 0.60 Diluted earnings per share 0.76 0.59 Legal person: Zhu Huarong Chief financial officer: Zhang Deyong The head of accounting department: Chen Jianfeng 4. Income Statement In RMB Yuan Account Current Period Prior Period 1.Operating revenue 54376375197.21 50290300571.12 Less: Operating cost 45316394387.31 40914984492.63 Tax and surcharges 1453554280.40 1434768916.69 Operating expenses 1594619192.27 1475590737.64 General and administrative expenses 1686722665.70 1915207107.81 Research and development expenses 2538873301.65 1851660640.99 Financial expenses (368021413.76) (342363432.16) Interest expense 22584078.19 13595854.23 Interest income 399510519.70 365385141.66 Add: Other income 657920000.00 54300000.00 Investment income 585161578.54 986054122.33 Including: Investment income from associates and joint venture (141552078.57) (92372274.55) Gains from changes in fair value 32897781.54 26136888.77 Credit impairment loss 949935.35 (286476.97) Asset impairment loss (288325731.15) (128723015.24) Gain on disposal of assets 365125023.58 42691501.37 2.Operating profit 3507961371.50 4020625127.78 Add: Non-operating income 81107919.29 25372227.33 Less: Non-operating expenses 11520621.79 2696319.99 3.Total profit 3577548669.00 4043301035.12 Less: Income tax expense 173767038.35 (136087013.13) 4.Net profit 3403781630.65 4179388048.25 Net profit from continuing operations 3403781630.65 4179388048.25 Net profit from discontinued operations 5.Other comprehensive income net of tax 146228.18 6.Total comprehensive income 3403781630.65 4179534276.43 5. Consolidated cash flow statement In RMB Yuan 60Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Account Current Period Prior Period 1.Cash flows from operating activities: Cash received from sale of goods or rendering of services 73931703144.09 61813960686.95 Refunds of taxes 1199246444.10 896338589.28 Cash received relating to other operating activities 1753218395.89 1401417655.54 Subtotal of cash inflows 76884167984.08 64111716931.77 Cash paid for goods and services 54711756692.18 46918151331.30 Cash paid to and on behalf of employees 4415366034.62 3773793442.65 Cash paid for all types of taxes 5442991004.83 4028962242.26 Cash paid relating to other operating activities 5358597538.86 3538573495.36 Subtotal of cash outflows 69928711270.49 58259480511.57 Net cash flows from operating activities 6955456713.59 5852236420.20 2.Cashflows from investing activities: Cash received from investment recovery 14839200.00 Cash received from investment income 1406842.07 381628412.00 Net cash received from disposal of fixed assets intangible assets and other long-term assets 35915330.45 280603391.85 Cash received relating to other investing activities 6216944276.29 Subtotal of cash inflows 6254266448.81 677071003.85 Cash paid for acquisition of fixed assets intangible assets and other long-term assets 857592457.14 783516340.12 Cash paid for acquisition of investments 137000000.00 1461640640.00 Cash paid relating to other investing activities 815126333.76 Subtotal of cash outflows 994592457.14 3060283313.88 Net cash flows from investing activities 5259673991.67 (2383212310.03) 3.Cash flows from financing activities: Absorb cash received from investment 35190000.00 Cash received from borrowing 90000000.00 68070000.00 Cash received relating to other financing activities 362339945.61 715239432.26 Subtotal of cash inflows 487529945.61 783309432.26 Cash repayments of borrowings 629000000.00 300903500.00 Cash paid for distribution of dividends or profits and interest expenses 6163524.40 1797127172.44 Cash paid relating to other financing activities 418524690.02 699230692.02 Subtotal of cash outflows 1053688214.42 2797261364.46 Net cash flows from financing activities (566158268.81) (2013951932.20) 4.Effect of changes in exchange rate on cash 13258565.35 59278475.19 5.Net increase in cash and cash equivalents 11662231001.80 1514350653.16 Add: Opening balance of cash and cash equivalents 52491435047.74 49517916834.99 6.Closing balance of cash and cash equivalents 64153666049.54 51032267488.15 6. Cash flow statement In RMB Yuan Account Current Period Prior Period 1.Cash flows from operating activities: Cash received from sale of goods or rendering of services 57757311678.85 51488841934.67 Cash received relating to other operating activities 30303650.49 46609602.87 61Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Cash received relating to other operating activities 1828991752.50 676108022.43 Subtotal of cash inflows 59616607081.84 52211559559.97 Cash paid for goods and services 42458816511.21 38192576888.27 Cash paid to and on behalf of employees 2826100179.04 2615212696.17 Cash paid for all types of taxes 3421770360.23 2892112750.99 Cash paid relating to other operating activities 3661788216.38 2383343811.11 Subtotal of cash outflows 52368475266.86 46083246146.54 Net cash flows from operating activities 7248131814.98 6128313413.43 2.Cashflows from investing activities: Cash received from investment recovery 14839200.00 Cash received from return on investments 1556842.07 381628412.00 Net cash received from disposal of fixed assets intangible assets and other long-term assets 8857134.39 255368088.61 Subtotal of cash inflows 10413976.46 651835700.61 Cash paid for acquisition of fixed assets intangible assets and other long-term assets 723218813.52 633161880.29 Cash paid for acquisition of investments 1069135009.18 1461640640.00 Subtotal of cash outflows 1792353822.70 2094802520.29 Net cash flows from investing activities (1781939846.24) (1442966819.68) 3.Cash flows from financing activities: Cash received from borrowings 40000000.00 40000000.00 Subtotal of cash inflows 40000000.00 40000000.00 Cash paid for debt repayment 600000000.00 300000000.00 Cash paid for distribution of dividends or profits and interest expenses 3470000.00 1795680672.36 Cash paid relating to other financing activities 32666733.27 12551861.64 Subtotal of cash outflows 636136733.27 2108232534.00 Net cash flows from financing activities (596136733.27) (2068232534.00) 4.Effect of changes in exchange rate on cash 5.Net increase in cash and cash equivalents 4870055235.47 2617114059.75 Add: Opening balance of cash and cash equivalents 44732418327.28 41889838553.29 6.Closing balance of cash and cash equivalents 49602473562.75 44506952613.04 62Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 7. Consolidated statement of changes in shareholders’ equity Current Period In RMB Yuan Current period Equity attributable to owners Items Other Minority Share capital Capital reserves Less: Treasury comprehensiv Special Surplus Retained interest Total equity shares e income reserve reserve earnings I. At end of last year 9921799422.00 8532806685.77 627060416.52 98841615.42 24090898.05 3528137635.53 41379489865.45 90698855.79 62948804561.49 II. At beginning of year 9921799422.00 8532806685.77 627060416.52 98841615.42 24090898.05 3528137635.53 41379489865.45 90698855.79 62948804561.49 III. Changes during the year (2476422.00) (477465238.31) (184193941.80) 47734187.34 29475687.52 5311564478.68 3888515629.87 8981542264.90 1.Total comprehensive income 47734187.34 7652979346.80 (685966346.73) 7014747187.41 2. Capital contributed by owners and capital (2476422.00) (477465238.31) (157449592.97) (322492067.34) decreases (1) Ordinary shares invested by owners (2) The amount of share- based payment included in 187899000.00 187899000.00 owner's equity (3) Others (2476422.00) (665364238.31) (157449592.97) (510391067.34) 3. Distribution of profit (26744348.83) (2341414868.12) (150000.00) (2314820519.29) (1) Distribution to owners (26744348.83) (2341414868.12) (150000.00) (2314820519.29) (2) Others 4.Internal carry forward of owner's equity 5. Special reserves 29475687.52 29475687.52 (1) Pick-up in current period 64708453.30 64708453.30 (2) Used in current period (35232765.78) (35232765.78) 63Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 6.Others 4574631976.60 4574631976.60 IV. At end of current period 9919323000.00 8055341447.46 442866474.72 146575802.76 53566585.57 3528137635.53 46691054344.13 3979214485.66 71930346826.39 Prior period In RMB Yuan Prior period Equity attributable to owners Items Minority Share capital Capital reserves Less: Treasury Other Total equity shares comprehens Special Surplus reserve reserve Retained earnings interest ive income I. At end of last year 7632153402.00 9776193360.38 655812327.60 69442469.53 27988260.61 2982292413.67 35900674525.13 133307840.48 55866239944.20 II. At beginning of year 7632153402.00 9776193360.38 655812327.60 69442469.53 27988260.61 2982292413.67 35900674525.13 133307840.48 55866239944.20 III. Changes during the year 2289646020.00 (1433769009.30) 121654.81 21158894.87 4078769944.24 (7729996.65) 4948197507.97 1.Total comprehensive income 121654.81 5857626135.78 (18602768.68) 5839145021.91 2. Capital contributed by owners and capital 855877010.70 855877010.70 decreases (1) The amount of share-based payment included in owner's 192310900.00 192310900.00 equity (2) Others 663566110.70 663566110.70 3. Distribution of profit (1778856191.54) (1778856191.54) Distribution to owners (1778856191.54) (1778856191.54) 4.Internal carry forward of owner's equity 2289646020.00 (2289646020.00) Capital reserve converted into capital 2289646020.00 (2289646020.00) (or share capital) 5. Special reserves 21158894.87 21158894.87 (1) Pick-up in 46183489.83 46183489.83 64Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report current period (2) Used in current period (25024594.96) (25024594.96) 6.Others 10872772.03 10872772.03 IV. At end of current period 9921799422.00 8342424351.08 655812327.60 69564124.34 49147155.48 2982292413.67 39979444469.37 125577843.83 60814437452.17 65Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 8. Statement of changes in shareholders’ equity Current Period In RMB Yuan Current period Items Share capital Capital reserves Less: Treasury Other shares comprehensive Special reserve Surplus reserve Retained earnings Total equity income I. At end of last year 9921799422.00 8047195325.61 627060416.52 157416810.63 10285640.79 3528137635.53 39906030604.91 60943805022.95 II. At beginning of year 9921799422.00 8047195325.61 627060416.52 157416810.63 10285640.79 3528137635.53 39906030604.91 60943805022.95 III. Changes during the year (2476422.00) 180705090.69 (184193941.80) 13850533.06 1062366762.53 1438639906.08 1.Total comprehensive income 3403781630.65 3403781630.65 2. Capital contributed by owners and capital (2476422.00) 180705090.69 (157449592.97) 335678261.66 decreases (1) The amount of share-based payment 187899000.00 187899000.00 included in owner's equity (2) Others (2476422.00) (7193909.31) (157449592.97) 147779261.66 3. Distribution of profit (26744348.83) (2341414868.12) (2314670519.29) (1) Distribution to owners (26744348.83) (2341414868.12) (2314670519.29) (2) Others 4.Internal carry forward of owner's equity Capital reserve converted into capital (or share capital) 5. Special reserves 13850533.06 13850533.06 (1) Pick-up in current period 32871513.66 32871513.66 (2) Used in current period (19020980.60) (19020980.60) 6.Disposal of subsidiaries 66Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report IV. At end of current period 9919323000.00 8227900416.30 442866474.72 157416810.63 24136173.85 3528137635.53 40968397367.44 62382444929.03 Prior period In RMB Yuan Prior period Items Other Share capital Capital reserves Less: Treasury shares comprehensiv Special reserve Surplus reserve Retained earnings Total equity e income I. At end of last year 7632153402.00 9293065334.91 655812327.60 166051336.11 7552984.45 2982292413.67 36887741937.47 56313045081.01 II. At beginning of year 7632153402.00 9293065334.91 655812327.60 166051336.11 7552984.45 2982292413.67 36887741937.47 56313045081.01 III. Changes during the year 2289646020.00 (1433769009.30) 146228.18 8998316.80 2280296154.31 3145317709.99 1.Total comprehensive income 146228.18 4179388048.25 4179534276.43 2. Capital contributed by owners and capital 855877010.70 855877010.70 decreases (1) The amount of share-based payment included in owner's 192310900.00 192310900.00 equity (2) Others 663566110.70 663566110.70 3. Distribution of profit (1778856191.54) (1778856191.54) Distribution to owners (1778856191.54) (1778856191.54) 4.Internal carry forward of owner's equity 2289646020.00 (2289646020.00) Capital reserve converted into capital 2289646020.00 (2289646020.00) (or share capital) 5. Special reserves 8998316.80 8998316.80 (1) Pick-up in current period 30492980.10 30492980.10 (2) Used in current period (21494663.30) (21494663.30) 67Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 6.Disposal of subsidiaries (120235702.40) (120235702.40) IV. At end of current period 9921799422.00 7859296325.61 655812327.60 166197564.29 16551301.25 2982292413.67 39168038091.78 59458362791.00 68Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report III. CORPORATE INFORMATION Chongqing Changan Automobile Company Limited (hereafter referred to as “the Company”) is a company limited by shares registered in Chongqing People’s Republic of China. It was established on 31 October 1996 with an indefinite business period. The ordinary A shares of Renminbi issued by the company and the B shares of domestically listed foreign shares have been listed on the Shenzhen Stock Exchange. The company is headquartered at 260 Jianxin East Road Jiangbei District Chongqing China and its office address is T2 Building No. 2 Financial City No. 61 Dongshengmen Road Jiangbei District Chongqing China.After the establishment of the company the share capital and shareholding structure have undergone several changes. As of June 30 2023 the company’s controlling shareholder China Changan Automobile Group Company Limited (hereinafter referred to as “ChinaChangan”) and its wholly-owned subsidiary United Prosperity Investment Co. Ltd. held a total of ordinary shares of the company 2063588975 shares with an equity ratio of 20.80%. China South Industries Group Co. Ltd. (hereinafter referred to as “China SouthGroup”) the parent company of China Changan and its wholly-owned subsidiary South Industries International Holdings (Hong Kong) Company Limited hold 1921622884 ordinary shares of the company with a 19.37% shareholding ratio. China Changan and China South Group holds ordinary shares 3985211859 in total with a shareholding ratio of 40.18%.The Company and its subsidiaries collectively refer to as the Group and its main business activities are: the manufacturing and sales of automobiles (including cars) automobile engine products and supporting parts.The holding company and ultimate holding company of the Company are China Changan and China South Group respectively.The scope of consolidation in the consolidated financial statement is determined based on control. For the consolidation scope of this year please refer to Note VIII.IV. BASIS OF PREPARATION 1. Basis of compilation The financial statements have been prepared in accordance with Accounting Standards for Business Enterprises-Basic Standard and the specific standards issued and modified subsequently and the implementation guidance interpretations and other relevant provisions issued subsequently by the MOF (correctly referred to as “Accounting Standards for Business Enterprises”). 1. Going-concern The financial statements are presented on a going concern basis.The financial statements have been prepared under the historical cost convention except for certain financial instruments. If the assets are impaired the corresponding provisions should be made accordingly.V. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES According to the actual production and operation characteristics the group formulated the specific accounting policies and accounting estimates mainly reflected in provision of accounts receivables inventory valuation depreciation of fixed assets intangible assets amortization condition of capitalization of research and development expense and revenue recognition and measurement. 1. Statement of compliance with Accounting Standards for Business Enterprises The financial statements present fairly and fully the financial position of the company on 30 June 2023 and the financial results and the cash flows in the half year of 2023 then ended in accordance with Accounting Standards for Business Enterprises. 2. Accounting year The accounting year of the Group is from 1 January to 31 December of each calendar year. 3. Functional currency The Group’s functional and reporting currency is the Renminbi (“RMB”). Unless otherwise stated the unit of the currency is Yuan.Each entity in the Group determines its own functional currency in accordance with the operating circumstances. At the end of the reporting period the foreign currency financial statements are translated into the reporting currency of the Company of RMB. 69Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 4. Business combination Business combinations are classified into business combinations involving entities under common control and business combinations involving entities not under common control.Business combination involving entities under common control If the enterprise participating in the merger is ultimately controlled by the same party or the same parties before and after the merger and the control is not temporary it is a business merger under the same control.Assets and liabilities that are obtained by the acquiring party in a business combination involving entities under common control shall be measured at their carrying amounts at the combination date as recorded by the party being acquired. The difference between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination (or the aggregate face value of shares issued as consideration) shall be adjusted to capital reserve. If the capital reserve is not sufficient to absorb the difference any excess shall be adjusted against retained earnings.Business combination involving entities not under common control If the enterprise participating in the merger is not ultimately controlled by the same party or the same parties before and after the merger it is a business merger not under the same control.The acquirer shall measure the acquiree’s identifiable assets liabilities and contingent liabilities acquired in the business combination at their fair values on the acquisition date.Goodwill is initially recognized and measured at cost being the excess of the aggregate of the fair value of the consideration transferred (or the fair value of the equity securities issued) and any fair value of the Group’s previously held equity interest in the acquiree over the Group’s interest in the fair value of the acquiree’s net identifiable assets. After initial recognition goodwill is measured at cost less any accumulated impairment losses. Where the aggregate of the fair value of the consideration transferred (or the fair value of the equity securities issued) and any fair value of the Group’s previously held equity interest in the acquiree is lower than the Group’s interest in the fair value of the acquiree’s net identifiable assets the Group reassesses the measurement of the fair value of the acquiree’s identifiable assets liabilities and contingent liabilities and the fair value of the consideration transferred (or the fair value of the equity securities issued) together with the fair value of the Group’s previously held equity interest in the acquiree. If after that reassessment the aggregate of the fair value of the consideration transferred (or the fair value of the equity securities issued) and the Group’s previously held equity interest in the acquiree is still lower than the Group’s interest in the fair value of the acquiree’s net identifiable assets the Group recognize the remaining difference in profit or loss. 5. Consolidated financial statements The scope of the consolidated financial statements which include the financial statements of the Company and all of its subsidiaries is determined on the basis of control. A subsidiary is an entity that is controlled by the Company (such as an enterprise a deemed separate entity or a structured entity controlled by the Company).In the preparation of the consolidated financial statements the financial statements of the subsidiaries are prepared for the same reporting period as the Company using consistent accounting policies. All intra-group assets and liabilities equity income expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.When the current loss belong to minorities of the subsidiary exceeds the beginning equity of the subsidiary belong to minorities the exceeded part will still deduct the equity belong to minorities.With respect to subsidiaries acquired through business combinations involving entities not under common control the operating results and cash flows of the acquiree should be included in the consolidated financial statements from the day that the Group gains control till the Group ceases the control of it. While preparing the consolidated financial statements the acquirer should adjust the subsidiary’s financial statements on the basis of the fair values of the identifiable assets liabilities and contingent liabilities recognized on the acquisition date.With respect to subsidiaries acquired through business combinations involving entities under common control the operating results and cash flows of the acquiree should be included in the consolidated financial statements from the beginning of the period in which the combination occurs.If the changes of relevant facts and circumstances will result in the changes of one or more control elements then the Group should reassess whether it has taken control of the investee. 70Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 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. 7. Cash and cash equivalents Cash comprises cash on hand and bank deposits which can be used for payment at any time; Cash equivalents are short-term highly liquid investments held by the Group that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. 8. Foreign currency translation The Group translates the amount of foreign currency transactions occurred into functional currency.The foreign currency transactions are recorded on initial recognition in the functional currency by applying to the foreign currency amount at the spot exchange rate on the transaction dates. Foreign currency monetary items are translated using the spot exchange rate quoted by the People’s Bank of China at the balance sheet date. The exchange gains or losses arising from occurrence of transactions and exchange of currencies except for those relating to foreign currency borrowings specifically for construction and acquisition of fixed assets capitalized are dealt with in the profit and loss accounts. Non-monetary foreign currency items measured at historical cost remain to be translated at the spot exchange rate prevailing on the transaction date and the amount denominated in the functional currency should not be changed. Non-monetary foreign currency items measured at fair value should be translated at the spot exchange rate prevailing on the date when the fair values are determined. The exchange difference thus resulted should be charged to the current income or other comprehensive income account of the current period.When preparing consolidated financial statements the financial statements of the subsidiaries presented in foreign currencies are translated into Renminbi as follows: asset and liability accounts are translated into Renminbi at exchange rates ruling at the balance sheet date; shareholders’ equity accounts other than retained profits are translated into Renminbi at the applicable exchange rates ruling at the transaction dates; income and expense in income statement are translated into Renminbi average exchange rate of the period in which the transaction occurred (unless the exchange rate fluctuation makes it inappropriate to adopt this exchange rate for conversion the spot exchange rate on the date of cash flow shall be adopted for conversion); total difference between translated assets and translated liabilities and shareholders’ equity is separately listed as “foreign currency exchange differences” below retained profits. The translation difference arising from the settlement of oversea subsidiaries is charged to the current liquidation profit and loss in proportion to the settlement ratio of the assets concerned.Foreign currency cash flows and the cash flows of foreign subsidiaries should be translated using the average exchange rate prevailing on the transaction month during which the cash flows occur (unless the exchange rate fluctuation makes it inappropriate to adopt this exchange rate for conversion the spot exchange rate on the date of cash flow shall be adopted for conversion). The amount of the effect on the cash arising from the change in the exchange rate should be separately presented as an adjustment item in the cash flow statement. 9. Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.Recognition and derecognition The Group recognizes a financial asset or a financial liability when the Group becomes a party to the contractual provision of the instrument.A financial asset (or where applicable a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e. removed from the Group’s consolidated balance sheet) when: 1) the rights to receive cash flows from the financial asset have expired; 2) the Group has transferred its rights to receive cash flows from the financial asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) has transferred substantially 71Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 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 and measurement of financial assets The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them: financial assets measured at amortized cost financial assets measured at fair value with changes included in other comprehensive income and financial assets measured at fair value with changes included in current profit and loss. All affected related financial assets are reclassified when and only when the group changes its business model for managing financial assets.Financial assets are measured at fair value on initial recognition but accounts receivable or notes receivable arising from the sale of goods or rendering of services that do not contain significant financing components or for which the Group has applied the practical expedient of not adjusting the effect of a significant financing component due within one year are initially measured at the transaction price.For financial assets at fair value through profit or loss relevant transaction costs are directly recognized in profit or loss and transaction costs relating to other financial The subsequent measurement of financial assets depends on their classification as follows: Debt investments measured at amortized cost The Group measures financial assets at amortized cost if both of the following conditions are met: the financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.Financial assets at amortized cost are subsequently measured using the effective interest method. Gains and losses are recognized in profit or loss when the asset is derecognized modified or impaired.Debt investments at fair value through other comprehensive income The Group measures debt investments at fair value through other comprehensive income if both of the following conditions are met: the financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling; the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Interest income is recognized using the effective interest method. The interest income impairment losses and foreign exchange revaluation are recognized in profit or loss. The remaining fair value changes are recognized in other comprehensive income. Upon derecognition the cumulative fair value change recognized in other comprehensive income is recycled to profit or loss.Equity investments at fair value through other comprehensive income The Group can elect to classify irrevocably its equity investments which are not held for trading as equity investments designated at fair value through other comprehensive income. Only the relevant dividend income (excluding the dividend income explicitly recovered as part of the investment cost) is recognized in profit or loss. Subsequent changes in the fair value are included in other comprehensive income and no provision for impairment is made. When the financial asset is derecognized the accumulated gains or losses previously included in other comprehensive income are transferred from other comprehensive income to retained earnings.Financial assets at fair value through profit or loss The financial assets other than the above financial assets measured at amortized cost and financial assets at fair value through other comprehensive income are classified as financial assets at fair value through profit or loss. Such financial assets are subsequently measured at fair value with net changes in fair value recognized in profit or loss.Classification and measurement of financial liabilities 72Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Financial liabilities are classified as: financial liabilities measured at fair value through profit or loss and other financial liabilities measured at amortized cost. For financial liabilities measured at fair value and whose changes are included in the current profit and loss the relevant transaction costs are directly included in the current profit and loss and the relevant transaction costs of other financial liabilities measured at amortized cost are included in their initial recognition amount.The subsequent measurement of financial liabilities depends on their classification as follows: Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities held for trading are subsequently measured at fair value with net changes in fair value recognized in profit or loss. Gains or losses on liabilities designated at fair value through profit or loss are recognized in profit or loss except for the gains or losses arising from the Group’s own credit risk which are presented in other comprehensive income with no subsequent reclassification to profit or loss.Financial liabilities measured at amortized cost Other financial liabilities are subsequently measured at amortized cost using the effective interest method.Impairment of financial assets On the basis of expected credit loss the Group carries out impairment treatment on financial assets measured at amortized cost and contract assets and recognizes loss reserves For receivables and contract assets that do not contain significant financing components the Group uses a simplified measurement method to measure the loss provision based on the expected credit loss amount for the entire duration.For financial assets other than the simplified measurement method mentioned above the Group assesses on each balance sheet date whether its credit risk has not increased significantly since initial recognition it is in the first stage. The Group measures the loss provision based on the amount equivalent to the expected credit loss in the next 12 months and calculates the interest income based on the book balance and the actual interest rate; if the credit risk has increased significantly since initial recognition but has not yet suffered credit impairment it is in the second at this stage the Group measures the loss provision based on the amount equivalent to the expected credit loss for the entire duration and calculates the interest income based on the book balance and the actual interest rate; If credit impairment occurs after initial recognition it is in the third stage. The amount of expected credit losses is measured over the entire duration of the loss allowance and interest income is calculated based on amortized cost and effective interest rate. For financial instruments with low credit risk on the balance sheet date the Group assumes that their credit risk has not increased significantly since initial recognition.The Group assesses the expected credit losses of financial instruments based on individual items and portfolios. The Group has considered the credit risk characteristics of different customers and evaluated the expected credit losses of accounts receivable and other receivables based on the ageing combination.Please refer to Note VII3 for the disclosure of the Group’s judgment criteria for significant increase in credit risk and the definition of credit impairment assets that have occurred.The factors reflected in the group's method of measuring expected credit losses on financial instruments include the unbiased probability weighted average amount determined by evaluating a series of possible results the time value of money and reasonable and evidentiary information on past events current conditions and forecasts of future economic conditions available at the balance sheet date without unnecessary additional costs or efforts.When the Group no longer reasonably expects to be able to fully or partially recover the contractual cash flows of financial assets the Group directly writes down the book balance of the financial asset.Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts; and there is an intention to settle on a net basis or to realize the assets and settle the liabilities simultaneously.Transfer of financial assets If the Group transfers substantially all the risks and rewards of ownership of the financial asset the Group derecognizes the financial 73Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report asset; and if the Group retains substantially all the risks and rewards of the financial asset the Group does not derecognize the financial asset.If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset the Group determines whether it has retained control of the financial asset. In this case: (i) if the Group has not retained control it derecognizes the financial asset and recognize separately as assets or liabilities any rights and obligations created not retained in the transfer; (ii) if the Group has retained control it continues to recognize the financial asset to the extent of its continuing involvement in the transferred financial asset and recognizes an associated liability. 10. Inventories Inventory includes raw materials goods in transit work in progress finished goods consigned processing materials low-value consumables.Inventory is initially carried at the actual cost. Inventory costs comprise all costs of purchase costs of conversion and other costs incurred in bringing the inventory to its present location and condition. Weighted average method is assigned to the determination of actual costs of inventories. One-off writing off method is adopted in amortization of low-value consumables.The Group applies a perpetual counting method of inventory.At the balance sheet date the inventory is stated at the lower of cost and net realizable value. If the cost is higher than the net realizable value provision for the inventory should be made through profit or loss.Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The impairment provision should be made on a basis of each item of inventories according to the difference between cost and net realizable value. For large numbers of inventories at relatively low unit prices the provision for loss on decline in value of inventories should be made by category. 11.Assets held for sale The group divides non current assets or asset groups that meet the following conditions into held for sale categories: 1) In accordance with the practice of selling such assets or groups of assets in similar transactions they can be sold immediately under current conditions; 2) The sale is likely to occur that is the group has made a decision on a sale plan and obtained a definite purchase commitment and the sale is expected to be completed within one year.If the book value of non current assets (excluding financial assets deferred income tax assets and assets formed by employee remuneration) or disposal groups held for sale is higher than the net value of fair value minus selling expenses the book value shall be written down to the net value of fair value minus selling expenses and the amount written down shall be recognized as asset impairment losses and included in the current profits and losses. At the same time provision for impairment of assets held for sale shall be made.Non current assets held for sale or non current assets in the disposal group are not depreciated or amortized and interest and other expenses on liabilities in the disposal group held for sale continue to be recognized.When non current assets or disposal groups no longer meet the criteria for the classification of held for sale categories the group will no longer continue to classify them as held for sale categories or remove noncurrent assets from the disposal groups held for sale and will measure them according to the lower of the following: 1) The book value before being classified as held for sale is adjusted according to the depreciation amortization or impairment that should have been recognized under the assumption that it is not classified as held for sale; 2) Recoverable amount. 12. Long-term equity investments Long-term equity investments include investments in subsidiaries joint ventures and associates. 74Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 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.The Company adopted cost method to account for long-term investments in the subsidiaries in the separate financial statements of the Company. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.Under cost method the long-term equity investment is valued at the cost of the initial investment. The cost of long-term equity investment should be adjusted in case of additional investment or disinvestments. When cash dividends or profits are declared by the invested enterprise is recognized as investment income in current period.The equity method is applied to account for long-term equity investments when the Group has jointly control or significant influence on the investee enterprise. Joint control is the contractually agreed sharing of control over an economic activity and exists only when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control (the ventures). Significant influence is the power to participate in the financial and operating policy decisions of an economic activity but is not control or joint control over those policies.Under equity method when the initial investment cost of a long-term equity investment exceeds the investing enterprise’s interest in the fair values of the investee’s identifiable net assets at the acquisition date the difference is accounted for as an initial cost. As to the initial investment cost is less than the investing enterprise’s interest in the fair values of the investee’s identifiable net assets at the acquisition date the difference shall be charged to the income statement for the current period and the cost of the long-term equity investment shall be adjusted accordingly.Under equity method the Group recognizes its share of post-acquisition equity in the investee enterprise for the current period as a gain or loss on investment and also increases or decreases the carrying amount of the investment. When recognizing its share in the net profit or loss of the investee entities the Group should based on the fair values of the identifiable assets of the investee entity when the investment is acquired in accordance with the Group’s accounting policies and periods after eliminating the portion of the profits or losses arising from internal transactions with joint ventures and associates attributable to the investing entity according to the share ratio (but losses arising from internal transactions that belong to losses on the impairment of assets should be recognized in full) recognize the net profit of the investee entity after making appropriate adjustments. The book value of the investment is reduced to the extent that the Group’s share of the profit or cash dividend declared to be distributed by the investee enterprise. However the share of net loss is only recognized to the extent that the book value of the investment is reduced to zero except to the extent that the Group has incurred obligations to assume additional losses. The Group shall adjust the carrying amount of the long-term equity investment for other changes in owners’ equity of the investee enterprise (other than net profits or losses) and include the corresponding adjustments in equity which should be realized through profit or loss in subsequent settlement of the respective long-term investment.On settlement of a long-term equity investment the difference between the proceeds actually received and the carrying amount shall be recognized in the income statement for the current period. As to other comprehensive income recognized based on measurement of the original equity investment by employing the equity method accounting treatment shall be made on the same basis as would be required if the invested entity had directly disposed of the assets or liabilities related thereto when measurement by employing the equity method is terminated. As to any change in owners' equity of the invested entity other than net profit or loss other comprehensive income and profit distribution the investing party shall be transferred to the income statement for the current period. If the remaining equities still be measured under the equity method accumulative change previously recorded in other comprehensive income shall be 75Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 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. 13. Investment property Investment property are properties held to earn rentals or for capital appreciation or both including rented land use right land use right which is held and prepared for transfer after appreciation and rented building.The initial measurement of the investment property shall be measured at its actual cost. The follow-up expenses pertinent to an investment property shall be included in the cost of the investment property if the economic benefits pertinent to this real estate are likely to flow into the enterprise and the cost of the investment property can be reliably measured. Otherwise they should be included in the current profits and losses upon occurrence.The Group adopts the cost method to make follow-up measurement to the investment property. The buildings are depreciated under straight-line method. 14. Fixed assets A fixed asset probably shall be recognized only when the economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured reliably. Subsequent expenditure incurred for a fixed asset that meet the recognition criteria shall be included in the cost of the fixed asset and the book value of the component of the fixed asset that is replaced shall be derecognized.Otherwise such expenditure shall be recognized in the income statement in the period during which they are incurred.Fixed assets are initially measured at actual cost on acquisition. The cost of a purchased fixed asset comprises the purchase price relevant taxes and any directly attributable expenditure for bringing the asset to working condition for its intended use such as delivery and handling costs installation costs and other surcharges.Fixed assets are depreciated on straight-line basis. The estimated useful lives estimated residual values and annual depreciation rates for each category of fixed assets are as follows: Category Deprecation period Residual rate (%) Yearly deprecation rate (%) Buildings 20 to 35 years 3% 2.77%-4.85% Machinery (Note) 5 to 20 years 3% 4.85%-19.40% Vehicles 4 to 10 years 3% 9.70%-24.25% Others 3 to 21 years 3% 4.62%-32.33% Note: the molds in machinery should be depreciated in units-of-production method.The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at least at the end of each year and makes adjustments if necessary. 15. Construction in progress The cost of construction in progress is determined according to the actual expenditure for the construction including all necessary construction expenditure incurred during the construction period borrowing costs that should be capitalized before the construction reaches the condition for intended use and other relevant expenses.Construction in progress is transferred to fixed assets when the asset is ready for its intended use. 16. Borrowing costs The borrowing costs that are directly attributable to the acquisition construction or production of a qualifying asset are capitalized otherwise the borrowing costs are expensed in the period during which they are incurred. A qualifying asset is an asset (an item of property plant and equipment and inventory etc.) that necessarily takes a substantial period of time to get ready for its intended use of sale.The capitalization of borrowing costs is as part of the cost of a qualifying asset shall commence when: 1) expenditure for the asset is being incurred; 2) borrowing costs are being incurred; and 76Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 3) activities that are necessary to prepare the asset for its intended use or sale are in progress. Capitalization of borrowing costs shall be ceased when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale have been done. And subsequent borrowing costs are recognized in the income statement.During the capitalization period the amount of interest to be capitalized for each accounting period shall be determined as follows: 1) where funds are borrowed for a specific-purpose the amount of interest to be capitalized is the actual interest expense incurred on that borrowing for the period less any bank interest earned form depositing the borrowed funds before being used on the asset or any investment income on the temporary investment of those funds; 2) where funds are borrowed for a general-purpose the amount of interest to be capitalized on such borrowings is determined by applying a weighted average interest rate to the weighted average of the excess amounts of cumulative expenditure on the asset over and above the amounts of specific-purpose borrowings.During the construction or manufacture of assets that are qualified for capitalization if abnormal discontinuance other than procedures necessary for their reaching the expected useful conditions happens and the duration of the discontinuance is over three months the capitalization of the borrowing costs is suspended. Borrowing costs incurred during the discontinuance are recognized as expense and charged to the income statement of the current period till the construction or manufacture of the assets resumes. 17. Right-of-use assets At the commencement date of the lease period the Group recognizes its right to use the leased assets during the lease period as a right- of-use asset initial measurement is made at cost. Cost of right to use assets including: the initial measured amount of the lease liability; the amount of lease payments paid on or before the start date of the lease period in addition the relevant amount of lease incentive should be deducted; Initial direct expenses incurred by the lessee; the estimated cost incurred by the lessee for dismantling and removing the leased assets restoring the site where the leased assets are located or restoring the leased assets to the state agreed in the lease terms. If the group remeasures the lease liabilities due to changes in lease payments the book value of the right to use assets shall be adjusted accordingly. The Group adopts the average age method to depreciate the assets of the right of use. If it can be reasonably determined that the ownership of the leased asset is obtained at the expiration of the lease term the Group adopts depreciation within the remaining service life of the leased asset. If it is impossible to reasonably determine that the ownership of the leased asset can be obtained at the expiration of the lease term the Group adopts depreciation within the shorter of the lease term and the remaining service life of the leased asset. 18. Intangible assets An intangible asset probably shall be recognized only when the economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured reliably. Intangible assets are initially measured at cost. The cost of intangible assets acquired in a business combination is the fair value as at the date of acquisition if the fair value can be reliably measured.The useful life of the intangible assets shall be assessed according to the estimated beneficial period expected to generate economic benefits. An intangible asset shall be regarded as having an indefinite useful life when there is no foreseeable limit to the period over which the asset is expected to generate economic benefits for the Group.The useful lives of the intangible assets are as follow: Useful life Land use right 43 to 50 years Software 2 years Trademark 10 years Non-patent technology 5 to 11 years Patent technology 10 years Land use rights that are purchased or acquired through the payment of land use fees are accounted for as intangible assets. With respect to self-developed properties the corresponding land use right and buildings should be recorded as intangible and fixed assets separately.As to the purchased properties if the reasonable allocation of outlays cannot be made between land and buildings all assets purchased will be recorded as fixed assets. The cost of a finite useful life intangible asset is amortized using the straight-line method during the estimated useful life. For an intangible asset with a finite useful life the Group reviews the estimated useful life and amortization method at least at the end of each year and adjusts if necessary.The Group should test an intangible asset with an indefinite useful life for impairment by comparing its recoverable amount with its carrying amount annually whenever there is an indication that the intangible asset may be impaired. An intangible asset with an indefinite useful life shall not be amortized. 77Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report The useful life of an intangible asset that is not being amortized shall be reviewed each period to determine whether events and circumstances continue to support an indefinite useful life assessment for that asset. If there are indicators that the intangible asset has finite useful life the accounting treatment would be in accordance with the intangible asset with finite useful life. 19. Research and development expenditures The Group classified the internal research and development expenditures as follows: research expenditures and development cost.The expenditures in research stage are charged to the current income on occurrence.The expenditures in development stage are capitalized that should meet all the conditions of (a) it is technically feasible to finish intangible assets for use or sale; (b) it is intended to finish and use or sell the intangible assets; (c) the usefulness of methods for intangible assets to generate economic benefits shall be proved including being able to prove that there is a potential market for the products manufactured by applying the intangible assets or there is a potential market for the intangible assets itself or the intangible assets will be used internally; (d) it is able to finish the development of the intangible assets and able to use or sell the intangible assets with the support of sufficient technologies financial resources and other resources; and (e) the development expenditures of the intangible assets can be reliably measured. Expenses incurred that don’t meet the above requirements unanimously should be expensed in the income statement of the reporting period.The Group discriminates between research and development stage with the condition that the project research has been determined in which the relevant research complete all the fractionalization of products measurements and final product scheme under final approval of management. The expenditures incurred before project-determination stage is charged to the current income otherwise it is recorded as development cost. 20. Impairment of assets The impairment of assets other than inventory contract assets deferred income tax assets and financial assets is determined according to the following methods: on the balance sheet date it is judged whether there are signs of possible impairment of assets. If there are signs of impairment the group will estimate its recoverable amount and conduct an impairment test. Impairment tests shall be conducted at least at the end of each year for goodwill formed by business combination intangible assets with uncertain service life and intangible assets that have not yet reached the usable state regardless of whether there are signs of impairment.The recoverable amount is determined according to the higher of the net amount of the fair value of the asset minus the disposal expenses and the present value of the expected future cash flow of the asset. The group estimates its recoverable amount on the basis of individual assets; If it is difficult to estimate the recoverable amount of a single asset the recoverable amount of the asset group shall be determined on the basis of the asset group to which the asset belongs. The recognition of an asset group shall be based on whether the main cash inflow generated by the asset group is independent of the cash inflow of other assets or asset groups.The recoverable amount of an asset is the higher of its fair value less costs to sell and the present value of the future cash flow expected to be derived from the asset. The Group estimates the recoverable amount on an individual basis. If it is not possible to estimate the recoverable amount of the individual asset the Group determines the recoverable amount of the asset group to which the asset belongs.Identification of an asset group is based on whether major cash flows generated by the asset group are independent of the cash flows from other assets or asset groups.When the recoverable amount of an asset or asset group is less than its carrying amount the carrying amount is reduced to the recoverable amount. The impairment of asset is provided for and the impairment loss is recognized in the income statement for the current period.For the purpose of impairment testing the carrying amount of goodwill acquired in a business combination is allocated on a reasonable basis to related asset groups; if it is impossible to allocate to the related asset groups it is allocated to each of the related sets of asset groups. Each of the related asset groups or related sets of asset groups is a group or set of asset group that is able to benefit from the synergies of the business combination and shall not be larger than a reportable segment determined by the Group.When an impairment test is conducted on an asset group or a set of asset groups that contains goodwill if there is any indication of impairment the Group firstly tests the asset group or the set of asset groups excluding the amount of goodwill allocated for impairment i.e. it determines and compares the recoverable amount with the related carrying amount and then recognize impairment loss if any.Thereafter the Group tests the asset group or set of asset groups including goodwill for impairment the carrying amount (including the portion of the carrying amount of goodwill allocated) of the related asset group or set of asset groups is compared to its recoverable amount. If the carrying amount of the asset group or set of asset groups is higher than its recoverable amount the amount of the impairment loss is firstly eliminated by and amortized to the book value of the goodwill included in the asset group or set of asset groups and then eliminated by the book value of other assets according to the proportion of the book values of assets other than the goodwill in the asset group or set of asset groups. 78Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Once the above impairment loss is recognized it cannot be reversed in subsequent periods. 21. Long-term deferred expenses The long-term deferred expenses represent the payment for the improvement on buildings and other expenses which have been paid and should be deferred in the following years. Long-term deferred expenses are amortized on the straight-line basis over the expected beneficial period and are presented at actual expenditure net of accumulated amortization. 22. Employee benefits Employee benefits refer to all kinds of remunerations or compensation made by enterprises to their employees in exchange for services provided by the employees or termination of labor relation. Employee compensation includes short-term compensation and post- employment benefits. The benefits offered by enterprises to the spouse children the dependents of the employee the family member of deceased employee and other beneficiaries are also employee compensation.Short-term employee salaries During the accounting period of employee rendering service the actual employees salaries and are charged to the statement of profit or loss as they become payable in balance sheet.Post-employment benefits (Defined contribution plans) The employees of the Group participate in pension insurance which is managed by local government and the relevant expenditure is recognized when incurred in the costs of relevant assets or the profit and loss for the current period.Post-employment benefits (Defined benefit plan) The Group operates a defined benefit pension plan which requires contributions to be made to a separately administered fund. The benefits are unfunded. The cost of providing benefits under the defined benefit plan is determined using the projected unit credit actuarial valuation method.Remeasurements arising from defined benefit pension plans are recognized immediately in the consolidated statement of financial position with a corresponding debit or credit to retained profits through other comprehensive income in the period in which they occur.Remeasurements are not reclassified to profit or loss in subsequent periods.Past service costs are recognized in profit or loss at the earlier of: the date of the plan amendment or curtailment; and the date that the Group recognizes restructuring-related costs.Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group recognizes the following changes in the net defined benefit obligation under administrative expenses in the consolidated statement of profit or loss by function: *service costs comprising current service costs past-service costs gains and losses on curtailments and non-routine settlements; net interest expense or income.Termination benefits Termination benefits are recognized at the earlier of when the Group can no longer withdraw the offer of those benefits and when the Group recognizes restructuring costs involving the payment of termination benefits. 23. Lease liabilities At the beginning of the lease term the Group recognizes the present value of the unpaid lease payments as a lease liability except for short-term leases and low value asset leases. Lease payments include fixed and substantially fixed payments after deducting lease incentives variable lease payments depending on an index or ratio amounts expected to be payable based on the guaranteed residual value and also includes the exercise price of the purchase option or amounts payable to exercise the termination lease option provided that the group reasonably determines that the option or lease term will be exercised to reflect the group's exercise of the termination lease option.In calculating the present value of lease payments the group uses the embedded interest rate of the lease as the discount rate; If the 79Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report embedded interest rate of the lease cannot be determined the incremental loan interest rate of the lessee shall be used as the discount rate. The group calculates the interest expense of lease liabilities during each period of the lease term at a fixed cyclical interest rate and includes it in the current profit and loss unless otherwise specified in the cost of related assets. The amount of variable lease payments not included in the measurement of lease liabilities shall be included in the current profit and loss when actually incurred unless otherwise stipulated in the cost of related assets.After the beginning date of the lease term the group increases the carrying amount of the lease liabilities when it recognizes interest and decreases the carrying amount of the lease liabilities when it pays the lease payments. When the substantial fixed payment changes the estimated amount payable of the guarantee residual value changes the index or ratio used to determine the lease payment changes the evaluation results or actual exercise of the purchase option renewal option or termination option changes the group remeasures the lease liability according to the present value of the changed lease payment. 24. Provisions An obligation related to a contingency shall be recognized by the Group as a provision when all of the following conditions are satisfied except for contingent considerations and contingent liabilities assumed in a business combination not involving entities under common control: 1) the obligation is a present obligation of the Group; 2) it is probable that an outflow of economic benefits from the Group will be required to settle the obligation; 3) a reliable estimate can be made of the amount of the obligation. Contingent liabilities are initially measured according to the current best estimate for the expenditure necessary for the performance of relevant present obligations with comprehensive consideration given to factors such as the risks uncertainty and time value of money relating to contingencies. The book value of the contingent liabilities should be reviewed at each balance sheet date. If there is objective evidence showing that the book value cannot reflect the present best estimate the book value should be adjusted according to the best estimate.The contingent liabilities of the acquiree acquired in the business combination involving entities not under common control are measured at fair value upon initial recognition. After initial recognition the balance of the amount recognized according to the estimated liabilities and the amount initially recognized after deducting the accumulated amortization determined by the revenue recognition principle is subsequently measured at the higher of the two. 25. Share-based payments A share-based payment is classified as either an equity-settled share-based payment or a cash-settled share-based payment. An equity- settled share-based payment is a transaction in which the Group receives services and uses shares or other equity instruments as consideration for settlement.An equity-settled share-based payment in exchange for services received from employees is measured at the fair value of the equity instruments granted to the employees. If such equity-settled share-based payment could vest immediately related costs or expenses at an amount equal to the fair value on the grant date are recognized with a corresponding increase in capital reserves; if such equity- settled share-based payment could not vest until the completion of services for a vesting period or until the achievement of a specified performance condition the Group at each balance sheet date during the vesting period recognizes the services received for the current period as related costs and expenses with a corresponding increase in capital reserves at an amount equal to the fair value of the equity instruments at the grant date based on the best estimate of the number of equity instruments expected to vest. The fair value is determined using the closing price of the company's shares on the grant date.For awards that do not ultimately vest because non-market performance and/or service conditions have not been met no expense is recognized. Where awards include a market or non-vesting condition the transactions are treated as vesting irrespective of whether the market or non-vesting condition is satisfied provided that all other performance and/or service conditions are satisfied.Where the terms of an equity-settled share-based award are modified as a minimum an expense is recognized as if the terms had not been modified. In addition an expense is recognized for any modification that increases the total fair value of the share-based payment or is otherwise beneficial to the employee as measured at the date of modification.Where an equity-settled share-based award is cancelled it is treated as if it had vested on the date of cancellation and any expense not yet recognized for the award is recognized immediately. This includes any award where non-vesting conditions within the control of either the Group or the employee are not met. However if a new award is substituted for the cancelled award and is designated as a replacement on the date that it is granted the cancelled and new awards are treated as if they were a modification of the original award. 80Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 26. Revenue from contracts with customers The Group has fulfilled its performance obligations in the contracts that is the revenue is recognized when the customer obtains control of the relevant goods or services. Obtaining control over related goods or services means being able to lead the use of the goods or the provision of the services and obtain almost all of the economic benefits from it.Contracts for the sale of goods A contract for the sale of goods between the Group and the customer usually includes the performance obligation to transfer of goods transportation services and free maintenance. The Group allocates the transaction price to each individual performance obligation in accordance with the relative proportion of the stand-alone selling price of the goods or services promised by each individual performance obligation on the date of contract commencement. Regarding the performance obligations of the transferred goods the Group usually recognizes revenue at the point when the performance obligations are fulfilled based on the following indicators which include: a present right to payment for goods the transfer of significant risks and rewards of ownership of goods the transfer of legal title to goods the transfer of physical possession of goods the customer’s acceptance of goods.Provide service contract The performance obligations of the service provision contract between the Group and the customer are due to the fact that the customer obtains and consumes the economic benefits brought by the performance of the Group at the same time the Group performs the contract and the Group has the right to accumulate the economic benefits during the entire contract period. The Group regards it as a performance obligation performed within a period and recognizes the revenue according to the performance progress unless the performance progress cannot be reasonably determined. In accordance with the output method the Group determines the progress of the performance of the service provided based on the completed or delivered products. When the performance progress cannot be reasonably determined if the cost incurred by the Group is expected to be compensated the revenue will be recognized according to the amount of the cost incurred until the performance progress can be reasonably determined.Variable consideration Some contracts between the Group and customers have sales rebate arrangements forming variable consideration. The Group determines the best estimate of the variable consideration based on the expected value or the most likely amount but the transaction price including the variable consideration does not exceed the amount that the accumulated recognized revenue will most likely not be materially reversed when the relevant uncertainty is eliminated.Warranty obligations In accordance with contractual agreements and legal provisions the Group provides quality assurance for the goods sold. For guarantee quality assurance to ensure that the products sold meet the established standards the Group conducts accounting treatment in accordance with Note V 23. For the service quality assurance that provides a separate service in addition to the established standards to ensure that the goods sold meet the established standards the Group regards it as a single performance obligation based on the stand-alone selling price of the quality assurance of the goods and services provided. In a relative proportion part of the transaction price is allocated to service quality assurance and revenue is recognized when the customer obtains control of the service. When assessing whether the quality assurance provides a separate service in addition to ensuring that the products sold meet the established standards the Group considers whether the quality assurance is a legal requirement the quality assurance period and the nature of the Group's commitment to perform tasks.Reward points program The group grants reward points to customers when selling goods or providing services and customers can exchange reward points for free or discounted goods or services. The incentive points plan provides customers with a significant right which the group regards as a single performance obligation apportions part of the transaction price to the incentive points in accordance with the relative proportion of the separate selling price of the goods or services provided and the incentive points and recognizes revenue when the customer obtains control of the points exchanged goods or services or when the points expire.Principal/agent For the Group to lead a third party to provide services to customers on behalf of the Group the Group has the right to independently determine the price of the goods or services traded that is the Group can control the relevant goods before transferring the goods to the customers so the Group is the main responsible person and recognize revenue based on the total consideration received or receivable. Otherwise the Group acts as an agent and recognizes revenue based on the amount of commission or fees expected to be charged. This amount should be based on the net amount of the total consideration received or receivable minus the price payable to other related parties or based on the established commission amount or proportions etc. 81Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 27. Contract assets and contract liabilities The Group lists contract assets or contract liabilities in the balance sheet based on the relationship between performance obligations and customer payments. The Group offsets the contract assets and contract liabilities under the same contract as net amount.Contract assets Contract assets refer to the right to receive consideration for the transfer of goods or services to customers and this right depends on factors other than the passage of time.The determination method and accounting treatment method of the expected credit loss of the contract assets of the Group refer to Note III 9.Contract liabilities Contract liabilities refer to the obligation to transfer goods or services to customers for the consideration received or receivable from customers such as the payment received by companies before the transfer of promised goods or services. 28. Government grants A government grant is recognized only when there is reasonable assurance that the entity will comply with any conditions attached to the grant and the grant will be received. Monetary grants are accounted for at received or receivable amount. Non-monetary grants are accounted for at fair value. If there is no reliable fair value available the grants are accounted for a nominal amount.A government grant which is specified by the government documents to be used to purchase and construct the long-term assets shall be recognized as the government grant related to assets. A government grant which is not specified by the government documents shall be judged based on the basic conditions to obtain the government grant. The one whose basic condition was to purchase and construct the long-term assets shall be recognized as the government grant related to assets.The Group uses the net method to account for government grants.Government grants related to income to be used as compensation for future expenses or losses shall be recognized as deferred income and shall be charged to the current profit or loss or be used to write down the relevant loss during the recognition of the relevant cost expenses or losses; or used as compensation for relevant expenses or losses already incurred by enterprises shall be directly charged to the profit and loss account in the current period or used to write down the relevant cost.The government grants related to assets shall be used to write down the book value of the relevant assets or be recognized as deferred income. The government grants related to assets recognized as deferred income shall be charged to the profit and loss reasonably and systematically in stages over the useful lives of the relevant assets. The government grants measured at nominal amount shall be directly charged to the current profit and loss. The remaining book value of the government grants related to assets should be charged to the profit and loss account in the current period when the relative assets sold transferred disposed or damaged. 29. Deferred income tax For temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts and temporary differences between the carrying amounts and the tax bases of items the tax bases of which can be determined for tax purposes but which have not been recognized as assets and liabilities deferred taxes are provided using the liability method.A deferred tax liability is recognized for all taxable temporary differences except: to the extent that the deferred tax liability arises from the initial recognition of goodwill or the initial recognition of an asset or liability in a transaction which contains both of the following characteristics: the transaction is not a business combination and at the time of the transaction it affects neither the accounting profit nor taxable profit or loss. (2) in respect of taxable temporary differences associated with investments in subsidiaries associates and interests in jointly- controlled enterprises where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. 82Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 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.At the balance sheet date deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled according to the requirements of tax laws. The measurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Group expects at the balance sheet date to recover the assets or settle the liabilities.At the balance sheet date the Group reviews the book value of deferred tax assets. If it is probable that sufficient taxable income cannot be generated to use the tax benefits of deferred tax assets the book value of deferred tax assets should be reduced. When it is probable that sufficient taxable income can be generated the amount of such reduction should be reversed. When it is probable that sufficient taxable income can be generated the amount of such reduction should be reversed.When the following conditions are met at the same time the deferred tax assets and deferred tax liabilities are listed at the net amount after offset: the legal right to settle the current income tax assets and current income tax liabilities at the net amount; the deferred tax assets and deferred tax liabilities are related to the income tax levied by the same tax collection and management department on the same taxable subject or different taxpaying subjects However in the future during each period when the significant deferred tax assets and deferred tax liabilities are reversed the tax payer involved intends to settle the current income tax assets and current income tax liabilities with net amount or obtain assets and pay off debts at the same time. 30. Leases At inception of a contract the Group assesses whether the contract is or contains a lease. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.As lessee In addition to short-term leases and low value asset leases the Group recognizes right to use assets and lease liabilities for leases. See notes 5 17 and 23 for accounting treatment.Short-term leases and leases of low-value assets The Group considers a lease that at the commencement date of the lease has a lease term of 12 months or less and does not contains any purchase option as a short-term lease; and a lease with a lower value of a single leased asset is recognized as a low value asset lease.As lessor A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset except that a lease is classified as an operating lease at the inception date.The Group recording the operating lease as a lessor Rental income from operating leases is recognized as current profit and loss on a straight line basis during each period of the lease term and variable lease payments not included in lease receipts are included in current profit and loss when actually incurred. The initial direct expenses are capitalized and amortized on the same basis as the recognition of rental income during the lease period and are included in the current profit and loss by stages. 31. Profit distribution The cash dividend of the Group is recognized as liabilities after the approval of general meeting of stockholders. 83Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 32. Safety fund The safety fund extracted by the Group shall be recognized as the cost of the related products or income statement while be recognized as special reserve. When using safety fund it shall be distinguished whether it will form fixed assets or not. The expenditure shall write down the special reserve; the capital expenditure shall be recognized as fixed assets when meet the expected conditions for use and write down the special reserve while recognizing accumulated depreciation with the same amount. 33. Fair value measurement The Group measures derivatives and equity investments at fair value at the end of each reporting period. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data and other supporting information are available to measure fair value giving priority to the use of relevant observable inputs and using unobservable inputs only when observable inputs are unavailable or not feasible to obtain.All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy described as follows based on the lowest level input that is significant to the fair value measurement as a whole: Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable For assets and liabilities that are recognized in the financial statements on a recurring basis the Group determines whether transfers have occurred between levels in the hierarchy by reassessing categorization at the end of each reporting period. 34. Significant accounting judgments and estimates The preparation of financial statements requires management to make judgments estimates and assumptions that affect the amounts and disclosures of revenues expenses assets and liabilities and the disclosure of contingent liabilities at the balance sheet date.However uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amounts of the assets or liabilities affected in the future.Judgments In the process of applying the Group’s accounting policies management has made the following judgments which have significant effect on the financial statements: Business model The classification of financial assets at initial recognition depends on the business model of the Group’s management of financial assets.When judging the business model the Group considers the methods including enterprise evaluation and reporting of financial asset performance to key management personnel risks affecting financial asset performance and its arrangement method and the way in which related business managers get paid. When evaluating whether to take contract cash flow as the goal the Group needs to analyze and judge the reasons time frequency and value of the sale of financial assets before the due date.Contract cash flow characteristics The classification of financial assets at initial recognitions depends on the contractual cash flow characteristics of the financial assets.It is necessary to determine whether the contractual cash flow is only for the payment of principal and interest based on outstanding principal including correction of the time value of money during the evaluation it is necessary to determine whether there is a significant difference compared to the benchmark cash flow. For financial assets that include prepayment characteristics it is necessary to determine whether the fair value of the prepayment characteristics is very small etc.Uncertainty of accounting estimates 84Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report The crucial assumptions of significant accounting estimates in future and other crucial sources of estimated uncertainty which may result in the significant adjustments to the book value of the subsequent accounting period are as the following: Impairment of financial instruments and contract assets The Group uses the expected credit loss model to assess the impairment of financial instruments and contract assets. The application of the expected credit loss model requires significant judgments and estimates. All reasonable and valid information must be considered including forward-looking information. In making these judgments and estimates the Group infers the expected changes in the credit risk of the debtor based on historical repayment data combined with economic policies macroeconomic indicators industry risks and other factors. Different estimates may affect the provision for impairment losses. The provision for impairment losses may not be equal to the actual amount of future impairment losses.Impairment of non-current assets other than financial assets (goodwill excluded) The Group assesses at each reporting date whether there is an indication that non-current assets other than financial assets may be impaired. If there is any sign of possible assets impairment the assets concerned should be subject to impairment test. When the carrying amount of an asset or the relevant assets group exceeds its recoverable amount which is the higher one of the net amount of the fair value of the asset minus the disposal expenses and the present value of the expected future cash flow of the asset the asset is considered impaired. The fair value minus the disposal expenses is determined by reference to the recent market transactions price or observed market price less any directly attributable expenditure for disposing. When making an estimate of the present value of the future cash flow of an asset the Group should estimate the future cash flows of the asset or the relevant assets group with the appropriate discount rate selected to reflect the present value of the future cash flows.Fair value of unlisted equity investments The group uses the market method to determine the fair value of unlisted equity investments. This requires the group to determine comparable listed companies select market multipliers estimate liquidity discounts etc. so it is uncertain.Development expenditures When determining the capitalization amount management should make assumptions such as the expected cash flows of the assets related the applicable discount rate and expected benefit period.Deferred tax assets The Group should recognize the deferred income tax assets arising from all the existing unutilized tax deficits and deductible temporary differences to the extent of the amount of the taxable income which it is most likely to obtain and which can be deducted from the deductible temporary differences. Enormous accounting judgments as well as the tax planning are compulsory for management to estimate the time and amount of prospective taxable profits and thus determine the appropriate amount of the deferred tax assets concerned.Warranty The Group provides warranties on automobile and undertakes to repair or replace items that fail to perform satisfactorily based on certain pre-determined conditions. Factors that influence estimation of related warranty claim include: 1) renewal of laws and regulations; 2) quality promotion of Group products; 3) change of parts and labour cost. In general the Group records warranty based on selling volume and estimated compensatory unit warranty cost deduction multi-agreed compensation from suppliers. As at balance sheet day the Group launches retrospective analysis on warranty carrying amount in consideration of accrual warranty payment during relative warranty period and recent trends of product renovation and replacement and further adjustment if necessary. Any increase or decrease in the provision would affect profit or loss in future years.Lessee Incremental Borrowing Rate For leases for which the interest rate implicit in the lease cannot be determined the Group uses the lessee's incremental borrowing rate as the discount rate to calculate the present value of lease payments. When determining the incremental borrowing rate the Group takes the observable interest rate as the reference basis for determining the incremental borrowing rate according to the economic environment in which it is located. The reference interest rate is adjusted according to the specific conditions of the leasing business to obtain the applicable incremental borrowing rate. 35. Significant accounting judgments and estimates (1) Significant accounting policy changes □ Applicable √ Not applicable (2) Changes in significant accounting estimates □ Applicable √ Not applicable 85Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report VI. TAXES 1. Main taxes and tax rates Value added tax The income from the sale of goods and the income from the provision of services are calculated at the tax (“VAT”) rates of 13% and 6% respectively and the VAT is calculated on the basis of the difference after deducting the input tax that is allowed to be deducted in the current period.Consumption tax Consumption tax is calculated at 1% 3% or 5% of taxable income.City maintenance and construction tax 5% or 7% of the turnover tax paid is calculated and paid.Educational surcharge 3% of the actual turnover tax paid is calculated and paid.Local educational surcharge 2% of the actual turnover tax paid is calculated and paid.Corporate income tax Corporate income tax is paid at 15% or 25% of taxable income. 2. Tax benefits According to the relevant provisions of the national high-tech identification and relevant tax preferential policies the following companies of the Group are identified as high-tech enterprises and are subjected to the preferential corporate income tax rate of 15% within the prescribed period: the company (2021-2023) and the Company’s subsidiaries including Hebei Changan Automobile Company Limited (2020-2022) Deepal Automobile Technology Company Limited (2021-2023).According to the Announcement on Continuing the Income Tax Policy for Enterprises in the Large-scale Development of the Western Region jointly issued by the Ministry of Finance the State Administration of Taxation and the National Development and Reform Commission from January 1 2021 to December 31 2030 enterprise income tax will be levied at a reduced rate of 15% for encouraged industrial enterprises located in the western region. Chongqing Changan Automobile International Sales Service Co. Ltd. Chongqing Changan Special Purpose Vehicle Co. Ltd. Chongqing Changan Automobile Customer Service Co. Ltd. Chongqing Lingyao Automobile Co. Ltd. and Chongqing Chehemei Technology Co. Ltd. subsidiaries of the Company meet the above requirements and are subject to corporate income tax calculated at a 15% corporate income tax rate.According to the announcement on enterprise income tax policy for promoting the high-quality development of integrated circuit industry and software industry jointly issued by the Ministry of finance the State Administration of Taxation the development and Reform Commission and the Ministry of industry and information technology integrated circuit design equipment materials packaging testing enterprises and software enterprises encouraged by the State shall be exempted from enterprise income tax from the first year to the second year from the profit making year From the third year to the fifth year the enterprise income tax shall be reduced by half at the statutory tax rate of 25%. Chongqing Changan Automotive Software Technology Co. Ltd. a subsidiary of the company meets the above conditions and is subject to enterprise income tax at the statutory tax rate of half this year.VII. Notes to the consolidated financial statements 1. Cash In RMB Yuan Item Ending balance Beginning balance Cash 1886.16 32155.77 Cash at bank 64133735374.29 52455913791.28 Other cash 1852209303.76 1074237880.29 Total 65985946564.21 53530183827.34 As at 30 June 2023 the book value of restricted cash and cash equivalents is RMB 1832280514.67 which was mainly restricted for the issuance of acceptance bill (December 31 2022: RMB 1038748779.60).As at 30 June 2023 the cash at bank oversea is equivalent to RMB 1186263774.58 (December 31 2022: RMB 231286316.97). 86Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report As of June 30 2023 the monetary capital deposited by the group in the financial company of the related party was RMB 34557412889.08 (December 31 2022: RMB 34812952043.78). See note XII and 5 for details. The interest income of bank demand deposits is obtained according to the interest rate of bank demand deposits. 7-day bank call deposits and time deposits can be withdrawn at any time according to the group's cash demand and interest income is obtained according to the corresponding bank deposit interest rate. 2. Transactional financial assets In RMB Yuan Item Ending balance Beginning balance Equity instrument investment 262239446.37 251165128.80 Others 29150442.29 Total 262239446.37 280315571.09 As of June 30 2023 the trading financial assets measured at fair value are 27.09 million ordinary shares of Southwest Securities Co.Ltd. held by the group (December 31 2022: 33.63 million shares) and 26.05 million restricted shares held by the group in China Automobile Research automobile testing ground Co. Ltd. (December 31 2022: Nil). 3. Notes receivable (1) Classification of notes receivable In RMB Yuan Item Ending balance Beginning balance Commercial acceptance bill 22559968628.70 25838721743.62 Bank acceptance bill 11403949194.61 10010938909.34 Total 33963917823.31 35849660652.96 (2)Notes receivable pledged In RMB Yuan Item Pledged amount Commercial acceptance bill 6179911994.47 Bank acceptance bill 199543152.00 Total 6379455146.47 As of June 30 2023 the bills receivable of the above amount had been pledged for issuing bills payable. (3)Endorsed or discounted but unexpired notes receivable as at the end of reporting period In RMB Yuan Item Amount derecognized at the end of the Amount not derecognized at the end of period the period Commercial acceptance bill 5501433908.49 - Bank acceptance bill 228955.19 - Total 5501662863.68 - (4)At the end of the period the company transferred the bills to accounts receivable due to the drawer's non performance As at 30 June 2023 there was no note receivables converted to accounts receivable due to the inability of the drawer to perform the contract. (As at 31 December 2022: Nil) 4. Accounts receivable (1)Aging analysis of the accounts receivable 87Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report In RMB Yuan Aging Ending balance Beginning balance Within 1 year 2416543623.42 2905353787.00 1 to 2 years 71350324.51 176712124.08 2 to 3 years 6060396.21 25732015.24 Over 3 years 208767029.46 201045330.53 Total 2702721373.60 3308843256.85 Less: Provision (225703574.25) (240428841.56) Total 2477017799.35 3068414415.29 (2)The movements in provision for impairment of accounts receivable are as follows: In RMB Yuan Change amount in the current period Category Beginning balance Merger Withdrawal Ending balance Provision increase or reversal Write-off 2023.6.30240428841.5621786720.498683488.916323653.9938871822.72225703574.25 2022.12.31215274377.6235457297.584945346.855357486.79240428841.56 (3)Analysis of accounts receivable by category In RMB Yuan Ending balance Category Balance Provision Book value Amount % Amount % Individually analyzed for provision 1717016214.88 63.53 128730126.47 7.50 1717016214.88 Accounts receivable analyzed as groups for provision 985705158.72 36.47 96973447.78 9.84 985705158.72 Total 2702721373.60 100.00 225703574.25 8.35 2702721373.60 Beginning balance Category Balance Provision Book value Amount % Amount % Individually analyzed for provision 2059626543.23 62.25 152800930.19 7.42 2059626543.23 Accounts receivable analyzed as groups for provision 1249216713.62 37.75 87627911.37 7.01 1249216713.62 Total 3308843256.85 100.00 240428841.56 7.27 3308843256.85 (4)The Group’s accounts receivable was analyzed for provision by expected credit loss model In RMB Yuan Ending balance Aging Estimated face value for default Expected credit loss rate Expected credit loss for the (%) entire duration Within 1 year 754808931.73 0.19 1407868.22 1 to 2 years 58832021.35 6.24 3669447.39 2 to 3 years 5803750.00 16.02 929861.76 Over 3 years 166260455.64 54.71 90966270.41 Total 985705158.72 9.84 96973447.78 88Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Beginning balance Aging Estimated face value for default Expected credit loss rate Expected credit loss for the (%) entire duration Within 1 year 1031532359.36 0.41 4211660.35 1 to 2 years 30724065.06 7.24 2225905.84 2 to 3 years 25707148.00 16.02 4118732.53 Over 3 years 161253141.20 47.80 77071612.65 Total 1249216713.62 7.01 87627911.37 (5) Accounts receivable with top five ending balances collected by debtors As at June 30 2023 accounts receivable from Top 5 clients amounted to RMB 910077900.68 accounted for 33.67% of the total accounts receivable (December 31 2022: RMB 1880530647.71 accounted for 56.83% of the total amount). (6) Accounts receivable derecognized due to transfer of financial assets As of June 30 2023 the Group has no accounts receivable that are derecognized as the transfer of financial assets (December 31 2022: Nil). 5. Prepayments (1) Prepayments listed by aging In RMB Yuan Ending balance Beginning balance Aging Amount % Amount % Within 1 year 622741040.66 94.01 523061724.51 69.78 1 to 2 years 30083298.85 4.54 217460711.49 29.01 2 to 3 years 8860304.45 1.34 8858465.69 1.18 Over 3 years 704745.03 0.11 191360.31 0.03 Total 662389388.99 100.00 749572262.00 100.00 (2) Prepayments of the top five ending balances collected by prepayment object As at 30 June 2022 the total amount of the top five prepayments was RMB 1474271190.88 accounting for 38.15% of the total amount of prepayments (2021: RMB 1151298912.20 accounting for 35.52%). 6. Other receivables In RMB Yuan Item Ending balance Beginning balance Dividend receivable 180656814.04 Other receivables 778979126.16 1261157951.14 Total 959635940.20 1261157951.14 (1)Dividend receivable In RMB Yuan Project (or investee) Ending balance Beginning balance Weaponry Group Finance Co. Ltd 180656814.04 Total 180656814.04 (2)Other receivables 89Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 1) Aging analysis of other receivables In RMB Yuan Aging Ending balance Beginning balance Within 1 year 404062220.98 1192972701.51 1 to 2 years 324136540.21 57855077.50 2 to 3 years 48742138.29 1364188.70 Over 3 years 11184947.78 18062282.93 Total 788125847.26 1270254250.64 Less: Provision (9146721.10) (9096299.50) Total 778979126.16 1261157951.14 2) Other receivables are classified by nature In RMB Yuan Nature Ending balance Beginning balance Bond 382933957.10 16618938.83 Subsidies for new energy vehicles 191328464.00 667729527.63 Petty cash 52817507.27 63703195.18 Investment funds 35000000.00 399486432.52 Other 116899197.79 113619856.98 Total 778979126.16 1261157951.14 3) The changes in the provision for bad debts for other receivables based on the 12-month expected credit losses and the expected credit losses for the entire duration In RMB Yuan Change amount in the current period Category Beginning balance Withdrawal or Ending balance Provision reversal Write-off 2023.6.309096299.5074667.4024245.809146721.10 2022.12.317466239.961886641.46156581.92100000.009096299.50 4) Other receivables with top five ending balances collected by debtors In RMB Yuan Proportion in Ending Name Nature Ending balance Aging ending balance of balance of other receivables bad debt (%) provision First Bond 300000000.00 1 to 2 years 38.06 Second Subsidies for new energy vehicles 191328464.00 Within 1 year 24.28 Third Disposal of assets 48350040.00 2 to 3 years 6.13 Fourth Bond 44615500.00 Within 1 year 5.66 Fifth Equity investment funds 35000000.00 Within 1 year 4.44 Total 619294004.00 - 78.57 5) Other receivables derecognized due to transfer of financial assets As of June 30 2023 the Group has no other receivables derecognized as financial asset transfers. (December 31 2022: Nil). 7. Inventory (1) Classification of inventory 90Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report In RMB Yuan Ending balance Beginning balance Provision for Provision for impairment of impairment of inventories or inventories or Item Balance provision for provision for impairment of Net value Balance impairment of Net value contract contract performance performance costs costs Raw materials 926643222.25 387861235.15 538781987.10 1230104093.50 439269923.99 790834169.51 Work in transit 178075579.62 178075579.62 130255961.90 130255961.90 Work in progress 1126031029.08 68920010.07 1057111019.01 1719902124.07 53609953.08 1666292170.99 Commodity stock 8543057327.85 97202201.72 8445855126.13 3264190903.27 87522918.36 3176667984.91 Consigned processing 26582772.70 26582772.70 material Spare parts 33116871.58 33116871.58 32674452.89 32674452.89 Total 10806924030.38 553983446.94 10252940583.44 6403710308.33 580402795.43 5823307512.90 (2) Provision for inventory In RMB Yuan Beginning Increase Decrease Item balance Ending balance Provision Other Reversal Write-off Raw materials 439269923.99 68334317.49 19789507.89 240682.47 139291831.75 387861235.15 Work in progress 53609953.08 28045494.93 330076.99 12405360.95 68920010.07 Commodity stock 87522918.36 17771158.05 160909600.79 3234731.90 165766743.58 97202201.72 Total 580402795.43 114150970.47 180699108.68 3805491.36 317463936.28 553983446.94 8. Contract assets In RMB Yuan Ending balance Beginning balance Item Balance Provision for Provision for impairment Net value Balance impairment Net value Contract assets 2712885743.74 485561233.57 2227324510.17 747871586.89 289482399.79 458389187.10 Total 2712885743.74 485561233.57 2227324510.17 747871586.89 289482399.79 458389187.10 Current contract assets provision for impairment： In RMB Yuan Beginning balance Provision Turn back Resale Ending balance 2023.6.30289482399.7965572656.78135456176.994950000.00485561233.56 2022.12.31169661981.98129619022.819798605.00289482399.79 91Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 9. Assets held for sale In RMB Yuan Item Balance Provision for Net value Estimated Expected Fair Value impairment disposal costs disposal time Assets held for 327144.11 327144.11 Within 1 year sale Total 327144.11 327144.11 10. Other current assets In RMB Yuan Item Ending balance Beginning balance Accrual input tax 874407379.73 803647039.82 Prepaid taxes 237176376.68 250386657.89 Others 14765170.48 745970.48 Total 1126348926.89 1054779668.19 92Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 11. Long-term equity investments In RMB Yuan Increase / decrease Provision Investee Beginning balance Investment income under Ending balance ending Addition Other decreases equity method balance I. Joint Venture Changan Ford Automobile Co. Ltd. 712459351.85 399619898.50 1112079250.35 Changan Mazda Automobile Co. Ltd. 1433304456.32 (100026283.01) 1333278173.31 Changan Mazda Engine Co. Ltd. 824042049.05 4107980.55 828150029.60 Nanchang Jiangling Holding Co. Ltd. 1810629644.86 146167915.87 1956797560.73 Subtotal 4780435502.08 449869511.91 5230305013.99 II. Associates Chongqing Changan Kuayue Automobile Co.Ltd. 209768936.34 5402511.72 215171448.06 Changan Automobile Financing Co.Ltd 2778898410.33 172182412.71 2951080823.04 Nanjing Chelai Travel Technology Co. Ltd. 624773.31 (92277.85) 532495.46 Hunan Guoxin Semiconductor Technology Co.Ltd. 25452425.26 71917.19 25524342.45 Jiangling Holding Co. Ltd.(note 1) Chongqing Changan Kuayue Automobile Sales Co. Ltd. (note 1) Nanjing Leading Equity Investment Management Co. Ltd. (Limited Partnership) 2570421464.70 (51784.35) 2570369680.35 Nanjing Leading Equity Investment Partnership 1112210.69 (5089.84) 1107120.85 Zhongqi Chuangzhi Technology Co. Ltd. 168492790.78 (6754636.46) 161738154.32 Chongqing Changxin Zhiqi Private Equity Investment Fund Partnership (Limited 170440054.08 242103.89 170682157.97 Partnership) Anhe Chongqing Dingfeng Automobile Contract Private Equity Investment Fund 61568706.08 4.26 61568710.34 Avatr Technology (Chongqing) Co. Ltd 2644535940.48 (745447867.08) 1899088073.40 Chongqing Changan Innovation Private Equity 1000844.59 446.93 1001291.52 93Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Investment Fund Partnership Enterprise (Limited Partnership) Anhe (Chongqing) Equity Investment Fund Management Co. Ltd. 5150787.41 (553650.85) 4597136.56 Hangzhou Chelizi Intelligent Technology Co.Ltd. 3020026.80 3020026.80 Master Changan Automobile Co. Ltd. 45248645.36 6823643.69 52072289.05 Chongqing Changxian Intelligent Technology Co. Ltd 102000000.00 66933.68 102066933.68 Deepal Automobile Technology Co. Ltd.(note 2)940490937.99(67105457.17)(873385480.82) Time FAW Power Battery Co. Ltd.(note 3) 252012401.16 2691403.28 254703804.44 Chongqing Wutong Chelian Technology Co.Ltd. (note 3) 75267178.90 6686538.61 81953717.51 Western Car Network (Chongqing) Co. Ltd.(note 3) 2478830.94 (151734.46) 2327096.48 Beijing Fang’an cresent taxi Co. Ltd. (note 4) Subtotal 9626226954.20 431758411.00 (625994582.10) (873385480.82) 8558605302.28 Total 14406662456.28 431758411.00 (176125070.19) (873385480.82) 13788910316.27 Note 1: As of June 30 2023 the Group had no obligation to bear additional losses to Chongqing Changan Kuayue Vehicle Marketing Co. Ltd. and Jiangling Holdings Co. Ltd. Therefore when they incurred excess losses only long-term equity investments were written down to zero and no excess losses related to investments in the aforementioned companies were recognized.Note 2: In February 2023 due to the acquisition of equity in Deepal Automobile Technology Co. Ltd. by the group it changed from an associate to a subsidiary.Note 3: This year the Group increased the investment of 329758411.00 yuan in the affiliated enterprises Time FAW Power Battery Co. Ltd. wutong Chelian Technology Co. Ltd. and Western Chewang (Chongqing) Co. Ltd. which is the result of the Group's acquisition of Deepal Automobile Technology Co. Ltd. and its long-term equity investment in the affiliated enterprises is included in the consolidation scope.Note 4: In January 2023 the Group completed the equity disposal of Beijing Fangan Crescent Taxi Co. Ltd. 94Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 12. Investment in other equity instruments In RMB Yuan Accumulative Reason for being changes in fair designated Item value included in other Fair value Dividends Income as fair value through other comprehensive comprehensive income income China South Industry Group Finance Co.Ltd. 181979200.00 339000000.00 180656814.04 Unlisted equity instruments Guoqi (Beijing) Intelligent Network Association Automotive Research Institute 2700000.00 52700000.00 Unlisted equity Co. Ltd. instruments Guoqi Automobile Power Cell Research Co. Ltd. 40000000.00 Unlisted equity instruments China South Industry Group Financial Leasing Co. Ltd. 3698000.00 34250000.00 Unlisted equity instruments Zhong Fa Lian Investment Co. Ltd. 21000000.00 Unlisted equity instruments CAERI(Beijing) automobile Lightweight Technology Research 3000000.00 Unlisted equity instruments Institution Co. Ltd.Total 188377200.00 489950000.00 180656814.04 13. Investment property Cost Model In RMB Yuan Item Buildings Total I. Original cost 1. Opening balance 10050100.00 10050100.00 2. Increase in current period 3. Decrease in current period 4. Ending balance 10050100.00 10050100.00 II. Accumulated depreciation and amortization 1. Opening balance 3627384.96 3627384.96 2. Increase in current period 113355.78 113355.78 3. Decrease in current period 4. Ending balance 3740740.74 3740740.74 III. Impairment provision 1. Opening balance 2. Increase in current period 3. Decrease in current period 4. Ending balance IV. Net Value 1. Ending 6309359.26 6309359.26 2. Beginning 6422715.04 6422715.04 The investment property is rented to third parties in the form of operating lease. 95Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report As at 30 June 2023 there was no investment property without property certificate (As at 31 December 2021: Nil). 14. Fixed assets (1) Details of fixed assets In RMB Yuan Item Buildings Machinery Vehicles Other Equipment Total I. Original cost Beginning 9828625137.70 26295137118.43 1983195890.87 9475715171.05 47582673318.05 Purchase 4473693.57 215663.71 7809446.06 12498803.34 Transfer from Construction in 61804269.27 340347569.12 13604766.67 440568271.53 856324876.59 progress Increase in business merger 470810107.30 97376.64 96160690.62 567068174.56 Other additions 6587437.89 5495575.99 60580.42 445449.63 12589043.93 Disposal 299969783.23 170283554.82 39508903.91 102557039.61 612319281.57 Government grants 25065921.11 36347887.20 61413808.31 Other decrease 361031.96 9923097.01 205904.59 10490033.56 Ending 9596686029.67 26910991491.47 1921111582.61 9918141989.28 48346931093.03 II.Accumulated depreciation Beginning 3123481499.40 16387379193.35 712742045.45 5343343137.24 25566945875.44 Accrual 171728462.63 801278672.10 141340209.22 378124663.67 1492472007.62 Increase in business merger 88078845.80 11806.91 30208499.83 118299152.54 Other additions 2817640.69 4561751.68 8603.52 775586.11 8163582.00 Disposal 215472125.28 133916182.37 28858045.79 97997712.86 476244066.30 Other decrease 358999.11 8831258.30 102262.81 9292520.22 Ending 3082196478.33 17138551022.26 825142356.50 5654454173.99 26700344031.08 III.Impairment Provision Beginning 97718327.95 2189788051.83 57769334.61 323687036.78 2668962751.17 Accrual 4087988.86 121158826.10 42369038.67 17229525.66 184845379.29 Increase in business merger 62029.55 252215.89 314245.44 Disposal 34731080.99 34393754.16 4415040.34 3348143.93 76888019.42 Ending 67075235.82 2276615153.32 95723332.94 337820634.40 2777234356.48 IV. Net Value Ending 6447414315.52 7495825315.89 1000245893.17 3925867180.89 18869352705.47 Beginning 6607425310.35 7717969873.25 1212684510.81 3808684997.03 19346764691.44 (2) Fixed assets that are temporarily unused On June 30 2023 the fixed assets with a book value of RMB 108924744.94 (December 31 2022: RMB 191192253.37) were tem porarily idle due to product upgrading and other reasons. 96Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report (3) The fixed assets which are rented out under operating leases In RMB Yuan Item Ending Buildings 184106042.14 Vehicles 915602548.69 Total 1099708590.83 (4) Fixed assets with incomplete property rights certificates In RMB Yuan Item Book value Reasons for not completing the property rights certificate Engine and vehicle project 917466884.66 Processing Global R&D Center Project 9246434.77 Processing Total 926713319.43 15. Construction in progress (1) Details of construction in progress In RMB Yuan Ending balance Beginning balance Item Balance Provision Carrying amount Balance Provision Carrying amount Mini-bus production 80451176.96 80451176.96 75025377.82 75025377.82 equipment Car production 298244431.711310363.23296934068.48242918939.8622624011.22220294928.64 equipment Engine plant 608138520.52 608138520.52 504558659.05 504558659.05 Vehicle research 24918534.1624918534.1617740102.5017740102.50 institution Car production Project of 52500806.38 52500806.38 55863516.26 55863516.26 Hefei Changan Yubei Factory Replacement and Upgrading 426535063.94 426535063.94 41224362.58 41224362.58 Construction Project Nanjing Changan Project 493667793.08 493667793.08 385922235.89 385922235.89 Others 265463471.46 23108966.89 242354504.57 110378003.02 23108967.12 87269035.90 Total 2249919798.21 24419330.12 2225500468.09 1433631196.98 45732978.34 1387898218.64 97Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report (2) Movements of significant construction in progress In RMB Yuan The project Budget Beginning investments’ Progress of Item balance Addition Transferred to Other fixed assets deduction Ending balance proportion construction Source of funds (In 1000 RMB) of budget (%) (%) Mini-bus production 137470.00 75025377.82 116170932.89 110715639.06 29494.69 80451176.96 70.00 70.00 Self-funded equipment Car production Self-raised and 360738.00 220294928.64 88627425.25 11987406.41 879.00 296934068.48 37.00 37.00 additional equipment issuance Self-raised and Engine plant 485216.00 504558659.05 175347789.87 71758364.90 9563.50 608138520.52 67.00 67.00 additional issuance Vehicle research 209906.00 17740102.50 36321076.06 29142644.40 24918534.16 77.00 77.00 Self-funded institution Car production Self-raised and project of 394980.00 55863516.26 29114023.06 15540120.15 16936612.79 52500806.38 89.00 89.00 additional Hefei Changan issuance Yubei Factory Replacement and Upgrading 450000.00 41224362.58 386152904.19 842202.83 426535063.94 10.00 10.00 Self-funded Construction Project Nanjing Changan Project 231028.77 385922235.89 117819350.58 9443204.39 630589.00 493667793.08 22.00 22.00 Self-funded Others 87269035.90 762822965.95 607737497.28 242354504.57 Total 1387898218.64 1712376467.85 856324876.59 18449341.81 2225500468.09 98Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report (3) The movement of impairment for construction in progress is as follows: In RMB Yuan Item Beginning balance Addition Deduction Ending balance June 30 2023 45732978.34 21313648.22 24419330.12 December 31 2022 71691670.00 1533334.00 27492025.66 45732978.34 16. Right-of-use assets In RMB Yuan Item Buildings Total I. Original cost 1. Beginning 152893426.61 152893426.61 2. Purchase 91206361.68 91206361.68 3. Disposal 34586561.85 34586561.85 4. Other deduction 216647.90 216647.90 5. Ending 278469702.24 278469702.24 II. Accumulated depreciation 1. Beginning 52080040.60 52080040.60 2. Purchase 32246838.71 32246838.71 3. Disposal 7382368.87 7382368.87 4. Other deduction 5. Ending 91709248.18 91709248.18 III. Impairment provision 1. Beginning 2. Purchase 3. Disposal 4. Other deduction 5. Ending III. Carrying amount 186760454.06 186760454.06 1. Ending 100813386.01 100813386.01 2. Beginning 152893426.61 152893426.61 17. Intangible assets (1) Details of intangible assets In RMB Yuan Item Land use rights Patent Non-patent Software use Trademark use technology rights rights Total I. Original cost Beginning 2237966691.60 85556571.30 7695744860.28 845391055.17 211864157.55 11076523335.90 Purchase 841400.00 16280912.97 17122312.97 Internal research and 891781541.36 891781541.36 development 99Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Increase in business merger 8751791175.80 3812679.22 2412758750.00 11168362605.02 Other additions 244259.88 244259.88 Government subsidies 696933.96 696933.96 Ending 2237966691.60 85556571.30 17340158977.44 865031973.28 2624622907.55 23153337121.17 II. Accumulated amortization Beginning 468031897.59 7129714.27 4904544443.73 726462315.72 211791516.98 6317959888.29 Accrual 23244982.66 4515887.14 492517355.98 17725650.40 100531614.60 638535490.78 Increase in business merger 658468887.40 1531371.38 660000258.78 Ending 491276880.25 11645601.41 6055530687.11 745719337.50 312323131.58 7616495637.85 III. Impairment provision Beginning 288560268.76 23617923.17 312178191.93 Accrual 41460645.81 41460645.81 Increase in business merger 114723135.98 114723135.98 Ending 444744050.55 23617923.17 468361973.72 IV 、 Carrying amount Ending 1746689811.35 73910969.89 10839884239.78 95694712.61 2312299775.97 15068479509.60 Beginning 1769934794.01 78426857.03 2502640147.79 95310816.28 72640.57 4446385255.68 As of June 30 2023 intangible assets formed through internal research and development accounted for 71.94% of the year-end book value of intangible assets (December 31 2022: 56.28%).As of June 30 2023 there is no land use rights that have not completed the land use right certificate (December 31 2022: Nil). 18. Development expenditure In RMB Yuan Deduction Item Beginning balance Recognized as Charged to income Ending balance intangible assets Statement of the Other deduction current year Automobile Development 723211177.47 1063209112.26 568748628.02 891781541.36 69615120.74 Total 723211177.47 1063209112.26 568748628.02 891781541.36 69615120.74 19. Development expenditure (1) Original book value of goodwill In RMB Yuan Item Beginning balance Addition Deduction Ending balance Hebei Changan Automobile Co. Ltd 9804394.00 9804394.00 Nanjing Changan Automobile Co. Ltd Deepal Automobile Technology Co. Ltd 1799533524.87 1799533524.87 100Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Total 9804394.00 1799533524.87 1809337918.87 (2) Provision for goodwill In RMB Yuan Item Beginning balance Addition Deduction Ending balance Nanjing Changan Automobile Co. Ltd. 73465335.00 73465335.00 Total 73465335.00 73465335.00 20. Long-term deferred expenses In RMB Yuan Item Beginning balance Addition Deduction Ending balance Long-term deferred expenses 26375422.17 330568.52 1468484.08 25237506.61 Total 26375422.17 330568.52 1468484.08 25237506.61 21. Deferred tax assets and liabilities (1) Deferred income tax assets that are not offset: In RMB Yuan Ending balance Beginning balance Item Deductible temporary differences Deferred tax assets Deductible temporary differences Deferred tax assets Assets provision 3335103631.55 500307251.00 3278951051.51 491238489.39 Accrued expenses and contingent liabilities 8746751245.95 1322800648.65 8585308052.56 1298584169.65 Unpaid tech development expense and advertisement 148198861.26 22229829.19 372397166.51 55859574.98 expense Deferred income 2681013729.64 452674206.27 2699509959.27 457007113.15 Unpaid salary and bonus and others 6041961732.14 913093121.89 4831140039.89 725797840.01 Total 20953029200.54 3211105057.00 19767306269.74 3028487187.18 (2) Deferred income tax liabilities that are not offset: In RMB Yuan Ending balance Beginning balance Item Taxable temporary Deferred tax Taxable temporary Deferred tax differences liabilities differences liabilities Changes in fair value of trading financial assets 392544668.53 58881700.28 358180218.36 53727032.75 Fair value adjustment of business combination not under common control 9556125001.53 1433418750.23 204733319.00 30709997.85 101Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Long-term equity investment 941637804.40 141245670.66 971329619.28 145699442.89 Other 43149109.32 8198330.77 46001784.40 6900267.67 Total 10933456583.78 1641744451.94 1580244941.04 237036741.16 (3) Details of unrecognized deferred tax assets In RMB Yuan Item Ending balance Beginning balance The deductible temporary difference 1365435669.75 1785535297.97 The deductible tax loss 10857072476.10 3908340793.95 Total 12222508145.85 5693876091.92 Note: Due to the uncertainty of whether there will be enough taxable profit in future to utilize the above deductible loss no deferred tax assets have been recognized accordingly. (4) Maturity period for unrecognized deductible tax losses: In RMB Yuan Year Ending balance Beginning balance Notes 2023719486343.29719486343.29 2024644243430.69644243430.69 2025669056651.63669056651.63 2026172527777.26172527777.26 2027 and beyond 8651758273.23 1703026591.08 Total 10857072476.10 3908340793.95 22. Short-term loans In RMB Yuan Item Ending balance Beginning balance Mortgage loans 29000000.00 Guaranteed loan 50000000.00 Total 50000000.00 29000000.00 As at 30 June 2023 there was no overdue short-term loan (as at 31 December 2022: Nil). 23. Trading financial liabilities In RMB Yuan Item Ending balance Beginning balance Trading financial liabilities 37813520.40 Total 37813520.40 24. Notes payable In RMB Yuan 102Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Item Ending balance Beginning balance Commercial acceptance bill 2778006144.76 5001155687.84 Bank acceptance bill 30934066264.26 17071638176.99 Total 33712072409.02 22072793864.83 As at 30 June 2023 there were no significant accounts payable aged over one year (as at 31 December 2022: Nil). 25. Accounts payable In RMB Yuan Item Ending balance Beginning balance Accounts payable 30465634254.25 29449664138.75 Total 30465634254.25 29449664138.75 As at 30 June 2023 there were no significant accounts payable aged over one year (as at 31 December 2022: Nil). 26. Contract liabilities In RMB Yuan Item Ending balance Beginning balance Advance payment 6085144617.15 4808762223.46 Advance service payment 1030934007.43 846494569.20 Total 7116078624.58 5655256792.66 27. Payroll payable (1) Payroll payable In RMB Yuan Item Beginning balance Addition Deduction Ending balance Short term salary benefits 2716484740.12 5070477217.90 3908885458.12 3878076499.90 Defined contribution plans 88857749.73 427650480.66 393425847.42 123082382.97 Early retirement benefits 1816000.00 1816000.00 Total 2807158489.85 5498127698.56 4302311305.54 4002974882.87 (2) Short term salary benefits： In RMB Yuan Item Beginning balance Addition Deduction Ending balance 1. Salary bonus allowance and subsidy 2221656081.04 4158712198.93 2906028582.43 3474339697.54 2. Employee benefit 50756371.68 187911611.89 231383764.66 7284218.91 3. Social insurance 33848460.18 317201669.69 290720761.46 60329368.41 103Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Medical insurance 21350192.95 268524262.03 246361315.68 43513139.30 Industrial injury insurance 11102522.24 29456054.74 23747390.13 16811186.85 Maternity insurance 1395744.99 442746.86 1833449.59 5042.26 Supplementary medical insurance 18778606.06 18778606.06 4. Housing accumulation fund 83944161.72 259477229.93 309278181.88 34143209.77 5. Labor fund and employee 326279665.50147174507.46171474167.69301980005.27 education fund Total 2716484740.12 5070477217.90 3908885458.12 3878076499.90 (3) Defined contribution plans： In RMB Yuan Item Beginning balance Addition Deduction Ending balance 1. Basic retirement security 79031084.59 405052440.21 374117320.86 109966203.94 2. Unemployment insurance 9826665.14 22598040.45 19308526.56 13116179.03 Total 88857749.73 427650480.66 393425847.42 123082382.97 The salary bonus allowance and subsidy employee benefits and other social insurances mentioned above are paid in time according to related laws and regulations and sets of the Group. 28. Taxes payable In RMB Yuan Item Ending balance Beginning balance Value-added tax 726595058.42 655162944.40 Consumption tax 427033929.08 378822293.63 Corporate income tax 261659659.74 550250134.24 City maintenance and construction tax 90984717.30 106797577.85 Others 40516904.58 58913132.20 Total 1546790269.12 1749946082.32 29. Other payables In RMB Yuan Item Ending balance Beginning balance Interest payable 16112069.40 1478888.85 Dividend Payable 2341524610.92 79742.80 Other payables 6104890752.47 6081207793.02 Total 8462527432.79 6082766424.67 104Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report （1） Interest payable In RMB Yuan Item Ending balance Beginning balance Interest on long-term loans with installment payments and due repayment 22222.21 562222.18 of principal Interest payable on short-term loans 89847.20 Interest payable on corporate bonds 15999999.99 916666.67 Total 16112069.40 1478888.85 （2） Dividend Payable In RMB Yuan Item Ending balance Beginning balance Common stock dividends 2341414868.12 Minority shareholder dividends 109742.80 79742.80 Total 2341524610.92 79742.80 （3） Other payables In RMB Yuan Item Ending balance Beginning balance Payment for the purchase and construction of fixed assets intangible assets and engineering deposit 1660151791.66 1190478260.12 Customer and supplier deposit 1394012215.84 839653876.07 Advertising expenses 689677376.28 505569065.16 Storage and shipping fees 595944380.19 382409902.25 Treasury stock repurchase obligation 442866474.72 627060416.52 Repair and processing costs 272324171.31 278765596.52 National Supplementary Advance Appropriation 175967030.00 697956559.00 Advance payment for land and plant disposal 635268035.18 Other 873947312.47 924046082.20 Total 6104890752.47 6081207793.02 30. Non-current liability within 1 year In RMB Yuan Item Ending balance Beginning balance Long-term loan within 1 year 4000000.00 604000000.00 Long-term payables within 1 year 244429325.65 Lease liabilities within 1 year 65596855.90 37294575.69 Total 69596855.90 885723901.34 105Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 31. Other current liabilities In RMB Yuan Item Ending balance Beginning balance Accrued commercial discount payable 4467809005.78 3837216057.38 Accrued market development expense 976607722.67 1004950610.70 Accrued transportation fee 803463091.70 728264657.72 Accrued technology royalty 650010691.12 534463454.23 Accrued integrated services fee 83460160.55 87715544.50 Accrued negative points for fuel consumption 73106266.32 59308609.28 Accrued labor service fee 51173874.83 107051967.02 Accrued utilities 35050613.99 60370787.91 Others 250614221.08 207702978.88 Total 7391295648.04 6627044667.62 32. Long-term Loan In RMB Yuan Item Ending balance Beginning balance Credit loan 80000000.00 640000000.00 Deduction: Loan within 1 year 4000000.00 604000000.00 Net Long-term Loan 76000000.00 36000000.00 As at June 30 2023 the interest rates of the above loans were 1.00% (as at 31 December 2022: 1.00%-3.00%).As at June 30 2023 there is no overdue long-term loans (as at 31 December 2022: Nil). 33. Bonds payable In RMB Yuan Item Ending balance Beginning balance Corporate bonds 999558490.56 999528301.88 Total 999558490.56 999528301.88 Our company publicly issued technology innovation company bonds (Phase 1) to professional investors in December 2022 with a face value of RMB 1000000000.00 and a fixed coupon rate of 3%. The simple interest is paid annually from December 20 2023 to 2027 and the final redemption date is December 20 2027. 34. Lease liabilities In RMB Yuan Item Ending balance Beginning balance Lease liabilities 186466884.11 97499973.67 Less：Lease liabilities within 1 year 65596855.90 37294575.69 Net lease liabilities 120870028.21 60205397.98 106Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 35. Long-term payables In RMB Yuan Item Ending balance Beginning balance Long-term payables 408939511.34 Special payables 136176629.42 144579238.78 Total 136176629.42 553518750.12 (1) Long-term payables: In RMB Yuan Item Ending balance Beginning balance Purchase of fixed assets 653368836.99 Less：Long-term payables within 1 year 244429325.65 Total 408939511.34 (2) Special payables: In RMB Yuan Item Beginning balance Addition Deduction Ending balance Intelligent manufacturing project 54122972.00 42324009.53 44438445.62 52008535.91 Lightweight design of automobile structure 14410557.94 390000.00 1962400.84 12838157.10 Others 76045708.84 23993009.70 28708782.13 71329936.41 Total 144579238.78 66707019.23 75109628.59 136176629.42 36. Long-term payroll payable In RMB Yuan Item Ending balance Beginning balance Net obligation of defined benefit plan 26358585.90 29227000.00 Early retirement 5786000.00 5786000.00 Total 32144585.90 35013000.00 37. Contingent liabilities In RMB Yuan Item Ending balance Beginning balance Warranty 5228857409.75 4152001660.31 Contingent liabilities of contract performance 434908181.43 437297661.18 Total 5663765591.18 4589299321.49 107Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 38. Deferred income In RMB Yuan Item Beginning balance Addition Deduction Ending balance Government grants related to assets 222169206.66 63820286.00 72095887.20 213893605.46 Government grants related to gains 125399342.96 11700000.00 450000.00 136649342.96 Total 347568549.62 75520286.00 72545887.20 350542948.42 Details of government grants are as follows: In RMB Yuan Liability Beginning balance Addition Deduction Ending balance Related to assets: 222169206.66 63820286.00 9985144.93 62110742.27 Production and construction subsidies 166416924.20 63820286.00 9985144.93 62110742.27 Other government 55752282.46 subsidies Related to gains: 125399342.96 11700000.00 450000.00 R&D technology subsidies 121750757.27 11700000.00 450000.00 Other government subsidies 3648585.69 Total 347568549.62 75520286.00 10435144.93 62110742.27 39. Other non-current liabilities In RMB Yuan Item Ending balance Beginning balance Advance service payment 2217804236.36 1728721535.34 Deduction: Advance service payment within 1 year 1030934007.43 846494569.20 Net other non-current liabilities 1186870228.93 882226966.14 40. Share capital In RMB Yuan Changes（+，-）Beginning balance Additional Stock Provident Ending balance issued dividend fund Others transfer I. Shares with sales restrictions 675775474.00 (46200160.00) 629575314.00 1. State-owned legal person shares 515311738.00 515311738.00 2. Other domestic shares 159248366.00 (46200160.00) 113048206.00 Including: Domestic legal person shares 108Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Domestic natural person shares 159248366.00 (46200160.00) 113048206.00 3. Foreign shares 1215370.00 1215370.00 Including: Foreign legal person shares Foreign natural person shares II. Shares without sales restrictions 9246023948.00 43723738.00 9289747686.00 1.Ordinary shares denominated in RMB 7604409171.00 43723738.00 7648132909.00 2. Domestic listed foreign shares 1641614777.00 1641614777.00 III. Total shares 9921799422.00 (2476422.00) 9919323000.00 41. Capital reserves In RMB Yuan Item Beginning balance Addition Deduction Ending balance Share premium 6485177332.59 286327307.00 7193909.31 6764310730.28 Share-based payments 648749767.92 187899000.00 286327307.00 550321460.92 Capital reserve transferred arising from 44496899.00 44496899.00 the old standards reserve of equity investments 17015985.20 17015985.20 Other capital reserves (Note) 1337366701.06 5395781.70 663566110.70 679196372.06 Total 8532806685.77 479622088.70 957087327.01 8055341447.46 Note : In 2023 the decrease in other capital reserves was mainly due to the transfer of changes in capital reserves under the equity method accounting involved in the original holding of equity in Deepal Automobile Technology Co. Ltd. into the current period's profit and loss. 42. Treasury stock In RMB Yuan Item Beginning balance Addition Deduction Ending balance Treasury stock 627060416.52 184193941.80 442866474.72 Total 627060416.52 184193941.80 442866474.72 109Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 43. Other comprehensive income In RMB Yuan Amount for this reporting period Deduct: amounts Deduct: other Amount transferred to comprehensiv attributa income statement e income in ble to Beginning which were the previous Item Amount period and Deduct: minority balance Amount attributable interests Ending balance before tax recognized in other transferred to Income tax to owners comprehensive retained income in prior earnings in period the current period I. Other comprehensive income that cannot be transferred to profit or loss under the equity 157170398.18 157170398.18 method Change in net liability or assets from defined benefit plan (185000.00) (185000.00) Other comprehensive income that cannot be transferred to profit or loss under the (2765221.82) (2765221.82) equity method Changes in the fair value of other equity instrument investments 160120620.00 160120620.00 II. Other comprehensive income will be reclassified to profit or loss in subsequent (58328782.76) 47734187.34 47734187.34 (10594595.42) period Other comprehensive income that can be transferred to profit or loss under the equity (75815.98) (75815.98) method Foreign currency translation difference (58252966.78) 47734187.34 47734187.34 (10518779.44) Total 98841615.42 47734187.34 47734187.34 146575802.76 110Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 44. Special reserves In RMB Yuan Item Beginning balance Addition Deduction Ending balance Safety fund 24090898.05 64708453.30 35232765.78 53566585.57 Total 24090898.05 64708453.30 35232765.78 53566585.57 45. Surplus reserves In RMB Yuan Item Beginning balance Addition Deduction Ending balance Statutory surplus 3528137635.53 3528137635.53 Total 3528137635.53 3528137635.53 46. Retained earnings In RMB Yuan Item Current period Prior period Retained earnings at beginning of the year 41379489865.45 35900674525.13 Add: Profits attributable to parent company for the current year 7652979346.80 5857626135.78 Less: Ordinary share dividend of cash 2341414868.12 1778856191.54 Retained earnings at the end of year 46691054344.13 39979444469.37 47. Operating revenue and cost In RMB Yuan Amount for this period Amount for prior period Item Revenue Cost Revenue Cost Main business 64198056038.61 53253026788.59 55281269652.99 44486900457.55 Other business 1294042830.40 748972479.99 1292298740.72 873190024.65 Total 65492098869.01 54001999268.58 56573568393.71 45360090482.20 48. Tax and surcharges In RMB Yuan Item Amount for this period Amount for prior period Consumption tax 1666317085.12 1469234309.60 City maintenance and construction tax 208432679.24 194046087.99 Educational surcharge 140534177.17 133244356.31 Others 170890307.46 149775477.87 Total 2186174248.99 1946300231.77 111Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 49. Operating expenses In RMB Yuan Item Amount for this period Amount for prior period Sales service fee 1248854504.34 1151982258.69 Promotion advertising fee 1084798251.79 552426701.41 Payroll and welfare 430787399.64 297621384.05 Transportation and storage fees 220838227.15 205973233.78 Travelling expenses 47325735.92 30218731.48 Package expenses 11749644.92 28619986.39 Others 24080857.61 18487525.97 Total 3068434621.37 2285329821.77 50. General and administrative expenses In RMB Yuan Item Amount for this period Amount for prior period Payroll and welfare 1787629699.79 1766803412.30 Depreciation and amortization 231626256.31 110312454.37 Traffic expenses and travelling expenses 34511835.46 21235281.45 Others 218192616.99 285683156.98 Total 2271960408.55 2184034305.10 51. Research and development expenses In RMB Yuan Item Amount for this period Amount for prior period Payroll and welfare 1349892332.55 819010682.93 Depreciation and amortization 1015646669.62 614117321.15 Subcontract fee 287631512.09 272218189.13 Material fee 173948774.18 112662406.81 Test fee 64510633.02 17479289.63 Others 72974183.02 96806255.02 Total 2964604104.48 1932294144.67 52. Financial income In RMB Yuan Item Amount for this period Amount for prior period Interest income 532594819.89 438428075.90 Less: Foreign exchange gain or loss 24815219.82 (40733323.13) Interest expense 36814471.44 17892411.14 Others 17697023.74 23270638.90 Total 453268104.89 437998348.99 112Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 53. Other income Government subsidies related to daily activities In RMB Yuan Item Amount for this period Amount for prior period Production and construction subsidies 657988649.18 186910289.65 54. Investment income In RMB Yuan Item Amount for this period Amount for prior period Long-term equity investment losses accounted for by the equity method (180436966.53) 78821605.75 Investment income from disposal of long-term equity investments 1.00 The investment income of financial asset held for trading during its holding period 1406842.07 2690400.00 Dividend income from remaining investments in other equity instruments 180656814.04 144222128.67 Gains from the remeasurement of the remaining equity at fair value after the loss of control 2128305938.85 Income generated from business combinations not under the same control 5021482128.74 Total 5023108819.32 2354040073.27 55. Fair value change In RMB Yuan Source of income from changes in fair value Amount for this period Amount for prior period Financial assets held for trading 14575284.30 26136888.77 Financial liabilities held for trading (37909945.45) Total (23334661.15) 26136888.77 56. Impairment loss of credit In RMB Yuan Item Amount for this period Amount for prior period Bad debt for account receivable 15463066.50 10913106.06 Bad debt for other receivables 50421.60 （138419.44） Total 15513488.10 10774686.62 57. Impairment loss on assets In RMB Yuan Item Amount for this period Amount for prior period Impairment of inventory 110345479.11 72131985.60 Impairment of fixed assets 184845379.29 165117956.10 113Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Impairment of intangible assets 41460645.81 2920133.24 Impairment of contract assets 60622656.78 1657510.52 Total 397274160.99 241827585.46 58. Gain on disposal of assets In RMB Yuan Item Amount for this period Amount for prior period Gain on disposal of fixed-assets 366667730.28 68244082.28 Total 366667730.28 68244082.28 59. Non-operating income In RMB Yuan Amount recognized in current Item Amount for this period Amount for prior period period as non-recurring profit and loss Fines penalties and others 93295575.81 54366637.51 93295575.81 Total 93295575.81 54366637.51 93295575.81 60. Non-operating expenses In RMB Yuan Amount recognized in current Item Amount for this period Amount for prior period period as non-recurring profit and loss Donation 10600000.00 10600000.00 Vehicle reward 841680.00 1711728.00 841680.00 Fines and penalties 52548.37 1327232.91 52548.37 Others 2004732.65 1831254.32 2004732.65 Total 13498961.02 4870215.23 13498961.02 61. Income tax expense (1) Table of income tax expense In RMB Yuan Item Amount for this period Amount for prior period Current income tax expense 429737792.88 48946847.14 Deferred income tax expense (253116967.69) (152226972.88) Total 176620825.19 (103280125.74) 114Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report (2) The relationship between profit before tax and income tax expense In RMB Yuan Item Amount for this period Total profit 7143633825.26 Tax at the applicable tax rate 1071545073.79 Impact of different tax rates of subsidiaries 24441849.80 Adjustments to current income tax of previous period 20812467.28 Non-taxable income (28463044.30) Usage previous deductible losses 164951569.37 Utilize previous deductible losses (16643751.06) Profit or loss attributable to joint ventures and associates (723007804.69) Additional deduction (337015535.00) Income tax expense 176620825.19 62. Other comprehensive income Please refer to notes VII 43. 63. Notes to cash flow statement (1) Items of cash received relating to other operating activities In RMB Yuan Item Amount for this period Amount for prior period Interest income 527001902.34 438428075.90 Government grants 863412085.63 401800087.37 Others 362804407.92 561189492.27 Total 1753218395.89 1401417655.54 (2) Items of cash paid relating to other operating activities In RMB Yuan Item Amount for this period Amount for prior period Selling expense 2429716985.74 1980235740.95 Administrative expense 617746243.11 569553555.35 Research and development expenses 1384809950.23 609764742.34 Others 926324359.78 379019456.72 Total 5358597538.86 3538573495.36 (3) Items of cash received relating to other investing activities In RMB Yuan Item Amount for this period Amount for prior period 115Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Net cash received from business merger 6216944276.29 Total 6216944276.29 (4) Items of cash paid relating to other investing activities In RMB Yuan Item Amount for this period Amount for prior period Cash transferred out from the loss of control of the subsidiary 815126333.76 Total 815126333.76 (5) Items of cash received relating to other financing activities In RMB Yuan Item Amount for this period Amount for prior period Withdraw for deposit of bill 362339945.61 715239432.26 Total 362339945.61 715239432.26 (6) Items of cash paid relating to other financing activities In RMB Yuan Item Amount for this period Amount for prior period Payment for deposit of bill 377810786.49 669560830.95 Repurchase of restricted stocks 1327927.25 Others 39385976.28 29669861.07 Total 418524690.02 699230692.02 64. Supplementary information of cash flow statement (1) Supplementary information of cash flow statement In RMB Yuan Supplementary information Amount for this period Amount for prior period 1. Cash flows from operating activities calculated by adjusting the net profit Net profit 6967013000.07 5839023367.10 Add: Impairment provision for assets 412787649.09 252602272.08 Depreciation of fixed assets 1492472007.62 1435681140.90 Right-of-use assets depreciation 32246838.71 16605322.98 Depreciation and amortization of investment real estate 113355.78 Amortization of intangible assets 638535490.78 528117679.23 Amortization of long-term deferred expense 1468484.08 1826783.84 Increase in deferred income 65085141.07 (139049041.50) Disposal income on fixed assets intangible assets and others (366667730.28) (68244082.28) 116Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Income of fair value movement 23334661.15 (26136888.77) Financial expense 36814471.44 17892411.14 Investment income (5023108819.32) (2354040073.27) Increase in deferred tax assets (182617869.82) (154489446.55) Decrease in deferred tax liabilities 1404707710.78 2262473.67 Decrease in inventory (4429633070.54) (244183357.63) Decrease in operating payables 1025339747.77 1273807337.63 Increase in operating payables 4665879442.66 (722465767.08) Share-based payments cost 187899000.00 192310900.00 Others 3787202.55 715388.71 Net cash flows from operating activities 6955456713.59 5852236420.20 2．Movement of cash and cash equivalents: Ending balance of cash 64153666049.54 51032267488.15 Less: beginning balance of cash 52491435047.74 49517916834.99 Increase in cash and cash equivalents 11662231001.80 1514350653.16 (2) Cash and cash equivalents In RMB Yuan Item Ending balance Beginning balance I. Cash Including: Cash 1886.16 32155.77 Bank deposits that can be readily used 64133735374.29 52455913791.28 Other monetary funds that can be used for payment at any time 19928789.09 35489100.69 II. Ending balance of cash and cash equivalents 64153666049.54 52491435047.74 65. The assets with ownership or right restricted In RMB Yuan Item Ending balance Explanation Cash and cash equivalents 1832280514.67 Acceptance bill deposit Note receivables 6379455146.47 Pledge for issuing bills payable Fixed assets 28900540.24 Processing release procedures Intangible assets 16614436.08 Processing release procedures Total 8257250637.46 66. Foreign Monetary Item In RMB Yuan Item Original Currency Exchange Rate Translated to RMB Cash Including: USD 29760695.54 7.2258 215044833.83 GBP 8367752.13 7.8771 65913620.30 117Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report EUR 3968271.98 9.1432 36282704.37 JPY 148663225.00 0.0501 7448027.57 RUB 7733842927.23 0.0834 645002500.13 Accounts receivable Including: USD 56418.30 7.2258 407667.35 EUR 3523830.00 7.8771 27757561.29 GBP 414688.44 9.1432 3791579.34 Other receivables Including: USD 1318.04 7.2258 9523.89 EUR 2723874.52 7.8771 21456231.98 GBP 49632.42 9.1432 453799.14 JPY 100000.00 0.0501 5010.00 Accounts Payable Including: USD 6995.00 7.2258 50544.47 EUR 199529.46 9.1432 1824337.76 GBP 29760695.54 7.2258 215044833.83 Other Payables 8367752.13 7.8771 65913620.30 Including: USD 3968271.98 9.1432 36282704.37 GBP 148663225.00 0.0501 7448027.57 67. Government grants The government grants accounted by the Group with the net method offset the book value of relevant assets and related costs as follows: In RMB Yuan Amount for this period Amount for prior period Government grants related to assets 62110742.27 132421192.00 Write down: Fixed assets 61413808.31 132421192.00 Intangible assets 696933.96 Government grants related to income 50967519.78 177846131.22 Write down: Operating cost 23614843.48 73489574.95 Operating expenses 6763467.92 964950.11 General and administrative expenses 8254895.38 10761122.82 Research and development expenses 12334313.00 92433583.34 Financial income 196900.00 For other government grants refer to notes V 38 and 53.VIII. The change of consolidation scope 1. Business combination not under the Same Control （1） Business combinations not under common control that occurred in the current period The Company originally held 40.66% equity in Deepal Automobile Technology Co. Ltd. (referred as “Deepal Auto”) which can have a significant impact on it and is accounted for using the equity method. The Company has signed an Equity Transfer Agreement with Chongqing Changxin Equity Investment Fund Partnership (Limited Partnership) (referred as “Changxin Fund”) and Chongqing Liangjiang New Area Chengwei Equity Investment Fund Partnership (Limited Partnership) (referred as “Chengwei Fund”) shareholders of Deep Blue Automobile to acquire 10.34% of the equity of Deepal Auto for cash of RMB 1331.6214 million The 118Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report transaction completed equity delivery procedures on February 1 2023. After the completion of the acquisition the company held a total of 51.00% equity in Deepal Auto. On the acquisition date the company recognized a profit of RMB 5021482128.74 from the merger of enterprises not under the same control.From the date of purchase to the end of the current period the operating income of Deepal Auto was RMB 8828401817.81 and the net loss was RMB 1058521570.86. (2) Merger costs and goodwill In RMB Yuan Consolidation costs Deepal Auto -- Cash 1331621441.70 -- Fair value of non cash assets —— --Fair value of debt issued or assumed —— -- Fair value of equity securities issued —— -- Fair value of contingent consideration —— --Fair value of equity held before the purchase date at the 5248006233.55 purchase date --Other —— Total consolidated costs 6579627675.25 Minus: Fair value share of identifiable net assets obtained 4780094150.38 The amount of goodwill/merger cost less than the fair value 1799533524.87 share of identifiable net assets obtained Method for determining the fair value of merger costs: income method (3) The identifiable assets and liabilities of the purchased party on the purchase date In RMB Yuan Deepal Auto Fair value on purchase date Book value on purchase date Assets: inventory 2750696247.99 2668394136.79 fixed assets 446508547.00 434621131.80 intangible assets 10744244703.94 1028260675.89 Total other current assets 14258866595.00 14258866595.00 Total other non current assets 1604398095.47 1605804945.65 Total Assets 29804714189.40 19995947485.13 Liabilities: Total Current Liabilities 18184591739.10 18184591739.10 Total Non-current Liabilities 816971121.83 821924907.70 Total liabilities 19001562860.93 19006516646.80 Shareholders' (or owners') equity 10803151328.47 989430838.33 Method for determining the fair value of identifiable assets and liabilities: asset based method (4) Gains or losses arising from remeasuring equity held before the purchase date at fair value Is there any transaction that achieves business merger through multiple transactions and obtains control during the reporting period □ Yes √ No 119Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 2. Combination under the same control □ Applicable √ Not Applicable 3. Counter purchase □ Applicable √ Not Applicable 4. Disposing subsidiary Whether there is a single disposal of the subsidiary company investment that is the loss of control of the situation □ Applicable √ Not Applicable 5. Change of consolidation scope due to other reasons □ Applicable √ Not Applicable IX. Stake in other entities 1. Rights in subsidiaries The subsidiaries of the Company are as follows： Registered Total proportion of Company name Main operating Registered place Nature of business capital (ten shareholders (%) place thousand) Direct Indirect I. The subsidiary formed by establishment or investment Chongqing Changan International Automobile Sales Co. Ltd. Chongqing Chongqing Sales 20375.64 100.00 - Chongqing Changan Vehicle Networking Technology Co. Chongqing Chongqing Lease 8850.00 100.00 - Ltd.Chongqing Changan Special Automobile Sales Co. Ltd Chongqing Chongqing Sales 2000.00 50.00 - (Note 1) Chongqing Changan Automobile Supporting Service Co. 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 Design Center Co. Ltd. Turin Italy Turin Italy R&D EUR 1738 100.00 - Changan United Kingdom R&D Nottingham United Nottingham United Center Co. Ltd. Kingdom Kingdom R&D GBP 2639 100.00 - Beijing Changan R&D Center Co. Ltd. Beijing Beijing R&D 100.00 100.00 - Changan Japan Designing Center Co.Ltd Habin Habin R&D JYP1000 100.00 - Changan United States R&D Center Co. Ltd. Troy United states Troy United states R&D USD154 100.00 - Changan Automobile Russia Co.Ltd. Moscow Russia Moscow Russia Sales RUB 220382100.00- Changan Automobile Changan Automobile Changan Automobile Changan Automobile Investment Investment Investment Investment (Shenzhen) Co. Ltd. (Shenzhen) Co. (Shenzhen) Co. (Shenzhen) Co. 23789.00 100.00 Ltd. Ltd. Ltd.Nanjing Changan New Energy Automobile Sales & Service Nanjing Nanjing Sales 5000.00 100.00 - Co. Ltd.Chongqing Anyi Automotive Chongqing Chongqing Sales 200.00 100.00 - 120Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Technology Service Co. Ltd.Xiamen Changan New Energy Automobile Sales & Service Xiamen Xiamen Sales 200.00 100.00 - Co. Ltd.Guangzhou Changan New Energy Automobile Sales & Service Guangzhou Guangzhou Sales 400.00 100.00 - Co. Ltd.Chongqing Chehemei Technology Co. Ltd. Chongqing Chongqing Sales 1000.00 100.00 Chongqing Changan Kaicheng Automobile Technology Co. Chongqing Chongqing Sales 100000.00 83.64 Ltd.Chongqing Changan Automobile Software Technology Co. Ltd. Chongqing Chongqing R&D 9900.00 100.00 Chongqing Chehemei Technology Co. Ltd. Chongqing Chongqing Sales 4900.00 100.00 Chongqing Changan Technology Co. Ltd Chongqing Chongqing R&D 9000.00 100.00 II. The subsidiary formed by business combination not under common control Nanjing Changan Automobile Co. Ltd.(Note 2) Nanjing Nanjing Manufacturing 60181.00 84.73 - Chongqing Lingyao Automobile Co. Ltd. Chongqing Chongqing Manufacturing 133764.00 100.00 - Deepal Automobile Technology Co. Ltd Chongqing Chongqing Manufacturing 32810.83 51.00 III. The subsidiary formed by business combination under common control Hefei Changan Automobile Co.Ltd. Hefei Hefei Manufacturing 227500.00 100.00 - Note 1: The remaining shareholders of Chongqing Changan Special Automobile Co. Ltd. made an agreement with the Company that the remaining shareholders are to vote in accordance with the Company. The main financial and operating policies have been controlled by the Company so it is included in the scope of consolidated financial statements.Note 2: The Company owns 91.53% of voting shares of Nanjing Changan Automobile Co. Ltd. the difference between proportion of voting shares and proportion of shares held is due to the voting right consigned from minority shareholders.As at June 30 2023 the Group has no subsidiaries with important minority interests. 2. Transactions result in change of holding share proportion but no effect in control of subsidiaries □ Applicable √ Not applicable 3. Stakes in joint ventures and associates (1) Significant joint ventures or associates Main Total proportion of Company name operating Registered Registered place Nature of business capital (ten shareholders (%) Accounting place thousand) treatment Direct Indirect I. Joint ventures Changan Ford Automobile Co. Ltd. Chongqing Chongqing Manufacture and sale of automobiles and components USD24100 50.00 - Equity Changan Mazda Automobile Co. Ltd. Nanjing Nanjing Manufacture and sale of automobiles and components USD11681 47.50 - Equity Changan Mazda Engine Co. Ltd. Nanjing Nanjing Manufacture and sale of (Note 1) automobiles and components USD20996 50.00 - Equity 121Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Jiangling Investment Nanchang Nanchang Investment Management Industrial Co. Ltd. Investment and Asset Management 100000.00 50.00 - Equity II. Associates Chongqing Changan Develop product and sale of Kuayue Automobile Chongqing Chongqing automobile and components; import 6533.00 34.30 - Equity Co. Ltd. and export goods.Chongqing Changan Sale of Changan Kuayue’ s Kuayue Automobile Chongqing Chongqing automobile and agricultural cars and Sales Co. Ltd. components. Technical advisory 300.00 34.30 - Equity services for automobile Beijing Fang’an Taxi Co. Ltd. Beijing Beijing For the car loan business 2697.96 22.24 - Equity Provide car loan; provide vehicle loans and operating equipment loans Chongqing Auto Chongqing Chongqing to car dealers including the Finance Co. ltd. construction loans of exhibition 476843.10 28.66 - Equity hallspare parts loans and maintenance equipment loans etc.Nanjing Chelai Travel Car sales leasing software Technology Co. Ltd. Nanjing Nanjing technology development technical 10000.00 10.00 - Equity services Hunan Guoxin Technology development Semiconductor Zhuzhou Zhuzhou consulting technical services Technology Co. Ltd. technology transfer in the field of 50000.00 25.00 - Equity power semiconductors Beijing Wutong Technology development technical Chelian Technology Beijing Beijing consulting technical services 56055.88 - 41.30 Equity Co. Ltd. technology transfer Anhe (Chongqing) Equity Investment Fund Management Chongqing Chongqing Equity investment management 1260.00 - 44.44 Equity Co. Ltd.Hangzhou Chelizi Intelligent Hangzhou Hangzhou Car travel service 630.00 - 20.00 Equity Technology Co. Ltd.Pakistan Master Lahore Lahore Manufacture and sale of Motors Co. Ltd. Pakistan Pakistan automobiles and components PKR75000 30.00 Equity Jiangling Holding Nanchang Nanchang Manufacture and sale of Co. Ltd. automobiles and components 200000.00 25.00 - Equity Nanjing Leading Equity Investment Nanjing Nanjing Equity investment and related services 976000.00 16.39 - Equity Partnership Nanjing Leading Equity Investment Nanjing Nanjing Private equity investment fund Management Co. management and related services 1000.00 15.00 - Equity Ltd.Zhongqi Chuangzhi Nanjing Nanjing R&D 1600000.0Technology Co. Ltd. 3.125 - Equity 0 Chongqing Changxin Zhiqi Private Equity Investment Fund Chongqing Chongqing Equity Investment 50200.00 49.80 - Equity Partnership (Limited Partnership) AVATR. Co. Ltd Nanjing Nanjing R&D 164466.00 40.9939 Equity Chongqing Changan Innovation Private Equity Investment Fund Partnership Chongqing Chongqing Private equity investment funds 65100.00 46.08 Equity Enterprise (Limited Partnership) Development production sales and provision of related after-sales and Time FAW Power technical consulting services for Battery Co. Ltd Ningde Ningde lithium-ion batteries power 200000.00 - 10.00 Equity batteries ultra large capacity energy storage batteries and battery systems Western Car Network Chongqing Chongqing Internet information services; 10000.00 - 5.00 Equity 122Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report (Chongqing) Co. Ltd Inspection and testing services Anhe Chongqing Dingfeng Automobile Contract Private Chongqing Chongqing Private equity investment funds 15436.00 40.00 - Equity Equity Investment Fund Chongqing Changxian Intelligent Chongqing Chongqing Software development and sales 25500.00 45.00 - Equity Technology Co. Ltd (2) Key financial information of significant joint ventures Changan Ford Automobile Co. Ltd. is the important joint venture to the Group and makes great influence in the share of profit and loss in joint venture and associates the Group adopts equity method to deal with the investment to it.The table below shows the financial status of Changan Ford Automobile Co. Ltd. and all the information has been adjusted to eliminate the difference of the accounting policies.In RMB Yuan Ending balance/Amount for this period Beginning balance/Amount for prior period Current assets 11465596213.84 15159099717.00 Including: cash and cash 4625531681.386818327323.00 equivalent Non-current assets 20108880589.29 20859166829.00 31574476803.1336018266546.00 Total assets 19534096219.77 26771621602.00 Non-current liabilities 9705223801.71 7716321374.00 Total liabilities 29239320021.48 34487942976.00 Minority interests Equity attributable to owners 2335156781.65 1530323570.00 Net asset owned according to share proportion 1167578390.83 765161785.00 Adjustment （55499140.48） （52702433.15） Book value of investment 1112079250.35 712459351.85 Operating income 21760633483.51 23377802470.94 Financial expenses 131187660.08 228432281.92 Income tax expense 592223920.46 158336533.41 Net profit 799233915.94 1045203295.40 (3) The financial status of the less important joint ventures and associates In RMB Yuan Ending balance Beginning balance Joint venture: Total book value of the investment 4118225763.64 4067976150.23 Total amount calculated by shareholding proportion --Net profit 50249613.41 340098900.17 --Other comprehensive income --Total comprehensive income 50249613.41 340098900.17 123Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Associates: Total book value of the investment 8558605302.28 9626226954.20 Total amount calculated by shareholding proportion --Net profit (630303537.91) (784138202.60) --Other comprehensive income 146228.18 --Total comprehensive income (630303537.91) (783991974.42) (4) Excessive losses incurred by joint ventures or associates As at 30 June 2023 since the Group has no obligation to undertake the extra loss of Chongqing Changan Kuayue Automobile Sales Co. Ltd Jiangling Holdings Co. Ltd. When extra loss occurs the Group writes down the long-term investment to zero without recognizing the extra loss.X. Risks associated with financial instruments 1. Classification of financial instruments As at balance sheet day the book values of financial instruments are as follows: Financial assets In RMB Yuan Financial assets Financial assets measured at fair value Financial assets measured at fair value 2023.6.30 and whose changes measured at amortized and whose changes are are recorded in the recorded in Other Total current profit and loss cost comprehensive income (standard required) (specified) Cash 65985946564.21 65985946564.21 Financial assets for trading 262239446.37 262239446.37 Notes receivable 33963917823.31 33963917823.31 Accounts receivable 2477017799.35 2477017799.35 Other receivables 924635940.20 924635940.20 Other current assets 14765170.48 14765170.48 Investment in other 489950000.00489950000.00 equity instrument Total 262239446.37 103366283297.55 489950000.00 104118472743.92 In RMB Yuan Financial assets measured at fair value Financial assets measured and whose changes are Financial assets at fair value and whose 2022.12.31 recorded in the current measured at amortized changes are recorded in Total profit and loss cost Other comprehensive (standard required) income (specified) Cash 53530183827.34 53530183827.34 Financial assets for trading 280315571.09 280315571.09 Notes receivable 35849660652.96 35849660652.96 Accounts receivable 3068414415.29 3068414415.29 124Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Other receivables 861671518.62 861671518.62 Other current assets 745970.48 745970.48 Investment in other 489950000.00489950000.00 equity instrument Total 280315571.09 93310676384.69 489950000.00 94080941955.78 Financial liabilities In RMB Yuan 2023.6.302022.12.31 Short-term loans 50000000.00 29000000.00 Trading financial liabilities 37813520.40 - Notes payable 33712072409.02 22072793864.83 Accounts payable 30465634254.25 29449664138.75 Other payables 8286560402.79 4749541830.49 Non-current liabilities due within 1 year 69596855.90 885723901.34 Long-term loan 76000000.00 36000000.00 Lease liabilities 120870028.21 60205397.98 Long-term payables 408939511.34 Bonds payable 999558490.56 999528301.88 Total 73818105961.13 58691396946.61 2. Transfer of financial assets The transferred financial assets that entirely derecognized but continuing involved As at June 30 2023 the book value of the bank acceptance bill that the Group has endorsed to the supplier to settle accounts payable is RMB 5501662863.68 (December 31 2022: RMB 5294424281.62). On June 30 2023 its maturity date is 1 to 6 months.According to the relevant provisions of the "Negotiable Instruments Law" if the accepting bank refuses to pay its holder has the right to recourse against the Group ("continued involvement "). The Group believes that the Group has transferred almost all of its risks and rewards and therefore terminates the confirmation of the book value of the settlement accounts payable and the related accounts payable. The maximum loss and undiscounted cash flow of continuing involvement and repurchase are equal to its book value. The Group believes that continued involvement in fair value is not significant.In the first half of 2023 the Group did not recognize gains or losses on its transfer date. The Group shall continue to be involved in the proceeds or expenses of the year in which the recognition of financial assets has been terminated and the cumulative recognition thereof.Endorsements occur roughly and evenly during the year. 3. Risks of financial instruments The Group faces risks of various financial instruments in its daily activities mainly including credit risk liquidity risk and market risk (including exchange rate risk interest rate risk and price risk). The main financial instruments of the Group include monetary funds equity investments loans bills receivable accounts receivable bills payable accounts payable lease liabilities bonds payable etc.The risks associated with these financial instruments and the risk management strategies adopted by the Group to reduce these risks are described below.The Group has formulated risk management policies to identify and analyze the risks faced by the Group set appropriate risk acceptance levels and design corresponding internal control procedures to monitor the Group's risk levels. The Group will periodically re-examine these risk management policies and related internal control systems to adapt to changes in market conditions or the Group ’s operating activities. The internal audit department also regularly and irregularly checks whether the implementation of the internal control system complies with the risk management policy. 125Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Credit risk The Group only deals with recognized and reputable customers. In accordance with the Group's policy a credit review is required for all customers who require credit transactions. In addition the Group continuously monitors the balance of accounts receivable to ensure that the Group does not face significant bad debt risk. For transactions that are not settled with the relevant business unit's bookkeeping standard currency the Group does not provide credit transaction conditions unless specifically approved by the Group's credit control department.Since the counterparties of monetary funds and bank acceptance receivables are reputable banks with higher credit ratings these financial instruments have lower credit risk.Other financial assets of the Group include commercial acceptance bills receivable accounts receivable other receivables etc. The credit risk of these financial assets and contract assets comes from counterparty default and the maximum risk exposure is equal to the carrying amount of these instruments. In 2022 there was no credit risk arising from financial guarantee.Since the Group only trades with approved and reputable customers there is no need for collateral. Credit risk is centralized and managed according to customers. As at the balance sheet date the Group has a specific concentration of credit risks. 33.67% of the Group's accounts receivable (December 31 2022: 56.83%) originated from the top five customers with the balance of accounts receivable. The Group does not hold any collateral or other credit enhancements for the balance of accounts receivable.Judgment criteria for significant increase in credit risk The Group evaluates on each balance sheet date whether the credit risk of the relevant financial instruments has increased significantly since the initial recognition. In determining whether credit risk has increased significantly since the initial recognition the Group considers that reasonable and evidence-based information can be obtained without unnecessary additional cost or effort including qualitative and quantitative analysis based on the Group's historical data external credit risk ratings and forward-looking information.Based on a single financial instrument or a portfolio of financial instruments with similar credit risk characteristics the Group compares the default risk of financial instruments on the balance sheet date with the default risk on the initial confirmation date to determine the change of default risk of financial instruments during their expected duration.When one or more of the following quantitative or qualitative criteria are triggered the Group believes that the credit risk of financial instruments has significantly increased: * the quantitative criterion is that the default probability of the remaining duration on the report date increases by more than a certain percentage compared with the initial confirmation; * qualitative criteria mainly include material adverse changes in the operating or financial situation of the debtor early warning customer list etc.; Definition of assets that have incurred credit impairment In order to determine whether credit impairment occurs the Group adopts a definition standard consistent with the internal credit risk management objectives for relevant financial instruments and considers both quantitative and qualitative indicators. The Group mainly takes the following factors into consideration when evaluating whether the debtor has credit impairment: * significant financial difficulties of the issuer or debtor; * debtor breaches the contract such as default or overdue payment of interest or principal; * the creditor gives the debtor concessions that the debtor would not have made under any other circumstances for economic or contractual reasons related to the debtor's financial difficulties; * the debtor is likely to go bankrupt or undergo other financial restructuring; * the financial difficulties of the issuer or debtor result in the disappearance of an active market for the financial asset; * purchase or source a financial asset at a substantial discount that reflects the fact that a credit loss has occurred.The credit impairment of financial assets may be caused by the joint action of multiple events but not by events that can be identified separately.A parameter for measuring expected credit losses According to whether the credit risk has significantly increased and whether the credit impairment has occurred the Group measures the impairment provision for different assets with the expected credit loss of 12 months or the whole duration respectively. The key parameters of expected credit loss measurement include default probability default loss rate and default risk exposure. The Group takes into account the quantitative analysis and forward-looking information of historical statistical data (such as counterparty rating 126Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report guarantee method and types of collateral repayment method etc.) to establish default probability default loss rate and default risk exposure models.The relevant definition is as follows: * probability of default is the probability that the debtor will not be able to meet its repayment obligations in the next 12 months or throughout the remaining period. The default probability of the Group is adjusted based on the results of the historical credit loss model and forward-looking information is added to reflect the default probability of the debtor in the current macroeconomic environment.* the default loss rate refers to the Group's expectation of the extent of losses from default risk exposure. Default loss rates also vary depending on the type of counterparty the type and priority of recourse and the collateral. The default loss rate is the percentage of the risk exposure loss at the time of default calculated on the basis of the next 12 months or the whole duration; * default exposure is the amount that should be paid to the Group at the time of default over the next 12 months or throughout the remaining duration.The assessment of a significant increase in credit risk and the calculation of expected credit losses involve forward-looking information.Through the analysis of historical data the Group identifies the key economic indicators that affect the credit risks and expected credit losses of each business type.Liquidity risk The Group adopts cycle liquidity planning instrument to manage capital shortage risks. The instrument takes into consideration the maturity date of financial instruments plus estimated cash flow from the Group’s operations.The Group’s objective is to maintain a balance between continuity of funding and flexibility and sufficient cash to support operating capital through financing functions by the use of bank loans debentures etc.Market risk Interest rate risk The Group’s revenue and operating cash flows are seldomly influenced by the interest fluctuation. As at 30 June 2023 the Group’s loans and bonds are bearing fixed interest rate and the Group is not hedging the risk currently.Foreign currency risk The Group’s exposures to fluctuation in foreign currency exchange rate mainly arise from operating activities where transactions are settled in currencies other than the units' functional currency and net investment to offshore subsidiary.In 30 June 2022 the Group only has limited transactional currency exposures of its total revenue that is valued in currencies other than the units' functional currency. The estimated influence of fluctuation of foreign currency is insignificant; therefore the Group hasn’t carried out large amount of hedging to reduce the risk.Equity instruments investment price risk The price risk of equity instrument investment refers to the risk that the fair value of equity securities is reduced due to changes in the level of stock indexes and changes in the value of individual securities. On June 30 2023 the Group's listed equity instrument investment (Note VII 2) was listed on the Shanghai Stock Exchange and measured on the basis of market quotes on the balance sheet date. The following table illustrates the sensitivity of the Group’s net profit and loss to every 5% change in the fair value of equity instrument investments (based on the book value at the balance sheet date) under the assumption that all other variables remain constant.In RMB Yuan Carrying amount of equity Change in fair Increase/(decrea investments value se) in equity 2023.6.30 Shanghai- Equity investment included in financial assets at 98889450.00 5% 4202801.63 fair value through profit or loss Shanghai- Equity investment included in financial assets at 98889450.00 (5%) (4202801.63) 127Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report fair value through profit or loss Shenzhen- Equity investment included in financial assets at 163349996.37 5% 6942374.85 fair value through profit or loss Shenzhen- Equity investment included in financial assets at 163349996.37 (5%) (6942374.85) fair value through profit or loss 2022.12.31 Shanghai- Equity investment included in financial assets at 126112500.00 5% 5359781.25 fair value through profit or loss Shanghai- Equity investment included in financial assets at 126112500.00 (5%) (5359781.25) fair value through profit or loss Shenzhen- Equity investment included in financial assets at 125052628.80 5% 5314736.72 fair value through profit or loss Shenzhen- Equity investment included in financial assets at 125052628.80 (5%) (5314736.72) fair value through profit or loss 4. Capital management The main goal of the Group’s capital management is to ensure that the ability of continuous operation and maintain healthy capital ratios in order to support business development and to maximize shareholder value.The Group manages the capital structure and adjusts it with the change of economy trend and the risk feature of the assets. To maintain or adjust the capital structure the Group can rectify dividend distribution return capital to shareholders or issue new shares. The Group is not subject to external mandatory capital requirements constraints. The goal principle and procedure of capital management stay the same in 2022 and 30 June 2023.The Group’s leverage ratio on the balance sheet date is as follows: June 30 2023 December 31 2022 Leverage ratio 58.90% 56.90% XI. Disclosure of fair value 1. Assets and liabilities measured at fair value June 30 2023 In RMB Yuan Input measured at fair value Quoted price in Important and Important but active market observable input unobservable input Total (The first level) (The second level) (The third level) Trading financial assets 262239446.37 262239446.37 Equity instrument investment 262239446.37 262239446.37 Other equity instrument investments 489950000.00 489950000.00 Trading financial liabilities 37813520.40 37813520.40 Total 262239446.37 37813520.40 489950000.00 790002966.77 128Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report December 31 2022 In RMB Yuan Input measured at fair value Quoted price in Important and Important but active market observable input unobservable input Total (The first level) (The second level) (The third level) Trading financial assets 126112500.00 154203071.09 280315571.09 Equity instrument investment 126112500.00 125052628.80 251165128.80 Derivative financial assets 29150442.29 29150442.29 Other equity instruments 489950000.00 489950000.00 Total 126112500.00 154203071.09 489950000.00 770265571.09 2. Fair value estimation Management has assessed and concluded accounts including cash notes receivable accounts receivable other receivables other payables notes payable and accounts payable and so on whose fair value equals to book value because of its short term to overdue.Financial assets and financial liabilities are measured at the amount that an asset could be exchanged for or by which a liability could be incurred or settled by knowledge willing parties in a current arm’s-length transaction other than liquidation or unwilling sales.Methods and hypothesis followed are used for determining fair value.Long-term loans and long-term payables use discounted cash flow method to determine its fair value with discount rate in accordance with market return of other financial instruments based on similar terms credit risks and remaining terms. As at 30 June 2023 the default risk of long-term loans and short-term loans were considered immaterial.The equity instruments listed by the Group are ordinary shares with unrestricted sale conditions and their fair value is determined at the quoted market price. The Group's unlisted equity instrument investments are estimated at fair value using the market method based on unobservable market prices or interest rate assumptions. The Group mainly refers to the evaluation reports of independent qualified professional appraisers. The Group believes that the fair value and its changes estimated by valuation techniques are reasonable and are also the most appropriate value on the balance sheet date.The Group entered into a derivative financial instrument contract with the bank. The Group's derivative financial instruments are foreign exchange forward contracts which are measured using valuation techniques similar to the present value method. The observable input value of the market covered by the model is the forward exchange rate. The book value of a foreign exchange forward contract is the same as the fair value. 3. Unobservable input The following is an overview of the important unobservable input value of the third level fair value measurement: Fair value Valuation techniques Non-observable input value Investment in other equity instrument 2023.6.30 489950000.00 Market approach Comparable transaction value multiplier 2022.12.31 489950000.00 Market approach Comparable transaction value multiplier XII. Related party relationships and transactions 1. Parent company of the Company 129Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Parent company Place of Proportion of Proportion of registration Nature of the business Registered capital shares in the voting rights in the Company (%) company (%) China Changan Manufacture and sale of Automobile Group Beijing automobiles engine and 6092273400.00 20.80% 20.80% Co Ltd. components The Final controlling party is China South Industries Group corporation 2. Subsidiaries See subsidiaries in IX（1）. Stake in other entities. 3. Joint ventures and associates See Joint ventures and associates in IX（3） Stake in other entities. 4. Other related parties Related parties Relationship Chongqing Changan Intelligent Industrial Technology Service Co. Ltd. Controlled by the same ultimate holding company Chongqing Changan Construction Co. Ltd. Controlled by the same ultimate holding company Chongqing Changan industry (Group) Co. Ltd Controlled by the same ultimate holding company Chongqing Changan Real Estate Development Co. Ltd Controlled by the same ultimate holding company Chongqing Yihong Engineering Plastic Products Co. Ltd. Controlled by the same ultimate holding company Chongqing Xiyi Automobile Connecting Rod Co. Ltd. Controlled by the same ultimate holding company Chongqing Wanyou Zunda Automobile Sales & Service Co. Ltd. Controlled by the same ultimate holding company Chongqing Wanyou Economic Development Co. Ltd. Controlled by the same ultimate holding company Chongqing Wanyou Xingjian Auto Sales & Service Co. Ltd. Controlled by the same ultimate holding company Chongqing Wanyou Ducheng Auto Sales Service Co. Ltd. Controlled by the same ultimate holding company Chongqing Changan Property Management Co. Ltd. Controlled by the same ultimate holding company Chongqing Qingshan Transmission Sales Co. Ltd. Controlled by the same ultimate holding company Chongqing Shangfang Automobile Fittings Co. Ltd. Controlled by the same ultimate holding company Chongqing Qingshan Industrial Co. Ltd Controlled by the same ultimate holding company Chongqing Construction Tongda Industrial Co. Ltd. Controlled by the same ultimate holding company Chongqing Jianshe Mechanical & Electrical Equipment Co. Ltd. Controlled by the same ultimate holding company Chongqing Changrong Machinery Co. Ltd. Controlled by the same ultimate holding company Chongqing Jianshe Automobile Air-conditioner Co. Ltd. Controlled by the same ultimate holding company Chongqing Jialing Yimin Special Equipment Co. Ltd. Controlled by the same ultimate holding company Chongqing Fuji Supply Chain Management Co. Ltd Controlled by the same ultimate holding company Chongqing Dajiang Jiexin Forging Co. Ltd. Controlled by the same ultimate holding company Chongqing Anfu Automobile Co. Ltd. Controlled by the same ultimate holding company China Changan Automobile Group Tianjin Sales Co. Ltd Controlled by the same ultimate holding company China Changan Automobile Group Hefei Investment Co. Ltd Controlled by the same ultimate holding company China South Industries Group Commercial Factoring Co. Ltd. Controlled by the same ultimate holding company China Ordnance Equipment Group Finance Leasing Co. Ltd Controlled by the same ultimate holding company Yunnan Xiyi Industries Co. Ltd. Controlled by the same ultimate holding company Yunnan Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company Yaan Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company 130Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Related parties Relationship 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 Shanchuan Machinery Co. Ltd Controlled by the same ultimate holding company Sichuan Jianan Industrial Co. Ltd Controlled by the same ultimate holding company Panzhihua Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company Luzhou Wanyou Automobile Service Co. Ltd Controlled by the same ultimate holding company Longchang Shanchuan Precision Welded Tube Co. Ltd. Controlled by the same ultimate holding company Jiangsu Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company Hubei Xiaogan Huazhong Car Lamp Co. Ltd Controlled by the same ultimate holding company Hubei Huazhong Marelli Automotive Lighting Co. Ltd Controlled by the same ultimate holding company Harbin Dongan Automotive Engine Manufacturing Co. Ltd Controlled by the same ultimate holding company Harbin Dongan Automotive Power Co. Ltd Controlled by the same ultimate holding company Guizhou Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company Dali Wanfu Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company Chengdu Wanyou Xiangyu Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company Chengdu Wanyou Automobile Trading Service Co. Ltd Controlled by the same ultimate holding company Chengdu Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company Chengdu Wanyou Trading Co. Ltd Controlled by the same ultimate holding company Chengdu Wanyou Filter Co. Ltd Controlled by the same ultimate holding company Chengdu Lingchuan Automotive Fuel Tank Co. Ltd Controlled by the same ultimate holding company Chengdu Jialing Huaxi Optical Precision Machinery Co. Ltd Controlled by the same ultimate holding company Chengdu Huachuan Electric Equipment Co. Ltd Controlled by the same ultimate holding company Ordnance Equipment Group Finance Co. Ltd Controlled by the same ultimate holding company Beijing Beiji Electromechanical Industry Co. Ltd Controlled by the same ultimate holding company Bazhong Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company Anhui Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company Chongqing Changan Minsheng Logistics Co. Ltd. Participated by the Ultimate holding company Chongqing Nexteer Steering System Co.Ltd. Participated by the Ultimate holding company Chongqing Lingchuan Auto Parts Manufacturing Technology Co. Ltd. Participated by the Ultimate holding company Chongqing Hanon Jianshe Automotive Thermal Systems Co. Ltd. Participated by the Ultimate holding company Chongqing Dajiang Yuqiang Plastic Co. Ltd. Participated by the Ultimate holding company Dajiang Yapp Automotive Systems Co. Ltd. Participated by the Ultimate holding company Chongqing Dajiang Guoli Precision Machinery Manufacturing Co. Ltd. Participated by the Ultimate holding company Chongqing Dajiang Tongyang Plastics Co. Ltd. Participated by the Ultimate holding company China Ordnance Equipment Group Human Resources Development Center Participated by the Ultimate holding company China Ordnance News Participated by the Ultimate holding company Changan Laisi (Chongqing) robot intelligent equipment Co. Ltd Participated by the Ultimate holding company Tiannak Lingchuan (Chongqing) exhaust system Co. Ltd Participated by the Ultimate holding company South Inter Air-conditioner Co.Ltd. Participated by the Ultimate holding company South Tianhe Chassis System Co. Ltd. Participated by the Ultimate holding company CSM Faurecia Automotive Parts Co. Ltd. Participated by the Ultimate holding company GKN HUAYU Driveline Systems (Chongqing) Co. Ltd Participated by the Ultimate holding company United Automotive Electronics (Chongqing) Co. Ltd Participated by the Ultimate holding company Lear Changan (Chongqing) Automotive System Co. Ltd Participated by the Ultimate holding company 131Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Related parties Relationship Hunan Tianyan Machinery Co. Ltd Participated by the Ultimate holding company Hafei Automobile Co. Ltd Participated by the Ultimate holding company Chengdu Zhongzi Guangming Catalytic Technology Co. Ltd Participated by the Ultimate holding company Chengdu Ningjiang Zhaohe Automotive Parts Co. Ltd Participated by the Ultimate holding company Beijing Zhongbing Insurance Brokerage Co. Ltd. Participated by the Ultimate holding company Ald Fortune Auto Leasing & Renting (Shanghai) Co. Ltd. Companies in which the company participates Nanjing LingHang Technology Co. Ltd. Companies in which the company participates Nanjing Chelai Travel Technology Co. Ltd Companies in which the company participates Jiangling Automobile Co. Ltd Companies in which the company participates Beijing Wutong Chelian Technology Co. Ltd. Companies in which the company participates 5. Related-party transaction (1) Transactions of goods and services Goods purchased and services received In RMB Yuan Related parties Nature of Current amount Approved Whether it Prior-period the transaction exceeds the amount transaction amount transaction amount Changan Mazda Automobile Co. Accept Ltd labor 1270637.36 - Yes - Jiangling Holdings Co. Ltd. Procurement of parts 514070488.27 8778224627.96 No 585345.00 Nanjing Chelai Travel Technology Accept Co. Ltd labor 15222.66 114017.07 No - Purchasing Deepal Automobile Technology parts and Co. Ltd accepting 666172597.14 1510689568.63 No 716672719.94 labor services Purchasing Beijing Wutong Chelian parts and Technology Co. Ltd. accepting 32740169.65 194226725.34 No 67885814.09 labor services Anhui Wanyou Automobile Sales Accept Service Co. Ltd. labor 2622805.44 2514824.71 Yes 2284126.26 Chengdu Huachuan Electric Procurement Equipment Co. Ltd. of parts 265398399.77 832589256.66 No 201518601.15 Chengdu Ningjiang Zhaohe Automobile Components Co. Procurement of parts 303637.08 9343729.88 No 7248464.81 Ltd.Chengdu Wanyou Trading Co. Accept Ltd labor 44034.79 85826.66 No 22527.44 Chengdu Wanyou Automobile Accept Sales and Service Co. Ltd labor 826173.26 119774.35 Yes 368483.54 132Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Related parties Nature of Current amount Approved Whether it Prior-period the transaction exceeds the amount transaction amount transaction amount Chengdu Wanyou Auto Trade Accept Service Co. Ltd. labor 3136714.77 7373745.99 No 5421148.49 Chengdu Wanyou Xiangyu Auto Accept Sales and Service Co. Ltd. labor 8781051.72 3797209.13 Yes 6376107.26 Guizhou Wanyou Auto Sales and Accept Service Co. Ltd. labor 6496124.73 7491378.51 No 6881968.71 Purchasing Harbin Dongan Auto Engine Co. parts and Ltd. accepting 201477650.66 600127415.35 No 263267944.07 labor services Harbin Dongan Automotive Procurement Engine Manufacturing Co. Ltd. of parts 286555317.12 697042854.91 No 653853009.25 Hunan Tianyan Machinery Co. Procurement Ltd of parts 59035655.33 8302082.10 Yes 2617013.13 Jiangsu Wanyou Automobile Accept Sales Service Co. Ltd. labor 3530670.99 4080339.68 No 2015418.16 Luzhou Wanyou Automobile Accept Service Co. Ltd. labor 208109.30 569722.83 No 307508.81 CSM Faurecia Automotive Parts Procurement Co. Ltd. of parts 293507822.63 1597097938.30 No 252639803.32 Southern Tianhe Chassis Systems Procurement Co. Ltd of parts 547250941.45 1899968522.28 No 459025340.96 South Inter Air-conditioner Procurement Co.Ltd. of parts 324599906.01 1348876494.10 No 202161276.20 Panzhihua Wanyou Auto Sales & Accept Service Co. Ltd. labor 148176.37 661829.31 No 257324.00 Purchasing parts and Sichuan Jian'an Industrial Co. Ltd accepting 569748423.73 1696226350.55 No 534985354.14 labor services Sichuan Ningjiang Shanchuan Procurement Machinery Co Ltd. of parts 250225299.36 630594357.18 No 159762835.80 Ya'an Wanyou Auto Sales and Accept Service Co. Ltd. labor 1014389.55 1056331.27 No 846681.30 Yunnan Wanyou Auto Sales and Accept Service Co. Ltd. labor 10507634.88 16222898.50 No 13728699.67 China Changan Automobile Accept Group Tianjin Sales Co. Ltd. labor 2515157.69 812228.08 Yes 692160.09 Chongqing Qingshan Industrial Procurement Co. Ltd of parts 4247550166.24 11215297928.42 No 3637088928.81 Chongqing Wanyou Ducheng Accept Auto Sales Service Co. Ltd. labor 973308.83 2870066.24 No 2584670.89 Chongqing Wanyou Xingjian Accept Auto Sales & Service Co. Ltd. labor 810225.03 555113.26 Yes 716753.30 Purchasing Chongqing Wanyou Economic parts and Development Co. Ltd. accepting 14785490.80 59570534.71 No 40779608.17 labor services 133Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Related parties Nature of Current amount Approved Whether it Prior-period the transaction exceeds the amount transaction amount transaction amount Chongqing Wanyou Zunda Automobile Sales & Service Co. Procurement Ltd. of parts 38252.00 - Yes 114.95 Chongqing Changan Minsheng Accept Logistics Co. Ltd. labor 2685849489.33 8082612973.07 No 1760470945.02 Beijing Beiji Mechanical and Procurement Electrical Industry Co. Ltd. of parts 55471.89 60001.39 No 18410.18 Chengdu Zhongzi Guangming Procurement Catalytic Technology Co. Ltd of parts 277552589.96 51855210.76 Yes - Chengdu Jialing Huaxi Optical & Procurement Precision Machinery Co. Ltd. of parts 501828.63 4336389.65 No 1538164.71 Chengdu Lingchuan Vehicle Oil Procurement Tank Co. Ltd. of parts 22896846.34 53576855.25 No 18148367.15 Purchasing parts and Chengdu Wanyou Filter Co. Ltd. accepting 60828232.32 256871985.48 No 76561417.56 labor services Hubei Huazhong Marelli Procurement Automobile Lighting Co. Ltd. of parts 425498458.56 3093309593.37 No 473880131.14 Hubei Xiaogan Huazhong Car Procurement Lamp Co. Ltd of parts 62177934.16 228392134.24 No 51876744.41 Yunnan Xiyi Industries Co. Ltd. Procurement of parts 65386027.01 174256873.80 No 53637731.83 China Ordnance Equipment Group Human Resources Accept Development Center labor 5377.35 - Yes - China Ordnance Equipment Group Commercial Factoring Co. Accept labor 76040.43 123178.62 No - Ltd Chongqing Dajiang Jiexin Procurement Forging Co. Ltd of parts 916320.42 4355976.69 No 1845245.27 Chongqing Dajiang Yuqiang Procurement Plastic Co. Ltd. of parts 196038.83 138773.63 Yes 344226.01 Chongqing Jianshe Automobile Procurement Air-conditioner Co. Ltd. of parts 30929139.50 110627918.48 No 38555506.77 Chongqing Construction Tongda Procurement Industrial Co. Ltd. of parts 27756255.26 70281670.64 No 16331004.84 Chongqing Nexteer Steering Procurement System Co.Ltd. of parts 482284076.02 1872399642.19 No 400416384.73 Chongqing Shangfang Procurement Automobile Fittings Co. Ltd. of parts 56847951.59 182911907.96 No 52075600.58 Chongqing Qingshan Procurement Transmission Sales Co. Ltd. of parts 29495148.15 47903411.54 No 18687536.60 Chongqing Yihong Engineering Procurement Plastic Products Co. Ltd. of parts 35614480.95 71088788.77 No 14903524.92 Chongqing Changan industry Accept (Group) Co. Ltd labor 6981144.30 16940554.44 No 6341330.87 Chongqing Changan Property Accept Management Co. Ltd. labor 5556152.45 11211104.18 No 1928927.46 Beijing Zhongbing Insurance Procurement Brokerage Co. Ltd. of parts 179456.11 284148.54 No 45762.00 134Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Related parties Nature of Current amount Approved Whether it Prior-period the transaction exceeds the amount transaction amount transaction amount Lear Changan (Chongqing) Procurement Automotive System Co. Ltd of parts 186552716.15 671258752.46 No 229595709.77 Purchasing United Automotive Electronics parts and (Chongqing) Co. Ltd accepting 489858832.36 1429975183.76 No 411241559.03 labor services GKN HUAYU Driveline Systems Procurement (Chongqing) Co. Ltd. of parts 175750765.78 790510541.08 No 210241479.79 Nanjing LingHang Technology Accept Co. Ltd. labor 33388.14 784986.19 No 304110.83 Tiannak Lingchuan (Chongqing) Procurement exhaust system Co. Ltd of parts 23033580.78 94817712.44 No 30942900.59 Changan Laisi (Chongqing) robot Procurement intelligent equipment Co. Ltd of parts 1756066.31 6080910.24 No - Purchasing Chongqing Dajiang Tongyang parts and Plastics Co. Ltd. accepting 251637351.95 642430775.12 No 191978923.57 labor services Purchasing Chongqing Dajiang Guoli parts and Precision Machinery accepting 243266094.33 602237925.04 No 167524798.04 Manufacturing Co. Ltd. labor services Dajiang Yapp Automotive Procurement Systems Co. Ltd. of parts 218898950.45 639666919.95 No 167401222.48 Chongqing Hanon Jianshe Automotive Thermal Systems Procurement of parts 75943637.67 262419840.76 No 71943120.72 Co. Ltd.Chongqing Lingchuan Auto Parts Manufacturing Technology Co. Procurement of parts 101723761.38 246500284.04 No 67077513.30 Ltd.Chongqing Changan Intelligent Industrial Technology Service Accept labor 11279433.62 5609648.20 Yes 513085.15 Co. Ltd Longchang Shanchuan Precision Procurement Welded Tube Co. Ltd. of parts 12373330.60 46371255.34 No 16006962.03 Purchasing Zhongqi Chuangzhi Technology goods and Co. Ltd accepting 480000.94 416000.00 Yes - labor services Chongqing Changrong Procurement Machinery Co. Ltd. of parts 136845945.08 471572232.84 No 105095477.66 Purchasing Chongqing Wutong Chelian parts and Technology Co. Ltd. accepting 157766418.74 2421865920.85 No 18867924.00 labor services China Ordnance News Agency Purchased Items 18555.76 20726.01 No 8235.84 Avatr Technology (Chongqing) Procurement Co. Ltd of parts 928938.06 - Yes - 135Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Related parties Nature of Current amount Approved Whether it Prior-period the transaction exceeds the amount transaction amount transaction amount Southwest Ordnance Industry Chongqing Environmental Protection Research Institute Co. Accept labor 445897.62 3371826.69 No 643025.04 Ltd.Changan Ford Automobile Co. Procurement Ltd. of parts - 21351.61 No 33177.65 Changan Auto Finance Co. Ltd. Accept labor 40003766.38 83784480.00 No 154563517.61 Southwest Ordnance Industry Procurement Co. Ltd of parts - 1300000.00 No - Chongqing Changrong Procurement Machinery Co. Ltd of parts - 60989.98 No - Nanyang Lida Optoelectronics Procurement Co. Ltd of parts - 9739.85 No - Yunnan Wanxing Auto Sales Service Co. Ltd. Accept labor - 143000.00 No 92971.05 Chongqing Changxian Intelligent Technology Co. Ltd Accept labor - 910000000.00 No - Chongqing construction industry Procurement (Group) Co. Ltd of parts - - No 726973.62 Chongqing Pingshan Tk Procurement Carburetor Co. Ltd. of parts - - No 113625.19 Chongqing Wanyou Advertising Procurement Co.Ltd. of parts - - No 144000.00 Ald Fortune Auto Leasing & Procurement Renting (Shanghai) Co. Ltd. of parts - - No 2081065.28 Avatr (Chongqing) Automobile Procurement Sales Service Co. Ltd of parts 61949625.77 - Yes - Total: 14784492172.04 54791273787.10 12077344092.00 Goods sold and services offered In RMB Yuan Related parties Nature of the transaction Current amount Prior-period Amount Changan Ford Automobile Co. Ltd. Selling parts and providing labor services 2017778.68 1977509.38 Changan Mazda Automobile Co. Ltd Selling parts 7133803.72 - Jiangling Holdings Co. Ltd. Providing labor services 207500.00 384888.69 Changan Automobile Financing Co. Ltd. Providing labor services 174835059.92 233886141.47 Chongqing Changan Kuayue Automobile Selling complete vehicles and Co. Ltd. components 105713055.00 35175120.00 Chongqing Changan Kuayue Automobile Sales Co. Ltd. Selling parts 129155.26 84044.68 Deepal Automobile Technology Co. Ltd Selling vehicle parts and providing labor services 111103766.19 941495311.87 Pakistan Master Automobile Co. Ltd. Selling complete vehicles 109372901.50 686073063.37 China Changan Automobile Group Co.Ltd Providing labor services 23760.00 - Anhui Wanyou Automobile Sales Service Selling vehicle parts and Co. Ltd. providing labor services 140376222.36 101714909.87 136Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Related parties Nature of the transaction Current amount Prior-period Amount Chengdu Huachuan Electric Equipment Selling complete vehicles and Co. Ltd. providing labor services 99293.70 - Chengdu Wanyou Trading Co. Ltd. Selling parts and providing labor services 95348.42 8176.99 Chengdu Wanyou Auto Sales and Service Selling vehicle parts and Co.Ltd. providing labor services 832930.32 472725.21 Chengdu Wanyou Auto Trade Service Selling vehicle parts and Co. Ltd. providing labor services 329514962.73 312041141.75 Chengdu Wanyou Xiangyu Auto Sales Selling vehicle parts and and Service Co. Ltd. providing labor services 697109803.93 699738917.76 Guizhou Wanyou Auto Sales and Service Selling vehicle parts and Co. Ltd. providing labor services 565501997.62 501259585.12 Harbin Dongan Automotive Engine Manufacturing Co. Ltd. Selling parts 1993518.61 24251252.09 Hunan Tianyan Machinery Co. Ltd Providing labor services 169811.32 - Jiangsu Wanyou Automobile Sales Selling vehicle parts and Service Co. Ltd. providing labor services 314630817.93 105718270.77 Luzhou Wanyou Automobile Service Co. Selling complete vehicles and Ltd. components 592242.82 450709.55 Panzhihua Wanyou Auto Sales & Service Selling parts and providing labor Co. Ltd. services 329795.23 383700.50 Wanyou Automobile Investment Co. Ltd. Selling complete vehicles and providing labor services 291309672.29 327743125.35 Ya'an Wanyou Auto Sales and Service Selling vehicle parts and Co. Ltd. providing labor services 1523835.89 889767.43 Yunnan Wanyou Auto Sales and Service Selling vehicle parts and Co. Ltd. providing labor services 555923788.70 546916400.91 China South Industries Group Financial Leasing Co. Ltd. Provide services 16343690.21 7077169.81 China Changan Automobile Group Hefei Investment Co. Ltd. Selling complete vehicles 201106.20 - China Changan Automobile Group Selling vehicle parts and Tianjin Sales Co. Ltd. providing labor services 131130406.12 113428610.55 Chongqing Anfu Automobile Co. Ltd. Selling complete vehicles and components 29676902.67 7775221.22 Chongqing Fuji Supply Chain Management Co. Ltd Selling complete vehicles 69216929.01 - Chongqing Tsingshan Industrial Co. Ltd. Selling vehicle parts and providing labor services 470541.17 72087696.68 Chongqing Wanyou Ducheng Auto Sales Selling complete vehicles and Service Co. Ltd. components 2029066.92 1472801.11 Chongqing Wanyou Xingjian Auto Sales & Service Co. Ltd. Selling parts 914070.23 853360.20 Chongqing Wanyou Economic Selling vehicle parts and Development Co. Ltd. providing labor services 895356870.07 924172360.80 Chongqing Wanyou Zunda Automobile Sales & Service Co. Ltd. Selling parts 1211267157.57 319697765.86 Chongqing Changan Minsheng Logistics Selling parts and providing labor Co. Ltd. services 1389240.00 1018913.85 China South Industry Group Finance Co.Ltd. Provide services 667592.00 550714.07 Hubei Huazhong Marelli Automotive Lighting Co. Ltd Selling goods 1313.00 - 137Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Related parties Nature of the transaction Current amount Prior-period Amount Yunnan Xiyi Industries Co. Ltd. Selling parts 663752.00 China South Industries Group Commercial Factoring Co. Ltd. Provide services 5913.36 44333.22 Chongqing Jianshe Automobile Air- conditioner Co. Ltd. Selling parts 7964.60 11946.90 Chongqing Nexteer Steering System Co.Ltd. Selling parts 5921500.00 1552230.09 United Automotive Electronics (Chongqing) Co. Ltd Selling parts 4577309.74 - Nanjing LingHang Technology Co. Ltd. Providing labor services 850308.10 1873252.38 Ald Fortune Auto Leasing & Renting (Shanghai) Co. Ltd. Providing labor services 91754.87 13010318.55 Tiannak Lingchuan (Chongqing) exhaust system Co. Ltd Selling parts 937224.65 2651092.85 Chongqing Dajiang Guoli Precision Selling parts and providing labor Machinery Manufacturing Co. Ltd. services 5757279.81 14217387.85 Chongqing Lingchuan Auto Parts Manufacturing Technology Co. Ltd. Selling parts 765342.53 1214708.00 Zhongqi Chuangzhi Technology Co. Ltd Selling goods 0.94 - Chongqing Wutong Chelian Technology Co. Ltd Selling goods 271.68 - Avatr Technology (Chongqing) Co. Ltd. Selling parts and providing labor services 966811840.03 52471011.00 Dali Wanfu Automobile Sales and Service Co. Ltd Selling parts 11752.21 - Hainan Anxinxing Information Technology Co. Ltd. Providing labor services - 28301.89 Harbin Dongan Auto Engine Co. Ltd. Sales of parts and maintenance services - 1173.00 Yunnan Wanxing Auto Sales Service Co. Selling complete vehicles and Ltd. components - 18951586.08 Chongqing Changan Minsheng Boyu Sales of complete vehicles and Logistics Co. Ltd. training fees - 23716.98 Chengdu Lingchuan Vehicle Oil Tank Co. Ltd. Selling parts - 938416.81 Chongqing Dajiang Yuqiang Plastic Co.Ltd. Selling parts - 131400.00 Chongqing construction industry (Group) Co. Ltd Selling parts - 193218.11 Chongqing Dajiang Tongyang Plastics Co. Ltd. Selling parts - 533842.98 Avatr (Chongqing) Automobile Sales Service Co. Ltd Selling goods 660.38 - Total: 6754944830.21 6077311065.60 (2) Related-party leasing Rent assets to related parties In RMB Yuan Lessee Type of leased assets Report period Amount Same period of last 138Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report period Amount South Inter Air-conditioner Co.Ltd. Vehicle 48849.56 67752.21 Chongqing Changan Industries Group Co. Ltd. Building 3283373.71 3397373.71 Nanjing LingHang Technology Co.Ltd. Vehicle 2624149.56 63932417.73 Ald Fortune Auto Leasing & Renting (Shanghai) Co. Ltd. Vehicle 22935079.52 2696360.42 Deepal Automobile Technology Co. Building land and battery Ltd Workshop 27782737.08 10675075.50 Chongqing Changan Minsheng Logistics Co. Ltd. Building 348266.98 354900.63 Chongqing Wanyou Economic Development Co. Ltd. Building and land 321100.92 321100.92 Chongqing Changan Real Estate Development Co. Ltd Vehicle 24424.78 - Total 81444981.12 57367982.11 Rent assets from related parties In RMB Yuan Rent paid Lessor Type of leased assets Report period Amount Same period of last period Amount Chongqing Changan Minsheng Logistics Co. Ltd Land 8133557.01 1730062.80 Chongqing Changan Property Management Co. Ltd Land 2977660.00 - Total 11111217.01 (3) Other related transactions Integrated service charges In RMB Yuan Related parties Nature of the transaction Report period Amount Same period of last period Amount Payment of land rental fees - 3091095.90 Payment of building rental fees - 1197968.00 Changan Industries (Group) Co. Ltd Payment of utilities 37806926.34 27574790.98 Others - 513677.67 Total 32377532.55 37806926.34 Purchase of project materials In RMB Yuan Related parties Report period Amount Same period of last period Amount 139Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Chongqing Changan Minsheng Logistics Co. Ltd - 8150.95 Changan Laisi (Chongqing) robot intelligent equipment Co. Ltd - 7830088.50 Chongqing Changan Intelligent Industrial Technology Service Co. Ltd 2743362.86 - Total 2743362.86 7838239.45 Staff expenses for technical supporting In RMB Yuan Related parties Report period Amount Same period of last period Amount Changan Mazda Automobile Co. Ltd 9131656.92 222474.38 Changan Ford Automobile Co. Ltd 5605674.97 7943502.33 Changan Mazda Engine Co. Ltd. 6703950.04 242821.56 Hainan Anxinxing Information Technology Co. Ltd. - 634354.87 Chongqing Shangfang Auto Parts Co. Ltd 37002.00 - Jiangling Holdings Co. Ltd 7343774.35 - Chongqing Changan Crossing Vehicle Co. Ltd 1212194.63 - China Changan Automobile Group Co. Ltd 169811.32 - Chongqing Nexteer Steering System Co. Ltd 18026.66 - Chongqing Dajiang National Precision Machinery Manufacturing Co. Ltd 2520.00 - Jiangling Automobile Co. Ltd 826370.83 - Chongqing Construction Transmission Technology Co. Ltd 27872.04 - Chongqing WutongChelian Technology Co. Ltd 208063.02 - Avatr Technology (Chongqing) Co. Ltd 682780.43 - Total 31969697.21 9043153.14 Techonology development service charges In RMB Yuan Related parties Report period Amount Same period of last period Amount Chongqing Tsingshan Industrial Co. Ltd. 10144721.22 Changan Mazda Automobile Co. Ltd 397572.54 Total 10542293.76 Collection of trademark use rights fees In RMB Yuan Related parties Report period Amount Same period of last period Amount Chongqing Changan Kuayue Automobile Co. Ltd. 6009433.96 270188.68 140Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Related party monetary funds In RMB Yuan Related parties Ending Amount Beginning Amount China South Industries Group Finance Co. Ltd 19857412889.08 19862952043.78 Changan Automobile Finance Co. Ltd 14700000000.00 14950000000.00 Total 34557412889.08 34812952043.78 First half of 2023 the annual interest rate of deposits deposited with related parties is 0.35% - 2.25% and the term is 0-12 months.Borrowing Short-term borrowing In RMB Yuan Related parties Ending Amount Beginning Amount China South Industries Group Finance Co. Ltd 20000000.00 29000000.00 Long-term borrowing In RMB Yuan Related parties Ending Amount Beginning Amount China South Industries Group Finance Co. Ltd 80000000.00 40000000.00 Interest income of deferred payment In RMB Yuan Related parties Report period Amount Same period of last period Amount Jiangsu Wanyou Automobile Sales Service Co. Ltd 1380.53 - Chongqing Wanyou Economic Development Co. Ltd - 6588.40 China Changan Automobile Group Tianjin Sales Co. - 2489.29 Ltd.Total 1380.53 9077.69 6. Payment and receivables of related parties (1) Payment receivables of related listed companies In RMB Yuan Items Related parties Ending balance Beginning balance Notes Chongqing Changan Kuayue Automobile receivable Sales Co. Ltd. 37452780.00 - 141Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Items Related parties Ending balance Beginning balance Notes receivable Deepal Automobile Technology Co. Ltd - 3623354650.53 Notes Chengdu Wanyou Auto Trade Service Co.receivable Ltd. 22000000.00 22500000.00 Notes Guizhou Wanyou Auto Sales and Service receivable Co. Ltd. 5000000.00 7300000.00 Notes Harbin Dongan Automotive Engine receivable Manufacturing Co. Ltd. 1000729.17 3029467.77 Notes receivable Wanyou Automobile Investment Co. Ltd. 2214980000.00 3047690000.00 Notes Yunnan Wanyou Auto Sales and Service receivable Co. Ltd. 35000000.00 43000000.00 Notes receivable Chongqing Tsingshan Industrial Co. Ltd. 40822710.36 40463588.91 Notes Chongqing Wanyou Economic receivable Development Co. Ltd. 27000000.00 20250000.00 Notes receivable Avatr Technology (Chongqing) Co. Ltd. 494166303.64 121822864.29 Subtotal 2877422523.17 6929410571.50 Account receivable Changan Ford Automobile Co. Ltd. 6885149.43 195582372.52 Account receivable Changan Mazda Automobile Co. Ltd 9148414.64 72378357.38 Account receivable Changan Mazda Engine Co. Ltd. 3373248.04 3494661.85 Account receivable Jiangling Holdings Co. Ltd. 49384266.38 121166512.75 Account receivable Changan Auto Finance Co. Ltd. 29156758.91 68199053.80 Account Chongqing Changan Kuayue Vehicle Co.receivable Ltd 17920237.90 39592219.39 Account receivable Beijing Fang’an cresent taxi Co. Ltd. - 38600000.00 Account Chongqing Changan Kuayue Automobile receivable Sales Co. Ltd. 14942.80 31861.79 Account receivable Deepal Automobile Technology Co. Ltd - 1011838777.69 Account receivable Pakistan Master Automobile Co. Ltd. 30444169.62 37958837.25 Account China Changan Automobile Group Co.receivable Ltd 180000.00 - Account Chengdu Huachuan Electric Equipment receivable Co. Ltd 50000.00 - Account Harbin Dongan Automotive Engine receivable Manufacturing Co. Ltd. 391043.25 147532.81 Account China South Industries Group Financial receivable Leasing Co. Ltd. 5410074.20 9734968.89 Account receivable Chongqing Tsingshan Industrial Co. Ltd. 31864429.19 29579405.37 Account Chongqing Changan industry (Group) receivable Co. Ltd 3626628.57 3626628.57 Account receivable Nanjing LingHang Technology Co. Ltd. 1428345.48 4209516.65 142Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Items Related parties Ending balance Beginning balance Account Ald Fortune Auto Leasing & Renting receivable (Shanghai) Co. Ltd. 4315640.00 5181800.00 Account receivable Avita Technology (Chongqing) Co. Ltd. 394779882.78 320592883.29 Account receivable JMC - 1176831.13 Account Chongqing Changan Minsheng Logistics receivable Co. Ltd. - 688099.86 Account Chengdu Wanyou Xiangyu Automobile receivable Sales and Service Co. Ltd - 127548.00 Account Guizhou Wanyou Auto Sales and Service receivable Co. Ltd. - 63900.00 Account China South Industries Group receivable Commercial Factoring Co. Ltd. - 1841.34 Account Chongqing Changan Intelligent Industrial receivable Technology Service Co. Ltd - 0.15 Account Tiannak Lingchuan (Chongqing) exhaust receivable system Co. Ltd - 0.03 Subtotal 588373231.19 1963973610.51 Other Chongqing Changan Minsheng Logistics receivable Co. Ltd. 475374.49 436.57 Other China South Industry Group Finance Co.receivable Ltd. 243650.67 859049.92 Other receivable Nanjing LingHang Technology Co. Ltd. 107028.38 - Other Chongqing Changxin Zhiqi Private Equity receivable Investment Fund Partnership (Limited 35000000.00 - Partnership) Other Chongqing Changan industry (Group) receivable Co. Ltd 1157446.69 1157446.69 Other China South Industries Group receivable Commercial Factoring Co. Ltd. 44615500.00 - Other China Changan Automobile Group Hefei receivable Investment Co. Ltd 282382.49 - Subtotal 81881382.72 2016933.18 Advanced payment Deepal Automobile Technology Co. Ltd - 10397480.50 Advanced Beijing Wutong Chelian Technology Co.payment Ltd. 12769380.30 12438660.30 Subtotal 12769380.30 22836140.80 (2) Accounts payable to related parties of listed companies In RMB Yuan Items Related parties Ending balance Beginning balance Notes payable Jiangling Holdings Co. Ltd. 772650078.38 59248188.59 Notes payable Deepal Automobile Technology Co. Ltd - 293766946.00 Notes payable Harbin Dongan Auto Engine Co. Ltd. 69720000.00 59090000.00 143Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Items Related parties Ending balance Beginning balance Notes payable Harbin Dongan Automotive Engine Manufacturing Co. Ltd. 181260000.00 197280000.00 Notes payable Hunan Tianyan Machinery Co. Ltd 3680000.00 - Notes payable CSM Faurecia Automotive Parts Co. Ltd. 71521000.00 36370000.00 Notes payable South Tianhe Chassis System Co. Ltd. 46898358.00 118961825.13 Notes payable South Inter Air-conditioner Co.Ltd. 188840000.00 130650474.98 Notes payable Sichuan Ningjiang Shanchuan Machinery Co Ltd. 109816824.00 60759442.02 Notes payable Chongqing Tsingshan Industrial Co. Ltd. 1313041354.00 1078658254.05 Notes payable Chongqing Changan Minsheng Logistics Co. Ltd. 336484318.39 300858223.58 Notes payable CDGM Tanaka Environmental Catalyst Co.Ltd. 62940000.00 560000.00 Notes payable Chengdu Jialing Huaxi Optical & Precision Machinery Co. Ltd. 330000.00 950000.00 Notes payable Chengdu Lingchuan Vehicle Oil Tank Co. Ltd. 2620000.00 - Notes payable Chengdu Wanyou Filter Co. Ltd. 26550000.00 34373849.84 Notes payable Hubei Huazhong Marelli Automobile Lighting Co. Ltd. 144870000.00 139690000.00 Notes payable Hubei Xiaogan Huazhong Automobile Light Co. Ltd. 36940000.00 15650000.00 Notes payable Chongqing Dajiang Jiexin Forging Co. Ltd. 1010000.00 1090000.00 Notes payable Chongqing Jianshe Automobile Air-conditioner Co. Ltd. 21560000.00 20050000.00 Notes payable Chongqing Construction Tongda Industrial Co. Ltd. 14439729.00 10640000.00 Notes payable Chongqing Nexteer Steering System Co.Ltd. 192490000.00 327738252.79 Notes payable Chongqing Shangfang Automobile Fittings Co. Ltd. 34683825.00 33869017.86 Notes payable Chongqing Yihong Engineering Plastic Products Co. Ltd. 19740000.00 19560000.00 Notes payable GKN HUAYU Driveline Systems (Chongqing) Co. Ltd 118680000.00 98250000.00 Notes payable Tiannak Lingchuan (Chongqing) exhaust system Co. Ltd 29740000.00 32530000.00 Notes payable Chongqing Dajiang Tongyang Plastics Co. Ltd. 205123800.00 145840000.00 Notes payable Chongqing Dajiang Guoli Precision Machinery Manufacturing Co. Ltd. 4463262.00 7765999.95 Notes payable Dajiang Yapp Automotive Systems Co. Ltd. 199010000.00 175450000.00 Notes payable Chongqing Hanon Jianshe Automotive Thermal Systems Co. Ltd. 49510000.00 82600000.00 144Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Items Related parties Ending balance Beginning balance Notes payable Chongqing Lingchuan Auto Parts Manufacturing Technology Co. Ltd. 90380000.00 80530000.00 Notes payable Longchang Shanchuan Precision Welded Tube Co. Ltd. 4942403.00 6140145.72 Notes payable Southwest Ordnance Industry Chongqing Environmental Protection Research Institute Co. Ltd. 1012449.43 - Notes payable Chongqing Changrong Machinery Co. Ltd. - 1314548.20 Notes payable Hunan Tianyan Machinery Co. Ltd. - 630000.00 Subtotal 4354947401.20 3570865168.71 Account payable Jiangling Holdings Co. Ltd. 164547071.39 1116408615.48 Account payable Hangzhou Chelizi Intelligent Technology Co. Ltd. 12350.00 12350.00 Account payable Deepal Automobile Technology Co. Ltd - 822638571.39 Account payable Beijing Wutong Chelian Technology Co. Ltd. 1632357.66 4301349.18 Account payable Chengdu Huachuan Electric Equipment Co. Ltd. 57494293.50 41958250.19 Account Chengdu Ningjiang Zhaohe Automobile Components payable Co. Ltd. 1175453.90 1358424.58 Account payable Harbin Dongan Auto Engine Co. Ltd. 41477760.18 103616123.17 Account Harbin Dongan Automotive Engine Manufacturing payable Co. Ltd. 480894.09 99563867.81 Account payable Hafei Automobile Co. Ltd 344.04 344.04 Account payable Hunan Tianyan Machinery Co. Ltd 62773650.28 - Account payable CSM Faurecia Automotive Parts Co. Ltd. 106611292.57 79576674.87 Account payable South Tianhe Chassis System Co. Ltd. 188361446.89 142620012.97 Account payable South Inter Air-conditioner Co.Ltd. 130716589.27 87495633.58 Account payable Sichuan Jian'an Industrial Co.Ltd. 107350795.49 40868455.07 Account payable Sichuan Ningjiang Shanchuan Machinery Co Ltd. 32663780.69 11108409.24 Account payable Chongqing Tsingshan Industrial Co. Ltd. 711328381.80 153454423.03 Account Chongqing Wanyou Xingjian Auto Sales & Service payable Co. Ltd. 20842.80 20842.80 Account payable Chongqing Wanyou Economic Development Co. Ltd. 4575091.49 757763.87 Account payable Chongqing Changan Minsheng Logistics Co. Ltd. 10622441.06 12696301.88 Account payable CDGM Tanaka Environmental Catalyst Co.Ltd. 257112640.35 32759347.97 145Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Items Related parties Ending balance Beginning balance Account Chengdu Jialing Huaxi Optical & Precision payable Machinery Co. Ltd. 202481.66 559576.76 Account payable Chengdu Lingchuan Vehicle Oil Tank Co. Ltd. 11183506.80 8056699.53 Account payable Chengdu Wanyou Filter Co. Ltd. 26556287.37 14115700.51 Account Hubei Huazhong Marelli Automobile Lighting Co.payable Ltd. 146612808.09 236096916.60 Account payable Hubei Xiaogan Huazhong Automobile Light Co. Ltd. 17446057.16 19359970.66 Account payable Yunnan Xiyi Industries Co. Ltd. 28768504.82 4210156.64 Account payable Chongqing Dajiang Jiexin Forging Co. Ltd. 107645.85 312203.77 Account payable Chongqing Dajiang Yuqiang Plastic Co. Ltd. 38651.31 496894.20 Account payable Chongqing Jialing Yimin Special Equipment Co. Ltd. 104496.50 104496.50 Account Chongqing Jianshe Automobile Air-conditioner Co.payable Ltd. 15637578.08 10360465.69 Account Chongqing Jianshe Mechanical & Electrical payable Equipment Co. Ltd. 47265.91 47265.91 Account payable Chongqing Construction Tongda Industrial Co. Ltd. 20074980.69 11268342.31 Account payable Chongqing Nexteer Steering System Co.Ltd. 330092881.48 278876988.05 Account payable Chongqing Shangfang Automobile Fittings Co. Ltd. 19581178.77 13575599.30 Account payable Chongqing Qingshan Transmission Sales Co. Ltd. 6031563.88 10199151.11 Account payable Chongqing Xiyi automobile connecting rod Co. Ltd 38422.14 38422.14 Account Chongqing Yihong Engineering Plastic Products Co.payable Ltd. 10554570.55 4247025.85 Account payable Chongqing Changan industry (Group) Co. Ltd 234239.51 236355.17 Account Lear Changan (Chongqing) Automotive System Co.payable Ltd 9335.39 109342564.03 Account payable United Automotive Electronics (Chongqing) Co. Ltd 98553343.25 72864235.98 Account GKN HUAYU Driveline Systems (Chongqing) Co.payable Ltd 41873286.99 49148122.03 Account Tiannak Lingchuan (Chongqing) exhaust system Co.payable Ltd 43743.18 5380229.34 Account payable Chongqing Dajiang Tongyang Plastics Co. Ltd. 74791702.46 86558622.08 Account Chongqing Dajiang Guoli Precision Machinery payable Manufacturing Co. Ltd. 17036265.16 6417935.77 Account payable Dajiang Yapp Automotive Systems Co. Ltd. 158843424.75 152806662.74 Account Chongqing Hanon Jianshe Automotive Thermal payable Systems Co. Ltd. 1646423.15 2388277.76 146Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Items Related parties Ending balance Beginning balance Account Chongqing Lingchuan Auto Parts Manufacturing payable Technology Co. Ltd. 37859893.35 25869763.88 Account Chongqing Changan Intelligent Industrial Technology payable Service Co. Ltd 1443978.00 - Account Longchang Shanchuan Precision Welded Tube Co.payable Ltd. 3273547.80 1759775.48 Account payable Chongqing Changrong Machinery Co. Ltd. 40659325.37 18773538.36 Account payable Chongqing Wutong Chelian Technology Co. Ltd 2379826.71 - Account payable Avatr Technology (Chongqing) Co. Ltd 1049700.00 - Account Changan Reis (Chongqing) Robotic Intelligent payable Equipment Co. Ltd. - 8537490.14 Account payable Changan Ford Automobile Co. Ltd. - 1878695.33 Account Southwest Ordnance Industry Chongqing payable Environmental Protection Research Institute Co. Ltd. - 963651.26 Account payable Chengdu Lingchuan Special Industry Co. Ltd. - 220175.48 Account payable Chongqing Automobile Air-conditioner Co. Ltd. - 205041.51 Account payable Hunan Tianyan Machinery Co. Ltd. - 143359.78 Account payable Chongqing Dajiang Xinda Vehicles Shares Co. Ltd. - 56251.08 Account Beijing Beiji Mechanical and Electrical Industry Co.payable Ltd. - 3165.30 Account payable Chongqing Changan Kuayue Vehicle Co. Ltd - 1382.56 Account payable Chongqing Changfeng Jiquan Machinery Co. Ltd. - 1340.91 Account payable Chengdu Wanyou Auto Trade Service Co. Ltd. 426628.98 250 Account Chongqing Wanyou Ducheng Auto Sales Service Co.payable Ltd. 3486.65 - Subtotal 2992164509.21 3906698522.62 Contract liabilities Changan Ford Automobile Co. Ltd. 0.36 493954.43 Contract liabilities Changan Automobile Finance Co. Ltd 685200.00 685200.00 Contract liabilities Anhui Wanyou Automobile Sales Service Co. Ltd. 13745063.04 12540522.24 Contract liabilities Bazhong Wanyou Auto Sales & Service Co. Ltd. 50426.48 50426.48 Contract liabilities Chengdu Wanyou Trading Co. Ltd. 34357.00 18900.00 Contract liabilities Chengdu Wanyou Auto Sales and Service Co.Ltd. 111561.78 101869.64 Contract liabilities Chengdu Wanyou Auto Trade Service Co. Ltd. 29592086.71 18393074.44 Contract Chengdu Wanyou Xiangyu Auto Sales and Service liabilities Co. Ltd. 94127263.38 64279954.50 147Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Items Related parties Ending balance Beginning balance Contract liabilities Guizhou Wanyou Auto Sales and Service Co. Ltd. 51855145.20 96702773.24 Contract liabilities Hafei Automobile Co. Ltd 471942.49 471942.49 Contract liabilities Jiangsu Wanyou Automobile Sales Service Co. Ltd. 87805094.37 58420002.39 Contract liabilities Luzhou Wanyou Automobile Service Co. Ltd. 76183.28 91342.25 Contract liabilities Panzhihua Wanyou Auto Sales & Service Co. Ltd. 44578.01 16305.41 Contract liabilities Wanyou Automobile Investment Co. Ltd. 13995992.74 47689212.74 Contract liabilities Ya'an Wanyou Auto Sales and Service Co. Ltd. 94915.31 75083.25 Contract liabilities Yunnan Wanyou Auto Sales and Service Co. Ltd. 24818155.28 49769852.59 Contract China Changan Automobile Group Hefei Investment liabilities Co. Ltd. 10273.00 10273.00 Contract China Changan Automobile Group Tianjin Sales Co.liabilities Ltd. 20689970.87 33057138.53 Contract Chongqing Wanyou Ducheng Auto Sales Service Co.liabilities Ltd. 288575.24 373179.91 Contract Chongqing Wanyou Xingjian Auto Sales & Service liabilities Co. Ltd. 163077.92 155719.35 Contract liabilities Chongqing Wanyou Economic Development Co. Ltd. 112755890.79 124667991.83 Contract Chongqing Wanyou Zunda Automobile Sales & liabilities Service Co. Ltd. 67022495.88 74694999.66 Contract liabilities Chongqing Changan Minsheng Logistics Co. Ltd. 239944.56 416441.17 Contract liabilities Chongqing Shangfang Automobile Fittings Co. Ltd. 12979.98 12979.98 Contract liabilities Avatr Technology (Chongqing) Co. Ltd 587105.03 5832549.46 Contract liabilities Dali Wanfu Automobile Sales and Service Co. Ltd 206.06 3486.06 Contract liabilities Jiangling Holdings Co. Ltd. - 6854200.00 Contract liabilities Pakistan Master Automobile Co. Ltd. - 5213676.57 Contract liabilities Chongqing Anfu Automobile Co. Ltd. - 149000.00 Contract liabilities Yunnan Wanxing Auto Sales Service Co. Ltd. - 6816.00 Contract liabilities Guangxi Wanyou Auto Sales and Service Co. Ltd. - 302.4 Subtotal 519278484.76 601249170.01 Other payables Nanjing Chelai Travel Technology Co. Ltd 17201.61 - Other payables Deepal Automobile Technology Co. Ltd - 113039584.99 Other payables China Changan Automobile Group Co. Ltd. 1000.00 1000.00 148Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Items Related parties Ending balance Beginning balance Other payables Anhui Wanyou Automobile Sales Service Co. Ltd. 735600.00 1475600.00 Other payables Chengdu Huachuan Electric Equipment Co. Ltd. 593.85 173206.40 Other payables Chengdu Wanyou Auto Sales and Service co.Ltd. 190000.00 790000.00 Other payables Chengdu Wanyou Auto Trade Service Co. Ltd. 2843347.45 3607415.80 Other Chengdu Wanyou Xiangyu Auto Sales and Service payables Co. Ltd. 6069300.00 7732620.00 Other payables Guizhou Wanyou Auto Sales and Service Co. Ltd. 1119300.00 4007517.20 Other payables Harbin Dongan Auto Engine Co. Ltd. 80465.04 106468.60 Other Harbin Dongan Automotive Engine Manufacturing payables Co. Ltd. 205660.00 203155.92 Other payables Jiangsu Wanyou Automobile Sales Service Co. Ltd. 4609714.52 4970000.00 Other payables Luzhou Wanyou Automobile Service Co. Ltd. 121800.00 129140.00 Other payables South Tianhe Chassis System Co. Ltd. 442571.34 293868.55 Other payables South Inter Air-conditioner Co.Ltd. 57987.25 1567432.39 Other payables Sichuan Jian'an Industrial Co.Ltd. 7726533.47 2101400.49 Other payables Sichuan Ningjiang Shanchuan Machinery Co Ltd. 57554.22 - Other payables Ya'an Wanyou Auto Sales and Service Co. Ltd. 1863900.00 2063900.00 Other payables Yunnan Wanyou Auto Sales and Service Co. Ltd. 5277100.00 10068122.20 Other China Changan Automobile Group Tianjin Sales Co.payables Ltd. 4329000.00 3729000.00 Other payables Chongqing Tsingshan Industrial Co. Ltd. 20421377.38 7868918.85 Other Chongqing Wanyou Ducheng Auto Sales Service Co.payables Ltd. 572718.72 1096014.24 Other Chongqing Wanyou Xingjian Auto Sales & Service payables Co. Ltd. 400880.00 400000.00 Other payables Chongqing Wanyou Economic Development Co. Ltd. 7013538.00 7660147.80 Other Chongqing Wanyou Zunda Automobile Sales & payables Service Co. Ltd. 2150000.00 - Other payables Chongqing Changan Minsheng Logistics Co. Ltd. 702549204.53 392075910.69 Other payables Chengdu Wanyou Filter Co. Ltd. 1257067.02 1266573.71 Other Hubei Huazhong Marelli Automobile Lighting Co.payables Ltd. 16218.04 - Other Chongqing Jianshe Automobile Air-conditioner Co.payables Ltd. 72772.00 - 149Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Items Related parties Ending balance Beginning balance Other payables Chongqing Construction Tongda Industrial Co. Ltd. 43645.91 33787.00 Other payables Chongqing Nexteer Steering System Co.Ltd. 2580821.97 - Other payables Chongqing Shangfang Automobile Fittings Co. Ltd. 560706.00 1113793.54 Other Chongqing Yihong Engineering Plastic Products Co.payables Ltd. 81.06 - Other payables Chongqing Changan industry (Group) Co. Ltd 791056.30 2960859.38 Other payables Chongqing Changan Property Management Co. Ltd. 5865755.49 1935184.57 Other payables Chongqing Changan Construction Co. Ltd. 26375786.10 26391448.08 Other payables United Automotive Electronics (Chongqing) Co. Ltd 33324.83 3439700.00 Other GKN HUAYU Driveline Systems (Chongqing) Co.payables Ltd. 308222.97 - Other payables Nanjing Lingxing Technology Co. Ltd 7275.64 - Other Ald Fortune Auto Leasing & Renting (Shanghai) Co.payables Ltd. 7500000.00 - Other Changan Reis (Chongqing) Robotic Intelligent payables Equipment Co. Ltd. 1913989.51 917118.52 Other Chongqing Dajiang Guoli Precision Machinery payables Manufacturing Co. Ltd. 141250.00 - Other Chongqing Lingchuan Auto Parts Manufacturing payables Technology Co. Ltd. 26668.00 219898.32 Other Chongqing Changan Intelligent Industrial Technology payables Service Co. Ltd 1467227.64 4404413.09 Other payables Chongqing Changrong Machinery Co. Ltd. 283545.60 - Other payables China Ordnance News 17100.00 - Other Southwest Ordnance Industry Chongqing payables Environmental Protection Research Institute Co. Ltd. 8269753.03 - Other payables Dali Wanfu Automobile Sales and Service Co. Ltd 26793.40 - Other payables Chongqing Dajiang Tongyang Plastics Co. Ltd. - 1423800.00 Other payables Hunan Tianyan Machinery Co. Ltd. - 1235044.80 Other payables Chongqing Anfu Automobile Co. Ltd. - 200000.00 Other payables Chongqing Dajiang Xinda Vehicles Shares Co. Ltd. - 150000.00 Other payables Yunnan Xiyi Industries Co. Ltd. - 148030.00 Other China Changan Automobile Group Hefei Investment payables Co. Ltd. - 106890.47 Other payables Jiangling Holdings Co. Ltd. - 47703.40 150Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Items Related parties Ending balance Beginning balance Other payables Hubei Xiaogan Huazhong Automobile Light Co. Ltd. - 27828.32 Other payables Chengdu Wanyou Trading Co. Ltd. - 11391.20 Other payables Dajiang Yapp Automotive Systems Co. Ltd. - 10855.59 Other payables Panzhihua Wanyou Auto Sales & Service Co. Ltd. - 4550.30 Other payables Chongqing Changan Kuayue Vehicle Co. Ltd 43187810.00 - Subtotal 869603217.89 611209294.41 XIII. Share-based payments 1. General information √ Applicable □ Non-applicable Unit: share currency: RMB Total amount of equity instruments granted by the company in the current period 0.00 Total amount of equity instruments exercised by the company in the current period 44275061.00 Total amount of various equity instruments expired in the current period of the company 2476422.00 The scope of exercise price of stock options issued by the company at the end of the period and the No remaining term of the contract Restricted shares were granted for the first time in February 2021 the grant The scope of exercise price of other equity price was 6.66 yuan/share (before adjustment) and the remaining term is 32 instruments issued at the end of the period and the months; remaining term of the contract Restricted shares were reserved for grant in November 2021 the grant price was 9.93 yuan/share (before adjustment) and the remaining term is 42 months 2. Equity settled share based payment √ Applicable □ Non-applicable In RMB Yuan Determination method of fair value of equity instruments on the grant date Market price method model calculation Basis for determining the number of exercisable Based on the best estimate of the number of exercisable equity instruments the equity instruments relevant expenses and costs are calculated according to the fair value of the equity instruments on the grant date Reasons for significant differences between the current estimate and the previous estimate No Cumulative amount of equity settled share based payment included in capital reserve 550321460.92 Total recognized expenses of equity settled share based payment in the current period 187899000.00 3. Cash settled share based payment □ Applicable √ Not applicable 151Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 4. Modification and termination of share based payment □ Applicable √ Not applicable 5. Other □ Applicable √ Not applicable XIV. Commitments and Contingencies 1. Significant commitments Contracted but not provided for Items 2023.6.30 2022.12.31 Capital commitments 10900775809.89 11675534857.57 Investment commitments 714150001.00 1782940000.00 Total 11614925810.89 13458474857.57 2. Contingencies By June 30 2023 no material contingencies needed to be disclosed.XV. Events after the balance sheet date None XVI. Other important events 1. Segment information The Group identifies operating segments based on the internal organization structure managerial requirements and internal reporting system and identifies reportable segments based on operating segments and discloses segment information by operating segment.An operating segment is a component of the Group that meets all the following conditions: (1) it engages in business activities from which it may earn revenues and incur expenses; (2) its operating results are regularly reviewed by the Company’s management to make decisions about resources to be allocated to the segment and assess its performance; and (3) the Group can obtain relevant accounting information such as its financial position operating results and cash flows. If two or more segments have similar economic characteristics and meet certain conditions they can be aggregated into a single operating segment.The revenue and profit of the Group mainly consist of the automobile manufacturing and domestic sales. The Group’s principal assets are in China. The operating performance of the Group has been evaluated as a whole by the management. So the segment report has not been prepared for this year. 152Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 2. Lease arrangements (1) As lessor The Group leases buildings machinery and equipment and vehicles for a lease term of 1-15 years forming an operating lease.Details for investment property and operating leased fixed assets refer to note VII 13 and 14.The income related to operating leases are listed as follows: In RMB Yuan Report period Amount Leasehold Income 233112047.46 According to the lease contract signed with the lessee the minimum lease collection amount of irrevocable lease is as follows: In RMB Yuan Ending balance Less than 1 year (including 1 year) 472029012.94 1 to 2 years (including 2 years) 332018203.12 2 to 3 years (including 3 years) 192256798.72 3 to 4 years (including 3 years) 78908912.59 4 to 5 years (including 3 years) 20943996.69 Over 5 years 47276700.94 Total 1143433625.00 (2) As lessee In RMB Yuan Report period Amount Interest expense of lease liabilities 7350104.73 Short term lease expenses with simplified treatment included in current profit and loss 39773086.74 Lease expense of low value assets with simplified treatment included in current profit and loss 123052.14 Total cash outflow related to leasing 67798755.00 The leased assets leased by the Group include buildings and other equipment used in the operation activities. The lease term of houses and buildings is usually 1-5 years and that of other equipment is usually 2-5 years.XVII. Notes to the main items of the parent company’s financial statements 1. Account Receivables (1) Aging analysis of accounts receivable is as follow: In RMB Yuan Account receivable age Ending balance Beginning balance Less than 1 year (including 1 year) 8025560564.12 4445068297.55 1 to 2 years (including 2 years) 316966984.01 997705973.80 2 to 3 years (including 3 years) 587836483.56 - 153Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Over 3 years 182543593.50 213599440.84 Total 9112907625.19 5656373712.19 Minus：Provision (78268533.42) (117868890.37) Net value of accounts receivable 9034639091.77 5538504821.82 (2) Movements of provision for accounts receivable are as follows: In RMB Yuan Report period Amount Items Beginning balance Ending balance Accrual Reversal Write-off 2023.6.30117868890.371000356.9538600000.0078268533.42 2022.12.31102237112.4217018007.911386229.96117868890.37 (3) Disclosure of accounts receivable In RMB Yuan Ending balance Items Book balance Provision for bad-debts Book value Amount （%） Amount （%） Individual assessment of credit 8780451896.59 96.35 37652846.20 0.43 8742799050.39 expected loss and provision for bad debts Assess bad debt provision for 332455728.60 3.65 40615687.22 12.22 291840041.38 expected credit expected loss according to credit risk characteristics combination Total 9112907625.19 100.00 78268533.42 0.86 9034639091.77 Beginning balance Items Book balance Provision for bad-debts Book value Amount （%） Amount （%） Individual assessment of credit 5137221177.03 90.82 76252846.20 1.48 5060968330.83 expected loss and provision for bad debts Assess bad debt provision for 519152535.16 9.18 41616044.17 8.02 477536490.99 expected credit expected loss according to credit risk characteristics combination Total 5656373712.19 100.00 117868890.37 2.08 5538504821.82 (4) Accounts receivable of the top five ending balances collected by the debtor As of June 30 2023 the top five accounts receivable amounted to RMB 7003710837.32 accounting for 76.85% of the total accounts receivable (December 31 2022: RMB 3044844058.24 accounting for 53.83% of the total accounts receivable). 154Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 2. Other receivables In RMB Yuan Items Ending balance Beginning balance Dividends receivable 180656814.04 Other receivables 106460223.26 859026748.64 Total 287117037.30 859026748.64 (1) Dividends receivable In RMB Yuan Items ( or invested units ) Ending balance Beginning balance China South Industry Group Finance Co. Ltd. 180656814.04 Total 180656814.04 (2) Other receivables 1) Aging analysis of other receivables is as follows: In RMB Yuan Account receivable age Ending balance Beginning balance Within 1 year 101340518.06 842446117.27 1 to 2 years 3795520.37 7116112.63 2 to 3 years 100000.00 1226346.51 Over 3 years 8337264.46 15300830.26 Total 113573302.89 866089406.67 Minus:Provision (7113079.63) (7062658.03) Net value of other receivables 106460223.26 859026748.64 2) Analysis of other receivables by nature is as follows: In RMB Yuan Items Ending balance Beginning balance Petty cash 52736507.27 62920147.86 Prepaid equity investment 35000000.00 399486432.52 Internal transactions 5815029.62 32946539.47 Energy-saving and new energy subsidy 338394118.63 Others 12908686.37 25279510.16 Total 106460223.26 859026748.64 155Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 3) The changes in the provision for bad debts for other receivables based on the 12-month expected credit loss and the expected credit loss for the entire duration are as follows: In RMB Yuan Report period Amount Items Beginning balance Ending balance Accrual Reversal 2023.6.307062658.0374667.4024245.807113079.63 2022.12.317062658.0374667.4024245.807113079.63 4) Top five debtors of other receivables are as follows: In RMB Yuan Items Nature of payment Ending balance Aging Proportion of total Ending other receivables (%) balance of provision First place Investment funds 35000000.00 Within 1 year 30.82 Second place Internal transactions 4628877.79 Within 1 year 4.08 Third place Margin 4058265.28 Within 1 year 3.57 Fourth place Margin 3200000.00 Within 1 year 2.82 Fifth place Margin 2000000.00 Over 5 years 1.76 Total 48887143.07 43.05 5) Other receivables derecognized due to transfer of financial assets As of June 30 2023 the Group had no other receivables derecognized as financial asset transfers (December 31 2022: None). 156Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 3. Long-term equity investment （1） Investment in subsidiaries In RMB Yuan Changes during report period Investee Opening Balance reduce Ending Balance Ending Balance of Addition investment Provision for impairment provision Nanjing Changan Automobile Co. Ltd. 422533259.00 422533259.00 Chongqing Changan International Automobile 203068581.00 203068581.00 Sales Co. Ltd.Chongqing Changan Automobile Supporting 29700000.00 29700000.00 Service Co. Ltd.Chongqing Changan Special Automobile Co. 2500000.00 2500000.00 Ltd.Chongqing Changan Europe Design Center 155469913.50 155469913.50 Co. Ltd.Chongqing Changan New Energy Automobile 49194195.00 Co. Ltd.Changan United Kingdom R&D Center Co. 250093850.95 250093850.95 Ltd.Chongqing Changan Connected Car 88500000.00 88500000.00 Technology Co. Ltd.Beijing Changan R&D Center Co. Ltd. 1000000.00 1000000.00 Changan United States R&D Center Co. Ltd. 10243460.00 10243460.00 Changan Japan Designing Center Co.Ltd. 1396370.15 1396370.15 Hefei Changan Automobile Co.Ltd. 1535367765.23 1535367765.23 Changan Automobile Russia Co. Ltd. 251242589.15 251242589.15 Chongqing Changan Lingyao Automobile Co. 594949059.30 594949059.30 Ltd.Changan Automobile Investment (Shenzhen) 237889511.00 237889511.00 Co. Ltd Chongqing Anyi Automobile Technical Service 2000000.00 2000000.00 Co. Ltd. 157Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Guangzhou Changan New Energy Automobile 4000000.00 4000000.00 Co. Ltd.Xiamen Changan New Energy Automobile Co. 2000000.00 2000000.00 Ltd.Chongqing Chehemei Technology Co. Ltd. 10000000.00 10000000.00 Nanjing Changan New Energy Automobile 50000000.00 50000000.00 Sales & Service Co. Ltd.Chongqing Changan Automobile Software 99000000.00 99000000.00 Technology Co. Ltd.Chongqing Changan Kaicheng Automobile 977793971.55 977793971.55 Technology Co. Ltd.Chongqing Xingzhi Technology Co. Ltd Chongqing Changan Technology Co. Ltd 90000000.00 90000000.00 Deepal Automobile Technology Co. Ltd 1655606604.29 1655606604.29 Total 5018748330.83 1655606604.29 6674354935.12 49194195.00 （2） Investment in associates and joint ventures In RMB Yuan Changes during report period Investee Opening Balance Addition Investment income/loss under equity Ending Balance method Others 1. Joint ventures Changan Ford Automobile Co. Ltd. 2934876043.99 522860908.17 3457736952.16 Changan Mazda Automobile Co.Ltd.Changan Mazda Engine Co. Ltd.Nanchang Jiangling Investment Co.Ltd.Subtotal 7267680136.01 862959808.34 (423000000.00) 7707639944.35 2. Associates Chongqing Changan Kuayue Automobile Co. Ltd. 209768936.34 5402511.72 215171448.06 Chongqing Changan Kuayue Vehicle 158Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Marketing Co. Ltd Beijing Fang'an Crescent Taxi Co.Ltd Changan Automobile Financing Co.Ltd. 2778898410.33 172182412.71 2951080823.04 Avatr Technology (Chongqing) Co.Ltd. 1228287241.13 (716583868.90) 511703372.23 Nanjing Chelai Travel Technology Co. Ltd. 624773.31 (92277.85) 532495.46 Coresing Semiconductor Technology Co. Ltd. 25452425.26 71917.19 25524342.45 Nanjing Leading Equity Investment Management Co. Ltd. 1112210.69 (5089.84) 1107120.85 Nanjing Leading Equity Investment Partnership (Limited Partnership) 2570421464.70 (51784.35) 2570369680.35 Zhongqi Chuangzhi Technology Co.Ltd. 168492790.78 (6754636.46) 161738154.32 Chongqing Changxin Zhiqi Private Equity Investment Fund Partnership 170440054.08 242103.89 170682157.97 (Limited Partnership) Anhe Chongqing Dingfeng Automobile Contract Private Equity 61568706.08 4.26 61568710.34 Investment Fund Chongqing Changan Innovation Private Equity Investment Fund Partnership Enterprise (Limited 1000844.59 446.93 1001291.52 Partnership) Deepal Automobile Technology Co.Ltd 369885426.05 (45900263.46) (323985162.59) Chongqing Changxian Intelligent Technology Co. Ltd 102000000.00 66933.68 102066933.68 Jiangling Holding Co. Ltd.Subtotal 7585953283.34 102000000.00 (591421590.48) (323985162.59) 6772546530.27 Total 12366388785.42 102000000.00 (141552078.57) (323985162.59) 12002851544.26 159Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report 4. Operating revenue and cost In RMB Yuan Report period Same period of last year Items Revenue Cost Revenue Cost Main business 51607236773.22 44256352201.98 47015290808.29 39177855123.67 Other business 2769138423.99 1060042185.33 3275009762.83 1737129368.96 Total 54376375197.21 45316394387.31 50290300571.12 40914984492.63 5. Investment income In RMB Yuan Items Current amount Prior-period amount Long-term equity investment losses 544650000.00594000000.00 accounted for by the cost method Long-term equity investment losses (141552078.57)(92372274.55) accounted for by the equity method Investment income from disposal of long-term equity investments 1.00 The investment income of financial asset held for trading during its holding period 1406842.07 2690400.00 Dividend income from remaining investments in 180656814.04144222128.67 other equity instruments Gains from the remeasurement of the remaining equity at fair value after the loss of control 337513868.21 Total 585161578.54 986054122.33 Long-term equity investment income under equity method In RMB Yuan Investee Current amount Prior-period amount Changan Ford Automobile Co. Ltd. 399619898.50 522860908.17 Changan Mazda Automobile Co. Ltd. (100026283.01) 236050510.98 Changan Mazda Engine Co. Ltd. 4107980.55 15784275.65 Nanchang Jiangling Investment Co. Ltd. 146167915.87 88264113.54 Jiangling Holding Co. Ltd. (41202595.77) Chongqing Changan Kuayue Automobile Co. Ltd. 5402511.72 (20594524.55) Changan Automobile Financing Co. Ltd. 172182412.71 152764747.43 Avatr Technology (Chongqing) Co. Ltd. (716583868.90) (82620701.16) Hainan Anxinxing Information Technology Co. Ltd. (368900.00) Nanjing Chelai Travel Technology Co. Ltd. (92277.85) (97213.22) Coresing Semiconductor Technology Co. Ltd. 71917.19 (552714.09) Nanjing Leading Equity Investment Management Co. Ltd. (5089.84) (9266.61) Nanjing Leading Equity Investment Partnership (Limited (51784.35) (42899.72) Partnership) Zhongqi Chuangzhi Technology Co. Ltd. (6754636.46) (9012542.48) Chongqing Changxin Zhiqi Private Equity Investment Fund 242103.89 (5754.39) Partnership (Limited Partnership) Anhe Chongqing Dingfeng Automobile Contract Private 4.26 Equity Investment Fund Chongqing Changan Innovation Private Equity Investment 446.93 160Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report Fund Partnership Enterprise (Limited Partnership) Chongqing Changxian Intelligent Technology Co. Ltd 66933.68 Deepal Automobile Technology Co. Ltd (45900263.46) (953589718.33) Total (141552078.57) (92372274.55) XVIII. Additional information 1. Non-recurring profit and loss statement of current period √ Applicable □ Non-applicable In RMB Yuan Items Amount explanation Profit and loss of non-current assets disposition 366667730.28 Government subsidies counted in current profit and loss (except the 856008089.78 government subsidies which are closely related with business events and given certain amount according to national standards) Interest on late payment of funds charged to non-financial enterprises 17949915.40 In addition to the effective hedging business related to the company's (23334661.15) normal business operations the fair value changes in gains and losses arising from holding trading financial assets Income from business combinations not under common control 5021482128.74 Other non-operating income and expenses other than the above items 79796614.79 Minus:Income tax impact 171307435.24 Minority shareholders' equity impact (after tax) 3341059.80 Total 6143921322.80 -- If the company identifies non-recurring profit and loss defined by Information Disclosure by Companies Offering Securities to the Public No. 1--non-recurring profit and loss and non-recurring profit and loss defined by Information Disclosure by Companies Offering Securities to the Public No. 1--non-recurring profit and loss as recurring profit and loss explain the reasons. 2. Return on equity and earnings per share Weighted average Earnings per share Profit in report period return on equity （%） Basic EPS(yuan/share) Diluted EPS(yuan/share) Net profit belonging to the Company’s common stockholders 11.70% 0.78 0.76 Net profit belonging to the Company’s common stockholders after deducting non-recurring profit 2.31% 0.15 0.15 and loss The group's presentation of return on net assets and earnings per share is in accordance with the preparation rules for information disclosure of companies offering securities to the public No. 9 - Calculation and disclosure of return on net assets and earnings per share (revised in 2010) of the CSRC. 3. Accounting data difference by domestic and foreign accounting standards (1) Net profit and net asset differences from financial statements by international accounting standards and PRC GAAP □ Applicable √ Not applicable (2) Net profit and net asset differences from financial statements by overseas accounting standards and PRC GAAP □ Applicable √ Not applicable 161Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report (3) Description on accounting data differences by domestic and foreign accounting standards. If auditing institutions abroad have adjusted the data differences identify the name of the auditing institution abroad.None 4. Others □ Applicable √ Not applicable 162