Jiangling Motors Corporation, Ltd.
Chapter I Important Notes, Contents and Abbreviations
Important Note
The Board of Directors and its members, and the senior executives are jointly and
severally liable for the truthfulness, accuracy and completeness of the information
disclosed in the report and confirm that the information disclosed herein does not
contain any false statement, misrepresentation or major omission.
Chairman Qiu Tiangao, CFO Li Weihua and Chief of Finance Department, Hu
Hanfeng, confirm that the Financial Statements in this Annual Report are truthful
and complete.
All Directors were present at the Board meeting to review this Annual Report.
Future plans, development strategies and other forward-looking statements in this
report do not constitute a substantial commitment of the Company to investors.
Investors are advised to pay attention to investment risks.
The Company's possible risks and countermeasures are described in Section 3 of
this report, "Management Discussion and Analysis". Please investors pay attention
to the relevant content.
The Annual Report is prepared in Chinese and English. In case of discrepancy,
the Chinese version will prevail.
The year 2025 profit distribution proposal approved by the Board of Directors is as
follows:
A cash dividend of RMB 5.5581 (including tax) will be distributed for every 10
shares held based on the total share capital of 854,581,922 shares, and there is
no stock dividend. The Board decided not to convert capital reserve to share
capital this time.
Contents
Chapter IV Corporate Governance Structure Environment and Social..... 33
Catalogue on Documents for Reference
Financial Officer and Chief of Finance Department.
accountants and stamped by the accounting firm.
newspapers designated by CSRC in 2025.
Abbreviations:
CSRC China Securities Regulatory Commission
JMCG Jiangling Motors Group Co., Ltd.
Ford Ford Motor Company
JIC Nanchang Jiangling Investment Co., Ltd.
JMC or the Company Jiangling Motors Corporation, Ltd.
JMCH JMC Heavy Duty Vehicle Co., Ltd.
EVP Executive Vice President
CFO Chief Financial Officer
VP Vice President
Chapter II Brief Introduction and Operating Highlight
Share’s name Jiangling Motors, Jiangling B Share’s Code 000550, 200550
Place of listing Shenzhen Stock Exchange
Company’s Chinese
江铃汽车股份有限公司
name
English name Jiangling Motors Corporation, Ltd.
Abbreviation JMC
Company legal
Qiu Tiangao
representative
No. 2111, Yingbin Middle Avenue, Nanchang County,
Registered Address
Nanchang City, Jiangxi Province, P.R.C
Postal Code of
Registered Address
Due to the relocation of JMC’s Qingyunpu site, the original
registered address "No. 509, Northern Yingbin Avenue,
Changes of Registered
Nanchang City, Jiangxi Province" was changed to "No. 2111,
Address
Yingbin Middle Avenue, Nanchang County, Nanchang City,
Jiangxi Province" in October 2021.
No. 2111, Yingbin Middle Avenue, Nanchang County,
Headquarters Address
Nanchang City, Jiangxi Province, P.R.C
Postal Code of
Headquarters Address
Website http://www.jmc.com.cn
E-mail relations@jmc.com.cn
Board Secretary Securities Affairs Representative
Name Xu Lanfeng Quan Shi
No. 2111, Yingbin Middle Avenue, No. 2111, Yingbin Middle Avenue,
Address Nanchang County, Nanchang City, Nanchang County, Nanchang City,
Jiangxi Province, P.R.C Jiangxi Province, P.R.C
Tel 86-791-85266178 86-791-85266178
Fax 86-791-85232839 86-791-85232839
E-mail relations@jmc.com.cn relations@jmc.com.cn
Stock Exchange Website for
http://www.szse.cn
Publication of JMC’s Annual Report
China Securities, Securities Times, Hong Kong
Newspapers and Website for
Commercial Daily, cninfo
Publication of JMC’s Annual Report
(http://www.cninfo.com.cn)
Securities Department, Jiangling Motors
Place for Achieving Annual Report
Corporation, Ltd.
Unified social credit code 913600006124469438
Changes in the Main
No change.
Business since the Listing
On December 1, 1993, JMC A shares were listed on
Shenzhen Stock Exchange, while JMCG, the founder-
member, was the controlling shareholder of the Company. On
September 29, 1995 and November 12, 1998, JMC issued
additional 344 million B shares totally, while, after the
additional B share issuance, JMCG and Ford were the
controlling shareholders of the Company. On December 8,
former controlling shareholder, were transferred to Jiangling
Changes of Controlling
Motor Holdings Co., Ltd. After the transference, Jiangling
Shareholders
Motor Holdings Co., Ltd. and Ford were the controlling
shareholders of the Company.
In 2019, Jiangling Motor Holdings Co., Ltd., the former
controlling shareholder, was divided and separated into
Jangling Motor Holdings Co., Ltd. and Nanchang Jiangling
Investment Co., Ltd., and transferred the 354.176 million JMC
shares it held to Nanchang Jiangling Investment Co.,
Ltd. Presently, Nanchang Jiangling Investment Co., Ltd. and
Ford are the controlling shareholders of the Company.
Accounting Firm Appointed by JMC for Audit
Name Ernst & Young Hua Ming LLP
Room 01-12, 17th Floor, Ernst & Young Building, Oriental Plaza,
Headquarters Address
No. 1 East Chang'an Street, Dongcheng District, Beijing
Names of Signed
Qiao Chun, Yuan Yong
Accountants
The recommendation agency engaged by the Company executing the persistent
supervision responsibilities in the reporting period
□Applicable ?Not Applicable
The financial consultant engaged by the Company performing the duties of
persistent supervision and guidance in the reporting period
□Applicable ?Not Applicable
Unit: RMB
Change
(%)
Revenue 39,169,909,929 38,374,160,748 2.07% 33,167,325,081
Profit Attributable to the
Equity Holders of the 1,187,465,719 1,537,139,024 -22.75% 1,475,597,266
Company
Net Profit Attributable to
Shareholders of Listed
Company After Deducting 740,844,834 1,356,329,085 -45.38% 995,236,837
Non-Recurring Profit or
Loss
Net Cash Generated From
Operating Activities
Basic Earnings Per Share
(RMB)
Diluted Earnings Per
Share (RMB)
Weighted Average Return
on Equity Ratio
Change
End of Year 2025 End of Year 2024 End of Year 2023
(%)
Total Assets 33,725,291,097 30,839,912,640 9.36% 29,141,187,886
Shareholders’ Equity
Attributable to the Equity 11,700,238,217 11,292,579,854 3.61% 10,350,145,738
Holders of the Company
The lower of the Company’s net profit before and after deduction of non-recurring
gains and losses in the most recent three fiscal years is negative, and the audit
report of the most recent year shows that the Company’s ability to continue
operations is uncertain
□Yes ?No
The lower of the audited total profit, the audited net profit, and the audited net
profit after deducting non-recurring gains and losses is negative
□Yes ?No
I. Differences in net profit and net assets in financial statements between in
accordance with international accounting standards and Chinese accounting
standards
□Applicable ?Not Applicable
II. Differences in net profit and net assets in financial statements between in
accordance with overseas accounting standards and Chinese accounting
standards
□Applicable ?Not Applicable
Unit: RMB
Q1 Q2 Q3 Q4
Revenue 7,967,428,172 10,124,958,038 9,196,139,182 11,881,384,537
Profit Attributable to
the Equity Holders of 305,997,821 426,730,226 16,405,954 438,331,718
the Company
Net Profit Attributable
to Shareholders of
Listed Company After
Deducting Non-
Recurring Profit or
Loss
Net Cash Generated
From Operating -2,297,115,303 2,232,617,519 266,402,581 2,210,006,493
Activities
Whether the above mentioned financial indicators or the total number are
significantly different from the financial indicators related to the disclosed quarterly
and half-year reports of the Company
□Yes ?No
?Applicable □Not Applicable
Unit: RMB
Profit and loss of non-current assets disposal
(including the charge-off part of the asset impairment 59,557,455 665,549 -7,453,268
provision)
Government subsidies included in the current profit
and loss
In addition to the effective hedging business related to
the normal operating business of the Company,
holding the gains and losses of fair value changes 2,982,859 22,603,584 6,052,713
arising from trading financial assets and trading
financial liabilities, as well as the investment income
obtained from the disposal of trading financial assets,
trading financial liabilities and available for sale
financial assets
Capital occupation fee charged for non-financial
enterprises included in the current profit and loss
Return of the impairment provision for receivables
with a separate impairment test
Other non-operating income and expenses except the
above
Other profit and loss items that meet the definition of
-9,707,120 -2,060,316 -11,097,866
non-recurring profit and loss
Less: Income tax impact amount 79,541,777 33,377,674 89,195,274
Influence of minority shareholders' equity -2,870,761 -654,760 772,350
Total 446,620,885 180,809,939 480,360,429
Details of other profit and loss items that meet the definition of non-recurring profit
and loss
□Applicable ?Not Applicable
There is no other profit and loss items that meet the definition of non-recurring
profit and loss in the Company.
The description of that the non-recurring profit and loss items listed in Corporate
Information Disclosure of Public Issuing Securities No.1 are defined as recurring
profit and loss items
□Applicable ?Not Applicable
The Company does not have a situation in which the non-recurring profit and loss
items listed in No.1 of Corporate Information Disclosure Announcement No.1 are
defined as recurring profit and loss.
Chapter III Management Discussion and Analysis
During the reporting period, the Company's main business is the production and
sale of commercial vehicles, passenger vehicle SUVs and related components.
The main products include JMC light truck, Pickup, light bus, Ford-branded light
bus, MPV, Pickup and other commercial vehicle products, and passenger vehicle
SUV products. JMC also produces engines, frame, axle and components. The
Company takes high quality development as the main line, anchoring its strategy
around three core directions: intelligent connectivity, new energy, and global
expansion, focuses on value, lean operation, and transforms from scale expansion
development to lean value growth.
In 2025, JMC continued to increase its technological reserves and investment in
new products, intelligent connection network, new energy and lightweighting, and
strengthened its digital operation capability to realize the transformation of “four
online”, including “products online”, “customers online”, “processes online” and
“employees online”. Through digital technology, the Company improved
operational efficiency, optimized business processes and innovated business
models, and focused on customer-centered integration of the whole value chain.
Driven by innovation, we are transforming our marketing approach, continuously
optimizing channel structures and layouts to enhance synergistic efficiency.
Together with our distributors, we are forging a more integrated “united front”
model to accelerate market responsiveness. We are innovating our transport
capacity operations, focusing on scenario-based requirements to establish an
intelligent operational framework, while strengthening collaborations with logistics
enterprises to expand transport capacity partnerships, and gradually formed a
customer-centered commercial vehicle ecosystem to focus on the entire life cycle
of automobiles and provided customers with all-around solutions. JMC actively laid
out the RV business and off-road pickup and modified car market to create unique
products and lead the market trend; at the same time, the Company steadily
advanced the scenario-based implementation of intelligent driving technologies to
develop industry-leading autonomous driving solutions. JMC strengthened export
cooperation and synergy, seized globalisation opportunities, optimised resource
allocation across products, channels and after-sales services, and continuously
forged new drivers for the Company's development.
In 2025, JMC planned the productivity of 320 thousand units and the utilization rate
was 118%.
Vehicle manufacturing and operation
?Applicable □Not Applicable
Production and Sales Volume Information
Production Volume (Unit) Sales Volume (Unit)
YOY YOY
(%) (%)
By Products
Light Bus 101,228 87,542 15.63% 99,770 87,310 14.27%
Truck 82,619 65,352 26.42% 83,207 61,932 34.35%
Pickup 59,224 72,579 -18.40% 59,681 73,242 -18.52%
SUV 135,267 119,368 13.32% 134,595 118,724 13.37%
Total 378,338 344,841 9.71% 377,253 341,208 10.56%
By Region
China 378,338 344,841 9.71% 377,253 341,208 10.56%
Reasons for the year-on-year change of more than 30%
?Applicable □Not Applicable
The 34.35% year-on-year increase in Truck sales was mainly due to the increase
in overseas sales.
Component Kit System Construction
JMC owns in-house R&D and manufacturing capability for key components, with
such important components as engine, body parts, frame, and front axle, etc.
developed and manufactured independently. For some other key components,
JMC keeps strategic cooperation with industry leading suppliers, e.g. Bosch,
Baosteel, Garrett, ZF, Magna, Autoliv, and Dicastal. JMC has established deep
cooperation with such leading enterprises as CATL, FinDreams Battery, Sunwoda
and CALB on new energy development. For smart connectivity, JMC conducted
diversified cooperation with such giants as Hengrun, Baidu, Desay SV, Momenta,
and ThunderSoft, etc. for ecology development. With the vision of achieving
customer success, JMC cooperates with suppliers to create a customer-centered
vehicle experience and strives to build a sustainable agile supply system. Through
innovative thinking and digitalization, JMC has established a complete supplier
access, capability improvement and supplier control mechanism from the
perspectives of technology, quality, cost, delivery and service, thus effectively
promoting the competitiveness of the supply system.
Production and operation of auto parts during the reporting period
□Applicable ?Not Applicable
The Company carries out auto finance business
□Applicable ?Not Applicable
The Company carries out new energy vehicle related business
?Applicable □Not Applicable
Production and operation of new energy vehicles and parts
Production Sales Volume Revenue
Product Category Capacity (Unit)
Volume (Unit) (Unit) (RMB)
New Energy
Commercial 80,000 32,373 32,557 2,404,457,109
Vehicles
New Energy
Passenger Vehicles
Note: all new energy
Total vehicles are collinear 37,304 35,806 2,958,099,607
with corresponding
fuel vehicles.
During the reporting period of 2025, the automotive industry withstood external
pressures such as trade protectionism and the restructuring of global industrial
chains. It overcame multiple challenges including technological breakthroughs and
industry-wide competition, demonstrating formidable resilience and vitality in its
development. This resulted in a dual enhancement of both industrial scale and
development quality. Annual automobile production and sales totalled 34.53 million
units and 34.40 million units respectively, representing year-on-year increases of
position as the world's largest automotive market. In 2025, policies supporting new
economic entities and new social organisations were intensified and expanded,
ensuring a smooth transition and orderly integration. With enterprises launching
new products in rapid succession and sustained growth in end-user demand,
annual automobile production and sales achieved growth exceeding expectations.
Among these, the passenger vehicle market, as a core component of automotive
consumption, has demonstrated steady growth, effectively driving the overall
expansion of the automotive sector. The commercial vehicle market has shown
signs of recovery and improvement, with production and sales returning to levels
exceeding 4 million units. Passenger vehicle production and sales reached 30.27
million units and 30.10 million units respectively, representing year-on-year
increases of 10.2% and 9.2%. All major passenger vehicle segments maintained
growth. By 2025, the commercial vehicle market exhibited a dual growth trend in
both domestic demand and exports. Driven by robust policies for new energy and
new business models, the penetration rate of new energy commercial vehicles has
surged rapidly. Coupled with sustained export growth, China's commercial vehicle
market has achieved a recovery and structural expansion. Throughout the year,
commercial vehicle production and sales reached 4.261 million units and 4.296
million units respectively, representing year-on-year increases of 12% and 10.9%.
Among the principal commercial vehicle categories, both production and sales of
bus and truck increased year-on-year compared with the same period last year.
Within the main truck segments, production and sales of heavy truck and light truck
rose, while those of medium truck and micro truck declined. Within the main bus
segments, sales of large, medium and light bus all grew, with light bus recording a
higher growth rate than the others. In 2025, total vehicle exports reached 7.098
million units, representing a year-on-year increase of 21.1%. Of this total,
passenger vehicle exports amounted to 6.038 million units, rising by 21.9%,
commercial vehicle exports reached 1.06 million units, rising by 17.2%. By
category, exports of conventional fuel vehicles reached 4.483 million units, a 2%
year-on-year decrease, while new energy vehicle exports amounted to 2.615
million units, a 103.7% year-on-year increase. In 2025, production and sales of
new energy vehicles reached 16.626 million units and 16.49 million units
respectively, representing year-on-year growth of 29% and 28.2%. New energy
vehicle sales accounted for 47.9% of total new vehicle sales, an increase of 7
percent points compared with the same period last year. Among the principal
categories of new energy vehicles, production and sales across all types recorded
double-digit growth compared with the previous year.
The Company is a modern Sino-foreign joint venture that integrates automobile
research and development, manufacturing and sales. It is a pioneer in the Chinese
auto industry that provides excellent products and solutions for the intelligent
logistics field by relying on the market leadership and advanced technology of light
commercial vehicles. It owns the titles of National High-tech Enterprise, National
Innovation Pilot Enterprise, National Enterprise Technology Center, National
Industrial Design Center, National Intellectual Property Demonstration Enterprise,
and National Vehicle Export Base. It has been ranking among the top 100 most
valuable automobile brands in the world for many consecutive years. In 2025, JMC
light bus ranked No.1 in the segment, Pickup ranked No.2 in the segment, and
light truck ranked No.7 in the segment. Jiangling Ford Automobile Technology
(Shanghai) Co., Ltd. achieved sales of 29,793 units in 2025, with the Bronco and
Ranger models both securing the top annual market share position in their
respective segments. JMC export sales have made sustained growth, with sales
of 160 thousand units, a year-on-year increase of 38.4%.
The Company has always adhered to a customer-centric approach, has been a
full scenario solution provider for light commercial vehicles. The Company
providing customized and scalable integrated solutions based on customer usage
scenarios. JMC light bus has an insight into customers’ needs and the light bus
operation scenarios, and has launched high-quality, excellent and cost-effective
light bus product portfolios, achieving the full coverage of scenarios like freight,
and passenger transport. At the same time, it also continues to hold the first place
in the market in light passenger conversion scenarios such as traveling, camping,
services and ambulance. JMC Light Trucks has launched its new E shunda small
light truck (3.5 T) and E shunda small light truck (4.5T) based on in-depth customer
insights, significantly expanding the Company's new energy truck application
scenarios. The Company has released a new generation of Shunda products
featuring a new cab and a new Blue Flame engine, further enhancing vehicle
comfort and fuel efficiency to better serve urban distribution customers. In 2025,
JMC Pickup completed the iteration of its two product series, launching the all-new
Baodian and the all-new Yuhu. The all-new Baodian achieved a revolutionary
upgrade in wealth-creation tool pickups with its exceptional durability, outstanding
fuel efficiency, superior loading capacity, and great convenience. Meanwhile, the
all-new Yuhu delivers value enhancements for upgrading users, offering excellent
appearance, superb drivability, and remarkable ease of use. At the same time, the
DaDao pickup series introduced a mountain version with a flat-bottom cargo box,
further refining product offerings for specific scenarios based on the Off-road
Edition and Extreme cold edition, solidifying its brand positioning as "China's
Pickup Expert in All Scenarios." JMC Pickup's three major product series continue
to be refreshed, forming a product matrix covering the full price range of the pickup
market, while continuously improving coverage of segmented scenarios and
enhancing the customer experience.
The Company adheres to the dual-brand strategy of Self-owned and Ford, giving
full play to its own advantages while deeply integrating Ford's global system. In
terms of technology research and development, with the help of Ford's global
platform, the Company has gradually formed the core competitiveness of
independent research and development, established an independent research and
development system, built an advanced global digital design platform, and jointly
develops, designs and launches specific new products with Ford. The Company
has been an industry-leading technology center and industrial design center.
In terms of brand ecosystem, the Ford brand has created a unique "Ford Beyond"
lifestyle system, covering four key areas: " Z-Horizon Experience Hub”, "Z-Horizon
Tribe", "Z-Horizon Accessories for Retrofitting", and "Z-Horizon Service". This
system fosters a lifestyle centered on outdoor leisure, exploration, off-road
adventures, and outdoor fun, providing users with a "full-scenario outdoor
experience." It empowers users to navigate diverse life scenarios, offering reliable
support and driving enjoyment whether on wilderness expeditions or urban
commutes.
In terms of brand channels, the Company's commercial vehicle segment currently
has 368 authorized first-tier distributors and over 1,200 registered secondary
networks and has established a modern marketing system through the four-in-one
franchise model of sales, accessories, service and information. At the same time,
the Ford Beyond Space has formed a three-center model consisting of brand
centers, order centers, and maintenance centers.
In terms of product launches, the first all-terrain camping SUV—the Ford Bronco
Basecamp—made its global debut at the 2025 Chengdu International Auto Show
and officially announced its market launch in Nanchang in December. The Ford
Bronco Basecamp is built on the "Ford Fun Domain" native intelligent new energy
technology architecture, representing a perfect integration of Ford's century-long
professional technical heritage with China's leading intelligent new energy vehicle
industry chain. It breaks down scenario boundaries, providing a new generation of
users with an ultimate "all-scenario, all-weather, all-terrain" solution, transforming
vehicles from mere modes of transportation into empowering tools for exciting
outdoor lifestyles. The domestically produced Ford Bronco, a pure-blood hardcore
off-road vehicle, has maintained the top market share in the mid-size traditional
fuel SUV segment priced above RMB 300,000. In March 2025, the Desert Runner
Limited Edition was officially launched, elevating the overall positioning of the
Bronco family. Following that, the Ford Bronco 1966 Special Edition made its debut
at the Shanghai International Auto Show in April and officially hit the market in
September, highlighting the Bronco brand's historical heritage and retro trend
appeal. The Ford Bronco family fully embodies diverse charms ranging from
ultimate performance to ultimate freedom and ultimate style, interpreting the off-
road attitude of "Play Unconstrained, Go Wild" with strength. Additionally, the
Company has established a comprehensive product matrix for Ford Ranger across
three series—XLS, XLT, Wildtrak, and FX4—along with multiple versions, to better
meet customer demand for premium, passenger-oriented, and intelligent features.
In terms of manufacturing management, the Company has vehicle production
bases such as Xiaolan Plant and Fushan Plant, covering stamping, welding,
painting, diesel engines, gasoline engines and other advanced manufacturing
technology, to create a highly intelligent, highly flexible smart manufacturing center,
it is a demonstration enterprise for the integration of informatization and
industrialization in Jiangxi Province.
In terms of autonomous driving, the Company deepening the commercialisation of
L4-level autonomous freight vehicles, focusing on the development and operation
of autonomous driving for urban freight scenarios, by advancing the full-stack in-
house development of the iDEA architecture and end-to-end intelligent driving
algorithms, integrating central computing architecture, cockpit-driving integration,
and full-scenario intelligent driving technologies, the Company promotes the
transformation of its entire commercial vehicle product line into intelligent mobile
terminals.
In terms of new energy, adhering to the strategic plan of "striving for progress while
maintaining stability," the Company strengthens market development, accelerates
the layout of electrified products, and makes every effort to increase the production
and sales of new energy vehicles. In the passenger vehicle segment, it globally
launched the Ford all-terrain camping SUV—the Bronco Basecamp—providing
users with an "all-scenario, all-weather, all-terrain" solution. In the commercial
vehicle segment, it commenced production of the E-Fushun, E-Shunda, and
heavy-duty wide-body high-capacity electric light truck models, optimizing the new
energy product lineup for commercial vehicles. With larger loading space, stronger
hauling capacity, and lower usage costs, these models effectively address
customer pain points.
In terms of export business, the all-new second-generation Ford Equator sport
model has been launched, featuring both traditional gasoline-powered models and
a new hybrid variant. These models are available in the Middle East, Africa, Latin
America, the Philippines, and countries in the Indochina Peninsula. The Equator
sport is currently popular in many countries (regions) worldwide, thanks not only
to its diversified market expansion strategy but also to its exceptional product
quality.
I. Summary
During the reporting period, in response to intensifying market competition, stricter
regulations and rising costs, the Company focused on quality enhancement, new
product development, cost control and efficiency optimisation, while implementing
multiple marketing measures to mitigate market risks. In 2025, JMC achieved sales
volume of 377,253 units, including 99,770 light buses, 83,207 trucks, 59,681
Pickups and 134,595 SUVs, with a year-on-year increase of 10.56%. In 2025, the
total production volume was 378,338 units, including 101,228 light buses, 82,619
trucks, 59,224 Pickups and 135,267 SUVs, with a year-on-year increase of 9.71%.
In 2025, the operation revenue reached RMB 39,170 million, up 2.07% year-on-
year. The operation cost was RMB 33,852 million, up 2.73% year-on-year. The
marketing expense was RMB 9,000 million, down 15.04% year-on-year. The
administration expense was RMB 1,050 million, up 11.29% year-on-year. The R&D
cost was RMB 1,216 million, down 7.5% year-on-year. The financial expense was
RMB -132 million, up 13.27% year-on-year.
II. Revenue and Cost
(a) Composition of Sales Revenue
Unit: RMB
Proportion Proportion change
Amount Amount
(%) (%) (%)
Revenue 39,169,909,929 100% 38,374,160,748 100% 2.07%
By Industry
Automobile Industry 39,169,909,929 100% 38,374,160,748 100% 2.07%
By Products
Vehicle 35,956,461,939 91.80% 35,289,807,942 91.96% 1.89%
Material and
Components
Maintenance, technical
services and other
By Region
China 39,169,909,929 100% 38,374,160,748 100% 2.07%
Sales model
Distribution 37,107,261,155 94.73% 36,035,440,181 93.91% 2.97%
Direct selling 2,062,648,774 5.27% 2,338,720,567 6.09% -11.80%
(b) Reach 10% of Revenue or Profit by Industry, Product, Region or Sales Model
?Applicable □Not Applicable
Unit: RMB
YOY YOY gross
YOY Cost
Gross turnover margin
Turnover Cost Change
Margin change change
(%)
(%) (points)
By Industry
Automobile
Industry
By Products
Vehicle 35,956,461,939 31,683,911,528 11.88% 1.89% 3.38% -1.27%
By Region
China 39,169,909,929 33,851,518,907 13.58% 2.07% 2.73% -0.55%
If the Company’s core business scope is adjusted during the reporting period, the
Company’s core business data of last year need to be adjusted per the scope in
this year
□Applicable ?Not Applicable
(c) Whether the Company’s Goods Revenue Higher Than Service Revenue
?Yes □No
Industry Item Unit 2025 2024 Change (%)
Sales Volume unit 377,253 341,208 10.56%
Automobile Production Volume unit 378,338 344,841 9.71%
Inventory Volume unit 6,152 5,240 17.40%
Explanation on YOY change of over 30%
□Applicable ?Not Applicable
(d) Execution of the Company’s Signed Major Sales Contracts and Major
Purchase Contracts as of the Reporting Period
□Applicable ?Not Applicable
(e) Composition of Operating Cost
Product categories
Unit: RMB
Item 2025 FY 2024 FY YOY
Product Proportion Proportion Change
Cost Cost
(%) (%) (%)
Vehicle Cost 31,683,911,528 93.60% 30,646,951,970 93% 3.38%
Material and
Cost 1,472,902,846 4.35% 1,917,222,493 5.82% -23.18%
Components
Maintenance, technical
Cost 694,704,533 2.05% 387,570,681 1.18% 79.25%
services and other
(f) Whether the Consolidated Scope was Changed During the Reporting Period
□Yes ?No
(g) Major Change or Adjustment on Business, Products or Services During the
Reporting Period
□Applicable ?Not Applicable
(h) Main Customers and Suppliers
Main Customers
Total sales value to top 5 customers（RMB） 16,540,498,902
Accounted for the proportion of JMC’s total annual turnover 42.22%
Included related party transaction accounted for the
proportion of JMC’s total annual turnover
Top 5 Customers
Percentage of
Sales Value
No. Name of the Customer JMC’s Total
(RMB)
Turnover (%)
Zhenjiang Suzhong Jiangling Automotive
Sales Service Co., Ltd.
Shanghai Keda Xuzhou Automotive Sales &
Service Co., Ltd.
Total 16,540,498,902 42.22%
Other introduction to main customers
?Applicable □Not Applicable
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. and Ford Global Technologies, LLC
are related parties of the Company.
Main Suppliers:
Total purchase value from top 5 suppliers (RMB) 4,922,723,925
Accounted for the proportion of JMC’s total annual purchase
amount
Included related party transaction accounted for the proportion of
JMC’s total annual purchase amount
Top 5 Suppliers:
Percentage of
Purchase JMC’s Total
No. Name of the Supplier
Value (RMB) Annual Purchase
Amount (%)
Jiangxi Jiangling Qin Chuan Electrical
Co., Ltd.
Jiangxi Jiangling Lear Interior System
Co., Ltd.
Jiangxi Zhonglian Intelligent Logistics
Co., Ltd.
Total 4,922,723,925 16.24%
Other introduction to main suppliers
?Applicable □Not Applicable
Magna PT Powertrain (Jiangxi) Co., Ltd., Jiangxi Jiangling Chassis Co., Ltd.
Jiangxi Jiangling Lear Interior System Co., Ltd. and Jiangxi Zhonglian Intelligent
Logistics Co., Ltd. are related parties of the Company.
During the reporting period, the Company's trading business revenue accounted
for more than 10% of its total operating revenue.
□Applicable ?Not Applicable
III. Expense
Unit: RMB
Distribution Expenses 899,660,536 1,058,948,593 -15.04%
Administrative Expenses 1,050,129,082 943,622,568 11.29%
Finance Income-net -132,096,412 -152,310,137 13.27%
R & D Expenses 1,216,003,539 1,314,579,423 -7.50%
IV. Research & Development
Name of main
Project purpose Project progress Goals to be achieved
R&D project
All-new electric Increase the
Enhance the competitiveness of
platform SUV Product was launched Company's operating
passenger vehicle products
project revenue
All-new electric Enhance the competitiveness of Increase the
It will be launched in the
platform Van Van products in overseas Company's operating
third quarter of 2026.
export project markets. revenue
All-new electric Enhance the competitiveness of Increase the
It will be launched in the
platform Bus light bus products in domestic Company's operating
fourth quarter of 2026
project markets. revenue
Increase the
Dadao Pickup Enhance the competitiveness of It will be launched in the
Company's operating
Facelift domestic pickups first quarter of 2026.
revenue
E-Luda Wide-
Enhance the competitiveness of
Body Large Increase the
wide-body large battery capacity Launched at the
Battery Company's operating
light truck products in the beginning of 2026.
Capacity revenue
domestic market.
Product Project
Increase the
Ford Pickup Enhance the competitiveness of It will be launched in the
Company's operating
Facelift domestic pickups fourth quarter of 2026.
revenue
Company R & D personnel
R&D staff (person) 2,684 2,628 2.13%
R&D staff as % of total employees 23.96% 22.75% 1.21%
Educational structure of R&D personnel
Undergraduate 1,846 1,850 -0.22%
Master 706 639 10.49%
Age composition of R&D personnel
Under the age of 30 years old 539 586 -8.02%
R&D Investment
R&D investment (RMB) 1,490,447,935 1,699,761,123 -12.31%
R&D investment as % of revenue 3.81% 4.43% -0.62%
Capitalization of R&D investment 274,444,396 385,181,700 -28.75%
Capitalization of R&D investment as % of
R&D investment
Causes and impacts of major changes in the composition of R&D personnel
□Applicable ?Not Applicable
Reason for the substantial change of R&D investment as % of revenue
□Applicable ?Not Applicable
Reason and rationality of the substantial change in the capitalization rate of R &
D investment
□Applicable ?Not Applicable
V. Cash Flow Analysis
Unit: RMB
Change
Item 2025 2024
(%)
Cash received from operating activities 41,357,728,740 41,944,318,317 -1.40%
Cash outflows from operating activities 38,945,817,450 39,310,934,100 -0.93%
Net cash flows generated from operating
activities
Cash received from investing activities 266,597,930 1,055,877,570 -74.75%
Cash outflows from investing activities 1,944,020,940 2,415,222,271 -19.51%
Net cash flows used in investing
-1,677,423,010 -1,359,344,701 23.40%
activities
Cash received from financing activities 5,631,691,686 3,078,140,000 82.96%
Cash outflows from financing activities 5,350,201,775 3,623,522,122 47.65%
Net cash flows generated from/(used in)
financing activities
Net increase in cash and cash
equivalents
Explanation on the major factors regarding major change of related data
?Applicable □Not Applicable
The change in net cash flows generated from/(used in) financing activities is mainly
due to the cash capital increase received by subsidiaries from minority
shareholders this year.
The change in the net increase in cash and cash equivalents is primarily attributed
to the increase in net cash flows from financing activities.
Explanation on significant difference between net cash generated from operating
activities and net profit during the reporting period.
□Applicable ?Not Applicable
□Applicable ?Not Applicable
I. Major changes
Unit: RMB
YOY
End of 2025 Beginning of 2025 Proportion
Asset item
change
Amount Proportion Amount Proportion (Points)
Cash and cash
equivalents
Accounts
receivables
Inventories 2,011,925,708 5.97% 2,054,517,242 6.66% -0.69%
Long-term equity
investments
Fixed assets 5,789,423,822 17.17% 5,749,474,005 18.64% -1.47%
Construction in
progress
Right-of-use
assets
Short-term
borrowings
Contract
liabilities
Long-term
borrowings
Lease liabilities 44,860,116 0.13% 93,752,634 0.30% -0.17%
Foreign assets account for a relatively high proportion
□Applicable ?Not Applicable
II. The fair value of the assets and liabilities.
Unit: RMB
Subtotal of
financial held for trading Derivative Financing Financial
Item financial Subtotal
assets (excluding derivative financial receivables liabilities
assets
financial assets) assets
Beginning of the
period 12,612,380 12,612,380 302,065,502 314,677,882 0
Loss/profit in fair -
value in the period 1,902,466 12,612,380 -10,709,914 -10,709,914
Cumulative
changes in fair
value recorded
into equity
Impairment in the
period
Purchase in the
period 855,000,000 855,000,000 9,778,144,252 10,633,144,252
Sell in the period 55,000,000 55,000,000 9,874,358,163 9,929,358,163
Other changes
End of the period 801,902,466 801,902,466 205,851,591 1,007,754,057 0
Other change
None.
Whether there is a significant change in the measurement attributes of the
Company's main assets during the reporting period
□Applicable ?Not Applicable
III. Restriction on Assets Rights as of the End of the Reporting Period
Units: RMB
Book value at the
Items Cause for restriction
end of the period
frozen funds for
Cash and cash equivalents 27,137,724
litigation.
I. Summary
□Applicable ?Not Applicable
II. Obtained Major Equity Investment during the Reporting Period
□Applicable ?Not Applicable
III. Ongoing Major Non-Equity Investment during the Reporting Period
□Applicable ?Not Applicable
IV. Financial Assets Investment
(a) Stock Investment
□Applicable ?Not Applicable
There was no financial assets investment during the reporting period.
(b) Derivative Investment
?Applicable □Not Applicable
(1) Derivative investments for hedging purposes during the reporting period
?Applicable □Not Applicable
Units: RMB’000
Foreign
Exchange -
Types of Derivatives Investments Total
Forward
Purchase
Initial investment amount 470,390 470,390
Amount at the beginning of the year 470,390 470,390
Gains and losses on fair value changes during the
-9,310 -9,310
period
Cumulative fair value changes recognized in equity 820 820
Amount acquired during the reporting period 130,980 130,980
Amount sold during the reporting period 485,520 485,520
Amount at the end of the year 115,850 115,850
Proportion of the investment amount at the end of
the period to the Company's net assets at the end 0.99% 0.99%
of the reporting period
Statement on whether there were
significant changes of the
No.
accounting policies and specific
principles of accounting applied
to hedging activities during the
reporting period as well as
compared with the previous
reporting period
Explanation of actual gains and The actual trading profit during the reporting
losses during the reporting period period was RMB 10.13 million.
JMC forward business adheres to the principle of
risk neutrality and is based on normal production
Description of hedging effects and operation, with the main purpose of
maintaining financial stability and avoiding the risk
of exchange rate fluctuations.
Sources of funds for derivatives
Self-owned funds.
investments
Risk analysis:
fluctuations, losses may arise from the deviation of
the exchange rate of the forward contract from the
market spot rate on the maturity date of the
contract;
forecasts that the delivery date signed by the
forward is inconsistent with the actual delivery
date, resulting in insufficient funds available for
use at the time of delivery, which triggers the risk
of fund liquidity and leads to failure to deliver as
Risk analysis and description of
scheduled;
control measures for derivative
positions during the reporting
the delivery date signed by the forward is not
period (including but not limited
consistent with the actual delivery period, resulting
to market risk, liquidity risk, credit
in the risk of delayed delivery caused by the
risk, operational risk, legal risk,
forward foreign exchange transactions cannot be
etc.)
delivered according to the agreed time;
imperfect internal control mechanism and
improper operation mode of operators;
insufficient completeness of contract terms or
disputes over jurisdictional terms.
Risk control measures:
exchange transactions based on scientific
forecasts of forward foreign exchange demand in
accordance with its business plan to meet
operational needs, to avoid and prevent the impact
of exchange rate fluctuations on the Company,
and does not engage in speculative transactions;
guarantee issues arising from foreign exchange
derivative transactions, the business execution
department of the Company will establish a
tracking mechanism to implement tracking
management of the progress of business receipts
and payments to effectively prevent the risk of
default on delivery and ensure that potential
losses are controlled within the minimum scope;
knowledge, the Company will enhance the
comprehensive business quality of relevant
personnel and improve the ability to identify and
prevent risks;
Exchange Risk Control Process, and the
operators strictly follow the requirements of the
system;
legitimate qualifications, good credit and long-term
business relations with the Company as
counterparties for forward foreign exchange
transactions, with low risk of default.
The Company recognizes and measures the fair
Disclosure of changes in the
value in accordance with Chapter 7 “Measurement
market prices or fair value of
of Financial Instruments” of “Accounting Standard
derivative instruments held
for Business Enterprises No. 22 - Recognition and
during the reporting period. The
Measurement of Financial Instruments”, and the
analysis of the fair value of
fair value is basically determined by reference to
derivatives shall disclose the
the bank's pricing for the purpose of fair value
specific valuation methods
measurement and recognition. During the
applied, as well as the underlying
reporting period, the gain or loss on fair value
assumptions and parameters
changes of foreign exchange forward contracts
used.
amounted to RMB -9.31 million.
Litigation status No.
Date of disclosure of the Board
announcement on derivative March 9, 2025
investment approval
(2) Derivative investments for speculative purposes during the reporting period
□Applicable ?Not Applicable
During the reporting period, the Company did not engage in any derivative
investments for speculative purposes.
I. Sale of Major Assets
□Applicable ?Not Applicable
II. Sales of Major Equity
□Applicable ?Not Applicable
?Applicable □Not Applicable
Main Subsidiaries and the Joint-Stock Companies whose operating results
impact on JMC’s net profit more than 10%
Unit: RMB’000
Jiangling Ford Shenzhen Fujiang
Jiangling Motors
Name of JMC Heavy Duty Automobile New Energy
Sales Corporation,
companies Vehicle Co., Ltd. Technology Automobile Sales
Ltd
(Shanghai) Co., Ltd. Co., Ltd.
Type of Whole-owned Whole-owned Whole-owned
Holding subsidiary
companies subsidiary subsidiary subsidiary
Engineering and Automotive sales, car
technology research rental, and other
Production and sales
and experimental related services.
Main Sales of vehicles of automobiles,
development, sales of
business and service parts. engines and other
vehicles, new energy
automotive parts
vehicles, auto parts,
etc.
Registered
capital
Assets 6,556,819.10 340,728.90 445,678.80 1,225,560.20
Net assets 176,889.70 306,516.80 -628,979.20 -262,724.60
Turnover 20,062,985.90 2,098.60 2,389,854.80 319,489.10
Operating
-102,620.00 -29,816.10 -58,075.10 -188,862.40
profit
Net profit 24,100.00 -29,244.90 -751,210.20 -188,053.90
Acquisition and disposal of the subsidiaries
□Applicable ?Not Applicable
Description of the main holding and participating companies
The changes in various data of Jiangling Ford Automotive Technology (Shanghai)
Co., Ltd. are mainly due to the impact of the business adjustments of Jiangling
Ford Automotive Technology (Shanghai) Co., Ltd.
□Applicable ?Not Applicable
I Industry Development
Driven by the sustained vitality of macroeconomic policies, the steady emergence
of the "Two New" policy effects, and the continuous expansion of overseas market
capacity, China's automotive market is expected to maintain a stable growth
trajectory in 2026. Total sales are projected to reach 34.75 million vehicles,
representing a year-on-year increase of 1.0%. Among these, passenger vehicle
sales are forecasted to reach 30.25 million units, up 0.5% year-on-year, while
commercial vehicle sales are expected to hit 4.5 million units, reflecting a year-on-
year growth of 4.7%. New energy vehicles will continue to experience rapid growth,
with annual sales anticipated to reach 19 million units, achieving a year-on-year
increase of 15.2%. Regarding automotive exports, growth expectations have
moderated due to uncertainties in the external environment, with sales projected
to reach 7.4 million units in 2026, representing a year-on-year growth of 4.3%.
II Company Strategy
Guided by the development vision of "Connecting the World, Leading with
Intelligent Mobility," the Company will adhere to the theme of high-quality
development, anchor on the three key directions of intelligent connectivity, new
energy, and globalization, and continuously enhance core competitiveness. This
will drive comprehensive improvements in operational quality, product mix, and
development momentum. In the commercial vehicle segment, the Company will
focus on specialized scenarios such as urban logistics to accelerate the launch
and upgrade of core products, continuously consolidate competitive advantages in
market segments, and steadily enhance customer value. In the passenger vehicle
segment, the Company will target specific demands such as off-road driving to
introduce differentiated products and deliver exceptional customer experiences. At
the same time, the Company will keep pace with trends in the automotive industry
by accelerating the transition to new energy, increasing investment in research and
development, and advancing technological and product innovation. In terms of
overseas market expansion, the Company will further refine its local operations
and management capabilities, continuously improve its international marketing
service system and brand image, consolidate and expand export volumes in key
countries and regions, and cultivate export business as a new growth driver. The
Company will comprehensively deploy technologies related to the "New Four"
trends, continuously strengthen its presence in core areas such as new energy
vehicles, intelligent connected vehicles, and autonomous driving, and build a
future-oriented, globally competitive business ecosystem through integrated and
synergistic development. Additionally, the Company will persistently advance its
digital systems, leveraging data mining and demand analysis to continuously align
product design, manufacturing, delivery, and after-sales service with user needs,
thereby steadily improving operational efficiency and digital competitive
advantages.
III Business Plan
In 2025, the Company achieved sales of 377 thousand vehicles and operating
revenue of RMB 39.17 billion. Based on the actual operating performance in 2025
and a comprehensive analysis of domestic and international economic conditions,
the automotive industry, raw material markets, and national policies in 2026, the
Company has set its 2026 business targets: sales of 430 thousand vehicles and
operating revenue of RMB 42 billion.
The Company will adhere to strategic leadership, strengthen the implementation
of its strategy, and continue to focus on making breakthroughs in three core
directions: intelligence, new energy, and global expansion. At the same time, it will
continuously innovate marketing models, deepen private domain marketing, drive
brand upgrades and channel renovations, enhance customer loyalty through high-
quality products and services, and steadily increase product sales. The Company
will persistently advance its product research and development capabilities,
particularly in achieving technological breakthroughs in key core areas such as
new energy, intelligence, and software development. It will uphold a quality-first
strategy, promote the high-quality and efficient launch of new products,
comprehensively enhance cost efficiency and reduce costs, continuously optimize
its cost structure, further improve the Company's operational level, and achieve
high-quality development. In 2026, the Company will focus on the following areas:
(1) Accelerating the development of intelligent capabilities and the enhancement
of R&D capabilities. By achieving breakthroughs in platform-based technologies
and improving in-house R&D capabilities, the Company will build a new-generation
intelligent architecture platform for vehicles covering multiple powertrain routes,
thereby enhancing the versatility and scalability of its technologies. Focusing on
central computing architecture, cockpit-driving integration, and full-scenario
intelligent driving, the Company will tackle key areas such as service-oriented
architecture, full-stack in-house OTA development, and the application of large AI
models. It will implement the core objectives of "high scalability, high commonality,
high safety, and high cost-performance ratio" to accelerate the development of its
intelligent connected vehicle technologies. Guided by market demand, the
Company will uphold a quality-first strategy, continuously increase investment in
product R&D, and focus on enhancing its reserve of R&D capabilities. It will
steadily advance product development, iteration, and upgrades, launching
precisely customized and differentiated products for different usage scenarios to
further enrich its product portfolio. By delivering high-performance, high-quality
products to meet market demand, the Company will enhance the all-around
competitiveness of its products.
(2) Promoting the accelerated development of new energy vehicles. The Company
will pursue key breakthroughs in the new energy sector, accelerating the launch of
new energy commercial vehicle models featuring larger battery capacities and
extended range for specific market segments such as logistics and passenger
transport. By integrating key technologies and coordinating operations across
multiple business formats, the Company aims to achieve leapfrog growth in its new
energy business. In its new energy transport capacity operations, the Company
will deeply cultivate the urban delivery sector while simultaneously laying out
related businesses such as used vehicles, battery-swapping light trucks, and
unmanned vehicles. This will solidify an integrated transport capacity service
ecosystem. At the same time, the Company will strengthen asset risk control to
promote the sustained and healthy development of the business.
(3) Further expanding overseas business. The Company will adhere to the "dual-
brand + dual-channel" export strategy, enrich its product portfolio, and
continuously enhance the competitiveness of its overseas products. At the same
time, the Company will conduct in-depth research on overseas markets, actively
explore new markets, strengthen the promotion of new models and the
development of localized overseas operational capabilities, improve the
fundamental overseas brand system, enhance overseas brand management, and
elevate the overseas brand image. Through initiatives such as pilot customer
service centers, promoting the Customer Satisfaction Index (CSI), signing off on
service channels, and empowering general agents, the Company will promote its
service brand, continuously improve its overseas market service levels, and
expand its export scale.
(4) Deepening marketing innovation and transformation. The Company will adhere
to a customer-centric approach, focus on market demand, and deeply cultivate
specific segments. JMC will concentrate on key markets and high-potential regions,
driving channel deepening and reform through standardized measures such as
rapid response mechanisms, dedicated teams, and the development of a
secondary network. Through the refined and systematic operation of
communication matrices and innovative marketing initiatives, the Company will
continuously expand its brand influence, deepen private domain marketing, and
enhance customer loyalty. The Company will fully explore opportunities in the high-
end hardcore off-road vehicle market, formulate a portfolio-based product mix
marketing strategy, fully leverage the combat effectiveness of newly added
channel resources, and continue to promote an exclusive owner ecosystem to
build sustained momentum for sales growth.
(5) Comprehensively advancing digital transformation and upgrading the
management structure. The Company will leverage the value of data to empower
the entire business chain, promoting a comprehensive transformation towards
digital intelligence in areas such as production and R&D, and advancing the
construction of an enterprise digital intelligence AI online platform. Through cost
control across the entire chain and the activation of organizational talent, JMC will
build a solid foundation for long-term development. Efforts will be focused on
driving cost reduction and efficiency enhancement across all areas including sales,
procurement, manufacturing, R&D, and management, deepening the awareness
of cost efficiency among all employees, further activating organizational
momentum, and improving operational efficiency.
IV Potential Risks and Solutions
The global economic recovery in 2026 is expected to be fraught with challenges
and uncertainties, exacerbated by geopolitical tensions and shifts in trade policies,
leading to increasingly intense and complex international competition. The Central
Economic Work Conference has clearly emphasized the overarching principle of
"pursuing progress while ensuring stability." The fundamental trend of the domestic
economy's long-term positive growth remains unchanged. However, under the
dual pressures of a strained macroeconomic environment and the reduction of new
energy vehicle subsidies, China's automotive market has fully entered a new cycle
characterized by "stock competition" and "structural divergence." The continuous
upgrading of new energy product structures and the intensifying industry
competition pose significant challenges to the Company's operations. To maintain
steady and robust growth, the Company will focus on the following key areas:
(1) Market Competition and Shifts in Demand
Challenges and Risks: in 2026, the global economic landscape will continue to
undergo adjustments, with geopolitical conflicts introducing significant uncertainty.
Domestically, although incremental policies such as expanding domestic demand,
promoting consumption, strengthening industries, and advancing reforms are
being continuously implemented, the rising penetration rate of new energy vehicles,
the accelerated development of intelligence and digitalization, and the further
increase in market concentration are intensifying industry competition. These
factors pose considerable challenges to the Company's operations.
Countermeasures: the Company will adhere to a customer-centric approach, base
its strategies on evolving customer demands and market conditions, and
steadfastly accelerate its strategic shift toward new energy vehicles. JMC will
speed up the transformation and upgrading of intelligence and digitalization,
continuously explore new business growth areas, and seize opportunities in the
rapidly developing industry. At the same time, the Company will strengthen
innovation in marketing models, persist in deepening private domain marketing,
drive brand upgrading, deepen channel reforms and market penetration, and
continuously enhance the competitiveness of its products and services by
maintaining ongoing insights into market and customer needs.
(2) Industry Transformation and Technological Revolution
Challenges and Risks: the accelerated iteration of new energy and intelligent
connected vehicle technologies in the automotive industry, along with further
standardization of compliance requirements such as power consumption limits,
battery safety, and intelligent driving regulations, has raised the industry's
technological entry barriers. This places higher demands on the Company's R&D
capabilities and management standards.
Countermeasures: The Company will focus on key technologies in the new four
modernizations areas (electrification, intelligence, connectivity, and sharing), with
a particular emphasis on breakthroughs in core technologies such as new energy
powertrains, intelligent connectivity, and new platforms. JMC will enhance its
hardware capabilities for product and technology R&D, build a talent team capable
of independent core technology development, and continuously increase R&D
investment, especially in key core technology areas. The Company will further
deepen its digital transformation, strengthen collaboration with advanced domestic
AI large-model enterprises, universities, and research institutions, and accelerate
the application of AI technology in practical business scenarios. These efforts aim
to expedite the Company's development in electrification, intelligence, sharing, and
connectivity.
(3) Cost Competitiveness and Profitability
Challenges and Risks: amidst intensifying industry competition and a shift in
customer demand towards low costs and high cost-performance ratios, China's
automotive industry as a whole is caught in a predicament of increasing revenue
without profit growth. In 2025, the industry's average profit margin hit a new low,
and the competitive landscape is expected to further intensify in 2026.
Concurrently, factors such as persistently rising raw material market prices,
shortages and sharp price increases in chip supply, and international trade
disputes, among other adverse supply chain factors, are further squeezing profit
margins. This puts pressure on the Company's product cost competitiveness and
profitability.
Countermeasures: the Company will focus on continuously promoting cost
reduction and efficiency enhancement, deepening marketing innovation and
transformation, and increasing product sales and service revenue. JMC will
implement a company-wide special initiative for cost reduction, promoting the
optimized allocation of resources across all areas including production,
manufacturing, product R&D, procurement costs, sales, logistics, and
management. The goal is to improve the effectiveness of resource investment and
operational management efficiency. Through these concrete actions, the
Company aims to enhance its overall cost competitiveness and profitability, and
generate ample cash flow to support its high-quality development.
?Applicable □Not Applicable
Date Communication Type of Information Discussed
Method Object and Materials offered
April 17, Online Individual JMC Operating
on the internet
platform
May 21, Online Individual JMC Operating
on the internet
platform
and valuation enhancement plan
Whether the Company has a market value management system in place.
□Yes ?No
Whether the Company has disclosed plans for valuation enhancement.
□Yes ?No
Return"
Whether the Company has disclosed the action plan of "Double Enhancement of
Quality and Return".
□Yes ?No
Chapter IV Corporate Governance Structure Environment and
Social
During the reporting period, the Company strictly abided by the Company Law, the
Securities Law, the Code of Corporate Governance for Listed Companies in China,
the Rules Governing Listing of Stock on Shenzhen Stock Exchange, as well as
relevant laws and regulations, to carry out corporate governance activities and
continued to improve its corporate governance.
Whether there are significant differences between the actual situation of corporate
governance in the company and the laws, administrative regulations and those of
regulations on corporate governance of listed companies promulgated by CSRC
□Yes ?No
There is no significant difference between the actual situation of corporate
governance in JMC and the laws, administrative regulations and those of
regulations on corporate governance of listed companies promulgated by CSRC.
in respect of Personnel, Assets and Finance, and Independence concerning
Organization and Business:
(1) With respect to personnel matters, the positions of chairman and president are
held by different individuals; JMC’s senior management do not hold positions other
than director positions with its controlling shareholders; JMC senior management
personnel are paid by JMC; labor, personnel matters and compensation
management of JMC are completely independent.
(2) With respect to assets, JMC assets are complete. The assets utilized by JMC,
including production system, supporting production system and peripheral facilities,
and non-patent technology, are owned and/or controlled by JMC.
(3) With respect to finance, JMC has an independent finance department and
independent accounting system, and has a uniform and independent accounting
system and financial control system for its branches and subsidiaries. JMC has its
own bank accounts, and there are no bank accounts jointly owned by JMC and its
controlling shareholders. JMC pays taxes independently in accordance with
relevant laws.
(4) With respect to organization, JMC’s organization is independent, complete and
scientifically established with a sound and efficient operating mechanism. The
establishment and the operation of JMC’s corporate governance are strictly carried
out per the Articles of Association of JMC. Production and administrative
management are independent from the controlling shareholders. JMC has
established an organization structure that meets the need for ongoing development.
(5) With respect to business, JMC has independent purchasing, production and
sales systems. The purchasing, production and sales of main materials and
products are carried out through its own purchasing, production & sales functions.
JMC is independent from the controlling shareholders in respect to its business, and
has independent and complete business and self-sufficient operating capability.
□Applicable ?Not Applicable
(1) Basic information
Share
Shares at Shares
Change
Term of the Stock restricted at the
Name Gender Age Position in the
Office period- options stock period-
reporting
beginning end
period
Qiu Tiangao Male 59 Chairman 0 0 0 0 0
Shengpo 2022.11.24-
Male 59 Vice Chairman 0 0 0 0 0
Wu 2026.06.15
Ryan 2021.10.18-
Male 52 Director 0 0 0 0 0
Anderson 2026.06.15
Yuan 2021.10.18-
Male 57 Director 0 0 0 0 0
Mingxue 2026.06.15
Director
Xiong 2026.06.15
Female 61 1,200 0 0 0 1,200
Chunying 2021.05.01-
President
Director
Zhong 2026.06.15
Female 49 0 0 0 0 0
Junhua 2024.03.26-
EVP
Independent 2021.10.18-
Yu Zhuoping Male 65 0 0 0 0 0
Director 2026.06.15
Chen Independent 2020.06.19-
Male 46 0 0 0 0 0
Jiangfeng Director 2026.06.15
Independent 2020.06.19-
Wang Yue Female 47 0 0 0 0 0
Director 2026.06.15
Independent 2025.12.30-
Chen Ping Male 60 0 0 0 0 0
Director 2026.06.15
Employee
Liu 2025.12.30-
Male 58 Representative 0 0 0 0 0
Niansheng 2026.06.15
Director
Ding 2022.06.01-
Male 53 EVP 0 0 0 0 0
Wenmin 2026.06.15
Li Weihua Female 48 CFO 0 0 0 0 0
Eric 2021.02.01-
Male 61 VP 0 0 0 0 0
Hermann 2026.06.15
Wu Xiaojun Male 51 VP 0 0 0 0 0
VP
Xu Lanfeng Female 56 0 0 0 0 0
Board 2020.12.01-
Secretary 2026.06.15
Wu Jiehong Female 49 VP 0 0 0 0 0
Zeng Fafa Male 47 VP 0 0 0 0 0
Sam lo Male 46 VP 0 0 0 0 0
Chen Lei Male 46 VP 0 0 0 0 0
Joey Zhu Male 43 Ex-CFO 0 0 0 0 0
Anderson 2022.11.25-
Male 53 Ex-VP 0 0 0 0 0
Liu 2025.10.30
Total — — - — 1,200 0 0 0 1,200
Whether there are any outgoing Directors and Supervisors and the dismissal of
senior management personnel during the reporting period?
?Yes □No
Please refer to " Changes of Directors and Senior Management"
Changes of Directors and Senior Management
?Applicable □Not Applicable
Name Position Status Date Reason
Independent
Chen Ping Elected 2025.12.30 Work need
Director
Employee
Liu Niansheng Representative Elected 2025.12.30 Work need
Director
Chen Lei VP Employment 2025.01.01 Appointment due to work need.
Li Weihua CFO Employment 2025.11.01 Appointment due to work need.
Joey Zhu Ex-CFO Dismissal 2025.10.31 Work rotation.
Anderson Liu Ex-VP Dismissal 2025.10.31 Work rotation.
(2). Employment
The current Directors and Senior Executives’ professional background, main
working experience and main responsibilities in the Company:
Directors:
Mr. Qiu Tiangao, born in 1966, holds a Bachelor Degree in Mechanical
Manufacturing and a Master Degree in Industrial Engineering from Huazhong
University of Science and Technology, and is Chairman of JMCG, Chairman of
Nanchange Jiangling Investment Co., Ltd., Chairman of JMC, Chairman of Jiangxi
ISUZU Co., Ltd., and Chairman of JMCG New Energy Vehicle Co., Ltd. Mr. Qiu
Tiangao held various positions including General Manager, Chairman of Nanchang
Gear Co., Ltd., Chairman of Jiangxi JMCG Gear Co., Ltd., Vice President of
Jiangling Motor Holdings Co., Ltd., and Director & General Manager of JMCG.
Mr. Shengpo Wu, born in 1966, holds a Bachelor’s Degree in Thermal Energy
Engineering from Tsinghua University in Beijing and Master’s Degrees in
Mechanical Engineering and Information Management, respectively, from the
University of Nebraska-Lincoln and the Keller Graduate School of Management of
DeVry University, and is a Group Vice President of Ford, President and Chief
Executive Officer of Ford China and International Markets Group, Chairman and
President & Chief Executive Officer of Ford Motor (China) Ltd., Vice Chairman of
JMC, and Vice Chairman of Changan Ford Automobile Co., Ltd. Mr. Shengpo Wu
held various positions including Vice President and Regional General Manager for
Honeywell Process Solutions in Greater China, President and CEO of Osram’s
Asia-Pacific business, President, Asia Pacific, and a member of the Global
Executive Committee for Whirlpool Corporation.
Mr. Ryan Anderson, born in 1973, holds a Bachelor’s Degree in Economics from
University of Chicago and a Master’s Degree in Business Administration from
University of Michigan - Ann Arbor, and is Director and CFO of Ford Motor (China)
Ltd., a Director of JMC, a Director of Changan Ford Automobile Co., Ltd., a Director
of Fuqi Trading (Shanghai) Ltd., Chairman of Ford Motor Sales Service (Shanghai)
Co., Ltd., and a Director of Ford Model e Technology (Nanjing) Co., Ltd. Mr. Ryan
Anderson has held various positions including Treasurer of Ford Europe, Product
Development Controller, Marketing & Sales Controller of Ford Asia Pacific, Director
of Corporate Financial Planning and Analysis for Ford Motor Company.
Mr. Yuan Mingxue, born in 1968, holds a Bachelor’s Degree in Auto Engineering
from Beijing Institute of Technology and an EMBA from China Europe International
Business School, and is Chief Expert of Chongqing Chang’an Automobile Company
Limited, Senior Consultant of Chairman business team, Chief Representative in
Europe, and a Director of JMC. Mr. Yuan Mingxue has held various positions
including Assistant to the President of Chang’an Auto and Executive Vice President
of Jiangling Holdings Limited Company, Assistant to the President and Director of
Strategy Planning Department for Chang’an Auto, Assistant to the President and
Director of Overseas Development Department for Chang’an Auto, deputy
Secretary of the Party Committee, Vice President, Executive Vice President,
Chairman of the Labor Union for Chang’an Auto.
Ms. Xiong Chunying, born in 1964, senior engineer, holds a Bachelor Degree in
Automobile Engineering from Jiangsu Engineering College, a Master Degree in
Industrial Economics from Jiangxi University of Finance and Economics and an
EMBA Degree from China Europe International Business School, and is Director
and President of JMC, and a Director of Ford Motor Sales Service (Shanghai) Co.,
Ltd. Ms. Xiong Chunying held various positions including Chief of Quality
Management Department, Assistant to the President, Vice President, Executive
Vice President, a Director for JMC.
Ms. Zhong Junhua, born in 1976, graduated in Financial Accounting from School of
Management, Shijiazhuang Tiedao University, holds a Bachelor’s Degree in
Economics and a MBA Degree, Certified Public Accountant, Senior Accountant, and
is a Director of Nanchang Jiangling Investment Co., Ltd., and Director & EVP of
JMC, an Executive Director & General Manager of Jiangling Motor Sales Co., Ltd.,
Chairman of Jiangling Ford Automobile Technology (Shanghai) Co., Ltd., in charge
of marketing sales & service, and assist the President to manage the Company. Ms.
Zhong Junhua held various positions including chief of Assets and Finance
Department for JMCG, Chairman of JMCG Finance Co., Ltd., General Manager,
Chairman of Nanchang Jiangling Dingsheng Investment Management Co., Ltd.,
Vice General Manager of JMCG, Chairman of Jiangxi JMCG Specialty Vehicles Co.,
Ltd., Chairman of Jiangxi Jiangling Group Special Vehicle Co., Ltd., and a Director
of JMCG,
Mr. Yu Zhuoping, born in 1960, holds a Bachelor's Degree in Mechanical
Engineering and a Master's degree in Mechanical Engineering from Tongji
University and a Doctor's Degree in Automotive Engineering from Tsinghua
University, and is Director of Collaborative Innovation Center for Intelligent Energy
Vehicles of Tongji University, Chairman of Tongji Automobile Design and Research
Institute Co., Ltd., Chairman and General Manager of Shanghai Intelligent New
Energy Vehicle Science and Technology Innovation Function Platform Co., Ltd., a
Counsellor of Shanghai Municipal People's Government, a Deputy Chief Supervisor
of China Society of Automotive Engineers, an Independent Director of JMC, an
Independent Director of Ningbo Shenglong Automotive Powertrain System Co., Ltd.,
an Independent Director of Huayu Automotive Systems Co., Ltd. Mr. Yu Zhuoping
held various positions including Director of School of Mechanical Engineering,
Executive Deputy Director of New Energy Vehicle Engineering Center, Executive
Vice Dean, Dean of School of Automotive Studies for Tongji University, and
Assistant to the President of Tongji University.
Mr. Chen Jiangfeng, born in 1979, holds a Bachelor’s Degree and Master’s Degree
in Law from International Law Department, Foreign Affairs College, and is Senior
Deputy General Counsel & Executive Director of Gilead (Shanghai) Pharmaceutical
Technology Co., and an Independent Director of JMC. Mr. Chen Jiangfeng has held
various positions including Legal Counsel of Ford Motor (China) Ltd., Legal Counsel
of Ford Motor Research & Engineering (Nanjing) Co., Ltd./ Chang’an Ford Mazda
Automobile Corporation, Ltd., Nanjing Company/Chang’an Ford Mazda Engine
Company, Ltd., Senior Legal Counsel & Compliance Officer of Ford Asia Pacific &
Africa, Senior Legal Counsel of BMW China Automotive Trading Ltd., and Member
of China Country Council, Head of legal, Director, Merck Healthcare China.
Ms. Wang Yue, born in 1978, holds a Bachelor’s Degree in Accountancy from
Henan University, a Master’s Degree in Accountancy from Zhongnan University of
Economics and Law, and a Doctor’s Degree in Accountancy from Shanghai
University of Financial and Economics, and is a Professor of School of Accountancy
for Shanghai University of Financial and Economics, an Independent Director of
JMC, an Independent Director of Shanghai Chemspec Corporation and an
Independent Director of Shanghai Dearer Medical Equipment Co., Ltd.. Ms. Wang
Yue has served as Research Assistant at The Hong Kong Polytechnic University
and China Europe International School, during 2012~2013, served as Visiting
Scholar at Zimmerman Center for University of Illinois at Urbana-Champaign. during
in the United Kingdom.
Mr. Chen Ping, born in 1965, holds a Bachelor’s degree in Radio Technology from
Zhejiang University and an EMBA from China Europe International Business School
(CEIBS), is a recipient of the State Council’s Special Government Allowance. He
currently serves as a Director of Shanghai Electrical Apparatus Research Institute
(Group) Co., Ltd., a Director of Jiangsu Luokai Electromechanical Co., Ltd., a
Director of Shanghai Hi-Tech Control System Co., Ltd., Chairman of Shanghai
Dianke Venture Capital Co., Ltd., a Director of Shanghai Electric Power Research
Institute Technology Co., Ltd., and a Director of Shanghai Seari Intelligent System
Co., Ltd. He also holds dual roles as Supervisor of Shanghai Association for Quality,
Supervisor of Shanghai Invention Association, Chairman of Shanghai Yangtze
River Delta Advanced Manufacturing Development Research Institute and
Independent Director of JMC. His career includes serving as Vice President,
President, Chairman, and Party Secretary of Shanghai Electrical Apparatus
Research Institute (Group) Co., Ltd. Mr. Chen Ping has been honored with the First
Prize of Shanghai Municipal Science and Technology Progress Award by the
Shanghai Municipal People's Government and the Second Prize of National
Science and Technology Progress Award by the State Council.
Mr. Liu Niansheng, born in 1967, holds a Bachelor’s Degree in Forging Technology
and Equipment from Jiangxi Industry University and Postgraduate degree in
Economics and Management from Renmin University of China. He currently holds
the positions of Employee Representative Director and Chairman of the Trade
Union at JMC. He has served as Deputy Director of the Chassis Plant at JMC,
Deputy County Governor of Boyang County in Jiangxi Province, Deputy Director of
the Manufacturing Department, Director of the Chassis Plant, Director of the Transit
Plant and Assistant President of JMC.
Senior management:
Ms. Xiong Chunying, please refer to the part of Directors for her resume.
Ms. Zhong Junhua, please refer to the part of Directors for her resume.
Mr. Ding Wenmin, born in 1972, holds a Bachelor’s Degree in Automobile Exertion
from Wuhan University of Technology, and is an Executive Vice President of JMC,
in charge of the Company's product research and development. Mr. Ding Wenmin
held various positions including Deputy Chief of Product Development Center, Chief
of Product Planning & Program Management Department, and Assistant to the
President for JMC, Vice President of JMC, and a Director of JMCG.
Ms. Li Weihua, born in 1977, holds a Bachelor’s Degree in International Economic
Law from Shanghai University of Finance and Economics and a MBA from Canada
York University Schulich School of Business, and is CFO of JMC, a Director of
Jiangling Ford Automobile Technology (Shanghai) Co., Ltd. Ms. Li Weihua has held
various positions including Finance Analyst of Ford China, Finance Analyst, and
Finance Manager of Ford Motor Research & Engineering (Nanjing) Co., Ltd., MFG
Finance Manager, PD Finance Manager, MFG Finance Controller, and PD Finance
Controller for C and C SUV of Ford AP, CFO of Ford Lioho, CFO of JMC, Financial
Vice President of Changan Ford Automobile Co., Ltd., and a Director of Hanon
Systems (Nanchang) Co., Ltd.
Mr Eric Hermann, born in 1964, holds a Bachelor’s Degree in Engineering
Mechanical and a Master’s Degree in Engineering Mechanical from University of
Michigan, and is a Vice President of JMC, in charge of the Company's product
research and development. Mr. Eric Hermann held various positions in Ford Motor
Company including Light Truck Exhaust Design Engineer, Vehicle NVH Supervisor,
VE Launch Leader, Exhaust, AIS & Clutch Supervisor, AIS, Cooling, Exhaust & CAE
Manager, BoF Cooling & Mounts Manager, Unibody Exhaust & AIS Manager, and
Global AIS Manager, as well as the Director of Powertrain Engineering Department
and Assistant President for JMC.
Mr. Wu Xiaojun, born in 1974, holds an Automobile Design Bachelor’s Degree from
Wuhan University of Technology and a MBA from Jiangxi University of Finance and
Economics, and is a Vice President of JMC, CEO of New Energy Division for JMC,
Executive Director and General Manager of Jiangling Heavy Vehicle Co., Ltd., in
charge of the new energy business of commercial vehicles for the Company. Mr.
Wu Xiaojun held various positions including Chief of Quality Department, Assistant
to the President for JMC, and Executive Deputy General Manager of JMC Heavy
Duty Vehicle Co., Ltd.
Ms. Xu Lanfeng, born in 1969, holds a Bachelor’s Degree in Forging Technology
and Equipment from Jiangxi Industry University and a MBA from University of
International Business and Economics, and is a Vice President and the Board
Secretary of JMC, in charge of the Company’s human resources and relevant duties
of Board Secretary. Ms. Xu Lanfeng held various positions in JMC including Deputy
Plant Manager of Framing Plant, Deputy Chief, Chief of Manufacture Department
and Assistant to the President for JMC.
Ms. Wu Jiehong, born in 1976, holds a Bachelor’s Degree in Finance Management
from Nanchang University and a MBA from Jiangxi University of Finance and
Economics, and is a Vice President of JMC, in charge of the strategic development
of the Company and assist the CFO to support the financial work. Ms. Wu Jiehong
held various positions including Assistant to the Chief of Financial Department,
Chief of Internal Audit Office, and Chief of Financial Department for JMC, Finance
Manager for Ford APA, Chief of Planning Department, and Assistant to the
President for JMC.
Mr. Zeng Fafa, born in 1978, holds a Bachelor's Degree in Automotive Engineering
from Nanchang University, China, and is a Vice President of JMC, in charge of
manufacturing business. Mr. Zeng Fafa held various positions including Deputy
Director of Quality Control Department, Director of New Model Program Department,
Director of Quality Control Department, Director of Quality Control & New Model
Program Department, Director of Manufacture Department, and an Assistant to the
President for JMC.
Mr. Sam Lo, born in 1979, holds a Bachelor's Degree in Mechanical Engineering
from National Taiwan University of S&T, China, a Master's degree in Mechanical
Engineering from National Taiwan University, China, and is a Vice President of JMC,
in charge of manufacturing business of the Company. Mr. Sam Lo held various
positions including Welding Area Manufacturing Engineer, Craft Engineer,
Production Superintendent and ME Manager of Ford Lio Ho Motor Company,
VOME Implementation Body Manager and Final Assembly Manager of Ford Asia &
Pacific, Body Area Manager Advisor of Changan Ford Motor Co., Ltd. Harbin Branch,
Plant Launch Manager and Plant Manager of Changan Ford Motor Co., Ltd.
Hangzhou Branch.
Mr. Chen Lei, born in 1979, holds a Bachelor's degree in Electrical Automation from
Jiangsu University of Science and Technology and an MBA degree from Nanjing
University of Aeronautics and Astronautics, is a Vice President of JMC, in charge of
procurement. Mr. Chen Lei has served as the Director of Supplier Technical
Assistance (STA) and Electrified Propulsion Engineering (EPE) Supply Chain for
Ford China, EPE Supply Chain Director for Ford China’s EV Business, STA Director
for Ford China, STA Director for Changan Ford, and the Senior Manager of
Electrical STA for Ford Asia Pacific.
Positions at the shareholder entities
?Applicable □Not Applicable
Name Shareholder Title Term of
Compensation
Entity Office Paid by
Shareholder
Entity (Y/N)
Qiu Tiangao JIC Chairman 2019.05.28 N
Group Vice
President
President and CEO
Shengpo Wu Ford Y
of Ford China and
International
Markets Group
Ryan Anderson Ford CFO, Ford China 2021.06.01 Y
Yuan Mingxue JIC Director 2019.05.28 N
Zhong Junhua JIC Director 2019.05.28 N
Description of the positions in the shareholder entities None.
Positions in other entities
?Applicable □Not Applicable
Compensation
Name Entity Title Paid by Other
Entities (Y/N)
Qiu Tiangao JMCG Chairman Y
Qiu Tiangao Jiangxi ISUZU Co., Ltd. Chairman N
Qiu Tiangao JMCG New Energy Vehicle Chairman N
Co., Ltd.
Qiu Tiangao Nanchang Jiangling Chairman N
Investment Co. Ltd.
Shengpo Wu Ford Motor (China) Ltd. Chairman, President N
and CEO
Shengpo Wu Changan Ford Automobile Co., Vice Chairman N
Ltd.
Shengpo Wu Ford Technology (China) Chairman N
Holding, Inc.
Shengpo Wu Fuqi Trading (Shanghai) Ltd. Chairman N
Ryan Ford Motor (China) Ltd. Director, Chief N
Anderson Financial Officer
Ryan Chang'an Ford Automobile Director N
Anderson Co., Ltd.
Ryan Ford Motor Sales Service Chairman N
Anderson (Shanghai) Co., Ltd.
Ryan Fuqi Trading (Shanghai) Ltd. Director N
Anderson
Ryan Ford Model e Technology Chairman, Head of N
Anderson (Nanjing) Co., Ltd. Power Technology
branch
Ryan Ford Technology (China) Director N
Anderson Holding, Inc.
Yuan Chongqing Chang'an Chief Expert and Y
Mingxue Automobile Company Limited Senior Consultant of
Chairman Business
Team, Chief
Representative in
Europe
Xiong Ford Motor Sales Service Director N
Chunying (Shanghai) Co., Ltd.
Zhong Nanchang Jiangling Director N
Junhua Investment Co. Ltd.
Zhong Jiangling Motor Sales Co., Ltd. Executive Director N
Junhua & General Manager
Zhong Jiangling Ford Automobile Chairman N
Junhua Technology (Shanghai) Co.,
Ltd.
Yu Zhuoping Collaborative Innovation Director N
Center for Intelligent Energy
Vehicles of Tongji University
Yu Zhuoping Tongji Automobile Design and Chairman N
Research Institute Co., Ltd.
Yu Zhuoping Shanghai Intelligent New Chairman & N
Energy Vehicle Science and President
Technology Innovation
Function Platform Co., Ltd.
Yu Zhuoping Huayu Automotive Systems Independent Director Y
Co., Ltd.
Yu Zhuoping Ningbo Shenglong Automotive Independent Director Y
Powertrain System Co., Ltd.
Yu Zhuoping Shanghai Municipal People's Counsellor N
Government
Yu Zhuoping China Society of Automotive Deputy Chief N
Engineers Supervisor
Chen Gilead (Shanghai) Executive Director, Y
Jiangfeng Pharmaceutical Technology Senior Deputy
Co., Ltd. General Counsel
Wang Yue Shanghai University of Professor Y
Finance and Economics
Wang Yue Shanghai Chemspec Independent Director Y
Corporation
Wang Yue Shanghai Tiluo Medical Independent Director Y
Equipment Co., Ltd.
Shanghai Dianke Venture
Chen Ping Chairman N
Capital Co., Ltd.
Shanghai Electrical Apparatus
Chen Ping Research Institute (Group) Director Y
Co., Ltd.
Shanghai Electric Power
Chen Ping Research Institute Technology Director N
Co., Ltd.
Shanghai Seari Intelligent
Chen Ping Director N
System Co., Ltd.
Shanghai Hi-Tech Control
Chen Ping Director Y
System Co., Ltd.
Jiangsu Luokai
Chen Ping Director N
Electromechanical Co., Ltd.
Shanghai Association for
Chen Ping Supervisor N
Quality
Shanghai Invention
Chen Ping Supervisor N
Association
Shanghai Yangtze River Delta
Advanced Manufacturing
Chen Ping Chairman N
Development Research
Institute
Li Weihua Jiangling Ford Automobile Director N
Technology (Shanghai) Co.,
Ltd.
Wu Xiaojun JMC Heavy Duty Vehicle Co., Executive Director, N
Ltd. General Manager
Wu Xiaojun Shenzhen Fujiang New Energy Executive Director, N
Automobile Sales Co., Ltd. General Manager
Wu Xiaojun Guangzhou Fujiang New Executive Director, N
Energy Automobile Sales Co., General Manager
Ltd.
Wu Xiaojun Shanxi Yunnei Power Co., Ltd. Director N
Wu Jiehong JMC Heavy Duty Vehicle Co., Supervisor N
Ltd.
Wu Jiehong Shanxi Yunnei Power Co., Ltd. Director N
Wu Jiehong Shenzhen Fujiang New Energy Supervisor N
Automobile Sales Co., Ltd.
Description of the positions in other entities None
Penalties from securities regulator to the present and resigned Directors,
Supervisors and Senior Executives in the recent three years
□Applicable ?Not Applicable
(3). Compensation of Directors and Senior Executives
Decision-making procedure, determination of basis, and actual payment regarding
the compensation of the Directors and Senior Executives
Directors who did not concurrently hold other management positions in JMC were
not paid by JMC. Director Qiu Tiangao is paid by JMCG. Director Shengpo Wu and
Director Ryan Anderson were paid by Ford. Director Yuan Mingxue was paid by
Chongqing Chang’an Automobile Co., Ltd.
(a) In accordance with JMC Executive Compensation Scheme approved by the
Board of Directors, the compensation for the Chinese-side senior management
consists of base salary and floating bonus. The base salary level is determined
according the grade of the senior executives, and the floating bonus shall be paid
according to the operating performance. 70% of the bonus will be distributed in this
year, and the rest 30% will be distributed in the next three years. In 2025, the
Company paid annual compensation before tax of approximately RMB 1,500
thousand to EVP Zhong Junhua, paid approximately RMB 1,810 thousand to EVP
Ding Wenmin, paid approximately RMB 1,650 thousand to VP Wu Xiaojun, paid
approximately RMB 1,660 thousand to VP & Board Secretary Xu Lanfeng, paid
approximately RMB 1,690 thousand to VP Wu Jiehong, paid approximately RMB
for the aforesaid persons was about RMB 9.97 million in the reporting period,
including the long-term incentive of RMB 830 thousand deferred from the previous
years.
(b)JMC pays annual compensation for Ford-seconded senior management
personnel to Ford in accordance with the Personnel Secondment Agreement signed
between JMC and Ford & Ford Affiliates. In 2025, the Company should pay
approximately RMB 1,100 thousand to Ford for Director and President Xiong
Chunying, pay approximately RMB 180 thousand for CFO Li Weihua, pay US$ 500
thousand for VP Eric Hermann, pay RMB 1,100 thousand for VP Sam Lo, pay RMB
approximately RMB 960 thousand to Ex-CFO Joey Zhu, pay RMB 3,150 thousand
for Ex-VP Anderson Liu, These payments made by JMC to Ford do not reflect the
actual salaries earned by Ford-seconded senior management.
(c) Pursuant to the resolutions of JMC 2011 Annual Shareholder’s Meeting, the
annual compensation for the JMC Independent Directors is RMB 100 thousand per
person, and JMC bears their travel-related expenses associated with JMC’s
business. In 2025, the Company paid annual compensation before tax of RMB 100
thousand to Independent Director Yu Zhuoping, Independent Director Chen
Jiangfeng, and Independent Director Wang Yue respectively.
Table on compensation of the Directors and Senior Executives in the reporting
period
Unit: RMB’ 000
Compensation Compensation
Present
Name Gender Age Position Before Tax Paid by Related
(Y/N)
Paid by JMC Party (Y/N)
Qiu Tiangao Male 59 Chairman Y 0 Y
Shengpo Wu Male 59 Vice Chairman Y 0 Y
Ryan
Male 52 Director Y 0 Y
Anderson
Yuan
Male 57 Director Y 0 Y
Mingxue
Xiong Director &
Female 61 Y * Y
Chunying President
Zhong
Female 49 Director & EVP Y 1,500 N
Junhua
Independent
Yu Zhuoping Male 65 Y 100 N
Director
Chen Independent
Male 46 Y 100 N
Jiangfeng Director
Independent
Wang Yue Female 47 Y 100 N
Director
Independent
Chen Ping Male 60 Y 0 N
Director
Employee
Liu
Male 58 Representative Y # N
Niansheng
Director
Ding Wenmin Male 53 EVP Y 1,810 N
Li Weihua Female 48 CFO Y * Y
Eric Hermann Male
Wu Xiaojun Male
VP &Board
Xu Lanfeng Female 56 Y 1,660 N
Secretary
Wu Jiehong Female 49 VP Y 1,690 N
Zeng Fafa Male 47 VP Y 1,660 N
Sam lo Male 46 VP Y * Y
Chen Lei Male 46 VP Y * Y
Joey Zhu Male 43 Ex-CFO Y * Y
Anderson Liu Male 53 Ex-VP Y * Y
Total - - - - 10,270 -
*See the instructions in the previous paragraph.
# Liu Niansheng was appointed as the Employee Representative Director of the Company on
December 30, 2025.
Except for Independent Directors, Directors who
do not hold senior management positions in the
The assessment basis for the actual Company do not receive compensation from the
compensation received by all Directors Company. The assessment basis for the
and senior executives at the end of the compensation received by the Company's
reporting period. senior management is the "JMC Executives
Compensation Scheme" and the "KPIs for the
Company’s senior executives in 2025 ".
The compensation for Chinese senior
The performance of the assessment for executives consists of base salary and floating
the actual compensation received by all bonus. The base salary is determined according
Directors and senior executives to the senior executives' job grade, while the
management at the end of the reporting floating bonus is approved and paid by the
period. Company's Compensation Committee based on
performance achievement.
The deferred payment arrangements
executives is distributed after the performance
for the actual compensation received by
assessment in the following year, while the
all Directors and senior executives at
remaining 30% is deferred and paid out in equal
the end of the reporting period.
instalments over three years.
The clawback and recovery status of
the actual compensation received by all
None
directors and senior executives at the
end of the reporting period.
Explanation of Other Situations
□Applicable ?Not Applicable
(1) Particulars about the Directors’ attendance to the Board meeting and the
Shareholders’ Meeting
Presence Not to Presence
Required
Presence in form of Presence present in at the
Name Board Absence
in Person Paper by Proxy person in two Shareholde
Attendance
Meeting consecutive rs’ Meeting
meetings
(Y/N)
Qiu Tiangao 18 4 14 0 0 N 3
Shengpo Wu 18 4 14 0 0 N 2
Ryan
Anderson
Yuan Mingxue 18 2 14 2 0 N 0
Xiong
Chunying
Zhong Junhua 18 4 14 0 0 N 3
Yu Zhuoping 18 4 14 0 0 N 3
Chen
Jiangfeng
Wang Yue 18 4 14 0 0 N 3
Chen Ping 0 0 0 0 0 N 0
Liu Niansheng 0 0 0 0 0 N 0
Statements on failure to attend Board meetings in person for two consecutive
occasions
None.
Chen Ping was appointed as an Independent Director of the Company on
December 30, 2025, and Liu Niansheng was appointed as the Employee
Representative Director of the Company on December 30, 2025.
(2) Dissent from Directors
□Yes ?No
The Directors of the Company had no dissent to the relevant proposals of the
Company in the reporting period.
(3) Other introduction to Directors’ Performance of Duty
Whether the Directors' suggestions on the Company have been adopted
?Yes □No
Statement of the adoption or not of the Directors’ suggestions on the Company
All the Directors of the Company fulfill their duties diligently, actively pay attention
to the Company’s management information, financial situation, and major issues,
make a thorough study and discussion on the proposals submitted to the Board of
Directors and put forward their respective opinions, make recommendations for the
Company's business development, fully consider the interests and demands of
minority shareholders while making decisions, which strengthens the scientific of
the Board’s decision, and promotes the sustainable, stable and healthy
development of the Company’s operation.
(1) Audit Committee
Members:
Chairman: Wang Yue
Member: Ryan Anderson, Yuan Mingxue, Yu Zhuoping, Chen Jiangfeng
Secretary: Li Weihua
The number of meetings held in the reporting period: nine.
The first Audit Committee meeting of 2025 was convened on January 17,
Reviewed the 2024 Annual Financial and Accounting Statements of JMC, and
would review the Company's financial and accounting statements again after the
auditor forms the preliminary audit opinions.
Important comments and suggestions made: None.
Other performance of duties: None.
Details of the objection to matter: None.
The second Audit Committee meeting of 2025 was convened on February 28,
Reviewed the Company's financial report after the certified auditor issued its
initial audit opinions.
Important comments and suggestions made: None.
Other performance of duties: None.
Details of the objection to matters: None.
The third Audit Committee meeting of 2025 was convened on March 13, 2025.
Meeting contents:
submit it to the Board of Directors for approval;
Performance of the Audit Committee’s Supervision Responsibilities;
submit it to the Board of Directors for approval;
to the Board of Directors for approval;
Important comments and suggestions made: None.
Other performance of duties: None.
Details of the objection to matters: None.
The forth Audit Committee meeting of 2025 was convened on April 18, 2025.
Meeting contents:
Reviewed the First Quarter FY2025 Financial Accounting Statements and
agreed to submit this proposal to Board of Directors for approval.
Important comments and suggestions made: None
Other performance of duties: None.
Details of the objection to matters: None.
The fifth Audit Committee meeting of 2025 was convened on June 24, 2025.
Meeting contents:
Work Plan for the second half of 2024;
Important comments and suggestions made: None
Other performance of duties: None.
Details of the objection to matters: None.
The sixth Audit Committee meeting of 2025 was convened on August 13,
Reviewed the First Half FY2025 Financial Accounting Statements and agreed
to submit this proposal to Board of Directors for approval.
Important comments and suggestions made: None
Other performance of duties: None.
Details of the objection to matters: None.
The seventh Audit Committee meeting of 2025 was convened on October 14,
Reviewed the First Quarter FY2025 Financial Accounting Statements and
agreed to submit this proposal to Board of Directors for approval.
Important comments and suggestions made: None
Other performance of duties: None.
Details of the objection to matters: None.
The eighth Audit Committee meeting of 2025 was convened on October 16,
Approved Mr. Joey Zhu would no longer serve as the Company's CFO, and
appointed Ms. Li Weihua as the Company's CFO, and agreed to submit it to the
Board for approval.
Important comments and suggestions made: None
Other performance of duties: None.
Details of the objection to matters: None.
The ninth Audit Committee meeting of 2025 was convened on December 19,
submit it to the Board for review;
Audit Work Plan for 2026.
Important comments and suggestions made: None
Other performance of duties: None.
Details of the objection to matters: None.
(2) Compensation Committee
Members:
Chairman: Chen Jiangfeng
Member: Qiu Tiangao, Ryan Anderson, Yu Zhuoping, Wang Yue
Secretary: Xu Lanfeng
The number of meetings held in the reporting period: one.
A Compensation Committee meeting was convened on March 13, 2025.
Meeting contents:
Company’s senior executives;
target of the Company’s senior executives in 2025;
Compensation Committee.
Important comments and suggestions made: None.
Other performance of duties: None.
Details of the objection to matters: None.
(3) Strategy Committee
Members:
Chairman: Qiu Tiangao
Member: Shengpo Wu, Ryan Anderson, Yuan Mingxue, Xiong Chunying,
Zhong Junhua
Secretary: Wu Jiehong
The number of meetings held in the reporting period: one.
A Strategy Committee meeting was convened on December 19, 2025.
Meeting contents:
Review the Company's "Fifteenth Five-Year Strategic Plan."
Important comments and suggestions made: None.
Other performance of duties: None.
Details of the objection to matters: None.
Risks found by the Audit Committee in the reporting period
□Yes ?No
The Audit Committee had no dissent on inspection items in the reporting period.
(1) Employees, Professional Structure and Educational Level
Employees in parent company at the end of reporting
period(person)
Employees in subsidiaries at the end of reporting period(person) 40
Total employees at the end of reporting period(person) 11,203
Total employees paid compensation (person) 11,790
Retired employees bore retirement benefits in parent company and
its subsidiaries
Professional Structure
Employees
Type
(Person)
Production Worker 6,695
Sales Personnel 536
Technical Personnel 3,208
Finance Personnel 138
Administrative Staff 626
Total 11,203
Educational Level
Employees
Type
(Person)
Master degree and higher 1,005
Undergraduate degree 3,430
Polytechnic school degree 1,362
Below polytechnic school degree 5,406
Total 11,203
(2) Compensation Policy
JMC strictly abided by the relevant requirements of national labor laws and
regulations, and provided safe and comfortable work places. The Company also
established and improved the incentive system that can effectively help the
realization of the Company’s strategy and targets, based on the characteristics of
the business and talents. The Company promoted the multi-talent incentive system
with orientation on value, ability and contribution, so as to accelerate the growth of
new automobile talents. The Company also strengthened the connection between
personal interests of core talents and the company's medium and long-term
strategic goals, thus driving the achievement of business objectives. At the same
time, the Company constantly improved employee welfare policies to meet the
diversified individual needs of employees and improve the employees’ experience
and satisfaction.
(3) Training
By conducting training needs surveys for all employees and building a differentiated
talent development and empowerment system, the Company continuously provides
employees with comprehensive and diverse learning opportunities, encouraging
and supporting them to pursue continuous, efficient, and lifelong learning. In 2025,
closely aligned with industry development trends, the Company strategically
focused on two core areas: "Artificial Intelligence" and "Global Talent for Overseas
Expansion." This forward-looking approach aims to achieve a dual enhancement of
organizational effectiveness and employees' core competitiveness. In terms of
digital and intelligent transformation, the Company launched a series of AI
empowerment initiatives, helping employees master cutting-edge AI tools through
systematic training, driving the evolution of work models from traditional to intelligent,
and stimulating individual innovation. In terms of globalization, tailored training
programs were developed to support the Company's overseas expansion strategy,
including cross-cultural communication, localized operations, and overseas legal
compliance, cultivating comprehensive talent with an international perspective to
support the Company's global business expansion. At the same time, the Company
continued its partnership with Tongji University for the specialized cultivation of
high-level talent, leveraging postdoctoral workstations at universities such as
Nanchang University to deepen the integration of industry, academia, and research,
continuously expanding the depth and breadth of university-industry cooperation.
The Company leverages multi-path synergies to continuously advance its "New
Four Modernizations" talent development program while keenly seizing
opportunities presented by AI transformation and globalization. By building
diversified growth platforms for employees across different business sectors, it not
only helps individuals achieve their career aspirations but also fully fulfils its
responsibility as an engine of social innovation.
(4) Labour outsourcing
□Applicable ?Not Applicable
Establishment, implementation or adjustment of profit distribution policy, esp. cash
dividend distribution policy, regarding common stock during the reporting period
?Applicable □Not Applicable
In accordance with the requirements of laws, regulations and the Articles of
Association of the Company, the Company's profit distribution policy maintains
continuity and stability, and the Company pays attention to the reasonable return to
investors. The Company gives priority to cash dividend, and subject to the
provisions of laws, regulations and the Articles of Association of the Company, the
Board of Directors can put forward a mid-term or special profit distribution proposal.
The Company's profit distribution policy is in line with the CSRC's guidance on
encouraging cash dividends for listed companies.
Special Explanation on Cash Dividend Policy
Whether to comply with the requirements of the Articles of Association of JMC
Y
or resolution of the Shareholders’ Meeting (Y/N)
Whether the standards and proportion of dividends on profit distribution are
Y
clear (Y/N)
Whether the procedures are valid and legal (Y/N) Y
Whether the Independent Director fulfil their duties (Y/N) Y
Whether middle and small shareholders have opportunities to claim their
Y
appeals and their legal rights and interests are completely protected (Y/N)
Whether the condition and procedure are reasonable and transparent when the
Y
cash dividend policy is being changed (Y/N)
The Company made a profit during the reporting period and the profit of the parent
company distributable to the common shareholders is positive, but a distribution
plan of cash dividends for the common shares is not put forward
□Applicable ?Not Applicable
Proposal on Year 2025 Profit Distribution Plan or Capital Reserve Conversion
?Applicable □Not Applicable
Stock dividend (share) for every 10 shares 0
Cash Dividend (RMB) for every 10 shares (including tax) 5.5581
Total share capital (share) 854,581,922
Total cash dividend distribution amounts (RMB) (including tax) 474,985,178
Amount of cash dividend (RMB) in other ways (e.g. repurchase of
shares)
Total cash dividend amounts (RMB) (including other ways) 474,985,178
Distributable profit (RMB) 9,752,190,648
Total cash dividends (including other ways) as a proportion of total
profit distribution
Cash dividend status
If the development stage of the Company is not easy to distinguish but there are major
fund expenditure arrangements, the minimum proportion of cash dividends in this profit
distribution shall reach 20% when the profit distribution is carried out.
Detailed description of profit distribution or capital reverse conversion proposal
Proposal on year 2025 profit distribution: the Company plans to distribute a cash
dividend of RMB 5.5581 (including tax) for every 10 shares held. Based on the total
share capital of 854,581,922 shares as of December 31, 2025, the total cash dividend
distribution amounts shall be RMB 474,985,178. The cash dividend on B share shall be
paid in Hong Kong Dollars and converted at the middle rate of the HK dollar’s exchange
rate against RMB quoted by the People’s Bank of China on the first working day
following the relevant resolution adopted by the Company’s Annual Shareholders’
Meeting. The Board decides not to convert the capital reserve to the share capital this
time. The proposal is subject to the approval of the Company’s 2025 annual
shareholders’ meeting.
Other Employee Incentive Method
□Applicable ?Not Applicable
There was neither equity incentive plan or ESOP, nor other employee incentive
method during the reporting period.
period
(1) Internal control construction and implementation
According to the requirements of the Basic Standard for Enterprise Internal Control
(C-SOX) along with its Application Guidelines and Internal Control Guidelines for
Public Companies listed on the Shenzhen Stock Exchange jointly issued by the
Ministry of Finance and China Security Regulation Commission, the Company has
established a set of sound and effective internal control system, and at the same
time, combined with the internal and external environment, internal institutions and
management requirements, so as to make the internal control system design
scientific, simple, applicable and effective operation.
The Company has reasonably planned the organizational structure, and established
a control structure with the full participation of the Audit Committee, Executive
Committee, senior management and business level under the leadership of the
Board of Directors. The company has established a "Three Lines of Defense"
internal control system: First Line: Various business/functional departments directly
identify and manage risks in daily operations, assuming primary responsibility.
Second Line: Risk management/compliance departments such as Legal, Quality,
and Safety formulate policies, supervise, coordinate, and provide professional
support. Third Line: The Audit Committee has an audit department, which
supervises and evaluates the operation of the Company's internal control system
through internal audit.
Through the operation, analysis and evaluation of the internal control system, the
Company has effectively prevented the risks in the operation and management, and
promoted the realization of the internal control objectives.
This year, the Company's internal control can cover the main aspects of the
Company's operation and management without major omissions; the units,
businesses and matters and high-risk areas included in the evaluation scope cover
the main aspects of the Company's operation and management without major
omissions.
(2) Major defect of internal control in the reporting period
□Yes ?No
period
□Applicable ?Not Applicable
During the reporting period, the Company has not purchased new subsidiaries.
(1) Internal Control Self-Assessment Report
Issuance date March 28, 2026
Index www.cninfo.com.cn
Total value of assets of the
entities in scope counts as % of
that disclosed in the consolidated
financial statements
Total value of operating revenue
of the entities in scope counts
as % of that disclosed in the
consolidated financial statements
Deficiency Determination Criteria
Type Type Type
Material Weakness: An error that
changes the trend of results,
Material Weakness: Unscientific
changes profit to loss or loss to
decision making process such as
profit; Ineffective anti-fraud process
incorrect decisions that result in
or any fraud involving senior
unsuccessful mergers and
management; Ineffective control
acquisitions; Major regulatory
over accounting policies; Ineffective
compliance issues; Frequent
oversight by the Audit Committee
media reports harmful to the
Significant Deficiency: Errors in
Company’s reputation; A lack of
management reporting systems or
control within key business
Corporate accounting records that
processes or systematic
could lead to incorrect management
breakdown of control policies;
decisions; Actions inconsistent with
Material weakness identified in
Company values, policies, approval
Qualitative Criteria the self-assessment without any
authorities and other Corporate
action plan implemented
guidelines that are likely to
Significant Deficiency: a control
significantly impact cost, quality,
deficiency, or combination of
customer satisfaction, reputation, or
control deficiencies, that does not
competitive advantage; Significant
meet; The criteria for material
control issues in IT infrastructure or
weakness but deserves the
applications that creates significant
concerns of the Audit Committee
risk to corporate assets or
and the Board of Directors
processes; Identification of fraud of
Minor Deficiency: Any control
a significant magnitude or theft that
deficiencies that do not meet the
is significant in value
criteria for material or significant
Minor Deficiency: Any control
deficiencies that do not meet the
criteria for material or significant
Material Weakness: Misstatement in
the Financial Report is more than
annual sales revenue in the latest
audited consolidated Financial
Statements, the lower of the two Please refer to internal control
indicators above deficiency over financial reporting
Quantitative Criteria
Significant Deficiency: Misstatement for the criteria for non-financial
in the Financial Report is more than reporting internal control.
the annual sales revenue in the
latest audited consolidated Financial
Statements, the lower of the two
indicators above
Minor Deficiency: All the deficiencies
that don’t meet the quantitative
criteria for significant
Number of Material Weakness in
financial report
Number of Material Weakness in
non-financial report
Number of Significant Deficiency in
financial report
Number of Significant Deficiency in
non-financial report
(2). Internal Control Audit Report
?Applicable □Not Applicable
Opinions in the Internal Control Audit Report
The comments in the Internal Control Audit Report issued by Ernst & Young Hua Ming
LLP are as follows: On December 31, 2025, JMC maintained effective internal control of
financial reporting in all major aspects in accordance with the Basic Code for Enterprise
Internal Control and relevant provisions.
Disclosure of Internal Control Audit Report Disclosed
Issuance Date March 28, 2026
Index www.cninfo.com.cn
Type of Opinion Standard and unqualified opinions
Major Defect Regarding Non-financial Report or not No
Abnormal opinion issued by the accounting firm
□Yes ?No
Whether the Opinion issued by the accounting firm keeps the same with that of self-
assessment report made by the Board?
?Yes □No
Whether a non-standard audit opinion on internal control was issued during the
reporting period or the previous year.
□Yes ?No
the governance of listed companies
After the Company's self-inspection, the Company’s overall compliance operation
was found to be in order and no rectification was found.
Whether the listed company and its major subsidiaries are included in the list of
enterprises required to disclose environmental information in accordance with the
law.
?Applicable □Not Applicable
Number of enterprises included in the accordance with the law 1
environmental information disclosure list (units)
Serial Environmental Information Disclosure Report
Company name
Number Index
Jiangling Motors Management Information Platform
Corporation, Ltd. https://permit.mee.gov.cn/permitExt/defaults/defa
ult-index!getInformation.action
Platform
http://117.40.240.237:10086/index.jsp
https://www.creditchina.gov.cn/
Details are contained in the Company's Environmental, Social and Governance
(ESG) Report, which was disclosed on March 28, 2026.
revitalization
JMC actively fulfils its corporate social responsibility by fully participating in rural
revitalization. Through diversified cooperation models and empowerment initiatives,
the Company contributes solid strength to building a new pattern of urban-rural
integration and common prosperity.
The Company continues to use "consumption assistance" as a key entry point,
deepening the model of "industrial chain collaboration + public welfare
empowerment." This year, the Company precisely connected with and procured a
variety of high-quality agricultural products through the "purchase instead of
assistance" approach, including yellow peaches from Luoyang Village, Suichuan
County, Jiangxi Province and Xinfeng navel oranges, with a cumulative
procurement volume exceeding 24,000 units, totalling RMB 1.38 million. This
effectively supported the stable development of rural specialty industries and
stimulated the endogenous momentum of the local economy.
In 2025, JMC once again donated RMB 2 million to build 13 convenient bridges in
Yongshun County of Hunan Province, Ningdu County of Jiangxi Province, and
Xinfeng County of Jiangxi Province. The “JMC Xiqiao Project”, initiated in 2007 by
the China Foundation for Rural Development and Jiangling Motors Corporation, Ltd.,
has adhered to the mission of "Building Rural Bridges, Connecting Revitalization
Roads" for nearly 20 years. By the end of 2025, JMC has invested over RMB 43.9
million in the project, donating and constructing 465 bridges across 132 counties in
rural residents in underdeveloped areas.
Chapter V Major events
(1) Commitments of actual controlling parties, shareholders, related parties,
acquirers and the Company finished in the reporting period or overdue unfinished
by the end of the reporting period
□Applicable ?Not Applicable
There is no commitment of actual controlling parties, shareholders, related parties,
acquirers and the Company finished in the reporting period or overdue unfinished
by the end of the reporting period.
(2) Earnings forecast of the assets or project and the explanations
□Applicable ?Not Applicable
(3) The company is involved in performance commitments.
□Applicable ?Not Applicable
its affiliates
□Applicable ?Not Applicable
There was no non-operating funding in the Company occupied by controlling
shareholder and its affiliates.
□Applicable ?Not Applicable
The Company had no illegal outside guarantee during the reporting period.
Report"
□Applicable ?Not Applicable
Directors to abnormal opinions from accounting firm
□Applicable ?Not Applicable
of major accounting errors compared to the financial report of the previous year
□Applicable ?Not Applicable
The Company had no changes in accounting policies, accounting estimates, or
material accounting error corrections during the reporting period.
with the financial statements of the previous year
□Applicable ?Not Applicable
There was no change in the scope of the consolidated statements during the
reporting period.
Current appointed accounting firm
Name Ernst & Young Hua Ming LLP
Compensation (RMB’000) 1,770
Consecutive years offering audit services 2
Names of signed accountants Qiao Chun, Yuan Yong
Consecutive years offering audit
Qiao Chun 2 years, Yuan Yong 2 years
services of signed accountants
Dismissal of accounting firm
□Yes ?No
Appointment of C-SOX auditor, financial consultant or sponsor
?Applicable □Not Applicable
Upon the approval of 2024 Third Special Shareholders’ Meeting, JMC appointed
Ernst & Young Hua Ming LLP as JMC’s 2024 to 2026 C-SOX auditor. In 2025, JMC
paid RMB 430 thousand to Ernst & Young Hua Ming LLP for the C-SOX audit.
□Applicable ?Not Applicable
□Applicable ?Not Applicable
There was no matter involving bankruptcy during the reporting period.
□Applicable ?Not Applicable
There was no major litigation or arbitration during the reporting period.
□Applicable ?Not Applicable
Neither JMC nor its Directors or senior management were punished by regulatory
authorities during the reporting period.
party
□Applicable ?Not Applicable
(1) Routine related party transactions
Please refer to the Note 8 related party transactions of the notes to the consolidated
financial statements in the Chapter VIII Financial Statements for details.
(2) Major related party transaction concerning transfer of assets or equity
□Applicable ?Not Applicable
There was no major related party transaction concerning transfer of assets or
equity in the reporting period.
(3) Related party transaction concerning outside co-investment
Please refer to the details in Section VI, "17. Other Major Events " in this report.
(4) Related credit and debt
?Applicable □Not Applicable
Is there non-operating related credit and debt?
□Yes ?No
The Company had no non-operating related credit and debt in the reporting
period.
(5) Transaction with related financial companies or financial companies that the
company holds
?Applicable □Not Applicable
Deposit business
Balance at Current amount
Balance at
the
Maximum Deposit Take out the the end of
Related The related beginning of
daily deposit Deposit rate amount amount the period
party relationship the
limit (RMB (RMB (RMB
period(RMB
thousands) thousands) thousands)
thousands)
Wholly-
JMCG
owned 0.85%-
Finance * 1,407,600 14,073,010 13,888,120 1,592,490
subsidiary of 1.55%
Company
JMCG
* Note: JMC applies the consolidated deposit limit in JMCG Finance Company at
the end of each month to the lower of the following: 1) 25% of JMCG Finance
Company absorbed deposits in prior year end; or 2) 12% of JMC’s consolidated
total cash reserve.
Loan business
Balance at Current amount
the Balance at
loan limit Loan beginning Loan Repayment the end of
Related The related
(RMB rate of the amount amount the period
party relationship
thousands) range period (RMB (RMB (RMB
(RMB thousands) thousands) thousands)
thousands)
Wholly-
JMCG
owned
Finance 1,300,000 0 0 0 0
subsidiary
Company
of JMCG
Granting credit or other financial business
The related Total (RMB Actual amount
Related party Type of business
relationship thousands) (RMB thousands)
JMCG Finance Wholly-owned
Granting credit 1,300,000 0
Company subsidiary of JMCG
(6) The transactions between the financial company controlled by the company and
its related parties
□Applicable ?Not Applicable
The Company has no controlling financial company.
(7) Other major related party transactions
?Applicable □Not Applicable
Information on the disclosure website of the interim report of major related party
transactions:
Disclosure Date Website for
Name Disclosure
Public Announcement on Related Party 2025.05.30 www.cninfo.com.cn.
Transactions
Public Announcement on Proposed Capital
Increase in the Controlled Subsidiary and 2025.09.24 www.cninfo.com.cn.
Related Party Transactions
Public Announcement on Forecast of the 2025.12.23 www.cninfo.com.cn.
Routine Related Party Transactions in 2026
(1) Entrustment, contract or lease
a. Entrustment
□Applicable ?Not Applicable
There was no entrustment in the reporting period.
b. Contract
□Applicable ?Not Applicable
There was no contract in the reporting period.
c. Lease
?Applicable □Not Applicable
Please refer to the Note 5 (14), Note 5 (16), note 5 (32), Note 5 (63) and note 8 (5)
(b) of the financial statements in the Chapter VIII Financial Statements for detail.
Project of which the profit and loss brought to the company reaches more than 10%
of the total profit of the company during the reporting period
□Applicable ?Not Applicable
There was no leasing project of which the profit and loss brought to the Company
reached more than 10% of the total profit of the Company during the reporting period.
(2) Major guarantee
□Applicable ?Not Applicable
The Company had no outside guarantee in the reporting period.
(3) Entrustment on cash asset management
a. Trust investment
□Applicable ?Not Applicable
There was no trust investment in the reporting period.
b. Entrusted loan
□Applicable ?Not Applicable
There was no entrusted loan in the reporting period.
(4) Other major contract
□Applicable ?Not Applicable
There was no other major contract in the reporting period.
□Applicable ?Not Applicable
There was no usage of raised fund in the reporting period.
?Applicable □Not Applicable
Matters regarding the Company's share repurchase
The Company's Board of Directors reviewed and approved the "Proposal on the
Repurchase of the Company's A-Shares" in form of paper meeting from April 10 to
April 11, 2025.
Please refer to the relevant announcements disclosed on the website
http://www.cninfo.com.cn for details.
Name Disclosure Date
JMC Public announcement on the Repurchase of A-Shares 2025.04.14
JMC Share Repurchase Report 2025.04.16
JMC Public announcement on Shareholding of the Top Ten
Shareholders and Top Ten Unrestricted Condition Shareholders 2025.04.16
Regarding the Share Repurchase
JMC Public announcement on the Initial Repurchase of
Company Shares
JMC Public announcement on Progress of Share Repurchase 2025.05.07
JMC Public announcement on Progress of Share Repurchase 2025.06.04
JMC Public announcement on Progress of Share Repurchase 2025.07.03
JMC Public announcement on Progress of Share Repurchase 2025.08.05
JMC Public announcement on Progress of Share Repurchase 2025.09.03
JMC Public announcement on Completion of Share Repurchase
and Changes in Shareholding
?Applicable □Not Applicable
Matters regarding the Company's capital increase to its controlling subsidiary and
related-party transactions
The Board of Directors of the Company reviewed and approved, in form of paper
meeting on September 22, 2025, the Distribution Service Contract for JMC Brand
Vehicles among the Company, Jiangling Motor Sales Co., Ltd. and Ford Motor
Sales Service (Shanghai) Co., Ltd., as well as the Revision and Restatement of the
Joint Venture and Shareholders' Agreement of Jiangling Ford Automobile
Technology (Shanghai) Co., Ltd. (2025) between the Company and Ford.
Please refer to the Public Announcement on Proposed Capital Increase in the
Controlled Subsidiary and Related Party Transactions published on September 24,
Chapter VI Share Capital Changes & Shareholders
I. Table of the changes of shareholding structure
Before the change Change (+, -) After the change
Proportion New Reserve- Proportion
Bonus
Shares of total share converted Others Subtotal Shares of total
Shares
shares (%) s shares shares (%)
I. Limited tradable
A shares
shares
Including:
Domestic legal
person shares
Domestic natural
person shares
II. Unlimited
tradable shares
III. Total 863,214,000 100.00% 863,214,000 100.00%
Causes of shareholding changes
□Applicable ?Not Applicable
Approval of changes of shareholding structure
□Applicable ?Not Applicable
Shares Transfer
□Applicable ?Not Applicable
Impact on accounting data, such as the latest EPS, diluted EPS, shareholders’
equity attributable to the equity holders of the Company, generated from shares
transfer
□Applicable ?Not Applicable
Others to be disclosed necessarily or per the requirements of securities regulator
□Applicable ?Not Applicable
II. Changes of limited A shares
□Applicable ?Not Applicable
I. Securities issuance (not including preferred shares) in the reporting period
□Applicable ?Not Applicable
II. Explanation on changes of shares, shareholding structure, assets and liabilities
structure
□Applicable ?Not Applicable
III. Current staff shares
□Applicable ?Not Applicable
I. Total shareholders, top ten shareholders, and top ten shareholders holding
unlimited tradable shares
Total shareholders as JMC had 39,701 shareholders, including 33,919 A-share holders, and 5,782 B-share
of the end of the holders, as of December 31, 2025.
reporting period
Total shareholders as JMC had 40,373 shareholders, including 34,594 A-share holders, and 5,779 B-share
of the last month-end holders, as of February 28, 2026.
prior to the disclosure
date of the Report
Top ten shareholders
Shares
Shares
Shareholding Shares at due to
Shareholder Change with
Shareholder Name Percentage the End of mortgage
Type (+,-) Trading
(%) Year or mark
Restriction
or frozen
Nanchang Jiangling State-owned
Investment Co., Ltd. legal person
Foreign legal
Ford Motor Company 32.00% 276,228,394 0 0 0
person
Hong Kong Securities
Foreign legal
Clearing Company 1.10% 9,520,669 -15,889,340 0 0
person
Ltd. (HKSCC)
Domestic
Jin Xing 0.62% 5,327,900 -508,800 0 0
Natural Person
Industrial and
Commercial Bank of
China Limited - Domestic non-
Guolian Superior State-owned 0.58% 5,028,101 5,028,101 0 0
Industry Mixed legal persons
Securities Investment
Fund
China Merchants
Foreign legal
Securities (HK) Co., 0.54% 4,619,475 -348,100 0 0
person
Ltd.
Bank of China Limited
- E Fund Hong Kong
Stock Connect Domestic non-
Dividend Flexible State-owned 0.34% 2,907,400 2,907,400 0 0
Allocation Mixed legal persons
Securities Investment
Fund
China Merchants Bank
Co., Ltd. - E Fund Domestic non-
Value Return Mixed State-owned 0.24% 2,099,400 2,099,400 0 0
Securities Investment legal persons
Fund
Industrial and
Commercial Bank of
China Limited - HTFTZ Domestic non-
Intelligent State-owned 0.24% 2,069,224 2,069,224 0 0
Manufacturing Stock legal persons
Securities Investment
Fund
China Merchants Bank
Co., Ltd. - China
Southern CSI 1000 Domestic non-
Exchange Traded State-owned 0.22% 1,916,630 200,100 0 0
Open-End Index legal persons
Securities Investment
Fund
Strategic investors or general legal persons become the top 10
None.
shareholders due to the placement of new shares
Notes on association among above-mentioned shareholders None.
Description of the above shareholders' entrusted/entrusted voting
None.
rights and waived voting rights
JMC Share Repurchase Special
Securities Account holds 8,632,078 A
A special description of the special repurchase account among the top
shares of the Company, representing
the Company.
Top ten shareholders holding unlimited tradable shares
Shareholder Name Shares without Trading Restriction Share Type
Nanchang Jiangling Investment Co., Ltd. 354,176,000 A share
Ford Motor Company 276,228,394 B share
Hong Kong Securities Clearing Company Ltd. (HKSCC) 9,520,669 A share
Jin Xing 5,327,900 B share
Industrial and Commercial Bank of China Limited - Guolian
Superior Industry Mixed Securities Investment Fund
China Merchants Securities (HK) Co., Ltd. 4,619,475 B share
Bank of China Limited - E Fund Hong Kong Stock Connect
Dividend Flexible Allocation Mixed Securities Investment 2,907,400 A share
Fund
China Merchants Bank Co., Ltd. - E Fund Value Return
Mixed Securities Investment Fund
Industrial and Commercial Bank of China Limited - HTFTZ
Intelligent Manufacturing Stock Securities Investment Fund
China Merchants Bank Co., Ltd. - China Southern CSI 1000
Exchange Traded Open-End Index Securities Investment 1,916,630 A share
Fund
Explanation of the association or concerted action between the top 10 unlimited tradable
shareholders, and between the top 10 unlimited tradable shareholders and the top 10 None.
shareholders
description of shareholders participating in financing and securities financing business None.
Participation of Shareholders holding more than 5% of shares, top 10
shareholders and top 10 shareholders with unlimited shares in the lending of
shares in the refinancing business
□Applicable ?Not Applicable
Change in the top 10 shareholders of the Company and the top 10 shareholders
with unlimited shares from the previous period due to lending/repatriation of
refinancing business
□Applicable ?Not Applicable
Stock buy-back by top ten shareholders or top ten shareholders holding unlimited
tradable shares in the reporting period
□Applicable ?Not Applicable
The top 10 common shareholders of the Company and the top 10 common
shareholders with unlimited conditions of sale did not conduct agreed repurchase
transactions during the reporting period.
II. Controlling Shareholders
Nature of controlling shareholders: Central/Local government holdings, foreign
holdings
Type: Legal person
Legal Establishe Organization
Name Main scope of business
representative d Date code
investment management, industrial
Nanchang Jiangling May 28, 91360125MA
Qiu Tiangao investment, asset management
Investment Co., Ltd. 2019 38LUR91F
and other business.
to design, manufacture, market,
and service a full line of Ford cars,
trucks, sport utility vehicles
(“SUVs”), electrified vehicles, and
Ford Motor William Clay January 1, Lincoln luxury vehicles, provide
Company Ford, Jr. 1903 financial services through Ford
Motor Credit Company LLC, and
pursue leadership positions in
electrification, autonomous
vehicles, and mobility solutions.
Equity status of other listed companies in domestic and abroad
market controlled and participated by the controlling shareholders None
during the reporting period
Change of controlling shareholders
□Applicable ?Not Applicable
The controlling shareholders of the Company did not change during the reporting
period.
III. Actual Controlling Parties
Nature of controlling shareholders: Central/Local State-owned Assets Supervision
and Administration
Type: Legal person
Legal Established Organization
Name Main scope of business
representative Date code
manufacturing of automobiles, engines,
chassis, specialty vehicle, transmission, other
products, automotive quality testing, sales of
self-produced products and raw materials,
equipment, electronic products, parts and
JMCG Qiu Tiangao July 27, 1991 others, as well as related after-sales services
and maintenance services; development of
products derived from JMC brand light
vehicle; overseas auto project-contracting,
export equipment, material and related labour
services.
development, manufacturing, sales, import &
Chongqing
export business of auto (including sedan),
Changan October 31, 9150000020
Zhu Huarong engine, automotive components, die, tools,
Automobile 1996 286320X6
installation of machinery, technological
Co., Ltd.
consultant services, among others.
Equity status of listed companies in domestic and
abroad market controlled by the actual controlling None
parties during the reporting period
Change of actual controlling parties
□Applicable ?Not Applicable
There was no change of actual controlling parties in the reporting period.
Ownership and control relations between the Company and the actual controlling
parties are shown as follows:
SASAC
Nanchang State-owned Assets
Supervision and Administration
Committee
Chongqing Changan Automobile Co., Ltd. JMCG
Nanchang Jiangling Investment Co., Ltd. Ford Motor Company
Jiangling Motors Co., Ltd.
Actual controlling parties control the Company by the way of trust or other assets
management
□Applicable ?Not Applicable
IV. The cumulative number of shares pledged by the controlling shareholder or the
largest shareholder and its acting partners accounts for 80% of the number of
shares held by them.
□Applicable ?Not Applicable
V. Other legal person shareholder holding more than 10% of total equity of the
Company
□Applicable ?Not Applicable
VI Shareholding reducing restriction to controlling shareholders, actual controlling
parties, restructuring parties and other commitment-making entities
□Applicable ?Not Applicable
The implementation progress of share repurchase
?Applicable □Not Applicable
Plan disclosure date 2025.04.14
Proposed number of shares to be 6,818.2 thousand shares – 9,090.9
repurchased (shares) thousand shares
Proportion of total share capital 0.8%-1%
Proposed repurchase amount RMB 150 million - RMB 200 million
Within 12 months after the Board of
Proposed repurchase period
Directors' approval
For employee stock ownership
Purpose of repurchase
plans or equity incentives
Number of shares repurchased (shares) 8,632,078
Proportion of repurchased shares to the
underlying shares involved in the equity Not applicable
incentive plan
The implementation progress of the reduction of the shares repurchase through
centralized bidding
□Applicable ?Not Applicable
□Applicable ?Not Applicable
JMC had no preferred shares in the reporting period.
Chapter VII Bond related Information
□Applicable ?Not Applicable
Chapter VIII Financial Statements
Type of Audit Report Standard and Unqualified Opinion
Signature date March 27, 2026
Name of Auditor Ernst & Young Hua Ming LLP
Document No. of Audit Report Ernst & Young Hua Ming (2026) Shen Zi
No. 70038404_V01
JIANGLING MOTORS CORPORATION, LTD.
FINANCIAL STATEMENTS AND
AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
[English translation for reference only. Should there be any inconsistency between the
Chinese and English versions, the Chinese version shall prevail.]
AUDITOR’S REPORT
Ernst & Young Hua Ming (2026) Shen Zi No. 70038404_V01
Jiangling Motors Corporation, Ltd.
To the board of directors of Jiangling Motors Corporation, Ltd.
(I) Opinion
We have audited the financial statements of Jiangling Motors Corporation, Ltd. (the “Company”), which
comprise the consolidated and company balance sheets as at 31 December 2025, and the consolidated
and company income statements, the consolidated and company statements of changes in equity and the
consolidated and company statements of cash flows for the year then ended, and notes to the financial
statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
consolidated and the Company’s financial position as at 31 December 2025, and the consolidated and
the Company’s financial performance and cash flows for the year then ended in accordance with
Accounting Standards for Business Enterprises (“ASBEs”).
(II) Basis for opinion
We conducted our audit in accordance with China Standards on Auditing (“CSAs”). Our responsibilities
under those standards are further described in the Auditor’s responsibilities for the audit of the financial
statements section of our report. We are independent of the Company in accordance with the Chinese
CPA Independence Standard No. 1 — Requirements for Independence in Financial Statement Audit and
Review Engagements and the China Code of Ethics for Certified Public Accountants (the “Code”), and we
have fulfilled our other ethical responsibilities in accordance with the Code. We complied with the
independence requirements for audits of public interest entities during the audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
(III) Key audit matter
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of
our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. For each matter below, our description of how our audit addressed
the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial
statements section of our report, including in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of the risks of material misstatement
of the financial statements. The results of our audit procedures, including the procedures performed to
address the matters below, provide the basis for our audit opinion on the accompanying financial
statements.
AUDITOR’S REPORT (continued)
Ernst & Young Hua Ming (2026) Shen Zi No. 70038404_V01
Jiangling Motors Corporation, Ltd.
(III) Key audit matter (Cont’d)
Key Audit Matter How our audit addressed Key Audit Matter
Expenditure on research and development
? R&D expenditure in 2025 was The audit procedures we performed on expenditures on
RMB1,490,447,935, of which research and development included:
RMB274,444,396 was capitalized
as R&D expenditure. As at 31 ? We understood and evaluated the design of internal
December 2025, the balance of controls related to expenditures on research and
development expenditure was development, and tested the operation effectiveness of the
RMB57,594,483. key controls;
? We obtained breakdown of expenditures on research and
? We recognize R&D expenditure as development by project and reconciled them with amounts
a key audit matter because the recorded in general ledger;
R&D expenditure is significant, ? We understood the cost allocation method of research and
part of which is capitalized, and the development projects, reviewed the results of allocation of
assessment of whether the indirect expenses, and verified the reasonableness the
capitalization conditions are met indirect expenses attributable to relevant projects,
involves significant accounting including payrolls, depreciation and amortization
judgments from management expenses;
regarding the technical feasibility ? We compared costs components across different projects
of the project, the likelihood that and incurred research and development costs with
the project will bring sufficient corresponding budgets, and evaluated the progress of the
future economic benefits, and the different projects by interviewing with project managers on
timing of the capitalization a sampling basis;
commencement. ? For projects which expenditures on research and
development were capitalised, we understood the criteria
? See notes 3(14), 5(18) and 5(48) to and timing of capitalisation determined by management;
the financial statements. we checked the feasibility reports of different projects and
interviewed with relevant project managers, reviewed the
verification reports and meeting minutes at different
research and development stages to further confirm the
reasonableness of the judgment made by management;
and we assessed the technical feasibility of the
development projects and the likelihood of the generating
of sufficient future economic benefits by considering
market information and the Company's successful
development experience in the past;
? We tested expenditures on research and development on
a sampling basis by obtaining and inspecting documents,
including contracts and invoices, to verify and evaluate the
relevance with research and development activities, the
reality of occurrence, the accuracy of amount and the
reasonableness of classification;
? We reviewed and confirmed the relevant expenditure on
research and development has been sufficiently disclosed
in financial statement.
AUDITOR’S REPORT (continued)
Ernst & Young Hua Ming (2026) Shen Zi No. 70038404_V01
Jiangling Motors Corporation, Ltd.
(IV) Other information
Management of Jiangling Motors is responsible for the other information. The other information comprises
all of the information included in 2025 annual report of Jiangling Motors other than the financial statements
and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regarded.
(V) Responsibilities of the management and those charged with governance for the financial
statements
The management of the Company is responsible for the preparation and fair presentation of the financial
statements in accordance with ASBEs, and for designing, implementing and maintaining such internal
control as the management determines is necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting, unless the management either intends to liquidate the Company or to
cease operations or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
(VI) Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with CSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are generally considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
AUDITOR’S REPORT (continued)
Ernst & Young Hua Ming (2026) Shen Zi No. 70038404_V01
Jiangling Motors Corporation, Ltd.
(VI) Auditor’s responsibilities for the audit of the financial statements (Cont’d)
As part of an audit in accordance with CSAs, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt on the Company’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events or conditions may cause the Company
to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an opinion on the financial statements. We are
responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matter's that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
AUDITOR’S REPORT (continued)
Ernst & Young Hua Ming (2026) Shen Zi No. 70038404_V01
Jiangling Motors Corporation, Ltd.
Ernst & Young Hua Ming LLP Chinese Certified Public Accountant: Terence Qiao
Chinese Certified Public Accountant: Derek Yuan
Beijing, the People’s Republic of China 27 March 2026
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY BALANCE SHEETS
AS AT 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
Notes 2025 2024 2025 2024
ASSETS
Consolidated Consolidated Company Company
Current assets
Cash and cash equivalents 5(1) 13,582,540,346 12,546,295,890 10,966,453,363 9,269,593,792
Financial assets held for trading 5(2) 801,902,466 - - -
Derivative financial assets 5(3) - 12,612,380 - 12,612,380
Notes receivable 5(4) - 226,865 1,500,000,000 1,500,226,865
Accounts receivable 6,141,405,767 4,181,008,234 6,264,582,609 5,521,047,573
Financing receivables 5(6) 205,851,591 302,065,502 150,902,273 18,070,384
Advances to suppliers 5(7) 98,624,060 94,749,172 98,624,060 94,749,172
Other receivables 134,768,377 54,013,240 134,906,584 144,617,207
Inventories 5(9) 2,011,925,708 2,054,517,242 2,008,282,424 2,046,549,034
Current portion of non-current assets 5(11) 27,153,632 20,784,738 1,631,907 15,161,497
Other current assets 5(10) 1,194,944,928 1,228,372,977 956,607,104 777,406,955
Total current assets 24,199,116,875 20,494,646,240 22,081,990,324 19,400,034,859
Non-current assets
Long-term receivables 5(12) 71,519,964 18,533,908 - 1,584,891
Long-term equity investments 203,641,921 219,298,031 654,295,851 771,951,961
Fixed assets 5(14) 5,789,423,822 5,749,474,005 5,065,812,739 5,111,224,814
Construction in progress 5(15) 507,614,873 661,911,780 333,295,118 582,757,760
Right-of-use assets 5(16) 120,243,307 158,485,688 118,037,006 142,207,976
Intangible assets 5(17) 1,790,269,138 1,811,454,853 1,584,170,614 1,596,623,962
Development expenditures 5(18) 57,594,483 188,103,430 57,594,483 188,103,430
Goodwill 5(21) - - - -
Deferred tax assets 5(19) 980,954,002 1,530,144,365 - -
Other non-current assets 5(20) 4,912,712 7,860,340 4,912,712 7,860,340
Total non-current assets 9,526,174,222 10,345,266,400 7,818,118,523 8,402,315,134
TOTAL ASSETS 33,725,291,097 30,839,912,640 29,900,108,847 27,802,349,993
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY BALANCE SHEETS
AS AT 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
LIABILITIES AND EQUITY Notes 2025 2024 2025 2024
Consolidated Consolidated Company Company
Current liabilities
Short-term borrowings 5(22) 1,950,000,000 1,500,000,000 1,500,000,000 1,500,000,000
Derivative financial liabilities 5(3) 695,349 - 695,349 -
Notes payable 5(23) 427,292,904 - 427,292,904 -
Accounts payable 5(24) 11,397,760,484 10,061,223,944 11,393,769,153 10,047,585,502
Contract liabilities 5(25) 545,864,754 467,704,291 1,315,151,000 536,871,795
Employee benefits payable 5(26) 729,156,434 780,174,574 646,304,675 672,858,988
Taxes payable 5(27) 132,698,441 265,198,389 121,268,279 256,969,632
Other payables 5(28) 5,803,694,871 5,739,064,167 2,231,605,558 2,130,094,497
Current portion of non-current liabilities 5(29) 91,863,024 86,155,114 89,799,585 81,053,594
Other current liabilities 5(30) 304,431,406 341,548,441 183,977,806 98,829,073
Total current liabilities 21,383,457,667 19,241,068,920 17,909,864,309 15,324,263,081
Non-current liabilities
Long-term borrowings 5(31) 460,276 941,453 460,276 941,453
Lease liabilities 5(32) 44,860,116 93,752,634 43,797,509 82,241,628
Provisions 5(33) 255,436,677 287,165,703 5,561,579 3,553,345
Deferred income 5(34) 13,406,177 61,202,010 13,039,843 61,202,010
Long-term employee benefits payable 5(35) 49,853,000 59,342,000 49,674,000 58,991,000
Deferred tax liabilities 5(19) 123,918,738 130,301,876 105,804,342 111,616,233
Other non-current liabilities 5(36) 461,860,038 370,793,523 - -
Total non-current liabilities 949,795,022 1,003,499,199 218,337,549 318,545,669
Total liabilities 22,333,252,689 20,244,568,119 18,128,201,858 15,642,808,750
Equity
Share capital 5(37) 863,214,000 863,214,000 863,214,000 863,214,000
Capital surplus 5(38) 839,442,490 839,442,490 839,442,490 839,442,490
Less:Treasury shares 5(39) 170,214,887 - 170,214,887 -
Other comprehensive income 5(40) (23,862,000) (26,388,000) (24,258,000) (26,738,000)
Special reserve 5(41) 7,860,966 5,371,093 5,783,345 5,147,194
Surplus reserve 5(42) 431,607,000 431,607,000 431,607,000 431,607,000
Retained earnings 5(43) 9,752,190,648 9,179,333,271 9,826,333,041 10,046,868,559
Total equity attributable to
shareholders of the Company
Minority interests (308,199,809) (697,235,333) - -
Total equity 11,392,038,408 10,595,344,521 11,771,906,989 12,159,541,243
TOTAL LIABILITIES AND EQUITY 33,725,291,097 30,839,912,640 29,900,108,847 27,802,349,993
Legal representative: Qiu Tiangao CFO: Weihua Li Finance Department: Hu Hanfeng
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY INCOME STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
Item Notes
Consolidated Consolidated Company Company
Revenue 5(44)、15(4) 39,169,909,929 38,374,160,748 37,858,884,526 37,937,081,015
Less: Cost of sales 5(44)、15(4) (33,851,518,907) (32,951,745,144) (33,306,979,297) (32,466,245,873)
Taxes and surcharges 5(45) (1,169,905,869) (1,467,445,089) (1,149,453,477) (1,420,441,384)
Selling and distribution expenses 5(46) (899,660,536) (1,058,948,593) (145,280,055) (109,668,687)
General and administrative expenses 5(47) (1,050,129,082) (943,622,568) (967,222,169) (834,480,512)
Research and development expenses 5(48) (1,216,003,539) (1,314,579,423) (1,216,003,539) (1,314,579,423)
Financial expenses 5(49) 132,096,412 152,310,137 125,129,216 105,404,859
Including: Interest expenses (18,280,197) (20,304,855) (10,397,368) (19,811,045)
Interest income 164,866,232 198,915,297 144,788,938 150,980,757
Add: Other income 5(52) 583,377,975 514,430,051 578,021,129 512,394,471
Investment income 5(53)、15(5) (5,686,487) (942,269) (7,905,202) (5,236,433)
Including: Share of loss of associates and
(15,656,110) (10,363,917) (15,656,110) (10,363,917)
joint ventures
Gains on changes in fair value 5(54) (7,231,516) 13,071,686 (9,313,221) 13,071,686
Credit impairment losses 5(51) (1,910,728) 9,638,212 (476,945,140) 6,068,224
Asset impairment losses 5(50) (349,554,195) (66,600,824) (922,664,466) (66,600,824)
Gains on disposal of assets 5(55) 61,968,391 3,317,046 64,146,027 3,469,920
Operating profit 1,395,751,848 1,263,043,970 424,414,332 2,360,237,039
Add: Non-operating income 5(56) 4,696,937 5,043,793 1,622,167 3,032,110
Less: Non-operating expenses 5(57) (5,314,402) (9,980,157) (5,305,358) (7,121,776)
Total profit 1,395,134,383 1,258,107,606 420,731,141 2,356,147,373
Less: Income tax expenses 5(58) (575,761,665) (52,930,797) (26,658,317) (296,806,600)
Net profit 819,372,718 1,205,176,809 394,072,824 2,059,340,773
Classified by continuity of operations
Net profit from continuing operations 819,372,718 1,205,176,809 394,072,824 2,059,340,773
Net profit from discontinued operations - - - -
Classified by ownership of the equity
Minority interests (368,093,001) (331,962,215) - -
Attributable to shareholders of the
Company
Other comprehensive income, net of tax 2,526,000 (5,816,000) 2,480,000 (5,759,000)
Attributable to shareholders of the Company
Other comprehensive income items
which will not be reclassified to profit or
loss
Changes arising from remeasurement
of defined benefit plan
Attributable to minority interests - - - -
Total comprehensive income 821,898,718 1,199,360,809 396,552,824 2,053,581,773
Attributable to shareholders of the
Company
Attributable to minority interests (368,093,001) (331,962,215) - -
Earnings per share
Basic earnings per share (RMB Yuan) 5(59) 1.38 1.78 —— ——
Diluted earnings per share (RMB Yuan) 5(59) 1.38 1.78 —— ——
Legal representative: Qiu Tiangao CFO: Weihua Li Finance Department: Hu Hanfeng
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
Item Note
Consolidated Consolidated Company Company
Cash flows generated from operating activities
Cash received from sales of goods or rendering of
services
Refunds of taxes 300,055,222 263,289,557 300,055,222 263,289,557
Cash received relating to other operating activities 5(60) 539,638,048 329,215,516 477,169,456 225,142,211
Sub-total of cash inflows 41,357,728,740 41,944,318,317 39,939,648,851 39,854,191,964
Cash paid for goods and services (31,635,725,091) (32,088,398,075) (30,368,792,074) (30,904,745,276)
Cash paid to and on behalf of employees (2,801,582,122) (2,690,580,651) (2,622,880,082) (2,474,503,947)
Payments of taxes and surcharges (2,497,343,017) (2,668,968,974) (2,470,227,125) (2,466,735,213)
Cash paid relating to other operating activities 5(60) (2,011,167,220) (1,862,986,400) (1,163,215,891) (1,095,294,099)
Sub-total of cash outflows (38,945,817,450) (39,310,934,100) (36,625,115,172) (36,941,278,535)
Net cash flows generated from operating activities 5(61) 2,411,911,290 2,633,384,217 3,314,533,679 2,912,913,429
Cash flows used in investing activities
Cash received from disposal on investments 55,000,000 800,000,000 183,363,000 -
Cash received from returns of investments 264,648 9,035,441 - 4,136,400
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets
Cash received relating to other investing activities 5(60) 164,435,257 218,305,076 125,309,812 158,686,106
Sub-total of cash inflows 266,597,930 1,055,877,570 347,216,586 185,188,235
Cash paid to acquire fixed assets intangible assets and
(1,088,237,558) (1,810,776,307) (1,075,561,680) (1,811,006,047)
other long-term assets
Cash paid to acquire investments (855,000,000) (600,000,000) (97,087,000) (94,113,000)
Cash paid relating to other investing activities (783,382) (4,445,964) (783,382) (4,445,964)
Sub-total of cash outflows (1,944,020,940) (2,415,222,271) (1,173,432,062) (1,909,565,011)
Net cash flows used in investing activities (1,677,423,010) (1,359,344,701) (826,215,476) (1,724,376,776)
Cash flows generated from/(used in) financing activities
Cash received from absorbing investments 752,534,436 - - -
Including: cash received by the subsidiary from absorbing
minority shareholders' investment
Cash received from borrowings 4,879,157,250 3,078,140,000 3,945,540,555 2,992,390,000
Sub-total of cash inflows 5,631,691,686 3,078,140,000 3,945,540,555 2,992,390,000
Cash repayments of borrowings (4,521,974,413) (2,813,318,287) (3,950,474,413) (2,813,318,287)
Cash payments for distribution of dividends, profits or
(622,714,287) (599,144,621) (617,404,600) (599,144,621)
interest expenses
Cash paid relating to other financing activities 5(60) (205,513,075) (211,059,214) (200,828,585) (203,163,964)
Sub-total of cash outflows (5,350,201,775) (3,623,522,122) (4,768,707,598) (3,615,626,872)
Net cash flows generated from/(used in) financing
activities
Effect of foreign exchange rate changes on
- - - -
cash and cash equivalents
Net increase in cash and cash equivalents 5(61) 1,015,978,191 728,657,394 1,665,151,160 565,299,781
Add: Cash and cash equivalents at beginning of year 5(61) 12,475,176,009 11,746,518,615 9,214,091,023 8,648,791,242
Cash and cash equivalents at end of year 5(61) 13,491,154,200 12,475,176,009 10,879,242,183 9,214,091,023
Legal representative: Qiu Tiangao CFO: Weihua Li Finance Department: Hu Hanfeng
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
Attributable to shareholders of the parent company
Less: Other Minority
Item Note Capital Special Surplus Retained Total equity
Share capital Treasury comprehensive interests
surplus reserve reserve earnings
Stock income
Balance at 1 January 2024 863,214,000 839,442,490 - (20,572,000) 3,821,625 431,607,000 8,232,632,623 (365,273,118) 9,984,872,620
Movements for the year ended 31 December 2024 - - - (5,816,000) 1,549,468 - 946,700,648 (331,962,215) 610,471,901
Total comprehensive income
Net profit/(loss) - - - - - - 1,537,139,024 (331,962,215) 1,205,176,809
Other comprehensive income - - - (5,816,000) - - - - (5,816,000)
Total comprehensive income for the year - - - (5,816,000) - - 1,537,139,024 (331,962,215) 1,199,360,809
Profit distribution
Distribution to shareholders 5(43) - - - - - - (590,438,376) - (590,438,376)
Special reserves
Withdrawal this year - - - - 29,631,611 - - - 29,631,611
Used this year - - - - (28,082,143) - - - (28,082,143)
Balance at 31 December 2024 863,214,000 839,442,490 - (26,388,000) 5,371,093 431,607,000 9,179,333,271 (697,235,333) 10,595,344,521
Balance at 1 January 2025 863,214,000 839,442,490 - (26,388,000) 5,371,093 431,607,000 9,179,333,271 (697,235,333) 10,595,344,521
Movements for the year ended 31 December 2025 - - 170,214,887 2,526,000 2,489,873 - 572,857,377 389,035,524 796,693,887
Total comprehensive income
Net profit/(loss) - - - - - - 1,187,465,719 (368,093,001) 819,372,718
Other comprehensive income - - - 2,526,000 - - - - 2,526,000
Total comprehensive income for the year - - - 2,526,000 - - 1,187,465,719 (368,093,001) 821,898,718
Capital contributed by owners and capital decreases
Capital invested by shareholders - - - - - - - 757,128,525 757,128,525
Share Repurchase 5(39) - - 170,214,887 - - - - (170,214,887)
Profit distribution
Distribution to shareholders 5(43) - - - - - - (614,608,342) - (614,608,342)
Special reserve
Withdrawal this year - - - - 28,341,840 - - - 28,341,840
Used this year - - - - (25,851,967) - - - (25,851,967)
Balance at 31 December 2025 863,214,000 839,442,490 170,214,887 (23,862,000) 7,860,966 431,607,000 9,752,190,648 (308,199,809) 11,392,038,408
Legal representative: Qiu Tiangao CFO: Weihua Li Finance Department: Hu Hanfeng
JIANGLING MOTORS CORPORATION, LTD.
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
Less: Other
Capital Surplus
Share capital Treasury comprehensive Special reserve Retained earnings Total equity
Item Note surplus reserve
Stock income
Balance at 1 January 2024 863,214,000 839,442,490 - (20,979,000) 3,821,625 431,607,000 8,577,966,162 10,695,072,277
Movements for the year ended 31 December 2024 - - - (5,759,000) 1,325,569 - 1,468,902,397 1,464,468,966
Total comprehensive income
Net profit - - - - - - 2,059,340,773 2,059,340,773
Other comprehensive income - - - (5,759,000) - - - (5,759,000)
Total comprehensive income for the year - - - (5,759,000) - - 2,059,340,773 2,053,581,773
Profit distribution
Distribution to shareholders 5(43) - - - - - - (590,438,376) (590,438,376)
Special reserve
Withdrawal this year - - - - 29,407,712 - - 29,407,712
Used this year - - - - (28,082,143) - - (28,082,143)
Balance at 31 December 2024 863,214,000 839,442,490 - (26,738,000) 5,147,194 431,607,000 10,046,868,559 12,159,541,243
Balance at 1 January 2025 863,214,000 839,442,490 - (26,738,000) 5,147,194 431,607,000 10,046,868,559 12,159,541,243
Movements for the year ended 31 December 2025 - - 170,214,887 2,480,000 636,151 - (220,535,518) (387,634,254)
Total comprehensive income
Net profit - - - - - - 394,072,824 394,072,824
Other comprehensive income - - - 2,480,000 - - - 2,480,000
Total comprehensive income for the year - - - 2,480,000 - - 394,072,824 396,552,824
Capital contributed by owners and capital
decreases
Share Repurchase 5(39) - - 170,214,887 - - - - (170,214,887)
Profit distribution
Distribution to shareholders 5(43) - - - - - - (614,608,342) (614,608,342)
Special reserve
Withdrawal this year - - - - 26,488,118 - - 26,488,118
Used this year - - - - (25,851,967) - - (25,851,967)
Balance at 31 December 2025 863,214,000 839,442,490 170,214,887 (24,258,000) 5,783,345 431,607,000 9,826,333,041 11,771,906,989
Legal representative: Qiu Tiangao CFO: Weihua Li Finance Department: Hu Hanfeng
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Jiangling Motors Corporation, Ltd. (hereinafter “the Company”) is a Sino-foreign joint stock
enterprise established under the approval of Hong ban (1992) No. 005 of Nanchang
Revolution and Authorisation Group of Company’s Joint Stock on the basis of Jiangxi Motors
Manufacturing Factory on 16 June 1992. The address of its headquarters is Nanchang City,
Jiangxi Province of the People’s Republic of China (“the PRC”).
On 23 July 1993, with the approval of the China Securities Regulatory Commission
(hereinafter “CSRC”) (Zheng Jian Fa Shen Zi [1993] No. 22) and (Zheng Jian Han Zi [1993]
No. 86), the Company was listed on the Stock Exchange of Shenzhen on 1 December 1993,
issuing 494,000,000 shares in total. On 8 April 1994, a total of 25,214,000 shares were
distributed for the 1993 dividend distribution programme with the approval of the
shareholders’ meeting and Jiangxi Securities Management Leading Group (Gan Securities
[1994] No. 02). In 1995, with the approval of CSRC (Zheng Jian Fa Zi [1995] No. 144) and
the Shenzhen Securities Management Office (Shenzhen Zheng Ban Fu [1995] No. 92), the
Company issued 174,000,000 ordinary shares (“B shares”). In 1998, with the approval of
CSRC (Zheng Jian Guo Zi [1998] No. 19), the Company issued additional 170,000,000 B
shares.
According to the resolution of the shareholders’ meeting regarding the split share structure
reform on 11 January 2006, the Company implemented the Scheme on Split Share
Structure Reform on 13 February 2006. After the implementation, the Company’s total paid-
in capital remains the same. Related details are disclosed in Note 5(37).
As at 31 December 2025, the Company’s paid-in capital totalled RMB863,214,000, with par
value of RMB1 per share.
The actual principal business scope of the Company and its subsidiaries (hereinafter “the
Group”) includes production and sales of automobile assemblies such as automobiles,
special (modified) vehicles, engines and chassis and other automobile parts, and provision
of related after-sales services; import and export of automobiles and parts; dealership of
used cars; provision of enterprise management and consulting services related to
production, sales and rent of automobiles.
These financial statements were authorised for issue by the Company's Board of Directors
on 27 March 2026.
(1) Basis of preparation
The financial statements are prepared in accordance with the Accounting Standard for
Business Enterprises - Basic Standard, specific accounting standards and relevant
regulations and in subsequent periods (hereinafter collectively referred to as “the
Accounting Standards for Business Enterprises” or “CASs”) and the disclosure
requirements in the Preparation Convention of Information Disclosure by Companies
Offering Securities to the Public No.15 - General Rules on Financial Reporting issued by
CSRC.
(2) Going concern
These financial statements have been prepared on a going concern basis.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
The Group determines specific accounting policies and estimates based on the features of
its production and operation, which mainly comprise the measurement of expected credit
losses on receivables, valuation of inventories, Inventory write-down provision, depreciation
of fixed assets and amortisation of intangible assets and right-of-use assets, criteria for
capitalisation of development expenditures, impairment of long-term assets, recognition
and measurement of revenue, and government grants etc.
(1) Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the year ended 31 December 2025 are in
compliance with the Accounting Standards for Business Enterprises, and truly and
completely present the consolidated and company’s financial position of the Company as
at 31 December 2025 and their financial performance, cash flows and other information for
the year then ended.
(2) Accounting year
The Group's accounting year is a calendar year, i.e. from 1 January to 31 December each
year.
(3) Functional currency
The base currency of the Company and its subsidiaries and the currency used in the
preparation of these financial statements are RMB. Unless otherwise specified, they are
expressed in RMB.
(4) The determination method and selection basis of the material standard followed by financial
statement disclosure
Significant recovery or reversal of The amount of a single recovery or reversal
allowance for doubtful accounts exceeds 1% of the total amount of various
receivable receivables and is greater than RMB15 million.
Significant prepayments with an The amount of a single prepayment exceeds 10%
aging of over 1 year of the total amount of various prepayments and is
greater than RMB15 million.
Significant construction in progress The budget of a single project exceeds RMB 50
million.
Significant non-wholly owned The net assets of the subsidiary account for more
subsidiaries than 5% of the group’s net assets, or its net profit
impact reaches 10% or more of the group’s
consolidated net profit.
Significant associated companies The carrying value of long-term equity investment
in a single investee exceeds 5% of the group’s
net assets or is greater than RMB100 million, or
the investment income/loss under the equity
method accounts for 10% or more of the group’s
consolidated net profit.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Preparation of consolidated financial statements
The scope of consolidation of the consolidated financial statements is determined on a
control basis, including the financial statements of the Company and all of its subsidiaries.
"Subsidiary" refers to the entity controlled by the Company (including the divisible part of
the enterprise and the investee, as well as the structured entity controlled by the Company,
etc.). An investor can control an investee if and only if the investor has the following three
elements: the investor has authority over the investee; Variable returns for participation in
the investee's related activities; Ability to use power over the investee to influence the
amount of its return.
If the accounting policies or accounting periods adopted by the subsidiary are inconsistent
with those adopted by the Company, the financial statements of the subsidiary shall be
adjusted as necessary in accordance with the accounting policies and accounting periods
of the Company when preparing the consolidated financial statements. The assets,
liabilities, equity, revenues, expenses and cash flows arising from all transactions between
companies within the Group are fully offset at the time of the consolidation.
If the current loss shared by the minority shareholders of the subsidiary exceeds the share
of the minority shareholders in the shareholders' equity at the beginning of the period, the
balance shall still be offset against the minority shareholders' equity.
For subsidiaries acquired through a business combination not under common control, the
operating results and cash flows of the acquiree are included in the consolidated financial
statements from the date on which the Group acquires control until the termination of the
Group's control over them. In preparing the consolidated financial statements, the financial
statements of subsidiaries are adjusted on the basis of the fair value of the identifiable
assets, liabilities and contingent liabilities determined at the date of acquisition.
For subsidiaries acquired through a business combination under the same control, the
operating results and cash flows of the consolidated party are included in the consolidated
financial statements from the beginning of the current period of consolidation. When
compiling the comparative consolidated financial statements, the relevant items of the
previous financial statements are adjusted to be deemed to have existed since the ultimate
controller began to exercise control.
If changes in relevant facts and circumstances result in a change in one or more of the
control elements, the Group will reassess whether to control the investee.
Without loss of control, a change in minority shareholders' interests is treated as an equity
transaction.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(6) Cash and cash equivalents
Cash comprises the Group’s cash on hand and deposits that can be readily withdrawn on
demand. Cash equivalents are short-term, highly liquid investments that are readily
convertible into known amounts of cash, subject to an insignificant risk of changes in value.
(7) Foreign currency translation
The Group translates foreign currency transactions into its functional currency.
At the time of initial recognition of a foreign currency transaction, the amount in the foreign
currency is converted into the base currency of account using the spot exchange rate on
the date of the transaction, but the capital invested by the investor in the foreign currency is
converted at the spot exchange rate on the date of the transaction. At the balance sheet
date, the spot exchange rate at the balance sheet date is used for foreign currency monetary
items. The resulting differences in settlement and translation of monetary items shall be
included in profit or loss for the current period, except for the differences arising from special
foreign currency borrowings related to the acquisition and construction of assets eligible for
capitalization, which shall be treated in accordance with the principle of capitalization of
borrowing costs. Foreign currency non-monetary items measured at historical cost are still
translated using the exchange rate used at the time of initial recognition, and the amount in
the base currency of accounting remains unchanged. Foreign currency non-monetary items
measured at fair value are translated at the spot exchange rate on the date of fair value
determination, and the resulting difference is recognized in profit or loss or other
comprehensive income for the current period according to the nature of the non-monetary
items.
Cash flows in foreign currencies are translated using the spot exchange rate on the date of
the cash flows. The effect of exchange rate changes on cash is presented separately in the
statement of cash flows as a reconciliation item.
(8) 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. A financial asset or a financial liability
is recognised when the Group becomes a party to the contractual provisions of the
instrument.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(8) Financial instruments (Cont’d)
(a) Recognition and derecognition of financial instruments
The Group recognises a financial asset or financial liability when it becomes a party to a
contract for a financial instrument.
If the following conditions are met, the financial assets (or part of the financial assets, or
part of a group of similar financial assets) shall be derecognized, that is, the previously
recognized financial assets shall be transferred out of the balance sheet:
(1) Expiration of the right to receive cash flows from financial assets;
(2) transferred the right to receive cash flows from financial assets or assumed an obligation
under a "transfer agreement" to promptly pay the cash flows received in full to a third party;
and substantially transfers substantially all of the risks and rewards of ownership of a
financial asset, or, while substantially neither transferring nor retaining substantially all of
the risks and rewards of ownership of a financial asset, but relinquishes control of that
financial asset.
If the obligation for the financial liability has been fulfilled, cancelled or expired, the financial
liability is derecognized. If an existing financial liability is replaced by another financial
liability by the same creditor with substantially almost entirely different terms, or the terms
of the existing liability are substantially all modified, such replacement or modification is
treated as a derecognition of the original liability and recognition of a new liability, the
difference in profit or loss for the current period.
The purchase and sale of financial assets in the conventional way is recognized and
derecognized according to the accounting of the transaction date. The purchase or sale of
financial assets in a conventional manner means the purchase or sale of financial assets in
accordance with a contract that provides for the delivery of financial assets in accordance
with a schedule normally determined by regulations or market practice. A trading day is the
date on which the Group commits to buy or sell a financial asset.
(b) Classification and measurement of financial assets
At the time of initial recognition, the Group's financial assets are classified according to the
Group's business model of managing financial assets and the contractual cash flow
characteristics of financial assets: financial assets measured at amortized cost, investments
in debt instruments measured at fair value through other comprehensive income, and
financial assets measured at fair value through profit or loss. All affected underlying financial
assets will be reclassified if and only when the Group changes its business model for
managing financial assets.
Financial assets are measured at fair value at the time of initial recognition, but if the
accounts receivable or notes receivable arising from the sale of goods or the provision of
services, etc., do not contain a material financing component or do not consider the
financing component of no more than one year, the initial measurement shall be carried out
according to the transaction price.
For financial assets measured at fair value through profit or loss, the relevant transaction
costs are directly recognized in the current profit or loss, and the transaction costs related
to other types of financial assets are included in the initial recognition amount.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(8) Financial instruments (Cont’d)
(b) Classification and measurement of financial assets (Cont’d)
The subsequent measurement of a financial asset depends on its classification:
Investments in debt instruments measured at amortized cost
If a financial asset meets the following conditions at the same time, it is classified as a
financial asset measured at amortized cost: the business model for managing the financial
asset is to collect contractual cash flows as the goal; The contractual terms of the financial
asset provide that the cash flows generated on a specific date are only payments of principal
and interest based on the amount of principal not paid. Interest income is recognized using
the effective interest rate method for such financial assets, and the gains or losses arising
from their derecognition, modification or impairment are included in profit or loss for the
current period.
Investments in debt instruments at fair value through other comprehensive income
A financial asset is classified as a financial asset measured at fair value through other
comprehensive income if it meets the following conditions: the Group's business model for
managing the financial asset is to collect both contractual cash flows and sell financial
assets; The contractual terms of the financial asset provide that the cash flows generated
on a specific date are only payments of principal and interest based on the amount of
principal not paid. Interest income is recognized for such financial assets using the effective
interest rate method. Except for interest income, impairment losses and foreign exchange
differences, which are recognized as gains or losses for the current period, the remaining
fair value changes are recognized as other comprehensive income. When a financial asset
is derecognized, the accumulated gains or losses previously included in other
comprehensive income are transferred out of other comprehensive income and included in
profit or loss for the current period.
Financial assets at fair value through profit or loss
The above-mentioned financial assets measured at amortized cost and financial assets
other than those measured at fair value through other comprehensive income are classified
as financial assets measured at fair value through profit or loss. For such financial assets,
fair value is used for subsequent measurement, and all changes in fair value are recognized
in profit or loss for the current period.
(c) Classification and measurement of financial liabilities
At the time of initial recognition, the Group's financial liabilities are classified as follows:
financial liabilities at fair value through profit or loss, and financial liabilities at amortized
cost. For financial liabilities measured at fair value through profit or loss, the relevant
transaction expenses are directly recognized in the current profit or loss, and the relevant
transaction costs of the financial liabilities measured at amortized cost are included in their
initial recognition amount.
The subsequent measurement of financial liabilities depends on their classification:
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(8) Financial instruments (Cont’d)
(c) Classification and measurement of financial liabilities (Cont’d)
Financial liabilities at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss, including trading financial
liabilities (including derivatives that are financial liabilities) and financial liabilities designated
at fair value through profit or loss at the time of initial recognition. Trading financial liabilities
(including derivatives that are financial liabilities) are subsequently measured at fair value,
and all changes in fair value are recognized in profit or loss for the current period, except in
relation to hedge accounting. For financial liabilities designated as measured at fair value
through profit or loss, subsequent measurement is carried out at fair value, and other fair
value changes are included in profit or loss for the current period, except for the fair value
changes caused by changes in the Group's own credit risk, which are included in other
comprehensive income. If the inclusion of changes in fair value caused by changes in the
Group's own credit risk into other comprehensive income would cause or magnify the
accounting mismatch in profit or loss, the Group will include all changes in fair value (including
the amount affected by changes in its own credit risk) in profit or loss for the current period.
Financial liabilities measured at amortized cost
For such financial liabilities, the effective interest rate method is used, and the subsequent
measurement is carried out according to the amortized cost.
(d) Impairment of financial instruments
Methods for determining expected credit losses and accounting treatment methods
The Group conducts impairment treatment and recognizes loss provisions for financial assets
measured at amortized cost, debt instrument investments measured at fair value with
changes recognized in other comprehensive income, and lease receivables based on
expected credit losses.
For receivables that do not contain significant financing components, the Group applies a
simplified measurement method to measure the loss provision based on the expected credit
loss amount equivalent to the entire duration of the receivable.
For lease receivables and receivables that contain significant financing components, the
Group has chosen to apply a simplified measurement approach, measuring the loss provision
based on the expected credit loss amount equivalent to the entire duration of the receivable.
Apart from the aforementioned simplified measurement methods for financial assets, the
Group assesses at each reporting date whether the credit risk has significantly increased
since initial recognition. If the credit risk has not significantly increased since initial
recognition, it is classified as Stage 1, and the Group measures the loss allowance at an
amount equal to the expected credit losses over the next 12 months, calculating interest
income based on the carrying amount and the effective interest rate. If the credit risk has
significantly increased since initial recognition but no credit impairment has occurred, it is
classified as Stage 2, and the Group measures the loss allowance at an amount equal to
the expected credit losses over the entire lifetime, calculating interest income based on the
carrying amount and the effective interest rate. If credit impairment occurs after initial
recognition, it is classified as Stage 3, and the Group measures the loss allowance at an
amount equal to the expected credit losses over the entire lifetime, calculating interest
income based on amortized cost and the effective interest rate. For financial instruments
that have only low credit risk at the reporting date, the Group assumes that the credit risk
has not significantly increased since initial recognition.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Summaryofofsignificant
significantaccounting
accountingpolicies
policiesand
andaccounting
accountingestimates
estimates(Cont’d)
(Cont’d)
(8) Financial
Financialinstruments
instruments(Cont’d)
(Cont’d)
(d) Impairment
Impairmentofoffinancial instruments(Cont’d)
financialinstruments (Cont’d)
The Group's methodology for measuring expected credit losses on financial instruments
reflects factors such as the weighted average amount of unbiased probabilities determined by
evaluating a range of possible outcomes, the time value of money, and reasonable and
evidence-based information on past events, current conditions and projections of future
economic conditions that are available at the balance sheet date without unnecessary
additional cost or effort.
The credit risk characteristics of various types of financial assets for which the expected credit
losses are calculated separately are significantly different from those of other financial assets
in this category. When the information of expected credit losses cannot be assessed at a
reasonable cost for a single financial asset, the Group divides the receivables into several
portfolios based on the credit risk characteristics, calculates the expected credit losses on the
basis of the portfolio, and determines the basis and accrual method of the portfolio as follows:
Banker's Acceptance State-owned banks and joint-stock banks
Portfolio
Commercial Acceptance Customers who purchase using commercial acceptance bills
Bill Portfolio
The domestic general For domestic general automobile procurement customers, the
vehicle sales mix contractually agreed payment due date is used as the starting
point of overdue aging
Export general vehicle For export general automobile procurement customers, the
sales mix contractually agreed payment due date is used as the starting
point of overdue aging
New energy vehicle For new energy vehicle procurement customers, the
sales mix contractually agreed payment due date is used as the starting
point of overdue aging
Component sales mix For parts procurement customers, the contractually agreed
payment due date is used as the starting point of overdue aging
Other receivables Other receivables of the same nature
combinations
When the Group no longer reasonably expects to be able to recover all or part of the
contractual cash flows of financial assets, the Group directly writes down the carrying balance
of such financial assets.
(e) Financial Instrument Offset
If the following conditions are met at the same time, the financial assets and financial liabilities
are presented in the balance sheet as net amounts after offsetting each other: they have the
legal right to offset the recognized amount, and such legal right is currently enforceable; The
plan is to settle on a net basis, or at the same time to realise the financial asset and settle the
financial liability.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(8) Financial instruments (Cont’d)
(f) Derivative financial instruments
The Group uses derivative financial instruments. Derivative financial instruments are initially
measured at the fair value on the date of the signing of the derivative transaction contract,
and subsequently measured at their fair value. A derivative financial instrument with a positive
fair value is recognized as an asset, and a negative fair value is recognized as a liability.
Except in relation to hedge accounting, gains or losses arising from changes in the fair value
of derivatives are directly recognized in profit or loss for the current period.
(g) Transfer of financial assets
If the Group has transferred almost all of the risks and rewards in the ownership of financial
assets to the transferee, the recognition of such financial assets shall be terminated; Where
almost all of the risks and rewards in the ownership of financial assets are retained, the
recognition of the financial assets shall not be terminated.
If the Group neither transfers nor retains almost all of the risks and rewards in the ownership
of the financial assets, it shall be dealt with in the following cases: if it has relinquished control
of the financial assets, the financial assets shall be terminated and the assets and liabilities
arising therefrom shall be recognized; If the financial asset is not relinquished, the relevant
financial asset shall be recognized according to the extent to which it continues to be involved
in the transferred financial asset, and the relevant liabilities shall be recognized accordingly.
(9) Inventories
Inventory includes raw materials, work-in-progress, finished products, low-value
consumables, materials in transit and consignment materials.
Inventory is initially measured at cost. Inventory costs include procurement costs, processing
costs, and other costs. Inventories are issued, and their actual cost is determined using the
weighted average method. Low-value consumables are amortized using the one-time resale
method.
The inventory system adopts a perpetual inventory system.
At the balance sheet date, inventories are measured at the lower of cost and net realizable
value, and if the cost is higher than the net realizable value, a provision for inventory decline
is made and included in profit or loss for the current period. Net realizable value is the
estimated selling price of inventory in the ordinary course of business, less the estimated
costs to be incurred at completion, estimated selling expenses, and related taxes. Inventories
related to product lines manufactured and sold in the same region, with the same or similar
end use or purpose, and difficult to measure separately from other items, are provided for
inventory decline on a consolidated basis.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(10) Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its
subsidiaries, and the Group’s long-term equity investments in its associates.
Long-term equity investments are initially measured at the initial investment cost at the time
of acquisition. For a long-term equity investment obtained through a business combination
under the same control, the initial investment cost shall be the share of the carrying amount
of the owner's equity of the merged party in the consolidated financial statements of the
ultimate controlling party on the date of consolidation; The difference between the initial
investment cost and the carrying amount of the consolidation consideration shall be
adjusted to the capital reserve (if it is insufficient to offset the retained earnings). For long-
term equity investments obtained through a business combination not under common
control, the initial investment cost shall be the cost of the merger (if the business
combination of enterprises not under the same control is realized step by step through
multiple transactions, the sum of the carrying amount of the equity investment of the
acquiree held before the purchase date and the cost of the new investment on the purchase
date shall be the initial investment cost). For long-term equity investments obtained by
means other than those formed by business combinations, the initial investment costs shall
be determined in accordance with the following methods: if they are obtained by paying
cash, the initial investment costs shall be the purchase price actually paid and the expenses,
taxes and other necessary expenses directly related to the acquisition of the long-term
equity investment; If the issuance of equity securities is obtained, the fair value of the equity
securities issued shall be used as the initial investment cost.
The long-term equity investments that the Company is able to control the investee are
accounted for using the cost method in the Company's individual financial statements.
Control refers to having power over the investee, enjoying variable returns by participating
in the relevant activities of the investee, and having the ability to use the power over the
investee to influence the amount of returns.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(10) Long-term equity investments (Cont’d)
When the cost method is used, long-term equity investments are valued at the initial
investment cost. If the investment is increased or recovered, the cost of long-term equity
investment shall be adjusted. The cash dividends or profits declared by the investee are
recognized as investment income for the current period.
If the Group has a significant influence on the investee, the long-term equity investment is
accounted for by the equity method. Significant influence refers to having the power to
participate in decision-making on the financial and operational policies of the investee, but
not being able to control or jointly control the formulation of these policies with other parties.
When the equity method is adopted, if the initial investment cost of a long-term equity
investment is greater than the fair value share of the investee's identifiable net assets at the
time of investment, it shall be included in the initial investment cost of the long-term equity
investment; If the initial investment cost of a long-term equity investment is less than the fair
value share of the investee's identifiable net assets at the time of investment, the difference
shall be included in the profit or loss for the current period, and the cost of the long-term
equity investment shall be adjusted at the same time.
When the equity method is adopted, after the long-term equity investment is obtained, the
investment profit and loss and other comprehensive income shall be recognized separately
and the book value of the long-term equity investment shall be adjusted according to the
share of the net profit or loss and other comprehensive income realized by the investee that
should be enjoyed or shared. When recognizing the share of the investee's net profit or loss,
the investee's net profit shall be recognized after adjustment based on the fair value of the
investee's identifiable assets at the time of acquisition of the investment, in accordance with
the Group's accounting policies and accounting periods, and offsetting the share attributable
to the investor in proportion to the internal transaction gains and losses incurred with
associates (except that if the internal transaction loss is an asset impairment loss, it shall
be recognized in full), and the net profit of the investee shall be recognized after adjustment,
except that the assets invested or sold constitute business. The carrying amount of the long-
term equity investment shall be reduced accordingly based on the profits or cash dividends
declared by the investee. The Group recognises that the net loss incurred by the investee
is limited to the carrying amount of the long-term equity investment and other long-term
equity that substantially constitutes a net investment in the investee to be written down to
zero, unless the Group has the obligation to bear additional losses. For other changes in
shareholders' equity of the investee other than net profit or loss, other comprehensive
income and profit distribution, the book value of long-term equity investment shall be
adjusted and included in shareholders' equity.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(11) Fixed assets
Fixed assets are recognised only when the economic benefits associated with them are
likely to flow into the Group and their costs can be reliably measured. Subsequent expenses
related to fixed assets that meet the recognition conditions shall be included in the cost of
fixed assets, and the book value of the replaced part shall be derecognized; Otherwise, it
will be included in the current profit or loss or the cost of related assets according to the
beneficiary object when it occurs.
Fixed assets are initially measured at cost. The cost of acquiring a fixed asset includes the
purchase price, relevant taxes, and other expenses directly attributable to the asset incurred
before the fixed asset reaches its intended useable state.
The depreciation of fixed assets is calculated using the average life method, and the useful
life, estimated net residual value rate and annual depreciation rate of various types of fixed
assets are as follows:
Estimated net
residual Annual depreciation
Estimated useful lives values rates
Buildings 35 to 40 years 4% 2.4% to 2.7%
Machinery and
equipment 10 to 15 years 4% 6.4% to 9.6%
Vehicles 2 to 10 years 4% to 20% 9.6% to 40%
Moulds 5 years - 20%
Electronic and other
equipment 5 to 7 years 4% 13.7% to 19.2%
The estimated useful life and the estimated net residual value of a fixed asset and the
depreciation method applied to the asset are reviewed and adjusted as appropriate at each
year-end.
(12) Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction
costs, installation costs, borrowing costs that are eligible for capitalisation and other costs
necessary to bring the construction in progress ready for their intended use. Construction
in progress is transferred to fixed assets when the assets are ready for their intended use,
and depreciation is charged starting from the following month. The carrying amount of
construction in progress is reduced to the recoverable amount when the recoverable
amount is below the carrying amount (Note 3(15)).
The criteria for transferring construction in progress to fixed assets when they reach their
intended usable state are as follows:
The earlier of completion acceptance or actual
Buildings commencement of use.
The earlier of completion of installation and
Machinery and equipment acceptance or actual commencement of use.
The earlier of completion of installation and
Vehicles acceptance or actual commencement of use.
The earlier of completion of installation and
Moulds acceptance or actual commencement of use.
The earlier of completion of installation and
Electronic and other equipment acceptance or actual commencement of use.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(13) Borrowing costs
The borrowing costs that can be directly attributable to the acquisition, construction or
production of assets that meet the conditions for capitalization shall be capitalized, and other
borrowing costs shall be included in the profit or loss for the current period.
Borrowing costs are capitalized when capital expenditures and borrowing costs have been
incurred and the acquisition, construction or production activities necessary to bring the
asset to its intended usable or marketable condition have commenced.
When the acquisition, construction or production of assets eligible for capitalization reaches
the intended usable or saleable state, the borrowing costs shall cease to be capitalized.
Borrowing costs incurred thereafter are included in profit or loss for the current period.
During the capitalization period, the amount of interest capitalization in each accounting
period shall be determined according to the following method: the amount of special
borrowings shall be determined by deducting the interest income or investment income of
temporary deposits actually incurred in the current period; The general borrowings occupied
shall be calculated and determined on the basis of the weighted average of the accumulated
asset expenditures exceeding the portion of special borrowings multiplied by the weighted
average real interest rate of the general borrowings occupied.
In the process of acquisition, construction or production of assets eligible for capitalization,
if there is an abnormal interruption other than the procedures necessary to reach the
intended usable or saleable state, and the interruption period exceeds 3 consecutive
months, the capitalization of borrowing costs shall be suspended. Borrowing costs incurred
during the interruption period are recognized as expenses and are included in profit or loss
for the current period until the acquisition or construction of assets or production activities
resume.
(14) Intangible assets
(a) Useful life of intangible assets
Intangible assets are amortized using the straight-line method over their useful lives, and
their useful lives are as follows:
Estimated useful lives Basis for determination
Land use rights 50 years The term of the land use right
Software Usage Fees 5 years Estimated period of use
Non-patented Estimated period of use combined
technology with the product life span
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(14) Intangible assets (Cont’d)
(b) Research and development
The Group's R&D expenditure mainly includes the materials used by the Group in carrying
out R&D activities, the remuneration of employees in the R&D department, the depreciation
and amortization of assets such as equipment and software used in R&D, R&D design
expenses and R&D testing.
The expenses in the planned investigation, evaluation and selection stages for the study of
the production process of automobile-related products are the expenses in the research
stage and are included in the profit or loss for the current period when incurred; Before
large-scale production, the expenditure in the design and testing stages related to the final
application of the production process of automobile-related products is the expenditure in
the development stage, and if the following conditions are met, it shall be capitalized:
? The development of the production process of automobile-related products has been
fully demonstrated by the technical team;
? The management has the intention to complete the development, use or sale of the
production process of automotive-related products;
? The research and analysis of the preliminary market research shows that the products
produced by the production process of automobile-related products have the ability to
be marketed;
? Sufficient technical and financial support for the development of production processes
for automotive-related products and subsequent large-scale production; and
? Expenditures on the development of production processes for automotive-related
products can be reliably aggregated.
Expenses in the development stage that do not meet the above conditions shall be included
in the profit or loss for the current period when incurred. Development expenditures that have
been recognized in profit or loss in prior periods are not rerecognized as assets in
subsequent periods. Expenditures incurred in the development phase that have been
capitalized are shown on the balance sheet as development expenditures and are converted
into intangible assets from the date on which the project reaches its intended use.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(15) Impairment of assets
The impairment of assets other than inventories, deferred income tax and financial assets
shall be determined according to the following methods: whether there are signs of possible
impairment of assets at the balance sheet date, and if there are signs of impairment, the
Group will estimate the recoverable amount and conduct impairment tests; Impairment tests
shall be carried out at least at the end of each year for goodwill formed as a result of
business combinations, intangible assets with indefinite useful lives and intangible assets
that have not yet reached a usable state, regardless of whether there is any indication of
impairment.
The recoverable amount is determined based on the higher of the fair value of the asset
less disposal costs and the present value of the asset's projected future cash flows. The
Group estimates its recoverable amount on a single asset basis; Where it is difficult to
estimate the recoverable amount of a single asset, the recoverable amount of the asset
group shall be determined on the basis of the asset group to which the asset belongs. The
determination of the asset group is based on whether the main cash inflow generated by
the asset group is independent of other assets or the cash inflow of the asset group.
When the recoverable amount of an asset or asset group is lower than its carrying amount,
the Group writes down its carrying amount to the recoverable amount, and the written down
amount is included in the profit or loss for the current period, and the corresponding asset
impairment provision is made.
For the impairment test of goodwill, the carrying amount of goodwill is allocated to the
relevant asset group or combination of asset groups in a reasonable manner from the date
of purchase. The relevant asset group or combination of asset groups is the asset group or
combination of asset groups that can benefit from the synergies of the business
combination, and is not larger than the operating segment determined by the Group.
Compare the carrying amount and recoverable amount of the asset group or asset group
combination containing goodwill, if the recoverable amount is lower than the book value,
the impairment loss amount shall first be offset against the carrying amount of the goodwill
allocated to the asset group or asset group combination, and then the carrying amount of
other assets shall be offset proportionally according to the proportion of the carrying amount
of other assets in the asset group or asset group portfolio except goodwill.
Once the above-mentioned asset impairment loss is recognized, it will not be reversed in
subsequent accounting periods.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(16) Employee compensation
Employee remuneration refers to various forms of remuneration or compensation given by
the Group for the services provided by employees or for the termination of employment
relations, including short-term remuneration, post-employment benefits and severance
benefits.
(a) Short-term compensation
Short-term remuneration includes wages, bonuses, allowances and subsidies, employee
welfare expenses, medical insurance premiums, work-related injury insurance premiums,
housing provident fund, trade union and education funds, short-term paid absences, etc.
During the accounting period in which employees provide services, the Group recognises
the actual short-term remuneration as a liability and includes it in the profit or loss for the
current period or the cost of related assets. Among them, non-monetary benefits are
measured at fair value.
(b) Post-employment benefits
The Group classifies post-employment benefit plans into defined contribution plans and
defined benefit plans. A defined deposit and withdrawal plan is a post-employment benefit
plan in which the Group is no longer obligated to make further payments after depositing a
fixed fee into an independent fund; A defined benefit plan is a post-employment benefit plan
in addition to a defined contribution plan. During the reporting period, the basic endowment
insurance and unemployment insurance paid for employees were all part of the set deposit
plan. Supplemental retirement benefits for employees are defined benefit plans.
(i) Defined contribution plans
Basic pensions
The Group’s employees participate in the basic pension plan set up and administered by
local authorities of Ministry of Human Resources and Social Security. Monthly payments of
premiums on the basic pensions are calculated according to the bases and percentage
prescribed by the relevant local authorities. When employees retire, the relevant local
authorities are obliged to pay the basic pensions to them. The amounts based on the above
calculations are recognised as liabilities in the accounting period in which the service has
been rendered by the employees, with a corresponding charge to the profit or loss for the
current period or the cost of relevant assets.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(16) Employee compensation (Cont’d)
(ii) Defined benefit plans
The Group also provides employees with supplementary retirement benefits in addition to
the insurance system prescribed by the State. Such supplementary retirement benefits
belong to defined benefit plans. The defined benefit liabilities recognised on the balance
sheet represent the present value of defined benefit obligations less the fair value of the plan
assets. The defined benefit obligations are calculated annually by an independent actuary
using projected unit credit method at the interest rate of treasury bonds with similar obligation
term and currency. Service costs related to supplementary retirement benefits (including
current service costs, historical service costs and settled gains or losses) and net interest
are recognised in profit or loss for the current period or the cost of related assets, and
changes arising from remeasurement of net liabilities or net assets of defined benefit plans
are recognised in other comprehensive income.
(c) Termination benefits
The Group provides compensation for terminating the employment relationship with
employees before the end of the employment contracts or as an offer to encourage
employees to accept voluntary redundancy before the end of the employment contracts. The
Group recognises a liability arising from compensation for termination of the employment
relationship with employees, with a corresponding charge to profit or loss for the current
period at the earlier of the following dates: 1) when the Group cannot unilaterally withdraw
an employment termination plan or a curtailment proposal; 2) when the Group recognises
costs or expenses for a restructuring that involves the payment of termination benefits.
Internal retirement benefits
The Group provides internal retirement benefits to employees who have received internal
retirement arrangements. Internal retirement benefits refer to the wages paid and social
insurance premiums paid to employees who have not reached the retirement age prescribed
by the state and who have voluntarily quit their jobs with the approval of the Group's
management. The Group pays internal retirement benefits to employees from the date of
commencement of the internal retirement arrangement until the employees reach the normal
retirement age. For the internal retirement benefits, the Group will account for the retirement
benefits by comparison, and when the conditions for the recognition of the retirement
benefits are met, the wages and social insurance premiums to be paid by the employees
during the period from the date of cessation of the employee's services to the normal
retirement date will be recognized as liabilities and included in the profit or loss for the current
period in a lump sum. Changes in actuarial assumptions for retirement benefits and
differences caused by adjustments to benefit standards are recognized in profit or loss for
the current period when they occur.
Severance benefits expected to be paid within one year from the balance sheet date are
shown as remuneration payable to employees.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(17) Provisions
Provisions for product warranties, compensation to suppliers, etc. are recognised when the
Group has a present obligation, it is probable that an outflow of economic benefits will be
required to settle the obligation, and the amount of the obligation can be measured reliably.
A provision is initially measured at the best estimate of the expenditure required to settle
the related present obligation. Factors on a contingency, such as the risks, uncertainties
and the time value of money, are taken into account as a whole in reaching the best estimate
of a provision. Where the effect of the time value of money is material, the best estimate is
determined by discounting the related future cash outflows. The increase in the discounted
amount of the provision arising from passage of time is recognised as interest expense.
The carrying amount of provisions is reviewed at each balance sheet date and adjusted to
reflect the current best estimate.
The provisions expected to be settled within one year since the balance sheet date are
classified as other current liabilities.
(18) Revenue
The Group sells automobiles and automobile parts to distributors or end customers. In
addition, the Group also provides customers with auto maintenance and additional quality
warranty services. The Group recognises revenue at the amount of the consideration that
is entitled to be charged by the Group as expected when the customer obtains control over
relevant goods or services.
Where two or more obligations are included in a contract between the Group and the
customers, at the beginning date of the contract, the Group allocates the transaction price
to individual obligation in the relative proportion to the individual selling prices of products
or services committed in each individual obligation. When the individual selling price is
unobservable, the Group makes reasonable estimates on the individual selling price with
comprehensive consideration to all available information, and by using market adjustment
method, cost plus method, etc.
(a) Sale of automobiles and automobile parts to distributors and end customers
The Group sells automobiles and automobile parts to distributors and end customers.
According to the contract, the delivery is completed after the products are delivered at the
contracted delivery location and acceptance by both parties. The Group recognises the
revenue at the timing of delivery completion.
The credit periods granted by the Group to distributors and end customers are generally
within one year, which is consistent with the industry practice, and there is no significant
financing component. The Group provides product warranties for automobiles and
automobile parts as required by laws and regulations and recognises the corresponding
provisions (Note 3(17)).
The Group provides distributors and end customers with sales discounts based on sales
volume, and related revenue is recognised at contract consideration net of the discount
amount estimated based on historical experience and using the expected value method.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(18) Revenue (Cont’d)
(b) Rendering of services
The Group provides customers with automobile transportation, automobile maintenance
and additional quality warranty services, and the revenue is recognised based on the
progress of service provision within a certain period. According to the nature of the service
provided, the performance progress is determined in accordance with the value of the labour
provided to the customer.
When the Group recognises revenue based on the stage of completion, the amount with
unconditional collection right obtained by the Group is recognised as accounts receivable,
and the rest is recognised as contract assets. Meanwhile, loss provision for accounts
receivable is recognised on the basis of ECL (Note 3(8)). If the contract price received or
receivable exceeds the amount for the completed service, the excess portion will be
recognised as contract liabilities. Contract assets and contract liabilities under the same
contract are presented on a net basis.
(19) Government grants
Government subsidies are recognized when the conditions attached to them can be met and
can be received. If the government subsidy is a monetary asset, it shall be measured
according to the amount received or receivable. If the government subsidy is a non-monetary
asset, it shall be measured at fair value; If the fair value cannot be reliably obtained, it shall
be measured according to the nominal amount.
If the government documents stipulate that it is used for the acquisition, construction or other
formation of long-term assets, it shall be regarded as a government subsidy related to the
assets; If the government documents are not clear, the judgment shall be made on the basis
of the basic conditions that must be met to obtain the subsidy, and the basic condition of the
formation of long-term assets through acquisition, construction or other means shall be
regarded as the government subsidy related to the assets, and the other shall be regarded
as the government subsidy related to the income.
If the government subsidy related to the income is used to compensate for the relevant costs,
expenses or losses in subsequent periods, it shall be recognized as deferred income, and
shall be included in the profit or loss for the current period or offset the relevant costs in the
period in which the relevant costs, expenses or losses are recognized; If it is used to
compensate for the relevant costs, expenses or losses that have been incurred, it shall be
directly included in the profit or loss for the current period or offset the relevant costs.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(19) Government grants (Cont’d)
Asset-related government subsidies to offset the carrying amount of the underlying assets;
or recognized as deferred income, which shall be included in profit or loss in instalments in
a reasonable and systematic manner during the useful life of the relevant asset (except that
the government subsidy measured according to the nominal amount shall be directly
included in the profit or loss for the current period), and if the relevant asset is sold,
transferred, scrapped or damaged before the end of its useful life, the balance of the relevant
deferred income that has not yet been distributed shall be transferred to the profit or loss of
the current period of asset disposal.
If the finance department allocates the subsidized funds to the lending bank, and the lending
bank provides loans to the Group at a preferential policy interest rate, the actual amount of
the borrowed money received shall be used as the recorded value of the borrowing, and the
relevant borrowing costs shall be calculated according to the principal of the loan and the
preferential interest rate of the policy.
(20) Deferred income tax
The Group adopts the balance sheet obligation method to provide deferred income tax
based on the temporary differences between the carrying amount of assets and liabilities at
the balance sheet date and the tax base, as well as the difference between the carrying
amount and the tax basis of items that are not recognized as assets and liabilities but whose
tax basis can be determined in accordance with the provisions of the tax law.
Deferred tax liabilities are recognized for all kinds of taxable temporary differences, unless:
? A taxable temporary difference arises in the following transactions: the initial
recognition of goodwill, or the initial recognition of assets or liabilities arising in a single
transaction that is not a business combination, the transaction occurs that does not
affect neither the accounting profit nor the taxable income or deductible loss, and the
assets and liabilities initially recognized do not result in the creation of an equal amount
of taxable temporary differences and deductible temporary differences;
? For taxable temporary differences related to investments in subsidiaries and
associates, the timing of the reversal of the temporary difference is controllable and
the temporary difference is likely not to be reversed in the foreseeable future.
For deductible temporary differences, deductible losses and tax credits that can be carried
forward to future years, the Group recognises deferred tax assets to the extent that it is
likely to obtain future taxable income to offset the deductible temporary differences,
deductible losses and tax credits, unless:
? A deductible temporary difference arises in a single transaction that is not a business
combination, the transaction does not affect the accounting profit or taxable income or
deductible loss at the time of the transaction, and the assets and liabilities initially
recognized do not result in the creation of an equal amount of taxable temporary
difference and a deductible temporary difference;
? For deductible temporary differences related to investments in subsidiaries and
associates, the temporary differences are likely to be reversed in the foreseeable future
and taxable income to be used to offset the temporary differences is likely to be
obtained in the future.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(20) Deferred income tax (Cont’d)
The Group's deferred tax assets and deferred tax liabilities are measured at the applicable
tax rate during the period in which the assets are expected to be recovered or the liabilities
are liquidated in accordance with the provisions of the tax law, and reflect the income tax
impact of the expected recovery of assets or the settlement of liabilities at the balance sheet
date.
At the balance sheet date, the Group reviews the carrying amount of deferred tax assets
and writes down the carrying amount of deferred tax assets if it is likely that sufficient taxable
income will not be available in future periods to offset the benefits of deferred tax assets. At
the balance sheet date, the Group re-evaluates the unrecognised deferred tax assets to the
extent that it is likely to obtain sufficient taxable income to be able to reverse all or part of
the deferred tax assets.
Deferred tax assets and deferred tax liabilities are presented on a net basis when the
following conditions are met: they have the legal right to settle current income tax assets
and current income tax liabilities on a net basis; Deferred tax assets and deferred tax
liabilities are related to the income tax levied by the same tax collection and administration
department on the same taxable entity.
(21) Leases
At the commencement date of the contract, the Group assesses whether the contract is a
lease or a included lease and if a party to the contract relinquishes the right to control the
use of one or more identified assets for a certain period of time in exchange for
consideration, the contract is a lease or a included lease.
(a) As the lessee
In addition to short-term leases and leases of low-value assets, the Group recognises right-
of-use assets and lease liabilities for leases.
If the contract includes both lease and non-lease parts, the Group shall apportion the
contract consideration according to the relative proportion of the individual prices of each
part.
At the commencement date of the lease term, the Group recognises its right to use the
leased asset during the lease term as a right-of-use asset, which is initially measured at
cost. The cost of a right-of-use asset includes: the initial measurement amount of the lease
liability; the amount of the lease payment paid on or before the start date of the lease term
(less the amount in relation to the lease incentive received); Initial direct expenses incurred
by the lessee; The costs that the lessee expects to incur in order to dismantle and remove
the leased asset, restore the premises on which the leased asset is located, or restore the
leased asset to the condition agreed in the terms of the lease. If the Group remeasures
lease liabilities due to changes in lease payments, the carrying amount of right-of-use
assets will be adjusted accordingly. Subsequently, the Group adopted the average life
method to provide depreciation for right-of-use assets. If it can be reasonably determined
that the ownership of the leased assets will be acquired at the end of the lease term, the
Group shall accrue depreciation during the remaining useful life of the leased assets. If it is
not reasonably certain that the ownership of the leased assets can be obtained at the end
of the lease term, the Group shall accrue depreciation during the period between the lease
term and the remaining useful life of the leased assets.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(21) Leases (Cont’d)
(a) As the lessee(Cont’d)
At the commencement date of the lease term, the Group recognises the present value of
the outstanding lease payments as lease liabilities, excluding short-term leases and leases
of low-value assets. Lease payments include fixed payments and substantial fixed
payments net of lease incentives, variable lease payments depending on the index or ratio,
expected payments based on the residual value of the guarantee, and the exercise price of
the purchase option or the exercise of the termination option, provided that the Group
reasonably determines that the option will be exercised or the lease term reflects that the
Group will exercise the lease termination option. Variable lease payments that are not
included in the measurement of lease liabilities are recognized in profit or loss for the current
period when actually incurred, unless otherwise specified in the cost of the relevant assets.
The Group remeasures lease liabilities based on the present value of the changed lease
payments when there is a change in the amount of the real fixed payment, a change in the
estimated amount payable for the residual value of the guarantee, a change in the index or
ratio used to determine the amount of the lease payment, and a change in the evaluation
result or actual exercise of the option to purchase, renew or terminate the option.
The Group recognises a lease with a lease term of not more than 12 months and without a
purchase option as a short-term lease on the commencement date of the lease term; When
a single leased asset is a brand new asset, a lease with a lower value is recognized as a
lease of a low-value asset. The Group chooses not to recognise right-of-use assets and
lease liabilities for short-term leases and leases of low-value assets. The cost of the relevant
asset or current profit or loss is recognized on a straight-line basis for each period of the
lease term.
(b) As the lessor
Leases that transfer substantially all of the risks and rewards associated with ownership of
the leased assets at the lease commencement date are finance leases, and all other leases
are operating leases.
The rental income from operating leases is recognized as profit or loss for the current period
on a straight-line basis for each period of the lease term, and the variable lease payments
that are not included in the lease receipts are recognized in the profit or loss for the current
period when actually incurred. Initial direct expenses are capitalised and amortized over the
lease term on the same basis as rental income recognition, and are included in profit or loss
for the current period.
On the commencement date of the lease term, the Group recognized the financial lease
receivables for the financial lease and terminated the recognition of the financial lease
assets. When the Group initially measures the financial lease receivables, the net lease
investment is used as the recorded value of the financial lease receivables. Net lease
investment is the sum of the unsecured residual value and the present value of lease
receipts not yet received at the start date of the lease term discounted at the interest rate
embedded in the lease, including initial direct costs. The Group calculates and recognises
interest income for each period of the lease term at a fixed periodic interest rate. Variable
lease payments made by the Group that are not included in the measurement of net lease
investments are recognized in profit or loss for the current period when they are actually
incurred.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(22) Safety production fee
The safety production fee withdrawn in accordance with the regulations shall be included in
the cost of the relevant product or the current profit or loss, and shall be included in the
special reserve; When using, distinguish whether fixed assets are formed and deal with
them separately: if it is an expense expenditure, it will directly offset the special reserves; If
fixed assets are formed, the expenses incurred shall be collected, and the fixed assets shall
be recognized when they reach the intended usable state, and the equivalent special
reserves shall be written off and the equivalent accumulated depreciation shall be
recognized.
(23) Fair value measurement
Assets and liabilities measured or disclosed at fair value in the financial statements are
determined based on the lowest level of inputs that are material to the fair value
measurement as a whole: Level 1 inputs, which are unadjusted quotes in active markets for
the same assets or liabilities that can be obtained at the measurement date; Level 2 inputs,
which are directly or indirectly observable inputs for related assets or liabilities other than
Level 1 inputs; The third level of input value, the unobservable input value of the relevant
asset or liability.
At each balance sheet date, the Group re-evaluates the assets and liabilities recognized in
the financial statements at fair value on an ongoing basis to determine whether there is a
transition between the levels of fair value measurement.
(24) Critical accounting estimates and judgements
The preparation of financial statements requires management to make judgments,
estimates and assumptions that affect the amounts and disclosures of income, expenses,
assets and liabilities, as well as the disclosure of contingent liabilities at the balance sheet
date. The results of these uncertainties in assumptions and estimates may result in
significant adjustments to the carrying amounts of the assets or liabilities affected in the
future.
(a) Critical judgements in applying the accounting policies
In applying the Group's accounting policies, management has made the following
judgments that have a material impact on the amounts recognized in the financial
statements:
Business model
The classification of financial assets at the time of initial recognition depends on the Group's
business model for managing financial assets, and in determining the business model, the
Group considers the manner in which the performance of financial assets is evaluated and
reported to key management personnel, the risks affecting the performance of financial
assets and how they are managed, and the manner in which relevant business managers
are remunerated. In assessing whether the objective is to collect contractual cash flows,
the Group needs to analyze and determine the reason, timing, frequency and value of the
sale of financial assets before the maturity date.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(24) Critical accounting estimates and judgements (Cont’d)
(a) Critical judgements in applying the accounting policies(Cont’d)
Characteristics of contractual cash flows
The classification of financial assets at the time of initial recognition depends on the
contractual cash flow characteristics of the financial assets, and it is necessary to determine
whether the contractual cash flows are only the payment of principal and interest based on
the outstanding principal, whether there is a significant difference compared with the
benchmark cash flow when the time value of money is included in the assessment of the
time value of money, and whether the fair value of the prepayment feature is very small in
the case of financial assets containing prepayment features.
Judgment of a significant increase in credit risk and credit impairment that has occurred
In distinguishing the different stages of financial instruments, the Group's judgment on the
significant increase in credit risk and the credit impairment that has occurred is as follows:
The Group's main criteria for judging a significant increase in credit risk are that the number
of overdue days exceeds 30 days, or there is a significant change in one or more of the
following indicators: the debtor's business environment, internal and external credit ratings,
significant changes in actual or expected operating results, and a significant decline in the
value of collateral or the credit rating of the guarantor that will affect the probability of default.
The Group's main criteria for judging that credit impairment has occurred are that the
number of overdue days exceeds 90 days (i.e., default has occurred), or one or more of the
following conditions are met: the debtor has significant financial difficulties, undergoes other
debt restructuring or is likely to go bankrupt.
(b) Uncertainty in the estimate
The following are key assumptions about the future at the balance sheet date and other key
sources of uncertainty in the estimates that may result in significant adjustments to the
carrying amounts of assets and liabilities in future periods.
Impairment of financial instruments
The Group uses an expected credit loss model to assess the impairment of financial
instruments, and the application of the expected credit loss model requires significant
judgment and estimation, taking into account all reasonable and substantiated information,
including forward-looking information. In making these judgments and estimates, the Group
inferred the expected changes in the debtor's credit risk based on historical repayment data
combined with economic policies, macroeconomic indicators, industry risks and other
factors. Different estimates may affect the provision for impairment, and the provision for
impairment may not be equal to the actual amount of impairment losses in the future.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(24) Critical accounting estimates and judgements (Cont’d)
(b) Uncertainty in the estimate(Cont’d)
Impairment of non-current assets other than financial assets (other than goodwill)
The Group determines whether there is any indication of possible impairment of non-current
assets other than financial assets at the balance sheet date. For intangible assets with an
indefinite useful life, in addition to the impairment test conducted annually, when there are
signs of impairment, the impairment test is also conducted. Other non-current assets, other
than financial assets, are tested for impairment when there are indications that their book
value is not recoverable. Impairment occurs when the carrying amount of an asset or group
of assets is higher than the recoverable amount, i.e., the higher of the fair value less
disposal costs and the present value of the projected future cash flows. The fair value, net
of disposal costs, is determined by reference to the agreed sale price or observable market
price of a similar asset in an arm's length transaction, less incremental costs directly
attributable to the disposal of the asset. When estimating the present value of future cash
flows, management must estimate the projected future cash flows of the asset or group of
assets and select an appropriate discount rate to determine the present value of future cash
flows.
Development expenditures
When determining the amount to be capitalized, management must make assumptions
regarding the estimated future cash flows of the asset, the applicable discount rate, and the
expected benefit period.
Deferred tax assets
To the extent that there is likely to be sufficient taxable income to cover the deductible loss,
deferred tax assets should be recognised for all unutilised deductible losses. This requires
management to use a great deal of judgment to estimate the timing and amount of taxable
income to be obtained in the future, combined with a tax planning strategy, to determine
the amount of deferred tax assets to be recognized.
Warranty
For a portfolio of contracts with similar characteristics, the Group makes a reasonable
estimate of the warranty rate based on historical warranty data, current warranty situation,
and all relevant information such as product improvement and market changes. The
estimated warranty rates may not be equal to the actual future warranty rates, and the
Group has re-evaluated the warranty rates at least at each balance sheet date and
determined the projected liabilities based on the re-assessed warranty rates.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(1) The main categories and rates of taxes applicable to the Group are set out below:
Category Taxation basis Tax rate
Value-added tax The difference between the sales amount and the 13%, 9% and 6%
(“VAT”) output tax calculated at the applicable tax rate,
after deducting the input tax amount for which
the credit is granted
Consumption tax Taxable sales amount 9%, 5% and 3%
City maintenance and The payment amount of VAT and consumption 7% and 5%
construction tax tax
Enterprise income tax Taxable income 25% and 15%
(2) Tax preference
According to the relevant regulations of the national high-tech certification and related
preferential tax policies, the company has passed the certification of high-tech enterprises in
for the year of 2025 is 15% (2024: 15%).
In 2025, except for the Company, the Company’s wholly-owned companies, including JMC
Heavy Duty Vehicle Co., Ltd. (“JMCH”), Jiangling Motor Sales Co., Ltd. (“JMCS”), Shenzhen
Fujiang New Energy Automobile Sales Co., Ltd. (“SZFJ”), Guangzhou Fujiang New Energy
Automobile Sales Co., Ltd. (“GZFJ”), and Jiangling Ford Automobile Technology (Shanghai)
Co., Ltd. (“Jiangling Ford (Shanghai)”) were subject to the enterprise income tax at the rate of
Pursuant to the Announcement on Clarifying the Additional Value-added Tax Credit Policy for
the Advanced Manufacturing Enterprises (Cai Shui [2023] No. 43) jointly issued by the Ministry
of Finance and the State Taxation Administration, the Company, as an advanced manufacturing
enterprise, from January 1, 2023 to December 31, 2027, the Company will add 5% of the
deductible input tax for the current period to offset the VAT payable.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(1) Cash at bank and on hand
Cash at bank 11,898,659,395 11,067,571,593
Cash at finance company (a) (Note
Other cash and cash equivalents (b) 27,137,724 18,692,687
Interest receivable 64,248,422 52,427,194
(a) As at 31 December 2025, the group's bank deposit with Jiangling Automobile Group
Finance Co, Ltd. was RMB1,592,494,805. The Group's bank deposits placed with Jiangling
Motor Group Finance Company Limited(“JMCF”) bear interest at the bank's annual interest
rate of 0.85%-1.55% (31 December 2024: 1.35%-2.25%) on RMB deposits for the same
period.
JMCF, a subsidiary of Jiangling Motors Group Co., Ltd (“JMCG”), is a non-banking financial
institution. JMCG holds 50% equity capital of Nanchang Jiangling Investment Co., Ltd.
(“JIC”), a main shareholder of the Company.
(b) Other cash and cash equivalents of RMB27,137,724 (December 31 2024: 18,692,687) were
the frozen funds of the Group's litigation.
(2) Financial assets held for trading
Structural deposits 801,902,466 -
(3) Derivative financial assets and derivative financial liabilities
Derivative financial assets -
Forward exchange contracts - 12,612,380
Derivative financial liabilities -
Forward exchange contracts 695,349 -
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(4) Notes receivable
Trade acceptance notes - 226,932
Less: Provision for bad
debts
- (67)
- 226,865
(5) Accounts receivable
Accounts receivable 6,261,767,357 4,299,293,681
Less: Provision for bad debts (120,361,590) (118,285,447)
(a) The aging of accounts receivable was analysed as follows:
Within 1 year 6,136,599,101 4,168,893,653
Over 2 years 122,835,290 128,587,780
As at 31 December 2025, accounts receivable with individually significant amounts and
aged over three years were analyzed as follows:
Balance Reasons and risk of collection
As the debtor had difficulties in operation and was
involved in several lawsuits, the Group
considered that the receivable was difficult to be
recovered and therefore a provision for bad debts
Company 1 64,924,598 had been made in full.
The Group considered that the new energy
subsidy amount was difficult to be recovered from
relevant subsidy distribution departments over a
long period of time and therefore a provision for
Company 2 37,924,214 bad debts had been made in full.
Due to the cash flow arrangement of the debtor,
the accounts receivable had a long aging, but the
debtor has a good historical collection situation
and still has normal business dealings with the
Group, and the Group considered that the
receivables were likely to be recovered, so a
provision for bad debts was made in the grouping
Company 3 10,296,890 - sales of general automobiles.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(b) As at 31 December 2025, the top five accounts receivable ranked by the balances of the
debtors are analysed as follows:
Amount of provision % of total
Balance for bad debts balance
The total accounts receivable of
the top five balances 4,954,439,143 74,516,928 79.12%
(c) Provision for bad debts
For accounts receivable, the Group measures the loss provision based on the lifetime ECL
regardless of whether there is a significant financing component.
The provision for bad debts of accounts receivable was analysed by category as follows:
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on
the individual basis (i) 103,465,547 2% 103,231,811 99.77%
Provision for bad debts on
the grouping basis (ii) 6,158,301,810 98% 17,129,779 0.28%
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on
the individual basis (i) 104,721,207 2% 104,721,207 100.00%
Provision for bad debts on
the grouping basis (ii) 4,194,572,474 98% 13,564,240 0.32%
(i) Accounts receivable for which the provision for bad debts was provided on the individual
basis were analysed follows:
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
New energy subsidies
receivable 37,924,214 100% 37,924,214
Receivables for
automobiles 65,541,333 99.64% 65,307,597
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
New energy subsidies
receivable 37,924,214 100% 37,924,214
Receivables for
automobiles 66,796,993 100% 66,796,993
As at 31 December 2025, the Group assessed the expected credit losses on the related
accounts receivable. The Group considered a portion of the receivables cannot be
collected, therefore, a provision for bad debt was made for those receivables. The related
amount was RMB103,231,811 (31 December 2024: RMB104,721,207), of which
RMB1,489,396 (2024: RMB5,433,007) was reversed in profit or loss for the current period.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows:
Grouping - Domestic sales of general automobiles:
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 1,298,021,154 0.02% 256,917
Overdue for 1 to 30 days 28,433,864 1.25% 354,247
Overdue for 31 to 60 days 9,159,455 2.18% 199,456
Overdue for 61 to 90 days 6,007,784 3.66% 219,824
Overdue over 90 days 28,609,142 9.18% 2,626,319
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 812,797,881 0.03% 241,763
Overdue for 1 to 30 days 109,449,671 0.55% 600,056
Overdue for 31 to 60 days 5,621,317 0.99% 55,441
Overdue for 61 to 90 days 4,434,000 2.50% 110,948
Overdue over 90 days 25,539,010 9.00% 2,298,511
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows (Cont’d):
Grouping - Export sales of general automobiles:
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 4,538,555,702 0.20% 9,077,111
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 2,933,133,292 0.20% 5,866,267
Grouping - Sales of new energy automobiles:
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Overdue over 90 days 4,122,180 80.00% 3,297,744
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Overdue over 90 days 4,123,260 80.00% 3,298,608
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows (Cont’d):
Grouping – Automobile parts:
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 188,462,019 0.30% 565,386
Overdue for 1 to 30 days 22,120,280 0.30% 66,361
Overdue for 31 to 60 days 17,471,552 0.50% 87,358
Overdue for 61 to 90 days 11,088,147 0.60% 66,529
Overdue over 90 days 6,250,531 5.00% 312,527
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 270,418,629 0.30% 811,256
Overdue for 1 to 30 days 10,276,006 0.30% 30,828
Overdue for 31 to 60 days 9,423,011 0.50% 47,115
Overdue for 61 to 90 days 6,008,481 0.60% 36,051
Overdue over 90 days 3,347,916 5.00% 167,396
(iii) The provision for bad debts was RMB2,076,143 this year.
(d) There was no provision for bad debts actually written off during the year.
(e) As at 31 December 2025 and 31 December 2024, there were no accounts receivable
pledged.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(6) Financing receivables
Bank acceptance notes 205,851,591 302,065,502
The Group considers the need for its daily fund management to discount and endorse a
portion of bank acceptance bills, and the business model for managing these bills aims both
at receiving contractual cash flows and at selling them; therefore, all bank acceptance bills
of the Group are classified as financial assets measured at fair value with changes
recognized in other comprehensive income. In 2025, the Group endorsed and discounted
bank acceptance notes, and almost all risks and rewards of ownership have been
transferred to other parties, accordingly, the carrying amounts of bank acceptance notes
that were derecognised by the Group were RMB1,698,864,617 and
RMB7,692,252,503(2024: RMB1,098,017,761 and RMB2,029,290,040) respectively, and
the related losses on discount of RMB244,753 (2024: RMB110,250) were included in
investment income (Note 5(53)).
As at 31 December 2025 and 31 December 2024, as the credit risk characteristics of these
bank acceptance notes were similar, no provision for impairment was made individually. In
addition, the Group considered that its bank acceptance notes were not exposed to
significant credit risk and the probability of default of these banks was very low.
As at 31 December 2025 and 31 December 2024, the Group had no pledged bank
acceptance notes receivable presented in financing receivables.
As at 31 December 2025, the Group's bank acceptance notes had been endorsed or
discounted but not yet matured were RMB5,373,003,459, which had been derecognised.
There was no significant write-offs of financing receivables for the Group in 2025 (2024:
Nil).
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(7) Advances to suppliers
(a) The aging of advances to suppliers is analysed as follows:
% of total % of total
Amount balance Amount balance
Within 1 year 94,393,889 96% 90,702,706 96%
Over 1 year 4,230,171 4% 4,046,466 4%
(b) As at 31 December 2025, the top five advances to suppliers by the balances of the debtors
are analysed as follows:
Amount % of total balance
Total prepayments of the top
five balances 98,624,060 100.00%
(8) Other receivables
Receivables from land
acquisition and storage 79,807,336 -
Gas and electricity bills 21,112,025 18,531,901
Platform utilization fee 5,831,714 5,525,739
Bills for R&D projects 5,262,421 4,723,933
Import working capital 5,000,000 3,900,523
Guarantees 3,932,887 7,604,290
Others 13,986,707 13,987,893
Less: Provision for bad debts (164,713) (261,039)
The Group did not have any fund deposited at other parties under the centralised fund
management and represented in other receivables.
(a) The aging of other receivables is analysed as follows:
Within 1 year 131,308,902 49,055,878
Over 1 year 3,624,188 5,218,401
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(8) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements:
The provision for bad debts of other receivables is analysed by category as follows:
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis 79,807,336 59% - -
Provision for bad debts on the
grouping basis 55,125,754 41% 164,713 0.30%
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
Individual basis 1,297,367 2% - -
Provision for bad debts on the
grouping basis 52,976,912 98% 261,039 0.49%
Stage 1
(grouping) (individual) Total
Provision Provision Provision
Book for bad Book for bad for bad
balance debts balance debts debts
Decrease in the
current year - - - - -
Increase in the
current year 2,148,842 - 78,509,969 - -
Provision for bad
debts accrued
during the year - (96,326) - - (96,326)
As at 31 December 2025 and 31 December 2024, the Group had no other receivables at
Stage 2 and Stage 3. The analysis of other receivables at Stage 1 was stated below:
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(8) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements (Cont’d):
As at 31 December 2025, the Group’s other receivables with provision for bad debts were
analysed below:
Book balance ECL rates bad debts Reason
Provision on the individual basis:
Receivable from land acquisition and
storage (i) 79,807,336 - - ECL
Provision on the grouping basis:
Gas and electricity bills 21,112,025 0.30% 63,082 ECL
Platform utilization fee 5,831,714 0.30% 17,425 ECL
Bills for R&D projects 5,262,421 0.30% 15,724 ECL
Import working capital 5,000,000 0.30% 14,940 ECL
Guarantees 3,932,887 0.30% 11,751 ECL
Others 13,986,707 0.30% 41,791 ECL
(i)The Group assessed the credit risk of receivable from land acquisition and storage on
the individual basis , the receivables were not subject to significant credit risk and were not
overdue and impaired.
As at 31 December 2024, the Group’s other receivables with provision for bad debts on the
grouping basis are analysed as follows:
Book balance ECL rates bad debts Reason
Provision on the individual basis:
Receivables from refund of social
insurance (i) 1,297,367 - - ECL
Provision on the grouping basis:
Gas and electricity bills 18,531,901 0.49% 91,314 ECL
Import working capital 7,604,290 0.49% 37,469 ECL
Guarantees 5,525,739 0.49% 27,228 ECL
Platform utilization fee 4,723,933 0.49% 23,277 ECL
Bills for R&D projects 3,900,523 0.49% 19,219 ECL
Others 12,690,526 0.49% 62,532 ECL
(c) In 2025, the Group reversed the provision for bad debts amounting to RMB96,326. The
reversal in the current period is due to the actual receipt of other receivables corresponding
to the provision for bad debts in the previous period.
(d) There was no provision for bad debts actually written off during the year.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(8) Other receivables (Cont’d)
(e) As at 31 December 2025, the top five other receivables by the balances of the debtors are
listed as follows:
% of Provision
total for bad
Nature Balance Aging balance debts
receivables from
land acquisition
Company 1 and storage 79,807,336 within 1 year 59% -
Company 2 Electricity bills 16,993,000 within 1 year 13% 50,774
Import working
Company 3 capital 8,678,667 within 1 year 6% 25,931
Platform
Company 4 utilization fee 5,831,714 within 1 year 4% 17,425
Company 5 Gas bills 4,119,025 within 1 year 3% 12,307
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(9) Inventories
(a) Inventories were summarised by category as follows:
Provision for Provision for
decline in the decline in the
value of Carrying value of Carrying
Book balance inventories amount Book balance inventories amount
Raw materials 1,107,964,940 64,981,628 1,042,983,312 1,297,887,283 89,113,586 1,208,773,697
Finished goods 666,482,402 21,361,803 645,120,599 416,054,999 9,124,198 406,930,801
Work in progress 178,941,925 49,688 178,892,237 208,385,421 282,318 208,103,103
Low value consumables 65,588,843 543,890 65,044,953 74,927,505 8,943,729 65,983,776
Materials in transit 67,782,373 - 67,782,373 85,555,538 - 85,555,538
Materials consigned for processing 12,102,234 - 12,102,234 79,170,327 - 79,170,327
(b) Provision for decline in the value of inventories was analysed as follows:
Increase in the
current year Decrease in the current year
Raw materials 89,113,586 12,051,738 (1,554,832) (34,628,864) 64,981,628
Finished goods 9,124,198 19,732,603 - (7,494,998) 21,361,803
Low value consumables 8,943,729 543,890 (42,736) (8,900,993) 543,890
Work in progress 282,318 38,310 (53,777) (217,163) 49,688
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(9) Inventories (Cont’d)
(c) Provision for decline in the value of inventories was analysed as follows:
The Group uses whether the cost is higher than the net realizable value as the basis for the
provision for inventory decline. Net realizable value is determined by the estimated selling price of
the inventory, less the estimated costs to be incurred at completion, estimated contract
performance costs and selling expenses, and related taxes. The reason for the reversal or resale
of the provision for inventory decline in the current year is the increase in the net realizable value
of the inventory for which the provision for inventory decline has been made in previous years or
the sales realized in the current year.
(10) Other current assets
Taxes prepaid, input VAT to be
deducted and to be verified 1,288,158,530 1,200,018,920
Others 42,858,755 28,354,057
Less: provision for diminution in value (136,072,357) -
In 2025, the Group made a provision for impairment of RMB136,072,357 for input tax that is
expected to not be deductible or used in the future.
(11) Current portion of non-current assets
Current portion of long-term
receivables (Note 5(12)) 27,153,632 20,784,738
(12) Long-term receivables
Long-term receivables 98,706,775 39,420,847
Less: provision for bad debts (33,179) (102,201)
Current portion of long-term
receivables (Note 5(11)) (27,153,632) (20,784,738)
As at 31 December 2025, the Group's long-term receivables were formed by accounts receivable
from instalment sales, and the payments will be gradually recovered from 2026 to 2029.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(13) Long-term equity investments
Associates
- Shanxi Yunnei Power Co., Ltd. (“The Power Company”) 177,016,522 194,393,246
- Hanon Systems (Nanchang) Co., Ltd. (“Hanon Systems”) 26,625,399 24,904,785
Less: Provision for impairment of long-term equity investments - -
Associates
Movements for the current year Impairment provision
Increase/ Share of net
Decrease profit/(loss) Cash 31
The Power
Company 194,393,246 - (17,376,724) - - 177,016,522 40% 40% - -
Hanon
Systems 24,904,785 - 1,720,614 - - 26,625,399 19.15% 33.33% - -
Total 219,298,031 - (15,656,110) - - 203,641,921 - -
Related information of equity in associates is set forth in Note 6(2).
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(14) Fixed assets
Fixed assets (a) 5,789,147,812 5,749,363,332
Fixed assets pending for disposal (b) 276,010 110,673
(a) Fixed assets
Machinery and Electronic and other
. Buildings equipment Vehicles Moulds equipment Total
Cost
Increase in the
current year
Transfers from
construction in
progress 11,761,917 113,032,541 458,349,281 602,003,312 288,627,682 1,473,774,733
others - - 8,134,817 - - 8,134,817
Decrease in the
current year
Disposal or
retirement (75,600,272) (255,267,096) (49,490,060) (206,692,364) (182,157,824) (769,207,616)
Others - (35,288,968) - - (71,043,089) (106,332,057)
Accumulated
depreciation
Increase in the
current year
Provision 52,801,041 173,633,132 174,614,255 415,547,902 318,937,686 1,135,534,016
Decrease in the
current year
Disposal or
retirement (48,348,825) (231,040,644) (31,497,314) (198,463,695) (167,207,230) (676,557,708)
Others - (14,662,072) - - (28,524,207) (43,186,279)
Provision for
impairment
Increase in the
current year
Provision - 4,851,803 171,094,896 905,344 5,809,456 182,661,499
Decrease in the
current year
Disposal or
retirement - (14,068,896) (778,693) (7,386,856) (9,631,686) (31,866,131)
Carrying amount
In 2025, depreciation charged to fixed assets amounted to RMB1,135,534,016 (2024:
RMB987,377,843), of which the depreciation expenses charged in the cost of sales, selling and
distribution expenses, general and administrative expenses and research and development expenses
were RMB1,017,454,850, RMB4,303,935, RMB51,864,743 and RMB61,910,488 (2024:
RMB849,126,318, RMB6,581,964, RMB58,162,821 and RMB73,506,740), respectively.
The costs of fixed assets transferred from construction in progress amounted to RMB1,473,774,733
(2024: RMB1,410,284,216).
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(14) Fixed assets(Cont’d)
(a) Fixed assets (Cont’d)
In 2025, Shenzhen Fujiang's leasing business incurred losses, and there were indications of
impairment in the related assets. The Group conducted an impairment test on the assets used
for leasing by Shenzhen Fujiang and determined the recoverable amount of the relevant assets
to be RMB583,699,232 by taking the higher of the fair value less costs of disposal and the
present value of the estimated future cash flows of the assets. Accordingly, an impairment
provision of RMB170,870,890 was made based on the difference between the recoverable
amount as of 31 December 2025, and the carrying amount.
(i) Temporarily idle fixed assets
As at 31 December 2025, the fixed assets with a carrying amount of approximately
RMB137,144,685 (a cost of RMB1,253,368,096) (31 December 2024: a carrying amount of
approximately RMB166,048,112 and a cost of RMB1,419,765,179) were idle due to the
termination of the equity transfer transaction of JMCH and the change of product process of the
Group. The analysis was as follows:
Accumulated Provision for Carrying
Cost depreciation impairment amount
Buildings 409,162,422 114,085,803 172,020,613 123,056,006
Machinery and
equipment 129,956,554 92,748,751 29,764,468 7,443,335
Vehicles 57,745,640 49,840,846 6,252,593 1,652,201
Moulds 423,834,673 110,665,785 313,168,888 -
Electronic and other
equipment 232,668,807 182,532,953 45,142,711 4,993,143
(ii) Operating lease of fixed assets:
As of 31 December 2025, the Cost was RMB923,813,175, the accumulated depreciation was
RMB169,243,053, the Impairment provision was RMB170,870,890 and the carrying amount at
the end of the period was RMB583,699,232.
(ii) Fixed assets with pending certificates of ownership:
Reason for not obtaining
Carrying amount certificates of ownership
Buildings 16,144,137 Pending procedures
(b) Fixed assets pending for disposal
Vehicles 250,667 -
Electronic and other equipment 10,538 85,891
Machinery and equipment 14,805 24,782
As at 31 December 2025, the cost of fixed assets was RMB353,554, the impairment provision
was RMB77,544 and the carrying amount at the end of the period was RMB276,010.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(15) Construction in progress
Provision Carrying Provision Carrying
Book balance for impairment amount Book balance for impairment amount
Projects for
commercial
vehicles 390,972,214 1,311,599 389,660,615 441,559,409 1,284,000 440,275,409
Projects for
passenger
vehicles 52,470,311 4,460,314 48,009,997 134,553,481 4,460,314 130,093,167
Projects for
automobile
parts factory 22,200,973 - 22,200,973 64,627,414 - 64,627,414
Projects for
automobiles
factory 2,224,873 - 2,224,873 5,625,803 - 5,625,803
Others 46,210,061 691,646 45,518,415 21,981,633 691,646 21,289,987
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(15) Construction in progress (Cont’d)
(a) Movement of significant projects of construction in progress
Including:
Borrowing
Transfer to Transfer to Accumulative costs
fixed assets in intangible % of project capitalised capitalised in
Budget 31 December Increase in the the current assets in the 31 December investment in Progress of borrowing the current
Project name (In RMB0,000) 2024 current year year current year 2025 budget project costs year Source of fund
Projects for Self-owned
commercial vehicles 352,592 441,559,409 883,594,253 (934,181,448) - 390,972,214 75% 75% - - funds
Projects for Self-owned
Passenger vehicles 87,750 134,553,481 251,466,015 (333,549,185) - 52,470,311 79% 79% - - funds
Projects for Self-owned
Automobiles factory 52,041 5,625,803 14,338,724 (17,739,654) - 2,224,873 75% 75% - - funds
Projects for
automobile parts Self-owned
factory 18,624 64,627,414 74,010,694 (116,437,135) - 22,200,973 86% 86% - - funds
Self-owned
Others - 21,981,633 164,523,970 (71,867,311) (68,428,231) 46,210,061 292,897 - funds
(b) Provision for impairment of construction in progress
Projects for
commercial vehicles 1,284,000 27,599 - 1,311,599 The recoverable amount is lower than the carrying amount
Projects for
passenger vehicles 4,460,314 - - 4,460,314 The recoverable amount is lower than the carrying amount
Others 691,646 - - 691,646 The recoverable amount is lower than the carrying amount
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(16) Right-of-use assets
Buildings
Cost
Increase in the current year
New lease contracts 59,472,019
Decrease in the current year
Expiration of lease contract (40,396,766)
Other decrease (608,092)
Accumulated depreciation
Increase in the current year
Provision 88,146,844
Decrease in the current year
Expiration of lease contract (31,196,599)
Other decrease (240,703)
Provision for impairment
Increase in the current year -
Decrease in the current year -
Carrying amount
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(17) Intangible assets
Land use Software Non-patent
rights use fees technologies Others Total
Cost
Increase in the
current year - - - - -
Transfers from
construction in
progress - 68,428,231 - - 68,428,231
Internal research
and development - - 404,953,343 - 404,953,343
Decrease in the
current year - - - - -
Disposal (15,623,755) (6,998,434) - - (22,622,189)
Other decrease - (16,300,959) - - (16,300,959)
Accumulated
amortisation
Increase in the
current year - - - - -
Provision 13,100,346 55,655,184 404,691,627 - 473,447,157
Decrease in the
current year - - - - -
Disposal (8,855,105) (6,998,434) - - (15,853,539)
Other decrease - (1,949,477) - - (1,949,477)
Provision for
impairment
Increase in the
current year - - - - -
Provision - - - - -
Carrying amount
As at 31 December 2025, the intangible assets developed by the Group accounted for 63%
(31 December 2024: 61%) of the carrying amount of intangible assets.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(18) Expenditure on research and development
The Group's total expenditure on research and development activities in 2025 and 2024 is
presented by nature as follows:
Employee benefits 748,021,754 872,800,912
Design fee 279,392,314 276,633,918
Consumed materials 158,628,958 241,660,045
Depreciation and amortisation 72,647,497 82,982,038
Others 231,757,412 225,684,210
Wherein expenditure on
research and development on
the research phase (Note
(a) The changes in the Group's development expenditures eligible for capitalisation in 2025 is
analysed as follows:
Transfer to intangible
Projects for
passenger
vehicles 27,277,985 192,599,988 219,877,973 -
Projects for
commercia
l vehicles 160,825,445 81,844,408 185,075,370 57,594,483
The capitalization of the vehicle project started when the product was ready and the R&D
data was frozen, and it had passed the Group's technical review meeting. After the
completion of the development of the project, it is expected to be ready for mass production
of vehicle products with marketing capabilities, with a progress of approximately 88% as
of 31 December 2025, and is expected to be completed by 2026.
In 2025, there was no impairment of the Group's development expenditure items (2024:
nil).
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(19) Deferred tax assets and deferred tax liabilities
(a) Deferred tax assets before offsetting
Deductible Deductible
temporary temporary
differences and Deferred tax differences and Deferred tax
deductible losses assets deductible losses assets
Accrued expenses and
provisions 4,615,638,068 1,037,353,003 5,243,226,986 1,202,834,659
Recoverable losses 466,815,447 116,703,862 3,007,086,847 645,511,957
Provision for asset
impairment 1,942,298,621 292,044,435 622,528,655 94,016,209
Non-patent technology 593,336,532 143,728,516 440,753,948 100,999,156
Lease liability 135,747,740 23,290,388 179,407,961 27,067,280
Employee education
funds unpaid 25,931,540 4,181,264 53,619,310 8,554,549
Deferred income 13,039,843 1,955,976 61,202,010 9,180,301
Retirement benefits
plan 10,756,000 2,586,000 10,153,000 2,194,050
Others 141,377,441 22,698,198 122,815,039 20,274,065
(b) Deferred tax liabilities before offsetting
Taxable
temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Depreciation of fixed
assets 3,106,313,384 696,962,697 3,045,807,585 624,476,184
Right-of-use assets 120,159,745 22,163,211 158,457,332 25,571,835
Equity transactions
between parent and
subsidiary 207,400,000 31,110,000 166,600,000 24,990,000
Differences between
the fair value of the
identifiable net
assets and carrying
amount arising from
business
combinations
involving enterprises
not under common
control 72,457,584 18,114,396 74,742,572 18,685,643
Amortisation of
intangible assets 88,850,280 18,680,458 88,274,866 15,312,010
Others 1,902,466 475,616 11,693,768 1,754,065
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(19) Deferred tax assets and deferred tax liabilities (Cont’d)
(c) Deductible temporary differences and deductible losses for which no deferred tax asset was
recognised were analysed as follows:
Deductible temporary differences 3,150,632,098 2,598,578,425
Deductible losses 2,267,940,580 231,610,985
(d) Deductible losses for which no deferred tax asset was recognised will be expired in following
years:
(e) The net balances of deferred tax assets and deferred tax liabilities after offsetting were as
follows:
Offsetting Balance after Offsetting Balance after
amount offsetting amount offsetting
Deferred tax assets (663,587,640) 980,954,002 (580,487,861) 1,530,144,365
Deferred tax liabilities (663,587,640) 123,918,738 (580,487,861) 130,301,876
(20) Other non-current assets
Prepayment for molds 4,912,712 7,860,340
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(21) Provision for asset impairment and losses
Decrease in the current year
Provision for bad debts of notes receivable (Note 5(4)) 67 - (67) - -
Provision for bad debts of accounts receivable (Note 5(5)) 118,285,447 3,565,539 (1,489,396) - 120,361,590
Including: Provision for bad debts on the
individual basis 104,721,207 - (1,489,396) - 103,231,811
Provision for bad debts on the
grouping basis 13,564,240 3,565,539 - - 17,129,779
Provision for bad debts of other receivables (Note 5(8)) 261,039 - (96,326) - 164,713
Provision for bad debts of long-term receivables (Note
Sub-total 118,648,754 3,565,539 (1,654,811) - 120,559,482
Provision for decline in the value of inventories (Note
provisions for other current asset impairment (Note 5
(10)) - 136,072,357 - - 136,072,357
Provision for impairment of fixed assets (Note 5(14)) 628,607,207 182,739,043 - (31,866,131) 779,480,119
Provision for impairment of construction in progress
(Note 5(15)) 6,435,960 27,599 - - 6,463,559
Provision for impairment of goodwill (i) 89,028,412 - - - 89,028,412
Provision for impairment of intangible assets (Note 5(17)) 52,416,626 - - - 52,416,626
Sub-total 883,952,036 351,205,540 (1,651,345) (83,108,149) 1,150,398,082
(i) As at 31 December 2019, the Group had made full provision for impairment of goodwill.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(22) Short-term borrowings
Credit loan 1,950,000,000 1,500,000,000
As at 31 December 2025, the Group had no overdue short-term borrowings and the interest
rates ranged from 0.35% to 0.92% (31 December 2024: 0.55% to 0.95%).
(23) Notes payable
Banker's Acceptance Payable 427,292,904 -
(24) Accounts payable
Payable for automobile parts 11,072,236,002 9,785,507,926
Payable for raw and auxiliary
materials 325,524,482 275,716,018
As at 31 December 2025, accounts payable with aging over one year amounted to
RMB717,410,426 (31 December 2024: RMB170,590,008), which mainly represented
payables for materials for which a settlement price had not yet been determined, and such
payables had not been finally settled yet.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(25) Contract liabilities
Advances for maintenance and warranty
services, etc. 860,003,200 632,287,355
Advances for automobiles and
automobile parts 147,721,592 206,210,459
Less: Contract liabilities carried forward
to revenue after 1 year (Note 5(36),
Note 5(44)(c)(i)) (461,860,038) (370,793,523)
In 2025, contract liabilities amounting to RMB454,809,298 included in the carrying amount
as at 31 December 2024 were transferred to the revenue of 2025 (2024: RMB236,041,276),
including advances for automobiles and automobile parts amounting to RMB193,030,415
(2024: RMB129,477,208), and advances for maintenance and warranty services amounting
to RMB261,778,883 (2024: RMB106,564,068).
(26) Employee benefits payable
Short-term employee benefits payable (a) 723,926,311 771,878,485
Defined contribution plans payable (b) 500,343 2,799,913
Defined benefit plans payable (c) 2,289,000 3,015,000
Termination benefits payable (d) 2,440,780 2,481,176
(a) Short-term employee benefits
Wages and salaries,
bonus, allowances
and subsidies 692,017,542 2,071,832,935 (2,083,775,443) 680,075,034
Staff welfare 21,071,704 86,009,981 (93,847,798) 13,233,887
Social security
contributions 812,921 147,119,442 (146,755,991) 1,176,372
Including: Medical
insurance 729,653 131,309,238 (130,934,643) 1,104,248
Work injury
insurance 83,268 15,810,204 (15,821,348) 72,124
Housing funds 492,198 217,517,186 (217,980,635) 28,749
Labour union funds
and employee
education funds 57,484,120 21,638,392 (49,710,243) 29,412,269
Other short-term
employee benefits - 7,451,200 (7,451,200) -
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(26) Employee benefits payable (Cont’d)
(b) Defined contribution plans
Decrease in
Basic pensions 2,698,067 287,975,569 (290,205,330) 468,306
Unemployment
insurance 101,846 9,112,787 (9,182,596) 32,037
(c) Defined benefit plans
Increase in Decrease in
Post-retirement
benefits payable
(Note 5(35)) 3,015,000 1,406,555 (2,132,555) 2,289,000
(d) Termination benefits payable
Early retirement benefits payable
(Note 5(35)) 1,030,000 1,143,000
Other termination benefits (i) 1,410,780 1,338,176
(i) In 2025, other termination benefits paid by the Group for termination of the employment
relationship were RMB12,695,618 (2024: RMB3,333,613).
(27) Taxes payable
Consumption tax payable 59,076,964 103,965,331
Enterprise income tax payable 32,921,540 -
Land use tax payable 4,609,622 4,753,390
Unpaid VAT 600,401 117,211,162
Others 35,489,914 39,268,506
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(28) Other payables
Promotion expenses 3,058,197,201 2,727,155,425
Research and development project
expenses 947,404,470 962,540,747
Construction payment 498,931,773 466,886,864
Guarantees 146,610,838 134,483,995
Advertising and new product
planning fees 106,729,208 117,665,807
Trademark license fee 103,978,965 61,000,949
Transportation expenses 87,941,218 256,166,660
Ordinary share dividends payable 4,006,342 6,463,836
Others 849,894,856 1,006,699,884
As at 31 December 2025, other payables with aging over one year of RMB1,601,148,088
(31 December 2024: RMB1,594,877,126) mainly comprised payables for promotion,
payables for research and development expenses and payables for construction projects.
Such payables had not been finally settled yet in view of the continuing business transactions
with distributors and service providers, and engineering projects and research and
development projects that had not yet been accepted and completed.
(29) Current portion of non-current liabilities
Current portion of lease liabilities
(Note 5(32)) 91,402,749 85,684,387
Current portion of long-term
borrowings (Note 5(31)) 460,275 470,727
(30) Other current liabilities
Provisions expected to be settled
within 1 year (Note 5(33)) 285,227,475 314,682,704
Others 19,203,931 26,865,737
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(31) Long-term borrowings
Guaranteed loans(a) 920,551 1,412,180
Credit loans - -
Less: Current portion of long-term
borrowings (Note 5(29)) (460,275) (470,727)
(a) As at 31 December 2025, the above guaranteed loans were long-term borrowings
amounting to USD 130,968 guaranteed by JMCF (note 8(5)(c)), borrowed from Industrial
and Commercial Bank of China (“ICBC”), Nanchang Ganjiang Sub-branch with interests
paid every half year and the principal paid in instalments between 10 December 2007 and
(b) As at 31 December 2025, the Group had no overdue long-term borrowings at an interest
rate of 1.5% (31 December 2024: 1.5%).
(32) Lease liabilities
Lease liabilities (a) 136,262,865 179,437,021
Less: Current portion of non-
current liabilities (Note 5(29)) (91,402,749) (85,684,387)
(a) As at 31 December 2025, the Group had no leases that were not included in lease liabilities
but will result in potential future cash outflows.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(33) Provisions
Increase in Decrease in
Product warranties 601,848,407 262,630,222 (323,814,477) 540,664,152
Less: Provisions expected to
be settled within 1
year (Note 5(30)) (314,682,704) (285,227,475)
Product warranties are expenses expected to be incurred during the warranty period from free
after-sales services, product warranty and other services for the vehicles sold.
(34) Deferred income
Decrease in the
current year
Government grants
Government grants
related to assets 7,113,989 1,941,000 (1,987,381) 7,067,608
Government grants
related to
income 54,088,021 5,185,000 (52,934,452) 6,338,569
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(35) Long-term employee benefits payable
Supplementary retirement benefits and
early-retirement benefits eligible for
recognition of provisions 53,172,000 63,500,000
Less: portion to be paid within one year (3,319,000) (4,158,000)
The retirement and early-retirement benefits payable within one year are included in
employee benefits payable (Note 5(26)(c), Note 5(26)(d)).
For retired and early-retired employees, the Group provides them with a certain amount of
supplementary benefits during their retirement or early-retirement period. The amount of
benefits depends on the employee’s position, length of service and salary at the time of
retirement or early-retirement, and is adjusted in accordance with inflation rate and other
factors. The Group’s obligations for supplementary retirement and early-retirement benefits
as at the balance sheet date were calculated using projected unit credit method and were
reviewed by an external independent actuary.
In 2025, the defined benefit gain recognized in current profit and loss was
RMB4,510,000(2024: 4,356,000), and the defined benefit gain recognized in other
comprehensive income was RMB2,526,000 (2024: RMB5,816,000).
(36) Other non-current liabilities
Contract liabilities carried forward to
revenue after 1 year (Note 5(25)) 461,860,038 370,793,523
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(37) Share capital
Movements for the current year
Shares subject to trading restriction -
Other domestic shares
Including: Shares held by domestic
non-state-owned legal
persons 745,140 - - - - - 745,140
Shares held by domestic
natural persons 5,700 - - - - - 5,700
Shares not subject to trading restriction -
Ordinary shares denominated in RMB 518,463,160 - - - - - 518,463,160
Domestically listed foreign shares 344,000,000 - - - - - 344,000,000
Since the implementation of the Company’s Scheme on Share Split Reform on 13 February 2006, as at 31 December 2025, there were 750,840
shares currently unavailable for trading. During the reporting period, there was no shares with trading restrictions released from the restricted
conditions.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(37) Share capital (Cont’d)
Movements for the current year
Transfer
Shares subject to trading restriction -
Other domestic shares
Including: Shares held by domestic
non-state-owned legal
persons 745,140 - - - - - 745,140
Shares held by domestic
natural persons 5,700 - - - - - 5,700
Shares not subject to trading restriction -
Ordinary shares denominated in RMB 518,463,160 - - - - - 518,463,160
Domestically listed foreign shares 344,000,000 - - - - - 344,000,000
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(38) Capital surplus
Share premium 816,609,422 - - 816,609,422
Other capital surplus 22,833,068 - - 22,833,068
Share premium 816,609,422 - - 816,609,422
Other capital surplus 22,833,068 - - 22,833,068
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(39) Treasury stock
Treasury stock - 170,214,887 - 170,214,887
In 2025, with the board's approval, the company repurchased 8,632,078 shares through a dedicated securities account via centralized bidding. The repurchased shares will
be allocated to the employee stock ownership plan or equity incentive programs. If the company fails to utilize all repurchased shares within 36 months, the unused shares will
be canceled.
(40) Other comprehensive income
Other comprehensive income in the balance Other comprehensive income in the income statement for the year ended 31
sheet December 2025
Attributable Less: Transfer-out
to the Amount of previous other
parent incurred before comprehensive Less: Attributable to the Attributable to
Other comprehensive income that will not be
reclassified to profit or loss
Remeasure changes in defined benefit plans (26,388,000) 2,526,000 (23,862,000) 2,526,000 - - 2,526,000 -
Other comprehensive income in the balance Other comprehensive income in the income statement for the year ended 31
sheet December 2024
Attributable Less: Transfer-out
to the Amount of previous other
parent incurred before comprehensive Less: Attributable to the Attributable to
Other comprehensive income that will not be
reclassified to profit or loss
Remeasure changes in defined benefit plans (20,572,000) (5,816,000) (26,388,000) (5,816,000) - - (5,816,000) -
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(41) Special reserve
Safety
production cost 5,371,093 28,341,840 (25,851,967) 7,860,966
Safety
production cost 3,821,625 29,631,611 (28,082,143) 5,371,093
(42) Surplus reserve
Statutory surplus reserve 431,607,000 - - 431,607,000
Statutory surplus reserve 431,607,000 - - 431,607,000
In accordance with the Company Law of the People’s Republic of China, the Company’s
Articles of Association and the resolution of the Board of Directors, the Company should
appropriate 10% of net profit for the year to the statutory surplus reserve, and the Company
can cease appropriation when the statutory surplus reserve accumulated to more than 50%
of the registered capital. The statutory surplus reserve can be used to make up for the loss
or increase the share capital upon approval from the appropriate authorities. As the
accumulated appropriation to the statuary surplus reserve exceeded 50% of the registered
capital, no appropriation was made in the current year (2025: Nil).
(43) Retained earnings
Retained earnings at the beginning
of the year 9,179,333,271 8,232,632,623
Add: Net profit attributable to shareholders of the
parent company for the current year 1,187,465,719 1,537,139,024
Less: Ordinary share dividends payable (a) (614,608,342) (590,438,376)
Retained earnings at the end of the
year 9,752,190,648 9,179,333,271
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(43) Retained earnings(Cont’d)
(a) According to the resolution of the 2024 Annual General Meeting of Shareholders, the company
proposed to distribute cash dividends of RMB0.71914 per share to all shareholders, for a total of
RMB614,608,342, based on the deduction of the total issued share capital from the number of shares
in the company's repurchase special securities account until the implementation of profit distribution.
According to the resolution of the Board of Directors on March 27, 2026, the Board of Directors proposed
that the Company distribute a cash dividend of RMB0.55581 per share to all shareholders, with a total
cash dividend of RMB474,985,178 calculated based on the issued shares minus the number of shares
held in the company’s dedicated repurchase securities account of RMB854,581,922 (Note 11).
(44) Revenue and cost of sales
(a) Revenue and cost of sales
revenue cost revenue cost
main
operations 37,870,906,551 33,011,088,313 37,235,820,378 32,003,611,043
other
operations 1,299,003,378 840,430,594 1,138,340,370 948,134,101
(b) The breakdown of revenue
Automobile
maintenance
Automobiles Materials and parts services, etc. Total
Recognised at a time point 35,956,461,939 2,110,975,528 - 38,067,437,467
Recognised within a certain
period - - 1,102,472,462 1,102,472,462
Automobile
maintenance
Automobiles Materials and parts services, etc. Total
Recognised at a time point 35,289,807,942 2,510,895,063 - 37,800,703,005
Recognised within a certain period - - 573,457,743 573,457,743
(c) The breakdown of cost of sales
Automobile
maintenance
Automobiles Materials and parts services, etc. Total
Recognised at a time point 31,683,911,528 1,472,902,846 - 33,156,814,374
Recognised within a certain period - - 694,704,533 694,704,533
As at 31 December 2025, the amount of revenue corresponding to the performance obligations that
the Group had contracted but had not commenced or completed was RMB1,007,724,792, of which
the Group expects that RMB147,721,592 and RMB398,143,162 will be recognised as revenue from
the sales of automobiles and parts and revenue from the sales of automobile maintenance services
respectively in 2026, RMB461,860,038 will be recognised as revenue from automobile maintenance
services from 2027 to 2030(Note 5(25)).
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(45) Taxes and surcharges
Consumption tax 925,776,921 1,127,393,441
City maintenance and construction tax 83,998,736 124,517,786
Educational surcharge 83,619,962 124,287,311
Stamp tax 35,896,314 50,452,323
Real estate tax 20,184,172 19,966,276
Land use tax 20,051,853 20,374,559
Others 377,911 453,393
(46) Selling and distribution expenses
Promotion expenses 424,714,439 479,050,609
Employee benefits 188,590,317 252,743,744
Advertising and new product planning fees 101,581,928 112,244,723
Storage expenses 33,675,410 32,230,829
Packaging material expenses 30,042,893 29,861,191
Depreciation and amortisation expenses 20,886,072 15,597,750
Others 100,169,477 137,219,747
(47) General and administrative expenses
Employee benefits 641,460,640 518,113,814
Depreciation and amortisation expenses 118,926,227 121,213,685
Trademark license fee 64,163,810 90,222,606
Consulting fees 31,113,279 34,235,261
Repair expenses 28,316,172 32,646,022
General office expenses 13,332,712 13,264,317
Others 152,816,242 133,926,863
(48) Research and development expenses
Employee benefits 634,509,436 705,363,425
Design fee 168,981,790 177,283,649
Materials expenses 150,674,681 212,613,178
Depreciation and amortisation expenses 72,647,497 82,982,038
Others 189,190,135 136,337,133
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(49) Financial expenses
Interest costs 12,023,242 11,982,579
Add: Interest costs on lease liabilities 6,256,955 8,322,276
Interest expenses 18,280,197 20,304,855
Less: Interest income from cash at bank (161,871,607) (192,964,801)
Other interest income (2,994,625) (5,950,496)
Interest income (164,866,232) (198,915,297)
Exchange gains or losses 12,660,809 25,017,106
Others 1,828,814 1,283,199
(132,096,412) (152,310,137)
(50) Asset impairment losses
Impairment of fixed assets 182,739,043 36,573,579
Impairment of other current assets 136,072,357 -
Impairment of inventory 30,715,196 30,027,245
Impairment of construction in progress 27,599 -
(51) Credit impairment losses
Losses on bad debts of accounts receivable 2,076,143 (9,455,213)
Losses on bad debts of other receivables (96,326) (141,945)
Losses on bad debts of notes receivable (67) (17,497)
Losses on bad debts of long-term receivables (69,022) (23,557)
(52) Other income
Asset related/
Government grants
- Supporting funds by government 379,600,000 130,000,000 Income related
- Research and development activities
related subsidies 52,914,453 16,559,837 Income related
- Equipment purchasing-related
subsidies 1,987,381 1,610,714 Asset related
- Other subsidies related with daily
operation 29,816,450 36,239,194 Income related
Additional deduction of input VAT, etc. 119,059,691 330,020,306 -
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(53) Investment income
Losses on discount of financing receivables
eligible for derecognition (Note 5(6)) (244,753) (110,250)
Losses on long-term equity investments
under equity method(Note 5(13)) (15,656,110) (10,363,917)
Investment income from forward exchange
settlement 10,128,967 5,237,734
Investment income from financial assets held
for trading 85,409 4,294,164
(5,686,487) (942,269)
There is no significant restriction on the remittance of investment income of the Group.
(54) Gains on changes in fair value
Derivative financial assets and derivative
financial liabilities -
(Losses)/Gains on forward exchange
contracts (9,313,221) 13,071,686
Financial assets at fair value through profit
or loss -
Structural deposits 2,081,705 -
(7,231,516) 13,071,686
(55) Gains on disposal of assets
Amount recognised in
non-recurring profit or
Gains on disposal of assets 61,968,391 3,317,046 61,968,391
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(56) Non-operating income
Amount recognised in
non-recurring profit or
Penalty income 3,287,090 2,198,667 3,287,090
Others 1,409,847 2,845,126 1,409,847
(57) Non-operating expenses
Amount recognised in
non-recurring profit or
Losses on scrapping
of assets 2,712,138 2,773,464 2,712,138
Donations 2,005,620 2,792,688 2,005,620
Others 596,644 4,414,005 596,644
(58) Income tax expenses
Current income tax calculated based
on tax law and related regulations 32,954,440 26,622
Deferred income tax 542,807,225 52,904,175
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(58) Income tax expenses (Cont’d)
The reconciliation from income tax calculated based on the applicable tax rates and total
profit presented in the consolidated income statement to the income tax expenses is listed
as follows:
Total profit 1,395,134,383 1,258,107,606
Income tax calculated at applicable tax rates 209,270,157 188,716,141
Effect of different applicable tax rates (198,126,334) (76,105,027)
Additional deductions (85,146,304) (172,777,356)
Deductive loss and temporary differences of
the unrecognised deferred tax asset in
the current period 647,095,817 108,140,186
Non-deductible investment losses 2,348,416 1,554,588
Costs, expenses and losses not deductible
for tax purposes 319,913 3,402,265
Income tax expenses 575,761,665 52,930,797
(59) Earnings per share
(a) Basic earnings per share
Basic earnings per share are calculated by dividing consolidated net profit attributable to
ordinary shareholders of the parent company by the weighted average number of
outstanding ordinary shares of the parent company:
Consolidated net profit attributable to ordinary
shareholders of the parent company 1,187,465,719 1,537,139,024
Weighted average number of ordinary shares
outstanding issued by the Company 857,528,730 863,214,000
Basic earnings per share 1.38 1.78
In 2025, our company repurchased a total of 8,632,078 shares (Note 5 (39)). We calculated
the weighted number of shares for this year based on the repurchase time and calculated
earnings per share based on the adjusted number of shares.
(b) Diluted earnings per share are calculated by dividing consolidated net profit attributable to
ordinary shareholders of the parent company adjusted based on the dilutive potential
ordinary shares by the adjusted weighted average number of outstanding ordinary shares
of the Company. As there were no dilutive potential ordinary shares in 2025 (2024: Nil),
diluted earnings per share equalled to basic earnings per share.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(60) Notes to the cash flow statement
The Group does not present cash flows on a net basis, and the significant cash flow items
are presented as follows:
(a) Cash received relating to other operating activities
Government grants 416,152,879 179,310,467
Guarantees 81,207,784 67,713,679
Others 42,277,385 82,191,370
(b) Cash paid relating to other operating activities
Promotion expenses 609,211,507 525,988,884
Research and
development expenses 567,906,010 374,612,865
Advertising expenses 99,086,762 172,059,370
Maintenance expenses 86,230,074 95,340,158
Guarantees 66,921,556 55,333,833
Consulting fees 59,058,279 47,010,290
Trademark royalties 14,796,759 46,266,139
Others 507,956,273 546,374,861
(c) Cash received relating to other investing activities
Interest from cash at bank 150,050,351 203,725,243
Other interest 14,384,906 14,579,833
(d) Cash paid relating to other financing activities
Payment of treasury shares 170,214,887 -
Payments of lease liabilities 35,025,216 210,728,262
Others 272,972 330,952
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(61) Supplementary information to the cash flow statement
(a) Supplementary information to the cash flow statement
Reconciliation from net profit to cash flows from operating activities
Net profit 819,372,718 1,205,176,809
Add: Asset impairment losses 349,554,195 66,600,824
Credit impairment losses 1,910,728 (9,638,212)
Depreciation of fixed assets 1,135,534,016 987,377,843
Amortisation of intangible assets 473,447,157 411,075,768
Depreciation of right-of-use assets 88,146,844 83,864,887
Gains on disposal of long-term assets (59,557,455) (665,549)
Financial income (133,721,312) (153,285,041)
Investment loss 5,686,487 942,269
Losses / (Gains) on changes in fair value 7,231,516 (13,071,686)
Decrease / (Increase) in deferred tax assets 549,190,363 (58,140,811)
(Decrease) / Increase in deferred tax liabilities (6,383,138) 111,044,986
Increase in inventories (574,689,215) (1,196,599,903)
Decrease in provisions (61,184,255) (69,967,486)
Increase in operating receivables (2,053,912,967) (99,967,834)
Increase in operating payables 1,879,730,645 1,366,475,616
(Increase) / Decrease in other cash and cash
equivalents (8,445,037) 2,161,737
Net cash flows from operating activities 2,411,911,290 2,633,384,217
Net increase in cash and cash equivalents
Cash and cash equivalents at the end of
the year 13,491,154,200 12,475,176,009
Less: Cash and cash equivalents at the
beginning of the year (12,475,176,009) (11,746,518,615)
Net increase in cash and cash
equivalents 1,015,978,191 728,657,394
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(61) Supplementary information to the cash flow statement (Cont’d)
(b) Changes in liabilities arising from financing activities
Bank borrowings Lease liabilities
(including the current portion) (including the current portion) Other Payables Other Total
Cash inflows from
financing activities 4,793,407,250 - 85,750,000 752,534,436 5,631,691,686
Cash outflows from
financing activities (4,350,426,547) (35,025,216) (964,750,012) - (5,350,201,775)
Interest accrued in the
current year 6,544,884 6,256,955 5,478,358 - 18,280,197
Dividends accrued in the
current year - - 614,608,342 - 614,608,342
Changes that do not
involve cash receipts
and payments (17,216) (14,405,895) 239,290,744 - 224,867,633
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(61) Supplementary information to the cash flow statement (Cont’d)
(c) Cash and cash equivalents
Cash at bank available for payment at any
time 11,898,659,395 11,067,571,593
Cash at finance company available for
payment at any time 1,592,494,805 1,407,604,416
(i) As in Note 5(1), other cash and cash equivalents of RMB27,137,724 as at 31 December
(62) Foreign currency monetary items
Amounts in
foreign Translation
currencies exchange rate Amounts in RMB
Long-term borrowings-
USD 130,968 7.0288 920,551
Other payables-
USD 33,867,645 7.0288 238,048,904
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(63) Lease
(a) As a lessee
Interest expense on lease liabilities 6,256,955 8,322,276
Short-term lease expenses with simplified treatment
through profit or loss for the period 4,126,739 1,117,726
Total cash outflows related to leases 39,151,955 211,873,185
The leased assets leased by the Group include houses and buildings used in the course of
operation, and the lease term of houses and buildings is usually 1-5 years.
Right-of-use assets, see note 5(16); For lease liabilities, see note 5(32).
(b) As a lessor
The Group leases out its premises, buildings and means of transport for lease terms ranging from
Operating leases
Gains and losses related to operating leases are presented as follows:
Rental income 210,202,688 72,919,837
According to the lease contract with the lessee, the undiscounted minimum lease collection amount
is as follows:
Within 1 year (including 1 year) 149,604,139 131,603,273
For fixed assets leased out of operation, see Note 5(14).
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(1) Equity in subsidiaries
Structure of the Group
Main place of Place of Registered Method of
Subsidiaries business registration capital Nature of business Shareholding (%) acquisition
Direct Indirect
Nanchang, Nanchang, Retail, wholesale and lease of Set up by
JMCS Jiangxi Jiangxi 50,000,000 automobiles 100% - investment
Business
combinations
involving
enterprises not
Taiyuan, Taiyuan, Manufacture and sales of under common
JMCH Shanxi Shanxi 1,323,793,174 automobiles 100% - control
Shenzhen, Shenzhen, Retail, wholesale and lease of Set up by
SZFJ Guangdong Guangdong 10,000,000 automobiles 100% - investment
Guangzhou, Guangzhou, Retail, wholesale and lease of Set up by
GZFJ Guangdong Guangdong 10,000,000 automobiles 100% - investment
Jiangling Ford Retail, Technical consultation and Set up by
(Shanghai)(a) Shanghai Shanghai 2,678,000,000 business information consultation 51% - investment
In 2025, the registered capital of Jiangling Ford (Shanghai) was changed from RMB200 million to RMB2.678 billion, and the industrial and commercial
registration of the change has been completed.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(1) Equity in subsidiaries (Cont’d)
(a) Subsidiaries with significant minority interests
The Group determines the subsidiaries with significant minority interests by taking into account whether the subsidiaries are listed companies, the
proportion of minority interests in the Group’s consolidated shareholders’ equity, and the proportion of profit or loss attributable to minority shareholders
in the Group’s consolidated net profit, as follows:
Total profit or loss Dividends paid to
Shareholding of attributable to minority minority shareholders for
minority shareholders for the year the year ended 31 Minority interests as
Subsidiaries shareholders ended 31 December 2025 December 2025 at 31 December 2025
Jiangling Ford (Shanghai) 49% (368,093,001) - (308,199,809)
Key financial information of the above significant non-wholly owned subsidiaries is presented below.
Current Non-current Current Non-current
assets assets Total assets liabilities liabilities Total liabilities
Jiangling Ford (Shanghai) 445,678,786 - 445,678,786 1,074,395,372 262,615 1,074,657,987
Total
comprehensive Cash flows from
Revenue Net loss income operating activities
Jiangling Ford (Shanghai) 2,389,854,773 (751,210,207) (751,210,207) (511,385,042)
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(2) Equity in associates
(a) General information of significant associates
The Group determines the significant associates by taking into account factors such as whether the
associates are listed companies, the proportion of their carrying amounts to the Group’s consolidated
total assets, and the proportion of the investment income from long-term equity investments under
equity method to the Group’s consolidated net profit, as set out below:
Shareholding (%)
Place of registration Direct Indirect
Associate -
The Power Company Taiyuan, Shanxi 40% -
(b) Summarised financial information for significant associates
The Power Company The Power Company
Current assets 129,114,691 170,083,868
Non-current assets 414,895,371 437,139,815
Total assets 544,010,062 607,223,683
Current liabilities 120,165,219 139,059,465
Non-current liabilities 330,626 697
Total liabilities 120,495,845 139,060,162
Equity 423,514,217 468,163,521
Share of net assets based on shareholding (i) 169,405,687 187,265,408
Adjustments
- Unrealised profits arising from internal
transactions (13,242,488) (13,725,485)
- Others (ii) 20,853,323 20,853,323
Carrying amount of equity investments in
associates 177,016,522 194,393,246
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(2) Equity in associates (Cont’d)
(b) Summarised financial information for significant associates (Cont’d)
The Power Company The Power Company
Revenue 83,238,047 55,024,619
Net loss (19,980,000) (21,745,330)
Other comprehensive
income - -
Total comprehensive loss (19,980,000) (21,745,330)
Dividends received from
associates by the Group - -
(i) The Group calculated the shares of net assets in proportion of the shareholdings and based on the
amount attributable to the parent company of the associates in their consolidated financial
statements. The amount in the consolidated financial statements of associates considers the fair
value of identifiable assets and liabilities at the time of acquisition of the investments and the impact
of adjustments to uniform accounting policies. None of the assets involved in transactions between
the Group and associates contribute to business.
(ii) Other adjustments were mainly the remeasurement of fair value of remaining equity in the
consolidated financial statements, which resulted from the loss of control over the original
subsidiary due to the disposal of part of the equity investment.
(c) Summarised information of insignificant associates
Aggregated carrying amount of investments 26,625,399 24,904,785
Aggregate of the following items based on shareholding
Net loss(i) 1,720,614 (2,429,558)
Other comprehensive income (i) - -
Total comprehensive loss 1,720,614 (2,429,558)
(i) Net profit and other comprehensive income have taken into account the fair value of identifiable
assets and liabilities at the time of acquisition of the investments and the impact of adjustments to
uniform accounting policies.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Revenue and profits of the Group mainly arise from production and domestic sales of
automobiles, and the primary assets of the Group are all located in China. Management of
the Group assesses the operating performance of the Group as a whole. Therefore, no
segment report is prepared for the current year.
In 2025, the revenue obtained from a single customer of the Group accounted for more than
(1) Information of major shareholders
(a) General information of major shareholders
Type of Place of Legal
enterprise registration representative Nature of business Code of organisation
State-owned Nanchang, Investment and asset
JIC enterprise China Qiu Tiangao management 91360125MA38LUR91F
Foreign United William Clay Ford, Manufacture and sales
Ford enterprise States Jr. of automobiles N/A
(b) Registered capital and changes in major shareholders
JIC 1,000,000,000 - - 1,000,000,000
Ford USD 42,000,000 - - USD 42,000,000
(c) The percentages of shareholding and voting rights in the Company held by major
shareholders
Shareholding Voting rights Shareholding Voting rights
(%) (%) (%) (%)
JIC 41.03% 41.03% 41.03% 41.03%
Ford 32% 32% 32% 32%
(2) Information of subsidiaries
The general information and other related information of subsidiaries are set out in Note
(3) Information of associates
The information of associates is set out in Note 5(13) and 6(2).
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(4) Information of other related parties
Relationship with the Group
JMCG Shareholder of JIC
Chongqing Changan Automobile Co., Ltd.(hereinafter
Shareholder of JIC
referred to as “Chongqing Changan”)
Jiangling Motor Group (Nanchang) Fushan Energy
Controlled by JMCG
Co., LTD
JMCF Controlled by JMCG
JMCG Property Management Co. Controlled by JMCG
JMCG Jiangxi Engineering Construction Co., Ltd. Controlled by JMCG
Jiangxi Jiangling Chassis Co.,Ltd. Controlled by JMCG
Jiangling Aowei Aotomobile Spare Part Co.,Ltd. Controlled by JMCG
Jiangxi JMCG Boya brake system Co., Ltd. Controlled by JMCG
Jiangxi Jiangling group Fuxin Auto Parts Co., Ltd Controlled by JMCG
JMCG Jingma Motors Co., Ltd. Controlled by JMCG
Jiangling Motor Electricity Vehicle Co., Ltd. Controlled by JMCG
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Controlled by JMCG
Jiangxi Jiangling Lear Interior System Co.,Ltd. Controlled by JMCG
Jiangxi JMCG Specialty Vehicles Corporation, Ltd. Controlled by JMCG
Jiangxi JMCG Specialty Vehicles Sales Corporation,
Controlled by JMCG
Ltd.
Jiangxi JMCG Shangrao Industrial Co.,Ltd. Controlled by JMCG
Jiangxi JMCG Industry Co.,Ltd. Controlled by JMCG
Jiangxi Jiangling Special Purpose Vehicle Co.,Ltd. Controlled by JMCG
Jiangxi Jiangling Overseas Automobile Co., Ltd. Controlled by JMCG
Jiangxi Lingge Non-ferrous Metal Die-casting Co.,Ltd. Controlled by JMCG
Jiangxi Lingrui Recycling Resources Development
Controlled by JMCG
Corporation
Jiangxi Mingfang Auto Parts Industry Co., Ltd Controlled by JMCG
Jiangxi Fuxiang Vehicle Co., Ltd. Controlled by JMCG
Jiangxi ISUZU Engine Co.,Ltd. Controlled by JMCG
Jiangxi ISUZU Co., Ltd. Controlled by JMCG
Jiujiang Fuwantong Vehicle Co., Ltd. Controlled by JMCG
Nanchang Gear Forging Co.,Ltd. Controlled by JMCG
Nanchang Hengou Industry Co., Ltd. Controlled by JMCG
Nanchang Jiangling Hua Xiang Auto Components
Controlled by JMCG
Co.,Ltd.
Nanchang JMCG Frame Co.,Ltd. Controlled by JMCG
Nanchang JMCG Liancheng Auto Component
Controlled by JMCG
Co.,Ltd.
Nanchang JMCG Shishun Logistics Co., Ltd. Controlled by JMCG
Nanchang Lianda Machinery Co.,Ltd. Controlled by JMCG
Nanchang Unistar Electric & Electronics Co.,Ltd. Controlled by JMCG
Auto Alliance (Thailand) Co.,Ltd. Controlled by Ford
Ford Global Technologies, LLC Controlled by Ford
Ford Motor Co. Thailand Ltd. Controlled by Ford
Ford Trading Company LLC Controlled by Ford
Ford Vietnam Limited Controlled by Ford
Ford Electric Mach Technology (Nanjing) Co., Ltd. Controlled by Ford
Ford Motor (China) Co., Ltd. Controlled by Ford
Ford Motor Research & Engineering (Nanjing) Co.,
Controlled by Ford
Ltd.
Ford Motor Sales & Service (Shanghai) Co., Ltd. Controlled by Ford
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(4) Information of other related parties
Relationship with the Group
Ford Otomotiv Sanayi A.S. Joint venture of Ford
Changan Ford Automobile Co.,Ltd. Joint venture of Ford
Controlled by Ultimate Holding Company
Anhui Wanyou Automobile Sales service Co. LTD
of Chongqing Changan
Beijing Baiwang Changfu Vehicle Sales & Service Co., Controlled by Ultimate Holding Company
Ltd. of Chongqing Changan
Beijing Beifang Changfu Vehicle Sales & Service Co., Controlled by Ultimate Holding Company
Ltd. of Chongqing Changan
Controlled by Ultimate Holding Company
Chengdu Wanxing Vehicle Sales & Service Co., Ltd.
of Chongqing Changan
Controlled by Ultimate Holding Company
Chengdu Wanyou Vehicle Trade & Service Co.,Ltd
of Chongqing Changan
Controlled by Ultimate Holding Company
Guizhou Wanfu Vehicle Sales & Service Co., Ltd.
of Chongqing Changan
Guizhou Wanjia Automobile Sales and Service Co. Controlled by Ultimate Holding Company
LTD of Chongqing Changan
Harbin Dongan Automotive Engine Manufacturing Controlled by Ultimate Holding Company
Co., Ltd. of Chongqing Changan
Controlled by Ultimate Holding Company
Wanyou Automobile Investment Co., Ltd.
of Chongqing Changan
Controlled by Ultimate Holding Company
Yunan Wanfu Vehicle Sales & Service Co., Ltd.
of Chongqing Changan
Controlled by Ultimate Holding Company
China Changan Group Tianjin Sales Co.,Ltd
of Chongqing Changan
Controlled by Ultimate Holding Company
Chongqing Anfu Vehicle Marketing Co., Ltd.
of Chongqing Changan
Jiangxi Zhengxing Automotive Parts Manufacturing
Joint venture of JMCG
Co., Ltd.
Nanchang Huaxiang Automotive Interior & Exterior
Joint venture of JMCG
Components Co., Ltd.
Nanchang Yinlun Heat-exchanger Co.,Ltd. Joint venture of JMCG
Bosch Electric Drive Systems (Nanchang) Co., Ltd. Associate of JMCG
Dibao transportation equipment (Nanchang) Co., Ltd Associate of JMCG
Jiangling Motor Holdings Co., Ltd Associate of JMCG
Jiangxi Jiangling Group Special Vehicle Co.,Ltd. Associate of JMCG
Jiangxi Jingwei Hirain Technologies Co., Inc. Associate of JMCG
Jiangxi Lingyun Automobile Industry Technology
Associate of JMCG
Co.,Ltd
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. Associate of JMCG
Magna PT Powertrain (Jiangxi) Co., Ltd Associate of JMCG
Nanchang Baojiang Steel Processing Distribution
Associate of JMCG
Co.,Ltd.
Faurecia Emissions Control Technologies
Associate of JMCG
(Nanchang) Co.,Ltd.
Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. Associate of JMCG
Nanchang JMCG Xinchen Auto Component Co.,Ltd. Associate of JMCG
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Related party transactions
(a) Purchase and sales of goods, provision and receipt of services
Purchase of goods:
Natue of related
party transactions 2025 2024
Purchase of
Magna PT Powertrain (Jiangxi) Co., Ltd
automobile parts 1,261,233,176 1,213,283,975
Purchase of
Jiangxi Jiangling Chassis Co.,Ltd.
automobile parts 951,329,470 868,277,838
Jiangxi Jiangling Lear Interior System Purchase of
Co.,Ltd. automobile parts 837,723,534 759,463,783
Nanchang Baojiang Steel Processing Purchase of raw and
Distribution Co.,Ltd. auxiliary materials 816,259,759 820,314,741
Nanchang Jiangling Hua Xiang Auto Purchase of
Components Co.,Ltd. automobile parts 782,570,785 1,263,327,476
Jiangxi Zhonglian Intelligent Logistics Co., Purchase of
Ltd. automobile parts 773,671,632 803,875,765
Jiangxi Jiangling Special Purpose Vehicle Purchase of
Co.,Ltd. automobile parts 670,239,638 544,252,769
Nanchang Huaxiang Automotive Interior & Purchase of
Exterior Components Co., Ltd. automobile parts 482,995,231 -
Nanchang JMCG Liancheng Auto Purchase of
Component Co.,Ltd. automobile parts 352,302,385 368,113,693
Faurecia Emissions Control Technologies Purchase of
(Nanchang) Co.,Ltd. automobile parts 263,305,340 222,487,974
Purchase of
Ford
automobile parts 248,275,827 1,400,778,072
Purchase of
Nanchang JMCG Shishun Logistics Co., Ltd.
automobile parts 242,743,283 181,101,384
Jiangxi Lingyun Automobile Industry Purchase of
Technology Co.,Ltd automobile parts 229,353,907 195,120,129
Harbin Dongan Automotive Engine Purchase of
Manufacturing Co., Ltd. automobile parts 215,977,255 128,047,672
Nanchang Unistar Electric & Electronics Purchase of
Co.,Ltd. automobile parts 213,703,162 228,332,729
Jiangxi Jingwei Hirain Technologies Co., Purchase of
Inc. automobile parts 198,895,268 99,869,772
Purchase of
Nanchang Yinlun Heat-exchanger Co.,Ltd.
automobile parts 134,126,431 117,276,155
Nanchang JMCG SMR Huaxiang Mirror Co., Purchase of
Ltd. automobile parts 133,935,730 135,512,745
Hanon Systems Purchase of
automobile parts 117,232,460 148,048,317
Dibao transportation equipment (Nanchang) Purchase of
Co., Ltd automobile parts 104,604,608 106,869,480
Purchase of
Changan Ford Automobile Co.,Ltd.
automobile parts 99,825,253 178,623,753
Bosch Electric Drive Systems (Nanchang) Purchase of
Co., Ltd. automobile parts 82,122,418 -
Jiangxi Lingge Non-ferrous Metal Die- Purchase of
casting Co.,Ltd. automobile parts 75,935,213 64,642,915
Jiangxi JMCG Specialty Vehicles Purchase of
Corporation, Ltd. automobile parts 45,040,475 49,607,876
Jiangxi Jiangling Group Special Vehicle Purchase of
Co.,Ltd. automobile parts 44,306,875 42,443,490
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods, provision and receipt of services (Cont’d)
Purchase of goods (Cont’d):
Natue of related
party transactions 2025 2024
Jiangxi JMCG Boya brake system Co., Ltd. Purchase of
automobile parts 42,712,368 28,423,858
Nanchang Lianda Machinery Co.,Ltd. Purchase of
automobile parts 38,919,983 32,400,213
Jiangxi Mingfang Auto Parts Industry Co., Purchase of
Ltd automobile parts 29,883,748 14,178,898
Jiangling Motor Group (Nanchang) Fushan Purchase of raw and
Energy Co., LTD auxiliary materials 28,023,086 30,611,533
Jiangxi JMCG Shangrao Industrial Co.,Ltd. Purchase of
automobile parts 27,259,053 26,325,532
Jiangxi Jiangling group Fuxin Auto Parts Purchase of
Co., Ltd automobile parts 19,531,683 22,436,081
Ford Motor Co. Thailand Ltd. Purchase of
automobile parts 14,503,425 139,753,289
Jiangxi Zhengxing Automotive Parts Purchase of
Manufacturing Co., Ltd. automobile parts 11,326,534 -
Jiangling Aowei Aotomobile Spare Part Purchase of
Co.,Ltd. automobile parts 11,079,069 10,685,318
Jiangxi ISUZU Engine Co.,Ltd. Purchase of
automobile parts 8,933,400 2,908,662
Nanchang JMCG Xinchen Auto Component Purchase of
Co.,Ltd. automobile parts 6,764,371 6,604,035
Auto Alliance (Thailand) Co.,Ltd. Purchase of
automobile parts 2,758,494 5,441,378
JMCG Purchase of
automobile parts 2,521,065 77,426,792
Jiangling Motor Holdings Co., Ltd Purchase of
automobile parts 2,164,830 2,741,332
Nanchang JMCG Frame Co.,Ltd. Purchase of
automobile parts 2,025,282 1,000,762
Nanchang Gear Forging Co.,Ltd. Purchase of
automobile parts 1,576,503 2,563,330
Ford Otomotiv Sanayi A.S. Purchase of
automobile parts 1,568,246 1,867,906
JMCG Jingma Motors Co., Ltd. Purchase of
automobile parts 44,962 1,718,914
Jiangxi Lingrui Recycling Resources Purchase of raw and
Development Corporation auxiliary materials 17,479 33,427,557
The Group purchases goods from related parties based on the agreed price between the two
parties as the pricing basis.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods, provision and receipt of services (Cont’d)
Receipt of services:
Nature of related party
transactions 2025 2024
Nanchang JMCG Shishun Logistics Transportation,
Co., Ltd. cartage fees, etc. 271,649,658 291,458,533
Ford Global Technologies, LLC Technology development 151,258,877 218,930,299
Ford Motor Research & Engineering Design fees,
(Nanjing) Co., Ltd. personnel costs 147,796,114 135,795,642
Ford Trademark usage,
personnel costs, etc. 95,741,157 95,728,384
Ford Motor (China) Co., Ltd. Design fees,
personnel costs, etc. 81,785,182 41,382,841
Jiangxi Zhonglian Intelligent Cartage fees,
Logistics Co., Ltd. storage fees, etc. 78,657,950 64,392,144
Jiangxi JMCG Industry Co.,Ltd. Meal fees 34,022,696 33,349,736
JMCG Jiangxi Engineering Engineering construction
Construction Co., Ltd. 26,015,314 120,556,432
Ford Motor Sales & Service Promotion expenses
(Shanghai) Co., Ltd. 21,704,280 -
JMCG Property Management Co. Property fees, etc. 17,282,827 14,600,286
Jiangxi Jiangling Motors Imp. & Exp. Agency fees,
Co., Ltd. advertising fees, etc. 16,670,646 17,326,503
Jiangxi Jingwei Hirain Technologies Design fees
Co., Inc. 14,224,700 870,000
JMCG Labour costs,
rental fees, etc. 7,917,294 4,087,090
Nanchang Jiangling Hua Xiang Auto Design fees, Prototype
Components Co.,Ltd. development costs, etc. 5,244,498 -
Chongqing Anfu Vehicle Marketing Warranty and promotion
Co., Ltd. expenses 3,247,709 2,491,320
Magna PT Powertrain (Jiangxi) Co., Design fees,
Ltd experimental costs 2,996,779 37,220
Chongqing Changan Automobile Personnel costs
Co.,Ltd 2,691,958 2,574,845
China Changan Group Tianjin Sales Promotion expenses
Co.,Ltd 2,561,509 3,394,286
Guizhou Wanfu Vehicle Sales & Promotion expenses
Service Co., Ltd. 1,755,849 3,021,024
JMCG Jingma Motors Co., Ltd. Promotion expenses 1,639,863 1,124,348
Changan Ford Automobile Co.,Ltd. Design fees,
service fees, etc. 1,522,453 703,553
Chengdu Wanxing Vehicle Sales & Warranty and
Service Co., Ltd. promotion expenses 1,064,820 2,522,662
Ford Otomotiv Sanayi A.S. Technical services and
technical development 227,034 1,215,889
Jiangxi JMCG Specialty Vehicles Promotion expenses
Sales Corporation, Ltd. 209,519 1,509,142
The Group’s pricing on services received from related parties is based on the agreed price by both parties.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods, provision and receipt of services (Cont’d)
Sales of goods and provision of services:
Nature of related party
transactions 2025 2024
Jiangxi Jiangling Motors Imp. & Sales of vehicles and
Exp. Co., Ltd. accessories, etc. 14,765,138,898 10,827,024,547
Jiangxi JMCG Specialty Vehicles
Sales Corporation, Ltd. Sales of vehicles 221,050,647 158,841,415
Sales of vehicles and
JMCG Jingma Motors Co., Ltd.
accessories 117,419,661 123,316,338
Jiangxi JMCG Specialty Vehicles Sales of vehicles and
Corporation, Ltd. accessories 115,335,232 147,776,860
Chongqing Anfu Vehicle Marketing Sales of vehicles and
Co., Ltd. accessories 101,552,685 108,989,648
Jiangxi Lingrui Recycling
Resources Development Sales of waste
Corporation materials, etc. 81,499,350 70,715,213
Chengdu Wanxing Vehicle Sales & Sales of vehicles and
Service Co., Ltd. accessories 63,769,656 98,609,717
China Changan Group Tianjin Sales of vehicles and
Sales Co.,Ltd accessories 50,597,449 103,326,239
Nanchang Jiangling Hua Xiang
Auto Components Co.,Ltd. Sales of accessories 43,166,836 21,492,252
Guizhou Wanfu Vehicle Sales & Sales of vehicles and
Service Co., Ltd. accessories 42,481,833 60,983,086
Nanchang Hengou Industry Co., Sales of accessories,
Ltd. etc. 37,362,544 22,279,648
Jiangxi Jiangling Chassis Co.,Ltd. Sales of accessories 33,489,852 31,378,213
Nanchang JMCG SMR Huaxiang
Mirror Co., Ltd. Sales of accessories 27,290,455 30,704,569
Yunan Wanfu Vehicle Sales & Sales of vehicles and
Service Co., Ltd. accessories 25,659,210 783
Jiangxi Jiangling Group Special Sales of vehicles and
Vehicle Co.,Ltd. accessories 24,239,203 21,765,371
Jiangxi Jiangling Special Purpose Sales of vehicles and
Vehicle Co.,Ltd. accessories 22,348,702 26,328,071
Jiangxi Jiangling Lear Interior
System Co.,Ltd. Sales of accessories 22,306,736 19,454,493
Jiangxi Zhonglian Intelligent
Logistics Co., Ltd. Sales of accessories 21,162,565 84,009,526
Jiangxi ISUZU Co., Ltd. Sales of accessories 17,737,497 15,463,036
Nanchang JMCG Liancheng Auto
Component Co.,Ltd. Sales of accessories 15,430,270 16,742,013
Jiangxi ISUZU Engine Co.,Ltd. Sales of accessories 15,219,564 30,660,694
Beijing Beifang Changfu Vehicle Sales of vehicles and
Sales & Service Co., Ltd. accessories 13,369,613 4,620,426
Sales of accessories
Jiangxi JMCG Industry Co.,Ltd.
and waste materials 8,080,110 3,756,352
Beijing Baiwang Changfu Vehicle Sales of vehicles and
Sales & Service Co., Ltd. accessories 5,741,638 11,338,763
Wanyou Automobile Investment Sales of vehicles and
Co., Ltd. accessories 4,085,315 -
Anhui Wanyou Automobile Sales Sales of vehicles and
service Co. LTD accessories 4,058,802 70
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods, provision and receipt of services (Cont’d)
Sales of goods and provision of services(Cont’d):
Nature of related
party transactions 2025 2024
Jiujiang Fuwantong Vehicle Co., Sales of vehicles and
Ltd. accessories 3,652,477 4,036
Jiangxi Jiangling Overseas Sales of vehicles and
Automobile Co., Ltd. accessories 3,100,755 3,873
Sales of vehicles and
Jiangxi Fuxiang Vehicle Co., Ltd.
accessories 2,745,084 8,226
Chengdu Wanyou Vehicle Trade Sales of vehicles and
& Service Co.,Ltd accessories, etc. 1,690,050 184
Magna PT Powertrain (Jiangxi)
Co., Ltd Sales of accessories 1,392,501 817,800
Jiangling Motor Electricity Vehicle
Co., Ltd. Sales of accessories 1,358,852 1,172,369
Ford Motor Sales & Service
(Shanghai) Co., Ltd. Provide services 1,267,635 -
Guizhou Wanjia Automobile Sales of vehicles and
Sales and Service Co., LTD accessories - 7,641,217
The Group’s pricing on goods sold to related parties is based on the agreed price by both parties.
(b) Leases
(i) The lease income recognised in the current year with the Group as the lessor:
Type of the leased
Name of the lessee asset 2025 2024
Jiangxi Zhengxing Automotive Parts
Manufacturing Co., Ltd. Equipment 1,307,009 -
Jiangling Motor Holdings Co., Ltd. Buildings 8,935 158,956
Jiangxi ISUZU Co., Ltd. Buildings 2,945 6,480
(ii) Increase of right-of-use assets in the current year with the Group as the lessee
Type of the leased
Name of the lessor asset 2025 2024
Jiangxi Jiangling Motors Imp. & Exp.
Co., Ltd. Buildings - 37,552,314
Ford Motor (China) Co., Ltd Buildings - 608,092
JMCG Buildings - 364,586
- 38,524,992
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Related party transactions (Cont’d)
(b) Leases(Cont’d)
(iii) Interest costs on lease liabilities in the current year with the Group as the lessee:
Type of the leased asset 2025 2024
Jiangxi Jiangling Motors Imp.
& Exp. Co., Ltd. Buildings 804,794 998,142
JMCG Buildings 95,402 503,840
Ford Motor (China) Co., Ltd Buildings 20,054 11,845
(c) Guarantee received
Guaranteed
Guarantor amount Starting date Ending date Fully performed or not
JMCF 920,551 5 March 2001 30 October 2029 Not fully performed
In 2025, JMCF provided guarantees for some bank borrowings of the Group, with a maximum
guarantee limit of USD2,282,123. As at 31 December 2025, JMCF provided borrowing guarantee
to the bank borrowing of USD130,968, equivalent to RMB920,551 (31 December 2024:
USD196,453 equivalent to RMB1,412,180) for the Group.
(d) Purchase of assets
Nature of related party
transactions 2025 2024
Jiangxi Jiangling Special
Purpose Vehicle Co.,Ltd. Purchase of fixed assets 16,503,583 34,995,383
Nanchang Jiangling Hua Xiang
Auto Components Co.,Ltd. Purchase of fixed assets 4,411,457 24,446,632
Nanchang JMCG Liancheng
Auto Component Co.,Ltd. Purchase of fixed assets 3,890,000 5,003,929
Magna PT Powertrain (Jiangxi)
Co., Ltd Purchase of fixed assets 2,975,266 1,952,878
Jiangxi Jiangling Chassis
Co.,Ltd. Purchase of fixed assets 2,100,000 -
Jiangxi Lingyun Automobile
Industry Technology Co.,Ltd Purchase of fixed assets 901,500 -
JMCG Jingma Motors Co., Ltd. Purchase of fixed assets - 3,928,253
Jiangxi Jiangling Lear Interior
System Co.,Ltd. Purchase of fixed assets - 2,693,550
Faurecia Emissions Control
Technologies (Nanchang)
Co.,Ltd. Purchase of fixed assets - 2,210,790
Jiangxi JMCG Specialty
Vehicles Corporation, Ltd. Purchase of fixed assets - 135,036
The Group’s pricing on goods sold to related parties is based on the agreed price by both parties.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Related party transactions (Cont’d)
(e) Provision of technology sharing and distribution service
Nature of related party
transactions 2025 2024
Ford Global Technologies, LLC Technical service 384,878,125 -
Jiangxi Jiangling Motors Imp. & Exp.
Co., Ltd. Technical service 142,611,877 20,450,200
Ford Electric Mach Technology Technical service
(Nanjing) Co., Ltd. 116,791,318 199,272,148
Ford Motor (China) Co., Ltd. Distribution service 14,197,227 24,096,419
Ford Trading Company LLC Technical service 9,550,000 2,770,000
Ford Vietnam Limited Technical service 1,452,183 22,710,000
Ford Motor Research & Engineering Technical service
(Nanjing) Co., Ltd. - 23,758,214
Nanchang Hengou Industry Co., Ltd. Technical service - 4,557,500
The Group’s pricing on technology sharing provided to related parties is based on the agreed
price by both parties.
(f) Remuneration of key management
Remuneration of key management 10,270,544 14,163,069
(g) Interest income
JMCF 14,773,588 18,455,436
Cash at bank of the Group deposited with JMCF was calculated based on the bank annual
interest rate for RMB deposit of 0.85% to 1.55% over the same period (2024: 1.35% to 2.25%).
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Related party transactions (Cont’d)
(h) Interest expenses
Ford Motor (China) Co., Ltd. 5,309,687 -
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. 120,000 120,000
Nanchang JMCG Shishun Logistics Co., Ltd. 30,000 30,000
(i) Funds borrowed in
Ford Motor (China) Co., Ltd. 85,750,000 85,750,000
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(6) Receivables from and payables to related parties
Accounts receivable
Provision
for bad Provision for
Amount debts Amount bad debts
Jiangxi Jiangling Motors Imp.
& Exp. Co., Ltd. 4,616,206,969 9,532,031 2,984,138,301 6,078,032
JMCG Jingma Motors Co., Ltd. 47,279,252 151,735 33,013,773 99,416
Jiangxi Zhonglian Intelligent
Logistics Co., Ltd. 16,607,018 49,821 19,871,496 59,614
Nanchang Jiangling Hua Xiang
Auto Components Co.,Ltd. 15,544,213 46,633 5,182,808 15,548
Jiangxi ISUZU Co., Ltd. 7,866,057 23,598 3,720,130 11,160
Jiangxi Jiangling Lear Interior
System Co.,Ltd. 6,755,350 20,266 4,753,891 14,262
Jiangxi JMCG Specialty
Vehicles Corporation, Ltd. 4,907,660 1,814 55,452,936 17,776
Jiangxi JMCG Specialty
Vehicles Sales Corporation,
Ltd. 3,731,251 739 6,455,121 1,920
Nanchang JMCG Liancheng
Auto Component Co.,Ltd. 3,065,801 9,197 3,764,288 11,293
Jiangxi ISUZU Engine Co.,Ltd. 2,549,343 7,648 7,314,839 21,945
Ford Trading Company LLC 1,820,000 5,460 - -
Jiangxi JMCG Industry
Co.,Ltd. 1,083,907 3,252 631,675 1,895
Ford Electric Mach
Technology (Nanjing) Co.,
Ltd. 158,571 476 7,673,176 23,020
Ford Motor (China) Co., Ltd. - - 6,304,028 18,912
Ford Vietnam Limited - - 3,850,000 11,550
Other receivables
Provisio
n for bad Provision for
Amount debts Amount bad debts
Jiangxi Jiangling Motors Imp.
& Exp. Co., Ltd. 8,678,667 25,931 4,959,843 24,439
Ford Motor (China) Co., Ltd. 1,885,311 5,656 - -
Ford Motor Sales & Service
(Shanghai) Co., Ltd. 1,343,694 4,031 - -
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(6) Receivables from and payables to related parties (Cont’d)
Advances to suppliers
Nanchang Baojiang Steel Processing
Distribution Co., Ltd. 91,759,002 82,972,689
Financing receivables
Jiangxi Jiangling Motors Imp. & Exp.
Co., Ltd. 147,945,413 -
JMCG Jingma Motors Co., Ltd. 2,468,962 8,972,230
Jiangxi ISUZU Engine Co.,Ltd. 712,751 5,496,370
Jiangxi JMCG Specialty Vehicles
Corporation, Ltd. 6,000 48,401,766
Jiangxi Jiangling Special Purpose
Vehicle Co.,Ltd. - 2,079,413
Jiangxi ISUZU Co., Ltd. - 110,000
Cash at bank
JMCF 1,592,494,805 1,407,604,416
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(6) Receivables from and payables to related parties (Cont’d)
Accounts payable
Jiangxi Jiangling Lear Interior System Co.,Ltd. 419,610,763 360,356,137
Nanchang Jiangling Hua Xiang Auto Components
Co.,Ltd. 339,272,999 636,898,853
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. 298,526,234 327,079,328
Jiangxi Jiangling Chassis Co.,Ltd. 281,190,452 255,072,881
Nanchang Huaxiang Automotive Interior & Exterior
Components Co., Ltd. 264,555,517 -
Jiangxi Jiangling Special Purpose Vehicle Co.,Ltd. 258,868,938 178,167,668
Magna PT Powertrain (Jiangxi) Co., Ltd 230,896,819 213,711,414
Nanchang JMCG Liancheng Auto Component
Co.,Ltd. 127,011,360 185,528,237
Nanchang JMCG Shishun Logistics Co., Ltd. 102,537,845 63,592,060
Ford 101,603,052 250,461,509
Faurecia Emissions Control Technologies (Nanchang)
Co.,Ltd. 90,135,188 66,628,906
Dibao transportation equipment (Nanchang) Co., Ltd 87,101,643 55,834,503
Harbin Dongan Automotive Engine Manufacturing Co.,
Ltd. 79,587,095 41,835,249
Bosch Electric Drive Systems (Nanchang) Co., Ltd. 50,329,567 -
Nanchang Yinlun Heat-exchanger Co.,Ltd. 49,496,828 37,417,773
Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. 44,866,960 43,878,807
Jiangxi Jingwei Hirain Technologies Co., Inc. 37,415,298 40,491,776
Jiangxi Lingyun Automobile Industry Technology
Co.,Ltd 37,021,732 48,459,492
Hanon Systems 34,015,272 50,706,474
Nanchang Unistar Electric & Electronics Co.,Ltd. 30,110,251 30,195,971
Jiangxi Jiangling Group Special Vehicle Co.,Ltd. 23,989,369 19,674,440
Jiangxi JMCG Specialty Vehicles Corporation, Ltd. 20,129,520 26,610,602
Nanchang Lianda Machinery Co.,Ltd. 18,239,104 10,731,546
Jiangxi JMCG Boya brake system Co., Ltd. 17,024,842 9,558,647
Jiangxi Mingfang Auto Parts Industry Co., Ltd 13,960,106 8,944,064
Changan Ford Automobile Co.,Ltd. 11,170,263 23,802,841
Jiangxi Lingge Non-ferrous Metal Die-casting Co.,Ltd. 9,958,459 28,707,639
Jiangling Aowei Aotomobile Spare Part Co.,Ltd. 7,000,633 6,042,853
Jiangxi ISUZU Engine Co.,Ltd. 5,714,745 2,758,942
Jiangxi Zhengxing Automotive Parts Manufacturing
Co., Ltd. 5,306,616 -
Jiangxi Jiangling group Fuxin Auto Parts Co., Ltd 4,913,122 3,726,062
Jiangxi JMCG Shangrao Industrial Co.,Ltd. 4,470,727 7,115,719
Jiangling Motor Group (Nanchang) Fushan Energy
Co., LTD 3,838,607 2,922,507
Nanchang JMCG Xinchen Auto Component Co.,Ltd. 3,463,250 2,979,179
JMCG 3,005,892 39,486,926
JMCG Jingma Motors Co., Ltd. 2,650,990 2,606,028
Nanchang JMCG Frame Co.,Ltd. 456,998 1,091,724
Jiangxi Lingrui Recycling Resources Development
Corporation - 11,463,008
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. - 11,243,955
Ford Motor Co. Thailand Ltd. - 6,940,038
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(6) Receivables from and payables to related parties (Cont’d)
Other payables
Ford 135,932,978 81,659,263
Ford Global Technologies, LLC 104,008,803 45,777,385
Ford Motor Research & Engineering (Nanjing) Co., Ltd. 101,729,209 61,846,021
Ford Motor (China) Co., Ltd. 77,322,435 144,907,458
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 71,280,639 51,837,372
Nanchang JMCG Shishun Logistics Co., Ltd. 65,385,503 26,831,215
Nanchang Jiangling Hua Xiang Auto Components Co.,Ltd. 32,534,219 35,565,451
JMCG Property Management Co. 22,149,851 8,466,756
Ford Motor Sales & Service (Shanghai) Co., Ltd. 21,704,280 -
Jiangxi Jingwei Hirain Technologies Co., Inc. 13,318,646 911,550
JMCG Jiangxi Engineering Construction Co., Ltd. 12,843,807 25,905,249
Jiangxi Jiangling Special Purpose Vehicle Co.,Ltd. 9,893,430 27,838,079
Chongqing Anfu Vehicle Marketing Co., Ltd. 8,611,595 165,753
JMCG 8,449,024 7,636,166
Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd. 8,199,190 8,431,243
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. 7,271,904 5,703,062
Jiangxi Jiangling Chassis Co.,Ltd. 6,101,537 1,681,716
Jiangxi JMCG Specialty Vehicles Corporation, Ltd. 5,979,373 5,772,611
Chengdu Wanxing Vehicle Sales & Service Co., Ltd. 3,358,444 401,182
Jiangxi JMCG Industry Co.,Ltd. 3,230,883 3,000,344
Chongqing Changan Automobile Co.,Ltd 2,691,958 2,574,845
Jiangxi Jiangling Lear Interior System Co.,Ltd. 2,366,149 1,518,633
Guizhou Wanfu Vehicle Sales & Service Co., Ltd. 2,365,316 2,937,977
Nanchang JMCG Liancheng Auto Component Co.,Ltd. 1,890,523 1,908,156
Jiangxi JMCG Boya brake system Co., Ltd. 1,646,490 39,921
Jiangxi Jiangling Group Special Vehicle Co.,Ltd. 1,547,766 653,129
Bosch Electric Drive Systems (Nanchang) Co., Ltd. 1,365,331 -
Magna PT Powertrain (Jiangxi) Co., Ltd 1,311,073 1,488,027
Nanchang Unistar Electric & Electronics Co.,Ltd. 1,246,983 270,888
China Changan Group Tianjin Sales Co.,Ltd 1,158,724 216,345
Contract liabilities
Ford Global Technologies, LLC 148,989,875 -
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 21,463,072 3,930,000
Ford Electric Mach Technology (Nanjing) Co., Ltd. 8,568,735 62,310,452
Ford Vietnam Limited 2,377,817 -
Jiangxi Jiangling Group Special Vehicle Co.,Ltd. 1,810,239 1,436,028
Jiangxi Jiangling Special Purpose Vehicle Co.,Ltd. 872,161 1,506,350
Nanchang Hengou Industry Co., Ltd. 281,807 1,860,835
Guizhou Wanjia Automobile Sales and Service Co. LTD - 1,318,467
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(6) Receivables from and payables to related parties (Cont’d)
Lease liabilities
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 17,991,177 30,593,850
Ford Motor (China) Co., Ltd. 429,403 589,853
JMCG - 5,862,186
Notes Payable
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. 51,987,191 -
Jiangxi Jiangling Lear Interior System Co.,Ltd. 43,447,910 -
Jiangxi Jingwei Hirain Technologies Co., Inc. 21,148,158 -
Jiangxi Lingge Non-ferrous Metal Die-casting Co.,Ltd. 20,028,725 -
Dibao transportation equipment (Nanchang) Co., Ltd 5,987,652 -
(7) Commitments in relation to related parties
Capital commitments
JMCG Jiangxi Engineering Construction
Co., Ltd. 50,047,100 6,640,100
Guarantee of commitments in relation to related parties is set out in Note 8(5)(c).
As at 31 December 2025, the Group had no contingencies that needed to be disclosed in the
notes to the financial statements.
Capital expenditure commitments
Capital expenditures contracted for by the Group but are not yet necessary to be recognised
on the balance sheet as at the balance sheet date are as follows:
Buildings, machinery and equipment 447,365,000 477,562,000
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(1) Profit distribution
According to the resolution of the meeting of Board of Directors on 27 March 2025, the Board
of Directors proposed to distribute cash dividends of RMB0.55581 per share to all
shareholders, calculated on the basis of 854,581,922 issued shares minus the number of
shares held in the company’s dedicated repurchase securities account, for a total of
RMB474,985,178.
The Group’s activities expose it to a variety of financial risks, which mainly comprise market
risk (primarily including foreign exchange risk and interest rate risk), credit risk and liquidity
risk. The above financial risks and the Group’s risk management policies to mitigate the risks
are as follows:
The Board of Directors is responsible for planning and establishing the Group’s risk
management framework, formulating the Group’s risk management policies and related
guidelines, and supervising the implementation of risk management measures. The Group
has established risk management policies to identify and analyse the risks faced by the
Group. These risk management policies specify the risks such as market risk, credit risk and
liquidity risk management. The Group regularly evaluates the market environment and
changes in the Group’s operating activities to determine whether to update the risk
management policies and systems or not. The Group’s risk management is carried out by
the Risk Management Committee under policies approved by the Board of Directors. The
Risk Management Committee works closely with other business departments of the Group
to identify, evaluate and avoid relevant risks. The internal audit department of the Group
conducts periodical audit to the controls and procedures for risk management and reports
the audit results to the Audit Committee of the Group.
(1) Market risk
(a) Foreign exchange risk
The Group’s major operational activities are carried out in the mainland China and a majority
of the transactions are denominated in RMB. The Group is exposed to foreign exchange
risk arising from the recognised assets and liabilities, and future transactions denominated
in foreign currencies, primarily with respect to USD. The Group continuously monitors the
amount of assets and liabilities, and transactions denominated in foreign currencies to
minimise the foreign exchange risk. As at 31 December 2025, the Group’s borrowings
denominated in foreign currencies were USD130,968, equivalent to RMB920,551. The
Group's other accounts payable denominated in foreign currencies was USD33,867,645,
equivalent to RMB238,048,904. The Group signed forward exchange contracts to mitigate
the foreign exchange risk(Note 5(3), Note 5(31)).
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
The financial assets and financial liabilities denominated in foreign currencies, which were
held by the Group, were expressed in RMB as at 31 December 2025 and 31 December 2024
as follows:
USD USD
Financial assets denominated in
foreign currency -
Derivative financial asset - 12,612,380
Financial liabilities denominated in
foreign currency -
Derivative financial liability 695,349 -
Current portion of long-term
borrowings 460,275 470,727
Long-term borrowings 460,276 941,453
Other payables 238,048,904 78,220,386
As at 31 December 2025, for various types of foreign currency financial assets and foreign
currency financial liabilities, if RMB appreciates or depreciates by 10% against the US dollar,
and other factors remain unchanged, the Group will increase or decrease its total profit by
approximately RMB23,966,480 (31 December 2024: approximately RMB6,702,019)
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(1) Market risk (Cont’d)
(b) Interest rate risk
The Group’s interest rate risk mainly arises from interest-bearing debts such as short-term
borrowings and long-term borrowings. The financial liabilities of floating interest rate expose
the Group to cash flow interest rate risk, and the financial liabilities of fixed interest rate
expose the Group to fair value interest rate risk. The Group determines the relative
proportions of fixed-rate and floating-rate contracts based on the prevailing market
environment. As at 31 December 2025, the Group’s short-term borrowings of
RMB1,950,000,000 (31 December 2024: RMB1,500,000,000) were fixed-rate borrowings,
and long-term borrowings of USD130,968 (31 December 2024: USD196,453) were fixed-
rate contracts, therefore there was no significant cash flow interest rate risk.
The Group continuously monitors the interest rate position of the Group. Increases in
interest rates will increase the cost of new borrowing, and therefore could have a material
adverse effect on the Group’s financial performance. Management makes adjustments
timely with reference to the latest market conditions and may enter into interest rate swap
agreements to mitigate its exposure to interest rate risk. During 2025 and 2024, the Group
did not enter into any interest rate swap agreements.
As at 31 December 2025 and 31 December 2024, there was no significant difference
between the fair value and the carrying amount of the Group’s bank borrowings with fixed
rates.
(2) Credit risk
The Group’s credit risk mainly arises from cash at bank and on hand, notes receivable,
accounts receivable, financing receivables, other receivables, long-term receivables and
derivative financial assets at fair value through profit or loss that are not included in the
impairment assessment scope. The carrying amount of the Group’s financial assets reflects
its maximum credit exposure at the balance sheet date.
The Group expects that there is no significant credit risk associated with cash at bank and
on hand since they are deposited at state-owned banks and other large or medium size
banks with good reputation and high credit rating. The Group does not expect that there
will be significant losses from non-performance by these banks.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(2) Credit risk (Cont’d)
The Group has policies to limit the credit exposure on notes receivable, accounts receivable,
financing receivables, other receivables and long-term receivables. The Group assesses the
credit quality of and sets credit limits on its customers by taking into account their financial
position, the availability of guarantee from third parties, their credit history and other factors
such as current market conditions. The credit history of the customers is regularly monitored
by the Group. In respect of customers with a poor credit history, the Group will use written
payment reminders, or shorten or cancel credit periods, to ensure the overall credit risk of the
Group is limited to a controllable extent.
As at 31 December 2025, the Group had no significant collateral or other credit enhancements
held as a result of the debtor’s mortgage (31 December 2024: Nil).
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the
Group. The Group monitors rolling forecasts of the Group’s short-term and long-term liquidity
requirements to ensure it has sufficient cash, while maintaining sufficient headroom on its
undrawn committed borrowing facilities from major financial institutions so that the Group
does not breach borrowing limits or covenants on any of its borrowing facilities to meet the
short-term and long-term liquidity requirements.
As at the balance sheet date, the financial liabilities of the Group were analysed by their
maturity date below at their undiscounted contractual cash flows:
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Derivative
financial liability 695,349 - - - 695,349
Short-term
borrowings 1,950,000,000 - - - 1,950,000,000
Notes payable 427,292,904 - - - 427,292,904
Accounts
payable 11,397,760,484 - - - 11,397,760,484
Other payables 5,803,694,871 - - - 5,803,694,871
Lease liabilities 94,181,823 19,112,654 27,987,771 - 141,282,248
Long-term
borrowings 472,357 465,454 - - 937,811
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term
borrowings 1,500,000,000 - - - 1,500,000,000
Accounts
payable 10,061,223,944 - - - 10,061,223,944
Other payables 5,742,026,472 - - - 5,742,026,472
Lease liabilities 90,725,324 84,460,529 10,891,131 - 186,076,984
Long-term
borrowings 490,144 483,082 476,023 - 1,449,249
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(3) Liquidity risk (Cont’d)
(i) As at 31 December 2025, the Group did not have lease contracts that had been signed but
had not yet been performed.
The level in which fair value measurement is categorised is determined by the level of the fair
value hierarchy of the lowest level input that is significant to the entire fair value measurement:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
(1) Assets and liabilities measured at fair value on a recurring basis
As at 31 December 2025, the assets measured at fair value on a recurring basis by the
above three levels were analysed below:
Level 1 Level 2 Level 3 Total
Financial assets
Financial assets held for
trading -
Structured deposit - 801,902,466 - 801,902,466
Financing receivables - - -
Notes receivable - 205,851,591 - 205,851,591
- 1,007,754,057 - 1,007,754,057
As at 31 December 2024, the assets measured at fair value on a recurring basis by the above
three levels were analysed below:
Level 1 Level 2 Level 3 Total
Financial assets
Derivative financial asset-
Forward foreign exchange
contracts - 12,612,380 - 12,612,380
Financing receivables -
Notes receivable - 302,065,502 - 302,065,502
- 314,677,882 - 314,677,882
As at 31 December 2025, the liabilities measured at fair value on a recurring basis by the
above three levels were analysed below:
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Level 1 Level 2 Level 3 Total
Financial liabilities
Derivative financial liabilities -
Forward foreign exchange contracts - 695,349 - 695,349
(1) Assets and liabilities measured at fair value on a recurring basis (Cont'd)
As at 31 December 2025, the Group had no continuing liabilities at fair value.
The Group takes the date on which events causing the transfers between the levels take
place as the timing specific for recognising the transfers. There was no transfer between
Level 1 and Level 2 in 2025.
The fair value of financial instruments traded in an active market is determined at the quoted
market price; and the fair value of those not traded in an active market is determined by the
Group using valuation technique.
(2) Assets measured at fair value on a non-recurring basis
As at 31 December 2025 and 31 December 2024, the Group had no assets measured at fair
value on a non-recurring basis.
(3) Assets and liabilities not measured at fair value but for which the fair value is disclosed
The Group’s financial assets and liabilities measured at amortised cost mainly comprise
notes receivable, accounts receivable, other receivables, long-term receivables, short-term
borrowings, payables, lease liabilities and long-term borrowings.
The carrying amount of the Group’s financial assets and liabilities not measured at fair value
is a reasonable approximation of their fair value.
The Group’s capital management policies aim to safeguard the Group’s ability to continue as
a going concern in order to provide returns for shareholders and benefits for other
stakeholders, and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of
dividends paid to shareholders, refund capital to shareholders, issue new shares or sell
assets to reduce debts.
The Group's total capital is calculated as “shareholders’ equity” as shown in the consolidated
balance sheet. The Group is not subject to external mandatory capital requirements, and
monitors capital on the basis of equity ratio.
As at 31 December 2025 and 31 December 2024, the Group’s equity ratio was as follows:
Total borrowings 1,950,920,551 1,501,412,180
Total shareholders’ equity 11,392,038,408 10,595,344,521
Equity ratio 17% 14%
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(1) Accounts receivable
Accounts receivable 6,815,674,720 5,595,070,789
Less: Provision for bad debts (551,092,111) (74,023,216)
(a) The aging of accounts receivable was analysed as follows:
Within 1 year 6,034,988,177 5,415,107,619
Over 1 year 780,686,543 179,963,170
As of 31 December 2025, accounts receivable with significant individual amounts and
aging exceeding three years was analysed as follows:
Balance Reason and collection risk
Company1 64,924,598 Due to the operating difficulties of the defaulting
company and several lawsuits involved, the
Company considered that the receivables were
difficult to collect and had therefore made full
provision for bad debts.
Company2 64,698,887 Accounts receivable from related parties within
the group, expected to be fully recovered, without
provision for bad debts
(b) As at 31 December 2025, the top five accounts receivable ranked by the balances of the
debtors were analysed as follows:
Amount of
provision for bad
Balance debts % of total balance
The total amount of
accounts receivable
in the top five 6,590,634,356 549,857,303 96.70%
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(1) Accounts receivable (Cont’d)
(c) Provision for bad debts
For accounts receivable, the Company measures the loss provision based on the lifetime
ECL regardless of whether there is a significant financing component.
The provision for bad debts of accounts receivable was analysed by category as follows:
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 1,986,944,666 29.00% 540,672,868 27.21%
Provision for bad debts on the
grouping basis (ii) 4,828,730,054 71.00% 10,419,243 0.22%
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 2,294,478,118 41% 66,796,993 2.91%
Provision for bad debts on the
grouping basis (ii) 3,300,592,671 59% 7,226,223 0.22%
(i) Accounts receivable for which the provision for bad debts was provided on the individual
basis were analysed follows:
Book balance Provision for bad debts
Amount Lifetime ECL (%) Provision for bad debts
Receivables from related parties
within the Group i) 1,922,020,068 25% 475,748,270
Receivables for
automobiles ii) 64,924,598 100% 64,924,598
Book balance Provision for bad debts
Provision for bad
Amount Lifetime ECL (%) debts
Receivables from related parties
within the Group i) 2,227,681,125 - -
Receivables for
automobiles ii) 66,796,993 100% 66,796,993
i) As at 31 December 2025, the Company’s accounts receivable from subsidiary JMC &
Ford (Shanghai), SZFJ and GZFJ were RMB529,737,786, RMB1,385,321,982 and
RMB6,960,300 (31 December 2024: RMB1,453,456,415, RMB767,264,410, and
RMB6,960,300). The Company has individually assessed the receivable from JMC & Ford
(Shanghai), a subsidiary, and recognized an impairment loss of RMB475,748,270 based
on its evaluation of credit risk.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(1) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(i) Accounts receivable for which the provision for bad debts was provided on the individual
basis were analysed follows (Cont’d):
ii) As at 31 December 2025, the Company assessed the expected credit losses of the
relevant accounts receivable, which were expected to be unrecoverable, and therefore
made a provision for bad debts in full amounting to RMB64,924,598 (31 December 2024:
RMB66,796,993), which was included in the reversal of profit or loss of RMB1,872,395
(2024: Return to RMB5,433,007).
(ii) Accounts receivable for which provision for bad debts was made on the grouping basis were
analysed as follows:
Grouping – Domestic sales of general automobiles:
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 114,439,713 0.02% 22,651
Overdue for 1 to 30 days - - -
Overdue for 31 to 60 days 2,549,619 2.18% 55,521
Overdue for 61 to 90 days - - -
Overdue over 90 days 2,058,700 9.18% 188,989
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 136,590,607 0.03% 40,628
Overdue for 1 to 30 days 840,000 0.55% 4,605
Overdue for 31 to 60 days - - -
Overdue for 61 to 90 days - - -
Overdue over 90 days 1,074,500 9.00% 96,705
Grouping – Export sales of general automobiles:
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 4,538,555,702 0.20% 9,077,111
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(1) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(ii) Accounts receivable for which provision for bad debts is made on the grouping basis are
analysed as follows (Cont’d):
Grouping – Export sales of general automobiles(Cont’d):
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 2,933,133,292 0.20% 5,866,267
Grouping - Sales of new energy automobiles:
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Overdue over 90 days 562,680 80.00% 450,144
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Overdue over 90 days 563,760 80.00% 451,008
Grouping – Automobile parts:
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 160,521,184 0.30% 481,564
Overdue for 1 to 30 days 5,892,457 0.30% 17,677
Overdue for 31 to 60 days 1,349,957 0.50% 6,750
Overdue for 61 to 90 days 481,041 0.60% 2,886
Overdue over 90 days 2,319,001 5.00% 115,950
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 202,384,142 0.30% 607,153
Overdue for 1 to 30 days 10,256,078 0.30% 30,768
Overdue for 31 to 60 days 8,788,453 0.50% 43,942
Overdue for 61 to 90 days 5,976,016 0.60% 35,856
Overdue over 90 days 985,823 5.00% 49,291
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(1) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(iii) The provision for bad debts was RMB477,068,895 this year.
(d) There was no provision for bad debts actually written off during the year.
(e) As at 31 December 2025 and 31 December 2024, there were no accounts receivable pledged.
(2) Other receivables
Receivables from land acquisition
and storage 79,807,336 -
Gas and electricity bills 21,112,025 18,531,901
Receivables from JMCH 14,767,717 14,542,410
Import working capital 5,000,000 3,900,523
Receivables from Jiangling Ford
(Shanghai) - 89,250,000
Others 14,363,159 18,612,697
Less: Provision for bad debts (143,653) (220,324)
The Company did not have any fund deposited at other parties under the centralised fund
management and represented in other receivables.
(a) The aging of other receivables was analysed as follows:
Within 1 year 125,074,373 131,654,349
Over 1 year 9,975,864 13,183,182
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(2) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements
The provision for bad debts of other receivables were analysed by category as follows:
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 94,575,053 70% - 0.00%
Provision for bad debts on
the grouping basis (ii) 40,475,184 30% 143,653 0.35%
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 105,089,777 73% - -
Provision for bad debts on
the grouping basis (ii) 39,747,754 27% 220,324 0.55%
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(2) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements (Cont’d):
Stage 1
Provision
Book Provision for Book for bad Provision for
balance bad debts balance debts bad debts
Increase/(decrease)
in the current year 727,430 - (10,514,724) - -
Bad debt provision
increased in the
current year - (76,671) - - (76,671)
As at 31 December 2025 and 31 December 2024, the Company did not have any other
receivables at Stage 2 or Stage 3. Other receivables at Stage 1 were analysed below:
(i) As at 31 December 2025 and 31 December 2024, the Company’s other receivables with
provision for bad debts on the individual basis were analysed below:
Provision Provision
Book 12-month for bad Book 12-month for bad
Stage 1 balance ECL rates debts balance ECL rates debts
Receivables from land
acquisition and
storage 79,807,336 - - - - -
Receivables from
JMCH 14,767,717 - - 14,542,410 - -
Receivables from
Jiangling Ford
(Shanghai) - - - 89,250,000 - -
Receivables from
refund of social
insurance - - - 1,297,367 - -
The Company assessed the receivables from refund of social insurance individually and based
on the judgment of credit risk, the receivables were not subject to significant credit risk and were
not overdue and impaired.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(2) Other receivables (Cont’d)
(b) Provision for losses and changes in book balance statements (Cont’d):
(ii) As at 31 December 2025 and 31 December 2024, the Company’s other receivables with
provision for bad debts on the grouping basis were analysed below:
Other receivables with provision on the grouping basis at Stage 1:
As at 31 December 2025, the Company’s other receivables with provision for bad debts on the
grouping basis were analysed below:
Book 12-month Provision for
balance ECL rates bad debts Reason
Provision on the grouping basis:
Gas and electricity bills 21,112,025 0.30% 63,082 ECL
Import working capital 5,000,000 0.30% 14,940 ECL
Others 14,363,159 0.46% 65,631 ECL
As at 31 December 2024, the Company’s other receivables with provision for bad debts on the
grouping basis were analysed below:
Book 12-month ECL Provision for
balance rates bad debts Reason
Provision on the grouping basis:
Gas and electricity bills 18,531,901 0.49% 91,314 ECL
Import working capital 3,900,523 0.49% 19,219 ECL
Others 17,315,330 0.63% 109,791 ECL
(c) The reversed provision for bad debts in the current year amounted to RMB76,671.
(d) There was no provision for bad debts written off during the year.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(2) Other receivables (Cont’d)
(e) As at 31 December 2025, the top five other receivables ranked by remaining
balances were analysed as follows:
% of Provision
total for bad
Nature Balance Aging balance debts
land compensation
Company 1 and reserve fund 79,807,336 within 1 year 59% -
Company 2 Electricity bills 16,993,000 within 1 year 13% 50,774
Accounts receivable
Company 3 from subsidiaries 14,767,717 More than 1 year 11% -
Import working
Company 4 capital etc. 8,678,667 within 1 year 6% 25,931
Company 5 Gas bills 4,119,025 within 1 year 3% 12,307
(3) Long-term equity investments
Subsidiaries (a) 3,646,975,223 2,858,943,493
Associates (b) 198,792,911 214,449,021
Less: Provision for impairment of long-term
equity investments for subsidiaries (3,191,472,283) (2,301,440,553)
Provision for impairment of long-term
equity investments for associates - -
(3,191,472,283) (2,301,440,553)
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(3) Long-term equity investments (Cont’d)
(a) Subsidiaries
Movements for
the current year
Cash
Ending balance dividends
Carrying
Gross amount Gross amount amount
JMCH 2,686,943,493 - 2,686,943,493 (2,301,440,553) - 385,502,940
JMCS 50,000,000 - 50,000,000 - - 50,000,000
SZFJ 10,000,000 - 10,000,000 - - 10,000,000
GZFJ 10,000,000 - 10,000,000 - - 10,000,000
Jiangling Ford
(Shanghai) 102,000,000 788,031,730 890,031,730 (890,031,730) - -
(b) Associates
Movements for the current year Impairment provision
Share of net
Increase in profit/(loss) Cash Voting 31 31
The Power
Company 189,544,236 - (17,376,724) - - 172,167,512 40.00% 40.00% - -
Hanon
Systems 24,904,785 - 1,720,614 - - 26,625,399 19.15% 33.33% - -
Total 214,449,021 - (15,656,110) - - 198,792,911 - -
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(4) Revenue and cost of sales
(a) Revenue and cost of sales
revenue cost revenue cost
Main
operations 36,764,702,071 32,649,840,174 36,161,828,891 31,639,833,312
Other
operations 1,094,182,455 657,139,123 1,775,252,124 826,412,561
(b) The breakdown of revenue
Automobile
Materials and maintenance
Automobiles parts services, etc. Total
Recognised at a time point 35,216,528,393 1,889,083,506 - 37,105,611,899
Recognised within a certain period - - 753,272,627 753,272,627
Automobile
Materials and maintenance
Automobiles parts services, etc. Total
Recognised at a time point 34,578,883,303 2,287,309,696 - 36,866,192,999
Recognised within a certain period - - 1,070,888,016 1,070,888,016
As of 31 December 2025, the revenue corresponding to the performance obligations that the
company has signed but has not yet fulfilled or completed is RMB202,425,00, and is expected
to recognize it as operating income in 2026.
(5) Investment income
Investment gain from forward exchange
settlement 10,128,966 5,237,734
Losses on discount of financing receivables
eligible for derecognition (2,378,058) (110,250)
Losses on long-term equity investments under
equity method (15,656,110) (10,363,917)
(7,905,202) (5,236,433)
There is no significant restriction on the remittance of investment income to the Company.
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Government grants recognised in profit or loss for
the current period, except those that are
closely related to ordinary activities and
conform to the national policies and
regulations, and are granted in accordance
with certain standards and have a continuous
impact on the Company’s profit or loss 464,318,284 184,409,745
Gains or losses on disposal of non-current assets 59,557,455 665,549
Fund occupation fees received from non-financial
institutions 2,474,558 4,766,151
Gains or losses arising from changes in fair value
of financial assets and liabilities held, and
gains or losses on disposal of related financial
assets and liabilities, except for the effective
hedging business related to the normal
operation 2,982,859 22,603,584
Net amount of other non-operating income and
expenses 1,793,470 (2,284,867)
Reversal of impairment charges for receivables
that are tested separately for impairment 1,872,395 5,433,007
One-off expenses incurred due to discontinuation
of related business activities (9,707,120) (2,060,316)
Effect of income tax (79,541,777) (33,377,674)
Effect of gains or losses on minority interests (net
of tax) 2,870,761 654,760
(1) Basis for preparation of statement of non-recurring profit or loss for 2025
In 2023, the CSRC issued the Explanatory Announcement No. 1 on Information Disclosure
by Companies Offering Securities to the Public - Non-recurring Profit or Loss (Revised in
the date of promulgation.
Under the requirements in the 2023 Explanatory Announcement No. 1, non-recurring profit
or loss refers to those arises from transactions and events that are not directly relevant to
ordinary activities, or that are relevant to ordinary activities, but are extraordinary and not
expected to happen frequently that would have an influence on the financial statements
users’ making economic decisions based on the financial performance and profitability of
an enterprise.
JIANGLING MOTORS CORPORATION, LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Weighted average Earnings per share
return on net assets Basic earnings per Diluted earnings
(%) share per share
Net profit attributable to
ordinary shareholders
of the Company 10.34% 14.20% 1.38 1.78 1.38 1.78
Net profit attributable to
ordinary shareholders
of the Company, net of
non-recurring profit or
loss 6.45% 12.53% 0.86 1.57 0.86 1.57
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