Chongqing Changan Automobile
Company Limited
2015 Annual Report
April,2016
Chapter 1 Important Notice, Contents, and Definitions
The Board of Directors, the Board of Supervisors, Directors, Supervisors and Senior
Executives of our company hereby guarantee that no false or misleading statement or major
omission was made to the materials in this report and that they will assume all the responsibilities,
individually and jointly, for the trueness, accuracy and completeness of the contents of this report.
Chairman of the Board Xu Liuping, the Chief Financial Officer Wang Kun and the responsible
person of the accounting institution (Accountant in charge) Hua Zhanbiao hereby declare that the
Financial Statements enclosed in this annual report are true, accurate and complete.
All directors attended the board meeting for reviewing the annual report.
The prospective description regarding future business plan and development strategy in this
report does not constitute virtual commitment. The investors shall pay attention to the risk.
The preplan profit distribution of the Company deliberated and approved by the Board is:
taking the total shares as of Dec. 31, 2015 as the radix, sending cash dividends of RMB 6.4Yuan
(tax included) per every 10 shares to all shareholders, and not converting capital reserve into share
capital.
1
CONTENTS
Chapter 1 Important Notice, Contents, and Definitions ............................................. 1
Chapter 2 Company Profile & Main Financial Indexes ............................................. 5
Chapter 3 Analysis of Main Business ...................................................................... 10
Chapter 4 Management Discussion and Analysis .................................................... 12
Chapter 5 Important Matters .................................................................................... 29
Chapter 6 Changes in the shareholding of the company and shareholders .............. 43
Chapter7 Information about Directors, Supervisors, Senior Management and
Employees ................................................................................................................... 49
Chapter 8 Corporate Governance ............................................................................. 61
Chapter 9 Auditor’s Report ...................................................................................... 68
Chapter 10 Documents for Future Reference......................................................... 206
2
Definitions
ITEM Definition
Changan Auto., the
Refers to Chongqing Changan Automobile Company Limited
Company
South Industries Refers to China South Industries Group Corp. Company’s actual controller
China Changan Automobile Group Corporation, old name: China South
China Changan Refers to
Industries automobile Co., Ltd., a subsidiary company of South Industries
Chongqing Changan Industry (Group) Co., Ltd., old name: Changan
Automobile Co., Ltd., Changan Automobile (Group) Co., Ltd., a
Changan Industry Refers to
subsidiary company of South Industries, the controlling shareholder of the
Company before December, 2005
Nanjing Changan Automobile Co., Ltd., a subsidiary company of the
Nanjing Changan Refers to
Company
Hebei Changan Automobile Co., Ltd., a subsidiary company of the
Hebei Changan Refers to
Company
Hefei Changan Automobile Co., Ltd., a subsidiary company of the
Hefei Changan Refers to
Company
Changan Bus Refers to Baoding Changan Bus Co., Ltd., a subsidiary company of the Company
International Company Refers to Chongqing Changan Automobile International Sale Service Co., Ltd.
Changan Ford Refers to Changan Ford Automobile Co.,，a JV of the Company
Changan Mazda Refers to Changan Mazda Automobile Co., a JV of the Company
CFME Refers to Changan Ford Mazda Engine Co., a JV of the Company
Changan Suzuki Refers to Chognqing Changan Suzuki Auto. Co.Ltd., a JV of the Company
CAPSA Refers to Changan PSA Automobiles Co., Ltd，a JV of the Company
Jiangling Holding Refers to Jiangling Holding Co., a JV of the Company
Chongqing Auto Finance Refers to Chongqing Auto Finance Co.Ltd Company's Joint Stock Company
Financial Co. of CSGC Refers to Financial Co. of China South Industries Group Corporation
United Prosperity (Hong Kong)Investment Co., Ltd,a subsidiary company
UPI Refers to
of China Changan
Harbin Hafei Automobile Industry Group Co., Ltd., a subsidiary company
Hafei Group Refers to
of China Changan
Chongqing Changan Minsheng APLL Logistics Co., Ltd, a subsidiary
CMAL Refers to
company of Changan Industry
3
Matrial Risk Notice
In the fourth chapter of Management's Discussion and Analysis, the company describes the
competition pattern and development trend of the automobile industry, the company’s business plan
in 2016, the possible risks. Please refer to the relevant part. The prospective description regarding
future business plan and development strategy in this report does not constitute virtual commitment.
The investors shall pay attention to the risk.
4
Chapter 2 Company Profile & Main Financial Indexes
I. Basic Information
Stock abbreviation Changan Automobile 、Changan B Stock Code 000625、200625
Listed on Shenzhen Stock Exchange
Company in Chinese
重庆长安汽车股份有限公司
name
Company abbreviation in
长安汽车
Chinese name
Company name in
Chongqing Changan Automobile Company Limited
English
Legal representative Xu LiuPing
Registered address No. 260, East Jianxin Road Jiangbei District, Chongqing
Post code of the
400023
registered address
Office address No. 260, East Jianxin Road, Jiangbei District, Chongqing
Post code of the office
400023
address
Website http://www.changan.com.cn
E-mail address cazqc@changan.com.cn
Ⅱ. Contact Information
Secretary of the Board of Directors Securities affairs representative
Name Wangkun( On behalf),Lijun
No. 260, East Jianxin Road, Jiangbei
Contact address
District, Chongqing
TEL: 023-67594008
FAX: 023-67866055
E-mail address cazqc@changan.com.cn
Ⅲ. Information Disclosure and Filing Site
Newspaper selected by the Company for
China Securities Journal, Securities Daily and Hong Kong Commercial Daily
information disclosure
Website selected by CSRC for publishing www.cninfo.com.cn
5
this annual report
The place where this annual report is
Secretary's Office of Board of Directors
prepared and kept
IV. Changes of Registration Information
Organization Code 9150000020286320X6
Changes in the main business since
No Change
the company's listing(if have)
1. In Oct. 2005, according to the restructuring program on automobile business, the
Company’s actual controller, China South Industries Group Corporation made
transferring of all state-owned shares of the Company as part of funding for China
South Industries Automobile Company Limited. In March 2006, all shares held by
Changan Group have been transferred to China South Industries Automobile Company
All previous changes of dominant
Limited. China South Industries Automobile Company Limited became the majority
stockholders
shareholder of the Company, and Changan Group holds zero share since then.
2. In July 2009, with the approval of State Administration for Industry and Commerce,
“China South Industries Automobile Company Limited”, changed its name to “China
Changan Automobile Group Co., Ltd.”. After change of its name, its property,
ownership and control relation are without change.
V. Other Relevant Information
The accounting firm employed by the Company:
Name of the accounting firm ERNST&YOUNG Hua Ming LLP
Level 16, Ernst & Young Tower, Oriental Plaza, No. 1 East
Address of the accounting firm
Chang An Avenue, Dong Cheng District, Beijing, China
Name of the certified public accountant for signature Qiao Chun，Ai Wei
The recommendation agency engaged by the Company executing the persistant supervision responsibilities in the
report period
□ Applicable √ Not applicable
The financial consultant engaged by the Company performing the duties of persistant supervision and guidance in
the report period
□ Applicable √ Not applicable
6
VI. Summary of Accounting Data and Financial Indexes
Increase/decrease 2013
on a
2015 2014 year-on-year
basis Before adjustment Adjusted
(%)Adjusted
Operating
66,771,580,527.66 52,913,332,100.83 26.19% 38,481,862,261.90 39,141,703,050.19
revenue (Yuan)
Net profit
belonging to
shareholders of
9,952,714,168.09 7,561,081,585.81 31.63% 3,505,640,520.04 3,368,591,105.89
the listed
company
(Yuan)
Net profit
belonging to
shareholders of
the listed
company after 9,560,013,288.84 7,279,008,679.47 31.34% 3,323,415,945.67 3,120,551,968.04
deduction of
non-recurring
profit and loss
(Yuan)
Net cash flow
arising from
operating 5,414,890,769.50 3,779,921,774.57 43.25% 1,832,646,224.37 1,537,154,348.43
activities
(Yuan)
Basic earnings
per share 2.13 1.62 31.48% 0.75 0.72
(Yuan/Share)
Diluted earnings
per share Not applicable Not applicable Not applicable Not applicable Not applicable
(Yuan/Share)
Return on
equity (ROE) 33.14% 34.20% -1.06% 20.44% 21.77%
(%)
Increase/decrease 2013
of
End of 2015 End of 2014 the end of
current year Before adjustment Adjusted
compared with
7
that of
the previous year
(%)
Total assets
89,413,988,669.66 69,687,352,890.82 28.31% 53,364,694,275.91 54,612,107,747.02
(Yuan)
Net assets
belonging to
shareholders of
the listed
company
(Owner's equity 34,385,189,070.36 25,637,298,549.80 34.12% 18,778,354,427.87 18,857,112,774.61
belonging to
shareholders of
the listed
company)
(Yuan)
VII. The differences between domestic and international accounting standards
(1).Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial
reports of differences in net income and net assets.
□ Applicable √ Not applicable
No difference
(2). Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards.
□ Applicable √ Not applicable
No difference
VIII. Key financial indicators for the quarter
Unit: Yuan
First Quarter Second Quarter Third Quarter Forth Quarter
Business income 18,197,185,337.09 14,855,769,840.40 15,055,000,317.76 18,663,625,032.41
Net profit attributable to shareholders of listing
2,494,491,155.26 2,590,775,371.87 1,655,576,666.88 3,211,870,974.08
Corporation
Net profit attributable to shareholders of the
listing Corporation after deducting non recurring 2,349,996,871.48 2,539,914,388.21 1,546,606,695.04 3,123,495,334.11
gains and losses
Net cash flows from operating activities 2,773,784,253.36 3,662,364,724.67 1,606,902,933.58 -2,628,161,142.11
Whether or not the above mentioned financial indicators and the total number of the company has disclosed the major difference
between quarterly reports and semi-annual report
□ Yes √ No
8
IX. Non recurring items and amounts
□ Applicable √ Not applicable
Unit: Yuan
2013amount
Item 2015 amount 2014 amount
(Restated)
Non recurring items and amounts(including accrued reversal assets
-34,314,067.34 -17,293,198.19 14,249,629.45
impairment part)
Government subsidies included in the profit and loss of the current
period (Except closely related to business operations, in accordance
441,926,607.20 339,001,795.70 234,412,047.68
with the national unified standard quota or quantitative enjoyment
of government subsidies)
The current net profit and loss of the subsidiary period from the
- -43,390,581.51 -
same control to the consolidated day
Except the normal operation of the company's business related to
the effective hedging business , changes in the fair value of the
transaction of financial assets and transaction financial liabilities ,
- - -332,407.00
and dealing with transaction financial assets, transaction financial
liabilities ,and Investment income available for sale of financial
assets
Except the above other operating income and expenses 16,816,296.11 40,605,150.13 2,181,517.38
Interest on deferred payment of funds received by non financial
38,457,111.56 36,729,835.74 44,444,713.09
enterprises
Reduce: the impact of income tax 65,174,314.56 66,584,968.46 45,704,294.34
Impact of minority shareholders' equity (after tax) 5,010,753.72 6,995,127.07 1,212,068.41
Total 392,700,879.25 282,072,906.34 248,039,137.85
According to “Public offering of securities information disclosure of the company's information disclosure announcement No. first -
non recurring gains and losses “Public offering of securities information disclosure of the company's information disclosure
announcement No. first - non recurring gains and losses” defined non recurring items ,and Public offering of securities information
disclosure of the company's information disclosure announcement No. first - non recurring gains and losses “The items listed in the
non recurring items defined as recurring items shall be explained .
□ Applicable √Not applicable
The company in the reporting period does not base on the definition and listing of “Public offering of securities information
disclosure of the company's information disclosure announcement No. first - non recurring gains and losses” about non recurring
gains and losses to define a case of recurring profit or loss.
9
Chapter 3 Analysis of Main Business
I. Overview
The main business of the Company is the development, production and sales of vehicles and sedans, manufacturing automotive
engine series products. During the reporting period, the main products include sedans of CS series SUV, Raeton Series, Eado Series,
Alsvin series and commercial car of Honor,Oulove, Changan Star series and Oushang MPV.
II. Major changes in assets
1、 Major changes in assets
No significant changes in major assets during the reporting period
2、 Main Overseas Assets
□Applicable √ Not applicable
III. Core Competence Analysis
During 12th Five-Year, R & D investment from Changan amounted to 37.8 billion yuan, involving 16 areas, such as vibration
noise, collision safety, braking performance, chassis test, and driving system etc, 194 international advanced laboratories(among
which , automotive noise vibration and Safety Technology Laboratory are Key State Laboratories ), and Changan spent 2 billion
yuan in building Changan Dianjiang car-testing ground , which is the internationally first-class and the largest one in the Western
China.
1、Actively improve the R & D system
Changan has constantly improved the R & D system, built four R&D systems of the CA-TDS, CA-PAS, CA-PDS, CA-PIS, to
precisely guide the product development, built Changan product test and verification system（CA-TVS） to meet the users’needs of
10 years /26 million kilometers. The coverage of the test verification system was 70%, and the coverage of CAE (Computer Aided
Engineering) simulation came up to 68%. It helped the company establish the excellent products. With the strength of the systematic
guidance, the continuous improvements were realized in five areas of technical ability, knowledge management, process and system,
Product realization process control, organization and manpower, and IT.
2、Rapid increase of product market competence
Changan focused on establishing the five important technical tags “Fashion, safety, intelligence, energy saving and
environmental protection”, and acquired the leading position in styling , impact safety , NVH in China, close to the technology level
of the mainstream joint venture,and a faster upgrade in terms of electronic and electrical appliances, testing and verification, and
internal and external decoration technology. Changan accelerated the transformation from the traditional car manufacturer to the
smart car manufacturer, and drew up "654" intelligent strategy to build six system platforms ,five core technologies, and achieve the
car from single intelligence to fully automatic driving step by step in four stages. Changan as the only Chinese brand joined the
highest level of the United States Smart car alliance —MTC. Changan used the electric drive as the main target, developed the two
technology platforms of plug-in hybrid and pure electrivity, built the new energy vehicles with "energy saving, environmental
protection, science and technology intelligence" to ensure the goal of "518" performance in new energy domain by 2025.
3、The ability to further enhance the brand
The quality of Changan products fully met the level of joint venture, and even partially surpassed the average level of joint
venture. Monthly sales of CS75、CS35, EADO series and Yue Xiang series have exceeded 10 thousand units and become star
products in the subdivision markets. Changan EADO won the CATARC research title of 2015 China automobile industry as the most
10
potential Chinese models. Changan Yue Xiang V7 won the “Annual innovative product” award of 2015 China automobile media
think tank Innovation Forum. In 2015, the national identification technology center of NDRC announced the results of the evaluation,
Changan ranked No.1 in automobile industry and No.4 in China with 93.6 points, ranking first for consecutive 8 years in China's
automotive industry in terms of R & D strength.
11
Chapter 4 Management Discussion and Analysis
I. Overview
In 2015, Changan actively responded to the slowdown of macroeconomic growth and the pressure of competition in the car
market, and delt with the difficulties to build the enterprise image, grasp the quality of the product and technical innovation,
constantly enhance the systematic ability and lean manufacturing, and improve the customer service quality significantly. The
business operation of Changan constantly improved to ensure the solid industrial position. Changan achieved a substantial increase in
sales revenue, and maintained a higher profit growth than the revenue growth, the revenue growth higher than the sales growth.
Throughout the year, the company, its affiliated joint enterprises and the associated enterprises produced 2.781 million vehicles
and sold 2.777 million vehicles, increasing respectively by 5.86% and 9.14% on a year-on-year basis with the market share of
11.30%, up by 0.46%. Changan independent brand cars were sold out 1.007 million, up by 30.9% on a year-on-year basis, ranking
No.1 in China's automobile market. Changan became the first Chinese brand passenger cars with the annual sales over 1 million and
achieved the above goal within in the shortest time as the Chinese enterprise. “The leading status among Chinese automobile brands”
is consolidated further. (Data sources: China Automobile Industry Association Data)
II. Analysis of Main Business
1、Overview
In 2015, the quality of the Company’s operationg was improving and the ability of cash flow creation was enhancing, the
Company completed the business indicators decided at the beginning of the reporting period by the board of directors well, the total
sales volume was 2.777 million, which completed 95.76% of the planed business indicators；the sales revenue was 225.608 Billion
Yuan(including 100% income from joint ventures), which completed 90.24% of the planed business indicators, and the consolidated
statements revenue was 66.772 Billion Yuan, which completed 113.17% of the annual operating target.
2、Income and cost
（1）Composition of the operating revenue
Unit :Yuan
2015 2014
Increase/decrease
Share of Share of
on a year-on-year
Sum operating Sum operating
basis (%)
income（%） income(%)
operating revenue 66,771,580,528 100.00% 52,913,332,101 100.00% 26.19%
Industry
Automobile 66,771,580,528 100.00% 52,913,332,101 100.00% 26.19%
Products
Vehicles 66,522,990,662 99.63% 52,702,266,464 99.60% 26.22%
Outsourcing 248,589,866 0.37% 211,065,637 0.40% 17.78%
12
Area
China 66,211,327,813 99.16% 52,017,576,678 98.31% 27.29%
Overseas 560,252,715 0.84% 895,755,423 1.69% -37.46%
（2）Accounted for more than 10% of the company's operating income or operating profit of more than of
the industry, products or area
√ Applicable □ Not applicable
Unit : Yuan
Increase/decre
Increase/decrease on
ase on a Increase/decrease
Operating Gross a year-on-year basis
Operating Cost year-on-year on a year-on-year
Revenue margin Operating Revenue
basis Operating basis gross margin
(%)
Cost (%)
Industry
Automobile 66,771,580,528 53,406,710,708 20.02% 26.19% 23.44% Up by 1.79%
Products
Vehicles 66,522,990,662 53,212,248,359 20.01% 26.22% 23.53% Up by 1.75%
The company's statistics scope of main business in the reporting period was adjusted, and the company has adjusted its main business
data in the last year according to the scope in the reporting period.
□Applicable √ Not applicable
（3）Is the income from sales in kind greater than the service income
√ Yes □ No
Unit：One set
Increase/decrease on a
Industry Item 2015 2014
year-on-year basis (%)
Sales volume 2,776,514 2,544,055 9.14%
Production volume 2,781,368 2,627,456 5.86%
Automobile Industry
Stock volume 65,690 60,836 7.98%
Market share（%） 11.30% 10.84% Up by 0.46
Note：The above sales volume, production volume and stock volme are consisitent with the date from the Company and its
subsidiaries and JVs. The analysis over market share is based on the data from China Automobile Industry Association.
Notes to the year-on-year change of the relevant data by over 30%
□Applicable √ Not applicable
13
（4）The company has signed a major sales contract as of the time of the fulfillment of this report
□Applicable √ Not applicable
（5）Cost
Unit: Ten Thousand Yuan
2015 2014
Increase/decrease
Industry Ratio in Ratio in
Item on a year-on-year
classification Amount operation Amount operation
basis (%)
cost (%) cost (%)
Prodcut
5,321,225 99.64% 4,307,697 99.56% 23.53%
Automobile Sale
Production Outsour
19,446 0.36% 18,886 0.44% 2.97%
cing
Total 5,340,671 100% 4,326,583 100% 23.44%
（6）Notes to the change of the consolidated scope in the reporting year
□ Applicable √ Not applicable
（7）Significant change in or adjustment of the business, products or services in the reporting period:
□ Applicable √ Not applicable
（8）Main Customers and principal suppliers
Main Customers
Total sales amount to top 5 customers (RMB) 6,863,714,888.47
Proportion of sales to top 5 customers in the annual sales (%) 10.28%
Top 5 customers
Unit:Yuan
Serial No. company Sales value proportion in total sales（%）
1 First 1,675,219,743.54 2.51%
2 Second 1,540,894,512.28 2.31%
3 Third 1,345,440,671.53 2.01%
4 Fourth 1,340,175,828.67 2.01%
5 Fifth 961,984,132.45 1.44%
total 6,863,714,888.47 10.28%
Principal suppliers
Total purchase amount to top 5 suppliers (RMB) 6,579,463,590.29
14
Proportion of purchase to top 5 suppliers in the annual
13.34%
purchase (%)
Top 5 suppliers
Unit:Yuan
Serial No. Company name Purchase value Proportion in the total purchase(%)
1 First 2,029,948,567.23 4.12%
2 Second 1,896,913,613.67 3.85%
3 Third 981,608,165.56 1.98%
4 Fourth 872,386,203.06 1.77%
5 Fifth 798,607,040.77 1.62%
Total 6,579,463,590.29 13.34%
3、Expenses
Unit: Ten Thousand Yuan
Item 2015 2014 increase/decrease
Business tax and surcharges 294,158 206,434 42.49%
Selling expenses 495,452 435,717 13.71%
General & Administration expensees 489,921 374,191 30.93%
Financial expenses -15,081 6,607 -328.26%
Income tax expense 8,933 2,085 328.44%
During the reporting period, the increase of business tax and surcharges was due to the increase of consumption tax resulting
from the growth of sales and the increased portion of cars charged with higher tax rate; the increase of selling expenses was due to
the growth of sales; the increase of administration expenses was due to the increase of labor charges and travel expenses resulting
from the expansion of business scope; the big decrease of financial expenses was due to the increase of bank deposits and the
decrease of loans in the reporting period; the big increase of corporate income tax was due to the increase of total net profits
excluding the investment gains.
4、Research and Development Expenditure
√Applicable □ Not applicable
In 2015, Changan Automobile implemented the R&D activities of new products orderly, continuously upgraded product quality,
benefits and competitiveness in the respective segments. New products, such as Eado pure electric model, CS75 four-wheel drive,
Engine H16EB and EA15-AA, Alsvin V7-Russia, Eado –Iran, CS35-gulf, CS75-Chile, were successfully put into production and
launched into the markets. Changan tightly held the leading strategy of technology, mainly built the technical lables of “Fashion,
Smart, Green”and continuously promote the R&D competencies, obtain the breakthrough on high-energy density cell integration
technology, the extension range of the vehicle reached 200 km under comprehensive working conditions; active safety tech of ACC
and AEB was applied on Reaton-16, CS75-17; 15 items were defined as the features of the performance family and applied on the
15
generation 3; master the lightweight tech of high-strength steel hot stamp, steel-substitute plastic, the components of doorsill roll-in
reinforcement and thermal forming lower reinforcement of B pillar were successfully applied on CS15, with the reduction of weight
by 14.8kg, and made substantial breakthrough on lightweight tech industrialization.
R&D investment Table
2015 2014 variance ratio
Labor Number 10,918 9,053 20.60%
Proportion of labor in the Company 11.83% 11.29% 0.54%
Investment value(100 million yuan) 25.63 20.12 27.39%
Proportion of investment in the
3.84% 3.80% 0.04%
revenue
Capitalization(100 million yuan) 6.49 6.10 6.39%
Proportion of capitalization in
25.32% 30.32% -5%
R&D investment
Significant Change of the proportion of R&D investment in the revenue
□Applicable √Not applicable
Significant change of the proportion of capitalization in the R&D investment
□Applicable √Not applicable
Patents in the recent two years
√Applicable □Not applicable
Cumulatively obtained at the end of
Applied Obtained
reporting period
Patent for invention 455 139 508
Utility model 533 556 2,605
Appearance design 194 169 2,474
Changes of tech team or
key tech persons in the No significant change
reporting period
Whether the hi-tech
enterprise accredited by
Yes
National Technology
Ministry
5、Cash Flow
Unit: Ten Thousand Yuan
Item 2015 2014 Increase/decrease
net cash flows from operating activities 541,489 377,992 43.25%
16
net cash flows from investing activities 426,776 521,958 -18.24%
net cash flows from financing activity -131,946 -357,799 63.12%
Net increase in cash and cash equivalents 836,307 541,991 54.30%
Cash and cash equivalents at end of year 1,772,592 936,285 89.32%
Notes to the year-on-year change of the relevant data by over 30%
√Applicable □ Not applicable
In 2015, the net cash flow generated from operating activities was 5.415 Billion Yuan, a year-on-year increase of 1.635 Billion Yuan,
mainly resulting from the increase of production and sales volume; the outflow of the net cash flow generated from financing
activities was 1.319 Billion Yuan, a year-on-year decrease of 2.259 Billion Yuan, mainly resulting from the big decrease of the
repayment amount of loans in 2015.
Notes to the significant difference between cash flow from operating activities and net profit in the reporting year
√Applicable □ Not applicable
As for the significant difference between cash flow from operating activities and net profit in the reporting period, refer to the 56th
item “Supplemenmtary Information of the Cash Flow Statement” in the Financial Statements Note 5.
III. Analysis of non principal business
□ Applicable √Not applicable
IV. Assets and liability
1. The significant changes of the assets
Unit: Ten Thousand Yuan
Dec.31,2015
Dec.31,2014
Increase/d
Ratio in YoY change
Item Ratio in ecrease instructions
total （%）
Amount Amount total assets (%)
assets
（%）
（%）
Mainly resulting from the better
Monetary Group operating performance, the
1,803,510.97 20.17% 969,308.35 13.91% 6.26% 86.06%
capital increase of Changan Ford profit
and the cash dividends in the
reporting period.
Accounts
87,547.96 0.98% 75,887.62 1.09% -0.11% 15.37%
receivable
Inventories 812,907.51 9.09% 657,218.65 9.43% -0.34% 23.69%
Mainly resulting from the increase
Long-term
of Joint Ventures’ profits and
equity 1,490,650.04 16.67% 1,262,398.96 18.12% -1.45% 18.08%
Changan Ford’s dividends in the
investments
reporting period.
17
Intangible
284,333.17 3.18% 287,896.52 4.13% -0.95% -1.24%
assets
Mainly resulting from the increase
Development
109,346.24 1.22% 62,784.55 0.90% 0.32% 74.16% of Group’s sales and R&D
expenditure
activities in the reporting period.
A few number of new fixed assets
Fixed assets 1,391,023.75 15.56% 1,456,557.98 20.90% -5.34% -4.50% added and the depreciation of fixed
assets in the reporting period
The The increase of constructions
Construction in progress, and the decrease of
306,387.40 3.43% 127,399.70 1.83% 1.60% 140.49%
in progress completed and transfermed fixed
assets
Notes
2,268,309.62 25.37% 1,778,016.17 25.51% -0.14% 27.58% The increase of Group’s sales.
receivable
The increase of Group’s sales,
Other
100,148.52 1.12% 26,045.73 0.37% 0.75% 284.51% energy saving huimin subsidies
receivable
and new energy car incentives.
2、The significant changes of the liability
Unit: Ten Thousand Yuan
Dec.31,2015 Dec.31,2014
Ratio in total Ratio in total Increase/de YoY
Item Instructions
Amount assets Amount assets crease (%) change
(%) (%)
Short-term Mainly resulting from the
5,000.00 0.06% 9,000.00 0.13% -0.07% -44.44%
loans repayment of loans
Payroll Mainly resulting from the increase
149,961.39 1.68% 102,236.97 1.47% 0.21% 46.68%
payable of human costs and expansion of
workforce.
Mainly resulting from the increase
Notes payable 1,866,290.06 20.87% 1,310,862.34 18.81% 2.06% 42.37% of purchase due to the increase of
Group’s sales
Accounts
1,497,382.66 16.75% 1,303,879.37 18.71% -1.96% 14.84%
payable
Mainly resulting from the increase
of income tax payable due to the
Tax payable 35,674.92 0.40% 3,602.40 0.05% 0.35% 890.31%
increase of Group’s sales and
profits.
18
Advance
732,661.26 8.19% 580,271.73 8.33% -0.14% 26.26%
receipt
Mainly resulting from the increase
of accrued warranty expenses in
Accrued
164,167.62 1.84% 122,111.49 1.75% 0.09% 34.44% accordance with the standards of
liability
third party due to the increase of
Group’s sales.
Mainly resulting from the increase
Other current of accrued sales compensation and
393,089.90 4.40% 292,189.90 4.19% 0.21% 34.53%
liabilities related freight due to the increase
of Group’s sales.
3、Assets and liabilities measured by fair value
Unit: Ten Thousand Yuan
Gain/loss on fair Cumulative fair Impairment
Amount at year
value change in value change provisions in the Amount at year end
Item beginning
the reporting recorded into equity reporting period
period
Financial assets
Financial assets available
39,564.75 -4,419.75 32,857.00 - 35,145.00
for sales
Subtotal of financial assets 39,564.75 -4,419.75 32,857.00 - 35,145.00
Others
Total 39,564.75 -4,419.75 32,857.00 - 35,145.00
Financial liabilities
Whether the measurement attributes of main assets in the reporting period have significantly changed
□Yes √No
V. Analysis of Investment
1、General information
√ Applicable □ Not applicable
External investment
Investment Amount in 2015（RMB） Investment Amount in 2014（RMB） Variance rate
19
1,185,552,000.00 439,980,000.00 169.46%
Particulars of investees
Companies Principal business Proportion in the investees’ equity (%)
Deposit, loan margin, interbank borrowing and
Chongqing Automobile Finance Co.,Ltd. 35%
etc.
United Prosperity (Shenzhen)Investment Supplier chain management, home & abroad
5%
Co., Ltd trade and consultation services and etc.
2、Major equity investment in the reporting period
Unit: Ten Thhousand Yuan
Disclo
Share- Invest- progress on any Disclosure
Company Principal Investment Capital -sure
amount holdin partner ment book-closing litigat- index(in
name business mode source date(in
g ratio period date ions case)
case)
"on the
China acquisition
Changan of United
Supplier Automobile Paid Prosperity
chain Group 30,552,000 (Shenzhen)
manage- Co.,Ltd., Yuan, United Investment
United ment, South Prosperity Co., Ltd
Indefi-
Prosperity home & Industries (Shenzhen) partial
Newly its own nite Jan.,10
(Shenzhen) abroad 3055.2 5% Assets Investment equity
established capital durati- No ,2015
Investment trade Management Co., Ltd runs transactions
on
Co., Ltd and Co.,Ltd., officially after associated
consulta United the with
-tion Prosperity preparation progress
services (Hongkong) stage. announceme
and etc. Investment nt" (Bulletin
Co., Ltd No.
2015-02)
China South Paid 1.155 on the
Industries Billion Yuan, acquisition
Deposit,
Group, China Chongqing of
loan
South Automobile Chongqing
Chongqing margin,
Complemen Industries Indefi- FinanceCo.,Lt Automobile
Automobile inter- Its own Mar.7,
-tary 115,500 35% Group Finance nite d completed Financial
FinanceCo., bank capital No 2015
investment Company,Qin durati- the business Co.,Ltd
Ltd. borrow-
gling Motors on change partial
ing and
(Group)Co., registration equity
etc.
Ltd., and formality transactions
Chongqing of the equity associated
20
Yufu assets transaction with
management progress
group co., announcem-
Ltd., ent"
Chongqing (Bulletin
Rural No.
Commercial 2015-12)
Bank Co., Ltd.
118,555.
Total -- -- -- -- -- -- -- -- -- --
2
3、Major non-equity investment in the reporting period
Please refer to Notes V to Financial Statement Item 14” Construction in progress”
4、Investment of Financial Assets
（1） Equity-holdings in financial enterprises
□ Applicable √Not applicable
Opening
Initial Opening Closing Closing Gain/loss in
equity Closing
Company Company investment equity equity equity the reporting Accounting Equity
holding book value
name variety cost (RMB Holdings holdings Holdings period (RMB title source
ratio (RMB Yuan)
Yuan) (share) (share) （%） Yuan)
(%)
Tradable
Southwest Securities Initial
50,000,000 17,750,000 0.76% 35,500,000 0.76% 351,450,000 5,325,000 financial
Securities Firm investment
assets
（2） Derivative Investments
□ Applicable √Not applicable
5、Use of raised funds
□ Applicable √Not applicable
There’s no use of raised funds during the reporting period.
VI. Selling of major assets and major equity
1、Selling of major assets
□Applicable √Not applicable
There is no selling of major assets.
21
2、Selling of Equity
□Applicable √Not applicable
There is no selling of major equity.
VII. Analysis of main holding companies and equity companies
√ Applicable □Not applicable
Basic information of main subsidiary companies and shareholding companies which have an impact on
over 10% of net profits
Unit: ten thousand yuan
Main
Registered Equity Net profit
Name Main businesses Total assets operating
held
capital income
Hebei Changan Automobile Co., Ltd. 46,469 94.22% Produce and sell auto and parts 125,399 354,097 1,554
Nanjing Changan Automobile Co., Ltd. 60,181 84.73% Produce and sell auto and parts 103,473 197,301 -24,494
Hefei Changan Automobile Co., Ltd. 77,500 100% Produce and sell auto and parts 119,681 236,622 1,106
Baoding Changan Bus Manufacture Co., Ltd. 3,000 100% Produce and sell auto and parts 312,188 268,296 3,659
Changan Ford Automobile Co., Ltd 24,100 USD 50% Produce and sell auto and parts 5,047,227 11,755,089 1,746,873
Changan Mazda Automobile Co., Ltd 11,097 USD 50% Produce and sell auto and parts 1,231,910 2,035,573 165,111
Changan Ford Mazda Engine Co., Ltd 20,996 USD 50% Produce and sell auto and parts 254,874 314,789 16,580
Chongqing Changan Suzuki Automobile Co.,
19,000 USD 50% Produce and sell auto and parts 721,388 858,669 -39,200
Ltd
Changan PSA Automobiles Co.,Ltd 400,000 50% Produce and sell auto and parts 854,764 369,707 -66,569
JMC Holding Co., Ltd. 200,000 50% Produce and sell auto and parts 890,855 489,086 75,802
Chongqing Changan Auto. sales subsidiary
850 100% Produce and sell auto and parts 18,105 61,853 98
companies
Chongqing Changan Auto. International Sale car export, import and export
1,376 95% 24,837 55,295 -2,868
Service Company agent
Chongqing Changan Automobile Sales Co.,Ltd. 4,850 100% sell auto and parts 12,078 6 63
Chongqing Changan Auto. Customer Service
3,000 100% sell auto and parts 58,719 117,405 12,460
Co., Ltd.
Chongqing Changan New Engergy Automobile
2,900 65% NEV production and sales 20,299 25,007 43
Co., Ltd.
Chongqing Changan Special Automobile Sales Special vehicle and spare parts
500 50% 19,143 28,454 221
Co., Ltd. sales, car maintenance
Subsidiaries acquired and sold in the reporting period
22
□Applicable √Not applicable
Major holding subsidiaries and joint ventures
Unit: ten thousand yuan
Net Asset at the end of Net Asset at the end
Name 2015 of 2014 Change situation（%）
Changan Ford Automobile Co., Ltd. 1,746,873 1,441,286 21.2%
JMC Holding Co., Ltd. 75,802 73,013 3.82%
Changan Mazda Automobile Co., Ltd 165,111 101,461 62.73%
Chongqing Changan Suzuki Automobile
-39,200 -1820.81%
Co.,Ltd. 2,278
CA PSA Automobile Co.,Ltd. -66,569 -32,302 -106.08%
During the reporting period, the sales from Changan Ford and Changan Mazda increased significantly, which led to the huge
rise of the net profit on a y-o-y basis; the sales from Changan Suzuki decreased a lot, which led to the big losses of net profits; the
sales of CAPSA droped and the period charge increased, which led to the bigger losses.
VIII. Structural main business under the company control
□Applicable √Not applicable
IX. The company's future development prospect
1、Industry competition pattern and trend of development
In 2015, under the backdrop of the slowdown of Chinese economy, the growth rate is predicted to drop to 6.9%. Economy
growth changes from the high speed into medium speed; with the continuous optimization and upgrading of economic structure, the
proportion of the third industry in GDP grows rapidly; the adjustment of internal industry structure sped up with the emergence of the
new industry, new business, and new products, and the industry structure went fast toward mid-premium end; the gap of regional
economic growth was huge, and the multispeed growth pattern was arising.
In the aspect of industry trend, the growth sources of China auto market was transferring from first-tier, second-tier cities to
third-tier, fourth-tier and lower tier cities; China was transforming from a big car-making country into a powerful car-making country,
the proportion of China brand cars was going up continuously, adjustment of industry structure was deepening, the market was
playing a bigger role in the allocation of resources, the automakers were facing tougher market competition, and the new energy cars
became a new hot point.
It’s expected in 2016 the growth rate of China auto market is 3.0%, with sales volume of about 25.34 million vehicles.
2、Development strategy of the Company
Seize the strategic opportunity period of next ten years, especially the next 3-5 years, and realize the rapid, healthy and
sustainable development; accelerate the development of Changan brand business, strengthen the construction of brand, products and
technology and system, and build the foundation of the world first-class enterprise; adhere to the development by "two legs", further
strengthen the joint venture cooperation, and innovate the road of joint development; take new energy technology as a breakthrough
point and regard the information technology as an innovative means to speed up the Changan's transference from the traditional
vehicles to the new energy vehicles, and from the traditional manufacturing enterprise to the manufacturing service enterprise; adhere
to the principle of marking Chinese market as the main body and actively exploring the overseas markets; promote the deepening of
the reform vigorously, and continuously enhance the development momentum and vitality.
23
In 2025, Changan estimated to sell 6 million unis including 3.4 million units of Changan brand cars and become a world-class
auto enterprise with first-class technology, first-class quality, first-class brand, and first-class scale.
3、The new energy strategy
In the next decade, Changan will expand the investment, and strongly support in the four aspects of development, technology,
supply, operations, to build new energy products with global excellent sources, taking Chongqing, Beijing R&D base as the centers
and co-ordinating US and UK R&D centers. Changan will take pure electric drive as the main line and simultaneously develop the
technology platform of both plug-in hybrid technology and pure electric technology. By 2020, Changan Automobile will invest 8
billion yuan with the cumulative sales of 400 thousand units; by 2025, Changan will invest 18 billion yuan, introduce 34 models of
new energy cars with the cumulative sales of more than 2 million units, and become an advanced international and domestic
first-class new energy auto companies.
4、Intelligent technology strategy
Changan has published the development plan of automotive intelligent technology strategy, that is, “654” strategies. It means the
construction of 6 platforms, the mastering of 5 core applied technologies, and the industrialization of intelligent tech in four stages.
By the end of 2015, Changan will complete the objectives of the first stage by launching the products with assistant driving functions
into market, and the main technologies include: whole self-adaptive cruise control, semi-automatic parking, intelligent terminal 3.0
and etc; by 2018, Changan will complete the objectives of the second stage, that is, the development and industrialization of
Semi-automatic drive tech, applied techs are, integrated self-adaptive cruise control, automatic parking, intelligent terminal 4.0; by
2020, complete the objectives of the third stage, to be highly automatic drive, the functions include full-automatic drive on motor
way, one-key parking, intelligent terminal 5.0; by 2025, to reach full-automatic drive and industrialization.
5、Business plan
In 2016 the aim of the board of directors of the company is as follows: strive to produce and sell more than RMB2.95 million
cars, and achieve sales revenue over 253 billion yuan (including 100% revenue of JVs) and the consolidated revenue about 72.1
billion yuan. In oder to realize the above objectives, this year the company will work with "focus, responsibility, reform, innovation"
as the key points, concentrate resources, initiatively take responsibilities, innovate management, promote efficiencies, resolutely
fulfill various operating objectives and focus on the following work: Firstly, concentrate resources, resolutely conduct the marketing
and service campaign, build classic products; secondly, adhere to the technology leading principle, accelerate the development
progress of new products;thirdly,deepen the cultivation of customers, rapidly realize Pleasant Experience for customers; fourthly,
continuously upgrade the product quality,enhance the competition capability of products; fifthly, innovate, reduce costs and improve
efficiencies,upgrade operation quality; sixthly, actively and steadly push forward the development of new energy cars; seventhly,
brand promotion, support marketing activities in all-round aspects, upgrade the brand recognition of major products; eighthly, speed
up the adjustment of product structure and production capacity structure; ninthly, firmly execute the overseas strategy, steadly push
forward the overseas business; tenthly, deepen the reform, implement steady development, continuously push forward new products
and new businesses; eleventhly, push forward the scientific development, optimize the system and improve efficiencies; twelfthly,
stick to the confidence of JV development, quickly respond to the market; thirteenthly, promote the organizational efficiency,
stimulate the full potential of all the staff ; fourteenthly, pay highly attention to security and environmental protection, promote the
steady development of the enterprise; fifteenthly, play the advantages of party building and culture building, and complete the patrol
rectification.
6、Capital requirement and use plan of 2016
To realize corporate strategic objectives, the company capital expenditure is expected to be RMB 8.03 billion yuan in 2016, the
investment of fixed assets is RMB 5.504 billion yuan, and the equity investment is RMB 2.499 billion yuan. Investment in fixed
assets is mainly in productivity construction, structure adjustment, research and development ability construction, logistics and
foundation construction, technological transformation on security and environmental protection, new technology on new energy cars,
technological reconstruction,and etc., among which the extension project is RMB3.153 billion yuan, accounting for 57.29%. Equity
investment mainly includes the projects of overseas market expansion, projects of overseas research and development investment and
24
extension projects of new business. The company will, according to the implementation and plan of new projects and related
provisions of the listing rules, perform the approval procedures of the corresponding specific project and publisize them. Capital
requirements will bsae on the project progress situation and the company's business and financing environment. The company will
study and formulate various channels of financing and capital use plans, improve the service efficiency of funds and reduce the
capital cost.
7、Potential risks
In the face of these changes, in order to gain a competitive advantage, the company can only conform to the development trend
of the industry, take the initiative to reform, seize the opportunity, speed up transformation and upgrade the structural adjustment.
In 2016, the company will be faced with the risks from the market, policies and regulations, the development of independent
brands and other risks as follows:
（1）Economic trend: Chinese economy is on the critical period of structural adjustment, in the face of the systematic problems,
such as high inventory, over capacity, high debt leverage ratio, high enterprise cost taxes, short slab of the industry and etc., and the
development of automotive industry is under pressure.
（2）Tougher competition: New models are launched frequently, price war and position war are putting on stage one after
another, and the potential development space is narrowed;
（3）Policy and regulation risk: The tightening of the policies and regulations brings a series of challenges to the technology and
cost.;
（4）The development of independent brands: Lack of the investment in independent brands, and the company is difficult to
explore the high-level market and faces the risk of downward suppression from joint venture;
（5）Overseas development: Uncertainty of overseas development environment and the insufficient support from internal
system will bring great challenges to the breakthrough of the overseas business;
（6）Institutional mechanism risk: The company needs to gradually reform and optimize the mechanism and system, further
improve the efficiency and stimulate the vigors.
X. Statement of such activities as reception, research, communication, interview in the
reporting period
Content discussed and material
Date Location manner Reception object
offered
Meeting Room, On-Site Automotive Industry Development
2015.1.4 Zealustre Assets
Changan Headquarters Survey and Company’s Business
Meeting Room, On-Site Guotai Junan Securities、Mirae Automotive Industry Development
2015.2.4
Changan Headquarters Survey Asset and Company’s Business
CITIC Securities、Huaan
Funds、CITIC-Prudential Fund
Management Co.、Harvest
Meeting Room, On-Site Automotive Industry Development
2015.2.6 Fund、PICC Asset Management
Changan Headquarters Survey and Company’s Business
Co.、Changsheng Fund
Management Co.、Value
Partners
Meeting Room, On-Site Automotive Industry Development
2015.3.6 China Minzu Securities
Changan Headquarters Survey and Company’s Business
25
Meeting Room, On-Site Angel Investment Co.、CITIC Automotive Industry Development
2015.3.13
Changan Headquarters Survey Securities International and Company’s Business
Meeting Room, telephone China Securities Co. Automotive Industry Development
2015.4.17
Changan Headquarters conference and Company’s Business
Meeting Room, On-Site Automotive Industry Development
2015.5.6 Tiger Pacific Capital L.P.
Changan Headquarters Survey and Company’s Business
Meeting Room, On-Site Automotive Industry Development
2015.5.12 Fubon Securities
Changan Headquarters Survey and Company’s Business
China Merchants Securities、
Meeting Room, On-Site Everyoung Capital Automotive Industry Development
2015.5.14
Changan Headquarters Survey Management、Shenzhen and Company’s Business
Tangrong Investment
Meeting Room, On-Site JPMorgan Asset Management、Automotive Industry Development
2015.5.27
Changan Headquarters Survey Credit Suisse and Company’s Business
Meeting Room, On-Site AllianceBernstein (Singapore) Automotive Industry Development
2015.6.1
Changan Headquarters Survey Ltd.、Deutsche Bank and Company’s Business
Meeting Room, On-Site Automotive Industry Development
2015.6.5 Huatai Securities
Changan Headquarters Survey and Company’s Business
Meeting Room, On-Site Citibank、Janchor Partners Automotive Industry Development
2015.6.8
Changan Headquarters Survey Limited and Company’s Business
Meeting Room, On-Site Automotive Industry Development
2015.6.10 Guolian Securities
Changan Headquarters Survey and Company’s Business
Meeting Room, On-Site CI Global Investments Asia Automotive Industry Development
2015.6.11
Changan Headquarters Survey Ltd.、Macquarie Securities and Company’s Business
Meeting Room, On-Site 3W Fund Management、 Automotive Industry Development
2015.6.25
Changan Headquarters Survey Greewoods Asset Management and Company’s Business
Meeting Room, On-Site BNP Paribas Equities(Asia) Automotive Industry Development
2015.6.30
Changan Headquarters Survey Ltd. and Company’s Business
Meeting Room, On-Site Automotive Industry Development
2015.6.30 China Securities Co.
Changan Headquarters Survey and Company’s Business
Meeting Room, On-Site Zheshang Securities、CIB Fund Automotive Industry Development
2015.7.2
Changan Headquarters Survey Management and Company’s Business
Meeting Room, On-Site Automotive Industry Development
2015.7.7 Foresea Life Insurance
Changan Headquarters Survey and Company’s Business
Meeting Room, On-Site BOC International (China) Automotive Industry Development
2015.7.9
Changan Headquarters Survey Limited and Company’s Business
Meeting Room, On-Site Automotive Industry Development
2015.7.22 Hillhouse Capital
Changan Headquarters Survey and Company’s Business
26
Meeting Room, On-Site Longquan Investment Automotive Industry Development
2015.7.24
Changan Headquarters Survey Management and Company’s Business
Meeting Room, On-Site Automotive Industry Development
2015.7.27 HSBC
Changan Headquarters Survey and Company’s Business
Meeting Room, On-Site Automotive Industry Development
2015.7.29 China Securities Co.
Changan Headquarters Survey and Company’s Business
China Securities Co.、Harvest
Fund、UBS SDIC、CCB
Principal Asset Management
Co.、ICBC Credit Suisse Asset
Management、China Life AMP
Asset Management、Sunshine
Asset Management、
Commando Capital、Tianan
Property Insurance、CICC
Fund、Bank Of Beijing
Meeting Room, On-Site Automotive Industry Development
2015.8.31 Scotiabank Asset
Changan Headquarters Survey and Company’s Business
Management、Desheng
Capital、Hope Asset、Hillhouse
Capital、Golden Resources、
Gaohua Securities、Heng An
Standard Life、Tianjun
Investment、China Life
Pension、Anbang Insurance
Group、New China Fund
Management、JT Asset
Management
Meeting Room, On-Site Southwest Securities、China Automotive Industry Development
2015.9.15
Changan Headquarters Survey Southern Asset Management and Company’s Business
Meeting Room, On-Site Founder Securities、Bosera Automotive Industry Development
2015.9.18
Changan Headquarters Survey Funds and Company’s Business
Meeting Room, On-Site Automotive Industry Development
2015.9.28 Red Horse Capital
Changan Headquarters Survey and Company’s Business
Meeting Room, On-Site Automotive Industry Development
2015.11.2 Daewoo Securities Co. Ltd.
Changan Headquarters Survey and Company’s Business
Meeting Room, On-Site Automotive Industry Development
2015.11.6 Fosun Group
Changan Headquarters Survey and Company’s Business
Morgan Stanley、Allianz
Meeting Room, On-Site Global Investors、Amundi Automotive Industry Development
2015.11.18
Changan Headquarters Survey Asset Management、BNP and Company’s Business
Paribas Investment Partners、
27
SFM HK Management
Limited、Hendersonland
Development Company、
Janchor Partners、NORGES
BANK INVESTMENT
MANAGEMENT
China Securities Co., Ltd.、
Meeting Room, On-Site PingAn Asset Management Automotive Industry Development
2015.11.26
Changan Headquarters Survey Co.,Ltd.、Huatai-Pinebridge and Company’s Business
Fund Management Co., Ltd.
Meeting Room, On-Site Zheshang Securities Co., Automotive Industry Development
2015.12.9
Changan Headquarters Survey Ltd. and Company’s Business
Zhongxin Huacheng
Meeting Room, On-Site Investment Co., Ltd.、JIC Automotive Industry Development
2015.12.15
Changan Headquarters Survey Leasing、Guotai Junan and Company’s Business
Securities
28
Chapter 5 Important Matters
Ⅰ.Company common stock profit distribution and capital reserves converting into share
capital
During the reporting period, the common stock profit distribution policy, especially the formulation, implementation or
adjust situation of cash dividend policy.
√ applicable □ not applicable
According to the China Securities Regulatory Commission requirements, in combination with the practical situation of the
company, the Company has rectified the “Articles of Association” and clarified about the distributable profit caliber, dividend
distribution way, principle, form, cash dividend conditions and proportion, stock dividend condition, plans to set up and review
procedures, the implementation, the conditions of distribution policy adjustment, and decision-making procedures, etc, to strengthen
the supervision function of independent directors in the profit distribution plan, policy adjustment, strengthen the guarantee system of
the dividend return for investors. The company’s specific distribution policy: an annual profit of cash dividend payment shall not be
less than 15% of the realized consolidated profit available for distribution, and not less than any on the principle of profit for three
consecutive years, the cumulative distribution of cash the consolidated financial statements for three years to achieve an average
annual allocation of 45% of profits. Company reported profit distribution plan and equity shares in line with the relevant provisions
of the Articles of Association and relevant provisions.
During the reporting period, profit distribution plan and capital reserves converting into share capital plans conforming to the
relevant provisions of the company's articles of association, etc.
Special Statement for Cash Dividend Policy
Whether comply with the company's articles of association or requirements of resolutions of the
Yes
shareholders' general meeting:
Whether the standard of distribution and the proportion is clear: Yes
Whether the related decision-making process and mechanism is complete: Yes
Whether the independent directors play a proper role: Yes
Whether the small and medium-sized shareholders have the chance to fully express their views and
Yes
demands, whether the legitimate rights and interests get fully protected:
Whether cash dividend policy is adjusted or changed, whether the conditions and procedures are
Yes
compliant and transparent:
For the last three years (including the reporting period), the company profit distribution draft or plan, and draft or plan that
the capital reserves converting into share capital
2013 annual profit distribution plan is: Based on the existing total shares of 4,662,886,108, distribute cash of RMB 1 yuan (including
tax) to all the shareholders every 10 shares.
2014 annual profit distribution plan is: Based on the existing total shares of 4,662,886,108 is the base, distribute cash of RMB 2.5
yuan (including tax) to all the shareholders every 10 shares.
2015 annual profit distribution plan is: Based on the existing total shares of 4,662,886,108, distribute cash of RMB 6.4 yuan
(including tax) to all the shareholders every 10 shares.
Share out Cash Bonus Table for last three years
29
Unit: Yuan
Net profit attributable to The net profit ratio (%)
shareholders of listed attributable to shareholders of
Year Cash dividend amount (tax included)
companies in dividends annual listed companies in
consolidated statements consolidated statements
Year 2015 2,984,247,109.12 9,952,714,168.08 29.98%
Year 2014 1,165,721,527.00 7,561,081,585.81 15.42%
Year 2013 466,288,610.80 3,368,591,105.89 13.84%
Ⅱ. Preplan of profit allocation and capital reserve converting into share equity during the
reporting period
For every 10 shares to send red share number (shares) 0
For every 10 shares dividend number (RMB) (tax included) 6.40
The equity base of distribution plan(shares) 4,662,886,108
Total cash dividends (yuan) (tax included) 2,984,247,109.12
Distributable profits (yuan) 26,573,855,747.25
Proportion (%) of cash dividends to total profit distribution 100%
Cash dividend policy：
Others
Detailed statement of profit allocation or plan that capital accumulation fund turn to be added
Audited by Ernst &Young Huaming certified public accountants (special ordinary partnership) , the parent
company annual net profit of 2015 is RMB 9,998,453,821.18 yuan, added with early undistributed profit of
RMB17,744,494,650.50 yuan, minus the allocated cash dividend of RMB1,169,092,724.43 yuan during the reporting
period, profits distributed to shareholders is RMB 26,573,855,747.25 yuan, minus the allocated statutory surplus reserve
of RMB 0.00 yuan this year, so at the end of 2015 the undistributed profits can be used for distribution is RMB
26,573,855,747.25 yuan. At the end of 2015, monetary fund balance of the parent company is RMB 17,223,403,333.90
yuan.
2015 annual profit distribution plan is: Based on the existing total shares of 4,662,886,108, send cash of RMB 6.4
yuan (including tax) to all the shareholders every 10 shares with total cash of RMB 2,985,814,250.42 yuan (including
tax).
III. Commitments Fulfillment Condition
1、Commitments that company, shareholders, actual controllers, the acquirer, directors, supervisors and
senior management personnel or other affiliated parties during the report period fulfilled and by the end of
report period not yet fulfilled.
period
commitments Commitment Commitment content Commitment Performance
for
30
entity time commitm
ent
1.China Changan will abide by the laws, As of the end of the reporting period,
regulations and rules, to perform the legal CCAG, the Company’s shareholder
obligations.2. Held by the original with share selling restrictions, held
non-tradable shares from obtaining the 373,358,342 shares with selling
right to list and trade date, At least 24 restrictions, which will be lifted after
months is not publicly traded or the implementation of management
transferred, The 24 months after the share incentive plan according to the
expiration of the term of, Non-tradable commitments of shareholding
shareholders stock exchange through the reform. During the reporting period,
The commitments China
sale of shares, The sale of shares of the May, 2006 according to CCAG’s document “A
of stock reform Changan
company accounted for the proportion of Supplementary Explanation to
the total number of within 12 months and Participating in the Share Split
not more than five percent, In 24 months Reform of Chongqing Changan
of no more than ten percent,3. Company in Automobile Co., Ltd.”, the Company
the shares changed after the completion of confirmed that it will implement the
According to the national related management share incentive plan
management systems and methods for before June 30, 2016, according to
implementing the management equity relevant national regulations and
incentive plan measures.
In order to avoid and eventually solve the
possible competition or potential
competitors, better maintain the interests
of investors, the company controlling
The Harbin Hf Automobile Industry
shareholder China Changan made the
Other small Group Co at present is still running
China commitment: In two consecutive years September,
shareholders at a loss, The conditions have not yet
Changan profit of Harbin Hf Automobile Industry 2010
commitment reached the profitable for two
Group Co, With the continuous
consecutive years.
development ability and management level
is improved significantly under the
condition of, Proposed that enterprises into
the company.
2、The assets of the company or project include the earnings forecast, and during the report period, the
profit forecast still existed, the company assets or projects achieve the profit forecast and explain the
reasons
□Applicable √non-applicable
IV. The non-operating fund occupation situation of the controlling shareholders and their
affiliates to the listed companies
□Applicable √non-applicable
During the reporting period there does not exist non-operating fund of the listed company occupied by the controlling shareholder
and its affiliated parties.
31
V. The board of directors, supervisors, and independent directors (if applicable) explaining
the "non standard audit report" from the accounting firm during the reporting period
□Applicable √non-applicable
Certified public accountants do not issue "non-standard audit report" for the current report.
VI. Explaining the change with last year's financial statements, accounting policies,
accounting estimate and accounting methods
□Applicable √non-applicable
During the report period, there’s no change of accounting policies, accounting estimate and accounting methods.
VII. During the reporting period, big accounting errors correction and no need for trace
restatement
□Applicable √non-applicable
During the reporting period, no significant accounting errors correction and no need for trace restatement.
VIII. Compared with last year's financial report, the explanation for the scope change of
consolidated report
□Applicable √non-applicable
The company has no change of merging scope during the reporting period.
IX. The appointment, dismissal of the accounting firm
The appointment of the accounting firm
The name of the domestic accounting firm Ernst & Young Hua Ming LLP
Domestic accounting firms payment (ten
350
thousand Yuan)
A continuous years of domestic accounting
9
firms audit service
Domestic accounting firm of Certified Public
Qiao Chun, Ai Wei
Accountants name
Whether the accounting firms to hire
□Applicable √non-applicable
Employ audit of internal control accounting firms, financial adviser or sponsor
√Applicable □non-applicable
Through the approval from the company's fourth extraordinary shareholders' general meeting, the company hired Ernst &Young
Huaming certified public accountants (special ordinary partnership) as the company's 2015 annual internal control audit certified
public accountants. In 2015 the internal control audit fee paid for the internal control auditing services provided by Ernst &Young
Huaming certified public accountants (special ordinary partnership) is RMB 1.2 million yuan.
32
X. After the disclosure of the annual report, the Company faces the suspension and
termination of the listing
□Applicable √ non-applicable
XI. Bankruptcy restructuring related matters
□Applicable √ non-applicable
During the report period no bankruptcy restructuring related matters occur.
XII. Crucial litigation and arbitration events
□Applicable √ non-applicable
During the reporting period the company has no crucial litigation and arbitration events.
XIII．Punishment and rectification
□Applicable √ non-applicable
During the reporting period there’s no punishment and rectification.
XIV.The integrity of company and its controlling shareholder, actual controller
□Applicable √ non-applicable
XV. Company equity incentive plan, the implementation of the employee stock ownership
plan or other staff incentives.
□Applicable √ non-applicable
During the report period the company has no equity incentive plan, the implementation of the employee stock ownership plan or
other staff incentives.
XVI. Significant related party transactions
1、Related transactions related to day-to-day operation
The total amount of 2015 annual daily related transaction is 17.92887 billion yuan. Among them: purchasing goods and services
is 9.63284 billion yuan. Sales goods and services is 7.99463 billion yuan; comprehensive service 290.37 million yuan and rental
11.03 million yuan. Details refer to the notes of financial statements of the financial statements and nine "related party relationships
and transactions".
2、Assets or equity acquisition, sales related transactions
Details refer to annual report of section 5 of the sixteenth item of article 3 of " Related transactions of common investment ".
33
3、Related transactions of common investment
√Applicable □non-applicable
The twenty-sixth session of the sixth board of directors meeting was held on January 9, 2015 to approve the Bill of the
Investment in Fortis (Shenzhen) co., Ltd., and the company planed to invest with self-raised funds by 5% stake. During the reporting
period, the company has completed the approval from the Board of Directors, and Fortis (Shenzhen) co., Ltd. was set up and went
under formal operation. For reference, see the RPT transaction announcement of the company (Bulletin No: 2015-02).
The twenty-ninth session of the sixth board of directors meeting was held on March 6, 2015 to approve the Bill of the
Investment in Chongqing Automobile Finance co., LTD., with 35% shares. During the reporting period, the company has paid the
price of 1.155 billion yuan, and completed the formalities of industrial and commercial registration of change of equity delivery. For
reference, see the RPT transaction announcement of the company ((Bulletin No: 2015-12).
4、Related rights and debt relations
√Applicable □non-applicable
Details refer to the notes nine "related party relationships and transactions" in the financial statement.
Whether there is any non-business related credits and debts
□Applicable √non-applicable
There is no non-operating associated credits and debts during the reporting period.
5、Other significant related transactions
√Applicable □non-applicabl
Related queries in disclosure website of interim report of related transactions
Name of temporary announcement Temporary announcement date Temporary announcement site name
Related-party transactions announcement about taking stake
2015.1.10 http://www.cninfo.com.cn
in United Prosperity (Shenzhen)Investment Co., Ltd
Related-party transactions announcement about taking stake
2015.3.7 http://www.cninfo.com.cn
in Chongqing Automobile Finance Co., LTD.
Related-party transactions announcement about the South
Industry Finance providing financial service for the 2015.4.2 http://www.cninfo.com.cn
company
Related-party transactions announcement about using
United Prosperity (HongKong) Investment Co., Ltd for 2015.4.2 http://www.cninfo.com.cn
trade financing
Related-party transactions announcement about the renewal
of "Daliy Related-party Transaction Framework
2015.4.2 http://www.cninfo.com.cn
Agreement", "Property Lease Framework Agreement "and"
General Service Agreement "
The Estimate of Daily Related-party Transactions http://www.cninfo.com.cn
2015.4.17
Announcement for 2015
About non-public A-share stock issue involving 2015.4.23 http://www.cninfo.com.cn
34
related-party transactions
Announcement about increasing the estimated amount
2015.10.31 http://www.cninfo.com.cn
of 2015 daily related-party transaction
XVII. Major contract and its performance
1、Trusteeship, contracting, leasing matters
（1）Trusteeship
□Applicable √non-applicable
Information about Trusteeship
There is no Trusteeship during during the reporting period.
（2）contracting
□Applicable √non-applicable
Information about contracting
There is no contracting during the reporting period.
（3）Leasing
√Applicable □non-applicable
Information about leasing
Related party rental situation can be found in the note Ten of financial statements 5 (2) related party relationships and transactions.
Projects whose profit and loss to the company during the reporting period is more than 10% of total profits
□Applicable √non-applicable
Projects whose profit and loss to the company during the reporting period can’t be more than 10% of total profits
2、Major guarantee
□Applicable √non-applicable
There’s no major guarantee during the report period.
3、 Entrust others for cash assets management
(1) Entrust financial situation
□Applicable √non-applicable
There’s no entrusting situation during the reporting period.
(2) Entrusted loans situation
□Applicable √non-applicable
35
There’s no entrusted loan during the reporting period.
4、Other major contract
□Applicable √non-applicable
There’s no other major contract during the reporting period.
XVIII. Other important events
√Applicable □non-applicable
The Company shall make a public announcement on March 7, 2015 to apply for stock suspension since March 9, 2015 and
preparing the 2015 annual non-public stock offering. The thirty-third session of the sixth board of directors meeting was held on
April 22, 2015, to approve the non-public company stock and other relevant bills for raising money of 6 billion yuan to the particular
objects; On May 26, 2015, the company approved the above bills on the second extraordinary shareholders' general meeting of 2015.
On June 3, 2015, the company submitted the application documents of the non-public offering to the China securities regulatory
commission. On June 9, 2015, the Company received the notice of application documents about non-public offering accepted by
CSRC (151479). On June 16, 2015, the Company received "The letter on making preparations for examination committee meeting
about related projects". On March 31, 2016, the company held the second session of the seventh the board of director to review and
approve the "Bill about withdrawing the 2015 non-public offering application documents”. For detailed information, please refer to
http://www.cninfo.com.cn for relevant announcements.
XIX. Important matters of company and subsidiary
□Applicable √non-applicable
XX. Social responsibility
√Applicable □non-applicable
The Company 2015 annual social responsibility report is released in electronic form, and can be found on our company website
http://www.changan.com.cn/ or on the website of www.cninfo.com.cn.
XXI. Corporate bonds
Whether there is corporate bonds issued in public and listed on the stock exchange, and not fully paid in the annual report quoted due
day before maturity or due day
√Applicable □non-applicable
1、 Basic information of corporate bonds
Bond
bond balance
bond interes Servicing way
bond name short issue day due day (ten
code t rate
name thousand
yuan)
36
On/up interest day: April 23, 2012.
Payment date: from 2013 to 2017 every year
on April 23 for a draw on the annual payment
date (in case of legal holidays or rest days,
Corporate automatically postponed to the following first
bonds of working day).
Chongqing To honour day: April 23 of 2017 (in case of
12
Changan 11207 legal holidays or rest days, automatically
Changa 2012.04.23 2017.04.23 198,000 5.30%
Automobil 9 postponed to the following first working day).
n debt
e Co., Servicing way: using simple interest rate on a
LTD., yearly basis, regardless of compound interest,
2012 extra interest doesn’t incur form overdue
situation. Due payments once a year,
maturing debt at a time. In the final phase,
interest is paid together with the principal
redemption.
Corporate bonds
listed or trading Listed in Shenzhen Stock Exchange
places
Investors appropriate
For qualified investors
arrangement
According to 2012 company bond rate announcement of Chongqing Changan Automobile Co., LTD., the
current bond rate is 5.30%. Each 1000-yuan face value of bonds entails the interest of RMB 53.00 yuan
During the reporting
(including tax). After the tax collection, the actual distributing interest for the individual and the securities
period, interest
investment fund bond holders is RMB42.40 yuan for each; after the tax collection, the actual distributing
payment situation of
interest of a non-resident enterprise (including QFII, RQFII) is RMB 47.70 yuan for each.
the company bonds
The company in 2015 pays RMB 104.8 million yuan of bond interest; Creditor's rights registration day:
April 22, 2015; Ex-dividend day: April 23, 2015. Payment date: April 23, 2015.
2、 Bond trustee and the credit rating agency information
Bond trustee：
No. 1101, the 11st
Haitong Securities
floor of Taikang
Co., LTD.
International
(hereinafter office Li
Name Building, No. 2 of contact Tel 010-58067801
referred to as the address Shiwen
Wudinghou Street, of
"Haitong
West city district,
securities")
Beijing.
The credit rating agencies which follow and rate the corporate bond during the reporting period
37
No. 2 PICC Building 12 layer, Broadway
Name Joint Credit Rating Co., LTD office address street, Chaoyang District,Beijing
(100022)
3、 The usage of corporate bonds to raise money
The twenty-sixth session of the fifth board of directors meeting held on January 16th, 2012,
and the extraordinary shareholders' general meeting for the first time on Feburary 3rd, 2012,
passed the bill on issuance of company bonds. On March 26, 2012, the company received
the approval of China securities regulatory commission about Chongqing Changan
Automobile co., LTD., a public approval of the issuance of company bonds "(regulatory
The usage and performance of
permission [2012] no. 388), and the company was granted to issue corporate bonds to the
raised funds from Corporate bonds
public with face value less than 1.98 billion yuan.
As of April 26, 2012, the company has completed relevant work of bond issue, raising
money 1.98 billion yuan. The bond is a five-year variety with a fixed interest rate of 5.30%.
The funds after the deduction of distribution costs in this issuance were completely used to
supplement the company's liquidity.
At the end of balance (ten thousand) 0
Raise money for special account
Operate orderly
operation
Whether the usage of the raised
money corresponding to the
Unanimous
purposes of promise, use plans, and
other agreement
4、 Corporate bond rating information
According to the China securities regulatory commission "corporate bond issuance and trading management measure"
(hereinafter referred to as the "management measures"), the listing rules for "corporate bonds"of Shenzhen Stock Exchange and other
regulations, Joint Credit Rating Co., LTD followed the credit rating for the company's issuance of corporate bonds. Joint Credit
Rating Co., LTD issued the analysis report of tracking rating 2012 corporate bonds for Chongqing changan automobile co., ltd. on
June 12, 2015 and maintained the credit rating of "AAA" for Changan Automobile with the outlook of "stable"; At the same time it
maintained "AAA" credit rating" for 12 changan debt. (Detailed information, please refer to http://www.cninfo.com.cn for the 2015
analysis report of tracking rating 2012 corporate bonds for Chongqing changan automobile co.,ltd.).
Joint Credit Rating Co., LTD is expected to issue the 2016 analysis report of tracking rating 2012 corporate bonds for
Chongqing changan automobile co.,ltd. in early June 2016. Detailed information, please refer to http://www.cninfo.com.cn.
5、 Corporate bond credit mechanism, the debt repayment plans and other security measures
√Applicable □non-applicable
(1) The credit mechanism
38
This bond is guaranteed by China changan with full, unconditional, irrevocable and joint liability, and the scope of the
guarantor’s guarantee includes the current debt principal and interest, as well as the penalty due to breach of contract, compensation
for damage, the cost of the creditor's rights and other fees. As for the main financial indicators of the guarantor, please refer to the
chapter "The guarantor’s financial statements during the reporting period.
(2) The repayment plan
①The interest payment
A. Due payments once a year, maturing debt at a time. In the final phase, interest is paid together with the principal redemption.
No interest incurs from each interest payment since payment date. This bond payment date from 2013 to 2017 for every year on April
23 (in case of legal holidays or rest days, automatically postponed to the following first working day, and no additional interest
payments during the postponing period).
B. The bond interest paid by bonds registration institution and related institutions. Specific item of the interest payments will be
released in the designated media by the competent department of media in accordance with the relevant provisions of the state.
C. According to the national tax laws and regulations, investors should pay the relevant taxes and fees generated from the bonds.
②The payment of the principal
A. Debt to the maturity of bonds for the issuance..
B. This bond redemption date for April 23, 2017 (in case of legal holidays or rest days, automatically postponed to the following
first working day, and no additional interest payments during the postponing period).
C. The bond principal paid by bonds registration institution and related institutions. Specific item of the principal payments will
be released in the designated media by the competent department of media in accordance with the relevant provisions of the state.
(3) The debt repayment guarantee measures
In order to fully and effectively safeguard the interests of the bondholders, the company set up a series of work plans for the
timely repayment of the issue bonds with full specified amount at once, including a specific department and personnel, the
arrangement of a sinking fund, the management measures, the organization and coordination, the strengthening of information
disclosure, etc., and the repayment guarantee measures are as follows:
①Develop the bondholder meeting rules
The Company in accordance with the requirements of the "management method" made “The bondholder meeting rules”. “The
bondholder meeting rules” agreed on the scope, procedures and other important issues of bondholders’ rights through bondholders
meeting, to ensure the system arrangement for the timely repayment of the company debt principal and interest.
②Hire a bond trustee
In accordance with the "management measure" regulation, the Company employed Haitong Securities as the trustee of the
current debt and concluded with Haitong Securities on the "bond trustee agreement". During the exsiting period, the Haitong
Securities in accordance with the agreement of the bond trustee agreement was on behalf of the interests of the current bondholders.
The Company, in strict accordance with the provisions of the bond trustee agreement, cooperated with the bond trustee to perform its
duties, and submitted the execution of the promise to the bond trustee on a regular basis, and informed the bond trustee and the
guarantor in the case of default in order to start the corresponding security program in time, or other necessary measures according to
the bond trustee agreement.
③Strict capital management plan
After this bond issuance, according to the situation of the debt structure, the company further enhanced the company's assets and
liabilities management, liquidity management, use management of raised funds and was subject to future debt principal and interest
payable based on the annual and monthly fund use plan, guarantee the capital schedule as planned to conduct the timely and full
repayment of the interest and principal and protect the interests of investors.
④Strict information disclosure
The Company will follow the principle of true, accurate and complete information disclosure, and the company debt paying
39
ability, the usage situation of the raised money and so on will be supervised by bond holders, bond entrusted managers and
shareholders in order to guard against insolvency risk. According to the bond trustee agreement and the relevant provisions of China
securities regulatory commission on information disclosure of important matters, the following matters are included at least: The
difficulty of repaying the maturing debt interest and/or principal; the company guarantees and other important contracts may impact
majorly on the servicing ability; A major loss or substantial losses with more than 10% of the Company's net worth; The decreasing
investment, merger, division, dissolution, filed for bankruptcy and other situations change the subject of the company; A major
arbitration or litigation may heavily influence the company’s servicing ability; the major restructuring of debt may heavily influence
the company servicing ability; the Company changes the guarantee way of related information;The Company or the bond credit
rating encounters a serious adverse change; the change of the bond trustee; the trading of the bonds are suspended; Other significant
matters may affect the interests of the bondholders; Other circumstances stipulated by the China securities regulatory commission.
⑤Other security measures
According to the approval from the twenty-sixth session of the fifth board of directors meeting, and the extraordinary
shareholders' general meeting for the first time in 2012, if the Company estimates the difficulty of repaying the debt principal and
interest on schedule or failed to repay debt principal and interest on schedule, the Company at least takes the following measures: no
distribution of profits to its shareholders; A moratorium on the major foreign investment, mergers and acquisitions, capital
expenditure; and lower the salary/wages and bonuses of directors and senior management personnel; The main responsible person
shall not be transferred.
6、 During the reporting period the bondholder meeting
During the reporting period, the company did not hold bondholders meeting.
7、 During the reporting period the bond trustee perform his duties
According to the China securities regulatory commission "corporate bond issuance and trading management measure"
(hereinafter referred to as the "management measures"), the listing rules for "corporate bonds"of Shenzhen Stock Exchange and other
regulations, Haitong Securities issued “Trustee transaction report Chongqing Changan Automobile 2012 Corporate Bonds (2014)
“ (Detailed information, please refer to http://www.cninfo.com.cn).
Haitong Securities is expected to issue “Trustee transaction report Chongqing Changan Automobile 2012 Corporate Bonds
(2015)” in the middle of May 2016. (Detailed information, please refer to http://www.cninfo.com.cn.).
8、 During the reporting period, the company's major accounting data and financial indicators for last 2
years
Unit： RMB ten thousand yuan
At the same time rate of
Item 2015 2014
change
EBITDA 1,216,509 960,862 26.61%
The net cash flow generated by
426,776 521,958 -18.24%
investment activities
The net cash flow generated by
-131,946 -357,799 63.12%
financing activities
The final cash and balance of cash 1,772,592 936,285 89.32%
40
equivalents
liquidity ratio 102.68% 91.37% 11.31%
Asset-liability ratio 61.78% 63.47% -1.69%
Quick action ratio 84.80% 72.51% 12.29%
EBITDA total debt ratio 22.02% 21.96% 0.06%
The multiple of interest safeguard 88.14 40.49 117.68%
The multiple of cash interest
48.13 20.80 131.39%
safeguard
EBITDA multiple of interest 105.88 50.89 108.06%
safeguard
loan payment rate 100.00% 100.00% 0.00%
Interest rate of pay 100.00% 100.00% 0.00%
The main reason that the accounting data and financial indicators yoy change more than 30%
√ Applicable □ non-applicable
Item reason for change more than 30%
The net cash flow generated by financing activities In 2015 the debt paid by the company greatly reduced
The final balance of cash and cash equivalents Net cash flow of operating activities increased
The multiple of interest safeguard Net profit increased, and the interest payments reduced
Net cash flow generated by business activities increased, and the
The multiple of cash interest safeguard
interest expense reduced
EBITDA multiple of interest safeguard Net profit increased, and the interest payment reduced
9、 Property rights limits by the end of report period
Unit：Yuan
book value at the end of this
Item Limited Reason
year
Monetary fund 309,188,332.99 Used to open the acceptance deposit
Accounts receivable pledge for short-term borrowing
Accounts receivable 459,208,818.75
from the South Industry Group
Notes receivable 140,256,135.43 Notes receivable pledge to issue notes payable
Buildings as collateral for short-term borrowing from the
Fixed assets 28,828,344.87
South Industry Group
The land use right mortgage for short-term borrowing
Intangible assets 5,394,177.78
from the South Industry Group
41
Total 942,875,809.82
10、During the report period interest payment for other bonds and debt financing tool
□Applicable √non-applicable
11、During the report period obtain bank credit, its use situation and repayment of bank loans
At the end of 2015, the company got the bank credit amount of RMB 28 billion yuan. Until December 31 of 2015, the actual use
of credit is 20.3 billion yuan; in 2015 the Company repaid all bank loans on time with no late repayment.
12、During the reporting period the situation of performing the related agreement or commitment in the
corporate bond prospectus
On April 23, 2015 the company paid the interest bonds of “12 Changan Debt" from April 23, 2014 to April 22, 2015 (details
refer to 2012 corporate bonds 2015 interest-payment annuouncement by the company on April 17, 2015 on the webnsite
http://www.cninfo.com.cn ).
13、Major events occurring in the period of report
□Applicable √non-applicable
14、Whether there is a guarantor corporate bonds
√Applicable □non-applicable
The guarantor of the corporate bond is a legal person or other organizations
√Applicable □non-applicable
Whether to disclose the guarantor’s financial statements during the reporting period, including the balance sheet, income statement,
the cash flow statement, statement of changes in owner's equity (shareholders' equity) and the notes to financial statements.
√Applicable □non-applicable
15、The guarantor financial statements during the reporting period
Content can be found in relevant announcements on April 19, 2016,and published on the website of network
(www.cninfo.com.cn).
42
Chapter 6 Changes in the shareholding of the company and
shareholders
I. Change in shareholdings
1. Change in shareholdings
Unit: One share
Balance before current
Addition and deduction（+，-） during change after current change
change
Additi Stock Providen
Stock
Quantity Ratio(%) onal divide t fund Total Quantity Ratio(%)
dividend.
issued nd. transfer.
Non-circulated shares 373,381,553 8.01% -4,311 -4,311 373,377,242 8.01%
1、State-owned legal
373,358,342 8.01% 373,358,342 8.01%
person shares
2、Senior management
23,211 0% -4,311 -4,311 18,900 0%
personnel shares
Circulated shares 4,289,504,555 91.99% 4,311 4,311 4,289,508,866 91.99%
1、Domestic listed
3,387,518,413 72.65% 4,311 4,311 3,387,522,724 72.65%
RMB shares
2、Domestic listed
901,986,142 19.34% 901,986,142 19.34%
foreign shares
Total shares 4,662,886,108 100% 4,662,886,108 100%
The reason of shareholding change
□Available √Non available
Approval of changes in the shareholding of the company
□Available √Non available
The transfer of shares to change
□Available √Non available
The effect of change of the shares on the recent year and the latest period of basic earnings per share and the diluted
earnings per share., net assets per share and other financial indicators attributable to shareholders of ordinary shares of
the company.
□Available √Non available
Other necessary contents or the disclosure information required by the securities regulatory
□Available √Non available
43
2. Change in Non-circulated shares
√ Available □Non available
Unit：one share
Non-circulated Non-circulated
Name of Decrease during the Increase during the Reason for Date for the
shares held at the shares held at the
shareholders reporting period reporting period non-circulated shares circulated shares
year-begining year-end
China Changan Stock reform
373,358,342 0 0 373,358,342 2016-6-30
Automobile Co., Ltd. commitment
4,311 5,749 1,438 0 Mangement shares 2015-9-30
Ren Qiang
6 months after the
Zhu Huarong 18,900 0 0 18,900 Mangement shares
retirement
Total 373,381,553 5,749 1,438 373,377,242 -- --
Ⅱ. Issuing and Listing of Shares coupons
1. By the end of report period securities issuance in the late three years
□ Available √ Non available
2. Explain the changes in total shares and shareholders structure , the company assets and liabilities
structure
□ Available √ Non available
3. Existing internal staff shares
□ Available √ Non available
III. Shareholders and actual controllers situation
1、 The number of shareholders of the company and the stock
Unit: one share
During the report period, the total number of shareholders 149,075. A share holders:130,127. B share sholders: 18,948
One month before the end of the disclosure of the annual
157,575. A share sholders: 138,119. B share holders: 19,456
report of the total number of shareholders
Holding more than 5% of the shareholders, or top 10 shareholders situation
increases and Pledged/ Frozen cases
Nature of Percentage of Shares held at the Non-circulated Circulated shares
Name of shareholders decreases
Shareholders total shares year-end shares held at held at the Share status amount
during the
44
（%） report period the year-end year-end
State-owned
China Changan Automobile No pledge or
legal person 39.11% 1,823,595,216 - 373,358,342 1,450,236,874
Co., Ltd. freeze
shares
domestic
China securities finance Co, No pledge or
general legal 2.99% 139,422,848 139,422,848
Ltd freeze
person shares
domestic
Central Huijin Investment No pledge or
general legal 1.19% 55,393,100 55,393,100
Ltd. freeze
person shares
United Prosperity foreign legal No pledge or
0.97% 45,195,100 -
Investment Co., Limited person shares freeze
foreign legal No pledge or
GIC PRIVATE LIMITED 0.96% 44,547,051 27,926,546
person shares freeze
HTHK-MANULIFE CHINA foreign legal No pledge or
0.74% 34,519,781 -3,992,673
VALUE FUND person shares freeze
fund,
National Social Security finance No pledge or
0.64% 29,999,873 -30,014,451
Fund- Portfolio 102 products, freeze
etc.
Banque Nationale de Paris, foreign legal No pledge or
0.54% 25,005,001 22,751,151
free cash person shares freeze
MANULIFE GLOBAL foreign legal No pledge or
0.53% 24,656,490 -3,953,300
FUND person shares freeze
Northeast Securities Co.
domestic
Ltd.- customer guarantee of No pledge or
general legal 0.51% 23,716,045 23,716,045
securities credit transactions freeze
person shares
security account
Among the top 10 shareholders, China Changan Automobile Group Co., Ltd., the controlling shareholder, and
Explanation on the relationship and the action
its wholly owned subsidiary United Prosperity (Hong Kong) Investment Co., Limited. belong to the concerted
alike of above shareholders
actor regulated by “Disclosure Administration of Shares Change Information of The Listed Company”.
The ten largest circulated shareholders
Type of shares
Names of shareholders Shares at the year end
type amount
China Changan Automobile Co., Ltd. 1,450,236,874 RMB ordinary shares 1,450,236,874
China securities finance Co, Ltd 139,422,848 RMB ordinary shares 139,422,848
Central Huijin Investment Ltd. 55,393,100 RMB ordinary shares 55,393,100
Domestic listed
United Prosperity Investment Co., Limited 45,195,100 45,195,100
foreign shares
45
Domestic listed
GIC PRIVATE LIMITED 44,547,051 44,547,051
foreign shares
Domestic listed
HTHK-MANULIFE CHINA VALUE FUND 34,519,781 34,519,781
foreign shares
National Social Security Fund- Portfolio 102 29,999,873 RMB ordinary shares 29,999,873
Domestic listed
Banque Nationale de Paris, free cash 25,005,001 25,005,001
foreign shares
Domestic listed
MANULIFE GLOBAL FUND 24,656,490 24,656,490
foreign shares
Northeast Securities Co. Ltd.- customer guarantee of
23,716,045 RMB ordinary shares 23,716,045
securities credit transactions security account
Among the top 10 shareholders, China Changan Automobile Group Co., Ltd., the
The top 10 shareholders to sell circulated shares, and the infinite
controlling shareholder, and its wholly owned subsidiaryUnited Prosperity (Hong Kong)
tradable relationship between shareholders and top 10 shareholders
Investment Co., Limited belong to the concerted actor regulated by “Disclosure
or concerted action
Administration of Shares Change Information of The Listed Company”.
Whether the company top 10 shareholders of ordinary shares, and the top 10 circulated shareholders
agreed on the repurchase transactions during the report period
□Available √Non available
Whether the company top 10 shareholders of ordinary shares, and the top 10 circulated shareholders agreed on the repurchase
transactions during the report period
2、 The controlling shareholder of the company.
Nature of the controlling shareholders: the central state-owned
Type of the controlling shareholder：legal person
Legal Date of
Name Organization code Business scope and major products:
/Representative establishment
Design, development, manufacture and sales of
automobile &motorcycle, automobile &motorcycle
engine, automotive and motor cycle components&
parts; sales of optical products, electronic and
CHINA CHANGAN photoelectron products, night-time vision device,
Dec 26th,
AUTOMOBILE Xu Liuping 71093394-8 information and communication equipment;
2005
GROUP CO., LTD technical development, technical transfer, technical
consultation, technical training, and other technical
service relative with the operation mentioned
above; imports and exports; merge and acquisition
and consultation of assets restructuring.
The controlling equity To the reporting period, the holding companies: Harbin Dongan Auto Engine Co., Ltd. (stock code
and equity during the 600178); Hunan Tianyan Machinery Co., Ltd. (stock code 600698).
46
reporting period, the
controlling shareholder
of listed companies to
other domestic and
foreign
During the report period the change of controlling shareholders
□Available √ Non available
No changes in controlling shareholders during the report period
3、 The ultimate controler of the Company
Nature of the controlling shareholders: the central state-owned asset management institution
Type of the controlling shareholders: legal person
Legal Date of Organization
Name Business scope and major products:
/Representative establishment code
investment and management of state-owned assets;
manufacturing of guns and firearms; engineering
China South Industries
Tang Dengjie 29 Jun.,1999 71092492-9 prospecting, designing, construction, contracting,
Group Corp.
construction supervision; equipment installation,
etc
The controlling equity To the reporting period, direct or indirect holding companies: Harbin Dongan Auto Engine Co., Ltd. (stock
and equity during the code 600178); Baoding Tianwei Electric Co., Ltd. (stock code 600550); Jiangling Motors Co., Ltd. (stock
reporting period, the code 000550); Hunan Tianyan Machinery Co., Ltd. (stock code 600698); China Jialing Industrial Co., Ltd.
controlling shareholder (stock code 600877); Chongqing Jianshe motorcycle Co., Ltd. (stock code 200054); Lida Optical Co., Ltd.
of listed companies to (stock code 002189); Zhongyuan Special Steel Co., Ltd. (stock code 002423); Yunnan West Instrument
other domestic and industrial Co., Ltd. (stock code 002265); Chongqing Changan Minsheng logistics Limited (stock code
foreign 8217.HK).
Changing the actual controllers during the report period
□Available √ Non available
Relationship among the Company and its controlling shareholders:
47
SASAC
100%
China South Industries Group Corp.
77%
CHINA CHANGAN AUTOMOBILE GROUP CO., LTD.
100%
United Prosperity (Hong Kong) Investment Co., Ltd.
39.11%
0.97%
Chongqing Changan Automobile Co., Ltd.
Actual control people control the company through trust or other asset management method.
□Available √Non available
4、Other legal shareholders with over 10% holding
□Available √ Non available
5、 Reducing holding-shares of controlling shareholders, actuol controllers, restricting parties, and other
promised parties
√Available □ Non available
CHINA CHANGAN AUTOMOBILE GROUP CO., LTD promised not to reduce its shares of Changan Automobile Co. Ltd through
secondary market, within 6 months since July 14th, 2015.
48
Chapter7 Information about Directors, Supervisors, Senior
Management and Employees
Ⅰ. Share ownership changes of directors, supervisors and senior management
Shares
ncreased decreased share
held at
share share number
Term Termination beginni
Name Position As state Gender Age Term start date number in number in at the
date ng
this issue this issue end
（stoc
（stock） （stock） （stock）
k）
Xu Liuping Chairman present M 51 2016-03-23 2019-03-23
Zhang
Vice Chairman present M 53 2016-03-23 2019-03-23
Baolin
Zhu Director,
present M 50 2016-03-23 2019-03-23 25,200 - - 25,200
Huarong President
Director,
Zhou secretary of
present M 45 2016-03-23 2019-03-23
Zhiping the party
committee
Tan
Director present M 52 2016-03-23 2019-03-23
Xiaogang
Wang
Director present M 42 2016-03-23 2019-03-23
Xiaoxiang
Director, Vice
President,
Wang Kun present M 40 2016-03-23 2019-03-23
Board Sectary
(acting)
Shuai independent
present M 49 2016-03-23 2019-03-23
Tianlong director
independent
Liu Jipeng present M 59 2016-03-23 2019-03-23
director
independent
Li Xiang present M 34 2016-03-23 2019-03-23
director
Li independent
present M 60 2016-03-23 2019-03-23
Qingwen director
Tan independent present M 45 2016-03-23 2019-03-23
49
Xiaosheng director
independent
Hu Yu present M 43 2016-03-23 2019-03-23
director
independent
Pang Yong present M 46 2016-03-23 2019-03-23
director
Chen independent
present M 70 2016-03-23 2019-03-23
Quanshi director
Chairman of
Xiao Yong the present M 45 2016-03-23 2019-03-23
supervisory
Sun
Supervisor present M 49 2016-03-23 2019-03-23
Dahong
Zhao Sexia Supervisor present M 55 2016-03-23 2019-03-23
Zhang Employee
present M 56 2016-03-23 2019-03-23
Anguo Supervisor
Employee
Luo Yan present F 41 2016-03-23 2019-03-23
Supervisor
Huang
Zhongqian Vice president present M 47 2016-03-23 2019-03-23
g
Luo
Vice president present M 52 2016-03-23 2019-03-23
Minggang
Du Yi Vice president present M 48 2016-03-23 2019-03-23
Gong Bing Vice president present M 46 2016-03-23 2019-03-23
Wang Jun Vice president present M 43 2016-03-23 2019-03-23
Liu Bo Vice president present M 49 2016-03-23 2019-03-23
He
Vice president present M 48 2016-03-23 2019-03-23
Chaobing
Zhang
Vice president present F 50 2016-03-23 2019-03-23
Jingjing
Yuan
Vice president present M 47 2016-03-23 2019-03-23
Mingxue
Li Wei Vice president present M 50 2016-03-23 2019-03-23
Li Jun Board Sectary present F 46 2016-03-23 2019-03-23
Departur
Lian Gang Director M 55 2012-05-24 2016-03-23
e
Zhang Director departure M 50 2015-03-25 2016-03-23
50
Dongjun
Ma Junpo Director departure M 49 2012-05-24 2016-03-23
Director, Vice
Ren Qiang departure M 55 2014-01-20 2015-4-7 5,749 - - 5,749
President
Ouyang Independent departure
M 57 2012-05-24 2016-03-23
Minggao Director
Independent departure
Dong Yang M 59 2012-05-24 2016-03-23
Director
Chen departure
Independent
Zhong M 59 2012-05-24 2016-03-23
Director
Wang Independent departure
M 57 2012-05-24 2016-03-23
Zhixiong Director
Peng Independent departure
M 51 2012-05-24 2016-03-23
Shaobing Director
Chairman of departure
Yang Jian the M 51 2012-05-24 2016-03-23
supervisory
Cai Yong Supervisor departure M 42 2012-05-24 2016-03-23
Xie departure
Supervisor M 45 2013-05-21 2016-03-23
Shikang
Liang departure
Guangzhon Supervisor M 43 2012-05-24 2016-03-23
g
Employee departure
Liu Hong M 46 2012-05-24 2016-03-23
Supervisor
Fan Employee departure
M 47 2013-04-12 2016-03-23
Chaodong Supervisor
Wnag Employee departure
F 45 2012-05-24 2016-03-23
Lijun Supervisor
Total 30,949 - - 30,949
Ⅱ. Personnel Changes of directors,supervisors and senior management
Name Position Type Term Reason
Zhou Zhiping Director be elected 2015-03-25 recruitment for work needs
Zhang Dongjun Director be elected 2015-03-25 recruitment for work needs
51
Ren Qiang Director, Vice President departure 2015-04-07 reason of age
Yuan Mingxue Vice President recuritment 2015-04-07 recruitment for work needs
Li Wei Vice President recuritment 2015-04-07 recruitment for work needs
Ⅲ. Employment
Main working experience of present directors, supervisors and senior managers of the last five years
1、Directors
Mr. Xu Liuping, Board Chairman, born in 1964，researcher-level senior engineer. With a doctor’s degree, He holds General
Manager of the current Chinese South Industry Group, Deputy Secretary Member of the Party Committee of China South Group
Corp, and Chairman and Secretary of the Party Committee of China Changan Automobile Group Co, Ltd. He used to be the Director
of Planning department, Director of Automobile department and Assistant to the General Manager of China South Industries Group
Corp, the Chairman, President and Secretary of the Party Committee of Changan Automobile (Group) Co., Ltd., the Secretary of the
Party Committee of Changan Automobile.
Mr. Zhang Baolin, Vice Chairman, born in 1962. He has obtained a postgraduate degree, a senior economist and senior political
&ideological worker. He currently holds the positions of the assistant to the General Manager of China South Group Corp, President
of China Changan Automobile Co, Ltd and vice chairman of Chongqing Changan Automobile. He used to work as Vice Secretary
and Secretary of the League Committee of the South-west Industries Bureau in China Industries Company, Secretary of the Party
Committee of Chongqing Changfeng Machinery Factory, Senior Deputy General Manager and General Manager of Chengdu
Wanyou Company, Director, Vice President and Deputy General Manager of Changan Automobile (Group) Co., Ltd., Deputy
Executive General Manager of the Company, the vice secretary of the Party Committee of China Changan, president of Chongqing
Changan Automobile.
Mr. Zhu Huarong, Director and President. He was born in 1965, master graduate student, researcher-level senior engineer.
Currently he is vice secretary of party committee of Changan Automobile Group and president of Chongqing Changan Automobile.
He was deputy director of engine research institute of Jiangling Machinery, Factory, vice director of Changan Technology
Department, chief engineer of Changan Automobile Manufacture Factory, president assistant of Changan Automobile (Group) Co.,
Ltd. and director of technical center, director of science and technology committee, vice President and secretary of party committee
of Chongqing Changan Automobile.
Mr. Zhou Zhiping, Director and secretary of party committee. He was born in 1971, the doctor graduate. Currently he is staff
director of China South Industries Group Corp, director and secretary of the Party Committee of Chongqing Changan Automobile.
He was deputy director of Motor sector of development and planning department of China South Industries Group Corp，director of
long-term planning sector of development and planning department of China South Industries Group Corporation, deputy director
and director of capital operation Department of China South Industries Group Corp, the general manager of the southern industrial
asset management Ltd, the staff director of China South Industries Group.
Mr. Tan Xiaogang, Director. He was born in 1963, the master’s degree, researcher-level senior engineer. Currently, he is the
director of Development & Planning Department in China South Industries Group Corp. He used to be the Vice Director, excutive
Vice Director of Workshop No. 343, deputy Secretary of the Yuanling County CPC Committee in Hunan Province, direcotr, excutive
deputy general manager, and general mangaer of Hunan Yunjian Co. Ltd, Chariman, the Secretary of the Party Committee of Hunan
Yujian Group, and vice director of Development & Planning Department of China South Industries Group Corp.
Mr. Wang Xiaoxiang, Director. He was born in 1963, the doctor graduate, senior accountant and certificate public accountant.
Currently, he is the director of the Financial Department of China South Industries Group Corp. He used to be the vice director of
52
Financial Department of China South Industries Group Corp, Vice President in charge of Finance in China South Industries Group
Corp, Vice President of China Changan Automobile Co. Ltd, director, general manager, and deputy Secretary of the Party Committee
in China South Industries Group Corp.
Mr. Wang Kun, Director, Vice President and Board Secretary (acting). He was born in 1975, bachelor’s degree, senior
accountant. Currently, he is the director, Vice President and Board Sectary (acting) of Chongqing Changan Automobile Co, Ltd. He
used to be the director of Capital Operation (Administration division) under Capital Operation Department of China South Industries
Group Corp, vice director of Capital operation Department, and chief accountant of China Changan Automobile Group Co, Ltd.
Mr. Shuai Tianlong, independent director. He was born in 1966, the doctor graduate. Currently, he is the partner of Beijing
Jingtian & Gongcheng Law Firm, and independent director in CR Double-Crane Co, Ltd. He used to be the vice director of Central
Commission for Discipline Inspection and regulations. He has 15 years of professional experience, and his main business areas cover
cooperarion law, securities law, financial law, merger, acquisition and reconstruction, IP protection, litigation and arbitration.
Mr. Liu Jipeng, independent director. He was born in 1956, master degree. Currently, he is the dean, professor, and PhD
supervisor of Captial Finance Institute in China University of Political Science and Law. He has published more than 400 articles on
newspapers and magazines in domestic and abroad, such as People’s Daily and Economic Research Journal. More than 800
interviews reported by domestic and overseas newspaper and magazines. In the last 10 years, he has managed the shareholding
system reform, corporate strategy, acquisition and reorganization, financing scheme design for over 270 companies, such as National
Electricity Company, Aviation Industry Corporation of China, Chinalco, Haier Group, Hainan Airlines, Wanxiang Group, Li-ning
Sproting Goods Co, Tianjin Development Zone Head Office. These cooperations cover more than 20 provinces and cities, including
various industries. He is called “the first person in change-over unit” by media.
Mr. Li Xiang, independent director. He was born in 1981, the director of Autohome, NEXTEV, Chairman and general manager
of Family & Car Co. He has an experience in IT industry for 18 years. Once he leaded his team to expand from IT products to
Automobile industry, and established Autohome.com. Autohome is now the most visited automobile website around the world.
Mr. Li Qingwen, independent director. He was born in 1956, master degree. Now, he is the Chairman of China Energy &
AutoMobile Media Group Ltd, Chairman of China Auto News, and Chairman of China Energy News. He used to be the director and
vice head of Heilongjiang People’s Government, the municipal party secretary of Hailin City of Heilongjiang Province. From 1998 to
now, he has published automotive comments of 120,000 letters altogether, and 50,000 letters regarding media essay. China Auto
News is awarded as “2007 China Top 500 Most Valuable Brand” by World Brand Lab, with market value of 1.021 billion RMB, as
the only one automobile media which entered China Brand Top 500.
Mr. Tan Xiaosheng, independent director, born in 1970, bachelor’s degree. Currently, he is the Vice President and CPO of Qihoo
360. He used to be the engineering technology director of Yahoo China, director of operations in Maisi Belle (Beijing) Information
technology Co. He is skilled in building and management of technical team. Since 2003, he has recruited and cultivated more than
300 univeristy students, whom now wildly spread in Baidu, Tencent, Alibaba, Sina, etc. He is called as “Headmaster Tan” in Internet
Technology Industry.
Mr. Hu Yu, independent director. He was born in 1972, doctor’s degree. Now he is the professor of School of Journalism and
Communication, and director of Research Center of National Image. He used to be the director of Review and Theory Deoartment in
Technology Daily, council member of China National Youth Union, Youth Federation member of Central Government Departments,
vice director of News Center in State-owned Assets Supervision and Administration Commission. He has won Contribution Award of
Strategic Study in National Program for Long-and-Medium-Term Scientific and Technological Development (2006-2020), Excellent
Textbook Award of Common Institutes of higher education of Education Ministry, First Award of Excellent Essay in Academic
Annual Conference of Chinese Society for Science and Technology Journalism.
Mr. Pang Yong, independent director, born in 1969, master’s degree. Currently, he is the chairman and CEO of IDEO, and
adjunct profeesor of Jilin Univeristy. He used to be the manager of Liaoning Industry Group, and dirctor of Raytheon Co. China. “I
Flow Smart Terminal- Smart Decision Management Platform” is under his leading design, and he acquires the copyright from
53
National Copyright Administration; meanwhile, he is the developer of China AD-CAS, Competitiveness Model of Channel System,
and Standardized Database Resources. He is also the Chief Expert in lean marketing of automobile dealers certified by Ministry of
Human Resources and Social Security of the People’s Reupublic of China.
Mr. Chen Quanshi, independent director, born in 1945, bachlor’s degree. Currently, he is the deputy director of Automobile
Research Institute of Tsinghua University, executive director of China Automotive Engineering Institute, advisor in Beijing People’s
Government, member of National Vehicle Committee of Auto Standardzation, National EV Committee of Auto Standardzation, and
leader of general team of Guangdong EV project. He was in charge of the subject “Vehicle Technology Research in Fuel Cell of City
Bus” in National “863” EV project; he won the Second Award in Technological Progress Award of 15 ton 6×6 Desert geophysical
methods of China National Petroleum Corporation (ministrial), rankig No.3 (1996); the Third Award of National Progress Award, in
Comprehensive System Research of EV battery, electric machine, electronic control, vehicle performances, ranking No.3 (1997).
2、Supervisors
Mr. Xiao Yong, Chairman of the Board of Supervisors. He was born in 1971, master’s degree, engineer. Currently, he is the
Audit & Risk Department of China South Industries Group Corp. He used to be the vice director and director of General
Management Office in China South Industries Group Corp, vice director of General Office in China South Industries Group Corp,
vice director of Motocycle Industry Office in China South Industries Group Corp, vice general manager of motocycle business
department of China South Industries Group Corp, vice general manager of Chongqing South Motorcycle Co, and vice director of
Audit & Risk Department in China South Industries Group Corp.
Mr. Sun Dahong, Supervisor. He was born in 1966, master degree, senior economist. Currently, he is the vice director of general
office and chief of Secrets Agency in China South Industries Group Corp. He used to be the vice director of legal division under the
general office in China South Industries Group Corp, vice director then director of Legal Advisor Division in China South Industries
Group Corp, and director of Legal Affairs Division of general office of China South Industries Group Corp.
Mr. Zhao Huixia, Supervisor. He was born in 1960, bachelor degree, senior account. Currently, he is the Assistant President and
general manager of Audit Department (legal affairs) in China Changan Automible Group Co, Ltd. He used be the deputy general
accountant and director of Hafei Automobile Co, vice general mangaer of Harbin Hafei Automobile Industry Group, vice general
manager of Hafei Automobile Co, the Secretary of the Party Committee and Vice President of Hafei Automobile Industry Group,
vice general manager of AVIC Automobile Industry Co., Ltd, Assistant President and general manager of Operations Management
Departement of China Changan Automobile Group Co, Ltd.
Mr. Zhang Anguo, staff supervisor. He was born in 1959, master degree, senior political & ideological worker. Currently, he is
the officer of Management Section under Party organization of Party Work Department. He used to be the chief of quality section of
quality Department, section chief and chief of Labor Union, chief of organization division of Party Work Department, director of
Party Construction division of Party Work Department (Corporate Culture Center).
Ms. Luo Yan, staff supervisor. She was born in 1974, bachelor degree, assistant economist. Currently, she is the chief of salary
& performance section of HR department. She used to be the maintenance electrians, engineering measure person, labor technology
fixed member, schemer in workshop No.232 of No.3 plant, chief of welfare section of Salary Division of HR Department, and chief
of welfare office III.
3、Senior Management other than Directors and Supervisors
Mr. Huang Zhongqiang, vice president, born in 1968, master’s degree in engineering, senior engineer, he used to be the Vice
Director and Director of the General Manager’s Office of CHANGAN AUTOMOBILE (GROUP) CO., LTD., Director of the
Quality Control Department, Assistant to President, and Vice President, Secretary of CPC of Chognqing Changan Suzuki Auto. Co.,
Ltd.
Mr. Luo Minggang, Vice President of the Company and Executive Vice President & Secretary of CPC of Changan Ford
Automobile Co., Ltd., was born in 1963. He has a Master’s Degree in Engineering, is a senior researcher-level engineer. He used to
serve as Vice Director of Workshop No.26, and Director of Technology Department of Jiangling Machinery Plant, Director of No.1
54
Technology Institute of CHANGAN AUTOMOBILE (GROUP) CO., LTD., Director of Engine Technology Department and Vice
Chief Engineer of Automobile Manufacturing Factory, Vice Director of Technical Center, Deputy Manager of Engine Manufacturing
Factory, Deputy Manager and Chief Engineer of Automobile Manufacturing Factory, Vice Director of Changan Automotive
Engineering Institute, the Executive Vice President of CFMA, Assistant to the President, vice President of CHANGAN
AUTOMOBILE (GROUP) CO., LTD.
Mr. Du Yi, Vice President. Born in 1967, master, senior engineer. He used to be the vice president, executive vice president of
Harbin Dongan Automotive Engine Manufacturing Co., Ltd, the vice president of Hafei Automobile Industry Group Co., Ltd. and the
General Manager of the listed company, the Chairman, General Manager, deputy party secretary of Hafei Automobile Industry
Group Co., Ltd.
Mr. Gong Bing, Vice President. Born in 1969, MBA, Senior Economist. He used to be the Chairman, General Manager of
Chongqing Jialing special equipment limited company, Chairman and general manager of China Jialing, vice general manager of
Motorcycle Operation department under China South Industries Group, the general manager of Chongqing South Motorcycle
Limited Liability Company.
Mr. Wang Jun, Vice President. Born in 1967, Master of Engineering, Senior Engineer. He used to be the vice Director, Director
of Scientific Research Management Division under Company Technical Center, the vice director of Automobile Engineering Insitute
and the director of Product Planning Department, the manager of Product Management Division under Changan Automobile Sales
Company, the Manger of Product Planning Division under Marketing Department, the Vice Director, Director of Marketing
Department, the Assistant to the President, Gengeral Manager of Changan Automobile Sales Company.
Mr. Liu Bo, Vice President. Born in 1967, Master of Engineering, Senior Researcher-level Engineer. He used to serve as the
Vice Director of Workshop No.71 of Jiangling Machinery Plant, the Vice Director of Engine Research Division under Company
Technology Department, the Vice Director of the Technical Center, the Vice Director, Excutive vice Director of Automobile
Engineering Institute, Assistant to the President and the Director of Projcet Supervision Office of the Company, the Director of the
Project Adminstration Department.
Mr.He Chaobing,Vice President ,was born in 1967, master, Professor level senior engineer. A former director of Automotive
Engineering Research Institute Vice President and vehicle development four center , Deputy director of commercial vehicle business
management department, President assistant and general manager of the Beijing Changan Automobile Co.Ltd, President assistant
and director of purchase department, President assistant and vice general manager of the commercial vehicle division
Ms Zhang Jingjing, Vice President, General counsel. Born in 1966, bachelor's degree, professor-level and senior engineer. He
used to serve as former deputy chief engineer of the 2nd factory of the Company, vice minister of development and planning
department of the Company, deputy director of Science and Technology Committee of the Company, deputy director of the
administration office, the director of the project department, the minister of the Company's human resources department , the
company CEO assistant and the Minister of Quality Department.
Mr. Yuan Mingxue, vice president. Born in 1968, Master graduate student, senior engineer. A former assistant president of
Changan automobile and Executive Vice President of Jiangling Holdings, the assistant president of Changan automobile and strategic
planning minister, Party branch secretary, director of the capital operation, the assistant president of Changan automobile and general
manager and party secretary of overseas business development department.
Mr. Li Wei, vice president. Born in 1966. Master graduate student, research senior engineer. The former president of the Beijing
Institute, executive vice president, assistant president of Changan automobile and Party committee secretary of Changan Automotive
Engineering Research Institute.
Ms. Li Jun, the Secretary of BOD and the Vice Director of Financial Department, was born in 1969, MBA, senior accountant.
She used to be the Vice Director of Security Investment Office, Director of Capital Operation Office of the Financial Department,
Director of the BOD Office.
Employment in shareholders’ work unit
55
√applied □ not applied
Whether get
Name of shareholders’ Position in shareholders’ work allowance in
Name Term start date Term end date
work unit unit shareholders’ work
unit
chairman, secretary of the party
Xu Liuping China Changan N
committee
Zhang Baolin China Changan director, president Y
Zhu Huarong China Changan vice secretary of party committee N
president assistant of China Changan
Automobile Group Co, Ltd& general
Zhao Huixia China Changan Y
manager of audit department(law
affairs)
Employment in other work unit
√ applied □ not applied
Whether get
Name Name of other work units Position in other work units Term start date Term end date allowance in other
work unit
China South Industries Group
Zhou Zhiping Staff Elected Director N
Corp.
Director of Development&Planning
China South Industries Group
Tan Xiaogang department of China South Industries Y
Corp.
Group Corp.
China South Industries Group Director of Financial Department of
Wang Xiao Xiang Y
Corp. China South Industries Group Corp.
Beijing Jingtian& Gongcheng Partner of Beijing Jingtian&
Shuai Tianlong Y
Law Firm Gongcheng Law Firm
Dean of research institute of China
University of Political Science and
China University of Political
Liu Jipeng Law, professor and PHD tutor. Vice Y
Science and Law
president of China Enterprise Reform
and Development Society
Director of Autohome, Director of
Weilai Automobile Corporation,
Li Xiang Autohome Y
Chairman and general manager of
Car&Home Corporation
Chairman of China Energy&
China Energy& Automobile Media Group, Chairman
Li Qingwen Y
Automobile Media Group of China Auto News Co.,Ltd,
Chairman of China Energy News
56
Co.,Ltd
Vice president of and CPO of Qihu
Tan Xiaosheng Qihu 360 Y
360
Professor of School of Journalism and
Hu Yu Tsinghua University Y
Communication, Tsinghua University
Pang Yong IDEO Chairman and CEO of IDEO Y
Vice Director of Automobile Research
Chen Quanshi Tsinghua University Y
Institute, Tsinghua University
Director of Audit and Risk
Xiao Yong China South Group Corp Y
Department, China South Group Corp
Vice Director of General office and
Sun Dahong China South Group Corp Director of Security Bureau, China Y
South Group Corp
Position in other This table only shows the main office performance and position of directors, independent directors and
work unit supervisors.
Securities regulatory agency’s punishment to the current and former directors, supervisors and senior
management during the reporting period in recent three years.
□applied √not applied
Ⅳ. Remuneration of directors, supervisors and senior management
Payment decision-making process, determination basis, the actual payment of directors, supervisors and senior managers
Decision-making process: except the independent directors, the annual remuneration of directors, supervisors and senior
management' are referring to the wage management regulations and rating standard of Southern Industrial Group. Payment of
company independent directors is prescribed by the board of directors and submitted to the board of directors of the company, and
approved by the shareholders' general meeting.
In accordance with: the senior management evaluation is divided into annual appraisal, mid-term assessment, term-change
assessment and "look back" examination. Annual appraisal is to evaluate the business performance which senior management is in
charge of, and the employee representatives and part of the units give to democratic appraisal or special evaluation on senior
management, the assessment results will feedback to themselves in time, and points out problems existing in their work and relevant
suggestions for improvement, which are to be improved in the coming new year. At the same time the assessment results will be
linked with the annual performance award. Mid-term assessment is mainly to evaluate the business performance which senior
management is in charge of, assessment results are related to the targeted training, position promotion, post communication, etc;
term-change assessment is that the employee representative give democratic evaluation on all the senior management and do special
visit to part of unit, and the assessment results are related to the targeted training, position promotion, post communication training
and post appointment of the senior management; new office head "look back" examination is mainly to look back the adjusted team,
to understand the working status of the new team in time, check the configuration effect of the new group, to promote the new group
into role as soon as possible, reduce the risk of personnel employment.
Actual payments: senior managers pay basic salary monthly, annual performance prize combines annual appraisal status, the rest
delays payment according to the company's business situation. In 2015, the remuneration the directors, supervisors and senior
57
managers receiving from the company is 14.4388 million yuan in total.
Payment of directors, supervisors and senior managers got from the company during the reporting period
Total earning from the
Name Position Gender age status
company(yuan)
Zhu Huarong Director and President M 50 Present 940,250
Director, Secretary of Party Committee,
Zhou Zhiping M 45 Present 485,378
Chairman of Labor Union
Director, Vice President, the Secretary of
M 40 Present 743,340
Wang Kun BOD (replace)
Ouyang Minggao Independent Director M 57 Departure 60,000
Dong Yang Independent Director M 59 Departure 60,000
Chen Zhong Independent Director M 59 Departure 60,000
Wang Zhixiong Independent Director M 57 Departure 60,000
Peng Shaobing Independent Director M 51 Departure 60,000
Cai Yong Supervisor M 42 Departure 522,360
Xie Shikang Supervisor M 45 Departure 515,848
Liang Departure
Supervisor M 43 604,588
Guangzhong
Liu Hong Employee Supervisor M 46 Departure 413,360
Fan Chaodong Employee Supervisor M 47 Departure 417,970
Wang Lijun Employee Supervisor F 45 Departure 600,810
Li Jun the Secretary of BOD F 46 Present 457,328
Huang
Vice President M 47 Present 851,161
Zhongqiang
Ren Qiang Vice President M 55 Departure 801,964
Luo Minggang Vice President M 52 Present 807,718
Du Yi Vice President M 48 Present 743,687
Gong Bing Vice President M 46 Present 905,751
Wang Jun Vice President M 43 Present 745,955
Liu Bo Vice President M 49 Present 903,202
He Chaobing Vice President M 48 Present 740,019
Zhang Jingjing Vice President F 50 Present 642,846
Yuan Mingxue Vice President M 47 Present 645,388
Li Wei Vice President M 50 Present 649,902
In Total -- -- -- -- 14,438,825
58
Stock-ownership incentive awarded to directors, supervisors and senior managers during the reporting period
√ applied □ not applied
Ⅴ. Core technology team or key technical personnel changes during the reporting period (not
the directors, supervisors and senior management)
During the reporting period, the company's core technical team and key technical personnel have remained stable.
Ⅵ. The Employees of the Company
By the end of this year, total headcount of the company was 37,457 (headquarter 24,761), including 22,805 production workers,
7,674 scientific and technological staff, 4,825 managers, 1,283 marketers,153 service staff, and 717 others. Among the total, there
were 136 with doctor degree, 1,528 with master degree, 11,052 with bachelor degree, 6,854 with college education, 15,058 with
secondary technical school and senior high school education, and 2,829 with education low than junior high school.
1. Professional structure chart
The employee's professional
marketers, 1283, 3.4% service staff, 153, 0.4% others, 717, 1.9%
managers, 4825, 12.9%
production workers,
22805, 60.9%
scientific and
technological staff,
7674, 20.5%
2. Education degree chart
The employee's education
59
education low than junior master, 1528, 4.1%
high school, 2829, 7.6%
PHD, 136, 0.4%
bachelor, 11052, 29.5%
secondary technical
school and senior high
school education,
15058, 40.2%
college education, 6854,
18.3%
3. Employees salary policy
Changan Automobile implemented Employees salary policy according to "performance efficiency salary system”,
establishing salary codetermination, normal growth and payment security mechanism. At the same time, "salary special collective
contract" was signed through collective wage negotiation.
4. Training Plan
Changan Automobile made annual training plan, promoted training for all staff and built learning organization by collecting
and analyzing the traning needs of all staff.
5. Company needs to bear the toll cost of 3,325 retired workers.
60
Chapter 8 Corporate Governance
Ⅰ. Basic status of corporate governance
Strictly according to the "company law", "Securities Law" and Chinese SFC requirements of relevant laws
and regulations, the company constantly improved the corporate governance structure, promoted the level of
company’s normal operation. The actual situation of corporate governance met the requirements prescribed by
CSRC normative documents about the listing Corporation governance.
The company has established an effective internal control system over the financial report. According to
company’s operation and management characteristics, the company strictly implemented the "Enterprise
Accounting Standards", improved the basic accounting management, established a sound financial system,
optimized accounting and statements preparation process, strengthened the financial supervision, conducted the
in-depth implementation of financial management, established the management foundation work, accounting and
finance management authorization, the monetary fund management, financing, purchasing and payment, fixed
assets, projects under construction, accounting policy, accounting estimate, consolidated financial statements, cost
management, inventory management, financial analysis and other financial management system to ensure the
quality of accounting information and the safety of the Company property. According to internal control
deficiencies identified standards of the financial report, there is no internal control defects over financial reporting
in the report period. The text of the internal control self-assessment report in 2015 April 17 was published in the
huge influx of information network http://www.cninfo.com.cn.
Whether there are differences between corporate governance and the related requirements of "company
law" and China CSRC.
□yes √no
There is no difference between corporate governance and the related requirements of "company law" and China
CSRC.
Special activities of corporate governance&the establishment and implementation of registration
management system of people who are familiar with insider information
The ninth meeting of the fifth board of directors has examined and approved the "Chongqing Changan
automobile Co., Ltd registration management system of people who familiar with insider information ",
standardized the management of the behavior of people are familiar with insider information. During the report
period, companies strengthened insider information security work, registered the people who familiar with insider
information, maintained information disclosure principle of openness, fairness and impartiality , and earnestly
protected the interests of investors in the performance forecast and regular report disclosure period.
Ⅱ. Independent completion situation in terms of business, personnel, assets,
organization and finance which is relative to the controlling shareholders
The company and the controlling shareholders are fully independent in terms of business, assets, personnel,
organization and finance.
61
Ⅲ. Competition situation
In December 2009, according to the national “Automobile Industry Adjustment and Revitalization Plan”
regarding promoting auto enterprise merger restructuring and further optimization of state-owned economy
strategy layout requirements, the actual controller of the company China South Industries Group Corporation and
China Aviation Industry Group Company proceeded industry restructuring, China Aviation Industry Group
Company transferred by free transfer 100% equity of Jiangxi Changhe Automobile Co., LTD. (hereinafter referred
to as "Changhe Automobile") and 100% stake of Harbin Hafei Automobile Industry Group co., LTD. (hereinafter
referred to as "Haqi group") into the company's controlling shareholder China Changan Automobile Group Co.,
LTD. (hereinafter referred to as "China Changan").This above-mentioned behavior led to competition between the
company and subordinate enterprise of China Changan, the controlling shareholder. To finally solve the possible
competition and better maintain the interests of company’s investors, the company’s controlling shareholder China
Changan commitment:⒈When Jiangxi Changhe Automobile Co., Ltd. and Harbin Hafei Automobile Industry
Group Co., LTD. payoff for successive two years, has sustainable development ability and management level is
improved significantly, it’s proposed to combine two companies into the company. At present China Changan has
not yet have conditions to reach the commitments. In October 28, 2013, the controlling shareholder of Changan
has Chinese transfer Jiangxi Changhe Automobile Co. Ltd. to Jiangxi provincial state owned enterprise assets
(Holdings) Limited, Chinese Changan proposed Jiangxi Changhe Automobile Co. Ltd. injected commitment
matters of the company have been removed. The Harbin Hf Automobile Industry Group Co at present is still at a
loss of status, the conditions have not yet reached the profitable for two consecutive years.
Ⅳ. Annual shareholders meeting and interim shareholders meeting during the
report period
1、Annual shareholders meeting during the report period
Meeting Disclosure
Time Proposal Name Resolution Disclosure Index
Session Time
1、 Work Report of 2014 Annual the Board of Directors
2、 Work Report of 2014 Annual the Board of
Supervisors
3、2014 Annual Report and Abstract http//www.cninfo.com.
4、2014 Annual Financial Final Account Report cn
2014
All the 2014 Annual
Annual 5、2014 Annual Profit Distribution Plan
th
May. 8 , proposals Shareholders Meeting
Sharehold 6、2015 Annual Daily related transactions Forecast May 9th,
2015 have been Resolution
ers 2015
7、2015 Annual Investment Plan approved Announcement(Annou
Meeting
8、2015 Annual Financing Plan ncement Number:
2015-49)
9、Proposal on Authorizing the Investment on Low-risk
Financial Products
10、Proposal on Signing “Financial Services
Agreement” with Ordnance Equipment Group Finance
62
Company
11、Proposal on Renewing Daily Related Transactions
Framework Agreement, Property Rental Framework
Agreement, Comprehensive Service Agreement
12、Proposal on Trade Financing by United Prosperity
Investment Co., Ltd
http//www.cninfo.com.
cn
2015 First
1、Proposal on becoming the shareholder of Chongqing All the 2015 First Interim
Interim th
Automobile Finance Co., Ltd proposals Mar. 26 , Shareholders Meeting
Sharehold Mar. 25th,
2、Proposal on Appointing Zhang Dongjun and Zhou have been 2015 Resolution
ers 2015
Zhiping as the Directors approved Announcement(Annou
Meeting
ncement Number:
2015-18)
1、Proposal on Non-public Offering of Stock Condition
of Changan Automobile
2、Proposal on Non-public Offering of Stock Scheme of
Changan Automobile
3、Proposal on Non-public Offering of Stock Plan of
Changan Automobile
4、Proposal on Analysis Report on Fund-raising
Feasibility by Non-public Offering of Stock
5、Proposal on Siging Non-public Offering of Stock
Subscription Agreement with Effective Attached
Conditions with China Changan Automobile Co., Ltd http//www.cninfo.com.
2015
and other 9 Specific Investors. cn 2015 Second
Second All the
Interim Shareholders
Interim May 26th , 6、Proposal on Related Transactions items involve with proposals May 27th,
Meeting Resolution
Sharehold 2015 Non-public Offering of Stock have been 2015
Announcement(Annou
ers 7、Proposal on the Use of Previous Raised Fund approved
ncement Number:
Meeting
8、Proposal on Shareholders Meeting Authorizing 2015-52)
board of directors to launch the Non-public Offering of
Stock
9、Proposal on Amending Chongqing Changan
Automobile Co., Ltd Fund-raising Management
Procedure
10、Proposal on Amending Articles of Incorporation
11、Proposal on Amending Rules of Procedure of
Shareholders Meeting
12、Proposal on Making Reward to Shareholders Plan in
Next Three Years
63
http//www.cninfo.com.
2015 cn
Third All the 2015 Third Interim
th
Interim Aug. 24 , Proposal on supporting RMB 20 million Yuan to China proposals Shareholders Meeting
Aug. 25th,
Sharehold 2015 Auto Industry Joint Innovation Foundation have been Resolution
2015
ers approved Announcement(Annou
Meeting ncement Number:
2015-67)
http//www.cninfo.com.
1、Proposal on Recruitment of 2015 Annual Financial
2015 cn
Fourth Report Auditor All the 2015 Fourth Interim
th
Interim Nov. 24 , 2、Proposal on Recruitment of 2015 Annual Internal proposals Nov. 25th, Shareholders Meeting
Sharehold 2015 Control Report Auditor have been 2015 Resolution
ers 3、Proposal on Global R&D Center Construction approved Announcement(Annou
Meeting ncement Number:
Project （first phase）
2015-82)
2、Preferred shareholders’ request to hold the interim shareholders meeting with restoration
of voting rights
□Applicable √ Non-applicable
Ⅴ. Independent directors perform their duties during the reporting period.
1、 Independent directors attend board of directors and the shareholders meeting
Independent directors attend board of directors and the shareholders meeting
Times of Times of
Whether absent
Names of attending the attendance
Times of Times of entrust Times of from the meeting
independent board of by
presence attendance absence for successive two
directors directors during communicat
times
the report period ion mode
Ouyang Minggao 14 1 13 0 0 N
Dong Yang 14 1 8 0 5 Y
Chen Zhong 14 1 13 0 0 N
Wang Zhixiong 14 1 13 0 0 N
Peng Shaobing 14 0 4 0 10 Y
Times for independent directors
5
attending the shareholders meeting
The explanation on absence from two consecutive board of directors
64
On July 4, 2015 Mr. Peng Shaobing voluntarily resigned from the position of independent directors. Since the
resignation of Mr. Peng Shaobing will lead to the proportion of the independent director lower than the statutory
requirements, in accordance with the provisions of the CSRC "Guidance on the Establishment of Independent
Director System in the Listing Company” and the "Articles of Association", Mr Peng Shaobing 's resignation
report will be effective after the election of the subsequent independent directors in the general meeting of
shareholders to fill the vacancy.
On July 5, 2014 Mr. Dong Yang voluntarily resigned from the position of independent directors. Since the
resignation of Mr. Dong Yang will lead to the proportion of the independent director lower than the statutory
requirements, in accordance with the provisions of the CSRC "Guidance on the Establishment of Independent
Director System in the Listing Company” and the "Articles of Association", Mr Dong Yang's resignation report
will be effective after the election of the subsequent independent directors in the general meeting of shareholders to
fill the vacancy.
2、Independent directors express disagreement to company related matters.
Whether independent directors express disagreement to company related matters.
□ Yes √ No
Independent directors did not express disagreement to company related matters during the report period.
3、Other explanation on the fulfillment of responsibility of independent directors.
Whether the suggestions of Independent directors are adopted or not
√Yes □No
Explanation on whether the suggestions of Independent directors are adopted or not
During the reporting period, the company adopted the proposals of independent directors on the equity acquisition
and related transactions and other aspects.
Ⅵ. Duty performance of specialized committees of the board of directors during
the report period
Audit committee of board of directors consists of 5 people, 3 of which are independent directors. The
chairman of the committee is Mr. Peng Shaobing, who is an independent director and accounting major. During the
report period, the audit committee held 4 meetings and performed the following duties:
1、Carefully review 2014 annual financial accounting report and 2015 action plan of audit supervision
department compiled by the company, and agree to the above matters;
2、After the Ernst & Young Hua Ming issued 2014 annual audit report, the audit committee reviewed the 2014
annual financial statements (AUDIT) and major adjustments related to accounting firms, concluded the audit work
of the Ernst & Young Hua Ming. The audit committee considered that Ernst & Young Hua Ming had professional
competence, work diligently, maintained their independence in audit, and completed 2014 annual audit task on
time. The audit committee voted and made resolutions on company's annual financial report, and agreed to submit
the 2014 financial report to the board of directors for approval.
3、Review the proposal on Recruitment of 2015 Annual Financial Report Auditor and Recruitment of 2015
Annual Internal Control Report Auditor, and agree to submit the proposal to the board of directors for approval of
continuing to hire Ernst & Young Hua Ming as the company's 2015 annual financial report auditor and 2015
65
Annual internal control report auditor.
4、Carefully review the company's 2015 annual audit plan and related materials, and approve the audit plan
and audit requirements of 2015 annual financial report proposed by the Ernst & Young Hua Ming.
Ⅶ. The work of the board of supervisors
The board of supervisors found whether the company was at risk or not in the supervision during the report
period
□ Yes √ No
The board of supervisors has no disagrement on the supervision during the report period.
Ⅷ. The evaluation and incentive of senior management
1、Evaluation Mechanism
According to the company's performance evaluation management system, the president and other senior
management personnel are evaluated by board of directors. Evaluation is taken regularly and frequently,
qualitatively and quantitatively.
2、Incentive Mechanism
Income of senior management is composed of basic salary and performance salary. Performance salary links
up with performance evaluation.
3、Constraint Mechanism
Company and senior management sign "employment contract", which has corresponding constraints on
behavior, rights, duties, etc of senior management.
Ⅸ. Internal Control
1、Significant Deficiency of Internal Control found during the report period
□ Yes √ No
2、Self-assessment report of internal control
Disclosure date of self-assessment report
Apr. 19th, 2016
of internal control
Disclosure index of self-assessment report
http://www.cninfo.com.cn
of internal control
proportion of tatol asset in the assessment
accounting for the tatal asset in the 100.00%
financial statement
proportion of revenue in the assessment 100.00%
66
accounting for the revenue in the financial
statement
Deficiency Definition Standard
Type Fiancial Report Non Fiancial Report
1. Fraud behavior of the directors, 1. Lack democratic decision-making procedure
superviors and senior management or violation of democratic decision-making
2. The company has corrected the procedure
published financial report, the significant 2. Violate national laws and regulations and get
wrong report due to fraud and mistakes, punished
the significant mistakes in the finiacial 3. Great loss of middle and senior management
qualitative standard report found by certified public and senior technical personnel
accountants, but not found by the 4. Frequent media negative news with a large
company’s internal control range
3. The supervision of audit committee on 5. Signifant business lacks regulation control or
the company’s external financial report and regulation system becomes ineffective
interal control of financial report is not 6. The signifianc deficiencies of internal
effective. control is not corrected
The mistake amount in financial report The mistake amount in financial report should be
quantitative standard
should be within 4% of the total profit within 4% of the total profit
Ⅹ. Internal control audit report
√Applicable □Inapplicable
deliberations in the internal control audit report
The audit opinion of the internal control audit report compiled by Ernst & Young Hua Ming Accounting Firm: Chongqing
Changan Automobile Co., Ltd keeps the effective financial report internal control on significant aspects from Dec.31 st,2015,
according to “Basic Norms of Enterprise Interna Control” and other related regulations.
Disclosure date of audit report of
Apr.19, 2016
internal control
Disclosure index of audit report of Internal control audit report will be published on http://www.cninfo.com.cn on Apr.19,
internal control 2016
type of opinion on internal control audit
standard and unqualified opinion
report
Whether there is huge deficiency in the
No
non-fiancial report
Whether the accounting firm issueed non-standard internal control audit report or not?
□ Yes √ No
Whether the internal control audit report issued by the Accounting Firm agreed with the self-assessment
report of the board of directors or not?
√ Yes □ No
67
Chapter 9 Auditor’s Report
Ernst & Young Hua Ming Shen Zi (2016) No 60662431_D01
To the shareholders of
Chongqing Changan Automobile Company Limited
We have audited the accompanying financial statements of Chongqing Changan
Automobile Company Limited, which comprise the consolidated and the company balance
sheet as at 31 December 2015, and the consolidated and the company income statements,
the statements of changes in equity and the cash flow statements for the year then ended
and notes to the financial statements.
Management’s Responsibility for the Financial Statements
Management of Chongqing Changan Automobile Company Limited is responsible for the
preparation and fair presentation of these financial statements. This responsibility includes:
(1) preparing and fairly presenting the financial statements in accordance with Accounting
Standards for Business Enterprises; (2) designing, implementing and maintaining internal
control as management determines is necessary to enable the preparation of the financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the Chinese Standards on Auditing. Those
standards require that we comply with Code Ethical for Chinese Certified Public
Accountants and plan and perform the audit to obtain a reasonable assurance about
whether these financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers the internal control relevant to the entity’s preparation and fair presentation of
financial statements in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of the accounting
polices used and the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.
68
Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2016) No 60662431_D01
Opinion
In our opinion, the accompanying consolidated and the company financial statements
present fairly, in all material respects, the consolidated and the company’s financial position
of Chongqing Changan Automobile Company Limited as at 31 December 2015, and their
financial performance and cash flows for the year then ended in accordance with the
Accounting Standards for Business Enterprises.
Qiao Chun
Ernst & Young Hua Ming (LLP) Chinese Certified Public Accountant
Ai Wei
Chinese Certified Public Accountant
Beijing, the People’s Republic of China 18 April 2016
69
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET
31 December 2015
(Expressed in Renminbi Yuan)
Notes V 2015 2014
Current assets
Cash 1 18,035,109,674.21 9,693,083,497.78
Notes receivable 2 22,683,096,211.46 17,780,161,662.94
Accounts receivable 3 875,479,556.55 758,876,190.82
Prepayments 4 852,071,794.54 839,752,551.46
Interest receivable 5 15,295,866.67 22,083,194.44
Dividends receivable 6 23,684,883.31 -
Other receivables 7 1,001,485,245.40 260,457,285.50
Inventories 8 8,129,075,131.92 6,572,186,481.51
Other current assets 9 8,909,736.44 3,370,219.83
Total current assets 51,624,208,100.50 35,929,971,084.28
Non-current assets
Available-for-sale financial assets 10 530,811,274.00 544,456,774.00
Long-term equity investments 11 14,906,500,436.49 12,623,989,600.46
Investment property 12 8,009,695.96 9,460,145.04
Fixed assets 13 13,910,237,530.81 14,565,579,796.38
Construction in progress 14 3,063,874,006.92 1,273,996,965.24
Project materials 96,690.75 96,690.75
Fixed assets disposal 12,412.53 12,412.53
Intangible assets 15 2,843,331,742.67 2,878,965,225.15
Development expenditure 16 1,093,462,382.64 627,845,455.00
Goodwill 17 9,804,394.00 9,804,394.00
Long-term deferred expenses 18 8,028,811.27 1,687,863.32
Deferred tax assets 19 1,415,611,191.12 1,160,584,772.58
Other non-current assets 21 - 60,901,712.09
Total non-current assets 37,789,780,569.16 33,757,381,806.54
TOTAL ASSETS 89,413,988,669.66 69,687,352,890.82
70
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET (continued)
31 December 2015
(Expressed in Renminbi Yuan)
Notes V 2015 2014
Current liabilities
Short-term loans 22 50,000,000.00 90,000,000.00
Notes payable 23 18,662,900,601.34 13,108,623,397.32
Accounts payable 24 14,973,826,566.55 13,038,793,688.31
Advances from customers 25 7,326,612,631.20 5,802,717,284.79
Payroll payable 26 1,499,613,879.78 1,022,369,664.80
Taxes payable 27 356,749,196.49 36,024,006.54
Interest payables 28 73,458,000.00 73,458,000.00
Dividend payables 29 79,742.80 79,742.80
Other payables 30 1,762,874,858.05 2,007,416,635.58
Contingent liabilities 31 1,641,676,220.15 1,221,114,880.50
Other current liabilities 32 3,930,898,961.15 2,921,898,971.68
Total current liabilities 50,278,690,657.51 39,322,496,272.32
Non-current liabilities
Bonds payable 33 1,975,102,599.85 1,971,184,679.89
Long term payroll payable 34 106,622,000.00 48,317,000.00
Special payable 35 164,121,780.05 146,635,935.13
Other non-current liabilities 36 2,666,543,408.82 2,687,392,181.26
Deferred tax liabilities 19 49,285,500.00 55,915,125.00
Total non-current liabilities 4,961,675,288.72 4,909,444,921.28
Total liabilities 55,240,365,946.23 44,231,941,193.60
Owners’ equity
Share capital 37 4,662,886,108.00 4,662,886,108.00
Capital reserves 38 3,227,489,320.83 3,227,489,320.83
Other Comprehensive Income 39 242,110,844.54 292,013,397.24
Special reserves 40 22,036,479.54 7,864,849.94
Surplus reserves 41 2,331,443,054.00 2,331,443,054.00
Retained earnings 42 23,899,223,263.45 15,115,601,819.79
Equity attributable to owners 34,385,189,070.36 25,637,298,549.80
Minority interests (211,566,346.93) (181,886,852.58)
Total equity 34,173,622,723.43 25,455,411,697.22
TOTAL LIABILITIES
AND OWNERS’ EQUITY 89,413,988,669.66 69,687,352,890.82
The financial statements on pages 3 to 17 have been signed by:
Legal Principal in Charge Chief
Representative: of Accountancy: Accountant:
71
Chongqing Changan Automobile Company Limited
CONSOLIDATED INCOME STATEMENT
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
Notes V 2015 2014
Operating revenue 43 66,771,580,527.66 52,913,332,100.83
Less: Operating cost 43 53,406,710,707.60 43,265,825,863.87
Business tax and surcharges 44 2,941,577,703.72 2,064,344,726.91
Operating expenses 45 4,954,522,137.85 4,357,168,648.54
General and administrative
expenses 46 4,899,212,097.06 3,741,914,875.84
Financial expenses 47 (150,805,630.19) 66,074,040.06
Impairment loss on assets 48 630,316,436.27 343,605,049.25
Add: Investment income 49 9,497,409,092.94 8,102,117,000.24
Including: Investment income
from associates and joint
venture 9,439,864,877.63 7,991,213,934.13
Operating profit 9,587,456,168.29 7,176,515,896.60
Add: Non-operating income 50 514,920,557.97 401,670,177.11
Including: gain on disposal of
non-current assets 1,709,968.83 4,835,757.23
Less: Non-operating expenses 51 90,491,722.00 39,356,429.47
Including: loss on disposal of
non-current assets 36,024,036.17 22,128,955.42
Total profit 10,011,885,004.26 7,538,829,644.24
Less: Income tax expense 53 89,331,468.18 20,850,708.62
Net profit 9,922,553,536.08 7,517,978,935.62
Including: The net profit of the combined
parties before business
combination involving entities
under common control - (43,390,581.51)
Net profit attributable to owners 9,952,714,168.09 7,561,081,585.81
Minority interests (30,160,632.01) (43,102,650.19)
72
Chongqing Changan Automobile Company Limited
CONSOLIDATED INCOME STATEMENT (continued)
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
Notes V 2015 2014
Other comprehensive income,
net of tax
Total comprehensive income
attributable to owners,
net of tax 39
Other comprehensive income
not to be reclassified to
profit or loss in
subsequent periods:
Change in net liability or
assest from defined
benefit plan 2,956,000.00 556,000.00
Other Comprehensive income
not to be recalssfied
to profit or loss
under equity method (966,718.09) -
Other comprehensive income
to be reclassified to profit
or loss in subsequent periods:
Changes in fair value from
available-for-sale financial
assest (37,567,875.00) 129,972,491.77
Foreign currency reserve (14,323,959.61) (10,504,456.91)
Total comprehensive income
attributable to minority
interests, net of tax - -
Total comprehensive income 9,872,650,983.38 7,638,002,970.48
Total comprehensive income
attributable to owners 9,902,811,615.39 7,681,105,620.67
Total comprehensive income
attributable to minority
interest (30,160,632.01) (43,102,650.19)
Earnings per share 54
Basic earnings per share 2.13 1.62
Diluted earnings per share Not Applicable Not Applicable
73
Chongqing Changan Automobile Company Limited
CONSOLIDATED STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
Equity attributable to owners
Share capital Captial Other Special Surplus Retained Subtotal Mionrity interest Total equity
reserves comprehensive reserves reserves earnings
income
At 31 December 2014 4,662,886,108.00 3,227,489,320.83 292,013,397.24 7,864,849.94 2,331,443,054.00 15,115,601,819.79 25,637,298,549.80 (181,886,852.58) 25,455,411,697.22
Changes during the year
Total comprehensive income - - (49,902,552.70) - - 9,952,714,168.09 9,902,811,615.39 (30,160,632.01) 9,872,650,983.38
Distribition of profit
1.Distribution to owners - - - - - (1,169,092,724.43) (1,169,092,724.43) - (1,169,092,724.43)
Special reserves
1.Provided - - - 69,992,434.73 - - 69,992,434.73 1,174,225.33 71,166,660.06
2.Ultilized - - - (58,059,866.21) - - (58,059,866.21) (693,087.67) (58,752,953.88)
3.Effective portion of
changes in special
reserves from joint
venture - - - 2,239,061.08 - - 2,239,061.08 - 2,239,061.08
At 31 December 2015 4,662,886,108.00 3,227,489,320.83 242,110,844.54 22,036,479.54 2,331,443,054.00 23,899,223,263.45 34,385,189,070.36 (211,566,346.93) 34,173,622,723.43
74
Chongqing Changan Automobile Company Limited
CONSOLIDATED STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
Equity attributable to owners
Share capital Captial Other Special Surplus Retained Subtotal Mionrity interest Total equity
reserves comprehensive reserves reserves earnings
income
At 1 January 2014 4,662,886,108.00 3,667,206,121.77 171,989,362.38 1,670,967.02 1,816,272,976.53 8,537,087,238.91 18,857,112,774.61 (138,401,842.18) 18,718,710,932.43
Changes during the year
Total comprehensive income - - 120,024,034.86 - - 7,561,081,585.81 7,681,105,620.67 (43,102,650.19) 7,638,002,970.48
Input by investors and decrease
in capital
1.Business combination
involving entities under
common control - (439,980,000.00) - - - - (439,980,000.00) - (439,980,000.00)
2.Other - 263,199.06 - - - - 263,199.06 (628,522.01) (365,322.95)
Distribition of profit
1.Pick-up of surplus
reserves - - - - 515,170,077.47 (515,170,077.47) - - -
2.Distribution to owners - - - - - (467,396,927.46) (467,396,927.46) - (467,396,927.46)
Special reserves
1.Provided - - - 32,171,314.11 - - 32,171,314.11 1,040,952.56 33,212,266.67
2.Ultilized - - - (29,105,295.69) - - (29,105,295.69) (794,790.76) (29,900,086.45)
3.Effective portion of
changes in special
reserves from joint
venture - - - 3,127,864.50 - - 3,127,864.50 - 3,127,864.50
At 31 December 2014 4,662,886,108.00 3,227,489,320.83 292,013,397.24 7,864,849.94 2,331,443,054.00 15,115,601,819.79 25,637,298,549.80 (181,886,852.58) 25,455,411,697.22
75
Chongqing Changan Automobile Company Limited
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
Notes V 2015 2014
CASH FLOWS FROM
OPERATING ACTIVITIES
Cash received from sale of goods
or rendering of services 67,227,118,483.19 47,070,019,938.58
Refunds of taxes 132,443,967.23 186,933,943.35
Cash received relating to other
operating activities 55 880,908,236.41 340,831,441.25
Subtotal of cash inflows 68,240,470,686.83 47,597,785,323.18
Cash paid for goods and services 47,149,288,245.62 31,591,516,401.86
Cash paid to and on behalf of
employees 4,793,792,121.63 3,910,159,904.05
Cash paid for all types of taxes 5,548,989,133.66 4,114,101,735.03
Cash paid relating to other
operating activities 55 5,333,510,416.42 4,202,085,507.67
Subtotal of cash outflows 62,825,579,917.33 43,817,863,548.61
Net cash flows from operating
activities 56 5,414,890,769.50 3,779,921,774.57
CASH FLOWS FROM
INVESTING ACTIVITIES
Cash received from disposal
of investment - 109,928,689.99
Cash received from return
on investment 8,357,544,215.31 7,734,539,013.46
Net cash received from disposal
of fixed assets, intangible assets
and other long-term assets 1,278,718.52 4,692,004.06
Cash received relating to other
investing activites 55 112,430,000.00 66,636,035.28
Subtotal of cash inflows 8,471,252,933.83 7,915,795,742.79
Cash paid for acquisition of
fixed assets,intangible assests
and other long-term assets 3,017,850,561.90 2,215,608,713.93
Cash paid for acquisition of
investments 1,185,552,000.00 40,000,000.00
Cash paid for acquisition of
subsidiary and other joint
venture - 439,980,000.00
Cash paid relating to other
investing activities 55 88,000.38 626,230.62
Subtotal of cash outflows 4,203,490,562.28 2,696,214,944.55
Net cash flows from investing activities 4,267,762,371.55 5,219,580,798.24
76
Chongqing Changan Automobile Company Limited
CONSOLIDATED CASH FLOW STATEMENT (continued)
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
Notes V 2015 2014
CASH FLOWS FROM
FINANCING ACTIVITIES:
Cash received from borrowings 60,000,000.00 90,000,000.00
Cash received relating to
other financing activities 55 48,806,228.67 374,847,270.36
Sub-total of cash inflows 108,806,228.67 464,847,270.36
Cash repayments of borrowings 100,000,000.00 3,288,000,000.00
Cash paid for distribution of dividends
or profits and interest expenses 1,283,023,462.46 659,806,255.03
Cash paid relating to
other financing activities 55 45,238,112.37 95,029,974.54
Sub-total of cash outflows 1,428,261,574.83 4,042,836,229.57
Net cash flows from financing activities (1,319,455,346.16)(3,577,988,959.21)
EFFECT OF CHANGES IN EXCHANGE
RATE ON CASH (130,371.38) (1,601,557.45)
NET INCREASE/(DECREASE) IN CASH
AND CASH EQUIVALENTS 8,363,067,423.51 5,419,912,056.15
Add: Opening balance of
cash and cash equivalents 9,362,853,917.71 3,942,941,861.56
CLOSING BALANCE OF
CASH AND CASH EQUIVLANT 56 17,725,921,341.22 9,362,853,917.71
77
Chongqing Changan Automobile Company Limited
BALANCE SHEET
31 December 2015
(Expressed in Renminbi Yuan)
Notes XII 2015 2014
Current assets
Cash 17,223,403,333.90 8,828,152,864.35
Notes receivable 22,362,236,477.47 17,437,167,211.16
Accounts receivable 1 3,395,349,268.28 2,761,909,831.22
Prepayments 671,459,087.17 718,818,105.48
Interest receivable 15,295,866.67 22,083,194.44
Dividend receivable 23,684,883.31 -
Other receivables 2 1,020,947,609.26 668,159,856.84
Inventories 7,034,843,877.19 5,742,492,948.04
Total current assets 51,747,220,403.25 36,178,784,011.53
Non-current assets
Available-for-sale financial assets 530,811,274.00 544,456,774.00
Long-term equity investments 3 16,234,640,261.85 13,961,764,958.78
Fixed assets 11,439,456,287.51 12,096,357,952.31
Construction in progress 2,694,046,285.96 1,104,857,686.48
Project materials 96,690.75 96,690.75
Intangible assets 2,549,877,967.28 2,609,607,273.08
Development expenditure 973,680,610.53 553,114,237.90
Long-term deferred expenses 5,734,664.00 360,160.00
Deferred tax assets 1,311,976,033.85 1,074,871,906.67
Other non-current assets 184,595,895.00 60,901,712.09
Total non-current assets 35,924,915,970.73 32,006,389,352.06
TOTAL ASSETS 87,672,136,373.98 68,185,173,363.59
78
Chongqing Changan Automobile Company Limited
BALANCE SHEET (continued)
31 December 2015
(Expressed in Renminbi Yuan)
Notes XII 2015 2014
Current liabilities
Notes payable 17,867,862,639.24 12,543,099,927.12
Accounts payable 12,261,927,977.59 10,740,190,881.58
Advances from customers 7,244,681,597.34 5,759,636,471.07
Payroll payable 1,340,616,604.42 880,808,485.74
Taxes payable 685,518,624.02 377,767,827.46
Interest payable 73,458,000.00 73,458,000.00
Other payables 1,715,127,488.12 1,689,613,940.30
Contingent liabilities 1,610,185,432.44 1,203,676,749.38
Other current liabilities 3,751,184,504.59 2,699,580,446.95
Total current liabilities 46,550,562,867.76 35,967,832,729.60
Non-current liabilities
Bonds payable 1,975,102,599.85 1,971,184,679.89
Long term payroll payable 87,565,000.00 27,778,000.00
Special payable 103,856,111.50 76,263,426.13
Other non-current liabilities 2,212,002,396.55 2,195,144,515.81
Deferred tax liabilities 49,285,500.00 55,915,125.00
Total non-current liabilities 4,427,811,607.90 4,326,285,746.83
Total liabilities 50,978,374,475.66 40,294,118,476.43
Owner’s equity
Share capital 4,662,886,108.00 4,662,886,108.00
Capital reserves 2,831,662,835.16 2,831,662,835.16
Other comprehensive income 281,190,781.91 317,440,375.00
Special reserves 12,723,372.00 3,127,864.50
Surplus reserves 2,331,443,054.00 2,331,443,054.00
Retained earnings 26,573,855,747.25 17,744,494,650.50
Total owner’s equity 36,693,761,898.32 27,891,054,887.16
TOTAL LIABILITIES
AND OWNERS’ EQUITY 87,672,136,373.98 68,185,173,363.59
79
Chongqing Changan Automobile Company Limited
INCOME STATEMENT
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
_____________________________________________________________________________
Notes XII 2015 2014
Operating revenue 4 64,862,129,116.91 52,494,653,749.04
Less: Operating cost 4 52,616,129,433.68 43,446,279,325.62
Business tax and surcharges 2,716,124,679.99 1,834,745,421.68
Operating expenses 4,513,587,958.53 3,932,029,859.75
General and administrative
expenses 4,344,973,656.07 3,249,998,175.37
Financial expenses (155,764,882.94) 49,713,585.22
Impairment loss on assets 540,779,680.25 245,849,737.11
Add: Investment income 5 9,499,248,778.19 8,029,395,216.04
Including: Investment income
from associates and from
joint venture 9,439,864,877.63 7,991,213,934.13
Operating profit 9,785,547,369.52 7,765,432,860.33
Add: Non-operating income 382,321,409.12 363,316,432.64
Including: income on disposal of
non-current assets 1,249,832.64 67,589,119.50
Less: Non-operating expenses 82,220,652.86 92,611,463.33
Including: loss on disposal of
non-current assets 33,050,453.63 84,531,649.99
Total profit 10,085,648,125.78 8,036,137,829.64
Less: Income tax expense 87,194,304.60 (45,795,843.15)
Net profit 9,998,453,821.18 8,081,933,672.79
Other comprehensive income, net
of tax
Other comprehensive income not to
be reclassified to profit or loss in
subsequent periods:
Change in net liability or assest
from defined benefit plan 2,285,000.00 588,000.00
Other Comprehensive income not to be
recalssfied to profit or loss
under equity method (966,718.09) -
Other comprehensive income to be
reclassified to profit or loss in
subsequent periods:
Changes in fair value from
available-for-sale financial assest (37,567,875.00) 186,481,500.00
Total comprehensive income attributable
to minority interests, net of tax - -
Total comprehensive income 9,962,204,228.09 8,269,003,172.79
80
Chongqing Changan Automobile Company Limited
STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
__________________________________
Share capital Captial reserves Other Special reserves Surplus reserves Retained earnings Total onwer’s equity
comprehensive
income
At 31 December 2014 4,662,886,108.00 2,831,662,835.16 317,440,375.00 3,127,864.50 2,331,443,054.00 17,744,494,650.50 27,891,054,887.16
Changes during the year
Total comprehensive income - - (36,249,593.09) - - 9,998,453,821.18 9,962,204,228.09
Distribition of profit
1.The distribution to owners - - - - - (1,169,092,724.43) (1,169,092,724.43)
Special reserves
1.Provided - - - 57,322,438.61 - - 57,322,438.61
2.Ultilized - - - (49,965,992.19) - - (49,965,992.19)
3.Effecitve portion of
changes in special reserves
from joint venture - - - 2,239,061.08 - - 2,239,061.08
At 31 December 2015 4,662,886,108.00 2,831,662,835.16 281,190,781.91 12,723,372.00 2,331,443,054.00 26,573,855,747.25 36,693,761,898.32
81
Chongqing Changan Automobile Company Limited
STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (Continued)
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
Share capital Captial reserves Other Special reserves Surplus reserves Retained earnings Total onwer’s equity
comprehensive
income
At 31 December 2014 4,662,886,108.00 3,366,723,267.88 - - 1,816,272,976.53 10,645,127,982.64 20,491,010,335.05
Add: Change in accounting policy - (130,370,875.00) 130,370,875.00 - - - -
At 1 January 2014 4,662,886,108.00 3,236,352,392.88 130,370,875.00 - 1,816,272,976.53 10,645,127,982.64 20,491,010,335.05
Changes during the year
Total comprehensive income - - 187,069,500.00 - - 8,081,933,672.79 8,269,003,172.79
Input by investors and decrease in
capital
1.Business combination
involving entities under
common control - (404,612,234.77) - - - - (404,612,234.77)
2.Other - (77,322.95) - - - - (77,322.95)
Distribition of profit
1.Pick-up of surplus reserve - - - - 515,170,077.47 (515,170,077.47) -
2.The distribution to owners - - - - - (467,396,927.46) (467,396,927.46)
Special reserves
1.Provided - - - 20,569,000.00 - - 20,569,000.00
2.Ultilized - - - (20,569,000.00) - - (20,569,000.00)
3.Effecitve portion of
changes in special reserves
from joint venture - - - 3,127,864.50 - - 3,127,864.50
At 31 December 2015 4,662,886,108.00 2,831,662,835.16 317,440,375.00 3,127,864.50 2,331,443,054.00 17,744,494,650.50 27,891,054,887.16
82
Chongqing Changan Automobile Company Limited
CASH FLOW STATEMENT
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
Notes V 2015 2014
CASH FLOWS FROM
OPERATING ACTIVITIES
Cash received from sale of goods
or rendering of services 63,953,693,285.60 44,539,407,008.87
Refunds of taxes - 50,000,000.00
Cash received relating to other
operating activities 996,275,037.87 325,468,112.96
Subtotal of cash inflows 64,949,968,323.47 44,914,875,121.83
Cash paid for goods and services 45,915,351,745.05 30,739,741,685.24
Cash paid to and on behalf of
employees 3,823,164,575.49 3,146,073,793.80
Cash paid for all types of taxes 5,027,223,259.49 3,638,206,116.33
Cash paid relating to other
operating activities 5,019,252,596.31 3,866,363,198.70
Subtotal of cash outflows 59,784,992,176.34 41,390,384,794.07
Net cash flows from operating
activities 5,164,976,147.13 3,524,490,327.76
CASH FLOWS FROM
INVESTING ACTIVITIES
Cash received from disposal
of investment - 28,459,829.00
Cash received from return
on investment 8,359,383,900.56 7,739,418,268.79
Net cash received from disposal
of fixed assets, intangible assets
and other long-term assets 70,308,457.82 1,541,246.50
Cash received relating to other
investing activites 107,130,000.00 288,797,852.76
Subtotal of cash inflows 8,536,822,358.38 8,058,217,197.05
Cash paid for acquisition of
fixed assets,intangible assests
and other long-term assets 2,494,275,759.38 1,903,868,435.17
Cash paid for acquisition of
investments 1,370,147,895.00 40,288,000.00
Cash paid for acquisition of
subsidiary and other joint
venture - 443,384,180.36
Cash paid relating to other
investing activities 166,088,000.38 25,406,487.47
Subtotal of cash outflows 4,030,511,654.76 2,412,947,103.00
Net cash flows from investing activities 4,506,310,703.62 5,645,270,094.05
83
Chongqing Changan Automobile Company Limited
CASH FLOW STATEMENT (continued)
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
Notes XII 2015
2014
CASH FLOWS FROM
FINANCING ACTIVITIES
Cash received relating to other
financing activities - 4,028.93
Sub-total of cash inflows - 4,028.93
Cash repayments of borrowings - 2,990,000,000.00
Cash paid for distribution of dividends
or profits and for interest expenses 1,276,036,381.20 642,196,270.39
Sub-total of cash outflows 1,276,036,381.20 3,632,196,270.39
Net cash flows from financing activities (1,276,036,381.20) (3,632,192,241.46)
NET INCREASE IN CASH
AND CASH EQUIVALENTS 8,395,250,469.55 5,537,568,180.35
Add: Cash and cash equivalents at
beginning of year 8,828,152,864.35 3,290,584,684.00
CASH AND CASH EQUIVLANT
AT END OF YEAR 17,223,403,333.90 8,828,152,864.35
84
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
I. CORPORATE INFORMATION
Chongqing Changan Automobile Company Limited (hereafter referred to as the “Company”)
was established by China Changan Automobile Group (hereafter referred to as the “Changan
Group”) as the individual originator on 31 October 1996. The company was set up using the
group’s net asset relating to the operation of mini cars and engine, the shares it owned in
Chongqing Changan Suzuki company limited (equal to 506,190,000 shares of the Company) and
the fund raised from the issuance of 250,000,000 foreign capital stock (B shares), with total
share capital of RMB756,190,000. The Legal Representative’s Operating License issued by
Chongqing Industrial and Commercial Administrative Bureau is Yu-Jing No. 28546236-3.
With the approval of China Securities Regulatory Commission, the company initially floated on
share market on 19 May 1997 by issuing 120,000,000 common shares(A share) to the public. The
offering increased the total share capital to RMB 876,190,000.
On 26 June 1998, the Company issued 4 shares for each 10 shares to existing shareholders of the
original 876,190,000 shares. The issuance was made from capital reserve and increased the total
share capital to RMB 1,226,666,000.
On 26 May 2004, the Company offered 2 bonus shares for each 10 shares held by existing
shareholders, which increased the total share capital from RMB 1,226,666,000 to RMB
1,471,999,200.
On 26 August 2004, with the approval of China Securities Regulatory Commission, the Company
offered 148,850,000 common shares (A share) to the market, which increased the total share
capital to RMB 1,620,849,200.
In December 2005, China South Industries Group Corporation (hereafter referred to as the
“South Group”), the ultimate parent company, used the common share (850,399,200 shares)
owned by its subsidiary, Changan Group, as part of the investment to establish China South
Industries Motor Company (hereafter referred to as ”South Industries Motor”). The share
occupied 52.466% of the Company’s total share capital. Therefore, South industries Motor
became the parent company of the Company. On 30 March 2006, the transfer of share was
registered by Shenzhen branch of China Securities Depository and Clearing Corporation limited.
In May 2006, South Industries Motor issued 3.2 bonus shares for each 10 shares to the
shareholders at the implementation date of reformation of non-tradable shares for their
non-tradable shares according to the ”Reply of the problems related to the reformation of
non-tradable shares of Chongqing Changan Automobile Co., Ltd.” (2006[442] Guo Zi Chan Quan)
issued by the State-owned Assets Supervision and Administration Commission of State Council
and the related shareholder’s meeting. After the reformation of non-tradable shares, South
Industries Motor occupied 45.548% of equity through 738,255,200 common shares.
85
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
I CORPORATE INFORMATION (continued)
On 15 May 2007, the Company issued 2 bonus shares for each 10 shares to existing shareholders,
which increased the total share capital from RMB 1,620,849,200 to RMB 1,945,019,040.
On 30 May 2008, the Company issued 2 shares for each 10 shares owned by existing
shareholders. The issuance was made from capital reserve and increased the total share capital
to RMB 2,334,022,848.
On 3 March 2009, the secondary temporary shareholder meeting was held. The board resolution
about ‘the reacquisition of foreign capital stock listed in China’ was approved in the meeting. For
the buyback period ended on 3 March 2010, the company repurchased 8,365,233 shares in total,
equal to 0.3584% of total capital.
On 1 July 2009, with the approval of State Administration for Industry and Commercial, South
industries Motor, the parent company changed its name to China Changan Automobile Industry
(Group) Co., Ltd. (hereafter referred to as the “China Changan”).
With the approval of China Securities Regulatory Commission on 14 January 2011, the Company
issued 360,166,022 common shares (A share), which increased the total share capital to RMB
2,685,823,637. After the completion of the issuance, China Changan holds 1,163,787,489 shares
of the Company's common stock, and the held equity interest decreased to 43.33%.
On 18 May 2011, the Company issued 4 bonus shares for each 10 shares and issued 4 shares to 10
shares from capital reserve to existing shareholders. After this issuance, the total share capital
has been increased to RMB 4,834,482,546.
On 21 December 2011, the first temporary shareholder meeting was held. The board resolution
about ‘the reacquisition of foreign capital stock listed in China’ was approved in the meeting. For
the buyback period ended on 20 March 2012, the company repurchased 171,596,438 shares in
total, equal to 3.55% of total capital. On 30 March 2012, the company cancelled the share and
the share capital decreased to RMB 4,662,886,108.
During 2013 and 2014, China Changan, the parent company of the Company, continuously
sold181,260,000 and 89,962,264 shares in total in secondary market. As at 31 December 2014,
China Changan holds 1,823,595,216 shares of the Company’s ordinary shares, with shares
proporation decreasing to 39.11%.
86
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
I CORPORATE INFORMATION (continued)
On 15 October 2015, the Company renewed Business License for Enterprise’s Legal Person with
the united social code: 9150000020286320X6.
As at 31 December 2015, the Company’s parent company and ultimate controlling company is
China Changan and South Group respectively.
The Company and its subsidiaries (hereafter referred to as the “Group”) mainly focus on the
manufacturing and sales of automobile (include cars), automobile engine, spare parts.
According to the Articles of Association, the financial statements, which has been approved by
the board of directors on 18 April 2016, was submitted to general meeting of shareholders for
approval.
The scope of consolidation in the consolidated financial statement is determined based on
control. There is no change in the consolidation scope of 2015.
II BASIS OF PREPERATION
1. Basis of preperation
The financial statements have been prepared in accordance with Accounting Standards for
Business Enterprises-Basic Standard and the specific standards issued and modified
subsequently, and the implementation guidance, interpretations and other relevant provisions
issued subsequently by the MOF (correctly referred to as “Accounting Standards for Business
Enterprises”).
The financial statements are presented on a going concern basis.
The financial statements have been prepared under the historical cost convention, except for
certain financial instruments. If the assets are impaired, the corresponding provisions should be
made accordingly. The assets are recorded at assessed value by State-owned Assets Supervision
and Administration Commission of the State Council, which are invested into the Group in the
reforming period.
87
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
III SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
According to the actual production and operation characteristics, the group formulated the
specific accounting policies and accounting estimates, mainly reflected in provision of accounts
receivables (note III (10), inventory valuation (Note 3 (11), depreciation of fixed assets, intangible
assets amortization (Note 3 (14) (17)), capitalization of research and development expenditures
(Note 3 (18) and revenue recognition(Note 3 (21)).
1. Statement of compliance with Accounting Standards for Business Enterprises
The financial statements present fairly and fully, the financial position of the Company as at 31
December 2015 and the financial results and the cash flows for the year then ended in
accordance with Accounting Standards for Business Enterprises.
2. Accounting year
The accounting year of the Group is from 1 January to 31 December of each calendar year.
3. Functional currency
The Group’s functional and reporting currency is the Renminbi (“RMB”). Unless otherwise
stated, the unit of the currency is Yuan. Each entity in the Group determines its own functional
currency in accordance with the operating circumstances. At the end of the reporting period, the
foreign currency financial statements are translated into the reporting currency of the Company
of RMB.
4. Business combination
A business combination is a transaction or event that brings together two or more separate
entities into one reporting entity. Business combinations are classified into business
combinations involving entities under common control and business combinations involving
entities not under common control.
Business combination involving entities under common control
A business combination involving entities under common control is a business combination in
which all of the combining entities are ultimately controlled by the same party or parties both
before and after the combination, and that control is not transitory. For a business combination
involving entities under common control, the party which, on the combination date, obtains
control of another entity participating in the combination is the acquiring party, while that other
entity participating in the combination is a party being acquired. Combination date is the date
on which the acquiring party effectively obtains control of the party being acquired.
88
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
4. Business combination (continued)
Assets and liabilities that are obtained by the acquiring party in a business combination
involving entities under common control shall be measured at their carrying amounts at the
combination date as recorded by the party being acquired. The difference between the carrying
amount of the net assets obtained and the carrying amount of the consideration paid for the
combination (or the aggregate face value of shares issued as consideration) shall be adjusted to
capital reserve. If the capital reserve is not sufficient to absorb the difference, any excess shall be
adjusted against retained earnings.
Business combination involving entities not under common control
A business combination involving entities not under common control is a business combination
in which all of the combining entities are not ultimately controlled by the same party or parties
both before and after the combination. For a business combination involving entities not under
common control, the party that, on the acquisition date, obtains control of another entity
participating in the combination is the acquirer, while that other entity participating in the
combination is the acquiree. Acquisition date is the date on which the acquirer effectively
obtains control of the acquire.
The acquirer shall measure the acquiree’s identifiable assets, liabilities and contingent liabilities
acquired in the business combination at their fair values on the acquisition date.
Where the sum of the fair value of the consideration transferred (or the fair value of the issued
equity securities) and the fair value of the acquirer’s previously held equity interest in the
acquiree exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets,
the difference shall be recognized as goodwill and measured at cost less any accumulated
impairment losses. Where the sum of the fair value of the consideration transferred (or the fair
value of the issued equity securities) and the fair value of the acquirer’s previously held equity
interest in the acquiree is less than the acquirer’s interest in the fair value of the acquiree’s
identifiable net assets, the difference shall be accounted for according to the following
requirements: (i) the acquirer shall reassess the measurement of the fair values of the acquiree’s
identifiable assets, liabilities and contingent liabilities and measurement of the fair value of the
consideration transferred (or the fair value of the issued equity securities) and the fair value of
the acquirer’s previously held equity interest in the acquiree; (ii) if after that reassessment, the
sum of the fair value of the consideration transferred (or the fair value of the issued equity
securities) and the fair value of the acquirer’s previously held equity interest in the acquiree is
still less than the acquirer’s interest in the fair values of the acquiree’s identifiable net assets, the
acquirer shall recognize the remaining difference immediately in the income statement for the
current period.
89
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
5. Consolidated financial statements
The scope of consolidation of consolidated financial statements is determined based on control,
and includes the financial statements of the Company and its subsidiaries for the year ended 31
December 2015. A subsidiary is an enterprise or entity that is controlled by the Group (including
an enterprise, seperable part of the investee and a structured entity controlled by the Company).
The financial statements of the subsidiaries are prepared for the same reporting period as the
Company, using consistent accounting policies. All intra-group assets and liabilities, equity,
income, expenses and cash flows relating to transactions between members of the Group are
eliminated in full on consolidation.
When the current loss belong to minorities of the subsidiary exceeds the beginning equity of the
subsidiary belong to minorities, the exceeded part will still deduct the equity belong to
minorities.
With respect to subsidiaries acquired through business combinations involving entities not
under common control, the operating results and cash flows of the acquiree should be included
in the consolidated financial statements, from the day that the Group gains control, till the
Group ceases the control of it. While preparing the consolidated financial statements, the
acquirer should adjust the subsidiary’s financial statements, on the basis of the fair values of the
identifiable assets, liabilities and contingent liabilities recognized on the acquisition date.
With respect to subsidiaries acquired through business combinations involving entities under
common control, the operating results and cash flows of the acquiree should be included in the
consolidated financial statements from the beginning of the period in which the combination
occurs.
If the changes of relevant facts and circumstances will result in the changes of one or more
control elements, then the Group should reassess whether has taken control of the investee.
6 Joint venture arrangement classification and joint operation
Joint venture arrangements are classified into joint operation and joint venture. Joint operation
refers to those joint venture arrangements, relevant assets and liabilities of which are enjoyed
and assumed by the joint venturers. Joint ventures refer to those joint venture arrangements,
only the right to net assets of which is enjoyed by the joint venturers.
Any joint venturer shall recognize the following items related to its share of benefits in the joint
operation and conduct accounting treatment in accordance with relevant accounting standards
for business enterprises: assets it solely holds and its share of jointly-held assets based on its
percentage; liabilities it solely assumes and its share of jointly-assumed liabilities based on its
percentage; incomes from sale of output enjoyed by it from the joint operation; incomes from
sale of output from the joint operation based on its percentage; and separate costs and costs for
the joint operation based on its percentage.
7. Cash and cash equivalents
90
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
Cash comprises cash on hand and bank deposits which can be used for payment at any time;
Cash equivalents are short-term, highly liquid investments held by the Group, that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes
in value.
8. Foreign currency translation
The Group translates the amount of foreign currency transactions occurred into functional
currency.
The foreign currency transactions are recorded, on initial recognition in the functional currency,
by applying to the foreign currency amount at the spot exchange rate on the transaction dates.
Foreign currency monetary items are translated using the spot exchange rate quoted by the
People’s Bank of China at the balance sheet date. The exchange gains or losses arising from
occurrence of transactions and exchange of currencies, except for those relating to foreign
currency borrowings specifically for construction and acquisition of fixed assets capitalized, are
dealt with in the profit and loss accounts. Non-monetary foreign currency items measured at
historical cost remain to be translated at the spot exchange rate prevailing on the transaction
date, and the amount denominated in the functional currency should not be changed.
Non-monetary foreign currency items measured at fair value should be translated at the spot
exchange rate prevailing on the date when the fair values are determined. The exchange
difference thus resulted should be charged to the current income or other comprehensive
income account of the current period.
When preparing consolidated financial statements, the financial statements of the subsidiaries
presented in foreign currencies are translated into Renminbi as follows: asset and liability
accounts are translated into Renminbi at exchange rates ruling at the balance sheet date;
shareholders’ equity accounts other than retained profits are translated into Renminbi at the
applicable exchange rates ruling at the transaction dates; income and expense in income
statement are translated into Renminbi at spot exchange rates on transaction occurrence; total
difference between translated assets and translated liabilities and shareholders’ equity is
separately listed as “foreign currency exchange differences” below retained profits. The
translation difference arising from the settlement of oversea subsidiaries is charged to the
current liquidation profit and loss in proportion to the settlement ratio of the assets concerned.
Foreign currency cash flows and the cash flows of foreign subsidiaries should be translated using
the average exchange rate prevailing on the transaction month during which the cash flows
occur. The amount of the effect on the cash arising from the change in the exchange rate should
be separately presented as an adjustment item in the cash flow statement.
91
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
9. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
Recognition and derecognition
The Group recognizes a financial asset or a financial liability, when the Group becomes a party to
the contractual provision of the instrument.
The Group derecognizes a financial asset (or part of a financial asset, or part of a group of similar
financial assets), be written off from the account and balance sheet , when the following
conditions are met:
(1) the rights to receive cash flows from the asset have expired;
(2) the Group transferred the rights to receive cash flows from the asset, or has assumed an
obligation to pay the received cash flows in full without material delay to a third party
under a “pass-through” arrangement; and either (a) has transferred substantially all the
risks and rewards of the asset, or (b) has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred control of the asset.
If the underlying obligation of a financial liability has been discharged or cancelled or has
expired, the financial liability is derecognized. If an existing financial liability is replaced by the
same creditor, with a new financial liability that has substantially different terms, or if the terms
of an existing financial liability are substantially revised, such replacement or revision is
accounted for as the derecognition of the original liability and the recognition of a new liability,
and the difference thus resulted is recognized in profit or loss for the current period.
When buy or sell financial instruments under a normal way, financial instruments are recognized
or derecognized according to the transaction date accounting. A normal way to buy or sell
financial instruments refers to, according to the contract terms, receive or deliver financial
instruments within the period as required by legal regulation or generally accepted guidelines.
Transaction date refers to the date when the Group committed to buy or sell financial
instruments.
Classification and measurement of financial assets
Financial assets are, on initial recognition, classified into the following categories: financial
assets at fair value through profit or loss, held-to-maturity investments, loans and receivables,
available-for-sale financial assets, and the derivatives designated as effective hedging
instrument. A financial asset is recognized initially at fair value. In the case of financial assets
at fair value through profit or loss, relevant transaction costs are directly charged to the profit
and loss of the current period; transaction costs relating to financial assets of other categories
are included in the amount initially recognized.
92
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
9. Financial instruments (continued)
The subsequent measurement of financial assets depends on their classification as follows:
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading and
those designated upon initial recognition as at fair value through profit or loss. A financial asset
held for trading is the financial asset that meets one of the following conditions: the financial
asset is acquired for the purpose of selling it in a short term; the financial asset is a part of a
group of identifiable financial instruments that are collectively managed, and there is objective
evidence indicating that the enterprise recently manages this group for the purpose of
short-term profits; the financial asset is a derivative, except for a derivative that is designated as
effective hedging instrument, or a financial guarantee contract, or a derivative that is linked to
and must be settled by delivery of an unquoted equity instrument (without a quoted price from
an active market) whose fair value cannot be reliably measured. For such kind of financial assets,
fair values are adopted for subsequent measurement. All the realized or unrealized gains or
losses on these financial assets are recognized in profit or loss for the current period. Dividend or
interest income related to financial assets at fair value through profit or loss is recognized in
profit or loss for the current period.
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable
payments and fixed maturity that an entity has the positive intention and ability to hold to
maturity. Such kind of financial assets are subsequently measured at amortized cost using the
effective interest method. Gains or losses arising from derecognition, impairment or
amortization are recognized in profit or loss for the current period.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market. Such kind of financial assets are subsequently measured
at amortized cost using the effective interest method. Gains or losses arising from
derecognition, impairment or amortization are recognized in profit or loss for the current period.
Available-for-sale financial assets
Available-for-sale financial assets are those non-derivative financial assets that are designated
as available for sale or are not classified as the above financial assets. After initial recognition,
available-for-sale financial assets are measured at fair value. The premium/discount is amortized
using effective interest method and recognized as interest income or expense. A gain or loss
arising from a change in the fair value of an available-for-sale financial asset is recognized in
other comprehensive income as a component of capital reserve, except for impairment losses
and foreign exchange gains and losses resulted from monetary financial assets, until the
financial asset is derecognized or determined to be impaired, at which time the accumulated
gain or loss previously recognized in capital reserve is removed from capital reserve and
recognized in profit or loss for the current period. Interests and dividends relating to an
available-for-sale financial asset are recognized in profit or loss for the current period.
93
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
9. Financial instruments (continued)
The equity investment instruments, for which there is no quoted price in active market and
whose fair value cannot be reliably measured, shall be measured at cost.
Classification and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into the following categories:
financial liabilities at fair value through profit or loss, other financial liabilities, and the
derivatives designated as effective hedging instrument. For financial liabilities at fair value
through profit or loss, relevant transaction costs are directly recognized in profit or loss for the
current period, and transaction costs relating to other financial liabilities are included in the
initial recognition amounts.
The subsequent measurement of financial liabilities depends on their classification as follows:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading
and those designated as at fair value through profit or loss. A financial liability held for trading is
the financial liability that meets one of the following conditions: the financial liability is assumed
for the purpose of repurchasing it in a short term; the financial liability is a part of a group of
identifiable financial instruments that are collectively managed, and there is objective evidence
indicating that the enterprise recently manages this group for the purpose of short-term profits;
the financial liability is a derivative, except for a derivative that is designated and effective
hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must
be settled by delivery of an unquoted equity instrument (without a quoted price form an active
market) whose fair value cannot be reliably measured. For such kind of financial liabilities, fair
values are adopted for subsequent measurement. All the realized or unrealized gains or losses
on these financial liabilities are recognized in profit or loss for the current period.
Other financial liabilities
After initial recognition, these financial liabilities are measured at amortized cost using the
effective interest method.
Offsetting of financial instrumentsts
Financial assets and financial liabilities are offset and the net amount is reported in the balance
sheet if there is a currently enforceable legal right to offset the recognised amounts and there is
an intention to settle on a net basis, or to realise the assets and settle the liabilities
simultaneously.
94
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
9. Financial instruments (continued)
Impairment of financial assets
The Group assesses the carrying amount of a financial asset, at the balance sheet date. If there is
objective evidence that the financial asset is impaired, the Group makes provision for the
impairment loss. Objective evidence that a financial asset is impaired is evidence arising from
one or more events that occurred after the initial recognition of the asset and that event has an
impact on the estimated future cash flows of the financial asset which can be reliably estimated.
Financial assets carried at amortized cost
When the financial assets carried at amortized cost are impaired, the carrying amount of the
financial asset shall be reduced to the present value of the estimated future cash flow (excluding
future credit losses that have not been incurred). The amount of reduction is recognized as an
impairment loss in the income statement. Present value of estimated future cash flow is
discounted at the financial asset’s original effective interest rate and includes the value of any
related collateral.
Impairment of financial assets (continued)
If a financial asset is individually significant, the Group assesses the asset individually for
impairment, and recognizes the amount of impairment in the income statement if there is
objective evidence of impairment. For a financial asset that is not individually significant, the
Group can include the asset in a group of financial assets with similar credit risk characteristics
and collectively assess them for impairment. For financial assets that are not impaired upon
individual tests (including financial assets that are individually significant or insignificant),
impairment tests should be conducted on them again by including them in the group of financial
assets. Assets for which an impairment loss is individually recognized will not be included in a
collective assessment of impairment.
If, subsequent to the recognition of an impairment loss on a financial asset carried at amortized
cost, there is objective evidence of a recovery in value of the financial asset which can be related
objectively to an event occurring after the impairment was recognized, the previously
recognized impairment loss is reversed and recognized in the income statement. However, the
reversal shall not result in a carrying amount of the financial asset that exceeds what the
amortized cost would have been had the impairment not been recognized at the date the
impairment is reversed.
Available-for-sale financial assets
When there is objective evidence that the asset is impaired, the cumulative loss from declines in
fair value that had been recognized directly in capital reserve are removed from equity and
recognized in the income statement. The amount of the cumulative loss that is removed from
capital reserves and recognized in the income statement (net of any principal repayment and
amortization) and current fair value, less any impairment loss on that financial asset previously
recognized in the income statement.
95
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
9. Financial instruments (continued)
In the case of equity investments classified as available for sale, objective evidence would
include a significant or prolonged decline in the fair value of an investment below its cost. The
determination of what is “significant” or ''prolonged” requires judgement. “Significant” is
evaluated against the original cost of the investment and “prolonged” against the period in
which the fair value has been below its original cost. Impairment losses on equity instruments
classified as available for sale are not reversed through the income statement. Increases in their
fair value after impairment are recognised directly in other comprehensive income.
The determination of what is “significant” or “prolonged” requires judgement. In making this
judgement, the Group evaluates, among other factors, the duration or extent to which the fair
value of an investment is less than its cost.
Financial assets carried at cost
If objective evidence shows that the financial assets carried at cost are impaired, the difference
between the present value discounted at the prevailing rate of return of similar financial assets
and the book value of the financial asset are provided as a provision and recognized in the
current income statement. The impairment loss recognized cannot be reversed.
Transfer of financial assets
If the Group transfers substantially all the risks and rewards of ownership of the financial asset,
the Group derecognizes the financial asset; and if the Group retains substantially all the risks and
rewards of the financial asset, the Group does not derecognize the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of
the financial asset, the Group determines whether it has retained control of the financial asset.
In this case: (i) if the Group has not retained control, it derecognizes the financial asset and
recognize separately as assets or liabilities any rights and obligations created not retained in the
transfer; (ii) if the Group has retained control, it continues to recognize the financial asset to the
extent of its continuing involvement in the transferred financial asset and recognizes an
associated liability.
96
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
10. Accounts receivable
(1) Accounts receivable which is individually significant and analyzed individually for
provision：
Accounts receivable balance greater than RMB15
Criterion for individually significant items
million due from non-related parties
A provision of the difference between recoverable
Method for provision amount and book value is recognized based on
individually analysis
(2) Accounts receivable analyzed by credit risk charactristics group for provision：
Criterion for group
Accounts receivable due from non-related parties other than individually
Group 1
significant items or insignificatntly but analyzed individually for provision
Group 2 Accounts receivable due from related parties
Method for the provision of group
Group 1 Making provision according to aging analysis
A provision of the difference between recoverable amount and book value is
Group 2
recognized based on individually analysis.
Group 1, the provision analyzed according to aging analysis:
Aging Accounts receivable Other receivables
Provision percentage (%) Provision percentage (%)
Within 1 year
Within 6 months 0 0
6 to 12 months 5 5
1 to 2 years 10 10
2 to 3 years 30 30
3 to 4 years 50 50
4 to 5 years 80 80
Above 5 years 100 100
(3) Accounts receivable which is individually insignificant but analyzed individually for
provision
There is objective evidence that the accounts receivable due
Criterion for individually analysis
from non-related parties is impaired and the future
for provision
recoverable possibility is little.
A provision of the difference between recoverable amount
Method for provision
and book value is recognized individually.
97
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
11. Inventories
Inventory includes raw materials, goods in transit, work in progress, finished goods, consigned
processing materials, low-value consumables and spare parts.
Inventory is initially carried at the actual cost. Inventory costs comprise all costs of purchase,
costs of conversion and other costs incurred in bringing the inventory to its present location and
condition. Weighted average method is assigned to the determination of actual costs of
inventories. One-off writing off method is adopted in amortization of low-value consumables.
The Group applies a perpetual counting method of inventory.
At the balance sheet date, the inventory is stated at the lower of cost and net realizable value. If
the cost is higher than the net realizable value, provision for the inventory should be made
through profit or loss. If factors that resulted in the provision for the inventory have disappeared
and made the net realizable value higher than their book value, the amount of the write-down
should be reversed, to the extent of the amount of the provision for the inventory, and the
reversed amount should be recognized in the income statement for the current period.
Net realizable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the sale. The
impairment provision should be made on a basis of each item of inventories according to the
difference between cost and net realizable value. For large numbers of inventories at relatively
low unit prices, the provision for loss on decline in value of inventories should be made by
category.
12. Long-term equity investments
Long-term equity investments include investments in subsidiaries, joint ventures and associates.
The long-term investments are initially recorded at costs on acquisition. Long-term investments
acquired from business combination under common control shall be initially measured at the
carrying value of the held interest of the party being acquired; The difference between the initial
meassued amounts and the book value of consideration, adjust the capital reserves (if the
capital reserve is insufficient to be offset, retained earnings should be adjusted); Long-term
investments acquired from business combination not under common control shall be initially
measured at the cost (or, the sum of the cost and the carrying value of the previously held equity
interest in the acquire for the business combination achieved by stages), which include the fair
value of the consideration paid, the liabilities beard and the fair value of issued equity
instrument; the other comprehensive income produced from the investment before the
acquisition should be transferred into the current year investment income on disposal.
98
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
12. Long-term equity investments (continued)
Long-term investments acquired not from business combination are initially measured at 1)the
consideration together with the cost necessary incurred; 2) the fair value of the equity
instruments; and 3) the consideration agreed in the investment agreement by the investors,
otherwise the agreed consideration were not fair.
The Company adopted cost method to account for long-term investments in the subsidiaries in
the separate financial statements of the Company. Control is the power to govern the financial
and operating policies of an entity so as to obtain benefits from its activities.
Under cost method, the long-term equity investment is valued at the cost of the initial
investment. The cost of long-term equity investment should be adjusted in case of additional
investment or disinvestments. When cash dividends or profits are declared by the invested
enterprise is recognized as investment income in current period.
The equity method is applied to account for long-term equity investments, when the Group has
jointly control, or significant influence on the investee enterprise. Joint control is the
contractually agreed sharing of control over an economic activity, and exists only when the
strategic financial and operating decisions relating to the activity require the unanimous consent
of the parties sharing control (the venturers). Significant influence is the power to participate in
the financial and operating policy decisions of an economic activity but is not control or joint
control over those policies.
Under equity method, when the initial investment cost of a long-term equity investment
exceeds the investing enterprise’s interest in the fair values of the investee’s identifiable net
assets at the acquisition date, the difference is accounted for as an initial cost. As to the initial
investment cost is less than the investing enterprise’s interest in the fair values of the investee’s
identifiable net assets at the acquisition date, the difference shall be charged to the income
statement for the current period, and the cost of the long-term equity investment shall be
adjusted accordingly.
99
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
12. Long-term equity investments (continued)
Under equity method, the Group recognizes its share of post-acquisition equity in the investee
enterprise for the current period as a gain or loss on investment, and also increases or decreases
the carrying amount of the investment. When recognizing its share in the net profit or loss of the
investee entities, the Group should, based on the fair values of the identifiable assets of the
investee entity when the investment is acquired, in accordance with the Group’s accounting
policies and periods, after eliminating the portion of the profits or losses, arising from internal
transactions with joint ventures and associates, attributable to the investing entity according to
the share ratio (but losses arising from internal transactions that belong to losses on the
impairment of assets, should be recognized in full), recognize the net profit of the investee
entity after making appropriate adjustments. The book value of the investment is reduced to the
extent that the Group’s share of the profit or cash dividend declared to be distributed by the
investee enterprise. However, the share of net loss is only recognized to the extent that the book
value of the investment is reduced to zero, except to the extent that the Group has incurred
obligations to assume additional losses. The Group shall adjust the carrying amount of the
long-term equity investment for other changes in owners’ equity of the investee enterprise
(other than net profits or losses), and include the corresponding adjustments in equity, which
should be realized through profit or loss in subsequent settlement of the respective long-term
investment.
On settlement of a long-term equity investment, the difference between the proceeds actually
received and the carrying amount shall be recognized in the income statement for the current
period. As to other comprehensive income recognized based on measurement of the original
equity investment by employing the equity method, accounting treatment shall be made on the
same basis as would be required if the invested entity had directly disposed of the assets or
liabilities related thereto when measurement by employing the equity method is terminated. As
to any change in owners' equity of the invested entity other than net profit or loss, other
comprehensive income and profit distribution, the investing party shall be transferred to the
income statement for the current period. If the remaining equities still be measured under the
equity method, accumulative change previously recorded in other comprehensive income shall
be transferred to current profit or loss, in measurement on the same basis as the invested entity
had directly disposed of the assets or liabilities related thereto. The income or loss recorded in
the equity directly should been transferred to the current income statement on settlement of
the equity investment on the disposal proportion.
100
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
13. Investment property
Investment property are properties held to earn rentals or for capital appreciation, or both,
including rented land use right, land use right which is held and prepared for transfer after
appreciation, and rented building.
The initial measurement of the investment property shall be measured at its actual cost. The
follow-up expenses pertinent to an investment property shall be included in the cost of the
investment property, if the economic benefits pertinent to this real estate are likely to flow into
the enterprise, and, the cost of the investment property can be reliably measured. Otherwise,
they should be included in the current profits and losses upon occurrence.
The group adopts the cost method to make follow-up measurement to the investment property.
The buildings are depreciated under straight-line method.
14. Fixed assets
A fixed asset probably shall be recognized only when the economic benefits associated with the
asset will flow to the Group and the cost of the asset can be measured reliably. Subsequent
expenditure incurred for a fixed asset that meet the recognition criteria shall be included in the
cost of the fixed asset, and the book value of the component of the fixed asset that is replaced
shall be derecognized. Otherwise, such expenditure shall be recognized in the income statement
in the period during which they are incurred.
Fixed assets are initially measured at actual cost on acquisition. The cost of a purchased fixed
asset comprises the purchase price, relevant taxes and any directly attributable expenditure for
bringing the asset to working condition for its intended use, such as delivery and handling costs,
installation costs and other surcharges.
Fixed assets are depreciated on straight-line basis. The estimated useful lives, estimated residual
values and annual depreciation rates for each category of fixed assets are as follows:
Yearly deprecation
Category Deprecation period Residual rate (%)
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 12 years 3% 8.08%-24.25%
Others 3 to 21 years 3% 4.62%-32.33%
Note: the moulds in machinery should be depreciated in units-of-production method.
The Group reviews the useful life and estimated net residual value of a fixed asset and the
depreciation method applied at least at the end of each year and makes adjustments if
necessary.
101
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
15. Construction in progress
The cost of construction in progress is determined according to the actual expenditure for the
construction, including all necessary construction expenditure incurred during the construction
period, borrowing costs that should be capitalized before the construction reaches the condition
for intended use and other relevant expenses.
Construction in progress is transferred to fixed assets when the asset is ready for its intended
use.
16. Borrowing costs
Borrowing costs are interest and other costs incurred by the Group in connection with the
borrowing of the funds. Borrowing costs include interest, amortization of discounts or premiums
related to borrowings, ancillary costs incurred in connection with the arrangement of
borrowings, and exchange differences arising from foreign currency borrowings.
The borrowing costs that are directly attributable to the acquisition, construction or production
of a qualifying asset are capitalized, otherwise the borrowing costs are expensed in the period
during which they are incurred. A qualifying asset is an asset (an item of property, plant and
equipment and inventory etc.) that necessarily takes a substantial period of time to get ready for
its intended use of sale.
The capitalization of borrowing costs are as part of the cost of a qualifying asset shall commence
when:
1) expenditure for the asset is being incurred;
2) borrowing costs are being incurred; and
3) activities that are necessary to prepare the asset for its intended use or sale are in
progress.
Capitalization of borrowing costs shall be ceased when substantially all the activities necessary
to prepare the qualifying asset for its intended use or sale have been done. And subsequent
borrowing costs are recognized in the income statement.
During the capitalization period, the amount of interest to be capitalized for each accounting
period shall be determined as follows:
102
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
16. Borrowing costs (continued)
1) where funds are borrowed for a specific-purpose, the amount of interest to be capitalized
is the actual interest expense incurred on that borrowing for the period less any bank
interest earned form depositing the borrowed funds before being used on the asset or
any investment income on the temporary investment of those funds;
2) where funds are borrowed for a general-purpose, the amount of interest to be capitalized
on such borrowings is determined by applying a weighted average interest rate to the
weighted average of the excess amounts of cumulative expenditure on the asset over and
above the amounts of specific-purpose borrowings.
During the construction or manufacture of assets that are qualified for capitalization, if
abnormal discontinuance, other than procedures necessary for their reaching the expected
useful conditions, happens, and the duration of the discontinuance is over three months, the
capitalization of the borrowing costs is suspended. Borrowing costs incurred during the
discontinuance are recognized as expense and charged to the income statement of the current
period, till the construction or manufacture of the assets resumes.
17. Intangible assets
An intangible asset probably shall be recognized only when the economic benefits associated
with the asset will flow to the Group and the cost of the asset can be measured reliably.
Intangible assets are initially measured at cost. The cost of intangible assets acquired in a
business combination is the fair value as at the date of acquisition, if the fair value can be reliably
measured.
The useful life of the intangible assets shall be assessed according to the estimated beneficial
period expected to generate economic benefits. An intangible asset shall be regarded as having
an indefinite useful life when there is no foreseeable limit to the period over which the asset is
expected to generate economic benefits for the Group.
The useful lives of the intangible assets are as follow:
Useful life
Land use right 22 to 50 years
Software 2 years
Trademark 10 years
Non-patent technology 5 years
103
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
17. Intangible assets (continued)
Land use rights that are purchased or acquired through the payment of land use fees are
accounted for as intangible assets. With respect to self-developed properties, the corresponding
land use right and buildings should be recorded as intangible and fixed assets separately. As to
the purchased properties, if the reasonable allocation of outlays cannot be made between land
and buildings, all assets purchased will be recorded as fixed assets. The cost of a finite useful life
intangible asset is amortized using the straight-line method during the estimated useful life. For
an intangible asset with a finite useful life, the Group reviews the estimated useful life and
amortization method at least at the end of each year and adjusts if necessary.
The Group should test an intangible asset with an indefinite useful life for impairment by
comparing its recoverable amount with its carrying amount annually, whenever there is an
indication that the intangible asset may be impaired. An intangible asset with an indefinite
useful life shall not be amortized.
The useful life of an intangible asset that is not being amortised shall be reviewed each period to
determine whether events and circumstances continue to support an indefinite useful life
assessment for that asset. If there are indicators that the intangible asset has finite useful life,
the accounting treatment would be in accordance with the intangible asset with finite useful life.
18. Research and development expenditures
The Group classified the internal research and development expenditures as follows: research
expenditures and development cost.
The expenditures in research stage are charged to the current income on occurrence.
The expenditures in development stage are capitalized that should meet all the conditions of (a)
it is technically feasible to finish intangible assets for use or sale; (b) it is intended to finish and
use or sell the intangible assets; (c) the usefulness of methods for intangible assets to generate
economic benefits shall be proved, including being able to prove that there is a potential market
for the products manufactured by applying the intangible assets or there is a potential market
for the intangible assets itself or the intangible assets will be used internally; (d) it is able to
finish the development of the intangible assets, and able to use or sell the intangible assets, with
the support of sufficient technologies, financial resources and other resources; and (e) the
development expenditures of the intangible assets can be reliably measured. Expenses incurred
that don’t meet the above requirements unanimously should be expensed in the income
statement of the reporting period.
The Group discriminates between research and development stage with the condition that the
project research has been determined, in which the relevant research complete all the
fractionalization of products measurements and final product scheme under final approval of
management. The expenditures incurred before project-determination stage is charged to the
current income, otherwise it is recorded as development cost.
104
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
19. Long-term deferred expenses
The long-term deferred expenses represent the payment for the improvement on buildings and
other expenses, which have been paid and should be deferred in the following years. Long-term
deferred expenses are amortized on the straight-line basis over the expected beneficial period
and are presented at actual expenditure net of accumulated amortization.
20. Contingent liabilities
Except contingent liability recognized in a business combination, the Group recognizes an
contingent liability when the obligation arising from a contingency meets the following
conditions:
1) the obligation is a present obligation of the Group;
2) it is probable that an outflow of economic benefits from the Group will be required to
settle the obligation;
3) a reliable estimate can be made of the amount of the obligation.
Contingent liabilities are initially measured according to the current best estimate for the
expenditure necessary for the performance of relevant present obligations, with comprehensive
consideration given to factors such as the risks, uncertainty and time value of money relating to
contingencies. The book value of the contingent liabilities should be reviewed at each balance
sheet date. If there is objective evidence showing that the book value cannot reflect the present
best estimate, the book value should be adjusted according to the best estimate.
105
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
21. Revenue
Revenue is recognized only when an inflow of economic benefits is probable, the amount of
which can be reliably measured, and all of the following conditions are qualified.
Revenue from the sale of goods
The Group has transferred to the buyer the significant risks and rewards of ownership of the
goods; the Group retains neither continuing management involvement to the degree usually
associated with ownership nor effective control over the goods sold; and the amount of revenue
can be measured reliably. The proceeds earned from sales of goods are determined based on the
amount received or receivable as stipulated in the contract or agreement, otherwise the amount
is not fair; If the amount received or receivable as stipulated in the contract or agreement is
collected in a defer method, it includes the financing elements and should be determined
according to the fair value of the amount received or receivable as stipulated in the contract or
agreement.
Revenue from the rendering of services
When the outcome of a transaction involving the rendering of services can be estimated reliably
at the balance sheet date, revenue associated with the transaction is recognized using the
percentage of completion method, or otherwise, the revenue is recognized to the extent of
costs incurred that are expected to be recoverable. The outcome of a transaction involving
rendering of services can be estimated reliably when all of the following conditions are satisfied:
the amount of revenue can be measured reliably; it is probable that the associated economic
benefits will flow into the Group; the stage of completion of the transaction can be measured
reliably; and the costs incurred and to be incurred for the transaction can be measured reliably.
The Group determines the stage of completion of a transaction involving the rendering of
services by using the proportion of services performed to date to the total services to be
performed. The total amount of revenue earned from rendering service are determined based
on the amount received or receivable as stipulated in the contract or agreement, otherwise the
amount is not fair.
Interest income
It should be measured based on the length of time for which the Group’s cash is used by others
and the applicable effective interest rate.
Royalty income
Royalty income is recognized according to the agreed time and method by both parties in
related contracts.
Rental income
Rental income from operating leases is recognized by the lesser in the income statement on a
straight-line basis over the lease term. The contingent rents shall be recorded in the profits and
losses of the period in which they actually arise.
106
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
22. Government grants
A government grant is recognized only when there is reasonable assurance that the entity will
comply with any conditions attached to the grant and the grant will be received. Monetary
grants are accounted for at received or receivable amount. Non-monetary grants are accounted
for at fair value. If there is no reliable fair value available, the grants are accounted for at nominal
amount.
A government grant which is specified by the government documents to be used to purchase
and construct the long-term assets shall be recognized as the government grant related to
assets. A government grant which is not specified by the government documents shall be
judged based on the basic conditions to obtain the government grant. The one whose basic
condition was to purchase and construct the long-term assets shall be recognized as the
government grant related to assets.
The other government grant shall be recognized as the government grant related to gain. A
grant relating to income, which as compensation for future costs, is recognized as deferred
income initially, and as income when the related cost incurs. The grant as compensation for
costs already incurred should be recognized as income for the current period. A grant relating to
assets is recognized as deferred income initially, and as income evenly among the useful life of
the related assets. The grant accounted for at nominal amount is recognized as income for the
current period.
23. Leases
A finance lease is a lease that transfers in substance all the risks and rewards incident to
ownership of an asset. An operating lease is a lease other than a finance lease.
The Group recording the operating lease as a lessee
Lease payments under an operating lease are recognized by a lessee on a straight-line basis over
the lease term, and either included in the cost of another related asset or charged to the income
statement for the current period. The contingent rents shall be recorded in the profits and losses
of the period in which they actually arise.
The Group recording the operating lease as a lessor
Rental income from operating leases is recognized by the lesser in the income statement on a
straight-line basis over the lease term. The contingent rents shall be recorded in the profits and
losses of the period in which they actually arise.
24. Employee benefits
Employee benefits refer to all kinds of remunerations or compensation made by enterprises to
their employees in exchange for services provided by the employees or termination of labor
relation. Employee compensation includes short-term compensation and post-employment
benefits. The benefits offered by enterprises to the spouse, children, the dependants of the
107
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
24. Employee benefits(continued)
employee, the family member of deceased employee and other beneficiaries are also employee
compensation.
Short-term employee salaries
During the accounting period of employee rendering service, the actural employees salaries and
are charged to the statement of profit or loss as they become payable in balance sheet.
Post-employment benefits (Defined contribution plans)
The employees of the Group participate in pension insurance, which is managed by local
government and the relevant expenditure, is recognized, when incurred, in the costs of relevant
assets or the profit and loss for the current period.
Post-employment benefits (Defined benefit plan)
The Group operates a defined benefit pension plan which requires contributions to be made to a
separately administered fund. The benefits are unfunded. The cost of providing benefits under
the defined benefit plan is determined using the projected unit credit actuarial valuation
method.
Remeasurements arising from defined benefit pension plans are recognised immediately in the
consolidated statement of financial position with a corresponding debit or credit to retained
profits through other comprehensive income in the period in which they occur.
Remeasurements are not reclassified to profit or loss in subsequent periods.
Past service costs are recognised in profit or loss at the earlier of: the date of the plan
amendment or curtailment; and the date that the Group recognises restructuring-related costs
Net interest is calculated by applying the discount rate to the net defined benefit liability or
asset. The Group recognises the following changes in the net defined benefit obligation under
administrative expenses in the consolidated statement of profit or loss by function: service
costs comprising current service costs, past-service costs, gains and losses on curtailments and
non-routine settlements;net interest expense or income
Termination benefits
Termination benefits are recognised at the earlier of when the Group can no longer withdraw the
offer of those benefits and when the Group recognises restructuring costs involving the
payment of termination benefits.
Other long-term employee benefits
Other long-term employee benefits provided to employee were recognized and measured as
other long-term employee benefits net liabilities or net assets according to relevant
post-employement rules. While subsequent variations are charged to the statement of profit or
loss or the cost of relevant assets.
108
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
25. Income taxes
Income tax comprises current and deferred tax. Income tax is recognized as an income or an
expense and include in the income statement for the current period, except to the extent that
the tax arises from a business combination or if it relates to a transaction or event which is
recognized directly in equity.
Current income tax liabilities or assets for the current and prior periods, are measured at the
amount expected to be paid (or recovered) according to the requirements of tax laws.
For temporary differences at the balance sheet date between the tax bases of assets and
liabilities and their carrying amounts, and temporary differences between the carrying amounts
and the tax bases of items, the tax bases of which can be determined for tax purposes, but which
have not been recognized as assets and liabilities, deferred taxes are provided using the liability
method.
A deferred tax liability is recognized for all taxable temporary differences, except:
(1) to the extent that the deferred tax liability arises from the initial recognition of goodwill
or the initial recognition of an asset or liability in a transaction which contains both of the
following characteristics: the transaction is not a business combination and at the time of
the transaction, it affects neither the accounting profit nor taxable profit or loss.
(2) in respect of taxable temporary differences associated with investments in subsidiaries,
associates and interests in jointly-controlled enterprises, where the timing of the reversal
of the temporary differences can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future.
A deferred tax asset is recognized for deductible temporary differences, carry forward of unused
tax credits and unused tax losses, to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences, and the carry forward of unused
tax credits and unused tax losses can be utilized except:
(1) where the deferred tax asset relating to the deductible temporary differences arises from
the initial recognition of an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss; and
(2) in respect of deductible temporary differences associated with investments in
subsidiaries, associates and interests in joint ventures, deferred tax assets are only
recognized to the extent that it is probable that the temporary differences will reverse in
the foreseeable future and taxable profit will be available against which the temporary
differences can be utilized.
109
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
25. Income taxes (continued)
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that
are expected to apply to the period when the asset is realized or the liability is settled, according
to the requirements of tax laws. The measurement of deferred tax assets and deferred tax
liabilities reflects the tax consequences that would follow from the manner in which the Group
expects at the balance sheet date, to recover the assets or settle the liabilities.
At the balance sheet date, the Group reviews the book value of deferred tax assets. If it is
probable that sufficient taxable income cannot be generated to use the tax benefits of deferred
tax assets, the book value of deferred tax assets should be reduced. When it is probable that
sufficient taxable income can be generated, the amount of such reduction should be reversed.
When it is probable that sufficient taxable income can be generated, the amount of such
reduction should be reversed
26. Impairment of assets
The Group determines the impairment of assets, other than the impairment of inventory,
deferred income taxes, and financial assets, using the following methods:
The Group assesses at the balance sheet date whether there is any indication that an asset may
be impaired. If any indication exists that an asset may be impaired, the Group estimates the
recoverable amount of the asset and performs impairment tests. Goodwill arising from a
business combination and an intangible asset with an indefinite useful life are tested for
impairment at least at the end of every year, irrespective of whether there is any indication that
the asset may be impaired. An intangible asset which is not ready for its intended use is tested
for impairment at least at the end of every year.
The recoverable amount of an asset is the higher of its fair value less costs to sell and the present
value of the future cash flow expected to be derived from the asset. The Group estimates the
recoverable amount on an individual basis. If it is not possible to estimate the recoverable
amount of the individual asset, the Group determines the recoverable amount of the asset
group to which the asset belongs. Identification of an asset group is based on whether major
cash flows generated by the asset group are independent of the cash flows from other assets or
asset groups.
When the recoverable amount of an asset or asset group is less than its carrying amount, the
carrying amount is reduced to the recoverable amount. The impairment of asset is provided for
and the impairment loss is recognized in the income statement for the current period.
For the purpose of impairment testing, the carrying amount of goodwill acquired in a business
combination is allocated, on a reasonable basis, to related asset groups; if it is impossible to
allocate to the related asset groups, it is allocated to each of the related sets of asset groups.
Each of the related asset groups or related sets of asset groups is a group or set of asset group
that is able to benefit from the synergies of the business combination and shall not be larger
than a reportable segment determined by the Group.
110
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
26. Impairment of assets (continued)
When an impairment test is conducted on an asset group or a set of asset groups that contains
goodwill, if there is any indication of impairment, the Group firstly tests the asset group or the
set of asset groups excluding the amount of goodwill allocated for impairment, i.e., it
determines and compares the recoverable amount with the related carrying amount and then
recognize impairment loss if any. Thereafter, the Group tests the asset group or set of asset
groups including goodwill for impairment, the carrying amount (including the portion of the
carrying amount of goodwill allocated) of the related asset group or set of asset groups is
compared to its recoverable amount. If the carrying amount of the asset group or set of asset
groups is higher than its recoverable amount, the amount of the impairment loss is firstly
eliminated by and amortized to the book value of the goodwill included in the asset group or set
of asset groups, and then eliminated by the book value of other assets according to the
proportion of the book values of assets other than the goodwill in the asset group or set of asset
groups.
Once the above impairment loss is recognized, it cannot be reversed in subsequent periods.
27. Profit distribution
The cash dividend of the Group is recognized as liabilities after the approval of general meeting
of stockholders.
28. Safety fund
The safety fund extracted by the Group shall be recognized as the cost of the related products or
income statement, while be recognized as special reserve. When using safety fund, it shall be
distinguished whether it will form fixed assets or not. The expenditure shall write down the
special reserve; the capital expenditure shall be recognized as fixed assets when meet the
expected conditions for use, and write down the special reserve while recognizing accumulated
depreciation with the same amount.
29. Fair value measurement
The Group measures its equity investments at fair value at the end of each reporting period.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either in the principal market for the asset or liability, or in the absence of a
principal market, in the most advantageous market for the asset or liability. The principal or
the most advantageous market must be accessible by the Group. The fair value of an asset or a
liability is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their economic best interest.
111
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
29. Fair value measurement (continued)
A fair value measurement of a non-financial asset takes into account a market participant’s
ability to generate economic benefits by using the asset in its highest and best use or by selling it
to another market participant that would use the asset in its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorised within the fair value hierarchy, described as follows, based on the lowest level
input that is significant to the fair value measurement as a whole: Level 1 – based on quoted
prices (unadjusted) in active markets for identical assets or liabilities; Level 2 – based on
valuation techniques for which the lowest level input that is significant to the fair value
measurement is observable, either directly or indirectly; Level 3 – based on valuation techniques
for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognised in the financial statements on a recurring basis, the
Group determines whether transfers have occurred between levels in the hierarchy by
reassessing categorisation (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
30. Significant accounting judgments and estimates
The preparation of financial statements requires management to make judgments, estimates
and assumptions that affect the amounts and disclosures of revenues, expenses, assets and
liabilities, and the disclosure of contingent liabilities, at the balance sheet date. However,
uncertainty about these assumptions and estimates could result in outcomes that could require
a material adjustment to the carrying amounts of the assets or liabilities affected in the future.
Judgments
In the process of applying the Group’s accounting policies, management has made the following
judgments which have significant effect on the financial statements:
Operating leases - as lessor
The Group has entered into commercial property leases on its investment property portfolio.
The Group has determined, based on an evaluation of the terms and conditions of the
arrangements, that it retains all the significant risks and rewards of ownership of these
properties which are leased out on operating leases.
112
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
30. Significant accounting judgments and estimates (continued)
Uncertainty of accounting estimates
The crucial assumptions of significant accounting estimates in future and other crucial sources
of estimated uncertainty, which may result in the significant adjustments to the book value of
the subsequent accounting period, are as the following:
Impairment of available-for-sale
The Group classifies certain assets as available for sale and recognises movements of their fair
values in equity. When the fair value declines, management makes assumptions about the
decline in value to determine whether there is an impairment that should be recognized in the
income statement
Impairment of non-current assets other than financial assets (goodwill excluded)
The Group assesses at each reporting date whether there is an indication that non-current assets
other than financial assets may be impaired. If there is any sign of possible assets impairment,
the assets concerned should be subject to impairment test. When the carrying amount of an
asset or the relevant assets group exceeds its recoverable amount which is the higher one of the
net amount of the fair value of the asset minus the disposal expenses and the present value of
the expected future cash flow of the asset, the asset is considered impaired. The fair value minus
the disposal expenses is determined by reference to the recent market transactions price or
observed market price less any directly attributable expenditure for disposing. When making an
estimate of the present value of the future cash flow of an asset, the Group should estimate the
future cash flows of the asset or the relevant assets group, with the appropriate discount rate
selected to reflect the present value of the future cash flows.
Bad debt provisions
Provisions are made under the allowance method. For each individually significant receivable,
the impairment test should be conducted individually. Where there is evidence that indicates
impairment, the loss should be recognized with the respective provision accrued, equaling to the
difference between the present value of the future cash flows and the book value of receivables.
For other receivables concerned, management should accrue the general provisions, along with
the receivables individually tested while no impairment incurred, taking in account the
collectability.
Inventory impairment based on the net realizable value
According to accounting policy, inventories shall be measured at the lower of cost and the net
realizable value. Provision for inventories is recognized in the income statement when the cost is
higher than the net realizable value and when the inventories are obsolete and slow-moving.
The Group will reassess whether a single inventory is obsolete, slow-moving or whether the net
realizable value is lower than the inventories’ cost at end of each year.
Development expenditures
When determining the capitalization amount, management should make assumptions such as the
expected cash flows of the assets related, the applicable discount rate and expected benefit period.
113
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
30. Significant accounting judgments and estimates (continued)
Deferred tax assets
The Group should recognize the deferred income tax assets arising from all the existing
unutilized tax deficits and deductible temporary differences to the extent of the amount of the
taxable income which it is most likely to obtain and which can be deducted from the deductible
temporary differences. Enormous accounting judgments, as well as the tax planning are
compulsory for management to estimate the time and amount of prospective taxable profits
and thus determine the appropriate amount of the deferred tax assets concerned.
Warranty
The Group provides warranties on automobile and undertakes to repair or replace items that fail
to perform satisfactorily based on certain pre-determined conditions. Factors that influnces
estimation of related warranty claim incluse: 1) renewal of laws and regulations; 2) quality
promotion of Group products; 3) change of parts and labour cost. In general, the Group records
warranty based on selling volumn and estimated compensatory unit warranty cost, deduction
multiagreed compensation from suppliers. As at balance sheet day, the Groupt launchs
retrospective analysis on warranty carrying amount in consideration of acutral warranty
payment during relative warranty period, and recent trends of producet renovation and
replacement, and further adjustment if necessary. Any increase or decrease in the provision
would affect profit or loss in future years.
Depreciation and amortization
The Group’s management determines the estimated useful lives and residual value of fixed
assets and intangible assets. This estimate is based on the historical experience of actual useful
lives of fixed assets and intangible assets of similar nature and functions. Management will
increase the depreciation and amortization charges where useful lives are less than previously
estimated.
114
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
IV TAXES
1. The major categories of taxes and surcharges
Categories of taxes and surcharges Basis of tax Tax rate
Levy on the taxable sales and rendering of
Value added tax (“VAT”) services, deducted the deductible input 6% or 17%
VAT.
Consumption tax Taxable sales 1%,3% or5%
Business tax Taxable sales 5%
City maintenance and construction tax The turnover taxes paid 5% or7%
Educational surcharge The turnover taxes paid 3%
Local educational surcharge The turnover taxes paid 2%
Corporate income tax Taxable income 15% or25%
2. Tax benefits
In accordance to Circular for Further Implementation of Tax Incentives In the Development of
Western Regions (Cai Shui [2011] No. 58) collectively issued by the ministry of Finance, the
Customs General Administration and the National Taxation Bureau of PRC, from 1 January 2011
to 31 December 2020, enterprises located in the Western Region and engaged in encouraged
business would be entitled to a preferential CIT rate of 15%.. For the year ended 2015, the
Company, Changan Special Sales and Chongqing Changan Automobile Supporting are qualified
to the requirement and acquired permission of the preferential tax rate of 15% from Chongqing
Jiangbei National Tax Bureau (refer to Jiang Fa Gai Ti[2015] No. 135).
As at 4 November 2011, in accordance to Circular of the Administrative Measures for the
Certification of New and High Technology Enterprises (Guo Ke Fa Huo [2008] No. 172) and
Circular of the Working Guidance on the Recognition of Hi-tech Enterprises (Guo Ke Fa Huo
[2008] No. 362), and ratification of Hebei High-Tech Enterprise Recognition Office (Ji Gao Ban
[2014] No. 7), the subsidiaries, Hebei Baoding Changan Bus Co., Ltd. and Hebei Changan
Automobile Co., Ltd. were recognized as Hi-tech enterprises and subjected to the preferential
tax rate of 15%.
115
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
V NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash
Item 2015 2014
Cash 43,967.74 29,174.13
Cash at bank 17,725,877,373.48 9,362,824,743.58
Other cash 309,188,332.99 330,229,580.07
Total 18,035,109,674.21 9,693,083,497.78
As at 31 December 2015, the book value of restricted cash and cash equivalents is
RMB309,188,332.99 (As at 31 December 2014: RMB 330,229,580.07), which was mainly
restricted for the issuance of acceptance bill.
As at 31 December 2015, the cash at bank oversea is equivalent to RMB115,606,099.08 (As at 31
December 2014: RMB48,914,915.75).
Cash at banks earns interest at floating rates based on daily bank deposit rates. Notice deposits
are made for periods of 7 days, and short term time deposits are made for periods of 3 months to
6 months, depending on the cash requirements of the Group, and earn interest at respective
deposit rates.
2. Notes recievable
(1) Classification of notes receivable
Type 2015 2014
Commercial acceptance bill 6,532,799,490.50 6,181,968,926.50
Bank acceptance bill 16,150,296,720.96 11,598,192,736.44
Total 22,683,096,211.46 17,780,161,662.94
(2) Pledged notes receivable
Type 2015 2014
Bank acceptance bill 140,256,135.43 315,248,201.14
As at 31 December 2015 and 2014, notes receivable with above carrying amount were pledged
to issue notes payable.
(3) Endorsed or discounted but unexpired notes receivable as at the end of reporting period
are as follow:
2015 2014
Type
Derecognition Un-derecognition Derecognition Un-derecognition
Commercial
45,000,000.00 - 148,639,535.00 -
acceptance bill
Bank acceptance
2,103,475,070.03 - 6,471,261,656.66 -
bill
Total 2,148,475,070.03 - 6,619,901,191.66 -
116
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
2. Notes recievable (continued)
(4) As at 31 December 2015, there are no notes transferred to accounts receivable due to the
non-acceptance.(As at 31 December 2014:Nil)
3. Accounts receivable
(1) Aging analysis of the accounts receivable as at 31 December 2015 is as follows:
Aging 2015 2014
Within 1 year 816,233,320.25 756,799,693.66
1 to 2 years 57,127,535.84 9,248,881.83
2 to 3 years 8,902,022.00 4,975,294.50
Over 3 years 58,075,538.38 54,774,092.14
Total 940,338,416.47 825,797,962.13
Provision (64,858,859.92) (66,921,771.31)
875,479,556.55 758,876,190.82
The movements in provision for impairment of accounts receivable are as follows:
Deduction
Beginning balance Addition Ending balance
Reversal Write-off
2015 66,921,771.31 4,235,654.20 6,053,510.23 245,055.36 64,858,859.92
2014 62,098,137.00 10,117,961.85 5,294,327.54 - 66,921,771.31
(2) Analysis of accounts receivable by category as at 31 December 2015 is as follows:
2015 2014
Item Balance Provision Balance Provision
Amount % Amount % Amount % Amount %
Individually
significant items
and analyzed 106,141,701.22 11.29 - - 87,504,274.30 10.60 - -
individually for
provision
Accounts receivable analyzed as groups for provision
Group 1. Accounts
receivable
analyzed for
provision
655,787,930.16 69.74 54,821,759.22 8.36 592,279,016.92 71.72 56,639,615.25 9.56
according to
aging analysis
Group 2.
Accounts
receivable from
168,371,684.39 17.90 - - 135,732,514.85 16.44 - -
related parties
Group subtotal 824,159,614.55 87.64 54,821,759.22 6.65 728,011,531.77 88.16 56,639,615.25 7.78
Individually
insignificant items
but analyzed 10,037,100.70 1.07 10,037,100.70 100 10,282,156.06 1.24 10,282,156.06 100
individually for
provision
Total 940,338,416.47 100 64,858,859.92 6.90 825,797,962.13 100 66,921,771.31 8.10
117
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
3. Accounts receivable (continued)
In groups, accounts receivable were analyzed for provision by aging:
2015 2014
Aging Balance Provision Balance Provision
Amount % Amount %
Within 6
535,515,703.25 81.66 - 346,507,993.68 58.50 -
months
6 to 12
20,626,137.08 3.15 1,031,306.85 183,980,746.33 31.07 9,199,037.32
months
Within 1
year 556,141,840.33 84.81 1,031,306.85 530,488,740.01 89.57 9,199,037.32
subtotal
1 to 2
43,659,191.63 6.65 4,365,919.16 6,452,222.91 1.09 645,222.29
years
2 to 3
5,521,200.00 0.84 1,656,360.01 5,109,766.77 0.86 1,532,930.03
years
3 to 4
4,752,350.00 0.72 2,376,175.00 5,392,000.00 0.91 2,696,000.00
years
4 to 5
1,606,750.00 0.25 1,285,400.00 11,349,308.11 1.92 9,079,446.49
years
Over 5
44,106,598.20 6.73 44,106,598.20 33,486,979.12 5.65 33,486,979.12
years
Total 655,787,930.16 100 54,821,759.22 592,279,016.92 100 56,639,615.25
In groups, accounts receivable were analyzed for provision by other methods:
2015 2014
Group
Balance Provision Balance Provision
Accounts
receivable
168,371,684.39 - 135,732,514.85 -
from related
parities
As at 31 December 2015 and 2014, there are no individually significant items analyzed
individually for provision.
(3) In 2015, provision for accounts receivable amounted to RMB 4,235,654.20 has been
accrued (2014: RMB10, 117,961.85). Provision for accounts receivable amounted to RMB6,
053,510.23 has been reversed (2014: 5,294,327.54).
(4) As at 31 December 2015, Provision for accounts receivable amounted to RMB245, 055.36
has been write-off. (2014: Nil).
(5) As at 31 December 2015, acconts receivable from Top 5 clients amounted to RMB
226,567,170.13, accounted for 24.09% of the total accounts receivable (2014：RMB
190,535,124.04，accounted for 23.07% of the total amount).
(6) There is no accounts receivable derecognized due to transfer of financial assets during
2015 (2014: Nil).
118
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
4. Prepayments
(1) Aging analysis of the prepayments is as follows:
2015 2014
Aging
Amount Persentage (%) Amount Persentage (%)
Within 1 year 845,113,206.61 99.19 823,600,044.91 98.08
1 to 2 years 5,057,781.43 0.59 12,594,729.34 1.50
2 to 3 years 1,215,374.60 0.14 3,511,694.49 0.42
Over 3 years 685,431.90 0.08 46,082.72 0.00
Total 852,071,794.54 100.00 839,752,551.46 100.00
(2) As at 31 December 2015, prepayments to Top 5 suppliers amounted to RMB
651,298,713.35, which accounted for 76.44% of the total prepayments (2014: RMB
693,294,668.24, which accounted for 82.56% of the total amount).
5. Interest receivable
Item 2015 2014
Time Deposit 15,295,866.67 22,083,194.44
6、 Dividends receivable
Item 2015 2014
Changan Ford Mazda
23,684,883.31 -
Engine Co., Ltd
7、 Other receivables
(1) Aging analysis of other receivables as at 31 December 2015 is as follows:
2015 2014
Within 1 year 983,626,145.56 231,000,922.88
1 to 2 years 2,665,379.79 6,624,196.29
2 to 3 years 912,249.94 12,232,852.46
Over 3 years 18,542,901.26 14,969,794.22
Total 1,005,746,676.55 264,827,765.85
Provision (4,261,431.15) (4,370,480.35)
1,001,485,245.40 260,457,285.50
Movements of provisions for other receivables are as follows:
Deduction
Beginning balance Addition Ending balance
Reversal Write-off
2015 4,370,480.35 117,953.66 222,002.86 5,000.00 4,261,431.15
2014 30,336,273.49 258,171.94 1,459,695.08 24,764,270.00 4,370,480.35
119
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
7. Other receivables (continued)
(2) Analysis of other receivables by category as at 31 December 2015 is as follows:
2015 2014
Item Balance Provision Balance Provision
Amount % Amount % Amount % Amount %
Individually significant
items and analyzed 812,880,000.00 80.82 - - 123,832,000.00 46.76 - -
individually for provision
Other receivables analyzed as groups for provision
Group 1. Other
receivables analyzed for
provision according to
107,047,831.33 10.64 2,377,217.93 2.22 138,925,510.22 52.46 2,481,267.13 1.79
aging analysis
Group 2. Other
receivables from related 83,934,632.00 8.35 - - 181,042.41 0.07 - -
parties
Group subtotal 190,982,463.33 18.99 2,377,217.93 1.24 139,106,552.63 52.53 2,481,267.13 1.78
individually insignificant
items but analyzed 1,884,213.22 0.19 1,884,213.22 100 1,889,213.22 0.71 1,889,213.22 100
individually for provision
Total 1,005,746,676.55 100 4,261,431.15 0.42 264,827,765.85 100 4,370,480.35 1.65
In groups, other receivables were analyzed for provision by aging:
2015 2014
Aging Balance Balance
Provision Provision
Amount % Amount %
Within 6 months 101,517,856.97 94.83 - 133,122,029.36 95.82 -
6 to 12 months 2,102,465.20 1.96 105,123.25 370,404.77 0.27 18,520.23
Within 1 year
103,620,322.17 96.79 105,123.25 133,492,434.13 96.09 18,520.23
subtotal
1 to 2 years 980,114.30 0.92 98,011.43 1,876,797.77 1.35 187,679.78
2 to 3 years 99,781.94 0.09 29,934.58 1,407,927.71 1.01 422,378.31
3 to 4 years 297,156.91 0.28 148,578.46 372,323.61 0.27 186,161.81
4 to 5 years 274,429.01 0.26 219,543.21 547,500.00 0.39 438,000.00
Over 5 years 1,776,027.00 1.66 1,776,027.00 1,228,527.00 0.89 1,228,527.00
Total 107,047,831.33 100 2,377,217.93 138,925,510.22 100 2,481,267.13
As at 31 December 2015, there are no individually significant items analyzed individually for
provision (2014: Nil).
(3) For the year ended 31 December 2015, provision for other receivables amounted to
RMB117, 953.66 have been accrued (2014: RMB 258,171.94). Provision for other
receivables amounted to RMB222, 002.86 has been reversed (2014: RMB1, 459,695.08).
120
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
7. Other receivables (continued)
(4) For the year ended 31 December 2015, provision for impairment of other receivables
amounted to RMB 5,000.00 has been written off (2014: RMB 24,764,270.00).
(5) An analysis of the other receivables by nature is as follows:
Nature 2015 2014
Energy-saving and new 812,880,000.00 123,832,000.00
energy subsidy
Petty Cash 40,094,907.47 50,696,835.12
Secuity Deposit 8,184,335.73 26,808,048.13
Export rebates 16,208,023.06 15,961,250.16
Others 124,117,979.14 43,159,152.09
Total 1,001,485,245.40 260,457,285.50
(6) As at 31 December 2015, top five debtors of other receivables are as follows:
Proportion of
total other
Debtors Amount Nature Aging Provision
receivables
(%)
Energy-saving and new -
First 416,830,000.00 Within one year 41.44
energy subsidy
Second 396,050,000.00 New energy subsidy Within one year 39.38 -
Third 80,000,000.00 Dispose of assets Within one year 7.95 -
Fourth 8,897,507.26 Pretty Cash Within one year 0.88 -
Fifth 4,259,166.10 Pretty Cash Within one year 0.42 -
Total 906,036,673.36 90.07 -
As at 31 December 2014, top five debtors of other receivables are as follows:
Proportion of
total other
Debtors Amount Nature Aging Provision
receivables
(%)
First 123,832,000.00 Energy-saving subsidy Within two years 46.76 -
Second 19,644,766.13 Lease receivable Within one year 7.42 -
Third 5,725,391.09 Secuity deposit Within one year 2.16 -
Fourth 5,000,000.00 Pretty Cash Within one year 1.89 -
Fifth 3,418,803.42 Pretty Cash Within one year 1.29 -
Total 157,620,960.64 59.52 -
(7) As at 31 December 2015, there is no government grant in due recorded in other receivables
(2014: Nil).
(8) For the year ended 2015, there is no accounts receivable derecognized due to transfer of
financial assets. (2014: Nil).
121
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
8. Inventories
(1) Classification of inventories
2015 2014
Item
Balance Provision Net value Balance Provision Net value
Raw materials 540,301,100.91 112,671,279.09 427,629,821.82 479,605,856.33 43,047,494.14 436,558,362.19
Material in
55,664,733.61 - 55,664,733.61 48,741,864.29 - 48,741,864.29
transit
Work in
468,242,137.94 33,014,300.12 435,227,837.82 666,159,202.60 72,883,429.99 593,275,772.61
progress
Finish goods 7,165,061,259.82 140,838,362.77 7,024,222,897.05 5,378,816,735.63 38,664,885.02 5,340,151,850.61
Consigned
processing 48,430,606.84 - 48,430,606.84 2,157,864.35 - 2,157,864.35
material
Consumables 137,899,234.78 - 137,899,234.78 151,300,767.46 - 151,300,767.46
Total 8,415,599,073.90 286,523,941.98 8,129,075,131.92 6,726,782,290.66 154,595,809.15 6,572,186,481.51
(2) Provision for inventories
2015
Beginning Deduction
Provision
Type balance Reversal Or Written Ending balance
off
Raw materials 43,047,494.14 88,029,180.46 18,405,395.51 112,671,279.09
Work in 72,883,429.99 11,771,059.78 51,640,189.65 33,014,300.12
progress
Finish goods 38,664,885.02 137,496,279.09 35,322,801.34 140,838,362.77
Total 154,595,809.15 237,296,519.33 105,368,386.50 286,523,941.98
2014
Beginning Deduction
Provision
Type balance Reversal Or Written Ending balance
off
Raw materials 117,772,351.55 11,764,669.25 86,489,526.66 43,047,494.14
Work in 53,583,639.35 58,036,377.72 38,736,587.08 72,883,429.99
progress
Finish goods 49,947,251.98 69,041,950.01 80,324,316.97 38,664,885.02
Total 221,303,242.88 138,842,996.98 205,550,430.71 154,595,809.15
(3) Note for inventory provision
The Group assesses whether the cost of inventory is higher than the net realizable value and
makes provision of the difference. Net realizable value is the estimated by selling price in the
ordinary course of business deduct estimated costs in further production to sell and estimated
necessary distribution expense and tax expense. The reversal of inventory provisions are due to
price reboundence of previous impaired inventories by net realizable value test, while written off
of inventory provisions are due to selling off of previous impaired inventories in current year.
122
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
8. Inventories (continued)
Note for the inventory
As at 31 December 2015, 80,122 finished cars are transported to the dealers. According to the
protocol signed among the Group, the bank and the dealer, corresponding car certificates are
pledged in the bank, including: 5,779 cars in Huaxia Bank; 13,175 cars in China Citic Bank; 12,527
cars in China Everbright Bank; 10,675 cars in Bank of Communications Co., Ltd.; 32,402 cars in
China South Industry Group Finance Co., Ltd; 1,955 cars in China Merchants Bank; and 3,609 cars
in Industrial Bank Co., Ltd.
As at 31 December 2014, 62,395 finished cars are transported to the dealers. According to the
protocol signed among the Group, the bank and the dealer, corresponding car certificates are
pledged in the bank, including: 7,189 cars in Huaxia Bank; 12,257 cars in China Citic Bank; 8,923
cars in China Everbright Bank; 3,640 cars in Bank of Communications Co., Ltd.; and 30,386 cars in
China South Industry Group Finance Co., Ltd.
9. Other current assets
Item 2015 2014
Accrual input tax 7,802,783.59 2,835,337.83
Others 1,106,952.85 534,882.00
Total 8,909,736.44 3,370,219.83
10. Available-for-sale financial assets
2015 2014
Item
Book value Provision Net value Book value Provision Net value
Availabl
e-for-sa
le
equity
instrum
ent
Measur
ed at
378,570,000.00 27,120,000.00 351,450,000.00 422,767,500.00 27,120,000.00 395,647,500.00
fair
value
Measur
ed at
179,361,274.00 - 179,361,274.00 148,809,274.00 - 148,809,274.00
historic
al cost
Total 557,931,274.00 27,120,000.00 530,811,274.00 571,576,774.00 27,120,000.00 544,456,774.00
As at 31 December 2015, The available-for-sale equity securities instrument measured at fair
value is 35.50 million ordinary shares of Southwest Securities Co., Ltd. (31 December 2014 17.75
million ordianary shares of Southwest Securities Co., ).
In the year of 2015, on basis of existing share capital as of 30 June 2015, Southwest Securities
transferred capital surplus reserve to new share capital by 10 shares to every 10 shares,
increasing the Group’s unlimited common stock of Southwest Securities to 35.50 million shares.
123
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
10. Available-for-sale financial assets (continued)
Available-for-sale financial assets measured at fair value:
Item 2015 2014
Cost of equity instrument 50,000,000.00 50,000,000.00
Fair value 351,450,000.00 395,647,500.00
Accumulated amount of change
in fair value recorded in other 328,570,000.00 372,767,500.00
comprehensive income
Provision 27,120,000.00 27,120,000.00
Available-for-sale financial assets measured at historical cost:
2015
Shareholding Cash dividend
Book value Provision
Ratio (%) in current year
Item
Beginning Beginning Ending
Addition Disposal Ending balance Addition Disposal
balance balance balance
China South
Industry Group 80,000,000.00 - - 80,000,000.00 - - - - 5.33 52,219,215.31
Finance Co., Ltd.
Chongqing Ante
3,000,000.00 - - 3,000,000.00 - - - - 10.00 -
trading Co., Ltd
Sichuan Glass Co.,
1,809,274.00 - - 1,809,274.00 - - - - 0.64 -
Ltd.
Zhong Fa Lian
Investment Co., 21,000,000.00 - - 21,000,000.00 - - - - 10.00 -
Ltd.
CAERI(Beijing)
automobile
Lightweight
Technology 3,000,000.00 - - 3,000,000.00 - - - - 6.89 -
Research
Institution Co.,
Ltd.
Guoqi Automobile
Power Cell
40,000,000.00 - - 40,000,000.00 - - - - 7.41 -
Research Co.,
Ltd.
United Prosperity
Investment
- 30,552,000 30,552,000.00 5.00
(ShenZhen) Co.,
Ltd
Total 148,809,274.00 30,552,000 - 179,361,274.00 - - - - 52,219,215.31
2014
Book value Provision
Beginning Shareholding Cash dividend in
Item Beginning Ending
balance Addition Disposal Ending balance Addition Disposal Ratio (%) current year
balance balance
China South Industry
Group Finance 80,000,000.00 - - 80,000,000.00 - - - - 5.33 31,252,435.46
Co., Ltd.
Chongqing Ante
3,000,000.00 - - 3,000,000.00 - - - - 10.00 -
trading Co., Ltd
Sichuan Glass Co.,
1,809,274.00 - - 1,809,274.00 - - - - 0.64 -
Ltd.
Zhong Fa Lian
Investment Co., 21,000,000.00 - - 21,000,000.00 - - - - 10.00 -
Ltd.
CAERI(Beijing)
automobile
Lightweight
Technology 3,000,000.00 - - 3,000,000.00 - - - - 6.89 -
Research
Institution Co.,
Ltd.
Guoqi Automobile
Power Cell - 40,000,000.00 - 40,000,000.00 - - - - 7.41 -
Research Co., Ltd.
Total 108,809,274.00 40,000,000.00 - 148,809,274.00 - - - - 31,252,435.46
Provision for available-for-sale financial asstes 2015 2014
Balance at beginning and ending of the year 27,120,000.00 27,120,000.00
124
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
11. Long-term equity investments
2015
Investment income under Other comprehensive Other equity Cash dividends Book value Provision ending
Investee Beginning balance Addition Deduction Provision
equity method income variation declared ending balance balance
Joint Venture
Chongqing Changan
Suzuki Automobile 1,408,273,674.47 - - (197,896,284.99) - 1,504,417.96 - - 1,211,881,807.44 -
Co., Ltd.
Jiangling Holding Co.,
2,334,057,207.68 - - 374,818,810.93 (966,718.09) 734,643.12 2,708,643,943.64 -
Ltd.
Changan Ford
Automobile Co., Ltd. 4,617,363,993.97 - - 8,687,052,398.21 - - (7,800,000,000.00) 5,504,416,392.18 -
Changan Mazda
1,672,590,730.82 - - 825,535,684.82 - - (500,000,000.00) - 1,998,126,415.64 -
Automobile Co., Ltd.
Changan Ford Mazda
720,178,224.15 - - 85,303,345.52 - - (23,684,883.31) - 781,796,686.36 -
Engine Co., Ltd.
Changan PSA 1,795,746,892.81 - - (332,842,518.18) - 1,462,904,374.63 -
Automobiles Co., Ltd.
Associates
Chongqing Xiyi
9,220,184.59 - - (1,708,753.82) - - - - 7,511,430.77 -
Automobile Linkage
Rod Co., Ltd.
Chongqing Changan
66,558,691.97 - - 9,660,693.86 - - - - 76,219,385.83 -
Kuayue Automobile
Co., Ltd.
Chongqing Changan
Kuayue Automobile
- - - - - - - - - -
Sales Co., Ltd.
(note)
Beijing Fang’an taxi
- - - - - - - - - -
Co., Ltd. (note)
Chongqing Auto
- 1,155,000,000.00 - - - - - 1,155,000,000.00 -
Finance Co.,Ltd
Total 12,623,989,600.46 1,155,000,000.00 - 9,449,923,376.35 (966,718.09) 2,239,061.08 (8,323,684,883.31) - 14,906,500,436.49 -
Note: As at 31 December 2015, the Group is not responsible for extral loss from Chongqing Changan Kuayue Automobile Sales Co., Ltd. and Beijing Fang’an
taxi Co., Ltd.. Therefore, when these two associates occurred excess losses, the Group just reduced its correspondent long-term equity investment
to zero, and did not recognize contingent liabilities accordingly.
125
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
11. Long-term equity investments
2014
Investment income Other comprehensive Other equity Cash dividends Book value ending Provision ending
Investee Beginning balance Addition Deduction Provision
under equity method income variation declared balance balance
Joint Venture
Chongqing Changan
Suzuki Automobile 1,422,871,007.19 - (28,024,712.81) 10,299,515.59 - 3,127,864.50 - - 1,408,273,674.47 -
Co., Ltd.
Jiangling Holding Co.,
1,970,068,511.81 - - 363,988,695.87 - - 2,334,057,207.68 -
Ltd.
Changan Ford
5,168,880,471.54 - - 7,148,483,522.43 - - (7,700,000,000.00) 4,617,363,993.97 -
Automobile Co., Ltd.
Changan Mazda
1,165,287,267.32 - - 507,303,463.50 - - - - 1,672,590,730.82 -
Automobile Co., Ltd.
Changan Ford Mazda
599,468,669.92 - - 120,709,554.23 - - - - 720,178,224.15 -
Engine Co., Ltd.
Changan PSA
1,957,257,672.14 - - (161,510,779.33) 1,795,746,892.81 -
Automobiles Co., Ltd.
Associates
Chongqing Xiyi
Automobile Linkage 8,772,039.08 - - 448,145.51 - - - - 9,220,184.59 -
Rod Co., Ltd.
Chongqing Changan
Kuayue Automobile 64,068,246.00 - - 2,490,445.97 - - - - 66,558,691.97 -
Co., Ltd.
Chongqing Changan
Kuayue Automobile
- - - - - - - - - -
Sales Co., Ltd.
(note)
Beijing Fang’an taxi
998,629.64 - - (998,629.64) - - - - - -
Co., Ltd. (note)
Total 12,357,672,514.64 - (28,024,712.81) 7,991,213,934.13 - 3,127,864.50 (7,700,000,000.00) - 12,623,989,600.46 -
126
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
12. Investment property
Cost Model
2015
Item Builidings
2015 2014
Original cost
Beginning 11,819,701.24 11,511,221.65
Transferred from CIP - 308,479.59
Transferred to others 1,769,601.24 -
Ending 10,050,100.00 11,819,701.24
Accumulated depreciation
and amortization
Beginning 2,359,556.20 2,020,594.52
Accrual 226,711.56 338,961.68
Transferred to others 545,863.72 -
Ending 2,040,404.04 2,359,556.20
Impairment Provision
Beginning and Ending - -
Carrying amount
Ending 8,009,695.96 9,460,145.04
Beginning 9,460,145.04 9,490,627.13
As at 31 December 2015, there is no investment property without property certificate (As at 31
December 2014: Nil).
In the year of 2015, the investment property held by the subsidiary, Hebei Baoding Changan Bus
Co., Ltd., has bbeen transferred to owner-occupied property due to expiry of lease contract.
127
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
13. Fixed assets
(1) Details of fixed assets
2015
Item Buildings Machinery Vehicles Other Total
Equipments
Original cost
Beginning 5,720,929,022.47 12,456,413,124.25 105,085,124.78 3,754,783,606.38 22,037,210,877.88
Purchase 81,808,296.79 117,128,705.40 817,554.20 10,718,665.95 210,473,222.34
Transfer from 236,675,656.74 808,105,141.71 6,346,313.77 269,506,388.83 1,320,633,501.05
Construction in
progress
Transfer from 1,769,601.24 - - - 1,769,601.24
Investment
property
Disposal 15,831,339.33 462,920,856.44 9,641,852.13 63,957,371.03 552,351,418.93
Ending 6,025,351,237.91 12,918,726,114.92 102,607,140.62 3,971,051,290.13 23,017,735,783.58
Accumulated
depreciation
Beginning 869,651,467.05 4,499,116,329.67 43,232,776.35 1,463,102,408.02 6,875,102,981.09
Accrual 229,475,954.02 1,042,676,250.10 11,754,212.68 335,127,515.28 1,619,033,932.08
Transfer from 545,863.72 - - - 545,863.72
Investment
property
Disposal 3,341,734.59 148,669,976.61 7,375,385.46 40,795,181.22 200,182,277.88
Ending 1,096,331,550.20 5,393,122,603.16 47,611,603.57 1,757,434,742.08 8,294,500,499.01
Impairment
provision
Beginning 4,998,917.25 546,083,399.27 111,955.65 45,333,828.24 596,528,100.41
Accrual 79,803,326.20 297,876,350.68 8,948,638.94 10,929,580.39 397,557,896.21
Disposal 523,175.53 176,776,467.45 49,059.86 3,739,540.02 181,088,242.86
Ending 84,279,067.92 667,183,282.50 9,011,534.73 52,523,868.61 812,997,753.76
Carrying
amount
Ending 4,844,740,619.79 6,858,420,229.26 45,984,002.32 2,161,092,679.44 13,910,237,530.81
Beginning 4,846,278,638.17 7,411,213,395.31 61,740,392.78 2,246,347,370.12 14,565,579,796.38
128
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
13. Fixed assets (Continued)
(1) Details of fixed assets (Continued)
2014
Item Buildings Machinery Vehicles Other Total
Equipments
Original cost
Beginning 5,328,303,054.21 11,658,837,136.95 104,296,206.24 3,397,802,842.91 20,489,239,240.31
Purchase 15,906,457.03 235,729,864.13 1,881,337.46 37,200,150.49 290,717,809.11
Transfers 390,529,320.65 878,796,589.88 14,310,645.06 460,354,359.89 1,743,990,915.48
Disposal 13,809,809.42 316,950,466.71 15,403,063.98 140,573,746.91 486,737,087.02
Ending 5,720,929,022.47 12,456,413,124.25 105,085,124.78 3,754,783,606.38 22,037,210,877.88
Accumulated
depreciation
Beginning 692,887,200.12 3,744,382,170.71 40,204,107.27 1,179,545,602.51 5,657,019,080.61
Accrual 185,964,907.63 1,052,390,886.15 12,079,240.50 375,795,049.84 1,626,230,084.12
Disposal 9,200,640.70 297,656,727.19 9,050,571.42 92,238,244.33 408,146,183.64
Ending 869,651,467.05 4,499,116,329.67 43,232,776.35 1,463,102,408.02 6,875,102,981.09
Impairment
provision
Beginning 1,440,453.56 419,130,165.95 55,086.70 38,601,942.33 459,227,648.54
Accrual 4,208,463.69 152,059,173.83 56,868.95 29,620,813.72 185,945,320.19
Disposal 650,000.00 25,105,940.51 - 22,888,927.81 48,644,868.32
Ending 4,998,917.25 546,083,399.27 111,955.65 45,333,828.24 596,528,100.41
Carrying
amount
Ending 4,846,278,638.17 7,411,213,395.31 61,740,392.78 2,246,347,370.12 14,565,579,796.38
Beginning 4,633,975,400.53 7,495,324,800.29 64,037,012.27 2,179,655,298.07 14,372,992,511.16
(2) Fixed assets that are temporarily unused
2015
Item Original cost Accumulated depreciation Impairment provision Carrying amount
Buildings 76,173,039.74 26,050,123.71 26,369,104.88 23,753,811.15
Machinery 759,630,049.43 421,391,601.73 336,485,331.27 1,753,116.43
Vehicles 11,119,022.00 2,245,415.51 8,873,188.05 418.44
Other 70,845,194.36 33,072,928.44 37,461,079.13 311,186.79
Equipments
Total 917,767,305.53 482,760,069.39 409,188,703.33 25,818,532.81
2014
Item Original cost Accumulated depreciation Impairment provision Carrying amount
Buildings 36,615,885.46 11,877,600.90 - 24,738,284.56
Machinery 679,453,239.72 298,095,420.08 381,179,932.77 177,886.87
Vehicles 78,185.00 4,738.02 73,446.98 -
Other 51,246,872.17 26,548,842.29 24,270,384.58 427,645.30
Equipments
Total 767,394,182.35 336,526,601.29 405,523,764.33 25,343,816.73
(3) As at 31 December 2015, there is no fixed assets which are rented in under finance leases,
rented out under operating leases, or held for sale (As at 31 December 2014: Nil).
129
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
13. Fixed assets (continued)
(4) Fixed assets without property certificate as at 31 December 2015 are as follow:
Item Carrying amount Reason for incomplete certificate of title
Assemble plant 136,097,970.93 In process
Other plant 95,451,396.94 In process
Painting plant 88,284,174.22 In process
Factory road 81,054,902.18 In process
Yu Zui Auto City 80,811,204.90 Project not settled
Welding plant I 59,150,490.59 In process
Office building 57,090,295.07 In process
Stamping plant 56,784,355.59 In process
Other facilities 48,874,207.34 In process
EACasting workshop Phase I 43,390,685.16 In process
Test road 37,260,363.34 In process
Car park 37,227,683.39 In process
Second plant and public building 33,934,219.30 In process
Engine workshop 33,848,147.03 In process
Comercial vehicle workshop 31,741,927.93 In process
Technology center workshop 16,688,009.79 In process
Buildings in testing projects of
In process
Dianjiang 10,971,489.07
Warehouse 9,286,437.24 In process
Staff cafeteria 8,903,706.51 In process
130
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
14. Construction in progress
(1) Details of construction in progress
2015 2014
Item
Balance Provision Carrying amount Balance Provision Carrying amount
Mini-bus production
90,984,573.86 - 90,984,573.86 51,532,611.69 - 51,532,611.69
equipment
Yuzui motor city project 758,263,413.23 - 758,263,413.23 56,137,499.36 - 56,137,499.36
Car production equipment 42,051,572.59 - 42,051,572.59 21,154,399.12 - 21,154,399.12
Engine plant 1,324,035,600.35 - 1,324,035,600.35 390,640,806.71 - 390,640,806.71
Vehicle research institution 59,928,820.28 - 59,928,820.28 27,883,151.96 - 27,883,151.96
Vehicle moulds 250,678,762.19 - 250,678,762.19 264,739,352.30 - 264,739,352.30
Light vehicle technical
transformation project of 48,649,227.54 - 48,649,227.54 29,974,950.86 - 29,974,950.86
Baoding Changan bus
Plant for vehicle test project 45,137,091.95 - 45,137,091.95 76,854.40 - 76,854.40
Beijing vehicle construction
85,977,811.61 - 85,977,811.61 232,656,244.67 - 232,656,244.67
project
Production Line for 100,000
- - - 10,458,678.57 10,458,678.57 -
capacity
Engine Base of Nanjing 3,543,517.10 - 3,543,517.10 24,147,569.91 - 24,147,569.91
Yuzui Refitting factory 25,998,204.34 - 25,998,204.34 20,399,257.73 - 20,399,257.73
Car production Project Of
162,436,108.67 - 162,436,108.67 15,630,398.56 - 15,630,398.56
Hefei Changan
Nanjing Welding Technological
44,360,154.14 - 44,360,154.14 23,004,985.36 - 23,004,985.36
transformation project
Others 121,829,149.07 121,829,149.07 116,018,882.61 - 116,018,882.61
Total 3,063,874,006.92 - 3,063,874,006.92 1,284,455,643.81 10,458,678.57 1,273,996,965.24
131
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
14. Construction in progress (continued)
(2) Significant movements of construction in progress in 2015
The project Including:
Accumulated Current Source
Budget Beginning balance Other investments’ Progress of Current
Project Addition Transfer to fixed assets capitalized capitalization of Ending balance
(RMB0,000) (Restated) deduction proportion of construction capitalized
interest rate funds
budget interest
Mini-bus
production 354,098.00 51,532,611.69 128,221,677.95 88,769,715.78 - 41% 41% 412,957.05 - - Raised 90,984,573.86
equipment
Yuzui motor city
426,656.00 56,137,499.36 783,935,378.77 81,809,464.90 - 52% 52% - - - Raised 758,263,413.23
project
Car production -
119,196.00 21,154,399.12 77,695,238.73 56,798,065.26 71% 71% 505,924.12 - - Raised 42,051,572.59
equipment
Engine plant 574,945.00 390,640,806.71 1,057,159,126.46 123,764,332.82 - 79% 79% 12,926,342.81 - - Raised 1,324,035,600.35
Vehicle research -
240,676.00 27,883,152.26 57,649,941.36 25,604,273.34 36% 36% 863,669.92 - - Raised 59,928,820.28
institution
Vehicle moulds 143,000.00 264,739,352.00 108,223,646.46 122,284,236.27 - 75% 75% 3,397,900.43 - - Raised 250,678,762.19
Light vehicle -
technical
transformation
36,838.15 29,974,950.86 67,980,073.31 49,305,796.63 85% 85% - - - Raised 48,649,227.54
project of
Baoding
Changan Bus
Plant for vehicle -
157,122.00 76,854.40 54,900,409.04 9,840,171.49 82% 82% - - Raised 45,137,091.95
test project
Beijing vehicle -
construction 799,629.53 232,656,244.67 401,185,577.14 547,864,010.20 40% 40% - - - Raised 85,977,811.61
project
Engine Base of -
17,750.00 24,147,569.91 34,753,065.04 55,357,117.85 35% 35% - - - Raised 3,543,517.10
Nanjing
Yuzui Refitting -
29,977.00 20,399,257.73 14,083,254.63 8,484,308.02 21% 21% - - Raised 25,998,204.34
factory
Car production -
project of Hefei 94,001.00 15,630,398.56 154,445,026.33 7,639,316.22 18% 18% - - Raised 162,436,108.67
Changan
Nanjing Welding - -
Technological
6,000.00 23,004,985.36 27,687,982.47 6,332,813.69 74% 74% 44,360,154.14
transformation
project
Others - 116,018,882.61 142,590,145.04 136,779,878.58 - 27,646,324.37 - - Raised 121,829,149.07
Total 1,273,996,965.24 3,110,510,542.73 1,320,633,501.05 - 45,753,118.70 - 3,063,874,006.92
132
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
14. Construction in progress (continued)
(2) Significant movements of construction in progress in 2014：
The project Including:
Accumulated Current
Budget Beginning balance Other investments’ Progress of Current Source
Project Addition Transfer to fixed assets capitalized capitalizati Ending balance
(RMB0,000) deduction proportion of construction capitalized of funds
interest on rate
budget interest
Mini-bus
production 133,127.00 50,083,620.26 63,899,939.33 62,416,985.62 33,962.28 86% 86% 412,957.05 - - Raised 51,532,611.69
equipment
Yuzui motor city
228,863.00 3,340,635.09 65,985,148.78 13,188,284.51 - 63% 63% - - - Raised 56,137,499.36
project
Car production
173,359.00 42,419,237.65 170,345,859.68 191,610,698.21 - 44% 44% 505,924.12 - - Raised 21,154,399.12
equipment
Engine plant 561,556.20 90,556,793.45 406,723,165.96 106,551,836.05 87,316.65 62% 62% 12,926,342.81 - - Raised 390,640,806.71
Vehicle research
73,417.00 69,250,097.06 59,081,623.04 100,182,532.48 266,035.36 95% 95% 863,669.92 - - Raised 27,883,152.26
institution
Vehicle moulds 150,727.81 356,844,644.42 108,065,995.25 200,171,287.67 - 76% 82% 3,397,900.43 - - Raised 264,739,352.00
Light vehicle
technical
transformation
27,596.15 56,020,860.61 51,541,526.19 77,587,435.94 - 80% 80% - - - Raised 29,974,950.86
project of
Baoding
Changan Bus
Plant for vehicle
148,556.00 541,058,623.64 197,142,374.96 737,934,680.06 189,464.14 83% 83% - - Raised 76,854.40
test project
Beijing vehicle
construction 257,468.00 40,243,489.44 270,767,602.21 78,354,846.98 - 92% 91% - - - Raised 232,656,244.67
project
Engine Base of
17,750.00 3,113,926.18 22,404,714.10 1,371,070.37 - 15% 15% - - - Raised 24,147,569.91
Nanjing
Yuzui Refitting
29,977.00 6,716,923.97 13,682,333.76 - - 16% 16% - - Raised 20,399,257.73
factory
Car production
project of Hefei 34,660.00 - 72,447,820.97 52,483,463.77 4,333,958.64 2% 2% - - Raised 15,630,398.56
Changan
Others Raised
- 69,124,905.28 192,054,961.68 122,137,793.82 18,205.17 27,646,324.37 117,119.22 5.54% and 139,023,867.97
loans
Total 1,328,773,757.05 1,694,143,065.91 1,743,990,915.48 4,928,942.24 45,753,118.7 117,119.22 1,273,996,965.24
133
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
14. Construction in progress (continued)
(3) Movement of provision for the impairment of construction in progress：
Reform of production line with 100,000 capacity of Hefei Changan in previous years 2015 2014
Beginning Balance 10,458,678.57 10,458,678.57
Addition - -
Deduction 10,458,678.57 -
Ending Balance - 10,458,678.57
In the year of 2015, reform project of production line with 100,000 capacity of Hefei Changan were terminated due to adjustment of the company’s
strategy, therefore provision of the project was written off.
134
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
15. Intangible assets
Details of intangibale assets
2015
Software use Trademark use Non-patent
Item Land use rights Total
rights rights technology
Original cost
Beginning 1,911,997,610.93 312,758,164.35 211,784,400.00 1,855,742,158.83 4,292,282,334.11
Purchase 225,764,753.00 58,723,774.65 - 1,087,360.41 285,575,888.06
Internal - - - 117,658,433.09 117,658,433.09
research and
development
Disposal - 500,408.12 - - 500,408.12
Ending 2,137,762,363.93 370,981,530.88 211,784,400.00 1,974,487,952.33 4,695,016,247.14
Accumulated
amortization
Beginning 145,348,478.79 245,424,542.70 99,923,437.58 825,124,184.29 1,315,820,643.36
Accrual 41,492,871.37 66,985,348.68 18,524,268.90 291,477,042.06 418,479,531.01
Disposal - 451,693.13 - - 451,693.13
Ending 186,841,350.16 311,958,198.25 118,447,706.48 1,116,601,226.35 1,733,848,481.24
Impairment
provision
Beginning - 21,319,804.81 - 76,176,660.79 97,496,465.60
Accrual - - - 20,339,557.63 20,339,557.63
Ending - 21,319,804.81 - 96,516,218.42 117,836,023.23
Carrying
amount
Ending 1,950,921,013.77 37,703,527.82 93,336,693.52 761,370,507.56 2,843,331,742.67
Beginning 1,766,649,132.14 46,013,816.84 111,860,962.42 954,441,313.75 2,878,965,225.15
2014
Software use Trademark use Non-patent
Item Land use rights Total
rights rights technology
Original cost
Beginning 1,355,080,789.00 261,423,962.37 211,784,400.00 1,282,254,915.47 3,110,544,066.84
Purchase 556,916,821.93 51,334,201.98 - 1,929,069.69 610,180,093.60
Internal
research and - - - 571,558,173.67 571,558,173.67
development
Ending 1,911,997,610.93 312,758,164.35 211,784,400.00 1,855,742,158.83 4,292,282,334.11
Accumulated
amortization
Beginning 113,358,628.31 187,007,238.16 79,969,224.29 577,811,832.75 958,146,923.51
Accrual 31,989,850.48 58,417,304.54 19,954,213.29 247,312,351.54 357,673,719.85
Ending 145,348,478.79 245,424,542.70 99,923,437.58 825,124,184.29 1,315,820,643.36
Impairment
provision
Beginning - - - 76,176,660.79 76,176,660.79
Accrual - 21,319,804.81 - - 21,319,804.81
Ending - 21,319,804.81 - 76,176,660.79 97,496,465.60
Carrying
amount
Ending 1,766,649,132.14 46,013,816.84 111,860,962.42 954,441,313.75 2,878,965,225.15
135
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
Beginning 1,241,722,160.69 74,416,724.21 131,815,175.71 628,266,421.93 2,076,220,482.54
As at 31 December 2015, the intangible assets from internal research and development account
for 26.78% of total intangible assets (as at 31 December 2014: 33.15%).
As at 31 December 2015, there is no intangible assets whose certificate of title is not completed
(As at 31 December 2014: Nil).
16. Development expenditure
2015
Addition Deduction
Charged to income
Item Beginning balance Internal research and Recognized as Ending balance
Statement of the
development intangible assets
current year
Automobile
627,845,455.00 649,260,824.50 117,658,433.09 65,985,463.77 1,093,462,382.64
Development
2014
Addition Deduction
Charged to income
Item Beginning balance Internal research and Recognized as Ending balance
Statement of the
development intangible assets
current year
Automobile
685,666,604.48 609,676,788.84 571,558,173.67 95,939,764.65 627,845,455.00
Development
17. Goodwill
2015 and 2014
Addition Deduction
Business
Beginning
Investee combination Ending balance
balance Disposal
under common
control
Hebei Changan Automobile
Co., Ltd.
9,804,394.00 - - 9,804,394.00
Nanjing Changan
Automobile Co., Ltd.
- - - -
Total 9,804,394.00 - - 9,804,394.00
136
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
17. Goodwill (Continued)
Movement of provision for goodwill is as follow:
2015 and 2014
Beginning Addition Deduction
Investee Ending balance
balance Accrual Disposal
Nanjing Changan
73,465,335.00 - - 73,465,335.00
Automobile Co., Ltd.
Due to the accumulated losses of Nanjing Changan Automobile Co., Ltd., provision for related
goodwill has been fully accrued amounted to RMB73,465,335.00.
18. Long-term deferred expenses
2015
Item Beginning Addition Amortization Ending
balance balance
Long-term deferred
1,687,863.32 6,909,549.00 568,601.05 8,028,811.27
expenses
2014
Item Beginning Addition Amortization Ending
balance balance
Long-term deferred
1,410,228.76 728,246.27 450,611.71 1,687,863.32
expenses
19. Deferred tax assets and liabilities
Item 2015 2014
Deductible Deductible
Deferred tax
Deferred tax assets： temporary temporary Deferred tax assets
assets
differences differences
Assets provision 1,098,129,857.31 164,719,478.60 750,544,057.27 112,581,608.59
Accrued expenses
and contingent 4,904,795,207.30 735,719,281.09 3,603,789,292.79 540,568,393.92
liabilities
Unpaid tech
development
expense and 307,647,899.20 46,147,184.88 132,275,013.20 19,841,251.98
advertisement
expense
Deferred income 2,431,191,639.76 364,678,745.96 2,380,309,239.59 357,046,385.94
Unpaid salary and
695,643,337.25 104,346,500.59 851,526,238.10 130,547,132.15
bonus and others
Total 9,437,407,940.82 1,415,611,191.12 7,718,443,840.95 1,160,584,772.58
137
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
19. Deferred tax assets and liabilities (continued)
Item 2015 2014
Taxable
Deferred tax Taxable temporary Deferred tax Deferred tax
temporary
liabilities： differences liabilities liabilities
differences
Available-for-sale
financial assets on
the changes in fair 328,570,000.00 49,285,500.00 372,767,500.00 55,915,125.00
value recorded in
capital reserve
Unrcognized deductible temporary differences and losses of unrecognized are as follows:
Item 2015 2014
The deductible 2,178,503,714.94 1,302,884,550.22
temporary
difference
The deductible loss 2,193,071,173.16 1,948,632,303.10
Total 4,371,574,888.10 3,251,516,853.32
Maturity period for unrcognized deductible temporary differences and losses:
Year 2015 2014
2015 - 1,079,724,831.66
2016 2,238,639,425.96 331,487,480.08
2017 318,076,882.37 318,076,882.37
2018 523,032,727.65 523,032,727.65
2019 852,848,218.99 861,076,441.90
from 2020 onwards 438,977,633.13 138,118,489.66
Total 4,371,574,888.10 3,251,516,853.32
Note: Due to the uncertainty of whether there will be enough taxable profit in future to utilize
the above deductible loss, no deferred tax assets have been recognized accordingly.
20. Provision for the impairment of assets
2015
Deduction Ending
Item Beginning Addition
Reversal Write-off
I. Bad debt provision 71,292,251.66 4,353,607.86 6,275,513.09 250,055.36 69,120,291.07
II. Provision for inventory 154,595,809.15 237,296,519.33 22,955,631.67 82,412,754.83 286,523,941.98
III. Provision for fixed assets 596,528,100.41 397,557,896.21 - 181,088,242.86 812,997,753.76
IV. Provision for intangible assets 97,496,465.60 20,339,557.63 - - 117,836,023.23
V. Provision for construction in progress 10,458,678.57 - - 10,458,678.57 -
VI. Provision for goodwill 73,465,335.00 - - - 73,465,335.00
Total 1,003,836,640.39 659,547,581.03 29,231,144.76 274,209,731.62 1,359,943,345.04
138
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
20. Provision for the impairment of assets (contined)
Note: Accrued provision for fixed assets is mainly due to the abandoned factory and impairment
of machinery and moulds for the discontinued productions this year.
Accrued provision for intangible assets is mainly due to the impairment of the non-patent
technology for the discontinued productions.
Accrued provision for inventory is mainly due to the cost of some types of vehicles and
engines is lower than the net realizable value.
2014
Deduction Ending
Item Beginning Addition
Reversal Write-off
I. Bad debt provision 92,434,410.49 10,376,133.79 6,754,022.62 24,764,270.00 71,292,251.66
II. Provision for inventory 221,303,242.88 138,842,996.98 6,125,183.90 199,425,246.81 154,595,809.15
III. Provision for fixed assets 459,227,648.54 185,945,320.19 - 48,644,868.32 596,528,100.41
IV. Provision for intangible assets 76,176,660.79 21,319,804.81 - - 97,496,465.60
V. Provision for construction in progress 10,458,678.57 - - - 10,458,678.57
VI. Provision for goodwill 73,465,335.00 - - - 73,465,335.00
Total 933,065,976.27 356,484,255.77 12,879,206.52 272,834,385.13 1,003,836,640.39
21. Other non-current assets
Item 2015 2014
Prepayment of land - 60,901,712.09
22. Short-term loans
Classification of short-term loans：
Item 2015 2014
Mortgage loans 50,000,000.00 50,000,000.00
Credit loans - 40,000,000.00
Total 50,000,000.00 90,000,000.00
As at 31 December 2015, the interest rate of the above loans was 5.35% (as at 31 December 2014:
5.90%-6.30%).
As at 31 December 2015, there is no overdued short-term (as at 31 December 2014: Nil).
For the year ended 31 December 2015, the Group obtained short-term loan of
RMB50,000,000.00 and commercial acceptance bill of RMB50,000,000.00 from China South
Industry Group Finance Co., Ltd. The credit was secured by the land use rights amounted to
RMB5,394,177.78, buildings amounted to RMB28,828,344.87, and accounts receivable amounted
to RMB459,208,818.75.
139
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
22. Short-term loans (continued)
For the year ended 31 December 2015, the Group obtained short-term loan of
RMB50,000,000.00 and commercial acceptance bill of RMB50,000,000.00 from China South
Industry Group Finance Co., Ltd. The credit was secured by the land use rights amounted to
RMB5,544,016.02, buildings amounted to RMB30,278,453.44, and accounts receivable
amounted to RMB188,803,148.85.
23. Notes payable
Item 2015 2014
Commercial acceptance bill 53,240,000.00 217,000,000.00
Bank acceptance bill 18,609,660,601.34 12,891,623,397.32
Total 18,662,900,601.34 13,108,623,397.32
As at 31 December 2015, there is no overdued unpaid notes payable (as at 31 December 2014:
Nil)
24. Accounts payable
(1) Accounts payable
Item 2015 2014
Accounts payable 14,973,826,566.55 13,038,793,688.31
(2) As at 31 December 2015, there is no significant accounts payable aged over one year.
25. Advances from customers
(1) Advances from customers
Item 2015 2014
Advances from customers 7,326,612,631.20 5,802,717,284.79
(2) As at 31 December 2015, advances from customers of RMB140,824,174.58 aged over one
year is mainly credit guarantee charged to dealers.
26. Payroll payable
2015
Item Beginning Addition Deduction Ending
Short term salary
953,842,876.88 4,826,693,389.42 4,351,109,703.02 1,429,426,563.28
benefits
Defined
62,967,787.92 424,274,503.64 421,293,975.06 65,948,316.50
contribution plans
Early retirement
5,559,000.00 11,195,438.00 12,515,438.00 4,239,000.00
benefits
Total 1,022,369,664.80 5,262,163,331.06 4,784,919,116.08 1,499,613,879.78
140
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
26. Payroll payable (continued)
2014
Item Beginning Addition Deduction Ending
Short term salary
748,146,430.81 3,752,953,931.38 3,547,257,485.31 953,842,876.88
benefits
Defined
64,538,658.71 332,717,685.98 334,288,556.77 62,967,787.92
contribution plans
Early retirement
7,911,000.00 5,372,000.00 7,724,000.00 5,559,000.00
benefits
Total 820,596,089.52 4,091,043,617.36 3,889,270,042.08 1,022,369,664.80
Short term salary benefits：
2015
Item Beginning Addition Deduction Ending
Salary, bonus,
allowance 692,255,777.18 3,908,889,433.90 3,494,608,788.72 1,106,536,422.36
and subsidy
Employee benefit 170,566,171.82 362,532,273.86 371,959,573.57 161,138,872.11
Social insurance (7,196,563.33) 223,136,354.88 222,061,258.40 (6,121,466.85)
Medical insurance (7,728,238.19) 197,660,046.81 197,025,449.46 (7,093,640.84)
Industrial injury
(1,298,370.98) 14,471,859.72 14,017,554.64 (844,065.90)
insurance
Maternity
1,830,045.84 11,004,448.35 11,018,254.30 1,816,239.89
insurance
Housing
87,857,996.99 238,104,385.29 209,523,116.89 116,439,265.39
accumulation fund
Labor fund and
employee 10,359,494.22 94,030,941.49 52,956,965.44 51,433,470.27
education fund
Total 953,842,876.88 4,826,693,389.42 4,351,109,703.02 1,429,426,563.28
2014
Beginning
Item Addition Deduction Ending
(Restated)
Salary, bonus,
allowance 475,975,263.71 3,078,801,722.05 2,862,521,208.58 692,255,777.18
and subsidy
Employee benefit 199,845,915.15 230,654,422.34 259,934,165.67 170,566,171.82
Social insurance (8,340,240.75) 167,734,161.12 166,590,483.70 (7,196,563.33)
Medical insurance (8,051,064.22) 146,424,856.76 146,102,030.73 (7,728,238.19)
Industrial injury
(867,720.06) 9,576,763.89 10,007,414.81 (1,298,370.98)
insurance
Maternity
578,543.53 11,732,540.47 10,481,038.16 1,830,045.84
insurance
Housing
70,370,340.91 200,333,755.23 182,846,099.15 87,857,996.99
accumulation fund
Labor fund and
employee 10,295,151.79 75,429,870.64 75,365,528.21 10,359,494.22
education fund
Total 748,146,430.81 3,752,953,931.38 3,547,257,485.31 953,842,876.88
141
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
26. Payroll payable (continued)
Defined contribution plans：
2015
Item Beginning Addition Deduction Ending
Basic retirement 57,806,919.53 401,261,518.06 400,857,296.58 58,211,141.01
security
Unemployment 5,160,868.39 23,012,985.58 20,436,678.48 7,737,175.49
insurance
Total 62,967,787.92 424,274,503.64 421,293,975.06 65,948,316.50
2014
Item Beginning Addition Deduction Ending
Basic retirement 64,928,521.93 300,516,615.79 307,638,218.19 57,806,919.53
security
Unemployment (389,863.22) 32,201,070.19 26,650,338.58 5,160,868.39
insurance
Total 64,538,658.71 332,717,685.98 334,288,556.77 62,967,787.92
The salary, bonus, allowance and subsidy, employee benefits and other social insurances
mentioned above are paid in time according to related laws and regulations and sets of the
Group.
27. Taxes payable
Item 2015 2014
Value-added tax (360,750,164.89) (539,064,710.78)
Consumption tax 311,777,113.20 401,279,837.43
Business tax 565,292.82 282,714.01
Corporate income tax 365,940,064.81 141,452,158.87
Individual Income tax 5,211,932.14 1,652,891.26
City maintenance and 16,162,814.08 11,004,722.20
construction tax
Education surcharge 10,880,123.71 7,281,955.73
Others 6,962,020.62 12,134,437.82
Total 356,749,196.49 36,024,006.54
28. Interest payable
Item 2015 2014
Corporate bonds interest 73,458,000.00 73,458,000.00
29. Dividend payable
Item 2015 2014
Dividend payable – Hebei Changan
79,742.80 79,742.80
minority interests
142
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
30. Other payables
(1) Details of other payables
Item 2015 2014
Dealer earnest money 90,495,974.80 80,536,502.50
Warranty 11,414,931.08 166,479,977.35
Repair fees 144,637,609.14 112,281,336.33
Sales rewards 25,811,691.00 -
Advertisement fees 311,636,628.96 371,576,347.22
Warehousing and transport fees 291,730,945.64 366,946,572.75
Integrated service charges and 134,906,227.28 2,933,577.79
miscellaneous expenses
Project funds 628,894,264.49 864,715,976.54
Others 123,346,585.66 41,946,345.10
Total 1,762,874,858.05 2,007,416,635.58
As at 31 December 2015, RMB226,362,841.75 of other payables aged over one year were mainly
security deposits from dealers and suppliers.
31. Contingent liabilities
2015
Item Beginning Addition Deduction Ending
Warranty 1,221,114,880.50 948,932,623.12 528,371,283.47 1,641,676,220.15
2014
Item Beginning Addition Deduction Ending
Warranty 1,117,167,286.59 1,003,462,139.82 899,514,545.91 1,221,114,880.50
Note: Warranty is the estimated repair expenses for the sold vehicles within warranty period.
32. Other current liabilities
Item 2015 2014
Accrued utilities 36,290,509.84 21,061,398.76
Accrued transportation fee 647,225,692.02 415,843,773.77
Accrued labor service fee 59,077,891.33 61,730,677.11
Accrued technology royalty 136,205,899.23 117,420,347.70
Accrued commercial discount 2,351,905,956.34 1,766,670,010.35
payable
Accrued market development 259,403,771.61 172,731,573.72
expense
Accrued extended warranty 344,231,967.52 315,400,000.00
Others 96,557,273.26 51,041,190.27
Total 3,930,898,961.15 2,921,898,971.68
143
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
33. Bonds payables
Item 2015 2014
Corporate bonds 1,975,102,599.85 1,971,184,679.89
With approval of circular Zheng Jian Xu Ke [2012] No. 388 issued by China Securities Regulatory
Commission, the Company issued bonds with the face value of RMB1,980,000,000.00 to the
public. The face interest rate is fixed at 5.30% and the interests shall be repaid annually on 23
April each year. The final redemption date is 23 April 2017. After the deduction of issuance costs
amounted to RMB19,589,600.00, the Company raised RMB1,960,410,400.00 totally. The bond is
guaranteed by China Changan unconditionally and irrevocably.
Bonds payable is measured at amortized cost using the effective interest.
As at 31 December 2015, movement of bonds payables is as follows:
Beginning Accrued interest Amortization Paid interest Ending
Bonds 1,971,184,679.89 104,940,000.00 3,917,919.96 104,940,000.00 1,975,102,599.85
payable
As at 31 December 2014, movement of bonds payables is as follows:
Beginning Accrued interest Amortization Paid interest Ending
Bonds 1,967,266,759.93 104,940,000.00 3,917,919.96 104,940,000.00 1,971,184,679.89
payable
34. Long-term payroll payable
Item 2015 2014
Net obligation of defined 93,775,000.00 31,249,000.00
benefit plan
Early retirement 12,847,000.00 17,068,000.00
Total 106,622,000.00 48,317,000.00
In addition to basic retirement security and unemployment insurance, which are managed by
local government, the Group offers different kinds of overall pension and annual compensation
to some retired employees until their death. The group provides subsidies to former military
personnel who participated in specific wars and offers large medical treatment insurance for all
retired personnel. The group also offered early-retired salary, social insurances and housing
accumulation fund with different standards until their formal retirement (Male: Age 60; Female:
Age 50 or 55). These amounts of social insurances and housing accumulation fund are based on
cost base and statutory proportion.
The present value of the defined benefits planis is valued by expected cumulative welfare units
determination, which was ensured by Mercer, a member of Acturial Society of Hongkong as at
31 December 2015.
144
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
34. Long-term payroll payable (continued)
As at balance sheet day, key actuarial assumptions are as follows:
Discount rate 2015 2014
Retirement Staff 3.0%-3.3% 3.7%~3.8%
Early retirement staff 2.3%-2.6% 3.3%~3.5%
Retirement age
Male 60 60
Female 50/55 50/55
Increase rate of key benefits
Retired employees 0.0%-6.0% 0.0%~4.0%
Early-retired employees 0.0%-4.0% 0.0%~4.0%
The future mortality rate is based on China experience life table of life insurance (2000-2003) “CL
(2000-2003)”, the table is a public statistics in PRC.
The sensitive analyses of key assumption are as follows:
2015
Increase Increase/(Decrease) in Decrease Increase/(Decrease) in
% the obligation of % the obligation of
defined benefits plan defined benefits plan
Discount rate 0.05% (5,841,000.00) 0.05% 5,999,000.00
Increase rate of key
0.05% 5,903,000.00 0.05% (4,818,000.00)
benefits
Mortality rate 5% (2,034,000.00) 5% 2,036,000.00
2014
Increase Increase/(Decrease) in Decrease Increase/(Decrease) in
% the obligation of % the obligation of
defined benefits plan defined benefits plan
Discount rate 0.05% (1,851,000.00) 0.05% 1,586,000.00
Increase rate of key
0.05% 1,640,000.00 0.05% (1,913,000.00)
benefits
Mortality rate 5% (465,000.00) 5% 457,000.00
The sensitive analysis above is based on the deduction to reasonable change of key assumption
as at the balance sheet date. Sensitive analysis is resulted from fluctuation of main assumptions
with other assumptions unchanged. As all assumptions are not isolated from each other,
sensitive analysis shall not represent actual result of obligation of defined benefits plan.
Related costs charged to income statement are as follows：
2015 2014
Service costs- current period 57,000.00 45,000.00
Service costs- prior period 60,381,000.00 2,293,000.00
Net interest - -
Interest costs 4,478,000.00 1,306,000.00
Post employment benefits, net 64,916,000.00 3,644,000.00
Recorded in general administrative expenses 64,916,000.00 3,644,000.00
145
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
34. Long-term payroll payable (continued)
Movement of present value of defined benefits plan is as follows:
Defined Benefit Plan Obligation
2015 2014
Beginning balance 31,249,000.00 26,909,000.00
Charged to income Statement of the current period
Service costs- current period 57,000.00 45,000.00
Service costs- prior period 60,381,000.00 2,293,000.00
Interest expense, net 4,478,000.00 1,306,000.00
Actuarial losses charged to other comprehensive
2,956,000.00 3,134,000.00
income
Benefits Payment (5,346,000.00) (2,438,000.00)
Ending balance 93,775,000.00 31,249,000.00
35. Special payables
2015
Item Beginning Addition Deduction Ending
Project 863 2,001,536.98 1,980,000.00 1,354,364.03 2,627,172.95
Test on key technology of hybrid
4,574,023.58 - 2,249,632.51 2,324,391.07
electric vehicles
New vehicle product 5,927,576.20 800,000.00 64,503.73 6,663,072.47
Automobile product chain
4,753,127.54 2,600,000.00 822,668.10 6,530,459.44
sharing platform
Gasoline Engine Development 5,422,741.44 480,000.00 3,868,907.18 2,033,834.26
Development and
industrialization of the
263,547.70 - - 263,547.70
embedded software platform for
automotive electronic controllers
Changan automobile E class
Gasoline engine cylinder block,
60,460,522.64 - 102,905.00 60,357,617.64
cylinder head production line
project
Land relocation compensation 55,350,709.40 - - 55,350,709.40
Project 973 161,820.82 - - 161,820.82
Automotive order to delivery
475,689.00 2,700,000.00 - 3,175,689.00
system project
Industrialization of patented
1,346,080.00 9,065,000.00 1,740,547.41 8,670,532.59
technologies
Vehicle network intelligent
information terminal middleware
(56,906.30) - 180,507.69 (237,413.99)
key technologies research and
application
Development and
industrialization of C206 pure (8,034,846.50) 2,850,759.00 23,737,970.08 (28,922,057.58)
electric cars
System development of
electromagnetic compatibility of 234,897.06 3,111,500.00 225,713.81 3,120,683.25
key accessories on electric cars
Intalligent manufacturIng project - 30,000,000.00 87,266.70 29,912,733.30
Others 13,755,415.57 6,026,177.66 7,692,605.50 12,088,987.73
Total 146,635,935.13 59,613,436.66 42,127,591.74 164,121,780.05
146
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
35. Special payables(Continued)
2014
Item Beginning Addition Deduction Ending
Project 863 5,204,918.01 6,780,000.00 9,983,381.03 2,001,536.98
Test on key technology of hybrid
4,188,977.29 1,320,000.00 934,953.71 4,574,023.58
electric vehicles
New vehicle product 6,236,251.01 - 308,674.81 5,927,576.20
Automobile product chain sharing
4,810,605.54 - 57,478.00 4,753,127.54
platform
Gasoline Engine Development 5,745,355.86 5,587,800.00 5,910,414.42 5,422,741.44
Development and industrialization of
the embedded software platform for 5,420,449.76 - 5,156,902.06 263,547.70
automotive electronic controllers
Changan automobile E class Gasoline
engine cylinder block, cylinder head 61,420,000.00 - 959,477.36 60,460,522.64
production line project
Land relocation compensation 55,350,709.40 - - 55,350,709.40
Project 973 187,806.82 - 25,986.00 161,820.82
Automotive order to delivery system
475,689.00 - - 475,689.00
project
Industrialization of patented
593,000.00 955,000.00 201,920.00 1,346,080.00
technologies
Vehicle network intelligent information
terminal middleware key technologies 848,115.03 - 905,021.33 (56,906.30)
research and application
Development and industrialization of
52,344,341.83 5,369,240.00 65,748,428.33 (8,034,846.50)
C206 pure electric cars
System development of
electromagnetic compatibility of key 457,826.30 300,000.00 522,929.24 234,897.06
accessories on electric cars
Others 10,346,156.65 6,928,018.33 3,518,759.41 13,755,415.57
Total 213,630,202.50 27,240,058.33 94,234,325.70 146,635,935.13
36. Deferred income
2015
Item Beginning Addition Deduction Ending
Government
grants
2,687,392,181.26 112,341,999.62 137,556,924.92 2,662,177,255.96
related to
assets
Other - 4,366,152.86 - 4,366,152.86
Total 2,687,392,181.26 116,708,152.48 137,556,924.92 2,666,543,408.82
2014
Item Beginning Addition Deduction Ending
Government
grants
2,726,487,939.90 66,698,671.17 105,794,429.81 2,687,392,181.26
related to
assets
147
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
36. Deferred income(Continued)
As at 31 December 2015, details of liabilities related to government grants are as follows:
Recorded to
Item Beginning Addition non-operating Ending Relates to asset/gain
income
Subsidies for the automobile
comprehensive testing ground 571,317,416.66 - 27,015,500.00 544,301,916.66 Relates to asset
project
Funds for Yuzui motor city
255,765,306.12 - 5,683,673.48 250,081,632.64 Relates to asset
project
Funds for Beijing Changan
1,096,809,079.12 - 31,059,112.56 1,065,749,966.56 Relates to asset
project
Funds for technology
16,150,000.00 - - 16,150,000.00 Relates to asset
innovation
Funds for expansion of
production capacity of auto 17,420,000.00 - - 17,420,000.00 Relates to asset
mold
Funds for H series engine 53,333,333.38 - 5,333,333.33 48,000,000.05 Relates to asset
Industry upgrading project for
small displacement engine and
technological transformation 140,551,527.80 - 15,965,833.32 124,585,694.48 Relates to asset
project for CB type engine
production line
Expansion of production
56,192,938.84 - 4,686,606.83 51,506,332.01 Relates to asset
capacity project
Subsidies for the construction
22,700,000.00 - 2,740,000.00 19,960,000.00 Relates to asset
of Hebei new plant
Funds for the project of
Ministry of Industry and 5,000,000.00 - - 5,000,000.00 Relates to asset
Information Technology
Subsidies for engine produce
9,545,952.00 - 165,728.30 9,380,223.70 Relates to asset
base of Nanjing Changan
Light vehicle technical
transformation project of 150,500,647.00 5,000,000.00 6,700,000.00 148,800,647.00 Relates to asset
Baoding Changan Bus
Subsidies for initial capital of
new basebut and research 238,546,198.06 - 28,345,984.68 210,200,213.38 Relates to asset
and development
Premium rebate from
Dingzhou local bureau of 10,900,818.41 - - 10,900,818.41 Relates to asset
finance
Hebei M201 bus production
3,861,111.11 - 333,333.33 3,527,777.78 Relates to asset
plant project
Producitization of automobile
23,697,013.51 - 8,418,370.67 15,278,642.84 Relates to asset
lightweight components
Development and industrial
application of
high-effective and clean 10,022,200.00 1,750,000.00 424,325.85 11,347,874.15 Relates to asset
turbochargeddirect
injection gasoline engine
Development and industrial
application of the
intelligent vehicle terminal 4,990,638.87 - 650,122.53 4,340,516.34 Relates to asset
with Beidou compatible
GPS
Development of the key
technology of the laser
micro texture on the
88,000.38 (88,000.38) - - Relates to asset
surface of energy-efficient
and anti-friction internal
combustion
Engine production restructure
- 100,000,000.00 - 100,000,000.00 Relates to asset
program
Changan Yuzui infrastructure
- 5,380,000.00 - 5,380,000.00 Relates to asset
subsidy
Coal boiler retrofit project - 300,000.00 35,000.04 264,999.96 Relates to asset
Total 2,687,392,181.26 112,341,999.62 137,556,924.92 2,662,177,255.96
148
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
36. Deferred income (continued)
As at 31 December 2014, details of liability related to government grants are as follows
(Restated)：
Recorded to
Relates to
Item Beginning Addition non-operating Ending
asset/gain
income
Subsidies for the automobile
comprehensive testing ground 575,820,000.00 - 4,502,583.34 571,317,416.66 Relates to asset
project
Funds for Yuzui motor city project 261,448,979.59 - 5,683,673.47 255,765,306.12 Relates to asset
Funds for Beijing Changan project 1,127,868,191.68 - 31,059,112.56 1,096,809,079.12 Relates to asset
Funds for technology innovation 16,150,000.00 - - 16,150,000.00 Relates to asset
Funds for expansion of production
17,420,000.00 - - 17,420,000.00 Relates to asset
capacity of auto mold
Funds for H series engine 58,666,666.68 - 5,333,333.30 53,333,333.38 Relates to asset
Industry upgrading project for
small displacement engine and
technological transformation 156,517,361.12 - 15,965,833.32 140,551,527.80 Relates to asset
project for CB type engine
production line
Expansion of production capacity
62,408,576.68 - 6,215,637.84 56,192,938.84 Relates to asset
project
Subsidies for the construction of
25,440,000.00 - 2,740,000.00 22,700,000.00 Relates to asset
Hebei new plant
Funds for the project of Ministry of
Industry and Information 5,000,000.00 - - 5,000,000.00 Relates to asset
Technology
Subsidies for engine produce base
9,545,952.00 - - 9,545,952.00 Relates to asset
of Nanjing Changan
Light vehicle technical
transformation project of Baoding 143,700,647.00 13,000,000.00 6,200,000.00 150,500,647.00 Relates to asset
Changan Bus
Subsidies for initial capital of new
basebut and research and 266,501,565.15 - 27,955,367.09 238,546,198.06 Relates to asset
development
Premium rebate from Dingzhou
- 10,900,818.41 - 10,900,818.41 Relates to asset
local bureau of finance
Hebei M201 bus production
- 4,000,000.00 138,888.89 3,861,111.11 Relates to asset
plant project
Producitization of automobile
- 23,697,013.51 - 23,697,013.51 Relates to asset
lightweight components
Development and industrial
application of high-effective
- 10,022,200.00 - 10,022,200.00 Relates to asset
and clean turbochargeddirect
injection gasoline engine
Development and industrial
application of the intelligent
- 4,990,638.87 - 4,990,638.87 Relates to asset
vehicle terminal with Beidou
compatible GPS
Development of the key
technology of the laser micro
texture on the surface of
- 88,000.38 - 88,000.38 Relates to asset
energy-efficient and
anti-friction internal
combustion
Total 2,726,487,939.90 66,698,671.17 105,794,429.81 2,687,392,181.26
149
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
37. Share capital
Movement
Issuance Stock Transfer of reserve
31 December 2014 Repurchase Others Sub-total 31 December 2015
of shares dividend to common shares
I. Restricted shares
1State-owned shares - - - - - - - -
Shares held by state-owned legal - - - - - -
2 373,358,342 373,358,342
persons
3 Other domestic shares - - - - - - - -
Including:
Shares held by non-state-owned legal - - - - - - - -
persons
Shares held by domestic natural - - - - (4,311) (4,311) 18,900
23,211
person
4 Foreign Shares
Including: - - - - - - - -
Shares held by foreign legal persons - - - - - - - -
Shares held by foreign natural persons
Total of restricted shares 373,381,553 - - - - (4,311) (4,311) 373,377,242
II. Unrestricted shares
1 RMB ordinary shares 3,387,518,413 - - - - 4,311 4,311 3,387,522,724
Foreign-funded shares listed 901,986,142 - - - - - - 901,986,142
2
domestically
3 Foreign-funded shares listed overseas - - - - - - - -
4 Others - - - - - - - -
Total of unrestricted shares 4,289,504,555 - - - 4,311 4,311 4,289,508,866
III. Total shares 4,662,886,108 - - - - - - 4,662,886,108
150
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2014
(Expressed in Renminbi Yuan)
37. Share capital (continued)
2014
Movement
31 December Issuance Stock Transfer of reserve to
Repurchase Others Sub-total 31 December 2014
2013 of shares dividend common shares
I. Restricted shares
1 State-owned shares - - - - - - - -
Shares held by state-owned legal - - - - - -
2 373,358,342 373,358,342
persons
3 Other domestic shares - - - - - - - -
Including:
Shares held by non-state-owned legal - - - - - - - -
persons
Shares held by domestic natural - - - -
17,246 5,965 5,965 23,211
person
4 Foreign Shares
Including: - - - - - - - -
Shares held by foreign legal persons - - - - - - - -
Shares held by foreign natural persons
Total of restricted shares 373,375,588 - - - - 5,965 5,965 373,381,553
II. Unrestricted shares
1 RMB ordinary shares 3,387,524,378 - - - - (5,965) (5,965) 3,387,518,413
Foreign-funded shares listed 901,986,142 - - - - - - 901,986,142
2
domestically
3 Foreign-funded shares listed overseas - - - - - - - -
4 Others - - - - - - - -
Total of unrestricted shares 4,289,510,520 - - - (5,965) (5,965) 4,289,504,555
III. Total shares 4,662,886,108 - - - - - - 4,662,886,108
151
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
38. Capital reserves
2015
Item Beginning Addition Deduction Ending
Share premium 3,125,122,572.65 - - 3,125,122,572.65
Capital reserve
transferred
44,496,899.00 - - 44,496,899.00
arising from the
old standards
Restricted capital
reserve of equity 17,015,985.20 - - 17,015,985.20
investments
Others 40,853,863.98 - - 40,853,863.98
Total 3,227,489,320.83 - - 3,227,489,320.83
2014
Item Beginning Addition Deduction Ending
Share premium 3,564,758,021.71 344,550.94 439,980,000.00 3,125,122,572.65
Capital reserve
transferred
44,496,899.00 - - 44,496,899.00
arising from the
old standards
Restricted capital
reserve of equity 17,015,985.20 - - 17,015,985.20
investments
Others 40,935,215.86 - 81,351.88 40,853,863.98
Total 3,667,206,121.77 344,550.94 440,061,351.88 3,227,489,320.83
39. Other comprehensive income
Accumulated other comprehensive income in balance sheet attributabled to parent company is
as follows:
1 January 2014 Movement 31 December 2014 Movement 31 December 2015
Change in net
liability or
assest from - 556,000.00 556,000.00 2,956,000.00 3,512,000.00
defined benefit
plan
Comprehensive
income which
can not be re
classified into - - - (966,718.09) (966,718.09)
profit and loss
under equity
method
Fair value change
generated from
available for 186,879,883.22 129,972,491.77 316,852,374.99 (37,567,875.00) 279,284,499.99
sale financial
assets
Foreign currency
translation (14,890,520.84) (10,504,456.91) (25,394,977.75) (14,323,959.61) (39,718,937.36)
difference
Total 171,989,362.38 120,024,034.86 292,013,397.24 (49,902,552.70) 242,110,844.54
152
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
39. Other comprehensive income (continued)
Current occurance amount of other comprehensive income in income statement attributabled
to parent company:
2015
Amount before Deduct: amounts Deduct:Income tax Amount Amount
tax transferred to income attributable to attributable to
statement which were owners minority
recoginzed in other interests
comprehensive
income in prior period
Other comprehensive income
not to be reclassified to
profit or loss in subsequent
period
Change in net liability or
assest from defined benefit 2,956,000.00 - - 2,956,000.00 -
plan
Comprehensive income which
can not be re classified into
(966,718.09) - - (966,718.09) -
profit and loss under equity
method
Subtotal 1,989,281.91 - 1,989,281.91 -
Other comprehensive income
will be reclassified to profit
-
or loss in subsequent
period
Fair value change of available
(44,197,500.00) - (6,629,625.00) (37,567,875.00) -
for sale financial assets
Subtotal (44,197,500.00) - (6,629,625.00) (37,567,875.00) -
Foreign currency translation
(14,323,959.61) - - (14,323,959.61) -
difference
Subtotal (14,323,959.61) - - (14,323,959.61) -
2014
Amount before tax Deduct: amounts Deduct:Income tax Amount Amount
transferred to income attributable to attributable
statement which were owners to minority
recoginzed in other interests
comprehensive income
in prior period
Other comprehensive
income not to be reclassified
to profit or loss in subsequent
period
Change in net liability or
assest from defined 556,000.00 - 556,000.00 -
benefit plan
Subtotal 556,000.00 - 556,000.00 -
Other comprehensive
income will be reclassified to
-
profit or loss in subsequent
period
Fair value change of available
218,813,296.00 (56,076,480.23) (32,764,324.00) 129,972,491.77 -
for sale financial assets
Subtotal 218,813,296.00 (56,076,480.23) (32,764,324.00) 129,972,491.77 -
Foreign currency translation -
(10,504,456.91) - (10,504,456.91) -
difference
Subtotal (10,504,456.91) - (10,504,456.91) -
153
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2015
(Expressed in Renminbi Yuan)
40. Special reserves
2015
Item Beginning Addition Deduction Ending
Safety fund 7,864,849.94 72,231,495.81 58,059,866.21 22,036,479.54
2014
Item Beginning Addition Deduction Ending
Safety fund 1,670,967.02 35,299,178.61 29,105,295.69 7,864,849.94
The Group accrued safety fund according to the provision (NO.[2012]16 Fund Accual and Usage>)issued by the Ministry of Finance and the State Administration of work safety on 14 February 2012. 41. Surplus reserves 2015 Item Beginning Addition Deduction Ending Statutory surplus 2,331,443,054.00 - - 2,331,443,054.00 2014 Item Beginning Addition Deduction Ending Statutory surplus 1,816,272,976.53 515,170,077.47 - 2,331,443,054.00 The Company appropriated statutory surplus reserves amounted to 10% of profit after tax. When statutory surplus reserves account for 50% of paid-in capital, no further surplus reserve will be appropriated. 42. Retained earnings Item 2015 2014 Retained earnings of prior year 15,115,601,819.79 9,233,857,503.02 before adjustment Adjustment - (696,770,264.11) Retained earnings at beginning 15,115,601,819.79 8,537,087,238.91 after adjustment Add: Net profits attributable to parent company for the current 9,952,714,168.09 7,561,081,585.81 year Less: Appropriation to statutory - (515,170,077.47) surplus reserves Ordinary share dividend of (1,169,092,724.43) (467,396,927.46) cash Retained earnings at the end of 23,899,223,263.45 15,115,601,819.79 year Adjustment: since the combination under common control in 2014 causes change of consolidation scope, reducing retained earnings of the prior year by RMB696,770,264.11. 154 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 42. Retained earnings (continued) According to the resolution of the 4th meeting of the seventh session of the Board of Directors, the profit distribution plan of 2015 is as follows: on the base of the existing share capital of 4,662,886,108 shares, the Group will issue cash dividends of RMB6.40 per 10 shares, RMB 2,984,247,109.12 in total (tax included). This profit distribution plan should be approved by the annual general meeting. 43. Operating revenue and cost (1) Operating revenue and cost Item 2015 2014 Revenue Cost Revenue Cost Main business 65,894,740,546.82 52,576,483,281.23 52,025,768,622.09 42,565,918,023.75 Other business 876,839,980.84 830,227,426.37 887,563,478.74 699,907,840.12 Total 66,771,580,527.66 53,406,710,707.60 52,913,332,100.83 43,265,825,863.87 (2) Operating revenue listed as follows: Item 2015 2014 Sale of goods 66,522,990,662.22 52,702,266,463.64 Outsourcing processing 248,589,865.44 211,065,637.19 Total 66,771,580,527.66 52,913,332,100.83 44. Business tax and surcharges Item 2015 2014 Business tax 13,700,939.52 8,746,727.25 Consumption tax 2,496,226,010.97 1,710,437,955.34 City maintenance and construction 290,865,081.81 234,015,737.97 tax Educational surcharge 139,168,646.83 111,013,041.93 Others 1,617,024.59 131,264.42 Total 2,941,577,703.72 2,064,344,726.91 45. Operating expenses Item 2015 2014 Payroll and welfare 308,645,692.43 276,676,308.66 Promotion and advertisement fee 1,150,625,749.98 889,135,693.15 Transportation expenses 1,809,370,442.79 1,565,809,376.14 Travelling expenses 75,215,077.57 65,524,575.42 Package expenses 13,726,348.63 12,828,823.23 Administrative expenses 15,908,804.73 26,551,531.56 Selling service fee 919,754,386.93 802,898,985.34 Sales discount 608,531,843.69 616,631,764.26 Others 52,743,791.10 101,111,590.78 Total 4,954,522,137.85 4,357,168,648.54 155 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 46. General and administrative expenses Item 2015 2014 Payroll and welfare 1,716,675,340.42 1,243,198,304.73 Technology research expenses 1,948,582,554.29 1,401,539,716.34 Administrative expenses 232,094,422.96 196,013,864.34 Depreciation and amortization 521,120,709.41 469,240,599.55 Miscellaneous service charges 42,918,415.62 52,791,234.85 Tax fee 272,729,126.50 218,971,782.34 Traffic expenses 43,393,841.32 47,310,720.85 Travelling expenses 25,446,797.16 34,303,673.21 Entertainment expenses 4,434,941.85 8,634,317.42 Others 91,815,947.53 69,910,662.21 Total 4,899,212,097.06 3,741,914,875.84 47. Financial expenses Item 2015 2014 Interest expense 114,897,873.84 190,891,792.12 Less: interest income 295,583,607.61 152,526,950.60 capitalized interest - 117,119.22 Foreign exchange gain or loss 6,262,874.12 12,797,381.77 Others 23,617,229.46 15,028,935.99 Total (150,805,630.19) 66,074,040.06 48. Impairment loss on assets Item 2015 2014 1. Bad debt loss (1,921,905.23) 3,622,111.17 2. Impairment of inventory 214,340,887.66 132,717,813.08 3. Impairment of fixed assets 397,557,896.21 185,945,320.19 4. Impairment of intangible assets 20,339,557.63 21,319,804.81 Total 630,316,436.27 343,605,049.25 49. Investment income Item 2015 2014 Long-term equity investment 9,439,864,877.63 7,991,213,934.13 income under equity method Investment income through disposal of long-term equity - 499,938.17 investment Investment income during holding period from available-for-sale 57,544,215.31 34,539,013.46 financial assets Income from disposal of - 75,864,114.48 available-for-sale financial assets Total 9,497,409,092.94 8,102,117,000.24 156 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 50. Non-operating income Amount recognized in Item 2015 2014 2015 as non-recurring profit and loss Gain on the disposal of 1,709,968.83 4,835,757.23 1,709,968.83 fixed assets Government grants 441,926,607.20 339,001,795.70 441,926,607.20 Others 71,283,981.94 57,832,624.18 71,283,981.94 Total 514,920,557.97 401,670,177.11 514,920,557.97 Government grants recognized as current income is as follows: Relates to Item 2015 2014 asset/gain Government grants for technology research 132,080,000.00 100,000,000.00 Relates to gain expenses Enterprise development fund 69,490,000.00 - Relates to gain Funds for Beijing Changan project 31,059,112.56 31,059,112.56 Relates to asset Subsidies for new base launching and R&D of 28,345,984.68 27,955,367.09 Relates to asset Hefei Comprehensive testing field program 27,015,500.00 4,502,583.34 Relates to asset Development fund for energy saving 24,059,424.54 4,560,000.00 Relates to gain demonstration program Baoding Changan enterprise preferential 20,190,000.00 - Relates to gain policies reward fund Hefei Changan production reward 20,000,000.00 - Relates to gain Subsidies and rewards for career training 16,324,166.89 6,449,500.00 Relates to gain Industry upgrading project for small displacement engine and technological 15,965,833.32 15,965,833.32 Relates to asset transformation project for CB type engine production line Expansion of production capacity project 14,380,154.22 6,215,637.84 Relates to asset Hefei Changan new industrialization fund 10,000,000.00 - Relates to gain Light vehicle technical transformation project 6,700,000.00 6,200,000.00 Relates to asset of Baoding Changan Bus Funds for Yuzui motor city project 5,683,673.48 5,683,673.47 Relates to asset Funds for H series engine 5,333,333.33 5,333,333.30 Relates to asset Hefei Changan high-growth premium 4,900,000.00 - Relates to gain enterprise reward Subsidies for the construction of Hebei new 2,740,000.00 2,740,000.00 Relates to asset plant Production line remodeling project 333,333.33 138,888.89 Relates to asset Tax refund for new products - 50,000,000.00 Relates to gain Tax refund - 33,619,000.00 Relates to gain R&D program for new energy auto - 17,977,998.87 Relates to gain Subsidies for new energy automobile - 5,000,000.00 Relates to gain Subsidies for troubled enterprise - 3,750,300.00 Relates to gain Subsidy of Import Discount Interest from MOF - 2,668,485.00 Relates to gain Loan discount for industrial project - 2,410,000.00 Relates to gain Reward for transformation of scientific and - 1,000,000.00 Relates to gain technological achievements for passenger cars Others 7,326,090.85 5,772,082.02 Relates to gain Total 441,926,607.20 339,001,795.70 157 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 51. Non-operating expenses Amount recognized as Item 2015 2014 non-recurring profit and loss Loss on the disposal of 36,024,036.17 22,128,955.42 36,024,036.17 fixed assets Donation 9,817,950.00 3,329,731.68 9,817,950.00 Vehicle premium 4,719,040.00 4,041,120.00 4,719,040.00 Fines and penalties 28,355,830.87 20,000.00 28,355,830.87 Others 11,574,864.96 9,836,622.37 11,574,864.96 Total 90,491,722.00 39,356,429.47 90,491,722.00 52. Expenses by nature The Group’s operating cost, distribution expense and general administariont expense classified by nature are as follows 2015 2014 Raw materials consumed 49,245,949,071.69 40,245,890,589.98 Changes in finished goods and work (1,575,930,872.04) (1,968,424,640.99) in prosess inventory Employee benefits 5,262,163,331.06 4,091,043,617.36 Promotion and advertisement fee 1,150,625,749.98 889,135,693.15 Transportation and storage 2,008,611,396.35 1,709,760,013.86 expenses Sales discount 608,531,843.69 616,631,764.26 Sale service fee 919,754,386.93 802,898,985.34 Depreciation and amortization 2,038,308,775.70 1,984,693,377.36 Reseach and development costs 958,016,523.83 680,124,923.75 Taxation 272,729,126.50 218,971,782.34 Fuel expense 463,459,405.88 581,839,050.00 Other expense 1,908,226,202.94 1,512,344,231.84 Total 63,260,444,942.51 51,364,909,388.25 53. Income tax expense The relationship between income tax expense and total profit before tax is as follows: Item 2015 2014 Current income tax expense 344,357,886.72 182,999,679.21 Deferred income tax expense (255,026,418.54) (162,148,970.59) Total 89,331,468.18 20,850,708.62 158 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 53. Income tax expense (continued) Item 2015 2014 Total profit 10,011,885,004.26 7,538,829,644.24 Tax at the applicable tax rate (Note) 2,002,377,000.85 1,507,765,928.85 Impact of different tax rates of 180,082,430.52 43,594,494.42 branches and subsidiaries Adjustments to current income tax of (118,379,214.78) 4,523,142.10 previous period Profit or loss attributable to joint (1,887,972,975.52) (1,598,242,786.83) ventures and associates Non-taxible income (14,388,485.65) (6,859,030.40) Non-deductible tax expense 14,175,450.24 27,776,786.34 Usage previous deductible losses (17,153,517.76) (1,234.06) Unrecognized tax losses 73,670,301.62 169,598,878.02 Additional deduction arising from (143,079,521.34) (127,305,469.82) research and development expense Tax expense under actual tax rate of 89,331,468.18 20,850,708.62 the Group Note: The Group accrues the income tax according to the estimated taxable income acquired within PRC and offshore and suitable tax rate. The applicable tax rate for the Company is 15% (Note IV), the applicable tax rate for the Company's Branch Changan Automobile (Beijing) Company is 25%. As the Company and the branch are located in areas with different tax rates, according to the Circular of the State Administration of Taxation on Issues concerning the Collection and Administration of Consolidated Payments of Enterprise Income Tax by Trans-regional Enterprises (Guo Shui Han [2009] No. 221), the consolidated income tax should be filed by the Company, and the actual applicable tax rate for is 20%. 54. Earnings per share (“EPS”) The basic EPS is calculated by dividing the net profit of the current period attributable to the ordinary shareholders of the Company by the weighted average number of outstanding ordinary shares. The Company has no dilutive potential ordinary shares. 2015 2014 Earnings Net profit belong to ordinary 9,952,714,168.09 7,561,081,585.81 shareholders Shares Weighted average ordinary shares 4,662,886,108 4,662,886,108 From the balance sheet day and to the approval date of reporting, there is no event that may causes changes in ordinary shares or potential ordinary shares. 159 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 55. Notes to cash flow statement (1) Items of cash received relating to other operating activities ars as follows: Item 2015 2014 Interest income 302,370,935.38 130,443,756.16 Government grants related to 363,983,118.94 210,176,603.31 operating activities Others 214,554,182.09 211,081.78 Total 880,908,236.41 340,831,441.25 (2) Items of cash paid relating to other operating activitiesar as follows: Item 2015 2014 Selling expense 3,117,590,214.80 2,964,255,746.27 Administrative expense 1,645,844,653.48 996,357,047.56 Others 570,075,548.14 241,472,713.84 Total 5,333,510,416.42 4,202,085,507.67 (3) Items of cash received relating to other investing activitiesare as follows: Item 2015 2014 Government grants related to 112,430,000.00 66,636,035.28 assets (4) Items of cash paid relating to other investing activities are as follows: Item 2015 2014 Commission fee for acquisition - 626,230.62 Others 88,000.38 - Total 88,000.38 626,230.62 (5) Items of cash received relating to other financing activities are as follows: Item 2015 2014 Withdraw for deposit of bill 48,806,228.67 374,843,241.43 Others - 4,028.93 Total 48,806,228.67 374,847,270.36 (6) Items of cash paid relating to other financing activities are as follows: Item 2015 2014 Payment for deposit of bill 45,238,112.37 94,715,579.73 Purchased minority interest - 288,000.00 Others - 26,394.81 Total 45,238,112.37 95,029,974.54 160 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 56. Supplementary information of cash flow statement (1) Supplementary information of cash flow statement Supplementary information 2015 2014 1．Cash flows from operating activities calculated by adjusting the net profit Net profit 9,922,553,536.08 7,517,978,935.62 Add: impairment provision for assets 630,316,436.27 343,605,049.25 Depreciation of fixed assets 1,619,033,932.08 1,626,230,084.12 Depreciation and amortization of 226,711.56 338,961.68 investment property Amortization of intangible assets 418,479,531.01 357,673,719.85 Amortization of long-term deferred 568,601.05 450,611.71 expense Amortization of deferred income (137,556,924.92) (105,794,429.81) Disposal loss on fixed assets, 34,314,067.34 17,293,198.19 intangible assets and others long-term assets Financial expense 114,897,873.84 190,891,792.12 Investment income (9,497,409,092.94) (8,102,117,000.24) Increase in deferred tax assets (255,026,418.54) (162,148,970.59) (Increase) in inventory (1,781,288,036.79) (1,969,852,568.02) Increase in operating receivables (5,668,286,118.17) (6,972,345,425.13) Increase in operating payables 10,001,652,965.45 11,034,405,635.60 Others 12,413,706.18 3,312,180.22 Net cash flows from operating 5,414,890,769.50 3,779,921,774.57 activities 2．Movement of cash and cash equivalents Ending balance of cash 17,725,921,341.22 9,362,853,917.71 Less: beginning balance of cash 9,362,853,917.71 3,942,941,861.56 Add: ending balance of cash - - equivalents Less: beginning balance of cash - - equivalents Increase in cash and cash equivalents 8,363,067,423.51 5,419,912,056.15 (2) The major non-cash investing and financing activities: Item 2015 2014 Endorsed bank acceptance 6,650,743,817.63 8,079,130,272.41 received by sales and providing service 161 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 56. Supplementary information of cash flow statement(Continued) (3) Cash and cash equivalents Item 2015 2014 I. Cash Including: Cash on hand 43,967.74 29,174.13 Bank deposits that can be readily used 17,725,877,373.48 9,362,824,743.58 II. Cash equivalents - - III. Ending balance of cash and cash 17,725,921,341.22 9,362,853,917.71 equivalents Note: The restricted cash and cash equivalents of the Group are not included in the cash and cash equivalents. 57. Ownership or right of use restrained assets Item 2015 2014 Notes Cash and cash equivalents 309,188,332.99 330,229,580.07 Note 1 Accounts receivable 459,208,818.75 188,803,148.85 Note 2 Notes receivable 140,256,135.43 315,248,201.14 Note 3 Fixed assets 28,828,344.87 53,356,163.72 Note 2 Intagable assets 5,394,177.78 8,088,768.26 Note 2,Note 4 Note 1: As at 31 December 2015, the Group has no restricted time deposit for bank loan (2014: Nil). As at 31 December 2015, the Group has restricted cash at banks amounted to RMB309,188,332.99 (As at 31 December 2014: RMB330,229,580.07) for the issuance of bank acceptance bill. Note 2: As at 31 December 2015, accounts receivable with a book value of RMB459,208,818.75 has been pledged, collateral with buildings and land use right with book value of RMB28,828,344.87 and RMB 5,394,177.78 respectively to obtain RMB50,000,000.00 short-term loan and issue RMB50,000,000.00 bank acceptance bills from China South Industry Group Finance Co., Ltd. The amortization of the land use right in 2015 is RMB149,838.24. As at 31 December 2014, accounts receivable with a book value of RMB188, 803,148.85 has been pledged, collateral with buildings and land use right with book value of RMB30,278,453.44 and RMB5,544,016.02 respectively to obtain RMB50,000,000.00 short-term loan and issue RMB50,000,000.00 bank acceptance bills from China South Industry Group Finance Co., Ltd. The amortization of the land use right in 2014 is RMB149,838.24. Note 3: As at 31 December 2015, notes receivable with a book value of RMB140,256,135.43 (31 December 2014:RMB315,248,201.14) has been pledged to issue bank acceptance bills. Note 4: As at 31 December 2014, land use right with a book value of RMB2,544,752.24 is still pledged for the estimated credit line application and the amortization amounted to RMB68,777.04 in 2014. 162 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 58. Foreign Monetary Item Item 2015 2014 Original Currency Exchange Translated to Original Exchange Translated to Rate RMB Currency Rate RMB Cash USD 2,975,805.53 6.4936 19,323,690.79 6,152,812.31 6.1190 37,649,058.51 GBP 8,700,777.66 9.6159 83,665,807.90 191,099.00 9.5437 1,823,791.53 EUR 1,071,937.06 7.0952 7,605,607.83 2,768,828.57 7.4556 20,643,278.29 JPY 28,003,927.00 0.0539 1,509,411.67 24,106,774.00 0.0514 1,238,389.09 SUR 105,768,687.18 0.0883 9,339,375.08 3,513,281.45 0.1105 388,217.60 BRL 567,548.71 4.5539 2,584,560.07 - - - Accounts receivable USD 21,516,970.87 6.4936 139,722,602.04 24,571,500.79 6.1190 150,353,013.31 GBP 6,511,304.00 9.6159 62,612,048.13 694.73 9.5437 6,630.29 EUR 2,620,000.00 7.0952 18,589,424.00 - - - Other receivable USD 164,896.50 6.4936 1,070,771.91 230,120.50 6.1190 1,408,107.34 JPY 14,217,484.00 0.0539 766,322.39 18,412,940.00 0.0514 945,891.14 EUR 1,439,001.00 7.0952 10,209,999.90 1,061,736.00 7.4556 7,915,878.92 Accounts Payable USD 9,276,856.20 6.4936 60,240,193.42 5,354.86 6.1190 32,766.39 JPY 15,135,076.00 0.0539 815,780.60 650,000.00 0.0514 33,391.15 EUR 1,534,818.00 7.0952 10,889,840.67 1,055,649.00 7.4556 7,870,496.68 GBP 1,161,980.00 9.6159 11,173,483.48 12,363.00 9.5437 117,988.76 Other Payables USD 20,615.00 6.4936 133,865.56 12,975.39 6.1190 79,396.41 EUR 35,236.00 7.0952 250,006.47 8,045.00 7.4556 59,980.30 GBP 19,421,035.00 9.6159 186,750,730.46 468,701.34 9.5437 4,473,144.98 163 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) VII Stake in other entities 1. Rights in subsidaries The subsidiaries of the Company are as follows： Company name Main Registered Nature of Registered Total proportion operating place business capital of shareholders place (0,000) (%) direct indirect I. The subsidiary formed by establish or investment Hebei Changan Automobile Co., - Dingzhou Dingzhou Manufacturing 46,469 94.22 Ltd. (note 1) Chongqing Changan International - Chongqing Chongqing sales 1,376 95.00 Automobile Sales Co., Ltd. Chongqing Changan Automobile - Chongqing Chongqing sales 4,850 100.00 Sales Co., Ltd. Chongqing Changan Special - Chongqing Chongqing sales 500 50.00 Automobile Co., Ltd (note 2) Chongqing Changan Automobile Chongqing Chongqing sales 3,000 99.00 1.00 Supporting Service Co., Ltd. Chongqing Changan New Energy - Chongqing Chongqing R&D 2,900 65.00 Automobile Co. Ltd. Chongqing Changan Europe - Turin, Italy Turin, Italy R&D EUR1,460 100.00 Design Academy Co., Ltd. Nottingham, Nottingham, - Changan United Kingdom R&D United United R&D GBP10 100.00 Center Co., Ltd. Kingdom Kingdom Beijing Changan R&D Center Co., - Beijing Beijing R&D 100 100.00 Ltd. Harbin Changan R&D Center Co., - Habin Habin R&D 100 100.00 Ltd. Shanghai Changan R&D Center - Shanghai Shanghai R&D 100 100.00 Co., Ltd. Changan Japan Designing Center Yokohama, Yokohama, - R&D JPY2,000 100.00 Co.,Ltd. Japan Japan Changan United States R&D Troy, United Detriot, - R&D USD20 100.00 Center Co., Ltd. states United states Changan Automobile Russia Co., Moscow, Moscow, - Sales USD20 100.00 Ltd. Russia Russia St. Paul, St. Paul, - Changan Brazil Holdings Limited Sales BRL100 100.00 Brazil Brazil II. The subsidiary formed by business combination not under common control Nanjing Changan Automobile - Nanjing Nanjing Manufacturing 60,181 84.73 Co., Ltd.(note1) III. The subsidiary formed by business combination under common control Chongqing Changan Automobile - China China Sales 850 100.00 sales subsidiaries Hebei Baoding Changan Bus Co., - Dingzhou Dingzhou Manufacturing 3,000 100.00 Ltd. Hefei Changan Automobile - Hefei Hefei Manufacturing 77,500 100.00 Co.,Ltd. 164 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 1. Rights in subsidiaries (continued) Note 1: the Company owns 93.79% and 95.70% of voting shares of Nanjing Changan Automobile Co., Ltd. and Hebei Changan Automobile Co., Ltd. respectively, the discrepancy between proportion of voting shares and proportion of shares held is due to the voting right consigned from minority shareholders. Note 2: The remaining shareholders of Chongqing Changan Special Automobile Co., Ltd. made an agreement with the Company that the remaining shareholders are to vote in accordance with the Company. The main financial and operating policies have been controlled by the Company, so it is included in the scope of consolidated financial statements. As at 31 December 2015, the Group has no subsidiaries with important minority interests. 2. Stakes in joint ventures and associates Company name Main Registered Nature of business Registered Total proportion of Accounting operating place capital (0,000) shareholders (%) treatment place direct inderect I. Joint ventures Chongqing Manufacture and sale Changan Suzuki of automobiles, and Chongqing Chongqing USD19,000 50.00 - Equity Automobile Co., components Ltd. Manufacture and sale Jiangling Holding Nanjing Nanjing of automobiles, and 200,000 50.00 - Equity Co., Ltd. components Changan Ford Manufacture and sale Automobile Co., Chongqing Chongqing of automobiles, and USD24,100 50.00 - Equity Ltd. components Changan Mazda Manufacture and sale Automobile Co., Nanjing Nanjing of automobiles, and USD11,097 50.00 - Equity Ltd. components Changan Ford Manufacture and sale Mazda Engine Co., Nanjing Nanjing of automobiles, and USD20,996 50.00 - Equity Ltd. components Changan PSA Manufacture and sale Automobiles Co., Shenzhen Shenzhen of automobiles, and 400,000 50.00 - Equity Ltd. (Note) components II. Associates Chongqing Xiyi Develop, manufactory, Automobile sale of linkage rod Chongqing Chongqing 1,900 40.00 - Equity Linkage Rod Co., Ltd. Chongqing Develop, product and Changan Kuayue sale of automobile and Chongqing Chongqing 6,533 34.30 - Equity Automobile Co., components; import Ltd. and export goods. Sale of Changan Kuayue’ s automobile Chongqing and agricultural cars Changan Kuayue Chongqing Chongqing and components. 300 34.30 - Equity Automobile Sales Technical advisory Co., Ltd. services for automobile Beijing Fang’an Taxi Regional taxi Beijing Beijing 1,420 42.25 - Equity Co., Ltd. operation Provide car loan; provide vehicle loans and operating equipment loans to car Chongqing dealers, including the Automobile Chongqing Chongqing 250,000 35.00 Equity construction loans of Finacing Co., Ltd exhibition hall,spare parts loans and maintenance equipment loans, etc. 165 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 2. Stakes in joint ventures and associates (continued) Changan Ford Automobile Co., Ltd. is the important joint venture to the Group and makes great influence in the share of profit and loss in joint venture and associates, the Group adopts equity method to deal with the investment to it. The table below shows the financial status of Changan Ford Automobile Co., Ltd., and all the information has been adjusted to eliminate the difference of the accounting policies. 2015 2014 Current assets 23,895,284,929.00 18,749,082,739.00 -cash and cash 12,868,829,737.00 10,484,893,743.00 equivalent Non-current assets 26,576,982,913.00 22,704,819,379.00 Total assets 50,472,267,842.00 41,453,902,118.00 Current liabilities 37,017,676,355.00 30,399,912,981.00 Non-current liabilities 2,291,992,698.00 1,681,418,801.00 Total liabilities 39,309,669,053.00 32,081,331,782.00 Minority interests 44,936,424.00 37,104,391.00 Equity attributable to 11,117,662,365.00 9,335,465,945.00 owners Net asset owned according 5,558,831,182.50 4,667,732,972.50 to share proportion Adjustment (54,414,790.32) (50,368,978.53) Book value of investment 5,504,416,392.18 4,617,363,993.97 Operating revenue 117,550,892,745.00 106,353,899,023.00 Financial expenses- interest 156,949,479.00 168,217,185.00 income Financial expenses- interest 1,471,781.00 1,753,587.00 expense Income tax expense 3,204,463,800.00 2,258,780,072.00 Net profit 17,468,727,636.00 14,412,857,430.00 Other comprehensive - - income Total comprehensive 17,468,727,636.00 14,412,857,430.00 income Dividend 7,800,000,000.00 7,700,000,000.00 166 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 2. Stakes in joint ventures and associates (continued) The table below shows the financial status of the less important joint ventures and associates: 2015 2014 Joint venture Total book value of the 8,163,353,227.71 7,930,846,729.93 investment Total amount calculated by shareholding proportion Net profit 744,860,539.38 840,790,449.86 Other comprehensive (966,718.09) - income Total comprehensive 743,893,821.29 840,790,449.86 income Associate Total book value of the 1,238,730,816.60 75,778,876.56 investment Total amount calculated by shareholding proportion Net profit 7,951,940.04 1,939,961.84 Other comprehensive - - income Total comprehensive 7,951,940.04 1,939,961.84 income As at 31 December 2015, since the Group has no obligation to undertake the extra loss of Chongqing Changan Kuayue Automobile Sales Co., Ltd and Beijing Fang’an Taxi Co., Ltd, when extra loss occurs, the Group writes down the long-term investment to zero without recognizing the contingent liability. As at the 31 December 2015, the Group’s unrecognized investment loss for the current period is RMB 6,323,806.42 (2014: RMB6,141,717.29). 167 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) VIII. Risks associated with financial instruments 1. Classification of financial instruments As at balance sheet day, the book values of financial instruments are as follows: Financial assets Loans and accounts Available-for-sale 2015 Total receivable financial assets Cash 18,035,109,674.21 - 18,035,109,674.21 Notes receivable 22,683,096,211.46 - 22,683,096,211.46 Accounts receivable 875,479,556.55 - 875,479,556.55 Other receivables 1,001,485,245.40 - 1,001,485,245.40 Available-for-sale financial - 530,811,274.00 530,811,274.00 assets Interest receivable 15,295,866.67 - 15,295,866.67 Total 42,610,466,554.29 530,811,274.00 43,141,277,828.29 Loans and accounts Available-for-sale 2014 Total receivable financial assets Cash 9,693,083,497.78 - 9,693,083,497.78 Notes receivable 17,780,161,662.94 - 17,780,161,662.94 Accounts receivable 758,876,190.82 - 758,876,190.82 Other receivables 260,457,285.50 - 260,457,285.50 Available-for-sale financial - 544,456,774.00 544,456,774.00 assets Interest receivable 22,083,194.44 22,083,194.44 Total 28,514,661,831.48 544,456,774.00 29,059,118,605.48 Financial liabilities Other financial liabilities 2015 2014 Short-term loans 50,000,000.00 90,000,000.00 Notes payable 18,662,900,601.34 13,108,623,397.32 Accounts payable 14,973,826,566.55 13,038,793,688.31 Interest payable 73,458,000.00 73,458,000.00 Dividend payable 79,742.80 79,742.80 Other payables 1,762,874,858.05 2,007,416,635.58 Bonds payable 1,975,102,599.85 1,971,184,679.89 Total 37,498,242,368.59 30,289,556,143.90 168 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 2. Transfer of financial assets The transferred financial assets that entirely derecognized but continuing involved As at 31 December 2015, the Group has endorsed bank acceptance bill with a carrying amount of RMB 2,003,975,070.03 (2014:RMB6,619,901,191.66) to suppliers to settle the accounts payable. The maturities of the notes are between 1 to 6 months. According to the relevant provisions of the "law of negotiable instruments", if the banks refuse the payment, the holder has the right of recourse to the Group (the "continuing involvement"). The Group holds the view that almost all the risks and rewards concerned have been transferred; therefore, the book value of the accounts payable should be derecognized. The maximum loss and the undiscounted cash flow of the continuing involvement and repurchase is equal to its book value, the Group regards the fair value of the continuing involvement is not significant. In 2015, the Group didn’t recoganize profit or loss on the transferring date. No revenue or expense should be recogazied in accordance with the continuing involvement in the current period. The indorsement occurred flatly in this period. 3. Risks of financial instruments The Group’s principal financial instruments, except for derivatives, include bank loans, bonds payable, cash, etc. The main purpose of these financial instruments is to raise finance for the Group’s operations. The Group has various other financial assets and liabilities such as accounts receivable and accounts payable, which arise directly from its operations. The main risks arising from the Group’s financial instruments are credit risk, liquidity risk and market risk. The Group’s risk management policies are summarized below: Credit risk The Group trades only with recognized, creditworthy third parties. It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant. For transactions that do not occur in the country of the relevant operating unit, the Group does not offer credit terms without the approval of the special department of credit control. With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents, available-for-sale financial assets, other receivables, dividend receivables and certain derivatives financial instruments, the Group’s exposure to credit risk arising from default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments, listed as book value of financial assets in consolidated financial statements. In 2014, there was no credit risk arising from financial guarantee. 169 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 3. Risks of financial instruments (continued) Credit risk (continued) No gage is required since the Group trades only with recognized, creditworthy third parties. Credit risks are managed by clients and industries collectively. As at 31 December 2015, among the Group’s collections with specific credit risk, 24.09% (2014: 23.07%) of accounts receivables of the Group are due from top five clients respectively. As at the end of the year, the maturity analysis for the Group’s financial assets not impaired is as follows: 2015 Overdue but not impaired Neither overdue Total Within 3 3 months to 1 nor impaired Over 1 year months year Accounts 875,479,556.55 810,029,088.86 19,594,830.23 39,293,272.47 6,562,364.99 receivable Other 1,001,485,245.40 998,332,488.97 1,997,341.95 882,102.87 273,311.61 receivables Notes 22,683,096,211.46 22,683,096,211.46 - - - receivable Available for sale 530,811,274.00 530,811,274.00 - - - fianciail assets Interest 15,295,866.67 15,295,866.67 - - - receivables 2014 Overdue but not impaired Neither overdue nor Total 3 months to 1 impaired Within 3 months Over 1 year year Accounts 758,876,190.82 569,744,782.83 174,781,709.01 5,807,000.62 8,542,698.36 receivable Other 260,457,285.50 257,135,071.77 351,884.54 1,689,117.99 1,281,211.20 receivables Notes receivable 17,780,161,662.94 17,780,161,662.94 - - - Available for sale fianciail 544,456,774.00 544,456,774.00 - - - assets Interest 22,083,194.44 22,083,194.44 - - - receivables As at 31 December 2015 and 2014, the balance of accounts receivable which is neither overdued nor impaired is mainly due to the customers who have no default records recently. 170 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 3. Risks of financial instruments (continued) Credit risk (continued) As at 31 December 2015 and 2014, overdued but not impaired accounts receivable are related to independent clients with satisfactory transaction records with the Group. Based on previous experience, since credit quality has no significant changes and the receivables can be fully recovered, the Group considers no impairment provision should be made to them. The Group does not hold any gage from or enhance credit limit to these clients. Liquidity risk The Group adopts cycle liquidity planning instrument to manage capital shortage risks. The instrument takes into consideration the maturity date of financial instruments plus estimated cash flow from the Group’s operations. The Group’s objective is to maintain a balance between continuity of funding and flexibility and sufficient cash to support operating capital through financing functions by the use of bank loans, debentures, etc. The table below summarizes the maturity profile of the Group’s financial liabilities based on the non-discounted cash flow of the contracts: 2015 Within 1 month 1 to 3 months 3 months to 1 year 1 to 5 years Total Short-term loans 219,863.01 50,285,821.92 - - 50,505,684.93 Notes payable 3,543,730,187.83 6,004,071,237.21 9,115,099,176.30 - 18,662,900,601.34 Accounts payable 2,968,335,828.87 9,174,674,038.38 2,830,816,699.30 - 14,973,826,566.55 Interest payable - - 73,458,000.00 - 73,458,000.00 Divedend payable 79,742.80 - - - 79,742.80 Other payable 367,585,584.05 488,933,347.32 906,355,926.68 - 1,762,874,858.05 Bonds payable - - 31,482,000.00 2,084,940,000.00 2,116,422,000.00 Total 6,879,951,206.56 15,717,964,444.83 12,957,211,802.28 2,084,940,000.00 37,640,067,453.67 2014 Within 1 month 1 to 3 months 3 months to 1 year 1 to 5 years Total Short-term loans 204,166.67 61,107,583.33 30,568,424.66 - 91,880,174.66 Notes payable 1,981,150,746.34 4,385,247,342.23 6,742,225,308.75 - 13,108,623,397.32 Accounts payable 3,418,101,787.40 5,685,060,691.30 3,935,631,209.61 - 13,038,793,688.31 Interest payable - - 73,458,000.00 - 73,458,000.00 Divedend payable 79,742.80 - - - 79,742.80 Other payable 614,829,987.19 345,820,695.75 1,046,765,952.64 - 2,007,416,635.58 Bonds payable - - 31,482,000.00 2,189,880,000.00 2,221,362,000.00 Total 6,014,366,430.40 10,477,236,312.61 11,860,130,895.66 2,189,880,000.00 30,541,613,638.67 171 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 3. Risks of financial instruments (continued) Market risk Interest rate risk The Group’s revenue and operating cash flows are seldomly influenced by the interest fluctuation. As at 31 December 2015, the Group’s loans are bearing fixed interest rate and the Group is not hedging the risk currently. Foreign currency risk The Group’s exposures to fluctuation in foreign currency exchange rate mainly arise from operating activities where transactions are settled in currencies other than the units' functional currency and net investment to offshore subsidiary. In 2015, the Group only has transactional currency exposures of 0.71% (2014: 1.74%) of its total revenue that is valued in currencies other than the units' functional currency. Since most of the Group’s businesses are opertated in China mainland, the estimated influence of fluctuation of foreign currency is insignificant; therefore, the Group hasn’t carried out large amount of hedging to reduce the risk. Equity instruments investment price risk The Group is exposed to equity price risk arising from individual equity investments classified as available-for-sale investments (Note V 10) as at 31 December 2015. The Group’s listed investments are listed on the Shanghai stock exchanges and valued at quoted market prices at the end of the reporting period. The following table demonstrates the sensitivity to every 5% change ( based on the carrying amount as at the end of reporting period) in the Group’s net profit and fair value of the equity investments, with all other variables held constant, based on their carrying amounts at the end of the reporting period. Increase/ Carrying amount of Change in fair Increase/(decrease) in (decrease) in net equity investments value equity profit 2015 Shanghai- Available for 351,450,000.00 5% 17,572,500.00 17,572,500.00 sale Shanghai- Available for 351,450,000.00 (5%) (17,572,500.00) (17,572,500.00) sale 2014 Shanghai- Available for 395,647,500.00 5% 19,782,375.00 19,782,375.00 sale Shanghai- 395,647,500.00 (5%) (19,782,375.00) (19,782,375.00) Available-for-sale 172 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 4. Capital management The main goal of the Group’s capital management is to ensure that the ability of continuous operation, and maintain a healthy capital ratios in order to support business development, and to maximize shareholder value. The Group manages the capital structure and adjusts it with the change of economy trend and the risk feature of the assets. To maintain or adjust the capital structure, the Group can rectify dividend distribution, return capital to shareholders or issue new shares. The Group is not subject to external mandatory capital requirements constraints. The goal, principle and procedure of capital management stay the same in 2015 and 2014. The Group’s leverage ratio on the balance sheet date is as follows: 31 December 2015 31 December 2014 Leverage ratio 61.78% 63.47% 173 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) IX. Disclosure of fair value (1) Assets and liabilities measured at fair value 2015 Input measured at fair value Important and Important but Quoted price in active observable unobservable market Total input(The second input(The third (The first level) level） level) Available-for-sale financial 351,450,000.00 - - 351,450,000.00 assets- equity instruments 2014 Input measured at fair value Important and Important but Quoted price in active observable unobservable market Total input(The second input (The third (The first level) level) level) Available-for-sale financial 395,647,500.00 - - 395,647,500.00 assets- equtiy instruments (2) Assets and liabilities disclosed at fair value 2015 Input measured at fair value Quoted market price Important and Important but in active market observable input unobservable input Total (The first level) (The second level） (The third level) Bonds 2,039,400,000.00 - - 2,039,400,000.00 payable 2014 Input measured at fair value Quoted market Quoted price in active Quoted price in active price in active market market Total market (The secon level) (The third level) (The first level) Bonds 2,003,562,000.00 - - 2,003,562,000.00 payable 174 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) IX. Disclosure of fair value (continued) Fair value of financial instruments Following are book value and fair value of financial instruments of the group except for equity instruments whose fair value is similar with book value and those neither have quoted market price in active market nor be reliably measured. Book value Fair value 2015 2014 2015 2014 Finacial assets Financial assets available for sale- equtiy 351,450,000.00 395,647,500.00 351,450,000.00 395,647,500.00 instruments Finacial liabilities Bonds payable 1,975,102,599.85 1,971,184,679.89 2,039,400,000.00 2,003,562,000.00 Management has assessed and concluded that, accounts, including cash, notes receivable, accounts receivable, other receivables, short-term loans, intrest payable, dividend payables, other payables, notes payable, accounts payable and so on, whose fair value equals to book value because of its short term to overdue. Financial assets and financial liabilities are measured at the amount that an asset could be exchanged for or by which a liability could be incurred or settled by knowledged, willing parties in a current arm’s-length transaction, other than liquidation or unwilling sales. Methods and hypothesis followed are used for determining fair value. Bonds payable are carried at armotized cost and thoses fair value are determined by the settlement price on 31 December 2015 and 2014, which are traded in open and active market. 175 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) X. Related party relationships and transactions 1. Parent company Proportion Proportion of voting Place of Nature of the of shares in Parent Registered capital rights in registration business the the Company company Manufacture and sale China Changan of automobiles, Automobile Beijing 4,582,373,700.00 39.11% 39.11% engine, and Group Co ,Ltd. components The ultimate holding company is China Changan Automobile Group Co ,Ltd.. The registered capital and paid-up capital was unchanged in 2015. 2. Subsidiaries Refer to Note VI 1 for details of the Group’s subsidiaries. 3. Joint ventures and associates Refer to Note VI 2 for details of the Group’s joint ventures and associates. 176 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 4. Other related parties Related parties Relationship China South Industries Group Corporation Ultimate holding company China Changan Automobile Co., Ltd. – Chongqing Tsingshan Transmission Branch (hereafter referred to as “CSIA-Chongqing Branch of parent Tsingshan Transmission Branch”) Sichuan Jian'an Industrial Co.,Ltd. – Chengdu Jian'an Automobile Bridge Branch (the original “China Changan Automobile Co., Controlled by the same parent company Ltd. – Chengdu Jian'an Automobile Bridge Branch) Sichuan Jian'an Industrial Co., Ltd (the original “China Changan Automobile Co., Ltd. – Shichuan Jian'an Automobile Bridge” Controlled by the same parent company merged into Sichuan Jian’an Industrial Co. Ltd) Chengdu Huachuan Electric Equipment Co., Ltd. Controlled by the same parent company Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. Controlled by the same parent company Harbin Dongan Auto Engine Co., Ltd. Controlled by the same parent company Harbin Dongan Automotive Engine Manufacturing Co., Ltd. Controlled by the same parent company Hafei Motor Co., Ltd. Controlled by the same parent company South Tianhe Chassis System Co., Ltd. Controlled by the same parent company South Inter Air-conditioner Co, .Ltd. Controlled by the same parent company Sichuan Ningjiang Shanchuan Machinery Co, Ltd. Controlled by the same parent company Longchang Shanchuan Shock-absorbing Vehicles Parts Co., Ltd. Controlled by the same parent company Wanyou Automobile Investment Co., Ltd. Controlled by the same parent company China Changan Automobile Group Ningbo Dongxiang Sales Co., Ltd. Controlled by the same parent company China Changan Automobile Group Tianjin Sales Co., Ltd. Controlled by the same parent company United Prosperity (Hongkong) Investment Co., Ltd. Controlled by the same parent company Chongqing Anfu Automobile Co., Ltd. Controlled by the same parent company Chongqing Automobile Air-conditioner Co., Ltd. Controlled by the same parent company Chengdu Wanyou Economic Technological Development Co., Ltd. Controlled by the same parent company Chengdu Wanyou Trading Co., Ltd. Controlled by the same parent company Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. Controlled by the same parent company Guangxi Wanyou Auto Sales and Service Co., Ltd. Controlled by the same parent company 177 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) Related parties Relationship Guizhou Wanyou Auto Sales and Service Co., Ltd. Controlled by the same parent company Nanning Wanyou Auto Sales and Service Co., Ltd. Controlled by the same parent company Suining Wanyou Auto Sales and Service Co., Ltd. Controlled by the same parent company Yunnan Wanyou Auto Sales and Service Co., Ltd. Controlled by the same parent company Chongqing Wanyou Economic Development Co., Ltd. Controlled by the same parent company Chongqing Wanyou Longrui Auto Sales and Service Co., Ltd. Controlled by the same parent company Chongqing Wanyou Longxing Auto Sales and Service Co., Ltd. Controlled by the same parent company Chongqing Wanyou Auto Sales and Service Corporation Controlled by the same parent company United Prosperity (Shenzhen) Investment Co., Ltd . Controlled by the same parent company Chongqing Changfeng Jiquan Machinery Co., Ltd. Controlled by the same parent company Beijing Beiji Mechanical and Electrical Industry Co., Ltd. Controlled by the same ultimate holding company China South Industry Group Finance Co., Ltd. Controlled by the same ultimate holding company CDGM Tanaka Environmental Catalyst Co., Ltd. Controlled by the same ultimate holding company Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. Controlled by the same ultimate holding company Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. Controlled by the same ultimate holding company Chengdu Lingchuan Special Industry Co., Ltd. Controlled by the same ultimate holding company Chengdu Ningxing Automobile Spring Co., Ltd. Controlled by the same ultimate holding company Chengdu Wanyou Filter Co., Ltd. Controlled by the same ultimate holding company Hubei Xiaogan Huazhong Automobile Light Co., Ltd. Controlled by the same ultimate holding company Sichuan Hongguang Machinery and Electrics Co., Ltd. Controlled by the same ultimate holding company Southwest Ordnance Industry Corporation Controlled by the same ultimate holding company 178 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) Related parties Relationship Yunnan Xiyi Industries Co., Ltd. Controlled by the same ultimate holding company Yunnan Xiangyu Auto Sales and Service Co., Ltd. Controlled by the same ultimate holding company Chongqing Dajiang Jiexing Forging Co., Ltd. Controlled by the same ultimate holding company Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. Controlled by the same ultimate holding company Chongqing Dajiang Yuqiang Plastic 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 Automobile Air-conditioner 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 Changan Property Management Co., Ltd. Controlled by the same ultimate holding company Chongqing Wanbing Supplies Ltd. Controlled by the same ultimate holding company Chongqing Wanyou Construction 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 Real Estate Development Co., Ltd. Controlled by the same ultimate holding company Changan Industries Group Co. Ltd. Controlled by the same ultimate holding company Chongqing Changan Construction Co., Ltd. Controlled by the same ultimate holding company Chongqing Changan Min Sheng Logistics Co., Ltd. Controlled by the same ultimate holding company 179 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) Related parties Relationship Chongqing Changan Visteon Engine Control Systems Co., Ltd. Controlled by the same ultimate holding company Chongqing Changrong Machinery Co., Ltd. Controlled by the same ultimate holding company Chongqing Fuji Supply Chain Management Co.,Ltd. Controlled by the same ultimate holding company 5. Major transactions between the Group and its related parties (1) Transactions of goods and services Purchases of goods and services from related parties Related parties Nature of the transaction 2015 2014 CSIA-Chongqing Tsingshan Transmission Branch”) Purchase of spare parts 2,029,948,567.23 1,772,109,900.52 Harbin Dongan Automotive Engine Manufacturing Co., Ltd. Purchase of spare parts 1,896,913,613.67 853,493,934.92 Purchase of spare parts/ Transportation Chongqing Changan Min Sheng Logistics Co., Ltd. fee 981,608,165.56 1,162,228,880.20 Sichuan Jian'an Industrial Co., Ltd Purchase of spare parts 872,386,203.06 867,010,405.30 South Tianhe Chassis System Co., Ltd. Purchase of spare parts 596,567,971.95 652,486,555.11 Chengdu Huachuan Electric Equipment Co., Ltd. Purchase of spare parts 385,126,049.75 322,618,843.01 Chongqing Changan Suzuki Automobile Co., Ltd. Purchase of spare parts 300,657,578.86 1,237,784.75 Changan Ford Automobile Co., Ltd. Purchase of spare parts 288,399,650.56 99,613,995.85 Harbin Dongan Auto Engine Co., Ltd. Purchase of spare parts 243,845,733.45 123,859,663.79 South Inter Air-conditioner Co, .Ltd. Purchase of spare parts 236,463,539.13 234,914,830.47 Chongqing Jianshe Automobile Air-conditioner Co., Ltd. Purchase of spare parts 181,393,940.20 172,323,081.17 Chengdu Wanyou Filter Co., Ltd. Purchase of spare parts 119,448,136.48 84,924,068.98 Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. Purchase of spare parts 106,461,258.63 96,965,314.57 Longchang Shanchuan Shock-absorbing Vehicles Parts Co., Ltd. Purchase of spare parts 102,304,782.07 117,396,987.71 Hubei Xiaogan Huazhong Automobile Light Co., Ltd. Purchase of spare parts 99,262,355.92 133,893,925.14 Yunnan Xiyi Industries Co., Ltd. Purchase of spare parts 90,591,308.01 69,458,376.03 Hafei Motor Co., Ltd. Purchase of spare parts and accept service 87,367,585.98 182,145,346.76 Chongqing Shangfang Automobile Fittings Co., Ltd. Purchase of spare parts 81,971,697.82 104,710,813.33 180 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) Related parties Nature of the transaction 2015 2014 Chongqing Changrong Machinery Co., Ltd. Purchase of spare parts 56,998,012.12 88,458,014.41 Sichuan Ningjiang Shanchuan Machinery Co, Ltd. Purchase of spare parts 52,950,885.59 77,766,730.35 Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. Purchase of spare parts 49,382,805.26 51,489,451.69 Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. Purchase of spare parts 47,577,148.81 32,815.08 Chongqing Wanyou Economic Development Co., Ltd. Purchase of spare parts 43,446,598.21 73,787,651.08 Chongqing Yihong Engineering Plastic Products Co., Ltd. Purchase of spare parts 40,393,068.23 29,834,181.59 Chongqing Changfeng Jiquan Machinery Co., Ltd. Purchase of spare parts 41,026,194.87 35,015,934.14 Sichuan Hongguang Machinery and Electrics Co., Ltd. Purchase of spare parts 35,762,759.84 68,902,942.32 Chengdu Lingchuan Special Industry Co., Ltd. Purchase of spare parts 35,459,452.27 84,097,032.26 Changan Industries Group Co. Ltd. Purchase of spare parts and accept service 18,838,665.39 250,721,264.15 Chongqing Xiyi Automobile Linkage Rod Co., Ltd. Purchase of spare parts 12,146,467.40 31,473,447.99 Chengdu Ningxing Automobile Spring Co., Ltd. Purchase of spare parts 12,636,860.96 12,311,991.13 Chongqing Xiyi Automobile Linkage Rod Co., Ltd. Purchase of spare parts 12,146,467.40 31,473,447.99 Chongqing Dajiang Jiexin Purchase of spare parts 9,243,159.74 5,094,192.00 CDGM Tanaka Environmental Catalyst Co., Ltd. Purchase of spare parts 8,851,213.81 3,688,701.55 United Prosperity (Hongkong) Investment Co., Ltd.(Note 1) Accept service 7,999,691.39 7,379,317.05 Chongqing Changan Property Management Co., Ltd. Accept service 7,677,283.66 5,972,802.68 Chongqing Qingshan Transmission Sales Co., Ltd. Purchase of spare parts 6,243,666.43 7,188,412.53 Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. Purchase of spare parts 3,626,742.98 3,730,906.96 Sichuan Jian'an Industrial Co., Ltd– Chengdu Jian'an Automobile Purchase of spare parts 3,619,804.12 10,445,764.76 Bridge Branch Chongqing Changan Construction Co., Ltd. Accept service 1,000,628.00 - Chongqing Changan Visteon Engine Control Systems Co., Ltd. Purchase of spare parts 986,917.52 3,484,502.40 Chongqing Jialing Yimin Special Equipment Co., Ltd. Purchase of spare parts 640,308.88 1,021,473.02 Yunnan Wanyou Auto Sales and Service Co., Ltd. Purchase of spare parts 398,654.57 250,461.93 Guizhou Wanyou Auto Sales and Service Co., Ltd. Purchase of spare parts 186,593.74 225,194.03 Beijing Beiji Mechanical and Electrical Industry Co., Ltd. Purchase of spare parts 177,196.03 108,726.84 Nanning Wanyou Auto Sales and Service Co., Ltd. Purchase of spare parts 26,440.41 6,664.63 Guangxi Wanyou Auto Sales and Service Co., Ltd. Purchase of spare parts 20,983.68 24,727.51 Chengdu Wanyou Economic Technological Development Co., Purchase of spare parts Ltd. 18,966.82 10,589.08 Chengdu Wanyou Trading Co., Ltd. Purchase of spare parts 7,325.00 568.89 Chongqing Dajiang Yuqiang Plastic Co., Ltd. Purchase of spare parts 3,162.39 139,246.50 Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. Purchase of spare parts - 21,844.49 181 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) Related parties Nature of the transaction 2015 2014 Total 9,198,065,796.45 7,904,078,260.65 The price of the Group’s purchase from related parties is based on contracts agreed by both parties. Note1: For year ended 2015, United Prosperity (Hongkong) Investment Co., Ltd. provides financial service for the Company’s import of machinery. Current year, the Company paid RMB 186,413,118.63 for purchase of machinery overseas on behalf of United Prosperity Investment Co., Ltd. (2013: RMB. 145,020,650.96). Therefore, the Company paid it RMB 7,804,824.98 for its financial service (2014: 6,716,878.20). Besides, for the year ended 2015, United Prosperity (Hongkong) Investment Co., Ltd also provides sales agency service for the Group, and sales amount to RMB 15,842,410.68 ( 2014: RMB62,379,572.86), therefore the Group paid it RMB194,866.41 ( 2014: RMB662,438.85). Sales of goods and services to related parties Related parties Nature of the transaction 2015 2014 Chongqing Wanyou Economic Development Co., Ltd. Sales of cars and spare parts 1,893,496,751.04 1,720,361,095.98 Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. Sales of cars 1,540,894,512.28 950,587,751.13 Yunnan Wanyou Auto Sales and Service Co., Ltd. Sales of cars and spare parts 1,007,510,442.47 944,185,877.17 Guizhou Wanyou Auto Sales and Service Co., Ltd. Sales of cars and spare parts 972,038,136.50 768,930,221.51 Wanyou Automobile Investment Co., Ltd. Sales of cars 795,519,616.62 1,033,758,478.34 Chengdu Wanyou Economic Technological Development Co., Sales of cars and spare parts 714,130,601.04 858,837,220.43 Ltd. Guangxi Wanyou Auto Sales and Service Co., Ltd. Sales of cars and spare parts 194,129,565.95 189,860,380.43 China Changan Automobile Group Tianjin Sales Co., Ltd. Sales of cars 159,770,280.46 93,456,852.77 Nanning Wanyou Auto Sales and Service Co., Ltd. Sales of cars 144,512,690.84 125,685,008.27 Yunnan Xiangyu Auto Sales and Service Co., Ltd. Sales of cars 104,113,109.96 61,268,914.35 Chengdu Lingchuan Special Industry Co., Ltd. Sale of spare parts 102,587,685.47 63,228,179.47 Changan Ford Automobile Co., Ltd. Providing outsourcing processing service 47,189,224.94 144,031,886.74 Chongqing Changan Suzuki Automobile Co., Ltd. Sales of spare parts and providing outsourcing processing service 46,046,820.53 459,288.44 Sichuan Hongguang Machinery and Electrics Co., Ltd. Sale of spare parts 24,122,035.16 36,023,795.72 Changan PSA Automobiles Co., Ltd. Sale of spare parts 21,564,687.73 12,754,584.34 China South Industry Group Finance Co., Ltd. Providing service 15,025,861.00 13,776,308.00 182 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) Related parties Nature of the transaction 2015 2014 Harbin Dongan Automotive Engine Manufacturing Co., Ltd. Sales of cars, spare parts and providing service 12,567,961.94 35,505,936.25 Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. Sale of spare parts 5,042,460.44 47,870,826.73 Chongqing Anfu Automobile Co., Ltd. Sales of cars 3,806,837.62 5,451,299.15 Jiangling Holding Co., Ltd. Providing service 2,830,188.68 497.09 Yunnan Xiyi Industries Co., Ltd. Sale of spare parts 2,272,204.54 2,891,746.17 Changan Mazda Automobile Co., Ltd. Providing service 361,792.45 - Chongqing Changan Min Sheng Logistics Co., Ltd. Sale of spare parts 268,320.54 273,547.11 Changan Industries Group Co. Ltd. Providing service 117,428.62 757,451.01 China Changan Automobile Group Co ,Ltd. Providing service 48,000.00 - Chengdu Huachuan Electric Equipment Co., Ltd. Sale of spare parts 19,927.56 - Chengdu Wanyou Trading Co., Ltd. Sale of spare parts 6,441.03 8,281.19 Hafei Motor Co., Ltd. Sale of spare parts 1,825.09 2,957.76 Chongqing Wanyou Longrui Auto Sales and Service Co., Ltd. Sale of spare parts 1,051.66 1,797.40 Chongqing Shangfang Automobile Fittings Co., Ltd. Sale of spare parts - 10,874,495.13 Chongqing Changan Kuayue Automobile Co., Ltd. Sale of spare parts - 14,018.37 Chongqing Changrong Machinery Co., Ltd. Warehousing - 6,037.75 Chongqing Changan Real Estate Development Co., Ltd. Warehousing - 1,886.79 Total 7,809,996,462.16 7,120,866,620.99 The price of the Group’s sales to related parties is based on contracts agreed by all parties. Other major related-party transactions The price of the Group’s other major related-party transactions is based on contracts agreed by all parties. 183 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 5. Major transactions between the Group and its related parties (continued) Expenses of integrated service charges Related parties Nature of the transaction 2015 2014 Changan Industries Group Co. Ltd. Payment of land rental fees 28,236,828.50 28,705,101.00 Changan Industries Group Co. Ltd. Payment of building rental 33,143,634.60 33,255,483.00 fees Changan Industries Group Co. Ltd. Payment of utilities 197,179,675.16 146,380,856.93 Changan Industries Group Co. Ltd. Payment of firefighting fees 2,740,000.00 2,740,000.00 Changan Industries Group Co. Ltd. Others 16,946,753.93 17,733,060.01 Hafei Motor Co., Ltd. Intergrated service 12,122,919.14 2,898,812.92 Total 290,369,811.33 231,713,313.86 Purchase of project materials Related parties 2015 2014 Chongqing Changan Construction Co., Ltd. 426,445,025.42 98,291,857.00 Chongqing Changan Min Sheng Logistics Co., 5,865,647.63 2,278,127.25 Ltd. Changan Industries Group Co. Ltd. 2,460,439.40 3,763,647.24 Total 434,771,112.45 104,333,631.49 Staff expenses for technical supporting Related parties 2015 2014 Changan Ford Automobile Co., Ltd. 45,220,693.68 45,861,502.13 Changan Mazda Automobile Co., Ltd. 22,983,423.49 24,454,919.90 Changan Ford Mazda Engine Co., Ltd. 17,985,306.56 18,819,603.94 Changan PSA Automobiles Co., Ltd. 11,661,743.99 9,250,000.00 Chongqing Changan Suzuki Automobile Co., Ltd. 8,079,053.00 6,845,142.00 Jiangling Holding Co., Ltd. 1,560,367.52 1,515,928.06 Chongqing Changan Kuayue Automobile Co., Ltd. 332,633.24 820,000.00 Hafei Motor Co., Ltd. 234,449.28 275,035.11 Harbin Dongan Auto Engine Co., Ltd. 99,544.94 - Total 108,157,215.70 107,842,131.14 Technical service income Related parties 2015 2014 Changan PSA Automobiles Co., Ltd. 1,342,469.55 829,246.63 Chongqing Changan Suzuki Automobile Co., Ltd. - 991,656.23 Total 1,342,469.55 1,820,902.86 184 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 5. Major transactions between the Group and its related parties (continued) Capital occupied income Related parties 2015 2014 Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. 1,645,558.12 1,841,788.88 Chengdu Wanyou Economic Technological Development Co., Ltd. 728,388.03 1,240,136.75 Yunnan Wanyou Auto Sales and Service Co., Ltd. 275,512.82 5,208.54 Wanyou Automobile Investment Co., Ltd. 106,964.96 - Chongqing Wanyou Economic Development Co., Ltd. 36,664.09 145,747.02 Yunnan Xiangyu Auto Sales and Service Co., Ltd. 16,513.68 - Guizhou Wanyou Auto Sales and Service Co., Ltd. 12,118.80 - Nanning Wanyou Auto Sales and Service Co., Ltd. 1,198.29 - Guangxi Wanyou Auto Sales and Service Co., Ltd. 609.40 13,302.56 China Changan Automobile Group Tianjin Sales Co., Ltd. - 347,389.75 Total 2,823,528.19 3,593,573.50 (2) Lease between related parties Rent assets to related parties Rental income for Rental income for Leasee Type of leased assets 2015 2014 Chongqing Changan Min Sheng Office building - 143,080.00 Logistics Co., Ltd. Rent assets from related parties Lessors Rental expense for Rental expense for Type of leased assets 2015 2014 Chongqing Changan Min Sheng Storage 2,603,773.60 3,482,865.00 Logistics Co., Ltd. Hafei Motor Co., Ltd. Land 620,790.00 2,464,000.00 Chongqing Changan Real Estate Office building and 2,824,308.00 2,806,108.00 Development Co., Ltd. storage Chongqing Changan Suzuki Storage 440,576.00 - Automobile Co., Ltd. Chongqing Fuji Supply Chain Storage 4,540,249.30 - Management Co.,Ltd. Total 11,029,696.90 8,752,973.00 (3) Transfer of assets between related parties Related party Type of transaction 2015 2014 China Changan Automobile Group Transfer of equity - 439,980,000.00 Co.,Ltd. (Note) Changan Ford Automobile Co., Ltd. Transfer of assets 3,934,632.00 - Chongqing Changan Suzuki Transfer of assets 68,376,068.40 - Automobile Co., Ltd. Total 72,310,700.40 439,980,000.00 185 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 5. Major transactions between the Group and its related parties (continued) Note1: In April 2014, the Group paid the equity investment transfer price with the amount of RMB439,980,000.00 to its parent company China Changan for purchase of 100% equity of Hefei Changan Automobile Co., Ltd. (4) Guarantee of related party In the year of 2015, China Changan, the parent company, provided an unconditionally and irrevocably joint guarantee for the corporate bonds with face value of RMB1,980,000,000.00. Refer to Note V 33. (5) Other related party transaction Item 2015 2014 Compensation of key management personal 14,438,825.00 13,793,354.00 6. 6. Amounts due from/to related parties Notes receivable Related parties 2015 2014 Wanyou Automobile Investment Co., Ltd. 2,544,170,000.00 1,933,900,000.00 China Changan Automobile Group Tianjin Sales Co., Ltd. 77,701,470.00 55,000,000.00 Yunnan Wanyou Auto Sales and Service Co., Ltd. 20,000,000.00 519,000,000.00 Chengdu Wanyou Economic Technological Development Co., 5,000,000.00 22,000,000.00 Ltd. Chongqing Wanyou Economic Development Co., Ltd. 3,500,000.00 153,700,000.00 Chongqing Changan Min Sheng Logistics Co., Ltd. 200,000.00 4,000,000.00 Nanning Wanyou Auto Sales and Service Co., Ltd. - 60,600,000.00 Guangxi Wanyou Auto Sales and Service Co., Ltd. - 57,200,000.00 Guizhou Wanyou Auto Sales and Service Co., Ltd. - 7,500,000.00 Changan Industries Group Co. Ltd. - 2,402,062.50 Total 2,650,571,470.00 2,815,302,062.50 Accounts receivable Related parties 2015 2014 Amount Provision Amount Provision Chongqing Changan Suzuki 62,572,011.08 - 7,301,911.32 - Automobile Co., Ltd. Changan PSA Automobiles Co., Ltd. 29,598,165.00 - 13,541,028.82 - Changan Ford Automobile Co., Ltd. 28,255,292.83 - 38,840,411.42 - Changan Mazda Automobile Co., Ltd. 11,009,839.17 - 10,426,339.17 - Jiangling Holding Co., Ltd. 9,310,692.81 - 6,525,274.41 - China South Industry Group Finance 7,309,377.00 - - - Co., Ltd. Harbin Dongan Automotive Engine 6,951,750.46 - 34,732,286.33 - Manufacturing Co., Ltd. Changan Ford Mazda Engine Co., Ltd. 6,023,814.08 - 5,923,814.08 - Chongqing Changan Kuayue 3,690,822.00 - 5,758,272.00 - 186 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) Related parties 2015 2014 Amount Provision Amount Provision Automobile Co., Ltd. United Prosperity (Hongkong) 1,520,264.30 - 10,856,165.22 - Investment Co., Ltd. Changan Industries Group Co. Ltd. 1,380,710.79 - 1,825,968.36 - Guangxi Wanyou Auto Sales and 748,944.87 - - - Service Co., Ltd. Chengdu Wanyou Economic - - 1,043.72 - Technological Development Co., Ltd. Total 168,371,684.39 - 135,732,514.85 - Prepayments Related parties 2015 2014 Chongqing Changan Suzuki Automobile Co., Ltd. 292,769.25 280,209.25 Chongqing Qingshan Transmission Sales Co., Ltd. - 17,532.12 Total 292,769.25 297,741.37 Other recievables Related party 2015 2014 Chongqing Changan Suzuki Automobile Co., Ltd. 80,000,000.00 - Changan Ford Automobile Co., Ltd. 3,934,632.00 - Chongqing Changan Min Sheng Logistics Co., Ltd. - 181,042.41 Total 83,934,632.00 181,042.41 Notes payable Related parties 2015 2014 Harbin Dongan Automotive Engine Manufacturing Co., Ltd. 479,410,000.00 247,700,000.00 Changan Ford Automobile Co., Ltd. 475,324,029.19 - Chongqing Changan Construction Co., Ltd. 296,563,745.00 44,749,050.70 Chongqing Changan Suzuki Automobile Co., Ltd. 294,658,696.24 - South Tianhe Chassis System Co., Ltd. 201,310,000.00 197,690,000.00 Harbin Dongan Auto Engine Co., Ltd. 109,700,000.00 51,700,000.00 Chongqing Jianshe Automobile Air-conditioner Co., Ltd. 89,890,000.00 87,910,000.00 South Inter Air-conditioner Co, .Ltd. 76,720,000.00 66,670,000.00 Yunnan Xiyi Industries Co., Ltd. 48,350,000.00 50,760,000.00 Chengdu Wanyou Filter Co., Ltd. 43,980,000.00 47,110,000.00 Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. 38,990,000.00 26,860,000.00 Chongqing Changan Min Sheng Logistics Co., Ltd. 26,791,651.72 2,163,387.00 Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. 21,380,000.00 26,520,000.00 Chongqing Wanyou Construction Co., Ltd. 18,898,000.00 3,286,323.00 Longchang Shanchuan Shock-absorbing Vehicles Parts Co., 16,960,000.00 20,210,000.00 Ltd. Hubei Xiaogan Huazhong Automobile Light Co., Ltd. 15,140,000.00 26,520,000.00 Sichuan Ningjiang Shanchuan Machinery Co, Ltd. 7,360,000.00 19,020,000.00 Chongqing Changrong Machinery Co., Ltd. 4,920,000.00 14,680,000.00 Chongqing Dajiang Jiexing Forging Co., Ltd. 4,810,000.00 - Sichuan Hongguang Machinery and Electrics Co., Ltd. 4,520,000.00 16,660,000.00 Chengdu Guangming Tianzhong Environmental Protection 4,390,000.00 860,000.00 Technology Co., Ltd. Chengdu Ningxing Automobile Spring Co., Ltd. 3,350,000.00 4,430,000.00 187 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) Related parties 2015 2014 Chongqing Xiyi Automobile Linkage Rod Co., Ltd. 3,070,000.00 7,490,000.00 Chongqing Shangfang Automobile Fittings Co., Ltd. 2,540,000.00 30,440,000.00 Chongqing Changfeng Jiquan Machinery Co., Ltd. 2,200,000.00 - Chengdu Huachuan Electric Equipment Co., Ltd. 1,810,000.00 85,650,000.00 Changan Industries Group Co. Ltd. 1,092,602.70 1,684,437.30 Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. 690,000.00 1,110,000.00 Chongqing Changan Property Management Co., Ltd. 570,000.00 1,280,000.00 Hafei Motor Co., Ltd. - 464,660,000.00 Chongqing Yihong Engineering Plastic Products Co., Ltd. - 9,190,000.00 Chengdu Lingchuan Special Industry Co., Ltd. - 3,860,000.00 Sichuan Jian'an Industrial Co., Ltd – Chengdu Jian'an - 580,000.00 Automobile Bridge Branch Total 2,295,388,724.85 1,561,443,198.00 Accounts payable Related parties 2015 2014 Changan Ford Automobile Co., Ltd. 245,147,629.51 9,270,810.87 Harbin Dongan Automotive Engine Manufacturing Co., Ltd. 215,741,604.30 219,176,454.82 CSIA-Chongqing Tsingshan Transmission Branch 123,739,750.74 119,749,504.60 South Tianhe Chassis System Co., Ltd. 112,039,307.48 124,362,361.53 Sichuan Jian'an Industrial Co., Ltd 111,450,178.28 119,241,308.69 South Inter Air-conditioner Co, .Ltd. 100,144,195.95 85,699,120.04 Harbin Dongan Auto Engine Co., Ltd. 98,838,874.81 37,836,046.69 Chongqing Changan Suzuki Automobile Co., Ltd. 85,609,784.33 - Chengdu Huachuan Electric Equipment Co., Ltd. 47,575,356.65 8,997,687.52 Hafei Motor Co., Ltd. 31,407,623.53 231,401,070.28 Chongqing Jianshe Automobile Air-conditioner Co., Ltd. 29,805,780.61 37,810,978.41 Hubei Xiaogan Huazhong Automobile Light Co., Ltd. 23,803,051.46 33,857,713.97 Chongqing Changan Min Sheng Logistics Co., Ltd. 22,348,610.06 63,190,489.33 Chengdu Wanyou Filter Co., Ltd. 21,091,610.85 20,513,534.18 Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. 16,155,847.89 19,430,898.24 Chongqing Shangfang Automobile Fittings Co., Ltd. 15,821,551.80 17,173,815.05 Longchang Shanchuan Shock-absorbing Vehicles Parts Co., 14,403,026.51 16,076,620.75 Ltd. Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. 13,666,197.68 125,679.59 Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. 10,359,166.23 23,832,720.53 Chengdu Lingchuan Special Industry Co., Ltd. 7,758,782.79 15,243,707.30 Chongqing Changfeng Jiquan Machinery Co., Ltd. 7,440,982.33 4,909,024.51 Chongqing Changrong Machinery Co., Ltd. 7,365,511.89 8,962,364.46 Sichuan Ningjiang Shanchuan Machinery Co, Ltd. 6,252,805.67 3,886,641.32 Chongqing Yihong Engineering Plastic Products Co., Ltd. 5,338,106.65 3,947,802.82 Chengdu Guangming Tianzhong Environmental Protection 4,660,452.98 3,459,532.82 Technology Co., Ltd. Yunnan Xiyi Industries Co., Ltd. 4,591,599.90 1,690,738.76 Chongqing Qingshan Transmission Sales Co., Ltd. 4,556,221.79 4,630,437.00 Chongqing Wanyou Economic Development Co., Ltd. 4,481,651.40 15,705,418.84 Chongqing Dajiang Jiexing Forging Co., Ltd. 3,674,483.82 2,349,986.93 Sichuan Hongguang Machinery and Electrics Co., Ltd. 3,661,396.48 6,309,820.98 Changan Industries Group Co. Ltd. 3,182,654.75 347,476.12 Chengdu Ningxing Automobile Spring Co., Ltd. 2,021,474.70 3,164,034.29 Chongqing Xiyi Automobile Linkage Rod Co., Ltd. 1,279,973.77 2,828,606.92 Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. 1,030,120.96 695,931.69 188 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) Related parties 2015 2014 Yunnan Wanyou Auto Sales and Service Co., Ltd. 397,942.30 295,982.89 Chongqing Jialing Yimin Special Equipment Co., Ltd. 271,263.58 362,102.19 Beijing Beiji Mechanical and Electrical Industry Co., Ltd. 240,015.76 135,480.50 Chongqing Changan Visteon Engine Control Systems Co., Ltd. 224,517.66 1,459,824.16 Chongqing Automobile Air-conditioner Co., Ltd. 205,041.51 205,041.51 Guizhou Wanyou Auto Sales and Service Co., Ltd. 186,593.64 225,194.03 Chongqing Dajiang Yuqiang Plastic Co., Ltd. 113,514.74 119,814.74 Sichuan Jian'an Industrial Co., Ltd – Chengdu Jian'an 113,477.38 1,847,863.97 Automobile Bridge Branch Nanning Wanyou Auto Sales and Service Co., Ltd. 26,440.42 6,664.63 Guangxi Wanyou Auto Sales and Service Co., Ltd. 20,983.69 24,727.51 Chengdu Wanyou Economic Technological Development Co., 18,966.83 10,589.08 Ltd. Chengdu Wanyou Trading Co., Ltd. 7,325.00 568.89 Chongqing Changan Kuayue Automobile Co., Ltd. 1,382.56 77,208.01 Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. - 21,844.49 Total 1,408,272,833.62 1,270,671,246.45 Advances from customers Related parties 2015 2014 Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. 90,137,523.07 124,492,768.07 Yunnan Wanyou Auto Sales and Service Co., Ltd. 61,850,331.89 97,055,869.67 Chongqing Wanyou Economic Development Co., Ltd. 61,170,435.54 224,012,279.88 Wanyou Automobile Investment Co., Ltd. 32,945,166.00 60,787,767.00 Chengdu Wanyou Economic Technological Development Co., Ltd. 29,338,414.31 45,908,401.66 Guizhou Wanyou Auto Sales and Service Co., Ltd. 27,596,698.89 92,748,342.34 Guangxi Wanyou Auto Sales and Service Co., Ltd. 19,964,328.03 12,826,075.48 Nanning Wanyou Auto Sales and Service Co., Ltd. 13,981,164.87 12,102,977.87 Yunnan Xiangyu Auto Sales and Service Co., Ltd. 12,485,207.00 5,616,867.00 China Changan Automobile Group Tianjin Sales Co., Ltd. 2,343,429.00 9,923,044.00 Hafei Motor Co., Ltd. 670,500.00 - Chongqing Changan Min Sheng Logistics Co., Ltd. 360,581.64 361,998.32 South Air International Co.,Ltd 8,273.00 - Chongqing Wanyou Longrui Auto Sales and Service Co., Ltd. 659.60 1,890.04 United Prosperity (Hongkong)Investment Co., Ltd. - 4,343,194.69 Chengdu Wanyou Trading Co., Ltd. - 38,295.50 Harbin Dongan Auto Engine Co., Ltd. - 44.94 Total 352,852,712.84 690,219,816.46 Other payables Related parties 2015 2014 United Prosperity (Hongkong) Investment Co., Ltd. 254,892,920.19 192,977,320.11 Chongqing Changan Min Sheng Logistics Co., Ltd. 110,766,572.66 233,978,891.80 Changan Industries Group Co. Ltd. 21,569,325.60 14,260,455.80 Chongqing Changan Construction Co., Ltd. 15,303,959.24 8,113,625.16 Chongqing Fuji Supply Chain Management Co.,Ltd. 5,971,532.25 - Hafei Motor Co., Ltd. 4,278,783.60 1,892,739.54 Chongqing Changan Property Management Co., Ltd. 1,322,786.15 793,985.65 Chongqing Wanyou Construction Co., Ltd. 907,708.00 870,654.00 Yunnan Wanyou Auto Sales and Service Co., Ltd. 714,186.12 224,025.84 Chongqing Wanyou Economic Development Co., Ltd. 679,167.70 253,841.75 189 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) Related parties 2015 2014 Guizhou Wanyou Auto Sales and Service Co., Ltd. 387,049.24 100,000.00 Chengdu Wanyou Economic Technological Development Co., Ltd. 150,230.00 151,537.60 Guangxi Wanyou Auto Sales and Service Co., Ltd. 150,000.00 100,000.00 Chengdu Wanyou Filter Co., Ltd. 120,000.00 120,000.00 Chongqing Changan Real Estate Development Co., Ltd. 64,790.00 250,690.60 Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. 34,356.00 82,651.45 Sichuan Jian'an Industrial Co., Ltd - 1,000.00 Total 417,313,366.75 454,171,419.30 7. Cash deposited in related party Related party 2015 2014 China South Industry Group Finance Co., Ltd. 2,988,227,858.26 2,629,151,710.51 Deposits earn interest at the respective bank deposit rates. 8. Loans from related parties Short-term loans Related parties 2015 2014 China South Industry Group Finance Co., Ltd. 50,000,000.00 50,000,000.00 Refer to Note V (22) for the details of the interest rates of the short-term loan. XI Contingencies and commitments 1. Commitments Contracted, but not provided for Item 2015 2014 Capital commitments 14,288,926,343.64 17,047,297,904.10 2. Contingencies As at 31 December 2015, no material contingencies needed to be disclosed. 190 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) XII Events after the balance sheet date 1. The dividends after balance sheet date Profits or dividends to be allocated Refer to Note V 42. 2. Other events after the balance sheet date In February 18th 2016, the Company signed Captial Increase Framework Agreement with Zhejiang Geely Holding Group, Hunan Corun New Energy Co., Ltd.,Kunming Yunnei Power Co., Ltd to invest Corun Hybrid Technology Co., Ltd by RMB 200 million, including RMB 80~100 million technology investment. The investment was approved by the 41th meeting of the sixth session of the board of Directors. The amount and the proportion of the investment shall be subject to the formal agreement. In March 30th 2016, the Company signed Subscription Agreement of Non-public Share Subject to Conditions with China Changan. China Changan offered to invest in non-public A shares by RMB 2 billion with par value of RMB 1 each share. The fund raised will be used for Changan Auto City Automobile Construction Program and Changan auto Engine Production Restructuring Program. The above private placement was approved by the 2nd meeting of the seventh session of the board of Directors, which still needs to be approved by shareholders’ general meeting and China Securities Regulatory Commission. In March 30th 2016, the Stock Option Incentive Plan was approved by the 2nd meeting of the seventh session of the board of Directors, which will grant 31,225 thousand stock options to board directors, executives,key technology and management personnels. The underlying stock is RMB A-share, which accounted 0.67% of the total share of the Company. 2,035 thousand of stock options will be granted initially. The Plan still needs to be approved by State-owned Assets Supervision and Administration Commision, shareholders’ general meeting and China Securities Regulatory Commission. As of the approval date of financial statement, no significant event was noted except the above. 191 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) XIII Other important event 1. Leasing arrangements According to the lease contracts signed with the lessor, the minimum leases payments under non-cancellable leases are as follows: Item 2015 2014 Less than 1 year (including 1 year) 41,401,361.44 28,733,029.03 1 to 2 years (including 2 years) 5,676,787.85 2,768,199.03 2 to 3 years (including 3 years) 2,736,639.18 969,649.44 Over 3 years 8,786,471.32 5,400,000.00 Total 58,601,259.79 37,870,877.50 2. Segment report The Group identifies operating segments based on the internal organization structure, managerial requirements and internal reporting system, and identifies reportable segments based on operating segments and discloses segment information by operating segment. An operating segment is a component of the Group that meets all the following conditions: (1) it engages in business activities from which it may earn revenues and incur expenses; (2) its operating results are regularly reviewed by the Company’s management to make decisions about resources to be allocated to the segment and assess its performance; and (3) the Group is able to obtain relevant accounting information such as its financial position, operating results and cash flows. If two or more segments have similar economic characteristics and meet certain conditions, they can be aggregated into a single operating segment. The revenue and profit of the Group mainly consist of the automobile manufacturing and domestic sales. The Group’s principal assets are in China. The operating performance of the Group has been evaluated as a whole by the management. So the segment report has not been prepared for this year. 192 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) XIV Notes to the Company’s financial statements 1. Accounts Receivable (1) Aging analysis of accounts receivable as at 31 December 2015 is as follows: Aging 2015 2014 Within 1 year 2,208,678,374.74 2,186,464,400.10 1 to 2 years 886,424,958.61 560,274,728.97 2 to 3 years 299,310,373.94 1,900,100.00 Over 3 years 45,063,217.23 55,509,062.79 Total 3,439,476,924.52 2,804,148,291.86 Provision (44,127,656.24) (42,238,460.64) Net Value 3,395,349,268.28 2,761,909,831.22 Movements of provision for accounts receivable are as follows: Reduction Beginning Addition Ending Balance Reversal Write-off 2015 42,238,460.64 1,929,550.63 40,355.03 - 44,127,656.24 2014 39,547,040.38 2,982,767.01 291,346.75 - 42,238,460.64 (2) Analysis of the accounts receivable by category as at 31 December 2015 is as follows: 2015 2014 Item Balance Provision Balance Provision Amount % Amount % Amount % Amount % Individually significant items and analyzed 106,141,701.22 3.09 - - 45,088,295.09 1.61 - - individually for provision Accounts receivable analyzed as groups for provision Group 1. Accounts receivable analyzed for 93,941,328.52 2.73 44,127,656.24 46.97 277,846,638.96 9.91 42,238,460.64 15.20 provision according to aging analysis Group 2. Accounts receivable from 3,239,393,894.78 94.18 - - 2,481,213,357.81 88.48 - - related parties Group subtotal 3,333,335,223.30 96.91 44,127,656.24 1.32 2,759,059,996.77 98.39 42,238,460.64 1.53 Individually insignificant items but analyzed - - - - - - - - individually for provision Total 3,439,476,924.52 100.00 44,127,656.24 1.28 2,804,148,291.86 100.00 42,238,460.64 1.51 193 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 1. Accounts Receivable (continued) In groups, accounts receivable were analyzed for provision by aging: 2015 2014 Aging Balance Balance Provision Provision Amount % Amount % Within 6 48,596,196.09 51.73 - 232,145,184.96 83.56 - months 6 to 12 274,050.19 0.29 13,702.51 3,720.00 0.00 186.00 months Within 1 year 48,870,246.28 52.02 13,702.51 232,148,904.96 83.56 186.00 subtotal 1 to 2 years 7,865.01 0.01 786.50 - - - 2 to 3 years - - - 2,034,616.77 0.73 610,385.03 3 to 4 years 1,900,100.00 2.02 950,050.00 - - - 4 to 5 years - - - 10,176,138.11 3.66 8,140,910.49 Over 5 years 43,163,117.23 45.95 43,163,117.23 33,486,979.12 12.05 33,486,979.12 Total 93,941,328.52 100 44,127,656.24 277,846,638.96 100 42,238,460.64 In groups, accounts receivable were analyzed for provision with other methods: 2015 2014 Group Balance Provision Balance Provision Accounts receivable from 3,239,393,894.78 - 2,481,213,357.81 - related parities As at 31 December 2015, there was no individually significant items but analyzed individually for provision (2014: Nil). (3) For the year ended 2015, provision for accounts receivable amounted to RMB 40,355.03 has been reversed (2014:Nil). (4) For the year ended 2015, there is no write-off for accounts receivable provision (2014: Nil). (5) As at 31 December 2015, accounts receivable from top 5 clients amounted to RMB 2,856,294,781.26, accounted for 83.04% of the total amount (2014：RMB 2,271,423,896.98, accounted for 81% of the total amount) (6) There is no accounts receivable derecognized due to transference of financial assets during 2015 (2014: Nil). 194 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 2. Other receivables (1) Aging analysis of other receivables as at 31 December 2015 is as follows: Aging 2015 2014 Within 1 year 1,014,129,695.10 650,367,439.20 1 to 2 years 764,371.36 5,695,601.19 2 to 3 years 439,781.94 9,865,955.42 Over 3 years 7,708,212.54 4,207,359.05 Total 1,023,042,060.94 670,136,354.86 Provision (2,094,451.68) (1,976,498.02) Net Value 1,020,947,609.26 668,159,856.84 Movements of provisions for other receivables are as follows: Deduction Opening Balance Addition Ending Balance Reversal Write-off 2015 1,976,498.02 117,953.66 - - 2,094,451.68 2014 2,890,162.19 199,234.14 547,628.31 565,270.00 1,976,498.02 (2) Analysis of other receivables by category as at 31 December 2015 is as follows: 2015 2014 Item Balance Provision Balance Provision Amount % Amount % Amount % Amount % Individually significant items and 416,830,000.00 40.74 - - 123,832,000.00 18.48 - - analyzed individually for provision Other receivables analyzed as groups for provision Group 1. Other receivables analyzed for 54,593,677.32 5.34 2,094,451.68 3.84 81,576,371.15 12.17 1,976,498.02 2.42 provision according to aging analysis Group 2. Other receivables 551,618,383.62 53.92 - - 464,727,983.71 69.35 - - from related parties Group subtotal 606,212,060.94 59.26 2,094,451.68 0.35 546,304,354.86 81.52 1,976,498.02 0.36 Individually insignificant items but - - - - - - - - analyzed individually for provision Total 1,023,042,060.94 100 2,094,451.68 0.20 670,136,354.86 100 1,976,498.02 0.29 195 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 2. Other receivables (continued) In groups, other receivables were analyzed for provision by aging: 2015 2014 Aging Balance Balance Provision Provision Amount % Amount % Within 6 50,178,793.87 91.92 - 77,276,646.60 94.73 - months 6 to 12 2,097,465.20 3.84 104,873.26 370,404.77 0.45 18,520.24 months Within 1 year 52,276,259.07 95.76 104,873.26 77,647,051.37 95.18 18,520.24 subtotal 1 to 2 years 230,114.30 0.42 23,011.43 1,876,797.77 2.30 187,679.78 2 to 3 years 99,781.94 0.18 29,934.58 65,000.00 0.08 19,500.00 3 to 4 years - - - 254,448.01 0.31 127,224.01 4 to 5 years 254,448.01 0.47 203,558.41 547,500.00 0.67 438,000.00 Over 5 years 1,733,074.00 3.17 1,733,074.00 1,185,574.00 1.46 1,185,573.99 Total 54,593,677.32 100 2,094,451.68 81,576,371.15 100.00 1,976,498.02 (3) For the year ended 2015, no provision for other receivables has been reversed (2014: RMB 547,628.31). (4) For the year ended 2015, there was no write-off for other receivable provision (2014: RMB 565,270.00). (5) Analysis of other receivables by nature is as follows: Nature 2015 2014 Warranty 38,441,611.68 227,831,662.61 Energy-saving subsidy 416,830,000.00 123,832,000.00 Disposal income of assets 167,193,450.84 94,999,768.40 Sales income of molds 107,864,645.53 89,085,988.80 Pretty cash 37,968,895.82 50,443,213.37 Technical royalties 40,227,188.27 25,556,158.23 Security deposits 4,152,677.70 24,926,854.13 Loans to third parties 190,800,286.90 24,782,800.00 Disbursements 6,683,315.24 5,695,779.26 Others 10,785,537.28 1,005,632.04 Total 1,020,947,609.26 668,159,856.84 196 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 2. Other receivables (continued) (6) As at 31 December 2015, top five debtors of other receivables are as follows: Proportion of total Ending balance of Debtors Amount Aging other receivables provision (%) First 416,830,000.00 Within 1 year 40.74 - Second 215,609,680.94 1-2 years 21.08 - Third 166,000,000.00 Within 1 year 16.23 - Forth 80,000,000.00 Within 1 year 7.82 - Fifth 24,782,800.00 1-2 years 2.42 - Total 903,222,480.94 88.29 - (7) There is no other receivables derecognized due to transfer of financial assets during 2015 (2014: Nil). 197 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 3. Long-term equity investments 2015 Investment Other Ending income/loss under comprehensive Other movements Dividend of cash Ending Balance of book Balance of Investee Opening Balance Addition Deduction equity method income of equity declared Provision value provision Joint ventures Chongqing Changan Suzuki (207,954,783.71) 1,504,417.96 - - 1,201,823,308.72 Automobile Co., Ltd. 1,408,273,674.47 - - - - Jiangling Holding Co., Ltd. 2,334,057,207.68 - - 374,818,810.93 (966,718.09) 734,643.12 - - 2,708,643,943.64 - Changan Ford Automobile 8,687,052,398.21 - (7,800,000,000.00) - 5,504,416,392.18 Co., Ltd. 4,617,363,993.97 - - - - Changan Mazda 825,535,684.82 - (500,000,000.00) - 1,998,126,415.64 Automobile Co., Ltd. 1,672,590,730.82 - - - - Changan Ford Mazda 85,303,345.52 - (23,684,883.31) - 781,796,686.36 Engine Co., Ltd. 720,178,224.15 - - - - Changan PSA (332,842,518.18) - - - 1,462,904,374.63 Automobiles Co., Ltd. 1,795,746,892.81 - - - - Associates Chongqing Xiyi Automobile 9,220,184.59 - - (1,708,753.82) - - - - 7,511,430.77 - Linkage Rod Co., Ltd. Chongqing Changan Kuayue Automobile Co., 66,558,691.97 - - 9,660,693.86 - - - - 76,219,385.83 - Ltd. Chongqing Changan Kuayue Automobile Sales - - - - - - - - - - Co., Ltd. Beijing Fang’an taxi Co., - - - - - - - - - - Ltd. Chongqing Changan Automobile Financing - 1,155,000,000.00 1,155,000,000.00 Co.,Ltd - Subsidiaries Nanjing Changan 422,533,259.00 - - - - - - - 422,533,259.00 - Automobile Co., Ltd. Hebei Changan Automobile 438,223,236.00 - - - - - - - 438,223,236.00 - Co., Ltd. Chongqing Changan International Automobile 13,068,580.00 - - - - - - - 13,068,580.00 - Sales Co., Ltd. Chongqing Changan 29,700,000.00 - - - - - - - 29,700,000.00 - Automobile supporting 198 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) service Co., Ltd. Chongqing Changan Automobile Sales Co., 48,500,000.00 - - - - - - - 48,500,000.00 - Ltd. Chongqing Changan Automobile sales 8,050,000.00 - - - - - - - 8,050,000.00 - subsidiaries Chongqing Changan Special Automobile sales Co., 2,500,000.00 - - - - - - - 2,500,000.00 - Ltd. Chongqing Changan Europe Design Academy Co., 134,879,700.00 - - - - - - - 134,879,700.00 - Ltd. Chongqing Changan new Engergy Automobile Co. 18,850,000.00 - - - - - - - 18,850,000.00 - Ltd. Changan United Kingdom 981,934.40 - - - - - - - 981,934.40 - R&D Center Co., Ltd. Beijing Changan R&D 1,000,000.00 - - - - - - - 1,000,000.00 - Center Co., Ltd. Harbin Changan R&D 1,000,000.00 - - - - - - - 1,000,000.00 - Center Co., Ltd. Shanghai Changan R&D 1,000,000.00 - - - - - - - 1,000,000.00 - Center Co., Ltd. Changan Japan Designing 1,396,370.15 - - - - - - - 1,396,370.15 - Center Co., Ltd. Changan United States R&D 1,317,720.00 - - - - - - - 1,317,720.00 - Center Co., Ltd. Hebei Baoding Changan Bus 176,002,613.18 - - - - - - - 176,002,613.18 - Co., Ltd. Hefei Changan Automobile 35,367,765.23 - - - - - - - 35,367,765.23 - Company Ltd. Changan Automobile Russia 1,242,589.15 - - - - - - - 1,242,589.15 - Co., Ltd. Changan Brazil Holdings 2,161,591.21 422,965.76 - - - - - - 2,584,556.97 - Limited Total 13,961,764,958.78 1,155,422,965.76 - 9,439,864,877.63 (966,718.09) 2,239,061.08 (8,323,684,883.31) - 16,234,640,261.85 - 199 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 2014 Investment Other Other Ending income/loss under comprehensiv movements of Ending Balance of book Balance of Investee Opening Balance Addition Deduction equity method e income equity Dividend of cash declared Provision value provision Joint ventures Chongqing Changan Suzuki 1,422,871,007.19 - (28,024,712.81) 10,299,515.59 - 3,127,864.50 - - 1,408,273,674.47 Automobile Co., Ltd. - Jiangling Holding Co., Ltd. 1,970,068,511.81 - - 363,988,695.87 - - - - 2,334,057,207.68 - Changan Ford Automobile 5,168,880,471.54 - - 7,148,483,522.43 - - (7,700,000,000.00) 4,617,363,993.97 - Co., Ltd. Changan Mazda 1,165,287,267.32 - - 507,303,463.50 - - - - 1,672,590,730.82 - Automobile Co., Ltd. Changan Ford Mazda 599,468,669.92 - - 120,709,554.23 - - - - 720,178,224.15 - Engine Co., Ltd. Changan PSA 1,957,257,672.14 - - (161,510,779.33) - - - - 1,795,746,892.81 - Automobiles Co., Ltd. Associates Chongqing Xiyi Automobile 8,772,039.08 - - 448,145.51 - - - - 9,220,184.59 - Linkage Rod Co., Ltd. Chongqing Changan Kuayue Automobile Co., 64,068,246.00 - - 2,490,445.97 - - - - 66,558,691.97 - Ltd. Chongqing Changan Kuayue Automobile Sales - - - - - - - - - - Co., Ltd. Beijing Fang’an taxi Co., 998,629.64 - - (998,629.64) - - - - - - Ltd. - Subsidiaries Nanjing Changan 422,533,259.00 - - - - - - - 422,533,259.00 - Automobile Co., Ltd. Hebei Changan Automobile 437,935,236.00 288,000.00 - - - - - - 438,223,236.00 - Co., Ltd. Chongqing Changan International Automobile 13,068,580.00 - - - - - - - 13,068,580.00 - Sales Co., Ltd. Chongqing Changan Automobile supporting 29,700,000.00 - - - - - - - 29,700,000.00 - service Co., Ltd. Chongqing Changan Automobile Sales Co., 48,500,000.00 - - - - - - - 48,500,000.00 - Ltd. Chongqing Changan 8,050,000.00 - - - - - - - 8,050,000.00 - Automobile sales 200 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) subsidiaries Chongqing Changan Special Automobile sales Co., 2,500,000.00 - - - - - - - 2,500,000.00 - Ltd. Chongqing Changan Europe Design Academy Co., 134,879,700.00 - - - - - - - 134,879,700.00 - Ltd. Chongqing Changan new Engergy Automobile Co. 18,850,000.00 - - - - - - - 18,850,000.00 - Ltd. Changan United Kingdom 981,934.40 - - - - - - - 981,934.40 - R&D Center Co., Ltd. Beijing Changan R&D 1,000,000.00 - - - - - - - 1,000,000.00 - Center Co., Ltd. Harbin Changan R&D 1,000,000.00 - - - - - - - 1,000,000.00 - Center Co., Ltd. Jiangxi Changan R&D 2,000,000.00 - (2,000,000.00) - - - - - - - Center Co., Ltd. Shanghai Changan R&D 1,000,000.00 - - - - - - - 1,000,000.00 - Center Co., Ltd. Changan Japan Designing 1,396,370.15 - - - - - - - 1,396,370.15 - Center Co., Ltd. Changan United States R&D 1,317,720.00 - - - - - - - 1,317,720.00 - Center Co., Ltd. Hebei Baoding Changan Bus 176,002,613.18 - - - - - - - 176,002,613.18 - Co., Ltd. Hefei Changan Automobile - 35,367,765.23 - - - - - - 35,367,765.23 - Company Ltd. Changan Automobile Russia - 1,242,589.15 - - - - - - 1,242,589.15 - Co., Ltd. Changan Brazil Holdings - 2,161,591.21 - - - - - - 2,161,591.21 - Limited Total 13,658,387,927.37 39,059,945.59 (30,024,712.81) 7,991,213,934.13 - 3,127,864.50 (7,700,000,000.00) - 13,961,764,958.78 - 201 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 4. Operating revenue and cost (1) Operating revenue, operating cost 2015 2014 Item Revenue Cost Revenue Cost Primary 63,644,433,379.55 51,797,362,297.58 51,229,276,554.88 42,760,989,717.11 Operation Other 1,217,695,737.36 818,767,136.10 1,265,377,194.16 685,289,608.51 Operation Total 64,862,129,116.91 52,616,129,433.68 52,494,653,749.04 43,446,279,325.62 (2) Revenue listed by products are as follows: 2015 2014 Item Revenue Cost Revenue Cost Sales of 64,607,395,383.61 52,412,853,210.74 52,283,588,111.85 43,257,415,173.92 goods Outsourcing 254,733,733.30 203,276,222.94 211,065,637.19 188,864,151.70 processing Total 64,862,129,116.91 52,616,129,433.68 52,494,653,749.04 43,446,279,325.62 5. Investment income (1) Details of investment income Item 2015 2014 Long-term equity investment income 9,439,864,877.63 7,991,213,934.13 under equity method Long-term equity Iinvestment income through resulted from disposal of - (1,236,986.88) long-term equity Investment income during holding period of available-for-sale financial 57,544,215.31 33,382,435.46 assets Others 1,839,685.25 6,035,833.33 Total 9,499,248,778.19 8,029,395,216.04 (2) Available-for-sale financial assets under cost method Investee 2015 2014 Cash dividend received from China 52,219,215.31 31,252,435.46 South Industry Group Finance Co., Ltd. 202 Chongqing Changan Automobile Company Limited Notes to Financial Statement Year ended 31 December 2015 (Expressed in Renminbi Yuan) 5. Investment income (continued) (3) Long-term equity investment income under equity method Reason for the Investee 2015 2014 fluctuation Changan Ford Automobile Increase in profit due 8,687,052,398.21 7,148,483,522.43 Co., Ltd. to sales expansion Changan Mazda Increase in profit due 825,535,684.82 507,303,463.50 Automobile Co., Ltd. to sales expansion Chongqing Changan Suzuki Decrease in profit due (207,954,783.71) 10,299,515.59 Automobile Co., Ltd. to sales derease Changan Ford Mazda Increase in profit due 85,303,345.52 120,709,554.23 Engine Co., Ltd. to sales expansion Increase in profit due Jiangling Holding Co., Ltd. 374,818,810.93 363,988,695.87 to sales expansion Chongqing Xiyi Automobile Decrease in profit due (1,708,753.82) 448,145.51 Linkage Rod Co., Ltd. to sales derease Beijing Fang’an Taxi Co., Investment loss unre - (998,629.64) Ltd. cognized Changan PSA Automobiles High cost due to initial (332,842,518.18) (161,510,779.33) Co., Ltd. operation Chongqing Changan Increase in profit due Kuayue Automobile 9,660,693.86 2,490,445.97 to sales expansion Co.,Ltd. Total 9,439,864,877.63 7,991,213,934.13 203 1. Schedule of non-recurring profit and loss Item 2015 Gain and loss arising from disposal of non-current assets (including writing-off of accrued impairment loss on assets) (34,314,067.34) Government grants (excluding the grants closely related to enterprise business, which the Group 441,926,607.20 enjoyed according to the allotment standards or quantitative criteria of the country) Other non-operating income and expenses 16,816,296.11 Capital occupied income from non-financial entities 38,457,111.56 Effect on income tax (65,174,314.56) Effect on minority shareholders (after tax) (5,010,753.72) Total 392,700,879.25 Note: the non-recurring profit and loss were presented with amount before tax. The Group disclosed non-recurring profit and loss items in accordance with the regulations issued by China Security Regulation Commission, No 1 Regulation of Information Disclosure of Public Companies-Non-recurring Profit and Loss 2. Return on equity and earnings per share 2015 Weighted average return Earnings per share Profit on equity (%) Basic EPS Diluted EPS Net profit attributable to the Company’s ordinary 33.14 2.13 N/A shareholders Net profit attributable to the Company’s ordinary shareholders after deducting non-recurring profit and 31.84 2.05 N/A loss 2014 Weighted average return Earnings per share Profit on equity (%) Basic EPS Diluted EPS Net profit attributable to the Company’s ordinary 34.20 1.62 N/A shareholders Net profit attributable to the Company’s ordinary shareholders after deducting non-recurring profit and 32.96 1.56 N/A loss The Company has no dilutive potential ordinary shares. In accordance with the regulations issued by China Security Regulation Commission, Regulation of Information 204 Disclosure of Public Companies—the Calculation and Disclosure of Return of Net Assets and Earning per Share (2010 Revision), the Group disclosed the return of net assets and earnings per share in the reporting period. The basic earnings per share are calculated by the net profit attributable to the Company’s ordinary shareholders divided by the weighted average outstanding ordinary shares. 205 Chapter 10 Documents for Future Reference 1. Financial reports with signatures and stamps of the legal representative, the chief accountant and the chief of accounting organization. 2. The original copy of audit report with the stamp of the CPA firm and the signature and stamp of the Certified Public Accountant. 3. All the original documents and manuscripts of the Company which has been disclosed in the reporting period in the newspapers designated by China Securities Regulatory Commission. Annual reports disclosed in other securities markets. Chairman of the Board: General Manager: Mr. Xu Liuping Mr. Zhu Huarong Chongqing Changan Automobile Co., Ltd. 15 April, 2015 206
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