Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report August 2022Chongqing Changan Automobile Company Limited 2022 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. Section 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 2022 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 2022 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 ........ 7 Chapter 4 Corporate Governance ..................... 23 Chapter 5 Environment and social responsibility .... 26 Chapter 6 Important Matters ........................ 37 Chapter 7 Changes in the Shareholding of the Compa.. 42 Chapter 8 Preferred Shares ......................... 49 Chapter 9 Bonds .................................... 50 Chapter 10 The Financial Statements ................ 51 2Chongqing Changan Automobile Company Limited 2022 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 China Changan Refers to South Industries Automobile Co. Ltd. a subsidiary company of CSG Chongqing Changan Industry (Group) Co. Ltd. formerly known as Changan Industry Refers to Changan Automobile (Group) Co. Ltd. a subsidiary company of CSG Nanjing Changan Automobile Co. Ltd. a subsidiary company of the Nanjing Changan Refers to Company Hebei Changan Automobile Co. Ltd. a subsidiary company of the Hebei Changan Refers to Company Hefei Changan Automobile Co. Ltd. a subsidiary company of the Hefei Changan Refers to Company Changan Bus Refers to Baoding Changan Bus Co. Ltd. a subsidiary company of the Company Chongqing Changan Automobile International Sale Service Co. Ltd. a CIC Refers to subsidiary company of the Company Changan Ford Refers to Changan Ford Automobile Co. Ltd. a JV of the Company Changan Mazda Refers to Changan Mazda Automobile Co. Ltd. a JV of the Company CME Refers to Changan Mazda Engine Co. Ltd. a JV of the Company Jiangling Holding Refers to Jiangling Holding Co. Ltd. an associate of the Company Changan Finance Refers to Changan Automobile Financing Co. Ltd. an associate of the Company China South Industries Group Finance Co. Ltd. a subsidiary company of CSG Finance Refers to South Industries United Prosperity Investment Co. Ltd. a subsidiary company of China UPI Refers to Changan AVATR Refers to AVATR. Co. Ltd an associate of the Company 3Chongqing Changan Automobile Company Limited 2022 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 Building T2 No. 2 Financial City No. 61 Contact address Dongshengmen Road Jiangbei District Chongqing TEL 023-67594008 FAX 023-67866055 E-mail address cazqc@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 2021. 2. Information disclosure and preparation place Whether information disclosure and preparation place changed in reporting period or not 4Chongqing Changan Automobile Company Limited 2022 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 2021. 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) 56573568393.71 56784631899.07 -0.37% Net profit attributable to shareholders of 5857626135.781729245208.60238.74% the Company (RMB) Net profit after deduction of non-recurring gains or losses attributable to shareholders 3100113819.34 739756972.08 319.07% of the Company(RMB) Net cash flow from operating activities 5852236420.2017698826870.37-66.93% (RMB) Basic earnings per share (RMB/share) 0.60 0.17 252.94% Diluted earnings per share (RMB/share) 0.59 0.17 247.06% Weighted average ROE (%) 10.06% 3.22% 6.84% 30 June 2022 31 December 2021 YoY change (%) Total assets (RMB) 138812360580.91 135404623479.63 2.52% Net assets attributable to shareholders of 60688859608.3455732932103.728.89% 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 2022 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 68244082.28 reversal assets impairment part) Government subsidies included in the profit and loss of the current period (Except closely related to business operations 525001514.96 in accordance with the national unified standard quota or quantitative enjoyment of government subsidies) Capital occupation fees charged to non-financial enterprises 12993036.40 included in the current profit and loss In addition to the effective hedging business related to the The subsidiary AVATR. Co. Ltd.normal business of the company the gains and losses from introduced investors to increase capital.changes in fair value arising from the holding of trading Based on the evaluation results with March financial assets derivative financial assets trading financial 11 2022 as the evaluation base date the 26136888.77 liabilities derivative financial liabilities and disposal of income from the statement was confirmed.transactional financial assets derivative finance Investment For details please refer to the information income from assets trading financial liabilities derivative disclosed on the financial liabilities and other debt investments (http://www.cninfo.com.cn) Gains on fair value remeasurement of remaining equity after 2128305938.85 loss of control Other non-operating income and expenses other than the 49496422.28 above items Subtract: Influenced amount of income tax 37348447.66 Influenced amount of miniority shareholders’ equity (after 15317119.44 tax) Total 2757512316.44 -- 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. 6Chongqing Changan Automobile Company Limited 2022 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 (including passenger vehicles and commercial 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 and low-carbon mobility technology company.With “Leading Auto Culture for Better Life” as our mission we make efforts to develop NEVs and intelligent vehicles while adhering to the philosophy of “low-carbon and environmental protection technology and intelligence”. By leading auto culture through scientific innovation we strive to provide customers with high-quality products and services. We have homegrown brands such as Changan Changan Shenlan AVATR Oshan and Kaicene and joint venture brands such as Changan Ford and Changan Mazda to produce and sell joint venture brand vehicles. We launched many iconic homegrown brands models including the CS series Eado series UNI series Oshan series and Shenqi. Meanwhile Changan Automobile rolls out new energy vehicles such as BenBen E-star Lumin and Shenlan SL03; the joint venture companies have many famous products such as the all-new Focus Escape Explorer Corsair Aviator Zephyr Axela CX-5 and CX-30 that are well received among consumers.Our operation attaches “equal importance to homegrown and joint venture brands”. We make determined efforts in developing iconic homegrown brands with Changan Changan Shenlan AVATR Oshan and Kaicene brands as independent entities. For Changan Ford Changan Mazda and other joint ventures we adopt investment management and control and continue to deepen mutual trust and cooperation with partners. 2. Industry situation In the first half of 2022 in the face of pandemic resurgence industry chain cycle disruption sharp decline in demand and other unfavorable factors the automotive industry struggled to overcome the risks and pull businesses back on track. The NEV market continued to maintain high-speed growth among other markets and Chinese brands embraced this opportunity to expand their market share significantly compared to the last reporting period. Industry specifics are as follows: In the first half of 2022 the automotive industry achieved a cumulative production and sales of 12.117 million units and 12.057 million units down 3.7% and 6.6% YoY respectively. The overall sales is in a “V” shape trend. The YoY growth rate of sales turned from positive to negative and continued to decline since the outbreak in Shanghai and other places in March. After bottoming out in April with the pandemic slowing down and the realization of a series of national and local relief policies in May-June the industry growth rate gradually recovered until it turned positive in June. Passenger car sales in the first half of the year totaled 10.355 million units up 3.4% YoY achieving counter-trend growth.The NEV market is hot with production and sales hitting new record highs. In the first half of 2022 NEV production and sales completed 2.661 million and 2.6 million units respectively both up nearly 120% YoY. And within the Chinese brand passenger cars the share of NEV reached 39.9% an increase of 100% YoY.Chinese brands seized the NEV growth opportunity and significantly increased their market share effectively compensating for the drop in volume caused by the sharp decline in the traditional power market. In the first half of 2022 the market share of Chinese brand passenger car reached 47.3% an increase of 5.8 percentage points YoY.(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. Company market performance In the first half of 2022 under the guidance of Xi Jinping's thought of socialism with Chinese characteristics in the new era 7Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Changan Automobile adhered to the principle of "stability first and progress in the midst of stability". The company solidly promoted the third start-up plan the innovation and entrepreneurship plan and actively responded to the triple pressure of "demand contraction supply shock and weak expectations". The company has been actively focusing on strategy execution supply chain stabilization new energy and intelligent industrial development and firmly promoting transformation and upgrading with high-quality development. In the face of unfavorable factors such as shortage of spare parts and materials and recurring pandemic we maintained production and supply while carried out pandemic prevention efforts firmly we took active countermeasures to prevent and resolve operation risks and did our best to minimize the impact of the above unfavorable factors on production and operation. Under the circumstances of restricted production supplies and local Covid outbreak the company achieved sales of 1.126 million units in the first half of the year 0.3 percentage points better than the industry; among them the company's sales of NEV products reached 90000 units an increase of over 140% YoY with a growth rate 26.3% faster than the NEV industry.During the reporting period Changan Automobile strived to overcome the challenges of "chip and battery shortage" pandemic disturbance and other risks and coordinated the efforts of R&D sales and other sectors to cope with the supply impact. The company implemented precise sales demand and production plans optimized resource allocation for high-value products and did everything possible to meet market demand. By insisting on independent innovation our product lineup "moves upward" with seven new and updated products such as the second generation CS75PLUS UNI-K iDD UNI-V Oshan Z6 and Changan Lumin launched in the first half of the year. The company continues to lift the brand upward accelerating the transformation to intelligent and new energy launching the Blue Core iDD hybrid power system and the first model with UNI-K iDD was well received by users when it was launched; officially launched the new digital electric brand Changan Shenlan and released its first model Shenlan SL03 for pre-sale which accelerated the market share expanding of the mainstream electric vehicle market; by joining hands with Huawei and CATL we created CHN the world's leading platform for electric vehicles and AVATR 11 and its limited edition made their official debut. With innovative ideas we built the "cloud - network - platform - scenes" business model which accelerated the renewal of marketing models.With the electric products launched in the first half of the year the Lumin project piloted the new model of intelligent marketing through the integration of online and offline sales to achieve the ultimate experience with the best cost efficient and agility. We continued to lead scientific and technological innovations by breaking through core technologies of new energy and intelligence and accelerated the mass production of innovative technology. In summary in the first half of the year Changan Automobile actively responded to internal and external challenges and overall the production and operation remained stable. The quality of operation was steadily improved strategic transformation was solidly promoted and positive results were achieved in corporate development.II. Core Competence Analysis In 2022 Changan Automobile will focus on building technological strength adhere to the general idea of "stability focus sharing and innovation" and make every effort to build Changan into a world-class brand with firmer transformation more solid foundation more innovative mode and more extreme efficiency. The following core competitiveness is formed. 1. Product definition capability. The company is customer experience oriented to continuously update the product definition model and further improves the match between products and user needs. We continuously update the product-market equation for fuel and electrified products life cycle and competitive object assumptions are further improved personalized configuration and car software and other attractions are further strengthened; for new automotive products by reviewing the user operation segment and resource matching segment the product is transforming into a whole life cycle user experience. In the first half of the year the company launched seven new and updated products which were well received by the market. In the second half of the year a number of electrified products will be launched to continuously improve the product lineup. 2. R&D capability. The company insists on innovation-oriented development and continues to increase investment in science and technology innovation. The R&D capabilities are continuously improved and core technologies are mastered. In the new energy field the Changan seven-in-one intelligent core and all-in-one electric drive were developed independently and have achieved mass production and small batch trial production respectively. The generalization rate of specialized electrified platform has increased to 8Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 86%. In the field of intelligence we achieved a breakthrough in the technology of intelligent parking system and UNI-V won the “Intelligent Parking Gold Award” in the 2022 WIDC World Intelligent Driving Challenge; pilot intelligent driving assistance function completed real vehicle operation which indicates the intelligent driving technology took a key step towards mass production andapplication; pioneered the development of three international standards for intelligent network linkage; awarded “OutstandingEnterprise of China's Intelligent and Connected Automobile” by the China Intelligent and Connected Vehicle Industry Development Almanac. As of June 2022 we had 7256 domestic and foreign patents including 1953 invention patents. 3. Brand operation capability. The company insists on strengthening brand value management. By further deepening the brand label of “intelligent” and “electrified” and improving the brand’s customer satisfaction the brand image is moving upward. In terms of brand value management the brand promotion projects such as “With You” and “2060 Leading the Future” have been awarded the “2021 Example Branding Cases of State-owned Enterprises” and “IAI Advertising Award” by the State-owned Assets Supervision and Administration Commission of the State Council. In terms of deepening the brand label of “intelligent” and “electrified” the company released the new digital electrified brand - Changan Shenlan to fully demonstrate the achievements of the Mission Shangri-La and consolidated the image of “intelligent and low-carbon mobility technology company”; in terms of customer satisfaction in the first half of 2022 customer satisfaction (SSI/CSI i.e. sales/service satisfaction index) exceeded 99%. In addition the company won the second place in J.D. Power’s 2022 China Auto Sales and Service Satisfaction Ranking and the industry ranking rose for fiveconsecutive years. The brand IP of “high quality service provider" was gradually established. 4. Cultural leadership. The company insists on improving the culture environment the concept of “leading culture” is upgraded and employees' sense of access and happiness are enhanced. The company established the "Changan Automobile employees’ demandsmanagement methods” to promote the satisfiction of employees’ need. The company also carried out a series of activities to tell Changan’s story spread Changan’s voice and inherit Changan’s culture by focusing on the main line of “Vibrant Changan” and the campaign of 160th anniversary of Changan. The atmosphere of “Leading Culture Wolf Changan” has become stronger. 5. Mechanism and efficiency capacity. The company insists on improving the organization mechanism replenishing the talentteam and optimizing the incentive scheme to inject new vitality into the transformation and development. We have established a “smilecurve” management logic formed a matrix and flat management model and built organizational capabilities to support the realization of new automotive products; continued to introduce cutting-edge talents in the fields of intelligence software and modeling externally and promoted the transformation of talents in the fields of intelligent network “three-electric” and new platform internally. The company also promotes the tenure system and contract management to further enhance the vitality of cadres and stimulate the motivation of managing officers; improves the incentive “team leader” mechanism to help tackle important and difficult technical projects; implements the equity incentive plan to further stimulate the vitality and motivation of employees and promote the achievement of strategic tasks; carries out the follow-up mechanism of product projects in depth and the core personnel of the whole value chain of the project are closely bound to the successful implementation of the product; the construction of a comprehensive honor system to stimulate a greater sense of mission achievement and striving with spiritual incentives; the deferred bonus incentive policy has been increased again and the enthusiasm of the staff is greatly strengthened.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. 9Chongqing Changan Automobile Company Limited 2022 Semi-Annual 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 56573568393.71 56784631899.07 -0.37% Operating cost 45360090482.20 48086677229.21 -5.67% Sales expense 2285329821.77 2146115312.19 6.49% General and administrative 2184034305.102217147044.50-1.49% expenses Mainly due to the increase in Financial expenses -437998348.99 -233776490.65 -87.36% interest income.Mainly due to the increase in Income tax expense -103280125.74 59373446.09 -273.95% the recognized deferred tax assets.R&D expenses 1932294144.67 1495583362.16 29.20% Mainly due to the year-on- year increase in the acceptance and payment of Subtotal of cash inflow from 5852236420.20 17698826870.37 -66.93% the current notes payable due operating activities and the year-on-year decrease in the due collection of the notes receivable Subtotal of cash inflow from Mainly due to increased -2383212310.03-665883342.87-257.90% investment activities investment in associates.Mainly due to the receipt of Net cash flow from financing -2013951932.20 -1415888692.05 -42.24% equity incentive payments in activities the last reporting period.Mainly due to the decrease in Net increase in cash and cash "net cash flow from operating 1514350653.1615613435542.38-90.30% equivalents activities" and "net cash flow from investing activities" Mainly because the company lost control over AVATR and Investment income 2354040073.27 327872465.08 617.97% the remaining equity was remeasured at fair value 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. 10Chongqing Changan Automobile Company Limited 2022 Semi-Annual 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 56573568393.71 100% 56784631899.07 100% -0.37% By industry Automotive business 56573568393.71 100% 56784631899.07 100% -0.37% By product Vehicles 53462409290.12 94.50% 54067846898.72 95.22% -1.12% Services and 3111159103.595.50%2716785000.354.78%14.52% others By region China 49995769261.71 88.37% 52728042749.91 92.86% -5.18% Overseas 6577799132.00 11.63% 4056589149.16 7.14% 62.15% 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 56573568393.7145360090482.2019.82%-0.37%-5.67%4.50% business By product Vehicles 53462409290.12 42931781971.38 19.70% -1.12% -6.71% 4.82% By region China 49995769261.71 39071420400.59 21.85% -5.18% -11.44% 5.52% Overseas 6577799132.00 6288670081.61 4.40% 62.15% 58.50% 2.21% 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 11Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report IV. Analysis of Non-Main Business √ Applicable □ Not applicable Amount (RMB) Proportion of profits (%) Explanation Whether it is sustainable or not Except for 2.13 billion yuan Please refer to the Item 51 which is the gain from theNote 7 “Supplementarycompany's loss of controlling Return on investment 2354040073.27 41.04% Information of the Cash interest in Avita and the re-Flow Statement” in the In measurement of the remaining Chapter 10 of this report.equity at fair value.Profits or losses of fair 26136888.77 0.46% No value change Please refer to the Item 54Note 7 “SupplementaryImpairment losses on -241827585.46 -4.22% Information of the Cash No assetsFlow Statement” in the In Chapter 10 of this report.Non-operating income 54366637.51 0.95% No Non-operating expenses 4870215.23 0.08% No V. Analysis of Assets and Liabilities 1. Major Changes in Asset Composition 30 June 2022 31 December 2021 Increase/De crease in Description of Proportion of Proportion of total Amount (RMB) Amount (RMB) Proportion significant changes total assets (%) assets (%) (%) Monetary fund 53421783239.85 38.48% 51976242149.37 38.39% 0.09% Receivables 3597002110.54 2.59% 1675427534.87 1.24% 1.35% Contract assets 1036757897.63 0.75% 1151292247.36 0.85% -0.10% There was no Inventories 7024925792.62 5.06% 6852874420.59 5.06% 0.00% significant change Investment 6536070.82 0.00% 6649426.60 0.00% 0.00% in the composition property of assets during the Long-term equity reporting period 17304612282.7512.47%13245374860.559.78%2.69% investment Fixed assets 20513654898.34 14.78% 21325959850.16 15.75% -0.97% Construction in 1130381106.58 0.81% 1460176539.43 1.08% -0.27% 12Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report progress Right-of-use 50017632.800.04%66313062.980.05%-0.01% assets Short-term loans 46166500.00 0.03% 19000000.00 0.01% 0.02% Contract 4956070974.923.57%9840509514.397.27%-3.70% liabilities Long-term loans 40000000.00 0.03% 600000000.00 0.44% -0.41% Lease liabilities 28202020.25 0.02% 38679735.59 0.03% -0.01% 2. Major overseas assets □ applicable √ not applicable 3. Assets and liabilities measured at fair value √ Applicable □ Not applicable Unit: RMB Accumulated Provision Changes in Fair Fair Value for Amount of Amount of Opening Value Gains and Other Item Changes Impairment Purchase in Sales in Closing Balance Balance Losses in Changes Included in in Current Current Period Current Period Current Period Equity Period Financial assets 1.Financial assets held for trading (excluding 195798300.0026136888.7798999997.8014967612.00305967574.57 derivative financial assets) 2.Investments in other 701409600.00701409600.00 equity instruments Subtotal financial 897207900.0026136888.7798999997.8014967612.001007377174.57 assets Total 897207900.00 26136888.77 98999997.80 14967612.00 1007377174.57 Financial liabilities - - - - -Note: The trading financial assets and investments in other equity instruments in the table above are detailed in “2. Trading FinancialAssets” and “11. Investments in Other Equity Instruments” in Note 7 of the Financial Statements.Whether there are major changes on measurement attributes for main assets of the Company in reporting period □ Yes √ No 13Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 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 2389515751.70 Deposit of acceptance bill Notes receivable 8258455824.79 Pledge for issuing bills payable Intangible assets 17033287.44 Collateral to obtain working capital Fixed assets 32955152.32 Collateral to obtain working capital Total 10697960016.25 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 1860368900.00 - - Fixed assets 52569218.29 3776627.15 1291.96% Construction in progress 787512886.09 604256608.18 30.33% Intangible assets 95564437.69 20872889.71 357.84% Total 2796015442.07 628906125.04 344.58% 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 Gains and Accumula Purchase Book value at Sales amount Gains and Book value Accounting losses from ted fair amount the beginning during the losses of the at the end of Security Stock Abbreviati Initial investment measurement changes in value during the Accountin Source of of the reporting reporting reporting the reporting type code on cost（RMB） model fair value changes reporting g subject funds period period period period during the included period（RMB） （RMB） （RMB） （RMB） period in equity （RMB） 14Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report（RMB） （RMB） Trading Southwest Fair value Self-owned Stock 600369 50000000 177902700.00 -44391600.00 0.00 0.00 0.00 -41701200.00 133511100.00 financial Securities measurement funds assets Trading CPG Fair value Self-owned Stock 301215 98999997.80 - 70400076.77 0.00 0.00 0.00 70400076.77 169400074.57 financial Securities measurement funds assets Total 148999997.80 -- 177902700.00 26008476.77 0.00 0.00 0.00 28698876.77 302911174.57 -- -- -- (2) Derivative Investments □ Applicable √ Not applicable There was no derivative investment in the company's reporting period. 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 598608.41 23139.35 423069.26 160545.86 1 60545.86 26.82% 175539.15 0 account for shares raised funds Total -- 598608.41 23139.35 423069.26 160545.86 1 60545.86 26.82% 175539.15 -- 0 Description of the overall use of raised funds 1. The board of directors of the Company believes that the Company has disclosed the storage and actual use of the Company’s raised funds in atimely true accurate and complete manner in accordance with the “Guidelines for the Standardized Operation of Listed Companies on the ShenzhenStock Exchange” and relevant format guidelines. There are no violations in the management of raised funds. The Company has faithfully fulfilled its obligation to disclose the investment direction and progress of the raised funds. 2. The initial total amount of raised fund was RMB 5988059154.12. The Company used the raised funds of RMB 3252079253.48 RMB 747219811.57 and RMB 231393524.48 respectively in 2020 2021 and first half of 2022. As of December 31 2021 the Company has used a total of RMB 4230692589.53 of the raised funds. (2) Use of the raised funds in committed projects 15Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report √ Applicable □ Not applicable Unit: 10000 RMB Cumulative Investment Whether the Whether the Whether Total Adjusted Whether it Committed projects and Amount investment progress as of project has Benefits feasibility of the project committed total meets the placement of extra funds invested amount as of the end of the reached the realized this the project has has been investment of investment expected raised this year the end of the period% (3) = intended year changed changed raised funds (1) return period (2) (2)/(1) usable state significantly Committed projects H series fifth phase NE1 series first phase engine Not Not Yes 141568.38 103313.68 15908.18 99707.32 97% No No production capacity applicable applicable construction project Crash Laboratory Capacity Not Not Yes 11505.75 8251.85 1450.38 7416.32 90% No No Upgrade Project applicable applicable CD569 production line Not Not Yes 15576.22 9418.59 3841.18 8353.08 89% No No construction project applicable applicable Hefei Changan Automobile Not Not Co. Ltd. adjustment and Yes 249958.06 142399.78 1939.61 127592.54 90% No No applicable applicable upgrade project Supplementary working Not Not No 180000.00 180000.00 - 180000.00 100% No No capital applicable applicable A new generation of energy-saving products Not Not No - 160545.86 - - - No No transformation and applicable applicable upgrading projects Total 598608.41 603929.76 23139.35 423069.26 70% - - - - 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 Change in implementation location of the committed N/A projects Adjustment to implementation method of N/A committed project 16Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 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 actually the project Whether the Significant changes funds to be investment progress as of achieved The commitment of invested reached the expected in the feasibility of Changed project invested in amount as the end of the during the the original project during the intended benefits have the project after the the project of the end period (%) reporting reporting availability been achieved change after the of the (3)=(2)/(1) period period status change (1) period (2) A new 1. H series fifth phas generation of e NE1 series first ph energy-saving ase engine productio In the year of Not Not products n capacity constructi 160545.86 -- -- -- Not applicable 2023 applicable applicable transformation on project and upgrading 2. Crash Laboratory projects Capacity Upgrade C 17Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report onstruction Project 3. CD569 production line construction pr oject 4. Hefei Changan Au tomobile Co. Ltd. a djustment and upgra de project 合计--160545.86-------------- 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 2. Sale of significant equity □ Applicable √ Not applicable VIII. Analysis of Major Shareholding and Joint Stock Companies √ Applicable □ Not applicable 18Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Major subsidiaries and joint stock companies that affect the company’s net profit by more than 10% Unit: 10000 RMB Main Registered Operating Operating Name Type Total assets Net assets Net profit businesses capital income Profit Produce and Changan Ford Joint Stock sell auto and 24100USD 4042348.61 702416.19 2337780.25 121051.29 104520.33 Automobile Co. Ltd. Company parts Chongqing Chang'an Produce and shareholding New Energy Vehicle sell auto and 32810.83 1179251.90 281186.55 414914.54 -147245.48 -147247.26 company Technology Co. Ltd. parts New energy shareholding vehicle and AVATR. Co. Ltd. 117224.26 287037.36 197298.30 0.33 -25199.67 -25227.72 company parts development Subsidiaries acquired and sold in the reporting period √ Applicable □ Not applicable Acquisition and disposal of subsidiaries Impact on overall production Name during the reporting period operation and performance Chongqing Xingzhi Technology Co. Ltd. Newly established company N/A AVATR. Co. Ltd Dilution of equity loss of control have a significant impact Description of major holding and participating companies 1. Changan Ford Automobile Co. Ltd has an increase in profit compared to the last reporting period mainly due to the receipt of income-related subsidies. 2. Chongqing Chang'an New Energy Vehicle Technology Co. Ltd suffered a year-on-year loss due to declining subsidies battery price hikes and increased strategic investment. 3. AVATR. Co. Ltd has changed from the company's holding subsidiary to an associate and is no longer included in the company's consolidated financial statements. The equity method is used for subsequent accounting which has a significant impact on the company.For details please refer to www.cninfo.com.cn (Announcement No.: 2022-29).IX. Structural main business under the company control □ Applicable √ Not applicable X. Possible risks and coresponding measures 1. Supply chain stability risk First the pandemic is still full of variables international investment and trade are still disturbed and the stability of the global supply chain is still under stress. Second regional conflicts reshape the global geopolitical landscape fast. For security reasons some countries and enterprises are trying to relocate supply chain in a counter-globalized way increasing risks global supply chain fluctuations in the automotive industry. Shortage of chip battery and other parts will suppress automotive supply chain for a period of time and the production and supply is still under pressure. 19Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Countermeasures: First ensure normal production by optimizing operation methods; second strengthen the cooperation with the supply chain and reserve critical components at the right time; third continue to promote the replacement program for some key components. 2. Risk of raw material price increase No sign of geopolitical conflicts slowing down in the short term. The commodity and raw materials such as crude oil will price high for a period of time and resulting price increase for the automotive industry especially the battery raw materials and chips are in the prolonged up-price circle. In the medium and long term with the easing of pandemic the commodity supply is expected to gradually improve. However based on geopolitics carbon emission constraints and other factors energy metals and other commodity price is still full of uncertainties which may lead to increased production costs and operating pressure for automotive enterprises.Countermeasures: reduce the impact of raw material price increase by cutting internal costs. At the production end we will continue to optimize the process to cut production costs; at the R&D end we will optimize the cost structure by applying new materials or alternative solutions while improving product quality and competitiveness; at the procurement end we will optimize the supplier system and facilitate suppliers to apply new processes to control costs. 3. Market fluctuation risk Since the beginning of this year the pressure of domestic Covid prevention and control has increased significantly. Residents' spending is suppressed while expectations have turned weaker preventive savings have increased and consumer confidence has declined. Such trends have obivious impacts on the automotive market. In the second half of the year with the easing of the pandemic and the support of national auto consumption policy the auto market will gradually recover but the risk of sporadic Covid distribution has not yet been eliminated which may lead to a limited recovery for auto market and a expanded fluctuation of market sales pace.Countermeasures: First make full use of the national purchase tax exemption and other policy support window to increase promotion investments; second accelerate the process of new marketing deployment increase intelligent marketing efforts strengthen contacts with users and minimize the market impact.XI. Reception Research Communication Interviews and Other Activities during the Reporting Period Type of Date Reception place Research Type Index Research Object For details see the On February 24 2022 Shenzhen stock exchange interactive On February 22 2022 Chongqing Field research Institution (http://irm.cninfo.com.cn) on the Changan Automobile: February 22 2022 investor relations activities record sheet For details see the May 6 2022 Shenzhen stock“Panorama · Road exchange interactive (http://irm.cninfo.com.cn)On April 29 2022 Oneline All investorsShow World” webcast on the Changan Automobile: April 29 2022 investor relations activities record sheet For details see the May 6 2022Shenzhen stock Telephone exchange interactive (http://irm.cninfo.com.cn) On May 5 2022 Telephone conference Institution conference on the Changan Automobile: May 5 2022 investor relations activities record sheet 20Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report For details see the May 9 2022 Shenzhen stock Telephone exchange interactive (http://irm.cninfo.com.cn) On May 6 2022 Telephone conference Institution conference on the Changan Automobile: May 6 2022 investor relations activities record sheet For details see the May 9 2022 Shenzhen stock Telephone exchange interactive (http://irm.cninfo.com.cn) On May 7 2022 Telephone conference Institution conference on the Changan Automobile: On May 7 2022 investor relations activities record sheet For details see the June 3 2022 Shenzhen stock Telephone exchange interactive (http://irm.cninfo.com.cn) On May 9 2022 Telephone conference Institution conference on the Changan Automobile: June 1 2022 investor relations activities record sheet For details see the On May 11 2022 Shenzhen stock exchange interactive Telephone On May 10 2022 Telephone conference Institution (http://irm.cninfo.com.cn) on the Changan conference Automobile: May 10 2022 investor relations activities record sheet For details see the May 13 2022Shenzhen stock Telephone exchange interactive (http://irm.cninfo.com.cn) On May 11 2022 Telephone conference Institution conference on the Changan Automobile: May 11 2022 investor relations activities record sheet For details see the July 9 2022 Shenzhen stock Telephone exchange interactive (http://irm.cninfo.com.cn) On May 12 2022 Telephone conference Institution conference on the Changan Automobile: July 7 2022 investor relations activities record sheet For details see the May 20 2022 Shenzhen stock Telephone exchange interactive (http://irm.cninfo.com.cn) On May 18 2022 Telephone conference Institution conference on the Changan Automobile: May 18 2022 investor relations activities record sheet For details see the May 20 2022 Shenzhen stock Telephone exchange interactive (http://irm.cninfo.com.cn) On May 19 2022 Telephone conference Institution conference on the Changan Automobile: May 19 2022 investor relations activities record sheet For details see the May 24 2022 Shenzhen stock Telephone exchange interactive (http://irm.cninfo.com.cn) On May 23 2022 Telephone conference Institution conference on the Changan Automobile: May 23 2022 investor relations activities record sheet For details see the May 27 2022 Shenzhen stock Telephone exchange interactive (http://irm.cninfo.com.cn) On May 25 2022 Telephone conference Institution conference on the Changan Automobile: May 25 2022 investor relations activities record sheet 21Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report For details see the May 27 2022 Shenzhen stock Telephone exchange interactive (http://irm.cninfo.com.cn) On May 26 2022 Telephone conference Institution conference on the Changan Automobile: May 26 2022 investor relations activities record sheet For details see the June 8 2022 Shenzhen stock Telephone exchange interactive (http://irm.cninfo.com.cn) On June 7 2022 Telephone conference Institution conference on the Changan Automobile: June 7 2022 investor relations activities record sheet For details see the June 10 2022 Shenzhen stock Telephone exchange interactive (http://irm.cninfo.com.cn) On June 10 2022 Telephone conference Institution conference on the Changan Automobile: June 10 2022 investor relations activities record sheet For details see the June 16 2022 Shenzhen stock Telephone exchange interactive (http://irm.cninfo.com.cn) On June 15 2022 Telephone conference Institution conference on the Changan Automobile: June 15 2022 investor relations activities record sheet For details see the June 17 2022 Shenzhen stock Telephone exchange interactive (http://irm.cninfo.com.cn) On June 16 2022 Telephone conference Institution conference on the Changan Automobile: June 16 2022 investor relations activities record sheet For details see the June 22 2022 Shenzhen stock Telephone exchange interactive (http://irm.cninfo.com.cn) On June 20 2022 Telephone conference Institution conference on the Changan Automobile: June 20 2022 investor relations activities record sheet For details see the June 24 2022 Shenzhen stock Telephone exchange interactive (http://irm.cninfo.com.cn) On June 23 2022 Telephone conference Institution conference on the Changan Automobile: June 23 2022 investor relations activities record sheet 22Chongqing Changan Automobile Company Limited 2022 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 http//www.cninfo.com.cn 2022 The First 2022 The First Extraordinary General Meeting Extraordinary EGM 40.917% March 17 2022 March 18 2022 Resolution Announcement (Announcement Number: General Meeting 2022-14) 2021 Annual http//www.cninfo.com.cn Shareholders Annual 50.718% June 15 2022 June 16 2022 2021 Annual Shareholders Meeting Resolution Meeting Announcement (Announcement Number: 2022-44) 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 Xiaoyu Vice President Appointed January 12 2022 Appointment Wang Xiaofei Vice President Appointed January 12 2022 Appointment Executive Vice Appointment Li Mingcai Appointed January 28 2022 President Zhang Deyong Board secretary Appointed January 28 2022 Appointment Ye Wenhua Director Elected March 17 2022 Appointment Li Keqiang Independent Director Elected June 15 2022 Appointment Ding Wei Independent Director Elected June 15 2022 Appointment Tang Guliang Independent Director Elected June 15 2022 Appointment Zhang Ying Independent Director Elected June 15 2022 Appointment Xian Zhigang Director Elected July 26 2022 Appointment 23Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Executive Vice Li Wei Outgoing January 12 2022 Job change President Li Mingcai Vice President Outgoing January 28 2022 Job change Liu Jipeng Independent Director Outgoing June 15 2022 Resign after six years of term Li Qingwen Independent Director Outgoing June 15 2022 Resign after six years of term Chen Quanshi Independent Director Outgoing June 15 2022 Resign after six years of term Tan Xiaosheng Independent Director Outgoing June 15 2022 Resign after six years of term Ye Wenhua Director Outgoing July 8 2022 Job change 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 On July 13 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 1 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 18 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 22 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.On March 3 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 24Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report granted with 76195400 restricted shares. The listing date of restricted shares was March 5 2021.On August 30 2021 the Company held the 25th meeting of the 8th Session of Board of Directors and the 12th meeting of the 8thSession of Board of Supervisors which reviewed and approved the “Proposal on Adjusting the Repurchase Price of A-Share RestrictedStock Incentive Plan” and “Proposal on Repurchase and Cancellation of Certain Restricted Shares Granted to Incentive Objects butstill with Sales Restriction”. The independent directors expressed independent agreement.On September 17 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 19 2021 the Company held the 29th meeting of the 8th Session of Board of Directors and the 15th meeting of the 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 21 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 30 2021 the Company completed the registration of the reserved restricted stock and disclosed the “Announcementon 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 31 2021. 25Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Chapter 5 Environment and social responsibility I. Major Environment Concerns Whether the listed companies and their subsidiaries are the key pollutant discharge units published by the environmental protection department √ Yes □ No Total Number approved Name of the Total Excessiv Main pollutants and specific Discharge of Distribution of Discharge Pollutant discharge discharg company or discharge e pollutants means discharg discharge outlets concentration (mg/L) standards e subsidiary (ton/year) discharge e outlets (ton/year ) COD 44.07 Integrated Wastewater 8.32 347.9 — Ammonia Discharge Standard 1.420.2631.31— nitrogen Two outlets for (GB8978-1996); The Wastewate Total nickel Intermitten workshop facilities 0.2 Influent Water Quality 0.03 0.17 — 3 r Total zinc t discharge and one main outlet 0.12 Requirements set by the 0.03 3.48 — for the Plant Yubei District Sewage Phosphate 0.18 Treatment Plant in 0.04 0.7 — Chongqing 3.36 Emission Standard of Sulfur dioxide 0.56 16.95 — Air Pollutants for Surface Coating of Nitrogen oxides 37.55 18.47 75.4 — Automobile Particulate 4.055.0094.33 Chongqing Manufacturing Industry — matter Changan (DB 50/577-2015); Volatile organic Automobile 1.27 Emission Standards of 1.72 221.21 — compounds Co. Ltd. Yubei Air Pollutants for Plant Exhaust Organized Outlets around the Industrial Kiln and 28 gas discharge Plant Furnace (DB 50/659- 2016); Integrated Emission Toluene + Standards of Air 0.06 0.04 50 — Xylene Pollutants (DB 50/418- 2016); Emission Standards of Air Pollutants for Boiler (DB 50/658-2016) During the reporting period the Yubei Plant of Chongqing Changan Automobile Co. Ltd. was included in the List of Key Pollutant Soil Discharge Units of Chongqing in 2022 with a total of 889.71 tons of hazardous waste generated in this period. 889.71 tons have been — legally disposed of by manufacturers with hazardous waste operation qualifications. 26Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report COD 18.78 Integrated Wastewater 2.53 11.40 — Ammonia Discharge Standard 0.120.03381.14— nitrogen An outlet for (GB8978-1996); The Wastewate Total nickel Intermitten workshop facilities 0.03 Influent Water Quality 0.006 0.06 — 2 r t emissions and one main outlet Requirements set by for the Plant Guoyuangang Sewage Total zinc 0.08 0.0005 0.07 — Treatment Plant in Chongqing Sulfur dioxide 6 Emission standard of Air 0.53 4.82 — Nitrogen oxides 26.06 Pollutants for Surface 2.58 19.3 — Particulate Coating of Automobile Chongqing 9.4 5.63 41.54 — matter Manufacturing Industry Changan Volatile organic (DB 50/577-2015); Automobile 8.84 3.2 58.59 — compounds Emission Standards of Co. Ltd.Air Pollutants for (Liangjiang Industrial Kiln and Plant Campus Exhaust Organized Outlets around the 32 Furnace (DB 50/659- No. 1) gas emissions Plant 2016); Integrated Emission Toluene + 0.16 Standards of Air 0.41 4.18 — xylene Pollutants (DB 50/418- 2016); Emission Standards of Air Pollutants for Boiler (DB 50/658-2016) During the reporting period Liangjiang Plant Campus No. 1 of Changan Automobile was included in the List of Key Pollutant Soil Discharge Units of Chongqing in 2022 with a total of 1162.49 tons of hazardous waste in this period. A total of 1005.76 tons were — legally disposed of by manufacturers with hazardous waste operation qualifications.COD 51 Integrated Wastewater 15.04 46 — Ammonia Discharge Standard 1.8751.174.6— nitrogen An outlet for (GB8978-1996); The Wastewate Total nickel Intermitten workshop facilities 0.043 Influent Water Quality 0.002 0.14 — 2 r t emissions and one main outlet Requirements set by the Chongqing for the Plant Guoyuangang Sewage Changan Total zinc 0.06 0.01 1.38 — Treatment Plant in Automobile Chongqing Co. Ltd.Sulfur dioxide 0 Emission standard of Air 0 4.12 — (Liangjiang Nitrogen oxides 60.8 Pollutants for Surface 13.09 26.6 — Plant Campus Particulate Coating of Automobile No. 2) 7.765 20.43 50.61 — Exhaust matter Organized Outlets around the Manufacturing Industry 47 gas Volatile organic emissions Plant (DB 50/577-2015); 10.194165.88414.1— compounds Emission Standards of Toluene + Air Pollutants for 0.6490.481.54— xylene Industrial Kiln and 27Chongqing Changan Automobile Company Limited 2022 Semi-Annual ReportFurnace（DB 50/659- 2016); Integrated Emission Standards of AirPollutants（DB 50/418- 2016); Emission Standards of Air Pollutants for Boiler （DB 50/658-2016)During the reporting period Liangjiang Plant Campus NO. 2 was included in the List of Key Pollutant Discharge Units of Chongqing in Soil 2022 with a total of 1455.52 tons of hazardous waste. 1455.52 tons were legally disposed of by manufacturers with hazardous waste — operation qualifications.Integrated Wastewater COD 47 9.08 45 — Discharge Standard Total nickel 0.13 0.01 0.1 —An outlet for （GB8978-1996); TheAmmonia Wastewate Intermitten workshop facilities 2.22 Influent Water Quality 0.39 1.6 — nitrogen 2 r t emissions and one main outlet Requirements set by the for the Plant Guoyuangang Sewage Total zinc 0.14 Treatment Plant in 0.01 0.79 — Chongqing Particulate Emission Standard of 10.67.8862.42— matter Air Pollutants for VOCs 18.8 Surface Coating of 5.75 230.72 — Chongqing SO2 0 Automobile 0.28 5 — Changan Toluene + Manufacturing Industry 0.4910.190.85— Automobile xylene (DB 50/577-2015); Co. Ltd. Emission Standards of (Liangjiang Air Pollutants for Plant Campus Exhaust Organized Outlets around the Industrial Kiln and 41 No. 3) gas emissions Plant Furnace (DB 50/659- 2016); Integrated Emission NOx 19 2.46 23.32 — Standards of Air Pollutants (DB 50/418- 2016); Emission Standards of Air 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 Soil 2022 with a total of 1140.87 tons of hazardous waste generated in this period. 1147.73 tons were legally disposed of by manufacturers — with hazardous waste operation qualifications.COD 1 119.9 10.03 22.5 — 28Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Integrated Wastewater Discharge Standard （GB8978-1996); TheAmmonia Wastewate Intermitten Main outlet for the Influent Water Quality nitrogen (NH3- 4.705 0.33 2.25 — r t emissions Plant Requirements set by the N) Guoyuangang Sewage Treatment Plant in Chongqing Chongqing Changan Particulate Emission Standards of 9.27.41—— Automobile matter Air Pollutants for Co. Ltd. SO2 3 Industrial Kiln and 3.44 — — (Jiangbei VOCs 7.5 Furnace (DB 50/659- 0.19 — — Exhaust Organized Outlets around the Engine Plant) 91 2016); gas emissions Plant Integrated Emission NOx 8 Standards of Air 4.62 — — Pollutants (DB 50/418- 2016) During the reporting period Jiangbei Engine Plant Plant NO. 1 was included in the List of Key Pollutant Discharge Units in Chongqing Soil in 2022 and a total of 1550 tons of hazardous waste was generated in this period. 1550 tons were legally disposed of by manufacturers — with hazardous waste operation qualifications.Integrated Wastewater COD 16.4 4.70 11.08 — Discharge Standard (GB8978-1996); The Wastewate Intermitten Main outlet for the Influent Water Quality Ammonia r t emissions Plant Requirements set by nitrogen (NH3- 7.64 0.05 1.11 — Guoyuangang Sewage N) Treatment Plant in Chongqing Chongqing Changan Non- Emission Standards of Automobile methane total 7.155 Air Pollutants for 3.22 — — Co. Ltd.hydrocarbons Industrial Kiln and (Jiangbei Nitrogen oxides 63.5 Furnace (DB 50/659- 1.47 — — Engine Plant Exhaust Organized Outlets around the Particulate 35 2016);Plant No. 2） gas emissions factory 19.45 4.17 — matter Integrated Emission Phenols 3.426 Standards of Air 1.07 — Sulfur dioxide 3 Pollutants (DB 50/418- 0.83 — — Formaldehyde 0.021 2016) 0.01 — — During the reporting period Jiangbei Engine Plant Plant NO. 2 was included in the List of Key Pollutant Discharge units in Chongqing Soil in 2022 and a total of 2865 tons of hazardous waste was generated in this period. 2865 tons were legally disposed of by manufacturers — with hazardous waste operation qualifications.COD 36.19 Integrated Wastewater 2.99 25.76 — Chongqing Wastewate Intermitten An outlet for Ammonia 3 Discharge Standard Lingyao r t emissions workshop facilities 1.79 0.17 3.48 — nitrogen (GB8978-1996); The 29Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Automobile Total nickel and two main outlets 0.04 Inlet Water Quality 0 0.03 — Co. Ltd. Total zinc for the Plant 0.04 Requirements set by 0.003 0.13 — Guoyuangang Sewage Phosphate 0.1 Treatment Plant in 0.01 0.7 — Chongqing Particulate Emission Standard of 10.212.8519.24— matter Air Pollutants for Volatile organic Surface Coating of 2.384.02213.66— compounds Automobile Manufacturing Industry (DB 50/577-2015); Emission Standards of Air Pollutants for Exhaust Organized Outlets around the Industrial Kiln and 36gas emissions Plant Furnace（DB 50/659-Toluene + 2016); 0.070.9751.95— xylene Integrated Emission Standards of Air Pollutants (DB 50/418- 2016); Emission Standards of Air Pollutants for Boiler (DB 50/658-2016) During the reporting period Chongqing Lingyao Automobile Co. Ltd. (Changan Suzuki) was included in the List of Key Pollutant Soil Discharge Units in Chongqing in 2022 and a total of 847.66 tons of hazardous waste was generated in this period. 847.66 tons were — legally disposed of by manufacturers with hazardous waste operation qualifications.COD 78.58 7.25 63.68 — An outlet for Integrated Discharge Ammonia Wastewate Intermitten workshop facilities 6.99 Standard of Water 0.29 3.81 — nitrogen 2 r t emissions and a main outlet for Pollutants (DB11/307- Total nickel 0.038 0.0003 0.01 — the Plant 2013) Phosphate 2.19 0.02 5.71 — Chongqing Nitrogen oxides 37.1 Emission standard of Air 0.12 3.21 — Changan Pollutants for Surface Automobile Coating of Automobile Co. Ltd.Manufacturing Industry Beijing Exhaust Outlets around the Volatile organic Organized 53 (DB11/1227-2015); Changan gas Plant 2.26 4.13 458.76 — compounds emissions Integrated Emission Automobile Standards of Air Company Pollutants (DB11/501- 2017） During the reporting period Chongqing Changan Automobile Co. Ltd. Beijing Changan Automobile Company was included in the List Soil of Key Pollutant Discharge units in Beijing in 2022. A total of 248.81 tons of hazardous waste was generated in this period which was — legally disposed of by manufacturers with hazardous waste operation qualifications. 30Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report COD 35.16 12.47 144.13 — Integrated Wastewater Total nitrogen 6.18 2.25 39.44 — Two outlets for Discharge Standard Wastewate Total nickel Intermitten workshop facilities 0.03 (GB8978-1996); 0.0027 0.09 — 3 r Total t emissions and a main outlet for The Pipe Standards set 0.150.0584.73 phosphorus the Plant by Hefei West Group Ammonia Sewage Treatment Plant 4.980.1514.41— Hefei Changan nitrogen Automobile Emission Control Co. Ltd. Standard for Industrial Organized Outlets around the Enterprises Volatile Exhaust VOCs 88 4.5 3.72 1139.6 — emissions Plant Organic Compounds of gas Tianjin (DB12/524- 2020) During the reporting period Hefei Changan Automobile Co. Ltd. was included in the List of Key Pollutant Discharge Units in Hefei in Soil 2022 and a total of 898 tons of hazardous waste was generated in this period which was legally disposed of by manufacturers with — hazardous waste operation qualifications.COD 37.55 0.90 13.34 — Integrated Wastewater Total nitrogen 2.83 0.06 14.24 — Discharge Standard An outlet forTotal nickel 0.19 （GB8978-1996); 0.002 0.06Wastewate Intermitten workshop facilities Total 2 The Pipe Standards set r t emissions and a main outlet for 0.19 0.004 0.08 — phosphorus by Nanjing Lishui the Plant Ammonia Qinyuan Sewagenitrogen（NH3- 0.94 Treatment Co. Ltd. 0.02 0.26 —N） NOx 9.67 Emission Standard of 0.48 8.79 — Particulate Air Pollutants for Nanjing 0.6 0.52 10.24 — matter Surface Coating of Changan VOCs 4.3 Automobile 3.39 38.48 — Automobile Manufacturing Industry Co. Ltd. (DB32/2862 – 2016); Organized Exhaust 6 Outlets around the Integrated Emission emissions gas Plant Standards of Air SO2 3 Pollutants (GB 16297 - 0.06 53.4 — 1996); Emission Standards of Air 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 Soil Nanjing in 2022 and a total of 223.50 tons of hazardous waste was generated in this period. 258.62 tons were legally disposed of by — manufacturers with hazardous waste operation qualifications. 31Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Ammonia 8.44 Integrated wastewater 0.10 4.8 — nitrogen discharge standard An outlet for COD 156 5.13 63.71 — (GB8978-1996); Wastewate Intermitten workshop facilities 2 The Influent Water Total nitrogen 17.46 0.21 7.32 — r t emissions and a main outlet for Quality Requirements Total the Plant 0.12 Set by Gezhouba Water 0.05 0.92 phosphorus Dingzhou Branch Total nickel 0.05 0.001 0.03 — Sulfur dioxide 7.5 Integrated Emission 0.12 30.01 — Non-methane Standards of Air Chongqing total 1.505 Pollutants GB16297- 4.25 570.34 — Changan hydrocarbons 1996; Kaicene Particulate Emission Standards of 5.33.1753.4— Automobile matter Air Pollutants for Technology Industrial Kiln and Co. Ltd. Organized Outlets around the Furnace DB1640-2012; Exhaust 46 Campus NO.1 emissions plant Emission Control gas Standards for Volatile Organic Compounds by Nitrogen oxides 23.5 4.10 31.47 — Industrial Enterprises DB13/2322-2016; Emission Standards of Air Pollutants for Boiler （DB13/5161-2020)During the reporting period Campus NO.2 of Chongqing Changan Kaicene Automobile Technology Co. Ltd. (formerly known as Hebei Soil Changan) was included in the List of Key Pollutant Discharge Units in Dingzhou In 2022 with a total of 305.34 tons of hazardous waste — generated in this period of which 295.58 tons have been legally disposed of by suppliers with hazardous waste operation qualifications.COD 185 4.23 63.71 — Integrated Wastewater Ammonia 9.56 Discharge Standard 0.18 4.8 — nitrogen A workshop facility (GB8978-1996); Wastewate Intermitten discharge outlet and Total nitrogen 2 11.61 The Influent Water 0.44 7.32 — r t emissions one factory total Quality Requirements Total Chongqing discharge outlet 1.430.140.92 Set by Gezhouba Water phosphorus Changan Dingzhou Branch Kaicene Nickel 0.05 0.0030.03— Automobile Sulfur dioxide 3 Integrated Emission 1.39 88.23 — Technology Nitrogen oxides 24.33 Standards of Air 5.40 33.75 — Co. Ltd. Particulate Pollutants GB16297- 5.779.02850.8— Campus NO.2 matter 1996; Organized Outlets around the Exhaust 82 Emission Standards of emissions plant gas Air Pollutants for Volatile organic 2.87 Industrial Kiln and 50.84 880.62 — compounds Furnace DB1640-2012; Emission Control 32Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Standards for Volatile Organic Compounds by Industrial Enterprises DB13/2322-2016; Emission Standards of Air Pollutants for Boiler (DB13/5161-2020) During the reporting period Campus NO.2 of Chongqing Changan Kaicene Automobile Technology Co. Ltd. (formerly known as Soil Changan Bus) was included in the List of Key Pollutant Discharge Units in Dingzhou in 2022. A total of 481.48 tons of hazardous waste — were generated in this period and 463.98 tons were legally disposed of by suppliers with hazardous waste operation qualifications.Construction and operation of pollution prevention facilities No new pollution prevention facilities were built during the reporting period. The main waste gas management facilities include foundry dust removal and deodorization facilities in engine factories oil mist filtration facilities welding dust removal facilities in vehicle factories and treatment facilities for coating volatile organic waste gas. Together with wastewater treatment facilities they are included in preventive maintenance management of equipment with account books operation instructions preventive maintenance rules preventive maintenance plans and implementation records as well as operating records including equipment spot inspection dosing de-slagging and consumables replacement. The facilities are running normally. The key pollutant discharge units are all equipped with automatic wastewater and waste gas monitoring facilities and entrusted the third-party company to operate and maintain the facilities.Administrative licensing of environmental impact assessment and other environmental protection for construction projects In accordance with the Law of the People’s Republic of China on Evaluation of Environmental Effects the Regulations on the Administration of Construction Project Environmental Protection Chongqing’s Regulation on Environmental Protection and the Interim Measures for the Construction Project Completion of Environmental Protection and Acceptance the environmental impact evaluation and completion acceptance of the newly built renovated and expanded projects strictly implement the environmental impact evaluation system and the “three-simultaneous” system.During the reporting period the company obtained the approval of renovation project of new series of NEV assembly line in Plant 1 of Liangjiang Plant and the technical renovation project of X70A series MPV. The company received environmental acceptance of the CD569 production line project B561 series passenger vehicle technical renovation project and Q612 production line technical renovation project.For details of the changes in emission permits of each manufacturing base during the reporting period please refer to the “NationalEmission Permit Management Information Platform” (Website: http:// permit.mee.gov.cn).Emergency preparedness and exercises of emergency environmental events The company continues to carry out environmental protection emergency exercises and improve the ability to deal with environmental emergencies. During the reporting period Jiangbei Engine Plant Plant No. 2 and Nanjing Changan Automobile Co.Ltd. revised and recorded plans for environmental emergencies as follows.Environm File Government Major Risky Units Emergency Plans ent Risk Number Branches Materials Level 33Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Chongqing Jiangbei Chongqing Changan Automobile Co.Municipal Ecology Emulsion cutting Engine Ltd. Jiangbei Engine Plant (Campus No. 50012820 and Environment fluid gasoline High Plant Plant 1) Emergency Plan for Emergency 22050009 Bureau Liangjiang engine oil etc.No. 2 Accidents New Area Branch Nanjing Nanjing Municipal Sulfuric acid Changan Nanjing Changan Emergency Plan for 32012420 Lishui Ecology and hydrochloric acid Medium Automobile Environment Accidents 22087L Environment lubricating oil Co. Ltd. Bureau gasoline etc.Each base formulated emergency drill plans in accordance with laws and regulations carried out emergency drills according to the plan and continuously improved the practicability of the emergency plan and the emergency response skills of employees. No environmental emergencies occurred during the reporting period.Formulation and implementation of environment self-monitoring plans During the reporting period key discharge units of Changan Automobile formulated and implemented self-monitoring plans.Information disclosure has been made at websites according to the requirements of the local ecological environment authorities. The websites are as follows.Units Platform of Releasing Self-Monitoring Plans Websites Yubei Plant Liangjiang Plant Key pollution source monitoring data release http://119.84.149.34:20003/publish2/dataS Jiangbei Engine Plant Lingyao Auto platform earchPub/entList.aspx Beijing Changan Automobile Beijing Municipal Release Platform of Business http://xxgk.bevoice.com.cn/monitor- Company and Public Institutions Environmental Information pub/index.do Anhui Provincial Release Platform of Discharging Hefei Changan Automobile Co. Ltd. http://39.145.0.253:8081/index Units Self-Monitoring Information Nanjing Changan Automobile Co. Jiangsu Provincial Release Platform of http://218.94.78.61:8080/newPub/web/ho Ltd. Discharging Units Self-Monitoring Information me.htm Kaicene Automobile Technology National Pollution Source Monitoring Information https://wryjc.cnemc.cn/gkpt/mainZxjc/130 Co. Ltd. (formerly known as Hebei Management and Sharing Platform 000 Changan or Baoding Changan Bus) Administrative penalties for environmental problems during the reporting period None.Measures taken to reduce carbon emissions and the results during the reporting period √ Applicable □ Not applicable Our carbon peak and carbon neutrality goals: to peak carbon emissions by 2027 and achieve carbon neutrality by 2045. The company strives to reduce the carbon emission intensity per unit of production by 30% by 2025 and reduce the carbon emission of the supply chain by 30% in 2030 compared to 2020.To fulfill these goals in the first half of 2022 Changan manufacturing units have taken solid steps in energy saving and carbon reduction with carbon emissions per unit down by 12% from the end of the “13th Five-Year Plan”. We actively carried forward energy restructuring. Hefei and Hebei bases have built 42MW photovoltaic power plants. We took the initiative in generating and using green and clean energy. In the first half of the year Changan consumed a total of 19 million kWh of green power with a carbon emission 34Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report reduction of 16000 tons. Chongqing and Nanjing bases have been steadily building photovoltaic plants which will add 57MW installed capacity about 46.64 million kWh green power every year. The equivalent carbon emission reduction will be 41000 tons every year.We will scale up the share of green power to reduce carbon emissions.The company carried out low-carbon technology research in multiple fields. In the field of new energy we mastered 25 core technologies including Cell to Chassis X-in-one e-powertrain central controller development and VEM testing. We aim to build a new energy powertrain system platform with excellent performance quality and cost efficiency and provide users with a worry-free safe and reliable low-carbon mobility experience. In the field of new power we focus on the layout of high-efficiency hybrid power intelligent plug-in hybrid systems and hydrogen engines to offer solutions with multiple powertrain options and build an industry- leading BlueCore powertrain platform to provide users with “efficient low-carbon and intelligent” interaction experience. In the field of new materials we focused on the R&D in integrated aluminum alloy die-casting technology advanced thermoforming technology steel and aluminum hybrid body technology. The company completed research on the performance of key low-carbon materials such as recycled aluminum alloy recycled PP recycled fabrics and bio-based nylon. By 2030 the application of low-carbon materials will be more than 40% which will reduce the carbon emission of vehicle material by 30%.In the future Changan will continue to strengthen technology and system innovation and make breakthroughs in green low- carbon core technologies and accelerate the application. With carbon reduction as the key strategic direction the company will promote the reduction of pollution and carbon emissions in manufacturing products supply chain etc. Also Changan will promote the overall green transformation of economic and social development and improve the ecological and environmental quality from quantitative change to qualitative change.Others (environmental credit evaluation and solid waste disposal) During the reporting period Liangjiang Plant Jiangbei Engine Plant Yubei Plant Lingyao Automobile and other production bases carried out environmental credit evaluation in 2021 according to the requirements of the local authorities of ecological environment.During the reporting period 74003 tons of general industrial solid waste were generated of which 73893 tons were disposed. 12122 tons of hazardous waste were generated of which 11981 tons were disposed. The company has verified the qualifications and technical capabilities of the third party entrusted to dispose of the waste.II. Social Responsibility Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era Changan Auto fully applied the guiding principles of the 19th CPC National Congress and all the plenary sessions of the 19th CPC Central Committee. The company deeply implemented the spirit of the State Council of the Central Committee on Promoting Rural Revitalization in 2022 and firmly implemented the decisions and plans of the government highlighted annual tasks targeted initiatives and practical orientation. Changan effectively advanced dedicated poverty alleviation efforts fulfilled the political and social responsibilities and contributed our part to the comprehensive promotion of rural revitalization. 1. Strengthening organizational leadership (1) The company held two meetings of the leading group for dedicated poverty alleviation to study the annual work plan and review and adjust the company’s leading group for dedicated poverty alleviation. (2) The company held 21 meetings on the theme of dedicated poverty alleviation for rural revitalization to identify key assistance projects study the plan formulate measures and promote the work. 2. Promoting assistance projects (1) Industrial support 35Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report The company implemented the local government’s overall plan for implementing rural revitalization with the new mode of “enterprises joining hands with enterprises to drive industry”. By promoting marketing and sales channels improving the brand and corporate image building business management system we fully boosted the Youyang Camellia Oil assistance project for rural revitalization and strived to create a new form of cross-field charity fulfilling social responsibility as a state-owned enterprise. In the first half of the year we helped to achieve sales of camellia oil of RMB 18716000.For industries with distinctive features in Chongqing the company formulated the assistance plan and encouraged employees to purchase Tan Mei Zi chili products and sold the products through Changan Mall achieving a sales assistance of RMB43500. (2) Skills support To give full play to the advantages of the automobile industry by skill training the company signed a project cooperation agreement and an agreement on the integration of industry and education with Chongqing Youyang Vocational Education Center to promote local employment. We implemented campus recruitment in Youyang Chongqing and recruited a total of 120 students. (3) Support through consumption The pro-consumption projects were launched to promote rural revitalization. In the first half of the year RMB426400 of agricultural products were sold from the areas targeted for assistance. Trade union organizations at all levels gave priority to agricultural and subsidiary agricultural products for targeted assistance when purchasing gifts and rewards for employees. The trade union made full use of various traditional media and new forms of media of increase support through consumption and encouraged employees to purchase and help to sell the products broadened the sales channels and promoted the industrial development of the areas and increased stable income of the people. 3. Review and mobilization campaign The company reviewed the work of rural revitalization and mobilize all units to take the initiative and committed to the work to create a good atmosphere for jointly promoting rural revitalization. The project management team of designated assistance for rural revitalization was awarded the honorary title of “Chongqing Pioneer Worker” by the Chongqing Municipal Federation of Trade Unions. 36Chongqing Changan Automobile Company Limited 2022 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 37Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report V. The board of directors and supervisors explaining the "non standard audit report" from the accounting firm during the reporting period □ Applicable √ Not-applicable VI. The board of directors explaining the "non standard 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 38Chongqing Changan Automobile Company Limited 2022 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 Total Ending balance Related party Relationship Interest rate balance (RMB: Total deposit limit (RMB: withdrawal (RMB: 10000) 10000) amount (RMB: 10000) amount (RMB: 10000) 10000) A company China South controlled by Industries the actual 20000000.35%-2.1%196529814841430151204461686282 Group Finance controller of Co. Ltd. Changan Automobile A company Changan controlled by Automobile the actual 15000002.25%12000003300004800001050000 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: Total amount (RMB: 10000) repayment (RMB: 10000) 10000) of loan (RMB: amount (RMB: 10000) 10000) A company China South controlled by Industries the actual 500001%-4.75%733068079014047 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 950000 313250 39Chongqing Changan Automobile Company Limited 2022 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 Interim announcement of major related-party transactions on the website Interim Interim announcement Wsebsite announcement date Announcement of Expected Related-party Transactions in the Ordinary Course of April 28 2022 2022 Announcement on Related-party Transactions of China South Industries Group May 21 2022 http://www.cninfo.com.cn Finance Co. Ltd. Providing Financial Services for Changan Automobile Announcement on Related-party Transactions of Changan Automobile Finance May 21 2022 Co. Ltd. Providing Financial Services for Changan Automobile XII. Major contracts and their performance 1. Custody contracting and leasing （1）Custody □Applicable √ Not-applicable Custody information There is no custody during the reporting period. （2）Contracting □Applicable √ Not-applicable There is no contracting during the reporting period. （3）Leasing √Applicable □Not-applicable Leasing information Leasing of related parties can be found in Item 5 (2) of Note twelve of Financial Statements “Related Party and Related Transactions”.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. 40Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 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 XIV. Important matters of the Company's subsidiary □ Applicable √ Not applicable 41Chongqing Changan Automobile Company Limited 2022 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 fund Quantity Ratio Other Subtotal Quantity Ratio issued dividend transfer I.Shares with sales 5198188656.81%1559456591559456596757645246.81% restrictions 1. State-owned legal person 3963936455.19%1189180931189180935153117385.19% shares 2. Other domestic shares 122490320 1.61% 36747096 36747096 159237416 1.61% Including: Domestic legal person shares Domestic natural person 1224903201.61%36747096367470961592374161.61% shares 3. Foreign shares 934900 0.01% 280470 280470 1215370 0.01% Including: Foreign legal person shares Foreign natural person 9349000.01%28047028047012153700.01% shares II.Shares without sales 711233453793.19%21337003612133700361924603489893.19% restrictions 1.Ordinary shares 584955393976.64%17548661821754866182760442012176.64% denominated in RMB 2. Domestic listed foreign 126278059816.55%378834179378834179164161477716.55% shares III.Total shares 7632153402 100.00% 2289646020 2289646020 9921799422 100.00% Reasons for share change √ Applicable □ Not applicable The company implemented the 2021 annual equity distribution (see the "Announcement on the Implementation of 2021 Annual Dividend Distribution and Capital Share Increase by Transfer" for more information). The distribution plan went: based on the total capital share of 7632153402 distribute RMB 2.33 for each 10 shares Cash (tax included) to all shareholders and increase by transferring 3 shares for each 10 shares to all shareholders by capital reserve. The total number of capital share was 9921799422 after the transfer.Approval of share change √ Applicable □ Not applicable The matter was reviewed and approved by the 38th meeting of the 8th Session of Board of Directors on April 26 2022 and was 42Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report reviewed and approved by the company's 2021 annual general meeting of shareholders on June 15 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 0.17 yuan per share and at the end of the period is 0.60 yuan per share. The diluted earnings per share at the beginning of the reporting period was RMB 0.17 yuan per share and at the end of the period is 0.59 yuan per share. The net assets per share attributable to ordinary shareholders at the beginning were RMB 7.30 per share and at the end of the period is RMB 6.12 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 shares with sales Number of Increase during restricted shares restriction restricted shares at Reasons for Date of removal of Name of shareholders the reporting at the beginning removed during the end of the restrictions sales restriction period of the period the reporting period period China South Industries Group Co. Non-public issuance 3870280-116108450313642023-10-26 Ltd. of A shares in 2020 China Changan Automobile Group Non-public issuance 130841122-392523361700934582023-10-26 Co. Ltd. of A shares in 2020 Southern Industry Asset Non-public issuance 261682243-785046733401869162023-10-26 Management Co. Ltd. of A shares in 2020 Lock-up stocks for 6 months after the Zhu Huarong 26460 - 7938 34398 executives retirement A-share restricted stock 34860395 - 10458118 45318513 Equity incentive 2023-03-05 A-share restricted stock 34860395 - 10458118 45318513 Equity incentive 2024-03-05 A-share restricted stock 35916770 - 10775032 46691802 Equity incentive 2025-03-05 A-share restricted stock 5861196 - 1758359 7619555 Equity incentive 2023-12-31 A-share restricted stock 5861196 - 1758359 7619555 Equity incentive 2024-12-31 A-share restricted stock 6038808 - 1811642 7850450 Equity incentive 2025-12-31 Total 519818865 - 155945659 675764524 -- -- 43Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 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 6643050 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 17.97%17830901434114823401700934581612996685 Co. Ltd. legal person China South Industries Group Co. State-owned 14.22%141074715528536475650313641405715791 Ltd. legal person Southern Industry Asset State-owned 5.10%50624325749175367340186916166056341 Management Co. Ltd. legal person Domestic China Securities Finance Co. Ltd. general legal 4.30% 426362905 98391439 426362905 person United Prosperity Investment Co. Foreign legal 2.83%28049883264730500280498832 Ltd. person Not Hong Kong Securities Clearing Co. Foreign legal 1.67% 165913975 -74772465 165913975 pledged Ltd. person labeled or China Merchants Securities (HK) State-owned frozen 0.50%50022341-566966150022341 Co. Ltd. legal person China Construction Bank Funds wealth Corporation - Huaxia Energy management 0.49% 49073312 -6799132 49073312 Reform Equity Securities products etc.Investment Fund GUOTAI JUNAN Foreign legal SECURITIES(HONGKONG) 0.46% 45203695 15039257 45203695 person LIMITED China Construction Bank Co. Ltd. - Funds wealth China Guangfa Securities Co. Ltd. management 0.44% 43352836 20339989 43352836 (all index auto) initiated securities products etc. 44Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report investment fund 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 Southern Industry Asset Management Co. Ltd. 166056341 RMB ordinary shares 166056341 Hong Kong Securities Clearing Co. Ltd. 165913975 RMB ordinary shares 165913975 China Merchants Securities (HK) Co. Ltd. 50022341 Domestic listed foreign shares 50022341 China Construction Bank Corporation - Huaxia 49073312 RMB ordinary shares 49073312 Energy Reform Equity Securities Investment Fund Guotai Junan Securities(Hongkong) Limited 45203695 Domestic listed foreign shares 45203695 China Construction Bank Co. Ltd. - China Guangfa Securities Co. Ltd. (all index auto) initiated 43352836 RMB ordinary shares 43352836 securities investment fund 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 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. 45Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 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) Chairman Zhu Secretary of Incumbent 385280 500864 350000 455000 Huarong the Party Committee Xian Director Incumbent Zhigang Zhang Bo Director Incumbent Liu Gang Director Incumbent Zhou Director Incumbent Kaiquan Director President Wang Jun and Deputy Incumbent 280000 364000 280000 364000 Party Secretary Director CFO Zhang Secretary of Incumbent 271600 353080 271600 353080 Deyong the Board of Directors Ren Independent Incumbent Xiaochang Director Wei Independent Incumbent Xinjiang Director Cao Independent Incumbent Xingquan Director Yang Independent Incumbent Xinmin Director Li Independent Incumbent Keqiang Director Independent Ding Wei Incumbent Director Tang Independent Incumbent 46Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Guliang Director Zhang Independent Incumbent Ying Director Chairman of the Lian Jian Incumbent Supervisory Board Sun Supervisor Incumbent Dahong Employee Shi Supervisory Incumbent Shengwei Board Member Employee Supervisory Luo Yan Incumbent Board Member Deputy Yuan Secretary of Incumbent 280000 364000 280000 364000 Mingxue the Party Committee Executive He Vice Incumbent 271600 353080 271600 353080 Chaobing President Secretary of Hua Discipline Incumbent 271600 353080 271600 353080 Zhanbiao Inspection Commission Executive Tan Vice Incumbent 271600 353080 271600 353080 Benhong President Executive Ye Pei Vice Incumbent 271600 353080 271600 353080 President Executive Zhao Fei Vice Incumbent 271600 353080 271600 353080 President Executive Chen Wei Vice Incumbent 271600 353080 271600 353080 President Executive Li Vice Incumbent 271600 353080 271600 353080 Mingcai President 47Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Yang Vice Incumbent 194000 252200 194000 252200 Dayong President Vice Peng Tao Incumbent 191240 248612 191240 248612 President Zhang Vice Incumbent 191240 248612 191240 248612 Xiaoyu President Wang Vice Incumbent 132300 171990 132300 171990 Xiaofei President Secretary of Li Jun Incumbent 191240 248612 191240 248612 the Board Executive Li Wei Vice Outgoing 271600 353080 271600 353080 President Independent Liu Jipeng Outgoing Director Li Independent Outgoing Qingwen Director Chen Independent Outgoing Quanshi Director Tan Independent Outgoing Xiaosheng Director Ye Director Outgoing Wenhua Total 4289700 5576610 4254420 5530746 Note: 1.The above employment status is as of the disclosure date of this report. 2. Number of shares at the end of the reporting period has been adjusted according to the implementation of the Company’s 2021 equity distribution plan. V. The change of the controlling shareholders and theactual 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. 48Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Chapter 8 Preferred Shares □ Available √ Not- available During the reporting period there were no preferred shares in the company. 49Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Chapter 9 Bonds □ Available √ Not- available 50Chongqing Changan Automobile Company Limited 2022 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 2022.6.30 2022.1.1 Current assets: Cash 53421783239.85 51976242149.37 Trading financial assets 305967574.57 195798300.00 Notes receivable 21178905132.66 24267633416.65 Accounts receivable 3597002110.54 1675427534.87 Prepayments 3863981393.89 3241248831.28 Other receivables 509614847.86 632122942.37 Including: dividends receivable 255356145.11 Inventories 7024925792.62 6852874420.59 Contract assets 1036757897.63 1151292247.36 Other current assets 782671443.74 1147798871.42 Total current assets 91721609433.36 91140438713.91 Non-current assets: Long-term equity investments 17304612282.75 13245374860.55 Investment in other equity instruments 701409600.00 701409600.00 Investment properties 6536070.82 6649426.60 Fixed assets 20513654898.34 21325959850.16 Construction in progress 1130381106.58 1460176539.43 Right-of-use asset 50017632.80 66313062.98 Intangible assets 4365838896.35 4385997657.67 Development expenditure 551480202.86 727568248.78 Goodwill 9804394.00 48883188.37 Long-term deferred expenses 21707099.51 15032814.19 Deferred tax assets 2435308963.54 2280819516.99 Total non-current assets 47090751147.55 44264184765.72 TOTAL ASSETS 138812360580.91 135404623479.63 Current liabilities: Short-term loans 46166500.00 19000000.00 Notes payable 26921406502.22 24292268371.12 Accounts payable 23994999761.80 23650604870.98 Contract liability 4956070974.92 9840509514.39 Payroll payable 3326799792.65 2566570928.52 51Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Taxes payable 707493157.04 1121313397.52 Other payables 5116328239.99 4562626344.69 Non-current liabilities within one year 887576604.11 533839583.57 Other current liabilities 5462299176.16 5680959029.22 Total current liabilities 71419140708.89 72267692040.01 Non-current liabilities: Long-term loans 40000000.00 600000000.00 Lease liability 28202020.25 38679735.59 Long-term payables 631003313.51 825473490.08 Long-term payroll payable 36636829.52 39103000.00 Estimated liabilities 4280005759.73 3839015677.84 Deferred Revenue 499479412.93 924749731.12 Deferred tax liabilities 219704466.04 217441992.37 Other non current liabilities 843750617.87 786227868.42 Total non-current liabilities 6578782419.85 7270691495.42 Total liabilities 77997923128.74 79538383535.43 Owners’ equity (or Shareholders’ equity): Share capital 9921799422.00 7632153402.00 Capital reserves 8342424351.08 9776193360.38 Less: treasury shares 655812327.60 655812327.60 Other comprehensive income 69564124.34 69442469.53 Special reserves 49147155.48 27988260.61 Surplus reserves 2982292413.67 2982292413.67 Retained earnings 39979444469.37 35900674525.13 Equity attributable to owners 60688859608.34 55732932103.72 Minority interests 125577843.83 133307840.48 Total Owners’ equity (or Shareholders’ equity) 60814437452.17 55866239944.20 Liabilities and owners' equity (or shareholders' 138812360580.91135404623479.63 equity) in total Legal person: Zhu Huarong Chief financial officer: Zhang Deyong The head of accounting department: Chen Jianfeng 2. Balance sheet In RMB Yuan Account 2022.6.30 2022.1.1 Current assets: Cash 44526884736.20 41917770676.45 Trading financial assets 305967574.57 195798300.00 Notes receivable 19281640756.74 21500746660.99 Accounts receivable 7313681453.36 7931510606.59 Prepayments 3354924945.47 2935068191.78 Other receivables 395603079.15 1756623581.93 Including: dividends receivable 255356145.11 - Inventories 3808502003.65 4137987048.19 Contract assets 549523080.93 635112994.60 Other current assets 140555294.49 21082615.46 Total current assets 79677282924.56 81031700675.99 52Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Non-current assets: Long-term equity investments 19822504132.39 17660819978.70 Investment in other equity instruments 691156200.00 691156200.00 Fixed assets 15162124350.57 16001089813.79 Construction in progress 654797708.06 475209255.90 Right-of-use asset 43061415.97 53789648.12 Intangible assets 3123873620.38 3205472940.52 Development expenditure 567105376.03 422291074.50 Long-term deferred expenses 19041553.35 12065475.24 Deferred tax assets 2033945656.36 1893957371.71 Total non-current assets 42117610013.11 40415851758.48 TOTAL ASSETS 121794892937.67 121447552434.47 Current liabilities: Notes payable 22566103314.88 19118739562.85 Accounts payable 17431485816.58 20181845700.58 Contract liability 3846513444.50 8446500016.04 Payroll payable 2939028593.14 2074732440.77 Taxes payable 551456570.67 784928251.22 Other payables 4564570374.41 4330506737.23 Non-current liabilities within one year 674264461.90 374210756.73 Other current liabilities 4885358872.53 4955516106.11 Total current liabilities 57458781448.61 60266979571.53 Non-current liabilities: Long-term loans 40000000.00 600000000.00 Lease liability 20496001.72 30751928.99 Long-term payables 156022915.60 120409242.99 Long-term payroll payable 19776760.32 21995000.00 Estimated liabilities 3536358417.91 3050701028.41 Deferred Revenue 150000000.00 150000000.00 Deferred tax liabilities 182484595.31 178583323.79 Other non current liabilities 772610007.20 715087257.75 Total non-current liabilities 4877748698.06 4867527781.93 Total liabilities 62336530146.67 65134507353.46 Owners’ equity (or Shareholders’ equity): Share capital 9921799422.00 7632153402.00 Capital reserves 7859296325.61 9293065334.91 Less: treasury shares 655812327.60 655812327.60 Other comprehensive income 166197564.29 166051336.11 Special reserves 16551301.25 7552984.45 Surplus reserves 2982292413.67 2982292413.67 Retained earnings 39168038091.78 36887741937.47 Total Owners’ equity (or Shareholders’ equity) 59458362791.00 56313045081.01 Liabilities and owners' equity (or shareholders' 121794892937.67121447552434.47 equity) in total 53Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 3. Consolidated Income Statement In RMB Yuan Account Current Period Prior Period 1.Operating revenue 56573568393.71 56784631899.07 Less: Operating cost 45360090482.20 48086677229.21 Tax and surcharges 1946300231.77 2087694667.07 Operating expenses 2285329821.77 2146115312.19 General and administrative expenses 2184034305.10 2217147044.50 Research and development expenses 1932294144.67 1495583362.16 Financial expenses (437998348.99) (233776490.65) Interest expense 17892411.14 26372186.29 Interest income 438428075.90 281294223.92 Add: Other income 186910289.65 106783041.12 Investment income 2354040073.27 327872465.08 Including: Investment income from associates and joint 78821605.75250708951.37 venture Gains from changes in fair value 26136888.77 15734698.73 Credit impairment loss (10774686.62) (3486242.35) Asset impairment loss (241827585.46) (195687107.11) Gain on disposal of assets 68244082.28 601066861.33 2.Operating profit 5686246819.08 1837474491.39 Add: Non-operating income 54366637.51 40983845.94 Less: Non-operating expenses 4870215.23 14103602.29 3.Total profit 5735743241.36 1864354735.04 Less: Income tax expense (103280125.74) 59373446.09 4.Net profit 5839023367.10 1804981288.95 Classification by going concern Net profit from continuing operations 5839023367.10 1804981288.95 Net profit from discontinued operations Classification by ownership attribution Net profit attributable to owners 5857626135.78 1729245208.60 Minority interests (18602768.68) 75736080.35 5.Other comprehensive income net of tax 121654.81 21820284.63 Net after-tax net of other comprehensive income 121654.8121820284.63 attributable to the parent company owner Other comprehensive income that will be 121654.8121820284.63 reclassified into profit or loss Other comprehensive income that can be 146228.18 transferred to profit or loss under the equity method Foreign currency financial statement translation (24573.37)21820284.63 difference 6.Total comprehensive income 5839145021.91 1826801573.58 Total comprehensive income attributable to owners 5857747790.59 1751065493.23 Total comprehensive income attributable to minority (18602768.68)75736080.35 interest 54Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 7.Earnings per share Basic earnings per share 0.60 0.17 Diluted earnings per share 0.59 0.17 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 50290300571.12 52828405180.72 Less: Operating cost 40914984492.63 45513544394.59 Tax and surcharges 1434768916.69 1525114802.32 Operating expenses 1475590737.64 1736500574.77 General and administrative expenses 1915207107.81 1878247754.81 Research and development expenses 1851660640.99 1298099887.53 Financial expenses (342363432.16) (204613231.91) Interest expense 13595854.23 21764130.34 Interest income 365385141.66 236842142.30 Add: Other income 54300000.00 Investment income 986054122.33 428119303.94 Including: Investment income from associates and (92372274.55)349815853.13 joint venture Gains from changes in fair value 26136888.77 (17151300.00) Credit impairment loss (286476.97) (2086388.91) Asset impairment loss (128723015.24) (213509747.87) Gain on disposal of assets 42691501.37 4920912.69 2.Operating profit 4020625127.78 1281803778.46 Add: Non-operating income 25372227.33 11549617.96 Less: Non-operating expenses 2696319.99 10500438.13 3.Total profit 4043301035.12 1282852958.29 Less: Income tax expense (136087013.13) (103215762.03) 4.Net profit 4179388048.25 1386068720.32 Net profit from continuing operations 4179388048.25 1386068720.32 Net profit from discontinued operations 5.Other comprehensive income net of tax 146228.18 Other comprehensive income to be reclassified into 146228.18 profit or loss Other comprehensive income that can be 146228.18 transferred to profit or loss under the equity method 6.Total comprehensive income 4179534276.43 1386068720.32 5. Consolidated cash flow statement In RMB Yuan Account Current Period Prior Period 1.Cash flows from operating activities: Cash received from sale of goods or rendering of services 61813960686.95 63916698589.71 Refunds of taxes 896338589.28 479978596.74 55Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Cash received relating to other operating activities 1401417655.54 1798083078.94 Subtotal of cash inflows 64111716931.77 66194760265.39 Cash paid for goods and services 46918151331.30 37506989506.50 Cash paid to and on behalf of employees 3773793442.65 3273064979.18 Cash paid for all types of taxes 4028962242.26 4360350113.07 Cash paid relating to other operating activities 3538573495.36 3355528796.27 Subtotal of cash outflows 58259480511.57 48495933395.02 Net cash flows from operating activities 5852236420.20 17698826870.37 2.Cashflows from investing activities: Cash received from investment recovery 14839200.00 Cash received from investment income 381628412.00 10806875.00 Net cash received from disposal of fixed assets intangible 280603391.8547111653.89 assets and other long-term assets Cash received relating to other investing activities - 300000000.00 Subtotal of cash inflows 677071003.85 357918528.89 Cash paid for acquisition of fixed assets intangible assets and 783516340.121022801871.76 other long-term assets Cash paid for acquisition of investments 1461640640.00 1000000.00 Cash paid relating to other investing activities 815126333.76 Subtotal of cash outflows 3060283313.88 1023801871.76 Net cash flows from investing activities (2383212310.03) (665883342.87) 3.Cash flows from financing activities: Absorb cash received from investment 507461364.00 Cash received from borrowing 68070000.00 20000000.00 Cash received relating to other financing activities 715239432.26 312220372.75 Subtotal of cash inflows 783309432.26 839681736.75 Cash repayments of borrowings 300903500.00 146000000.00 Cash paid for distribution of dividends or profits and interest 1797127172.441690977626.11 expenses Cash paid relating to other financing activities 699230692.02 418592802.69 Subtotal of cash outflows 2797261364.46 2255570428.80 Net cash flows from financing activities (2013951932.20) (1415888692.05) 4.Effect of changes in exchange rate on cash 59278475.19 (3619293.07) 5.Net increase in cash and cash equivalents 1514350653.16 15613435542.38 Add: Opening balance of cash and cash equivalents 49517916834.99 30655968057.63 6.Closing balance of cash and cash equivalents 51032267488.15 46269403600.01 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 51488841934.67 55145607987.10 Cash received relating to other operating activities 46609602.87 - Cash received relating to other operating activities 676108022.43 1092865948.69 Subtotal of cash inflows 52211559559.97 56238473935.79 Cash paid for goods and services 38192576888.27 31953727307.50 Cash paid to and on behalf of employees 2615212696.17 2404181310.34 56Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Cash paid for all types of taxes 2892112750.99 3332896561.58 Cash paid relating to other operating activities 2383343811.11 2779051429.05 Subtotal of cash outflows 46083246146.54 40469856608.47 Net cash flows from operating activities 6128313413.43 15768617327.32 2.Cashflows from investing activities: Cash received from investment recovery 14839200.00 - Cash received from return on investments 381628412.00 12015208.33 Net cash received from disposal of fixed assets intangible 255368088.617594323.89 assets and other long-term assets Other cash received relating to investing activities - 500000000.00 Subtotal of cash inflows 651835700.61 519609532.22 Cash paid for acquisition of fixed assets intangible assets and 633161880.29883493763.31 other long-term assets Cash paid for acquisition of investments 1461640640.00 1000000.00 Subtotal of cash outflows 2094802520.29 884493763.31 Net cash flows from investing activities (1442966819.68) (364884231.09) 3.Cash flows from financing activities: Absorb cash received from investment - 507461364.00 Cash received from borrowings 40000000.00 - Subtotal of cash inflows 40000000.00 507461364.00 Cash paid for debt repayment 300000000.00 100000000.00 Cash paid for distribution of dividends or profits and interest 1795680672.361689755862.22 expenses Cash paid relating to other financing activities 12551861.64 31241289.74 Subtotal of cash outflows 2108232534.00 1820997151.96 Net cash flows from financing activities (2068232534.00) (1313535787.96) 4.Effect of changes in exchange rate on cash 5.Net increase in cash and cash equivalents 2617114059.75 14090197308.27 Add: Opening balance of cash and cash equivalents 41889838553.29 25190870784.06 6.Closing balance of cash and cash equivalents 44506952613.04 39281068092.33 57Chongqing Changan Automobile Company Limited 2022 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 Less: Treasury Special Surplus Retained Total equity Share capital Capital reserves comprehensiv interest shares reserve reserve earnings e income I. At end of last year 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 121654.815857626135.78(18602768.68)5839145021.91 income 2. Capital contributed by owners and capital 855877010.70 855877010.70 decreases (1) The amount of share- based payment included in 192310900.00 192310900.00 owner's 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 2289646020.00(2289646020.00) owner's equity Capital reserve converted into capital (or 2289646020.00 (2289646020.00) share capital) 5. Special reserves 21158894.87 21158894.87 (1) Pick-up in current 46183489.8346183489.83 period (2) Used in current (25024594.96)(25024594.96) period 6.Others 10872772.03 10872772.03 58Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report IV. At end of current period 9921799422.00 8342424351.08 655812327.60 69564124.34 49147155.48 2982292413.67 39979444469.37 125577843.83 60814437452.17 Prior period In RMB Yuan Prior period Equity attributable to owners Items Less: Other Minority Special Total equity Share capital Capital reserves Treasury comprehensiv Surplus reserve Retained earnings interest reserve shares e income I. At end of last year 5363396174.00 10930781918.64 78420720.78 40847443.41 2681698087.00 34315048892.26 70114229.66 53480307465.75 II. At beginning of year 5363396174.00 10930781918.64 78420720.78 40847443.41 2681698087.00 34315048892.26 70114229.66 53480307465.75 III. Changes during the 76195400.00538440967.7821820284.6336025649.0563001848.0675736080.35811220229.87 year 1.Total comprehensive 21820284.631729245208.6075736080.351826801573.58 income 2. Capital contributed by owners and capital 76195400.00 538440967.78 614636367.78 decreases The amount of share-based payment 76195400.00538440967.78614636367.78 included in owner's equity 3. Distribution of profit (1666243360.54) (1666243360.54) Distribution to (1666243360.54)(1666243360.54) owners 4. Special reserves 36025649.05 36025649.05 (1) Pick-up in 61973559.9961973559.99 current period (2) Used in current (25947910.94)(25947910.94) period IV. At end of current 5439591574.0011469222886.42100241005.4176873092.462681698087.0034378050740.32145850310.0154291527695.62 period 59Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 8. Statement of changes in shareholders’ equity Current Period In RMB Yuan Current period Items Other Less: Treasury Share capital Capital reserves comprehensive Special reserve Surplus reserve Retained earnings Total equity shares income I. At end of last year 7632153402.00 9293065334.91 655812327.60 166051336.11 7552984.45 2982292413.67 36887741937.47 56313045081.01 II. At beginning of year 7632153402.00 9293065334.91 655812327.60 166051336.11 7552984.45 2982292413.67 36887741937.47 56313045081.01 III. Changes during the 2289646020.00(1433769009.30)146228.188998316.802280296154.313145317709.99 year 1.Total comprehensive 146228.184179388048.254179534276.43 income 2. Capital contributed by owners and capital 855877010.70 855877010.70 decreases (1) The amount of share-based payment 192310900.00 192310900.00 included in owner's 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 2289646020.00(2289646020.00) owner's equity Capital reserve converted into capital (or 2289646020.00 (2289646020.00) share capital) 5. Special reserves 8998316.80 8998316.80 (1) Pick-up in current 30492980.1030492980.10 period (2) Used in current (21494663.30)(21494663.30) period 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 60Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Prior period In RMB Yuan Prior period Items Less: Other Share capital Capital reserves Treasury comprehensive Special reserve Surplus reserve Retained earnings Total equity shares income I. At end of last year 5363396174.00 10440896902.52 159954052.00 7505438.57 2681698087.00 35848636357.95 54502087012.04 II. At beginning of year 5363396174.00 10440896902.52 159954052.00 7505438.57 2681698087.00 35848636357.95 54502087012.04 III. Changes during the 76195400.00538440967.788974402.20(280174640.22)343436129.76 year 1.Total comprehensive 1386068720.321386068720.32 income 2. Capital contributed by owners and capital 76195400.00 538440967.78 614636367.78 decreases The amount of share-based payment 76195400.00538440967.78614636367.78 included in owner's equity 3. Distribution of profit (1666243360.54) (1666243360.54) Distribution to (1666243360.54)(1666243360.54) owners 4. Special reserves 8974402.20 8974402.20 (1) Pick-up in 26035435.8026035435.80 current period (2) Used in current (17061033.60)(17061033.60) period IV. At end of current 5439591574.0010979337870.30159954052.0016479840.772681698087.0035568461717.7354845523141.80 period 61Chongqing Changan Automobile Company Limited 2022 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 2022 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 40.17%.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 PREPERATION The financial statements have been prepared in accordance with Accounting Standards for Business Enterprises-Basic Standard and the specific standards issued and modified subsequently and the implementation guidance interpretations and other relevant provisions issued subsequently by the MOF (correctly referred to as “Accounting Standards for Business Enterprises”).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 2022 and the financial results and the cash flows in the half year of 2022 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. 4. Business combination 62Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 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 A business combination involving entities under common control is a business combination in which all of the combining entities are ultimately controlled by the same party or parties both before and after the combination and that control is not transitory. For a business combination involving entities under common control the party which on the combination date obtains control of another entity participating in the combination is the acquiring party while that other entity participating in the combination is a party being acquired.Combination date is the date on which the acquiring party effectively obtains control of the party being acquired.Assets and liabilities that are obtained by the acquiring party in a business combination involving entities under common control shall be measured at their carrying amounts at the combination date as recorded by the party being acquired. The difference between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination (or the aggregate face value of shares issued as consideration) shall be adjusted to capital reserve. If the capital reserve is not sufficient to absorb the difference any excess shall be adjusted against retained earnings.Business combination involving entities not under common control A business combination involving entities not under common control is a business combination in which all of the combining entities are not ultimately controlled by the same party or parties both before and after the combination. For a business combination involving entities not under common control the party that on the acquisition date obtains control of another entity participating in the combination is the acquirer while that other entity participating in the combination is the acquiree. Acquisition date is the date on which the acquirer effectively obtains control of the acquiree.The acquirer shall measure the acquiree’s identifiable assets liabilities and contingent liabilities acquired in the business combination at their fair values on the acquisition date.Goodwill is initially recognized and measured at cost being the excess of the aggregate of the fair value of the consideration transferred (or the fair value of the equity securities issued) and any fair value of the Group’s previously held equity interest in the acquiree over the Group’s interest in the fair value of the acquiree’s net identifiable assets. After initial recognition goodwill is measured at cost less any accumulated impairment losses. Where the aggregate of the fair value of the consideration transferred (or the fair value of the equity securities issued) and any fair value of the Group’s previously held equity interest in the acquiree is lower than the Group’s interest in the fair value of the acquiree’s net identifiable assets the Group reassesses the measurement of the fair value of the acquiree’s identifiable assets liabilities and contingent liabilities and the fair value of the consideration transferred (or the fair value of the equity securities issued) together with the fair value of the Group’s previously held equity interest in the acquiree. If after that reassessment the aggregate of the fair value of the consideration transferred (or the fair value of the equity securities issued) and the Group’s previously held equity interest in the acquiree is still lower than the Group’s interest in the fair value of the acquiree’s net identifiable assets 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. 63Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 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. 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: 64Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 1) the rights to receive cash flows from the financial asset have expired; 2) the Group has transferred its rights to receive cash flows from the financial asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) has transferred substantially all the risks and rewards of the financial asset or (b) has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the financial asset.A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified such an exchange or modification is treated as a derecognition of the original liability and a recognition of a new liability and the difference between the respective carrying amounts is recognized in profit or loss.Regular way purchases and sales of financial assets are recognized and derecognized using trade date accounting. Regular way purchases or sales are purchases or sales of financial assets that require delivery within the period generally established by regulation or convention in the marketplace. The trade date is the date that the Group committed to purchase or sell a financial asset.Classification 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 at fair value through profit or loss financial assets at amortized cost and financial assets at fair value through other comprehensive income. All affected related financial assets will be reclassified only if the Group changes its business model for managing financial assets.Financial assets are measured at fair value on initial recognition but accounts receivable or notes receivable arising from the sale of goods or rendering of services that do not contain significant financing components or for which the Group has applied the practical expedient of not adjusting the effect of a significant financing component due within one year are initially measured at the transaction price.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. 65Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Financial liabilities are classified at initial recognition as financial liabilities at fair value through profit or loss other financial liabilities. For financial liabilities at fair value through profit or loss relevant transaction costs are directly recognized in profit or loss and transaction costs relating to other financial assets are included in the initial recognition amounts.The subsequent measurement of financial liabilities depends on their classification as follows: Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities held for trading are subsequently measured at fair value with net changes in fair value recognized in profit or loss. Gains or losses on liabilities designated at fair value through profit or loss are recognized in profit or loss except for the gains or losses arising from the Group’s own credit risk which are presented in other comprehensive income with no subsequent reclassification to profit or loss.Other financial liabilities Other financial liabilities are subsequently measured at amortized cost using the effective interest method.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 the definition of credit impairment assets that have occurred and assumptions about the expected credit loss measurement.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 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 66Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 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. If factors that resulted in the provision for the inventory have disappeared and made the net realizable value higher than their book value the amount of the write-down should be reversed to the extent of the amount of the provision for the inventory and the reversed amount should be recognized in the income statement for the current period.Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The impairment provision should be made on a basis of each item of inventories according to the difference between cost and net realizable value. For large numbers of inventories at relatively low unit prices the provision for loss on decline in value of inventories should be made by category. 11. Long-term equity investments Long-term equity investments include investments in subsidiaries joint ventures and associates.Long-term equity investments are recognized at initial investment cost upon acquisition. For a long-term equity investment acquired through a business combination under common control the initial investment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount of the owners’ equity of the party being absorbed in the consolidated financial statements of the ultimate controlling party at combination date. The difference between the initial investment cost and the carrying amount of cash paid non-cash assets transferred and liabilities assumed shall be adjusted to capital reserve. If the balance of capital reserve is not sufficient any excess shall be adjusted to retained earnings. Any other comprehensive income previously recognized shall be accounted for on the same basis as would have been required if the investee had directly disposed of the related assets or liabilities. The portion recognized based on changes in the investee’s equity (other than net profit or loss other comprehensive income and profit appropriation) is charged to profit or loss upon disposal of such long-term equity investment. For those partially disposed equity investments gains or losses upon disposal are proportionately recognized in profit or loss when they still constitute long-term equity investments after the disposal and are fully charged to profit or loss when they are reclassified to financial instruments after the disposal. For business combination involving entities not under common control the initial investment cost should be the cost of acquisition (for step acquisitions not under common control the initial investment cost is the sum of the carrying amount of the equity investment in the acquiree held before the acquisition date and the additional investment cost paid on the acquisition date) which is the sum of the fair value of assets transferred liabilities incurred or assumed and equity instruments issued. If the equity investments in the acquiree involve other comprehensive income prior to the acquisition date when disposing of the investments the relevant other comprehensive income will be accounted for on the same basis as would have been required if the investee had directly disposed of the related assets or liabilities. The portion recognized based on changes in the investee’s equity (other than net profit or loss other comprehensive income and profit appropriation) is charged to profit or loss upon disposal of such long-term equity investment. The initial investment cost of a long-term equity investment acquired otherwise than through a business combination shall be determined as follows: for a long-term equity investment acquired by paying cash the initial investment cost shall be the actual purchase price has been paid plus those costs taxes and other necessary expenditures directly attributable to the acquisition of the long-term equity investment; for those acquired by the issue of equity securities the initial investment cost shall be the fair value of the equity securities issued.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. 67Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 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 transferred to current profit or loss in measurement on the same basis as the invested entity had directly disposed of the assets or liabilities related thereto. The income or loss recorded in the equity directly should been transferred to the current income statement on settlement of the equity investment on the disposal proportion. 12. Investment property Investment property are properties held to earn rentals or for capital appreciation or both including rented land use right land use right which is held and prepared for transfer after appreciation and rented building.The initial measurement of the investment property shall be measured at its actual cost. The follow-up expenses pertinent to an investment property shall be included in the cost of the investment property if the economic benefits pertinent to this real estate are likely to flow into the enterprise and the cost of the investment property can be reliably measured. Otherwise they should be included in the current profits and losses upon occurrence.The Group adopts the cost method to make follow-up measurement to the investment property. The buildings are depreciated under straight-line method. 13. Fixed assets A fixed asset probably shall be recognized only when the economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured reliably. Subsequent expenditure incurred for a fixed asset that meet the recognition criteria shall be included in the cost of the fixed asset and the book value of the component of the fixed asset that is replaced shall be derecognized.Otherwise such expenditure shall be recognized in the income statement in the period during which they are incurred.Fixed assets are initially measured at actual cost on acquisition. The cost of a purchased fixed asset comprises the purchase price relevant taxes and any directly attributable expenditure for bringing the asset to working condition for its intended use such as delivery and handling costs installation costs and other surcharges.Fixed assets are depreciated on straight-line basis. The estimated useful lives estimated residual values and annual depreciation rates 68Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report for each category of fixed assets are as follows: Category Deprecation period Residual rate (%) Yearly deprecation rate (%) Buildings 20 to 35 years 3% 2.77%-4.85% Machinery (Note) 5 to 20 years 3% 4.85%-19.40% Vehicles 4 to 10 years 3% 9.70%-24.25% Others 3 to 21 years 3% 4.62%-32.33% Note: the molds in machinery should be depreciated in units-of-production method.The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at least at the end of each year and makes adjustments if necessary. 14. Construction in progress The cost of construction in progress is determined according to the actual expenditure for the construction including all necessary construction expenditure incurred during the construction period borrowing costs that should be capitalized before the construction reaches the condition for intended use and other relevant expenses.Construction in progress is transferred to fixed assets when the asset is ready for its intended use. 15. Borrowing costs Borrowing costs are interest and other costs incurred by the Group in connection with the borrowing of the funds. Borrowing costs include interest amortization of discounts or premiums related to borrowings ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings.The borrowing costs that are directly attributable to the acquisition construction or production of a qualifying asset are capitalized otherwise the borrowing costs are expensed in the period during which they are incurred. A qualifying asset is an asset (an item of property plant and equipment and inventory etc.) that necessarily takes a substantial period of time to get ready for its intended use of sale.The capitalization of borrowing costs is as part of the cost of a qualifying asset shall commence when: 1) expenditure for the asset is being incurred; 2) borrowing costs are being incurred; and 3) activities that are necessary to prepare the asset for its intended use or sale are in progress. Capitalization of borrowing costs shall be ceased when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale have been done. And subsequent borrowing costs are recognized in the income statement.During the capitalization period the amount of interest to be capitalized for each accounting period shall be determined as follows: 1) where funds are borrowed for a specific-purpose the amount of interest to be capitalized is the actual interest expense incurred on that borrowing for the period less any bank interest earned form depositing the borrowed funds before being used on the asset or any investment income on the temporary investment of those funds; 2) where funds are borrowed for a general-purpose the amount of interest to be capitalized on such borrowings is determined by applying a weighted average interest rate to the weighted average of the excess amounts of cumulative expenditure on the asset over and above the amounts of specific-purpose borrowings.During the construction or manufacture of assets that are qualified for capitalization if abnormal discontinuance other than procedures necessary for their reaching the expected useful conditions happens and the duration of the discontinuance is over three months the capitalization of the borrowing costs is suspended. Borrowing costs incurred during the discontinuance are recognized as expense and charged to the income statement of the current period till the construction or manufacture of the assets resumes. 16. Right-of-use assets The Group's right-of-use assets are mainly buildings.At the commencement date of the lease period the Group recognizes its right to use the leased assets during the lease period as a right- of-use asset including: the initial measured amount of the lease liability; the amount of lease payments paid on or before the start date of the lease period in addition the relevant amount of lease incentive should be deducted; Initial direct expenses incurred by the lessee; the estimated cost incurred by the lessee for dismantling and removing the leased assets restoring the site where the leased assets are located or restoring the leased assets to the state agreed in the lease terms. the Group adopts the average age method to depreciate the 69Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report assets of the right of use. If it can be reasonably determined that the ownership of the leased asset is obtained at the expiration of the lease term the Group adopts depreciation within the remaining service life of the leased asset. If it is impossible to reasonably determine that the ownership of the leased asset can be obtained at the expiration of the lease term the Group adopts depreciation within the shorter of the lease term and the remaining service life of the leased asset.When the Group remeasures the lease liability according to the present value of the changed lease payment and adjusts the book value of the right of use asset if the carrying amount of the right-of-use assets has been reduced to zero but the lease liabilities still need to be further reduced the Group will include the remaining amount in the profit or loss of the current period. 17. Intangible assets An intangible asset probably shall be recognized only when the economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured reliably. Intangible assets are initially measured at cost. The cost of intangible assets acquired in a business combination is the fair value as at the date of acquisition if the fair value can be reliably measured.The useful life of the intangible assets shall be assessed according to the estimated beneficial period expected to generate economic benefits. An intangible asset shall be regarded as having an indefinite useful life when there is no foreseeable limit to the period over which the asset is expected to generate economic benefits for the Group.The useful lives of the intangible assets are as follow: Useful life Land use right 43 to 50 years Software 2 years Trademark 10 years Non-patent technology 5 years Patent technology 10 years Land use rights that are purchased or acquired through the payment of land use fees are accounted for as intangible assets. With respect to self-developed properties the corresponding land use right and buildings should be recorded as intangible and fixed assets separately.As to the purchased properties if the reasonable allocation of outlays cannot be made between land and buildings all assets purchased will be recorded as fixed assets. The cost of a finite useful life intangible asset is amortized using the straight-line method during the estimated useful life. For an intangible asset with a finite useful life the Group reviews the estimated useful life and amortization method at least at the end of each year and adjusts if necessary.The Group should test an intangible asset with an indefinite useful life for impairment by comparing its recoverable amount with its carrying amount annually whenever there is an indication that the intangible asset may be impaired. An intangible asset with an indefinite useful life shall not be amortized.The useful life of an intangible asset that is not being amortised shall be reviewed each period to determine whether events and circumstances continue to support an indefinite useful life assessment for that asset. If there are indicators that the intangible asset has finite useful life the accounting treatment would be in accordance with the intangible asset with finite useful life. 18. Research and development expenditures The Group classified the internal research and development expenditures as follows: research expenditures and development cost.The expenditures in research stage are charged to the current income on occurrence.The expenditures in development stage are capitalized that should meet all the conditions of (a) it is technically feasible to finish intangible assets for use or sale; (b) it is intended to finish and use or sell the intangible assets; (c) the usefulness of methods for intangible assets to generate economic benefits shall be proved including being able to prove that there is a potential market for the products manufactured by applying the intangible assets or there is a potential market for the intangible assets itself or the intangible assets will be used internally; (d) it is able to finish the development of the intangible assets and able to use or sell the intangible assets with the support of sufficient technologies financial resources and other resources; and (e) the development expenditures of the intangible assets can be reliably measured. Expenses incurred that don’t meet the above requirements unanimously should be expensed in the income statement of the reporting period.The Group discriminates between research and development stage with the condition that the project research has been determined in which the relevant research complete all the fractionalization of products measurements and final product scheme under final approval 70Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report of management. The expenditures incurred before project-determination stage is charged to the current income otherwise it is recorded as development cost. 19. Impairment of assets The Group determines the impairment of assets other than the impairment of inventory contract assets deferred income taxes and financial assets using the following methods: The Group assesses at the balance sheet date whether there is any indication that an asset may be impaired. If any indication exists that an asset may be impaired the Group estimates the recoverable amount of the asset and performs impairment tests. Goodwill arising from a business combination and an intangible asset with an indefinite useful life are tested for impairment at least at the end of every year irrespective of whether there is any indication that the asset may be impaired. An intangible asset which is not ready for its intended use is tested for impairment at least at the end of every year.The recoverable amount of an asset is the higher of its fair value less costs to sell and the present value of the future cash flow expected to be derived from the asset. The Group estimates the recoverable amount on an individual basis. If it is not possible to estimate the recoverable amount of the individual asset the Group determines the recoverable amount of the asset group to which the asset belongs.Identification of an asset group is based on whether major cash flows generated by the asset group are independent of the cash flows from other assets or asset groups.When the recoverable amount of an asset or asset group is less than its carrying amount the carrying amount is reduced to the recoverable amount. The impairment of asset is provided for and the impairment loss is recognized in the income statement for the current period.For the purpose of impairment testing the carrying amount of goodwill acquired in a business combination is allocated on a reasonable basis to related asset groups; if it is impossible to allocate to the related asset groups it is allocated to each of the related sets of asset groups. Each of the related asset groups or related sets of asset groups is a group or set of asset group that is able to benefit from the synergies of the business combination and shall not be larger than a reportable segment determined by the Group.When an impairment test is conducted on an asset group or a set of asset groups that contains goodwill if there is any indication of impairment the Group firstly tests the asset group or the set of asset groups excluding the amount of goodwill allocated for impairment i.e. it determines and compares the recoverable amount with the related carrying amount and then recognize impairment loss if any.Thereafter the Group tests the asset group or set of asset groups including goodwill for impairment the carrying amount (including the portion of the carrying amount of goodwill allocated) of the related asset group or set of asset groups is compared to its recoverable amount. If the carrying amount of the asset group or set of asset groups is higher than its recoverable amount the amount of the impairment loss is firstly eliminated by and amortized to the book value of the goodwill included in the asset group or set of asset groups and then eliminated by the book value of other assets according to the proportion of the book values of assets other than the goodwill in the asset group or set of asset groups.Once the above impairment loss is recognized it cannot be reversed in subsequent periods. 20. Long-term deferred expenses The long-term deferred expenses represent the payment for the improvement on buildings and other expenses which have been paid and should be deferred in the following years. Long-term deferred expenses are amortized on the straight-line basis over the expected beneficial period and are presented at actual expenditure net of accumulated amortization. 21. Employee benefits Employee benefits refer to all kinds of remunerations or compensation made by enterprises to their employees in exchange for services provided by the employees or termination of labor relation. Employee compensation includes short-term compensation and post- employment benefits. The benefits offered by enterprises to the spouse children the dependents of the employee the family member of deceased employee and other beneficiaries are also employee compensation.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) 71Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 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. 22. Lease liabilities At the commencement date of the lease period the Group recognizes the present value of the outstanding lease payments as a lease liability excluding short-term leases and leases of low-value assets. When calculating the present value of the lease payment the Group uses the lease implied rate as the discount rate and if the lease implied interest rate cannot be determined the lessee incremental borrowing rate is used as the discount rate. The Group calculates the interest expense of the lease liability in each period of the lease term according to the fixed periodic interest rate and records it into the current profit and loss unless otherwise specified it is included into the cost of relevant assets. Variable lease payments that are not included in the measurement of lease liabilities are included in the profit or loss of the current period when actually incurred unless otherwise specified to be included in the cost of the underlying assets.After the commencement date of the lease period the Group remeasures the lease liability against the present value of the changed lease payment amount when there is a change in the amount of substantial fixed payments a change in the amount expected to pay due to the residual value of the guarantee a change in the index or ratio used to determine the amount of the lease payment the assessment of the purchase option the renewal option or the option to terminate the lease. 23. Provisions An obligation related to a contingency shall be recognized by the Group as a provision when all of the following conditions are satisfied except for contingent considerations and contingent liabilities assumed in a business combination not involving entities under common control: 1) the obligation is a present obligation of the Group; 2) it is probable that an outflow of economic benefits from the Group will be required to settle the obligation; 3) a reliable estimate can be made of the amount of the obligation. Contingent liabilities are initially measured according to the current best estimate for the expenditure necessary for the performance of relevant present obligations with comprehensive consideration given to factors such as the risks uncertainty and time value of money relating to contingencies. The book value of the contingent liabilities should be reviewed at each balance sheet date. If there is objective evidence showing that the book value cannot reflect the present best estimate the book value should be adjusted according to the best estimate.The contingent liabilities of the acquiree acquired in the business combination involving entities not under common control are measured at fair value upon initial recognition. After initial recognition the balance of the amount recognized according to the estimated liabilities and the amount initially recognized after deducting the accumulated amortization determined by the revenue recognition 72Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report principle is subsequently measured at the higher of the two. 24. Share-based payments A share-based payment is classified as either an equity-settled share-based payment or a cash-settled share-based payment. An equity- settled share-based payment is a transaction in which the Group receives services and uses shares or other equity instruments as consideration for settlement.An equity-settled share-based payment in exchange for services received from employees is measured at the fair value of the equity instruments granted to the employees. If such equity-settled share-based payment could vest immediately related costs or expenses at an amount equal to the fair value on the grant date are recognized with a corresponding increase in capital reserves; if such equity- settled share-based payment could not vest until the completion of services for a vesting period or until the achievement of a specified performance condition the Group at each balance sheet date during the vesting period recognizes the services received for the current period as related costs and expenses with a corresponding increase in capital reserves at an amount equal to the fair value of the equity instruments at the grant date based on the best estimate of the number of equity instruments expected to vest. The fair value is determined using the closing price of the company's shares on the grant date.For awards that do not ultimately vest because non-market performance and/or service conditions have not been met no expense is recognized. Where awards include a market or non-vesting condition the transactions are treated as vesting irrespective of whether the market or non-vesting condition is satisfied provided that all other performance and/or service conditions are satisfied.Where the terms of an equity-settled share-based award are modified as a minimum an expense is recognized as if the terms had not been modified. In addition an expense is recognized for any modification that increases the total fair value of the share-based payment or is otherwise beneficial to the employee as measured at the date of modification.Where an equity-settled share-based award is cancelled it is treated as if it had vested on the date of cancellation and any expense not yet recognized for the award is recognized immediately. This includes any award where non-vesting conditions within the control of either the Group or the employee are not met. However if a new award is substituted for the cancelled award and is designated as a replacement on the date that it is granted the cancelled and new awards are treated as if they were a modification of the original award. 25. Revenue from contracts with customers The Group has fulfilled its performance obligations in the contracts that is the revenue is recognized when the customer obtains control of the relevant goods or services. Obtaining control over related goods or services means being able to lead the use of the goods or the provision of the services and obtain almost all of the economic benefits from it.Contracts for the sale of goods A contract for the sale of goods between the Group and the customer usually includes the performance obligation to transfer of goods transportation services and free maintenance. The Group allocates the transaction price to each individual performance obligation in accordance with the relative proportion of the stand-alone selling price of the goods or services promised by each individual performance obligation on the date of contract commencement. Regarding the performance obligations of the transferred goods the Group usually recognizes revenue at the point when the performance obligations are fulfilled based on the following indicators which include: a present right to payment for goods the transfer of significant risks and rewards of ownership of goods the transfer of legal title to goods the transfer of physical possession of goods the customer’s acceptance of goods.Provide service contract The performance obligations of the service provision contract between the Group and the customer are due to the fact that the customer obtains and consumes the economic benefits brought by the performance of the Group at the same time the Group performs the contract and the Group has the right to accumulate the economic benefits during the entire contract period. The Group regards it as a performance obligation performed within a period and recognizes the revenue according to the performance progress unless the performance progress cannot be reasonably determined. In accordance with the output method the Group determines the progress of the performance of the service provided based on the completed or delivered products. When the performance progress cannot be reasonably determined if the cost incurred by the Group is expected to be compensated the revenue will be recognized according to the amount of the cost incurred until the performance progress can be reasonably determined.Variable consideration Some contracts between the Group and customers have sales rebate arrangements forming variable consideration. The Group determines the best estimate of the variable consideration based on the expected value or the most likely amount but the transaction 73Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 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.Principal/agent For the Group to lead a third party to provide services to customers on behalf of the Group the Group has the right to independently determine the price of the goods or services traded that is the Group can control the relevant goods before transferring the goods to the customers so the Group is the main responsible person and recognize revenue based on the total consideration received or receivable. Otherwise the Group acts as an agent and recognizes revenue based on the amount of commission or fees expected to be charged. This amount should be based on the net amount of the total consideration received or receivable minus the price payable to other related parties or based on the established commission amount or proportions etc. 26. Contract assets and contract liabilities The Group lists contract assets or contract liabilities in the balance sheet based on the relationship between performance obligations and customer payments. The Group offsets the contract assets and contract liabilities under the same contract as net amount.Contract assets Contract assets refer to the right to receive consideration for the transfer of goods or services to customers and this right depends on factors other than the passage of time.The determination method and accounting treatment method of the expected credit loss of the contract assets of 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. 27. Government grants A government grant is recognized only when there is reasonable assurance that the entity will comply with any conditions attached to the grant and the grant will be received. Monetary grants are accounted for at received or receivable amount. Non-monetary grants are accounted for at fair value. If there is no reliable fair value available the grants are accounted for a nominal amount.A government grant which is specified by the government documents to be used to purchase and construct the long-term assets shall be recognized as the government grant related to assets. A government grant which is not specified by the government documents shall be judged based on the basic conditions to obtain the government grant. The one whose basic condition was to purchase and construct the long-term assets shall be recognized as the government grant related to assets.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. 74Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 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. 28. Income taxes Income tax comprises current and deferred tax. Income tax is recognized as an income or an expense and include in the income statement for the current period except to the extent that the tax arises from a business combination or if it relates to a transaction or event which is recognized directly in equity.Current income tax liabilities or assets for the current and prior periods are measured at the amount expected to be paid (or recovered) according to the requirements of tax laws.For temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts and temporary differences between the carrying amounts and the tax bases of items the tax bases of which can be determined for tax purposes but which have not been recognized as assets and liabilities deferred taxes are provided using the liability method.A deferred tax liability is recognized for all taxable temporary differences except: to the extent that the deferred tax liability arises from the initial recognition of goodwill or the initial recognition of an asset or liability in a transaction which contains both of the following characteristics: the transaction is not a business combination and at the time of the transaction it affects neither the accounting profit nor taxable profit or loss. (2) in respect of taxable temporary differences associated with investments in subsidiaries associates and interests in jointly- controlled enterprises where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.A deferred tax asset is recognized for deductible temporary differences carry forward of unused tax credits and unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilized except: (1) where the deferred tax asset relating to the deductible temporary differences arises from the initial recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction affects neither the accounting profit nor taxable profit or loss; and (2) in respect of deductible temporary differences associated with investments in subsidiaries associates and interests in joint ventures deferred tax assets are only recognized to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.At the balance sheet date deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled according to the requirements of tax laws. The measurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Group expects at the balance sheet date to recover the assets or settle the liabilities.At the balance sheet date the Group reviews the book value of deferred tax assets. If it is probable that sufficient taxable income cannot be generated to use the tax benefits of deferred tax assets the book value of deferred tax assets should be reduced. When it is probable that sufficient taxable income can be generated the amount of such reduction should be reversed. When it is probable that sufficient taxable income can be generated the amount of such reduction should be reversed.When the following conditions are met at the same time the deferred tax assets and deferred tax liabilities are listed at the net amount after offset: the legal right to settle the current income tax assets and current income tax liabilities at the net amount; the deferred tax assets and deferred tax liabilities are related to the income tax levied by the same tax collection and management department on the same taxable subject or different taxpaying subjects However in the future during each period when the significant deferred tax assets and deferred tax liabilities are reversed the tax payer involved intends to settle the current income tax assets and current income tax liabilities with net amount or obtain assets and pay off debts at the same time. 29. Leases Identification of leases 75Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report At inception of a contract the Group assesses whether the contract is or contains a lease. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset for a period of time the Group assesses whether throughout the period of use the customer has both of the right to obtain substantially all of the economic benefits from use of the identified asset and the right to direct the use of the identified asset.Assessment of the lease term The lease term is the non-cancellable period of a lease for which the Group has the right to use an underlying asset. If the Group has an option to extend the lease that is the Group has the right to extend the lease and is reasonably certain to exercise that option the lease term also includes periods covered by an option to extend the lease. If the Group has an option to terminate the lease that is the Group has the right to terminate the lease but is reasonably certain not to exercise that option the lease term includes periods covered by an option to terminate the lease. The Group reassesses whether it is reasonably certain to exercise an extension option purchase option or not to exercise a termination option upon the occurrence of either a significant event or a significant change in the circumstances that is within the control of the Group and affects whether the Group is reasonably certain to exercise an option not previously included in its determination of the lease term.As lessee The Group's general accounting treatment as a lessee is provided in Notes III 16 and 22.Short-term leases and leases of low-value assets The Group considers a lease that at the commencement date of the lease has a lease term of 12 months or less and does not contains any purchase option as a short-term lease; and a lease with a lower value of a single leased asset is recognized as a low value asset lease.As lessor A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset except that a lease is classified as an operating lease at the inception date.The Group recording the operating lease as a lessor Rental income under an operating lease is recognized on a straight-line basis over the lease term through profit or loss. Variable lease payments that are not included in the measurement of lease receivables are charged to profit or loss as incurred.The Group accounts for a modification to an operating lease as a new lease from the effective date of the modification considering any prepaid or accrued lease payments relating to the original lease as part of the lease payments for the new lease.A finance lease is a lease that transfers in substance all the risks and rewards incident to ownership of an asset. An operating lease is a lease other than a finance lease. 30. Profit distribution The cash dividend of the Group is recognized as liabilities after the approval of general meeting of stockholders. 31. 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. 32. Fair value measurement The Group measures its 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. 76Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or in the absence of a principal market in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability assuming that market participants act in their economic best interest.The Group measures 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 fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place in the principal market for the asset or liability or in the most advantageous market for the asset or liability when a principal market is absent. The principal or the most advantageous market must be accessible to by the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability assuming that market participants act in their economic best interest.A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.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. 33. 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: (1) 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 arangement 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. (2) 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. 77Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Uncertainty of accounting estimates 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: (1) 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. (2) 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. (3) Fair value of unlisted equity investments For unlisted equity instrument investments several valuation models are used to estimate the fair value. This requires the Group to make estimates of unobservable market parameters such as price-to-book ration discount rate sustainable growth rate asset price index etc. and is therefore uncertain. (4) 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. (5) 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. (6) 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. (7) Depreciation and amortization The Group’s management determines the estimated useful lives and residual value of fixed assets and intangible assets. This estimate is based on the historical experience of actual useful lives of fixed assets and intangible assets of similar nature and functions.Management will increase the depreciation and amortization charges where useful lives are less than previously estimated. (8) 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. 78Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 34. Changes in accounting policies and estimates (1) Changes in accounting policies □ Applicable √ Not applicable (2) Changes in significant accounting estimates □ Applicable √ Not applicable VI. TAXES 1. Main taxes and tax rates Value added tax (“VAT”) - The income from the sale of goods and the income from the provision of services are calculated at the tax 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 turnover tax actually 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) Baoding Changan Bus Manufacturing Company Limited (2020-2022).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 Policies on Promoting the High-quality Development of the Integrated Circuit Industry and the 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 software enterprises encouraged by the state are exempt from enterprise income tax from the first to second year from the year of profit and from the third to the fifth year the statutory tax rate of 25% is halved. Chongqing Changan Automobile Software Technology Co. Ltd. a subsidiary of the Company meets the above conditions and this year is the third profit year and the statutory tax rate of 25% is halved.VII. Notes to the consolidated financial statements 1. Cash In RMB Yuan Item Ending balance Beginning balance Cash 6321.16 36881.35 79Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Cash at bank 51032261166.99 49517879953.64 Other cash 2389515751.70 2458325314.38 Total 53421783239.85 51976242149.37 As at 30 June 2022 the book value of restricted cash and cash equivalents is RMB 1451938642.9 which was mainly restricted for the issuance of acceptance bill (December 31 2021: RMB 2458325314.38).As at 30 June 2022 the cash at bank oversea is equivalent to RMB 235680963.02 (December 31 2021: RMB 300347944.86).As of June 30 2022 the monetary capital deposited by the group in the financial company of the related party was RMB 27362815259.42 (December 31 2021: RMB 31652980551.77). 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 302911174.57 177902700.00 Others 3056400.00 17895600.00 Total 305967574.57 195798300.00 As of June 30 2022 the trading financial assets measured at fair value are 33.63 million ordinary shares of Southwest Securities Co.Ltd. held by the group (December 31 2021: 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 2021: Nil). 3. Notes receivable (1) Classification of notes receivable In RMB Yuan Item Ending balance Beginning balance Commercial acceptance bill 15064718344.41 17187270560.03 Bank acceptance bill 6114186788.25 7080362856.62 Total 21178905132.66 24267633416.65 (2)Notes receivable pledged In RMB Yuan Item Pledged amount Commercial acceptance bill 6334050284.91 Bank acceptance bill 1924405539.88 Total 8258455824.79 As of June 30 2022 the bills receivable of the above amount had been pledged for issuing bills payable. (3)Endorsed or discounted but unexpired notes receivable as at the end of reporting period In RMB Yuan Amount derecognized at the end of the Amount not derecognized at the end of Item period the period Commercial acceptance bill 1836816065.23 - Bank acceptance bill 17900000.00 - 80Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Total 1854716065.23 - (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 2022 there was no note receivables converted to accounts receivable due to the inability of the drawer to perform the contract. (As at 31 December 2021: Nil) 4. Accounts receivable (1)Aging analysis of the accounts receivable In RMB Yuan Aging Ending balance Beginning balance Within 1 year 3520437677.86 1605244476.97 1 to 2 years 45103667.98 28484908.94 2 to 3 years 99726316.58 116846682.50 Over 3 years 152921931.80 140125844.08 Total 3818189594.22 1890701912.49 Less: Provision (221187483.68) (215274377.62) Total 3597002110.54 1675427534.87 (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 Withdrawal or Ending balance Provision Write-off reversal 2022.6.30215274377.6214793773.743880667.685000000.00221187483.68 2021.12.31189491038.2231121598.403933948.001404311.00215274377.62 (3)Analysis of accounts receivable by category In RMB Yuan Ending balance Category Balance Provision Book value Amount % Amount % Individually analyzed for provision 2984570203.17 78.17 154440110.83 5.17 2830130092.34 Accounts receivable analyzed as 833619391.0521.8366747372.858.01766872018.20 groups for provision Total 3818189594.22 100.00 221187483.68 5.79 3597002110.54 Beginning balance Category Balance Provision Book value Amount % Amount % Individually analyzed for provision 1116005410.48 59.03 161822950.43 14.50 954182460.05 Accounts receivable analyzed as 774696502.0140.9753451427.196.90721245074.82 groups for provision Total 1890701912.49 100.00 215274377.62 11.39 1675427534.87 (4)The Group’s accounts receivable was analyzed for provision by expected credit loss model In RMB Yuan 81Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Ending balance Aging Expected credit loss rate Expected credit loss for the Estimated face value for default (%) entire duration Within 1 year 638311708.75 0.11 678498.74 1 to 2 years 6032150.00 8.61 519124.72 2 to 3 years 67434401.51 17.55 11832231.58 Over 3 years 121841130.79 44.09 53717517.81 Total 833619391.05 8.01 66747372.85 Beginning balance Aging Expected credit loss rate Expected credit loss for the Estimated face value for default (%) entire duration Within 1 year 572882251.72 0.13 759937.11 1 to 2 years 28352246.25 8.57 2429794.47 2 to 3 years 92634562.67 12.47 11548535.79 Over 3 years 80827441.37 47.90 38713159.82 Total 774696502.01 6.90 53451427.19 (5) Accounts receivable with top five ending balances collected by debtors As at June 30 2022 accounts receivable from Top 5 clients amounted to RMB 2159307798.64 accounted for 56.55% of the total accounts receivable (December 31 2021: RMB 924920983.66 accounted for 48.92% of the total amount). (6) Accounts receivable derecognized due to transfer of financial assets As of June 30 2022 the Group has no accounts receivable that are derecognized as the transfer of financial assets (December 31 2021: Nil). 5. Prepayments In RMB Yuan Ending balance Beginning balance Aging Amount % Amount % Within 1 year 3849485631.49 99.62 3223697503.44 99.46 1 to 2 years 10246950.08 0.27 12192890.74 0.38 2 to 3 years 1748527.01 0.05 3934439.12 0.12 Over 3 years 2500285.31 0.06 1423997.98 0.04 Total 3863981393.89 100.00 3241248831.28 100.00 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 255356145.11 Other receivables 254258702.75 632122942.37 Total 509614847.86 632122942.37 (1)Dividend receivable 82Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report In RMB Yuan Project (or investee) Ending balance Beginning balance Weaponry Group Finance Co. Ltd 143737428.00 China Ordnance Equipment Group Finance Leasing Co. Ltd 411666.67 Guolian automobile power battery Research Institute Co. Ltd 73034.00 Chang'an Auto Finance Co. Ltd 66943616.44 Chang'an Mazda Engine Co. Ltd 41500000.00 Southwest Securities Co. Ltd 2690400.00 Total 255356145.11 (2)Other receivables 1) Aging analysis of other receivables In RMB Yuan Aging Ending balance Beginning balance Within 1 year 178523769.16 617564020.74 1 to 2 years 64284604.28 1762913.64 2 to 3 years 1981904.94 2737081.98 Over 3 years 16796244.89 17525165.97 Total 261586523.27 639589182.33 Less: Provision (7327820.52) (7466239.96) Total 254258702.75 632122942.37 2) Other receivables are classified by nature In RMB Yuan Nature Ending balance Beginning balance Subsidies for new energy vehicles 50998795.00 409468872.96 Bond 18205007.69 84465512.53 Petty cash 37717721.77 23921846.41 Other 147337178.29 114266710.47 Total 254258702.75 632122942.37 3) The changes in the provision for bad debts for other receivables based on the 12-month expected credit losses and the expected credit losses for the entire duration In RMB Yuan Change amount in the current period Beginning Category balance Withdrawal or Ending balance Provision Write-off Other reversal 2022.6.307466239.9664762.57203182.017327820.52 2021.12.3111821252.7968455.174205241.00218227.007466239.96 4) Other receivables with top five ending balances collected by debtors In RMB Yuan Proportion in Ending ending balance of balance of Name Nature Ending balance Aging other receivables bad debt (%) provision Subsidies for new First 50998795.00 Within 1 year 19.50 energy vehicles 83Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Second Disposal of assets 48350040.00 1 to 2 years 18.48 Third Bond 15900000.00 Within 1 year 6.08 Fourth Electricity fee 10815169.74 Within 1 year 4.13 Fifth Gas fee 6143019.88 Within 1 year 2.35 Total 132207024.62 - 50.54 5) Other receivables derecognized due to transfer of financial assets As of June 30 2022 the Group has no other receivables derecognized as financial asset transfers. (December 31 2021: Nil). 7. Inventory (1) Classification of inventory In RMB Yuan Ending balance Beginning balance Provision for Provision for impairment of impairment of inventories or inventories or Item provision for provision for Balance Net value Balance Net value impairment of impairment of contract contract performance performance costs costs Raw materials 1251525114.27 276722893.12 974802221.15 814952436.64 313721126.17 501231310.47 Work in transit 107432641.94 - 107432641.94 355550319.54 - 355550319.54 Work in 2609892441.7360788411.492549104030.242759775787.4772995707.722686780079.75 progress Commodity 3438230207.7076638247.433361591960.273420908192.91166294516.693254613676.22 stock Revolving ---29535580.80-29535580.80 materials Spare parts 31994939.02 - 31994939.02 25163453.81 - 25163453.81 Total 7439075344.66 414149552.04 7024925792.62 7405885771.17 553011350.58 6852874420.59 (2) Provision for inventory In RMB Yuan Increase Decrease Item Beginning balance Ending balance Provision Other Reversal Write-off Raw materials 313721126.17 10874321.00 82454.04 47790100.01 276722893.12 Work in 72995707.7248387421.87320089.4560274628.6560788411.49 progress Commodity 166294516.6917364083.574091297.35102929055.4876638247.43 stock Total 553011350.58 76625826.44 4493840.84 210993784.14 414149552.04 8. Contract assets In RMB Yuan Ending balance Beginning balance Item Provision for Provision for Balance Net value Balance Net value impairment impairment Contract 1208077390.13171319492.501036757897.631320954229.34169661981.981151292247.36 assets Total 1208077390.13 171319492.50 1036757897.63 1320954229.34 169661981.98 1151292247.36 84Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Current contract assets provision for impairment： In RMB Yuan Beginning balance Provision Turn back Resale Ending balance 2022.6.30169661981.981807510.52150000.00-171319492.50 2021.12.31134148932.8849094830.067431781.006149999.96169661981.98 9. Other current assets In RMB Yuan Item Ending balance Beginning balance Accrual input tax 633540441.95 1140996871.24 Prepaid taxes 139504217.70 3078565.10 Others 9626784.09 3723435.08 Total 782671443.74 1147798871.42 85Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 10. Long-term equity investments In RMB Yuan Increase / decrease Other Provision Investment Investee Beginning balance Declaration of comprehensive Ending balance ending Addition income under cash dividends or income balance equity method profits adjustment I. Joint Venture Changan Ford Automobile Co. Ltd. 2934876043.99 522860908.17 3457736952.16 Changan Mazda Automobile Co. Ltd. 1867086106.67 236050510.98 (381500000.00) 1721636617.65 Changan Mazda Engine Co. Ltd. 835121564.38 15784275.65 (41500000.00) 809405840.03 Nanchang Jiangling Holding Co. Ltd. 1630596420.97 88264113.54 1718860534.51 Subtotal 7267680136.01 862959808.34 (423000000.00) 7707639944.35 II. Associates Chongqing Changan Kuayue Automobile Co. 242792196.86(20594524.55)222197672.31 Ltd.Changan Automobile Financing Co.Ltd 2520349332.44 152764747.43 (66943616.44) 2606170463.43 Hainan Anxinxing Information Technology Co. 368900.00(368900.00) Ltd. (note 1) Nanjing Chelai Travel Technology Co. Ltd. 866888.90 (97213.22) 769675.68 Hunan Guoxin Semiconductor Technology Co. 25285116.95(552714.09)24732402.86 Ltd.Nanjing Leading Equity Investment 2424143949.52(42899.72)2424101049.80 Management Co. Ltd. (Limited Partnership) Nanjing Leading Equity Investment Partnership 1133065.60 (9266.61) 1123798.99 Chongqing Changan New Energy Vehicles 425266071.282023566110.70(730298424.67)1718533757.31 Technology Co. Ltd.Zhongqi Chuangzhi Technology Co. Ltd. 190534997.15 (9012542.48) 181522454.67 Chongqing Changxin Zhiqi Private Equity Investment Fund Partnership (Limited 25007587.62 (5754.39) 25001833.23 Partnership) Anhe (Chongqing) Equity Investment Fund 2199216.74(222996.33)1976220.41 Management Co. Ltd. 86Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Hangzhou Chelizi Intelligent Technology Co. 9456236.58(559728.73)8896507.85 Ltd.Master Changan Automobile Co. Ltd. 40167274.82 (2584892.67) 37582382.15 Jiangling Holding Co. Ltd. 70492790.08 (41202595.77) 29290194.31 AVATR. Co. Ltd. (note 2) 2446278194.01 (131350496.79) 146228.18 2315073925.40 Chongqing Changan Kuayue Automobile Sales Co. Ltd. (note 1) Beijing Fang’an cresent taxi Co. Ltd. (note 1) Chongqing Wutong Chelian Technology Co.Ltd. (note 1) Subtotal 5977694724.54 4470213204.71 (784138202.59) 146228.18 (66943616.44) 9596972338.40 Total 13245374860.55 4470213204.71 78821605.75 146228.18 (489943616.44) 17304612282.75 Note 1: On 2022 June 30 the Group of Chongqing Changan Kuayue Automobile Co. Ltd. Beijing Fang’an cresent taxi Co. Ltd. Chongqing Wutong Chelian Technology Co. Ltd. and Hainan Anxinxing Information Technology Co. Ltd. did not have the obligation to undertake extra losses so the excess loss when it occurs only the long-term equity investment was written down to zero. The excess losses related to the investment in the above three companies were not recognized.Note 2: In March 2022 AVATR. Co. Ltd. a subsidiary of the company completed capital increase and share expansion and introduced new investors. After the capital increase was completed AVATR. Co. Ltd. changed from a subsidiary to an associate enterprise. 87Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 11. Investment in other equity instruments In RMB Yuan Accumulative Reason for being changes in fair designated value included in as fair value Item Fair value Dividends Income other through other comprehensive comprehensive income income Unlisted equity Corun Hybrid Power Technology Co. Ltd 5959600.00 205959600.00 instruments China South Industry Group Finance Co. Unlisted equity 174979200.00332000000.00143737428.00 Ltd. instruments Guoqi (Beijing) Intelligent Network Unlisted equity Association Automotive Research Institute 100000.00 50100000.00 instruments Co. Ltd.Guoqi Automobile Power Cell Research Unlisted equity 6700000.0046700000.0073034.00 Co. Ltd. instruments China South Industry Group Financial Unlisted equity 12098000.0042650000.00411666.67 Leasing Co. Ltd. instruments Unlisted equity Zhong Fa Lian Investment Co. Ltd. 21000000.00 instruments CAERI(Beijing) automobile Lightweight Technology Research Unlisted equity 3000000.00 instruments Institution Co. Ltd.Unlisted equity Sichuan Glass Co. Ltd.instruments Total 199836800.00 701409600.00 144222128.67 12. 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 depreciationand amortization 1. Opening balance 3400673.40 3400673.40 2. Increase in current period 113355.78 113355.78 3. Decrease in current period 4. Ending balance 3514029.18 3514029.18 III. Net Value 1. Ending 6536070.82 6536070.82 2. Beginning 6649426.60 6649426.60 The investment property is rented to third parties in the form of operating lease.As at 30 June 2022 there was no investment property without property certificate (As at 31 December 2021: Nil). 88Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 13. Fixed assets (1) Details of fixed assets In RMB Yuan Item Buildings Machinery Vehicles Other Equipment Total I. Original cost Beginning 9881301151.22 26013931324.85 1421170657.53 9442094973.15 46758498106.75 Purchase 1027877.86 24462217.92 27079122.51 52569218.29 Transfer from Construction in 3092478.77 130267336.64 452607358.73 380740958.65 966708132.79 progress Disposal 37092534.12 39875006.43 88671767.66 68810766.15 234450074.36 Government grants 45824900.00 86596292.00 132421192.00 Other decrease 12196144.18 7082213.50 433482.76 8540318.14 28252158.58 Ending 9836132829.55 26075878759.48 1698076473.84 9772563970.02 47382652032.89 II.Accumulated depreciation Beginning 2830770398.43 14770986696.00 537352883.68 4988689213.76 23127799191.87 Accrual 187735732.35 886707955.54 99288960.32 261948492.69 1435681140.90 Disposal 26061113.31 35323317.76 64225749.84 16129740.61 141739921.52 Other decrease 205021.23 993150.09 1198171.32 Ending 2992445017.47 15622371333.78 572211072.93 5233514815.75 24420542239.93 III.Impairment Provision Beginning 99421052.16 1772417722.74 99933602.55 332966687.27 2304739064.72 Accrual 123779668.17 318225.48 41020062.45 165117956.10 Disposal 147418.54 677471.46 16391541.84 4185694.36 21402126.20 Ending 99273633.62 1895519919.45 83860286.19 369801055.36 2448454894.62 IV. Net Value Ending 6744414178.46 8557987506.25 1042005114.72 4169248098.91 20513654898.34 Beginning 6951109700.63 9470526906.11 783884171.30 4120439072.12 21325959850.16 (2) Fixed assets that are temporarily unused On June 30 2022 the fixed assets with a book value of RMB 125476018.72 (December 31 2021: RMB 150232534.30) were tem porarily idle due to product upgrading and other reasons. (3) The fixed assets which are rented out under operating leases In RMB Yuan Item Ending Buildings 293881396.48 Machinery 47076051.90 Vehicles 1007156364.29 Other Equipment 4084478.11 89Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 14. 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 153198664.88 153198664.88 110892336.09 110892336.09 equipment Car production 285522690.1021313648.08264209042.02304941771.3421313648.08283628123.26 equipment Engine plant 163363062.61 163363062.61 127069581.90 127069581.90 Vehicle research 17612321.21 17612321.21 27661450.64 27661450.64 institution Car production Project of 22273791.9722273791.9713073052.8813073052.88 Hefei Changan Light vehicle 20953663.8420953663.8420953663.8420953663.84 project Others 511656556.17 22885996.12 488770560.05 927276352.74 50378021.92 876898330.82 Total 1174580750.78 44199644.20 1130381106.58 1531868209.43 71691670.00 1460176539.43 90Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report (2) Movements of significant construction in progress In RMB Yuan The project investments’ Progress of Beginning Transferred to Item Budget Addition Other deduction Ending balance proportion construction Source of funds balance fixed assets of budget (%) (%) Mini-bus production 1093490000.00 110892336.09 76807358.31 34431295.01 69734.51 153198664.88 78.00 78.00 Self-funded equipment Self-raised and Car production 3650155000.00 283628123.26 6581219.57 26000300.81 264209042.02 76.00 76.00 additional equipment issuance Self-raised and Engine plant 4659071200.00 127069581.90 57103331.39 20809850.68 163363062.61 77.00 77.00 additional issuance Vehicle research 2099060000.00 27661450.64 18263706.59 28312836.02 17612321.21 86.00 86.00 Self-funded institution Car production Self-raised and project of 3949800000.00 13073052.88 9200739.09 22273791.97 87.00 87.00 additional Hefei Changan issuance Light vehicle 520083400.00 20953663.84 20953663.84 68.00 68.00 Self-funded project Car-sharing 721192899.46 451943328.88 45371719.67 223877850.91 Self-funded project Others 155705431.36 619556531.14 405210521.39 105158731.97 264892709.14 Self-funded Total 1460176539.43 787512886.09 966708132.79 150600186.15 1130381106.58 91Chongqing Changan Automobile Company Limited 2022 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 2022 71691670.00 27492025.80 44199644.20 December 31 2021 71352959.12 558034.00 219323.12 71691670.00 15. Right-of-use assets In RMB Yuan Item Buildings Total I. Original cost 1. Beginning 92864546.90 92864546.90 2. Purchase 77438068.15 77438068.15 3. Disposal 2689483.42 2689483.42 4. Other deduction 78792400.21 78792400.21 5. Ending 88820731.42 88820731.42 II. Accumulated depreciation 1. Beginning 26551483.92 26551483.92 2. Purchase 16605322.98 16605322.98 3. Disposal 582721.40 582721.40 4. Other deduction 3770986.88 3770986.88 5. Ending 38803098.62 38803098.62 III. Carrying amount 1. Ending 50017632.80 50017632.80 2. Beginning 66313062.98 66313062.98 16. Intangible assets (1) Details of intangible assets In RMB Yuan Non-patent Software use Trademark use Item Land use rights Patent Total technology rights rights I. Original cost Beginning 2284655025.60 6643349368.90 785360545.01 211864157.55 9925229097.06 Purchase 85556571.30 2950592.78 7057273.61 95564437.69 Internal research and 441434828.55 441434828.55 development Disposal 46688334.00 46688334.00 Ending 2237966691.60 85556571.30 7087734790.23 792417818.62 211864157.55 10415540029.30 II.Accumulated amortization Beginning 440258024.63 3969781572.32 671428815.01 211786800.00 5293255211.96 92Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Accrual 25049708.12 2851885.71 481902072.11 18236655.74 77357.55 528117679.23 Disposal 20568118.91 - - - 20568118.91 Ending 444739613.84 2851885.71 4451683644.43 689665470.75 211864157.55 5800804772.28 III. Impairment provision Beginning 222358304.26 23617923.17 245976227.43 Accrual 2920133.24 2920133.24 Ending 225278437.50 23617923.17 248896360.67 IV 、 Carrying amount Ending 1793227077.76 82704685.59 2410772708.30 79134424.70 4365838896.35 Beginning 1844397000.97 2451209492.32 90313806.83 77357.55 4385997657.67 As of June 30 2022 intangible assets formed through internal research and development accounted for 55.22% of the year-end book value of intangible assets (December 31 2021: 55.89%).As of June 30 2022 there is no land use rights that have not completed the land use right certificate (December 31 2021: Nil). 17. Development expenditure In RMB Yuan Deduction Addition Beginning Internal Charged to Item Recognized as income Other Ending balance balance research and development intangible assets Statement of the deduction current year Automobile 727568248.78602999114.43441434828.5586143252.73251509079.07551480202.86 Development Total 727568248.78 602999114.43 441434828.55 86143252.73 251509079.07 551480202.86 18. 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 AVATR. Co. Ltd 39078794.37 39078794.37 Total 48883188.37 39078794.37 9804394.00 Note: The deduction of goodwill of AVATR. Co. Ltd in the current period is due to the impact of changes in the scope of consolidation caused by the loss of control. (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 93Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 19. Long-term deferred expenses In RMB Yuan Item Beginning balance Addition Deduction Other deduction Ending balance Long-term 15032814.198501069.161826783.8421707099.51 deferred expenses Total 15032814.19 8501069.16 1826783.84 21707099.51 20. Deferred tax assets and liabilities (1) Deferred income tax assets that are not offset: In RMB Yuan Ending balance Beginning balance Item Deductible temporary Deductible temporary Deferred tax assets Deferred tax assets differences differences Assets provision 2871396575.12 430709486.27 2777356777.37 416729166.66 Accrued expenses and 6989431192.521048414678.886824636821.501034344964.94 contingent liabilities Unpaid tech development expense and advertisement 571216316.77 85682447.52 371602577.37 55740386.60 expense Deferred income 2938710999.31 440806649.89 2897724045.52 434658606.83 Unpaid salary and bonus and 2864638006.49429695700.982252471662.68339346391.96 others Total 16235393090.21 2435308963.54 15123791884.44 2280819516.99 (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 financial assets 392235421.84 58835313.28 366226945.07 54934041.76 Fair value adjustment of business 214453003.5732167950.54223598108.6033539716.29 combination not under common control Long-term equity investment 824671946.85 123700792.03 824671946.85 123700792.03 Other 33336067.93 5000410.19 35116281.93 5267442.29 Total 1464696440.19 219704466.04 1449613282.45 217441992.37 (3) Details of unrecognized deferred tax assets In RMB Yuan Item Ending balance Beginning balance The deductible temporary difference 1772143525.42 2557584132.14 The deductible tax loss 4693437982.83 7599963296.27 Total 6465581508.25 10157547428.41 94Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 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 2022160009422.55186827208.01 2023651217805.08719486343.29 2024642608818.28644243430.69 2025662132493.46804477322.53 2026177704323.94191081327.12 2027 and beyond 2399765119.52 5053847664.63 Total 4693437982.83 7599963296.27 21. Short-term loans In RMB Yuan Item Ending balance Beginning balance Mortgage loans 19000000.00 19000000.00 Guaranteed loan 27166500.00 Total 46166500.00 19000000.00 As at 30 June 2022 there was no overdue short-term loan (as at 31 December 2021: Nil). 22. Notes payable In RMB Yuan Item Ending balance Beginning balance Commercial acceptance bill 3438819091.41 5419108409.88 Bank acceptance bill 23482587410.81 18873159961.24 Total 26921406502.22 24292268371.12 As at 30 June 2022 there were no significant accounts payable aged over one year (as at 31 December 2021: Nil). 23. Accounts payable In RMB Yuan Item Ending balance Beginning balance Accounts payable 23994999761.80 23650604870.98 Total 23994999761.80 23650604870.98 As at 30 June 2022 there were no significant accounts payable aged over one year (as at 31 December 2021: Nil). 95Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 24. Contract liabilities In RMB Yuan Item Ending balance Beginning balance Advance payment 4267583038.93 9274445050.60 Advance service payment 688487935.99 566064463.79 Total 4956070974.92 9840509514.39 25. Payroll payable (1) Payroll payable In RMB Yuan Item Beginning balance Addition Deduction Ending balance Short term salary 2474414390.264166290955.513428026533.583212678812.19 benefits Defined contribution 89216538.26295145597.47271516773.31112845362.42 plans Early retirement 2940000.00-1664381.961275618.04 benefits Total 2566570928.52 4461436552.98 3701207688.85 3326799792.65 (2) Short term salary benefits： In RMB Yuan Item Beginning balance Addition Deduction Ending balance 1. Salary bonus allowance 2051402711.533545065703.782739493804.212856974611.10 and subsidy 2. Employee benefit 50630435.22 143683960.45 192022028.36 2292367.31 3. Social insurance 33522353.03 226556597.67 206451388.46 53627562.24 Medical insurance 21021344.24 206179667.73 186302126.78 40898885.19 Industrial injury 11118683.2620113506.8418503897.8912728292.21 insurance Maternity insurance 1382325.53 263423.10 1645363.79 384.84 4. Housing accumulation 82772742.30120578347.77138180124.1565170965.92 fund 5. Labor fund and employee 256086148.18118762733.07146235575.63228613305.62 education fund 6. Others 11643612.77 5643612.77 6000000.00 Total 2474414390.26 4166290955.51 3428026533.58 3212678812.19 (3) Defined contribution plans： In RMB Yuan Item Beginning balance Addition Deduction Ending balance 1. Basic retirement 79483988.05 285176572.20 262988606.04 101671954.21 96Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report security 2. Unemployment 9732550.219969025.278528167.2711173408.21 insurance Total 89216538.26 295145597.47 271516773.31 112845362.42 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. 26. Taxes payable In RMB Yuan Item Ending balance Beginning balance Value-added tax 283161424.83 226203631.00 Consumption tax 313679284.06 677686833.74 Corporate income tax 21973424.89 105632071.69 City maintenance and construction tax 62868525.34 40480950.08 Others 25810497.92 71309911.01 Total 707493157.04 1121313397.52 27. Other payables In RMB Yuan Item Ending balance Beginning balance Purchase and construction of fixed assets 828054799.13949561307.22 intangible assets and engineering deposits New energy subsidy collection and payment 807637855.00 169127065.00 Customer and supplier margin 755711023.28 614910836.94 Treasury stock repurchase 655812327.60 655812327.60 Advertisement fees 435181058.99 890826555.71 Storage fees and freight 381651926.24 159463618.29 Maintenance fees 206984685.67 212946188.78 Advanced receipt of land and plant disposal fees 140000000.00 Capital increase from third parties received in 253750000.00 advance by subsidiaries Equity disposal payment 89444954.88 61787880.00 Others 815849609.20 594440565.15 Total 5116328239.99 4562626344.69 28. Non-current liability within 1 year In RMB Yuan Item Ending balance Beginning balance Long-term loan within 1 year 654300000.00 354300000.00 Long-term payables within 1 year 213312142.21 154593759.05 97Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Lease liabilities within 1 year 19964461.90 24945824.52 Total 887576604.11 533839583.57 29. Other current liabilities In RMB Yuan Item Ending balance Beginning balance Accrued commercial discount payable 3260659595.98 3367324452.66 Accrued transportation fee 805314435.84 729390155.06 Accrued market development expense 564309358.38 808031552.57 Accrued technology royalty 402214421.99 342675110.58 Accrued integrated services fee 79555300.00 79555300.00 Accrued labor service fee 76656610.57 63197022.32 Accrued utilities 41279074.15 48068943.51 Accrued negative points for fuel -33239495.00 consumption Others 232310379.25 209476997.52 Total 5462299176.16 5680959029.22 30. Long-term Loan In RMB Yuan Item Ending balance Beginning balance Credit loan 694300000.00 954300000.00 Deduction: Loan within 1 year 654300000.00 354300000.00 Net Long-term Loan 40000000.00 600000000.00 As at June 30 2022 the interest rates of the above loans were 1.00%-3.00% (as at 31 December 2021: 1.00%-3.00%).As at June 30 2022 there is no overdue long-term loans (as at 31 December 2021: Nil). 31. Lease liabilities In RMB Yuan Item Ending balance Beginning balance Lease liabilities 48166482.15 63625560.11 Less：Lease liabilities within 1 year 19964461.90 24945824.52 Net lease liabilities 28202020.25 38679735.59 32. Long-term payables In RMB Yuan Item Ending balance Beginning balance Long-term payables 467780397.91 642513537.69 98Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Special payables 163222915.60 182959952.39 Total 631003313.51 825473490.08 (1) Long-term payables: In RMB Yuan Item Ending balance Beginning balance Purchase of fixed assets 681092540.12 797107296.74 Less：Long-term payables within 1 year 213312142.21 154593759.05 Total 467780397.91 642513537.69 (2) Special payables: In RMB Yuan Item Beginning balance Addition Deduction Ending balance Land relocation compensation 55350709.40 55350709.40 of Nanjing changan Intelligent manufacturing 82777201.36 35740700.00 11318391.82 107199509.54 project Lightweight design of 18903766.50 2800000.00 4801572.92 16902193.58 automobile structure Others 25928275.13 16140816.00 2947878.65 39121212.48 Total 182959952.39 54681516.00 74418552.79 163222915.60 33. Long-term payroll payable In RMB Yuan Item Ending balance Beginning balance Net obligation of defined benefit plan 27665760.32 30917000.00 Early retirement 8971069.20 8186000.00 Total 36636829.52 39103000.00 34. Contingent liabilities In RMB Yuan Item Ending balance Beginning balance Warranty 3770948830.71 3295272783.50 Contingent liabilities of contract 509056929.02543742894.34 performance Total 4280005759.73 3839015677.84 99Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 35. Deferred income In RMB Yuan Item Beginning balance Addition Deduction Ending balance Government grants related to 224903605.46121411192.00132421192.00213893605.46 assets Government grants related to 699846125.6610531250.00424791568.19285585807.47 gains Total 924749731.12 131942442.00 557212760.19 499479412.93 Details of government grants are as follows: In RMB Yuan Liability Beginning balance Addition Deduction Ending balance Related to assets: 224903605.46 121411192.00 132421192.00 213893605.46 Production and 158141323.00121411192.00121411192.00158141323.00 construction subsidies Other government 66762282.4611010000.0055752282.46 subsidies Related to gains: 699846125.66 10531250.00 424791568.19 285585807.47 R&D technology 569842539.65359884872.76209957666.89 subsidies Other government 130003586.0110531250.0064906695.4375628140.58 subsidies Total 924749731.12 131942442.00 557212760.19 499479412.93 36. Other non-current liabilities In RMB Yuan Item Ending balance Beginning balance Advance service payment 1532238553.86 1352292332.21 Deduction: Advance service payment 688487935.99566064463.79 within 1 year Net other non-current liabilities 843750617.87 786227868.42 37. Share capital In RMB Yuan Changes（+，-）Beginning Additional Stock Provident fund Ending balance balance Others issued dividend transfer I. Shares with sales 519818865.00155945659.00675764524.00 restrictions 1. State-owned legal 396393645.00118918093.00515311738.00 person shares 2. Other domestic shares 122490320.00 36747096.00 159237416.00 Including: Domestic legal person shares Domestic natural person 122490320.00 36747096.00 159237416.00 100Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report shares 3. Foreign shares 934900.00 280470.00 1215370.00 Including: Foreign legal person shares Foreign natural person 934900.00280470.001215370.00 shares II. Shares without sales 7112334537.002133700361.009246034898.00 restrictions 1.Ordinary shares 5849553939.001754866182.007604420121.00 denominated in RMB 2. Domestic listed foreign 1262780598.00378834179.001641614777.00 shares III. Total shares 7632153402.00 2289646020.00 9921799422.00 According to the 2021 profit distribution and provident fund transfer plan the capital reserve will be converted to 3 shares for every 10 shares. After the conversion the total share capital will increase by RMB 2289646020 and the capital reserve will decrease by RMB 2289646020. 38. Capital reserves In RMB Yuan Item Beginning balance Addition Deduction Ending balance Share premium 8774823352.59 2289646020.00 6485177332.59 Share-based payments 268539867.92 192310900.00 460850767.92 Capital reserve transferred arising from 44496899.00 44496899.00 the old standards reserve of equity 17015985.2017015985.20 investments Others 671317255.67 663566110.70 1334883366.37 Total 9776193360.38 855877010.70 2289646020.00 8342424351.08 In 2022 the increase in other capital reserves amounting to RMB 663566110.70 was due to the capital increase of the minority shareholders of Chongqing Changan New Energy Vehicle Technology Co. Ltd. an associate company of the Company. 39. Treasury stock In RMB Yuan Item Beginning balance Addition Deduction Ending balance Treasury stock 655812327.60 655812327.60 Total 655812327.60 655812327.60 101Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 40. Other comprehensive income In RMB Yuan Amount for this reporting period Deduct: other Amount Deduct: amounts comprehensiv attributa transferred to e income in ble to Beginning income statement the previous minority Item Deduct: Ending balance balance Amount which were period and Amount attributable interests Income before tax recognized in other transferred to to owners tax 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 166196226.11 166196226.11 166196226.11 method Change in net liability or assets from (297000.00)(297000.00)(297000.00) defined benefit plan Other comprehensive income that cannot be transferred to profit or loss under the (3368053.89) (3368053.89) (3368053.89) equity method Changes in the fair value of other 169861280.00169861280.00169861280.00 equity instrument investments II. Other comprehensive income will be reclassified to profit or loss in subsequent (96753756.58) 121654.81 (96632101.77) (96632101.77) period Other comprehensive income that can be transferred to profit or loss under the equity 146228.18 146228.18 146228.18 method Foreign currency translation difference (96753756.58) (24573.37) (96778329.95) (96778329.95) Total 69442469.53 121654.81 69564124.34 69564124.34 102Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 41. Special reserves In RMB Yuan Item Beginning balance Addition Deduction Ending balance Safety fund 27988260.61 46183489.83 25024594.96 49147155.48 Total 27988260.61 46183489.83 25024594.96 49147155.48 42. Surplus reserves In RMB Yuan Item Beginning balance Addition Deduction Ending balance Statutory surplus 2982292413.67 2982292413.67 Total 2982292413.67 2982292413.67 43. Retained earnings In RMB Yuan Item Current period Prior period Retained earnings at beginning of the year 35900674525.13 34315048892.26 Add: Profits attributable to parent company for the 5857626135.781729245208.60 current year Less: Ordinary share dividend of cash 1778856191.54 1666243360.54 Retained earnings at the end of year 39979444469.37 34378050740.32 44. Operating revenue and cost In RMB Yuan Amount for this period Amount for prior period Item Revenue Cost Revenue Cost Main business 55281269652.99 44486900457.55 55859466497.39 47581200934.60 Other business 1292298740.72 873190024.65 925165401.68 505476294.61 Total 56573568393.71 45360090482.20 56784631899.07 48086677229.21 45. Tax and surcharges In RMB Yuan Item Amount for this period Amount for prior period Consumption tax 1469234309.60 1599192250.70 City maintenance and construction tax 194046087.99 196961006.14 Educational surcharge 133244356.31 134489938.43 Others 149775477.87 157051471.80 Total 1946300231.77 2087694667.07 103Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 46. Operating expenses In RMB Yuan Item Amount for this period Amount for prior period Sales service fee 1151982258.69 871026270.21 Promotion advertising fee 552426701.41 791462570.10 Payroll and welfare 297621384.05 240101135.80 Transportation and storage fees 205973233.78 168961271.58 Travelling expenses 30218731.48 30394898.13 Package expenses 28619986.39 14493447.37 Others 18487525.97 29675719.00 Total 2285329821.77 2146115312.19 47. General and administrative expenses In RMB Yuan Item Amount for this period Amount for prior period Payroll and welfare 1766803412.30 1216671339.99 Depreciation and amortization 110312454.37 117765985.28 Traffic expenses and travelling expenses 21235281.45 27865566.05 Negative points for fuel consumption - 636271194.34 Others 285683156.98 218572958.84 Total 2184034305.10 2217147044.50 48. Research and development expenses In RMB Yuan Item Amount for this period Amount for prior period Payroll and welfare 819010682.93 592150357.04 Depreciation and amortization 614117321.15 607589508.63 Subcontract fee 272218189.13 147374115.88 Material fee 112662406.81 70981081.39 Travelling research fee 20043210.47 12194021.56 Test fee 17479289.63 35455478.77 Others 76763044.55 29838798.89 Total 1932294144.67 1495583362.16 49. Financial income In RMB Yuan Item Amount for this period Amount for prior period Interest income 438428075.90 281294223.92 Less: Foreign exchange gain or loss (40733323.13) 8533687.86 Interest expense 17892411.14 26372186.29 Others 23270638.90 12611859.12 Total 437998348.99 233776490.65 104Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 50. Other income Government subsidies related to daily activities In RMB Yuan Item Amount for this period Amount for prior period Production and construction subsidies 186910289.65 106783041.12 51. Investment income In RMB Yuan Item Amount for this period Amount for prior period Long-term equity investment losses accounted for by the equity 78821605.75250708951.37 method The investment income of financial asset held for trading during 2690400.00 its holding period Dividend income from remaining investments in other equity 144222128.6770204197.65 instruments Gains from the remeasurement of the remaining equity at fair 2128305938.85 value after the loss of control Interest income from entrusted loan 6959316.06 Total 2354040073.27 327872465.08 52. 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 26136888.77 15734698.73 Total 26136888.77 15734698.73 53. Impairment loss of credit In RMB Yuan Item Amount for this period Amount for prior period Bad debt for account receivable 10913106.06 3471684.54 Bad debt for other receivables (138419.44) 14557.81 Total 10774686.62 3486242.35 54. Impairment loss on assets In RMB Yuan Item Amount for this period Amount for prior period Impairment of inventory 72131985.60 75510749.47 Impairment of fixed assets 165117956.10 133683760.35 Impairment of intangible assets 2920133.24 6685373.29 105Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Impairment of contract assets 1657510.52 (20192776.00) Total 241827585.46 195687107.11 55. Gain on disposal of assets In RMB Yuan Item Amount for this period Amount for prior period Gain on disposal of fixed-assets 60093947.79 119487419.99 Gain on disposal of intangible assets 8150134.49 481579441.34 Total 68244082.28 601066861.33 56. 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 54366637.51 40983845.94 54366637.51 Total 54366637.51 40983845.94 54366637.51 57. 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 10500000.00 Vehicle reward 1711728.00 1711728.00 Fines and penalties 1327232.91 559.05 1327232.91 Others 1831254.32 3603043.24 1831254.32 Total 4870215.23 14103602.29 4870215.23 58. 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 48946847.14 188574027.41 Deferred income tax expense (152226972.88) (129200581.32) Total (103280125.74) 59373446.09 106Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report (2) The relationship between profit before tax and income tax expense In RMB Yuan Item Amount for this period Tax at the applicable tax rate 5735743241.36 Tax at the applicable tax rate 860361486.20 Impact of different tax rates of subsidiaries -26497167.12 Adjustments to current income tax of previous period -7652635.70 Non-taxable income -409245890.83 Non-deductible costs expenses and losses 7931779.52 Usage previous deductible losses -431737260.12 Unrecognized deductible temporary differences and deductible losses -3568697.46 Profit or loss attributable to joint ventures and associates -11823240.86 Additional deduction -81048499.38 Income tax expense (103280125.74) 59. Other comprehensive income Please refer to notes V 40. 60. 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 438428075.90 287599749.93 Government grants 401800087.37 973828265.22 Others 561189492.27 536655063.79 Total 1401417655.54 1798083078.94 (2) Items of cash paid relating to other operating activities In RMB Yuan Item Amount for this period Amount for prior period Selling expense 1980235740.95 1705305653.87 Administrative expense 569553555.35 833833985.36 Research and development expenses 609764742.34 579603711.64 Others 379019456.72 236785445.40 Total 3538573495.36 3355528796.27 (3) Items of cash received relating to other investing activities In RMB Yuan 107Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Item Amount for this period Amount for prior period Entrusted loan received 300000000.00 Total 300000000.00 (4) Items of cash paid relating to other investing activities In RMB Yuan Item Amount for this period Amount for prior period Cash transferred out from the loss of 815126333.76 control of the subsidiary Total 815126333.76 (5) Items of cash received relating to other financing activities In RMB Yuan Item Amount for this period Amount for prior period Withdraw for deposit of bill 715239432.26 312220372.75 Total 715239432.26 312220372.75 (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 669560830.95 418351512.95 Others 29669861.07 241289.74 Total 699230692.02 418592802.69 61. 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 5839023367.10 1804981288.95 Add: Impairment provision for assets 252602272.08 199173349.46 Depreciation of fixed assets 1435681140.90 1515838567.70 Right-of-use assets depreciation 16605322.98 12224609.69 Amortization of intangible assets 528117679.23 545011292.13 Amortization of long-term deferred expense 1826783.84 2670879.81 Increase in deferred income (139049041.50) 438381053.36 Disposal income on fixed assets intangible assets and (68244082.28)(601066861.33) others Income of fair value movement (26136888.77) (15734698.73) 108Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Financial expense 17892411.14 26372186.29 Investment income (2354040073.27) (327872465.08) Increase in deferred tax assets (154489446.55) (126334690.62) Decrease in deferred tax liabilities 2262473.67 (2865890.70) Decrease in inventory (244183357.63) 1878025569.26 Decrease in operating payables 1273807337.63 (206172573.97) Increase in operating payables (722465767.08) 12441654173.66 Share-based payments cost 192310900.00 107618400.00 Others 715388.71 6922680.49 Net cash flows from operating activities 5852236420.20 17698826870.37 2．Movement of cash and cash equivalents: Ending balance of cash 51032267488.15 46269403600.01 Less: beginning balance of cash 49517916834.99 30655968057.63 Increase in cash and cash equivalents 1514350653.16 15613435542.38 (2) Cash and cash equivalents In RMB Yuan Item Ending balance Beginning balance I. Cash Including: Cash 6321.16 36881.35 Bank deposits that can be 51032261166.9949517879953.64 readily used II. Ending balance of cash and cash 51032267488.1549517916834.99 equivalents 62. The assets with ownership or right restricted In RMB Yuan Item Ending balance Explanation Cash and cash equivalents 2389515751.70 Acceptance bill deposit Note receivables 8258455824.79 Pledge for issuing bills payable Fixed assets 32955152.32 Collateral to obtain working capital Intangible assets 17033287.44 Collateral to obtain working capital Total 10697960016.25 63. Foreign Monetary Item In RMB Yuan Item Original Currency Exchange Rate Translated to RMB Cash Including: USD 70006606.27 6.7114 469842337.32 GBP 27395650.46 7.0084 191999676.68 EUR 7877112.64 8.1365 64092127.00 JPY 160087076.00 0.0491 7860275.43 RUB 88621924.78 0.1285 11387917.33 109Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report BRL 572874.98 1.2825 734712.16 THB 4436622.85 0.1906 845620.32 INR 2411981.46 0.0852 205500.82 AED 1.44 1.8275 2.63 Accounts receivable Including: USD 62765596.93 6.7114 421245027.24 EUR 81481822.52 7.0084 571057204.95 GBP 5805891.60 8.1365 47239637.00 Other receivables Including: USD 93933.61 6.7114 630426.03 EUR 13240524.98 7.0084 92794895.27 GBP 334950.32 8.1365 2725323.28 JPY 12208320.00 0.0491 599428.51 Accounts Payable Including: USD 4883.96 6.7114 32778.21 EUR 16652197.69 7.0084 116705262.29 GBP 109663.79 8.1365 892279.43 Other Payables Including: USD 119620.00 6.7114 802817.67 GBP 313751.00 8.1365 2552835.01 64. 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 132421192.00 143531402.87 Write down: Fixed assets 132421192.00 143531402.87 Intangible assets Government grants related to income 177846131.22 255909824.92 Write down: Operating cost 73489574.95 78668498.38 Operating expenses 964950.11 370369.44 General and administrative expenses 10761122.82 9492897.61 Research and development expenses 92433583.34 167378059.49 Financial income 196900.00 For other government grants refer to notes V 35 and 50.VIII. The change of consolidation scope 1. Business combination not under the Same Control □ Applicable √ Not Applicable 2. Combination under the same control □ Applicable √ Not Applicable 110Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 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 Whether there is a situation of the loss of control over the period of the investment and the loss of control of the subsidiary company through multiple transactions □ Applicable √ Not Applicable 5. Change of consolidation scope due to other reasons (1) Newly established subsidiary companies during the reporting period Nature of Registered capital (ten The total shareholding ratio Company name Registered place business thousand yuan) of the Group Chongqing Xingzhi Technology Chongqing Sale 4900.00 100% Co. Ltd. (2) Subsidiary clearing during the reporting period AVATR. Co. Ltd has changed from the company's holding subsidiary to an associate and is no longer included in the company's consolidated financial statements. The equity method is used for subsequent accounting which has a significant impact on the company.For details please refer to www.cninfo.com.cn (Announcement No.: 2022-29).IX. Stake in other entities 1. Rights in subsidaries The subsidiaries of the Company are as follows： Registered Total proportion of Main operating Company name Registered place Nature of business capital (ten shareholders (%) place thousand) Direct Indirect I. The subsidiary formed by establishment or investment Chongqing Changan International Chongqing Chongqing Sales 1376.00 100.00 - Automobile Sales Co. Ltd.Chongqing Changan Vehicle Networking Technology Co. Chongqing Chongqing Lease 8850.00 100.00 - Ltd.Chongqing Changan Special Automobile Sales Co. Ltd Chongqing Chongqing Sales 2000.00 50.00 - (Note 1) Chongqing Changan Automobile Chongqing Chongqing Sales 3000.00 99.00 1.00 Supporting Service Co. Ltd.Chongqing Changan New Energy Chongqing Chongqing R&D 2900.00 100.00 - Automobile Co. Ltd.Chongqing Changan Europe Turin Italy Turin Italy R&D EUR 1738 100.00 - Design Academy Co. Ltd.Changan United Kingdom R&D Nottingham United Nottingham United R&D GBP 2639 100.00 - Center Co. Ltd. Kingdom Kingdom Beijing Changan R&D Center Beijing Beijing R&D 100.00 100.00 - Co. Ltd.Changan Japan Designing Center Habin Habin R&D JYP1000 100.00 - Co.Ltd 111Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Changan United States R&D Troy United states Troy United states R&D USD154 100.00 - Center Co. Ltd.Changan Automobile Russia Co. RUB Moscow Russia Moscow Russia Sales 100.00 - Ltd. 220382 Changan Brazil Holdings Limited St. Paul Brazil St. Paul Brazil Sales BRL 100 99.00 1.00 Changan Automobile Changan Automobile Changan Automobile Changan Automobile Investment Investment Investment Investment 23789.00100.00 (Shenzhen) Co. Ltd. (Shenzhen) Co. (Shenzhen) Co. (Shenzhen) Co.Ltd. Ltd. Ltd.Nanjing Changan New Energy Automobile Sales & Service Nanjing Nanjing Sales 5000.00 100.00 - Co. Ltd.Chongqing Anyi Automotive Chongqing Chongqing Sales 200.00 100.00 - 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 Chongqing Chongqing Sales 1000.00 100.00 Co. Ltd.Chongqing Changan Kaicheng Automobile Technology Co. Chongqing Chongqing Sales 100000.00 83.64 Ltd.Chongqing Changan Automobile Chongqing Chongqing R&D 9900.00 100.00 Software Technology Co. Ltd.Chongqing Chehemei Technology Chongqing Chongqing Sales 4900.00 100.00 Co. Ltd.II. The subsidiary formed by business combination not under common control Nanjing Changan Automobile Nanjing Nanjing Manufacturing 60181.00 84.73 - Co. Ltd.(Note 2) Chongqing Lingyao Automobile Chongqing Chongqing Manufacturing 133764.00 100.00 - Co. Ltd.III. The subsidiary formed by business combination under common control Hefei Changan Automobile Hefei Hefei Manufacturing 227500.00 100.00 - Co.Ltd.Note 1: The remaining shareholders of Chongqing Changan Special Automobile Co. Ltd. made an agreement with the Company that the remaining shareholders are to vote in accordance with the Company. The main financial and operating policies have been controlled by the Company so it is included in the scope of consolidated financial statements.Note 2: The Company owns 91.53% of voting shares of Nanjing Changan Automobile Co. Ltd. the difference between proportion of voting shares and proportion of shares held is due to the voting right consigned from minority shareholders.As at June 30 2022 the Group has no subsidiaries with important minority interests. 2. Transctions result in change of holdingshare proportion but no effect in control of subsidiaries □ Applicable √ Not applicable 3. Stakes in joint ventures and associates (1) Significant joint ventures or associates Registered Registered Total proportion of Accounting Company name Nature of business place capital (ten shareholders (%) treatment 112Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Main thousand) operating Direct Inderect place I. Joint ventures Changan Ford Manufacture and sale Chongqing Chongqing USD24100 50.00 - Equity Automobile Co. Ltd. ofautomobiles and components Changan Mazda Manufacture and sale Nanjing Nanjing USD11097 47.50 - Equity Automobile Co. Ltd. ofautomobiles and components Changan Mazda Manufacture and sale Engine Co. Ltd. Nanjing Nanjing USD20996 50.00 - Equity ofautomobiles and components (Note 1) Jiangling Investment Manufacture and sale Nanchang Nanchang 100000 50.00 - Equity Co. Ltd. ofautomobiles and components II. Associates Chongqing Changan Develop product and sale of Kuayue Automobile Chongqing Chongqing automobile and components; import 6533.00 34.30 - Equity Co. Ltd. and export goods.Sale of Changan Kuayue’ s Chongqing Changan automobile and agricultural cars and Kuayue Automobile Chongqing Chongqing 300.00 34.30 - Equity components. Technical advisory Sales Co. Ltd.services for automobile Chongqing Changan New Energy Chongqing Chongqing Sales 32810.83 40.6559 - Equity Automobile Technology Co. Ltd.Beijing Fang’an Taxi Beijing Beijing For the car loan business 2897.96 22.24 - Equity Co. Ltd.Provide car loan; provide vehicle loans and operating equipment loans Chongqing Auto to car dealers including the Chongqing Chongqing 476843.10 28.66 - Equity Finance Co. ltd. construction loans of exhibition hallspare parts loans and maintenance equipment loans etc.Hainan Anxinxing Software and hardware technology Chengmai Chengmai Information development technical consulting 3000.00 30.00 - Equity County County Technology Co. Ltd. auto parts sales Car sales leasing software Nanjing Chelai Travel Nanjing Nanjing technology development technical 10000.00 10.00 - Equity Technology Co. Ltd.services Technology development Hunan Guoxin consulting technical services Semiconductor Zhuzhou Zhuzhou 50000.00 25.00 - Equity technology transfer in the field of Technology Co. Ltd.power semiconductors Beijing Wutong Technology development technical Chelian Technology Beijing Beijing consulting technical services 56055.88 - 27.05 Equity Co. Ltd. technology transfer Anhe (Chongqing) Equity Investment Chongqing Chongqing Equity investment management 1260.00 - 23.81 Equity Fund Management Co. Ltd.Hangzhou Chelizi Intelligent Hangzhou Hangzhou Car travel service 630.00 - 20.00 Equity Technology Co. Ltd.Pakistan Master Lahore Lahore Manufacture and sale PKR75000 30.00 Equity Motors Co. Ltd. Pakistan Pakistan ofautomobiles and components Jiangling Holding Manufacture and sale Nanchang Nanchang 200000.00 25.00 - Equity Co. Ltd. ofautomobiles and components Nanjing Leading Equity investment and related Equity Investment Nanjing Nanjing 976000.00 16.39 - Equity services Partnership Nanjing Leading Equity Investment Private equity investment fund Nanjing Nanjing 1000.00 15.00 - Equity Management Co. management and related services Ltd.Zhongqi Chuangzhi Nanjing Nanjing R&D 1600000.00 3.125 - Equity Technology Co. Ltd.Chongqing Changxin Chongqing Chongqing Equity Investment 50200.00 49.80 - Equity 113Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Zhiqi Private Equity Investment Fund Partnership (Limited Partnership) AVATR. Co. Ltd Nanjing Nanjing R&D 117224.26 39.018 Equity (2) Key financial information of significant joint ventures Changan Ford Automobile Co. Ltd. is the important joint venture to the Group and makes great influence in the share of profit and loss in joint venture and associates the Group adopts equity method to deal with the investment to it.The table below shows the financial status of Changan Ford Automobile Co. Ltd. and all the information has been adjusted to eliminate the difference of the accounting policies.In RMB Yuan Beginning balance/Amount for prior Ending balance/Amount for this period period Current assets 14444919999.92 13985198069.48 Including: cash and cash 4673625631.715495088974.00 equivalent Non-current assets 25978566147.38 26699638720.51 40423486147.3040684836789.99 Total assets 25000894365.01 28816791001.00 Non-current liabilities 8398429884.54 5889087187.00 Total liabilities 33399324249.55 34705878188.00 Minority interests - - Equity attributable to owners 7024161897.75 5978958603.00 Net asset owned according to share 3512080948.882989479301.50 proportion Adjustment (54343996.72) (54603257.51) Book value of investment 3457736952.16 2934876043.99 Operating income 23377802470.94 26114465788.42 Financial expenses 228432281.92 252032973.23 Income tax expense 158336533.41 59987347.20 Net profit 1045203295.40 726486736.96 (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 4249902992.19 4332804092.02 Total amount calculated by shareholding proportion --Net profit 340098900.17 374325525.72 --Other comprehensive income --Total comprehensive income 340098900.17 374325525.72 Associates: Total book value of the investment 9596972338.40 5977694724.54 Total amount calculated by shareholding 114Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report proportion --Net profit (784138202.60) (486569024.38) --Other comprehensive income 146228.18 --Total comprehensive income (783991974.42) (486569024.38) (4) Excessive losses incurred by joint ventures or associates As at 30 June 2022 since the Group has no obligation to undertake the extra loss of Chongqing Changan Kuayue Automobile Sales Co. Ltd Beijing Fang’an cresent taxi Co. Ltd. Chongqing Wutong Chelian Technology Co. Ltd and Hainan Anxinxing Information Technology Co. Ltd. When extra loss occurs the Group writes down the long-term investment to zero without recognizing the extra loss.X. Risks associated with financial instruments 1. Classification of financial instruments As at balance sheet day the book values of financial instruments are as follows: Financial assets In RMB Yuan Financial assets Financial assets measured at fair value measured at fair value Financial assets and whose changes and whose changes are 2022.6.30 measured at amortized Total are recorded in the recorded in Other cost current profit and loss comprehensive income (standard required) (specified) Cash 53421783239.85 53421783239.85 Financial assets for 305967574.57305967574.57 trading Notes receivable 21178905132.66 21178905132.66 Accounts receivable 3597002110.54 3597002110.54 Other receivables 509614847.86 509614847.86 Other current assets 9626784.09 9626784.09 Investment in other 701409600.00701409600.00 equity instrument Total 305967574.57 78716932115.00 701409600.00 79724309289.57 In RMB Yuan Financial assets Financial assets measured measured at fair value Financial assets at fair value and whose and whose changes are 2021.12.31 measured at amortized changes are recorded in Total recorded in the current cost Other comprehensive profit and loss income (specified) (standard required) Cash 51976242149.37 51976242149.37 Financial assets for 195798300.00195798300.00 trading Notes receivable 24267633416.65 24267633416.65 Accounts receivable 1675427534.87 1675427534.87 Other receivables 632122942.37 632122942.37 Other current assets 3723435.08 3723435.08 115Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Investment in other 701409600.00701409600.00 equity instrument Total 195798300.00 78555149478.34 701409600.00 79452357378.34 Financial liabilities In RMB Yuan 2022.6.302021.12.31 Short-term loans 46166500.00 19000000.00 Notes payable 26921406502.22 24292268371.12 Accounts payable 23994999761.80 23650604870.98 Other payables 5116328239.99 4562626344.69 Non-current liabilities due within 1 year 887576604.11 533839583.57 Long-term loan 40000000.00 600000000.00 Lease liabilities 28202020.25 38679735.59 Long-term payables 467780397.91 642513537.69 Total 57502460026.28 54339532443.64 2. Transfer of financial assets The transferred financial assets that entirely derecognized but continuing involved As at June 30 2022 the book value of the bank acceptance bill that the Group has endorsed to the supplier to settle accounts payable is RMB 1854716065.23 (December 31 2021: RMB 2391567055.84). On June 30 2022 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 2022 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 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.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 116Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 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.With respect to credit risk arising from the other financial assets of the Group which comprise accounts receivable other receivables dividend receivables and certain derivatives financial instruments the Group’s exposure to credit risk arising from default of the counterparty with a maximum exposure equal to the carrying amount of these instruments listed as book value of financial assets in consolidated financial statements. In 2021 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. 56.55% of the Group's accounts receivable (December 31 2021: 48.92%) 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 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: 117Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report * 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 2022 the Group’s loans 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 2022 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/(decrease) in investments value equity 2022.6.30 Shanghai- Equity investment included in financial 12873724. assets at 302911174.57 5% 92 fair value through profit or loss Shanghai- Equity investment included in financial (1287372 assets at 302911174.57 -5% 4.92) fair value through profit or loss 2021.12.31 Shanghai- Equity investment included in financial 177902700.005% assets at 7560864.75 118Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report fair value through profit or loss Shanghai- Equity investment included in financial assets at (7560864. 177902700.00 -5% 75) 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 2021 and 30 June 2022.The Group’s leverage ratio on the balance sheet date is as follows: June 30 2022 December 31 2021 Leverage ratio 56.19% 58.74% XI. Disclosure of fair value 1. Assets and liabilities measured at fair value June 30 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 Equity instrument investment 133511100.00 169400074.57 302911174.57 Derivative financial assets 3056400.00 3056400.00 Other equity instruments 701409600.00 701409600.00 Total 133511100.00 169400074.57 704466000.00 1007377174.57 December 31 2021 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 Equity instrument investment 177902700.00 177902700.00 Derivative financial assets 17895600.00 17895600.00 Other equity instruments 701409600.00 701409600.00 Total 177902700.00 719305200.00 897207900.00 119Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 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 31 December 2021 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 instruments use a series of valuation models to estimate the fair value and the assumptions used are not supported by observable market prices or interest rates. 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 Comparable transaction value multiplier / Post-tax 2022.6.30 701409600.00 Market approach/ Income approach discount rate Comparable transaction value multiplier / Post-tax 2021.12.31 701409600.00 Market approach/ Income approach discount rate Financial asset held for trading-Others 2022.6.30 3056400.00 Expected yield as per the contract Expected yield contained in the contract 2021.12.31 17895600.00 Expected yield as per the contract Expected yield contained in the contract XII. Related party relationships and transactions 1. Parent company of the Company Proportion of Proportion of Place of Parent company Nature of the business Registered capital shares in the voting rights in the registration Company (%) company (%) China Changan Manufacture and sale of Automobile Group Beijing automobiles engine and 6092273400.00 20.80% 20.80% Co Ltd. components The Final controlling party is China South Industries Group corporation 2. Subsidiaries See subsidiaries in IX（1）. Stake in other entities. 120Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 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 Tsingshan Industrial Co. Ltd. Controlled by the same ultimate holding company Anhui Wanyou Automobile Sales Service Co. Ltd. Controlled by the same ultimate holding company Bazhong Wanyou Auto Sales & Service Co. Ltd. Controlled by the same ultimate holding company Chengdu Huachuan Electric Equipment Co. Ltd. Controlled by the same ultimate holding company Chengdu Wanyou Trading Co. Ltd. Controlled by the same ultimate holding company Chengdu Wanyou Auto Sales and Service co.Ltd. Controlled by the same ultimate holding company Chengdu Wanyou Auto Trade Service Co. Ltd. Controlled by the same ultimate holding company Chengdu Wanyou Xiangyu Auto Sales and Service Co. Ltd. Controlled by the same ultimate holding company Guizhou Wanyou Auto Sales and Service Co. Ltd. Controlled by the same ultimate holding company Harbin Dongan Auto Engine Co. Ltd. Controlled by the same ultimate holding company Harbin Dongan Automotive Engine Manufacturing Co. Ltd. Controlled by the same ultimate holding company Jiangsu Wanyou Automobile Sales Service Co. Ltd. Controlled by the same ultimate holding company Luzhou Wanyou Automobile Service Co. Ltd. Controlled by the same ultimate holding company Panzhihua Wanyou Auto Sales & Service Co. Ltd. Controlled by the same ultimate holding company Sichuan Jian'an Industrial Co.Ltd. Controlled by the same ultimate holding company Sichuan Ningjiang Shanchuan Machinery Co Ltd. Controlled by the same ultimate holding company Wanyou Automobile Investment Co. Ltd. Controlled by the same ultimate holding company Ya'an Wanyou Auto Sales and Service Co. Ltd. Controlled by the same ultimate holding company Yunnan Wanyou Auto Sales and Service Co. Ltd. Controlled by the same ultimate holding company China South Industries Group Financial Leasing 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 Changan Automobile Group Tianjin Sales Co. Ltd. Controlled by the same ultimate holding company Chongqing Anfu Automobile 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 Wanyou Xingjian Auto 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 Zunda Automobile Sales & Service Co. Ltd. Controlled by the same ultimate holding company Beijing Beiji Mechanical and Electrical Industry Co. Ltd. Controlled by the same ultimate holding company China South Industry Group Finance 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 Lingchuan Vehicle Oil Tank Co. Ltd. Controlled by the same ultimate holding company Chengdu Wanyou Filter Co. Ltd. Controlled by the same ultimate holding company Hubei Huazhong Marelli Automobile Lighting Co. Ltd. Controlled by the same ultimate holding company Hubei Xiaogan Huazhong Automobile Light Co. Ltd. Controlled by the same ultimate holding company Yunnan Xiyi Industries 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 South Industries Group Information Center Co. Ltd. Controlled by the same ultimate holding company Chongqing Dajiang Jiexin Forging Co. Ltd. Controlled by the same ultimate holding company Chongqing Jianshe Automobile Air-conditioner Co. Ltd. Controlled by the same ultimate holding company Chongqing construction industry (Group) Co. Ltd Controlled by the same ultimate holding company Chongqing Construction Tongda Industrial Co. Ltd. Controlled by the same ultimate holding company 121Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Related parties Relationship Chongqing Shangfang Automobile Fittings Co. Ltd. Controlled by the same ultimate holding company Chongqing Qingshan Transmission Sales Co. Ltd. Controlled by the same ultimate holding company Chongqing Changfeng Jiquan Machinery Co. Ltd. Controlled by the same ultimate holding company Chongqing Chang'an industry (Group) Co. Ltd Controlled by the same ultimate holding company Chongqing Changan Property Management Co. Ltd. Controlled by the same ultimate holding company Chongqing Changan Construction Co. Ltd. Controlled by the same ultimate holding company Chongqing Changan Intelligent Industrial Technology Service Co. Ltd. Controlled by the same ultimate holding company Chongqing Pingshan Tk Carburetor Co. Ltd. Controlled by the same ultimate holding company Longchang Shanchuan Precision Welded Tube Co. Ltd. Controlled by the same ultimate holding company Chongqing Changrong Machinery Co. Ltd. Controlled by the same ultimate holding company Chongqing Yihong Engineering Plastic Products Co. Ltd. Controlled by the same ultimate holding company Yunnan Wanxing Auto Sales Service Co. Ltd. Controlled by the same ultimate holding company Chongqing Qingshan transmission branch of China Chang'an Automobile Controlled by the same ultimate holding company Group Co. Ltd Hunan Tianyan Machinery Co. Ltd Controlled by the same ultimate holding company Chongqing Changan Minsheng Dingjie Logistics Co.Ltd. Controlled by the same ultimate holding company Southwest Ordnance Industry Chongqing Environmental Protection Controlled by the same ultimate holding company Research Institute Co. Ltd.China Ordnance News Agency Controlled by the same ultimate holding company Chongqing Wanyou Advertising Co.Ltd. Controlled by the same ultimate holding company Chongqing Jialing Yimin Special Equipment Co. Ltd. Controlled by the same ultimate holding company Chongqing Xiyi Automobile Connecting Rod Co. Ltd. Controlled by the same ultimate holding company Chongqing Jianshe Mechanical & Electrical Equipment Co. Ltd. Controlled by the same ultimate holding company Chongqing Dajiang Xinda Vehicles Shares Co. Ltd. Controlled by the same ultimate holding company Chengdu Lingchuan Special Industry Co. Ltd. Controlled by the same ultimate holding company Chongqing Automobile Air-conditioner Co. Ltd. Controlled by the same ultimate holding company Chongqing Changjiang Electrician Industry Group Co.Ltd. Controlled by the same ultimate holding company Guangxi Wanyou Auto Sales and Service Co. Ltd. Controlled by the same ultimate holding company Ya'an Changan Affordable Housing Construction Co. Ltd. Controlled by the same ultimate holding company SIAMC Management Co. Ltd. Controlled by the same ultimate holding company Hunan Tianyan Machinery Co. Ltd Participated by the Ultimate holding company CDGM Tanaka Environmental Catalyst Co.Ltd. Participated by the Ultimate holding company Hafei Motor Co. Ltd. Participated by the Ultimate holding company Chengdu Ningjiang Zhaohe Automobile Components Co. Ltd. Participated by the Ultimate holding company Southern Fojiya Auto Parts Co. Ltd. Participated by the Ultimate holding company South Tianhe Chassis System Co. Ltd. Participated by the Ultimate holding company South Inter Air-conditioner Co.Ltd. Participated by the Ultimate holding company Chongqing Chang'an Minsheng Boyu Logistics Co. Ltd. Participated by the Ultimate holding company Chongqing Changan Minsheng Logistics Co. Ltd. Participated by the Ultimate holding company Chongqing Dajiang Yuqiang Plastic Co. Ltd. Participated by the Ultimate holding company Chongqing Nexteer Steering System Co.Ltd. Participated by the Ultimate holding company Beijing Zhongbing Insurance Brokerage Co. Ltd. Participated by the Ultimate holding company Lear Chang'an (Chongqing) Automotive System Co. Ltd Participated by the Ultimate holding company United Automotive Electronics (Chongqing) Co. Ltd Participated by the Ultimate holding company Nattiefu transmission system (Chongqing) Co. Ltd Participated by the Ultimate holding company Tiannak Lingchuan (Chongqing) exhaust system Co. Ltd Participated by the Ultimate holding company Changan Laisi (Chongqing) robot intelligent equipment Co. Ltd Participated by the Ultimate holding company 122Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Related parties Relationship Chongqing Dajiang Tongyang Plastics Co. Ltd. Participated by the Ultimate holding company Chongqing Dajiang Guoli Precision Machinery Manufacturing Co. Ltd. Participated by the Ultimate holding company Dajiang Yapp Automotive Systems Co. Ltd. Participated by the Ultimate holding company Chongqing Hanon Jianshe Automotive Thermal Systems Co. Ltd. Participated by the Ultimate holding company Chongqing Lingchuan Auto Parts Manufacturing Technology Co. Ltd. Participated by the Ultimate holding company Beijing Wutong Chelian Technology Co. Ltd. Companies in which the company participates Nanjing LingHang Technology Co. Ltd. Companies in which the company participates Ald Fortune Auto Leasing & Renting (Shanghai) 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 the Current amount Approved Whether it Prior-period transaction transaction exceeds amount amount the transaction amount Procurement of No Changan Ford Automobile Co. Ltd. 33177.65 1921855.70 186186.55 parts Jiangling Holdings Co. Ltd. Accept labor 585345.00 - Y es 737706.14 Changan Auto Finance Co. Ltd. Accept labor 154563517.61 123988448.87 Yes 8153781.57 Hangzhou Chelizi Intelligent Procurement of No -3750000.00- Technology Co. Ltd. parts Purchasing parts No Chongqing Changan New Energy and accepting 716672719.94 3011467834.39 82033905.11 Vehicles Technology Co. Ltd.labor services Purchasing parts No Beijing Wutong Chelian Technology and accepting 67885814.09 199395069.81 38062628.50 Co. Ltd.labor services China Changan Automobile Group No Accept labor - 180000.00 60000.00 Co. Ltd.Chongqing Qingshan transmission No Procurement of branch of China Chang'an Automobile - 928269.34 - parts Group Co. Ltd.Anhui Wanyou Automobile Sales No Accept labor 2284126.26 3758297.12 626024.86 Service Co. Ltd.Bazhong Wanyou Auto Sales & No Accept labor - 111000.00 73330.36 Service Co. Ltd.Chengdu Huachuan Electric Procurement of No 201518601.15805483679.59227227857.41 Equipment Co. Ltd. parts Chengdu Ningjiang Zhaohe Procurement of No 7248464.81148609447.2239951396.48 Automobile Components Co. Ltd. parts Chengdu Wanyou Trading Co. Ltd. Accept labor 22527.44 58417.52 No 12164.16 Chengdu Wanyou Auto Sales and Yes Accept labor 368483.54 281414.61 - Service co.Ltd.Chengdu Wanyou Auto Trade Service No Accept labor 5421148.49 11584348.61 3584234.21 Co. Ltd. 123Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Related parties Nature of the Current amount Approved Whether it Prior-period transaction transaction exceeds amount amount the transaction amount Chengdu Wanyou Xiangyu Auto Sales No Accept labor 6376107.26 15596129.17 5262969.51 and Service Co. Ltd.Guizhou Wanyou Auto Sales and No Accept labor 6881968.71 20824040.79 6240583.45 Service Co. Ltd.Purchasing parts No Harbin Dongan Auto Engine Co. Ltd. and accepting 263267944.07 1231859413.46 417231892.67 labor services Purchasing parts No Harbin Dongan Automotive Engine and accepting 653853009.25 2527626318.31 855901689.16 Manufacturing Co. Ltd.labor services Procurement of No Hunan Tianyan Machinery Co. Ltd 2617013.13 124012774.49 52452744.77 parts Jiangsu Wanyou Automobile Sales No Accept labor 2015418.16 3553700.27 651038.61 Service Co. Ltd.Luzhou Wanyou Automobile Service No Accept labor 307508.81 1079823.97 380083.72 Co. Ltd.Procurement of No Southern Fojiya Auto Parts Co. Ltd. 252639803.32 1000969656.80 280222308.44 parts Procurement of No South Tianhe Chassis System Co. Ltd. 459025340.96 1950314552.53 486779984.60 parts Procurement of No South Inter Air-conditioner Co.Ltd. 202161276.20 863478799.74 200511859.90 parts Panzhihua Wanyou Auto Sales & No Accept labor 257324.00 771827.92 263159.87 Service Co. Ltd.Purchasing parts No Sichuan Jian'an Industrial Co.Ltd. and accepting 534985354.14 1645997268.09 483719852.19 labor services Sichuan Ningjiang Shanchuan Procurement of No 159762835.80560841224.45171000224.81 Machinery Co Ltd. parts Ya'an Wanyou Auto Sales and Service No Accept labor 846681.30 2612656.06 908456.37 Co. Ltd.Yunnan Wanyou Auto Sales and No Accept labor 13728699.67 31476537.76 10743446.13 Service Co. Ltd.Yunnan Wanxing Auto Sales Service No Accept labor 92971.05 1839395.79 132323.01 Co. Ltd.China Changan Automobile Group No Accept labor - 1794366.59 951991.17 Hefei Investment Co. Ltd.China Changan Automobile Group No Accept labor 692160.09 3014067.66 111409.95 Tianjin Sales Co. Ltd.Purchasing parts No Chongqing Tsingshan Industrial Co.and accepting 3637088928.81 11430694983.63 2700637434.06 Ltd.labor services Chongqing Wanyou Ducheng Auto No Accept labor 2584670.89 5504274.33 1721447.53 Sales Service Co. Ltd.Chongqing Wanyou Xingjian Auto No Accept labor 716753.30 3916714.79 1092633.98 Sales & Service Co. Ltd.Purchasing parts No Chongqing Wanyou Economic and accepting 40779608.17 1009788555.92 369796951.53 Development Co. Ltd.labor services Chongqing Wanyou Zunda Procurement of Yes 114.95-- Automobile Sales & Service Co. Ltd. parts 124Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Related parties Nature of the Current amount Approved Whether it Prior-period transaction transaction exceeds amount amount the transaction amount Chongqing Chang'an Minsheng Boyu No Logistics cost - 71441.28 - Logistics Co. Ltd.Purchasing parts No Chongqing Changan Minsheng and accepting 1760470945.02 6545621081.26 1388787441.14 Logistics Co. Ltd.labor services Beijing Beiji Mechanical and Procurement of Yes 18410.186092.982086.86 Electrical Industry Co. Ltd. parts Chengdu Jialing Huaxi Optical & Procurement of No 1538164.7117353897.326216741.79 Precision Machinery Co. Ltd. parts Purchasing parts No Chengdu Lingchuan Vehicle Oil Tank and accepting 18148367.15 67178945.71 17816531.05 Co. Ltd.labor services Procurement of No Chengdu Wanyou Filter Co. Ltd. 76561417.56 252486835.70 84479587.54 parts Hubei Huazhong Marelli Automobile Procurement of No 473880131.142221189276.10465100075.04 Lighting Co. Ltd. parts Hubei Xiaogan Huazhong Automobile Procurement of No 51876744.41202976991.9061893517.73 Light Co. Ltd. parts Procurement of No Yunnan Xiyi Industries Co. Ltd. 53637731.83 204846321.43 59269771.21 parts China South Industries Group No Accept labor - 42000.00 - Information Center Co. Ltd.Chongqing Dajiang Jiexin Forging Procurement of No 1845245.2710924319.903022294.47 Co. Ltd. parts Chongqing Dajiang Yuqiang Plastic Procurement of No 344226.0177509963.4888514947.10 Co. Ltd. parts Chongqing Jianshe Automobile Air- Procurement of No 38555506.77306037760.69105174591.95 conditioner Co. Ltd. parts Chongqing construction industry Procurement of No 726973.627075684.69780297.42 (Group) Co. Ltd parts Chongqing Construction Tongda Procurement of No 16331004.8484644649.6519335699.51 Industrial Co. Ltd. parts Chongqing Nexteer Steering System Procurement of No 400416384.731701967636.08378981317.38 Co.Ltd. parts Chongqing Shangfang Automobile Procurement of No 52075600.58198487628.7051123910.13 Fittings Co. Ltd. parts Chongqing Qingshan Transmission Procurement of No 18687536.6036131038.2910226693.15 Sales Co. Ltd. parts Chongqing Yihong Engineering Procurement of No 14407672.8745640634.478668811.99 Plastic Products Co. Ltd. parts Chongqing Changfeng Jiquan Procurement of No -10881.36- Machinery Co. Ltd. parts Chongqing Chang'an industry (Group) No Accept labor 6341330.87 196627170.00 4811062.11 Co. Ltd Chongqing Changan Property No Accept labor 1928927.46 6265367.91 1911249.38 Management Co. Ltd.Purchasing parts No Beijing Zhongbing Insurance and accepting 45762.00 285274.84 5554.42 Brokerage Co. Ltd.labor services Lear Chang'an (Chongqing) Procurement of No 229595709.771000861210.19297535098.14 Automotive System Co. Ltd parts 125Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Related parties Nature of the Current amount Approved Whether it Prior-period transaction transaction exceeds amount amount the transaction amount United Automotive Electronics Purchasing parts No (Chongqing) Co. Ltd and accepting 411241559.03 958944741.07 237298829.56 labor services Nattiefu transmission system Procurement of No 210241479.79715778771.46192065903.94 (Chongqing) Co. Ltd parts Nanjing LingHang Technology Co. Purchasing parts No Ltd. and accepting 304110.83 600000.00 - labor services Tiannak Lingchuan (Chongqing) Purchasing parts No exhaust system Co. Ltd and accepting 30942900.59 80962093.44 29000980.23 labor services Changan Laisi (Chongqing) robot Procurement of No -34390957.65601568.93 intelligent equipment Co. Ltd parts Chongqing Dajiang Tongyang Procurement of No 191978923.57541885026.384831358.42 Plastics Co. Ltd. parts Chongqing Dajiang Guoli Precision Procurement of No 167524798.04635843953.00135836367.95 Machinery Manufacturing Co. Ltd. parts Dajiang Yapp Automotive Systems Procurement of No 167401222.48714950383.10176074670.02 Co. Ltd. parts Chongqing Hanon Jianshe No Procurement of Automotive Thermal Systems Co. 71943120.72 348601720.25 117174891.64 parts Ltd.Chongqing Lingchuan Auto Parts Procurement of No 67077513.30205879742.2961042625.94 Manufacturing Technology Co. Ltd. parts Chongqing Chang'an Intelligent No Industrial Technology Service Co. Accept labor 513085.15 955650.00 - Ltd Chongqing Changan Minsheng Procurement of No -183402.83- Dingjie Logistics Co.Ltd. parts Chongqing Pingshan Tk Carburetor Procurement of No 113625.19384399.00- Co. Ltd. parts Longchang Shanchuan Precision Procurement of No 16006962.0355926791.60- Welded Tube Co. Ltd. parts Chongqing Changrong Machinery Procurement of No 105095477.66431805778.38108378855.15 Co. Ltd. parts Chongqing Wutong Chelian Yes Accept labor 18867924.00 - - Technology Co. Ltd.Southwest Ordnance Industry Yes Procurement of Chongqing Environmental Protection 643025.04 - - parts Research Institute Co. Ltd.Chongqing Yihong Engineering Procurement of Yes 495852.05-- Plastic Products Co. Ltd. parts China Ordnance News Agency Accept labor 8235.84 - Y es - Chongqing Wanyou Advertising Procurement of Yes 144000.00-- Co.Ltd. parts Ald Fortune Auto Leasing & Renting Procurement of Yes 2081065.28-- (Shanghai) Co. Ltd. parts Total: 12077344092.00 44660420679.68 10563387032.07 Goods sold and services offered In RMB Yuan 126Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Related parties Nature of the transaction Current amount Prior-period Amount Changan Ford Automobile Co. Ltd. Sales of materials and parts 1977509.38 1855571.93 Jiangling Holdings Co. Ltd. Training fee 384888.69 - Changan Automobile Finacing Co. Ltd. Financial service fee 233886141.47 235922452.68 Hainan Anxinxing Information warehouse service charge 28301.89 180405.38 Technology Co. Ltd.Chongqing Changan Kuayue Automobile Sales of engines 35175120.00 25113180.83 Co. Ltd.Chongqing Changan Kuayue Automobile Selling parts 84044.68 - Sales Co. Ltd.Chongqing Changan New Energy Sales of complete vehicles and 941495311.871507513718.25 Vehicles Technology Co. Ltd. parts Anhui Wanyou Automobile Sales Service Sales of complete vehicles and 101714909.8794893670.51 Co. Ltd. parts Chengdu Huachuan Electric Equipment Training fee - 51886.79 Co. Ltd.Chengdu Wanyou Trading Co. Ltd. Sales of materials and parts 8176.99 - Chengdu Wanyou Auto Sales and Service Sales of complete vehicles and 472725.2134563.77 Co.Ltd. parts Chengdu Wanyou Auto Trade Service Sales of complete vehicles and 312041141.75316249425.28 Co. Ltd. parts Chengdu Wanyou Xiangyu Auto Sales Sales of complete vehicles and 699738917.76794544935.13 and Service Co. Ltd. parts Guizhou Wanyou Auto Sales and Service Sales of complete vehicles and 501259585.12588046422.66 Co. Ltd. parts Harbin Dongan Auto Engine Co. Ltd. Sales of materials and parts 1173.0015930.30 maintenance services Harbin Dongan Automotive Engine Sales of materials and parts 24251252.09 31522892.41 Manufacturing Co. Ltd.Jiangsu Wanyou Automobile Sales Sales of complete vehicles and 105718270.77104011720.99 Service Co. Ltd. parts Luzhou Wanyou Automobile Service Co.Sales of materials and parts 450709.55 519692.06 Ltd.Panzhihua Wanyou Auto Sales & Service Sales of materials and parts 383700.50 263050.52 Co. Ltd.Sichuan Ningjiang Shanchuan Machinery Training fee - 51886.79 Co Ltd.Wanyou Automobile Investment Co. Ltd. Sales of complete vehicles 327743125.35 349917081.21 Ya'an Wanyou Auto Sales and Service Sales of complete vehicles and 889767.43655115.77 Co. Ltd. parts Yunnan Wanyou Auto Sales and Service Sales of complete vehicles and 546916400.91671843881.62 Co. Ltd. parts Yunnan Wanxing Auto Sales Service Co. Sales of complete vehicles and 18951586.0846605045.84 Ltd. parts China South Industries Group Financial service charge 7077169.81 47547.17 Leasing Co. Ltd.China Changan Automobile Group Hefei Sales of complete vehicles and -41156064.45 Investment Co. Ltd. parts China Changan Automobile Group Sales of complete vehicles and 113428610.55137135092.41 Tianjin Sales Co. Ltd. parts Chongqing Anfu Automobile Co. Ltd. Sales of complete vehicles and 7775221.226189380.58 parts Chongqing Tsingshan Industrial Co. Ltd. Sales of materials and parts 72087696.68 35512076.07 127Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Related parties Nature of the transaction Current amount Prior-period Amount Chongqing Wanyou Ducheng Auto Sales Sales of materials and parts 1472801.11 1161570.19 Service Co. Ltd.Chongqing Wanyou Xingjian Auto Sales Sales of materials and parts 853360.20 697236.79 & Service Co. Ltd.Chongqing Wanyou Economic Sales of complete vehicles and 924172360.801049808179.31 Development Co. Ltd. parts Chongqing Wanyou Zunda Automobile Sales of materials and parts 319697765.86 206745318.62 Sales & Service Co. Ltd.Chongqing Chang'an Minsheng Boyu Sales of complete vehicles and 23716.9885818614.19 Logistics Co. Ltd. training expenses Chongqing Changan Minsheng Logistics Sales of materials and parts 1018913.85928663.27 Co. Ltd. utilities China South Industry Group Finance Co.Others 550714.07 - Ltd.Chengdu Lingchuan Vehicle Oil Tank Sales of materials and parts 938416.81 938476.80 Co. Ltd.Yunnan Xiyi Industries Co. Ltd. Sales of materials and parts 663752.00 2746914.24 China South Industries Group service charge 44333.22 84853.12 Commercial Factoring Co. Ltd.Chongqing Dajiang Yuqiang Plastic Co.Sales of materials and parts 131400.00 -716798.50 Ltd.Chongqing Jianshe Automobile Air- testing expenses 11946.90 - conditioner Co. Ltd.Chongqing construction industry (Group) Sales of materials and parts 193218.11 171959.13 Co. Ltd Chongqing Nexteer Steering System Sales of materials and parts 1552230.09 - Co.Ltd.Nanjing LingHang Technology Co. Ltd. operating charges 1873252.38 - Ald Fortune Auto Leasing & Renting operating charges 13010318.55 - (Shanghai) Co. Ltd.Tiannak Lingchuan (Chongqing) exhaust Sales of materials and parts 2651092.85 6228241.00 system Co. Ltd Chongqing Dajiang Tongyang Plastics Sales of materials and parts 533842.98 1181692.00 Co. Ltd.Chongqing Dajiang Guoli Precision Outsourcing processing sales 14217387.8510746.64 Machinery Manufacturing Co. Ltd. materials and parts Chongqing Lingchuan Auto Parts Sales of materials and parts 1214708.00 9518232.82 Manufacturing Technology Co. Ltd.Avita Technology (Chongqing) Co. Ltd. Technical commissions 52471011.00 - Pakistan Master Automobile Co. Ltd. Sales of complete vehicles and 686073063.37- parts Total: 6077311065.60 6355176591.02 (2) Related-party leasing Rent assets to related parties In RMB Yuan Lessee Type of leased assets Report period Amount Same period of last period Amount South Inter Air-conditioner Co.Ltd. Vehicle 67752.21 - 128Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Chongqing Changan Industries Group Building 3397373.71 3283373.71 Co. Ltd.Nanjing LingHang Technology Co.Vehicle 63932417.73 45919893.28 Ltd.Ald Fortune Auto Leasing & Renting Vehicle 2696360.42 - (Shanghai) Co. Ltd.Chongqing Changan New Energy Building land and battery 10675075.509829396.15 Vehicles Technology Co. Ltd. Workshop Chongqing Changan Minsheng Building 354900.63 356642.49 Logistics Co. Ltd.Chongqing Wanyou Economic Building and land 321100.92 321100.92 Development Co. Ltd.Total 81444981.12 59710406.55 Rent assets from related parties In RMB Yuan Rent paid Lessor Type of leased assets Same period of last period Report period Amount Amount Chongqing Chang'an Minsheng Land 1730062.80 251047.99 Logistics Co. Ltd (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 8592223.08 Payment of building rental fees 1197968.00 1197968.00 Changan Industries (Group) Co. Ltd Payment of utilities 27574790.98 34902256.18 Others 513677.67 1234867.44 Total 32377532.55 45927314.70 Purchase of project materials In RMB Yuan Same period of last period Related parties Report period Amount Amount Chongqing Chang'an Minsheng Logistics Co. Ltd 8150.95 1266884.27 Changan Laisi (Chongqing) robot intelligent equipment Co. Ltd 7830088.50 5616000.00 Total 7838239.45 6882884.27 Staff expenses for technical supporting 129Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report In RMB Yuan Same period of last period Related parties Report period Amount Amount Chang'an Mazda Automobile Co. Ltd 222474.38 5349433.96 Changan Ford Motor Co. Ltd 7943502.33 8106439.00 Changan Mazda Engine Co. Ltd. 242821.56 - Hainan Anxinxing Information Technology Co. Ltd. 634354.87 - Chongqing Chang'an New Energy Vehicle Technology Co. Ltd - 1223495.73 Chongqing Shangfang Auto Parts Co. Ltd - 53900.00 Total 9043153.14 14733268.69 Techonology development service charges In RMB Yuan Same period of last period Related parties Report period Amount Amount Chongqing Tsingshan Industrial Co. Ltd. - 2558531.66 Collection of trademark use rights fees In RMB Yuan Same period of last period Related parties Report period Amount Amount Chongqing Changan Kuayue Automobile Co. Ltd. 270188.68 - Related party monetary funds In RMB Yuan Related parties Ending Amount Beginning Amount China South Industries Group Finance Co. Ltd 16862815259.42 19652980551.77 Changan Automobile Finance Co. Ltd 10500000000.00 12000000000.00 Total 27362815259.42 31652980551.77 In 2022 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 140466500.00 73300000.00 130Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Interest income of deferred payment In RMB Yuan Related parties Report period Amount Same period of last period Amount Wanyou Automobile Investment Co. Ltd - 15340.71 Chengdu Wanyou Xiangyu Automobile Sales Service -50616.82 Co. Ltd Chengdu Wanyou Automobile Trade Service Co. Ltd - 58781.86 Yunnan Wanyou Automobile Sales Service Co. Ltd - 31071.82 Guizhou Wanyou Automobile Sales Service Co. Ltd - 70417.82 Anhui Wanyou Automobile Sales Service Co. Ltd - 1862.83 Jiangsu Wanyou Automobile Sales Service Co. Ltd - 199.12 Chongqing Wanyou Economic Development Co. Ltd 6588.40 21953.77 China Changan Automobile Group Hefei Investment -- Co. Ltd China Changan Automobile Group Tianjin Sales Co. 2489.29- Ltd.Total 9077.69 250244.75 6. Payment and receivables of related parties (1) Payment receivables of related listed companies In RMB Yuan Ending balance Beginning balance Items Related parties Provision Provision Book balance for bad- Book balance for bad- debts debts Notes Chongqing Chang'an Kuayue Vehicle Co.--13841516.24- receivable Ltd Notes Chongqing Changan Kuayue Automobile 1850000.00-1450000.00- receivable Sales Co. Ltd.Notes Chongqing Changan New Energy Vehicles 875195214.16-1707657373.40- receivable Technology Co. Ltd.Notes Harbin Dongan Automotive Engine 23354574.52-9132765.60- receivable Manufacturing Co. Ltd.Notes Wanyou Automobile Investment Co. Ltd. 1417640000.00-2175240000.00- receivable Notes Chongqing Changan Minsheng Logistics --1895178.03- receivable Co. Ltd.Notes Chongqing Wanyou Economic 15000000.00-25500000.00- receivable Development Co. Ltd.Notes Chengdu Wanyou Auto Trade Service Co. 9700000.00-24800000.00- receivable Ltd.Notes Yunnan Wanyou Auto Sales and Service 24000000.00-47000000.00- receivable Co. Ltd. 131Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Ending balance Beginning balance Items Related parties Provision Provision Book balance for bad- Book balance for bad- debts debts Notes Guizhou Wanyou Auto Sales and Service 3950000.00-5500000.00- receivable Co. Ltd.Notes Chongqing Tsingshan Industrial Co. Ltd. 38121507.00 - 7995373.20 - receivable Subtotal 2408811295.68 - 4020012206.47 - Account Changan Ford Automobile Co. Ltd. 1197831.91 - 27571894.33 - receivable Account Chang'an Mazda Automobile Co. Ltd 10664563.95 - 10443141.10 - receivable Account Chongqing Chang'an Kuayue Vehicle Co. 39757144.90-31600512.92- receivable Ltd Account Chongqing Changan Kuayue Automobile --128646.00- receivable Sales Co. Ltd.Account Changan Auto Finance Co. Ltd. 56057800.00 - 27000000.00 - receivable Account Beijing Fang’an cresent taxi Co. Ltd. 38600000.00 - 38600000.00 - receivable Account Jiangling Holdings Co. Ltd. 39202448.16 - 43263418.79 - receivable Account Chongqing Changan New Energy Vehicles 1677622417.76-664390126.60- receivable Technology Co. Ltd.Account Harbin Dongan Automotive Engine 2114270.93-21179345.59- receivable Manufacturing Co. Ltd.Account Chongqing Chang'an industry (Group) 3640174.57-192632.17- receivable Co. Ltd Account Chongqing Changan Minsheng Logistics 16394639.72-32259206.05- receivable Co. Ltd.Account China South Industries Group 1841.34-1841.34- receivable Commercial Factoring Co. Ltd.Account Tiannak Lingchuan (Chongqing) exhaust 0.03-0.03- receivable system Co. Ltd Account Chongqing Tsingshan Industrial Co. Ltd. 17242386.53 - 15547355.69 - receivable Account Nanjing LingHang Technology Co. Ltd. 19626985.18 - 16622454.93 - receivable Account Pakistan Master Automobile Co. Ltd. 54883729.42 - 70424616.57 - receivable Account Ald Fortune Auto Leasing & Renting 3046887.28--- receivable (Shanghai) Co. Ltd.Account Chongqing Nexteer Steering System 1754020.00--- receivable Co.Ltd.Account Avita Technology (Chongqing) Co. Ltd. 40037966.09 - - receivable Subtotal 2021845107.77 - 999225192.11 - Other Chongqing Changan New Energy --25935000.00- receivable Vehicles Technology Co. Ltd.Other Chongqing Changxin Zhiqi Private Equity receivable Investment Fund Partnership (Limited - - 26670000.00 - Partnership) Other Hafei Automobile Co. Ltd 1500000.00-1500000.00- receivable 132Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Ending balance Beginning balance Items Related parties Provision Provision Book balance for bad- Book balance for bad- debts debts Other Chongqing Chang'an industry (Group) 1157446.69-1157446.69- receivable Co. Ltd Other Chongqing Changan Minsheng Logistics --596131.62- receivable Co. Ltd.Other Nanjing LingHang Technology Co. Ltd. - - 1027352.32 - receivable Other China South Industry Group Finance Co. 143925948.49--- receivable Ltd.Other Changan Mazda Engine Co. Ltd. 41500000.00 - - - receivable Other Changan Auto Finance Co. Ltd. 66943616.44 - - - receivable Other China South Industries Group Financial 411666.67--- receivable Leasing Co. Ltd.Subtotal 255438678.29 - 56885930.63 - Advanced Chongqing Changan New Energy Vehicles 7436914.50-5660917.50- payment Technology Co. Ltd.Advanced Beijing Wutong Chelian Technology Co. 13221118.24-21982556.75- payment Ltd.Advanced Chongqing Nexteer Steering System 50000000.00-50000000.00- payment Co.Ltd.Advanced Chongqing Tsingshan Industrial Co. Ltd. 180000000.00 - 180000000.00 - payment Advanced Chongqing Shangfang Automobile 800000.00--- payment Fittings Co. Ltd.Subtotal 251458032.74 - 257643474.25 - (2) Accounts payable to related parties of listed companies In RMB Yuan Items Related parties Ending balance Beginning balance Chongqing Changan New Energy Vehicles Notes payable 73653575.22 100200000.00 Technology Co. Ltd.Notes payable South Inter Air-conditioner Co.Ltd. 154858407.08 76300000.00 Notes payable South Tianhe Chassis System Co. Ltd. 30657216.00 33896189.65 Notes payable Harbin Dongan Auto Engine Co. Ltd. 84212389.38 144790000.00 Notes payable Harbin Dongan Automotive Engine Manufacturing 317309734.51449050000.00 Co. Ltd.Notes payable Chengdu Ningjiang Zhaohe Automobile Components 2486725.6629530000.00 Co. Ltd.Notes payable Sichuan Ningjiang Shanchuan Machinery Co Ltd. 60891849.56 71204039.75 Notes payable Chongqing Changan Minsheng Logistics Co. Ltd. 127360601.45 293970489.20 Notes payable Chongqing Changan Construction Co. Ltd. - 2417746.00 Notes payable Chongqing Shangfang Automobile Fittings Co. Ltd. 47265458.94 40747850.00 Notes payable Chongqing Yihong Engineering Plastic Products Co. 424778.767990000.00 Ltd.Notes payable Hubei Xiaogan Huazhong Automobile Light Co. Ltd. 23964601.77 15230000.00 133Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Items Related parties Ending balance Beginning balance Chongqing Jianshe Automobile Air-conditioner Co.Notes payable 32477876.11 57320000.00 Ltd.Notes payable Chengdu Wanyou Filter Co. Ltd. 26495575.22 34230000.00 Chengdu Jialing Huaxi Optical & Precision Notes payable 2115044.25 4420000.00 Machinery Co. Ltd.Notes payable Chongqing Dajiang Jiexin Forging Co. Ltd. 1469026.55 2230000.00 Notes payable Chongqing Nexteer Steering System Co.Ltd. 397106194.69 345500000.00 Notes payable Southern Fojiya Auto Parts Co. Ltd. 47407079.65 27690000.00 Notes payable Chongqing Construction Tongda Industrial Co. Ltd. 13920353.98 12789350.84 Hubei Huazhong Marelli Automobile Lighting Co.Notes payable 195194690.27 115860000.00 Ltd.Notes payable Hunan Tianyan Machinery Co. Ltd. - 45800000.00 Tiannak Lingchuan (Chongqing) exhaust system Co.Notes payable 16132743.36 9110000.00 Ltd Notes payable Dajiang Yapp Automotive Systems Co. Ltd. 175796460.18 172180000.00 Chongqing Hanon Jianshe Automotive Thermal Notes payable 60973451.33 83160000.00 Systems Co. Ltd.Notes payable Nattiefu transmission system (Chongqing) Co. Ltd 118628318.58 76420000.00 Notes payable Chongqing Tsingshan Industrial Co. Ltd. 1469914925.37 997630000.00 Notes payable Chongqing Dajiang Tongyang Plastics Co. Ltd. 231237035.40 72710000.00 Chongqing Lingchuan Auto Parts Manufacturing Notes payable 52238938.05 50210000.00 Technology Co. Ltd.Changan Reis (Chongqing) Robotic Intelligent Notes payable 2332739.20 16298837.60 Equipment Co. Ltd.Longchang Shanchuan Precision Welded Tube Co.Notes payable 3168141.59 700000.00 Ltd.Notes payable Sichuan Jian'an Industrial Co.Ltd. 188739.00 - Notes payable Hunan Tianyan Machinery Co. Ltd 2761061.95 - Chongqing Dajiang Guoli Precision Machinery Notes payable 750000.00 - Manufacturing Co. Ltd.Subtotal 3773393733.06 3389584503.04 Account Changan Ford Automobile Co. Ltd. 1876397.28 1943909.28 payable Account Chongqing Chang'an Kuayue Vehicle Co. Ltd 1382.56 5271250.56 payable Account Jiangling Holdings Co. Ltd. - 37578608.85 payable Account Chongqing Changan New Energy Vehicles 569161014.3845785722.56 payable Technology Co. Ltd.Account Beijing Wutong Chelian Technology Co. Ltd. 1890124.42 5798358.99 payable Account Sichuan Jian'an Industrial Co.Ltd. 77788415.77 114453923.31 payable Account South Inter Air-conditioner Co.Ltd. 73709692.40 156165656.54 payable Account South Tianhe Chassis System Co. Ltd. 100903509.05 218042109.95 payable Account Hafei Automobile Co. Ltd 585059.89 949114.25 payable Account Harbin Dongan Auto Engine Co. Ltd. 80984236.14 155019007.24 payable 134Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Items Related parties Ending balance Beginning balance Account Harbin Dongan Automotive Engine Manufacturing 61479413.9279164395.58 payable Co. Ltd.Account Chengdu Huachuan Electric Equipment Co. Ltd. 37181494.47 42505846.09 payable Account Chengdu Ningjiang Zhaohe Automobile Components 2216025.308406255.55 payable Co. Ltd.Account Sichuan Ningjiang Shanchuan Machinery Co Ltd. 20879087.61 24528900.28 payable Account Chongqing Chang'an industry (Group) Co. Ltd 230300.45 601702.05 payable Account Chongqing Changan Minsheng Logistics Co. Ltd. 15738483.05 26921418.99 payable Account Chongqing Shangfang Automobile Fittings Co. Ltd. 13992129.08 26347971.01 payable Account Chengdu Lingchuan Vehicle Oil Tank Co. Ltd. 8136111.93 16297923.33 payable Account Chongqing Yihong Engineering Plastic Products Co. 8402004.461278419.64 payable Ltd.Account Hubei Xiaogan Huazhong Automobile Light Co. Ltd. 14894483.07 22108475.58 payable Account Yunnan Xiyi Industries Co. Ltd. 11932179.26 1815316.79 payable Account Chongqing Jianshe Automobile Air-conditioner Co. 14076145.3022265092.41 payable Ltd.Account Chongqing Wanyou Economic Development Co. Ltd. 5873696.66 3256626.28 payable Account Chengdu Wanyou Filter Co. Ltd. 24009421.78 14085492.47 payable Account Chongqing Dajiang Yuqiang Plastic Co. Ltd. 4817919.08 4627147.80 payable Account Chongqing Changrong Machinery Co. Ltd. 42596502.91 48459589.80 payable Account Chengdu Jialing Huaxi Optical & Precision 223713.101137544.54 payable Machinery Co. Ltd.Account Chongqing Dajiang Jiexin Forging Co. Ltd. 202240.50 103404.61 payable Account Chongqing Jialing Yimin Special Equipment Co. Ltd. 92474.78 104496.50 payable Account Chongqing Nexteer Steering System Co.Ltd. 244007757.31 303819542.94 payable Account Southern Fojiya Auto Parts Co. Ltd. 77443544.95 111176628.27 payable Account Chongqing Wanyou Xingjian Auto Sales & Service 20842.8020842.80 payable Co. Ltd.Account Chongqing Xiyi automobile connecting rod Co. Ltd 34001.89 38422.14 payable Account Chongqing Construction Tongda Industrial Co. Ltd. 9123901.09 16219154.70 payable Account Hubei Huazhong Marelli Automobile Lighting Co. 109758388.95276099169.78 payable Ltd.Account Hunan Tyen Machinery Co. Ltd. - 2083314.54 payable Account Tiannak Lingchuan (Chongqing) exhaust system Co.-8304368.73 payable Ltd 135Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Items Related parties Ending balance Beginning balance Account Chongqing Dajiang Guoli Precision Machinery 5077519.4314889297.76 payable Manufacturing Co. Ltd.Account Dajiang Yapp Automotive Systems Co. Ltd. 106359451.72 130308165.60 payable Account United Automotive Electronics (Chongqing) Co. Ltd 73333178.48 43729758.05 payable Account Chongqing Hanon Jianshe Automotive Thermal 26538929.0922651086.10 payable Systems Co. Ltd.Account Lear Chang'an (Chongqing) Automotive System Co. 47581.9859478481.96 payable Ltd Account Nattiefu transmission system (Chongqing) Co. Ltd 54552553.70 67131433.77 payable Account Chongqing Tsingshan Industrial Co. Ltd. 491172400.35 289136235.05 payable Account Chongqing Dajiang Tongyang Plastics Co. Ltd. 55435639.23 122247111.17 payable Account Chongqing Lingchuan Auto Parts Manufacturing 32841577.7423129987.81 payable Technology Co. Ltd.Account Changan Reis (Chongqing) Robotic Intelligent 14909734.42129036.87 payable Equipment Co. Ltd.Account Chengdu Wanyou Xiangyu Auto Sales and Service 1544.70 payable Co. Ltd.Account Guizhou Wanyou Auto Sales and Service Co. Ltd. - payable Account Chongqing Jianshe Mechanical & Electrical 41828.2447265.91 payable Equipment Co. Ltd.Account Longchang Shanchuan Precision Welded Tube Co. 2617874.562359553.08 payable Ltd.Account CDGM Tanaka Environmental Catalyst Co.Ltd. - 83175.03 payable Account Chongqing Dajiang Xinda Vehicles Shares Co. Ltd. 56251.08 56251.08 payable Account Chongqing Changfeng Jiquan Machinery Co. Ltd. - 1850577.35 payable Account China Changan Automobile Group Co. Ltd. - 14756.94 payable Account Chongqing Qingshan Transmission Sales Co. Ltd. 9814025.62 10260951.97 payable Account Beijing Beiji Mechanical and Electrical Industry Co. 10471.1829268.25 payable Ltd.Account Chengdu Lingchuan Special Industry Co. Ltd. 317173.63 325142.83 payable Account Chongqing Automobile Air-conditioner Co. Ltd. 205041.51 205041.51 payable Account Chongqing Pingshan Tk Carburetor Co. Ltd. 12590.46 70083.18 payable Account Chongqing Jianshe Industry (Group) Co. Ltd. 723638.35 857195.55 payable Account Hangzhou Chelizi Intelligent Technology Co. Ltd. 12350.00 12350.00 payable Account Chongqing Changjiang Electrician Industry Group 8995.09- payable Co.Ltd.Account Chongqing Changan Minsheng Dingjie Logistics 5005.12- payable Co.Ltd. 136Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Items Related parties Ending balance Beginning balance Account Southwest Ordnance Industry Chongqing 726118.30- payable Environmental Protection Research Institute Co. Ltd.Account Hunan Tianyan Machinery Co. Ltd 938809.93 - payable Account Nanchang Jiangling Group Tianren Auto Parts Co. 40473.56 - payable Ltd. Subtotal 2510061308.36 2591788876.25 Contract Changan Mazda Engine Co. Ltd. 3256185.92 3060368.00 liabilities Contract Chongqing Anfu Automobile Co. Ltd. - 73268.00 liabilities Contract Hafei Automobile Co. Ltd 670500.00 670500.00 liabilities Contract China Changan Automobile Group Tianjin Sales Co. 28700026.1337209408.83 liabilities Ltd.Contract Wanyou Automobile Investment Co. Ltd. 19883325.74 68334467.34 liabilities Contract Chongqing Shangfang Automobile Fittings Co. Ltd. 12979.98 12979.98 liabilities Contract Chongqing Wanyou Economic Development Co. Ltd. 127296062.70 269281235.61 liabilities Contract Chengdu Wanyou Auto Trade Service Co. Ltd. 10551862.75 51006262.19 liabilities Contract Yunnan Wanyou Auto Sales and Service Co. Ltd. 45547345.95 101043742.82 liabilities Contract Guizhou Wanyou Auto Sales and Service Co. Ltd. 43657174.14 133567022.54 liabilities Contract Chengdu Wanyou Xiangyu Auto Sales and Service 82528018.07118480778.11 liabilities Co. Ltd.Contract Yunnan Wanxing Auto Sales Service Co. Ltd. - 15033974.67 liabilities Contract Panzhihua Wanyou Auto Sales & Service Co. Ltd. 25444.47 17855.01 liabilities Contract Ya'an Wanyou Auto Sales and Service Co. Ltd. 59061.55 23611.57 liabilities Contract Chongqing Wanyou Ducheng Auto Sales Service Co. 91454.7421566.76 liabilities Ltd.Contract Chongqing Wanyou Xingjian Auto Sales & Service 81681.7568346.03 liabilities Co. Ltd.Contract Luzhou Wanyou Automobile Service Co. Ltd. 33250.36 50528.84 liabilities Contract Chengdu Wanyou Auto Sales and Service co.Ltd. 70485.86 30005.78 liabilities Contract Bazhong Wanyou Auto Sales & Service Co. Ltd. 50426.48 50426.48 liabilities Contract China Changan Automobile Group Hefei Investment 10273.0010273.00 liabilities Co. Ltd.Contract Chongqing Hanon Jianshe Automotive Thermal -147080.20 liabilities Systems Co. Ltd.Contract Jiangling Holdings Co. Ltd. - 6854200.00 liabilities Contract Anhui Wanyou Automobile Sales Service Co. Ltd. 12059637.03 36775197.75 liabilities 137Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Items Related parties Ending balance Beginning balance Contract Jiangsu Wanyou Automobile Sales Service Co. Ltd. 17289631.06 41137071.23 liabilities Contract Chongqing Chang'an Minsheng Boyu Logistics Co. 593181.332646426.62 liabilities Ltd.Contract Guangxi Wanyou Auto Sales and Service Co. Ltd. - 302.40 liabilities Contract Chongqing Wanyou Zunda Automobile Sales & 12497423.1022362432.39 liabilities Service Co. Ltd.Contract Ya'an Changan Affordable Housing Construction Co.-10000.00 liabilities Ltd.Contract Chongqing Chang'an industry (Group) Co. Ltd 114000.00 - liabilities Contract Pakistan Master Automobile Co. Ltd. 13261676.93 - liabilities Contract Chengdu Wanyou Trading Co. Ltd. 11564.00 - liabilities Contract Chongqing Changan Minsheng Logistics Co. Ltd. 37040.33 - liabilities Contract Nanchang Jiangling Group Tianren Auto Parts Co. 6854200.00- liabilities Ltd.Subtotal 425243913.37 907979332.15 Other Chongqing Chang'an Kuayue Vehicle Co. Ltd 163007855.00 163007855.00 payables Other Jiangling Holdings Co. Ltd. - 1182839.61 payables Other Chongqing Changan New Energy Vehicles 699271551.5828204667.10 payables Technology Co. Ltd.Other Sichuan Jian'an Industrial Co.Ltd. 62545.95 709839.37 payables Other Chongqing Anfu Automobile Co. Ltd. 100000.00 200000.00 payables Other South Inter Air-conditioner Co.Ltd. - 425490.20 payables Other South Tianhe Chassis System Co. Ltd. 553186.42 606242.21 payables Other Harbin Dongan Auto Engine Co. Ltd. - 4839.23 payables Other Harbin Dongan Automotive Engine Manufacturing 1180233.021258466.14 payables Co. Ltd.Other Chengdu Huachuan Electric Equipment Co. Ltd. - 356673.20 payables Other Chongqing Chang'an industry (Group) Co. Ltd 899884.90 2010787.85 payables Other Chongqing Changan Minsheng Logistics Co. Ltd. 415254444.97 123243509.52 payables Other Chongqing Changan Construction Co. Ltd. 26375786.10 26391448.08 payables Other Chongqing Changan Property Management Co. Ltd. 1450735.65 1587169.00 payables Other Chongqing Shangfang Automobile Fittings Co. Ltd. 22600.00 3390.00 payables Other Hubei Xiaogan Huazhong Automobile Light Co. Ltd. - 1349.36 payables 138Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Items Related parties Ending balance Beginning balance Other Yunnan Xiyi Industries Co. Ltd. - 25130.48 payables Other Chongqing Wanyou Economic Development Co. Ltd. 122799.84 245798.56 payables Other Chengdu Wanyou Auto Trade Service Co. Ltd. 69894.53 1296988.78 payables Other Chengdu Wanyou Filter Co. Ltd. 153622.59 143553.10 payables Other Yunnan Wanyou Auto Sales and Service Co. Ltd. 136272.10 3756167.26 payables Other Guizhou Wanyou Auto Sales and Service Co. Ltd. 71521.60 828912.03 payables Other Panzhihua Wanyou Auto Sales & Service Co. Ltd. 13141.40 24646.80 payables Other Ya'an Wanyou Auto Sales and Service Co. Ltd. 8309.50 733079.80 payables Other Chongqing Wanyou Ducheng Auto Sales Service Co.-42215.90 payables Ltd.Other Luzhou Wanyou Automobile Service Co. Ltd. 5399.80 4401.62 payables Other Chengdu Wanyou Auto Sales and Service co.Ltd. - 350000.00 payables Other Chongqing Construction Tongda Industrial Co. Ltd. - 21164.90 payables Other Hubei Huazhong Marelli Automobile Lighting Co.-530196.00 payables Ltd.Other Hunan Tyen Machinery Co. Ltd. - 951324.40 payables Other United Automotive Electronics (Chongqing) Co. Ltd 317527.48 263423.01 payables Other Nattiefu transmission system (Chongqing) Co. Ltd 1072449.10 89857.60 payables Other Chongqing Tsingshan Industrial Co. Ltd. 1721008.08 565792.16 payables Other Chongqing Dajiang Tongyang Plastics Co. Ltd. - 1067850.00 payables Other Chongqing Lingchuan Auto Parts Manufacturing 56239.83332961.91 payables Technology Co. Ltd.Other Changan Reis (Chongqing) Robotic Intelligent 517902.0618027403.31 payables Equipment Co. Ltd.Other Chengdu Wanyou Xiangyu Auto Sales and Service -5204000.00 payables Co. Ltd.Other Jiangsu Wanyou Automobile Sales Service Co. Ltd. 548.00 504400.00 payables Other Chongqing Chang'an Intelligent Industrial 1101001.001507567.09 payables Technology Service Co. Ltd Other Chongqing Dajiang Xinda Vehicles Shares Co. Ltd. - 50000.00 payables Other China Changan Automobile Group Co. Ltd. 1000.00 1000.00 payables Other Chengdu Wanyou Trading Co. Ltd. 1795.00 12333.20 payables Other Ald Fortune Auto Leasing & Renting (Shanghai) Co. 9000000.001500000.00 payables Ltd. 139Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Items Related parties Ending balance Beginning balance Other SIAMC Management Co. Ltd. - 253750000.00 payables Other Chongqing Wanyou Zunda Automobile Sales & 950000.00- payables Service Co. Ltd.Other Hunan Tianyan Machinery Co. Ltd 695176.00 - payables Other Chengdu Lingchuan Vehicle Oil Tank Co. Ltd. 10227.70 - payables Other Chongqing Nexteer Steering System Co.Ltd. 316400.00 - payables Other Chongqing Dajiang Guoli Precision Machinery 423750.00- payables Manufacturing Co. Ltd.Subtotal 1324944809.20 641024733.78 XIII. Share-based payments 1. General information √ Applicable □ Non-applicable Unit: share currency: RMB Total amount of equity instruments granted by the 0.00 company in the current period Total amount of equity instruments exercised by the 0.00 company in the current period Total amount of various equity instruments expired 0.00 in the current period of the company The scope of exercise price of stock options issued by the company at the end of the period and the No remaining term of the contract Restricted shares were granted for the first time in February 2021 the grant The scope of exercise price of other equity price was 6.66 yuan/share (before adjustment) and the remaining term is 44 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 54 months 2. Equity settled share based payment √ Applicable □ Non-applicable In RMB Yuan Determination method of fair value of equity Market price method model calculation instruments on the grant date Basis for determining the number of exercisable Based on the best estimate of the number of exercisable equity instruments the equity instruments relevant expenses and costs are calculated according to the fair value of the equity instruments on the grant date Reasons for significant differences between the No current estimate and the previous estimate Cumulative amount of equity settled share based 460850767.92 payment included in capital reserve Total recognized expenses of equity settled share 192310900.00 based payment in the current period 140Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 3. Cash settled share based payment □ Applicable √ Not applicable 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 2022.6.30 2021.12.31 Capital commitments 8259320378.94 9188776086.05 Investment commitments 1319000000.00 1509000000.00 Total 9578320378.94 10697776086.05 2. Contingencies By June 30 2022 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. 141Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 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. 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 12 and 13.The income related to operating leases are listed as follows: In RMB Yuan Report period Amount Leasehold Income 145340699.18 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) 426395931.18 1 to 2 years (including 2 years) 700674461.93 2 to 3 years (including 3 years) 512269235.96 3 to 4 years (including 3 years) 124012765.96 4 to 5 years (including 3 years) 8836477.17 Over 5 years 27684118.42 Total 1799872990.62 (2) As lessee In RMB Yuan Report period Amount Interest expense of lease liabilities 1957921.01 Short term lease expenses with simplified treatment included in current profit and loss 27691557.40 Lease expense of low value assets with simplified treatment included in current profit and loss 1334969.44 Total cash outflow related to leasing 64511685.33 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 142Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Account receivable age Ending balance Beginning balance Less than 1 year (including 1 year) 6254482878.15 6741369355.22 1 to 2 years (including 2 years) 818651527.87 353774325.51 2 to 3 years (including 3 years) 19917931.12 227529170.91 Over 3 years 323296410.52 711074867.37 Total 7416348747.66 8033747719.01 Minus：Provision (102667294.30) (102237112.42) 7313681453.367931510606.59 (2) Movements of provision for accounts receivable are as follows: In RMB Yuan Report period Amount Items Beginning balance Write- Ending balance Accrual Reversal Others off 2022.6.30102237112.421613021.491182839.61102667294.30 2021.12.3193484241.668752870.76102237112.42 The amount of bad debt provision recovered or reversed in the current period: In RMB Yuan Company name Reversal amount Reversal way Jiangling Holdings Co. Ltd. 1182839.61 Recover money Total 1182839.61 (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 expected loss and provision for bad 6954854852.70 93.78 76456236.54 1.10 6878398616.16 debts Assess bad debt provision for expected credit expected loss 461493894.966.2226211057.765.68435282837.20 according to credit risk characteristics combination Total 7416348747.66 100.00 102667294.30 1.38 7313681453.36 Beginning balance Items Book balance Provision for bad-debts Book value Amount （%） Amount （%） Individual assessment of credit expected loss and provision for bad 7844348937.41 97.64 77639076.15 0.99 7766709861.26 debts Assess bad debt provision for expected credit expected loss 189398781.60 2.36 24598036.27 12.99 164800745.33 according to credit risk 143Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report characteristics combination Total 8033747719.01 100.00 102237112.42 1.27 7931510606.59 2. Other receivables In RMB Yuan Items Ending balance Beginning balance Dividends receivable 255356145.11 Other receivables 140246934.04 1756623581.93 Total 395603079.15 1756623581.93 (1) Dividends receivable In RMB Yuan Items ( or invested units ) Ending balance Beginning balance China South Industry Group Finance Co. Ltd. 143737428.00 China South Industries Group Financial Leasing 411666.67 Co. Ltd.China Automotive Power Battery Research Institute 73034.00 Co. Ltd.Changan Auto Finance Co. Ltd. 66943616.44 Changan Mazda Engine Co. Ltd. 41500000.00 Southwest Securities Co.Ltd. 2690400.00 Total 255356145.11 (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 115234097.54 1745128693.03 1 to 2 years 15575042.47 1413046.51 2 to 3 years 219332.85 497065.04 Over 3 years 16293996.23 16804017.31 Total 147322469.09 1763842821.89 Minus：Provision (7075535.05) (7219239.96) 140246934.041756623581.93 2) Analysis of other receivables by nature is as follows: In RMB Yuan Items Ending balance Beginning balance Energy-saving and new energy subsidy 358470077.96 144Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Prepaid equity investment 526670000.00 Petty cash 37672721.77 21998665.75 Disposal income of assets 3984842.15 Internal transactions 46193815.58 791370940.07 Others 56380396.69 54129056.00 Total 140246934.04 1756623581.93 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 Beginning Items Write- Ending balance balance Accrual Reversal Others off 2022.6.307219239.9659477.10203182.017075535.05 2021.12.317154284.7964955.177219239.96 Among them the amount of bad debt provision reversed or recovered in the current period is important: In RMB Yuan Company name Reversal amount Reversal way Jiangling Holdings Co. Ltd. 203182.01 Recover money Total 203182.01 4) Top five debtors of other receivables are as follows: In RMB Yuan Ending Proportion of total Items Nature of payment Ending balance Aging balance of other receivables (%) provision First place Internal transactions 20677497.16 Within 1 year 14.04 Second place Electricity expense 10815169.74 Within 1 year 7.34 Third place Gas costs 6143019.88 Within 1 year 4.17 Fourth place Margin 3213301.80 1 to 2 years 2.18 Extended insurance Fifth place 3000000.00 Within 1 year 2.04 premiums Total 43848988.58 29.76 5) Other receivables derecognized due to transfer of financial assets As of June 30 2022 the Group had no other receivables derecognized as financial asset transfers (December 31 2021: None). 145Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 3. Long-term equity investment （1） Investment in subsidiaries In RMB Yuan Changes during report period Provisio Ending Balance of Investee Opening Balance reduce n for Ending Balance Addition invest Other reduction provision impairm ment ent Nanjing Changan Automobile Co. Ltd. 422533259.00 422533259.00 Chongqing Changan International Automobile 13068581.0013068581.00 Sales Co. Ltd.Chongqing Changan Automobile Supporting 29700000.0029700000.00 Service Co. Ltd.Chongqing Changan Special Automobile Co. 2500000.002500000.00 Ltd.Chongqing Changan Europe Design Academy 155469913.50155469913.50 Co. Ltd.Chongqing Changan New Energy Automobile -49194195.00 Co. Ltd.Changan United Kingdom R&D Center Co. 250093850.95250093850.95 Ltd.Chongqing Changan Connected Car 88500000.0088500000.00 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. 594949059.30594949059.30 Ltd.Changan Brazil Holdings Limited 2584556.97 2584556.97 Changan Automobile Investment (Shenzhen) 235248871.00 2640640.00 237889511.00 146Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Co. Ltd.Chongqing Anyi Automobile Technical Service 2000000.002000000.00 Co. Ltd.Guangzhou Changan New Energy Automobile 4000000.004000000.00 Co. Ltd.Xiamen Changan New Energy Automobile Co. 2000000.002000000.00 Ltd.Chongqing Chehemei Technology Co. Ltd. 10000000.00 10000000.00 Nanjing Changan New Energy Automobile 50000000.0050000000.00 Sales & Service Co. Ltd.Chongqing Changan Automobile Software 99000000.0099000000.00 Technology Co. Ltd.Chongqing Changan Kaicheng Automobile 977793971.55977793971.55 Technology Co. Ltd.Avatr Technology (Chongqing) Co. Ltd. 153841669.77 （153841669.77） Chongqing Xingzhi Technology Co. Ltd. (Note 1) Total 4892533917.57 2640640.00 （153841669.77） 4741332887.80 49194195.00 Note 1: In May 2022 Chongqing Xingzhi Technology Co. Ltd. was added as a subsidiary. （2） Investment in associates and joint ventures In RMB Yuan Changes during report period Opening Investment Investee Other Other Provision Ending Balance reduce income/loss Dividend of Addition comprehensive changes in for Others Balance investment under equity cash declared income equity impairment method 1. Joint ventures Changan Ford Automobile 2934876043.99522860908.173457736952.16 Co. Ltd.Changan Mazda Automobile 1867086106.67236050510.98(381500000.00)1721636617.65 Co. Ltd.Changan Mazda Engine Co. 835121564.3815784275.65(41500000.00)809405840.03 Ltd. 147Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report Nanchang Jiangling 1630596420.9788264113.541718860534.51 Investment Co. Ltd.Subtotal 7267680136.01 862959808.34 (423000000.00) 7707639944.35 2. Associates Jiangling Holding Co. Ltd. 70492790.08 (41202595.77) 29290194.31 Chongqing Changan Kuayue Automobile Co. 242792196.86 (20594524.55) 222197672.31 Ltd.Changan Automobile 2520349332.44152764747.43(66943616.44)2606170463.43 Finacing Co. Ltd.Chongqing Changan New Energy Vehicles Technology - 1 360000000.00 (953589718.33) 663566110.70 1069976392.37 Co. Ltd.Avatr Technology 871119835.57(82620701.16)146228.18788645362.59 (Chongqing) Co. Ltd. Hainan Anxinxing Information Technology - 368900.00 (368900.00) Co. Ltd.Nanjing Chelai Travel 866888.90(97213.22)769675.68 Technology Co. Ltd.Coresing Semiconductor 25285116.95(552714.09)24732402.86 Technology Co. Ltd.Nanjing Leading Equity Investment Management 1133065.60 (9266.61) 1123798.99 Co. Ltd.Nanjing Leading Equity Investment Partnership 2424143949.52 (42899.72) 2424101049.80 (Limited Partnership) Zhongqi Chuangzhi 190534997.15(9012542.48)181522454.67 Technology Co. Ltd.Chongqing Changxin Zhiqi Private Equity Investment 25007587.62(5754.39)25001833.23 Fund Partnership (Limited Partnership) Subtotal 5500605925.12 2231488735.57 (955332082.89) 146228.18 663566110.70 (66943616.44) 7373531300.24 Total 12768286061.13 2231488735.57 (92372274.55) 146228.18 663566110.70 (489943616.44) 15081171244.59 148Chongqing Changan Automobile Company Limited 2022 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 47015290808.29 39177855123.67 49511486065.29 43920794847.39 Other business 3275009762.83 1737129368.96 3316919115.43 1592749547.20 Total 50290300571.12 40914984492.63 52828405180.72 45513544394.59 5. Investment income In RMB Yuan Items Current amount Prior-period amount Long-term equity investment losses 594000000.00 accounted for by the cost method Long-term equity investment losses (92372274.55)349815853.13 accounted for by the equity method The investment income of financial asset held for trading during its 2690400.00 holding period Dividend income from remaining investments in 144222128.6770204197.65 other equity instruments Gains from the remeasurement of the remaining equity at fair value after 337513868.21 the loss of control Interest income from entrusted loan 8099253.16 Total 986054122.33 428119303.94 Long-term equity investment income under equity method In RMB Yuan Investee Current amount Prior-period amount Changan Ford Automobile Co. Ltd. 522860908.17 362952450.03 Changan Mazda Engine Co. Ltd. 15784275.65 15721810.83 Hainan Anxinxing Information Technology Co. Ltd. (368900.00) (1009343.24) Nanjing Chelai Travel Technology Co. Ltd. (97213.22) (134310.36) Jiangling Holding Co. Ltd. (41202595.77) (48302837.53) Changan Mazda Automobile Co. Ltd. 236050510.98 280357717.64 Chongqing Changan Kuayue Automobile Co. Ltd. (20594524.55) 4994618.02 Changan Automobile Finacing Co. Ltd. 152764747.43 129697153.59 Avatr Technology (Chongqing) Co. Ltd. (82620701.16) Coresing Semiconductor Technology Co. Ltd. (552714.09) (514689.73) Nanchang Jiangling Investment Co. Ltd. 88264113.54 78245997.25 Chongqing Changan New Energy Vehicles Technology Co. (953589718.33) (471341755.14) Ltd.Nanjing Leading Equity Investment Partnership (Limited (42899.72) (33139.50) Partnership) Nanjing Leading Equity Investment Management Co. Ltd. (9266.61) (64190.89) Zhongqi Chuangzhi Technology Co. Ltd. (9012542.48) (753627.84) Chongqing Changxin Zhiqi Private Equity Investment Fund (5754.39) Partnership (Limited Partnership) Total (92372274.55) 349815853.13 149Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 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 68244082.28 Government subsidies counted in current profit and loss (except the government subsidies which are closely related with business events 525001514.96 and given certain amount according to national standards) Interest on late payment of funds charged to non-financial enterprises 12993036.40 In addition to the effective hedging business related to the company's normal business operations the fair value changes in gains and losses 26136888.77 arising from holding trading financial assets Gains from the remeasurement of the remaining equity at fair value 2128305938.85 after the loss of control Other non-operating income and expenses other than the above 49496422.28 Minus:Income tax impact 37348447.66 Minority shareholders' equity impact (after tax) 15317119.44 Total 2757512316.44 -- 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 10.060.600.59 stockholders Net profit belonging to the Company’s common stockholders after deducting non-recurring profit 5.33 0.31 0.31 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 accouting standards (1) Net profit and net asset differences from financial statements by global GAAC and prc GAAC □ Applicable √ Not applicable (2) Net profit and net asset differences from financial statements by GAAC abroad and PRC GAAP □ Applicable √ Not applicable (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 150Chongqing Changan Automobile Company Limited 2022 Semi-Annual Report 4. Others □ Applicable √ Not applicable 151