Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Chongqing Changan Automobile Company Limited
2017 Semi-annual Report
August 2017
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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.
All the directors attended the board meeting for reviewing the semi-annual report except the
following director：
Name Title Reason for the absence Name of Trustee
Xu Liuping Chairman of the Board Job arrangement None
For the first half of 2017, the Company has no plans of cash dividend, no bonus shares and no share
converted from capital reserve.
Chairman of the Board Mr. Xu Liuping, the Chief of Financial officer Wang Kun, and the Chief of
Accountant Department Mr. Chen Jianfeng hereby declare that the financial statements enclosed in this
semi-annual report are true, accurate and complete.
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 report shall be presented in both Chinese and English, and should there be any conflicting
understanding of the text, the Chinese version shall prevail.
1
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
CONTENTS
Chapter 1 Important Notice, Contents, and Definitions ............................................. 1
Chapter 2 Company Profile & Main Financial Indexes ............................................. 4
Chapter 3 Analysis of Main Business ........................................................................ 7
Chapter 4 Business Discussion and Analysis ............................................................. 9
Chapter 5 Important Matters .................................................................................... 15
Chapter 6 Changes in the shareholding of the company and shareholders.............. 22
Chapter 7 Information about Directors, Supervisors, and Senior Management ...... 26
Chapter 8 Corporate Bonds ...................................................................................... 26
Chapter 9 Financial Statements ................................................................................ 27
Chapter 10 Documents for Future Reference......................................................... 142
2
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Definitions
Items Definitions
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 Automobile Co., Ltd，a JV of the Company
Jiangling Holding Refers to Jiangling Holding Co., a JV of the Company
Changan Finance Refers to Changan Auto Finance Co.Ltd , Company's Joint Stock Company
Financial Co. of China South Industries Group Corporation, a subsidiary
Financial Co. of CSGC Refers to
company of China South Industries Group Corp.
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 Joint Stock
CMAL Refers to
Company of China Changan
3
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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
Ⅱ. Contact Information
Secretary of the Board of Directors Securities affairs representative
Name Wang Kun( On behalf), Li Jun
No. 260, East Jianxin Road, Jiangbei District,
Contact address
Chongqing
Telephone 023-67594008
Fax 023-67866055
E-mail address cazqc@changan.com.cn
III. Others
1. Way of contact
Whether registration address, office address and its post code as well as website and email of the Company changed in the
reporting period or not
□ Applicable √ Not applicable
The registration address, office address and post code as well as website and email of the Company did not change in the
reporting period. See more details in Annual Report 2016.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, the website for the publish of the semi-annual report appointed by CSRC
and the preparation place for semi-annual report did not change in the reporting period. See more details in Annual Report 2016.
4
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
3. Other relevant information
Whether other relevant information changed in the reporting period or not
□ Applicable √ Not applicable
IV. Summary of Accounting Data and Financial Indexes
Does the company conduct the retrospective adjustment or restatement over previous years accounting data due to changes of
accounting policies or accounting errors?
□Yes √ No
In RMB yuan
Increase/decrease
Report period Same period of last year
y-o-y (%)
Operating revenue (Yuan) 33,555,213,109.46 35,801,762,921.25 -6.27%
Net profit belonging to shareholders of
4,620,545,739.52 5,490,988,582.32 -15.85%
the listed company (Yuan)
Net profit belonging to shareholders of
the listed company after deduction of 3,556,761,447.08 5,051,311,451.92 -29.59%
non-recurring profit and loss (Yuan)
Net cash flow arising from operating
4,959,704,724.11 4,620,787,228.07 7.33%
activities (Yuan)
Basic earnings per share (Yuan/Share) 0.96 1.18 -18.64%
Diluted earnings per share (Yuan/Share) 0.96 1.18 -18.64%
Return on equity (ROE) (%) 10.42% 15.43% 降低 5.01 个百分点
Increase/decrease
Report period Same period of last year
y-o-y (%)
Total assets (RMB) 107,282,719,087.38 106,510,473,733.93 0.73%
Net assets attributable to shareholder of
45,100,001,707.49 43,573,812,403.87 3.50%
the listed company (RMB)
V. 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
5
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
VI. Non-recurring items and amounts
√ Applicable □Not applicable
Unit: Yuan
Item Amount Illustration
Gain/loss of non-current assets 8,914,486.07
The government subsidies included in the current profits and losses
(except government subsidies closely related to corporate business, 1,153,834,905.86
entitled in fixed quota or quantity)
Current net profit from beginning to combined date of business
-
combination under common control
Investment income from disposing available-for-sale equity securities -
Other non-business income and expenditures other than the above items 30,630,628.07
Interest on deferred payment of funds received by non-financial
16,835,480.06
enterprises
Subtract: Influenced amount of income tax 66,312,801.29
Influenced amount of miniority shareholders’ equity (after tax) 80,118,406.33
Total 1,063,784,292.44 --
According to “Public offering of securities information disclosure of the company's information disclosure announcement No. 1 –
non-recurring gains and losses” defined non-recurring items ,and “Public offering of securities information disclosure of the
company's information disclosure announcement No. 1 - non-recurring gains and losses” The items, defined as recurring items, are
listed in the announcement No. 1 and 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. 1 – non-recurring gains and losses” about non-recurring gains
and losses to define a case of recurring profit or loss.
6
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Chapter 3 Analysis of Main Business
I．The main business of the Company in the reporting period
Does the Company need to comply with the disclosure requirements of special industry
□Yes √No
During the reporting period, the company's main business is the manufacturing and sale of cars (including sedan), the
production of automobile engine products. The main products include CS series SUV, sedans like Raeton, Eado series, Alsvin series,
MPV such as Oushang, Honor, Eulove and Linmax.
By taking "technical innovation and everlasting care" as the core value, adhering to the brand philosophy of “build worldwide
reputation and create value” and focusing on science and technology innovation leading the auto civilization, Changan automobile
strives to provide customers with amazing products and services. After years of development, the products cover low & middle class,
wide range and various series such as sedans, mini cars, buses, trucks, SUV, MPV and engines with displacement from 1.0L to 2.0L.
Up to now, a series of classic independent brand models such as Eado, Eado XT, Alsvin, CS15, CS35,CS75, CX70, Oushang, and
Honor and several brand new models such as CS95, CS55, Linmax, and Oushang A800, admired by the market and loved by the
consumers , were successfully launched.
II. Major changes in assets
1、 Major changes in assets
□ Applicable √ Not applicable
No significant changes in major assets during the reporting period
2、 Main Overseas Assets
□ Applicable √ Not applicable
III. Core Competence Analysis
In the first half of 2017, Changan Automobile spent 1.585 billion yuan on R&D, and comprehensively promoted more than 300
scientific research projects. Based on the three technology labels of fashion, intelligence, and green and the new release of designing
concept of "dynamic life, and double rotation of intelligence and color", the family characteristics of Chang' an car models
gradually formed, and 7 products were listed on time.
1. Reform and Development
Changan Automobile focused on intelligent business and new energy vehicle business, strengthened the fashion and experience
design, deepened the project matrix management, set up intelligent research institute, new energy research institute and modeling
design institute, and improved the product development efficiency through level reduction by specialization and flattening.
The construction of the Global R&D Center of Changan Automobile with the total investment of 3.15 billion yuan was initiated
and it would become the general hub of the global R&D system of Changan Automobile. The Center will work together with the
R&D institutions from China, the United States, Britain, Italy, Japan and other places to develop the product development and test
verification, which indicates the further improvement of the global R&D strength of Changan Automobile.
2. Research and Development Achievements
Brand new products such as CS95, MPV Linmax, Eulove EV, CS75 Scirocco, CX70T and other products were listed. CS55, and
Oushang A800 made their debut on Shanghai auto show. The cumulative sales volume of the Changan Automobile CS series,
surpassed 1 million. Both the CS75 and CX70 broke through tens of thousands of units in a month.
CS95 was the first model to carry the Tbox remote information processor system and " Xiao'an, hello! " intelligent voice system,
and achieve the information sharing and equipment interconnection of users, car terminal, home end; CS95 Smart Edition achieved a
7
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
5-star security certification for C-NCAP crash test with 54.1 points; Oushang A800 carried the intelligent active filter system to
effectively filter the PM 2.5 particles in the air, so that the car owners could enjoy the forest level breathing in the vehicle at any time.
The car model of Reaton equipped with Baidu Carlife, Codriver, Mycar and other intelligent interconnection technology was
unveiled at the 50th CES exhibition ( international consumer electronics exhibition ).
New Benben EV participated in the fourth Qinghai Lake ( international ) Electric Vehicle Challenge, and won six awards such
as "best acceleration performance award "," best control performance award ", " best fast filling ability award "," best climbing
capacity award ", " best performance of battery life award "," best quiet effect award " in Sedan A Group.
3. Innovation Cooperation
Changan Automobile signed the strategic cooperation agreement and lauched the comprehensive and in-depth cooperation in
intelligent voice, artificial intelligence, intelligent network, calculation, perception, communication, storage and interaction, etc. with
Iflytek, NEXTEV, and Intel so as to jointly promote the scientific and technological innovation and strategic development in the field
of automobile intelligence. At the same time, Changan Automobile joined in Baidu Apollo Program to achieve the in-depth
cooperation in the field of intelligent travel and the goal of automatic driving togrther.
4. The brand growth accelerating and the brand status elevated
Changan Automobile utilized the authoritative platform resources and huge planning to promote the brand awareness
and reputation and improve the brand image constantly. Changan Automobile was honored to be selected into "2017 National
Brand Plan" by CCTV, and became the leader of Chinese Automobile Brands. Following "The Show of Talented Chinese", in 2017,
Changan Automobile contined to exclusively name the CCTV fisrt major show of "Happy Chinese". On April 7, 2017, Changan
Automobile successfully held the strategy conference of "Double Rotation of Intelligence and Color" design concept in Beijing,
formally issuing a new design philosophy - "life dynamic ", new design concept and language -"Double Rotation of Intelligence and
Color ", which started a brand new era of Changan Automobile brand. On may 10th, the first China automobile Brand Day, the
eleventh China brand festival news conference was held in Beijing. According to Sina financial statistics, among the netizen's
favorite famous Chinese brand, Changan Automobile ranked seventh with the 1st place among the automobile industry. Changan
Automobile has formed a brand image of " high quality product provider ", according to a survey of thousands of samples by Ipsos, a
global market research consultancy.
5.Product promotion making steady progress with gradually complete product pedigree
On March 28th, 2017, the high- performance, large flagship SUV, Changan CS95 was released in Beijing as another
blockbuster product of Chinese brand to touch the 200, 000 price range, and would play the role of boosting up Changan brand
through the product. On April 19th, SUV Changan CS55 made its global debut on the 17th Shanghai Auto Show. CS55 was
positioned between CS75 and CS35 with the huge potential of becoming a hot-selling product. On May 18, adhering to the design
essence of "Life Dynamic, Double Rotation of Intelligence and Color", safe and exquisite MPV Linmax was listed in Zhengzhou and
a strong competitor in the medium-sized MPV market. At this point, Changan Automobile initially formed the entire product
pedigree from the low to high, covering the sedan, SUV and MPV, and became one of a few Chinese brand automobile enterprises
with the entire product pedigree.
8
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Chapter 4 Business Discussion and Analysis
I、Overview
In the first half of 2017, the production and sales scale of China's auto market climbed steadily but slower compared with the
growth rate of 2016. By innovating strategy management, maintaining strategic concentration, carrying out both independent
development and joint venture cooperation and implementing leading business plan, Changan Automobile achieved the production
and sales scale of 1.43 million,occupying 10.7% of the market share. The company maintained to rank the fourth in the industry and
has about 15 million users worldwide. At the same time the Chinese-brand passenger car’s brand, product and technology and system
abilities continue to enhance, which lay a solid foundation for the future development of Changan Automobile, and strengthen the
Changan Automobile's confidence and determination of building the world-class enterprise.
Changan Automobile implemented the leading business plan, and strived to build a world-class automobile enterprise. The
Company would seize the key strategic opportunities in the next ten years, especially in the next 3-5 years, to realize rapid, healthy
and sustainable development. The Company pushed forward both independent development and joint venture cooperation,
accelerated the development of the independent operation, strived to build the foundation for a world-class enterprise, further
strengthened the joint venture cooperation and innovated the development path for joint venture cooperation. The Company regarded
the Chinese market as the main and developed overseas markets actively and steadily. The Company regarded the new energy
technology as a breakthrough and information technology innovation as a means to accelerate the transformation from a traditional
manufacturing enterprise to a modern manufacturing service enterprise.
II. Analysis of Main Business
1、Overview
Are they identical with those disclosed in the "I、Overview" in the Chapter of Business Discussion and Analysis?
√Yes □No
Please refer to the content of "I、Overview" in the Chapter of Business Discussion and Analysis.
2、Y-o-y changes of main financial data
In RMB yuan
Same period of last Y-o-y
Current period Reasons for changes
year（restated） increase/decrease
Operating
33,555,213,109.46 35,801,762,921.25 -6.27%
revenue
Operating cost 28,792,755,690.32 29,867,338,185.68 -3.60%
Operating
2,004,176,042.01 2,120,708,553.33 -5.49%
expenses
General and
administrative 1,785,734,071.11 2,212,296,933.23 -19.28%
expenses
Financial
-246,821,602.15 -107,788,565.12 -128.99% Increase in interest income
expenses
9
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Income tax
40,996,104.66 229,546,499.16 -82.14% Decrease in current income tax expenses
expense
Subtotal of cash
inflow from
4,959,704,724.11 4,620,787,228.07 7.33%
operating
activities
Subtotal of cash
Mainly due to paying less for the purchase of fixed
inflow from
3,237,426,642.84 1,681,413,173.43 92.54% assets, intangible assets and other long-term assets and
investment
receiving more investment income
activities
Subtotal of cash
Mainly due to the increase of debt repayment and cash
in-flow from -4,406,635,181.43 -2,935,209,603.13 -50.13%
payments for other financing activities.
financing activity
Net increase in
cash and cash 3,815,834,313.15 3,364,226,826.01 13.42%
equivalents
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
3、Composition of Main Business
单位：元
Increase or
Increase or
decrease of
Gross decrease of Increase or decrease
Operating revenue Operating cost operating
profit operating of gross profit y-o-y
revenue
cost y-o-y
y-o-y
According to industries
Automobile
32,617,521,902.09 28,525,190,993.69 12.55% -7.29% -3.17% Down 3.72%
Production
According to products
Vehicles 32,543,856,637.89 28,413,429,812.27 12.69% -7.28% -3.27% Down 3.63%
According to region
China 31,939,968,925.48 27,825,290,643.34 12.88% -8.13% -4.21% Down 3.57%
III. Analysis of non principal business
□ Applicable √Not applicable
10
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
IV. Assets and liability
1. The significant changes of the assets and liability
单位：元
Current period Same period of last year
Increase/
Ratio in Ratio in
Item decrease YoY change （%）
Amount total assets Amount total assets
(%)
（%） （%）
Mainly due to the net cash
Monetary capital 27,882,391,375.71 25.99% 21,358,313,852.95 22.37% 3.62% flow generated from investing
and operating activities.
Accounts
1,900,029,553.88 1.77% 1,479,933,520.99 1.55% 0.22%
receivable
Inventory 10,765,993,986.86 10.04% 10,211,642,671.44 10.70% -0.66%
Investment
7,669,628.62 0.01% 7,896,340.18 0.01% -
property
Long-term equity
14,116,985,988.70 13.16% 15,780,876,706.47 16.53% -3.37%
investment
Fixed assets 15,652,944,713.96 14.59% 13,776,741,576.90 14.43% 0.16%
Construction in
4,054,053,618.83 3.78% 4,651,721,477.89 4.87% -1.09%
progress
Short-term loan 188,810,327.67 0.18% 166,214,513.55 0.17% 0.01%
Long-term loan 19,980,912.00 0.02% - 0.00% 0.02%
2、Assets and liabilities measured by fair value
Unit: Ten Thousand Yuan
Gain/loss on Cumulative fair
Amount at Impairment
fair value value change Amount at Amount at year
year provisions in the
Item change in the recorded into year end Item beginning
beginning reporting period
reporting equity
period
Financial assets
Financial assets
25,311.50 -5,396.00 17,627.50 19,915.50
available for sales
Subtotal of financial
25,311.50 -5,396.00 17,627.50 19,915.50
assets
11
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Total 25,311.50 -5,396.00 17,627.50 19,915.50
Whether the measurement attributes of main assets in the reporting period have significantly changed
□Yes √No
3、Property rights limits by the end of report period
book value at the end of this
Item Limited Reason
year
Monetary fund 1,073,124,995.51 Acceptance bond
Notes receivable 901,019,620.00 Pledge for issuing bills payable
Mortgage loans and obtain the amount of commercial
Fixed assets 33,339,896.69
acceptance
Mortgage loans and obtain the amount of commercial
Intangible assets 27,990,153.62
acceptance
Total 2,035,474,665.82
V. Analysis of Investment
1、General information
√ Applicable □ Not applicable
External investment
Investment Amount in the report period
Investment Amount in 2016（RMB） Variance rate
（RMB）
- 274,595,895.00 -
2、Major equity investment in the reporting period
□Applicable √Not applicable
3、Major non-equity investment in the reporting period
Please refer to Notes VII to Financial Statement Item 12” Construction in progress”.
4、Investment of Financial Assets
(1)Equity-holdings in financial enterprises
√ Applicable □ Not applicable
12
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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 35,500,000 0.63% 35,500,000 0.63% 199,155,000 - financial
Securities Firm investment
assets
(2) Derivative Investments
□ Applicable √Not applicable
5、Use of raised funds
□ Applicable √Not applicable
VI. Selling of major assets and major equity
1、Selling of major assets
□Applicable √ Not applicable
There is no selling of major assets.
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
Name Main businesses Total assets operating Net profit
capital held
income
Hebei Changan Automobile Co., Ltd. 46,469 RMB 94.22% Produce and sell auto and parts 196,275 239,643 3,635
Nanjing Changan Automobile Co., Ltd. 60,181 RMB 84.73% Produce and sell auto and parts 237,293 255,906 47,659
Hefei Changan Automobile Co., Ltd. 77,500 RMB 100% Produce and sell auto and parts 273,820 319,238 32,641
Baoding Changan Bus Manufacture 3,000 RMB 100% Produce and sell auto and parts 351,803 146,348 296
13
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Co., Ltd.
Changan Ford Automobile Co., Ltd 24,100 USD 50% Produce and sell auto and parts 4,374,324 4,942,320 623,916
Changan Mazda Automobile Co., Ltd 11,097 USD 50% Produce and sell auto and parts 1,373,627 1,085,584 120,056
Subsidiaries acquired and sold in the reporting period
√ Applicable □ Not applicable
Acquisition and disposal of subsidiaries On the overall production and operation
Name
during the reporting period and performance impact
Shanghai Changan Automobile Engineering
Liquidation None
Technology Co., Ltd.
VIII. Structural main business under the company control
□Applicable √Not applicable
IX、Forecast for the operating performance of Jan.-Sep. 2017
The accumulated net profit forecast for the beginning of the year to the end of the next reporting period may be a loss or a warning
and explanation of a significant change compared with the same period of the previous year
□Applicable √Not applicable
X、Possible risks and coresponding measures
In 2017, the company will be faced with five risks such as market, policy, regulation, Chinese brand development and etc.:
（1）Market risk: future development is compressed by frequent launch of new cars, price war and unceasing battles.
Counter measures: seize the key period of the next three years, rapidly improve the scale of independent brands, actively expand
overseas markets, and enhance the competitiveness in the international market.
（2）Policy and regulation risks: technology and cost are challenged by more strict policies and regulations.
Counter measures: keep up with policy trends, strengthen policy research, and pre-arrange response plan.
（3）Chinese brand development risk: Chinese brand price and upward development are challenged by JV product price dropping,
besides, lack of investment makes upward development more difficult.
Counter measures: innovate modes, accelerate strategic transformation, integrate advantageous resources and achieve the fast
development.
（4）Business mode risk: rapid development of intelligent internet and big data technologies attracts internet companies' attention
on the automobile industry, and the traditional business model is changing.
Counter measures: customer-orientation, study new business mode under "internet +", promote the transformation to modern
manufacturing service enterprises and build automotive ecosystem.
14
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Chapter 5 Important Matters
I、Annual shareholders meeting and interim shareholders meeting during the reporting
period
1、Shareholders meeting during the reporting period
Investors'
Meeting
Type participatio Opening Time Disclosure Time Disclosure Index
Session
n ratio
http//www.cninfo.com.cn 2016 Annual
2016 Annual
Shareholders Meeting Resolution
Shareholders Annual 54.93% May, 25th, 2017 May, 26th, 2017
Announcement(Announcement Number:
Meeting
2017-33)
2、Preferred shareholders’ request to hold the interim shareholders meeting with restoration of voting
rights
□Applicable √ Non-applicable
II、Preplan for Company common stock profit distribution and capital reserves converting
into share capital in the reporting period
□Applicable √ Non-applicable
III、 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
Commitment Commitment for
commitments Commitment content Performance
entity time commitm
ent
When the company
non-publicly subscribes for
new shares of listed
Share limited 36 China Changan did not sell company shares
China Changan companies in 2016, the Oct., 2016
commitment months during the reporting period
newly acquired shares of
listed company can not be
transferred within 36 months
15
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
since the listing, but can be
transferred after 36 months
according to relevant
provisions of China
Securities Regulatory
Commission and Shenzhen
Stock Exchange.
In order to avoid and
eventually solve the possible
competition or potential
competitors, better maintain
the interests of investors, the
company controlling
shareholder China Changan
made the commitment: In The Harbin Hefei Automobile Industry
Other small
two consecutive years profit September, Group Co at present is still running at a
shareholders China Changan
of Harbin Hf Automobile 2010 loss, The conditions have not yet reached
commitment
Industry Group Co, With the the profitable for two consecutive years.
continuous development
ability and management
level is improved
significantly. Under such
condition, the enterprise will
be affiliated into the
company.
IV、The appointment and dismissal of accounting firms
Is the semi-annual financial report audited?
□ Yes √ No
V、 The board of directors, and supervisors explaining the "non standard audit report" from
the accounting firm during the reporting period
□Applicable √Not-applicable
VI、The board of directors explaining the "non standard audit report" of last year
□Applicable √Not-applicable
VII、Bankruptcy restructuring related matters
□Applicable √Not-applicable
During the report period no bankruptcy restructuring related matters occur.
16
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
VIII、Crucial litigation events
Crucial litigation and arbitration events
□Applicable √Not-applicable
Other litigation events
□Applicable √Not-applicable
IX、Punishment and rectification
□Applicable √Not-applicable
During the reporting period there’s no punishment and rectification.
X、The integrity of company and its controlling shareholder, actual controller
□Applicable √Not-applicable
XI、Company equity incentive plan, the implementation of the employee stock ownership plan
or other staff incentives.
√Applicable □Not-applicable
The company has disclosed in June 1, 2017 "The 2016 annual notice of the implementation of equity distribution", with the
company's existing total share capital of 4,802,648,511 shares as the base, to all shareholders 6.42 yuan cash dividends (including tax)
per 10 shares. According to the company's stock option incentive plan (Revised Draft), the relevant provisions on the stock option
price adjustment, if dividends and capital reserve capitalization, stock dividends, stock split delivery, allotment, issuance or reduced
matters occur before the stock exercise,the stock option price should be adjusted. The exercise price of the adjusted stock option is
13.478 yuan.
XII、Significant related party transactions
1、Related transactions related to day-to-day operation
For details, please refer to Note 12 "Related Party Relationships and Transactions" in the Financial Statements.
2、Assets or equity acquisition, sales related transactions
□Applicable √Not-applicable
No related transaction of the acquisition or sale of assets or shares occurred during the reporting period.
3、Related transactions of common investment
□ Applicable √ Not-applicable
During the reporting period, the company has no related transactions of common investment
17
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
4、Related rights and debt relations
√ Applicable □Not-applicable
For details, please refer to Note 12 "Related Party Relationships and Transactions" in the Financial Statements.
Whether there is any non-business related credits and debts
□Applicable √ Not-applicable
There is no non-operating associated credits and debts during the reporting period.
5、Other significant related transactions
√applicable □ not applicable
Related queries in disclosure website of interim report of related transactions
Temporary
Name of temporary announcement Temporary announcement site name
announcement date
Related Transactions Announcement that China South Industry
Group Finance Co.,Ltd provides financial service for the company March 25th, 2017 http://www.cninfo.com.cn
（Note 1）
Related Transactions Announcement about approving of United
March 25th, 2017 http://www.cninfo.com.cn
Prosperity (Hong Kong)Investment Co., Ltd trade financing
Related transaction announcement that Chongqing Automobile
March 25th, 2017 http://www.cninfo.com.cn
Finance Co.,Ltd provides financial service（Note 2）
Announcement about increasing estimated amount of 2017 daily
April 18th, 2017 http://www.cninfo.com.cn
related transaction
Note 1：Changan Automobile has signed a Financial Service Agreement with China South Industry Group Finance Co.,Ltd and
strictly implemented the approval procedures from BOD meeting and Shareholders' meeting. In accordance with " Administrative
Measures for Financial Companies of Enterprise Groups" issued by CBRC, Changan Automobile reviewed China South Industry
Group Finance Co.,Ltd and issued a risk assessment report.(For details, please refer to " A report on risk assessment of China South
Industry Group Finance Co.,Ltd " disclosed on http://www.cninfo.com.cn on August, 31th 2017)
In 2017, China South Industry Group Finance Co.,Ltd will provide the following services for the company:
①Provide the maximum deposit balance of not more than 4.5 billion, and the deposit interest rates should not be lower than that of
other domestic financial institutions over the same period;
②Provide the maximum credit total of 7 billion yuan and related credit services, the credit rate provided by the finance Company for
Changan Automobile should not be higher than that of other domestic financial institutions over the same period;
③Provide the maximum credit total of 10 billion auto financial services and other financial services, and set the prices for financial
services in accordance with the standards not higher than market fair prices or national standards.
Note 2：Changan Automobile has signed a Financial Service Agreement with Changan Automobile Fiannce Co.,Ltd and strictly
implemented the approval procedures from BOD meeting and Shareholders' meeting. In accordance with "Administrative Measures
for Motor Financing Companies" issued by CBRC, Changan Automobile reviewed Changan auto finance and issued a risk
assessment report.(For details, please refer to " A report on risk assessment of Changan Automobile Finance" disclosed on
http://www.cninfo.com.cn on August, 31th 2017)
18
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
In 2017, Changan auto Finance will provide the following services for the company:
①Provide the maximum deposit balance of not more than 1.5 billion, and the deposit interest rates should not be lower than that of
other domestic financial institutions over the same period;
②Provide the maximum credit total of 3 billion auto financial services and other financial services, and set the prices for financial
services in accordance with the standards not higher than market fair prices or national standards.
XIII、The non-operating occupation for the capital by the controlling shareholder of the
listed company and its related parties
□Applicable √ Not-applicable
XIV、Major contract and its performance
1、Trusteeship, contracting, leasing matters
（1）Trusteeship
□Applicable √ Not-applicable
Information about Trusteeship
There is no Trusteeship during the reporting period.
（2）Contracting
□Applicable √ Not-applicable
Information about contracting
There is no contracting during the reporting period.
（3）Leasing
√Applicable □Not-applicable
Information about leasing
Related party rental situation can be found in the note 12 of financial statements 4 (3) 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 √ Not-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 √ Not-applicable
There’s no major guarantee during the report period.
19
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
3、Other major contract
□Applicable √ Not-applicable
There’s no other major contract during the reporting period.
XV、Social responsibility
1.Fulfill social responsibility of targeted poverty alleviation
√applicable □ not applicable
In the first half of 2017, the Company did not carry out precise poverty alleviation yet. In the second half of 2017, Changan
automobile will actively implement the poverty alleviation work, continue to promote the poverty alleviation in Luxi County,
Yanshan County, Pengshui County, and facilitate the social welfare relief and public welfare donation work.
2. Significant environmental protection
Whether the listed companies and their subsidiaries belong to the key pollutant discharge units announced by the environmental
protection department
√Yes □No
Changan Automobile mainly produces engines and automobiles. The main pollutants are chemical oxygen demand, ammonia
nitrogen, total nickel, toluene, xylene and non-methane hydrocarbon,etc. All departments put pollution control facilities as well as
production equipment into preventive maintenance management of equipment with normal operation, pollutant discharge up to
normal standard, the total amount of discharged key pollutant within the total amount of indicators. Solid wastes are separately
collected and stored. Main dangerous wastes are wastewater and sludge treatment, paint slag, phosphated residue and waste solvent,
etc. Hazardous wastes are entrusted to be disposed by the units with hazardous waste business qualification. The general industrial
solid wastes and household garbage are disposed by the units with qualification according to the requirement of the local government.
The waste electrical and electronic products are disassembled by the units with qualification and are safely disposed by the units with
hazardous waste business qualification. According to the Chongqing Municipal Environmental Protection Bureau, Changan
Automobile smoothly shut down Chayuan Base of Commercial Vehicle Division and Dashiba Base of Jiangbei Engine Factory.
Strictly implement Disclosure System of Information
In the first half of 2017, State Key Monitoring Units of Changan Automobile: Chayuan Base of Commercial Vehicle Division,
Dashiba Base of Jiangbei Engine Factory, Yubei Factory; Provincial and municipal key monitoring units: Mold Division, Beijing
Changan, Hefei Changan. The national control units strictly carry out self-monitoring in accordance with the "National Key
Monitoring Enterprise Self-monitoring and Information Disclosure Approach (Trial)". Self-monitoring program, monitoring results,
pollution monitoring annual report are disclosed on the "National Key Monitoring Enterprise Self-monitoring and Information
Disclosure Platform". Provincial and municipal monitoring units are disclosed according to requirement of environmental protection
departments of local government.
Strictly implement "EIA system" and environmental protection "three simultaneous" systems of the construction project
Carry out the company's environmental impact assessment of “newly established, rectified, expanded projects” and implement
"EIA system" of the construction project according to the regulations. Strengthen the review on pollutant factors, the total amount of
emission and pollution control facilities during the environmental impact assessment. Strictly supervise the implementation of
“simultaneous design, simultaneous construction, and simultaneous acceptance” of project environmental protection facilities to
ensure full compliance between project construction and environmental impact assessment approval. In the first half of 2017, the
Company obtained the EIA approval for the following projects: VDC vehicle distribution center project, H series (phase five),the
20
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
construction project of NE1 engine production capacity, new energy battery system construction project (phase one), the construction
project phase two (Class C customer service spare parts warehouse) on the No. 6 block of Changan (Yuzui) Motor City; the Company
obtained temporary discharge permit for H series engine parts casting production the construction project and the production
structure adjustment project.
Carry out environmental protection risk management, and enhance emergency response capacity
Continue to carry out environmental protection emergency drills to enhance the response capacity to environmental emergencies.
The Company carried out 1 company-level environmental emergency drills, oil leakage emergency drills in engine factories. The
scene settings, emergency handling, impact range, exercise script, evaluation and other aspects have been greatly improved.
Strengthen control of company's environmental risk units to prevent sudden environmental incidents.
Detailed pollutant discharge of the company:
During the reporting period, the Company had 162 air pollutant discharge ports and 16 water pollutant discharge ports. The
implementation of the emission standards include the national "Integrated Wastewater Discharge Standard", Beijing "Water
Pollutant Discharge Standard", the national "Air Pollutant Integrated Emission Standard", Chongqing "automobile vehicle
manufacturing surface coating air pollutant discharge standards" "Air Pollutant Integrated Emission Standard", Beijing
"automobile vehicle manufacturing industry (coating process) air pollutant discharge standards", the national "industrial
enterprises boundary environmental noise emission standards" and so on. The total amount of pollutants approved: COD758 tons,
44 tons of ammonia, the company's pollutants can meet the corresponding emission standards, no super-standard super-total
emissions. No major environmental problems, no rectification.
In 2017, the Company intended to implement the emission reduction measures with the investment of 101.45 million yuan.
The main projects include: Beijing Changan VOC Project, Boiler low NO reconstruction project and Hefei Changan VOC project.
XVI、Other important matters
√applicable □ not applicable
During the reporting period, according to the relevant provisions of "Enterprise Accounting Standards No. sixteenth -
government subsidies" (Finance [2017]15), since January 1, 2017, the government grants related to daily activities of enterprises
should be included in "other income" or offset related costs, and be listed singly on the profit table above the "operating profit"; as
for the government subsidies nothing to do with the daily operations of enterprises, it should be included in non-operating income.
The company should make the adjustments to the government subsidies between January 1, 2017 and the effective date of the above
guidelines, and the amount of 1,153,834,905.86 yuan government subsidies should be included in other income in the first half of
2017.
The change of the accounting policy related to "Enterprise Accounting Standards No. sixteenth: government subsidies" has no
effect on the net profit attributable to shareholders of listed companies, and has no material impact on the semi-annual financial status,
the operating results and cash flow.
XVII、Important matters of company subsidiaries
□Applicable √ Not-applicable
21
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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 Balance after current
Addition and deduction（+，-） during change
change change
Provident
Ratio Additional Stock Ratio
Quantity fund other Quantity Quantity
(%) issued dividend (%)
transfer
Non-circulated shares 139,781,303 2.91% 139,781,303 2.91%
1、State-owned legal
139,762,403 2.91% 139,762,403 2.91%
person shares
2、Senior management
18,900 0.00% 18,900 0.00%
personnel shares
Circulated shares 4,662,867,208 97.09% 4,662,867,208 97.09%
1、Domestic listed
3,760,881,066 78.31% 3,760,881,066 78.31%
RMB shares
2、Domestic listed
901,986,142 18.78% 901,986,142 18.78%
foreign shares
Total shares 4,802,648,511 100.00% 4,802,648,511 100.00%
Reason of stock changes
□Applicable √ Not-applicable
Approval of stock changes
□Applicable √ Not-applicable
Ownership transfer of stock change
□Applicable √ Not-applicable
The influence of share changes on financial indicators, such as the latest year and the latest basic earnings per share and
diluted earnings per share, the net assets per share belonging to the common shareholder of the company
□Applicable √ Not-applicable
Other contents which the company regards necessary and securities supervising institution requires the Company to disclose
22
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
□Applicable √ Not-applicable
2. Change in Non-circulated shares
√ Available □Not-available
Unit：one share
Non-circulated Non-circulated
Name of Decrease during the Increase during the Reason for non-circulated Date for the
shares held at the shares held at the
shareholders reporting period reporting period shares circulated shares
year-beginning year-end
China Changan Non - public offering
Automobile Co., 139,762,403 - - 139,762,403 shares of 139,762,403 2019-10-14
Ltd. in 2016
6 months after
Zhu Huarong 18,900 - - 18,900 Executive lock stocks
the retirement
Total 139,781,303 - - 139,781,303 -- --
II、Issuing and listing of securities
□Applicable √ Not-applicable
III. Shareholding and shareholders of the company
Unit：one share
At the end of the report period, the total number of
183,066 .A shareholders: 153,799. B shareholders: 29,267.
shareholders
Holding more than 5% of the shareholders, or top 10 shareholders situation
Percentage increases and Pledged/ Frozen
Non-circulated Circulated
Nature of of total Shares held at decreases cases
Name of shareholders shares held at shares held at
Shareholders shares the year-end during the Share
the year-end the year-end amount
（%） report period status
China Changan State-owned legal No pledge
40.88% 1,963,357,619 - 139,762,403 1,823,595,216
Automobile Co., Ltd. person shares or freeze
domestic general
China securities No pledge
legal person 2.97% 142,671,560 3,248,633
finance Co, Ltd or freeze
shares
GIC PRIVATE foreign legal No pledge
2.04% 98,158,475 17,277,400
LIMITED person shares or freeze
United Prosperity foreign legal No pledge
1.27% 61,070,286 15,875,186
(Hongkong) person shares or freeze
23
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Investment Co.,
Limited
domestic general
Central Huijin No pledge
legal person 1.15% 55,393,100 -
Investment Ltd. or freeze
shares
National Social
fund, finance No pledge
Security Fund- 0.89% 42,607,294 -
products, etc. or freeze
Portfolio 102
VALUE PARTNERS
foreign legal No pledge
HIGH-DIVIDEND 0.81% 38,911,038 -
person shares or freeze
STOCKS FUNDS
MONETARY
foreign legal No pledge
AUTHORITY OF 0.70% 33,425,219 5,226,239
person shares or freeze
SINGAPORE
Anbang Asset
Mgmt-China fund, finance No pledge
0.67% 32,070,942 -
Merchants Bank- products, etc. or freeze
Anbang Asset-China
Anbang Asset Mgmt－
fund, finance No pledge
China Minsheng Bank 0.65% 31,082,094 31,082,094
products, etc. or freeze
－Anbang Asset-China
Among the top 10 shareholders, China Changan Automobile Group Co., Ltd., the controlling shareholder, and
Explanation on the relationship and the
its wholly owned subsidiary United Prosperity (Hong Kong) Investment Co., Limited. belong to the concerted
action alike of above shareholders
actor regulated by “Disclosure Administration of Shares Change Information of The Listed Company”.
The ten largest circulated shareholders
Shares type
Name of shareholders Shares at the year end
Type Amount
China Changan Automobile Co., Ltd. 1,823,595,216 RMB ordinary shares 1,823,595,216
China securities finance Co, Ltd 142,671,560 RMB ordinary shares 142,671,560
Domestic listed foreign
GIC PRIVATE LIMITED 98,158,475 98,158,475
shares
Domestic listed foreign
United Prosperity (Hongkong) Investment Co., Limited 61,070,286 61,070,286
shares
Central Huijin Investment Ltd. 55,393,100 RMB ordinary shares 55,393,100
National Social Security Fund- Portfolio 102 42,607,294 RMB ordinary shares 42,607,294
VALUE PARTNERS HIGH-DIVIDEND STOCKS Domestic listed foreign
38,911,038 38,911,038
FUNDS shares
MONETARY AUTHORITY OF SINGAPORE 33,425,219 Domestic listed foreign 33,425,219
24
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
shares
Anbang Asset Mgmt-China Merchants Bank- Anbang
32,070,942 RMB ordinary shares 32,070,942
Asset-China
Anbang Asset Mgmt－China Minsheng Bank－Anbang
31,082,094 RMB ordinary shares 31,082,094
Asset-China
Among the top 10 shareholders, China Changan Automobile Group Co., Ltd., the
The top 10 shareholders to sell circulated shares, and the
controlling shareholder, and its wholly owned subsidiary United Prosperity (Hong Kong)
infinite tradable relationship between shareholders and
Investment Co., Limited belong to the concerted actor regulated by “Disclosure
top 10 shareholders 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 √Not- available
The company top 10 shareholders of ordinary shares, and the top 10 circulated shareholders did not agree on the repurchase
transactions during the reporting period
IV、The change of the controlling shareholders and the actual controllers
During the reporting period the change of controlling shareholders
□Available √ Not- available
No changes in controlling shareholders during the reporting period.
The change of the actual controllers during the reporting period
□Available √ Not- available
No changes in the actual controllers during the reporting period.
25
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Chapter7 Information about Directors, Supervisors, Senior
Management
I、Share ownership of directors, supervisors and senior managers
□ applicable √not applicable
The share ownership of the directors, supervisors and senior managers has no change during the reporting period. For details, plaese
refer to 2016 annual report.
II、Departure and Hiring information of the directors, supervisors and senior manager
Name Duties Type Date Reason
Hu Yu Independent director Outgoing Feburary 11th,2017 Personal reasons
Du Yi Vice President Outgoing May 6th, 2017 Job arrangement
Chapter 8 Corporate Bonds
Is there a corporate bond that is publicly issued and listed on the stock exchange and fails to
be fully paid up or not due on maturity until the approval of the semi-annual report ?
□ Yes √ NO
The company repaid the 2012 Changan debt expired on April 23th, 2017.
26
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Chapter 9 The Financial Statements
I Auditing Report
Semi-annual report is audited
□Yes √ No
No audit on the semi-annual financial report.
II Financial statement
Financial in notes to the statements of the unit is: RMB yuan
1、Consolidated Balance Sheet
Account Ending Balance Opening Balance
Current assets:
Cash 27,882,391,375.71 24,782,504,552.44
Notes receivable 21,735,324,803.90 29,002,539,261.26
Accounts receivable 1,900,029,553.88 1,498,837,041.54
Prepayments 1,274,476,034.39 1,060,809,892.75
Interest receivable 66,274,965.27 19,318,138.89
Dividends receivable
Other receivables 1,109,963,744.88 1,403,399,178.49
The purchase of resold financial
assets
Inventories 10,765,993,986.86 7,304,106,822.61
Divided into holding assets on sale
Non-current assets due within one year
Other current assets 1,841,193,403.90 926,060,330.87
Total current assets 66,575,647,868.79 65,997,575,218.85
Non-current assets:
Available-for-sale financial assets 568,606,274.00 432,476,274.00
Held-to-maturity assets
Long-term receivables
Long-term equity investments 14,116,985,988.70 14,743,367,010.03
27
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Investment properties 7,669,628.62 7,782,984.40
Fixed assets 15,652,944,713.96 15,480,484,513.99
Construction in progress 4,054,053,618.83 3,821,703,830.78
Construction materials - 96,690.75
Liquidation of fixed assets 198,093.87 -
Intangible assets 3,829,601,693.56 3,444,950,675.03
Devlopment expenditure 936,361,344.31 1,111,176,453.49
Goodwill 9,804,394.00 9,804,394.00
Long-term deferred expenses 13,670,319.53 13,448,409.63
Deferred tax assets 1,517,172,072.20 1,447,607,278.98
Other non-current assets 3,077.01 -
Total non-current assets 40,707,071,218.59 40,512,898,515.08
Total assets 107,282,719,087.38 106,510,473,733.93
Current liabilities:
Short-term loans 188,810,327.67 175,000,000.00
Notes payable 22,691,578,208.46 20,952,104,805.58
Accounts payable 17,078,288,462.79 19,880,580,102.39
Advances from customers 9,231,546,726.81 6,854,337,365.01
Payroll payable 912,441,265.11 1,839,947,475.23
Taxes payable 359,705,070.19 555,681,489.16
Interest payables - 73,458,000.00
Dividend payables 79,742.80 79,742.80
Other payables 1,719,084,934.81 1,449,028,595.97
Non-current liabilities due within
6,461,808.00 1,992,341,127.81
one year
other current liabilities 3,925,529,392.83 4,211,570,198.88
Total current liabilities 56,113,525,939.47 57,984,128,902.83
Non-current liabilities:
Long-term loans 19,980,912.00 19,980,912.00
Bonds payable - -
Long-term payable 1,727,820.80 -
Long term payroll payable 98,649,939.09 105,132,000.00
Special payable 242,736,639.68 217,497,540.80
Contingent liabilities 2,338,662,444.99 2,010,153,951.87
28
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Deferred earnings 3,512,718,437.35 2,785,885,626.37
Deferred tax liabilities 28,451,238.29 34,535,250.00
Other current liabilities
Total other current liabilities 6,242,927,432.20 5,173,185,281.04
Total liabilities 62,356,453,371.67 63,157,314,183.87
Owners’ equity:
Share capital 4,802,648,511.00 4,802,648,511.00
Capital reserves 5,110,494,032.55 5,085,301,532.55
reduce: inventory shares - -
Other Comprehensive Income 92,209,378.37 141,480,908.23
Special reserves 25,941,452.08 16,349,485.65
Preparation for general risk - -
Retained earnings 32,667,384,077.99 31,126,707,710.94
Equity attributable to owners 45,100,001,707.49 43,573,812,403.87
Minority interests -173,735,991.78 -220,652,853.81
Total equity 44,926,265,715.71 43,353,159,550.06
Total liabilities and owener’s equity 107,282,719,087.38 106,510,473,733.93
2、Balance sheet
Account Ending Balance Opening Balance
Current assets:
Cash 26,141,637,145.35 23,767,111,763.75
Financial assets at fair value
- -
through profit or loss
Derived financial assets - -
Notes receivable 21,421,849,889.00 28,699,756,422.50
Accounts receivable 5,282,020,339.12 4,328,886,769.78
Prepayments 1,094,376,320.11 905,659,820.16
Interest receivable 66,274,965.27 19,318,138.89
Dividend receivable - 5,900,371.55
Other receivables 1,078,712,685.98 1,456,016,984.91
Inventories 9,953,767,329.23 6,292,770,310.90
Assets classified as available for sale - -
Non-current assets within one year - -
29
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Other current assets 1,412,838,055.54 592,803,108.38
Total current assets 66,451,476,729.60 66,068,223,690.82
Non-current assets
Available-for-sale financial assets 568,606,274.00 432,476,274.00
Held-to-maturity investments - -
Long-term receivables - -
Long-term equity investments 15,806,058,338.78 16,425,513,619.11
Investment properties - -
Fixed assets 12,395,759,602.35 12,142,942,955.13
Construction in progress 3,828,091,567.26 3,613,887,112.73
Construction materials - 96,690.75
Intangible assets 3,144,325,873.03 2,799,021,341.24
Development expenditure 797,965,441.96 986,790,085.03
Goodwill - -
Long-term deferred expenses 12,738,686.37 12,729,576.00
Deferred tax assets 1,445,784,538.89 1,331,906,388.11
Other non-current assets - -
Total non-current assets 37,999,330,322.64 37,745,364,042.10
Total assets 104,450,807,052.24 103,813,587,732.92
Current liabilities：
Short-term loans - -
Notes payable 21,718,463,300.16 20,344,635,258.93
Accounts payable 15,259,019,205.90 16,912,556,809.95
Advances from customers 9,060,345,790.55 6,563,904,714.60
Payroll payable 787,587,805.58 1,567,187,782.78
Taxes payable 331,599,042.52 470,185,940.53
Interest payables - 73,458,000.00
Dividend payables - -
Other payables 2,216,403,447.76 1,922,286,938.56
Liabilities classified as available
- -
for sale
Non-current liabilities within one
- 1,979,020,519.81
year
Other current liabilities 3,534,513,117.87 3,992,241,040.51
30
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Total current liabilities 52,907,931,710.34 53,825,477,005.67
Non-current liabilities：
Long-term payroll payables 81,542,002.12 87,480,000.00
Special payables 187,385,930.28 162,146,831.40
Provisions 2,157,789,649.33 1,947,415,048.79
Deferred income 2,760,946,857.54 2,164,751,690.28
Deferred tax liabilities 26,441,250.00 34,535,250.00
Other non-current liabilities - -
Total non-current liabilities 5,214,105,689.27 4,396,328,820.47
Total liabilities 58,122,037,399.61 58,221,805,826.14
Owners' equity：
Share capital 4,802,648,511.00 4,802,648,511.00
Capital reserves 4,714,667,546.88 4,689,475,046.88
Less: Treasury shares - -
Other comprehensive income 156,428,552.68 202,294,552.68
Special reserves 13,613,699.99 7,555,003.10
Surplus reserves 2,401,324,255.50 2,401,324,255.50
Retained earnings 34,240,087,086.58 33,488,484,537.62
Total Owners' equity 46,328,769,652.63 45,591,781,906.78
Total liabilities and owners’ equity 104,450,807,052.24 103,813,587,732.92
3、Consolidated Income Statement
Account Current Period Prior Period
I、Total operating revenue 33,555,213,109.46 35,801,762,921.25
Including: operating revenue 33,555,213,109.46 35,801,762,921.25
II、Total operating cost 33,871,753,401.89 35,809,126,682.61
Including: Operating cost 28,792,755,690.32 29,867,338,185.68
Business tax and surcharges 1,443,786,480.14 1,574,338,990.15
Operating expenses 2,004,176,042.01 2,120,708,553.33
General and administrative expenses 1,785,734,071.11 2,212,296,933.23
Financial expenses -246,821,602.15 -107,788,565.12
Impairment loss on assets 92,122,720.46 142,232,585.34
Add: Profit and loss from fair
- -
value changes (“－”represent loss)
31
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Investment income (“－”represent
3,831,618,978.64 5,208,991,269.98
loss)
Including: Investment income from
3,831,618,978.67 5,204,376,269.98
associates and from joint venture
Other income 1,153,834,905.86 -
III、Net foreign exchange
4,668,913,592.07 5,201,627,508.62
differences(“－”means loss)
Add: Non-operating income 53,945,162.12 538,423,261.88
Including: gain on disposal of
- -
non-current assets
Less: Non-operating expenses 14,400,047.98 33,752,670.96
Including: loss on disposal of
1,534,901.96 6,056,945.55
non-current assets
IV、Total profit(“－”represent loss) 4,708,458,706.21 5,706,298,099.54
Less: Income tax expense 40,996,104.66 229,546,499.16
V、Net profit (“－” represent net loss) 4,667,462,601.55 5,476,751,600.38
Net profit attributable to owners 4,620,545,739.52 5,490,988,582.32
Minority interests 46,916,862.03 -14,236,981.94
VI、Other comprehensive income after
-49,271,529.86 -94,240,769.25
tax
VII、Total comprehensive income 4,618,191,071.69 5,382,510,831.13
Total comprehensive income
4,571,274,209.66 5,396,747,813.07
attributable to owners
Total comprehensive income attributable
46,916,862.03 -14,236,981.94
to minority interest
VIII、Earnings per share：
Basic earnings per share 0.96 1.18
Diluted earnings per share 0.96 1.18
4、Income Statement
Account Current Period Prior Perid
I、Operating revenue 32,839,522,229.70 35,293,163,947.87
Less: Operating cost 28,904,081,124.37 30,058,276,365.82
Business tax and surcharges 1,135,041,753.22 1,316,112,619.40
Operating expenses 1,803,479,171.45 1,915,038,483.20
32
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
General and administrative
1,436,070,738.53 1,850,922,327.11
expenses
Financial expenses -256,888,513.32 -98,286,753.07
Impairment loss on assets 133,639,836.86 134,683,832.36
Add: Profit and loss from fair
- -
value Changes (“－” represent loss)
Investment income (“－” represent
3,830,647,885.91 5,212,572,956.94
loss)
Including: Investment income
3,831,618,978.67 5,204,376,269.98
from associates and from joint venture
Other income 289,212,455.26 -
II、Operating profit (“－” represent loss) 3,803,958,459.76 5,328,990,029.99
Add: Non-operating income 33,646,834.57 298,801,754.71
Including: gain on disposal of
- -
non-current assets
Less: Non-operating expenses 14,166,234.62 29,823,354.91
Including: loss on disposal of
1,140,434.27 2,925,675.81
non-current assets
III、Total profit(“－” represent loss) 3,823,439,059.71 5,597,968,429.79
Less: Non-operating expenses -8,032,861.72 155,290,176.19
IV、Net profit (“－” represent net loss) 3,831,471,921.43 5,442,678,253.60
V、Other comprehensive income after
-45,866,000.00 -79,662,000.00
tax
VI、Total comprehensive income 3,785,605,921.43 5,363,016,253.60
5、Consolidated cash flow statement
Account Current Period Prior Perid
I.Cash flows from operating activities:
Cash received from sale of goods or
46,780,300,361.41 40,845,649,735.99
rendering of services
Refunds of taxes 140,895,941.36 166,138,691.28
Cash received relating to other
2,518,058,023.51 694,946,535.96
operating activities
Sub-total of cash inflows 49,439,254,326.28 41,706,734,963.23
Cash paid for goods and services 34,870,252,065.09 27,752,516,799.98
Cash paid to and on behalf of 3,158,460,344.22 3,209,319,877.09
33
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
employees
Cash paid for all types of taxes 3,357,708,868.23 3,037,630,435.22
Cash paid relating to other
3,093,128,324.63 3,086,480,622.87
operating activities
Sub-total of cash outflows 44,479,549,602.17 37,085,947,735.16
Net cash flows from operating activities 4,959,704,724.11 4,620,787,228.07
II、Cash flows from investing activities：
Cash received from disposal of
- -
investments
Cash received from return on
4,458,000,000.00 4,334,615,000.00
investments
Net cash received from disposal of
fixed assets, intangible assets and other 12,051,601.04 1,307,153.36
long-term assets
Cash and cash equivalents of
- -
subsidiary receipts upon the acquisition
Cash received relating to other
629,600,000.00 500,000.00
investing activities
Sub-total of cash inflows 5,099,651,601.04 4,336,422,153.36
Cash paid for acquisition of fixed
assets, intangible assets and other 1,761,384,957.20 2,655,001,579.93
long-term assets
Cash paid for acquisition of
100,840,001.00 -
investments
Cash paid relating to other
- 7,400.00
investing activities
Sub-total of cash outflows 1,862,224,958.20 2,655,008,979.93
Net cash flows from investing activities 3,237,426,642.84 1,681,413,173.43
III、Cash flows from financing
activities：
Cash received from borrowings 185,569,008.83 115,000,000.00
Cash received from issuing bond - -
Cash received relating to other
749,802,481.32 61,286,090.42
financing activities
Sub-total of cash inflows 935,371,490.15 176,286,090.42
Cash repayments of borrowings 2,140,000,000.00 -
Cash paid for distribution of 3,168,151,086.02 3,091,127,085.12
34
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
dividends or profits and interest
expenses
Cash paid relating to other
33,855,585.56 20,368,608.43
financing activities
Sub-total of cash outflows 5,342,006,671.58 3,111,495,693.55
Net cash flows from financing activities -4,406,635,181.43 -2,935,209,603.13
IV、Effect of changes in exchange rate
25,338,127.63 -2,763,972.36
of cash
V、Net increase in cash and cash
3,815,834,313.15 3,364,226,826.01
equivalents
Add: Opening balance of cash and
22,993,432,067.05 17,725,921,341.22
cash equivalents
VI、Closing balance of cash and cash
26,809,266,380.20 21,090,148,167.23
equivalents
6、Cash flow statement
Account Current Period Prior Perid
I、Cash flows from operating activities:
Cash received from sale of goods
44,484,189,667.84 38,832,608,755.31
or rendering of services
Refunds of taxes - 50,000,000.00
Cash received relating to other
1,206,879,552.91 642,305,204.01
operating activities
Sub-total of cash inflows 45,691,069,220.75 39,524,913,959.32
Cash paid for goods and services 33,584,162,667.42 27,616,360,183.76
Cash paid to and on behalf of
2,480,880,221.05 2,535,375,211.21
employees
Cash paid for all types of taxes 2,696,116,766.30 2,578,042,491.59
Cash paid relating to other
2,881,114,513.51 2,881,752,596.62
operating activities
Sub-total of cash outflows 41,642,274,168.28 35,611,530,483.18
Net cash flows from operating activities 4,048,795,052.47 3,913,383,476.14
II、Cash flows from investing activities：
Cash received from disposal of
- -
investments
Cash received from return on 4,464,991,013.22 4,338,301,141.67
35
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
investments
Net cash received from disposal of
fixed assets, intangible assets and other 403,878.24 830,223.68
long-term assets
Cash received from disposal of
- -
subsidiary and other business units
Cash received relating to other
791,000,000.00 50,000,000.00
investing activities
Sub-total of cash inflows 5,256,394,891.46 4,389,131,365.35
Cash paid for acquisition of fixed
assets, intangible assets and other 1,602,304,152.01 1,861,257,635.92
long-term assets
Cash paid for acquisition of
100,437,390.50 90,000,000.00
investments
Cash paid for acquisition of
- -
subsidiary and other business units
Cash paid relating to other investing
100,000,000.00 50,000,000.00
activities
Sub-total of cash outflows 1,802,741,542.51 2,001,257,635.92
Net cash flows from investing activities 3,453,653,348.95 2,387,873,729.43
III、Cash flows from financing
activities：
Cash received relating to other
707,928,498.17 -
financing activities
Sub-total of cash inflows 707,928,498.17 -
Cash repayments of borrowings 1,980,000,000.00 -
Cash paid for distribution of
dividends or profits and interest 3,147,923,019.82 3,086,217,833.01
expenses
Cash paid relating to other
- 105,165.28
financing activities
Sub-total of cash outflows 5,127,923,019.82 3,086,322,998.29
Net cash flows from financing activities -4,419,994,521.65 -3,086,322,998.29
IV、Effect of changes in exchange rate
- -
of cash
V、Net increase in cash and cash
3,082,453,879.77 3,214,934,207.28
equivalents
Add: Opening balance of cash and 22,326,566,084.67 17,223,403,333.90
36
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
cash equivalents
VI、Closing balance of cash and cash
25,409,019,964.44 20,438,337,541.18
equivalents
37
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
7、Consolidated statement of changes in shareholders’ equity
Current period
Equity attributable to owners
Items Less:
Special Surplus General Minority interest Total equity
Share capital Capital reserves Treasury Retained earnings Others
reserves reserves reserves
shares
I. At end of last year 4,802,648,511.00 5,085,301,532.55 - 16,349,485.65 2,401,324,255.50 - 31,126,707,710.94 141,480,908.23 -220,652,853.81 43,353,159,550.06
II. At beginning of year 4,802,648,511.00 5,085,301,532.55 - 16,349,485.65 2,401,324,255.50 - 31,126,707,710.94 141,480,908.23 -220,652,853.81 43,353,159,550.06
III. Changes during the
- 25,192,500.00 - 9,591,966.43 - - 1,540,676,367.05 -49,271,529.86 46,916,862.03 1,573,106,165.65
year (‘－” means less)
1.Total comprehensive
- - - - - - 4,620,545,739.52 -49,271,529.86 46,916,862.03 4,618,191,071.69
income
2.Input by investors and
- 25,192,500.00 - - - - - - - 25,192,500.00
decrease in capital
3.Distribution of profits - - - - - - -3,079,869,372.47 - - -3,079,869,372.47
Distribution to owners - - - - - - -3,079,869,372.47 - - -3,079,869,372.47
4.Special reserve - - - 9,591,966.43 - - - - - 9,591,966.43
(1) Pick-up in current
- - - 34,781,156.92 - - - - - 34,781,156.92
period
(2) Used in current period - - - -25,189,190.49 - - - - - -25,189,190.49
IV. At end of year 4,802,648,511.00 5,110,494,032.55 - 25,941,452.08 2,401,324,255.50 - 32,667,384,077.99 92,209,378.37 -173,735,991.78 44,926,265,715.71
38
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Prior period
Prior period
Equity attributable to owners
Items
Less:
Special Surplus General Minority interest Total equity
Share capital Capital reserves Treasury Retained earnings Others
reserves reserves reserves
shares
I. At end of last year 4,662,886,108.00 3,227,489,320.83 - 22,036,479.54 2,331,443,054.00 - 23,899,223,263.45 242,110,844.54 -211,566,346.93 34,173,622,723.43
II. At beginning of year 4,662,886,108.00 3,227,489,320.83 - 22,036,479.54 2,331,443,054.00 - 23,899,223,263.45 242,110,844.54 -211,566,346.93 34,173,622,723.43
III. Changes during the - - - 3,425,190.71 - - 2,503,070,110.74 -94,240,769.25 -14,236,981.94 2,398,017,550.26
year (‘－” means less)
1.Total comprehensive
- - - - - - 5,490,988,582.32 -94,240,769.25 -14,236,981.94 5,382,510,831.13
income
2.Input by investors and
- - - - - - - - - -
decrease in capital
3.Distribution of profits - - - - - - -2,987,918,471.58 - - -2,987,918,471.58
Distribution to owners - - - - - - -2,987,918,471.58 - - -2,987,918,471.58
4.Special reserve - - - 3,425,190.71 - - - - - 3,425,190.71
(1) Pick-up in current
- - - 37,429,797.34 - - - - - 37,429,797.34
period
(2) Used in current period - - - -34,004,606.63 - - - - - -34,004,606.63
IV. At end of year 4,662,886,108.00 3,227,489,320.83 - 25,461,670.25 2,331,443,054.00 26,402,293,374.19 147,870,075.29 -225,803,328.87 36,571,640,273.69
39
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
8、Statement of changes in shareholders’ equity
Current period
Less:
Items Special
Share capital Capital reserves Treasury Surplus reserves Others Retained earnings Total equity
reserves
shares
I. At end of last year 4,802,648,511.00 4,689,475,046.88 - 7,555,003.10 2,401,324,255.50 202,294,552.68 33,488,484,537.62 45,591,781,906.78
II. At beginning of year 4,802,648,511.00 4,689,475,046.88 - 7,555,003.10 2,401,324,255.50 202,294,552.68 33,488,484,537.62 45,591,781,906.78
III. Changes during the year (‘－” means
- 25,192,500.00 - 6,058,696.89 - -45,866,000.00 751,602,548.96 736,987,745.85
less)
1.Total comprehensive income - - - - - -45,866,000.00 3,831,471,921.43 3,785,605,921.43
2. Owners investment and reduction of
- 25,192,500.00 - - - - - 25,192,500.00
capital
The amount of shares paid into the
- 25,192,500.00 - - - - - 25,192,500.00
owner's equity
3.Distribution of profits - - - - - - -3,079,869,372.47 -3,079,869,372.47
Distribution to owners - - - - - - -3,079,869,372.47 -3,079,869,372.47
4.Special reserve - - - 6,058,696.89 - - - 6,058,696.89
(1) Pick-up in current period - - - 21,295,002.00 - - - 21,295,002.00
(2) Used in current period - - - -15,236,305.11 - - - -15,236,305.11
IV. At end of year 4,802,648,511.00 4,714,667,546.88 - 13,613,699.99 2,401,324,255.50 156,428,552.68 34,240,087,086.58 46,328,769,652.63
40
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Prior period
Prior period
Less:
Items Special
Share capital Capital reserves Treasury Surplus reserves Others Retained earnings Total equity
reserves
shares
I. At end of last year 4,662,886,108.00 2,831,662,835.16 - 12,723,372.00 2,331,443,054.00 281,190,781.91 26,573,855,747.25 36,693,761,898.32
II. At beginning of year 4,662,886,108.00 2,831,662,835.16 - 12,723,372.00 2,331,443,054.00 281,190,781.91 26,573,855,747.25 36,693,761,898.32
III. Changes during the year (‘－” means
- - - 1,281,927.28 - -79,662,000.00 2,454,759,782.02 2,376,379,709.30
less)
1.Total comprehensive income - - - - - -79,662,000.00 5,442,678,253.60 5,363,016,253.60
2.Distribution of profits - - - - - - -2,987,918,471.58 -2,987,918,471.58
Distribution to owners - - - - - - -2,987,918,471.58 -2,987,918,471.58
3.Special reserve - - - 1,281,927.28 - - - 1,281,927.28
(1) Pick-up in current period - - - 31,272,748.32 - - - 31,272,748.32
(2) Used in current period - - - -29,990,821.04 - - - -29,990,821.04
IV. At end of year 4,662,886,108.00 2,831,662,835.16 - 14,005,299.28 2,331,443,054.00 201,528,781.91 29,028,615,529.27 39,070,141,607.62
41
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
III、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.
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.
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.
42
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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 sold 181,260,000 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%.
With the approval of China Securities Regulatory Commission on 14 September 2016, the Company issued
139,762,403 non-public common shares (A share) to China Changan Automobile Industry (Group) Co., Ltd.,
which caused the total share capital increased to RMB 4,802,648,511. After the completion of the issuance, China
Changan holds 1,963,357,619 shares of the Company's common stock, with shares proporation increasing to
40.88%.
As at 30 June 2017, 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.
The consolidated scope of the consolidated financial statements is based on the control. For details, please refer to
Note 8 for the changes in the scope of the consolidated financial statements for the current year.
IV BASIS OF PREPERATION
The financial statements have been prepared in accordance with Accounting Standards for Business
Enterprises-Basic Standard and the specific standards issued and modified subsequently, and the implementation
43
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
guidance, interpretations and other relevant provisions issued subsequently by the MOF (correctly referred to as
“Accounting Standards for Business Enterprises”).
The financial statements are listed 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.
V Significant accounting policies and accounting estimates
The group has formulated specific accounting policies and accounting estimates based on the characteristics of
actual daily operations, mainly reflected in the provision method for uncollectible accounts receivable [ Note 5
( 10 ) ], the valuation method of inventories [ Note 5 ( 11 ) ], depreciation of fixed assets and amortization of
intangible assets [ Note 5 ( 14 ) ( 17 ) ], the capitalization conditions for r & d expenses [ Note 5 ( 18 ) ], revenue
recognition and measurement [ Note 5 ( 22 ) ].
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 June 30, 2017 and the
financial results and the cash flows for 1-6 month 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
44
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
which, on the combination date, obtains control of another entity participating in the combination is the acquiring
party, while that other entity participating in the combination is a party being acquired. Combination date is the
date on which the acquiring party effectively obtains control of the party being acquired.
Assets and liabilities that are obtained by the acquiring party in a business combination involving entities under
common control shall be measured at their carrying amounts at the combination date as recorded by the party
being acquired. The difference between the carrying amount of the net assets obtained and the carrying amount of
the consideration paid for the combination (or the aggregate face value of shares issued as consideration) shall be
adjusted to capital reserve. If the capital reserve is not sufficient to absorb the difference, any excess shall be
adjusted against retained earnings.
Business combination involving entities not under common control
A business combination involving entities not under common control is a business combination in which all of the
combining entities are not ultimately controlled by the same party or parties both before and after the combination.
For a business combination involving entities not under common control, the party that, on the acquisition date,
obtains control of another entity participating in the combination is the acquirer, while that other entity
participating in the combination is the acquiree. Acquisition date is the date on which the acquirer effectively
obtains control of the acquiree.
The acquirer shall measure the acquiree’s identifiable assets, liabilities and contingent liabilities acquired in the
business combination at their fair values on the acquisition date.
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.
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 as at June 30, 2017. 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).
45
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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
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
46
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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.
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
47
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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.
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
48
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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.
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
49
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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.
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.
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
50
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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.
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.
10、Accounts receivable
(1) Accounts receivable which is individually significant and analyzed individually for provision：
51
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Criterion for individually significant items Accounts receivable balance greater than RMB15 million due from
non-related parties
Method for provision A provision of the difference between recoverable 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 for provision from non-related parties is impaired and the future recoverable
possibility is little.
A provision of the difference between recoverable amount and
Method for provision
book value is recognized individually.
11、Inventory
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
52
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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 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. 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
53
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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.
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.
13、Investment property
Investment property are properties held to earn rentals or for capital appreciation, or both, including rented land
54
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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 asset
(1) Recognition of 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.
(2) Depreciation method of fixed assets
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 rate
Category Deprecation period Residual 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.
(3) Others
The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method
applied at least at the end of each year and makes adjustments if necessary.
15、Construction in progress
The cost of construction in progress is determined according to the actual expenditure for the construction,
including all necessary construction expenditure incurred during the construction period, borrowing costs that
should be capitalized before the construction reaches the condition for intended use and other relevant expenses.
55
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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:
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.
56
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
17、Intangible asset
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
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
57
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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.
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.
21. Share-based payments
The share-based payments shall consist of equity-settled share-based payments and cash-settled share-based
payments. The term "equity-settled share-based payment" refers to a transaction in which an enterprise grants
shares or other equity instruments as a consideration in return for services.
The equity-settled share-based payment in return for employee services shall be measured at the fair value of the
equity instruments granted to the employees. As to an equity-settled share-based payment in return for services of
employees, if the right may be exercised immediately after the grant, the fair value of the equity instruments shall,
on the date of the grant, be included in the relevant cost or expense and the capital reserves shall be increased
accordingly. As to a equity-settled share-based payment in return for employee services, if the right cannot be
exercised until the vesting period comes to an end or until the prescribed performance conditions are met, then on
58
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
each balance sheet date within the vesting period, the services obtained in the current period shall, based on the
best estimate of the number of vested equity instruments, be included in the relevant costs or expenses and the
capital reserves at the fair value of the equities instruments on the date of the grant. The fair value is determined
using Black-Scholes model (Note 13).
Within the vesting period or before the prescribed performance conditons are met, the relevant costs or expenses
and capital reserves shall be determined and increased based on the best estimate of the number of vested equity
instruments on each balance sheet date.
For awards that do not ultimately vest because non-market performance and/or service conditions have not been
met, no expense is recognised. Where awards include a market or non-vesting condition, the transactions are
treated as vesting irrespective of whether the market or non-vesting condition is satisfied, provided that all other
performance and/or service conditions are satisfied.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms
had not been modified, if the original terms of the award are met. In addition, an expense is recognised for any
modification that increases the total fair value of the share-based payments, or is otherwise beneficial to the
employee as measured at the date of modification.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. This includes any award where non-vesting
conditions within the control of either the Group or the employee are not met. However, if a new award is
substituted for the cancelled award, and is designated as a replacement award on the date that it is granted, the
cancelled and new awards are treated as if they were a modification of the original award, as described in the
previous paragraph.
22、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
59
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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.
23、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.
24、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.
60
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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 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.
25、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 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
61
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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.
26、Income tax
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.
62
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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.
27、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.
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
63
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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.
28、Profit distribution
The cash dividend of the Group is recognized as liabilities after the approval of general meeting of stockholders.
29、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
30、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.
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.
64
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
31、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.
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
65
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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.
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. Management estimates the related warranty claims
based on historical warranty claim information including level of repairs and returns as well as recent trends that
might suggest that past cost information may differ from future claims. Factors that could impact the estimated
claim information include the success of the Group’s quality controls, as well as parts and labour costs. 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.
32、The change of major accounting policies and estimates
The Change of Accounting Policies
On May 10th, 2017, The Finance Ministry publisized the relevant provisions of "Enterprise Accounting Standards
No. sixteenth - government subsidies" (Finance [2017]15) and required the enterprises to adopt the provisions
since June 12th, 2017. As a result of the promulgation or revision of the above accounting standards, the company
shall apply the future applicable method to the government subsidies that existing on 1 January 2017, and adjust
the new government subsidies between January 1, 2017 and the date of the implementation of these guidelines in
accordance with the following guidelines:
66
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
(1) The company will amend the financial statements to report the " other income" items separately on the "
operating profits" item in the profit statement, and the government subsidies credited to other income shall be
reflected in the item.
(2)The government grants related to daily activities of enterprises should be included in "other income" from
"non-operating income", and be listed singly on the profit table above the "operating profit".
VI、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 services, 5%、6% or
Value added tax (“VAT”)
deducted the deductible input VAT. 17%
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%.
.VII、Notes to the consolidated financial statements
1、Cash and cash equivalents
Unit： yuan
Item Ending Beginning
67
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Cash 5,351.68 29,559.40
Cash at bank 26,809,261,028.52 22,993,402,507.65
Other cash 1,073,124,995.51 1,789,072,485.39
Total 27,882,391,375.71 24,782,504,552.44
As at 30 June 2017, the book value of restricted cash and cash equivalents is RMB 1,073,124,995.51, which was mainly restricted
for the issuance of acceptance bill.
As at 30 June 2017, the cash at bank oversea is equivalent to RMB 184,192,666.79.
2、Notes receivable
（1）Classification of notes receivable
Type Ending Beginning
Commercial acceptance bill 7,932,478,265.50 8,681,506,152.50
Bank acceptance bill 13,802,846,538.40 20,321,033,108.76
Total 21,735,324,803.90 29,002,539,261.26
（2）The notes receivable pledged as follows:
Type Ending Beginning
Bank acceptance bill 901,019,620.00 1,029,541,142.00
The bank acceptance bill of the above amount has been pledged for the note receivable on 30 June 2017 and 31 December 2016.
（3）Endorsed or discounted but unexpired notes receivable as at the end of reporting period are as follows:
Ending Beginning
Type
Derecognition Un-derecognition Derecognition Un-derecognition
Commercial acceptance bill - - 68,903,990.00 -
Bank acceptance bill 1,043,177,748.00 - 1,689,454,116.09 -
Total 1,043,177,748.00 - 1,758,358,106.09 -
3、Accounts receivable
(1) An analysis of the accounts receivable by category as at the end of the reporting period is as follows:
Ending Beginning
Item Balance Provision Balance Provision
Amount % Amount % Amount % Amount %
Individually 881,469,362.59 45.68 1,761,342.74 0.20 807,264,568.09 52.77 - -
68
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
significant items
and analyzed
individually for
provision
Accounts receivable analyzed as groups for provision
Group 1. Accounts
receivable
analyzed for
744,182,592.31 38.56 21,791,721.77 2.93 539,225,767.44 35.24 23,064,841.85 4.28
provision
according to aging
analysis
Group 2. Accounts
receivable from 297,930,663.49 15.44 - - 175,411,547.86 11.47 - -
related parties
Group subtotal 1,042,113,255.80 54.00 21,791,721.77 2.09 714,637,315.30 46.71 23,064,841.85 3.23
Individually
insignificant items
but analyzed 6,119,941.69 0.32 6,119,941.69 100 7,881,284.43 0.52 7,881,284.43 100
individually for
provision
Total 1,929,702,560.08 100 29,673,006.20 1.54 1,529,783,167.82 100 30,946,126.28 2.02
Within groups, accounts receivable analyzed for provision according to aging analysis:
Ending Beginning
Aging Balance Balance
Provision Provision
Amount % Amount %
Within 6 months 691,516,364.54 92.92 - 489,006,288.37 90.69 -
6 to 12 months 15,428,876.93 2.07 771,443.84 5,598,962.70 1.04 279,948.14
Within 1 year 706,945,241.47 95.00 771,443.84 494,605,251.07 91.73 279,948.14
subtotal
1 to 2 years 2,316,962.72 0.31 231,696.27 5,365,243.93 0.99 536,524.39
2 to 3 years 18,831,237.80 2.53 5,649,371.34 22,497,896.67 4.17 6,749,369.00
3 to 4 years 432,000.00 0.06 216,000.00 1,319,200.00 0.24 659,600.00
4 to 5 years 3,669,700.00 0.49 2,935,760.00 2,993,877.26 0.56 2,395,101.81
Over 5 years 11,987,450.32 1.61 11,987,450.32 12,444,298.51 2.31 12,444,298.51
Total 744,182,592.31 100.00 21,791,721.77 539,225,767.44 100.00 23,064,841.85
Individually significant items and analyzed individually for provision:
√Yes □ No
Proportion of
Accounts receivable Balance Provision Reason
impairment (%)
69
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Electric ant ( Beijing ) new energy 113,901,899.25 - - Significant amount of
automobile co., ltd individual
AQ 87,284,617.36 - - Significant amount of
individual
MASI 56,811,318.04 - - Significant amount of
individual
Dingzhou city, Hebei province ( new 53,458,859.91 - - Significant amount of
energy ) individual
Guangdong changan automobile sales co., 29,133,143.32 - - Significant amount of
ltd individual
Henan Louis automobile sales co., ltd 28,437,152.75 - - Significant amount of
individual
Fuyang city Lixin automobile sales 21,255,645.37 - - Significant amount of
service co., ltd individual
Chongqing Zhongbang automobile sales 19,319,752.44 - - Significant amount of
service co., ltd individual
SAIPA AUTO ENGINEERING & Significant amount of
340,865,985.00 - -
TRADING CO. (SETCO) individual
Affected by the
Egyptian foreign
exchange control and the
decline of the Egyptian
pound against the US
dollar, the credit sales
collection of the AMT in
Egypt is overdue, and the
region manager considers
the risk of repayment to
be low based on the
ARAB MOTORS 41,387,388.38 1,761,342.74 5% repayment performance
of the customers.
Besides, China Credit
Isurance agreed on the
reclaim of the payments
by Changan. According
to the asset impairment
management procedure,
5 % of the arrears with
the overdue 180 days, i.e
USD 233.07, or RMB
1,761,342.74 yuan, is
70
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
accrued
Dingzhou antekai automobile trading co., 29,651,122.43 - - Significant amount of
ltd individual
Zunyi Anda automobile sales service co., 22,086,023.44 - - Significant amount of
ltd individual
Qingdao North Jianda group co., ltd 20,697,471.55 - - Significant amount of
individual
Zhengzhou new era automobile sales co., 17,178,983.35 - - Significant amount of
ltd individual
Total 881,469,362.59 1,761,342.74 --
(2) As for June 30, 2017, provision for impairment of accounts receivable amounting to RMB 557,056.77 has been accrued.
Provision for impairment of accounts receivable amounting to RMB 1,385,456.85 has been reversed.
(3) As at 30 June 2017, provision for impairment of accounts receivable amounting to RMB 444,720 is written off.
(4) As at 30 June 2017, top five debtors of accounts receivable are as follows:
Proportion of total
Debtors Ending balance Duration
accounts receivable (%)
First 340,865,985.00 Within 1 year 17.66
Second 113,901,899.25 In 6 months 5.90
Third 103,297,683.60 Within 1 year 5.35
Fourth 87,284,617.36 In 6 months 4.52
Fifth 56,811,318.04 In 6 months 2.94
Total 702,161,503.25 36.39
4、Prepayments
An aged analysis of the prepayments is as follows:
Ending Beginning
Aging
Amount Percentage (%) Amount Percentage (%)
Within 1 year 1,266,466,580.39 99.37 1,045,305,366.57 98.54
1 to 2 years 6,397,989.72 0.50 14,675,385.03 1.38
2 to 3 years 782,323.13 0.06 - -
Over 3 years 829,141.15 0.07 829,141.15 0.08
Total 1,274,476,034.39 100.00 1,060,809,892.75 100.00
71
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
As at 30 June 2017, top five debtors of other receivables are as follows:
Proportion of total accounts
Debtors Ending balance Provision
receivable (%)
The advance payment for steel, the write-off procedure
First 395,376,895.50 Within 1 year
is not completed
Advance payment for transmissions, the write-off
Second 232,744,361.00 Within 1 year
procedure s not completedt
The advance payment for steel, the write-off procedure
Third 184,651,717.00 Within 1 year
is not completed
The advance payment for steel, the write-off procedure
Fourth 177,530,093.48 Within 6 months
is not completed
Advance payment for transmissions, the write-off
Fifth 73,066,828.79 Within 6 months
procedure s not completedt
Total 1,063,369,895.77 -- --
5、Other receivables
(1) An analysis of the other receivables by category as at the end of reporting period is as follows
Ending Beginning
Item Balance Provision Balance Provision
Amount % Amount % Amount % Amount %
Individually significant
items and analyzed
625,993,400.00 56.18 - - 1,092,099,200.00 77.59 - -
individually for
provision
Other receivables analyzed as groups for provision
Group 1: Other
receivables analyzed for
372,817,461.47 33.46 1,237,435.08 0.33 174,186,479.76 12.38 1,132,652.00 0.65
provision according to
aging analysis
Group 2: Other
receivables from related 112,390,318.49 10.09 - - 138,246,150.73 9.82 - -
parties
Group subtotal 485,207,779.96 43.54 1,237,435.08 0.26 312,432,630.49 22.20 1,132,652.00 0.36
individually insignificant
items but analyzed
3,076,595.16 0.28 3,076,595.16 100.00 2,987,630.27 0.21 2,987,630.27 100.00
individually for
provision
72
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Total 1,114,277,775.
100.00 4,314,030.24 0.39 1,407,519,460.76 100.00 4,120,282.27 0.29
12
Within groups, other receivables analyzed for provision according to aging analysis
Ending Beginning
Aging Balance Balance
Provision Provision
Amount % Amount %
Within 1 year
Within 6 months 366,641,241.03 98.34 - 170,925,572.05 98.14 -
6 to 12 months 4,091,118.61 1.10 204,528.76 1,295,462.92 0.74 64,773.15
Within 1 year subtotal 370,732,359.64 99.44 204,528.76 172,221,034.97 98.88 64,773.15
1 to 2 years 1,053,055.41 0.28 105,305.54 803,497.37 0.46 80,349.74
2 to 3 years 149,168.77 0.04 44,750.63 227,858.77 0.13 68,357.63
3 to 4 years 55.00 0.00 27.50 - - -
4 to 5 years - - - 74,585.84 0.04 59,668.67
Over 5 years 882,822.65 0.24 882,822.65 859,502.81 0.49 859,502.81
Total 372,817,461.47 100.00 1,237,435.08 174,186,479.76 100.00 1,132,652.00
As at 30 June 2017, the individually significant items analyzed individually for provision as follows:
Proportion of
Other receivable Balance Provision impairment Reason
(%)
Branch road ( Shanghai ) co., ltd 99,781.94 99,781.94 100%
Nanjing dongchi automobile industry 1,884,213.22 1,884,213.22 100%
( group ) co., ltd
Others 1,092,600.00 1,092,600.00 100%
Total 3,076,595.16 3,076,595.16 -- --
(2) For the year ended 30 June 2017, provision for impairment of other receivables amounted to RMB 204,564.74 has been
accrued. For the year ended 30 June 2017 provision for impairment of other receivables amounted to RMB 0 has been reversed.
(3) For the year ended 30 June 2017, provision for impairment of other receivables amounted to 10,816.77 has been written off.
(4) As at 30 June 2017, top five debtors of other receivables are as follows:
Proportion of total
Debtors Ending balance accounts receivable Provision (%)
(%)
First 341,231,000.00 Within 1 year 30.62
73
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Second 259,404,000.00 Within 1 year 23.28
Third 70,874,735.54 Within 6 months 6.36
Fourth 40,784,896.53 Within 2 years 3.66
Fifth 42,778,311.70 Within 6 months 3.84
Total 755,072,943.77 - 67.76
6、Inventory
（1） Classification of inventory
Ending Beginning
Item
Balance Provision Net value Balance Provision Net value
Raw materials 485,104,156.18 61,539,785.12 423,564,371.06 473,106,798.06 57,482,949.30 415,623,848.76
Work in transit 53,453,503.33 - 53,453,503.33 60,411,091.37 - 60,411,091.37
Work in progress 556,013,110.08 54,882,563.04 501,130,547.04 615,327,063.78 53,155,331.21 562,171,732.57
Commodity stock 9,824,419,520.22 94,947,839.90 9,729,471,680.32 6,236,803,244.45 91,631,171.89 6,145,172,072.56
revolving material - - - 60,288,380.19 - 60,288,380.19
Spare parts 58,373,885.11 - 58,373,885.11 60,439,697.16 - 60,439,697.16
Total 10,977,364,174.92 211,370,188.06 10,765,993,986.86 7,506,376,275.01 202,269,452.40 7,304,106,822.61
（2）Provision for inventory
Deduction
Type Beginning Provision Ending
Reversal Write-off
Raw materials 57,482,949.30 18,194,830.62 11,934,329.37 2,203,665.43 61,539,785.12
Work in progress 53,155,331.21 23,550,918.42 23,199.01 21,800,487.58 54,882,563.04
Commodity stock 91,631,171.89 62,858,746.71 5,055,279.90 54,486,798.80 94,947,839.90
Total 202,269,452.40 104,604,495.75 17,012,808.28 78,490,951.81 211,370,188.06
7、Other current assets
Item Ending Beginning
Accrual input tax 1,848,200,411.14 925,275,929.61
Profit and loss of the property to be dealt with -8,160,519.13 -
Others 1,153,511.89 784,401.26
Total 1,841,193,403.90 926,060,330.87
8、Available-for-sale financial assets
Item Ending Beginning
74
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Available-for-sale equity securites 199,155,000.00 253,115,000.00
Other 369,451,274.00 179,361,274.00
Total 568,606,274.00 432,476,274.00
1. The available-for-sale equity securites are the 35.50 million shares of Southwest Securities Co., Ltd as of 30th ,June,2017.
2. Others: On 30th ,June,2017 the group’s ownership, measured by the cost of the investment, does not have control, joint control or
significant influence and there is no offer in the active market, the fair value can not be reliably measured by the equity investment.
75
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
9、Long-term equity investment
Explanation for
the difference
Shareholdi
Voting between
Accounting Addition/ ng Impair Current Current cash
Investee Initial amount Beginning Ending percentage shareholding
method (deduction) percentage ment provision dividends
(%) percentage and
(%)
voting
percentage
Joint ventures
Chongqing Changan Suzuki
Equity 237,719,933.33 1,230,836,876.85 -19,611,249.14 1,211,225,627.71 50 50 None - -
Automobile Co., Ltd
Jiangling Holding Co., Ltd Equity 1,008,511,522.00 2,991,207,303.06 96,573,362.50 3,087,780,665.56 50 50 None - -
Changan Ford Automobile Co.,
Ltd （former name: Changan
Equity 975,232,926.29 5,663,808,819.68 -1,363,174,006.73 4,300,634,812.95 50 50 None - - 4,458,000,000.00
Ford Mazda Automobile Co.,
Ltd）
Changan Mazda Automobile
Equity 1,097,839,635.00 2,146,340,500.42 600,278,338.63 2,746,618,839.05 50 50 None - -
Co., Ltd
Changan Ford Mazda Engine
Equity 786,734,634.10 908,715,700.67 55,447,236.74 964,162,937.41 50 50 None - -
Co., Ltd
Changan PSA Automobiles Co.,
Equity 2,007,841,700.00 647,839,655.26 -45,643,059.35 602,196,595.91 50 50 None - -
Ltd，a JV of the Company
Associates
Chongqing Xiyi Automobile
Equity 7,600,027.62 7,556,448.42 127,449.67 7,683,898.09 40 40 None - -
Linkage Rod Co., Ltd
76
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Chongqing Changan Kuayue
Equity 61,800,885.00 83,406,464.16 6,419,549.33 89,826,013.49 34.3 34.3 None - -
Automobile Co., Ltd
Chongqing Changan Kuayue
Equity 1.00 - - - 34.3 34.3 None - -
Automobile Sales Co., Ltd
Beijing Fangan Taxi LLC Equity 6,000,000.00 - - - 20.7 20.7 None - -
Chongqing Auto Finance Co.Ltd Equity 1,155,000,000.00 1,063,655,241.51 43,201,357.02 1,106,856,598.53 35 35 None - -
Total -- 7,344,281,264.34 14,743,367,010.03 -626,381,021.33 14,116,985,988.70 -- -- -- - - 4,458,000,000.00
77
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
10、Investment property
According to the cost of the investment real estate
Item Beginning Addition Deduction Ending
I. Original cost 10,050,100.00 - - 10,050,100.00
Buildings 10,050,100.00 - - 10,050,100.00
II. Accumulated depreciation and 2,267,115.60 113,355.78 - 2,380,471.38
amortization
Buildings 2,267,115.60 113,355.78 - 2,380,471.38
III. Net Value 7,782,984.40 -113,355.78 - 7,669,628.62
Buildings 7,782,984.40 -113,355.78 - 7,669,628.62
IV. Impairment Provision 7,782,984.40 -113,355.78 - 7,669,628.62
Buildings 7,782,984.40 -113,355.78 - 7,669,628.62
11、Fixed assets
Item Beginning Addition Deduction Ending
I. Original cost 26,132,272,492.58 1,080,952,109.61 43,370,838.04 27,169,853,764.15
Buildings 6,585,025,213.48 40,284,136.71 665,099.59 6,624,644,250.60
Machinery 14,656,950,077.02 705,035,440.13 39,605,237.78 15,322,380,279.37
Vehicles 635,870,396.01 52,253,316.47 2,994,689.52 685,129,022.96
Other Equipments 4,254,426,806.07 283,379,216.30 105,811.15 4,537,700,211.22
-- Beginning Addition Deduction Ending
II. Accumulated 9,643,609,747.31 901,722,818.53 40,896,058.36 10,504,436,507.48
depreciation
Buildings 1,333,083,905.82 100,737,596.23 231,945.54 1,433,589,556.51
Machinery 6,198,699,998.91 361,925,815.54 38,663,581.28 6,521,962,233.17
Vehicles 93,947,322.89 56,070,191.80 2,148,989.49 147,868,525.20
Other Equipments 2,017,878,519.69 382,989,214.96 -148,457.95 2,401,016,192.60
-- Beginning Addition Deduction Ending
III. Net Value 16,488,662,745.27 179,229,291.08 2,474,779.68 16,665,417,256.67
Buildings 5,251,941,307.66 -60,453,459.52 433,154.05 5,191,054,694.09
Machinery 8,458,250,078.11 343,109,624.59 941,656.50 8,800,418,046.20
Vehicles 541,923,073.12 -3,816,875.33 845,700.03 537,260,497.76
Other Equipments 2,236,548,286.38 -99,609,998.66 254,269.10 2,136,684,018.62
IV. Impairment Provision 1,008,178,231.28 5,154,868.33 860,556.90 1,012,472,542.71
78
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Buildings 84,183,751.00 - - 84,183,751.00
Machinery 793,157,069.89 5,154,868.33 846,640.83 797,465,297.39
Vehicles 268,506.89 - 13,466.06 255,040.83
Other Equipments 130,568,903.50 - 450.01 130,568,453.49
V. Book Value 15,480,484,513.99 174,074,422.75 1,614,222.78 15,652,944,713.96
Buildings 5,167,757,556.66 -60,453,459.52 433,154.05 5,106,870,943.09
Machinery 7,665,093,008.22 337,954,756.26 95,015.67 8,002,952,748.81
Vehicles 541,654,566.23 -3,816,875.33 832,233.97 537,005,456.93
Other Equipments 2,105,979,382.88 -99,609,998.66 253,819.09 2,006,115,565.13
The 901,722,818.53 yuan depreciation during the reporting period; During the period the construction in progress amounting to 1,051,792,129.03
yuan is transferred to the fixed asset.
12、Construction in progress
(1) Details of construction in progress
closing balance openning balance
Item
Balance Provision Book value Balance Provision Book value
Mini-bus production
457,596,151.02 - 457,596,151.02 332,011,471.05 - 332,011,471.05
equipment
Yuzui motor city project 1,724,700,522.26 - 1,724,700,522.26 1,670,075,876.73 - 1,670,075,876.73
Car production equipment 90,819,724.55 - 90,819,724.55 68,289,153.08 - 68,289,153.08
Engine plant 413,258,657.04 - 413,258,657.04 749,552,604.51 - 749,552,604.51
Vehicle research institution 174,698,354.71 - 174,698,354.71 119,918,357.19 - 119,918,357.19
Vehicle moulds 511,549,389.90 - 511,549,389.90 446,423,242.75 - 446,423,242.75
Light vehicle technical
transformation project of 50,338,668.46 - 50,338,668.46 39,361,192.09 - 39,361,192.09
Baoding Changan bus
Plant for vehicle test project 21,293,863.50 - 21,293,863.50 16,109,878.08 - 16,109,878.08
Beijing vehicle construction
76,088,993.45 - 76,088,993.45 47,364,971.59 - 47,364,971.59
project
Engine Base of Nanjing 1,175,741.25 - 1,175,741.25 809,483.55 - 809,483.55
Yuzui Refitting factory 33,865,204.45 - 33,865,204.45 29,200,422.80 - 29,200,422.80
Car production Project Of
31,049,124.55 - 31,049,124.55 2,414,375.90 - 2,414,375.90
Hefei Changan
Nanjing Welding
Technological 24,747,043.21 - 24,747,043.21 16,506,412.14 - 16,506,412.14
transformation project
79
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Yubei Factory 112,249,979.90 - 112,249,979.90 107,961,718.09 - 107,961,718.09
Others 330,622,200.58 - 330,622,200.58 175,704,671.23 - 175,704,671.23
Total 4,054,053,618.83 - 4,054,053,618.83 3,821,703,830.78 - 3,821,703,830.78
(2) Movement of major construction in progress projects
Transferred to fixed
Item Beginning Addition Deduction Ending
assets
Mini-bus production
332,011,471.05 171,771,755.94 46,187,075.97 - 457,596,151.02
equipment
Yuzui motor city project 1,670,075,876.73 172,805,936.96 118,181,291.43 - 1,724,700,522.26
Car production equipment 68,289,153.08 23,239,682.58 709,111.11 - 90,819,724.55
Engine plant 749,552,604.51 303,731,171.62 640,025,119.09 - 413,258,657.04
Vehicle research
119,918,357.19 88,843,190.79 34,063,193.27 - 174,698,354.71
institution
Vehicle moulds 446,423,242.75 87,621,020.26 22,494,873.11 - 511,549,389.90
Light vehicle technical
transformation project
39,361,192.09 20,735,565.15 9,758,088.78 - 50,338,668.46
of Baoding Changan
bus
Plant for vehicle test
16,109,878.08 5,183,985.42 - - 21,293,863.50
project
Beijing vehicle
47,364,971.59 113,594,382.17 84,870,360.31 - 76,088,993.45
construction project
Engine Base of Nanjing 809,483.55 58,215,778.97 57,849,521.27 - 1,175,741.25
Yuzui Refitting factory 29,200,422.80 4,664,781.65 - - 33,865,204.45
Car production Project Of
2,414,375.90 32,478,345.39 3,654,426.71 189,170.03 31,049,124.55
Hefei Changan
Nanjing Welding
Technological 16,506,412.14 14,417,746.19 6,177,115.12 - 24,747,043.21
transformation project
Yubei Factory 107,961,718.09 4,700,552.40 412,290.59 - 112,249,979.90
Others 175,704,671.23 182,327,191.62 27409662.27 - 330,622,200.58
Total 3,821,703,830.78 1,284,331,087.11 1,051,792,129.03 189,170.03 4,054,053,618.83
（3）Impairment for construction in progress
None
80
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
13、Construction materials
Item Beginning Addition Deduction Ending
Specific materials 96,690.75 - 96,690.75
Total 96,690.75 - 96,690.75
14、liquidation of fixed assets
Item Beginning Ending 转入清理的原因
machinery equipment - 14,150.94 资产报废
office equipment - 183,942.93 准备出售
Total - 198,093.87
15、Intangible assets
（1）Details of intangible assets
Item Beginning Addition Deduction Ending
I. Original cost 5,825,814,549.66 692,375,453.44 - 6,518,190,003.10
Land use rights 2,355,850,569.93 - - 2,355,850,569.93
Software use rights 400,653,507.92 82,430,539.23 - 483,084,047.15
Trademark use rights 211,784,400.00 - - 211,784,400.00
Non-patent technology 2,857,526,071.81 609,944,914.21 - 3,467,470,986.02
II. Accumulated amortization 2,238,095,261.66 307,724,434.91 - 2,545,819,696.57
Land use rights 232,965,494.61 24,994,103.16 - 257,959,597.77
Software use rights 364,220,086.22 50,156,543.78 - 414,376,630.00
Trademark use rights 135,950,586.62 8,750,479.98 - 144,701,066.60
Non-patent technology 1,504,959,094.21 223,823,307.99 - 1,728,782,402.20
III. Net Value 3,587,719,288.00 384,651,018.53 - 3,972,370,306.53
Land use rights 2,122,885,075.32 -24,994,103.16 - 2,097,890,972.16
Software use rights 36,433,421.70 32,273,995.45 - 68,707,417.15
Trademark use rights 75,833,813.38 -8,750,479.98 - 67,083,333.40
Non-patent technology 1,352,566,977.60 386,121,606.22 - 1,738,688,583.82
IV. Impairment Provision 142,768,612.97 - - 142,768,612.97
Software use rights 21,319,804.81 - - 21,319,804.81
Non-patent technology 121,448,808.16 - - 121,448,808.16
81
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
V. Book Value 3,444,950,675.03 384,651,018.53 - 3,829,601,693.56
Land use rights 2,122,885,075.32 -24,994,103.16 - 2,097,890,972.16
Software use rights 15,113,616.89 32,273,995.45 - 47,387,612.34
Trademark use rights 75,833,813.38 -8,750,479.98 - 67,083,333.40
Non-patent technology 1,231,118,169.44 386,121,606.22 - 1,617,239,775.66
As at 30 June 2017, the intangible assets from internal research and development account for 42.29% of total
intangible assets.
16. Development expenditure
Deduction
Charged to income Charged to income Ending
Item Beginning Addition
Statement of the Current Statement of the Current
period period
Automobile
1,111,176,453.49 1,088,154,332.55 573,608,449.26 689,360,992.47 936,361,344.31
Development
Total 1,111,176,453.49 1,088,154,332.55 573,608,449.26 689,360,992.47 936,361,344.31
17、Goodwill
Impairment
Investee Beginning Addition Deduction Ending
provision
Hebei Changan Automobile Co., Ltd 9,804,394.00 - - 9,804,394.00 -
Nanjing Changan Automobile Co.,
- - - - 73,465,335.00
Ltd
Total 9,804,394.00 - - 9,804,394.00 73,465,335.00
18、Long-term deferred expenses
Item Beginning Addition amortization Amortization Ending
Tools 193,497.63 - - - 193,497.63
Others 13,254,912.00 306,297.10 84,387.20 - 13,476,821.90
Total 13,448,409.63 306,297.10 84,387.20 - 13,670,319.53
19、Deferred tax assets and liabilities
Deferred tax assets and liabilities are listed separately.
Recognized deferred tax assets and liabilities:
Item Ending Beginning
82
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Deferred tax assets
Provision for the impairment of assets 177,614,044.16 169,037,362.20
Accrued expenses and contingent liabilities 771,388,212.01 808,966,199.91
Unpaid tech development expense and advertisement
63,038,220.96 45,925,996.80
expense
Deferred income 333,024,636.22 350,674,434.80
Unpaid salary and bonus and others 172,106,958.85 73,003,285.27
Subtotal 1,517,172,072.20 1,447,607,278.98
Deferred tax liabilities
Available-for-sale financial assets on the changes in fair
26,441,250.00 34,535,250.00
value
Others 2,009,988.29 -
Subtotal 28,451,238.29 34,535,250.00
20、Provision for the impairment of assets
Deduction Ending
Item Beginning Addition
Reversal Write-off
I. Bad debt provision 35,066,408.55 761,621.51 1,385,456.85 455,536.77 33,987,036.44
II. Provision for obsolete
202,269,452.40 104,604,495.75 17,012,808.28 78,490,951.81 211,370,188.06
inventory
III. Provision for the impairment
1,008,178,231.28 5,154,868.33 - 860,556.90 1,012,472,542.71
of fixed assets
IV. Impairment of construction in
- - - - -
progress
V. Provision for the impairment
142,768,612.97 - - - 142,768,612.97
of intangible assets
VI. Provision for the impairment
73,465,335.00 - - - 73,465,335.00
of goodwill
Total 1,461,748,040.20 110,520,985.59 18,398,265.13 79,807,045.48 1,474,063,715.18
21、Other non-current assets
Item Ending Beginning
Other non-current assets 3,077.01 -
Total 3,077.01 -
83
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
22、Short-term loans
Item Ending Beginning
Pledge loans 165,000,000.00 150,000,000.00
Guaranteed loans - 25,000,000.00
Credit loans 23,810,327.67 -
Total 188,810,327.67 175,000,000.00
23、Notes payable
Item Ending Beginning
Commercial acceptance bill - 2,040,438,358.00
Bank acceptance bill 22,691,578,208.46 18,911,666,447.58
Total 22,691,578,208.46 20,952,104,805.58
24、Accounts payable
Item Ending Beginning
Accounts payable 17,078,288,462.79 19,880,580,102.39
total 17,078,288,462.79 19,880,580,102.39
25、Advances from customers
Item Ending Beginning
Advances from customers 9,231,546,726.81 6,854,337,365.01
total 9,231,546,726.81 6,854,337,365.01
26、Payroll payable
30 June 2017
Item Beginning Addition Deduction Ending
Short term salary
1,778,345,189.08 3,112,482,401.25 4,018,994,686.13 871,832,904.20
benefits
Defined contribution
59,207,286.15 7,792,310.64 34,237,204.01 32,762,392.78
plans
Early retirement
2,395,000.00 5,450,968.13 - 7,845,968.13
benefits
84
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Total 1,839,947,475.23 3,125,725,680.02 4,053,231,890.14 912,441,265.11
Short term salary benefits
30 June 2017
Item Beginning Addition Deduction Ending
Salary, bonus, allowance
1,422,437,552.40 2,369,485,620.40 3,009,775,309.71 782,147,863.09
and subsidy
Employee benefit 199,134,921.94 119,980,015.26 313,936,048.34 5,178,888.86
Social insurance 911,790.47 383,097,318.19 377,579,688.18 6,429,420.48
Housing accumulation fund 82,224,632.32 170,449,156.01 246,724,318.12 5,949,470.21
Labor fund and employee 73,636,291.95 69,470,291.39 70,979,321.78 72,127,261.56
education fund
Total 1,778,345,189.08 3,112,482,401.25 4,018,994,686.13 871,832,904.20
Defined contribution plans as follows:
30 June 2017
Item Beginning Addition Deduction Ending
Basic retirement
51,342,643.25 2,965,522.17 29,089,907.33 25,218,258.09
security
Unemployment
7,864,642.90 4,826,788.47 5,147,296.68 7,544,134.69
insurance
Total 59,207,286.15 7,792,310.64 34,23-7,204.01 32,762,392.78
27、Taxes payable
Item Ending Beginning
Value-added tax 53,843,142.98 61,599,556.40
Consumption tax 276,327,734.34 331,988,223.84
Corporate income tax 99,639,417.32 117,965,863.43
Individual Income tax 925,346.76 3,009,136.60
City maintenance and construction tax -47,405,703.45 17,543,881.51
Education additional expenses -32,926,315.18 15,117,014.02
Others 9,301,447.42 8,457,813.36
total 359,705,070.19 555,681,489.16
85
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
28、Interest payable
Item Ending Beginning
Corporate bonds interest - 73,458,000.00
total - 73,458,000.00
29、Dividend payable
Item Ending Beginning
Dividend payable – Hebei Changan Minority
79,742.80 79,742.80
interests
total 79,742.80 79,742.80
30、Other payables
Item Ending Beginning
Deposits of dealer and supplier 71,818,572.65 62,903,407.42
Maintenance fees 85,816,558.68 192,922,034.17
Advertisement fees 163,683,904.09 362,870,963.91
Warehousing and transport fees 368,130,753.22 102,452,830.88
Integrated service charges and miscellaneous 492,843,976.08 406,491,895.86
expenses
Project funds 158,556,607.80 144,749,843.68
Others 378,234,562.29 176,637,620.05
Total 1,719,084,934.81 1,449,028,595.97
31、Contingent liabilities
Item Beginning Addition Deduction Ending
Warranty 2,010,153,951.87 619,552,683.26 291,044,190.14 2,338,662,444.99
Total 2,010,153,951.87 619,552,683.26 291,044,190.14 2,338,662,444.99
Note: Warranty is the estimated repair expenses for the sold vehicles within warranty period.
32、Other current liabilities
Item Ending Beginning
Accrued utilities 11,264,421.01 38,792,016.31
Accrued transportation fee 442,549,076.18 640,217,259.02
86
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Accrued labor service fee 4,020,313.96 59,225,911.17
Accrued technology royalty 79,774,903.38 90,722,615.32
Accrued commercial discount payable 2,515,144,510.55 2,949,334,782.23
Accrued market development expense 872,776,167.75 433,277,614.83
Total 3,925,529,392.83 4,211,570,198.88
33、Bonds payables
Item Ending Beginning
Corporation bonds - -
With the permission of the China securities regulatory commission regulatory approval [2012] no. 2012, the company to the public in
April 2012, issue corporate bonds, face value of RMB 1,980,000,000.00 coupon for fixed rate 5.30%, according to the annual interest
payments, FuXiRi for every year on April 23, the final payment date is April 23, 2017. After deducting distribution costs RMB
19589600.00, raised RMB 1960410400.00. The bond is provided by the parent company China changan full unconditional
irrevocable joint and several guarantee. During the reporting period, the company has paid the interest from April 23, 2016 to April
22, 2017 (fifth year) and the principal on April 23, 2017.
34、Special payables
Item Beginning Addition Deduction Ending
Project 863 2,603,472.95 - 94,694.27 2,508,778.68
Test on key technology of hybrid
1,412,205.57 - 386,911.12 1,025,294.45
electric vehicles
New vehicle product 5,821,883.01 6,400,000.00 39,954.93 12,181,928.08
Automobile product chain sharing
5,890,973.75 250,000.00 4,609,462.72 1,531,511.03
platform
Gasoline Engine Development 1,640,515.05 120,000.00 701,245.99 1,059,269.06
Development and industrialization of
the embedded software platform for 263,547.70 - 2,473,495.86 -2,209,948.16
automotive electronic controllers
Changan automobile E class Gasoline
engine cylinder block, cylinder head 60,347,217.64 - - 60,347,217.64
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 system
2,832,689.00 - 255,000.00 2,577,689.00
project
87
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Industrialization of patented
1,879,318.52 240,000.00 1,900,688.52 218,630.00
technologies
Vehicle network intelligent information
terminal middleware key technologies 1,858,453.43 750,000.00 224,453.89 2,383,999.54
research and application
Development and industrialization of
-32,666,228.71 - 11,973.00 -32,678,201.71
C206 pure electric cars
System development of
electromagnetic compatibility of key 5,131,308.66 - 696,095.93 4,435,212.73
accessories on electric cars
Intalligent manufacturIng project 61526291.76 - 5,959,492.36 55,566,799.40
Lightweight design of automobile
30,075,234.45 49,110,000.00 16,110,360.90 63,074,873.55
structure
Others 13,368,127.80 10,781,600.00 8,948,671.63 15,201,056.17
Total 217,497,540.80 67,651,600.00 42,412,501.12 242,736,639.68
35. Deferred income
30 June, 2017
Item Beginning Addition Deduction Ending
Government grants related to
2,762,931,782.46 795,449,245.36 79,980,008.84 3,478,401,018.98
assets
Others 22,953,843.91 11,363,574.46 - 34,317,418.37
Total 2,785,885,626.37 806,812,819.82 79,980,008.84 3,512,718,437.35
2016
Item Beginning Addition Deduction Ending
Government grants related to
2,662,177,255.96 280,035,500.00 179,280,973.50 2,762,931,782.46
assets
Others 4,366,152.86 18,587,691.05 - 22,953,843.91
Total 2,666,543,408.82 298,623,191.05 179,280,973.50 2,785,885,626.37
As at 30 June 2017 details of liabilities related to government grants are as follows:
Recorded to
Relates to
Item Beginning Addition other Ending
asset/gain
income
Project subsidy funds Related to
2,338,351,870.83 616,401,000.00 55,231,294.10 2,899,521,576.73
asset
88
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Subsidies for plant construction Related to
392,747,109.56 154,048,245.36 24,748,714.74 522,046,640.18
asset
Technical innovation funds Related to
16,150,000.00 - - 16,150,000.00
asset
Other asset - related subsidies Related to
15,682,802.07 25,000,000.00 - 40,682,802.07
asset
Total 2,762,931,782.46 795,449,245.36 79,980,008.84 3,478,401,018.98
As at 31 December 2016, details of liabilities related to government grants are as follows:
Recorded to
Relates to
Item Beginning Addition non-operating Ending
asset/gain
income
Project subsidy funds Related to
2,380,347,064.99 69,294,100.00 111,289,294.16 2,338,351,870.83
asset
Subsidies for plant Related to
230,160,213.38 210,741,400.00 48,154,503.82 392,747,109.56
construction asset
Technical innovation funds Related to
16,150,000.00 - - 16,150,000.00
asset
Other asset - related subsidies Related to
35,519,977.59 - 19,837,175.52 15,682,802.07
asset
Total 2,662,177,255.96 280,035,500.00 179,280,973.50 2,762,931,782.46
36、Share capital
Current movement
Beginning Issuance of Transfer of reserve Ending
Stock dividend others Subtotal
shares to common shares
the sum of
4,802,648,511.00 - - - - - 4,802,648,511.00
shares
37、Capital reserves
Item Beginning Addition Deduction Ending
Share premium 4,969,218,884.37 - - 4,969,218,884.37
Share-based payment 13,715,900.00 25,192,500.00 - 38,908,400.00
Capital reserve transferred arising
44,496,899.00 - - 44,496,899.00
from the old standards
89
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Restricted capital reserve of equity
17,015,985.20 - - 17,015,985.20
investments
Others 40,853,863.98 - - 40,853,863.98
Total 5,085,301,532.55 25,192,500.00 - 5,110,494,032.55
38、Other comprehensive income
item Report period Same period of last year
1. Profits (loss) generated from available for sale financial
-53,960,000.00 -93,720,000.00
assets
Less: Available for sale financial assets arising from income tax
-8,094,000.00 -14,058,000.00
effect
Net - through other comprehensive income into the profits and
- -
losses of the current
Subtotal -45,866,000.00 -79,662,000.00
2. Translation differences of foreign currency financial
-3,405,529.86 -14,578,769.25
statements
Total -49,271,529.86 -94,240,769.25
39、Surplus reserves
Item Beginning Addition Deduction Ending
Statutory surplus 2,401,324,255.50 - - 2,401,324,255.50
total 2,401,324,255.50 - - 2,401,324,255.50
40、Retained earnings
Item Sum
Retained earnings at beginning of year before 31,126,707,710.94
adjustments
Adjust the early undistributed profits total -
Retained earnings at beginning of year after 31,126,707,710.94
adjustments
Add: Net profit belong to parent company 4,620,545,739.52
Less: the statutory surplus reserves -
90
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Common stock dividends payable 3,079,869,372.47
Retained earnings at the end 32,667,384,077.99
41、Operating revenue and cost
（1）Operating revenue
Item Report period Same period of last year
Operating revenue 32,617,521,902.09 35,181,466,125.50
Other operating revenue 937,691,207.37 620,296,795.75
Operating cost 28,792,755,690.32 29,867,338,185.68
（2）Main business (divisions)
Report period Same period of last year
item
Operating revenue Operating cost Operating revenue Operating cost
motor industry 32,617,521,902.09 28,525,190,993.69 35,181,466,125.50 29,458,322,038.34
total 32,617,521,902.09 28,525,190,993.69 35,181,466,125.50 29,458,322,038.34
（3）Main business (product)
Report period Same period of last year
item
Operating revenue Operating cost Operating revenue Operating cost
Sale of goods 32,543,856,637.89 28,413,429,812.27 35,100,676,715.85 29,372,709,236.16
Outsourcing processing 73,665,264.20 111,761,181.42 80,789,409.65 85,612,802.18
total 32,617,521,902.09 28,525,190,993.69 35,181,466,125.50 29,458,322,038.34
（4）Main business areas (points)
Report period Same period of last year
Item
Operating revenue Operating cost Operating revenue Operating cost
domestic 31,939,968,925.48 27,825,290,643.34 34,767,490,150.29 29,049,188,785.60
overseas 677,552,976.61 699,900,350.35 413,975,975.21 409,133,252.74
total 32,617,521,902.09 28,525,190,993.69 35,181,466,125.50 29,458,322,038.34
91
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
42、Business tax and surcharges
item Report period Same period of last year
Consumption tax 1,176,447,268.05 1,350,755,620.86
City maintenance and construction
94,761,334.23 147,842,460.48
tax
Education additional expenses 76,037,881.67 71,551,620.75
Others 96,539,996.19 4,189,288.06
total 1,443,786,480.14 1,574,338,990.15
43、Operating expenses
item Report period Same period of last year
Payroll and welfare 167,605,237.83 190,252,969.55
Promotion fee 533,735,809.36 591,941,577.63
Transportation expenses 1,060,691,210.71 1,068,934,334.31
Travelling expenses 35,699,649.99 31,297,917.00
Package expenses 10,580,395.13 9,453,307.65
Administrative expenses 7,627,254.67 7,344,193.33
Selling service fee 478,091,205.25 218,651,074.93
Sales discount -361,543,187.82 -30,271,721.61
Others 71,688,466.89 33,104,900.54
total 2,004,176,042.01 2,120,708,553.33
44、General and administrative expenses
item Report period Same period of last year
Payroll and welfare 753,919,030.38 1,010,220,272.41
Technology research expenses 496,834,118.06 504,713,570.09
Administrative expenses 10,389,794.81 7,641,548.23
Depreciation and amortization 439,047,564.15 360,730,100.38
Miscellaneous service charges 1,977,124.68 3,257,436.77
Tax fee 2,222,681.88 127,086,377.16
Traffic expenses 25,708,114.03 31,792,949.22
92
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Travelling expenses 13,619,514.39 15,166,425.72
Entertainment expenses 1,584,377.47 1,941,999.45
Others 40,431,751.26 149,746,253.80
total 1,785,734,071.11 2,212,296,933.23
45、Financial expenses
item Report period Same period of last year
Interest expense 40,703,286.60 61,349,410.76
Less: interest income 303,510,275.41 169,660,115.51
Exchange gain or loss 1,961,950.68 11,536,776.06
Others 14,023,435.98 12,058,915.69
total -246,821,602.15 -107,788,565.12
46、Impairment loss on assets
item Report period Same period of last year
1. Bad debt loss -623,835.34 11,990,121.39
2. Impairment provision of obsolete inventory 87,591,687.47 128,015,271.64
3. Impairment provision of fixed assets 5,154,868.33 2,227,192.31
Total 92,122,720.46 142,232,585.34
47、Investment income
item Report period Same period of last year
Long-term equity investment income under cost
- -
method
Long-term equity investment income under equity 3,831,618,978.64 5,204,376,269.98
method
Stock dividend income from available-for-sale - 4,615,000.00
financial assets
Available-for-sale financial assets investment
- -
income through disposal
total 3,831,618,978.64 5,208,991,269.98
93
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
48、Other income
item Report period Same period of last year Explain
R & D special funds 500,000,000.00 -
Vehicle development project support 390,790,754.64 -
Research and development grants for
158,190,000.00 -
power and intelligent technology
Deferred revenue amortization 79,980,008.84 -
Other government subsidies 24,874,142.38 -
Subsidies for new products - -
Total 1,153,834,905.86 - --
49、Non-operating income
item Report period Same period of last year
Non-current assets disposal gains in total 10,449,388.03 4,889,217.28
Gain on the disposal of fixed assets 10,449,388.03 4,889,217.28
Government grants - 496,486,470.68
others 43,495,774.09 37,047,573.92
Total 53,945,162.12 538,423,261.88
During the reporting period, according to the relevant provisions of "Enterprise Accounting Standards No. sixteenth -
government subsidies" (Finance [2017]15), since January 1, 2017, the government grants related to daily activities of enterprises
should be included in "other income" or offset related costs, and be listed singly on the profit table above the "operating profit"; as
for the government subsidies nothing to do with the daily operations of enterprises, it should be included in non-operating income.
The company should make the adjustments to the government subsidies between January 1, 2017 and the effective date of the above
guidelines, and the amount of 1,153,834,905.86 yuan government subsidies should be included in other income in the first half of
2017.
The change of the accounting policy related to "Enterprise Accounting Standards No. sixteenth: government subsidies" has no
effect on the net profit attributable to shareholders of listed companies, and has no material impact on the semi-annual financial status,
the operating results and cash flow.
50、Non-operating expenses
item Report period Same period of last year
Non-current assets disposal has lost 1,534,901.96 6,056,945.55
Loss on the disposal of fixed assets 1,534,901.96 6,056,945.55
Donation 1,584,000.00 199,000.00
94
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Others 11,281,146.02 27,496,725.41
Total 14,400,047.98 33,752,670.96
51、Income tax expense
item Report period Same period of last year
Current income tax expense 145,560,653.05 198,825,308.25
Deferred income tax adjustment -104,564,548.39 30,721,190.91
total 40,996,104.66 229,546,499.16
52、Notes to cash flow statement
（1）The major cash received relating to other operating activities
item Amount
Interest income 239,378,188.22
Government grants related to operating activities 1,109,277,356.30
Others 1,169,402,478.99
Total 2,518,058,023.51
（2）The major cash paid relating to other operating activities
item Amount
Selling expense 1,720,022,786.75
Administrative expense 699,371,250.16
Others 673,734,287.72
Total 3,093,128,324.63
（3）The major cash received relating to other investing activities
item Amount
Government grants 629,600,000.00
Total 629,600,000.00
95
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
(4) The major cash received relating to other financing activities
Item Amount
Redemption of the deposit for acceptance 749,802,481.32
Total 749,802,481.32
(5) The major cash paid relating to other financing activities:
Item Amount
Payment for deposit of bill 33,855,585.56
Total 33,855,585.56
53、Supplementary information of cash flow statement
（1）Supplementary information of cash flow statement
Unit: Yuan
Supplementary information Current Amount Prior-period Amount
1．Cash flow relating to operating activities calculated by
-- --
adjusting the net profit
Net profit 4,667,462,601.55 5,476,751,600.38
Add: provision for assets impairment 92,122,720.46 142,232,585.34
Depreciation of fixed assets, oil and gas assets, productive
1,085,730,618.57 1,232,153,547.87
biological assets
Amortization of intangible assets 307,724,434.91 246,288,446.15
Amortization of long-term deferred expense 154,198.52 168,640.00
Disposal loss/(income) on fixed assets, intangible assets
-8,972,014.55 894,064.49
and others long-term assets(with “-” for gains)
Financial expense(with “-” for gains) -246,821,602.15 -107,788,565.12
Investment loss(with “-” for gains) -3,831,618,978.64 -5,208,991,269.98
Decrease in deferred tax assets(with “-” for gains) -69,564,793.22 72,097,508.39
Decrease in inventory(with “-” for gains) -3,461,887,164.25 -2,082,567,539.51
Decrease in operating receivables(with “-” for gains) 6,028,658,163.96 1,869,665,425.58
Increase in operating payables(with “-” for gains) 403,223,316.88 2,959,611,634.78
Others -6,506,777.93 20,271,149.70
Net cash flows from operating activities 4,959,704,724.11 4,620,787,228.07
2. Investment and financing activities involving no cash
-- --
incomings / outgoings
3. Movement of cash and cash equivalents -- --
Ending balance of cash equivalents 26,809,266,380.20 21,090,148,167.23
96
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Less: beginning balance of cash equivalents 22,993,432,067.05 17,725,921,341.22
Net increase in cash and cash equivalents 3,815,834,313.15 3,364,226,826.01
（2）Cash and cash equivalents
Unit: Yuan
Item Ending balance Beginning balance
I. Cash - -
Including: Cash on hand 5,351.68 29,559.40
Bank deposits that can be readily used 26,809,261,028.52 22,993,402,507.65
Other monetary assets that can be readily used - -
II. ending balance of cash and cash equivalents 26,809,266,380.20 22,993,432,067.05
VIII、The change of consolidation scope
1、Business combination not under the Same Control
□Applicable √ Not Applicable
2、Combination under the same control
□Applicable √ Not Applicable
3、Counter purchase
□Applicable √ Not Applicable
4、Disposing subsidiary
Whether there is a single disposal of the subsidiary company investment that is the loss of control of the situation
□Applicable √not Applicable
Whether there is a situation of the loss of control over the period of the investment and the loss of control of the subsidiary company
through multiple transactions
□Applicable √not Applicable
5、Change of consolidation scope due to other reasons
(1) Newly established subsidiary companies during the reporting period
None
97
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
(2) Subsidiary clearing during the reporting period
Registered Type of Registered Capital（Ten Proportion of shares enjoyed
Name
Address business Thousand Yuan) by the group
Ningxia Hui
Changan Yinchuan Automobile
Autonomous ,Yi Sales 50 100%
Sales Co., Ltd.
nchuan
Xi'an Changan Automobile Sales Shanxi
Sales 100 100%
Co., Ltd. Province, Xi'an
Heilongjiang
Changan Automobile (Group)
Province, Sales 50 100%
Co., Ltd. Harbin Sales Branch
Harbin
IX、Stake in other entities
1.Rights in subsidaries
The subsidiaries of the Company are as follows：
Registered Total proportion of
Main
Nature of capital shareholders (%)
Company name operating Registered place
business (ten
place direct indirect
thousand)
I. The subsidiary formed by establishment or investment
Hebei Changan Automobile Co., Ltd. (Note Manufact
Dingzhou Dingzhou 46,469 94.22 -
1) uring
Chongqing Changan International
Chongqing Chongqing sales 1,376 100.00 -
Automobile Sales Co., Ltd. (Note 2)
Chongqing Changan Vehicle Networking
Chongqing Chongqing sales 8,850 100.00 -
Technology Co., Ltd.
Chongqing Changan Special Automobile
Chongqing Chongqing sales 500 50.00 -
Sales Co., Ltd (note 3)
Chongqing Changan Automobile Supporting
Chongqing Chongqing sales 3,000 99.00 1.00
Service Co., Ltd.
Chongqing Changan New Energy
Chongqing Chongqing R&D 2,900 65.00 -
Automobile Co. Ltd.
Chongqing Changan Europe Design EUR1,738.3
Turin, Italy Turin, Italy R&D 100.00 -
Academy Co., Ltd. 6
Changan United Kingdom R&D Center Co., Nottingham, Nottingham,
R&D GBP2,482 100.00 -
Ltd. United Kingdom United Kingdom
Beijing Changan R&D Center Co., Ltd. Beijing Beijing R&D 100 100.00 -
Harbin Changan R&D Center Co., Ltd. Habin Habin R&D 100 100.00 -
Shanghai Changan R&D Center Co., Ltd. Shanghai Shanghai R&D 100 100.00 -
Changan Japan Designing Center Co.,Ltd. Yokohama, Yokohama, R&D JPY2,000 100.00 -
98
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Japan Japan
Changan United States R&D Center Co., Troy, United Troy, United
R&D USD20 100.00 -
Ltd. states states
Moscow,
Changan Automobile Russia Co., Ltd. Moscow, Russia Sales USD20 100.00 -
Russia
St. Paul,
Changan Brazil Holdings Limited St. Paul, Brazil Sales BRL100 100.00 -
Brazil
Shenzhen Changan New Energy Automobile
Shenzhen Shenzhen Sales 5000 100.00
Service Co., Ltd
Hangzhou Changan Yixing Technology Co., Ltd. Hangzhou Hangzhou Lease 500 100.00
Hefei Changan Yixing Technology Co., Ltd. Hefei Hefei Lease 500 100.00
Nanjing Changan Connected Car Technology Co.,
Nanjing Nanjing Lease 500 100.00
Ltd.
II. The subsidiary formed by business combination not under common control
Nanjing Changan Automobile Co., Ltd. Manufact
Nanjing Nanjing 60,181 84.73 -
(Note1) uring
III. The subsidiary formed by business combination under common control
Chongqing Changan Automobile sales
China China Sales 600 100.00 -
subsidiaries
Manufact
Hebei Baoding Changan Bus Co., Ltd. Dingzhou Dingzhou 3,000 100.00 -
uring
Manufact
Hefei Changan Automobile Co.,Ltd. Hefei Hefei 77,500 100.00 -
uring
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 difference between proportion of voting shares and proportion of shares held is due to the
voting right consigned from minority shareholders.
Note 2：In may 2017, the company acquired 5 % equity of Chongqing changan automobile international sales service co., ltd held by
Chongqing changan industrial ( group ) co., ltd, and increased the shareholding ratio of Chongqing changan automobile international
sales service co., ltd from 95 % to 100 %.
Note 3: 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 June 30,2017, the Group has no subsidiaries with important minority interests.
2.Transctions result in change of holdingshare proportion but no effect in control of subsidiaries
√Applicable □not Applicable
In may 2017, the company acquired 5 % equity of Chongqing changan automobile international sales service co., ltd held by
Chongqing changan industrial ( group ) co., ltd, and increased the shareholding ratio of Chongqing changan automobile international
sales service co., ltd from 95 % to 100 %.
99
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
3. Stakes in joint ventures and associates
Total
proportion of Accoun
Main Registered
Registered shareholders ting
Company name operating Nature of business capital
place (%) treatme
place (0,000)
inder nt
direct
ect
I. Joint ventures
Chongqing Changan Suzuki Manufacture and sale of
Chongqing Chongqing USD19,000 50.00 - Equity
Automobile Co., Ltd. automobiles, and components
Manufacture and sale of
Jiangling Holding Co., Ltd. Nanjing Nanjing 200,000 50.00 - Equity
automobiles, and components
Manufacture and sale of
Changan Ford Automobile Co., Ltd. Chongqing Chongqing USD24,100 50.00 - Equity
automobiles, and components
Changan Mazda Automobile Co., Manufacture and sale of
Nanjing Nanjing USD11,097 50.00 - Equity
Ltd. automobiles, and components
Changan Ford Mazda Engine Co., Manufacture and sale of
Nanjing Nanjing USD20,996 50.00 - Equity
Ltd. automobiles, and components
Changan PSA Automobiles Co., Manufacture and sale of
Shenzhen Shenzhen 400,000 50.00 - Equity
Ltd. automobiles, and components
II. Associates
Chongqing Xiyi Automobile Develop, manufactory, sale of
Chongqing Chongqing 1,900 40.00 - Equity
Linkage Rod Co., Ltd. linkage rod
Develop, product and sale of
Chongqing Changan Kuayue
Chongqing Chongqing automobile and components; 6,533 34.30 - Equity
Automobile Co., Ltd.
import and export goods.
Sale of Changan Kuayue’ s
Chongqing Changan Kuayue automobile and agricultural cars
Chongqing Chongqing 300 34.30 - Equity
Automobile Sales Co., Ltd. and components. Technical
advisory services for automobile
Beijing Fang’an Taxi Co., Ltd. Beijing Beijing For the car loan business 2,897.96 20.70 - Equity
Provide car loan; provide vehicle
loans and operating equipment
loans to car dealers, including the
Chongqing Auto Finance Co., ltd. Chongqing Chongqing 250,000 35.00 - Equity
construction loans of exhibition
hall,spare parts loans and
maintenance equipment loans, etc.
X、Risks associated with financial instruments
1. Classification of financial instruments
100
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
The book values of different classes of financial instruments are as follows:
Financial assets
Loans and accounts Available-for-sale financial
June 30,2017 Total
receivable assets
Cash 27,882,391,375.71 - 27,882,391,375.71
Notes receivable 21,735,324,803.90 - 21,735,324,803.90
Accounts receivable 1,900,029,553.88 - 1,900,029,553.88
Other receivables 1,109,963,744.88 - 1,109,963,744.88
Available-for-sale financial assets - 568,606,274.00 568,606,274.00
Interest receivable 66,274,965.27 - 66,274,965.27
Total 52,693,984,443.64 568,606,274.00 53,262,590,717.64
Financial liabilities
June 30,2017 2016
Short-term loans 188,810,327.67 175,000,000.00
Notes payable 22,691,578,208.46 20,952,104,805.58
Accounts payable 17,078,288,462.79 19,880,580,102.39
Interest payable - 73,458,000.00
Dividend payable 79,742.80 79,742.80
Other payables 1,719,084,934.81 1,449,028,595.97
Bonds payable - -
Non-current liabilities due within one year 6,461,808.00 1,992,341,127.81
Long-term loans 19,980,912.00 19,980,912.00
Total 41,704,284,396.53 44,542,573,286.55
Note: The changan 2012 debt was due on April 23, 2017。
2、Transfer of financial assets
The transferred financial assets that entirely derecognized but continuing involved
As of June 30 2017, the Group has endorsed bank acceptance bill with a carrying amount of
RMB1,043,177,748.00 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
101
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
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 first half of 2017 , 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.
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 30 June 2017, among the Group’s collections with specific
credit risk, 36.39% of accounts receivables of the Group are due from top five clients respectively.
An analysis of financial assets of individual impairment:
June 30,2017
Total Book value Impairment provision
Accounts
1,900,029,553.88 1,929,702,560.08 29,673,006.20
receivable
Other receivables 1,109,963,744.88 1,114,277,775.12 4,314,030.24
Notes receivable 21,735,324,803.90 21,735,324,803.90 -
Available-for-sale 568,606,274.00 568,606,274.00 -
102
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
financial assets
Interest receivable 66,274,965.27 66,274,965.27 -
Although the existence of the company in Part of the accounts receivable impairment due to credit risk, but should
be single recognized impairment losses of accounts receivable balance of accounts receivable the ending balance
of proportion is very small, and the company has been confirmed according to the situation of credit risk the
possibility of credit risk loss. For no signs that need individual recognized impairment losses of accounts
receivable, the company according to the history of the credit risk of loss occur aging analysis of the proportion of
reasonably estimate the possible loss of credit risk, and the provision for bad debt provision in the balance sheet
date. Therefore, the company does not exist because of the occurrence of credit risk and leads to a significant loss.
Liquidity risk
The Group adopts cycle liquidity planning instrument to manage capital shortage risks. The instrument takes into
consideration the maturity date of financial instruments plus estimated cash flow from the Group’s operations.
The Group’s objective is to maintain a balance between continuity of funding and flexibility and sufficient cash to
support operating capital through financing functions by the use of bank loans, debentures, etc.
Market risk
Interest rate risk
The Group’s revenue and operating cash flows are seldomly influenced by the interest fluctuation. As at June 30,
2017, 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 2017, the Group has less transactional currency exposures 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 VII 8) as at June 30, 2017. 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.
103
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Carrying amount of equity Increase/
Change in fair value
investments (decrease) in net profit
June 30, 2017
Shanghai- Available for sale 199,155,000.00 5% 9,957,750.00
Shanghai- Available for sale 199,155,000.00 -5% (9,957,750.00)
2016
Shanghai- Available for sale 253,115,000.00 5% 12,655,750.00
Shanghai- Available-for-sale 253,115,000.00 -5% (12,655,750.00)
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 First half of 2017.
On June 30, 2017 and December 31, 2016 ,The Group’s leverage ratio on the balance sheet date is as
follows:
June 30, 2017 December 31, 2016
Leverage ratio 58.12% 59.30%
XI、Disclosure of fair value
1、Assets and liabilities measured at fair value
June 30, 2017
Input measured at fair value
Quoted price in Important and Important but
active market observable input unobservable input Total
(The first level) (The second level） (The second level)
Available-for-sale
financial assets- equtiy 199,155,000.00 - - 199,155,000.00
instruments
December 31, 2016
Input measured at fair value
Quoted price in Important and observable Important but Total
104
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
active market input unobservable input
(The first level) (The second level) (The second level)
Available-for-sale
financial assets- equtiy 253,115,000.00 - - 253,115,000.00
instruments
2、Assets and liabilities disclosed in fair value
For the In June 30, 2017, there is neither transference of financial assets and liabilities between first and second
level, nor transference to or from third level.
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
June 30, 2017 2016 June 30, 2017 2016
Finacial assets
Financial assets available
for sale- equtiy 199,155,000 253,115,000 199,155,000 253,115,000
instruments
Finacial liabilities
Bonds payable
Non current liabilitiesdue
within one year
Management has assessed and concluded that the fair value of the 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, equal to book value because of their 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 30
June 2017 and 31 December 2016, which are traded in open and active market.
XII、Related parties and related party transactions
1. Parent company of the Company
105
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Related Company Legal Proportion of Final Organizat
Place of Proportion of
Parent parties’ type represent Nature of the Registered voting rights controlling ion Code
registrati shares in the
company relationship ative business capital in the party
on Company(%)
company(%)
China Manufacture and
China South
Changan sale of 911100
controlling Liability Xu 4,582,373,7 Industries
Automobile Beijing automobiles, 40.88% 40.88% 0-07109
shareholder limited Liuping 00.00 Group
Group engine, and 3-39484
corporation
Co ,Ltd. components
Main business and products: design, development, manufacturing and marketing of automobiles, motorcycles, automobile
motorcycle engines, automobile motorcycle parts and components; Sales of optical products, electronic and optoelectronic products,
night vision equipments, information and communications equipment; technology development, technology transfer, technical
consulting, technical training, technical services related to the above mentioned business; Import and export business; Asset
acquisitions, recapitalization.
2. Subsidiaries
See subsidiaries in (9) Equity in other entities
3. Other related parties
Other Related parties Relationship
Changan Ford Automobile Co.,Ltd. joint venture
Changan Mazda Automobile Co.,Ltd. joint venture
Changan Ford Mazda Engine Co., Ltd. joint venture
Chongqing Changan Suzuki Automobile Co., Ltd. joint venture
Jiangling Holding Co., Ltd. joint venture
Jiangling Holding Landwind Plant joint venture
Changan PSA Automobiles Co., Ltd. joint venture
Chongqing Changan Kuayue Automobile Co., Ltd. Associated enterprise
Chongqing Xiyi Automobile Linkage Rod Co., Ltd. Associated enterprise
Changan Industries Group Co. Ltd. subordinate company of South Group
Chongqing Changan Real Estate Development Co., Ltd. subordinate company of Changan Industries
Chongqing Changan Construction Engineering Co., Ltd. subordinate company of Changan Industries
Sichuan Hongguang Machinery and Electrics Co., Ltd. subordinate company of Changan Industries
Chongqing Changan Property Management Co., Ltd. subordinate company of Changan Industries
Chongqing Changan Visteon Engine Control Systems Co., Ltd. subordinate company of Changan Industries
China Changan Automobile Co., Ltd. Parent company
China Changan Automobile Co., Ltd. –Chongqing Qingshan Transmission
Branch Branch of China Changan
China Changan Automobile Co., Ltd. – Chengdu Jian'an Automobile Bridge
Branch subordinate company of China Changan
China Changan Automobile Co., Ltd. – Shichuan Jian'an Automobile Bridge subordinate company of China Changan
106
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Branch
South Air International Co.,Ltd. subordinate company of China Changan
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. subordinate company of China Changan
Sichuan Ningjiang Shanchuan Machinery Co, Ltd.-Longchang Shock Absorber
Branch subordinate company of China Changan
Chengdu Huachuan Electric Equipment Co., Ltd. subordinate company of China Changan
Chongqing Automobile Air-Conditioning Co., Ltd. subordinate company of China Changan
Csgc Trw Chassis Systems Co.,Ltd. subordinate company of China Changan
Chongqing Changan Min Sheng Logistics Co., Ltd. subordinate company of China Changan
Chongqing Wanyou Auto Sales and Service Co., Ltd. subordinate company of China Changan
Suining Wanyou Auto Sales and Service Co., Ltd. subordinate company of China Changan
Chongqing Wanyou Longrui Auto Sales and Service Co., Ltd. subordinate company of China Changan
Chongqing Wanyou Longxing Auto Sales and Service Co., Ltd. subordinate company of China Changan
Guangxi Wanyou Auto Sales and Service Co., Ltd. subordinate company of China Changan
Nanning Wanyou Auto Sales and Service Co., Ltd. subordinate company of China Changan
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. subordinate company of China Changan
Chengdu Wanyou Trading Co., Ltd. subordinate company of China Changan
Hafei Motor Co., Ltd. subordinate company of China Changan
Chongqing Anfu Automobile Marketing Co., Ltd. subordinate company of China Changan
China Changan Automobile Group Tianjin Sales Co., Ltd. subordinate company of China Changan
Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. subordinate company of China Changan
Harbin Dongan Auto Engine Co., Ltd. subordinate company of China Changan
Harbin Dongan Automotive Engine Manufacturing Co., Ltd. subordinate company of China Changan
United Prosperity Investment Co., Ltd subordinate company of China Changan
United Prosperity Investment Co., Ltd (Shenzhen) subordinate company of China Changan
Wanyou Automobile Investment Co., Ltd. subordinate company of China Changan
China South Industries Group Corporation The ultimate holding company
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. subordinate company of South Group
Chongqing Changrong Machinery Co., Ltd. subordinate company of South Group
Chengdu Lingchuan Special Industry Co., Ltd. subordinate company of South Group
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. subordinate company of South Group
Chongqing Changfeng Jiquan Machinery Co., Ltd. subordinate company of South Group
Yunnan Xiyi Industries Co., Ltd. subordinate company of South Group
Chongqing Shangfang Automobile Fittings Co., Ltd. subordinate company of South Group
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. subordinate company of South Group
Chongqing Dajiang Yuqiang Plastic Co., Ltd. subordinate company of South Group
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. subordinate company of South Group
China South Industries Group Finance Co., Ltd. subordinate company of South Group
Southwest Ordnance Industry Corporation subordinate company of South Group
Chongqing Wanyou Economic Development Co., Ltd. subordinate company of South Group
Chongqing Wanbing Supplies Ltd. subordinate company of South Group
Chongqing Wanyou Construction Co., Ltd. subordinate company of South Group
Chengdu Wanyou Economic Technological Development Co., Ltd. subordinate company of South Group
107
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. subordinate company of South Group
Chengdu Wanyou Filter Co., Ltd. subordinate company of South Group
Yunnan Wanyou Auto Sales and Service Co., Ltd. subordinate company of South Group
Guizhou Wanyou Auto Sales and Service Co., Ltd. subordinate company of South Group
Chongqing Yihong Engineering Plastic Products Co., Ltd. subordinate company of South Group
Chengdu Ningxing Automobile Spring Co., Ltd subordinate company of South Group
Beijing Beiji Mechanical and Electrical Industry Co., Ltd. subordinate company of South Group
Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. subordinate company of South Group
Chongqing Qingshan Transmission Sales Co., Ltd. subordinate company of South Group
Chongqing Dajiang Jiexing Forging Co., Ltd. subordinate company of South Group
Chongqing Jialing Yimin Special Equipment Co., Ltd. subordinate company of South Group
CDGM Tanaka Environmental Catalyst Co,. Ltd subordinate company of South Group
Yunnan Xiangyu Auto Sales and Service Co., Ltd. subordinate company of South Group
Chongqing Nexteer steering system co., ltd subordinate company of South Group
4、Related-party transaction
（1）Goods purchased and services received
Unit:Yuan
Related parties Nature of the Current amount Prior-period amount
transaction Proportion of Proportion
similar amount of similar
transactions transactions
amount (%) (%)
Purchase of spare
Changan Ford Automobile Co.,Ltd. 75,369,099.10 0.26% 117,323,942.40 0.40%
parts
Chongqing Changan Suzuki Purchase of spare
91,610,674.73 0.32% 68,168,188.41 0.23%
Automobile Co., Ltd. parts
Chongqing Xiyi Automobile Linkage Purchase of spare
147,693.40 0.00% 3,463,767.52 0.01%
Rod Co., Ltd. parts
Chongqing Changan Kuayue
Accept service 53,411,400.00 0.19% - -
Automobile Co., Ltd.
Purchase of spare
Changan Industries Group Co. Ltd. parts and accept 22,284,149.38 0.08% 28,470,053.55 0.10%
service
Chongqing Changan Minsheng
Transportation fee 768,217,130.41 2.69% 690,620,217.73 2.34%
Logistics Co., Ltd
Sichuan Hongguang Machinery and Purchase of spare
3,742,906.54 0.01% 7,014,208.03 0.02%
Electrics Co., Ltd. parts
Chongqing Changan Property
Accept service 3,119,331.42 0.01% 2,836,763.43 0.01%
Management Co., Ltd.
108
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Related parties Nature of the Current amount Prior-period amount
transaction Proportion of Proportion
similar amount of similar
transactions transactions
amount (%) (%)
Chongqing Changan Visteon Engine Purchase of spare
- - 1,107,469.69 0.00%
Control Systems Co., Ltd. parts
Purchase of spare
China Changan Automobile Co., Ltd. 310,385.23 0.00% - -
parts
China Changan Automobile Co., Ltd.
Purchase of spare
–Chongqing Qingshan Transmission 947,612,141.41 3.32% 1,000,109,229.39 3.39%
parts
Branch
China Changan Automobile Co., Ltd.
Purchase of spare
–Shichuan Jian'an Automobile Bridge 470,981,559.71 1.65% 454,703,484.10 1.54%
parts
Branch
China Changan Automobile Co., Ltd.
Purchase of spare
–Chengdu Jian'an Automobile Bridge - - 391,277.26 0.00%
parts
Branch
Purchase of spare
South Air International Co.,Ltd. 227,232,590.96 0.80% 178,467,057.87 0.61%
parts
Sichuan Ningjiang Shanchuan Purchase of spare
105,119,671.81 0.37% 67,488,935.91 0.23%
Machinery Co, Ltd. parts
Sichuan Ningjiang Shanchuan
Purchase of spare
Machinery Co, Ltd.-Longchang Shock 55,686,449.39 0.20% 53,388,729.51 0.18%
parts
Absorber Branch
Chengdu Huachuan Electric Purchase of spare
172,671,760.20 0.61% 175,138,389.64 0.59%
Equipment Co., Ltd. parts
Chongqing Changfeng Jiquan Purchase of spare
20,665,043.14 0.07% 17,627,655.88 0.06%
Machinery Co., Ltd. parts
Purchase of spare
Csgc Trw Chassis Systems Co.,Ltd. 255,910,955.40 0.90% 397,967,255.99 1.35%
parts
Chengdu Ningjiang Zhaohe Purchase of spare
23,211,614.17 0.08% 8,991,534.00 0.03%
Automobile Components Co., Ltd. parts
Purchase of spare
Harbin Dongan Auto Engine Co., Ltd. 470,425,124.49 1.65% 566,765,028.47 1.92%
parts
Harbin Dongan Automotive Engine Purchase of spare
885,672,904.03 3.10% 1,185,619,574.94 4.02%
Manufacturing Co., Ltd. parts
Hubei Xiaogan Huazhong Automobile Purchase of spare
41,495,725.39 0.15% 57,763,751.03 0.20%
Light Co., Ltd. parts
109
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Related parties Nature of the Current amount Prior-period amount
transaction Proportion of Proportion
similar amount of similar
transactions transactions
amount (%) (%)
Chongqing Changrong Machinery Purchase of spare
11,785,659.17 0.04% 25,967,737.34 0.09%
Co., Ltd. parts
Chengdu Lingchuan Special Industry Purchase of spare
13,228,609.04 0.05% 31,560,358.37 0.11%
Co., Ltd. parts
Chengdu Lingchuan Vehicle Oil Tank Purchase of spare
23,549,781.40 0.08% 42,039,692.66 0.14%
Co., Ltd. parts
Purchase of spare
Yunnan Xiyi Industries Co., Ltd. 44,919,506.45 0.16% 46,577,677.83 0.16%
parts
Chongqing Shangfang Automobile Purchase of spare
37,750,754.20 0.13% 48,351,625.04 0.16%
Fittings Co., Ltd. parts
Chongqing Dajiang Xinda Vehicles Purchase of spare
13,876,784.01 0.05% 24,373,775.79 0.08%
Shares Co., Ltd. parts
Chongqing Dajiang Yuqiang Plastic Purchase of spare
1,683,008.98 0.01% 24,410.50 0.00%
Co., Ltd. parts
Chongqing Jianshe Automobile Purchase of spare
95,402,778.55 0.33% 108,836,966.55 0.37%
Air-conditioner Co., Ltd. parts
Chengdu Wanyou Economic Purchase of spare
57,762,014.69 0.20% 38,692,349.00 0.13%
Technological Development Co., Ltd. parts
Purchase of spare
Chengdu Wanyou Filter Co., Ltd. 99,629,474.41 0.35% 85,015,635.06 0.29%
parts
Chongqing Yihong Engineering Purchase of spare
20,476,902.56 0.07% 22,922,405.91 0.08%
Plastic Products Co., Ltd. parts
Chengdu Ningxing Automobile Purchase of spare
5,857,317.24 0.02% 4,419,997.62 0.02%
Spring Co., Ltd parts
Chengdu Jialing Huaxi Optical & Purchase of spare
5,426,840.77 0.02% 1,278,053.57 0.00%
Precision Machinery Co., Ltd. parts
Chongqing Qingshan Transmission Purchase of spare
2,765,777.75 0.01% 3,976,293.99 0.01%
Sales Co., Ltd. parts
Chongqing Dajiang Jiexing Forging Purchase of spare
2,152,623.81 0.01% 1,379,980.98 0.00%
Co., Ltd. parts
Beijing Beiji Mechanical&Electric Purchase of spare
69,412.93 0.00% 44,779.84 0.00%
Induustry Co., Ltd parts
Chongqing Jialing Yimin Special Purchase of spare - 0.00% 36,951.21 0.00%
110
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Related parties Nature of the Current amount Prior-period amount
transaction Proportion of Proportion
similar amount of similar
transactions transactions
amount (%) (%)
Equipment Co., Ltd. parts
CDGM Tanaka Environmental Purchase of spare
- 0.00% 1,098,669.67 0.00%
Catalyst Co,. Ltd parts
United Prosperity Investment Co.,
Accept service - 0.00% 158,960.85 0.00%
Ltd(Note 1)
Chongqing Nexteer steering system Purchase of spare
51,877,949.09 0.18% - -
co., ltd parts
Total 5,183,113,505.36 18.17% 5,570,182,836.53 18.87%
The price of the Group’s purchase from related parties is based on contracts agreed by both parties.
Note1: During the reporting period, United Prosperity Investment Co., Ltd did not provide trade financing services to the company
for the overseas procurement of machine equipments.
(2) Goods sold and services offered
Unit: Yuan
Current amount Prior-period Amount
Proportion Proportion
Related parties Nature of the transaction
of similar of similar
amount amount
transactio transactio
ns (%) ns (%)
Changan Ford Automobile Sales of spare parts,
Co.,Ltd. personnel support 15,719,208.35 0.05% 13,330,752.68 0.04%
Chongqing Changan Suzuki Sales of spare parts,
Automobile Co., Ltd. personnel support 8,890,992.31 0.03% 13,048,310.61 0.04%
Jiangling holdings co., ltd Sales of spare parts,
personnel support 29,782,109.60 0.09% - -
Chongqing Changan Sales of spare parts, service
- - 2,721.09 0.00%
Minsheng Logistics Co., Ltd charges
Sichuan Hongguang Sales of raw material
Machinery and Electrics 1,074,846.49 0.00% 3,594,642.55 0.01%
Co., Ltd.
China Changan Automobile Sales of raw material
Co., Ltd. –Chongqing 52,935.85 0.00% - -
Qingshan Transmission
111
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Branch
Chengdu Huachuan Electric Sales of spare parts
24,075.47 0.00% - -
Equipment Co., Ltd.
Csgc Trw Chassis Systems Sales of spare parts
72,181.13 0.00% - -
Co.,Ltd.
Chongqing Anfu Sales of vehicles,spare
22,148,398.28 0.07% 2,326,692.31 0.01%
Automobile Co., Ltd. parts
China Changan Automobile Sales of vehicles,spare
Group Tianjin Sales Co., parts 74,515,797.49 0.23% 77,802,315.38 0.22%
Ltd.
Harbin Dongan Automotive Technical service
Engine Manufacturing Co., 18,944,981.56 0.06% 4,134,642.56 0.01%
Ltd.
Harbin Dongan Auto Engine Sales of spare parts
27,764,630.20 0.09% 31,418,692.31 0.09%
Co., Ltd.
Wanyou Automobile Sales of vehicles, spare
437,016,833.02 1.34% 591,402,100.86 1.68%
Investment Co.,Ltd parts
Chengdu Lingchuan Special Sales of spare parts
4,082,092.31 0.01% 50,192,579.49 0.14%
Industry Co., Ltd.
Yunnan Xiyi Industries Co., Sales of spare parts
2,645,320.52 0.01% 889,815.43 0.00%
Ltd.
Chongqing Changan Kuayue Sales of spare parts
632,918.59 0.00% 112,334.59 0.00%
Automobile Co., Ltd.
South Air International Sales of spare parts
4,708.49 0.00% 7,804.72 0.00%
Co.,Ltd.
Chongqing Wanyou Sales of vehicles, spare
Economic Technological parts 731,784,709.20 2.24% 1,054,760,629.64 3.00%
Development Co., Ltd.
Guangxi Wanyou Auto Sales of vehicles, spare
154,535,311.08 0.47% 128,637,164.23 0.37%
Sales and Service Co., Ltd. parts
Nanning Wanyou Auto Sales of vehicles, spare
Sales and Service Co., Ltd. parts 32,281,963.18 0.10% 61,201,545.30 0.17%
Sichuan Wanyou Auto Sales Sales of vehicles, spare
542,474,119.33 1.66% 535,545,824.64 1.52%
and Service Co., Ltd. parts
Chengdu Wanyou Xiangyu Sales of vehicles, spare
Auto Sales and Service Co., parts 471,785,083.17 1.45% 768,919,170.42 2.19%
Ltd.
Chongqing Shangfang Chongqing Shangfang
Automobile Fittings Co., Automobile Fittings Co., 14,445.28 0.00% - -
Ltd. Ltd.
Chongqing Dajiang Xinda Chongqing Dajiang Xinda 50,513.21 0.00% - -
Vehicles Shares Co., Ltd. Vehicles Shares Co., Ltd.
112
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Yunan Wanyou Auto Sales Sales of vehicles, spare
401,384,549.34 1.23% 451,301,491.41 1.28%
and Service Co., Ltd. parts
Guizhou Wanyou Auto Sales of vehicles, spare
539,172,575.27 1.65% 570,880,470.30 1.62%
Sales and Service Co., Ltd. parts
Yunnan Xiangyu Auto Sales Sales of vehicles, spare
38,598,636.78 0.12% 66,282,249.58 0.19%
and Service Co., Ltd. parts
Chengdu Wanyou Filter Co., Sales of vehicles, spare
48,120.75 0.00% - -
Ltd. parts
China South Industries Regulatory charges
53,011,538.65 0.16% 10,613,866.87 0.03%
Group Finance Co.,Ltd
Total 3,608,513,594.90 11.06% 4,436,405,816.97 12.61%
The price of the Group’s purchase from related parties is based on contracts agreed by both parties.
（3）Related-party leasing
Related-party leasing
Unit: Yuan
Type of leased
Lesser Lessee Starting date Expiring date Yearly recognized rental
assets
Chongqing
Changan Min Chongqing
building 2017.01.01 2017.12.31 1,181,760.00
Sheng Logistics Changan
Co., Ltd.
Rent assets from related parties
Lesser Type of leased assets Starting date Expiring date Yearly recognized rental
Chongqing
Changan Real
Estate Building/ Storage 2017.01.01 2017.12.31 1,344,908.58
Development Co.,
Ltd.
Hafei Motor Co.,
Building 2017.01.01 2017.12.31 410,943.40
Ltd.
113
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
（4）Other related transactions
Integrated service charges
Related parties Nature of the transaction Report period Same period of last year
Amount Proportion of similar Amount Proportion of similar transactions (%)
transactions (%)
Payment of land rental fees 122,460.45 0.25% 11,859,085.50 10.24%
Payment of building rental fees - - 18,174,709.12 15.69%
Changan Industries
Payment of utilities 45,214,566.89 91.99% 77,576,267.28 66.97%
Group Co. Ltd
Payment of fire fighting fees 685,000.00 1.40% 913,333.34 0.79%
Others 3,127,196.57 6.36% 7,304,411.24 6.31%
Total 49,149,223.91 100.00% 115,827,806.48 100.00%
Purchase of project materials
Report period Same period of last year
Related parties Amount Proportion of similar transactions Amount Proportion of similar transactions
(%) (%)
Chongqing Changan Construction Co., Ltd 101,429,877.83 7.90% 123,917,178.80 10.38%
Chongqing Changan Min Sheng Logistics Co., Ltd. 5,493,075.52 0.43% 7,952,839.02 0.66%
Changan Industries Group Co. Ltd - - 744,293.00 0.06%
Chongqing wanyou engineering installation co., ltd 20,944,360.81 1.63% - -
Total 127,867,314.16 9.96% 132,614,310.82 11.10%
114
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Techonology development service charges
Report period Same period of last year
Related parties
Amount Proportion of similar transactions (%) Amount Proportion of similar transactions (%)
Changan Mazda Automobile Co.,Ltd. 5,132,075.47 32.29% 1,343,386.90 8.24%
Chongqing Changan Suzuki Automobile Co., Ltd.
- - 255,142.00 1.57%
Jiangling Holdings co., ltd - - 1,365,998.46 8.38%
Hafei Group Automobile Co., Ltd. - - 15,435.11 0.09%
Changan Ford Automobile Co.,Ltd. 10,762,414.02 67.71% 13,322,672.52 81.72%
Total 15,894,489.49 100% 16,302,634.99 100%
Staff expenses for technical supporting
Report period Same period of last year
Proportion of
Related parties Proportion of similar
Amount similar Amount
transactions (%)
transactions (%)
Changan PSA Automobiles Co., Ltd. - - 618,000.00 100%
Total - - 618,000.00 100%
Collection of trademark use rights fees
Report period Same period of last year
Proportion of
Related parties Proportion of similar
Amount similar Amount
transactions (%)
transactions (%)
115
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Chongqing Changan Kuayue
3,744,169.81 100.00% 5,957,433.96 100.00%
Automobile Co., Ltd.
Related party monetary funds
Ending 期初数
Related parties Proportion of similar Proportion of similar
Amount Amount
transactions (%) transactions (%)
China South Industries Group
4,460,458,611.77 16.35% 3,932,976,564.53 16.55%
Finance Co., Ltd
Changan automobile finance
1,500,000,000.00 5.50% 1,000,000,000.00 4.21%
co., ltd
In the first half of 2017, the annual rate of return of the company in the financial limited liability company of China South Industries Group Finance Co., Ltd and Changan automobile
finance co., ltd is 1.94 % and 3.915 % respectively.
Borrowing
Short-term borrowing
Ending Beginning
Amount Proportion of similar transactions Amount Proportion of similar transactions
Related parties
(%) (%)
China South Industries Group Finance Co., Ltd 155,000,000.00 82.09% 150,000,000.00 85.71%
Interest income of deferred payment
Report period Same period of last year
116
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Related parties Amount Proportion of similar transactions Amount Proportion of similar transactions
(%) (%)
Chongqing Wanyou Economic Technological Development Co., Ltd. 131,052.14 0.04% 22,099.00 0.12%
Ltd.Ltd. Automobile Investment Co., Ltd.
Wanyou 705,979.48 0.23% 535,742.13 3.01%
Guangxi Wanyou Auto Sales and Service Co., Ltd. 19,045.30 0.01% 16,621.24 0.09%
Guizhou Wanyou Auto Sales and Service Co., Ltd. 81,722.22 0.03% 240,097.00 1.35%
Yunan Xiangyu Auto Sales and Service Co., Ltd. 12,622.23 0.00% 109,010.00 0.61%
Sichuan Wanyou Auto Sales and Service Co., Ltd.Ltd. 816,674.36 0.27% 541,478.81 3.04%
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. 520,312.83 0.17% 365,659.00 2.05%
Yunan Wanyou Auto Sales and Service Co., Ltd. 1,115,457.26 0.37% 873,810.00 4.91%
Total 3,402,865.82 1.12% 2,704,517.18 15.18%
117
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
5、Payment and receivables of related parties
Payment receivables of related listed companies
Ending balance Beginning balance
Items Related parties Provision for Provision for
Book balance Book balance
bad-debts bad-debts
notes
Tianjin Sales Co., Ltd.CCAG 38,869,135.00 - 58,420,503.00 -
receivable
notes Wanyou Automobile
2,346,650,000.00 - 2,664,065,800.00 -
receivable Investment Co., Ltd.
Chongqing Wanyou
notes
Automobile Sales and Service 5,000,000.00 - 6,700,000.00 -
receivable
Co., Ltd
notes Sichuan Wanyou Automobile
5,000,000.00 - 16,500,000.00 -
receivable Sales and Service Co., Ltd
notes Yunnan Wanyou Automobile
10,000,000.00 - 28,788,700.00 -
receivable Sales and Service Co., Ltd
notes Guangxi Wanyou Automobile
- - 3,800,000.00 -
receivable Sales and Service Co., Ltd
Sub-total 2,405,519,135.00 - 2,778,275,003.00 -
account Changan Ford Automobile
19,775,292.36 - 30,561,372.95 -
receivable Co.,Ltd.
account Chongqing Changan Suzuki
103,297,683.60 - 86,827,183.54 -
receivable Automobile Co., Ltd.
account
Jiangling Holding Co., Ltd 38,355,697.98 - 5,463,207.59 -
receivable
account Changan PSA Automobile Co.,
22,758,165.00 - 22,758,165.00 -
receivable Ltd.
account Chongqing Changan Kuayue
81,126,789.26 - 9,008,385.36 -
receivable Automobile Co., Ltd
account Chongqing Xiyi Automobile
1,325,600.89 - - -
receivable Linkage Rod Co., Ltd.
account Chongqing Changan Min Sheng
190,460.00 - - -
receivable Logistics Co., Ltd.
account Harbin Dongan Automotive
31,291,434.40 - 11,254,461.05 -
receivable Engine Manufacturing Co., Ltd.
account Chongqing Dajiang Xinda
53,544.00 - - -
receivable Vehicles Shares Co., Ltd.
118
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
account Sichuan Wanyou Automobile
1,477,798.80 - - -
receivable Sales and Service Co., Ltd
account Yunnan Wanyou Automobile
8,479,536.08 - - -
receivable Sales and Service Co., Ltd
account China South Industries Group
- - 2,852,480.00 -
receivable Finance Co., Ltd.
account United Prosperity Investment
- - 1,224,544.70 -
receivable (Hong Kong) Co., Ltd
account Chongqing Changan Industries
- - 1,372,559.29 -
receivable Group Co. Ltd
Sub total 308,132,002.37 - 171,322,359.48 -
Other Chongqing Changan Suzuki
45,733,700.36 - 80,000,000.00 -
receivable Automobile Co., Ltd.
Other Chongqing Changan Kuayue
70,874,735.54 - - -
receivable Automobile Co., Ltd
Other Chongqing Changan Min Sheng
73,431.95 - - -
receivable Logistics Co., Ltd.
Other Harbin Dongan Auto Engine
484,040.00 - - -
receivable Co., Ltd.
Sub total 117,165,907.85 - 80,000,000.00 -
advanced Chongqing Changan Suzuki
295,474.25 - - -
payment Automobile Co., Ltd.
Sub total 295,474.25 - - -
Accounts payable to related parties of listed companies
Unit: Yuan
Items Related parties Ending balance Beginning balance
notes
Changan Ford Automobile Co.,Ltd. 186,333,505.47 -
payable
notes
Chongqing Changan Suzuki Automobile Co., Ltd. 178,039,272.66 17,251,738.34
payable
notes Chongqing Changan Kuayue Automobile Co.,
283,857,077.05 -
payable Ltd.
notes Chongqing Xiyi Automobile Linkage Rod Co.
320,000.00 -
payable
notes Chongqing Changan Construction Engineering
96,461,750.00 11,110,829.00
payable Co., Ltd.
notes Sichuan Hongguang Machinery and Electrics Co.,
460,000.00 410,000.00
payable Ltd
119
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
notes China Changan Automobile Co., Ltd.
174,870,000.00 900,000.00
payable –Chongqing Qingshan Transmission Branch
notes
South Air International Co.,Ltd. 109,990,000.00 14,770,000.00
payable
notes Sichuan Ningjiang Shanchuan Machinery Co,
19,180,000.00 2,550,000.00
payable Ltd.
notes Sichuan Ningjiang Shanchuan Machinery Co, Ltd
12,670,000.00 3,760,000.00
payable Longchang Shock Absorber Branch
notes
Chengdu Huachuan Electric Equipment Co., Ltd 2,280,000.00 2,030,000.00
payable
notes
Csgc Trw Chassis Systems Co.,Ltd. 155,740,000.00 58,160,000.00
payable
notes Chongqing Changan Min Sheng Logistics Co.,
121,932,453.00 27,821,486.29
payable Ltd.
notes
Harbin Dongan Auto Engine Co., Ltd. 616,690,000.00 130,870,000.00
payable
notes Harbin Dongan Automotive Engine
599,800,000.00 154,400,000.00
payable Manufacturing Co., Ltd.
notes Hubei Xiaogan Huazhong Automobile Light Co.,
15,170,000.00 5,190,000.00
payable Ltd
notes
Chengdu Lingchuan Special Industry Co., Ltd. 1,600,000.00 -
payable
notes
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. 23,470,000.00 3,470,000.00
payable
notes Chongqing Changfeng Jiquan Machinery Co.,
4,250,000.00 -
payable Ltd.
notes
Yunnan Xiyi Industries Co., Ltd. 33,710,000.00 7,020,000.00
payable
notes Chongqing Jianshe Automobile Air-conditioner
60,730,000.00 20,000,000.00
payable Co., Ltd.
notes
Chongqing Wanyou Construction Co., Ltd. 20,603,708.00 1,502,000.00
payable
notes
Chengdu Wanyou Filter Co., Ltd. 41,590,000.00 7,950,000.00
payable
notes Chongqing Yihong Engineering Plastic Products
4,570,000.00 -
payable Co., Ltd.
notes
Chengdu Ningxing Automobile Spring Co., Ltd 2,580,000.00 640,000.00
payable
120
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
notes Chengdu Jialing Huaxi Optical & Precision
4,880,000.00 -
payable Machinery Co., Ltd.
notes
Chongqing Dajiang Jiexing Forging Co., Ltd. 2,640,000.00 -
payable
notes Chongqing Dajiang Xinda Vehicles Shares Co.,
- 4,990,000.00
payable Ltd.
Sub total 2,774,417,766.18 474,796,053.63
account
Changan Ford Automobile Co., Ltd. 47,927,135.49 23,094,942.04
payable
account
Chongqing Changan Suzuki Automobile Co., Ltd. 100,090,153.07 69,340,827.79
payable
account Chongqing Changan Kuayue Automobile Co.,
1,382.56 1,382.56
payable Ltd.
account Chongqing Xiyi Automobile Linkage Rod Co.
81,567.24 242,581.82
payable
account
China South Industries Group Corporation 3,530,973.15 5,650,043.51
payable
account Chongqing Changan Construction Engineering
442,324.86 -
payable Co., Ltd.
account Sichuan Hongguang Machinery and Electrics Co.,
1,074,482.95 1,509,301.52
payable Ltd
account Chongqing Changan Visteon Engine Control
33,384.63 1,520,257.18
payable Systems Co., Ltd.
account China Changan Automobile Co., Ltd.
109,436,515.97 191,692,518.64
payable –Chongqing Qingshan Transmission Branch
account China Changan Automobile Co., Ltd. – Shichuan
85,772,012.04 96,970,589.92
payable Jian'an Automobile Bridge Branch
account China Changan Automobile Co., Ltd. – Chengdu
20,257.22 481,469.18
payable Jian'an Automobile Bridge Branch
account
South Air International Co.,Ltd. 72,557,794.85 63,400,974.03
payable
account Sichuan Ningjiang Shanchuan Machinery Co,
23,212,700.30 38,206,940.97
payable Ltd.
account Sichuan Ningjiang Shanchuan Machinery Co,
6,536,110.16 11,463,594.26
payable Ltd.-Longchang Shock Absorber Branch
account
Chengdu Huachuan Electric Equipment Co., Ltd. 28,300,448.55 38,618,366.98
payable
account Chongqing Automobile Air-Conditioning Co., 205,041.51 205,041.51
121
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
payable Ltd.
account
Csgc Trw Chassis Systems Co.,Ltd. 92,683,203.20 144,058,119.08
payable
account Chongqing Changan Min Sheng Logistics Co.,
30,537,646.65 10,510,851.25
payable Ltd.
account Chengdu Ningjiang Zhaohe Automobile
12,538,589.50 4,629,550.04
payable Components Co., Ltd.
account
Harbin Dongan Auto Engine Co., Ltd. 345,640,382.97 517,691,578.38
payable
account Harbin Dongan Automotive Engine
117,867,832.86 294,659,158.18
payable Manufacturing Co., Ltd.
account Hubei Xiaogan Huazhong Automobile Light Co.,
13,471,867.49 26,272,596.31
payable Ltd.
account
Chongqing Changrong Machinery Co., Ltd. 2,996,591.13 6,235,727.14
payable
account
Chengdu Lingchuan Special Industry Co., Ltd. 6,682,438.94 17,001,856.15
payable
account
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. 7,923,223.33 10,990,942.77
payable
account Chongqing Changfeng Jiquan Machinery Co.,
8,385,880.60 8,287,391.09
payable Ltd.
account
Yunnan Xiyi Industries Co., Ltd. 14,481,728.93 13,966,398.87
payable
account Chongqing Shangfang Automobile Fittings Co.,
9,519,748.34 22,158,691.18
payable Ltd.
account Chongqing Dajiang Xinda Vehicles Shares Co.,
10,191,553.24 8,424,098.39
payable Ltd.
account
Chongqing Dajiang Yuqiang Plastic Co., Ltd. 1,944,311.01 117,577.35
payable
account Chongqing Jianshe Automobile Air-conditioner
32,533,312.26 42,369,615.35
payable Co., Ltd.
account Chongqing Wanyou Economic Development Co.,
32,444,117.18 31,337,655.72
payable Ltd.
account
Chengdu Wanyou Filter Co., Ltd. 36,866,813.14 47,580,080.10
payable
account Chongqing Yihong Engineering Plastic Products
3,846,703.99 3,446,594.13
payable Co., Ltd.
account Chengdu Ningxing Automobile Spring Co., Ltd 2,221,088.85 1,433,548.24
122
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
payable
account Beijing Beiji Mechanical and Electrical Industry
81,213.13 158,672.09
payable Co., Ltd
account Chengdu Jialing Huaxi Optical & Precision
2,253,459.28 279,335.85
payable Machinery Co., Ltd.
account Chongqing Qingshan Transmission Sales Co.,
4,902,012.78 5,195,635.54
payable Ltd.
account
Chongqing Dajiang Jiexing Forging Co., Ltd. 533,137.74 413,151.57
payable
account
Chongqing Nexteer steering system co., ltd 21,155,106.96 -
payable
account
CDGM Tanaka Environmental Catalyst Co,. Ltd - 775,896.49
payable
account Chongqing Jialing Yimin Special Equipment Co.,
- 104,496.50
payable Ltd.
Sub total 1,290,924,248.05 1,760,498,049.67
advance
Changan Mazda Automobile Co., Ltd 1,423,660.83 1,423,660.83
receipts
advance
Changan Ford Mazda Engine Co., Ltd 3,256,185.92 3,256,185.92
receipts
advance Chongqing Changan Min Sheng Logistics Co.,
361,998.32 361,998.32
receipts Ltd.
advance Guangxi Wanyou Auto Sales and Service Co.,
13,819,445.88 4,270,723.54
receipts Ltd.
advance Nanning Wanyou Auto Sales and Service Co.,
6,013,160.87 1,230,682.87
receipts Ltd.
advance Chengdu Wanyou Xiangyu Auto Sales and
114,146,408.40 77,094,559.70
receipts Service Co., Ltd.
advance
Chongqing Anfu Automobile Marketing Co., Ltd. 475,144.00 5,101,770.00
receipts
advance China Changan Automobile Group Tianjin Sales
7,366,927.00 573,003.00
receipts Co., Ltd.
advance
Wanyou Automobile Investment Co., Ltd. 10,515,267.00 4,096,403.00
receipts
advance Chongqing Wanyou Auto Sales and Service Co.,
41,195,248.65 30,134,630.15
receipts Ltd.
advance Chongqing Wanyou Economic Development Co.,
29,609,821.04 -
receipts Ltd.-Jiangnan Branch
123
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
advance
SichuanWanyou Auto Sales and Service Co., Ltd. 12,009,148.26 29,643,350.65
receipts
advance
Yunnan Wanyou Auto Sales and Service Co., Ltd. 41,894,783.16 20,827,835.84
receipts
advance Guizhou Wanyou Auto Sales and Service Co.,
51,044,022.41 52,364,309.06
receipts Ltd.
advance Yunnan Xiangyu Auto Sales and Service Co.,
4,603,046.12 903,151.00
receipts Ltd.
advance Chongqing Wan Yu Long Rui auto sales Services
- 659.60
receipts Limited
advance
Hafei Motor Co., Ltd. - 670,500.00
receipts
Sub total 337,734,267.86 231,953,423.48
other
Changan Industries Group Co. Ltd. 889,253.09 4,332,918.10
payables
other
Chongqing Changan Construction Co., Ltd 3,308,822.63 4,758,608.70
payables
other Chongqing Changan Property Management Co.,
4,059,227.48 1,769,936.92
payables Ltd.
other China Changan Automobile Co., Ltd. – Shichuan
1,384,567.80 -
payables Jian'an Automobile Bridge Branch
other Chongqing Changan Min Sheng Logistics Co.,
209,260,149.48 449,568,366.16
payables Ltd.
other Guangxi Wanyou Auto Sales and Service Co.,
50,000.00 171,475.10
payables Ltd.
other
Hafei Motor Co., Ltd. 839,226.36 4,278,783.60
payables
other
Chongqing Anfu Automobile Marketing Co., Ltd. 100,000.00 -
payables
other Chongqing Wanyou Economic Development Co.,
117,726.12 100,000.00
payables Ltd
other Chongqing Changan Construction Engineering
157,284.00 1,784,288.00
payables Co., Ltd.
other
SichuanWanyou Auto Sales and Service Co., Ltd. 150,000.00 264,513.68
payables
other Yunnan Xiangyu Auto Sales and Service Co.,
104,000.00 549,012.40
payables Ltd.
other Guizhou Wanyou Auto Sales and Service Co., 154,000.00 249,898.80
124
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
payables Ltd.
other United Prosperity (Hongkong) Investment Co.,
- 332,188.10
payables Ltd
other Chongqing Fortune Supply Chain Management
- 315,740.00
payables Co., Ltd.
other
Chengdu Wanyou Filter Co., Ltd. - 120,000.00
payables
other Chongqing Changan Real Estate Development
- 81,192.78
payables Co., Ltd.
other Chengdu Wanyou Xiangyu Automobile Sales and
- 399,981.12
payables Service Co., Ltd
Subtotal 220,574,256.96 469,076,903.46
XIII、Share-based payments
1. General information
2017.6
The total amount of the employee services as a result of the share-based payments 139,527,600.00
The equity settled share based payments are as follows:
2017.6
The accumulated amount of equity settled share-based payments included in capital 38,908,400.00
reserve
The amount of equity settled share-based payments included in expense 25,192,500.00
2. Share-based payment scheme
On 23 September 2016, the share option was approved to be granted on 23 September 2016 by the 12th meeting
of the seventh session of the Board of Directors and the 8th meeting of the seventh session of Board of
Supervisors. According to the share option scheme, the Company granted 29,140,000 options to 202 employees,
conferring rights to purchase 1 A share of Changan Automobile for each option before the expiration date. Share
options are granted to directors, chief executive officers and key technical and management personnel.
The share option will expire in 5 years. After the vesting period of 24 month since the grant date, the option shall
be exercised in three periods. In each exercise period, 1/3 of the total options could be exercised when the
prescribed performance conditions are met. The exercise price is RMB14.12 per share. The options granted shall
be exercised before the expiration date. The share should not be exercised unless the prescribed conditions are met.
The exercisable shares not exercised in above periods will be written off by the Company. The company has
disclosed in June 1, 2017 "The 2016 annual notice of the implementation of equity distribution".According to the
company's stock option incentive plan (Revised Draft), the relevant provisions on the stock option price
adjustment, if dividends and capital reserve capitalization, stock dividends, stock split delivery, allotment,
issuance or reduced matters occur before the stock exercise,the stock option price should be adjusted. The exercise
price of the adjusted stock option is 13.478 yuan.
125
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
The performance indicators of the share option includes:
(1) Return on equity (ROE)
(2) Net profit growth rate attributable to owners
(3) Economic value added (EVA), and
(4) The ratio of prime operating revenue to operating revenue
The above net profit and ROE are based on net profit and weighted average net assets attributable to owners
deducting non-recurring gains and losses.
The exercise terms of share options:
Exercise Exercise
Exercise Time Exercise Terms
Period Ratio
2017 net profit growth rate based on 2015 average
growth rate ≥3.2%(growth amount equivalent to
The 1st trading day since 2 RMB10,182,000,000);
The 1 st
4 month after the grant date ROE≥15%
exercise 1/3 to the last trading day sinc The above indicators≥benchmark average, and ≥7
period e 36 month after the grant 5 quartile
date △EVA>0;
The ratio of prime operating revenue to operating
revenue≥95%
2018 net profit growth rate based on 2015 avera
ge growth rate ≥3.2%(growth amount equivalent t
o RMB10,507,000,000);
The 1st trading day since 3
ROE≥15%
The 2nd 6 month after the grant date
The above indicators≥benchmark average, and ≥7
exercise 1/3 to the last trading day sinc
5 quartile
period e 48 month after the grant
△EVA>0;
date
The ratio of prime operating revenue to operating
revenue≥95%
2019 net profit growth rate based on 2015 avera
ge growth rate ≥3.2%(growth amount equivalent t
o RMB10,844,000,000);
The 1st trading day since 4
ROE≥15%
The 3rd 8 month after the grant date
The above indicators≥benchmark average, and ≥7
exercise 1/3 to the last trading day sinc
5 quartile
period e 60 month after the grant
△EVA>0;
date
The ratio of prime operating revenue to operating
revenue≥95%
126
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
The fair value of share options granted amounted to RMB139,527,600, in which the Company recognized a share
option expense of RMB25,192,500.00 in June, 2017.
The fair value of the equity-settled share option is determined using Black-Scholes model based on the estimate in
accordance with the terms and conditions of the share options. The input variables are as follows:
Valuation factors 2016
Dividend rate (%) 0%
Expected volatility (%) 29.78%
Historical volatility (%) 29.78%
Risk-free rate (%) 2.4987%
Expected duration (year) 4
Share price as at the grant date (yuan) 15.43
The expected duration of the option is based on the historical data of the past, which is not necessarily reflected in
the exercise of the right in future. The expected volatility is based on the assumption that the historical volatility
reflects the future trend, but not necessarily the actual results.
XIV、Commitments and Contingencies
1、Significant commitments
Investment commitment
By June 30th 2017, the group has no investment commitment that has been signed but not yet fully fulfilled.
2、Contingencies
By June 30th 2017, the company has no significant contingencies that need to be published.
XV、Events after the balance sheet date
1、Significant non-adjusting events
□Applicable √not Applicable
2、Distribution of profit
□Applicable √not Applicable
3、Sales return
□Applicable √not Applicable
XVI、Other important events
127
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
1、Correction of accounting error of earlier stage
□Applicable √not Applicable
2、Debt restructuring
□Applicable √not Applicable
3、Asset replacement
□Applicable √not Applicable
4、Annuity plan
□Applicable √not Applicable
5、Discontinuing operation
□Applicable √not Applicable
6、Information on business branch
Identify business branch of the group according to internal organization structure, management requirements, internal reporting
rules, and identify the report and information disclosed of the brand based on the identified branch.
business branch refers to the component of the group that meets the following conditions:
(1) the component has income and expenditure incurred in routine activities;
(2) the management of the company regularly evaluates the operation performance of the component to decide the company’s
resource distribution and evaluate its overall performance
(3) The group receives related accounting information on the financial situation, operation performance and cash flow.
If two or more components have similar economic features and meet the conditions, they should be consolidated into one
branch.
Income and profit of the group consists of automobile manufacturing and domestic sales. Main asset of the group is in China.
The management of the group evaluates the performance of the group as a whole. Thus, report of the branch is not included in this
year’s report.
XVII、Notes to the main items of the parent company’s financial statements
1、Account Receivables
（1）Account Receivables
Ending Beginning
Items book balance provision for bad-debts book balance provision for bad-debts
amount (%) amount (%) amount (%) amount (%)
Individually significant
amount and account 89,613,600.77 1.69 - - - - - -
receivables of individually
128
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
provision for bad debts
Account receivables of provision for bad-debts calculated and extracted by groups
Group 1: account
receivables of provision
for bad-debts calculated 265,028,932.46 5.01 12,333,313.73 4.65 199,462,633.59 4.60 11,776,256.96 5.90
and extracted by aging
analysis
Group 2: Account
receivables for related 4,939,711,119.62 93.30 - - 4,141,200,393.15 95.40 - -
parties
Group subtotal 5,204,740,052.08 98.31 12,333,313.73 0.24 4,340,663,026.74 100.00 11,776,256.96 0.27
Not individually
significant amount but
other receivables of - - - - - - - -
individually provision
for bad debts
Total 5,294,353,652.85 100.00 12,333,313.73 0.23 4,340,663,026.74 100.00 11,776,256.96 0.27
Types of account receivables
Within groups, account receivables of provision for bad-debts are calculated and extracted by aging analysis
√Applicable □not Applicable
ending beginning
account
book balance provision for book balance provision for
receivable age
account (%) bad-debts account (%) bad-debts
within 1 year
Including -- -- -- -- -- --
0- 6 months 241,674,968.33 91.19 - 187,249,804.89 93.88 -
6 to 12 months 11,141,135.43 4.20 557,056.77 - - -
Within 1 year -
252,816,103.76 95.39 557,056.77 187,249,804.89 93.88
subtotal
1 to 2 years 42,444.52 0.02 4,244.45 42,444.52 0.02 4,244.45
2 to 3 years 26,216.67 0.01 7,865.00 26,216.67 0.01 7,865.00
3 to 4 years - - - - - -
4 to 5 years 1,900,100.00 0.72 1,520,080.00 1,900,100.00 0.95 1,520,080.00
Over 5 years 10,244,067.51 3.87 10,244,067.51 10,244,067.51 5.14 10,244,067.51
129
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Total 265,028,932.46 100.00 12,333,313.73 199,462,633.59 100.00 11,776,256.96
Within groups, account receivables of provision for bad-debts are calculated and extracted by balance percentage
□Applicable √Not applicable
（2）Top 5 amount in account receivables
Unit:Yuan
relationship with
proportion of total account
Companies Changan amount years
receivables (%)
Automobile
First subsidiary 2,300,765,929.53 Within 1 year 43.46
subsidiary
Second 920,430,583.46 17.39
Within 1 year
Third subsidiary 663,271,996.00 Within 1 year 12.53
Fourth subsidiary 378,913,752.15 Within 1 year 7.16
Fifth subsidiary 158,668,159.42 Within 1 year 3.00
Total -- 4,422,050,420.56 -- 83.52
（3）Account receivables of related parties
Unit:Yuan
Proportion of total
Relationship with the
Companies Amount account receivables
Company
(%)
Baoding Changan Bus Manufacturing Co., Ltd. subsidiary 158,668,159.42 3.00
Hebei Changan Automobile Co., Ltd. subsidiary 76,592,250.49 1.45
Nanjing Changan Automobile Co., Ltd. subsidiary 2,300,765,929.53 43.46
Hefei Changan Automobile Co., Ltd subsidiary 378,913,752.15 7.16
Chongqing Changan Vehicle Networking 663,271,996.00 12.53
subsidiary
Technology Co., Ltd.
Chongqing Changan International Automobile Sales
subsidiary 920,430,583.46 17.39
and Service Co., Ltd
Chongqing Changan Automobile Customer Service
subsidiary 70,947,372.12 1.34
Co., Ltd.
Chongqing Changan Special Automobile sales Co.,
subsidiary 16,616,199.77 0.31
Ltd
130
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Heilongjiang Changan Automobile Sales Co., Ltd. subsidiary 55,574,213.19 1.05
Changan PSA Automobile Co., Ltd joint venture 22,758,165.00 0.43
Changan Ford Automobile Co., Ltd joint venture 19,775,292.36 0.37
Harbin Dongan Automotive Engine Manufaturing controlled by the same parent
31,291,434.40 0.59
Co., Ltd. company
Jiangling Holding Co., Ltd joint venture 38,355,697.98 0.72
controlled by the same
Chongqing Changan Industries Group Co. Ltd 1,325,600.89 0.03
ultimate holding company
Chongqing Changan Kuayue Automobile Co., Ltd Associated Enterprise 81,126,789.26 1.53
Chongqing Changan Suzuki Automobile Co., Ltd joint venture 103,297,683.60 1.95
Total -- 4,939,711,119.62 93.30
2、Other receivables
（1）Other receivables
ending beginning
provision for provision for
Items book balance book balance
bad-debts bad-debts
Amount (%) Amount (%) Amount (%) Amount (%)
Individually significant
amount and account
341,231,000.00 31.60 - - 573,938,000.00 39.39 - -
receivables of individually
provision for bad debts
Account receivables of provision for bad-debts calculated and extracted by groups
Group 1: account receivables
of provision for bad-debts
362,010,754.10 33.52 1,066,022.99 0.29 105,367,648.00 7.23 995,559.54 0.94
calculated and extracted by
aging analysis
Group 2: Account receivables
of provision for bad-debts
376,536,954.87 34.87 - - 777,706,896.45 53.38 - -
calculated and extracted by
related parties
Group subtotal 738,547,708.97 68.39 1,066,022.99 0.14 883,074,544.45 60.61 995,559.54 0.11
no Individually significant
amount but other receivables
99,781.94 0.01 99,781.94 100 - - - -
of individually provision
for bad debts
131
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Total 1,079,878,490.91 100.00 1,165,804.93 0.11 1,457,012,544.45 100.00 995,559.54 0.07
Types of the account receivables
account receivables of provision for bad-debts are calculated and extracted by aging analysis
√Applicable □ not Applicable
ending beginning
account
book balance provision for book balance provision for
receivable Age
amount (%) bad-debts amount (%) bad-debts
Within 1 year
Among： -- -- -- -- -- --
0-6 months 356,389,690.03 98.45 - 102,631,260.66 97.40 -
6 to 12 months 4,030,619.61 1.11 201,530.98 908,083.19 0.86 45,404.16
Within 1 year
360,420,309.64 99.56 201,530.98 103,539,343.85 98.26 45,404.16
subtotal
1 to 2 years 690,593.68 0.19 69,059.37 798,497.37 0.76 79,849.74
2 to 3 years 149,168.77 0.04 44,750.63 227,858.77 0.22 68,357.63
3 to 4 years - - - - - -
4 to 5 years - - - - - -
Over 5 years 750,682.01 0.21 750,682.01 801,948.01 0.76 801,948.01
Total 362,010,754.10 100.00 1,066,022.99 105,367,648.00 100.00 995,559.54
Within groups, account receivables of provision for bad-debts are calculated and extracted by balance percentage.
□Applicable √not Applicable
（2）Other account receivables of related parties
Unit:Yuan
relationship with Changan Proportion of total account
Companies amount
Automobile receivables (%)
Changan Automobile Russia Co., Ltd. subsidiary 24,782,800.00 2.29
Nanjing Changan Automobile Co., Ltd. subsidiary 25,409,297.57 2.35
Chongqing Changan Suzuki Automobile Co., Ltd joint venture 40,784,896.53 3.78
Baoding Changan Bus Manufacturing Co., Ltd. subsidiary 100,000,000.00 9.26
Hefei Changan Automobile Co., Ltd subsidiary 99,185,225.23 9.18
Shanghai Changan Automotive Engineering and
subsidiary 15,500,000.00 1.44
Technology Co., Ltd.
132
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Chongqing Changan Kuayue Automobile Co., Ltd Associated Enterprise 70,874,735.54 6.56
Total -- 376,536,954.87 34.87
133
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
3、Long-term equity investment
Unit:Yuan
impair
Explanation for the
Share Voting ment
Accou difference between Impa
beginning proportion in proportion in provisi cash bonus in
Invested in nting capitalized cost increase/decrease ending amount shareholding irme
amount the company the company on in current period
method percentage and nt
invested (%) invested (%) current
voting percentage
period
1、Joint ventures
Chongqing Changan Suzuki
Equity 237,719,933.33 1,230,836,876.85 -19,611,249.14 1,211,225,627.71 50 50 None - -
Automobile Co., Ltd
Jiangling Holding Co., Ltd Equity 1,008,511,522.00 2,991,207,303.06 96,573,362.50 3,087,780,665.56 50 50 None - -
Changan Ford Automobile Equity
975,232,926.29 5,663,808,819.68 -1,363,174,006.73 4,300,634,812.95 50 50 None - - 4,458,000,000.00
Co., Ltd
Changan Mazda Automobile Equity
1,097,839,635.00 2,146,340,500.42 600,278,338.63 2,746,618,839.05 50 50 None - -
Co., Ltd
Changan Ford Mazda Engine Equity
786,734,634.10 908,715,700.67 55,447,236.74 964,162,937.41 50 50 None - -
Co., Ltd
Changan PSA Automobile Equity
2,007,841,700.00 647,839,655.26 -45,643,059.35 602,196,595.91 50 50 None
Co., Ltd
2、Associated Enterprises
Chongqing Xiyi Automobile Equity
7,600,027.62 7,556,448.42 127,449.67 7,683,898.09 40 40 None - -
Linkage Rod Co., Ltd
Chongqing Changan Kuayue Equity 61,800,885.00 83,406,464.16 6,419,549.33 89,826,013.49 34.3 34.3 None - -
134
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Automobile Co., Ltd
Chongqing Changan Kuayue Equity
1.00 - - - 34.3 34.3 None - -
Automobile Sales Co., Ltd
Beijing Fang’an taxi Co., Equity
6,000,000.00 - - - 20.7 20.7 None - -
Ltd
Chongqing Auto Finance Equity
1,155,000,000.00 1,063,655,241.51 43,201,357.02 1,106,856,598.53 35 35 None - -
Co., Ltd.
3、Subsidiaries
Cost minority shareholders
Nanjing Changan
422,183,259.00 422,533,259.00 - 422,533,259.00 84.73 91.53 authorize the company to - -
Automobile Co., Ltd
exercise voting right
Cost minority shareholders
Hebei Changan Automobile
438,573,236.00 438,223,236.00 - 438,223,236.00 94.22 95.62 authorize the company to - -
Co., Ltd
exercise voting right
Chongqing Changan Cost
International Automobile 13,068,581.00 13,068,580.00 1.00 13,068,581.00 100 100 None - -
Sales and Service Co., Ltd
Chongqing Changan Cost
Automobile Customer 29,700,000.00 29,700,000.00 - 29,700,000.00 99 99 None - -
Service Co., Ltd.
Chongqing Changan Vehicle Cost
Networking Technology Co., 88,500,000.00 88,500,000.00 - 88,500,000.00 100 100 None - -
Ltd.
Chongqing Changan Cost
3,600,000.00 5,600,000.00 -2,000,000.00 3,600,000.00 90-100.00 90-100.00 None - -
Automobile Sales Co., Ltd
Chongqing Changan Special Cost 2,500,000.00 2,500,000.00 - 2,500,000.00 50 50 None - -
135
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Automobile Sales Co., Ltd
Chongqing Changan Europe Cost
155,872,524.00 155,872,524.00 - 155,872,524.00 100 100 None - -
Design Center Co., Ltd
Chongqing Changan new Cost
18,850,000.00 18,850,000.00 - 18,850,000.00 65 65 None - -
Engergy Automobile Co. Ltd
Changan United Kingdom Cost
236,387,395.40 236,387,395.40 - 236,387,395.40 100 100 None - -
R&D Center Co., Ltd.
Beijing Changan Automotive Cost
engineering and Technology 1,000,000.00 1,000,000.00 - 1,000,000.00 100 100 None - -
Reseach Co., Ltd.
Harbin Changan Automotive Cost
Technology Reseach Co., 1,000,000.00 1,000,000.00 - 1,000,000.00 100 100 None - -
Ltd.
Shanghai Changan Cost
Automotive Engineering and 1,000,000.00 1,000,000.00 - 1,000,000.00 100 100 None - -
Technology Co., Ltd.
Changan Japan Design Cost
1,396,370.15 1,396,370.15 - 1,396,370.15 100 100 None - -
Center Co., Ltd.
Changan United States R&D Cost
10,243,460.00 1,317,720.00 8,925,740.00 10,243,460.00 100 100 None - -
Center Co., Ltd.
Baoding Changan Bus Cost
176,002,613.18 176,002,613.18 - 176,002,613.18 100 100 None - -
Manufacturing Co., Ltd.
Hefei Changan Automobile Cost
35,367,765.23 35,367,765.23 - 35,367,765.23 100 100 None - -
Co., Ltd
Changan Automobile Russia Cost
1,242,589.15 1,242,589.15 - 1,242,589.15 100 100 None - -
Co., Ltd.
136
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Changan Brazil Holding Co., Cost
2,584,556.97 2,584,556.97 2,584,556.97 100 100 None - -
Ltd
Shenzhen Changan New
Engergy Automobile Service Cost 50,000,000.00 50,000,000.00 - 50,000,000.00 100 100 None - -
Co. Ltd
Total -- 9,033,353,614.42 16,425,513,619.11 -619,455,280.33 15,806,058,338.78 - - 4,458,000,000.00
137
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
4、Operating revenue and cost
（1）Operating revenue
Items current amount prior-period amount
main business income 31,674,932,332.88 34,406,157,940.41
other business income 1,164,589,896.82 887,006,007.46
Total 32,839,522,229.70 35,293,163,947.87
operating cost 28,904,081,124.37 30,058,276,365.82
（2）Main business (classified by industries)
current amount prior-period amount
Industries
revenue cost revenue cost
Automobile manufacturing
31,674,932,332.88 28,528,331,081.30 34,406,157,940.41 29,588,612,268.30
industry
Total 31,674,932,332.88 28,528,331,081.30 34,406,157,940.41 29,588,612,268.30
（3）Main business (classified by products)
current amount prior-period amount
Products
revenue cost revenue cost
Sales of goods 31,601,267,068.68 28,416,569,899.88 34,325,368,530.76 29,502,999,466.12
Outsourcing processing 73,665,264.20 111,761,181.42 80,789,409.65 85,612,802.18
Total 31,674,932,332.88 28,528,331,081.30 34,406,157,940.41 29,588,612,268.30
（4）Revenue from top 5 customers
Unit:Yuan
customers total revenue proportion of total revenue (%)
First 845,261,790.62 2.57
Second 656,514,356.01 2.00
Third 554,273,011.32 1.69
Fourth 511,377,296.16 1.56
Fifth 480,050,338.68 1.46
Total 3,047,476,792.79 9.28
5、Investment income
（1）Details of investment income
Items current amount prior-period amount
Long-term equity investment income measured by cost
- -
method
138
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Long-term equity investment income measured by equity
3,831,618,978.64 5,204,376,269.98
method
investment income from long -term equity investment
-2,000,000.00 -
disposition
investment income from financial assets available for sale - 4,615,000.00
others 1,028,907.27 3,581,686.96
Total 3,830,647,885.91 5,212,572,956.94
（2）Long-term equity investment income measured by cost accounting method
None
（3）Long-term equity investment income measured by equity accounting method
invested in current amount prior-period amount
Changan Ford Automobile Co., Ltd. 3,094,825,993.27 4,565,590,447.59
Changan Mazda Automobile Co., Ltd. 600,278,338.63 475,489,615.75
Changan Suzuki Automobile Co., Ltd. -19,611,249.15 8,572,426.12
Changan Ford Mazda Engine Co., Ltd. 55,447,236.74 83,930,973.87
Jiangling Holding Co., Ltd 96,573,362.50 150,430,712.08
Chongqing Xiyi Automobile Linkage Rod
127,449.67 -9,644.73
Co., Ltd
Changan PSA Automobile Co., Ltd. -45,643,059.35 -39,866,555.46
Chongqing Changan Kuayue Automobile
6,419,549.31 2,861,788.93
Sales Co., Ltd.
Chongqing Auto Finance Co., Ltd. 43,201,357.02 -42,623,494.17
Total 3,831,618,978.64 5,204,376,269.98
6、Supplementary information of cash flow statement
Supplementary information Current amount Prior-period amount
1．Cash flow relating to operating activities calculated by adjusting -- --
the net profit
net profit 3,831,471,921.43 5,442,678,253.60
add: provision for assets impairment 133,639,836.86 134,683,832.36
Depreciation of fixed assets, oil and gas assets, productive biological 638,817,928.22 1,001,364,922.13
assets
amortization of intangible assets 267,263,626.81 220,418,638.59
amortization of long-term deferred expense - 90,040.00
Disposal loss/(income) on fixed assets, intangible assets and others
684,027.55 -2,131,570.26
long-term assets(with “-” for gains)
Loss on discarding of fixed assets(with “-” for gains) - -
Loss from fair value changes (with “-” for gains) - -
Financial expense(with “-” for gains) -256,888,513.32 -98,286,753.07
Investment loss(with “-” for gains) -3,830,647,885.91 -5,212,572,956.94
Decrease in deferred tax assets(with “-” for gains) -113,878,150.78 32,558,271.51
increase in deferred income tax assets (with "-" for decrease) - -
Decrease in inventory(with “-” for gains) -3,660,997,018.33 -2,025,268,737.26
decrease of operational receivables (with "-" for increase) 5,693,325,815.98 896,355,780.90
139
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
increase of operational payables (with "-" for decrease) 1,346,003,463.96 3,523,493,754.58
others - -
net cash flow from operating activities 4,048,795,052.47 3,913,383,476.14
2． major investment and financing activities involving no cash -- --
incomings / outgoings
3． net change in cash and cash equivalent -- --
ending balance of cash 25,409,019,964.44 20,438,337,541.18
Less: beginning balance of cash 22,326,566,084.67 17,223,403,333.90
Net increase in cash and cash equivalents 3,082,453,879.77 3,214,934,207.28
XVIII、Additional information
1、 Non-recurring profit and loss statement of current period
Items amount explanation
profit and loss of non-current assets disposition 8,914,486.07
government subsidies counted in current profit and loss (except the
government subsidies which are closely related with business events, and 1,153,834,905.86
given certain amount according to national standards)
net profit and loss of the subsidiary company merged by the same
controlling company from the beginning of report period to date of
merging. -
investment income from disposition of financial assets available for sale -
other non-business incomings and outgoings except above-mentioned
30,630,628.07
items
Interest on deferred payment of funds received from non - financial
16,835,480.06
enterprises
Less: amount influenced by income tax 66,312,801.29
amount influenced by minority shareholders’ interest (after tax) 80,118,406.33
Total 1,063,784,292.44 --
If the company identifies non-recurring profit and loss defined by Information Disclosure by Companies Offering Securities to the
Public No. 1--non-recurring profit and loss and non-recurring profit and loss defined by Information Disclosure by Companies
Offering Securities to the Public No. 1--non-recurring profit and loss as recurring profit and loss, explain the reasons.
□ applicable √ not applicable
2、Return on equity and earnings per share
Weighted average return Earnings per share
Profit in report period
on equity Basic EPS Diluted EPS
Net profit belonging to the Company’s common stockholders 10.42% 0.96 0.96
Net profit belonging to the Company’s common stockholders
8.02% 0.74 0.74
after deducting non-recurring profit and loss
3、Accounting data difference by domestic and foreign accouting standards
（1） Net profit and net asset differences from financial statements by global GAAC and prc GAAC
□ applicable √ not applicable
140
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
（2） Net profit and net asset differences from financial statements by GAAC abroad and PRC GAAP
□ applicable √ not applicable
（3）Description on accounting data differences by domestic and foreign accounting standards. If auditing
institutions abroad have adjusted the data differences, identify the name of the auditing institution abroad.
None
4、Others
□ applicable √ not applicable
141
Chongqing Changan Automobile Company Limited 2017 Semi-annual Report
Chapter 10 Documents for Future Reference
Catalogue of Reference Files
1、semi-annual report with signature of legal representative;
2、financial statements, with the signatures and seals of legal representative, person in charge of accounting, and
person in accounting agency;
3、BOD resolutions and written confirmation documents signed by board members and senior executives;
4、written auditing opinions in form of resolution by the Board of Supervisors;
5、All original copies of company documents and announcements disclosed in China Securities Journal, Securities
Time, and Hong Kong Commercial Daily in reporting period.
The company will provide the the abovementioned reference files timely when required by China Securities
Regulatory Commission and Shenzhen Stock Exchange, and required by shareholders according to law and corporate
regulations.
Chairman：Xu Liuping
Submit Date Approved by BOD: August 31, 2017
142
首页
微信公众号
证券之星APP
