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
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
“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
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