Chongqing Changan Automobile Company Limited
2024 Semi-annual Report Financial Statements
August 2024The 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 30 June 2024 1 January 2024
Current assets:
Cash 70939136071.24 64871042747.88
Trading financial assets 152668417.66 167519347.29
Notes receivable 33995528463.15 37658391214.01
Accounts receivable 2989231105.41 2411796419.07
Prepayments 582581159.41 287711010.62
Other receivables 455008697.40 894268431.82
Including: dividends receivable 22469320.00
Inventories 13792862498.94 13465847696.93
Contract assets 822694699.90 1442876966.30
Other current assets 2234734568.60 9735453361.32
Total current assets 125964445681.71 130934907195.24
Non-current assets:
Long-term equity investments 14109162499.18 13787391985.47
Investment in other equity instruments 504190082.71 504190082.71
Investment properties 6082647.70 6196003.48
Fixed assets 19515251831.25 19994084908.14
Construction in progress 2294576852.63 1914345359.83
Right-of-use asset 217698854.98 209480676.04
Intangible assets 14317477866.82 15045563649.79
Development expenditure 3295839663.04 2241820556.70
Goodwill 1810730443.16 1810730443.16
Long-term deferred expenses 21185944.41 24162220.06
Deferred tax assets 3410080327.14 3248254057.65
Other non-current assets 1854972231.98 450000000.00
Total non-current assets 61357249245.00 59236219943.03
TOTAL ASSETS 187321694926.71 190171127138.27
Current liabilities:
Short-term loans 54056333.40 30039416.74
Trading financial liabilities 12941513.71 -
Notes payable 40811542603.74 37456669928.07
2Accounts payable 34274539923.58 38289947321.45
Advance receipts 686755.00
Contract liability 5996592698.42 7923792852.77
Payroll payable 3570705685.96 2750661337.26
Taxes payable 865791188.25 1928723907.38
Other payables 5307800744.02 5880882512.97
Non-current liabilities within one year 123760356.87 80077042.88
Other current liabilities 9158544800.54 8897936399.92
Total current liabilities 100176275848.49 103239417474.44
Non-current liabilities:
Long-term loans 36000000.00 72000000.00
Bonds payable 999656603.76 999607547.16
Lease liability 124713350.60 134254398.07
Long-term payables 957892237.43 952446118.57
Long-term payroll payable 27195616.49 30414000.00
Estimated liabilities 7004273980.79 6277041416.79
Deferred Revenue 676551823.49 718840543.52
Deferred tax liabilities 1585558534.51 1566074982.00
Other non-current liabilities 1719954719.90 1497773818.69
Total non-current liabilities 13131796866.97 12248452824.80
Total liabilities 113308072715.46 115487870299.24
Owners’ equity (or Shareholders’ equity):
Share capital 9917289033.00 9917289033.00
Capital reserves 8443323719.70 8251287637.70
Less: treasury shares 228624172.79 382277095.96
Other comprehensive income 200717168.37 118318784.04
Special reserves 94130498.99 54323330.34
Surplus reserves 4276245864.64 4276245864.64
Retained earnings 49037197880.37 49617932431.73
Equity attributable to owners 71740279992.28 71853119985.49
Minority interests 2273342218.97 2830136853.54
Total Owners’ equity (or Shareholders’ equity) 74013622211.25 74683256839.03
Liabilities and owners' equity (or shareholders'
187321694926.71190171127138.27
equity) in total
Legal person: Zhu Huarong Chief financial officer: Zhang Deyong The head of accounting department: Shi Haifeng
2. Balance sheet
In RMB Yuan
Account 30 June 2024 1 January 2024
Current assets:
Cash 43872608287.07 44029520088.62
Trading financial assets 152668417.66 160744733.27
Notes receivable 29239357023.79 33788748503.90
Accounts receivable 13256145398.51 8579504025.23
Prepayments 248679818.62 112547088.73
Other receivables 461694766.87 237247787.26
3Including: dividends receivable 22469320.00 -
Inventories 4642954960.30 5615873258.35
Contract assets 85341261.61 128498871.61
Other current assets 224524115.71 5522797370.57
Total current assets 92183974050.14 98175481727.54
Non-current assets:
Long-term equity investments 19784344631.78 19435450021.37
Investment in other equity instruments 504190082.71 504190082.71
Fixed assets 13319877774.18 13453515476.81
Construction in progress 1544281630.52 1407521918.44
Right-of-use asset 127846115.74 168093468.85
Intangible assets 3274175149.92 3312017680.07
Development expenditure 2531535772.05 2017011508.06
Long-term deferred expenses 18777059.34 21709036.17
Deferred tax assets 2825475532.51 2774652958.37
Other non-current assets 1850000000.00 450000000.00
Total non-current assets 45780503748.75 43544162150.85
TOTAL ASSETS 137964477798.89 141719643878.39
Current liabilities:
Notes payable 27067980763.07 25950782831.24
Accounts payable 22070303341.95 23842258668.42
Contract liability 2949612898.96 4606921633.17
Payroll payable 2560749341.58 1919102689.66
Taxes payable 224754037.01 1300178990.13
Other payables 2871795581.74 3236371408.79
Non-current liabilities within one year 85324798.98 56170742.39
Other current liabilities 6241141829.11 6286218965.50
Total current liabilities 64071662592.40 67198005929.30
Non-current liabilities:
Long-term loans 36000000.00 72000000.00
Bonds payable 999656603.76 999607547.16
Lease liability 79310093.24 117490288.82
Long-term payables 115900337.55 120081551.85
Long-term payroll payable 14676656.79 17659000.00
Estimated liabilities 4623843903.17 4402025046.54
Deferred Revenue 563864707.05 603864707.08
Deferred tax liabilities 195239883.03 197625245.62
Other non-current liabilities 1503921144.12 1287646146.69
Total non-current liabilities 8132413328.71 7817999533.76
Total liabilities 72204075921.11 75016005463.06
Owners’ equity (or Shareholders’ equity):
Share capital 9917289033.00 9917289033.00
Capital reserves 8590735699.46 8406226198.82
Less: treasury shares 228624172.79 382277095.96
Other comprehensive income 168865473.51 169049829.02
Special reserves 42073086.49 19514786.95
4Surplus reserves 4276245864.64 4276245864.64
Retained earnings 42993816893.47 44297589798.86
Total Owners’ equity (or Shareholders’ equity) 65760401877.78 66703638415.33
Liabilities and owners' equity (or shareholders'
137964477798.89141719643878.39
equity) in total
3. Consolidated Income Statement
In RMB Yuan
Account Current Period Prior Period
1.Operating revenue 76722649723.79 65492098869.01
Less: Operating cost 66134307155.12 54790036298.76
Tax and surcharges 2053229071.41 2186174248.99
Operating expenses 3077988414.27 2280397591.19
General and administrative expenses 2426863860.79 2271960408.55
Research and development expenses 2912092313.40 2964604104.48
Financial expenses (549385364.01) (453268104.89)
Interest expense 39521477.44 36814471.44
Interest income 520495393.22 532594819.89
Add: Other income 1442510651.32 657988649.18
Investment income 350711425.33 5023108819.32
Including: Investment income from associates and joint
252582688.73(180436966.53)
venture
Gains from changes in fair value (35024179.42) (23334661.15)
Credit impairment loss 759129.40 (15513488.10)
Asset impairment loss (146269535.60) (397274160.99)
Gain on disposal of assets 4959452.69 366667730.28
2.Operating profit 2285201216.53 7063837210.47
Add: Non-operating income 46291779.69 93295575.81
Less: Non-operating expenses 19101827.75 13498961.02
3.Total profit 2312391168.47 7143633825.26
Less: Income tax expense 65628900.78 176620825.19
4.Net profit 2246762267.69 6967013000.07
Classification by going concern
Net profit from continuing operations 2246762267.69 6967013000.07
Net profit from discontinued operations
Classification by ownership attribution
Net profit attributable to owners 2831743111.82 7652979346.80
Minority interests (584980844.13) (685966346.73)
5.Other comprehensive income net of tax 82398384.33 47734187.34
Net after-tax net of other comprehensive income
82398384.3347734187.34
attributable to the parent company owner
(1) Other comprehensive income that cannot be
2.89
reclassified into profit or loss
Other comprehensive income that cannot be
2.89
converted to profit or loss under the equity method
5(2) Other comprehensive income that will be reclassified
82398381.4447734187.34
into profit or loss
Other comprehensive income that can be
(184358.40)
transferred to profit or loss under the equity method
Foreign currency financial statement translation
82582739.8447734187.34
difference
6.Total comprehensive income 2329160652.02 7014747187.41
Total comprehensive income attributable to owners 2914141496.15 7700713534.14
Total comprehensive income attributable to minority
(584980844.13)(685966346.73)
interest
7.Earnings per share
Basic earnings per share 0.29 0.78
Diluted earnings per share 0.28 0.76
Legal person: Zhu Huarong Chief financial officer: Zhang Deyong The head of accounting department: Shi Haifeng
4. Income Statement
In RMB Yuan
Account Current Period Prior Period
1.Operating revenue 54820842795.87 54376375197.21
Less: Operating cost 49023998757.68 46041110508.89
Tax and surcharges 1250733898.43 1453554280.40
Operating expenses 929133285.59 869903070.69
General and administrative expenses 1732583485.14 1686722665.70
Research and development expenses 1968586574.98 2538873301.65
Financial expenses -333400647.01 -368021413.76
Interest expense 19451693.91 22584078.19
Interest income 362660793.06 399510519.70
Add: Other income 1224353991.64 657920000.00
Investment income 650013874.65 585161578.54
Including: Investment income from associates and
279687665.28-141552078.57
joint venture
Gains from changes in fair value -8076315.61 32897781.54
Credit impairment loss 1991215.03 949935.35
Asset impairment loss -61110316.71 -288325731.15
Gain on disposal of assets 2326113.93 365125023.58
2.Operating profit 2058706003.99 3507961371.50
Add: Non-operating income 27829161.89 81107919.29
Less: Non-operating expenses 11262143.58 11520621.79
3.Total profit 2075273022.30 3577548669.00
Less: Income tax expense -33431735.49 173767038.35
4.Net profit 2108704757.79 3403781630.65
Net profit from continuing operations 2108704757.79 3403781630.65
Net profit from discontinued operations
5.Other comprehensive income net of tax -184355.51
6.Total comprehensive income 2108520402.28 3403781630.65
65. Consolidated cash flow statement
In RMB Yuan
Account Current Period Prior Period
1.Cash flows from operating activities:
Cash received from sale of goods or rendering of services 87402094857.95 73931703144.09
Refunds of taxes 2283448047.92 1199246444.10
Cash received relating to other operating activities 2197893615.37 1753218395.89
Subtotal of cash inflows 91883436521.24 76884167984.08
Cash paid for goods and services 72075595167.36 55650532027.02
Cash paid to and on behalf of employees 5227942331.33 4415366034.62
Cash paid for all types of taxes 6484391928.94 5442991004.83
Cash paid relating to other operating activities 4660406353.08 4419822204.02
Subtotal of cash outflows 88448335780.71 69928711270.49
Net cash flows from operating activities 3435100740.53 6955456713.59
2.Cashflows from investing activities:
Cash received from investment income 1431899.95 1406842.07
Net cash received from disposal of fixed assets intangible
270398351.7135915330.45
assets and other long-term assets
Cash received relating to other investing activities 8070357180.56 6216944276.29
Subtotal of cash inflows 8342187432.22 6254266448.81
Cash paid for acquisition of fixed assets intangible assets and
1198526301.30857592457.14
other long-term assets
Cash paid for acquisition of investments 68253846.00 137000000.00
Cash paid relating to other investing activities 1400000000.00
Subtotal of cash outflows 2666780147.30 994592457.14
Net cash flows from investing activities 5675407284.92 5259673991.67
3.Cash flows from financing activities:
Absorb cash received from investment 30957178.38 35190000.00
Cash received from borrowing 34000000.00 90000000.00
Cash received relating to other financing activities 234346997.19 362339945.61
Subtotal of cash inflows 299304175.57 487529945.61
Cash repayments of borrowings 10000000.00 629000000.00
Cash paid for distribution of dividends or profits and interest
3416455425.296163524.40
expenses
Cash paid relating to other financing activities 181013652.58 418524690.02
Subtotal of cash outflows 3607469077.87 1053688214.42
Net cash flows from financing activities (3308164902.30) (566158268.81)
4.Effect of changes in exchange rate on cash (178545254.43) 13258565.35
5.Net increase in cash and cash equivalents 5623797868.72 11662231001.80
Add: Opening balance of cash and cash equivalents 63925957901.11 52491435047.74
6.Closing balance of cash and cash equivalents 69549755769.83 64153666049.54
6. Cash flow statement
In RMB Yuan
Account Current Period Prior Period
1.Cash flows from operating activities:
7Cash received from sale of goods or rendering of services 57231280855.81 57757311678.85
Cash received relating to other operating activities 727850.00 30303650.49
Cash received relating to other operating activities 1380231417.17 1828991752.50
Subtotal of cash inflows 58612240122.98 59616607081.84
Cash paid for goods and services 49289218463.82 43276597110.68
Cash paid to and on behalf of employees 3276956936.68 2826100179.04
Cash paid for all types of taxes 2785805002.92 3421770360.23
Cash paid relating to other operating activities 3011019964.46 2844007616.91
Subtotal of cash outflows 58363000367.88 52368475266.86
Net cash flows from operating activities 249239755.10 7248131814.98
2.Cashflows from investing activities:
Cash received from investment recovery 298979999.95 1556842.07
Cash received from return on investments 12748015.59 8857134.39
Net cash received from disposal of fixed assets intangible
5550500000.00
assets and other long-term assets
Subtotal of cash inflows 5862228015.54 10413976.46
Cash paid for acquisition of fixed assets intangible assets and
1020364923.37723218813.52
other long-term assets
Cash paid for acquisition of investments 308253846.00 1069135009.18
Subtotal of cash outflows 1490000000.00
Net cash flows from investing activities 2818618769.37 1792353822.70
3.Cash flows from financing activities:
Cash received from borrowings 40000000.00
Subtotal of cash inflows 40000000.00
Cash paid for debt repayment 600000000.00
Cash paid for distribution of dividends or profits and interest
3412863996.513470000.00
expenses
Cash paid relating to other financing activities 40217966.73 32666733.27
Subtotal of cash outflows 3453081963.24 636136733.27
Net cash flows from financing activities (3453081963.24) (596136733.27)
4.Effect of changes in exchange rate on cash
5.Net increase in cash and cash equivalents (160232961.97) 4870055235.47
Add: Opening balance of cash and cash equivalents 44023772482.14 44732418327.28
6.Closing balance of cash and cash equivalents 43863539520.17 49602473562.75
87. Consolidated statement of changes in shareholders’ equity
Current Period
In RMB Yuan
Current period
Equity attributable to owners
Items
Other Minority
Less: Treasury Special Surplus Retained Total equity
Share capital Capital reserves comprehensi interest
shares reserve reserve earnings
ve income
I. At end of last year 9917289033.00 8251287637.70 382277095.96 118318784.04 54323330.34 4276245864.64 49617932431.73 2830136853.54 74683256839.03
II. At beginning of year 9917289033.00 8251287637.70 382277095.96 118318784.04 54323330.34 4276245864.64 49617932431.73 2830136853.54 74683256839.03
III. Changes during the year 192036082.00 (153652923.17) 82398384.33 39807168.65 (580734551.36) (556794634.57) (669634627.78)
1.Total comprehensive
82398384.332831743111.82(584980844.13)2329160652.02
income
2. Capital contributed by
192036082.00(132685226.16)23433418.96348154727.12
owners and capital decreases
(1) Ordinary shares
30960000.0030960000.00
invested by owners
(2) The amount of share-
based payment included in 181288200.00 181288200.00
owner's equity
(3) Others 10747882.00 (132685226.16) (7526581.04) 135906527.12
3. Distribution of profit (20967697.01) (3412477663.18) (3391509966.17)
(1) Distribution to owners (20967697.01) (3412477663.18) (3391509966.17)
4.Internal carry forward of
owner's equity
5. Special reserves 39807168.65 4752790.60 44559959.25
(1) Pick-up in current
63437107.755888705.9969325813.74
period
(2) Used in current period (23629939.10) (1135915.39) (24765854.49)
6.Others
IV. At end of current period 9917289033.00 8443323719.70 228624172.79 200717168.37 94130498.99 4276245864.64 49037197880.37 2273342218.97 74013622211.25
9Prior period
In RMB Yuan
Prior period
Equity attributable to owners
Items
Other Minority
Capital Less: Treasury Special Retained Total equity
Share capital comprehensive Surplus reserve interest
reserves shares reserve earnings
income
I. At end of last year 9921799422.00 8532806685.77 627060416.52 98841615.42 24090898.05 3528137635.53 41379489865.45 90698855.79 62948804561.49
II. At beginning of year 9921799422.00 8532806685.77 627060416.52 98841615.42 24090898.05 3528137635.53 41379489865.45 90698855.79 62948804561.49
III. Changes during the year (2476422.00) (477465238.31) (184193941.80) 47734187.34 29475687.52 5311564478.68 3888515629.87 8981542264.90
1.Total comprehensive
47734187.347652979346.80(685966346.73)7014747187.41
income
2. Capital contributed by
(2476422.00)(477465238.31)(157449592.97)(322492067.34)
owners and capital decreases
(1) The amount of share-
based payment included in
owner's equity
(2) Amount of share based
payment recognized in 187899000.00 187899000.00
owner's equity
(3) Others (2476422.00) (665364238.31) (157449592.97) (510391067.34)
3. Distribution of profit (26744348.83) (2341414868.12) (150000.00) (2314820519.29)
(1) Distribution to owners (26744348.83) (2341414868.12) (150000.00) (2314820519.29)
(2) Others
4.Internal carry forward of
owner's equity
5. Special reserves 29475687.52 29475687.52
(1) Pick-up in current
64708453.3064708453.30
period
(2) Used in current period (35232765.78) (35232765.78)
6.Others 4574631976.60 4574631976.60
IV. At end of current period 9919323000.00 8055341447.46 442866474.72 146575802.76 53566585.57 3528137635.53 46691054344.13 3979214485.66 71930346826.39
108. 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 9917289033.00 8406226198.82 382277095.96 169049829.02 19514786.95 4276245864.64 44297589798.86 66703638415.33
II. At beginning of year 9917289033.00 8406226198.82 382277095.96 169049829.02 19514786.95 4276245864.64 44297589798.86 66703638415.33
III. Changes during the
184509500.64(153652923.17)(184355.51)22558299.54(1303772905.39)(943236537.55)
year
1.Total comprehensive
(184355.51)2108704757.792108520402.28
income
2. Capital contributed by
owners and capital 184509500.64 (132685226.16) 317194726.80
decreases
(1) The amount of
share-based payment 181288200.00 181288200.00
included in owner's equity
(2) Others 3221300.64 (132685226.16) 135906526.80
3. Distribution of profit (20967697.01) (3412477663.18) (3391509966.17)
(1) Distribution to
(20967697.01)(3412477663.18)(3391509966.17)
owners
4.Internal carry forward of
owner's equity
5. Special reserves 22558299.54 22558299.54
(1) Pick-up in current
36217694.1036217694.10
period
(2) Used in current
(13659394.56)(13659394.56)
period
6.Disposal of subsidiaries
IV. At end of current period 9917289033.00 8590735699.46 228624172.79 168865473.51 42073086.49 4276245864.64 42993816893.47 65760401877.78
Prior period
11In RMB Yuan
Prior period
Items Other Less: Treasury
Share capital Capital reserves comprehensiv Special reserve Surplus reserve Retained earnings Total equity
shares
e income
I. At end of last year 9921799422.00 8047195325.61 627060416.52 157416810.63 10285640.79 3528137635.53 39906030604.91 60943805022.95
II. At beginning of year 9921799422.00 8047195325.61 627060416.52 157416810.63 10285640.79 3528137635.53 39906030604.91 60943805022.95
III. Changes during the
(2476422.00)180705090.69(184193941.80)13850533.061062366762.531438639906.08
year
1.Total comprehensive
3403781630.653403781630.65
income
2. Capital contributed by
owners and capital (2476422.00) 180705090.69 (157449592.97) 335678261.66
decreases
(1) The amount of
share-based payment
187899000.00187899000.00
included in owner's
equity
(2) Others (2476422.00) (7193909.31) (157449592.97) 147779261.66
3. Distribution of profit (26744348.83) (2341414868.12) (2314670519.29)
Distribution to
(26744348.83)(2341414868.12)(2314670519.29)
owners
4.Internal carry forward
of owner's equity
5. Special reserves 13850533.06 13850533.06
(1) Pick-up in
32871513.6632871513.66
current period
(2) Used in current
(19020980.60)(19020980.60)
period
6.Disposal of
subsidiaries
IV. At end of current
9919323000.008227900416.30442866474.72157416810.6324136173.853528137635.5340968397367.4462382444929.03
period
12III. CORPORATE INFORMATION
Chongqing Changan Automobile Co. Ltd. (hereinafter referred to as "the Company" or "the Company") is a limited liability company
registered in Chongqing in October 1996. Listed on the Shenzhen Stock Exchange in June 1997. As of June 30th 2024 the total issued
share capital of the Company is 9917289033 shares registered at 260 Jianxin East Road Jiangbei District Chongqing China with an
office address at Building T2 Financial City 2 No. 61 Dongshengmen Road Jiangbei District Chongqing China.The main business activities engaged in by our company include the manufacturing and sales of automobiles (including sedans)
automobile engine series products and supporting components.The parent company of our company is China Changan Automobile Group Co. Ltd. and the ultimate controlling party of our company
is China Ordnance Equipment Group Co. Ltd.IV. BASIS OF PREPARATION
1. Basis of compilation
This financial statement has been prepared in accordance with the "Enterprise Accounting Standards - Basic Standards" issued by the
Ministry of Finance various specific accounting standards application guidelines for enterprise accounting standards interpretations
of enterprise accounting standards and other relevant regulations (hereinafter referred to as "Enterprise Accounting Standards") as
well as the relevant provisions of the "Information Disclosure and Reporting Rules for Companies that Publicly Issue Securities No.
15- General Provisions on Financial Reports" issued by the China Securities Regulatory Commission.
2. Going-concern
The financial statements are presented on a going concern basis.V. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. Statement of compliance with Accounting Standards for Business Enterprises
The financial statements present fairly and fully the financial position of the company on 30th June 2024 and the financial results and
the cash flows in the half year of 2024 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. Accounting treatment methods for mergers of enterprises under the same control and those not under the same control
Business combination involving entities under common control
The assets and liabilities acquired by the merging party in a business merger (including goodwill formed by the ultimate controlling
party's acquisition of the merged party) shall be measured based on the carrying amount of the merged party's assets and liabilities in
the consolidated financial statements of the ultimate controlling party on the merger date. The difference between the book value of
net assets obtained in the merger and the book value of the merger consideration paid (or the total face value of the issued shares) shall
be adjusted to the share premium in the capital reserve. If the share premium in the capital reserve is insufficient to offset the retained
earnings shall be adjusted.Business combination involving entities not under common control
The merger cost is the fair value of the assets liabilities and equity securities issued by the acquirer on the acquisition date to obtain
control of the acquired party. The difference between the merger cost and the fair value of the identifiable net assets acquired from
13the acquired party in the merger is recognized as goodwill; The difference between the merger cost and the fair value of the
identifiable net assets acquired from the acquired party in the merger shall be recognized in the current period's profit and loss. The
identifiable assets liabilities and contingent liabilities acquired from the acquired party in the merger that meet the recognition
criteria shall be measured at fair value on the acquisition date.The directly related expenses incurred for the merger of enterprises shall be included in the current period's profit and loss at the time
of occurrence; The transaction costs of issuing equity securities or debt securities for corporate mergers shall be included in the initial
recognition amount of equity securities or debt securities.
5. Judgment criteria for control and preparation methods for consolidated financial statements
Judgment criteria for control
The consolidation scope of the consolidated financial statements is determined based on control which includes the company and all
its subsidiaries. Control refers to the company having the power over the investee enjoying variable returns through participation in
related activities of the investee and having the ability to use its power over the investee to influence its return amount.Merge Program
Our company regards the entire enterprise group as an accounting entity and prepares consolidated financial statements in accordance
with unified accounting policies reflecting the overall financial condition operating results and cash flows of our enterprise group.The impact of internal transactions between our company and its subsidiaries as well as between subsidiaries themselves sha ll be
offset. If internal transactions indicate impairment losses on related assets the full amount of such losses shall be recognized. If the
accounting policies and accounting periods adopted by the subsidiary are inconsistent with those of the company necessary adjustments
shall be made in accordance with the accounting policies and accounting periods of the company when preparing the consolidated
financial statements.The equity of subsidiary owners current net profit and loss and current comprehensive income belonging to minority shareholders are
separately listed under the equity item net profit item and total comprehensive income item in the consolidated balance sheet. If the
current losses shared by minority shareholders of a subsidiary exceed the balance formed by the minority shareholders' share of the
subsidiary's initial owner's equity the minority shareholders' equity shall be offset.
(1) Add subsidiaries or businesses
During the reporting period if a subsidiary or business is added due to a merger of enterprises under the same control the operating
results and cash flows of the subsidiary or business from the beginning of the current period to the end of the reporting period shall be
included in the consolidated financial statements. At the same time adjustments shall be made to the opening balance of the
consolidated financial statements and relevant items in the comparative statements as if the merged reporting entity had existed since
the time when the ultimate controlling party began to control it.For equity investments held before obtaining control of the investee under the same control due to additional investments or other
reasons the relevant gains and losses other comprehensive income and other changes in net assets recognized between the da te of
acquisition of the original equity and the date when both the acquirer and the investee are under the same control until the merger date
shall be offset against the beginning retained earnings or current period gains and losses during the comparative reporting period.During the reporting period if a subsidiary or business is added due to a merger of enterprises not under the same control the fair value
of identifiable assets liabilities and contingent liabilities determined on the acquisition date shall be included in the consolidated
financial statements from the acquisition date onwards.If it is possible to exercise control over an investee that is not under the same control due to additional investment or other reasons the
equity held in the investee before the purchase date shall be remeasured at its fair value on the purchase date and the difference between
the fair value and its book value shall be included in the current investment income. The equity of the purchased party held before the
purchase date which can be reclassified into profit or loss in the future and other changes in owner's equity accounted for under the
equity method shall be converted into investment income for the current period to which the purchase date belongs.
(2) Disposal of subsidiaries
* General handling method
When control over the investee is lost due to the disposal of some equity investments or other reasons the remaining equity investment s
after disposal shall be remeasured at their fair value on the date of loss of control. The difference between the consideration obtained
from the disposal of equity and the fair value of the remaining equity minus the share of net assets of the original subsidiary that should
be enjoyed continuously from the purchase date or merger date and the sum of goodwill calculated based on the original shareholding
ratio shall be included in the investment income of the current period when control is lost. Other comprehensive income rela ted to
equity investments in existing subsidiaries that can be reclassified into profit or loss in the future as well as changes in other owner's
equity accounted for under the equity method are converted into current investment income upon loss of control.
14* Step by step disposal of subsidiaries
If the equity investment in a subsidiary is disposed of through multiple transactions until control is lost and the terms conditions and
economic impact of each transaction for disposing of the equity investment in the subsidiary meet one or more of the followin g
situations it usually indicates that the multiple transactions are a package deal:
I. These transactions were entered into simultaneously or taking into account their mutual influence;
II. These transactions as a whole are necessary to achieve a complete business outcome;
III. The occurrence of a transaction depends on the occurrence of at least one other transaction;
IV.When viewed alone a transaction may not be economical but when considered together with other transactions it is economical.If each transaction belongs to a package deal it shall be accounted for as a transaction for disposing of a subsidiary and losing control;
Before losing control the difference between the disposal price and the share of net assets of the subsidiary corresponding to the
disposal investment is recognized as other comprehensive income in the consolidated financial statements and is transferred to the
current period's profit or loss upon loss of control.If the various transactions do not belong to a package deal accounting treatment shall be carried out for the partial disposal of equity
investments in subsidiaries without losing control before losing control; When losing control accounting treatment should be carried
out according to the general treatment method for disposing of subsidiaries.
(3) Purchase minority equity of subsidiary
The difference between the long-term equity investment acquired through the purchase of minority equity and the net asset share of
the subsidiary that should be continuously calculated from the date of purchase or merger based on the newly added shareholding ratio
shall be adjusted by adjusting the share premium in the capital reserve in the consolidated balance sheet. If the share premium in the
capital reserve is insufficient to offset the retained earnings shall be adjusted.
(4) Partial disposal of equity investments in subsidiaries without losing control
The difference between the disposal price and the share of net assets of the subsidiary that corresponds to the disposal of long-term
equity investments calculated continuously from the date of purchase or merger shall be adjusted by adjusting the share premium in
the capital reserve in the consolidated balance sheet. If the share premium in the capital reserve is insufficient to offset the retained
earnings shall be adjusted.
6. 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.
7. Foreign currency translation
Foreign currency transactions
Foreign currency transactions use the spot exchange rate on the transaction date as the conversion rate to convert foreign currency
amounts into RMB for accounting purposes.The balance of foreign currency monetary items on the balance sheet date is translated at the spot exchange rate on the balance sheet
date. Any exchange differences arising from this are recognized in the current period's profit or loss except for those related to
foreign currency borrowings for the acquisition and construction of assets that meet capitalization criteria which are treated in
accordance with the principle of capitalizing borrowing costs.Translation of foreign currency financial statements
The asset and liability items in the balance sheet are translated using the spot exchange rate on the balance sheet date; Except for the
"undistributed profits" item all other owner's equity items are converted at the spot exchange rate at the time of occurrence. The
income and expense items in the income statement are converted using the spot exchange rate on the transaction date.When disposing of overseas operations the foreign currency financial statement translation differences related to the overseas
operations shall be transferred from the owner's equity item to the current profit and loss for disposal.
8. Financial instruments
When the company becomes a party to a financial instrument contract it recognizes a financial asset financial liability or equity
instrument. The owner's equity items are transferred to the current period's profit and loss for disposal.
15Classification of financial instruments
Based on the business model of managing financial assets and the contractual cash flow characteristics of financial assets financial
assets are classified at initial recognition as follows: financial assets measured at amortized cost financial assets measured at fair value
with changes in fair value recognized in other comprehensive income and financial assets measured at fair value with changes in fair
value recognized in current profit or loss.Our company classifies financial assets that meet the following conditions and have not been designated as measured at fair value with
changes recognized in current profit or loss as financial assets measured at amortized cost:
- The business model aims to collect contractual cash flows;
- The cash flow of the contract is only for the payment of principal and interest based on the unpaid principal amount.The Company will classify financial assets (debt instruments) that meet the following conditions and have not been designated as
measured at fair value with changes in fair value recognized in current profit or loss as financial assets measured at fair value with
changes in fair value recognized in other comprehensive income:
- The business model aims to both collect contractual cash flows and sell the financial asset;
- The cash flow of the contract is only for the payment of principal and interest based on the unpaid principal amount.For non trading equity instrument investments the Company may irrevocably designate them as financial assets (equity instruments)
measured at fair value with changes recognized in other comprehensive income upon initial recognition. This designation is made on
the basis of a single investment and the related investment meets the definition of an equity instrument from the issuer's perspective.Except for the financial assets measured at amortized cost and measured at fair value with changes in fair value recognized in other
comprehensive income mentioned above the Company classifies all other financial assets as financial assets measured at fair value
with changes in fair value recognized in current profit or loss.Financial liabilities are classified at initial recognition as follows: financial liabilities measured at fair value with changes recognized
in profit or loss and financial liabilities measured at amortized cost.Recognition criteria and measurement methods for financial instruments
(1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include notes receivable accounts receivable other receivables long-term receivables
debt investments etc. They are initially measured at fair value and related transaction costs are included in the initial recognition
amount; Accounts receivable that do not include significant financing components and accounts receivable for which the company has
decided not to consider financing components that do not exceed one year shall be initially measured at the contract transaction price.The interest calculated using the effective interest rate method during the holding period is included in the current period's profit and
loss.When recovering or disposing of the difference between the proceeds obtained and the book value of the financial asset shall be
recognized in the current period's profit and loss.
(2) Financial assets (debt instruments) measured at fair value with changes recognized in other comprehensive income
Financial assets (debt instruments) measured at fair value with changes in fair value recognized in other comprehensive income
including accounts receivable financing other debt investments etc. are initially measured at fair value and related transaction costs
are included in the initial recognition amount. The financial asset is subsequently measured at fair value and changes in fa ir value are
recognized in other comprehensive income except for interest impairment losses or gains and exchange gains or losses calculated
using the effective interest rate method.When terminating recognition the cumulative gains or losses previously recognized in other comprehensive income are transferred
from other comprehensive income and recognized in the current period's profit or loss.
(3) Financial assets (equity instruments) measured at fair value with changes recognized in other comprehensive income
16Financial assets (equity instruments) measured at fair value with changes in fair value recognized in other comprehensive income
including other equity instrument investments are initially measured at fair value and related transaction costs are included in the initial
recognition amount. The financial asset is subsequently measured at fair value and changes in fair value are recognized in other
comprehensive income. The dividends obtained are recognized in the current period's profit and loss.When terminating recognition the cumulative gains or losses previously recognized in other comprehensive income are transferred
from other comprehensive income and recorded in retained earnings.
(4) Financial assets measured at fair value with changes recognized in current profit or loss
Financial assets measured at fair value with changes recognized in current profit or loss include trading financial assets derivative
financial assets other non current financial assets etc. They are initially measured at fair value and related transaction costs are
recognized in current profit or loss. The financial asset is subsequently measured at fair value and changes in fair value are recognized
in the current period's profit or loss.
(5) Financial liabilities measured at fair value with changes recognized in current profit or loss
Financial liabilities measured at fair value with changes recognized in current profit or loss including trading financial liabilit ies
derivative financial liabilities etc. are initially measured at fair value and related transaction costs are recognized in current profit or
loss. The financial liability is subsequently measured at fair value and changes in fair value are recognized in the current period's profit
or loss.When terminating recognition the difference between its book value and the consideration paid is recognized in the current period's
profit or loss.
(6) Financial liabilities measured at amortized cost
Financial liabilities measured at amortized cost include short-term borrowings notes payable accounts payable other payables long-
term borrowings bonds payable and long-term payables which are initially measured at fair value and related transaction costs are
included in the initial recognition amount.The interest calculated using the effective interest rate method during the holding period is included in the current period's profit and
loss.When terminating recognition the difference between the consideration paid and the carrying amount of the financial liability shall be
recognized in the current period's profit or loss.Recognition criteria and measurement methods for derecognition of financial assets and transfer of financial assets
When one of the following conditions is met the company will terminate the recognition of financial assets:
- Termination of contractual rights to receive cash flows from financial assets;
- The financial assets have been transferred and almost all risks and rewards of ownership of the financial assets have been transferred
to the transferee;
- The financial assets have been transferred although the company has neither transferred nor retained almost all the risks and rewards
of ownership of the financial assets it has not retained control over the financial assets.If the Company modifies or renegotiates a contract with a counterparty that constitutes a substantial modification the recognition of
the original financial asset shall be terminated and a new financial asset shall be recognized in accordance with the modified terms.When a financial asset transfer occurs if almost all the risks and rewards of ownership of the financial asset are retained the recognition
of the financial asset shall not be terminated.When determining whether the transfer of financial assets meets the above conditions for termination of recognition of financial assets
the principle of substance over form is adopted.The company divides the transfer of financial assets into overall transfer and partial transfer. If the overall transfer of financial assets
meets the conditions for termination of recognition the difference between the following two amounts shall be recognized in the current
period's profit and loss:
17(1) The book value of the transferred financial assets;
(2) The sum of the consideration received as a result of the transfer and the cumulative amount of fair value changes originally
recognized directly in owner's equity (in the case of financial assets (debt instruments) measured at fair value with changes recognized
in other comprehensive income).If the partial transfer of financial assets meets the termination recognition conditions the overall book value of the transferred financial
assets shall be amortized between the terminated recognition portion and the non terminated recognition portion based on their
respective relative fair values and the difference between the following two amounts shall be recognized in the current period's profit
and loss:
(1) Terminate the book value of the confirmed portion;
(2) The consideration for the derecognized portion is the sum of the amount corresponding to the derecognized portion of the cumulative
fair value changes that were originally directly recognized in owner's equity (in the case of financial assets (debt instruments) that are
measured at fair value and whose changes are recognized in other comprehensive income).If the transfer of financial assets does not meet the termination recognition criteria the financial assets shall continue to be recognized
and the consideration received shall be recognized as a financial liability.Termination of recognition of financial liabilities
If the current obligations of a financial liability have been fully or partially released the recognition of that financial liability or a
portion thereof shall be terminated; If our company signs an agreement with creditors to replace existing financial liabilities by
assuming new financial liabilities and the contract terms of the new financial liabilities are substantially different from those of the
existing financial liabilities we will terminate the recognition of the existing financial liabilities and recognize the new financial
liabilities at the same time.If substantial modifications are made to all or part of the contractual terms of an existing financial liability the recognition of the
existing financial liability or a portion thereof shall be terminated and the modified financial liability shall be recognized as a new
financial liability.When all or part of a financial liability is derecognized the difference between the carrying amount of the derecognized financial
liability and the consideration paid (including non cash assets transferred out or new financial liabilities assumed) is recognized in the
current period's profit or loss.If the company repurchases a portion of its financial liabilities the overall book value of the financial liabilities shall be allocated on
the repurchase date based on the relative fair value of the continuing recognition portion and the derecognized portion. The difference
between the book value allocated to the derecognized portion and the consideration paid (including non cash assets transferred out or
new financial liabilities assumed) is recognized in the current period's profit or loss.Method for determining the fair value of financial assets and financial liabilities
Financial instruments with an active market are determined at fair value based on their quoted prices in the active market. Financial
instruments without an active market are valued using valuation techniques to determine their fair value. In valuation our company
adopts valuation techniques that are applicable in the current situation and supported by sufficient available data and other information
selects input values that are consistent with the asset or liability characteristics considered by market participants in transactions related
to the asset or liability and prioritizes the use of relevant observable input values. Only when the relevant observable input values
cannot be obtained or are not feasible to obtain should unobservable input values be used.Testing and accounting treatment methods for impairment of financial instruments
Our company performs impairment accounting treatment on financial assets measured at amortized cost financial assets measured at
fair value with changes in fair value recognized in other comprehensive income (debt instruments) and financial guarantee contracts
based on expected credit losses.Our company considers reasonable and evidence-based information regarding past events current conditions and predictions of future
economic conditions and uses the risk of default as a weight to calculate the probability weighted amount of the present value of the
difference between the cash flows receivable under the contract and the expected cash flows to be received in order to recognize
expected credit losses.
18For accounts receivable and contract assets formed by transactions regulated by the Accounting Standards for Business Enterprises No.
14- Revenue regardless of whether they contain significant financing components the Company always measures its loss provision at
an amount equivalent to the expected credit loss throughout the entire existence period.For lease receivables arising from transactions regulated by Accounting Standards for Business Enterprises No. 21- Leases the
Company chooses to always measure its loss provision at an amount equivalent to the expected credit loss over the entire dura tion.For other financial instruments the Company evaluates the changes in credit risk of the relevant financial instruments since initial
recognition on each balance sheet date.Our company compares the risk of default of financial instruments on the balance sheet date with the risk of default on the initial
recognition date to determine the relative change in default risk during the expected lifespan of financial instruments in order to assess
whether the credit risk of financial instruments has significantly increased since initial recognition. Usually if the overdue period
exceeds 30 days our company considers that the credit risk of the financial instrument has significantly increased unless there is
conclusive evidence to prove that the credit risk of the financial instrument has not significantly increased since initial recognition.If the credit risk of a financial instrument on the balance sheet date is low the Company considers that the credit risk of the financial
instrument has not significantly increased since initial recognition.If the credit risk of the financial instrument has significantly increased since its initial recognition the Company shall measure its loss
provision based on an amount equivalent to the expected credit loss of the financial instrument throughout its entire life cycle; If the
credit risk of the financial instrument has not significantly increased since initial recognition the Company measures its loss provision
based on an amount equivalent to the expected credit loss of the financial instrument in the next 12 months. The increase or reversal
amount of loss provision resulting from this shall be recognized as impairment loss or gain in the current period's income statement.For financial assets (debt instruments) measured at fair value with changes recognized in other comprehensive income a provision for
losses is recognized in other comprehensive income and impairment losses or gains are recognized in the current period's profit or loss
without reducing the carrying value of the financial asset as shown in the balance sheet.
9. Contract assets
Confirmation methods and standards for contract assets
Our company lists contract assets or contract liabilities in the balance sheet based on the relationship between fulfilling performance
obligations and customer payments. The right of our company to receive consideration for the transfer of goods or provision of services
to customers (subject to factors other than the passage of time) is listed as a contractual asset. The contract assets and contract liabilit ies
under the same contract are presented on a net basis. The unconditional (subject only to the passage of time) right of our company to
collect consideration from customers is separately listed as accounts receivable.Determination method and accounting treatment method for expected credit losses of contract assets
The determination method and accounting treatment method for expected credit losses of contract assets are detailed in Note 8
Financial Instruments.
10. Inventories
Classification and cost of inventory
Inventory classification includes: in transit materials raw materials turnover materials inventory goods work in progress shipped
goods commissioned processing materials etc.Inventory is initially measured at cost which includes procurement costs processing costs and other expenses incurred to bring
inventory to its current location and condition.Valuation method for issuing inventory
Adopt the weighted average method.Inventory system for inventory
Adopting perpetual inventory system.Amortization method for low value consumables and packaging materials
19(1) Low value consumables are sold using a one-time turnover method;
(2) The packaging adopts a one-time resale method.
Recognition criteria and provision method for inventory depreciation reserves
On the balance sheet date inventory should be measured at the lower of cost and net realizable value. When the cost of inventory is
higher than its net realizable value a provision for inventory impairment should be made. Net realizable value refers to the estimated
selling price of inventory in daily activities minus the estimated costs to be incurred until completion estimated sales expenses and
related taxes and fees.The net realizable value of goods inventory directly used for sale such as finished products inventory goods and materials for sale
is determined by subtracting estimated sales expenses and related taxes from the estimated selling price of the inventory in the
normal process of production and operation; The net realizable value of inventory of materials that require processing is determined
by subtracting the estimated costs to be incurred until completion estimated sales expenses and related taxes from the estimated
selling price of the finished products produced during normal production and operation processes; The net realizable value of
inventory held for the purpose of executing sales or service contracts is calculated based on the contract price. If the quantity of
inventory held exceeds the quantity ordered in the sales contract the net realizable value of the excess inventory is calculated based
on the general sales price.After the provision for inventory impairment has been made if the influencing factors that previously reduced the value of inventory
have disappeared resulting in the net realizable value of inventory being higher than its book value it shall be reversed within the
original provision for inventory impairment and the reversed amount shall be included in the current period's profit and loss.
11.Assets held for sale
If the book value of a non current asset is mainly recovered through sale (including exchange of non monetary assets with
commercial substance) rather than continuous use or disposal of the asset it is classified as held for sale.Our company categorizes non current assets or disposal groups that meet the following conditions as held for sale:
(1) According to the convention of selling such assets or disposing of groups in similar transactions they can be sold immediately in
the current situation;
(2) The sale is highly likely to occur as our company has already made a resolution on a sale plan and obtained a definite purchase
commitment. It is expected that the sale will be completed within one year. If the relevant regulations require approval from the
relevant authorities or regulatory departments of our company before it can be sold approval has already been obtained.If non current assets (excluding financial assets deferred tax assets and assets formed by employee compensation) or disposal
groups are classified as held for sale and their book value is higher than the net amount of fair value minus selling expenses the
book value shall be reduced to the net amount of fair value minus selling expenses and the reduced amount shall be recognized as
asset impairment loss and included in the current period's profit and loss. At the same time provision for impairment of held for sale
assets shall be made.
12. Long-term equity investments
Judgment criteria for joint control and significant influence
Joint control refers to the shared control over a certain arrangement in accordance with relevant agreements and the related activities
of the arrangement must be unanimously agreed upon by the parties sharing control rights before making decisions. If our company
and other joint venture partners jointly control the invested entity and have rights to the net assets of the invested entity the invested
entity is our company's joint venture.Significant impact refers to having the power to participate in the financial and operational decisions of the invested entity but not
being able to control or jointly control the formulation of these policies with other parties. If our company is able to exert significant
influence on the invested entity the invested entity is our joint venture.Determination of initial investment cost
(1) Long term equity investments formed by corporate mergers
For long-term equity investments in subsidiaries formed by the merger of enterprises under the same control the initial investment cost
20of the long-term equity investment shall be determined on the merger date based on the share of the book value of the acquired owner's
equity in the final controlling party's consolidated financial statements. The difference between the initial investment cost of long-term
equity investment and the book value of the consideration paid shall be adjusted for the equity premium in the capital reserve; When
the share premium in the capital reserve is insufficient to offset adjust the retained earnings. If it is possible to exercise control over
the invested entity under the same control due to additional investment or other reasons the difference between the initial investment
cost of the long-term equity investment recognized according to the above principles and the book value of the long-term equity
investment before the merger plus the book value of the newly paid consideration for the shares acquired on the merger date shall be
adjusted for the share premium. If the share premium is insufficient to offset it shall be offset against retained earnings.For long-term equity investments in subsidiaries formed by mergers of enterprises not under the same control the initial investment
cost of the long-term equity investment shall be determined based on the merger cost determined on the purchase date. If it is possible
to exercise control over an investee that is not under the same control due to additional investment or other reasons the initial investment
cost shall be the sum of the book value of the equity investment originally held and the cost of the additional investment.
(2) Long term equity investments acquired through means other than corporate mergers
Long term equity investments acquired through cash payment shall have the actual purchase price paid as the initial investment cost.Long term equity investments obtained through the issuance of equity securities shall have the fair value of the issued equity securities
as the initial investment cost.Subsequent measurement and profit and loss recognition methods
(1) Long term equity investments accounted for using the cost method
The long-term equity investment of a company in a subsidiary is accounted for using the cost method unless the investment meets the
condition of being held for sale. The company recognizes current investment income based on the cash dividends or profits declared
but not yet distributed by the investee except for the actual payment of the investment price or consideration at the time of acquisition.
(2) Long term equity investments accounted for using the equity method
Long term equity investments in joint ventures and associates are accounted for using the equity method. If the initial investment cost
is greater than the difference in the fair value share of the identifiable net assets of the investee that should be enjoyed at the time of
investment the initial investment cost of the long-term equity investment shall not be adjusted; The difference between the initial
investment cost and the fair value share of the identifiable net assets of the investee that should be enjoyed at the time of investment
shall be recognized in the current period's profit and loss and the cost of long-term equity investment shall be adjusted accordingly.The company recognizes investment income and other comprehensive income separately based on the share of net profit or loss and
other comprehensive income realized by the invested entity that should be enjoyed or shared and adjusts the book value of long-term
equity investments; Calculate the portion that should be enjoyed based on the profits or cash dividends declared by the invested entity
and correspondingly reduce the book value of long-term equity investments; For other changes in owner's equity of the invested entity
other than net profit or loss other comprehensive income and profit distribution (referred to as "other changes in owner's equity")
adjust the book value of long-term equity investments and include them in owner's equity.When recognizing the share of net profit or loss other comprehensive income and other changes in owner's equity that should be
enjoyed by the investee the fair value of the investee's identifiable net assets at the time of acquisition of the investment shall be used
as the basis and the net profit and other comprehensive income of the investee shall be adjusted in accordance with the company's
accounting policies and accounting periods before recognition.Unrealized internal transaction gains and losses between the company and its affiliated or joint ventures shall be calculated based on
the proportion attributable to the company offset and recognized as investment income on this basis except for assets invested or sold
that constitute business. Unrealized internal transaction losses incurred with the invested entity which belong to asset impairment
losses shall be fully recognized.The net losses incurred by the company in joint ventures or associated enterprises except for the obligation to bear additional losses
shall be limited to the reduction of the book value of long-term equity investments and other long-term equity that essentially constitute
net investments in joint ventures or associated enterprises to zero. If a joint venture or associated enterprise realizes net profits in the
future the company shall restore the recognition of the profit sharing amount after offsetting the unrecognized loss sharing amount
with the profit sharing amount.
(3) Disposal of long-term equity investments
21The difference between the book value and the actual acquisition price of long-term equity investments shall be recognized in the
current period's profit and loss.For long-term equity investments that are partially disposed of and accounted for using the equity method if the remaining equity is
still accounted for using the equity method other comprehensive income recognized using the original equity method shall be carried
forward on the same basis as the direct disposal of related assets or liabilities by the investee in proportion and changes in other owner's
equity shall be carried forward to the current period's profit and loss in proportion.If the joint control or significant influence over the investee is lost due to the disposal of equity investments or other reasons other
comprehensive income recognized by the equity method for the original equity investment shall be accounted for on the same basis as
the direct disposal of related assets or liabilities by the investee when the equity method is terminated and all other changes in owner's
equity shall be transferred to the current period's profit and loss when the equity method is terminated.If the control over the investee is lost due to the disposal of some equity investments or other reasons and the remaining equity can
exercise joint control or significant influence over the investee when preparing individual financial statements it shall be accounted
for using the equity method and the remaining equity shall be adjusted as if it were accounted for using the equity method from the
time of acquisition. Other comprehensive income recognized before obtaining control of the investee shall be carried forward
proportionally on the same basis as the direct disposal of relevant assets or liabilities by the investee and other changes in owner's
equity recognized by using the equity method shall be carried forward to the current period's profit and loss in proportion; If the
remaining equity cannot exercise joint control or significant influence over the investee it shall be recognized as a financial asset and
the difference between its fair value and book value on the date of loss of control shall be recognized in the current period's profit and
loss. All other comprehensive income and other changes in owner's equity recognized before obtaining control of the investee shall be
carried forward.If the disposal of equity investment in a subsidiary through multiple transactions until the loss of control is considered a package deal
each transaction shall be accounted for as a disposal of equity investment in the subsidiary and the loss of control; The difference
between the disposal price and the book value of the long-term equity investment corresponding to the disposed equity before losing
control is recognized as other comprehensive income in individual financial statements and then transferred to the current period's
profit and loss upon losing control. For transactions that are not part of a package deal accounting treatment shall be applied separately
for each transaction.
13. Investment property
Investment real estate refers to real estate held for the purpose of earning rent or capital appreciation or both including leased land
use rights land use rights held and prepared for transfer after appreciation and leased buildings (including buildings built or developed
for leasing after completion of self construction or development activities as well as buildings under construction or development that
will be rented out in the future).Subsequent expenses related to investment real estate are included in the cost of investment real estate when the related economic
benefits are likely to flow in and their costs can be reliably measured; Otherwise it will be recorded in the current period's profit and
loss when it occurs.Our company adopts the cost model for measuring existing investment properties. For investment properties measured under the cost
model - rental buildings the same depreciation policy as the company's fixed assets is adopted and the amortization policy for rental
land use rights is implemented in the same manner as intangible assets.
14. Fixed assets
Recognition and initial measurement of fixed assets
Fixed assets refer to tangible assets held for the production of goods provision of services rental or business management with a
useful life exceeding one accounting year. Fixed assets are recognized when they meet the following conditions simultaneously :
(1) The economic benefits related to the fixed asset are likely to flow into the enterprise;
(2) The cost of the fixed asset can be reliably measured.
Fixed assets are initially measured at cost (taking into account the impact of expected disposal costs).Subsequent expenses related to fixed assets are included in the cost of fixed assets when the economic benefits associated with them
are likely to flow in and their costs can be reliably measured; Terminate the recognition of the book value of the replaced parts; All
22other subsequent expenses are recognized in the current period's profit or loss at the time of occurrence.
Depreciation method
Depreciation of fixed assets is calculated using the straight-line method and the depreciation rate is determined based on the fixed
asset category expected useful life and expected net residual value rate. For fixed assets for which impairment provisions have been
made the depreciation amount shall be determined in future periods based on the book value after deducting the impairment provisions
and the remaining useful life. If the service life of each component of fixed assets is different or they provide economic benefits to the
enterprise in different ways different depreciation rates or depreciation methods should be selected and depreciation should be accrued
separately.The depreciation methods depreciation periods residual value rates and annual depreciation rates for various types 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.Disposal of fixed assets
When fixed assets are disposed of or expected to generate no economic benefits through use or disposal the recognition of such fixed
assets shall be terminated. The disposal income from the sale transfer scrapping or damage of fixed assets after deducting their book
value and related taxes shall be included in the current period's profit and loss.
15. Construction in progress
Construction in progress is measured based on the actual cost incurred. The actual costs include construction costs installation costs
borrowing costs that meet capitalization criteria and other necessary expenses incurred to bring the construction in progress to its
intended usable state. When the construction in progress reaches the predetermined usable state it is transferred to fixed assets and
depreciation is accrued from the following month.
16. Borrowing costs
Recognition principle for capitalization of borrowing costs
The borrowing costs incurred by the company which can be directly attributed to the acquisition construction or production of assets
that meet the capitalization criteria shall be capitalized and included in the relevant asset costs; Other borrowing costs are recognized
as expenses based on their amount incurred and recorded in the current period's profit and loss.Assets eligible for capitalization refer to fixed assets investment real estate inventories and other assets that require a considerable
period of time for acquisition and construction or production activities to reach their intended serviceable or marketable status.During the capitalization period of borrowing costs
The capitalization period refers to the period from the start of capitalization of borrowing costs to the end of capitalization excluding
the period when capitalization of borrowing costs is suspended.The capitalization of borrowing costs begins when the following conditions are met simultaneously:
(1) Asset expenditures have already occurred including expenses incurred in the form of cash payments transfer of non cash assets
or assumption of interest bearing debts for the purchase construction or production of assets that meet capitalization criteria;
(2) The borrowing cost has already been incurred;
23(3) The necessary purchasing construction or production activities to bring the assets to their intended usable or saleable state have
already begun.When the assets that meet the capitalization criteria for purchase construction or production reach the predetermined usable or saleable
state the capitalization of borrowing costs shall cease.During the suspension of capitalization period
If assets that meet the capitalization criteria experience abnormal interruptions during the acquisition construction or production
process and the interruption lasts for more than 3 consecutive months the capitalization of borrowing costs shall be suspended; If the
interruption is necessary for the acquisition construction or production of assets that meet the capitalization conditions to reach the
predetermined usable or saleable state the borrowing costs will continue to be capitalized. The borrowing costs incurred during the
interruption period are recognized as current profit or loss and continue to be capitalized until the acquisition or production activities
of the asset resume.Calculation method for capitalization rate and capitalization amount of borrowing costs
For specialized loans borrowed for the purchase construction or production of assets that meet the capitalization criteria the
capitalization amount of the borrowing costs shall be determined by subtracting the interest income obtained from the unused borrowing
funds deposited in the bank or the investment income obtained from temporary investments from the actual borrowing costs incurred
in the current period.For general borrowings used for the purchase construction or production of assets that meet the capitalization criteria the amount of
borrowing costs that should be capitalized for general borrowings is calculated by multiplying the weighted average of asset
expenditures exceeding the special borrowing portion by the capitalization rate of the general borrowings used. The capitalization rate
is determined based on the weighted average actual interest rate of general borrowings.During the capitalization period the exchange difference between the principal and interest of foreign currency borrowings shall be
capitalized and included in the cost of assets eligible for capitalization. The exchange differences arising from the principal and interest
of foreign currency borrowings other than those specifically borrowed in foreign currencies are recognized in the current period's profit
and loss.
17. Intangible assets
Valuation method of intangible assets
(1) When the company acquires intangible assets they are initially measured at cost;
The cost of purchasing intangible assets includes the purchase price related taxes and fees and other expenses directly attributable to
achieving the intended use of the asset.
(2) Subsequent measurement
Analyze and determine the useful life of intangible assets when acquiring them.For intangible assets with limited useful life they should be amortized within the period that brings economic benefits to the enterprise;
If it is impossible to foresee the period in which intangible assets will bring economic benefits to the enterprise they shall be regarded
as intangible assets with an uncertain useful life and shall not be amortized.Estimation of the useful life of intangible assets with limited useful life
Item Expected service life Amortization method
Land use rights 43 to 50 years Straight-line method
Software usage rights 2 years Straight-line method
Trademark usage rights 10 years Straight-line method
Non patented technology 5 to 11 years Straight-line method
Patent technology 10 years Straight-line method
24Specific criteria for dividing research and development stages
The expenses for internal research and development projects within the company are divided into research stage expenses and
development stage expenses.Research stage: The stage of original planned investigations and research activities aimed at acquiring and understanding new scientific
or technological knowledge.Development stage: The stage in which research results or other knowledge are applied to a plan or design to produce new or
substantially improved materials devices products and other activities before commercial production or use.Specific conditions for capitalizing expenditures during the development phase
The expenses incurred during the research phase are recognized in the current period's profit and loss. Expenditures during the
development phase that meet the following conditions are recognized as intangible assets. Expenditures during the development phase
that do not meet the following conditions are recognized in the current period's profit and loss:
(1) Complete the intangible asset to make it technically feasible for use or sale;
(2) Having the intention to complete the intangible asset and use or sell it;
(3) The ways in which intangible assets generate economic benefits include being able to prove the existence of a market for the
products produced using the intangible assets or the existence of a market for the intangible assets themselves. If the intangible assets
will be used internally their usefulness can be proven;
(4) Having sufficient technical financial and other resources to support the development of the intangible asset and having the ability
to use or sell the intangible asset;
(5) The expenses attributable to the development stage of the intangible asset can be reliably measured.
If it is impossible to distinguish between research stage expenses and development stage expenses all R&D expenses incurred will be
included in the current period's profit and loss.
18. Long-term assets impairment
Long term equity investments investment properties measured using the cost model fixed assets construction in progress right of use
assets intangible assets with limited useful lives and other long-term assets that show signs of impairment on the balance sheet date
shall be subject to impairment testing. If the impairment test results indicate that the recoverable amount of an asset is lower than its
book value an impairment provision shall be made based on the difference and included in the impairment loss. The recoverable
amount is the higher of the net amount of the fair value of the asset minus disposal expenses and the present value of the expected
future cash flows of the asset. The provision for impairment of assets is calculated and recognized based on individual assets. If it is
difficult to estimate the recoverable amount of an individual asset the recoverable amount of the asset group to which the asset belongs
shall be determined. An asset group is the smallest combination of assets that can independently generate cash inflows.For goodwill formed by business mergers intangible assets with uncertain useful lives and intangible assets that have not yet reached
a usable state regardless of whether there are signs of impairment impairment tests should be conducted at least at the end of each
fiscal year.Our company conducts impairment tests on goodwill and the book value of goodwill formed by business combinations is allocated to
relevant asset groups in a reasonable manner from the date of purchase; If it is difficult to allocate to the relevant asset group allocate
it to the relevant asset group combination. The relevant asset group or combination of asset groups refers to the asset group or
combination of asset groups that can benefit from the synergistic effects of corporate mergers.When conducting impairment tests on relevant asset groups or combinations of asset groups that include goodwill if there are signs of
impairment in the asset groups or combinations of asset groups related to goodwill impairment tests should be conducted on the asset
groups or combinations of asset groups that do not include goodwill first the recoverable amount should be calculated and compared
with the relevant book value to confirm the corresponding impairment loss. Then impairment tests are conducted on asset groups or
combinations of asset groups that contain goodwill comparing their book value with their recoverable amount. If the recoverable
amount is lower than the book value the impairment loss amount is first offset against the book value of goodwill allocated to the asset
25group or combination of asset groups. Then based on the proportion of the book value of assets other than goodwill in the asset group
or combination of asset groups the book value of other assets is offset proportionally.Once the impairment loss of the above-mentioned assets is recognized it shall not be reversed in future accounting periods..
19. Long-term deferred expenses
Long term deferred expenses refer to various expenses that have already occurred but should be borne by the current and future periods
with an amortization period of more than one year.
20. Contract liabilities
Our company lists contract assets or contract liabilities in the balance sheet based on the relationship between fulfilling performance
obligations and customer payments. The obligation of our company to transfer goods or provide services to customers for consideration
received or receivable is listed as a contractual liability. The contract assets and contract liabilities under the same contract are presented
on a net basis.
21. Employee benefits
Accounting treatment methods for short-term compensation
During the accounting period when employees provide services to the company the actual short-term compensation incurred is
recognized as a liability and included in the current period's profit or loss or related asset costs.The social insurance premiums and housing provident fund paid by our company for employees as well as the union funds and
employee education funds extracted according to regulations shall be calculated and determined based on the prescribed provision
basis and provision ratio during the accounting period when employees provide services to our company.The employee welfare expenses incurred by our company are recognized in the current period's profit or loss or related asset costs
based on the actual amount incurred. Non monetary benefits are measured at fair value.Accounting treatment method for post employment benefits
(1) Establish a withdrawal plan
Our company pays basic pension insurance and unemployment insurance for employees in accordance with relevant regulations of the
local government. During the accounting period when employees provide services to our company the payable amount is calculated
based on the local prescribed payment base and proportion recognized as a liability and included in the current profit and loss or
related asset costs. In addition our company also participates in enterprise annuity plans approved by relevant national departments.Our company contributes a certain proportion of the total employee salary to the pension plan and the corresponding expenses are
recorded in the current period's profit and loss or related asset costs.
(2) Establish a benefit plan
According to the formula determined by the expected cumulative welfare unit method the welfare obligations arising from the defined
benefit plan are attributed to the period during which the employees provide services and are recorded in the current period's profit
and loss or related asset costs.The deficit or surplus formed by subtracting the fair value of the defined benefit plan assets from the present value of the defined
benefit plan obligations is recognized as a net liability or net asset of the defined benefit plan. If there is a surplus in the defined benefit
plan the company measures the net assets of the defined benefit plan based on the lower of the surplus and asset limit of the defined
benefit plan.All defined benefit plan obligations including those expected to be paid within 12 months after the end of the annual report period
when employees provide services are discounted according to the market yield of treasury bond or high-quality corporate bonds in the
active market that match the defined benefit plan obligation period and currency on the balance sheet date.The service costs generated by the defined benefit plan and the net interest on the net liabilities or assets of the defined benefit plan are
recognized in the current period's profit or loss or related asset costs; The changes arising from the remeasurement of net liabilities or
net assets of the defined benefit plan shall be recognized in other comprehensive income and shall not be reversed to profit or loss in
subsequent accounting periods. Upon termination of the original defined benefit plan the portion originally recognized in other
26comprehensive income shall be fully carried forward to undistributed profit within the scope of equity.
When settling a defined benefit plan the difference between the present value of the defined benefit plan obligation and the settlement
price determined on the settlement date shall be used to recognize settlement gains or losses.Accounting treatment methods for termination benefits
If the company provides termination benefits to employees the employee compensation liability arising from termination benefits shall
be recognized and included in the current period's profit and loss at the earlier of the following two dates: when the company cannot
unilaterally withdraw the termination benefits provided due to the termination of labor relations plan or layoff proposal; When the
company confirms the costs or expenses related to the restructuring involving the payment of termination benefits.
22. Estimated liabilities
When obligations related to contingencies meet the following conditions simultaneously the Company recognizes them as estimated
liabilities:
(1) This obligation is a current obligation undertaken by our company;
(2) Fulfilling this obligation is likely to result in the outflow of economic benefits from the company;
(3) The amount of this obligation can be reliably measured.
The estimated liabilities are initially measured based on the best estimate of the expenses required to fulfill the relevant current
obligations.When determining the best estimate comprehensive consideration should be given to factors such as risks uncertainties and time
value of money related to contingencies. For those that have a significant impact on the time value of money the best estimate is
determined by discounting the relevant future cash outflows.If all or part of the expenses required to settle the estimated liabilities are expected to be compensated by a third party the compensation
amount shall be separately recognized as an asset when it is basically certain that it can be received and the recognized compensation
amount shall not exceed the book value of the estimated liabilities.Our company reviews the book value of estimated liabilities on the balance sheet date. If there is conclusive evidence that the book
value does not reflect the current best estimate the book value shall be adjusted according to the current best estimate.
23. Share-based payments
Our company's share based payments are transactions in which equity instruments are granted or liabilities determined based on equity
instruments are assumed in order to obtain services from employees or other parties. Our company's share based payments are divided
into equity settled share based payments and cash settled share based payments.Equity settled share based payments and equity instruments
For equity settled share based payments exchanged for services provided by employees the fair value of equity instruments granted to
employees shall be measured. For share based payment transactions that are immediately exercisable upon grant the fair value of the
equity instrument shall be recognized as relevant costs or expenses on the grant date and the corresponding capital reserve shall be
increased. For share based payment transactions that require completion of services during the waiting period or meeting specified
performance conditions before exercise on each balance sheet date during the waiting period the Company will recognize the services
obtained in the current period as relevant costs or expenses based on the best estimate of the number of feasible equity instruments and
the fair value on the grant date and increase the capital reserve accordingly.If the terms of equity settled share based payments are modified at least the services obtained shall be confirmed as if the terms were
not modified. In addition any modification that increases the fair value of the equity instruments granted or any change that benefits
employees on the modification date shall be recognized as an increase in the acquisition of services.During the waiting period if the granted equity instruments are cancelled the Company will treat the cancellation of the granted equity
instruments as accelerated exercise and immediately recognize the remaining amount that should be recognized during the waiting
period in the current period's profit and loss while recognizing capital reserves. However if a new equity instrument is granted and it
is determined on the date of grant that the new equity instrument is intended to replace the cancelled equity instrument the replacement
equity instrument granted shall be treated in the same manner as the modification of the terms and conditions of the original equity
27instrument.
Cash settled share based payments and equity instruments
Cash settled share based payments shall be measured at the fair value of the liabilities assumed by the Company based on shares or
other equity instruments. For share based payment transactions with immediate exercise of rights upon grant the Company shall
recognize the relevant costs or expenses at the fair value of the liability assumed on the grant date and correspondingly increase the
liability. For share based payment transactions that require completion of services during the waiting period or fulfillment of specified
performance conditions before exercise on each balance sheet date during the waiting period the Company will recognize the services
obtained in the current period as relevant costs or expenses based on the best estimate of the feasible option situation and the fair value
of the liability assumed by the Company and correspondingly recognize them as liabilities. On each balance sheet date and se ttlement
date prior to the settlement of the relevant liabilities the fair value of the liabilities shall be remeasured and any changes shall be
recognized in the current period's profit or loss.Our company has modified the terms and conditions of the cash settled share based payment agreement to become an equity settled
share based payment. On the date of modification (whether occurring during or after the waiting period) our company will measure
the equity settled share based payment at the fair value of the equity instrument granted on the day of modification and recognize the
services obtained as capital reserve. At the same time the recognized liabilities of the cash settled share based payment on the
modification date will be terminated and the difference between the two will be recognized in the current period's profit and loss. If
the waiting period is extended or shortened due to modifications our company will account for it based on the modified waiting period.
24. Revenue
Accounting policies adopted for revenue recognition and measurement
Our company has fulfilled its contractual obligations by recognizing revenue when the customer obtains control of the relevant goods
or services. Acquiring control over relevant goods or services refers to being able to dominate the use of such goods or services and
obtain almost all economic benefits from them.If the contract contains two or more performance obligations the company shall allocate the transaction price to each individua l
performance obligation on the commencement date of the contract based on the relative proportion of the individual selling prices of
the promised goods or services for each individual performance obligation. Our company measures revenue based on the transaction
price allocated to each individual performance obligation.The transaction price refers to the expected amount of consideration that the company is entitled to receive for transferring goods or
services to customers excluding payments collected on behalf of third parties and expected refunds to customers. Our company
determines the transaction price based on the terms of the contract and its past practices taking into account factors such as variable
consideration significant financing elements in the contract non cash consideration and payable customer consideration when
determining the transaction price. The Company determines the transaction price including variable consideration based on an amount
that does not exceed the cumulative recognized income that is highly unlikely to experience a significant reversal at the time of the
relevant uncertainty being eliminated. If there is a significant financing component in the contract the company determines the
transaction price based on the assumed payable amount paid in cash by the customer upon obtaining control of the goods or services
and amortizes the difference between the transaction price and the contract consideration using the effective interest rate method during
the contract period.If one of the following conditions is met it is considered to have fulfilled the performance obligation within a certain period of time;
otherwise it is considered to have fulfilled the performance obligation at a certain point in time:
The customer obtains and consumes the economic benefits brought by the company's performance at the same time as fulfilling the
contract.Customers are able to control the goods under construction during the performance process of our company.The goods produced by our company during the performance process have irreplaceable uses and our company has the right to collect
payments for the completed performance portion throughout the entire contract period.For performance obligations fulfilled during a certain period of time our company recognizes revenue based on the progress of
performance during that period except for situations where the progress of performance cannot be reasonably determined. Our
company considers the nature of goods or services and uses output or input methods to determine the progress of performance. When
the progress of performance cannot be reasonably determined and the costs already incurred are expected to be compensated our
company recognizes revenue based on the amount of costs already incurred until the progress of performance can be reasonably
determined.
28For performance obligations fulfilled at a certain point in time the company recognizes revenue at the point when the customer obtains
control of the relevant goods or services. When determining whether the customer has obtained control of the goods or services the
company considers the following signs:
Our company has the right to receive payment for the goods or services at present which means that the customer has a current payment
obligation for the goods or services.Our company has transferred the legal ownership of the product to the customer meaning that the customer already owns the legal
ownership of the product.Our company has transferred the physical item to the customer meaning that the customer has taken possession of the item.The company has transferred the main risks and rewards of ownership of the product to the customer meaning that the customer has
acquired the main risks and rewards of ownership of the product.The customer has accepted the product or service etc.Our company determines whether we are the primary responsible party or agent when engaging in transactions based on whether we
have control over the goods or services before transferring them to customers. If our company is able to control the goods or services
before transferring them to customers we are the main responsible party and recognize revenue based on the total amount of
consideration received or receivable; Otherwise our company acts as an agent and recognizes revenue based on the expected
commission or handling fee amount that we are entitled to receive.Disclose specific revenue recognition and measurement methods by business type
Our company has fulfilled its contractual obligations by recognizing revenue when the customer obtains control of the relevant goods
or services. Acquiring control over related goods or services refers to being able to dominate the use of the goods or the provision of
the services and obtain almost all economic benefits from them.
(1) Sales Contract for Goods
The sales contract between our company and customers usually includes performance obligations such as transferring goods. Our
company usually recognizes revenue at the time of fulfilling each individual performance obligation taking into account the following
factors: the current right to receive payment for the goods the transfer of major risks and rewards of ownership of the goods the
transfer of legal ownership of the goods the transfer of physical assets of the goods and the customer's acceptance of the goods.
(2) Provide service contract
The performance obligations that should be fulfilled in the service contract between our company and the customer as the customer
obtains and consumes the economic benefits brought by our company's performance at the same time as our company's performance
and our company has the right to collect payment for the accumulated performance portion completed so far during the entire contract
period our company will recognize it as a performance obligation fulfilled during a certain period of time and recognize the income
according to the performance progress except for situations where the performance progress cannot be reasonably determined. Our
company determines the performance schedule of providing services based on the completed or delivered products using the output
method. When the progress of performance cannot be reasonably determined and the costs already incurred by our company are
expected to be compensated revenue shall be recognized based on the amount of costs already incurred until the progress of
performance can be reasonably determined.
(3) Variable consideration
Some of our company's contracts with customers involve sales rebate arrangements resulting in variable consideration. Our company
determines the best estimate of variable consideration based on expected values or the most likely amount to occur but the transaction
price that includes variable consideration does not exceed the amount that is highly unlikely to result in a significant reversal of
cumulative recognized revenue when the relevant uncertainty is eliminated.
(4) Warranty obligations
According to the contract agreement legal provisions etc. our company provides quality assurance for the products sold. For service
quality assurance that provides a separate service beyond the established standards to ensure the sale of goods to customers our
company regards it as a single performance obligation and allocates a portion of the transaction price to the service quality assurance
based on the relative proportion of the separate selling price of the goods and services provided and recognizes revenue when the
customer obtains control of the service. When evaluating whether quality assurance provides a separate service beyond ensuring that
the products sold meet established standards to customers the company considers factors such as whether the quality assurance is a
legal requirement the quality assurance period and the nature of the tasks that the company promises to fulfill.
29(5) Reward Points Program
Our company awards reward points to customers while selling goods or providing services and customers can use these reward points
to exchange for free or discounted goods or services. This reward points program provides customers with a significant right which
the company considers as a single performance obligation. Based on the relative proportion of the separate selling price of the goods
or services provided and the reward points a portion of the transaction price is allocated to the reward points and revenue is recognized
when customers gain control of the points redeemed goods or services or when the points become invalid.
(6) Main responsible person/agent
For our company's ability to lead third-party representatives to provide services to customers we have the right to independently
determine the price of the traded goods or services. This means that our company can control the relevant goods before transferring
them to customers. Therefore our company is the main responsible person and recognizes revenue based on the total amount of
consideration received or receivable. Otherwise as an agent our company shall recognize revenue based on the expected amount of
commission or handling fees that we are entitled to receive. This amount shall be determined by deducting the total amount of
consideration received or receivable from the amount payable to other relevant parties or by the established commission amount or
proportion. Disclose accounting policies used for revenue recognition and measurement based on business type.
25. Contract Cost
Contract costs include contract performance costs and contract acquisition costs.The costs incurred by our company in fulfilling contracts that do not fall within the scope of relevant standards and regulations such as
inventory fixed assets or intangible assets shall be recognized as contract performance costs when the following conditions are met:
The cost is directly related to a current or expected contract to be obtained.This cost increases the resources that our company will have to fulfill its contractual obligations in the future.The cost is expected to be recovered.The incremental costs incurred by our company to obtain contracts that are expected to be recovered are recognized as contrac t
acquisition costs as an asset.Assets related to contract costs are amortized on the same basis as the recognition of revenue from goods or services associated with
the asset; However for contracts with an amortization period of less than one year the company will include it in the current period's
profit and loss when it occurs.If the book value of assets related to contract costs is higher than the difference between the following two items the Company shall
make an impairment provision for the excess and recognize it as an asset impairment loss:
(1) The remaining consideration expected to be obtained from the transfer of goods or services related to the asset;
(2) Estimate the cost that will be incurred for the transfer of the relevant goods or services.
If the factors that caused impairment in previous periods have changed resulting in the difference being higher than the carrying amount
of the asset the Company shall reverse the impairment provision that has already been made and include it in the current period's profit
and loss. However the reversed carrying amount of the asset shall not exceed the carrying amount of the asset on the date of reversal
assuming no impairment provision is made.
26. Government grants
Type
Government subsidies refer to monetary or non monetary assets obtained by our company from the government free of charge which
are divided into asset related government subsidies and income related government subsidies.Government subsidies related to assets refer to the government subsidies obtained by the company for the purpose of purchasing
constructing or otherwise forming long-term assets. Government subsidies related to income refer to government subsidies other than
those related to assets.
30Confirm time point
Government subsidies are recognized when the company is able to meet the conditions attached and receive them.accounting treatment
Our company adopts the net method to account for government subsidies.Government subsidies related to assets are offset against the book value of related assets or recognized as deferred income. If recognized
as deferred income it shall be recorded in the current period's profit and loss in a reasonable and systematic manner over the useful
life of the relevant assets.Government subsidies related to revenue used to compensate for future costs expenses or losses of the company shall be recognized
as deferred income and included in the current period's profit or loss or offset against related costs expenses or losses during the period
in which the related costs expenses or losses are recognized; For compensation of related costs expenses or losses incurred by the
company they shall be directly recorded in the current period's profit and loss or offset against related costs expenses or losses.The policy based preferential loan interest subsidies obtained by our company are classified into the following two situations and
accounted for separately:
(1) The finance department will allocate the interest subsidy funds to the lending bank. If the lending bank provides a loan to our
company at a policy preferential interest rate our company will use the actual loan amount received as the entry value of the loan and
calculate the relevant loan costs based on the loan principal and the policy preferential interest rate.
(2) If the finance department directly disburses the interest subsidy funds to our company we will offset the corresponding interest
subsidy against the relevant borrowing costs.
27. Deferred tax assets/deferred tax liabilities
Income tax includes current income tax and deferred income tax. Except for income tax arising from business mergers and transactions
or events directly recognized in owner's equity (including other comprehensive income) the Company recognizes current income tax
and deferred income tax in the current period's profit and loss.Deferred income tax assets and deferred income tax liabilities are recognized based on the difference (temporary difference) between
the tax base of the assets and liabilities and their carrying amounts.For the recognition of deferred tax assets for deductible temporary differences the amount of taxable income that is likely to be obtained
in future periods to offset the deductible temporary differences shall be limited. For deductible losses and tax deductions that can be
carried forward to future years corresponding deferred income tax assets shall be recognized up to the future taxable income that is
likely to be obtained to offset the deductible losses and tax deductions.For temporary differences in taxable income except in special circumstances deferred income tax liabilities are recognized.Special circumstances where deferred tax assets or deferred tax liabilities are not recognized include:
Initial recognition of goodwill;
Transactions or events that are neither a business merger nor affect accounting profits and taxable income (or deductible losses) a t the
time of occurrence and where the initially recognized assets and liabilities do not result in equal taxable temporary differences or
deductible temporary differences.Deferred income tax liabilities shall be recognized for taxable temporary differences related to investments in subsidiaries associates
and joint ventures unless the Company is able to control the timing of the reversal of such temporary differences and it is probable that
they will not reverse in the foreseeable future. Deferred income tax assets are recognized for deductible temporary differences related
to investments in subsidiaries associates and joint ventures when the temporary differences are likely to reverse in the foreseeable
future and taxable income is likely to be obtained in the future to offset the deductible temporary differences.On the balance sheet date deferred income tax assets and deferred income tax liabilities shall be measured at the applicable tax rate
during the expected period of recovery of related assets or settlement of related liabilities in accordance with tax laws.
31On the balance sheet date the Company reviews the carrying amount of deferred tax assets. If it is likely that sufficient taxable income
will not be available in the future to offset the benefits of deferred tax assets the carrying amount of deferred tax assets shall be reduced.When it is likely to obtain sufficient taxable income the reduced amount shall be reversed.When having the legal right to settle on a net basis and intending to settle on a net basis or acquire assets and settle liabilit ies
simultaneously the current income tax assets and current income tax liabilities are reported at the net amount after offsetting.On the balance sheet date deferred income tax assets and deferred income tax liabilities are presented at the net amount after offsetting
when both of the following conditions are met:
The taxpayer has the legal right to settle current income tax assets and current income tax liabilities on a net basis;
Deferred income tax assets and deferred income tax liabilities are related to income tax levied by the same tax collection and
management department on the same taxpayer or on different taxpayers but in the future during each significant period of reversal of
deferred income tax assets and liabilities the taxpayers involved intend to settle the current income tax assets and liabilities on a net
basis or acquire assets and settle liabilities simultaneously.
28. Leases
Leasing refers to a contract in which the lessor transfers the right to use an asset to the lessee for consideration during a certain period
of time. On the commencement date of the contract our company evaluates whether the contract is a lease or includes a lease. If one
party in a contract relinquishes the right to control the use of one or more identified assets for a certain period of time in exchange for
consideration then the contract is a lease or includes a lease.If the contract includes multiple separate leases the company will split the contract and account for each separate lease separately. If
the contract includes both lease and non lease parts the lessee and lessor shall separate the lease and non lease parts.As the lessee
(1) Right of Use Assets
On the commencement date of the lease term the Company recognizes the right of use assets for leases other than short-term leases
and leases of low value assets. The right of use assets are initially measured at cost. The cost includes:
The initial measurement amount of lease liabilities;
If there is a lease incentive for the lease payment made on or before the start date of the lease term the relevant amount of the lease
incentive already enjoyed shall be deducted;
The initial direct expenses incurred by our company;
The cost expected to be incurred by our company for dismantling and removing leased assets restoring the location of leased assets
or restoring leased assets to the state agreed upon in the lease terms but does not include costs incurred for producing inventory.Our company will use the straight-line method to depreciate the right of use assets in the future. For leased assets that can be reasonably
determined to acquire ownership upon expiration of the lease term the Company shall depreciate the leased assets over their remaining
useful life; Otherwise the leased asset shall be depreciated during the shorter of the lease term or the remaining useful life of the leased
asset.
(2) Lease liabilities
On the commencement date of the lease term the Company recognizes lease liabilities for leases other than short-term leases and leases
of low value assets. Lease liabilities are initially measured at the present value of unpaid lease payments. The lease payment amount
includes:
Fixed payment amount (including substantial fixed payment amount) if there are lease incentives deduct the relevant amount of lease
incentives;
Variable lease payments based on indices or ratios;
32The estimated amount to be paid based on the residual value of the guarantee provided by the company;
The exercise price for purchasing the option provided that the company reasonably determines that the option will be exercised;
The payment required to exercise the option to terminate the lease provided that the lease term reflects that the company will exercise
the option to terminate the lease.Our company uses the lease implicit interest rate as the discount rate but if the lease implicit interest rate cannot be reasonably
determined we use our incremental borrowing rate as the discount rate.Our company calculates the interest expenses of lease liabilities during each period of the lease term based on a fixed periodic interest
rate and includes them in the current period's profit and loss or related asset costs.Variable lease payments that are not included in the measurement of lease liabilities are recognized in the current period's profit or loss
or related asset costs when they actually occur.After the commencement date of the lease term if any of the following situations occur the Company shall remeasure the lease liabilit y
and adjust the corresponding right of use asset. If the book value of the right of use asset has been reduced to zero but the lease liabilit y
still needs to be further reduced the difference shall be recognized in the current period's profit and loss:
When the evaluation results of the purchase option renewal option or termination option change or the actual exercise of the
aforementioned options is inconsistent with the original evaluation results the Company shall remeasure the lease liability based on
the present value calculated by the modified lease payment amount and the revised discount rate;
When there is a change in the actual fixed payment amount a change in the expected payable amount of the guaranteed residual value
or a change in the index or ratio used to determine the lease payment amount the Company remeasures the lease liability based on the
present value calculated using the changed lease payment amount and the original discount rate. However if the change in lease
payments is due to fluctuations in floating interest rates the revised discount rate should be used to calculate the present value.
(3) Short term leasing and low value asset leasing
If the company chooses not to recognize right of use assets and lease liabilities for short-term leases and low value asset leases the
relevant lease payments will be recognized in the current period's profit or loss or related asset costs using the straight-line method for
each period during the lease term. Short term lease refers to a lease that starts on the lease term has a lease term of no more than 12
months and does not include purchase options. Low value asset leasing refers to the leasing of a single leased asset with a lower value
when it is a brand new asset. If a company subleases or anticipates subleasing leased assets the original lease does not belong to a low
value asset lease.
(4) Lease change
If there is a change in the lease and the following conditions are met simultaneously the company will treat the lease change as a
separate lease for accounting purposes:
The lease change expands the lease scope by adding the right to use one or more leased assets;
The increased consideration is equivalent to the individual price of the expanded lease scope adjusted according to the contract situation.If the lease change is not accounted for as a separate lease on the effective date of the lease change the company shall re allocate the
consideration of the contract after the change re determine the lease term and re measure the lease liability based on the present value
calculated by the modified lease payment amount and the revised discount rate.If the lease change leads to a reduction in the scope of the lease or a shortened lease term the Company shall correspondingly adjust
the book value of the right of use assets and include the related gains or losses from partial or complete termination of the lease in the
current period's profit and loss. If other lease changes result in the remeasurement of lease liabilities the Company shall adjust the
carrying amount of the right of use assets accordingly.As the lessor
33On the commencement date of the lease our company divides the lease into financing lease and operating lease. Financial leas ing
refers to a lease that regardless of whether ownership is ultimately transferred or not essentially transfers almost all risks and rewards
related to the ownership of the leased asset. Operating lease refers to leases other than financing leases. When our company acts as a
sublessor we classify sublease based on the right of use assets generated from the original lease.
(1) Accounting treatment for operating leases
The lease receipts from operating leases are recognized as rental income using the straight-line method during each period of the lease
term. The company will capitalize the initial direct expenses related to operating leases and allocate them to the current period's profit
and loss on the same basis as rental income recognition during the lease term. Variable lease payments that are not included in lease
receipts are recognized in the current period's profit or loss when they actually occur. If there is a change in the operating lease the
company shall treat it as a new lease for accounting purposes from the effective date of the change and the prepaid or receivable lease
receipts related to the lease before the change shall be regarded as the receipts of the new lease.
(2) Accounting treatment for financial leasing
On the commencement date of the lease the Company recognizes the receivable financing lease payments and terminates the
recognition of financing lease assets. When the company initially measures the receivable financing lease payments the net lease
investment is recognized as the entry value of the receivable financing lease payments. The net amount of lease investment is the sum
of the unguaranteed residual value and the present value of lease receipts not yet received at the lease commencement date discounted
at the lease implicit interest rate.Our company calculates and recognizes interest income for each period of the lease term based on a fixed periodic interest rate. The
termination recognition and impairment of financing lease receivables shall be accounted for in accordance with Note 8 Financial
Instruments.Variable lease payments that are not included in the measurement of net lease investments are recognized in the current period's profit
or loss when they actually occur.If there is a change in the financing lease and the following conditions are met simultaneously the company will treat the change as a
separate lease for accounting purposes:
The change expands the lease scope by adding the right to use one or more leased assets;
The increased consideration is equivalent to the individual price of the expanded lease scope adjusted according to the contract situation.If the change of financing lease is not accounted for as a separate lease the company will handle the changed lease in the following
situations:
If the change takes effect on the lease commencement date the lease will be classified as an operating lease. The company will treat it
as a new lease from the effective date of the lease change and use the net lease investment before the effective date of the lease change
as the book value of the leased asset;
If the change takes effect on the lease commencement date the lease will be classified as a finance lease and our company will account
for it in accordance with the policy of "8. Financial Instruments" regarding the modification or renegotiation of contracts.Sale and leaseback transaction
The company evaluates and determines whether the asset transfer in the sale leaseback transaction constitutes a sale based on the
principles described in Note 24 Revenue.
(1) As a tenant
The transfer of assets in a sale leaseback transaction is considered a sale and the company as the lessee measures the right of use
assets formed by the sale leaseback based on the portion of the original asset book value related to the right of use obtained from the
leaseback and only recognizes gains or losses related to the rights transferred to the lessor.If the transfer of assets in a sale leaseback transaction is not considered a sale the company as the lessee continues to recognize the
transferred assets and also recognizes a financial liability equal to the transfer income. The accounting treatment of financial liabilit ies
is detailed in Note 8 Financial Instruments.
34(2) As a lessor
The asset transfer in the sale leaseback transaction belongs to sales and the company acts as the lessor to account for the asset purchase
and according to the aforementioned policy of "the company acts as the lessor" to account for the asset leasing; The transfer of assets
in a sale leaseback transaction is not considered a sale and the company as the lessor does not recognize the transferred assets but
recognizes a financial asset equal to the transfer income. The accounting treatment of financial assets is detailed in Note 8 Financial
Instruments.
29. Methods for determining importance criteria and selection criteria
Item Importance criteria
Subsidiary's net assets account for more than 5% of the company's consolidated
Important non wholly owned subsidiaries net assets or net profit accounts for more than 10% of the company's consolidated
net profit.Investment gains and losses under the equity method of long-term equity
Important joint venture enterprises
investments account for more than 10% of the company's consolidated net profit.Write off of important accounts The single write off amount accounts for more than 5% of the total bad debt
receivable provision for various receivables or the amount is greater than 15 million yuan.The amount of single recovery or reversal accounts for more than 5% of the total
Significant reversal or recovery of bad
bad debt provision for various receivables or the amount is greater than 15 million
debt provisions for accounts receivable
yuan.Important prepayments with an aging of The individual amount accounts for more than 5% of the total prepaid accounts or
over 1 year the amount is greater than 15 million yuan.Important accounts payable with an aging The individual amount accounts for more than 5% of the total accounts payable or
of over 1 year or overdue exceeds 15 million yuan.Important ongoing construction projects The final balance of the project is over 50 million yuan.
30. Significant accounting judgments and estimates
(1) Significant accounting policy changes
√ Applicable □ Not applicable
The Ministry of Finance released the "Compilation of Application Guidelines for Enterprise Accounting Standards 2024" in March
2024 which stipulates that warranty fees should be included in operating costs. The main impacts of our company's implementation of
this regulation are as follows:
The content and Merge Parent company
Affected
reasons for changes
report
in accounting
items Current Period Prior Period Current Period Prior Period
policies
According to the Operating
"Compilation of 1198507902.94 788037030.18 607136813.52 724716121.58 costs
Application
Guidelines for
Enterprise
Accounting
Standards 2024" Selling
-1198507902.94-788037030.18-607136813.52-724716121.58
the company will expenses
classify quality
assurance as
operating costs.
(2) Changes in significant accounting estimates
□ Applicable √ Not applicable
(3) Starting from 2024 the first implementation of the new accounting standards will adjust the financial statements related to the items
at the beginning of the year
35□ Applicable √ Not applicable
VI. TAXES
1. Main taxes and tax rates
Categories of taxes tax basis tax rate (%)
The output tax is calculated based on the sales of goods and taxable service
income calculated according to tax laws. After deducting the input tax that can
Value added tax (“VAT”) 6、7、9、13
be deducted in the current period the difference is the payable value-added
tax.Consumption tax Calculated and paid based on taxable sales revenue. 1、3、5
City maintenance and Calculated and paid based on the actual value-added tax and consumption tax
5、7
construction tax paid.Corporate income tax Calculated and paid based on taxable income. 15-41
Calculated and paid based on the actual value-added tax and consumption tax
Educational surcharge 3
paid.Local educational Calculated and paid based on the actual value-added tax and consumption tax
2
surcharge paid.
2. Tax benefits
1. According to the relevant regulations of national high-tech recognition and relevant tax preferential policies the following
subsidiaries of our company have been recognized as high-tech enterprises and enjoy a preferential corporate income tax rate of 15%
during the prescribed period: our company (November 2021 to November 2024) Hebei Changan Automobile Co. Ltd. (2023 to 2025)
and Deep Blue Automotive Technology Co. Ltd. (2023 to 2025).
2. According to the Announcement on Continuing the Enterprise Income Tax Policy for Western Development jointly issued by the
Ministry of Finance the State Administration of Taxation and the National Development and Reform Commission (Announcement
No. 23 of 2020 of the Ministry of Finance the State Administration of Taxation and the National Development and Reform
Commission) from January 1 2021 to December 31 2030 encouraged industrial enterprises located in the western region will be
subject to a reduced corporate income tax rate of 15%. Our subsidiaries 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. Chongqing Chemeimei Technology Co. Ltd. Chongqing Changan Automobile Software
Technology Co. Ltd. and Chongqing Changan Technology Co. Ltd. meet the above requirements and are subject to corporate income
tax at a rate of 15%.
3. According to the Announcement of the Ministry of Finance and the State Administration of Taxation on Further Supporting the
Development of Small and Micro Enterprises and Individual Industrial and Commercial Households and Related Tax Policies
(Announcement No. 12 of 2023 of the Ministry of Finance and the State Administration of Taxation) the taxable income of small and
micro profit enterprises shall be reduced by 25% and the enterprise income tax shall be paid at a rate of 20%. Our subsidiaries
Chongqing Xingzhi Technology Co. Ltd. Guangzhou Chang'an New Energy Vehicle Sales and Service Co. Ltd. Nanjing Chang'an
New Energy Vehicle Sales and Service Co. Ltd. Xiamen Chang'an New Energy Vehicle Sales and Service Co. Ltd. Shenlan
Automobile Nanjing Research Institute Co. Ltd. and Shenlan Automobile Marketing Service (Shenzhen) Co. Ltd. meet the prescribed
conditions and enjoy tax preferential policies for small and micro profit enterprises.
4. According to the Announcement of the Ministry of Finance and the State Administration of Taxation on the Policy of Value added
Tax Deduction for Advanced Manufacturing Enterprises (Announcement No. 43 of 2023 of the Ministry of Finance and the State
Administration of Taxation) from January 1 2023 to December 31 2027 advanced manufacturing enterprises are allowed to deduct
an additional 5% of the deductible input tax for the current period to offset the payable value-added tax. Our company and its subsidiary
Hebei Changan Automobile Co. Ltd. meet the prescribed conditions in 2024 and are eligible for the additional deduction policy.VII. Notes to the consolidated financial statements
1. Cash
In RMB Yuan
36Item Ending balance Beginning balance
Cash 4998.00 35257.05
Cash at bank 34854105125.40 29493854273.50
Other cash 1145129617.91 461131970.31
Cash at financial company 34939896329.93 34916021247.02
Total 70939136071.24 64871042747.88
Among them: total amount of funds
3482035375.401797894384.53
stored overseas
Note: The monetary funds deposited by our company with affiliated financial companies are detailed in Note 14 Section 5
2. Transactional financial assets
In RMB Yuan
Item Ending balance Beginning balance
Financial assets measured at fair value
with changes recognized in current profit
or loss
Among them: Equity instrument
152668417.66160744733.27
investment
Others 6774614.02
Total 152668417.66 167519347.29
3. Notes receivable
(1) Classification of notes receivable
In RMB Yuan
Item Ending balance Beginning balance
Bank acceptance bill 24414869176.41 28588687367.75
Commercial acceptance bill 9580659286.74 9069703846.26
Total 33995528463.15 37658391214.01
(2) Disclosure of accounts receivable classified by bad debt provision method
In RMB Yuan
Ending balance
Item Book balance Bad debt reserves
Book value
Amount Ratio (%) Amount Ratio (%)
Provision for bad debts
based on the
33995528463.15100.0033995528463.15
combination of credit
risk characteristics
Total 33995528463.15 100.00 33995528463.15
Beginning balance
Item Book balance Bad debt reserves
Book value
Amount Ratio (%) Amount Ratio (%)
Provision for bad debts
based on the
37658391214.01100.0037658391214.01
combination of credit
risk characteristics
37Total 37658391214.01 100.00 37658391214.01
Provision for bad debts based on the combination of credit risk characteristics：
In RMB Yuan
Ending balance
Item
Book balance Bad debt reserves Provision ratio (%)
Bank acceptance bill 24414869176.41
Commercial acceptance bill 9580659286.74
Total 33995528463.15
(3)Notes receivable pledged
In RMB Yuan
Item Pledged amount
Bank acceptance bill 5897473036.76
Commercial acceptance bill
Total 5897473036.76
(4)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
Bank acceptance bill 1904671080.90
Commercial acceptance bill
Total 1904671080.90
4. Accounts receivable
(1)Aging analysis of the accounts receivable
In RMB Yuan
Aging Ending balance Beginning balance
Within 1 year 3003576409.95 2455130606.98
1 to 2 years 43807168.03 9231834.37
2 to 3 years 179086.17 436370.13
Over 3 years 190347427.76 196256136.33
Total 3237910091.91 2661054947.81
Less: Provision 248678986.50 249258528.74
Total 2989231105.41 2411796419.07
(2) Accounts receivable are classified and disclosed according to the bad debt provision method
In RMB Yuan
Ending balance
Balance Provision
Category
Ratio Ratio Book value
Amount Amount
(%)(%)
Individually analyzed for provision 1717957980.28 53.06 139066311.49 8.09 1578891668.79
Accounts receivable analyzed as
1519952111.6346.94109612675.017.211410339436.62
groups for provision
Total 3237910091.91 100.00 248678986.50 2989231105.41
38Beginning balance
Balance Provision
Category
Ratio Ratio Book value
Amount Amount
(%)(%)
Individually analyzed for provision 1155752310.55 43.43 139066311.49 12.03 1016685999.06
Accounts receivable analyzed as
1505302637.2656.57110192217.257.321395110420.01
groups for provision
Total 2661054947.81 100.00 249258528.74 2411796419.07
Provision for bad debts based on credit risk characteristics:
In RMB Yuan
Ending balance
Aging Expected credit loss rate Expected credit loss for the
Estimated face value for default
(%) entire duration
Within 1 year 1380421113.86 0.07 954519.49
1 to 2 years 11080482.89 1.67 185470.95
2 to 3 years
Over 3 years 128450514.88 84.45 108472684.57
Total 1519952111.63 109612675.01
(3) Provision for bad debts accrued recovered or reversed in this period
In RMB Yuan
Current period change amount
Category Beginning balance Withdrawal or Ending balance
Provision
reversal
Individually analyzed for provision 139066311.49 139066311.49
Accounts receivable analyzed as
110192217.2510487313.9411066856.18109612675.01
groups for provision
Total 249258528.74 10487313.94 11066856.18 248678986.50
(4) Accounts receivable and contract assets of the top five ending balances collected by debtor
As of June 30 2024 the top five accounts receivable had a total balance of 1438032537.33 yuan accounting for 44.41% of the total
ending balance of accounts receivable.
5. Contract assets
(1) Contract asset situation
In RMB Yuan
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Contract
1492931270.28670236570.38822694699.902104221673.68661344707.381442876966.30
assets
Total 1492931270.28 670236570.38 822694699.90 2104221673.68 661344707.38 1442876966.30
(2) Disclosure of Contract Assets Classified by Bad Debt Provision Method
In RMB Yuan
39Ending balance
Item Book balance Bad debt reserves
Book value
Amount Ratio (%) Amount Ratio (%)
Individually analyzed
1492931270.28100.00670236570.3844.89822694699.90
for provision
Total 1492931270.28 100.00 670236570.38 822694699.90
Beginning balance
Item Book balance Bad debt reserves
Book value
Amount Ratio (%) Amount Ratio (%)
Individually analyzed
2104221673.68100.00661344707.3831.431442876966.30
for provision
Total 2104221673.68 100.00 661344707.38 1442876966.30
Provision for bad debts based on individual items：
In RMB Yuan
Ending balance
Item
Book balance Bad debt reserves Provision ratio (%)
Contract assets 1492931270.28 670236570.38 44.89
Total 1492931270.28 670236570.38
(3) Provision for impairment of contract assets in this period
In RMB Yuan
Provision for this Withdrawal or reversal
Item Beginning balance Ending balance
period in this period
Contract assets 661344707.38 17506800.00 8614937.00 670236570.38
Total 661344707.38 17506800.00 8614937.00 670236570.38
6. Other receivables
In RMB Yuan
Item Ending balance Beginning balance
Dividend receivable 22469320.00
Other receivables 432539377.40 894268431.82
Total 455008697.40 894268431.82
(1)Dividend receivable
In RMB Yuan
Project (or investee) Ending balance Beginning balance
Chongqing Chang'an Kuayue Vehicle Co. Ltd 3430000.00
Zhongfa Lian Investment Co. Ltd 19039320.00
Total 22469320.00
(2)Other receivables
1) Aging analysis of other receivables
40In RMB Yuan
Aging Ending balance Beginning balance
Within 1 year 366712847.70 832441463.15
1 to 2 years 11024391.63 7857497.78
2 to 3 years 3555131.73 50952225.85
Over 3 years 58836843.69 10686669.55
Total 440129214.75 901937856.33
Less: Provision 7589837.35 7669424.51
Total 432539377.40 894268431.82
2) Classified disclosure based on bad debt provision method
In RMB Yuan
Beginning balance
Item Book balance Bad debt reserves
Book value
Amount Ratio (%) Amount Ratio (%)
Individually analyzed
233971501.6353.167256494.253.10226715007.38
for provision
Accounts receivable
analyzed as groups for 206157713.12 46.84 333343.10 0.16 205824370.02
provision
Total 440129214.75 100.00 7589837.35 432539377.40
Beginning balance
Item Book balance Bad debt reserves
Book value
Amount Ratio (%) Amount Ratio (%)
Individually analyzed
720811020.1879.927256494.251.01713554525.93
for provision
Accounts receivable
analyzed as groups for 181126836.15 20.08 412930.26 0.23 180713905.89
provision
Total 901937856.33 100.00 7669424.51 894268431.82
3) Provision for bad debts
In RMB Yuan
Phase 1 Phase 2 Phase 3
Expected credit loss for Expected credit loss for
Expected credit loss Bad debt reserves the entire duration (no the entire duration (credit Total
for the next 12
credit impairment has impairment already
months
occurred) occurred)
Year end balance of the
412930.267256494.257669424.51
previous year
Last year's year-end
balance in the current
period
— — Entering the
second stage
——Entering the third
stage
— — Return to the
41second stage
——Return to the first
stage
Provision for this
15545.9615545.96
period
Current period reversal 195133.12 195133.12
This period's resale
Verification in this
period
Other changes -100000.00 -100000.00
Total 333343.10 - 7256494.25 7589837.35
The changes in the book balance of other receivables are as follows:
In RMB Yuan
Phase 1 Phase 2 Phase 3
Expected credit loss for Expected credit loss for
Bad debt reserves Expected credit loss the entire duration (no the entire duration (credit Total
for the next 12
credit impairment has impairment already
months
occurred) occurred)
Year end balance of the
894681362.087256494.25901937856.33
previous year
Last year's year-end
balance in the current
period
— — Entering the
second stage
——Entering the third
stage
— — Return to the
second stage
——Return to the first
stage
Newly added in this
3020554950.023020554950.02
period
Termination
confirmation for this 3482363591.60 3482363591.60
period
Other changes
Total 432872720.50 7256494.25 440129214.75
4) Provision for bad debts accrued recovered or reversed in this period
In RMB Yuan
Beginning Change amount in the current period
Category Ending balance
balance Provision Other additions Write-off
Individually analyzed for
7256494.257256494.25
provision
Accounts receivable analyzed
412930.2615545.96100000.00195133.12333343.10
as groups for provision
42Total 7669424.51 15545.96 100000.00 195133.12 7589837.35
5) Other receivables are classified by nature
In RMB Yuan
Nature Ending balance Beginning balance
Subsidies receivable 103070000.00 586119720.60
Prepaid equity investment funds 93753846.00 95100000.00
Reserve fund 14290880.49 74416322.72
Deposit and earnest money 13955872.42 15176743.46
Others 215058615.84 131125069.55
Total 440129214.75 901937856.33
6) Other receivables with the top five ending balances collected by debtor
As of June 30 2024 the top five ending balances of other receivables amounted to RMB 268755223.16 accounting for 61.06%
of the total ending balance of other receivables.
7. Prepayments
(1) Prepayments listed by aging
In RMB Yuan
Ending balance Beginning balance
Aging
Amount Ratio (%) Amount Ratio (%)
Within 1 year 580422457.73 99.63 281522043.69 97.86
1 to 2 years 1698426.16 0.29 1248976.74 0.43
2 to 3 years 161358.87 0.03 128513.87 0.04
Over 3 years 298916.65 0.05 4811476.32 1.67
Total 582581159.41 100.00 287711010.62 100.00
(2) Prepayments of the top five ending balances collected by prepayment object
On June 30 2024 the top five prepaid accounts amounted to 351100301.86 yuan accounting for 60.27% of the total prepaid accounts
8. Inventory
(1) Classification of inventory
In RMB Yuan
Ending balance Beginning balance
Provision for Provision for
inventory inventory
depreciation/pro depreciation/pro
Item vision for vision for
Balance Net value Balance Net value
impairment of impairment of
contract contract
performance performance
costs costs
Commodit
12382359309.93167078148.5912215281161.3411890690577.52202418376.8911688272200.63
y stock
Work in
1198938919.8768095900.341130843019.531291990811.5363870083.001228120728.53
progress
Raw
678385842.33320486654.84357899187.49748776600.96378040520.19370736080.77
materials
43Work in
60000715.7460000715.7481586613.2181586613.21
transit
Consigned
processing 5067865.00 5067865.00 27617777.37 27617777.37
material
Ohers 23770549.84 23770549.84 69514296.42 69514296.42
Total 14348523202.71 555660703.77 13792862498.94 14110176677.01 644328980.08 13465847696.93
(2) Provision for inventory depreciation/provision for impairment of contract performance costs
In RMB Yuan
Beginning Current reversal or
Item Current provision amount Ending balance
balance cancellation amount
Raw materials 378040520.19 19020475.09 76574340.44 320486654.84
Work in progress 63870083.00 23917940.57 19692123.23 68095900.34
Commodity stock 202418376.89 94627939.52 129968167.82 167078148.59
Total 644328980.08 137566355.18 226234631.49 555660703.77
Our company makes provisions for inventory impairment based on whether the cost exceeds the net realizable value. Net realizable
value refers to the estimated selling price of inventory in daily activities minus the estimated costs to be incurred until completion
estimated sales expenses and related taxes and fees. The reason for the reversal or cancellation of inventory impairment provisions in
this year is that the net realizable value of inventory for which inventory impairment provisions were made in previous years has
increased or sales have been realized in the current year.
9. Other current assets
In RMB Yuan
Item Ending balance Beginning balance
Accrual input tax 1410064211.95 1393763691.38
Prepaid taxes 820109176.93 336795620.72
Fixed deposits and others 4561179.72 8004894049.22
Total 2234734568.60 9735453361.32
4410. Investment in other equity instruments
In RMB Yuan
Gains
Losses Reason for being
recognized Accumulated Accumulated
included in designated
in other gains recognized losses recognized
other Dividend income
Beginning comprehensi in other in other as fair value
Item Ending balance comprehensi recognized in this
balance ve income comprehensive comprehensive through other
ve income period
for the income at the end income at the end
for this comprehensive
current of this period of this period
period income
period
Zhong Fa Lian Investment Unlisted equity
14801858.7214801858.726198141.2819039320.00
Co. Ltd. instruments
China South Industry Unlisted equity
335540000.00335540000.00178519200.00
Group Finance Co. Ltd. instruments
Guoqi (Beijing) Intelligent
Network Association Unlisted equity
2958223.992958223.9941776.01
Automotive Research instruments
Institute Co. Ltd.Guoqi Automobile Power Unlisted equity
39590000.0039590000.00410000.00
Cell Research Co. Ltd. instruments
China South Industry
Unlisted equity
Group Financial Leasing 28300000.00 28300000.00 2252000.00
instruments
Co. Ltd.Guoqi (Beijing) Intelligent
Unlisted equity
Connected Vehicle 83000000.00 83000000.00 33000000.00
instruments
Research Institute Co. Ltd
Total 504190082.71 504190082.71 211519200.00 8901917.29 19039320.00
11. Long-term equity investments
In RMB Yuan
45Changes in this period
Other Declare the Provision
Investee Beginning balance Investment comprehensive Other equity distribution of Ending balance ending
Addition income under balance
income changes cash dividends
equity method
adjustments or profits
I. Joint Venture
Nanchang Jiangling Holding Co.
2106206520.20181840492.722.892288047015.81
Ltd.Changan Mazda Automobile Co.
878239492.13(102147632.24)776091859.89
Ltd.Changan Mazda Engine Co. Ltd. 805005706.40 1138226.54 806143932.94
Changan Ford Automobile Co.
618761192.06618761192.06
Ltd.Subtotal 3789451718.73 699592279.08 2.89 4489044000.70
II. Associates
Changan Automobile Financing
3041392973.86201365024.223242757998.08
Co.Ltd
Nanjing Leading Equity
Investment Management Co. Ltd. 2645793326.69 (7834395.32) 2637958931.37
(Limited Partnership)
Zhongqi Chuangzhi Technology
448515220.54(8958355.14)439556865.40
Co. Ltd.Chongqing Changan Kuayue
228765251.642148873.70(3430000.00)227484125.34
Automobile Co. Ltd.Chongqing Changxin Zhiqi Private
Equity Investment Fund 204518396.38 8011212.22 212529608.60
Partnership (Limited Partnership)
Shidai Changan Power Battery Co.
342065472.72(95914775.21)246150697.51
Ltd
Chongqing Changxian Intelligent
105033367.07649948.26105683315.33
Technology Co. Ltd
Chongqing Changan Innovation
Private Equity Investment Fund
70104473.99308.1470104782.13
Partnership Enterprise (Limited
Partnership)
46Changes in this period
Other Declare the Provision
Investee Beginning balance Investment comprehensive Other equity distribution of Ending balance ending
Addition income under balance
income changes cash dividends
equity method
adjustments or profits
Changan Ford New Energy Vehicle
67713664.93(17113068.64)50600596.29
Technology Co. Ltd
Anhe Chongqing Dingfeng
Automobile Contract Private 61692352.41 370450.00 62062802.41
Equity Investment Fund
Hunan Guoxin Semiconductor
28502232.09161981.1328664213.22
Technology Co. Ltd.Nanjing Leading Equity
1107400.12(6888.58)1100511.54
Investment Partnership
Nanjing Chelai Travel Technology
584824.65(251725.81)333098.84
Co. Ltd.Avatr Technology (Chongqing)
2295710259.79(590923775.44)(184358.40)3221300.641707823426.59
Co. Ltd
Chongqing Changan Kuayue 69600000.0
(578713.15)69021286.85
Automobile Sales Co. Ltd. 0
Chongqing Changan Kuayue
1018842.331018842.33
Vehicle Marketing Co. Ltd
Hangzhou Chelizi Intelligent
1111663.20(22553.03)1089110.17
Technology Co. Ltd.Anhe (Chongqing) Equity
Investment Fund Management Co. 5970815.86 (260289.22) 5710526.64
Ltd.Master Changan Automobile Co.
43377199.6613827379.83(5967137.61)51237441.88
Ltd.Time FAW Power Battery Co. Ltd. 276006999.87 51497228.69 327504228.56
Chongqing Wutong Chelian
79781303.571774491.9181555795.48
Technology Co. Ltd.Western Car Network (Chongqing)
5183910.52(112511.72)5071398.80
Co. Ltd.Chongqing Anda Semiconductor
45009157.1889737.9445098895.12
Co. Ltd
47Changes in this period
Other Declare the Provision
Investee Beginning balance Investment comprehensive Other equity distribution of Ending balance ending
Addition income under balance
income changes cash dividends
equity method
adjustments or profits
69600000.0
Subtotal 9997940266.74 (441061572.89) (6151496.01) 3221300.64 (3430000.00) 9620118498.48
0
69600000.0
Total 13787391985.47 258530706.19 (6151493.12) 3221300.64 (3430000.00) 14109162499.18
0
4812. Investment property
(1) Investment real estate using cost measurement model
Cost Model
In RMB Yuan
Item Buildings Total
I. Original cost
1. Opening balance 10050100.00 10050100.00
2. Increase in current period
3. Decrease in current period
4. Ending balance 10050100.00 10050100.00
II. Accumulated depreciation and amortization
1. Opening balance 3854096.52 3854096.52
2. Increase in current period 113355.78 113355.78
(1) Provision or amortization 113355.78 113355.78
3. Decrease in current period
4. Ending balance 3967452.30 3967452.30
III. Impairment provision
1. Opening balance
2. Increase in current period
3. Decrease in current period
4. Ending balance
IV. Net Value
1. Ending 6082647.70 6082647.70
2. Beginning 6196003.48 6196003.48
13. Fixed assets
In RMB Yuan
Item Ending balance Beginning balance
Fixed assets 19515251831.25 19994084908.14
Total 19515251831.25 19994084908.14
(1) Details of fixed assets
In RMB Yuan
Item Buildings Machinery Vehicles Other Equipment Total
1. Original book
value:
10402849881.7028090256805.161669155485.7910398235511.86
Opening balance 50560497684.51
purchase 6947419.08 30268855.34 342511.77 9559380.24 47118166.43
Transfer of ongoing
59811701.10797829206.624125707.20283210721.101144977336.02
construction projects
Disposal or scrapping 1102004.53 587091101.53 461381244.23 61225592.30 1110799942.59
49Decrease in exchange
848949.5911264599.6612113549.25
rate fluctuations
Closing balance 10468506997.35 28330414816.00 1212242460.53 10618515421.24
50629679695.12
2. Accumulated
depreciation
Opening balance 3252045432.73 17904036679.47 770934918.45 5827737532.10
27754754562.75
Provision 173016577.99 876874872.98 124174688.28 291953340.10 1466019479.35
Disposal or scrapping 340561.98 543273493.12 237736912.80 55900526.51 837251494.41
Decrease in exchange
1120727.04724512.211845239.25
rate fluctuations
3423600721.7018236913547.12657372693.936063790345.69
Closing balance 28381677308.44
3. Provision for
impairment
Opening balance 63168825.18 2319193144.50 33357247.40 395938996.54 2811658213.62
Increased amount in
this period
Disposal or scrapping 514180.92 42797195.17 30456280.26 5140001.84 78907658.19
Closing balance 62654644.26 2276395949.33 2900967.14 390798994.70 2732750555.43
4. Book value
6982251631.397817105319.55551968799.464163926080.85
Closing book value 19515251831.25
7087635623.797867026981.19864863319.944174558983.22
Initial book value 19994084908.14
(2) Fixed assets that are temporarily unused
On June 30 2024 fixed assets with a book value of RMB 148776035.09 (December 31 2023: RMB 187074047.38) were temporarily
idle due to product upgrades and other reasons.
(3) The fixed assets which are rented out under operating leases
In RMB Yuan
Item Ending
Buildings 113748399.06
Machinery
Vehicles 415340505.59
Other Equipment
Total 529088904.65
(4) Fixed assets with incomplete property rights certificates
As of June 30 2024 our company does not have any fixed assets without property ownership certificates.
14. Construction in progress
(1) Details of construction in progress
In RMB Yuan
50Ending balance Beginning balance
Item
Balance Provision Carrying amount Balance Provision Carrying amount
Engineering
construction 1097713624.86 1097713624.86 750986351.54 750986351.54
project
Production line
construction and
technological 678432023.02 678432023.02 626139410.60 626139410.60
renovation
projects
Engine
Technical
104880824.5383959140.47204550269.22183628585.16
Renovation 20921684.06 20921684.06
Project
Environmental
relocation 17147783.12 17147783.12 59586596.48 59586596.48
project
Other projects 426165420.83 8841139.67 417324281.16 302845555.72 8841139.67 294004416.05
Total 2324339676.36 29762823.73 2294576852.63 1944108183.56 29762823.73 1914345359.83
51(2) Movements of significant construction in progress
In RMB Yuan
The project
Budget investments’
Progress of
Transferred to
Item Beginning balance Addition Ending balance proportion construction Source of funds
(In 1000 RMB) fixed assets
of budget (%)
(%)
Engineering construction
831204.00 750986351.54 352473744.75 5746471.43 1097713624.86 53.47 53.47 Self raised
project
Production line construction Self raised and
and technological renovation 683360.77 626139410.60 632925898.19 580633285.77 678432023.02 55.78 55.78 additional
projects issuance
Engine Technical Renovation
44276.00 204550269.22 80167707.44 179837152.13 104880824.53 69.81 69.81 Self raised
Project
Environmental relocation
182476.00 59586596.48 39251976.96 81690790.32 17147783.12 78.08 78.08 Self raised
project
Self raised and
Other projects 302845555.72 420389501.48 297069636.37 426165420.83 additional
issuance
Total 1944108183.56 1525208828.82 1144977336.02 2324339676.36
52(3) The movement of impairment for construction in progress is as follows:
In RMB Yuan
Beginning
Item Addition Deduction Ending balance Reason
balance
Engine Technical
20921684.0620921684.06
Renovation Project
Other projects 8841139.67 8841139.67
Total 29762823.73 29762823.73 --
15. Right-of-use assets
In RMB Yuan
Item Buildings Total
1. Original book value
Opening balance 338339110.19 338339110.19
Increased amount in this period 68030394.59 68030394.59
Decreased amount in this period 36048483.65 36048483.65
Closing balance 370321021.13 370321021.13
2. Accumulated depreciation
Opening balance 128858434.15 128858434.15
Increased amount in this period 46388885.07 46388885.07
Decreased amount in this period 22625153.07 22625153.07
Closing balance 152622166.15 152622166.15
3. Provision for impairment
Opening balance
Increased amount in this period
Decreased amount in this period
Closing balance
4. Book value
Closing book value 217698854.98 217698854.98
Initial book value 209480676.04 209480676.04
16. Intangible assets
In RMB Yuan
Non-patent Software use Trademark use
Item Land use rights Patent Total
technology rights rights
1. Original book
value
85581514.7018444521672.272624669183.7824374646606.97
Opening balance
2337635635.46882238600.76
Purchase 1537434.26 13452389.23 14989823.49
Internal research
486094425.23486094425.23
and development
Exchange rate
2489.732489.73
fluctuations
53increase
Management 103488.02 103488.02
Closing balance 2337635635.46 85581514.70 18932153531.76 895587501.97 2624671673.51 24875629857.40
2. Accumulated
amortization
513880306.267107014737.05432976863.448831588588.61
Opening balance
15685994.98762030686.88
Provision 21736268.40 4282675.74 1062805960.74 20805182.88 119544243.72 1229174331.48
Decrease in
exchange rate 1810.06 1810.06
fluctuations
Management 103488.02 103488.02
Closing balance 535616574.66 19968670.72 8169820697.79 782730571.68 552521107.16 10060657622.01
3. Provision for
impairment
Opening balance 453960028.77 23617923.17 19916416.63 497494368.57
Increased amount
in this period
Decreased amount
in this period
Closing balance 453960028.77 23617923.17 19916416.63 497494368.57
4. Book value
Closing book value 1802019060.80 65612843.98 10308372805.20 89239007.12 2052234149.72 14317477866.82
Initial book value 1823755329.20 69895519.72 10883546906.45 96589990.71 2171775903.71 15045563649.79
On June 30 2024 the proportion of intangible assets formed through internal research and development to the year-end book value of
intangible assets was 72.00% (December 31 2023: 72.34%)
As of June 30 2024 there were no outstanding land use rights certificates (as of December 31 2023: none)
17. Goodwill
(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 73465335.00 73465335.00
Deepal Automobile Technology Co. Ltd 1800926049.16 1800926049.16
Total 1884195778.16 1884195778.16
(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
5418. Long-term deferred expenses
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Extended
21709036.171579704.4820129331.69
insurance premium
other 2453183.89 1396571.17 1056612.72
Total 24162220.06 2976275.65 21185944.41
19. 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 3275891936.80 498479912.80 3326010289.07 505667423.10
Accrued expenses and
9883630392.441498837537.389745432595.401478634793.00
contingent liabilities
Unpaid tech development
expense and advertisement 151580931.46 22737139.72 108882829.52 16332424.43
expense
Deferred income 3017975989.26 495126557.40 3143730047.41 516280314.00
Unpaid salary and bonus and
6132578466.67919886770.005069078308.78762158961.20
others
Total 22461657716.63 3435067917.30 21393134070.18 3279073915.73
(2) Deferred income tax liabilities that are not offset:
In RMB Yuan
Ending balance Beginning balance
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Changes in fair value of trading financial
256285702.5938442855.38271136632.2240670494.83
assets
Fair value adjustment of business
8615125913.679077843422.40
combination not under common control 1292268887.05 1361676513.36
Long-term equity investment 1045313517.71 156797027.65 1053139619.28 157970942.89
Other 820249030.60 123037354.59 234662947.29 36576889.00
Total 10736974164.57 1610546124.67 10636782621.19 1596894840.08
(3) Deferred tax assets or liabilities presented as net amount after offsetting
In RMB Yuan
Deferred tax assets and Closing balance of Deferred tax assets and Opening balance of
Item liabilities offset at the deferred income tax liabilities offset amount deferred income tax
end of the period assets or liabilities after at the beginning of the assets or liabilities after
55offsetting period offsetting
Deferred tax assets 24987590.16 3410080327.14 30819858.08 3248254057.65
Deferred tax liabilities 24987590.16 1585558534.51 30819858.08 1566074982.00
(4) Details of unrecognized deferred tax assets
In RMB Yuan
Item Ending balance Beginning balance
The deductible temporary difference 840705561.08 1764330466.02
The deductible tax loss 9649464641.06 10207352860.58
Total 10490170202.14 11971683326.60
(5) Maturity period for unrecognized deductible tax losses:
In RMB Yuan
Year Ending balance Beginning balance Notes
2024943008433.371026714782.44
20251414119466.191484227541.07
20262597065395.182622637735.99
20272195399362.362162063388.55
2028 and beyond 2499871983.96 2911709412.53
Total 9649464641.06 10207352860.58
20. Other non-current assets
In RMB Yuan
Ending balance Beginning balance
Provi
Provisi sion
Item on for for
Book balance Book value Book balance Book value
impair impa
ment irme
nt
Prepaid project
454756000.00454756000.00450000000.00450000000.00
funds
Fixed deposits and
1400216231.981400216231.98
others
Total 1854972231.98 1854972231.98 450000000.00 450000000.00
21 Assets with restricted ownership or use rights
In RMB Yuan
Ending balance
Item
Book balance Book value limited type Restricted situation
Monetary
1389380301.41 1389380301.41 Margin and other Margin and other
funds
56Accounts
5897473036.76 5897473036.76 Bill Pledge Bill Pledge
receivable
Total 7286853338.17 7286853338.17
Beginning balance
Item
Book balance Book value limited type Restricted situation
Monetary
945084846.77 945084846.77 Margin and other Margin and other
funds
Accounts
7309419058.87 7309419058.87 Bill Pledge Bill Pledge
receivable
Total 8254503905.64 8254503905.64
22. Short-term loans
In RMB Yuan
Item Ending balance Beginning balance
Guaranteed loan 54056333.40 30039416.74
Total 54056333.40 30039416.74
Note: As of June 30 2024 the annual interest rate for the aforementioned loan is 3.30% -4.50% (December 31 2023: 3.90% -4.50%).On June 30 2024 there were no overdue short-term loans (December 31 2023: none).
23. Trading financial liabilities
In RMB Yuan
Item Ending balance Beginning balance
Trading financial liabilities 12941513.71
Total 12941513.71
24. Notes payable
In RMB Yuan
Item Ending balance Beginning balance
Commercial acceptance bill 2500012398.15 2943672886.95
Bank acceptance bill 38311530205.59 34512997041.12
Total 40811542603.74 37456669928.07
25. Accounts payable
In RMB Yuan
Item Ending balance Beginning balance
Accounts payable 34274539923.58 38289947321.45
Total 34274539923.58 38289947321.45
57As of June 30 2024 there are no significant accounts payable with an aging of over one year.
26. Other payables
In RMB Yuan
Item Ending balance Beginning balance
Other payables 5307800744.02 5880882512.97
Total 5307800744.02 5880882512.97
(1) Other payables
1） Listed by nature of payment
In RMB Yuan
Item Ending balance Beginning balance
Purchase and construction of fixed assets intangible
1329509916.071550681604.04
assets and project guarantee deposits
Customer and supplier guarantee deposits 816298813.46 874043416.71
Advertising expenses 688245554.39 648229494.43
Storage and shipping fees 491482593.10 488072948.00
Repair and processing fees 302513491.29 295480247.86
Treasury stock repurchase obligation 228624172.79 382277095.96
National subsidy pre allocation 183954150.00 138398550.00
Advance payment for land and factory disposal 150000000.00 150000000.00
Others 1117172052.92 1353699155.97
Total 5307800744.02 5880882512.97
27. Advance receipts
In RMB Yuan
Item Ending balance Beginning balance
Unearned rent 686755.00
Total 686755.00
28. Contract liabilities
In RMB Yuan
Item Ending balance Beginning balance
Advance payment 4827700376.12 6780177101.71
Advance service payment 1168892322.30 1143615751.06
Total 5996592698.42 7923792852.77
5829. Payroll payable
(1) Payroll payable
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Short term salary
2645581324.215731387936.464925702505.453451266755.22
benefits
Defined contribution
87255844.66521203732.21508061843.24100397733.63
plans
Early retirement
17824168.3935467165.4934250136.7719041197.11
benefits
Total 2750661337.26 6288058834.16 5468014485.46 3570705685.96
(2) Short term salary benefits：
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
1. Salary bonus allowance
2170965985.994701463267.893881089785.772991339468.11
and subsidy
2. Employee benefit 20125393.92 132886506.91 150210174.88 2801725.95
3. Social insurance 32862900.03 388916286.58 374207840.72 47571345.89
Medical insurance 20183997.44 357138155.14 341031841.88 36290310.70
Industrial injury
10754834.2631778131.4431268084.8211264880.88
insurance
Maternity insurance 1924068.33 1907914.02 16154.31
Supplementary
22920911.36302942993.87306402301.5819461603.65
medical insurance
4. Housing accumulation
398706132.91205178881.21213792402.50390092611.62
fund
5. Labor fund and employee
2645581324.215731387936.464925702505.453451266755.22
education fund
Total 2170965985.99 4701463267.89 3881089785.77 2991339468.11
(3) Defined contribution plans：
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
1. Basic retirement
77888132.00505111458.01492453461.5790546128.44
security
2. Unemployment
9367712.6616092274.2015608381.679851605.19
insurance
Total 87255844.66 521203732.21 508061843.24 100397733.63
30. Taxes payable
In RMB Yuan
59Item Ending balance Beginning balance
Value-added tax 390107324.07 366815941.84
Consumption tax 314588062.10 307949880.80
Corporate income tax 77516433.13 1136075075.53
City maintenance and construction tax 37916535.31 51726243.42
Others 45662833.64 66156765.79
Total 865791188.25 1928723907.38
31. Non-current liability within 1 year
In RMB Yuan
Item Ending balance Beginning balance
Lease liabilities due within one year 83760356.87 74887042.88
Long term loans due within one year 40000000.00 4000000.00
Defined benefit plans that expire within
1190000.00
one year
Total 123760356.87 80077042.88
32. Other current liabilities
In RMB Yuan
Item Ending balance Beginning balance
Accrued commercial discount payable 5714368347.23 5277859952.56
Accrued transportation fee 830318163.53 428540512.92
Accrued market development expense 701497074.01 1229871896.85
Accrued technology royalty 503093753.27 712779170.48
Accrued labor service fee 88008794.01 52021714.94
Accrued negative points for fuel
47548100.1176611049.98
consumption
Others 1273710568.38 1120252102.19
Total 9158544800.54 8897936399.92
33. Long-term Loan
In RMB Yuan
Item Ending balance Beginning balance
Credit loan 36000000.00 72000000.00
Total 36000000.00 72000000.00
Note: As of June 30 2024 the interest rate for the aforementioned loan is 1.00% (December 31 2023: 1.00%).
6034. Bonds payable
(1) Bonds payable
In RMB Yuan
Item Ending balance Beginning balance
Corporate bonds 999656603.76 999607547.16
Total 999656603.76 999607547.16
(2) Changes in payable bonds
In RMB Yuan
Defa
Interest Excess
Bond Coupon Release Issuance Opening Beginning ult
Par value Term accrued at discount
Name rate (%) date amount balance balance situa
face value amortization
tion
Technology
Innovation 1000000000.00 3.00 2022.12 5 years 1000000000.00 999607547.16 15166666.66 49056.60 999656603.76 No
Bond
Total 1000000000.00 999607547.16 15166666.66 49056.60 999656603.76
35. Lease liabilities
In RMB Yuan
Item Ending balance Beginning balance
Lease liabilities 208473707.47 209141440.95
Less：Reclassify non current liabilit ies
83760356.8774887042.88
due within one year
Total 124713350.60 134254398.07
36. Long-term payables
In RMB Yuan
Item Ending balance Beginning balance
Long-term payables 816282263.75 804264787.97
Special payables 141609973.68 148181330.60
Total 957892237.43 952446118.57
(1) Long-term payables
In RMB Yuan
Item Ending balance Beginning balance
Accounts payable for construction projects 816282263.75 804264787.97
Total 816282263.75 804264787.97
61(2) Special payables
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Intelligent manufacturing
79118517.265958812.0010220100.8574857228.41
project
Lightweight design of
6769952.632513619.834256332.80
automobile structure
Others 62292860.71 24037064.59 23833512.83 62496412.47
Total 148181330.60 29995876.59 36567233.51 141609973.68
37. Long-term payroll payable
In RMB Yuan
Item Ending balance Beginning balance
1. Post employment benefits - net
23661616.4926880000.00
liabilities for defined benefit plans
2. Dismissal benefits 3534000.00 3534000.00
Total 27195616.49 30414000.00
38. Contingent liabilities
In RMB Yuan
Item Ending balance Beginning balance
Warranty 6707961419.04 5976561810.09
Contingent liabilities of contract
296312561.75300479606.70
performance
Total 7004273980.79 6277041416.79
39. Deferred income
In RMB Yuan
Liability Beginning balance Addition Deduction Ending balance
Related to assets: 610407171.08 104408720.03 505998451.05
Production and
610407171.08104408720.03505998451.05
construction subsidies
Related to gains: 108433372.44 115308720.03 53188720.03 170553372.44
R&D technology
77651164.1277651164.12
subsidies
Other government
30782208.32115308720.0353188720.0392902208.32
subsidies
Total 718840543.52 115308720.03 157597440.06 676551823.49
6240. Other non-current liabilities
In RMB Yuan
Item Ending balance Beginning balance
Advance service payment 1719954719.90 1497773818.69
Net other non-current liabilities 1719954719.90 1497773818.69
41. Share capital
In RMB Yuan
Changes（+，-）Beginning
Provident
balance Additional Stock
Ending balance
fund Others Subtotal
issued dividend
transfer
Total shares 9919323000.00
9919323000.00
42. Capital reserves
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Share premium 6804368521.99 6804368521.99
Capital reserve
transferred arising from 44496899.00 44496899.00
the old standards
reserve of equity
17015985.2017015985.20
investments
Share-based payments 678067785.52 181288200.00 859355985.52
Other capital reserves
707338445.9910747882.00718086327.99
(Note)
Total 8251287637.70 192036082.00 8443323719.70
43. Treasury stock
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Treasury stock 382277095.96 153652923.17 228624172.79
Total 382277095.96 153652923.17 228624172.79
Note: The annual change in stock capital is due to the unlocking of incentive equity and the distribution of dividends to incentive
recipients by our company.
6344. Other comprehensive income
In RMB Yuan
Amount for this reporting period
Deduct: other Amount
Deduct: amounts
comprehensiv attributa
transferred to
e income in ble to
income statement
Beginning the previous minority
Item which were Deduct:
balance Amount period and Amount attributable interests
Ending balance
recognized in Income
before tax transferred to to owners
other tax
retained
comprehensive
earnings in
income in prior
the current
period
period
I. Other comprehensive income that cannot be
transferred to profit or loss under the equity 168360416.57 2.89 2.89 168360419.46
method
Change in net liability or assets from
355000.00355000.00
defined benefit plan
Other comprehensive income that
cannot be transferred to profit or loss under the (4219273.73) 2.89 2.89 (4219270.84)
equity method
Changes in the fair value of other
172224690.30172224690.30
equity instrument investments
II. Other comprehensive income will be
reclassified to profit or loss in subsequent (50041632.53) 82398381.44 82398381.44 32356748.91
period
Other comprehensive income that can
be transferred to profit or loss under the equity (75815.98) (184358.40) (184358.40) (260174.38)
method
Foreign currency translation difference (49965816.55) 82582739.84 82582739.84 32616923.29
Total 118318784.04 82398384.33 82398384.33 200717168.37
6445. Special reserves
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Safety fund 54323330.34 63437107.75 23629939.10 94130498.99
Total 54323330.34 63437107.75 23629939.10 94130498.99
46. Surplus reserves
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Statutory surplus 4276245864.64 4276245864.64
Total 4276245864.64 4276245864.64
47. Retained earnings
In RMB Yuan
Item Current period Prior period
Retained earnings at beginning of the year 49617932431.73 41379489865.45
Add: Profits attributable to parent company for the
2831743111.827652979346.80
current year
Less: Ordinary share dividend of cash 3412477663.18 2341414868.12
Retained earnings at the end of year 49037197880.37 46691054344.13
48. Operating revenue and cost
In RMB Yuan
Amount for this period Amount for prior period
Item
Revenue Cost Revenue Cost
Main business 75031549290.98 65087923270.42 64198056038.61 54041063818.77
Other business 1691100432.81 1046383884.70 1294042830.40 748972479.99
Total 76722649723.79 66134307155.12 65492098869.01 54790036298.76
49. Tax and surcharges
In RMB Yuan
Item Amount for this period Amount for prior period
Consumption tax 1592006613.71 1666317085.12
City maintenance and construction tax 171545523.51 208432679.24
Educational surcharge 118956790.32 140534177.17
Others 170720143.87 170890307.46
Total 2053229071.41 2186174248.99
6550. General and administrative expenses
In RMB Yuan
Item Amount for this period Amount for prior period
Payroll and welfare 1892090590.24 1787629699.79
Depreciation and amortization 281069352.60 231626256.31
Traffic expenses and travelling expenses 30730486.17 34511835.46
Share-based Payment 181288200.00 187899000.00
Others 41685231.78 30293616.99
Total 2426863860.79 2271960408.55
51. Operating expenses
In RMB Yuan
Item Amount for this period Amount for prior period
Promotion advertising fee 1074267528.42 1084798251.79
Sales service fee 1010007195.86 460817474.16
Payroll and welfare 489933234.61 430787399.64
Transportation and storage fees 343523615.84 220838227.15
Travelling expenses 74258106.92 47325735.92
Package expenses 28828727.45 11749644.92
Others 57170005.17 24080857.61
Total 3077988414.27 2280397591.19
52. Research and development expenses
In RMB Yuan
Item Amount for this period Amount for prior period
Payroll and welfare 1392005346.65 1349892332.55
Depreciation and amortization 1214228193.17 1015646669.62
Subcontract fee 129875960.49 287631512.09
Material fee 100893665.34 173948774.18
Test fee 36371652.96 64510633.02
Others 38717494.79 72974183.02
Total 2912092313.40 2964604104.48
53. Financial expenses
In RMB Yuan
Item Amount for this period Amount for prior period
Interest expenses 39521477.44 36814471.44
Less: Interest income 520495393.22 532594819.89
Net exchange loss (net income indicated
(93277656.33)24815219.82
by a "-" sign)
Others 24866208.10 17697023.74
Total (549385364.01) (453268104.89)
6654. Other income
Government subsidies related to daily activities
In RMB Yuan
Item Amount for this period Amount for prior period
Government subsidies related to daily
activities
Among them: Industry support subsidies 1185343468.12 657988649.18
Other government subsidies 257167183.20
Total 1442510651.32 657988649.18
55. Fair value change
In RMB Yuan
Source of income from changes in fair value Amount for this period Amount for prior period
Financial assets held for trading (13487271.96) 14575284.30
Financial liabilities held for trading (21536907.46) (37909945.45)
Total (35024179.42) (23334661.15)
56. Investment income
In RMB Yuan
Item Amount for this period Amount for prior period
Long-term equity investment losses accounted for by the equity
252582688.73(180436966.53)
method
Investment income from disposal of long-term equity investments 1.00
The investment income of financial asset held for trading during
1979999.951406842.07
its holding period
Dividend income from remaining investments in other equity
19039320.00180656814.04
instruments
Investment income obtained from disposing of trading financial
7187236.08
assets
Investment income generated from mergers of enterprises not
5021482128.74
under the same control
Others 69922180.57
Total 350711425.33 5023108819.32
57. Impairment loss of credit
In RMB Yuan
Item Amount for this period Amount for prior period
Bad debt for account receivable (579542.24) 15463066.50
Bad debt for other receivables (179587.16) 50421.60
Total (759129.40) 15513488.10
6758. Impairment loss on assets
In RMB Yuan
Item Amount for this period Amount for prior period
Inventory impairment losses and contract
137377672.60110345479.11
performance cost impairment losses
Impairment of fixed assets 184845379.29
Impairment of intangible assets 41460645.81
Impairment of contract assets 8891863.00 60622656.78
Total 146269535.60 397274160.99
59. Gain on disposal of assets
In RMB Yuan
Item Amount for this period Amount for prior period
Gain on disposal of fixed-assets 4819641.19 366667730.28
Gain on disposal of other assets 139811.50
Total 4959452.69 366667730.28
60. 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
Penalty income and others 46291779.69 93295575.81 46291779.69
Total 46291779.69 93295575.81 46291779.69
61. 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
External donation 10600000.00 10600000.00 10600000.00
Fines and late fees 5489501.82 52548.37 5489501.82
Others 3012325.93 2846412.65 3145904.28
Total 19101827.75 13498961.02 19235406.10
62. 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 207971617.76 429737792.88
68Deferred income tax expense (142342716.98) (253116967.69)
Total 65628900.78 176620825.19
(2) The relationship between profit before tax and income tax expense
In RMB Yuan
Item Amount for this period
Total profit 2312391168.47
Tax at the applicable tax rate 346858675.27
Impact of different tax rates of subsidiaries 53083760.33
Adjustments to current income tax of previous period 15871174.52
Non-taxable income (97502081.20)
Usage previous deductible losses (3849024.07)
The impact of deductible temporary differences or deductible losses on unrecognized
(26697076.08)
deferred tax assets in this period
Utilize previous deductible losses (30776334.43)
Additional deduction (191360193.56)
Income tax expense 65628900.78
63. Other comprehensive income
Please refer to notes VII 44.
64. Notes to cash flow statement
(1) Cash related to operating activities
Items of cash received relating to other operating activities
In RMB Yuan
Item Amount for this period Amount for prior period
Interest income 520495393.22 527001902.34
Government grants 1288500364.75 863412085.63
Others 388897857.40 362804407.92
Total 2197893615.37 1753218395.89
Items of cash paid relating to other operating activities
In RMB Yuan
Item Amount for this period Amount for prior period
Selling expense 1636259495.32 1490941650.90
Administrative expense 710380390.84 617746243.11
Research and development expenses 1260318906.77 1384809950.23
Others 1053447560.15 926324359.78
Total 4660406353.08 4419822204.02
69(2) Cash related to investment activities
Items of cash received relating to other investing activities
In RMB Yuan
Item Amount for this period Amount for prior period
Merge Deepal Motors under different
6216944276.29
control
Fixed deposits and interest 8070357180.56
Total 8070357180.56 6216944276.29
Items of cash paid relating to other investing activities
In RMB Yuan
Item Amount for this period Amount for prior period
Deposit 1400000000.00
Total 1400000000.00
(3) Cash related to fundraising activities
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 204348367.20 362339945.61
Others 29998629.99
Total 234346997.19 362339945.61
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 127516036.02 377810786.49
Others 53497616.56 40713903.53
Total 181013652.58 418524690.02
65. 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 2246762267.69 6967013000.07
Add: Credit impairment loss (759129.40) 15513488.10
Impairment provision for assets 146269535.60 397274160.99
Depreciation of fixed assets 1466019479.35 1492472007.62
Right-of-use assets depreciation 46388885.07 32246838.71
Depreciation and amortization of investment real estate 113355.78 113355.78
70Amortization of intangible assets 1229174331.48 638535490.78
Amortization of long-term deferred expense 2976275.65 1468484.08
Disposal income on fixed assets intangible assets and others (4959452.69) (366667730.28)
Income of fair value movement 35024179.42 23334661.15
Financial expense 39521477.44 36814471.44
Investment income (350711425.33) (5023108819.32)
Increase in deferred tax assets (161826269.49) (182617869.82)
Decrease in deferred tax liabilities 19483552.51 1404707710.78
Decrease in inventory (238346525.70) (4429633070.54)
Decrease in operating payables 3849999916.55 1025339747.77
Increase in operating payables (4890306327.68) 4918863583.73
Others 276614.28 3787202.55
Net cash flows from operating activities 3435100740.53 6955456713.59
2．Movement of cash and cash equivalents:
Ending balance of cash 69549755769.83 64153666049.54
Less: beginning balance of cash 63925957901.11 52491435047.74
Increase in cash and cash equivalents 5623797868.72 11662231001.80
(2) Cash and cash equivalents
In RMB Yuan
Item Ending balance Beginning balance
I. Cash 69549755769.83 63925957901.11
Including: Cash 4998.00 35257.05
Bank deposits that can be
69524354728.4363902699987.48
readily used
Other monetary funds that can
25396043.4023222656.58
be used for payment at any time
II. Ending balance of cash and cash
69549755769.8363925957901.11
equivalents
66. Foreign Monetary Item
In RMB Yuan
Item Original Currency Exchange Rate Translated to RMB
Cash
Including: USD 36127533.31 7.1268 257473704.39
EUR 1398640.50 7.6500 10699599.83
GBP 3320521.04 9.0706 30119118.15
JPY 184517456.00 0.0450 8303285.52
RUB 15595802372.85 0.0838 1306928238.84
MXN 59832149.70 2.3600 141203873.29
THB 2029117935.15 0.1952 396083820.94
Accounts receivable
Including: USD 62659531.87 7.1268 446561951.73
Other receivables
71Including: JPY 17408320.00 0.0450 783374.40
THB 18129869.90 0.1952 3538950.60
Accounts Payable
Including: USD 78577.88 7.1268 560008.84
EUR 3320521.04 9.0706 30119118.15
JPY 184517456.00 0.0450 8303285.52
RUB 4477199215.15 0.0838 375189294.23
67. Lease
(1) As the lessee
In RMB Yuan
Item Current amount
Interest expenses on lease liabilities 8326218.00
Simplified treatment of short-term lease expenses included in relevant
15949559.83
asset costs or current profit and loss
Simplified treatment of low value asset leasing expenses included in
relevant asset costs or current profit and loss (excluding short-term 292613.20
leasing expenses for low value assets)
Total cash outflow related to leasing 56008720.71
(2) As the lessor
Operating lease as a lessor
√ Applicable □ Not applicable
In RMB Yuan
Item Current amount
Rental Income 175898356.02
Total 175898356.02
The undiscounted lease receipts received after the balance sheet date are as follows:
In RMB Yuan
Item Ending balance Beginning balance
Within 1 year 271710550.60 388255072.48
1 to 2 years 262506229.88 260689384.89
2 to 3 years 131816053.61 130967274.89
3 to 4 years 35129298.25 34577303.73
4 to 5 years 32867502.54 26810816.32
More than 5 years 237874.86 1506050.47
Total 734267509.74 842805902.78
72VIII. R&D expenditure
1. R&D expenditure
In RMB Yuan
Amount incurred in the previous
Item Current amount incurred
period
Payroll and welfare 1847480590.73 1831037974.12
Depreciation and amortization 1215792215.05 1015663481.63
Subcontract fee 869620089.13 563448725.54
Material fee 280411158.30 280999970.17
Test fee 126874613.69 186684209.51
Others 269541531.16 149978855.77
Total 4609720198.06 4027813216.74
Among them: Expensed R&D expenses 2912092313.40 2964604104.48
Capitalized R&D expenses 1697627884.66 1063209112.26
2. Development expenditure
In RMB Yuan
Increased Decreased
Internal Item Beginning balance Confirmed as Ending balance
development Others
intangible assets
expenses
Automotive
2241820556.701697627884.66486094425.23157514353.093295839663.04
development
Total 2241820556.70 1697627884.66 486094425.23 157514353.09 3295839663.04
IX. The change of consolidation scope
None.X. Stake in other entities
1. Rights in subsidiaries
(1) Composition of Enterprise Groups
Registered Total proportion of
Main operating Registered Nature of shareholders (%) Acquisition
Company name capital
place place business method
(ten thousand) Direct Indirect
Chongqing Changan International
118275.64 Chongqing Chongqing Sale 100.00 Establish
Automobile Sales Co. Ltd.Chongqing Changan Vehicle
8850.00 Chongqing Chongqing Lease 100.00 Establish
Networking Technology Co. Ltd.Chongqing Changan Special
Automobile Sales Co. Ltd (Note 2000.00 Chongqing Chongqing Sale 50.00 Establish
1)
Chongqing Changan Automobile
3000.00 Chongqing Chongqing Sale 99.00 1.00 Establish
Supporting Service Co. Ltd.
73Chongqing Zhilaidadao New Research and
2900.00 Chongqing Chongqing 100.00 Establish
Energy Vehicle Co. Ltd development
Chongqing Changan Europe Research and
EUR 1738 Turin Italy Turin Italy 100.00 Establish
Design Center Co. Ltd. development
Changan United Kingdom R&D Nottingham Nottingham Research and
GBP 2639 100.00 Establish
Center Co. Ltd. UK UK development
Beijing Changan R&D Center Research and
100.00 Beijing Beijing 100.00 Establish
Co. Ltd. development
Changan Japan Designing Center Yokohama Yokohama Research and
JYP1000 100.00 Establish
Co.Ltd Japan Japan development
Changan United States R&D Research and
USD154 Novi USA Novi USA 100.00 Establish
Center Co. Ltd. development
Changan Automobile Russia Co. Moscow Moscow
RUB 220382 Sale 100.00 Establish
Ltd. Russia Russia
Changan Automobile Investment
23789.00 Shenzhen Shenzhen Sale 100.00 Establish
(Shenzhen) Co. Ltd.Nanjing Changan New Energy
Automobile Sales & Service Co. 5000.00 Nanjing Nanjing Sale 100.00 Establish
Ltd.Chongqing Anyi Automotive
200.00 Chongqing Chongqing Sale 100.00 Establish
Technology Service Co. Ltd.Xiamen Changan New Energy
Automobile Sales & Service Co. 200.00 Xiamen Xiamen Sale 100.00 Establish
Ltd.Guangzhou Changan New Energy
Automobile Sales & Service Co. 400.00 Guangzhou Guangzhou Sale 100.00 Establish
Ltd.Chongqing Chehemei Technology
1000.00 Chongqing Chongqing Sale 100.00 Establish
Co. Ltd.Chongqing Changan Kaicheng
100000.00 Chongqing Chongqing Sale 83.64 Establish
Automobile Technology Co. Ltd.Chongqing Changan Automobile Research and
9900.00 Chongqing Chongqing 100.00 Establish
Software Technology Co. Ltd. development
Chongqing Chehemei Technology
4900.00 Chongqing Chongqing Sale 100.00 Establish
Co. Ltd.Chongqing Changan Technology Research and
9000.00 Chongqing Chongqing 100.00 Establish
Co. Ltd development
Chongqing Changan Xing
2000.00 Chongqing Chongqing Lease 100.00 Establish
Automobile Co. Ltd
Merger of
Nanjing Changan Automobile enterprises not
60181.00 Nanjing Nanjing Manufacturing 84.73
Co. Ltd.(Note 2) under the same
control
Merger of
Chongqing Lingyao Automobile enterprises not
133764.00 Chongqing Chongqing Manufacturing 100.00
Co. Ltd. under the same
control
Merger of
Deepal Automobile Technology enterprises not
32810.83 Chongqing Chongqing Manufacturing 51.00
Co. Ltd under the same
control
Merger of
Hefei Changan Automobile enterprises
227500.00 Hefei Hefei Manufacturing 100.00
Co.Ltd. under the same
control
Note 1: The remaining shareholders of Chongqing Changan Special Purpose Vehicle Co. Ltd. have signed concerted action agreements
with the company agreeing to vote according to the company's voting intentions. Therefore the company can exercise control over
them and include them in the scope of the consolidated financial statements.Note 2: Our company holds 91.53% of the voting rights in Nanjing Changan Automobile Co. Ltd. The reason for the inconsistency
between our shareholding and voting rights is that some minority shareholders have entrusted our company to exercise their voting
rights.
74(2) Important non wholly owned subsidiaries
In RMB Yuan
Minority Dividends declared for
Profit and loss attributable Closing balance of
shareholder distribution to minority
Name to minority shareholders in minority shareholders'
shareholdin shareholders in this
this period equity
g ratio period
Deepal Automotive
49%(361949218.62)(1311051621.86)
Technology Co. Ltd
(3) Main financial information of important non wholly owned subsidiaries
In RMB Yuan
Ending balance
Name Non current Non current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Deepal
19587530651.253778868303.0723366398954.3224213841701.441827954407.9226041796109.36
Automotive
In RMB Yuan
Beginning balance
Name Non current Non current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Deepal
19532107979.293335776374.1622867884353.4523372178834.611464812108.7424836990943.35
Automotive
In RMB Yuan
Current amount incurred
Name Total comprehensive Cash flow from operating
Operating income Net profit
income activities
Deepal Automotive 13981380535.82 (738611579.92) (738611579.92) 188860877.54
In RMB Yuan
Amount incurred in the previous period
Name Total comprehensive Cash flow from operating
Operating income Net profit
income activities
Deepal Automotive 8828401817.81 (1058521570.86) (1058521570.86) (2577925021.38)
2. Stakes in joint ventures and associates
(1) Significant joint ventures or associates
Main Total proportion of
Name of joint venture or associated Registered Accounting
operating Nature of business shareholders (%)
enterprise place place treatment Direct Indirect
Manufacture and sale of
Changan Ford Automobile Co. Ltd. Chongqing Chongqing automobiles and 50.00 Equity
components
75New energy vehicle 40.994
Avatr. Co. Ltd Chongqing Chongqing Equity
manufacturing 0
(2) Key financial information of significant joint ventures
In RMB Yuan
Beginning balance/Amount for prior
Ending balance/Amount for this period
period
Changan Ford Changan Ford
Current assets 14419604004.16 12331898432.45
Non-current assets 12539894934.86 13881353746.59
Total assets 26959498939.02 26213252179.04
Current liabilities 16426704017.90 21314464718.72
Non-current liabilities 9134085691.47 5328845420.37
Total liabilities 25560789709.37 26643310139.09
Minority interests 50600596.35 67713664.93
Equity attributable to owners 1348108633.30 (497771624.98)
Net asset owned according to share
674054316.65(248885812.49)
proportion
Adjustment (55293124.59) 248885812.49
Book value of investment 618761192.06 -
Fair value of equity investments in joint
ventures with publicly quoted prices
Net profit 1821149735.52 799233915.94
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 1821149735.52 799233915.94
Dividends received from joint ventures
this year
(3) Key financial information of significant associated ventures
In RMB Yuan
Beginning balance/Amount for prior
Ending balance/Amount for this period
period
Avatr Avatr
Current assets 9669463056.62 10513768163.43
Non-current assets 3076806130.71 2130278114.28
Total assets 12746269187.33 12644046277.71
Current liabilities 11020047720.58 9864279866.61
Non-current liabilities 1020245511.52 685987794.52
Total liabilities 12040293232.10 10550267661.13
Minority interests
Equity attributable to owners 705975955.23 2093778616.58
Net asset owned according to share
289407783.09858321512.30
proportion
Adjustment 1418415643.50 1437388747.49
76Book value of investment 1707823426.59 2295710259.79
Fair value of equity investments in joint
ventures with publicly quoted prices
Net profit (1395466105.15) (1756458646.69)
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income (1395466105.15) (1756458646.69)
Dividends received from joint ventures
this year
(4) 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 3870282808.64 3789451718.73
Total amount calculated by shareholding
proportion
--Net profit 80831087.02 50249613.41
--Other comprehensive income 2.89
--Total comprehensive income 80831089.91 50249613.41
Associates:
Total book value of the investment 7912295071.89 7702230006.95
Total amount calculated by shareholding
proportion
--Net profit 149862202.55 119453284.98
--Other comprehensive income (5967137.61)
--Total comprehensive income 143895064.94 119453284.98
(5) Excessive losses incurred by joint ventures or associates
Our company has no obligation to bear additional losses to Jiangling Holdings Limited. Therefore when it incurs excess losses we
only write down long-term equity investments to zero and do not recognize excess losses related to investments in the
aforementioned companies.XI. Government subsidies
1. Debt projects involving government subsidies
In RMB Yuan
Newly added Transfer of Cost
Other
Beginning subsidy other income deduction Ending Related to
Ledger Account decreases in
balance amount during amount in amount for balance assets/earnings
this period
the period this period this period
Deferred income 610407171.08 104408720.03 505998451.05 Asset related
Deferred income 108433372.44 115308720.03 50000000.00 3188720.03 170553372.44 Income related
772. Government subsidies included in current profit and loss
Grants related to income
In RMB Yuan
Projects that offset related cost and The amount of offsetting related cost and expense losses
expense losses Current amount incurred Amount incurred in the previous period
Operating costs 133204096.39 23614843.48
selling expenses 1746029.54 6763467.92
Management expenses 7743252.52 8254895.38
R&D expenses 5000000.00 12334313.00
Total 147693378.45 50967519.78
XII. Risks associated with financial instruments
1. Various risks arising from financial instruments
Our company faces various financial risks in the process of operation including credit risk liquidity risk and market risk (including
exchange rate risk interest rate risk and other price risks). The above financial risks and the risk management policies adopted by our
company to reduce these risks are as follows:
The overall goal of our company's risk management is to develop risk management policies that minimize risks as much as possible
without excessively affecting the company's competitiveness and adaptability.Credit risks
Credit risk refers to the risk of financial losses incurred by the company due to the counterparty's failure to fulfill contractual obligations.The credit risk of our company mainly arises from monetary funds accounts receivable accounts receivable financing other
receivables as well as debt instrument investments measured at fair value with changes recognized in current profit or loss that are not
included in the scope of impairment assessment.Our company's monetary funds are mainly deposited in state-owned banks with good reputation and high credit ratings affiliated
finance companies and automotive finance companies as well as other large and medium-sized listed banks. We believe that there is
no significant credit risk and there will be almost no significant losses caused by bank defaults.In addition the company has established relevant policies to control credit risk exposure for accounts receivable accounts receivable
accounts receivable financing contract assets and other receivables. Our company evaluates customers' credit qualifications and sets
corresponding credit periods based on their financial status the possibility of obtaining guarantees from third parties credit records
and other factors such as current market conditions. Our company will regularly monitor customer credit records. For customers with
poor credit records we will use written reminders shorten credit periods or cancel credit periods to ensure that our overall credit risk
is within a controllable range.Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation to settle by delivering cash or other
financial assets.Our company's policy is to ensure sufficient cash to repay maturing debts. Liquidity risk is centrally controlled by the finance
department of our company. The finance department ensures that the company has sufficient funds to repay its debts under all
reasonable forecasts by monitoring cash balances convertible securities and rolling forecasts of cash flows for the next 12 months. At
the same time continuously monitor whether the company complies with the provisions of the loan agreement and obtain commitments
from major financial institutions to provide sufficient reserve funds to meet short-term and long-term funding needs.Market risk
78The market risk of financial instruments refers to the risk of fluctuations in the fair value or future cash flows of financial instruments
due to changes in market prices including exchange rate risk interest rate risk and other price risks.
(1) Interest rate risk
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments due to changes in market
interest rates.Fixed rate and floating rate interest bearing financial instruments expose our company to fair value interest rate risk and cash flow
interest rate risk respectively. Our company determines the ratio of fixed rate and floating rate instruments based on market conditions
and maintains an appropriate combination of fixed and floating rate instruments through regular review and supervision. When
necessary our company will use interest rate swap tools to hedge interest rate risk.Our company's revenue and operating cash flow are basically unaffected by fluctuations in market interest rates. On June 30 2024 all
bank loans and payable bonds of our company will accrue interest at a fixed rate. Our company currently does not hedge against interest
rate risk.
(2) Exchange rate risk
Exchange rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments due to changes in
foreign exchange rates.Our company continuously monitors foreign currency transactions and the scale of foreign currency assets and liabilities to minimize
the foreign exchange risks we face. In addition the company may also sign forward foreign exchange contracts or currency swap
contracts to avoid exchange rate risks.
(3) Other price risks
Other price risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments due to market price
changes other than exchange rate risk and interest rate risk.Our company's other price risks mainly arise from various equity instrument investments and there is a risk of changes in equity
instrument prices.On June 30 2024 assuming all other variables remain constant if the value of equity instruments increases or decreases by 5% the
Company will increase or decrease its net profit by 6488407.75 yuan. The management believes that 5% reasonably reflects the
reasonable range within which the value of equity instruments may change in the next year.XIII. Disclosure of fair value
1. Closing fair value of assets and liabilities measured at fair value
In RMB Yuan
Fair value at the end of the period
Items First level fair value Second level fair value Third level fair value
Total
measuremen measuremen measuremen
Trading financial assets 152668417.66 152668417.66
Other equity instrument
504190082.71504190082.71
investments
Trading financial liabilities 12941513.71 12941513.71
XIV. 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 20.81% 20.81%
Co Ltd. components
79The Final controlling party is China South Industries Group corporation
2. Subsidiaries
See subsidiaries in X（1）. Stake in other entities.
3. Joint ventures and associates
See Joint ventures and associates in X（2） Stake in other entities.
4. Other related parties
Related parties Relationship
Anhui Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Chengdu Huachuan Electric Equipment Co. Ltd Controlled by the same ultimate holding company
Chenzhi (Chengdu) Intelligent Suspension Co. Ltd Controlled by the same ultimate holding company
Chengdu Wanyou Trading Co. Ltd Controlled by the same ultimate holding company
Chengdu Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Chengdu Wanyou Automobile Trading Service Co. Ltd Controlled by the same ultimate holding company
Chengdu Wanyou Xiangyu Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Guizhou Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Harbin Dongan Automotive Power Co. Ltd Controlled by the same ultimate holding company
Harbin Dongan Automotive Engine Manufacturing Co. Ltd Controlled by the same ultimate holding company
Hunan Tianyan Machinery Co. Ltd Controlled by the same ultimate holding company
Jiangsu Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Luzhou Wanyou Automobile Service Co. Ltd Controlled by the same ultimate holding company
CSM Faurecia Automotive Parts Co. Ltd. Controlled by the same ultimate holding company
Chenzhi (Chongqing) Brake System Co. Ltd Controlled by the same ultimate holding company
South Inter Air-conditioner Co.Ltd. Controlled by the same ultimate holding company
Panzhihua Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Sichuan Jianan Industrial Co. Ltd Controlled by the same ultimate holding company
Sichuan Ningjiang Shanchuan Machinery Co. Ltd Controlled by the same ultimate holding company
Yaan Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Yunnan Wanyou Automobile Sales and Service 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 Qingshan Industrial 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
Chongqing Changan Minsheng Logistics Co. Ltd. Controlled by the same ultimate holding company
Beijing Beiji Electromechanical Industry Co. Ltd Controlled by the same ultimate holding company
Chengdu Zhongzi Guangming Catalytic Technology 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 Automotive Fuel 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 Automotive Lighting Co. Ltd Controlled by the same ultimate holding company
Hubei Xiaogan Huazhong Car Lamp Co. Ltd Controlled by the same ultimate holding company
80Related parties Relationship
Construction Industry Group (Yunnan) Co. Ltd Controlled by the same ultimate holding company
China Ordnance Equipment Group Human Resources Development
Controlled by the same ultimate holding company
Center
China Ordnance Equipment Group Commercial Factoring 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 Tongda Industrial Co. Ltd. Controlled by the same ultimate holding company
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 Yihong Engineering Plastic Products Co. Ltd. Controlled by the same ultimate holding company
Chongqing Changan industry (Group) Co. Ltd Controlled by the same ultimate holding company
Chongqing Changan Property Management Co. Ltd. Controlled by the same ultimate holding company
Beijing Zhongbing Insurance Brokerage Co. Ltd. Controlled by the same ultimate holding company
Chongqing Changan Intelligent Industrial Technology Service Co. Ltd. Controlled by the same ultimate holding company
Longchang Shanchuan Precision Welded Tube Co. Ltd. Controlled by the same ultimate holding company
Nanyang Lida Optoelectronics Co. Ltd Controlled by the same ultimate holding company
Chongqing Changrong Machinery 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 Controlled by the same ultimate holding company
Chongqing Wanyou Zhicheng Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Chongqing Wanyou Chengxing Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Chongqing Changxiang Supply Chain Technology Co. Ltd Controlled by the same ultimate holding company
China Ordnance Equipment Group Automation Research Institute Co. Ltd Controlled by the same ultimate holding company
Chongqing Southwest Inspection and Testing Co. Ltd Controlled by the same ultimate holding company
China South Industries Group Commercial Factoring Co. Ltd. Controlled by the same ultimate holding company
Wanyou Automobile Investment Co. Ltd Controlled by the same ultimate holding company
China Ordnance Equipment Group Finance Leasing Co. Ltd Controlled by the same ultimate holding company
Chongqing Anfu Automobile Co. Ltd. Controlled by the same ultimate holding company
Chongqing Fuji Supply Chain Management Co. Ltd Controlled by the same ultimate holding company
Ordnance Equipment Group Finance Co. Ltd Controlled by the same ultimate holding company
Dali Wanfu Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Hubei Huazhong Changjiang Optoelectronics Technology Co. Ltd Controlled by the same ultimate holding company
Chenzhi Technology Co. Ltd Controlled by the same ultimate holding company
Beijing North Changfu Automobile Sales Co. Ltd Controlled by the same ultimate holding company
China Changan Automobile Group Hefei Investment Co. Ltd Controlled by the same ultimate holding company
Chongqing Construction Industry (Group) Co. Ltd Controlled by the same ultimate holding company
Chongqing Jialing Yimin Special Equipment Co. Ltd. Controlled by the same ultimate holding company
Chongqing Jianshe Mechanical & Electrical Equipment Co. Ltd. Controlled by the same ultimate holding company
Chongqing Xiyi Automobile Connecting Rod Co. Ltd. Controlled by the same ultimate holding company
Ordnance Equipment Research Institute of China Ordnance Equipment
Controlled by the same ultimate holding company
Group
Bazhong Wanyou Automobile Sales and Service Co. Ltd Controlled by the same ultimate holding company
Chongqing Changan Construction Co. Ltd. Controlled by the same ultimate holding company
Hunan Tianyan Machinery Co. Ltd Controlled by the same ultimate holding company
Chengdu Lingchuan Special Industry Co. Ltd Controlled by the same ultimate holding company
81Related parties Relationship
Yunnan Wanxing Auto Sales Service Co. Ltd. Controlled by the same ultimate holding company
Hubei Xiaogan Huazhong Car Lamp Co. Ltd Controlled by the same ultimate holding company
Chongqing Dajiang Xinda Vehicle Co. Ltd Controlled by the same ultimate holding company
Hafei Automobile Co. Ltd Companies in which the company participates
Chongqing Dajiang Yuqiang Plastic Co. Ltd. Companies in which the company participates
Chongqing Nexteer Steering System Co.Ltd. Companies in which the company participates
Lear Changan (Chongqing) Automotive System Co. Ltd Companies in which the company participates
United Automotive Electronics (Chongqing) Co. Ltd Companies in which the company participates
GKN HUAYU Driveline Systems (Chongqing) Co. Ltd Companies in which the company participates
Tiannak Lingchuan (Chongqing) exhaust system Co. Ltd Companies in which the company participates
Chongqing Dajiang Tongyang Plastics Co. Ltd. Companies in which the company participates
Chongqing Dajiang Guoli Precision Machinery Manufacturing Co. Ltd. Companies in which the company participates
Dajiang Yapp Automotive Systems Co. Ltd. Companies in which the company participates
Chongqing Hanon Jianshe Automotive Thermal Systems Co. Ltd. Companies in which the company participates
Chongqing Lingchuan Auto Parts Manufacturing Technology Co. Ltd. Companies in which the company participates
Chongqing Wanyou Talent Service Co. Ltd Companies in which the company participates
Changan Laisi (Chongqing) robot intelligent equipment 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 amount exceeds the amount
transaction
amount
Purchasing
Chongqing Qingshan Industrial parts and
4493367383.45 11425588256.20 No 4247550166.24
Co. Ltd accepting
labor services
Purchasing
parts and
Jiangling Holdings Co. Ltd. 2169860345.56 12995016030.33 No 514070488.27
accepting
labor services
Purchasing
Chongqing Changan Minsheng parts and
2098821621.39 7997202114.58 No 2685849489.33
Logistics Co. Ltd. accepting
labor services
Times Changan Power Battery Procurement
821368168.15 7704110383.18 No -
Co.Ltd. of parts
Chenzhi (Chongqing) Brake Procurement
624315030.21 748646684.89 No 547250941.45
System Co. Ltd of parts
Purchasing
parts and
Sichuan Jian'an Industrial Co. Ltd 548125486.31 1951122305.64 No 569748423.73
accepting
labor services
82Related parties Nature of the Current amount Approved Whether it Prior-period
transaction transaction amount exceeds the amount
transaction
amount
Purchasing
United Automotive Electronics parts and
511597954.64 1478445956.29 No 489858832.36
(Chongqing) Co. Ltd accepting
labor services
Harbin Dongan Automotive Procurement
500527166.71 761922037.96 No 286555317.12
Engine Manufacturing Co. Ltd. of parts
Chongqing Nexteer Steering Procurement
477982649.73 1551409889.43 No 482284076.02
System Co.Ltd. of parts
Purchasing
Hubei Huazhong Marelli parts and
461129146.14 1633883190.34 No 425498458.56
Automobile Lighting Co. Ltd. accepting
labor services
Sichuan Ningjiang Shanchuan Procurement
433060404.47 961859835.88 No 250225299.36
Machinery Co Ltd. of parts
Chengdu Huachuan Electric Procurement
392829660.89 821874569.68 No 265398399.77
Equipment Co. Ltd. of parts
South Inter Air-conditioner Procurement
359507403.70 1917170046.97 No 324599906.01
Co.Ltd. of parts
Chongqing Dajiang Tongyang Procurement
343273903.25 795342283.36 No 251637351.95
Plastics Co. Ltd. of parts
CSM Faurecia Automotive Parts Procurement
278100304.72 996492651.38 No 293507822.63
Co. Ltd. of parts
Chongqing Dajiang Guoli
Procurement
Precision Machinery 200516763.71 922918313.76 No 243266094.33
of parts
Manufacturing Co. Ltd.Dajiang Yapp Automotive Procurement
189047680.99 568179277.18 No 218898950.45
Systems Co. Ltd. of parts
Purchasing
Chongqing Wutong Chelian parts and
171231816.16 682869759.95 No 157766418.74
Technology Co. Ltd. accepting
labor services
GKN HUAYU Driveline Systems Procurement
168940531.23 517379244.64 No 175750765.78
(Chongqing) Co. Ltd. of parts
Lear Changan (Chongqing) Procurement
157811927.34 408322221.59 No 186552716.15
Automotive System Co. Ltd of parts
Harbin Dongan Auto Engine Co. Procurement
151227473.28 490421895.83 No 201477650.66
Ltd. of parts
Chengdu Zhongzi Guangming Procurement
135729566.81 1001172941.16 No 277552589.96
Catalytic Technology Co. Ltd of parts
Chongqing Changrong Machinery Procurement
111907956.90 424994542.10 No 136845945.08
Co. Ltd. of parts
Chongqing Changxian Intelligent
Accept labor 99626120.31 1106539793.14 No -
Technology Co. Ltd
Changan Auto Finance Co. Ltd. Accept labor 96613789.13 71878099.63 Yes 40003766.38
Chongqing Lingchuan Auto Parts
Procurement
Manufacturing Technology Co. 95858621.77 252436715.62 No 101723761.38
of parts
Ltd.Purchasing
Hubei Xiaogan Huazhong Car parts and
89196328.09 192786397.56 No 62177934.16
Lamp Co. Ltd accepting
labor services
83Related parties Nature of the Current amount Approved Whether it Prior-period
transaction transaction amount exceeds the amount
transaction
amount
Construction Industry Group Procurement
84007141.90 18958146.72 Yes 65386027.01
(Yunnan) Co. Ltd of parts
Chongqing Shangfang Procurement
66085066.45 195574217.92 No 56847951.59
Automobile Fittings Co. Ltd. of parts
Chongqing Jianshe Automobile Procurement
63029494.51 66707582.27 No 30929139.50
Air-conditioner Co. Ltd. of parts
Procurement
Chengdu Wanyou Filter Co. Ltd. 62558707.43 170247389.42 No 60828232.32
of parts
Hunan Tianyan Machinery Co. Procurement
57921928.22 183259652.11 No 59035655.33
Ltd of parts
Chongqing Hanon Jianshe
Procurement
Automotive Thermal Systems 53751899.29 221965490.53 No 75943637.67
of parts
Co. Ltd.Tiannak Lingchuan (Chongqing) Procurement
52478337.69 95197423.91 No 23033580.78
exhaust system Co. Ltd of parts
Beijing Wutong Chelian Procurement
29697349.74 80644096.51 No 32740169.65
Technology Co. Ltd. of parts
Chongqing Yihong Engineering Procurement
28672849.28 89793888.52 No 35614480.95
Plastic Products Co. Ltd. of parts
Chongqing Qingshan Procurement
26758385.18 84535268.03 No 29495148.15
Transmission Sales Co. Ltd. of parts
Chengdu Lingchuan Vehicle Oil Procurement
25621052.62 59766079.02 No 22896846.34
Tank Co. Ltd. of parts
Chongqing Changan Intelligent
Industrial Technology Service Accept labor 21919338.63 44322749.40 No 11279433.62
Co. Ltd
Chongqing Construction Tongda Procurement
20559686.91 75862450.69 No 27756255.26
Industrial Co. Ltd. of parts
Purchasing
Chongqing Wanyou Economic parts and
16725120.28 48860186.86 No 14785490.80
Development Co. Ltd. accepting
labor services
Yunnan Wanyou Auto Sales and
Accept labor 14694568.91 40301439.80 No 10507634.88
Service Co. Ltd.Chongqing Wanyou Talent
Accept labor 10534775.09 15055678.38 No -
Service Co. Ltd
Chengdu Wanyou Xiangyu Auto
Accept labor 10504081.34 21072352.03 No 8781051.72
Sales and Service Co. Ltd.Longchang Shanchuan Precision Procurement
10384036.29 31679559.84 No 12373330.60
Welded Tube Co. Ltd. of parts
Guizhou Wanyou Auto Sales and
Accept labor 9659028.54 22139865.33 No 6496124.73
Service Co. Ltd.Southwest Ordnance Industry
Chongqing Environmental
Accept labor 9504544.41 14958443.14 No 445897.62
Protection Research Institute Co.Ltd.China Changan Automobile Procurement
8977833.80 15896254.80 No -
Group Co. Ltd of parts
Chongqing Dajiang Jiexin Procurement
6826450.87 1661216.45 Yes 916320.42
Forging Co. Ltd of parts
Chongqing Changan industry
Accept labor 6673053.09 128952000.00 No 6981144.30
(Group) Co. Ltd
84Related parties Nature of the Current amount Approved Whether it Prior-period
transaction transaction amount exceeds the amount
transaction
amount
Jiangsu Wanyou Automobile
Accept labor 6374830.46 10836359.06 No 3530670.99
Sales Service Co. Ltd.Chengdu Wanyou Auto Trade
Accept labor 4990765.15 13194208.49 No 3136714.77
Service Co. Ltd.Chongqing Changan Property
Accept labor 4582907.88 25788000.00 No 5556152.45
Management Co. Ltd.Anhui Wanyou Automobile Sales
Accept labor 3213766.01 7610801.88 No 2622805.44
Service Co. Ltd.Changan Mazda Engine Co. Ltd. Accept labor 3041536.34 3000000.00 Yes -
China Changan Automobile
Accept labor 2677994.00 7360976.57 No 2515157.69
Group Tianjin Sales Co. Ltd.Avatr Technology (Chongqing)
Accept labor 2204245.81 5503506.90 No 928938.06
Co. Ltd
Chongqing Wanyou Ducheng
Accept labor 1910254.33 6306041.23 No 973308.83
Auto Sales Service Co. Ltd.AVATR (Chongqing)
Procurement
Automobile Sales & Service Co. 1269407.08 2548184.93 No 61949625.77
of parts
Ltd
Changan Ford Automobile Co.Accept labor 1247217.12 2778558.26 No -
Ltd.Ya'an Wanyou Auto Sales and
Accept labor 1075093.34 3246310.23 No 1014389.55
Service Co. Ltd.Chongqing Wanyou Xingjian
Accept labor 1034919.72 2601495.41 No 810225.03
Auto Sales & Service Co. Ltd.Chengdu Wanyou Automobile
Accept labor 937608.29 2558212.92 No 826173.26
Sales and Service Co. Ltd
Chenzhi (Chengdu) Intelligent Procurement
579769.55 1644152.77 No 303637.08
Suspension Co. Ltd of parts
Chongqing Wanyou Chengxing
Automobile Sales and Service Accept labor 559717.94 1320000.00 No -
Co. Ltd
Nanyang Lida Optoelectronics Procurement
482340.66 652566.85 No -
Co. Ltd of parts
Panzhihua Wanyou Auto Sales &
Accept labor 375355.46 829087.31 No 148176.37
Service Co. Ltd.Chongqing Changxiang Supply
Accept labor 268899.07 678505.91 No -
Chain Technology Co. Ltd
Changan Mazda Automobile Co.Accept labor 212576.11 36000.00 Yes 1270637.36
Ltd
Chengdu Jialing Huaxi Optical & Procurement
126726.31 1193438.96 No 501828.63
Precision Machinery Co. Ltd. of parts
Luzhou Wanyou Automobile
Accept labor 122798.52 773578.75 No 208109.30
Service Co. Ltd.Chongqing Wanyou Advertising
Accept labor 88650.00 180000.00 No -
Co.Ltd.Chongqing Dajiang Yuqiang Procurement
87580.04 321227.54 No 196038.83
Plastic Co. Ltd. of parts
China Ordnance Equipment
Group Commercial Factoring Co. Accept labor 66037.74 96000.00 No -
Ltd
85Related parties Nature of the Current amount Approved Whether it Prior-period
transaction transaction amount exceeds the amount
transaction
amount
Chongqing Southwest Inspection
Accept labor 56112.31 90000.00 No -
and Testing Co. Ltd
Nanjing LingHang Technology
Accept labor 51413.41 43200.00 Yes 33388.14
Co. Ltd.Beijing Beiji Mechanical and Procurement
24494.80 232339.15 No 55471.89
Electrical Industry Co. Ltd. of parts
China Ordnance Equipment
Group Human Resources Accept labor 20783.02 26366.04 No 5377.35
Development Center
Beijing Zhongbing Insurance
Accept labor 20505.30 54000.00 No 179456.11
Brokerage Co. Ltd.Chengdu Wanyou Trading Co.Accept labor 19700.27 142442.82 No 44034.79
Ltd
China Ordnance News Agency Accept labor 12311.32 28718.48 No 18555.76
Ald Fortune Auto Leasing &
Accept labor 11151.69 25387.34 No -
Renting (Shanghai) Co. Ltd.Chongqing Wanyou Zunda
Procurement
Automobile Sales & Service Co. 5879.99 13482.54 No 38252.00
of parts
Ltd.China Ordnance Equipment
Group Automation Research Accept labor 1698.11 3854.53 No -
Institute Co. Ltd
Changan Laisi (Chongqing) robot Procurement
- - No 1756066.31
intelligent equipment Co. Ltd of parts
Purchasing
Zhongqi Chuangzhi Technology parts and
- - No 480000.94
Co. Ltd accepting
labor services
China Ordnance Equipment
Group Commercial Factoring Co. Accept labor - - No 76040.43
Ltd
Nanjing Chelai Travel
Accept labor - - No 15222.66
Technology Co. Ltd
Total: 16916874982.66 62209113874.82 14118319574.90
Goods sold and services offered
In RMB Yuan
Related parties Nature of the transaction Current amount Prior-period Amount
Selling parts and providing
Avatr Technology (Chongqing) Co. Ltd.labor services 1885583221.76 966811840.03
Chongqing Wanyou Zunda Automobile
Selling parts
Sales & Service Co. Ltd. 1570508038.16 1211267157.57
Chengdu Wanyou Xiangyu Auto Sales Selling vehicle parts and
and Service Co. Ltd. providing labor services 1288701497.02 697109803.93
Chongqing Wanyou Economic Selling vehicle parts and
Development Co. Ltd. providing labor services 965905313.45 895356870.07
Yunnan Wanyou Auto Sales and Service Selling vehicle parts and
Co. Ltd. providing labor services 869877002.41 555923788.70
Guizhou Wanyou Auto Sales and Service Selling vehicle parts and
Co. Ltd. providing labor services 860548335.60 565501997.62
86Related parties Nature of the transaction Current amount Prior-period Amount
Chongqing Wanyou Zhicheng
Selling complete vehicles
Automobile Sales and Service Co. Ltd 557004163.49 -
Jiangsu Wanyou Automobile Sales Selling vehicle parts and
Service Co. Ltd. providing labor services 534796227.54 314630817.93
Selling complete vehicles and
Pakistan Master Automobile Co. Ltd.components 218606093.69 109372901.50
Anhui Wanyou Automobile Sales Service Selling vehicle parts and
Co. Ltd. providing labor services 186786950.91 140376222.36
Selling parts and providing
Changan Mazda Automobile Co. Ltd
labor services 166764218.31 7133803.72
Chongqing Fuji Supply Chain
Selling complete vehicles
Management Co. Ltd 99552970.82 69216929.01
China Changan Automobile Group Selling vehicle parts and
Tianjin Sales Co. Ltd. providing labor services 93391397.85 131130406.12
Changan Automobile Financing Co. Ltd. Providing labor services 42002363.94 174835059.92
Chengdu Wanyou Auto Trade Service Selling vehicle parts and
Co. Ltd. providing labor services 36309737.11 329514962.73
Chongqing Changan Kuayue Automobile Selling parts and providing
Co. Ltd. labor services 31208393.21 105713055.00
Wanyou Automobile Investment Co. Selling complete vehicles and
Ltd. providing labor services 27888149.01 291309672.29
Selling complete vehicles and
Chongqing Anfu Automobile Co. Ltd.components 19682566.45 29676902.67
Jiangling Holdings Co. Ltd. Providing labor services 17825828.22 207500.00
China South Industries Group Financial
Providing labor services
Leasing Co. Ltd. 9463220.25 16343690.21
Selling parts and providing
Changan Ford Automobile Co. Ltd.labor services 3987960.57 2017778.68
Chongqing Wanyou Ducheng Auto Sales Selling vehicle parts and
Service Co. Ltd. providing labor services 3013592.37 2029066.92
Chengdu Wanyou Auto Sales and Service Selling vehicle parts and
Co.Ltd. providing labor services 1475407.45 832930.32
Chongqing Chang'an Intelligent
Providing labor services
Industrial Technology Service Co. Ltd 1105193.12 -
Chongqing Wanyou Chengxing Selling parts and providing
Automobile Sales and Service Co. Ltd labor services 949738.94 -
Ya'an Wanyou Auto Sales and Service Selling vehicle parts and
Co. Ltd. providing labor services 924928.43 1523835.89
Chongqing Wanyou Xingjian Auto Sales Selling vehicle parts and
& Service Co. Ltd. providing labor services 919302.67 914070.23
Beijing North Changfu Automobile Sales Selling complete vehicles and
Co. Ltd providing labor services 895852.60 -
China South Industry Group Finance Co.Providing labor services
Ltd. 747706.78 667592.00
Harbin Dongan Auto Engine Co. Ltd. Selling goods 745500.00 -
Panzhihua Wanyou Auto Sales & Service Selling complete vehicles and
Co. Ltd. components 565261.39 329795.23
Chongqing Changan Minsheng Logistics Selling parts and providing
Co. Ltd. labor services 439453.69 1389240.00
Chongqing Tsingshan Industrial Co. Ltd. Providing labor services 264150.94 470541.17
Beijing Zhongbing Insurance Brokerage
Providing labor services
Co. Ltd 228379.97 -
87Related parties Nature of the transaction Current amount Prior-period Amount
Chongqing Changan Kuayue Automobile
Selling parts
Sales Co. Ltd. 172047.23 129155.26
China Ordnance Equipment Group
Providing labor services
Commercial Factoring Co. Ltd 141509.43 -
Selling complete vehicles and
Chengdu Wanyou Trading Co. Ltd.components 136003.77 95348.42
Nanjing LingHang Technology Co. Ltd. Providing labor services 129618.84 850308.10
Times Changan Power Battery Co.Ltd. Providing labor services 112400.00 -
Dali Wanfu Automobile Sales and
Selling parts
Service Co. Ltd 108186.19 11752.21
Chenzhi Technology Co. Ltd Providing labor services 108018.87 -
Hubei Huazhong Changjiang
Providing labor services
Optoelectronics Technology Co. Ltd 84905.66 -
Sichuan Jian'an Industry Co. Ltd Providing labor services 73962.26 -
Chongqing Dajiang Guoli Precision
Providing labor services
Machinery Manufacturing Co. Ltd. 62135.77 5757279.81
Luzhou Wanyou Automobile Service Selling complete vehicles and
Co. Ltd. components 54476.22 592242.82
Chongqing Shangfang Automotive Parts
Selling goods
Co. Ltd 22373.31 -
China Ordnance Equipment Group
Providing labor services
Human Resources Development Center 12452.83 -
Chenzhi (Chongqing) Brake System Co.Providing labor services
Ltd 9433.96 -
Hubei Xiaogan Huazhong Car Lamp Co.Providing labor services
Ltd 9433.96 -
Avatr (Chongqing) Automobile Sales &
Providing labor services
Service Co. Ltd 3886.80 660.38
Chongqing Lingchuan Auto Parts
Providing labor services
Manufacturing Technology Co. Ltd. 2588.62 765342.53
Chongqing Nexteer Steering System
Selling parts
Co.Ltd. - 5921500.00
United Automotive Electronics
Selling parts
(Chongqing) Co. Ltd - 4577309.74
Harbin Dongan Automotive Engine
Selling parts
Manufacturing Co. Ltd. - 1993518.61
Tiannak Lingchuan (Chongqing) exhaust
Selling parts
system Co. Ltd - 937224.65
China Changan Automobile Group Hefei
Selling complete vehicles
Investment Co. Ltd. - 201106.20
Hunan Tianyan Machinery Co. Ltd Providing labor services - 169811.32
Chengdu Huachuan Electric Equipment Selling complete vehicles and
Co. Ltd. providing labor services - 99293.70
Ald Fortune Auto Leasing & Renting
Providing labor services
(Shanghai) Co. Ltd. - 91754.87
China Changan Automobile Group Co.Providing labor services
Ltd - 23760.00
Chongqing Jianshe Automobile Air-
Selling parts
conditioner Co. Ltd. - 7964.60
China South Industries Group
Provide services
Commercial Factoring Co. Ltd. - 5913.36
88Related parties Nature of the transaction Current amount Prior-period Amount
Hubei Huazhong Marelli Automotive
Selling goods
Lighting Co. Ltd - 1313.00
Chongqing Wutong Chelian Technology
Selling goods
Co. Ltd - 271.68
Zhongqi Chuangzhi Technology Co. Ltd Selling goods - 0.94
Total: 9499911551.84 6643841064.02
(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
Ald Fortune Auto Leasing & Renting
Vehicle 8597721.53 22935079.52
(Shanghai) Co. Ltd.Chongqing Changan Minsheng
Building and land 575019.02 348266.98
Logistics Co. Ltd.Chongqing Wanyou Economic
Building and land 337155.96 321100.92
Development Co. Ltd.Avatr Technology (Chongqing) Co.Vehicle 145119.12 -
Ltd.Chongqing Changan industry (Group)
Building - 3283373.71
Co. Ltd
Nanjing LingHang Technology Co.Vehicle - 2624149.56
Ltd.Southern Inter Air Conditioning Co.Vehicle - 48849.56
Ltd
Chongqing Changan Real Estate
Vehicle - 24424.78
Development Co. Ltd
Total 9655015.63 29585245.03
89Rent assets from related parties
In RMB Yuan
Simplified rental fees for short- Variable lease payments not
Interest expenses on lease
term leases and low value asset included in the measurement of Rent paid Increased usage rights assets
liabilities assumed
Type of leases lease liabilities
Lessor leased
assets Same period Same period Same period of Same period of Same period
Report period Report period Report period Report period Report period
of last period of last period last period last period of last period
Amount Amount Amount Amount Amount
Amount Amount Amount Amount Amount
Chongqing
Changan
Warehouse 13594921.94 8133557.01 9212947.56 8133557.01
Minsheng
Logistics Co. Ltd.Chongqing
Wanyou Zhicheng
Automobile Sales Vehicle 88650.00 - - -
and Service Co.Ltd
Chongqing
Changan Property
Land - 2977660.00 - 2977660.00
Management Co.Ltd
Total 13683571.94 11111217.01 9212947.56 11111217.01
90(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
Chongqing Chang'an Industrial
Pay Electricity fee 36939118.17 37806926.34
(Group) Co. Ltd
Total 36939118.17 37806926.34
Purchase of project materials
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
Chongqing Changan Intelligent Industrial Technology Service
-2743362.86
Co. Ltd
Total - 2743362.86
Staff expenses for technical supporting
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
Changan Mazda Automobile Co. Ltd 14208018.59 9131656.92
Changan Ford Automobile Co. Ltd 6985634.92 5605674.97
Changan Mazda Engine Co. Ltd. 6670928.95 6703950.04
Changan Ford New Energy Vehicle Co. Ltd. 3808404.04 -
Chongqing Changan Crossing Vehicle Co. Ltd 1561751.27 1212194.63
Jiangling Automobile Co. Ltd 1029577.45 826370.83
Chongqing Chang'an Minsheng Logistics Co. Ltd 557728.26 -
Chongqing WutongChelian Technology Co. Ltd 550738.60 208063.02
Time FAW Power Battery Co. Ltd 450000.00 -
Chongqing Anda Semiconductor Co. Ltd 291666.67 -
Jiangling Holdings Limited 81058.58 7343774.35
Avatr Technology (Chongqing) Co. Ltd - 682780.43
China Changan Automobile Group Co. Ltd - 169811.32
Chongqing Shangshang Automotive Parts Co. Ltd - 37002.00
Chongqing Construction Transmission Technology Co. Ltd - 27872.04
Chongqing Naishite Steering System Co. Ltd - 18026.66
Chongqing Dajiang National Precision Machinery
-2520.00
Manufacturing Co. Ltd
Total 36195507.33 31969697.21
Techonology development service charges
In RMB Yuan
91Same period of last period
Related parties Report period Amount
Amount
Jiangling Automobile Co. Ltd 54439370.43 -
Changan Mazda Automobile Co. Ltd 9055248.00 397572.54
Chongqing Tsingshan Industrial Co. Ltd. 4277407.02 10144721.22
Changan Ford Automobile Co. Ltd 2153000.00 -
Chongqing Changxian Intelligent Technology Co. Ltd 571900.50 -
Western Car Network (Chongqing) Co. Ltd 297054.72 -
Chongqing wutong Chelian Technology Co. Ltd 126450.47 -
Sichuan Ningjiang Shanchuan Machinery Co. Ltd 122641.51 -
Total 71043072.65 10542293.76
Collection of trademark use rights fees
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
Chongqing Changan Kuayue Automobile Co. Ltd. 4477600.00 6009433.96
Related party monetary funds
In RMB Yuan
Related parties Ending Amount Beginning Amount
China South Industries Group Finance Co. Ltd 19949896329.93 19926021247.02
Changan Automobile Finance Co. Ltd 14990000000.00 14990000000.00
Total 34939896329.93 34916021247.02
First half of 2024 the annual interest rate of deposits deposited with related parties is 0.2% - 3.5% and the term is 0-36 months.Borrowing
Long-term borrowing
In RMB Yuan
Related parties Ending Amount Beginning Amount
China South Industries Group Finance Co. Ltd 76000000.00 76000000.00
Total 76000000.00 76000000.00
Interest income of deferred payment
In RMB Yuan
Related parties Report period Amount Same period of last period Amount
Jiangsu Wanyou Automobile Sales Service Co. Ltd 88348.67 1380.53
Chongqing Wanyou Economic Development Co.
72585.96-
Ltd
Guizhou Wanyou Automobile Sales and Service Co.
53243.80-
Ltd
92Chengdu Wanyou Xiangyu Automobile Sales and
41558.41-
Service Co. Ltd
Anhui Wanyou Automobile Sales and Service Co.
29850.44-
Ltd
Chengdu Wanyou Auto Trade Service Co. Ltd 21363.77 -
Chengdu Lingchuan Automotive Fuel Tank Co. Ltd 17969.51 -
Yunnan Wanyou Automobile Sales and Service Co.
10661.28-
Ltd
Wanyou Automobile Investment Co. Ltd 4141.59 -
Total 339723.43 1380.53
6. Payment and receivables of related parties
(1) Payment receivables of related listed companies
In RMB Yuan
Items Related parties Ending balance Beginning balance
Notes
Wanyou Automobile Investment Co. Ltd. 2547150000.00 2618900000.00
receivable
Notes
Avatr Technology (Chongqing) Co. Ltd. 1502804705.57 1162667212.07
receivable
Notes Chongqing Changan Kuayue Automobile
18770000.00-
receivable Sales Co. Ltd.Notes Yunnan Wanyou Auto Sales and Service
15000000.0046000000.00
receivable Co. Ltd.Notes Chongqing Wanyou Economic
13000000.0031000000.00
receivable Development Co. Ltd.Notes Chengdu Wanyou Auto Trade Service
11200000.0022500000.00
receivable Co. Ltd.Notes
Chongqing Tsingshan Industrial Co. Ltd. 7545451.11 48163692.11
receivable
Notes Guizhou Wanyou Auto Sales and Service
3280000.0014200000.00
receivable Co. Ltd.Notes Chongqing Fuji Supply Chain
-70015971.00
receivable Management Co. Ltd
Notes Chongqing Changan Kuayue Vehicle Co.-37033400.00
receivable Ltd
Notes Harbin Dongan Automotive Engine
-272292.05
receivable Manufacturing Co. Ltd.Subtotal 4118750156.68 4050752567.23
Account
Avatr Technology (Chongqing) Co. Ltd. 548405543.30 674602846.19
receivable
Account
Changan Mazda Automobile Co. Ltd 263911957.50 177061948.01
receivable
Account
Pakistan Master Automobile Co. Ltd. 36464365.66 16553872.36
receivable
Account Chongqing Changan Kuayue Vehicle Co.
16298457.2123099903.46
receivable Ltd
Account
Changan Mazda Engine Co. Ltd. 7032000.00 15886858.18
receivable
93Account
Changan Ford Automobile Co. Ltd. 4435896.87 9976923.10
receivable
Account
Jiangling Holdings Co. Ltd. 2947212.54 9791503.74
receivable
Account
Changan Auto Finance Co. Ltd. 2599736.68 21019909.48
receivable
Account Changan Ford New Energy Vehicle Co.
1607364.58-
receivable Ltd.Account Ald Fortune Auto Leasing & Renting
853200.004300560.00
receivable (Shanghai) Co. Ltd.Account Chongqing Changan Minsheng Logistics
615597.743269852.16
receivable Co. Ltd.Account Chongqing Changxian Intelligent
606214.53-
receivable Technology Co. Ltd
Account
Nanjing LingHang Technology Co. Ltd. 458959.44 321563.47
receivable
Account China South Industries Group Financial
411813.475186975.56
receivable Leasing Co. Ltd.Account Western Car Network (Chongqing) Co.
314878.00-
receivable Ltd
Account
Chongqing Anda Semiconductor Co. Ltd 309166.67 -
receivable
Account Chongqing Changan industry (Group) Co.
192632.177139838.45
receivable Ltd
Account Chengdu Wanyou Xiangyu Automobile
159900.00368
receivable Sales and Service Co. Ltd
Account Chengdu Wanyou Auto Trade Service Co.
135900.00-
receivable Ltd.Account Chongqing wutong Chelian Technology
134037.501210700.00
receivable Co. Ltd
Account
Times Changan Power Battery Co.Ltd. 119144.00 -
receivable
Account
Chenzhi Technology Co. Ltd 114500.00 -
receivable
Account Chongqing Changan Kuayue Automobile
51407.6426019.30
receivable Sales Co. Ltd.Account
Chongqing Tsingshan Industrial Co. Ltd. 40000.00 -
receivable
Account Anhui Wanyou Automobile Sales and
39265.70-
receivable Service Co. Ltd
Account China Changan Automobile Group Tianjin
31380.00-
receivable Sales Co. Ltd.Account Chengdu Lingchuan Automotive Fuel
2743.94-
receivable Tank Co. Ltd
Account Chongqing Fuji Supply Chain
-13934855.12
receivable Management Co. Ltd
Account Jiangsu Wanyou Automobile Sales Service
-6117845.18
receivable Co. Ltd
Account Chenzhi (Chengdu) Intelligent Suspension
497845.97
receivable Co. Ltd
Account Chongqing Anfu Automobile Marketing
-278200.00
receivable Co. Ltd
Account Yunnan Wanyou Auto Sales and Service
121200.00
receivable Co. Ltd.
94Subtotal 888293275.14 990399587.73
Chongqing Changan Innovation Private
Other
Equity Investment Fund Partnership 68253846.00 -
receivable
Enterprise (Limited Partnership)
Chongqing Changxin Zhiqi Private Equity
Other
Investment Fund Partnership (Limited 25500000.00 25500000.00
receivable
Partnership)
Other Chongqing Changan Kuayue Vehicle Co.
3430000.00-
receivable Ltd
Other China South Industry Group Finance Co.
200118.29-
receivable Ltd.Other Chongqing Changan Minsheng Logistics
84.97-
receivable Co. Ltd.Chongqing Changyu Private Equity
Other
Investment Fund Partnership Enterprise - 69600000.00
receivable
(Limited Partnership)
Other
Jiangling Holdings Co. Ltd. - 70
receivable
Subtotal 97384049.26 95100070.00
Advanced
Harbin Dongan Auto Engine Co. Ltd. 842415.00 -
payment
Advanced Beijing Zhongbing Insurance Brokerage
242082.77-
payment Co. Ltd
Advanced Chongqing Wanyou Economic
192590.00-
payment Development Co. Ltd.Advanced Chongqing Shangfang Automotive Parts
25281.84-
payment Co. Ltd
Advanced China Ordnance Equipment Group Human
13200.00-
payment Resources Development Center
Advanced Chongqing Wanyou Zunda Automobile
5862.00-
payment Sales and Service Co. Ltd
Subtotal 1321431.61 -
(2) Accounts payable to related parties of listed companies
In RMB Yuan
Items Related parties Ending balance Beginning balance
Notes payable Jiangling Holdings Co. Ltd. 2136874765.21 1047608994.41
Notes payable Chongqing Tsingshan Industrial Co. Ltd. 1690409282.84 1723679349.53
Notes payable Chongqing Changan Minsheng Logistics Co. Ltd. 404421728.79 443503065.10
Notes payable Chongqing Nexteer Steering System Co.Ltd. 344128811.22 403879297.14
Notes payable Chongqing Dajiang Tongyang Plastics Co. Ltd. 308929970.11 241360000.00
Notes payable Times Changan Power Battery Co.Ltd. 267263260.05 -
Harbin Dongan Automotive Engine Manufacturing
Notes payable 261190000.00 234620000.00
Co. Ltd.Notes payable South Inter Air-conditioner Co.Ltd. 218167370.68 243848518.33
Notes payable Dajiang Yapp Automotive Systems Co. Ltd. 186280711.23 215540000.00
Notes payable Sichuan Ningjiang Shanchuan Machinery Co Ltd. 173433371.73 80902422.85
Notes payable Harbin Dongan Auto Engine Co. Ltd. 170000000.00 11090000.00
Hubei Huazhong Marelli Automobile Lighting Co.Notes payable 140210000.00 122400000.00
Ltd.Notes payable CDGM Tanaka Environmental Catalyst Co.Ltd. 127320711.30 102880000.00
95GKN HUAYU Driveline Systems (Chongqing) Co.
Notes payable 120250754.61 122855842.38
Ltd
Notes payable CSM Faurecia Automotive Parts Co. Ltd. 116296520.81 107251528.51
Chongqing Lingchuan Auto Parts Manufacturing
Notes payable 79480000.00 113510000.00
Technology Co. Ltd.Notes payable Hunan Tianyan Machinery Co. Ltd 73850000.00 -
Notes payable Chenzhi (Chongqing) Brake System Co. Ltd 67903664.67 73980457.72
Tiannak Lingchuan (Chongqing) exhaust system Co.Notes payable 61790000.00 44930000.00
Ltd
Notes payable Hubei Xiaogan Huazhong Automobile Light Co. Ltd. 52210327.25 35788907.01
Notes payable Chongqing Shangfang Automobile Fittings Co. Ltd. 46353548.24 41023156.32
Chongqing Jianshe Automobile Air-conditioner Co.Notes payable 41810000.00 14260000.00
Ltd.Chongqing Hanon Jianshe Automotive Thermal
Notes payable 40310000.00 77160000.00
Systems Co. Ltd.Chongqing Yihong Engineering Plastic Products Co.Notes payable 29944335.73 26870000.00
Ltd.Notes payable Chengdu Wanyou Filter Co. Ltd. 21370000.00 51120000.00
Notes payable Sichuan Jian'an Industrial Co.Ltd. 15820000.00 4757300.00
Notes payable Chongqing Construction Tongda Industrial Co. Ltd. 15796711.86 15579467.79
Notes payable China South Industry Group Finance Co. Ltd. 12450000.00 -
Notes payable Chongqing Changrong Machinery Co. Ltd. 9640073.64 5667059.25
Notes payable Chengdu Lingchuan Vehicle Oil Tank Co. Ltd. 9520000.00 2640000.00
Southwest Ordnance Industry Chongqing
Notes payable 9074966.47 10355405.72
Environmental Protection Research Institute Co. Ltd.Notes payable Chengdu Huachuan Electric Equipment Co. Ltd. 8520000.00 -
Longchang Shanchuan Precision Welded Tube Co.Notes payable 6960000.00 6670000.00
Ltd.Notes payable Chongqing Dajiang Jiexin Forging Co. Ltd. 2990000.00 340000.00
Chongqing Changan Intelligent Industrial Technology
Notes payable 1427604.24 -
Service Co. Ltd
Notes payable Chongqing Qingshan Transmission Sales Co. Ltd. 30000.00 -
Notes payable Hunan Tianyan Machinery Co. Ltd. - 97750000.00
Subtotal 7272428490.68 5723820772.06
Account
Jiangling Holdings Co. Ltd. 1797280504.24 1354996530.62
payable
Account
Chongqing Tsingshan Industrial Co. Ltd. 882955222.20 1161486369.43
payable
Account
Chongqing Nexteer Steering System Co.Ltd. 369590620.19 460868914.97
payable
Account
Chenzhi (Chongqing) Brake System Co. Ltd 179516185.64 146361112.11
payable
Account Hubei Huazhong Marelli Automobile Lighting Co.
158141385.62304497612.19
payable Ltd.Account
Dajiang Yapp Automotive Systems Co. Ltd. 145416430.04 188849804.56
payable
Account
South Inter Air-conditioner Co.Ltd. 140937227.43 218167579.17
payable
Account
Chongqing Dajiang Tongyang Plastics Co. Ltd. 129292020.43 160704720.85
payable
Account
Sichuan Jian'an Industrial Co.Ltd. 124200216.89 209471637.23
payable
96Account Harbin Dongan Automotive Engine Manufacturing
120799931.15112601705.64
payable Co. Ltd.Account Chongqing Dajiang Guoli Precision Machinery
115836205.5580230007.07
payable Manufacturing Co. Ltd.Account
CDGM Tanaka Environmental Catalyst Co.Ltd. 97688910.97 288969832.65
payable
Account Lear Changan (Chongqing) Automotive System Co.
93683471.3941271.92
payable Ltd
Account
CSM Faurecia Automotive Parts Co. Ltd. 92039586.13 133412554.27
payable
Account
Harbin Dongan Auto Engine Co. Ltd. 82578904.46 82269854.10
payable
Account
United Automotive Electronics (Chongqing) Co. Ltd 63495236.60 175204866.08
payable
Account GKN HUAYU Driveline Systems (Chongqing) Co.
62988650.63131979852.57
payable Ltd
Account
Chengdu Huachuan Electric Equipment Co. Ltd. 56306690.89 133533197.37
payable
Account
Hunan Tianyan Machinery Co. Ltd 52385063.07 62751647.18
payable
Account
Chongqing Changrong Machinery Co. Ltd. 46306272.20 53190098.24
payable
Account
Sichuan Ningjiang Shanchuan Machinery Co Ltd. 39620939.17 217032427.38
payable
Account Chongqing Jianshe Automobile Air-conditioner Co.
37332675.8815466830.30
payable Ltd.Account
Hubei Xiaogan Huazhong Automobile Light Co. Ltd. 36104638.63 30315072.22
payable
Account Chongqing Lingchuan Auto Parts Manufacturing
34870845.8844644512.83
payable Technology Co. Ltd.Account
Chongqing Changan Minsheng Logistics Co. Ltd. 27430966.56 12682710.95
payable
Account
Chongqing Shangfang Automobile Fittings Co. Ltd. 27039767.01 32922573.42
payable
Account
Chengdu Wanyou Filter Co. Ltd. 21626491.55 23915398.04
payable
Account
Construction Industry Group (Yunnan) Co. Ltd 20984974.87 327412.94
payable
Account Chongqing Hanon Jianshe Automotive Thermal
20123010.475633908.16
payable Systems Co. Ltd.Account
Chengdu Lingchuan Vehicle Oil Tank Co. Ltd. 16119198.40 18306736.20
payable
Account
Chongqing Construction Tongda Industrial Co. Ltd. 16079337.46 21293902.87
payable
Account Tiannak Lingchuan (Chongqing) exhaust system Co.
11730407.3393157.04
payable Ltd
Account
Chongqing Wanyou Economic Development Co. Ltd. 5049141.72 7393900.62
payable
Account
Chongqing Qingshan Transmission Sales Co. Ltd. 4933395.59 11834165.78
payable
Account Chongqing Yihong Engineering Plastic Products Co.
4823040.7922446756.72
payable Ltd.Account
Chongqing Dajiang Jiexin Forging Co. Ltd. 4650255.00 421518.30
payable
97Account
Beijing Wutong Chelian Technology Co. Ltd. 4582954.79 1781815.70
payable
Account Longchang Shanchuan Precision Welded Tube Co.
3062086.174292608.83
payable Ltd.Account
China Changan Automobile Group Co. Ltd. 1954952.24 1040003.18
payable
Account Chongqing Changan Intelligent Industrial Technology
1443978.001443978.00
payable Service Co. Ltd
Account AVATR (Chongqing) Automobile Sales & Service
1100769.80587070.80
payable Co. Ltd
Account
Chenzhi (Chengdu) Intelligent Suspension Co. Ltd 779332.12 1220521.72
payable
Account
Avatr Technology (Chongqing) Co. Ltd 643755.00 914385.00
payable
Account Chongqing Changxian Intelligent Technology Co.
558742.05-
payable Ltd
Account
Nanyang Lida Optoelectronics Co. Ltd 545044.95 -
payable
Account
Chongqing Wutong Chelian Technology Co. Ltd 311014.83 3636473.60
payable
Account
Chongqing Changan industry (Group) Co. Ltd 154239.51 601675.65
payable
Account Chengdu Jialing Huaxi Optical & Precision
139598.40242083.74
payable Machinery Co. Ltd.Account
Chongqing Jialing Yimin Special Equipment Co. Ltd. 104496.50 104496.50
payable
Account
Times Changan Power Battery Co.Ltd. 99460.00 95181872.65
payable
Account Chongqing Jianshe Mechanical & Electrical
94531.8247265.91
payable Equipment Co. Ltd.Account
Chongqing Construction Industry (Group) Co. Ltd 90189.67 575587.79
payable
Account
Chongqing Xiyi automobile connecting rod Co. Ltd 38422.14 38422.14
payable
Account
Chongqing Changan Property Management Co. Ltd. 12402.00 -
payable
Account
Hangzhou Chelizi Intelligent Technology Co. Ltd. 12350.00 12350.00
payable
Account Ald Fortune Auto Leasing & Renting (Shanghai) Co.
11820.7932771.36
payable Ltd.Account
Chongqing Dajiang Yuqiang Plastic Co. Ltd. 7068.48 3588068.59
payable
Account
Hafei Automobile Co. Ltd 344.04 344.04
payable
Account Beijing Beiji Mechanical and Electrical Industry Co.-141911.64
payable Ltd.Account
Chengdu Lingchuan Special Industry Co. Ltd. - 101585.16
payable
Account Chongqing Wanyou Xingjian Auto Sales & Service
-20842.80
payable Co. Ltd.Subtotal 5155705375.33 6039926286.79
Contract Chengdu Wanyou Xiangyu Auto Sales and Service
124978443.85110584225.04
liabilities Co. Ltd.
98Contract
Jiangsu Wanyou Automobile Sales Service Co. Ltd. 69459070.92 26589072.67
liabilities
Contract
Chongqing Wanyou Economic Development Co. Ltd. 54366075.62 62975674.47
liabilities
Contract
Guizhou Wanyou Auto Sales and Service Co. Ltd. 35493993.56 68070242.12
liabilities
Contract
Anhui Wanyou Automobile Sales Service Co. Ltd. 26674923.57 9994433.27
liabilities
Contract
Yunnan Wanyou Auto Sales and Service Co. Ltd. 22211744.68 55836423.36
liabilities
Contract
Wanyou Automobile Investment Co. Ltd. 17659822.55 23183182.96
liabilities
Contract China Changan Automobile Group Tianjin Sales Co.
7981217.138118237.92
liabilities Ltd.Contract
Pakistan Master Automobile Co. Ltd. 7326740.89 6452463.66
liabilities
Contract Nanchang Jiangling Group Tianren Auto Parts Co.
6854200.00-
liabilities Ltd
Contract
Chongqing Fuji Supply Chain Management Co. Ltd 6467467.30 -
liabilities
Contract
Chengdu Wanyou Auto Trade Service Co. Ltd. 5853128.95 16498448.61
liabilities
Contract
Changan Mazda Engine Co. Ltd. 3256185.92 -
liabilities
Contract Ordnance Equipment Research Institute of China
759366.75-
liabilities Ordnance Equipment Group
Contract
Changan Automobile Finance Co. Ltd 685200.00 606371.68
liabilities
Contract
Hafei Automobile Co. Ltd 471942.49 417648.22
liabilities
Contract
Chengdu Wanyou Auto Sales and Service Co.Ltd. 275094.97 345372.38
liabilities
Contract
Chongqing Changan Minsheng Logistics Co. Ltd. 202904.23 271047.12
liabilities
Contract
Chongqing Anfu Automobile Co. Ltd. 178600.00 -
liabilities
Contract Chongqing Wanyou Ducheng Auto Sales Service Co.
91336.65207654.20
liabilities Ltd.Contract
Dali Wanfu Automobile Sales and Service Co. Ltd 45130.22 46416.87
liabilities
Contract
Beijing North Changfu Automobile Sales Co. Ltd 10000.00 -
liabilities
Contract
Chongqing Shangfang Automobile Fittings Co. Ltd. 3980.00 3522.12
liabilities
Contract
Luzhou Wanyou Automobile Service Co. Ltd. 121 54775.96
liabilities
Contract Chongqing Wanyou Zunda Automobile Sales &
-89057725.73
liabilities Service Co. Ltd.Contract Chongqing Wanyou Zhicheng Automobile Sales and
-9803782.94
liabilities Service Co. Ltd
Contract
Avatr Technology (Chongqing) Co. Ltd - 970882.61
liabilities
Contract
Ya'an Wanyou Auto Sales and Service Co. Ltd. - 112302.96
liabilities
99Contract Chongqing Wanyou Xingjian Auto Sales & Service
-66275.60
liabilities Co. Ltd.Contract
Bazhong Wanyou Auto Sales & Service Co. Ltd. - 44625.20
liabilities
Contract
Panzhihua Wanyou Auto Sales & Service Co. Ltd. - 32689.44
liabilities
Contract
Chengdu Wanyou Trading Co. Ltd. - 15049.38
liabilities
Contract China Changan Automobile Group Hefei Investment
-9091.15
liabilities Co. Ltd.Contract
Yunnan Wanxing Auto Sales Service Co. Ltd. - 87.61
liabilities
Contract
Changan Ford Automobile Co. Ltd. - 0.32
liabilities
Subtotal 391306691.25 490367725.57
Other
Chongqing Changan Minsheng Logistics Co. Ltd. 647744953.55 500998344.99
payables
Other
Hafei Automobile Co. Ltd 66824300.00 -
payables
Other
China Changan Automobile Group Co. Ltd. 9825445.99 -
payables
Other
Chongqing Tsingshan Industrial Co. Ltd. 9240873.90 18225258.51
payables
Other
Chongqing Changan Construction Co. Ltd. 7762873.49 7120158.39
payables
Other Changan Reis (Chongqing) Robotic Intelligent
7439420.937439420.93
payables Equipment Co. Ltd.Other Ald Fortune Auto Leasing & Renting (Shanghai) Co.
7088464.8310098882.10
payables Ltd.Other Chongqing Dajiang Guoli Precision Machinery
6015690.3599087.65
payables Manufacturing Co. Ltd.Other Southwest Ordnance Industry Chongqing
5544649.346567229.16
payables Environmental Protection Research Institute Co. Ltd.Other
Chongqing Wanyou Talent Service Co. Ltd 5428594.36 -
payables
Other
Chongqing Changan Property Management Co. Ltd. 4167170.61 4291910.22
payables
Other
Chongqing Wanyou Economic Development Co. Ltd. 4097100.00 9733185.00
payables
Other China Changan Automobile Group Tianjin Sales Co.
3861800.004967547.10
payables Ltd.Other
Jiangsu Wanyou Automobile Sales Service Co. Ltd. 3632500.00 12433698.10
payables
Other Hubei Huazhong Marelli Automobile Lighting Co.
3085295.00411875.16
payables Ltd.Other Chongqing Changan Intelligent Industrial Technology
2789214.264000701.62
payables Service Co. Ltd
Other
Yunnan Wanyou Auto Sales and Service Co. Ltd. 2723100.00 7847297.00
payables
Other
Times Changan Power Battery Co.Ltd. 2181917.60 -
payables
Other
Sichuan Jian'an Industrial Co.Ltd. 2124179.80 1670420.64
payables
100Other
South Inter Air-conditioner Co.Ltd. 1703953.02 3885605.94
payables
Other
CSM Faurecia Automotive Parts Co. Ltd. 1408964.50 2292829.98
payables
Other
Chenzhi (Chongqing) Brake System Co. Ltd 1192027.46 81873.02
payables
Other
Chengdu Wanyou Auto Trade Service Co. Ltd. 983340.00 2041261.84
payables
Other
Guizhou Wanyou Auto Sales and Service Co. Ltd. 803436.32 4854300.00
payables
Other
Chongqing Changan industry (Group) Co. Ltd 791056.30 875856.10
payables
Other Chengdu Wanyou Xiangyu Auto Sales and Service
634500.009558725.84
payables Co. Ltd.Other
Anhui Wanyou Automobile Sales Service Co. Ltd. 627800.00 938180.00
payables
Other
Jiangling Holdings Co. Ltd. 487269.56 -
payables
Other
Chongqing Southwest Inspection and Testing Co. Ltd 348157.54 -
payables
Other
Changan Ford Automobile Co. Ltd. 315404.16 752549.61
payables
Other
Avatr Technology (Chongqing) Co. Ltd 232238.36 -
payables
Other Chongqing Wanyou Xingjian Auto Sales & Service
200000.00441740.00
payables Co. Ltd.Other
Ya'an Wanyou Auto Sales and Service Co. Ltd. 163900.00 2100513.14
payables
Other
Dajiang Yapp Automotive Systems Co. Ltd. 156286.40 17514.74
payables
Other Chongqing Wanyou Ducheng Auto Sales Service Co.
136100.00737780.00
payables Ltd.Other
Chengdu Wanyou Filter Co. Ltd. 120000.00 939532.50
payables
Other
Chengdu Wanyou Auto Sales and Service Co.Ltd. 120000.00 3200000.00
payables
Other
Chenzhi Technology Co. Ltd 107350.00 -
payables
Other
Sichuan Ningjiang Shanchuan Machinery Co Ltd. 104511.20 84283.54
payables
Other Chongqing Wanyou Zhicheng Automobile Sales and
100174.50-
payables Service Co. Ltd
Other GKN HUAYU Driveline Systems (Chongqing) Co.
68873.5089598.75
payables Ltd
Other
Chengdu Huachuan Electric Equipment Co. Ltd. 65356.32 237375.50
payables
Other Harbin Dongan Automotive Engine Manufacturing
45263.2812665.04
payables Co. Ltd.Other
Hubei Xiaogan Huazhong Automobile Light Co. Ltd. 44971.36 -
payables
Other
Chongqing Nexteer Steering System Co.Ltd. 6518.69 1238092.98
payables
Other
United Automotive Electronics (Chongqing) Co. Ltd 4746.00 159089.20
payables
101Other
Chongqing Shangfang Automobile Fittings Co. Ltd. 2457.06 215604.00
payables
Other
Chongqing Changrong Machinery Co. Ltd. 250.59 88358.88
payables
Other Chongqing Lingchuan Auto Parts Manufacturing
-681921.10
payables Technology Co. Ltd.Other
CDGM Tanaka Environmental Catalyst Co.Ltd. - 229627.31
payables
Other
Luzhou Wanyou Automobile Service Co. Ltd. - 221800.00
payables
Other Chongqing Wanyou Zunda Automobile Sales &
-213235.41
payables Service Co. Ltd.Other
Beijing North Changfu Automobile Sales Co. Ltd - 200000.00
payables
Other Chongqing Wanyou Chengxing Automobile Sales and
-120000.00
payables Service Co. Ltd
Other
Chongqing Dajiang Xinda Vehicles Shares Co. Ltd. - 100000.00
payables
Other
China Ordnance News - 44850.00
payables
Other
Hunan Tianyan Machinery Co. Ltd. - 21696.00
payables
Other
Dali Wanfu Automobile Sales and Service Co. Ltd - 1691.00
payables
Other
Chongqing Construction Tongda Industrial Co. Ltd. - 1343.94
payables
Other Chongqing Yihong Engineering Plastic Products Co.-159.91
payables Ltd.Subtotal 812552450.13 632584671.84
XV. Share-based payments
1. General information
In RMB Yuan
Grant in current Exercise rights in Lose efficacy in
Grant object Unlock in current period
period current period current period
category
Number Amount Number Amount Number Amount Number Amount
Staff 43135948.00 132685226.16
Total 43135948.00 132685226.16
2. Equity settled share based payment
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
Cumulative amount of equity settled share based
1192614367.92
payment included in capital reserve
1023. Share based payment expenses for current period
Grant object category Equity settled share based payment fees Share based payment fees settled in cash
Staff 181288200.00
Total 181288200.00
XVI. Commitments and Contingencies
1. Important commitments existing on the balance sheet date
Contracted but not provided for
In RMB Yuan
ending balance Beginning balance
Capital commitments 10101161476.92 11619677925.31
Investment commitments 894050000.00 1132500000.00
Total 10995211476.92 12752177925.31
XVII. Events after the balance sheet date
None
XVIII. Other important events
None
XIX. Notes to the main items of the parent company’s financial statements
1. Account Receivables
(1) Accounts receivable disclosed by aging
In RMB Yuan
Account receivable age Ending balance Beginning balance
Less than 1 year (including 1 year) 12185535712.57 7757039345.74
1 to 2 years (including 2 years) 247784277.93 4629777.82
2 to 3 years (including 3 years) 222236659.88 713934590.78
Over 3 years 667087783.22 172295427.89
Subtotal 13322644433.60 8647899142.23
Minus：Provision 66499035.09 68395117.00
Total 13256145398.51 8579504025.23
103(2) Accounts receivable are classified and disclosed according to the bad debt provision method
In RMB Yuan
Ending balance
Item Book balance Bad debt reserves
Book value
Amount Ratio (%) Amount Ratio (%)
Individually analyzed
12892811222.5096.7737652846.200.2912855158376.30
for provision
Accounts receivable
analyzed as groups for 429833211.10 3.23 28846188.89 6.71 400987022.21
provision
Total 13322644433.60 100.00 66499035.09 13256145398.51
In RMB Yuan
Beginning balance
Item Book balance Bad debt reserves
Book value
Amount Ratio (%) Amount Ratio (%)
Individually analyzed
8521036971.3598.5337652846.200.448483384125.15
for provision
Accounts receivable
analyzed as groups for 126862170.88 1.47 30742270.80 24.23 96119900.08
provision
Total 8647899142.23 100.00 68395117.00 8579504025.23
Provision for bad debts based on credit risk characteristics:
In RMB Yuan
Ending balance
Item Estimated book balance of Expected credit loss rate Expected credit loss for the
default (%) entire duration
Within 1 year (including 1
389060540.220.0130910.34
year)
1 to 2 years 9189589.19 0.16 14272.48
2 to 3 years
More than 3 years 31583081.69 91.19 28801006.07
Total 429833211.10 28846188.89
(3) Provision for bad debts accrued recovered or reversed in this period
In RMB Yuan
Report period Amount
Items Beginning balance Withdrawal or Ending balance
Accrual
reversal
Individually analyzed for provision 37652846.20 37652846.20
Accounts receivable analyzed as groups
30742270.801896081.9128846188.89
for provision
Total 68395117.00 1896081.91 66499035.09
104(4) Accounts receivable of the top five ending balances collected by the debtor
As of June 30 2024 the top five accounts receivable had a total balance of 9852015270.32 yuan accounting for 73.95% of the total
ending balance of accounts receivable.
2. Other receivables
In RMB Yuan
Items Ending balance Beginning balance
Dividends receivable 22469320.00
Other receivables 439225446.87 237247787.26
Total 461694766.87 237247787.26
(1) Dividends receivable
1) Classification of dividends receivable
In RMB Yuan
Items ( or invested units ) Ending balance Beginning balance
Chongqing Changan Kuayue Vehicle Co. Ltd 3430000.00
Zhongfa Lian Investment Co. Ltd 19039320.00
Total 22469320.00
(2) Other receivables
1) Disclosure by aging
In RMB Yuan
Aging Ending balance Beginning balance
Less than 1 year (including 1 year) 429857858.95 231794668.72
1 to 2 years (including 2 years) 7545438.39 3543202.13
2 to 3 years (including 3 years) 1804946.67 1987846.67
Over 3 years 6930932.77 6930932.77
Subtotal 446139176.78 244256650.29
Minus：Provision 6913729.91 7008863.03
Total 439225446.87 237247787.26
2) Classified disclosure based on bad debt provision method
In RMB Yuan
Ending balance
Item Book balance Bad debt reserves
Book value
Amount Ratio (%) Amount Ratio (%)
Individually analyzed
361296709.5180.986842932.771.89354453776.74
for provision
105Accounts receivable
analyzed as groups for 84842467.27 19.02 70797.14 0.08 84771670.13
provision
Total 446139176.78 100.00 6913729.91 439225446.87
In RMB Yuan
Beginning balance
Item Book balance Bad debt reserves
Book value
Amount Ratio (%) Amount Ratio (%)
Individually analyzed
173323245.2670.966842932.773.95166480312.49
for provision
Accounts receivable
analyzed as groups for 70933405.03 29.04 165930.26 0.23 70767474.77
provision
Total 244256650.29 100.00 7008863.03 237247787.26
3) Provision for bad debts
In RMB Yuan
Phase 1 Phase 2 Phase 3
Expected credit loss Expected credit loss
Bad debts Expected credit loss for for the entire duration for the entire duration Total
the next 12 months (no credit impairment (credit impairment
has occurred) already occurred)
Ending balance of the
165930.266842932.777008863.03
previous year
Last year's ending balance in
the current period
——Entering the Phase 2
——Entering the Phase 3
——Return to the Phase 2
——Return to the Phase 1
Provision for this period
Current period reversal 95133.12 95133.12
This period's resale
Verification in this period
Other changes
Ending balance 70797.14 6842932.77 6913729.91
The changes in the book balance of other receivables are as follows:
In RMB Yuan
Phase 1 Phase 2 Phase 3
Expected credit loss Expected credit loss
Bad debts Expected credit loss for the entire duration for the entire duration Total
for the next 12 months (no credit impairment (credit impairment
has occurred) already occurred)
106Ending balance of the
237413717.526842932.77244256650.29
previous year
Last year's ending balance in
the current period
——Entering the Phase 2
——Entering the Phase 3
——Return to the Phase 2
——Return to the Phase 1
Newly added in this period 645616722.76 645616722.76
Termination confirmation
443734196.27443734196.27
for this period
Other changes
Ending balance 439296244.01 6842932.77 446139176.78
4) Provision for bad debts accrued recovered or reversed in this period
In RMB Yuan
Current period change amount
Item Beginning balance Withdrawal or Ending balance
Provision
reversal
Individually analyzed for provision 6842932.77 6842932.77
Accounts receivable analyzed as
165930.2695133.1270797.14
groups for provision
Total 7008863.03 95133.12 6913729.91
5) Classification of other receivables by nature of payment
In RMB Yuan
Nature of Payment Ending book balance Beginning book balance
Prepaid equity investment funds 347940427.45 109286581.45
Reserve fund 13796543.91 69048305.62
Internal communication 6513349.29 25410795.04
Subsidies receivable 31782936.00
Others 77888856.13 8728032.18
Total 446139176.78 244256650.29
6) Other receivables with the top five ending balances collected by debtor
As of June 30 2024 the top five ending balances of other receivables amounted to RMB 381521764.61 accounting for 85.52% of
the total ending balance of other receivables.
1073. Long-term equity investment
In RMB Yuan
Ending balance Beginning balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in subsidiaries 7722549139.12 49194195.00 7673354944.12 7722549139.12 49194195.00 7673354944.12
Investment in joint ventures
12110989687.6612110989687.6611762095077.2511762095077.25
and associates
Total 19833538826.78 49194195.00 19784344631.78 19484644216.37 49194195.00 19435450021.37
(1) Investment in subsidiaries
In RMB Yuan
Changes during report period
Ending Balance of
Investee Opening Balance reduce Provision for Ending Balance
Addition Others provision
investment impairment
Hefei Changan Automobile Co.Ltd. 1535367765.23 1535367765.23
Chongqing Changan International Automobile
1182068581.001182068581.00
Sales Co. Ltd.Chongqing Changan Kaicheng Automobile
977793971.55977793971.55
Technology Co. Ltd.Chongqing Changan Lingyao Automobile Co.
594949059.30594949059.30
Ltd.Nanjing Changan Automobile Co. Ltd. 422533259.00 422533259.00
Changan Automobile Russia Co. Ltd. 251242589.15 251242589.15
Changan United Kingdom R&D Center Co.
250093850.95250093850.95
Ltd.Changan Automobile Investment (Shenzhen)
237889511.00237889511.00
Co. Ltd
Chongqing Changan Europe Design Center Co. 155469913.50 155469913.50
108Ltd.
Chongqing Changan Automobile Software
99000000.0099000000.00
Technology Co. Ltd.Chongqing Changan Technology Co. Ltd 90000000.00 90000000.00
Chongqing Changan Connected Car
88500000.0088500000.00
Technology Co. Ltd.Nanjing Changan New Energy Automobile
50000000.0050000000.00
Sales & Service Co. Ltd.Chongqing Zhilaidadao New Energy Co. Ltd 49194195.00 49194195.00 49194195.00
Chongqing Changan Automobile Supporting
29700000.0029700000.00
Service Co. Ltd.Chongqing Changan Xing Automobile Co. Ltd 20000000.00 20000000.00
Deepal Automobile Technology Co. Ltd 1655606604.29 1655606604.29
Changan United States R&D Center Co. Ltd. 10243460.00 10243460.00
Chongqing Chehemei Technology Co. Ltd. 10000000.00 10000000.00
Guangzhou Changan New Energy Automobile
4000000.004000000.00
Co. Ltd.Chongqing Changan Special Automobile Co.
2500000.002500000.00
Ltd.Xiamen Changan New Energy Automobile Co.
2000000.002000000.00
Ltd.Chongqing Anyi Automobile Technical Service
2000000.002000000.00
Co. Ltd.Changan Japan Designing Center Co.Ltd. 1396370.15 1396370.15
Beijing Changan R&D Center Co. Ltd. 1000000.00 1000000.00
Changan Automobile Southeast Asia Co. Ltd 3.00 3.00
Changan Automotive Parts (Thailand) Co. Ltd 3.00 3.00
Changan Automobile Sales (Thailand) Co. Ltd 3.00 3.00
Total 7722549139.12 7722549139.12 49194195.00
109(2) Investment in associates and joint ventures
In RMB Yuan
Changes during report period
Closing
Other Declare the
Investment balance of Investee Opening Balance comprehensive Other equity distribution of Ending Balance
Addition income/loss under impairment
income changes cash dividends or
equity method provision
adjustments profits
1. Joint ventures
Nanchang Jiangling Investment 2288047015.8
2106206520.20181840492.722.89
Co. Ltd. 1
Changan Mazda Automobile
878239492.13(102147632.24)776091859.89
Co. Ltd.Changan Mazda Engine Co.
805005706.401138226.54806143932.94
Ltd.Changan Ford Automobile Co.
618761192.06618761192.06
Ltd.
4489044000.7
Subtotal 3789451718.73 699592279.08 2.89
0
2. Associates
Changan Automobile 3242757998.0
3041392973.86201365024.22
Financing Co. Ltd. 8
Nanjing Leading Equity
2637958931.3
Investment Partnership 2645793326.69 (7834395.32)
7
(Limited Partnership)
Zhongqi Chuangzhi
448515220.54(8958355.14)439556865.40
Technology Co. Ltd.Chongqing Changan Kuayue
228765251.642148873.70(3430000.00)227484125.34
Automobile Co. Ltd.Chongqing Changxin Zhiqi
Private Equity Investment
204518396.388011212.22212529608.60
Fund Partnership (Limited
Partnership)
Era Chang'an Power Battery
132637632.28(37137975.00)95499657.28
Co. Ltd
110Chongqing Changxian
Intelligent Technology Co. 103217635.38 524784.92 103742420.30
Ltd
Chongqing Changan
Innovation Private Equity
Investment Fund Partnership 70104473.99 308.14 70104782.13
Enterprise (Limited
Partnership)
Changan Ford New Energy
67713664.93(17113068.64)50600596.29
Vehicle Technology Co. Ltd
Anhe Chongqing Dingfeng
Automobile Contract Private 61692352.41 370450.00 62062802.41
Equity Investment Fund
Coresing Semiconductor
28502232.09161981.1328664213.22
Technology Co. Ltd.Nanjing Leading Equity
Investment Management Co. 1107400.12 (6888.58) 1100511.54
Ltd.Nanjing Chelai Travel
584824.65(251725.81)333098.84
Technology Co. Ltd.Avatr Technology (Chongqing)
938097973.56(561624968.82)(184358.40)3221300.64379509946.98
Co. Ltd.Chongqing Changyu Private
Equity Investment Fund
69600000.00(578713.15)69021286.85
Partnership Enterprise (Limited
Partnership)
Chongqing Changan Kuayue
1018842.331018842.33
Vehicle Marketing Co. Ltd
7621945686.9
Subtotal 7972643358.52 69600000.00 (419904613.80) (184358.40) 3221300.64 (3430000.00)
6
12110989687.
Total 11762095077.25 69600000.00 279687665.28 (184355.51) 3221300.64 (3430000.00)
66
1114. Operating revenue and cost
In RMB Yuan
Report period Same period of last year
Items
Revenue Cost Revenue Cost
Main business 51569910876.74 47417805945.42 51607236773.22 44981068323.56
Other business 3250931919.13 1606192812.26 2769138423.99 1060042185.33
Total 54820842795.87 49023998757.68 54376375197.21 46041110508.89
5. Investment income
In RMB Yuan
Items Current amount Prior-period amount
Long-term equity investment losses
297000000.00544650000.00
accounted for by the cost method
Long-term equity investment losses
279687665.28(141552078.57)
accounted for by the equity method
Investment income from disposal of long-term equity investments 1.00
The investment income of financial asset held for trading during its
1979999.951406842.07
holding period
Dividend income from remaining investments in
19039320.00180656814.04
other equity instruments
Others 52306889.42
Total 650013874.65 585161578.54
XX. Additional information
1. Non-recurring profit and loss statement of current period
In RMB Yuan
Item Amount Illustration
Non-recurring items and amounts 4959452.69
Government subsidies included in the profit and loss of the current period
(Except closely related to business operations in accordance with the
1470786451.16
national unified standard quota or quantitative enjoyment of government
subsidies)
In addition to the effective hedging business related to the normal business
of the company the gains and losses from changes in fair value arising from
the holding of trading financial assets derivative financial assets trading
financial liabilities derivative financial liabilities and disposal of (27836943.34)
transactional financial assets derivative finance Investment income from
assets trading financial liabilities derivative financial liabilities and other
debt investments
Capital occupation fees charged to non-financial enterprises included in the
35416356.91
current profit and loss
Reversal of impairment provision for accounts receivable separately tested
8614937.00
for impairment
Other non-operating income and expenses other than the above items 27056373.59
Other profit and loss items that meet the definition of non recurring gains
215878122.13
and losses
Subtotal 1734874750.14
112Subtract: Influenced amount of income tax 37405904.07
Influenced amount of minority shareholders’ equity (after tax) 34405791.12
Total 1663063054.95 --
2. Return on equity and earnings per share
Weighted average Earnings per share (yuan/share)
Profit in report period return on equity
（%） Basic EPS Diluted EPS
Net profit belonging to the Company’s common
3.940.290.28
stockholders
Net profit belonging to the Company’s common
stockholders after deducting non-recurring profit 1.63 0.12 0.12
and loss
113
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