Jiangling Motors Corporation, Ltd.
Chapter I Important Notes, Contents and Abbreviations
Important Note
The Board of Directors and its members, the Supervisory Board 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 Joey Zhu 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 to 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 2023 profit distribution proposal approved by the Board of Directors is
as follows:
A cash dividend of RMB 6.84 (including tax) will be distributed for every 10
shares held based on the total share capital of 863,214,000 shares, and there is
no stock dividend. The Board decided not to convert capital reserve to share
capital this time.
Contents
Catalog on Documents for Reference
Financial Officer and Chief of Finance Department.
accountants and stamped by the accounting firm.
newspapers designated by CSRC in 2023.
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
Newspapers and Website for China Securities, Securities Times, Hong Kong
Publication of JMC’s Annual Report Commercial Daily, cninfo (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
PricewaterhouseCoopers Zhong Tian LLP
Name
(‘PwC Zhong Tian’)
Headquarters Address
Bin Road, Huangpu District, Shanghai 200021, PRC
Names of Signed
Ye Jun, Xiao Minjie
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 33,167,325,081 30,100,283,842 10.19% 35,221,306,472
Profit Attributable to the
Equity Holders of the 1,475,597,266 915,049,168 61.26% 574,165,944
Company
Net Profit Attributable to
Shareholders of Listed
Company After Deducting 995,236,837 -229,667,660 533.34% 29,628,811
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 2023 End of Year 2022 End of Year 2021
(%)
Total Assets 29,141,187,886 27,468,321,835 6.09% 26,359,084,120
Shareholders’ Equity
Attributable to the Equity 10,350,145,738 9,243,817,333 11.97% 8,555,444,589
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 net profit before and after 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
III. Reasons for the difference in accounting data between in accordance with
overseas accounting standards and Chinese accounting standards
□Applicable ?Not Applicable
Unit: RMB
Q1 Q2 Q3 Q4
Revenue 7,525,930,457 7,903,441,852 8,078,772,861 9,659,179,911
Profit Attributable to the
Equity Holders of the 182,746,938 546,640,619 280,065,212 466,144,497
Company
Net Profit Attributable to
Shareholders of Listed
Company After 9,499,494 408,229,717 239,772,243 337,735,383
Deducting Non-
Recurring Profit or Loss
Net Cash Generated
From Operating -721,527,544 2,378,675,881 758,439,647 2,151,951,882
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 -7,453,268 389,251,475 5,107,814
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
arising from trading financial assets and trading 6,052,713 1,424,039 -16,082,076
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
- 110,068 2,250,000
with a separate impairment test
Other non-operating income and expenses except the
above
Other profit and loss items that meet the definition of
-11,097,866 - 18,765,020
non-recurring profit and loss
Gains on disposal of long-term equity investments - - 52,133,307
Less: Income tax impact amount 89,195,274 204,283,363 88,332,046
Influence of minority shareholders' equity 772,350 363,305
Total 480,360,429 1,144,716,828 544,537,133
Details of other profit and loss items that meet the definition of non-recurring
profit and loss
□Applicable ?Not Applicable
There is no any 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
In 2023, automobile production and sales were completed at 30,161 thousand
vehicles and 30,094 thousand vehicles respectively, with a year-on-year growth
of 11.6% and 12% respectively, and the overall market sales for the year
appeared a gradually improved situation. At the beginning of this year, affected
by the exit of tax incentives for traditional fuel vehicles purchase and subsidy
policies for new energy vehicles, early coming of the Spring Festival holiday,
early overdraft of part of the consumption and other factors, the recovery of auto
consumption was relatively lagging behind; from May to October, promoted by
the national and local policies, and the continuation of the local promotional
activities for car purchasing and other measures, the market demand was
gradually released, the “Golden September and Silver October” effect
reappeared; since November, the market continued to develop well, with the
superimposed effect that the automobile enterprises endeavored to reach the
peak of sales volume at the end of the year, the automobile market performance
exceeded expectations, and the production and sales hit a record high. Among
them, the passenger car market continued to grow well, which played an
important role in stabilizing the foundation of automobile consumption; for the
commercial vehicle market, owing to the stable and improving macroeconomics,
and the recovery of consumer market demand, as well as the pull of various
favourable policies, the production and sales returned to the level of 4 million
vehicles. Under the dual role of policy and market, new energy vehicles
continued to grow rapidly in 2023, the annual production and sales into the scale
of 9.5 million vehicles, automobile exports continued to maintain a high level,
creating monthly record highs, with an average monthly export volume of more
than 400 thousand vehicles since August, and an annual export volume of close
to 5 million vehicles, having effectively pulled the overall growth of the industry.
The production and sales of passenger cars amounted to 26,124 thousand
vehicles and 26,063 thousand vehicles respectively, with a year-on-year growth
of 9.6% and 10.6% respectively. Among the main varieties of passenger cars,
compared with the same period of the previous year, the production and sales of
multi-purpose vehicles (MPV) and sport utility vehicles (SUV) showed faster
growth than the overall situation of the industry.
The production and sales of commercial vehicles amounted to 4,037 thousand
vehicles and 4,031 thousand vehicles respectively, with a year-on-year growth of
compared with the same period of last year, the production and sales of buses
and trucks showed double-digit growth. Bus production and sales were
completed 498 thousand units and 492 thousand units, a year-on-year increase
of 22.5% and 20.6% respectively , of which the production and sales of light
buses increased by more than 25% year-on-year; truck production and sales
were completed 3,539 thousand units, a year-on-year increase of 27.4% and
more than 17% year-on-year.
In 2023, the production and sales of new energy vehicles reached 9,587
thousand vehicles and 9,495 thousand vehicles respectively, an increase of 35.8%
and 37.9% year on year, with a market share of 31.6%, 5.9% higher than that of
the same period of the previous year. In the main varieties of new energy
vehicles, compared with the same period of the previous year, the production
and sales of pure electric vehicles, plug-in hybrid electric vehicles and fuel cell
vehicles continued to maintain a high growth.
China’s auto exports hit a new high in 2023, becoming an important force driving
the growth of auto production and sales. Data showed that in 2023, automobile
exports achieved 4,910 thousand vehicles, a year on year increase of 57.9%,
and the contribution rate of exports to the growth of total automobile sales
reached 55.7%. In terms of vehicle types, 4,140 thousand passenger cars were
exported, a year on year increase of 63.7%; 770 thousand commercial vehicles
were exported, a year on year increase of 32.2%. In terms of categories, 3,707
thousand conventional fuel vehicles were exported, a year on year increase of
increase of 77.6%.
During the reporting period, the Company's main business is the production and
sale of commercial vehicles, SUVs and related components. The main products
include JMC light truck, Pickup, light bus, Ford-branded light bus, MPV, Pickup
and other commercial vehicles and SUV products. JMC also produces engines,
frame, axle, and components. The Company takes high quality development as
the main line, focuses on value, lean operation, and transforms from scale
expansion development to lean value growth.
For 2023, 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, optimize business processes and innovative business
models, and focused on customer-centered integration of the whole value chain.
Meanwhile, JMC actively expanded its capacity operation and used car business,
integrated intelligent technology into its service system, and gradually formed a
customer-centered commercial vehicle ecosystem to focus 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
accelerated the demonstration operation of mass production of intelligent driving
and created industry-leading automatic driving solutions through close
cooperation with its partners.
In 2023, JMC planned the productivity of 330 thousand units and the utilization
rate was 93%.
Vehicle manufacturing and operation
?Applicable □Not Applicable
Production and Sales Volume Information
Production Volume (Unit) Sales Volume (Unit)
YOY YOY
(%) (%)
By Products
Light Bus 78,368 79,805 -1.80% 80,223 77,237 3.87%
Truck 63,135 62,825 0.49% 62,815 64,727 -2.95%
Pickup 58,723 63,496 -7.52% 59,660 62,872 -5.11%
SUV 107,199 75,468 42.05% 107,310 77,172 39.05%
Total 307,425 281,594 9.17% 310,008 282,008 9.93%
By Region
China 307,425 281,594 9.17% 310,008 282,008 9.93%
Reasons for the year-on-year change of more than 30%
?Applicable □Not Applicable
The 39.05% year-on-year increase in SUV 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 and SDS. JMC has established strategic
cooperation with such leading enterprises as CATL and Suzhou Inovance on
new energy development. For smart connectivity, JMC conducted diversified
cooperation with such giants as Tencent, Hengrun, Baidu and Desay SV, 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 Bus
Series
New Energy
Passenger Vehicles 100,000 260 250 53,468,952
and Pickup
New Energy Truck 25,000 1,187 1,002 154,664,338
Note: all new energy
Total vehicles are collinear 5,366 4,671 556,250,930
with corresponding fuel
vehicles.
New energy vehicle Subsidy
In 2023, JMC received a subsidy of RMB 17,930 thousand for new energy
vehicles.
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 2023, JMC light bus ranked No.1 in the segment, Pickup
ranked No.2 in the segment, and light truck ranked No.6 in the segment. JMC
export sales have made rapid progress, with sales of 95,696 units, a year -on -
year increase of 52%.
JMC always takes customers as the center, and provides customized integrated
solution based on customer use scenarios. During the epidemic period, Transit
Ambulance was the first negative pressure ambulances delivered nationwide,
and was awarded as "Vehicle No.1 in Epidemic Fighting". At the same time, the
Company continues to empower smart logistics, design integrated solutions for
the needs of large logistics customers to increase efficiency and reduce cost, and
provide C2B customized product services, end-to-end logistics solutions and
overall logistics capacity platform services.
The Company is a full scenario solution provider for light commercial vehicles.
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, passenger
transport and refit. The Company launched the new Light Truck Kaiyun +, as the
first model under the Qingyun structure, through eight upgrades and nine
customized product configurations to truly achieve a high degree of matching
with users’ needs, opening the era of light truck customization. JMC launched
"JMC Dadao", a new Pickup product, positioning "Chinese pickup expert of full
scenarios", covering the market of mid-to-high commercial and passenger dual-
use and passenger off-road Pickups whose price are more than RMB 100,000.
JMC has established the coexistence strategy of the three series of Pickup
products and completed the full price and product matrix layout in the Pickup
segment.
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, 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 channels, the Company currently has more than 700 tier 1
dealers, with a total of more than 2,000 dealers, and has established a modern
marketing system through the four-in-one franchise model of sales, accessories,
service and information. In 2023, the all new channel brand “Ford Beyond” was
released, with the ultimate powerful off-road product portfolio, the personalized
customization modification and the abundant community activities as the pillars,
the world's first Ford Beyond experience center was landed in October, and 71
Ford Beyond experience centers were built throughout the year across the
country, and meanwhile, in December, the Ford Ranger was launched, which
has caused a huge sensation in the industry and achieved a very good market
response. 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. The Company is a demonstration enterprise in Jiangxi
Province for integration of informatization and industrialization. In terms of new
energy, JMC has launched various new energy products such as E Lu Da, Da
Dao EV and E-Transit, released the new energy transportation brand "JMC Fun-
to-Drive" which expanded the transportation and leasing business of the
Company, and committed to providing customers with systematic solution of "full-
scene product coverage, full-scene customer service, and full-scene ecological
construction" from a holistic perspective to create the greatest value for users
from a practical point of view. At the same time, in terms of export business, the
Company has entered into a Framework Agreement on Vehicle Export
Opportunities with Ford. Relying on Ford’s mature global business layout and
network, both parties intend to procure the Company to become an export
product engineering and manufacturing center based in China and supporting
Ford’s global sales network.
I. Summary
In 2023, China's annual automobile production and sales, both hit a record high.
Among them, the passenger car market continued to grow well, realizing sales of
automobile exports hit a new high, with annual exports approaching 5 million
vehicles, having effectively pulled the overall rapid growth of the industry.
During the reporting period, in order to respond to a tougher competitive
environment, stricter homologation requirement and cost increase, JMC has
been dedicated in improving the product quality, promoting new product
development, controlling operation cost and enhancing production efficiency. At
the same time, JMC launched a series of marketing proposals to actively cope
with market risks. In 2023, JMC achieved sales volume of 310,008 units,
including 80,223 light buses, 62,815 trucks, 59,660 Pickups and 107,310 SUVs,
with YOY increase of 9.93%. In 2023, the total production volume was 307,425
units, including 78,368 light buses, 63,135 trucks, 58,723 Pickups and 107,199
SUVs, with YOY increase of 9.17%.
In 2023, the operation revenue reached RMB 33,167 million, up 10.19% year on
year. The operation cost was RMB 28,066 million, up 8.73% year on year. The
marketing expense was RMB1,467 million, up 1.51% year on year. The
administration expense was RMB 983 million, up 1.94% year over year. R&D
cost was RMB 1,286 million, down 13.29% year on year. The financial expense
was RMB -205 million, down by 25.01% year over year.
II. Revenue and Cost
(a) Composition of Sales Revenue
Unit: RMB
Proportion Proportion change
Amount Amount
(%) (%) (%)
Revenue 33,167,325,081 100% 30,100,283,842 100% 10.19%
By Industry
Automobile Industry 33,167,325,081 100% 30,100,283,842 100% 10.19%
By Products
Vehicle 30,379,757,733 91.60% 27,069,207,538 89.93% 12.23%
Components 1,719,943,033 5.18% 2,412,993,540 8.02% -28.72%
Automobile
Maintenance Services
Material & Others 493,374,803 1.49% 507,757,923 1.68% -2.83%
By Region
China 33,167,325,081 100% 30,100,283,842 100% 10.19%
Sales model
Distribution 31,896,589,121 96.17% 28,995,566,644 96.33% 10.01%
Direct selling 1,270,735,960 3.83% 1,104,717,198 3.67% 15.03%
(b) Reach to 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 30,379,757,733 25,855,510,801 14.89% 12.23% 10.70% 1.17%
By Region
China 33,167,325,081 28,065,528,223 15.38% 10.19% 8.73% 1.13%
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 2023 2022 Change (%)
Sales Volume unit 310,008 282,008 9.93%
Automobile Production Volume unit 307,425 281,594 9.17%
Inventory Volume unit 5,937 9,113 -34.85%
Explanation on YOY change of over 30%
?Applicable □Not Applicable
The 34.85% year-on-year decrease in inventory was mainly due to the increase
in sales.
(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 2023 FY 2022 FY
YOY
Product Proportion Proportion Change
Cost Cost
(%) (%) （%）
Vehicle Cost 25,855,510,801 92.13% 23,355,537,374 90.48% 10.70%
Components Cost 1,230,323,685 4.38% 1,872,040,360 7.25% -34.28%
Automobile Cost
Maintenance Services
Material & Others Cost 417,730,549 1.49% 475,277,339 1.85% -12.11%
(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） 10,646,288,840
Accounted for the proportion of JMC’s total annual turnover 32.10%
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 (%)
Yunnan Mingfu Automobile Sales Service
Co., Ltd.
Total 10,646,288,840 32.10%
Other introduction to main customers
?Applicable □Not Applicable
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. is related party of the Company.
Main Suppliers:
Total purchase value from top 5 suppliers（RMB） 4,592,443,082
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 (%)
Nanchang Jianglin Huaxiang Automobile
Parts Co., Ltd.
Jiangxi Jiangling Qin Chuan Electrical
Company Limited
Jiangxi Zhonglian Intelligent Logistics
Co., Ltd.
Nanchang Baojiang Steel Processing
Distribution Co., Ltd.
Total 4,592,443,082 18.72%
Other introduction to main suppliers
?Applicable □Not Applicable
Magna PT Powertrain (Jiangxi) Co., Ltd., Nanchang Jianglin Huaxiang
Automobile Parts Co., Ltd., Jiangxi Zhonglian Intelligent Logistics Co., Ltd. and
Nanchang Baojiang Steel Processing Distribution Co., Ltd., are related parties of
the Company.
III. Expense
Unit: RMB
Distribution Expenses 1,466,692,447 1,444,894,711 1.51%
Administrative Expenses 983,458,031 964,786,345 1.94%
Finance Income-net -204,908,754 -163,907,346 -25.01%
R & D Expenses 1,286,201,612 1,483,329,630 -13.29%
IV. Research & Development
Name of main Goals to be The expected
Project purpose Project progress
R&D project achieved impact on the
Company's future
development
To enhance the
competitiveness of
passenger vehicle It is under development Increase the
All new electric
products for Ford Beyond, and will begin Company's
platform SUV
and meet the requirements production in the operating
product project
of fleet dual credit policy second half of 2025 revenue.
for passenger vehicles in
future
All new To enhance the
They are under Increase the
platform for competitiveness of the
development and will Company's
electric light Company’s electric city
begin production in the operating
bus and light logistics vehicles and
beginning of 2025 revenue.
truck increase market shares.
They are under
Increase the
Electric development and will
Transformation of the Company's
products for begin production one
company's export strategy operating
export by one in the second
revenue.
half of 2025.
Company R & D personnel
R&D staff (person) 2,477 2,350 5.40%
R&D staff as % of total employees 21.32% 19.05% 2.27%
Educational structure of R&D personnel
Undergraduate 1,772 1,651 7.30%
Master 568 554 2.50%
Age composition of R&D personnel
Under the age of 30 590 533 10.70%
R&D Investment
R&D investment (RMB) 1,846,382,521 2,018,500,532 -8.53%
R&D investment as % of revenue 5.57% 6.71% -1.14%
Capitalization of R&D investment 560,180,909 535,170,902 4.67%
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 2023 2022
(%)
Cash received from operating activities 38,462,687,962 31,614,927,049 21.66%
Cash outflows from operating activities 33,895,148,096 33,133,501,001 2.30%
Net cash flows from operating activities 4,567,539,866 -1,518,573,952 400.78%
Cash received from investing activities 624,431,306 1,407,222,333 -55.63%
Cash outflows from investing activities 1,796,589,520 1,496,365,812 20.06%
Net cash flows from investing activities -1,172,158,214 -89,143,479 -1,214.91%
Cash received from financing activities 5,027,854,833 4,731,667,661 6.26%
Cash outflows from financing activities 5,219,911,524 4,149,807,890 25.79%
Net cash flows from financing activities -192,056,691 581,859,771 -133.01%
Net increase in cash and cash
equivalents
Explanation on the major factors regarding major change of related data
?Applicable □Not Applicable
Year on year increase of the Net cash flows generated from operating activities
was due to the increase of sales volume, the increased payments received from
dealers.
Year on year decrease of the Net cash flows generated from investing activities
was mainly due to the received money by the disposal of the land and
aboveground buildings in the Qingyunpu site of the Company during the same
period in 2022.
Year on year decrease of the net cash flows generated from financing activities
was mainly due to the lower new borrowings compared to the same period last
year.
Year on year increase of the net increase in cash and cash equivalents was
mainly due to the increase in net cash generated from operating 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 2023 Beginning of 2023 Proportion
Asset item
change
Amount Proportion Amount Proportion (Points)
Cash and cash
equivalents
Accounts
receivables
Inventories 1,560,259,511 5.35% 2,129,040,820 7.75% -2.40%
Long-term equity
investments
Fixed assets 5,389,645,152 18.49% 5,446,384,369 19.83% -1.34%
Construction in
progress
Right-of-use
assets
Short-term
borrowings
Contract
liabilities
Long-term
borrowings
Lease liabilities 138,005,943 0.47% 193,090,351 0.70% -0.23%
Foreign assets account for a relatively high proportion
□Applicable ?Not Applicable
II. The fair value of the assets and liabilities.
Unit: RMB
financial assets
financial 2.Receivables Financial
Item (excluding Subtotal
assets financing liabilities
derivative
financial assets)
Beginning of
the period
Loss/profit in
fair value in the 604,877 0 604,877 0
period
Cumulative
changes in fair
value recorded
into equity
Impairment in
the period
Purchase in the
period
Sell in the 300,000,000 3,991,475,709 4,291,475,709. 0
period
Other changes 0 0
End of the
period
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 20,854,424
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 on the reporting period.
(b) Derivative Investment
□Applicable ?Not Applicable
There was no derivative investment on the reporting period.
V. Usage of Raised Fund
□Applicable ?Not Applicable
There was no usage of raised fund on the reporting period.
I. Sale of Major Assets
□Applicable ?Not Applicable
II. Sales of Major Equity
?Applicable □Not Applicable
Counterparty Volvo Lastvagnar Aktiebolag
Sold equity
wholly owned subsidiary of JMC
Date of sale The transaction had been terminated
Transaction price (RMB thousand) 781,400
Equity sale pricing principle Public bidding process.
Whether it is a related party transaction No.
Association with the counterparty No relationship.
Whether all the equity involved has
No.
been transferred
Since the items required for government approval
Whether the plan is implemented as on the transaction were not completed within the
scheduled, if not, the reason and the agreed time, the Company and Volvo Lastvagnar
measures taken by the company Aktiebolag agreed to terminate the transaction
through negotiation.
Date of disclosure May 13, 2023
The announcement (No. 2023-013) was published
Index
on the website: www.cninfo.com.cn
?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
Jiangling Motors
Name of JMC Heavy Duty Automobile
Sales Corporation,
companies Vehicle Co., Ltd. Technology
Ltd
(Shanghai) Co., Ltd.
Type of Whole-onwed Whole-owned
Holding subsidiary
companies subsidiary subsidiary
Engineering and
technology research
Production and sales
and experimental
Sales of vehicles of automobiles,
Main business development, sales of
and service parts. engines and other
vehicles, new energy
automotive parts
vehicles, auto parts,
etc.
Registered
capital
Assets 5,434,014.20 396,986.20 948,410.40
Net assets 254,641.00 366,242.80 -745,455.30
Turnover 22,161,719.40 294.70 643,047.90
Operating
-116,386.60 -334,545.30 -1,118,600.80
profit
Net profit -88,417.20 -330,496.80 -838,984.80
Acquisition and disposal of the subsidiaries
□Applicable ?Not Applicable
Description of the main holding and participating companies
The impact of JMCH on the Company's performance is that the increase in
profits was partially offset by the assets impairment provisions accrued to reflect
the idle long-term assets of due to the termination of the reorganization
transaction
The impact of Jiangling Ford Automobile Technology (Shanghai) Co., Ltd. on the
Company's performance is increase in net profit attributable to shareholders of
the listed company caused by the changes in Minority Interests.
□Applicable ?Not Applicable
I. Industry Development
In 2024, China will continue to promote progress while maintaining stability, focus
on spurring domestic demand, promote the steady recovery and expansion of
consumption; expand effective investment, increase sci-tech innovation, and
actively drive the high-quality economic development. In 2024, a number of new
measures will also be reserved and optimized, which will have additive effects
with the stock policies to safeguard the stable economic operation. JMC is
confident in the economic upturn throughout the year. It is expected that the
automobile market will continue to appear a stable development trend in 2024,
showing a growth of more than 3%.
Overall market: Annual sales are expected to be 31,000 thousand vehicles, an
increase of 3% year on year, the policy tone of stabilizing growth stimulates
domestic demand growth, and the continuous drive of exports is conducive to
automobile consumption.
Commercial vehicle market: Annual sales are expected to be 4,200 thousand
vehicles, an increase of 4% year on year, the country’s additional issuance of
one-trillion-yuan treasury bonds forms a good support for the commercial vehicle
market in the first half of 2024, and new energy commercial vehicles bring
structural growth to the industry.
Passenger car market: Annual sales are expected to be 26,800 thousand cars,
an increase of 3% year on year, and the “competition” and growing demands are
expected to drive sales growth.
New energy vehicle market: Annual sales are expected to be 11,500 thousand
vehicles, an increase of 21% year on year, new energy vehicles maintain a high
degree of prosperity, and the penetration rate is expected to be further increased.
Export market: The annual export volume of automobiles is expected to be 5,500
thousand vehicles, an increase of 12% year on year.
II. Company Strategy
JMC adheres to the development vision of “becoming a leader in the light
commercial vehicle industry and a high performance provider of Ford” and the
values of “integrity, dedication, innovation and cooperation”. In terms of
commercial vehicles, JMC aims at being a provider of comprehensive product
and service solutions of urban and trunk logistics, and creating a “lifelong partner”
new business concept to meet customer needs through offering customized
products and integrated services. In the passenger car field, JMC focuses on
outdoor and off-road needs and provide differentiated products to create the
ultimate customer experience. JMC will continue to focus on its core business,
explore the potential of niche fields, always take customers’ demands as
orientation, enhance the market awareness of the whole value chain, and strive
to shape its products into the leaders of niche market. JMC will also aim at the
new development trend of the automobile industry, accelerate the transition to
new energy vehicles, increase investment, carry out technology research and
development and product innovation, anchor in overseas markets, establish and
improve the international marketing service system, consolidate and expand the
automobile exports to the markets of key countries and regions, cultivate
automobile exports as a new growth point of enterprise development, and
comprehensively lay out the technology in new industrialization, information
technology application, urbanization, and agricultural modernization, make layout
in the core fields of new energy vehicles, intelligent connected vehicles and
autonomous driving, and accelerate the construction of a future-oriented and
globally competitive business ecosystem through the overall synergy and the
integration of the new industrialization, information technology application,
urbanization, and agricultural modernization. JMC is committed to building a
leading and perfect digital system to make the product design, manufacturing,
delivery, after-sales service and other parts closer to user needs through in-depth
data mining and demand analysis, so as to promote the pace of its digital
transformation.
III. Business Plan
In 2024, the Company plans to achieve the sales volume of 360 thousand units
and the operation revenue of about RMB 37.8 billion, up 16% and 14%
respectively compared with 2023. In order to further improve the management
quality, the Company will devote itself to the following aspects in 2024:
(1) To stabilize and enhance JMC’s leading position in the field of light
commercial vehicles, continue to strengthen private sphere marketing and
promoting brand upward;
(2) To accelerate the transformation of passenger car channels from “Family
Space” to “Ford Beyond”, continue to empower dealers, strengthen customer
operations, and further build the image of China’s top outdoor life leader;
(3) To strengthen the promotion of the new energy capacity brand of “JMC fun-
to-drive”, vigorously promote the new marketing model, and accelerate the
cultivation of the new business of capacity operation;
(4) To deepen synergistic cooperation with shareholders, enrich product portfolio,
expand overseas market scale, and continuously improve overseas service
experience;
(5) To always adhere to the customer-centric concept, deeply understand market
changes and customer needs, and provide customers with high-quality products
and services through continuous innovation and efficient synergy;
(6) To put into production and launch new Ford high-end off-road models,
passenger car MCA, light trucks and passenger car hybrid models, etc. in a high-
quality manner to enhance product competitiveness;
(7) To continuously promote cost reduction, efficiency improvement, and lean
management, and build an efficient and agile organization to lay a solid
foundation for the company’s overall strategic development.
IV. Potential Risks and Solutions
Geopolitical conflicts are intensifying in 2024, and the momentum of world
economic growth is insufficient. Throughout the country, it was proposed at the
Central Economic Work Conference to continue to act on the principle of seeking
progress while maintaining stability, promoting stability through progress, and
establishing the new before abolishing the old. The effect of growth stabilization
policy will continue to appear, domestic demand is expected to be repaired
continuously, consumption is expected to be further recovered, and infrastructure
and manufacturing investment is expected to grow faster, bringing greater
opportunities than challenges and stronger favorable conditions than unfavorable
factors. However, the marketization of new energy vehicles accelerates, new car-
making forces rise strongly, and the intelligent and digital paces accelerate at the
same time, leading to more intense industrial competition in price, and bringing
greater challenges to the company’s operations. In order to maintain steady
growth, JMC will focus on the following aspects:
(1) To adhere to the customer-centric concept, gain in-depth insight into
customer needs and changes in the market environment, explore new business
growth points, and get in on the ground floor in the disruptive industry changes;
(2) To optimize new energy product portfolio, expand channels, upgrade service
levels, construct a new model for development, and increase the sales and
penetration rate of new energy products;
(3) To have an in-depth insight into overseas markets, focus on promoting the
“one country one policy” overseas strategy, and optimize and enhance overseas
channels;
(4) To accelerate the construction of key technologies in the fields of intelligent
connection network, intelligent cockpit and intelligent driving, as well as the key
technological breakthroughs in new energy hardware and software;
(5) To continuously deepen the company’s digital transformation, break down
data silos, enhance digital experience in such three dimensions as customer
insight, user experience and innovative services, and improve operational
efficiency;
(6) To strengthen the quality awareness of all staff, enhance the control of high-
risk suppliers, and comprehensively improve product quality;
(7) To continuously promote cost reduction, expenses control and efficiency
enhancement, meanwhile, strengthen the management and control of operating
cash flow to improve the quality of operations;
(8) To strengthen corporate governance, strictly comply with national laws and
regulations, and improve risk assessment and control mechanisms.
JMC will focus on light commercial vehicles, follow the customer-centric concept,
continue to strengthen the marketing system reform, promote brand upgrading
and channel rejuvenation, and consolidate the core competitiveness of light
commercial vehicles; it will attach equal importance to passenger cars and
commercial vehicles, accelerate the transformation of passenger car channels,
enhance market awareness, and seize the momentum to increase the scale of
passenger car sales; accelerate the development of new energy vehicles;
vigorously explore overseas markets; expand new businesses and profit models,
and accelerate the development of the new industrialization, information
technology application, urbanization, and agricultural modernization as well as
digitalization, deeply promote sci-tech innovation and industrial transformation,
and achieve “stable development with solid foundation and additive energy for
emerging business”. At the same time, JMC will continue to implement the
strategy of quality leadership, optimize the cost structure, promote cost reduction
and efficiency enhancement, improve profitability and create sufficient cash flow
to support the Company’s high-quality development.
?Applicable □Not Applicable
Date Communication Type of Information Discussed
Method Object and Materials offered
April 14, 2023 Online Individual JMC Operating
communication Investors highlights
through network
platform
May 19, 2023 Online Individual JMC Operating
communication Investors highlights
through network
platform
Return"
Whether the company has disclosed the action plan of "Double Enhancement of
Quality and Return".
□Yes ?No
Chapter IV Corporate Governance Structure
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 that 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 that 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) Index to the Shareholders’ Meeting in the reporting period
In 2023, the Company has hold one Shareholders’ Meeting, and the relevant
contents are as follows:
The meeting type: annual shareholders’ meeting
Investor participation ratio: 74.61%
Convening date: June 16, 2023
Disclosure date: June 17, 2023
The meeting resolutions:
Framework with JMCG Finance Company;
Framework with Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. and its
subsidiaries;
Framework with Jiangling Motor Group Co., Ltd. and its subsidiaries;
Framework with Ford Motor Company and its subsidiaries;
Framework with Nanchang Jiangling HuaXiang Auto Components Co., Ltd.;
Framework with Nanchang Baojiang Steel Processing Distribution Co., Ltd.;
Framework with Magna PT Powertrain (Jiangxi) Co., Ltd.;
Framework with Jiangxi Jiangling Lear Interior System Co., Ltd.;
Framework with Jiangxi JMCG Specialty Vehicles Co., Ltd. and its subsidiaries;
Framework with Nanchang Faurecia Emissions Control Technologies Co., Ltd.;
Framework with China South Industries Group Corporation and its subsidiaries;
Framework with Nanchang Unistar Electric & Electronics Co., Ltd.;
Independent Directors):
Eleventh Board of Directors of JMC;
Eleventh Board of Directors of JMC;
Eleventh Board of Directors of JMC;
Eleventh Board of Directors of JMC;
Eleventh Board of Directors of JMC;
Eleventh Board of Directors of JMC;
Director of the Eleventh Board of Directors of JMC;
Director of the Eleventh Board of Directors of JMC;
Director of the Eleventh Board of Directors of JMC;
Eleventh Supervisory Board of JMC;
the Eleventh Supervisory Board of JMC;
Eleventh Supervisory Board of JMC.
(2) Special Shareholders’ Meeting convened by preferred-shareholders whose
voting rights were restored
□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 2023.06.16-
Male 57 Chairman 0 0 0 0 0
Tiangao 2026.06.15
Shengpo Vice 2023.06.16-
Male 57 0 0 0 0 0
Wu Chairman 2026.06.15
Ryan 2023.06.16-
Male 50 Director 0 0 0 0 0
Anderson 2026.06.15
Yuan 2023.06.16-
Male 55 Director 0 0 0 0 0
Mingxue 2026.06.15
Xiong Director & 2023.06.16-
Female 59 1,200 0 0 0 1,200
Chunying President 2026.06.15
Jin 2023.06.16-
Male 56 Director 0 0 0 0 0
Wenhui 2024.04.11
Yu Independent 2023.06.16-
Male 63 0 0 0 0 0
Zhuoping Director 2026.06.15
Chen Independent 2023.06.16-
Male 44 0 0 0 0 0
Jiangfeng Director 2026.06.15
Wang Independent 2023.06.16-
Female 45 0 0 0 0 0
Yue Director 2026.06.15
Chief 2023.06.16-
Xiao Hu Male 55 0 0 0 0 0
supervisor 2026.06.15
Zhang 2023.06.16-
Male 44 Supervisor 0 0 0 0 0
Yangyang 2026.06.15
Zhang 2023.06.16-
Male 54 Supervisor 40 0 0 0 40
Jian 2026.06.15
Ma Jian Male 48 Supervisor 0 0 0 0 0
Li Yanling Female 46 Supervisor 0 0 0 0 0
Zhong 2024.03.26-
Female 47 EVP 0 0 0 0 0
Junhua 2026.06.15
Ding 2023.06.16-
Male 51 EVP 0 0 0 0 0
Wenmin 2026.06.15
Joey Zhu Male 41 CFO 0 0 0 0 0
Erik 2023.06.16-
Male 59 VP 0 0 0 0 0
Hermann 2026.06.15
Wu 2023.06.16-
Male 49 VP 0 0 0 0 0
Xiaojun 2026.06.15
Xu VP &Board 2023.06.16-
Female 54 0 0 0 0 0
Lanfeng Secretary 2026.06.15
Liu 2023.06.16-
Male 50 VP 0 0 0 0 0
Rangpo 2026.06.15
Wu 2023.06.16-
Female 47 VP 0 0 0 0 0
Jiehong 2026.06.15
Yang 2023.06.16-
Male 43 VP 0 0 0 0 0
Shenghua 2026.06.15
Sam lo Male 44 VP 0 0 0 0 0
Zeng Fafa Male 45 VP 0 0 0 0 0
Anderson 2023.06.16-
Male 51 VP 0 0 0 0 0
Liu 2026.06.15
Total — — - — 1240 0 0 0 1240
Whether there are any outgoing Directors and Supervisors and the dismissal of
senior management personnel during the reporting period?
□Yes ?No
Changes of Directors, Supervisors and Senior Management
?Applicable □Not Applicable
Name Position Status Date Reason
Zhong
EVP Employment 2024.03.26 Appointment due to work need.
Junhua
Jin Wenhui Ex-EVP Leave 2024.03.26 Work rotation.
(2). Employment
The current Directors, Supervisors 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., and Chairman of JMC. 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, Chairman and President
& Chief Executive Officer of Ford China, Vice Chairman of JMC, Vice Chairman of
Changan Ford Automobile Co., Ltd., Chairman of Fuqi Trading (Shanghai) Ltd,
and Chairman of Ford Model e Technology (Nanjing) 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, Managing Director.
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., Director of JMC, Director of Changan Ford Automobile Co., Ltd. and Fuqi
Trading (Shanghai) Ltd., Director and President 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 and 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 of Chang’an Auto,
Union president.
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 President
and a Director of JMC. Ms. Xiong Chunying held various positions including Chief
of Quality Management Department, Assistant to the President, Vice President,
President, Executive Vice President, Director for JMC.
Mr. Jin Wenhui, born in 1967, senior engineer, holds a Bachelor’s Degree in
Mechanical Manufacturing, a Master’s Degree in Mechanical Engineering from
Huazhong University of Science and Technology and an EMBA Degree in China
Europe International Business School, and is a Director of JMC. Mr. Jin Wenhui
held various positions including Chief of Manufacturing Department, Assistant to
the President, Vice President for JMC, Director, General Manager of JMCG
Jingma Motors Co., Ltd., and Executive Vice General Manager of Jiangxi-Isuzu
Motors Co., Ltd., and Executive Vice President of JMC.
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., a Director of Beijing National Hydrogen Zhonglian
Hydrogen Energy Technology 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 Weichai Power Co., Ltd., an Independent
Director of Ningbo Shenglong Automotive Powertrain System Co., Ltd., an
Independent Director of Huayu Automotive Systems Co., Ltd and an Independent
Director of JMC. 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 Guangdong Yangshan United
Precision Manufacturing Co., Ltd. and an Independent Director of Scivita Medical
Technology Co., Ltd. Ms. Wang Yue has served as Research Assistant at The
Hong Kong Polytechnic University and China Europe International School, and
during 2012~2013, served as Visiting Scholar at Zimmerman Center for University
of Illinois at Urbana-Champaign.
Supervisors:
Mr. Xiao Hu, born in 1968, holds a Bachelor’s Degree in Radio from Information
Science & Electronic Engineering Department of Zhejiang University, and is a
member of the Standing Committee of the CPC, the secretary of Discipline
Inspection Commission and Chairman of Supervisory Board for JMCG, and Chief
Supervisor of JMC. Mr. Xiao Hu has served as a cadre in the General Office of the
Nanchang Municipal People's Government, Deputy Director of the Office of the
Working Committee of the Nanchang Hi-tech Industrial Development Zone, deputy
director of the Software Industry Office of the Nanchang Hi-tech Industry
Development Zone Administrative Committee, Deputy Head of the Organization
Department of the Working Committee of Nanchang Hi-tech Industry Development
Zone, Deputy Director of the Personnel and Labor Bureau of the Nanchang Hi-
tech Industry Development Zone Administrative Committee, Head of the
Organization Department of the Working Committee of Nanchang Hi-tech Industry
Development Zone, and the Director of the Personnel Bureau of the Nanchang Hi-
tech Industry Development Zone Administrative Committee.
Mr. Zhang Yangyang, born in 1979, holds a LLB Degree in International Law from
China Foreign Affairs University and a LLM Degree from the University of
Michigan Law School (Ann Arbor), is qualified to practice law in People’s Republic
of China and in the State of New York, the United States of America, and is
currently serve as a Director, General Counsel & China Policy Group Lead of Ford
Motor (China) Ltd., Principle of Beijing Branch for Ford Motor (China) Ltd., a
Supervisory of Ford Model e Technology (Nanjing) Co., Ltd., a Supervisor of Ford
Model E Auto Sales (Shanghai) Co., Ltd and a Supervisor of JMC. Mr. Zhang
Yangyang previously assumed a series of legal related positions within Ford
including Managing Counsel for Ford China and ASEAN region, Senior Counsel
for Ford China Operations, etc.
Mr. Zhang Jian, born in 1969, holds a College Degree in Secretarial Professional
from North China University of Technology, and is Chairman of JMCG Labor
Union, Chairman of Supervisor Board of Nanchang Jiangling Investment Co., Ltd.,
and a Supervisor of JMC. Mr. Zhang Jian held various positions including
Secretary of Chairman and Deputy Director of Office for JMC, Director of Office,
Director of Communist Party Office, Chief of Publicity Department for JMCG,
Assistant to General Manager of JMCG, and Senior Vice Chairman of JMCG
Labor Union.
Mr. Ma Jian, born in 1975, holds a College Degree in Mechanical & Electrical
Engineering from Nanchang University of Aeronautical Technology, a Master
Degree in Mechanical Engineering from Huazhong University of Science and
Technology, and is a Supervisor and Chief of Manufacturing Department for JMC.
Mr. Ma Jian held various positions including Lead Engineer, Assistant to the Chief,
Deputy Chief of Manufacturing Department for JMC, Director of Nanchang factory
for Getrag Powertrain (Jiangxi) Co. Ltd., and Director of Nanchang Factory and
Director of DCT Factory for Magna Powertrain (Jiangxi) Co. Ltd.
Ms. Li Yanling, born in 1977, holds a College Degree in Industrial and Trade
English from Nanchang University of Aeronautical Technology, a Bachelor Degree
in English from Jiangxi Normal University, and is a Supervisor and Deputy Chief of
Public Relationship Department for JMC. Ms. Li Yanling held various positions
including Assistant to Ford Quality Expert of Quality Control Department, Assistant
to Ford Expert of Public Relationship and Legal Affairs Department, Executive
Assistant to President, Chief of Translation Office, and Deputy Chief of Public
Relationship Department for JMC.
Senior management:
Ms. Xiong Chunying, please refer to the part of Directors for her resume.
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 JMCG, a Director of Nanchang Jiangling Investment Co., Ltd.,
and an EVP of JMC, in charge of marketing sales & service, and assist the
President to manage the Company. Ms. Zhong Junhua held various positions
including the 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., and Chairman of Jiangxi
Jiangling Group Special Vehicle Co., Ltd.
Mr. Ding Wenming, 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 Wenming 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.
Mr. Joey Zhu, born in 1982, holds a Bachelor’s Degree in Accounting from Nanjing
University and a Master’s Degree in Financial Engineering from Nanyang
Technological University, and is CFO of JMC. Mr. Joey Zhu held various positions
including PD Profit Planning Manager, Profit Analysis Manager, Admin & IT
Controller, and PD Finance Controller for Ford Asia & Pacific, Deputy CFO of
CEVT, Sweden, Finance Controller of Byton NEV Company, Senior Business
Development Manager, CFO of BEV Division, and BEV Strategic Partnership
Development Director for Ford China.
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 of JMC.
Mr. Liu Ranbo, born in 1973, holds a Bachelor’s Degree in Plastic Forming from
Wuhan Automotive Polytechnic University, and is a Vice President of JMC and
General Manager of Jiangling Motor Sales Co., Ltd., in charge of commercial
vehicle sales business of the Company. Mr. Liu Ranbo held various positions in
JMC including Marketing Service Manager for Customer Service Department,
Regional Manager for East 3 / East 1 District, JMC Light Truck Brand Manager,
Sales Director of Jiangling Motors Sales General Company, and Deputy General
Manager of Jiangling Motor Sales Co., Ltd.
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. Yang Shenghua, born in 1980, holds a Bachelor’s Degree in English
Language & Literature from Huazhong University of Science and Technology and
a Master’s Degree in Business Administration from Nanjing University, and is a
Vice President of JMC, in charge of purchasing business of the Company. Mr.
Yang Shenghua held various positions including Program Purchasing Supervisor
of Chang’an Ford Automobile Co., Ltd., Program Purchasing Manager, and
Purchasing Strategy & Program Director 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. 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 of JMC.
Mr. Anderson Liu, born in 1972, holds a Bachelor’s Degree in Liberal Arts-
Psychology from National Taiwan University, China, a Master’s Degree in Liberal
Arts-Psychology from National Chengchi University, China, and a MBA Degree
from University of Pittsburgh, USA, is a Vice President of JMC and General
Manager of Jiangling Ford Motor Automobile (Shanghai) Co., Ltd. Mr. Anderson
Liu held various positions including Financial Analyst, E-Commerce Manager,
Research Manager, Marketing Manager for FLH, Sr. Marketing Manager, VP of
VW Branch Operation, VP of MS for VW Swire, Sales Director, MS Director for
FLH, General Manager of Dealer Network Development and Consumer & Retail
Experience for Lincoln China, and Executive Vice General Manager of Jiangling
Motor Sales Co., Ltd.
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
Shengpo Wu Ford 2023.03.01 Y
President
Ryan Anderson Ford CFO, Ford China 2021.06.01 Y
Yuan Mingxue JIC Director 2019.05.28 N
Jin Wenhui JIC Director 2019.05.28 N
Zhang Jian JIC Chief supervisor 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 JiangxiISUZU Co., Ltd. Chairman N
Qiu Tiangao JMCG New Energy Vehicle Co., Chairman N
Ltd.
Qiu Tiangao Nanchang Jiangling Investment Chairman N
Co. Ltd.
Qiu Tiangao Nanchang Intelligent New Energy Chairman N
Vehicle Research Institute
Shengpo Wu Ford Motor (China) Ltd. Chairman, N
President and
CEO
Shengpo Wu Lincoln Motor Sales Service Chairman N
(Shanghai) Co., Ltd.
Shengpo Wu Changan Ford Automobile Co., Vice Chairman N
Ltd.
Shengpo Wu Ford Technology (China) Holding, Chairman N
Inc.
Shengpo Wu Ford Technology (China) Holding Chairman N
Limited
Shengpo Wu Ford Model e Technology Chairman N
(Nanjing) Co., Ltd.
Shengpo Wu Fuqi Trading (Shanghai) Ltd. Chairman N
Shengpo Wu Whirlpool (China) Co., Ltd. Vice Chairman Y
Ryan Ford Motor (China) Ltd. Director, Chief N
Anderson Financial Officer
Ryan Chang'an Ford Automobile Co., Director N
Anderson Ltd.
Ryan Fuqi Trading (Shanghai) Ltd. Director N
Anderson
Ryan Lincoln Motor Sales Service Director N
Anderson (Shanghai) Co., Ltd.
Ryan Ford Model e Technology Chairman, N
Anderson (Nanjing) Co., Ltd. President, Head of
Power Technology
branch
Ryan Ford Technology (China) Holding, Director N
Anderson Inc.
Ryan Ford Technology (China) Holding Director N
Anderson Limited
Yuan Chongqing Chang'an Automobile Chief Expert and Y
Mingxue Company Limited Senior Consultant
of Chairman
Business Team
Jin Wenhui Jiangling Ford Automobile Chairman N
Technology (Shanghai) Co., Ltd.
Jin Wenhui Hanon Systems (Nanchang) Co., Vice Chairman N
Ltd.
Jin Wenhui Jiangxi Jiangling Special Purpose Director N
Vehicle Co., Ltd.
Yu Zhuoping Collaborative Innovation Center Director N
for Intelligent Energy Vehicles of
Tongji University
Yu Zhuoping Tongji Automobile Design and Chairman N
Research Institute Co., Ltd.
Yu Zhuoping Beijing National Hydrogen Director N
Zhonglian Hydrogen Energy
Technology Research Institute
Co., Ltd.
Yu Zhuoping Shanghai Intelligent New Energy Chairman & N
Vehicle Science and Technology President
Innovation Function Platform Co.,
Ltd.
Yu Zhuoping Huayu Automotive Systems Co., Independent Y
Ltd. Director
Yu Zhuoping Weichai Power Co., Ltd. Independent Y
Director
Yu Zhuoping Ningbo Shenglong Automotive Independent Y
Powertrain System Co., Ltd. Director
Yu Zhuoping Shanghai Municipal People's Counsellor N
Government
Yu Zhuoping China Society of Automotive Deputy Chief N
Engineers Supervisor
Chen Gilead (Shanghai) Executive Y
Jiangfeng Pharmaceutical Technology Co., Director, Senior
Ltd. Deputy General
Counsel
Wang Yue Shanghai University of Finance Professor Y
and Economics
Wang Yue Guangdong Yangshan United Independent Y
Precision Manufacturing Co., Ltd. Director
Wang Yue Scivita Medical Technology Co., Wang Yue Y
Ltd.
Xiao Hu JMCG Chairman of Y
Supervisory Board
Xiao Hu JMCG Jingma Motors Co., Ltd. Supervisor N
Xiao Hu Jiangxi Jiangling Group Special Supervisor N
Vehicle Co., Ltd.
Xiao Hu Jiangxi Jiangling Chassis Co., Supervisor N
Ltd.
Xiao Hu Jiangling Dingsheng Investment Supervisor N
Co., Ltd.
Xiao Hu Jiangxi Jiangling Real Estate Co., Chairman of N
Ltd. Supervisory Board
Zhang Ford Motor (China) Ltd. Director, General Y
Yangyang Counsel & China
Policy Group
Lead, Principal of
Beijing Branch
Zhang Changan Ford Automobile Co., Supervisor N
Yangyang Ltd.
Zhang Ford Motor Research & Supervisor N
Yangyang Engineering (Nanjing) Co., Ltd.
Zhang Ford Motor Research & Testing Supervisor N
Yangyang (Nanjing) Co. Ltd.
Zhang Fuqi Trading (Shanghai) Ltd. Supervisor N
Yangyang
Zhang Ford Model e Technology Supervisor N
Yangyang (Nanjing) Co., Ltd.
Zhang Ford Model E Auto Sales Supervisor N
Yangyang (Shanghai) Co., Ltd
Zhang Ford Model e Automobile Sales Supervisor N
Yangyang (Nanjing) Co., Ltd.
Zhang Lincoln Motor Sales Service Supervisor N
Yangyang (Shanghai) Co., Ltd.
Zhang Jiangling Ford Automobile Supervisor N
Yangyang Technology (Shanghai) Co., Ltd
Zhang Ford Technology (China) Holding, Director N
Yangyang Inc.
Zhang Jian JMCG Chairman of the Y
Labor Union
Zhang Jian Nanchang Jiangling Investment Chairman of N
Co. Ltd. Supervisory Board
Zhang Jian JMCG New Energy Automobile Supervisor N
Co. Ltd.
Zhang Jian Jiangxi Jiangling Special-Purpose Supervisor N
Vehicle Co., Ltd.
Zhang Jian Jiangxi JMCG Specialty Vehicles Supervisor N
Co., Ltd.
Zhang Jian Nanchang Gear Co., Ltd. Chief Supervisor N
Zhang Jian JMCG Finance Co., Ltd. Chief Supervisor N
Zhang Jian Jiangxi Lingrui Renewable Supervisor N
Resources Development Co., Ltd.
Zhang Jian Jiangxi Jiangling Real Estate Supervisor N
Co.,Ltd
Zhang Jian Jiangxi Jiangling Motors Imp. & Chief Supervisor N
Exp. Co., Ltd.
Zhang Jian Magna Powertrain (Jiangxi) Co. Supervisor N
Ltd.
Zhang Jian Jiangxi Yizhizhixing Automobile Supervisor N
Operation Service Co., Ltd.
Zhong JMCG Director Y
Junhua
Zhong Jiangling Motor Sales Co., Ltd. Executive Director N
Junhua
Ding JMCG Director N
Wenming
JoeyZhu Jiangling Ford Automobile Director N
Technology (Shanghai) Co., Ltd.
JoeyZhu Hanon Systems (Nanchang) Co., Director N
Ltd.
JoeyZhu Jiangling Motor Sales Co., Ltd. Supervisor N
Wu Xiaojun JMC Heavy Duty Vehicle Co., Executive N
Ltd. Director, General
Manger
Wu Xiaojun Shenzhen Fujiang New Energy Executive DirectorN
Automobile Sales Co., Ltd.
Wu Xiaojun Guangzhou Fujiang New Energy Executive Director N
Automobile Sales Co., Ltd.
Wu Xiaojun Shanxi Yunnei Power Co., Ltd. Director N
Liu Rangpo Jiangling Ford Automobile Director N
Technology (Shanghai) Co., Ltd.
Liu Rangpo Jiangling Motor Sales Co., Ltd. General Manager 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.
Anderson Jiangling Ford Automobile General Manager N
Liu Technology (Shanghai) 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 recently three years
□Applicable ?Not Applicable
(3). Compensation of Directors, Supervisors and Senior Executives
Decision-making procedure, determination of basis, and actual payment regarding
the compensation of the Directors, Supervisors and Senior Executives
Directors and Supervisors who did not concurrently hold other management
positions in JMC were not paid by JMC. Director Qiu Tiangao, Supervisor Xiao Hu
and Supervisor Zhang Jian were paid by JMCG. Director Shengpo Wu and
Director Ryan Anderson were paid by Ford. Supervisor Zhang Yangyang was paid
by Ford Motor (China) Ltd.. Director Yuan Mingxue were 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 bones 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 2023, the
Company paid annual compensation before tax of approximately RMB 1,820
thousand to EVP Ding Wenmin, paid approximately RMB 1,460 thousand to VP
Wu Xiaojun, paid approximately RMB 1,450 thousand to VP & Board Secretary Xu
Lanfeng, paid approximately RMB 1,420 thousand to VP Liu Rangpo, paid
approximately RMB 1,470 thousand to VP Wu Jiehong, paid approximately RMB
Employee-representative Supervisor Ma Jian, paid approximately RMB 440
thousand to Employee-representative Supervisor Li Yanling, and paid annual
compensation before tax of approximately RMB 2,010 thousand to Director & Ex-
EVP Jin Wenhui. The total compensation before tax paid by JMC for the aforesaid
persons was about RMB 12.28 million in the reporting period, including the long-
term incentive of RMB 810 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 2023, the Company should pay
approximately RMB 1,100 thousand to Ford for Director and President Xiong
Chunying, pay approximately RMB 1,100 thousand for CFO Joey Zhu, pay
US$ 500 thousand for VP Erik Hermann, pay RMB 1,100 thousand for VP Yang
Shenghua, pay RMB 1,100 thousand for VP Sam Lo, pay RMB 4,210 thousand for
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 2023, the Company paid annual compensation before tax of RMB
Jiangfeng, and Independent Director Wang Yue respectively.
Table on compensation of the Directors, Supervisors 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 57 Chairman Y 0 Y
Shengpo Wu Male 57 Vice Chairman Y 0 Y
Ryan
Male 50 Director
Anderson Y 0 Y
Yuan
Male 55 Director
Mingxue Y 0 Y
Xiong Director &
Female 59
Chunying President Y * Y
Independent
Male 63
Yu Zhuoping Director Y 100 Y
Chen Independent
Male 44
Jiangfeng Director Y 100 Y
Independent
Female 45
Wang Yue Director Y 100 Y
Xiao Hu Male 55 Chief supervisor Y 0 Y
Zhang
Male 44 Supervisor
Yangyang Y 0 Y
Zhang Jian Male 54 Supervisor Y 0 Y
Ma Jian Male 48 Supervisor Y 900 Y
Li Yanling Female 46 Supervisor Y 440 Y
Ding Wenmin Male 51 EVP Y 1,820 Y
Joey Zhu Male 41 CFO Y * Y
Erik Hermann Male 59 VP Y * Y
Wu Xiaojun Male 49 VP Y 1,460 Y
VP &Board
Female 54
Xu Lanfeng Secretary Y 1,450 Y
Liu Rangpo Male 50 VP Y 1,420 Y
Wu Jiehong Female 47 VP Y 1,470 Y
Yang
Male 43 VP
Shenghua Y * Y
Sam lo Male 44 VP Y * Y
Zeng Fafa Male 45 VP Y 1,310 Y
Anderson Liu Male 51 VP Y * Y
Director & Ex-
Jin Wenhui Male 56 N 2,010 N
EVP
Total - - - - 12,580 -
*See the instructions in the previous paragraph.
(1) Introduction to the Board of Directors
Meeting Convening Date Disclosure Date Meeting Resolutions
Annual Shareholders’ Meeting the
proposal on Year 2022 profit
distribution;
Report of the Company and the
Extracts from such Annual Report;
of the Board of Directors of the
Company;
Paper Meeting 2023.03.30
Control Self-assessment Report of
the Company;
Social Responsibility Report of the
Company;
Company Continuous Risk
Assessment Report;
Impairment Provisions & Write-off
proposal of the Company.
Twelfth Session of No matters that should be disclosed
the Tenth Board are involved.
Paper Meeting 2023.04.27
Shareholder Return Plan, and to
submit it to the Shareholders’
Meeting for approval;
Paper Meeting 2023.05.26 election of Directors for the new
Board of Directors to the
Shareholders’ Meeting for approval;
of JMC.
Chairman of JMC and Mr. Shengpo
Wu as the Vice Chairman of JMC;
First Session of the
Eleventh Board
special committees under the
Board;
Committee shall be comprised.
No matters that should be disclosed
Paper Meeting 2023.06.17
are involved.
Approved the Service Contract for
Ford All New F-150 Raptor
Between Jiangling Ford
Paper Meeting 2023.07.01 Automobile Technology (Shanghai)
Co., Ltd., a subsidiary of the
Company, and Ford Motor (China)
Ltd.
Report and the Extracts from such
Paper Meeting 2023.08.30
Company Continuous Risk
Assessment Report.
Second Session of No matters that should be disclosed
the Eleventh Board are involved.
Paper Meeting 2023.10.25
Approved the 2024 Routine Related
Third Session of
the Eleventh Board
Proposal.
No matters that should be disclosed
Paper Meeting 2023.12.09
are involved.
(2) Particulars about the Directors’ attendance to the Board meeting and the
Shareholders’ Meeting
Not to Presence
Presence present in at the
Required
Presence in form of Presence person in two Shareholde
Name Board Absence
in Person Paper by Proxy consecutive rs’ Meeting
Attendance
Meeting meetings
(Y/N)
Qiu Tiangao 12 4 8 - - N 1
Shengpo Wu 12 4 8 - - N 1
Ryan
Anderson
Yuan Mingxue 12 3 8 1 -
Xiong
Chunying
Jin Wenhui 12 4 8 - - N 1
Yu Zhuoping 12 4 8 - - N 1
Chen
Jiangfeng
Wang Yue 12 4 8 - - N 1
Statements on failure to attend Board meetings in person for two consecutive
occasions
None.
(3) Dissent from Directors
□Yes ?No
The Directors of the Company had no dissent to the relevant proposals of the
Company in the reporting period.
(4) 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 thoroughly 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.
Period
(1) Audit Committee
Members:
Chairman: Wang Yue
Member: Ryan Anderson, Yuan Mingxue, Yu Zhuoping, Chen Jiangfeng
Secretary: Joey Zhu
The number of meetings held in the reporting period: five.
The first Audit Committee meeting of 2023 was convened on January 13,
Reviewed the 2022 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 2023 was convened on February 22,
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 2023 was convened on March 3, 2023.
Meeting contents:
submit it to the Board of Directors for approval;
agreed to submit it to the Board of Directors for approval;
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 2023 was convened on June 15, 2023.
Meeting contents:
Work Plan for the second half of 2023;
Important comments and suggestions made: None
Other performance of duties: None.
Details of the objection to matters: None.
The fifth Audit Committee meeting of 2023 was convened on December 8,
submit it to the Board for review;
Determination Criteria；
Audit Work Plan for 2024.
Important comments and suggestions made: The Audit Committee
recommended the company pay more attention to the operating risk of export
business.
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 3, 2023.
Meeting contents:
Company’s senior executives;
target of the Company’s senior executives in 2023;
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, Jin
Wenhui
Secretary: Wu Jiehong
The number of meetings held in the reporting period: one.
A Strategy Committee meeting was convened on December 8, 2023. Meeting
contents:
Important comments and suggestions made: agreed to the company's new
energy strategy of commercial vehicles and should strengthen the implementation
of the Company's strategy.
Other performance of duties: None.
Details of the objection to matters: None.
Risks found by the Supervisory Board in the reporting period
□Yes ?No
The Supervisory Board 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) 224
Total employees at the end of reporting period(person) 11,619
Total employees paid compensation (person) 12,260
Retired employees bore retirement benefits in parent company and
its subsidiaries
Professional Structure
Employees
Type
(Person)
Production Worker 7,093
Sales Personnel 704
Technical Personnel 3,052
Finance Personnel 138
Administrative Staff 632
Total 11,619
Educational Level
Employees
Type
(Person)
Master degree and higher 908
Undergraduate degree 3,506
Polytechnic school degree 1,444
Below polytechnic school degree 5,761
Total 11,619
(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
In 2023, JMC focused on the talent transformation and cultivation in the field of
new automotive technologies and skills. By building an efficient and dynamic
learning environment, it was committed to improving the learning experience and
effectiveness, and providing employees with a broad platform and abundant
resources. This initiative aimed to provide solid human resources support for the
realization of the Company’s strategic goals, helping the Company meet the
challenges of the industry in the fields of new energy, intelligent connection
network and intelligent manufacturing.
(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 2023 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) 6.84
Total share capital (share) 863,214,000
Total cash dividend distribution amounts (RMB) (including tax) 590,438,376
Amount of cash dividend (RMB) in other ways (e.g. repurchase of
shares)
Total cash dividend amounts (RMB) (including other ways) 590,438,376
Distributable profit (RMB) 8,232,632,623
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 2023 profit distribution: the Company plans to distribute a cash
dividend of RMB 6.84 (including tax) for every 10 shares held. Based on the total
share capital of 863,214,000 shares as of December 31, 2023, the total cash dividend
distribution amounts shall be RMB 590,438,376. 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 2023 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 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 30, 2024
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 Material Weakness: Unscientific
changes the trend of results, decision making process such as
changes profit to loss or loss to incorrect decisions that result in
profit; Ineffective anti-fraud process unsuccessful mergers and
or any fraud involving senior acquisitions; Major regulatory
Qualitative Criteria
management; Ineffective control compliance issues; Frequent
over accounting policies; Ineffective media reports harmful to the
oversight by the Audit Committee Company’s reputation; A lack of
Significant Deficiency: Errors in control within key business
management reporting systems or processes or systematic
Corporate accounting records that breakdown of control policies;
could lead to incorrect management Material weakness identified in
decisions; Actions inconsistent with the self-assessment without any
Company values, policies, approval action plan implemented
authorities and other Corporate Significant Deficiency: a control
guidelines that are likely to deficiency, or combination of
significantly impact cost, quality, control deficiencies, that does not
customer satisfaction, reputation, or meet; The criteria for material
competitive advantage; Significant weakness but deserves the
control issues in IT infrastructure or concerns of the Audit Committee
applications that creates significant and the Board of Directors
risk to corporate assets or Minor Deficiency: Any control
processes; Identification of fraud of deficiencies that do not meet the
a significant magnitude or theft that criteria for material or significant
is significant in value
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
indicators above
Please refer to internal control
Significant Deficiency: Misstatement
deficiency over financial reporting
Quantitative Criteria in the Financial Report is more than
for the criteria for non-financial
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 PWC Zhongtian
Accountants (special general partnership) are as follows: On December 31, 2023, 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 30, 2024
Index www.cninfo.com.cn
Type of Opinion Standard and unqualified opinions
Major Defect Regarding Non-financial Report or no 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
for the governance of listed companies
According to the deployment of China Securities Regulatory Commission, in 2021,
the Company organized the self-inspection of the special action for the
governance of listed companies. After self-inspection, the Company did not find
any situation that needs to be rectified.
Chapter V Environment and Social Responsibilities
(1) Environmental protection
Whether the Company and affiliates is the key pollution discharge unit published
by environmental protection administration?
?Yes □No
Environmental protection related policies and industry standards
In 2023, the State updated the “Technical Specification for Setting Identification
Signs of Hazardous Waste”, the “Standard for Pollution Control on Hazardous
Waste Storage” and the “Stationary Source Emission—Specifications for
Continuous Monitoring of Nonmethane Hydrocarbons”, and other important
regulations. JMC updated the storage signs of all hazardous waste stations as
required, strictly regulated the storage conditions of all hazardous waste stations,
and followed the requirements to operate exhaust gas online monitoring
equipment to ensure the effective treatment of wastes and exhaust gases, and
safeguard the stable and standardized emission of pollutants.
Situation of administrative permit for environmental protection
In the process of environmental operation control, the Company takes the initiative
to analyze and foresee the current and future hidden worries, actively takes
preventive measures, and makes targeted countermeasures to implement
improvements. In terms of new construction, expansion and reconstruction
projects, the Company should make comprehensive environmental protection
planning and "three simultaneous" assessment, and always implement the
concept of energy saving and low carbon from the design source. In 2023, the
company's XiaoLan Plant coating SUV wire film pre-treatment technical
transformation project completed the environmental assessment procedures and
passed the environmental protection completion acceptance; Axle Plant passed
the clean production audit; Cast Plant sewage permit renewal application passed;
Other factory discharge permits are within the validity period.
Name of company
JMC JMC
or subsidiary
Kind of principal
Wastewater discharge
pollutant and Exhaust emission pollutant
pollutant
specific pollutant
Name of principal
pollutant and COD, NH-N SO2, NOx, NMHC
specific pollutant
Mode of discharge Continuous discharge Continuous discharge
Number of
discharge outlet
Distribution of 1 in Fushan Site, 2 in 38 in Fushan Site, 81 in Xiaolan
discharge outlet Xiaolan Site, 1 in Cast Site, 28 in Cast Plant and 3 in Axle
Plant and 1 in Axle Plant Plant
Discharge NOx: 2-182mg/m?;
COD: 15.73-57.93mg/L;
concentration NMHC: Xiaolan Plant 10.39g/ m2;
NH-N: 0.81-4.66mg/L
Fushan Plant 6.11g/ m2;
Particulate matter: 1.2-40.5mg/m?
Applicable Emission Standards for
standard for Atmospheric Pollutants from
pollutant discharge Boilers (GB13271-2014);
Gan EIA [2015] No. 144; Volatile Organic Compounds
Integrated Wastewater Emission Standards - Part 5: Auto
Discharge Standard (GB Manufacturing (DB36/1101.5-
Emission Standard of Air
Pollutants for Foundry Industry
(GB 39726—2020)
Total amount of NOx: 53.34t
COD: 39.43t;
discharge NMHC: Xiaolan Plant 167t,
NH-N: 2.1t
Fushan Plant 75t
Total amount of
COD≤517.39t; NOx≤95.59t
discharge
NH-N≤24.795t NMHC≤1882.4t
audited
Excessive Meet Standard Meet Standard
discharge
Treatment of pollutants
In 2023, about 760 thousand tons of wastewater were treated, and the treated
wastewater steadily met the national discharge standards. In order to ensure the
standard discharge of waste gas, the Company stable operation of waste gas
treatment facilities. JMC smart environmental supervision platform monitors in real
time to ensure the stable up-to-standard discharge of VOC data. In terms of the
waste management, the Company has adopted intelligent management system to
further standardize the refined management of hazardous waste. And by means of
source control, brainstorming, digging into the internal potential, the Company has
actively adopted various measures to reduce waste and cost.
Emergency plan on emergency environmental incidents
In order to dilute or prevent environmental risks, JMC established an emergency
preparation and response procedure and specific environmental emergency plans,
so as to formulate corresponding control methods for potential accidents and
emergences occurred or that may probably occur, and has been filed with the
environmental protection bureau. JMC organized various emergency drills to the
effectiveness of the plan.
Environmental self-monitoring scheme
The Company carries out self-monitoring in strict accordance with the
requirements of the state. The monitoring schemes, monitoring results, and annual
monitoring report on pollution sources were disclosed on the government platform.
In 2023, the reporting rate of self-monitoring data of the Company's four plants on
the national monitoring platform is 100%.
Relevant information of investment in environmental governance and
protection and payment of environmental protection tax
In 2023, the Company invested approximately RMB 14 million in environmental
remediation, operation and maintenance, of which, RMB 7.61 million for the
disposal of solid wastes, RMB 920 thousand for environmental monitoring and
online operation, RMB 290 thousand for the addition of new VOC online
monitoring equipment, and RMB 170 thousand for the optimization of the transfer
channel of Xiaolan Hazardous Waste Station. In 2023, JMC invested RMB 160
thousand for installing the hazardous waste intelligent terminal equipment in the
engine plant and the axle plant, to comprehensively update the hazardous waste
visualization to meet the latest national regulatory requirements; invested RMB
renovated hazardous waste station met the standardization requirements; in 2023,
JMC paid a total of approximately RMB 197,800 for environmental protection tax.
Remarks: The exhaust gas treatment facilities were not counted separately for the
operating expenses due to the overall operation with the production facilities.
Measures and effects taken to reduce carbon emissions during the reporting
period
?Applicable □Not Applicable
JMC has been adhering to green development principle to provide green, energy-
saving and environment-protection automobiles and responding to national
“double carbon” target, leading low carbon actions. Photovoltaic power generation
shelters were built above Xiaolan and Fushan vehicle parking lot and employees’
parking lots. By the end of December 2022, all 10 parallel points have been
connected to the grid for power generation, annual power generation is 74 million
kilowatt hours, which saving 24,272 tons of standard coal per year; reducing CO2
emissions by 61,568 tons/year; reducing SO2 emissions by 2,220 tons/year;
reducing NOx emissions by 1,110 tons/year. In the process of product
manufacturing, energy consumption is reduced by optimizing production
scheduling, balancing production, optimizing process, transforming energy-saving
technology, advocating green office and other measures. In 2023, the Company's
comprehensive energy consumption per million output value decreased by 7.53%
compared with 2022; The comprehensive energy consumption of the Company's
single vehicle decreased by nearly 10.18% compared with 2022.
Administrative punishment for environmental problems during the reporting
period
None.
Other environmental information that should be disclosed
None.
Other environmental protection related information
None.
Details are contained in the Company's Environmental, Social and Governance
(ESG) Report, which was disclosed on March 30, 2024.
revitalization
JMC deeply implemented the decision arrangement of the CPC Central
Committee on consolidating our gains in poverty elimination and advancing rural
revitalization across the board, and offered paired assistance to Xianting Village of
Songhu Town of Xinjian District of Nanchang City, Huanggangtou Village and
Hongxing Village of Liuhu Town of Honggutan New District of Nanchang City, and
Luoyang Village of Dafen Town of Suichuan County of Ji’an City according to the
requirements of the CPC Jiangxi Provincial Committee and People’s Government
of Jiangxi Province, and under the leadership of JMCG.
Taking industrial revitalization as a channel, by means of talent dispatching,
consumption assistance, etc., JMC deeply promoted rural revitalization work. In
yellow peaches, and 120,000 jin of rice from the assisted villages to increase
villagers’ income.
In 2023, JMC donated RMB 2 million to China Foundation for Rural Development
to implement the “JMC Xiqiao Project”. Since the establishment of the project,
JMC has invested more than RMB 38.7 million, benefiting 128 counties in 25
provinces (cities and autonomous regions) in China. In 2023, the brand of JMC
Xiqiao Project was refreshed, and JMC will uphold the new brand proposition of
“Building Bridges in the Countryside to Link the Road to Revitalization” to start a
new journey full of glory and dreams. With the brand refreshing, JMS’s funding for
each bridge will be raised from RMB 100,000 to RMB 200,000; at the same time,
the project introduced the “Internet+” mode to boost rural revitalization, and
through JMC Smart Drive APP, millions of JMC vehicle owners link with the JMC
Xiqiao Project to drive more forces to do good and practical things for rural
revitalization.
JMC Xiqiao Project has been awarded the “Best Practice Case of Rural
Revitalization for Listed Companies in 2023” by China Association for Public
Companies and the first China Fortune “Golden Lion” Excellent Case of Rural
Revitalization.
Chapter VI 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
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
correction of major accounting errors compared to the financial report of the
previous year
?Applicable □Not Applicable
Please refer to the Note 2 Summary of significant accounting policies and
accounting estimates (26) Significant changes in accounting policies in the
Chapter X Financial Statements for details.
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 PricewaterhouseCoopers Zhong Tian LLP
Compensation (RMB’000) 1,840
Consecutive years offering audit services 22
Names of signed accountants Ye Jun, Xiao Minjie
Consecutive years offering audit
Ye Jun 2 year, Xiao Minjie 2 year
services of signed accountants
Dismissal of accounting firm
□Applicable ?Not Applicable
Appointment of C-SOX auditor, financial consultant or sponsor
?Applicable □Not Applicable
Upon the approval of 2020 Annual Shareholders’ Meeting, JMC appointed
PricewaterhouseCoopers Zhong Tian LLP as JMC’s 2022 to 2024 C-SOX auditor.
In 2023, JMC paid RMB 440 thousand to PricewaterhouseCoopers Zhong Tian
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 7 related party transactions of the notes to the
consolidated financial statements in the Chapter X 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
□Applicable ?Not Applicable
(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)
JMCG
Subsidiary 0.455%-
Finance * 886,250 13,997,360 13,790,740 1,092,870
of JMCG 2.25%
Company
* 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 absorbing deposit 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)
JMCG
Subsidiary
Finance 1,000,000 2.5% 200,000 0 200,000 0
of JMCG
Company
Granting credit or other financial business
The related Total (RMB Actual amount
Related party Type of business
relationship thousands) (RMB thousands)
JMCG Finance
Subsidiary of JMCG Granting credit 1,300,000 0
Company
(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
Please refer to the Note 7 related party transactions of the notes to the
consolidated financial statements for details.
The announcement on Related Party Transactions
Website for
Name Disclosure Date
Disclosure
Public Announcement on Related Party
Transactions
Public Announcement on the 2024
Forecast Routine Related Party 2023.12.12 www.cninfo.com.cn.
Transactions
(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 4 (16), note 4 (31) and note 7 (5) (b) of the financial
statements in the Chapter X Financial Statements for detail.
Project of which the profit and loss brought for 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 for 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
In 2023, the Company received government incentives of approximately RMB 550
million appropriated from Nanchang Xiaolan Economic and Technological
Development Zone, which is to support the daily operation and development of the
Company.
?Applicable □Not Applicable
On August 23, 2021, by consensus, for transfer of equity interest in JMCH, a
wholly-owned subsidiary of the Company, the Company signed the Equity Interest
Transfer Agreement Relating to100% of the Equity Interests in JMC Heavy Duty
Vehicle Co., Ltd. with Volvo Lastvagnar Aktiebolag. In 2023, Since the items
required for government approval on the transaction were not completed within the
agreed time, the Company and Volvo Lastvagnar Aktiebolag agreed to terminate
the transaction through negotiation. Since the JMCH asset group was idled and
there was no clear plan for its subsequent operation, there was an indication of
impairment, the Company recorded a corresponding asset impairment provision of
approximately RMB 244 million in fiscal year 2023 for this asset group.
Chapter VII 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 34,453 shareholders, including 28,740 A-share holders, and 5,713 B-share
of the end of the holders, as of December 31, 2023.
reporting period
Total shareholders as JMC had 28,302 shareholders, including 22,755 A-share holders, and 5,547 B-share
of the last month-end holders, as of February 29, 2024.
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 3.96% 34,213,828 28,715,096 0 0
person
Ltd. (HKSCC)
Shanghai Automotive State-owned
Co., Ltd. legal person
Domestic
Jin Xing 0.87% 7,546,100 1,439,900 0 0
Natural Person
Invesco Great Wall
Domestic non-
New energy industry
State-owned 0.46% 3,984,400 3,984,400 0 0
equity securities
legal persons
investment fund
Domestic
Li Yifeng 0.34% 2,930,900 277,300 0 0
Natural Person
Domestic
Jin Shiya 0.27% 2,343,512 650,464 0 0
Natural Person
Taikang Life Insurance
Domestic non-
Co., Ltd.- investment
State-owned 0.27% 2,302,600 2,302,600 0 0
linked insurance -
legal persons
Industry Configuration
Foreign legal
GAOLING FUND, L.P. 0.21% 1,793,693 -3,659,393 0 0
person
Strategic investors or general legal persons become the top
None.
Notes on association among above-mentioned Shareholders holding more than 5% are not related.
shareholders
Description of the above shareholders' entrusted /
None.
entrusted voting rights and waived voting rights
A special description of the special repurchase account
None.
among the top 10 shareholders
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)
Shanghai Automotive Co., Ltd. 13,019,610 A share
Jin Xing 7,546,100 B share
Invesco Great Wall New energy industry
equity securities investment fund
Li Yifeng 2,930,900 B share
Jin Shiya 2,343,512 B share
Taikang Life Insurance Co., Ltd.-
investment linked insurance -Industry 2,302,600 A share
Configuration
GAOLING FUND, L.P. 1,793,693 B share
The top 10 shareholders to sell
circulated shares, and the infinite
tradable relationship between Shareholders holding more than 5% are not related.
shareholders and top 10 shareholders or
concerted action
Description of Shareholders Participating in None.
Financing and Securities Financing
Business
Participation of top ten shareholders in the lending of shares in the refinancing
business
□Applicable ?Not Applicable
Change in the top ten shareholders from the previous period due to the
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
be pursuing leadership positions in
electrification, autonomous
vehicles, and mobility solutions.
Equity status of other listed companies in domestic and aboard
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,
JMCG Qiu Tiangao July 27, 1991 parts and 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.
Equity status of listed companies in domestic and
aboard 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
The implementation progress of the reduction of the shares repurchase through
centralized bidding
□Applicable ?Not Applicable
Chapter VIII Preferred Shares
□Applicable ?Not Applicable
JMC had no preferred shares in the reporting period.
Chapter IX Bond related Information
□Applicable ?Not Applicable
Chapter X Financial Statements
Type of Audit Report Standard and Unqualified Opinion
Signature date March 28, 2024
Name of Auditor PricewaterhouseCoopers Zhong Tian LLP
Document No. of Audit Report PwC ZT Shen Zi (2024) No. 10080
[English Translation for Reference Only]
Auditor’s Report
PwC ZT Shen Zi (2024) No. 10080
(Page 1 of 5)
To the shareholders of Jiangling Motors Corporation, Ltd.,
Opinion
What we have audited
We have audited the accompanying financial statements of Jiangling Motors Corporation, Ltd.
(hereinafter “Jiangling Motors”), which comprise:
? the consolidated and company balance sheets as at 31 December 2023;
? the consolidated and company income statements for the year then ended;
? the consolidated and company cash flow statements for the year then ended;
? the consolidated and company statements of changes in shareholder’s equity for the year
then ended; and
? notes to the financial statements.
Our opinion
In our opinion, the accompanying financial statements present fairly, in all material respects, the
consolidated and company’s financial position of Jiangling Motors as at 31 December 2023 and
their financial performance and cash flows for the year then ended in accordance with the
requirements of Accounting Standards for Business Enterprises (“CASs”).
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 believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of Jiangling Motors in accordance with the Code of Ethics for Professional
Accountants of the Chinese Institute of Certified Public Accountants (“CICPA Code”), and we have
fulfilled our other ethical responsibilities in accordance with the CICPA Code.
Key Audit Matter
Key audit matters are those matters that, in our professional judgment, 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.
Key audit matter identified in our audit is expenditures on research and development.
PwC ZT Shen Zi (2024) No. 10080
(Page 2 of 5)
Key Audit Matter (Cont’d)
Key Audit Matter How our audit addressed the Key Audit Matter
Expenditures on research The audit procedures we performed on expenditures on research
and development and development included:
Please refer to Note 2(14)(e), ? We understood and evaluated the design of internal
Note 4(18) and Note 4(45) to controls related to expenditures on research and
the financial statements. development, and tested the operation effectiveness of the
key controls;
The amount of expenditures on ? We obtained breakdown of expenditures on research and
research and development was development by project and reconciled them with
RMB1,846,382,521 during the amounts recorded in general ledger;
year ended 31 December 2023, ? We understood the cost allocation method of research and
of which RMB560,180,909 was development projects, reviewed the results of allocation of
capitalised. As of 31 December indirect expenses, and verified the reasonableness the
development expenditures including payrolls, depreciation and amortization
amounted to RMB283,738,155. expenses;
? We compared costs components across different projects
We identified the expenditures and incurred research and development costs with
on research and development as corresponding budgets, and evaluated the progress of the
key audit matter due to the
different projects by interviewing with project managers
significant amount of
on a sampling basis;
expenditure of research and
development incurred, a ? For projects which expenditures on research and
portion of which being development were capitalised, we understood the criteria
capitalised and the fact that and timing of capitalisation determined by management;
there is significant we checked the feasibility reports of different projects and
management’s judgment interviewed with relevant project managers, reviewed the
involved in assessing whether verification reports and meeting minutes at different
the criteria of capitalisation research and development stages to further confirm the
have been met, particularly reasonableness of the judgment made by management;
included: and we assessed the technical feasibility of the
? Technical feasibility of the development projects and the likelihood of the generating
project of sufficient future economic benefits by considering
? Likelihood of the market information and the Company’s successful
generating of sufficient development experience in the past;
future economic benefits ? We tested expenditures on research and development on a
? Timing of the capitalisation 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.
Based on the audit procedures performed, the audit evidence we
obtained supports the recognition of the expenditures on research
and development and management's judgment on capitalisation of
the related development expenditures.
PwC ZT Shen Zi (2024) No. 10080
(Page 3 of 5)
Other Information
Management of Jiangling Motors is responsible for the other information. The other information
comprises all of the information included in 2023 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 regard.
Responsibilities of Management and the Audit Committee for the Financial Statements
Management of Jiangling Motors is responsible for the preparation and fair presentation of these
financial statements in accordance with the CASs, and for such internal control as 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 these financial statements, management is responsible for assessing Jiangling Motors’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 management either intend to liquidate Jiangling
Motors or to cease operations, or have no realistic alternative but to do so.
The Audit Committee is responsible for overseeing Jiangling Motors’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether these 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 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.
PwC ZT Shen Zi (2024) No. 10080
(Page 4 of 5)
Auditor’s Responsibilities for the Audit of the Financial Statements(Cont’d)
As part of an audit in accordance with CSAs, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
? 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.
? Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
? Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
? Conclude on the appropriateness of 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 Jiangling Motors’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 these 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 Jiangling Motors to cease to continue as a going concern.
? Evaluate the overall presentation (including the disclosures), structure and content of the
financial statements, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
? Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within Jiangling Motors 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 the Audit Committee 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 the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
PwC ZT Shen Zi (2024) No. 10080
(Page 5 of 5)
Auditor’s Responsibilities for the Audit of the Financial Statements (Cont’d)
From the matters communicated with the Audit Committee, 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.
PricewaterhouseCoopers Zhong Tian LLP Signing CPA
——————————
Ye Jun (Engagement Partner)
Shanghai, the People’s Republic of China Signing CPA ——————————
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED FINANCIAL STATEMENTS AND
REPORT OF THE AUDITORS
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY BALANCE SHEETS AS AT 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
Assets Notes 2023 2022 2023 2022
Consolidated Consolidated Company Company
Current assets
Cash and cash equivalents 4(1) 11,830,560,675 8,604,977,725 8,697,182,460 6,910,646,428
Financial assets held for
trading 4(2)
Derivative financial assets 4(3) - 2,972,698 - 2,972,698
Notes receivable 4(4) 14,621,337 742,752,730 700,000,000 1,099,742,888
Accounts receivable 14(1)
Financing receivables 4(6) 123,170,062 376,662,817 17,979,578 56,868,760
Advances to suppliers 4(7) 204,358,759 277,743,526 204,358,759 277,278,672
Other receivables 14(2)
Inventories 4(9) 1,560,259,511 2,129,040,820 1,558,685,526 2,129,040,820
Current portion of non-
current assets 4(11)
Other current assets 4(10) 951,659,556 1,362,502,624 731,819,005 1,310,164,197
Total current assets 19,378,130,453 17,867,109,698 16,590,711,130 14,298,320,275
Non-current assets
Long-term receivables 4(12) 22,775,696 31,148,044 16,699,348 31,148,044
Long-term equity 4(13)、
investments 14(3)
Fixed assets 4(14) 5,389,645,152 5,446,384,369 5,176,956,698 4,961,529,936
Construction in progress 4(15) 464,431,412 718,612,190 438,083,465 688,385,553
Right-of-use assets 4(16) 194,836,028 233,622,890 183,725,741 232,666,362
Intangible assets 4(17) 1,691,021,121 1,195,005,752 1,469,907,538 971,966,227
Development expenditures 4(18) 283,738,155 477,233,877 283,738,155 477,233,877
Goodwill 4(21) - - - -
Deferred tax assets 4(19) 1,472,003,554 1,250,722,193 185,190,368 235,320,874
Other non-current assets 4(20) 10,807,967 - 10,807,967 -
Total non-current assets 9,763,057,433 9,601,212,137 8,551,561,558 8,744,284,685
TOTAL ASSETS 29,141,187,886 27,468,321,835 25,142,272,688 23,042,604,960
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY BALANCE SHEETS (CONT'D) AS AT 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated))
Liabilities and equity Notes 2023 2022 2023 2022
Consolidated Consolidated Company Company
Current liabilities
Short-term borrowings 4(22) 1,300,000,000 1,100,000,000 1,300,000,000 1,100,000,000
Derivative financial liabilities 4(3) 459,306 - 459,306 -
Accounts payable 4(23) 9,476,215,223 9,015,978,354 9,475,904,232 9,015,584,820
Contract liabilities 4(24) 243,740,992 152,065,025 29,190,915 1,011,195
Employee benefits payable 4(25) 890,051,287 915,703,680 788,409,476 824,364,157
Taxes payable 4(26) 118,399,765 193,249,604 97,718,547 110,894,972
Other payables 4(27) 5,944,976,093 5,672,708,511 2,377,082,577 2,418,186,421
Current portion of non-current
liabilities 4(28)
Other current liabilities 4(29) 373,948,630 386,889,542 36,085,601 29,814,619
Total current liabilities 18,441,175,194 17,509,275,472 14,191,563,912 13,571,347,238
Non-current liabilities
Long-term borrowings 4(30) 1,391,414 20,858,057 1,391,414 20,858,057
Lease liabilities 4(31) 138,005,943 193,090,351 134,081,724 192,887,339
Provisions 4(32) 315,700,263 250,762,589 - -
Deferred income 4(33) 67,601,361 60,849,643 67,601,361 60,849,643
Long-term employee benefits
payable 4(34)
Deferred tax liabilities 4(19) 19,256,890 23,305,359 - -
Other non-current liabilities 4(35) 120,293,201 118,240,580 - -
Total non-current liabilities 715,140,072 718,399,579 255,636,499 325,662,039
Total liabilities 19,156,315,266 18,227,675,051 14,447,200,411 13,897,009,277
Equity
Share capital 4(36) 863,214,000 863,214,000 863,214,000 863,214,000
Capital surplus 4(37) 839,442,490 839,442,490 839,442,490 839,442,490
Other comprehensive income 4(38) (20,572,000) (13,484,250) (20,979,000) (13,844,250)
Special reserve 3,821,625 - 3,821,625 -
Surplus reserve 4(39) 431,607,000 431,607,000 431,607,000 431,607,000
Retained earnings 4(40) 8,232,632,623 7,123,038,093 8,577,966,162 7,025,176,443
Total equity attributable to
shareholders of the 10,350,145,738 9,243,817,333 10,695,072,277 9,145,595,683
Company
Minority interests (365,273,118) (3,170,549) - -
Total equity 9,984,872,620 9,240,646,784 10,695,072,277 9,145,595,683
TOTAL LIABILITIES AND
EQUITY
Legal representative：Qiu Tiangao CFO：Joey Zhu Finance Department：Hu Hanfeng
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY INCOME STATEMENTS FOR THE YEAR ENDED 31
DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
Item Notes
Consolidated Consolidated Company Company
Revenue 4(41)、14(4) 33,167,325,081 30,100,283,842 32,573,697,821 28,100,997,449
Less: Cost of sales 4(47)、14(4) (28,065,528,223) (25,812,264,868) (27,518,938,281) (25,020,438,748)
Taxes and surcharges 4(42) (974,171,328) (951,394,115) (936,086,314) (919,835,457)
Selling and distribution expenses 4(43)、4(47) (1,466,692,447) (1,444,894,711) (144,390,059) (171,729,499)
General and administrative expenses 4(44)、4(47) (983,458,031) (964,786,345) (899,692,892) (875,592,926)
Research and development expenses 4(45)、4(47) (1,286,201,612) (1,483,329,630) (1,286,201,612) (1,483,329,630)
Financial expenses 4(46) 204,908,754 163,907,346 149,679,267 108,526,076
Including: Interest expenses (41,844,790) (49,305,209) (36,373,400) (49,225,042)
Interest income 251,052,563 236,308,959 189,389,569 180,329,362
Add: Other income 4(50) 567,529,766 943,326,556 563,577,455 942,054,079
Investment income 4(51)、14(5) (10,579,046) (36,082,647) (17,317,710) (35,294,097)
Including: Share of profit of associates
and joint ventures (9,591,118) (8,768,433) (9,591,118) (8,768,433)
Gains on changes in fair value 4(52) (2,827,127) 13,434,988 (3,432,004) 13,677,317
Credit impairment losses 4(49) (5,964,483) (12,066,846) (4,170,386) 5,631,231
Asset impairment losses 4(48) (345,125,558) (7,242,768) (509,025,850) (7,242,768)
Gains on disposal of assets 4(53) (3,908,476) 391,369,117 (4,425,983) 391,709,115
Operating profit 795,307,270 900,259,919 1,963,273,452 1,049,132,142
Add: Non-operating income 4(54) 8,875,880 3,788,268 7,026,529 383,365
Less: Non-operating expenses 4(55) (6,041,023) (4,481,962) (5,991,770) (4,455,773)
Total profit 798,142,127 899,566,225 1,964,308,211 1,045,059,734
Less: Income tax expenses 4(56) 266,352,570 (36,687,606) (45,515,756) (49,560,101)
Net profit 1,064,494,697 862,878,619 1,918,792,455 995,499,633
Classified by continuity of operations
Net profit from continuing operations 1,064,494,697 862,878,619 1,918,792,455 995,499,633
Net profit from discontinued operations - - - -
Classified by ownership of the equity
Minority interests (411,102,569) (52,170,549) - -
Attributable to shareholders of the
Company 1,475,597,266 915,049,168 1,918,792,455 995,499,633
Other comprehensive income, net of
tax (7,087,750) 2,938,500 (7,134,750) 2,840,250
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 4(38) (7,087,750) 2,938,500 (7,134,750) 2,840,250
Attributable to minority interests - - - -
Total comprehensive income 1,057,406,947 865,817,119 1,911,657,705 998,339,883
Attributable to shareholders of the
Company 1,468,509,516 917,987,668 1,911,657,705 998,339,883
Attributable to minority interests (411,102,569) (52,170,549) - -
Earnings per share
Basic earnings per share (RMB Yuan) 4(57) 1.71 1.06 —— ——
Diluted earnings per share (RMB Yuan) 4(57) 1.71 1.06 —— ——
Legal representative：Qiu Tiangao CFO：Joey Zhu Finance Department：Hu Hanfeng
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS FOR THE YEAR ENDED
(All amounts in RMB Yuan unless otherwise stated)
Item Notes
Consolidated Consolidated Company Company
Cash flows generated from/(uesd in)
operating activities
Cash received from sales of goods or
rendering of services 37,150,759,550 30,379,935,542 33,349,485,191 28,500,883,020
Refunds of taxes 658,837,860 186,230,096 658,837,860 139,724,259
Cash received relating to other operating
activities 4(58) 653,090,552 1,048,761,411 616,538,138 1,012,041,891
Sub-total of cash inflows 38,462,687,962 31,614,927,049 34,624,861,189 29,652,649,170
Cash paid for goods and services (26,547,151,493) (26,012,469,683) (25,829,707,895) (25,251,565,747)
Cash paid to and on behalf of employees (2,564,423,876) (2,236,265,303) (2,361,423,689) (2,042,877,671)
Payments of taxes and surcharges (2,252,941,361) (2,208,513,599) (1,937,323,927) (1,895,305,960)
Cash paid relating to other operating activities 4(58) (2,530,631,366) (2,676,252,416) (1,395,818,726) (1,545,847,293)
Sub-total of cash outflows (33,895,148,096) (33,133,501,001) (31,524,274,237) (30,735,596,671)
Net cash flows generated from/(uesd in)
operating activities 4(59) 4,567,539,866 (1,518,573,952) 3,100,586,952 (1,082,947,501)
Cash flows uesd in investing activities
Cash received from disposal of investments 4(58) 300,000,000 200,000,000 - -
Cash received from returns on investments 7,215,548 1,523,836 5,093,356 -
Net cash received from disposal of fixed
assets, intangible assets and other long-term
assets 2,193,226 783,318,054 2,920,918 782,994,506
Cash received from disposal of subsidiaries
and other business units 60,900,000 191,100,000 60,900,000 191,100,000
Cash received relating to other investing
activities 4(58) 254,122,532 231,280,443 193,082,627 181,238,794
Sub-total of cash inflows 624,431,306 1,407,222,333 261,996,901 1,155,333,300
Cash paid to acquire fixed assets, intangible
assets and other long-term assets (1,296,500,813) (1,380,537,113) (1,295,937,393) (1,377,197,659)
Cash paid to acquire investments 4(58) (500,000,000) (100,000,000) (53,167,203) (55,924,647)
Cash paid relating to other investing activities (88,707) (15,828,699) (88,707) (15,828,699)
Sub-total of cash outflows (1,796,589,520) (1,496,365,812) (1,349,193,303) (1,448,951,005)
Net cash flows uesd in from investing
activities (1,172,158,214) (89,143,479) (1,087,196,402) (293,617,705)
Cash flows (uesd in)/generated from
financing activities
Cash received from absorbing investments 49,000,000 49,000,000 - -
Including: cash received by the subsidiary from
absorbing minority shareholders' investment 49,000,000 49,000,000 - -
Cash received from borrowings 4,278,854,833 4,682,667,661 3,583,941,056 4,682,667,661
Cash received from other financing activities 700,000,000 - - -
Sub-total of cash inflows 5,027,854,833 4,731,667,661 3,583,941,056 4,682,667,661
Cash repayments of borrowings (4,106,648,284) (3,900,441,579) (3,406,648,284) (3,900,441,579)
Cash payments for distribution of dividends,
profits or interest expenses (377,731,962) (230,386,002) (377,731,962) (230,386,002)
Cash paid relating to other financing activities 4(58) (735,531,278) (18,980,309) (27,737,455) (17,978,248)
Sub-total of cash outflows (5,219,911,524) (4,149,807,890) (3,812,117,701) (4,148,805,829)
Net cash flows (uesd in)/generated from
financing activities (192,056,691) 581,859,771 (228,176,645) 533,861,832
Effect of foreign exchange rate changes on
cash and cash equivalents - - - -
Net increase/(decrease) in cash and cash
equivalents 4(59) 3,203,324,961 (1,025,857,660) 1,785,213,905 (842,703,374)
Add: Cash and cash equivalents at beginning
of year 4(59) 8,543,193,654 9,569,051,314 6,863,577,337 7,706,280,711
Cash and cash equivalents at end of year 4(59) 11,746,518,615 8,543,193,654 8,648,791,242 6,863,577,337
Legal representative：Qiu Tiangao CFO：Joey Zhu Finance Department：Hu Hanfeng
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(All amounts in RMB Yuan unless otherwise stated)
Attributable to shareholders of the parent company
Other Minority
Item Notes Share Capital Special Surplus Retained Total equity
comprehen interests
capital surplus reserve reserve earnings
sive income
Balance at 1 January 2023 863,214,000 839,442,490 (13,484,250) - 431,607,000 7,123,038,093 (3,170,549) 9,240,646,784
Movements for the year ended 31 December 2023 - - (7,087,750) 3,821,625 - 1,109,594,530 (362,102,569) 744,225,836
Total comprehensive income
Net profit/(loss) - - - - - 1,475,597,266 (411,102,569) 1,064,494,697
Other comprehensive income - - (7,087,750) - - - - (7,087,750)
Total comprehensive income for the year - - (7,087,750) - - 1,475,597,266 (411,102,569) 1,057,406,947
Capital contributed by owners and capital decreases
Capital invested by shareholders - - - - - - 49,000,000 49,000,000
Profit distribution
Distribution to shareholders 4(40) - - - - - (366,002,736) - (366,002,736)
Special reserve
Withdrawal this year - - - 29,300,742 - - - 29,300,742
Used this year - - - (25,479,117) - - - (25,479,117)
Balance at 31 December 2023 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
JIANGLING MOTORS CORPORATION, LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONT’D)
(All amounts in RMB Yuan unless otherwise stated)
Attributable to shareholders of the parent company
Other Minority
Item Notes Share Capital Surplus Retained Total equity
comprehen interests
capital surplus reserve earnings
sive income
Balance at 1 January 2022 863,214,000 839,442,490 (16,422,750) 431,607,000 6,437,603,849 - 8,555,444,589
Movements for the year ended 31 December 2022 - - 2,938,500 - 685,434,244 (3,170,549) 685,202,195
Total comprehensive income
Net profit/(loss) - - - - 915,049,168 (52,170,549) 862,878,619
Other comprehensive income - - 2,938,500 - - - 2,938,500
Total comprehensive income for the year - - 2,938,500 - 915,049,168 (52,170,549) 865,817,119
Capital contributed by owners and capital decreases
Capital invested by shareholders - - - - - 49,000,000 49,000,000
Profit distribution
Distribution to shareholders 4(40) - - - - (229,614,924) - (229,614,924)
Balance at 31 December 2022 863,214,000 839,442,490 (13,484,250) 431,607,000 7,123,038,093 (3,170,549) 9,240,646,784
Legal representative：Qiu Tiangao CFO：Joey Zhu Finance Department：Hu Hanfeng
JIANGLING MOTORS CORPORATION, LTD.
COMPANY STATEMENT OF CHANGES IN EQUITY
(All amounts in RMB unless otherwise stated)
Other
Share Capital Special Surplus Retained
Item Notes comprehensive Total equity
capital surplus reserve reserve earnings
income
Balance at 1 January 2023 863,214,000 839,442,490 (13,844,250) - 431,607,000 7,025,176,443 9,145,595,683
Movements for the year ended
- - (7,134,750) 3,821,625 - 1,552,789,719 1,549,476,594
Total comprehensive income
Net profit - - - - - 1,918,792,455 1,918,792,455
Other comprehensive income - - (7,134,750) - - - (7,134,750)
Total comprehensive income for
- - (7,134,750) - - 1,918,792,455 1,911,657,705
the year
Profit distribution
Distribution to shareholders 4(40) - - - - - (366,002,736) (366,002,736)
Special reserve
Withdrawal this year - - - 29,300,742 - - 29,300,742
Used this year - - - (25,479,117) - - (25,479,117)
Balance at 31 December 2023 863,214,000 839,442,490 (20,979,000) 3,821,625 431,607,000 8,577,966,162 10,695,072,277
JIANGLING MOTORS CORPORATION, LTD.
COMPANY STATEMENT OF CHANGES IN EQUITY
(All amounts in RMB unless otherwise stated)
Share Capital Other comprehensive Surplus Retained
Item Notes Total equity
capital surplus income reserve earnings
Balance at 1 January 2022 863,214,000 839,442,490 (16,684,500) 431,607,000 6,259,291,734 8,376,870,724
Movements for the year ended
- - 2,840,250 - 765,884,709 768,724,959
Total comprehensive income
Net profit - - - - 995,499,633 995,499,633
Other comprehensive income - - 2,840,250 - - 2,840,250
Total comprehensive income for
- - 2,840,250 - 995,499,633 998,339,883
the year
Profit distribution
Distribution to shareholders 4(40) - - - - (229,614,924) (229,614,924)
Balance at 31 December 2022 863,214,000 839,442,490 (13,844,250) 431,607,000 7,025,176,443 9,145,595,683
Legal representative：Qiu Tiangao CFO：Joey Zhu Finance Department：Hu Hanfeng
JIANGLING MOTORS CORPORATION, LTD.
FINANCIAL STATEMENTS AND
AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
[English translation for reference only. Should there be any inconsistency between the
Chinese and English versions, the Chinese version shall prevail.]
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 registration number of the enterprise
business license is No. 913600006124469438. The registered address of the Company
and the address of its headquarters are both 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
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 Office Fu
[1995] No. 92), the Company issued 174,000,000 ordinary shares (“B shares”). In 1998,
with the approval of CSRC (Zheng Jian Fa 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 4(36).
As at 31 December 2023, 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; retail and wholesale of imported FORD E series
automobiles of Ford Motor (China) Co., Ltd. as the dealer; import and export of
automobiles and parts; dealership of used cars; provision of enterprise management and
consulting services related to production and sales of automobiles.
Subsidiaries included in the consolidation scope for the current year are detailed in Note
These financial statements were authorised for issue by the Company's Board of Directors
on 28 March 2024.
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 (“ECL”) on receivables (Note 2(8)), valuation of inventories (Note 2(9)),
depreciation of fixed assets and amortisation of intangible assets and right-of-use assets
(Note 2(11), (14), (22)), criteria for capitalisation of development expenditures (Note
revenue (Note 2(19)), government subsidies (Note2(20)), etc.
Key judgements and critical accounting estimates and key assumptions applied by the
Group on the determination of significant accounting policies are set out in Note 2(25).
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(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 issued by the Ministry of Finance on 15 February 2006 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.
These financial statements have been prepared on a going concern basis.
(2) Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the year ended 31 December 2023 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 2023 and their financial performance, cash flows and other information
for the year then ended.
(3) Fiscal year
The Company’s fiscal year starts on 1 January and ends on 31 December.
(4) Recording currency
The recording currency of the Company and its subsidiaries is Renminbi (“RMB”). The
financial statements are presented in RMB.
(5) Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company
and all of its subsidiaries.
Subsidiaries are consolidated from the date on which the Group obtains control and are
de-consolidated from the date that such control ceases. For a subsidiary that is acquired
in a business combination involving enterprises under common control, it is included in the
consolidated financial statements from the date when it, together with the Company,
comes under common control of the ultimate controlling party. The portion of the net
profits realised before the combination date is presented separately in the consolidated
income statement.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Preparation of consolidated financial statements (Cont’d)
In preparing the consolidated financial statements, where the accounting policies or the
accounting periods of the Company and subsidiaries are inconsistent, the financial
statements of the subsidiaries are adjusted in accordance with the accounting policies and
the accounting period of the Company. For subsidiaries acquired from business
combinations involving enterprises not under common control, the individual financial
statements of the subsidiaries are adjusted based on the fair value of the identifiable net
assets at the acquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in
the consolidated financial statements. The portion of subsidiaries’ shareholders' equity
and the portion of subsidiaries’ net profits and losses and comprehensive income for the
period not attributable to the Company are recognised as minority interests, net profit
attributed to minority interests and total comprehensive income attributed to minority
interests and presented separately in the consolidated financial statements under
shareholders' equity, net profits and total comprehensive income respectively. If the
subsidiaries’ loss for the current period attributed to the minority shareholders exceeds
their share in the opening shareholder’s equity, the excess will be deducted against the
minority interests. Unrealised profits and losses resulting from the sales of assets by the
Company to its subsidiaries are fully eliminated against net profit attributable to owners of
the parent. Unrealised profits and losses resulting from the sales of assets by a subsidiary
to the Company are eliminated and allocated between net profit attributable to owners of
the parent and net profit attributed to minority interests in accordance with the allocation
proportion of the parent in the subsidiary. Unrealised profits and losses resulting from the
sales of assets by one subsidiary to another are eliminated and allocated between net
profit attributable to owners of the parent and net profit attributed to minority interests in
accordance with the allocation proportion of the parent in the subsidiary.
If the accounting treatment of a transaction is inconsistent in the financial statements at
the Group level and at the Company or its subsidiary level, adjustment will be made from
the perspective of the Group.
The Group remeasure the remaining investment held at its fair value in the consolidated
statement of financial position when the control is lost because of the partially disposal of
the equity or other reasons. The difference between the consideration of the disposal as
well as the fair value of the remaining investment and the share of net assets of the former
subsidiary calculated based on the original share since the acquisition date as well as the
good will is recognised in investment income in the period of control lost. In addition, the
other comprehensive income and other changes in owner's equity related to the
investment of the former subsidiary, are reclassified to profit or loss when the control is
lost, except for the changes arising from remeasurement of net liabilities or net assets of
defined benefit, the accumulated changes in fair value from the equity instruments not
held for trading and designated as financial assets at fair value through other
comprehensive income by the investee.
(6) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on
demand, and short-term and highly liquid investments that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(7) Foreign currency translation
Foreign currency transactions
Foreign currency transactions are translated into recording currency using the exchange
rates prevailing at the dates of the transactions.
At the balance sheet date, monetary items denominated in foreign currencies are
translated into recording currency using the spot exchange rates on the balance sheet
date. Exchange differences arising from these translations are recognised in profit or loss
for the current period, except for those attributable to foreign currency borrowings that
have been taken out specifically for acquisition or construction of qualifying assets, which
are capitalised as part of the cost of those assets. Non-monetary items denominated in
foreign currencies that are measured at historical costs are translated at the balance sheet
date using the spot exchange rates at the date of the transactions. The effect of exchange
rate changes on cash is presented separately in the cash flow statement.
(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.
(a) Financial assets
(i) Classification and measurement
Based on the business model for managing the financial assets and the contractual cash
flow characteristics of the financial assets, financial assets are classified as: (1) financial
assets at amortised cost; (2) financial assets at fair value through other comprehensive
income; (3) financial assets at fair value through profit or loss.
The financial assets are measured at fair value at initial recognition. Related transaction
costs that are attributable to the acquisition of the financial assets are included in the
initially recognised amounts, except for the financial assets at fair value through profit or
loss, the related transaction costs of which are recognised directly in profit or loss for the
current period. Accounts receivable or notes receivable arising from sales of products or
rendering of services (excluding or without regard to significant financing components) are
initially recognised at the consideration that is entitled to be charged by the Group as
expected.
Debt instruments
The debt instruments held by the Group refer to the instruments that meet the definition of
financial liabilities from the perspective of the issuer, and are measured in the following
three ways:
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(8) Financial instruments (Cont’d)
(a) Financial assets (Cont’d)
(i) Classification and measurement (Cont’d)
Measured at amortised cost:
The objective of the Group’s business model is to hold the financial assets to collect the
contractual cash flows, and the contractual cash flow characteristics are consistent with a
basic lending arrangement, which gives rise on specified dates to the contractual cash
flows that are solely payments of principal and interest on the principal amount
outstanding. The interest income of such financial assets is recognised using the effective
interest method. Such financial assets mainly include cash at bank and on hand, notes
receivable, accounts receivable, other receivables and long-term receivables, etc. The
Group presents long-term receivables that are due within one year from the balance sheet
date (including one year) as non-current assets due within one year.
Measured at fair value through other comprehensive income:
The objective of the Group’s business model is to hold the financial assets to both collect
the contractual cash flows and sell such financial assets, and the contractual cash flow
characteristics are consistent with a basic lending arrangement. Such financial assets are
measured at fair value through other comprehensive income, except for the impairment
gains or losses, foreign exchange gains and losses, and interest income calculated using
the effective interest method which are recognised in profit or loss for the current period.
Such financial assets mainly include financing receivables, etc.
Measured at fair value through profit or loss:
Debt instruments held by the Group that are not divided into those at amortised cost, or
those measured at fair value through other comprehensive income, are measured at fair
value through profit or loss. At initial recognition, the Group does not designate a portion
of financial assets as at fair value through profit or loss to eliminate or significantly reduce
an accounting mismatch. Financial assets that are due in more than one year as from the
balance sheet date and are expected to be held for over one year are included in other
non-current financial assets, and the others are included in financial assets held for
trading.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(8) Financial instruments (Cont’d)
(a) Financial assets (Cont’d)
(ii) Impairment
Loss provision for financial assets at amortised cost and receivables financing at fair value
through other comprehensive income is recognised on the basis of ECL.
Giving consideration to reasonable and supportable information that is related to past
events, current conditions and forecasts of future economic conditions and is available
without undue cost or effort at the balance sheet date, as well as the default risk weight,
the Group recognises the ECL as the probability-weighted amount of the present value of
the difference between the cash flows receivable from the contract and the cash flows
expected to collect.
For notes receivable, accounts receivable and financing receivables arising from sales of
goods and rendering of services in the ordinary course of operating activities, the Group
recognises the lifetime ECL regardless of whether there exists a significant financing
component.
Except for the above-mentioned notes receivable, accounts receivable and financing
receivables, as at each balance sheet date, the ECL of financial instruments at different
stages are measured respectively. 12-month ECL provision is recognised for financial
instruments in Stage 1 that have not had a significant increase in credit risk since initial
recognition; lifetime ECL provision is recognised for financial instruments in Stage 2 that
have had a significant increase in credit risk yet without credit impairment since initial
recognition; and lifetime ECL provision is recognised for financial instruments in Stage 3
that have had credit impairment since initial recognition.
For the financial instruments with low credit risk on the balance sheet date, the Group
assumes there is no significant increase in credit risk and identifies it in Stage 1 since
initial recognition and recognises the 12-month ECL provision.
For the financial instruments in Stage 1 and Stage 2, the Group calculates the interest
income by applying the effective interest rate to the gross carrying amount (before
deduction of the impairment provision). For the financial instrument in Stage 3, the interest
income is calculated by applying the effective interest rate to the amortised cost (after
deduction of the impairment provision from the gross carrying amount).
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(8) Financial instruments (Cont’d)
(a) Financial assets (Cont’d)
(ii) Impairment (Cont’d)
The credit risk characteristics of various financial assets where the ECL is calculated
individually are significantly different from those of other financial assets in this category.
In case the ECL of an individually assessed financial asset cannot be evaluated with
reasonable cost, the Group divides the receivables into certain groupings based on credit
risk characteristics and calculates the ECL for the groupings. Basis for determining
groupings and related provision methods are as follows:
Grouping - Bank acceptance notes State-owned banks and joint stock banks
Customers purchasing using trade acceptance
Grouping - Trade acceptance notes notes
Grouping - Sales of general Customers of general automobiles, with the aging
automobiles i) calculated from the overdue date
Grouping - Domestic sales of Domestic customers of general automobiles, with
general automobiles i) the aging calculated from the overdue date
Grouping - Export sales of general Overseas customers of export general
automobiles i) automobiles, with the aging calculated from the
overdue date
Grouping - Sales of new energy Customers of new energy automobiles, with the
automobiles aging calculated from the overdue date
Grouping - Sales of automobile Customers of automobile parts, with the aging
parts calculated from the overdue date
Grouping - Other receivables Other receivables with the same nature
i) In 2023, the Group splitted the Sales of general automobiles grouping into the Domestic
sales of general automobiles grouping and the Export sales of general automobiles
grouping based on changes in business policies.
For accounts receivable classified as a portfolio and notes receivable and financing
receivables resulting from daily operating activities such as sale of goods and provision of
services, the Group calculates the ECL with reference to historical credit losses
experience, current conditions and forecasts of future economic conditions, and based on
the exposure at default and the lifetime ECL rate. For other notes receivable, financing
receivables and other receivables classified into groupings, the Group calculates the ECL
with reference to the historical credit loss experience, current conditions and forecasts of
future economic conditions, and based on the exposure at default and the 12-month or
lifetime ECL rate.
The Group recognises the loss provision made or reversed into profit or loss for the
current period. For debt instruments held at fair value through other comprehensive
income, the Group adjusts other comprehensive income while the impairment loss or gain
is recognised in profit or loss for the current period.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(8) Financial instruments (Cont’d)
(a) Financial assets (Cont’d)
(iii) Derecognition
A financial asset is derecognised when: (i) the contractual rights to the cash flows from the
financial asset expire, (ii) the financial asset has been transferred and the Group transfers
substantially all the risks and rewards of ownership of the financial asset to the transferee,
or (iii) the financial asset has been transferred and the Group has not retained control of
the financial asset, although the Group neither transfers nor retains substantially all the
risks and rewards of ownership of the financial asset.
When a financial asset is derecognised, the difference between the carrying amount and
the sum of the consideration received and the cumulative changes in fair value that are
previously recognised directly in other comprehensive income is recognised in profit or
loss for the current period.
(b) Financial liabilities
Financial liabilities are classified as financial liabilities at amortised cost and financial
liabilities at fair value through profit or loss at initial recognition.
Financial liabilities of the Group mainly comprise financial liabilities at amortised cost,
including notes payable, accounts payable, other payables, borrowings, etc. Such
financial liabilities are initially recognised at fair value, net of transaction costs incurred,
and subsequently measured using the effective interest method. Financial liabilities that
are due within one year (inclusive) are classified as current liabilities; those with maturities
over one year but are due within one year (inclusive) as from the balance sheet date are
classified as current portion of non-current liabilities. Others are classified as non-current
liabilities.
A financial liability is derecognised or partly derecognised when the underlying present
obligation is discharged or partly discharged. The difference between the carrying amount
of the derecognised part of the financial liability and the consideration paid is recognised
in profit or loss for the current period.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(8) Financial instruments (Cont’d)
(c) Determination of fair value of financial instruments
The fair value of a financial instrument that is traded in an active market is determined at
the quoted price in the active market. The fair value of a financial instrument that is not
traded in an active market is determined by using a valuation technique. In valuation, the
Group adopts valuation techniques applicable in the current situation and supported by
adequate available data and other information, selects inputs with the same characteristics
as those of assets or liabilities considered in relevant transactions of assets or liabilities by
market participants, and gives priority to the use of relevant observable inputs. When
relevant observable inputs are not available or feasible, unobservable inputs are adopted.
(9) Inventories
(a) Classification
Inventories include raw materials, work-in-process, finished goods, low-value
consumables, materials in transit and materials on consignment, etc., and are measured at
the lower of cost or net realizable value.
(b) Costing of inventories
Cost is determined using the weighted average method. The cost of finished goods and
work in progress comprise raw materials, direct labour and systematically allocated
production overhead based on the normal production capacity.
(c) Basis for determining net realisable value of inventories and method for making provision
for inventories
Provision for inventories is determined at the excess amount of the carrying amounts of
the inventories over their net realisable value. Net realisable value is determined based on
the estimated selling price in the ordinary course of business, less the estimated costs to
completion, estimated contract fulfilment costs and estimated costs necessary to make the
sale and related taxes. The provision for decline in the value of inventories relating to
inventories that are produced and sold in the same region and with the same or similar end
uses or purposes, is determined on an aggregate basis. The Group makes provision for
decline in the value of inventories based on factors including sales.
(d) The Group adopts the perpetual inventory system.
(e) Amortisation method of low value consumables
Low value consumables are amortised into expenses in full when issued for use.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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.
Subsidiaries are the investees over which the Company is able to exercise control.
Associates are the investees that the Group has a significant influence on their financial
and operating decisions.
Investments in subsidiaries are presented using the cost method in the Company’s
financial statements, and adjusted to the equity method when preparing the consolidated
financial statements. Investments in associates are accounted for using the equity
method.
(a) Determination of investment cost
For long-term equity investments acquired through a business combination involving
enterprises under common control, the investment cost shall be the absorbing party’s
share of the carrying amount of owners’ equity of the party being absorbed in the
consolidated financial statements of the ultimate controlling party at the combination date;
for long-term equity investments acquired through a business combination not involving
enterprises under common control, the investment cost shall be the combination cost.
For long-term equity investments acquired not through a business combination, such as
long-term equity investments acquired by payment in cash, the initial investment cost shall
be the purchase price actually paid; for long-term equity investments acquired by issuing
equity securities, the initial investment cost shall be the fair value of the equity securities
issued.
(b) Subsequent measurement and recognition of profit or loss
Long-term equity investments accounted for using the cost method are measured at the
initial investment cost. Cash dividend or profit distribution declared by an investee is
recognised as investment income into profit or loss for the current period.
For long-term equity investments accounted for using the equity method, where the initial
investment cost exceeds the Group’s share of the fair value of the investee’s identifiable
net assets at the time of acquisition, the investment is initially measured at that cost.
Where the initial investment cost is less than the Group’s share of the fair value of the
investee’s identifiable net assets at the time of acquisition, the difference is included in
profit or loss for the current period and the cost of the long-term equity investment is
adjusted upwards accordingly.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(10) Long-term equity investments (Cont’d)
(b) Subsequent measurement and recognition of profit or loss (Cont’d)
For long-term equity investments accounted for using the equity method, the Group
recognises the investment income or losses according to its share of net profit or loss of
the investee. The Group does not recognise further losses when the carrying amounts of
the long-term equity investment together with any long-term interests that, in substance,
form part of the Group’s net investment in investees are reduced to zero. However, if the
Group has obligations for additional losses and the criteria with respect to recognition of
provisions are satisfied, the Group continues recognising the investment losses and the
provisions at the amount it expects to undertake. The Group’s share of the changes in
investee’s owner's equity other than those arising from the net profit or loss, other
comprehensive income and profit distribution is recognised in capital surplus with a
corresponding adjustment to the carrying amounts of the long-term equity investment. The
carrying amount of the investment is reduced by the Group’s share of the profit distribution
or cash dividends declared by the investees.
Unrealised gains or losses on transactions between the Group and its investees are
eliminated to the extent of the Group’s equity interest in the investees, based on which the
investment income or losses in the Company’s financial statements are recognised. When
preparing consolidated financial statements, for the portion of unrealised gains and losses
of internal transaction attributable to the Group arising from downstream transactions in
which the Group invests in or sells assets to the investees, the Group shall, on the basis
of offsetting the Company's financial statements, offset the portion of unrealised revenue
and costs or asset disposal gains and losses attributable to the Group, and adjust
investment income accordingly; for the unrealised gains and losses of internal transaction
attributable to the Group arising from the upstream transactions in which the investees
invest in or sell assets to the Group, the Group shall, on the basis of offsetting the
Company's financial statements, offset the portion of unrealised gains and losses of
internal transaction included in the carrying amount of the relevant assets, and adjust the
carrying amount of long-term equity investments accordingly. Any losses resulting from
transactions between the Group and its investees, which are attributable to asset
impairment losses are not eliminated.
(c) Basis for determining existence of control and significant influence over investees
Control is the power over investees that can bring variable returns through involvement in
related activities of investees and the ability to influence the returns by using such power
over investees.
Significant influence is the power to participate in making decisions on financial and
operating policies of the investee but is not control or joint control over making those
policies.
(d) Impairment of long-term equity investments
The carrying amounts of long-term equity investments in subsidiaries and associates is
reduced to the recoverable amounts when the recoverable amounts are below their
carrying amount (Note 2(15)).
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(11) Fixed assets
(a) Recognition and initial measurement of fixed assets
Fixed assets comprise buildings, machinery and equipment, vehicles, moulds, and
electronic and other equipment.
Fixed assets are recognised when it is probable that the related economic benefits will
flow to the Group and the costs can be reliably measured. Fixed assets purchased or
constructed by the Group are initially measured at cost at the time of acquisition. The fixed
assets contributed by the state-owned shareholders upon the restructuring of the
Company are recorded at the valued amount determined by the state-owned asset
administration department.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed
asset when it is probable that the associated economic benefits will flow to the Group and
the related cost can be reliably measured. The carrying amount of the replaced part is
derecognised. All the other subsequent expenditures are recognised in profit or loss for
the period in which they are incurred.
(b) Depreciation methods of fixed assets
Fixed assets are depreciated using the straight-line method to allocate the cost of the
assets to their estimated net residual values over their estimated useful lives. For the fixed
assets that have been provided for impairment loss, the related depreciation charge is
prospectively determined based upon the adjusted carrying amounts over their remaining
useful lives.
The estimated useful lives, the estimated net residual values expressed as a percentage
of cost and the annual depreciation rates of fixed assets are as follows:
Estimated useful Estimated net Annual depreciation
lives residual 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% - 22.32% 9.6% to 42.2%
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.
(c) The carrying amount of a fixed asset is reduced to the recoverable amount when the
recoverable amount is below the carrying amount (Note 2(15)).
(d) Disposal of fixed assets
A fixed asset is derecognised on disposal or when no future economic benefits are
expected from its use or disposal. The amount of proceeds from disposals on sale,
transfer, retirement or damage of a fixed asset net of its carrying amount and related
taxes and expenses is recognised in profit or loss for the current period.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(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 2(15)).
(13) Borrowing costs
The borrowing costs that are directly attributable to acquisition and construction of an
asset that needs a substantially long period of time for its intended use commence to be
capitalised and recorded as part of the cost of the asset when expenditures for the asset
and borrowing costs have been incurred, and the activities relating to the acquisition and
construction that are necessary to prepare the asset for its intended use have
commenced. The capitalisation of borrowing costs ceases when the asset under
acquisition or construction becomes ready for its intended use and the borrowing costs
incurred thereafter are recognised in profit or loss for the current period. Capitalisation of
borrowing costs is suspended during periods in which the acquisition or construction of an
asset is interrupted abnormally and the interruption lasts for more than 3 months, until the
acquisition or construction is resumed.
The capitalised amount of specific borrowings intended to be used for the acquisition and
construction of qualifying assets is determined by the interest expenses incurred in the
current period less interest income of the unused borrowings deposited at banks or
investment income from temporary investments.
The capitalised amount of general borrowings intended to be used for the acquisition or
construction of qualifying assets is determined by the weighted average of the excess of
accumulated capital expenditure over capital expenditure of the special borrowings
multiplied by the weighted average effective interest rate of the utilised general
borrowings. The effective interest rate is the rate at which the future cash flows of the
borrowings over the expected lifetime or a shorter applicable period are discounted into
the initial recognised amount of the borrowings.
(14) Intangible assets
Intangible assets include land use rights, software use fees, non-patent technologies and
after-sales service management mode, are measured at cost.
(a) Land use rights
Land use rights are amortised on the straight-line basis over their approved use period of
cannot be reasonably allocated between the land use rights and the buildings, all of the
acquisition costs are recognised as fixed assets.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(14) Intangible assets (Cont’d)
(b) Software use fees
Software use fees are amortised on a straight-line basis over the estimated useful life of 5
years.
(c) Non-patent technologies
Non-patent technologies are amortised on the straight-line basis over the estimated useful
life of 5 to 7 years.
(d) Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life, review of its useful life and amortisation
method is performed at each year-end, with adjustment made appropriately.
(e) Research and development
The expenditure on research and development of the Group mainly include materials
consumed for research and development activities, employee benefits of research and
development departments, depreciation and amortisation of assets such as equipment
and software used for research and development, research and development design fees
and research and development testing expenses.
Expenditure on the research phase related to planned survey, evaluation and selection for
research on manufacturing technique of automobile products is recognised in profit or loss
in the period in which it is incurred. Prior to mass production, expenditure on the
development phase related to the design and testing phase in regard to the final
application of manufacturing technique of automobile products is capitalised only if all of
the following conditions are satisfied:
? the development of manufacturing technique of automobile products has been fully
demonstrated by technical team;
? management intends to complete the development of manufacturing technique of
automobile products, and use or sell it;
? the research and analysis of preliminary market survey indicate that products
manufactured with manufacturing technique of automobile products are marketable;
? adequate technical and financial supports are available for development of
manufacturing techniques of automobile products and subsequent mass production;
and
? expenditure on development of manufacturing techniques of automobile products can
be reliably collected.
Other expenditures on the development phase that do not meet the conditions above are
recognised in profit or loss in the period in which they are incurred. Development
expenditures previously recognised as expenses are not recognised as an asset in a
subsequent period. Capitalised expenditure on the development phase is presented as
development expenditures in the balance sheet and transferred to intangible assets at the
date that the asset is ready for its intended use.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(14) Intangible assets (Cont’d)
(f) Impairment of intangible assets
The carrying amounts of intangible assets are reduced to the recoverable amounts when
the recoverable amounts are below their carrying amounts (Note 2(15)).
(15) Impairment of long-term assets
Fixed assets, construction in progress, right-of-use assets, intangible assets with finite
useful lives and long-term equity investments in subsidiaries and associates are tested for
impairment if there is any indication that the assets may be impaired at the balance sheet
date; intangible assets that are not yet available for their intended use are tested for
impairment at least once a year, irrespective of whether there is any indication of
impairment. If the result of the impairment test indicates that the recoverable amount of an
asset is less than its carrying amount, a provision for impairment and an asset impairment
loss are recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less
disposal costs and the present value of the future cash flows expected to be derived from
the asset. Provision for asset impairment is determined and recognised on the individual
asset basis. If it is not possible to estimate the recoverable amount of an individual asset,
the recoverable amount of a group of assets to which the asset belongs is determined. A
group of assets is the smallest group of assets that is able to generate independent cash
inflows.
Goodwill that is separately presented in the financial statements is tested at least once a
year for impairment, irrespective of whether there is any indication that it may be impaired.
In conducting the test, the carrying amount of goodwill is allocated to the related asset
group or groups of asset groups which are expected to benefit from the synergies of the
business combination. If the result of the test indicates that the recoverable amount of an
asset group or a group of asset groups, including the allocated goodwill, is lower than its
carrying amount, the corresponding impairment loss is recognised. The impairment loss is
first deducted from the carrying amount of goodwill that is allocated to the asset group or
group of asset groups, and then deducted from the carrying amounts of other assets within
the asset group or group of asset groups in proportion to the carrying amounts of assets
other than goodwill.
Once the above asset impairment loss is recognised, it will not be reversed for the value
recovered in the subsequent periods.
(16) Employee benefits
Employee benefits refer to all forms of consideration or compensation given by the Group in
exchange for service rendered by employees or for termination of employment relationship,
which include short-term employee benefits, post-employment benefits, termination
benefits, etc.
(a) Short-term employee benefits
Short-term employee benefits include wages or salaries, bonus, allowances and subsidies,
staff welfare, premiums or contributions on medical insurance, work injury insurance,
housing funds, union running costs and employee education costs, short-term paid
absences, etc. The short-term employee benefits actually occurred are recognised as a
liability in the accounting period in which the service is rendered by the employees, with a
corresponding charge to the profit or loss for the current period or the cost of relevant
assets. Non-monetary benefits are measured at fair value.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(16) Employee benefits (Cont'd)
(b) Post-employment benefits
The Group classifies post-employment benefit plans as either defined contribution plans or
defined benefit plans. Defined contribution plans are post-employment benefit plans under
which the Group pays fixed contributions into a separate fund and will have no obligation
to pay further contributions; and defined benefit plans are post-employment benefit plans
other than defined contribution plans. During the reporting period, premiums or
contributions on basic pensions and unemployment insurance paid for employees belong
to defined contribution plans; supplementary 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.
(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.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(16) Employee benefits (Cont'd)
(c) Termination benefits (Cont’d)
Early retirement benefits
The Group offers early retirement benefits to those employees who accept early
retirement arrangements. The early retirement benefits refer to the salaries and social
security contributions to be paid to and for the employees who accept voluntary retirement
before the normal retirement date prescribed by the State, as approved by the
management. The Group pays early retirement benefits to those early retired employees
from the early retirement date until the normal retirement date. The Group accounts for the
early retirement benefits in accordance with the treatment for termination benefits, in
which the salaries and social security contributions to be paid to and for the early retired
employees from the off-duty date to the normal retirement date are recognised as
liabilities with a corresponding charge to the profit or loss for the current period. The
differences arising from the changes in the respective actuarial assumptions of the early
retirement benefits and the adjustments of benefit standards are recognised in profit or
loss in the period in which they occur.
The termination benefits expected to be settled within one year since the balance sheet
date are classified as employee benefits payable.
(17) Dividend distribution
Cash dividends are recognised as liabilities in the period in which the dividends are
approved at the shareholders’ meeting.
(18) 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 current liabilities.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(19) 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 2(18)).
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.
(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 and contract assets are recognised on the basis of ECL (Note 2(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.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(20) Government grants
Government grants refer to the monetary or non-monetary assets obtained by the Group
from the government at no consideration, including support funds for enterprise
development, financial subsidies, etc.
Government grants are recognised when the grants can be received, and the Group can
comply with all attached conditions. If a government grant is a monetary asset, it will be
measured at the amount received or receivable. If a government grant is a non-monetary
asset, it will be measured at its fair value. If it is unable to obtain its fair value reliably, it will
be measured at its nominal amount.
Government grants related to assets refer to government grants which are obtained by the
Group for the purposes of purchase, construction or acquisition of the long-term assets.
Government grants related to income refer to the government grants other than those
related to assets.
Government grants related to assets are recorded as deferred income and recognised in
profit or loss on a reasonable and systemic basis over the useful lives of the assets.
Government grants related to income that compensate future costs, expenses or losses
are recorded as deferred income and recognised in profit or loss in reporting the related
expenses; government grants related to income that compensate incurred costs, expenses
or losses are recognised in profit or loss directly in the current period.
The Group applies the presentation method consistently to the similar government grants
in the financial statements.
Government grants that are related to ordinary activities are included in operating profit,
otherwise, they are recorded in non-operating income.
The Group recorded at the actual amount of borrowings when received the loans at policy-
based preferential interest rates received and the related borrowing costs are calculated on
the basis of the principal amount borrowed and the preferential interest rate under the
policy.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(21) Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on
the differences arising between the tax bases of assets and liabilities and their carrying
amounts (temporary differences). Deferred tax asset is recognised for the deductible
losses that can be carried forward to subsequent years for deduction of the taxable profit
in accordance with the tax laws. No deferred tax liability is recognised for a temporary
difference arising from the initial recognition of goodwill. No deferred tax asset or deferred
tax liability is recognised for a temporary difference arising from the initial recognition of
assets or liabilities due to a transaction other than a business combination where the initial
recognition of assets or liabilities does not result in equal taxable temporary differences
and deductible temporary differences, which affects neither accounting profit nor taxable
profit (or deductible loss). At the balance sheet date, deferred tax assets and deferred tax
liabilities are measured at the tax rates that are expected to apply to the period when the
asset is realised or the liability is settled.
Deferred tax assets are only recognised for deductible temporary differences, deductible
losses and tax credits to the extent that it is probable that taxable profit will be available in
the future against which the deductible temporary differences, deductible losses and tax
credits can be utilised.
Deferred tax liabilities are recognised for taxable temporary differences arising from
investments in subsidiaries and associates, except where the Group is able to control the
timing of reversal of such temporary differences, and it is probable that the temporary
differences will not reverse in the foreseeable future. When it is probable that the
deductible temporary differences arising from investments in subsidiaries and associates
will be reversed in the foreseeable future and that the taxable profit will be available in the
future against which the deductible temporary differences can be utilised, the
corresponding deferred tax assets are recognised.
Deferred tax assets and deferred tax liabilities are offset when:
? the deferred tax assets and deferred tax liabilities are related to the same taxpayer
within the Group and the same taxation authority; and
? that taxpayer within the Group has a legally enforceable right to offset current tax
assets against current tax liabilities.
(22) Leases
A contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(22) Leases (Cont’d)
The Group as the lessee
At the commencement date, the Group shall recognise the right-of-use asset and
measure the lease liabilities at the present value of the lease payments that are not paid
at that date. Lease payments include fixed payments, the exercise price of a purchase
option if the lessee is reasonably certain to exercise that option, and payments of
penalties for terminating the lease if the lessee exercises an option to terminate the lease.
Variable lease payments in proportion to sales are excluded from lease payments and
recognised in profit or loss as incurred. Lease liabilities that are due within one year
(inclusive) as from the balance sheet date are included in the current portion of non-
current liabilities.
The Group's right-of-use assets represent leased buildings. Right-of-use assets are
measured initially at cost which comprises the amount of the initial measurement of lease
liabilities, any lease payments made at or before the commencement date and any initially
direct costs, less any lease incentives received. If it is reasonably probable that the Group
will obtain ownership of the underlying asset by the end of the lease term, the asset is
depreciated over its remaining useful life; otherwise, the asset is depreciated over the
shorter of the lease term and its remaining useful life. The carrying amounts of the right-
of- use assets are reduced to the recoverable amounts when the recoverable amounts are
below their carrying amounts (Note 2(15)).
For short-term leases with a term of 12 months or less and leases of an individual asset
(when new) of low value, the Group may, instead of recognising right-of-use assets and
lease liabilities, recognise the lease payments in the cost of the underlying assets or in
profit or loss for the current period on a straight-line basis over the lease term.
The Group shall account for a lease modification as a separate lease if both: (1) the
modification extends the scope of the lease by adding the right to use one or more
underlying assets; (2) the increased consideration is equivalent to the amount of the
individual price of the expanded part of the lease scope adjusted according to the contract
conditions.
For a lease modification that is not accounted for as a separate lease, the Group shall
redetermine the lease term at the effective date of the lease modification and remeasure
the lease liability by discounting the revised lease payments using a revised discount rate,
except for the contract changes that may apply the simplified method as specified by the
Ministry of Finance. For a lease modification which narrows the scope of the lease or
shortens the lease term, the Group decreases the carrying amount of the right-of-use
asset and recognises in profit or loss any gain or loss relating to the partial or full
termination of the lease. For other changes which lead to the remeasurement of lease
liabilities, the Group correspondingly adjusts the carrying amount of the right-of-use asset.
For the qualified rental waivers on existing lease contracts, the Group applies the
simplified method, records the undiscounted waivers in profit or loss and adjusts lease
liability when the agreement is reached to dismiss the original payment obligation.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(22) Leases (Cont'd)
The Group as the lessor
A lease is classified as a finance lease if it transfers substantially all the risks and rewards
incidental to ownership of an underlying asset. An operating lease is a lease other than a
finance lease.
(a) Operating lease
The Group leases out self-owned buildings and vehicles under operating leases, rental
income is recognised on a straight-line basis over the lease term.
(b) Finance lease
At the commencement date of the lease term, the Group recognizes finance lease
receivables and derecognizes the related assets for finance lease. The Group presents
finance lease receivables as long-term receivables and finance lease receivables
collected within one year (including one year) from the balance sheet date as non-current
assets due within one year.
(23) Specific reserve
According to the decision of the State Council on Further Strengthening the work of
production safety (Guo Fa [2004] No. 2), the Circular of the State Council on Further
Strengthening the Work of Enterprise Production Safety (Guo Fa [2010] No. 23 ) and the
Measures for the Administration of the Extraction and Use of Enterprise Production Safety
Expenses (Cai Zi [2022] No. 136) issued by the Ministry of Finance and the Ministry of
Emergency Response in December 2022, the Group extracted safety production costs at
a certain percentage of its operating revenue in the previous year, which is specifically
used for safety costs.
The Group's production safety expenses, which are extracted in accordance with the
aforementioned national regulations, are included in the cost of relevant products or
current profit or loss and are also included in special reserves.
When the safety fund is subsequently used for revenue expenditure, the specific reserve
is reduced accordingly. On utilisation of the safety fund for fixed assets, the specific
reserve is reduced as the fixed assets are recognised, which is the time when the related
assets are ready for their intended use; in such cases, an amount that corresponds to the
reduction in the specific reserve is recognised in accumulated depreciation with respect to
the related fixed assets. As a consequence, such fixed assets are not depreciated in
subsequent periods.
(24) Segment information
The Group identifies operating segments based on the internal organisation structure,
management requirements and internal reporting system, and discloses segment
information of reportable segments which is determined on the basis of operating
segments.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(24) Segment information (Cont’d)
An operating segment is a component of the Group that satisfies all of the following
conditions: (1) the component is able to earn revenues and incur expenses from its
ordinary activities; (2) whose operating results are regularly reviewed by the Group’s
management to make decisions about resources to be allocated to the segment and to
assess its performance, and (3) for which the information on financial position, operating
results and cash flows is available to the Group. Two or more operating segments that
have similar economic characteristics and satisfy certain conditions can be aggregated
into one single operating segment.
(25) Critical accounting estimates and judgements
The Group continually evaluates the critical accounting estimates and key judgements
applied based on historical experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances.
(a) Critical judgements in applying the accounting policies
(i) Classification of financial assets
Significant judgements made by the Group in the classification of financial assets include
business models and analysis on contractual cash flow characteristics.
The Group determines the business model for financial assets management on the group
basis, and factors to be considered include the methods for evaluating the financial assets
performance and reporting such performance to key management personnel, the risks
relating to the financial asset’s performance and corresponding management methods,
the ways in which related business management personnel are remunerated, etc.
When assessing whether contractual cash flow characteristics of financial assets are
consistent with basic lending arrangement, key judgements made by the Group include:
the possibility of changes in time schedule or amount of the principal during the lifetime
due to reasons such as repayment in advance; whether interest only includes time value
of money, credit risks, other basic lending risks and considerations for costs and profits.
For example, whether the repayment in advance only reflects the principal outstanding
and corresponding interest and reasonable compensation paid for early termination of the
contract.
(ii) Judgement on significant increase in credit risk and occurrence of credit impairment
When the Group distinguishes the different stages of financial instruments, its judgement
on significant increase in credit risk and occurrence of credit impairment is as follows:
Judgement made by the Group for significant increase in credit risk is mainly based on
whether the overdue days exceed 30 days, or whether one or more of the following
indicators change significantly: business environment of the debtor, internal and external
credit rating, significant changes in actual or expected operating results, significant
decrease in value of collateral or credit rate of guarantor, etc.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(25) Critical accounting estimates and judgements (Cont’d)
(a) Critical judgements in applying the accounting policies (Cont’d)
(ii) Judgement on significant increase in credit risk and occurrence of credit impairment
(Cont’d)
Judgement made by the Group for the occurrence of credit impairment is mainly based on
whether the overdue days exceed 90 days (i.e., a default has occurred), or whether one or
more of the following conditions is/are satisfied: the debtor is suffering significant financial
difficulties, the debtor is undergoing other debt restructuring, or the debtor probably goes
bankrupt, etc.
(iii) Judgement on capitalisation of development expenditures
Development expenditures are capitalised when the criteria in Note 2(14)(e) are fulfilled.
The assessments on whether the criteria for capitalisation of development expenditures
have been met involve judgements of the Group, including the technical feasibility of the
project, the likelihood of the project generating sufficient future economic benefits and the
timing to start capitalisation particularly. The Group makes the judgements on the
capitalisation of development expenditures and records the process in meeting minutes
based on feasibility analysis, regular review on the development project phase, etc.
(iv) Timing of revenue recognition
The Group sells automobiles and automobile parts to distributors or 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. Thereafter, the distributors or
end customers own the products, have the right to set prices independently, and bear the
risks from price fluctuation or damage of the products. The distributors or end customers
have obtained the control of the products after accepting the products. The Group
recognises the revenue at the timing of the delivery completion.
(v) Sales with product warranties
The Group provides statutory warranty for automobiles and automobile parts, and the
periods and terms of such warranty comply with the requirements of laws and regulations
related to the products. The Group does not provide any significant additional service or
additional warranty for this purpose; thus this kind of warranty cannot be identified as a
separate performance obligation. In addition, the Group also offers additional warranty other
than the requirements of laws and regulations, which is identified as a separate
performance obligation. The Group recognises the revenue of the additional warranty over
time during the period when services are rendered.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(25) Critical accounting estimates and judgements (Cont’d)
(b) Critical accounting estimates and key assumptions
The critical accounting estimates and key assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the
next fiscal year are outlined below:
(i) Measurement of ECL
The Group calculates ECL through default risk exposure and ECL rate and determines the
ECL rate based on default probability and default loss rate or aging matrix. In determining
the ECL rate, the Group uses data such as internal historical credit loss experience, etc.,
and adjusts historical data based on current conditions and forward-looking information.
When considering forward-looking information, the Group takes different macroeconomic
scenarios into consideration. In 2023, the weights of “base”, “bad” and “good” are 68%, 16%
and 16% (2022: 68%, 16% and 16%) under three economic scenarios respectively for the
consideration of forward-looking information. The Group regularly monitors, and reviews
important macroeconomic assumptions and parameters related to the calculation of ECL
rate, including the risks of economic downturn, external market environment, changes of
technological environment and customer, gross domestic product, consumer price index,
broad money supply and nominal interest rate. In 2023, the Group has considered the
uncertainty under different macroeconomic scenarios and updated relevant assumptions
and parameters accordingly. The key macroeconomic parameters used in each scenario
are listed as follows:
Scenarios
Base Bad Good
Broad money supply 8.58% 8.06% 9.11%
Consumer price index 5.08% 2.83% 7.34%
Nominal interest rate 0.11% 0.23% -0.01%
In 2022, the key macroeconomic parameters used in each scenario are listed below:
Scenarios
Base Bad Good
Gross domestic
product 4.56% 2.02% 7.11%
Consumer price index 3.45% -33.12% 40.02%
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(25) Critical accounting estimates and judgements (Cont’d)
(b) Critical accounting estimates and key assumptions (Cont’d)
(ii) Accounting estimate on provision for impairment of long-term assets
When the Group performs impairment tests for long-term assets if there is any indication
that the long-term assets may be impaired, if the result of the impairment test indicates that
the recoverable amount of an asset is less than its carrying amount, a provision for
impairment and an asset impairment loss are recognised for the amount by which the
asset’s carrying amount exceeds its recoverable amount. The recoverable amount of an
asset is the higher of the fair value less the cost of disposal and the present value of the
future cash flows expected to be derived from the asset. These calculations require the use
of estimates (Note 4(13), Note 4(14), Note 4(17) and Note 14(3)).
When the Group uses the present value of estimated future cash flows to determine the
recoverable amount, as there are uncertainties about the development of economic
environment in which the relevant region is situated, the revenue growth rate, the gross
profit margin rate and the pre-tax discount rate used in calculating the present value of
estimated future cash flows are also subject to uncertainties. If management revises the
growth rate, the gross margin rate and the pre-tax discount rate that is used in the
calculation of the future cash flows of related asset groups, and the revised rate is lower
than the current rate, the Group would need to recognise further impairment against related
assets. If the actual growth rate, the gross profit margin rate are higher than management’s
estimates or the actual pre-tax discount rate is lower than management’s estimates, the
impairment loss of related assets previously recognised is not allowed to be reversed by the
Group.
When the Group uses the fair value less disposal costs to determine the recoverable
amount, the recoverable amount is determined by the price of a sale agreement in an arm’s
length transaction, less the costs that are directly attributable to the disposal of the asset.
Where there is no sales agreement but there is an active market of assets, the amount is
determined by the market price less the costs that are directly attributable to the disposal of
the asset. The market price of assets is determined by the considerations provided by the
buyer. Where there is no sales agreement or active market of assets, the amount of an
asset’s fair value less disposal costs was determined based on the best information
available.
Disposal costs include legal cost, taxes and handling fee related to asset disposal, and
direct costs incurred to bring the assets to a saleable state.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(25) Critical accounting estimates and judgements (Cont’d)
(b) Critical accounting estimates and key assumptions (Cont’d)
(iii) Income tax and deferred income tax (Cont’d)
The Group is subject to enterprise income tax in multiple regions. There are some
transactions and events for which the ultimate tax treatment is uncertain during the
ordinary course of business. Significant judgement is required from the Group in
determining the provision for income taxes in each of these regions. Where the final tax
outcome of these matters is different from the amounts that were initially recorded, such
differences will impact the income tax and deferred tax provisions in the period in which
such determination is made.
As stated in Note 3(2), the Company is a high-tech enterprise. The “High-Tech Enterprise
Certificate” is effective for three years. Upon expiration, application for high-tech
enterprise assessment should be submitted again to the relevant government authorities.
Based on the past experience of reassessment for high-tech enterprise upon expiration
and its actual conditions, the Company considers that it is able to obtain the qualification
for high- tech enterprises in the next three years, and therefore a preferential tax rate of
obtain the qualification for high-tech enterprise upon expiration, then the Company is
subject to a statutory tax rate of 25% for the calculation of income tax, which further
influences the recognised deferred tax assets, deferred tax liabilities and income tax
expenses.
Deferred tax assets are recognised for the deductible tax losses that can be carried
forward to subsequent years to the extent that it is probable that taxable profit will be
available in the future against which the deductible tax losses can be utilised. Taxable
profit that will be available in the future includes the taxable profit that will be realised
through ordinary course of business and the taxable profit that will be increased upon the
future reversal of taxable temporary differences incurred in prior periods. Judgements and
estimates are required to determine the time and amounts of taxable profit in the future.
Any difference between the reality and the estimate may result in adjustment to the
carrying amount of deferred tax assets.
(iv) Provisions
The Group undertakes after-sales repair or replacement obligations for automobiles sold
based on the after-sales service agreement. Management estimates related provisions
based on historical after-sales service data, including the repair and replacement provided
as well as current trends.
Factors that may impact the estimation of warranty costs include improvement of the
Group’s productivity and production quality, as well as changes in related parts and labour
costs. Any increase or decrease in provisions will have impact on profit or loss of the
Group in the future.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(25) Critical accounting estimates and judgements (Cont’d)
(b) Critical accounting estimates and key assumptions (Cont’d)
(v) Provision for decline in the value of inventories
The Group's inventories are stated at the lower of cost and net realisable value. Net
realisable value of inventories is the amount of the estimated selling price in the ordinary
course of business, less the estimated costs to completion, estimated contract
performance costs, estimated costs necessary to make the sales and related taxes.
If the management revises the estimated selling price of the inventory, the estimated
costs to be incurred by the time of completion, and the estimated selling and distribution
expenses and related taxes, the revised estimated selling price is lower than the currently
adopted estimated selling price, or the revised until The estimated costs, estimated
contract performance costs, sales expenses, and related taxes and fees at the completion
of the project are higher than the currently adopted estimates, the Group needs to make
provision for decline in the value of inventory.
If the actual selling prices, costs to completion, estimated contract performance costs,
selling and distribution expenses and related taxes are higher or lower than
management’s estimates, the Group shall recognise the relevant differences in the
consolidated income statement during the corresponding accounting period.
(26) Significant changes in accounting policies
The Ministry of Finance released the Circular on Issuing Interpretation No. 16 of
Accounting Standards for Business Enterprises (Interpretation No. 16) in 2022. The Group
and the Company has adopted the new lease standard since 1 January 2019, and
recognised deferred income tax on a net basis related to temporary differences in lease
liabilities and right-of-use assets. The Group and the Company adopted the provision "On
the inapplicability of exemption at initial recognition to the accounting treatment of
deferred income tax related to assets and liabilities arising from individual transactions"
stipulated in Interpretation No. 16 from 1 January 2023, and deferred tax assets and
deferred tax liabilities were recognised by the Group and the Company respectively for
the equal deductible temporary differences and taxable temporary differences arising from
the above transactions, and are disclosed in the notes respectively. The related notes as
at 31 December 2022 are adjusted accordingly. The implementation of the above
provisions of Interpretation No. 16 has no impact on the Group’s and the Company’s profit
or loss for the current period of 2022 and financial statement line items as at 1 January
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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
Enterprise income tax Taxable income
(a) 15% and 25%
Value-added tax Taxable value-added amount (Tax
(“VAT”) (b) payable is calculated using the taxable
sales amount multiplied by the
applicable tax rate less deductible
input VAT of the current period) 13%, 9% and 6%
Consumption tax (c) Taxable sales amount 3%, 5% and 9%
City maintenance and The payment amount of VAT and
construction tax (d) consumption tax 5% and 7%
(a) Pursuant to the Circular on Enterprise Income Tax Policy Concerning Deductions for
Equipment and Appliances (Cai Shui [2018] No. 54) and the Announcement on Extending the
Implementation Period of Certain Preferential Tax Policies (Cai Shui [2021] No. 6) issued by
the State Taxation Administration and relevant regulations, during the period from 1 January
than RMB5 million can be fully deducted against taxable profit in the next month after the
asset is put into use, instead of being depreciated annually for tax filing.
(b) Pursuant to the Announcement on Relevant Policies for Deepening Value-Added Tax Reform
(Announcement [2019] No. 39) and relevant regulations jointly issued by the Ministry of
Finance, the State Taxation Administration and the General Administration of Customs, the
Group’s taxable products sales revenue is subject to the VAT at the rate of 13%. The Group's
real estate leasing business is subject to the VAT at the rate of 9% and revenue from
provision of technical service to external parties is subject to VAT at the rate of 6%.
(c) Pursuant to the Interim Regulations of the People's Republic of China on Consumption Tax
promulgated by the State Council (Order No. 539 of the State Council of the People's
Republic of China) and the Notice of Ministry of Finance and State Taxation Administration on
Adjusting Consumption Tax Policies for Passenger Cars (Cai Shui [2008] No. 105), the
consumption tax rates of the Group's taxable products are 3%, 5% and 9%.
(d) Pursuant to the Circular of the State Council on Unifying the Collection of City Maintenance
and Construction Tax and Educational Surcharge on Domestic and Foreign-Owned
Enterprises and Individuals (Guo Fa [2010] No. 35) issued by the State Council, the Group is
subject to city maintenance and construction tax at the rates of 5% and 7%.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(2) Tax preference
(a) Pursuant to the Circular on the Announcement of the First Batch of High-Tech Enterprises of
Jiangxi Province for the year 2021 (Gan Gao Qi Ren Ban [2021] No. 8), the Company is
certified as a high-tech enterprise, and the valid term is three years. Under Article 28 of the
Enterprise Income Tax Law of the People's Republic of China, the income tax rate applicable
to the Company for the year of 2023 is 15% (2022: 15%).
In 2023, 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
(b) 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, is allowed to offset against the VAT payable by the 1.5 times
amount of input tax deductible in the current period from 1 January 2023 to 31 December
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(1) Cash at bank and on hand
Cash at bank 10,653,646,811 7,656,947,735
Cash at finance company (a) (Note
Other cash and cash equivalents (b) 20,854,424 -
Interest receivable 63,187,636 61,784,071
(a) As at 31 December 2023, the group's bank deposit with Jiangling Automobile Group
Finance Co, Ltd. was RMB1,092,871,804. The Group's bank deposits placed with
Jiangling Motor Group Finance Company Limited(“JMCF”) bear interest at the bank's
annual interest rate of 0.455% - 2.25% (31 December 2022: 1.725% - 2.25%) on RMB
deposits for the same period.
JMCF, a holding 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 RMB20,854,424 (December 31, 2022: Nil) were the
frozen funds of the Group's litigation.
(2) Financial assets held for trading
Structural deposits 200,604,877 -
(3) Derivative financial assets and derivative financial liabilities
Derivative financial assets -
Forward exchange contracts - 2,972,698
Derivative financial liabilities -
Forward exchange contracts 459,306 -
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(4) Notes receivable
Trade acceptance notes 14,638,901 743,071,151
Less: Provision for bad
debts (17,564) (318,421)
As at 31 December 2023, the Group didn’t have notes receivable from Jiangxi Jiangling
Import & Export Co., Ltd. (31 December 2022: RMB600,000,000) (Note 7(6)).
(a) As at 31 December 2023, there were no notes receivable pledged.
(b) Provision for bad debts
For notes receivable arising from sales of goods and rendering of services in the ordinary
course of operating activities, 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 notes receivable 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 grouping basis (i) 14,638,901 100% (17,564) 0.12%
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
grouping basis (i) 743,071,151 100% (318,421) 0.04%
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(4) Notes receivable (Cont’d)
(b) Provision for bad debts (Cont’d)
(i) Notes receivable for which the provision for bad debts is provided on the grouping basis are
analysed as follows:
Grouping - Trade acceptance notes:
As at 31 December 2023, the Group’s provision for bad debts for trade acceptance notes of
the grouping was measured based on the lifetime ECL, and the related amount was
RMB17,564 (31 December 2022: RMB318,421), of which RMB300,857 was reversed in
(ii) The amount of bad debt provision collected or reversed during the year was RMB300,857, of
which RMB600,000,000 of the notes receivable from Jiangxi Jiangling Motors Imp. & Exp.
Co., Ltd. on December 31, 2022 had been fully recovered during the year by the Group.
(iii) There was no provision for bad debts actually written off during the year.
(5) Accounts receivable
Accounts receivable 4,529,566,682 4,367,065,120
Less: Provision for bad debts (127,740,660) (121,523,368)
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Accounts receivable (Cont’d)
(a) The aging of accounts receivable was analysed as follows:
Within 1 year 4,354,838,862 4,183,936,645
Over 2 years 146,060,756 170,941,690
As at 31 December 2023, 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
Company 1 72,230,000 debts 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
Company 2 37,924,214 provision for 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
Company 3 26,719,887 grouping - sales of general automobiles.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Accounts receivable (Cont’d)
(b) As at 31 December 2023, 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 2,925,806,673 (77,947,678) 65%
(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) 110,154,214 2% (110,154,214) 100.00%
Provision for bad debts on the
grouping basis (ii) 4,419,412,468 98% (17,586,446) 0.40%
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 110,154,214 3% (110,154,214) 100.00%
Provision for bad debts on the
grouping basis (ii) 4,256,910,906 97% (11,369,154) 0.27%
(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 72,230,000 100% (72,230,000)
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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)
(i) Accounts receivable for which the provision for bad debts is provided on the individual
basis are analysed follows (Cont’d):
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
New energy subsidies
receivable 37,924,214 100% (37,924,214)
Receivables for
automobiles 72,230,000 100% (72,230,000)
As at 31 December 2023, The Group assessed the expected credit losses on the related
accounts receivable, the Group considered the receivables cannot be collected,
therefore, full provision was made for those receivables. The related amount was
RMB110,154,214(31 December 2022: RMB110,154,214), of which none (2022:
RMB35,617,634) was included in profit or loss for the current period.
(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 1,330,216,018 0.12% (1,651,582)
Overdue for 1 to 30
days 41,413,325 0.18% (74,476)
Overdue for 31 to 60
days 24,216,867 2.28% (553,239)
Overdue for 61 to 90
days 32,435,370 3.34% (1,083,923)
Overdue over 90 days 76,187,716 5.18% (3,948,751)
Grouping - Export sales of general automobiles:
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 2,647,787,903 0.20% (5,295,576)
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 - Sales of general automobiles (Cont’d):
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 3,342,241,063 0.04% (1,433,732)
Overdue for 1 to 30
days 191,926,407 0.04% (82,244)
Overdue for 31 to 60
days 60,431,806 1.07% (645,450)
Overdue for 61 to 90
days 28,747,850 2.07% (596,073)
Overdue over 90 days 132,725,554 3.14% (4,170,090)
Grouping - Sales of new energy automobiles:
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Overdue over 90 days 5,123,260 80.00% (4,098,608)
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Overdue over 90 days 8,803,260 31.06% (2,734,591)
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 242,349,099 0.30% (727,047)
Overdue for 1 to 30 days 16,195,486 0.30% (48,586)
Overdue for 31 to 60 days 728,660 0.50% (3,643)
Overdue for 61 to 90 days 839,164 0.60% (5,035)
Overdue over 90 days 1,919,600 5.00% (95,980)
Book balance Provision for bad debts
Lifetime ECL
Amount (%) Amount
Not overdue 467,350,948 0.30% (1,402,053)
Overdue for 1 to 30 days 16,889,558 0.30% (50,669)
Overdue for 31 to 60 days 1,741,552 0.50% (8,708)
Overdue for 61 to 90 days 1,297,746 0.60% (7,786)
Overdue over 90 days 4,755,162 5.00% (237,758)
(iii) The amount of provision for bad debts for the year was RMB6,217,292 and the Group
didn’t have provision for bad debts reversed or collected.
(d) There was no provision for bad debts actually written off during the year.
(e) As at 31 December 2023 and 31 December 2022, there were no accounts receivable
pledged.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(6) Financing receivables
Bank acceptance notes 123,170,062 376,662,817
The Group endorses the bank acceptance notes as required by daily fund management,
which also met the criteria for derecognition, and therefore classified those the bank
acceptance notes as financial assets at fair value through other comprehensive income.
In 2023, 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
RMB1,040,525,217 and RMB2,435,317,198(2022: RMB829,293,203 and
RMB2,439,408,138) respectively, and the related losses on discount of RMB9,867,768
(2022: RMB15,303,265) were included in investment income (Note 4(51)).
As at 31 December 2023 and 31 December 2022, 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 2023 and 31 December 2022, the Group had no pledged bank
acceptance notes receivable presented in financing receivables.
As at 31 December 2023, the Group's bank acceptance notes had been endorsed or
discounted but not yet matured were RMB1,277,970,531, which had been derecognised.
There was no significant write-offs of financing receivables for the Group in 2023 (2022:
Nil).
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 204,358,759 100% 277,743,526 100%
(b) As at 31 December 2023, 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 192,713,710 94%
(8) Other receivables
Receivables from refund of social
insurance 23,958,000 -
Advance payment of gas
expenses 12,769,141 12,919,400
Import working capital 7,000,000 10,000,000
Guarantees 6,974,616 6,978,985
Receivables from platform
utilization 4,757,270 4,510,173
Receivables from disposal of
assets 4,604,745 4,604,745
Receivables from disposal of
subsidiaries - 60,900,000
Others 15,659,060 11,484,677
Less: Provision for bad debts (402,984) (334,608)
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 67,035,160 47,163,619
Over 1 year 8,687,672 64,234,361
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 (i) 23,958,000 32% - -
Provision for bad debts on the
grouping basis (i) 51,764,832 68% (402,984) 0.78%
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
grouping basis (i) 111,397,980 100% (334,608) 0.30%
Stage 1
Provision Provision Provision
Book for bad Book for bad for bad
balance debts balance debts debts
Decrease in the
current year (59,633,148) — - — —
Increase in the
current year - — 23,958,000 — —
Provision for bad
debts accrued
during the year — (68,376) — - (68,376)
As at 31 December 2023 and 31 December 2022, the Group had no other receivables at
Stage 2 and Stage 3. The analysis of other receivables at Stage 1 was stated below:
(i) As at 31 December 2023, the Group’s other receivables with provision for bad debts were
analysed below:
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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):
Book balance ECL rates bad debts Reason
Provision on the individual basis:
Receivables from refund of social
insurance i) 23,958,000 - - ECL
Provision on the grouping basis:
Advance payment of gas expenses 12,769,141 0.78% (99,406) ECL
Import working capital 7,000,000 0.78% (54,494) ECL
Guarantees 6,974,616 0.78% (54,297) ECL
Receivables from platform utilization 4,757,270 0.78% (37,035) ECL
Receivables from disposal of assets 4,604,745 0.78% (35,847) ECL
Others 15,659,060 0.78% (121,905) ECL
i) The Group 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.
(i) As at 31 December 2022, 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 grouping basis:
Receivables from disposal of
subsidiaries 60,900,000 0.30% (182,700) ECL
Advance payment of gas expenses 12,919,400 0.30% (39,072) ECL
Import working capital 10,000,000 0.30% (30,000) ECL
Guarantees 6,978,985 0.30% (21,037) ECL
Receivables from disposal of assets 4,604,745 0.30% (13,814) ECL
Receivables from platform utilization 4,510,173 0.30% (13,531) ECL
Others 11,484,677 0.30% (34,454) ECL
(c) The provision for bad debts in the current year amounted to RMB68,376, of which none
was collected or reversed.
(d) There was no provision for bad debts actually written off during the year.
(e) As at 31 December 2023, the top five other receivables by the balances of the debtors are
listed as follows:
% of
total Provision for
Nature Balance Aging balance bad debts
Receivables from
refund of social within 1
Company 1 insurance 23,958,000 year 32% -
Advance payment within 1
Company 2 of gas expenses 12,769,141 year 17% (99,406)
Import working within 1
Company 3 capital, etc. 8,636,151 year 11% (67,362)
Receivables from within 1
Company 4 platform utilization 4,757,270 year 6% (37,035)
Receivables from
disposal of assets, Over 1
Company 5 etc 4,614,745 year 6% (35,995)
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 802,679,074 (130,036,719) 672,642,355 1,077,387,177 (70,415,497) 1,006,971,680
Finished goods 497,244,891 - 497,244,891 695,697,324 - 695,697,324
Work in progress 194,945,039 (816,091) 194,128,948 254,199,491 (857,711) 253,341,780
Low value consumables 83,217,698 (2,830,181) 80,387,517 93,411,573 (537,572) 92,874,001
Materials in transit 71,613,700 - 71,613,700 42,989,505 - 42,989,505
Materials consigned for processing 44,242,100 - 44,242,100 37,166,530 - 37,166,530
(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 (70,415,497) (75,808,171) 5,088,170 11,098,779 (130,036,719)
Low value consumables (537,572) (2,830,181) - 537,572 (2,830,181)
Work in progress (857,711) (27,868) 113 69,375 (816,091)
(71,810,780) (78,666,220) 5,088,283 11,705,726 (133,682,991)
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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:
Reason for current year
reversal or write-off of provision
Specific basis for determining net for decline in the value of
realisable value inventories
Raw materials/Work Based on the estimated selling Increase in the net realisable
in progress/Low price, less the estimated costs to value of the provision for
value completion, estimated contract decline in the value of
consumables performance costs and selling and inventories had been made in
distribution expenses and related prior years or sales realised
taxes
(10) Other current assets
Taxes prepaid, input VAT to be
deducted and to be verified 951,659,556 1,362,502,624
(11) Current portion of non-current assets
Current portion of long-term
receivables (Note 4(12)) 15,749,806 13,851,634
(12) Long-term receivables
Long-term receivables 41,919,493 48,695,467
Less: Unearned financing income (3,268,233) (3,549,703)
Provision for bad debts (125,758) (146,086)
Current portion of long-term
receivables (Note 4(11)) (15,749,806) (13,851,634)
As at 31 December 2023, the Group's long-term receivables were generated by instalment
collections from disposal of fixed assets, which will be recovered from 2024 to 2026.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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”) 202,327,605 211,055,689
- Hanon Systems (Nanchang) Co., Ltd. (“Hanon Systems”) 31,470,743 37,427,133
Less: Provision for impairment of long-term equity investments - -
Associates
Movements for the current year Impairment provision
Share of net
December Decrease in under equity dividends for December Shareholding Voting December December
The Power
Company 211,055,689 - (8,728,084) - - 202,327,605 40% 40%
Hanon
Systems 37,427,133 - (863,034) (5,093,356) - 31,470,743 19.15% 33.33% - -
Total 248,482,822 - (9,591,118) (5,093,356) - 233,798,348 - -
Related information of equity in associates is set forth in Note 5(2).
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(14) Fixed assets
Fixed assets (a) 5,389,534,479 5,446,006,505
Fixed assets pending for disposal (b) 110,673 377,864
(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 14,364,168 127,141,236 53,344,909 696,236,531 242,395,606 1,133,482,450
Decrease in the
current year
Disposal or
retirement (1,619,408) (18,506,958) (15,160,248) (29,492,865) (32,750,576) (97,530,055)
Others - (35,415,779) (608,803) - (37,446,032) (73,470,614)
Accumulated
depreciation
Increase in the
current year
Provision (56,710,274) (214,245,173) (51,081,935) (241,418,334) (352,557,355) (916,013,071)
Decrease in the
current year
Disposal or
retirement 1,042,668 15,593,265 7,060,032 26,232,661 30,260,408 80,189,034
Others - 26,378,157 584,451 - 34,852,140 61,814,748
Provision for
impairment
Increase in the
current year
Provision (172,020,613) (22,775,844) (4,029,155) (16,292,533) (37,075,497) (252,193,642)
Decrease in the
current year
Disposal or
retirement - 6,934,687 47,710 47,737 218,990 7,249,124
Carrying amount
In 2023, depreciation charged to fixed assets amounted to RMB916,013,071 (2022:
RMB906,176,838), 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 RMB757,170,123, RMB6,127,943, RMB91,423,304 and RMB61,291,701 (2022:
RMB744,253,418, RMB2,284,506, RMB94,102,502 and RMB65,536,412), respectively.
The costs of fixed assets transferred from construction in progress amounted to RMB1,133,482,450
(2022: RMB655,886,896).
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(14) Fixed assets(Cont’d)
(a) Fixed assets (Cont’d)
In 2023, as the governmental approvals required for the Group's equity transfer transaction of
JMCH were not completed within the agreed timeframe, the equity transaction was terminated
and the recoverable amount of the related assets was no longer estimated on the basis of the
price agreed by the parties to the equity transfer transaction. Since the JMCH asset group was
idled and there was no clear plan for its subsequent operation, there was an indication of
impairment of the related assets. The Group performed an impairment test on the JMCH asset
group, and determined the recoverable amount of the relevant asset group to be
RMB179,306,352 by using the net of the fair value less disposal costs, thus a provision for
impairment of RMB244,115,449 was made for the difference between the recoverable amount
and the carrying amount as of December 31, 2023.
(i) Temporarily idle fixed assets
As at 31 December 2023, the fixed assets with a carrying amount of approximately
RMB179,453,179 (a cost of RMB1,324,043,538) (31 December 2022: a carrying amount of
approximately RMB507,898,988 and a cost of RMB1,521,049,605) 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 (106,134,440) (172,020,613) 131,007,369
Machinery and
equipment 149,106,343 (109,381,121) (22,855,494) 16,869,728
Vehicles 54,951,470 (45,339,755) (6,499,884) 3,111,831
Moulds 418,979,062 (106,314,993) (312,571,501) 92,568
Electronic and other
equipment 291,844,241 (216,096,569) (47,375,989) 28,371,683
(ii) Fixed assets with pending certificates of ownership:
Reason for not obtaining
Carrying amount certificates of ownership
Buildings 3,147,676 Pending procedures
(b) Fixed assets pending for disposal
Electronic and other equipment 85,891 216,104
Machinery and equipment 24,782 161,363
Vehicles - 397
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(15) Construction in progress
Provision Provision
for Carrying Book for Carrying
Book balance impairment amount balance impairment amount
Projects for
passenger vehicles 192,375,226 (4,460,314) 187,914,912 87,126,228 - 87,126,228
Projects for
commercial
vehicles 176,425,357 (1,284,000) 175,141,357 537,796,267 - 537,796,267
Projects for
automobile parts
factory 28,037,073 - 28,037,073 5,424,980 - 5,424,980
Projects for
automobiles
factory 17,752,703 - 17,752,703 42,929,882 - 42,929,882
Others 56,277,013 (691,646) 55,585,367 46,026,479 (691,646) 45,334,833
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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
Transfer to Accumulative Including:
Increase in Transfer to fixed intangible assets % of project capitalised Borrowing costs
Budget (In 31 December the current assets in the in the current 31 December investment in Progress of borrowing capitalised in the
Project name RMB0’000) 2022 year current year year 2023 budget project costs current year Source of fund
Projects for commercial
vehicles 285,769 537,796,267 540,210,979 (901,581,889) - 176,425,357 71% 71% - - Self-owned funds
Projects for passenger
vehicles 114,301 87,126,228 178,852,310 (73,253,754) (349,558) 192,375,226 60% 60% - - Self-owned funds
Projects for automobiles
factory 322,444 42,929,882 49,605,840 (73,966,981) (816,038) 17,752,703 75% 75% - - Self-owned funds
Projects for automobile
parts factory 23,860 5,424,980 37,066,851 (14,454,758) - 28,037,073 53% 53% - - Self-owned funds
Self-owned funds
Others 46,026,479 138,717,917 (70,225,068) (58,242,315) 56,277,013 292,897 - and borrowings
The Group's light passenger regeneration project, light truck regeneration project and pick-up truck regeneration project of Project for commercial vehicles reached
its intended design requirements and was available for its intended use after installation, commissioning and acceptance in 2023 and was transferred to fixed
assets accordingly.
(b) Provision for impairment of construction in progress
Increase in the Decrease in the
The recoverable amount is lower than the
Projects for passenger vehicles - (4,460,314) - (4,460,314) carrying amount
Projects for commercial The recoverable amount is lower than the
vehicles - (1,284,000) - (1,284,000) carrying amount
Other miscellaneous and The recoverable amount is lower than the
pending installation projects (691,646) - - (691,646) carrying amount
(691,646) (5,744,314) - (6,435,960)
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 43,438,812
Decrease in the current year
Expiration of lease contract (22,679,790)
Accumulated depreciation
Increase in the current year
Provision (82,225,674)
Decrease in the current year
Expiration of lease contract 22,679,790
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 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(17) Intangible assets
After-sales
services
Land use Software use Non-patent management
rights fees technologies mode Others Total
Cost
Increase in the
current year
Transfers from
construction in
progress - 59,407,911 - - - 59,407,911
Internal research
and development - - 753,676,631 - - 753,676,631
Accumulated
amortisation
Increase in the
current year
Provision (13,273,110) (44,204,334) (245,982,064) - - (303,459,508)
Provision for
impairment
Increase in the
current year
Provision - - (13,609,665) - - (13,609,665)
Carrying amount
As at 31 December 2023, the intangible assets developed by the Group accounted for 56%
(31 December 2022: 36%) of the carrying amount of intangible assets.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 2023 and 2022 is
presented by nature as follows:
Employee benefits 724,160,168 594,665,238
Design fee 513,146,559 535,652,184
Consumed materials 263,541,026 226,896,289
Depreciation and amortisation 67,981,814 220,663,278
Others 277,552,954 440,623,543
Wherein expenditure on research
and development on the research
phase (Note 4(45)) 1,286,201,612 1,483,329,630
(a) The changes in the Group's development expenditures eligible for capitalisation in 2023 is
analysed as follows:
Projects for
passenger
vehicles(i) - 283,738,155 - 283,738,155
Projects for
commercial
vehicles(ii) 477,233,877 276,442,754 (753,676,631) -
(i) The capitalisation of Project for passenger vehicles started when the relevant products are
ready and the relevant research data is frozen, and it has passed the internal technical
review meeting of the Group. Upon completion of the development of the project, it is
expected to be used for mass production of product SUV that is competitive in the market.
The project progress of the main product as of December 31, 2023 is 71%, and the
completion point of the Project is expected to be the first half year of 2024.
(ii) The capitalisation of Project for commercial vehicles started when the relevant products
are ready and the relevant research data is frozen, and it has passed the internal technical
review meeting of the Group. The development of the project had completed in 2023, and
it is expected to be used for mass production of product light duty passenger car and
pickup truck that is competitive in the market.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(18) Expenditure on research and development (Cont’d)
In 2023, there was no impairment of the Group's projects under development expenditures
(2022: Nil).
(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 5,860,011,327 1,364,811,520 4,978,763,776 1,120,987,322
Recoverable losses 2,443,729,567 389,836,053 3,634,617,217 571,696,850
Provision for asset
impairment 1,192,154,407 183,615,437 1,092,015,809 168,415,220
Non-patent technology 304,526,218 63,692,824 208,440,047 50,268,260
Lease liability 218,076,092 34,258,049 265,315,036 59,319,046
Employee education
funds unpaid 81,356,938 12,728,702 88,505,949 13,780,833
Deferred income 67,601,361 10,140,204 60,849,643 9,127,446
Retirement benefits
plan 10,515,000 2,172,350 55,374,000 13,438,000
Others 186,761,227 28,046,234 142,951,647 22,139,372
Including:
Expected to be
recovered within 1
year (inclusive) 1,615,927,125 1,409,297,322
Expected to be
recovered after 1
year 473,374,248 619,875,027
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(19) Deferred tax assets and deferred tax liabilities (Cont’d)
(b) Deferred tax liabilities before offsetting
Taxable Taxable
temporary Deferred tax temporary Deferred tax
differences liabilities differences liabilities
Depreciation of fixed assets 2,912,652,979 556,699,442 2,823,844,034 652,665,271
Right-of-use assets 194,836,028 30,336,433 233,622,890 51,945,980
Equity transactions between
parent and subsidiary 125,800,000 18,870,000 408,000,000 61,200,000
Differences between the fair
value of the identifiable net
assets and carrying amount
arising from business
combinations involving
enterprises not under
common control 77,027,559 19,256,890 93,221,436 23,305,359
Amortisation of intangible
assets 73,907,060 11,171,829 56,434,371 12,193,000
Others 1,064,183 220,115 2,972,698 445,905
Including:
Expected to be recovered
within 1 year (inclusive) 111,712,132 155,108,225
Expected to be recovered after
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 2,020,124,206 1,380,025,289
Deductible losses 276,440,468 202,505,688
(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 (617,297,819) 1,472,003,554 (778,450,156) 1,250,722,193
Deferred tax liabilities (617,297,819) 19,256,890 (778,450,156) 23,305,359
(20) Other non-current assets
Prepayment for molds 10,807,967 -
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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
Provision for bad debts of accounts receivable
(Note 4(5)) 121,523,368 6,217,292 - - 127,740,660
Including: Provision for bad debts on the
individual basis 110,154,214 - - - 110,154,214
Provision for bad debts on the
grouping basis 11,369,154 6,217,292 - - 17,586,446
Provision for bad debts of other receivables
(Note 4(8)) 334,608 68,376 - - 402,984
Provision for bad debts of long-term receivables
(Note 4(12)) 146,086 - (20,328) - 125,758
Sub-total 122,322,483 6,285,668 (321,185) - 128,286,966
Provision for decline in the value of inventories
(Note 4(9)) 71,810,780 78,666,220 (5,088,283) (11,705,726) 133,682,991
Provision for impairment of fixed assets (Note
Provision for impairment of construction in
progress (Note 4(15)) 691,646 5,744,314 - - 6,435,960
Provision for impairment of goodwill (i) 89,028,412 - - - 89,028,412
Provision for impairment of intangible assets
(Note 4(17)) 38,806,961 13,609,665 - - 52,416,626
Sub-total 554,169,593 350,213,841 (5,088,283) (18,954,850) 880,340,301
(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 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(22) Short-term borrowings
Credit loan 1,300,000,000 1,100,000,000
As at 31 December 2023, the Group had no overdue short-term borrowings and the
interest rates ranged from 1.73% to 2.40% (31 December 2022: 2.35% to 2.75%).
(23) Accounts payable
Payable for automobile parts 9,094,393,825 8,783,467,597
Payable for raw and auxiliary
materials 381,821,398 232,510,757
As at 31 December 2023, accounts payable with aging over one year amounted to
RMB408,228,798 (31 December 2022: RMB652,758,141), 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 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(24) Contract liabilities
Advances for maintenance and warranty
services, etc. 226,857,269 175,905,460
Advances for automobiles and
automobile parts 137,176,924 94,400,145
Less: Contract liabilities carried forward
to revenue after 1 year (Note 4(35)) (120,293,201) (118,240,580)
In 2023, contract liabilities amounting to RMB152,065,025 included in the carrying amount
as at 31 December 2022 were transferred to the revenue of 2023 (2022:
RMB272,274,177), including advances for automobiles and automobile parts amounting to
RMB94,400,145 (2022: RMB223,779,674), and advances for maintenance and warranty
services amounting to RMB57,664,880 (2022: RMB48,494,503).
(25) Employee benefits payable
Short-term employee benefits payable (a) 882,869,951 631,243,123
Defined contribution plans payable (b) 1,818,160 279,041,381
Defined benefit plans payable (c) 2,865,000 2,803,000
Termination benefits payable (d) 2,498,176 2,616,176
(a) Short-term employee benefits
Increase/Reverse
Wages and salaries,
bonus, allowances
and subsidies 454,910,923 2,101,027,809 (1,817,277,828) 738,660,904
Staff welfare 59,167,710 90,476,487 (92,711,534) 56,932,663
Social security
contributions 24,132,419 113,892,292 (137,872,026) 152,685
Including: Medical
insurance 17,300,118 114,138,861 (131,317,337) 121,642
Work injury
insurance 6,832,301 (246,569) (6,554,689) 31,043
Housing funds 467,942 194,917,987 (195,356,994) 28,935
Labour union funds
and employee
education funds 92,564,129 35,428,618 (40,897,983) 87,094,764
Other short-term
employee benefits - 6,694,457 (6,694,457) -
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(25) Employee benefits payable (Cont’d)
(b) Defined contribution plans
Decrease in
Basic pensions 260,527,342 114,351,678 (373,117,311) 1,761,709
Supplementary
pensions 10,400,000 (10,400,000) - -
Unemployment
insurance 8,114,039 3,553,829 (11,611,417) 56,451
(c) Defined benefit plans
Increase in Decrease in
Post-retirement
benefits payable
(Note 4(34)) 2,803,000 2,454,630 (2,392,630) 2,865,000
(d) Termination benefits payable
Early retirement benefits payable
(Note 4(34)) 1,160,000 1,278,000
Other termination benefits (i) 1,338,176 1,338,176
(i) In 2023, other termination benefits paid by the Group for termination of the employment
relationship were RMB14,126,035 (2022: RMB2,893,734).
(26) Taxes payable
Consumption tax payable 73,794,904 87,601,901
Enterprise income tax payable 18,702,207 55,230,198
Land use tax payable 4,831,953 4,831,953
Unpaid VAT 637,391 24,542,717
Others 20,433,310 21,042,835
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(27) Other payables
Promotion expenses 2,978,276,681 2,566,403,266
Research and development project
expenses 968,699,606 1,139,399,835
Construction payment 539,487,510 534,127,177
Transportation expenses 148,140,843 239,369,691
Advertising and new product
planning fees 166,568,934 160,966,200
Guarantees 124,132,883 111,554,518
Consulting fees 31,808,406 22,274,659
Technological transformation
project expenses 23,333,420 51,152,889
Trademark license fee 17,037,453 13,971,949
Ordinary share dividends payable 6,463,836 6,463,836
Others 941,026,521 827,024,491
As at 31 December 2023, other payables with aging over one year of RMB1,967,233,887
(31 December 2022: RMB1,696,105,568) mainly comprised guarantees collected from
distributors and repair stations, 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.
(28) Current portion of non-current liabilities
Current portion of lease liabilities
(Note 4(31)) 80,070,149 72,224,685
Current portion of long-term
borrowings (Note 4(30)) 13,313,749 456,071
(29) Other current liabilities
Provisions expected to be settled
within 1 year (Note 4(32)) 356,115,630 374,617,524
Others 17,833,000 12,272,018
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(30) Long-term borrowings
Guaranteed loans(a) 1,855,219 2,280,355
Credit loans(b) 12,849,944 19,033,773
Less: Current portion of long-term
borrowings (Note 4(28)) (13,313,749) (456,071)
(a) As at 31 December 2023, the above guaranteed loans were long-term borrowings
amounting to USD 261,937 guaranteed by JMCF (note7(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 27
October 2027.
Amount in Amount in
Starting Maturity Interest foreign RMB foreign RMB
date date Currency rate (%) currency equivalent currency equivalent
ICBC
Nanchang
Ganjiang 27 February 27 October
Sub - branch 1998 2027 USD 1.5% 261,937 1,855,219 327,421 2,280,355
(b) As at 31 December 2023, the principal amount of bank credit borrowings is repayable in
installments during 2024.
(c) As at 31 December 2023, the Group had no overdue long-term borrowings and the
Group’s interest rates ranged from 1.5% to 2.5% (31 December 2022: 1.5% to 2.5%).
(31) Lease liabilities
Lease liabilities (a) 218,076,092 265,315,036
Less: Current portion of non-
current liabilities (Note 4(28)) (80,070,149) (72,224,685)
(a) As at 31 December 2023, 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 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(32) Provisions
Increase in Decrease in
Product warranties (a) 610,033,067 330,658,844 (282,305,185) 658,386,726
Provisions for contract
fulfilment 15,347,046 - (1,917,879) 13,429,167
Less: Provisions expected to
be settled within 1
year (Note 4(29)) (374,617,524) (356,115,630)
(a) 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.
(33) Deferred income
Increase in Decrease in
Government grants 60,849,643 10,265,000 (3,513,282) 67,601,361
(a) Government grants
Decrease in the
current year
Government grants
related to assets 10,335,417 - (1,610,714) 8,724,703
Government grants
related to income 50,514,226 10,265,000 (1,902,568) 58,876,658
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(34) Long-term employee benefits payable
Supplementary retirement benefits
and early-retirement benefits
eligible for recognition of
provisions 56,916,000 55,374,000
Less: Payable within 1 year (4,025,000) (4,081,000)
The retirement and early-retirement benefits payable within one year are included in
employee benefits payable (Note 4(25)(c), Note 4(25)(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.
(a) Movements of retirement and early-retirement benefits of the Group are as follows:
Present value of the obligations of the defined
benefit plan
Opening balance 55,374,000 59,941,000
Cost of defined benefit plans
recognised in profit or loss for
the current period
- Current service cost 1,141,000 1,161,000
- Past service cost - -
- Actuarial gains or losses
recognised immediately (331,000) 82,000
- Net interest 1,610,000 1,744,000
Remeasurement of net liabilities for
defined benefit plans
- Actuarial (gains)/losses 2,593,000 (3,918,000)
Other movements
- Benefits paid (3,471,000) (3,636,000)
Ending balance 56,916,000 55,374,000
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(34) Long-term employee benefits payable (Cont’d)
(b) The major actuarial assumptions used to determine the present value of defined benefit
plan obligations of the Group
Discount rate 2.50% 3.00%
Inflation rate 2.00% 2.00%
Salaries and benefits growth rates 0%-6% 0%-6%
Future mortality assumptions were determined based on the China Life Insurance
Mortality Table (2010-2013), which is publicly available statistical information for the
Chinese region.
(c) The sensitivity analysis of the major actuarial assumptions used to determine the present
value of defined benefit plan obligations of the Group was analysed as follows:
Effect on present value of defined benefit
obligations
Variation in
assumptions Assumed increase Assumed decrease
Discount rate 0.5% Decrease of 5.8% Increase of 6.6%
Inflation rate 0.5% Increase of 3.8% Decrease of 3.3%
The above sensitivity analysis is based on a change in an assumption while holding all
other assumptions constant. In practice, changes in some of the assumptions may be
correlated. The projected unit credit method is also utilised in calculating the present value
of the defined benefit obligations in the analysis.
(d) Supplementary retirement and early-retirement benefits expose the Group to various risks,
mainly including risk of changes in the interest rate of treasury bonds and inflation risk.
Decline in the interest rate of treasury bonds will lead to an increase in defined benefit
plan liabilities. Supplementary retirement and early-retirement benefits obligations keep
pace with inflation, and the rise in inflation will increase the defined benefit plan liabilities.
(35) Other non-current liabilities
Contract liabilities carried forward to
revenue after 1 year (Note 4(24)) 120,293,201 118,240,580
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(36) 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 2023, 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 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(36) 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 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(37) 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 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(38) Other comprehensive income
Other comprehensive income in the balance Other comprehensive income in the income statement for the year
sheet ended 31 December 2023
Less: Transfer-
Amount out of previous
Attributable to incurred other Attributable to
the parent before income comprehensive the parent Attributable to
Other comprehensive income that will
not be reclassified to profit or loss
Actuarial gains on defined benefit
plans (13,484,250) (7,087,750) (20,572,000) (2,593,000) - (4,494,750) (7,087,750) -
Other comprehensive income in the balance Other comprehensive income in the income statement for the year
sheet ended 31 December 2022
Less: Transfer-
Amount out of previous
Attributable to incurred other Attributable to
the parent before income comprehensive the parent Attributable to
Other comprehensive income that will
not be reclassified to profit or loss
Actuarial gains on defined benefit
plans (16,422,750) 2,938,500 (13,484,250) 3,918,000 - (979,500) 2,938,500 -
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(39) 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
The Company reserves the discretionary surplus reserve after the shareholders’ meeting
approves the proposal from the Board of Directors. The discretionary surplus reserve can
be used to compensate for the losses incurred in prior years or increase the share capital
upon approval from appropriate authorities.
(40) Retained earnings
Retained earnings at the beginning
of the year 7,123,038,093 6,437,603,849
Add: Net profit attributable to shareholders of the
parent company for the current year 1,475,597,266 915,049,168
Less: Ordinary share dividends payable (a) (366,002,736) (229,614,924)
Retained earnings at the end of the
year 8,232,632,623 7,123,038,093
(a) According to the resolution of the Board of Directors on 16 June 2023, the Company
proposed to distribute cash dividends of RMB0.424 per share to all shareholders,
calculated on the basis of 863,214,000 issued shares, for a total of RMB366,002,736.
According to the resolution of the meeting of Board of Directors on 28 Mar 2024, the Board
of Directors proposed to distribute cash dividends of RMB0.684 per share to all
shareholders of the Company, calculated on the basis of 863,214,000 issued shares, for a
total of RMB590,438,376 (Note 10).
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(41) Revenue and cost of sales
Revenue from main operations 32,673,950,278 29,592,525,919
Revenue from other operations 493,374,803 507,757,923
Cost of sales from main operations 27,647,797,674 25,336,987,529
Cost of sales from other operations 417,730,549 475,277,339
(a) Revenue and cost of sales from main operations
Revenue from Cost of sales from Revenue from Cost of sales from
main operations main operations main operations main operations
Sales of
automobiles 30,379,757,733 25,855,510,801 27,069,207,538 23,355,537,374
Sales of
automobile
parts 1,719,943,033 1,230,323,685 2,412,993,540 1,872,040,360
Automobile
maintenance
services, etc. 574,249,512 561,963,188 110,324,841 109,409,795
(b) Revenue and cost of sales from other operations
Revenue from Cost of sales from Revenue from Cost of sales from
other operations other operations other operations other operations
Sales of
materials 330,754,338 296,981,256 366,469,354 339,411,405
Others 162,620,465 120,749,293 141,288,569 135,865,934
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(41) Revenue and cost of sales (Cont’d)
(c) The breakdown of the Group’s revenue by product and service transfer time was as follows:
Automobile
Automobile maintenance Materials
Automobiles parts services, etc. and others Total
Revenue from main operations 30,379,757,733 1,719,943,033 574,249,512 - 32,673,950,278
Including: Recognised at a
time point 30,379,757,733 1,719,943,033 - - 32,099,700,766
Recognised
within a certain
period - - 574,249,512 - 574,249,512
Revenue from other
operations (i) - - - 493,374,803 493,374,803
Automobile
Automobile maintenance Materials and
Automobiles parts services, etc. others Total
Revenue from main operations 27,069,207,538 2,412,993,540 110,324,841 - 29,592,525,919
Including: Recognised at a
time point 27,069,207,538 2,412,993,540 - - 29,482,201,078
Recognised
within a certain
period - - 110,324,841 - 110,324,841
Revenue from other
operations (i) - - - 507,757,923 507,757,923
(i) The Group's revenue from other operations includes sales of materials and technical service
provided. Revenue from sales of materials is recognised at a certain time point, and revenue
from technical service provided is recognised within a certain period.
As at 31 December 2023, the amount of revenue corresponding to the performance obligations
that the Group had contracted but had not commenced or completed was RMB364,034,193, of
which the Group expects that RMB137,176,924 and RMB106,564,068 will be recognised as
revenue from the sales of automobiles and parts and revenue from the sales of automobile
maintenance services respectively in 2024, RMB120,293,201 will be recognised as revenue
from automobile maintenance services from 2025 to 2029.
(42) Taxes and surcharges
Consumption tax 807,035,414 690,818,768
City maintenance and construction tax 54,093,798 99,989,565
Educational surcharge 53,936,767 98,742,654
Land use tax 20,610,246 22,286,670
Real estate tax 19,364,219 20,887,510
Stamp tax 18,749,571 18,217,884
Others 381,313 451,064
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(43) Selling and distribution expenses
Promotion expenses 521,049,350 413,790,869
Warranties 330,658,844 381,747,663
Employee benefits 230,660,091 214,370,379
Advertising and new product planning fees 168,368,816 187,517,174
Storage expenses 49,903,377 48,853,162
Packaging material expenses 33,681,580 31,608,268
Depreciation and amortisation expenses 12,751,571 3,558,412
Others 119,618,818 163,448,784
(44) General and administrative expenses
Employee benefits 565,612,010 544,315,552
Depreciation and amortisation expenses 147,236,553 143,207,652
Trademark license fee 69,249,223 68,813,097
Repair expenses 30,690,596 37,951,031
Consulting fees 24,038,091 26,261,406
General office expenses 11,811,212 17,095,983
Cartage fee 3,212,158 11,458,649
Others 131,608,188 115,682,975
(45) Research and development expenses
Employee benefits 574,111,697 430,170,063
Design fee 209,447,053 304,491,964
Materials expenses 242,947,545 197,330,293
Depreciation and amortisation expenses 67,981,814 220,663,278
Others 191,713,503 330,674,032
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(46) Financial expenses
Interest costs 31,751,482 36,417,358
Add: Interest costs on lease liabilities 10,093,308 12,887,851
Interest expenses 41,844,790 49,305,209
Less: Interest income from cash at bank (237,934,702) (220,037,622)
Other interest income (13,117,861) (16,271,337)
Interest income (251,052,563) (236,308,959)
Exchange gains or losses 2,882,286 22,205,504
Others 1,416,733 890,900
(204,908,754) (163,907,346)
(47) Expenses by nature
The cost of sales, selling and distribution expenses, general and administrative expenses
and research and development expenses in the income statement are listed as follows by
nature:
Changes in inventories of finished goods and
work in progress 257,637,510 (3,902,524)
Consumed raw materials and low value
consumables, etc. 25,132,665,845 22,878,764,631
Employee benefits 2,666,489,192 2,556,734,264
Depreciation of fixed assets 916,013,071 906,176,838
Amortisation of intangible assets 303,459,508 199,424,503
Depreciation of right-of-use assets 82,225,674 70,119,650
Transportation expenses 499,191,963 610,883,899
Promotion expenses 521,049,350 413,790,869
Warranties 330,658,844 381,747,663
Design fee 209,447,053 304,491,964
Advertising and new product planning fees 168,368,816 187,517,174
Technology development expenses 166,375,068 190,609,379
Fixed asset repair and maintenance
expenses (a) 130,842,815 122,958,397
Others 417,455,604 885,958,847
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(47) Expenses by nature (Cont’d)
(a) The Group includes daily maintenance expenses ineligible for the capitalisation of fixed
assets regarding the production and processing of inventories into cost of inventories,
which will be carried forward to cost of sales, and those regarding the R&D Department,
Administrative Department, and Sales Department are included in research and
development expenses, management expenses and selling and distribution expenses
respectively.
(b) As stated in Note 2(22), the Group directly recognises the lease payments of short-term
lease and low value lease into profit or loss for the current period. In 2023, the amount was
RMB2,619,206 (2022: RMB5,147,442).
The lessor didn’t exempt the Group from paying the rental for the 2023 period (2022:
exempted the rental for RMB22,851, and the Group had deducted the rental waivers
against the rental expense for the current period).
(48) Asset impairment losses
Impairment of fixed assets 252,193,642 763,162
Losses on decline in the value of inventories 73,577,937 6,479,606
Impairment of intangible assets 13,609,665 -
Impairment of construction in progress 5,744,314 -
(49) Credit impairment losses
Losses on bad debts of accounts receivable 6,217,292 12,497,418
Losses on bad debts of other receivables 68,376 (701,952)
Losses on bad debts of notes receivable (300,857) 318,421
Losses on bad debts of long-term receivables (20,328) (47,041)
(50) Other income
Asset related/
Government grants
- Supporting funds by
government 552,216,000 906,908,600 Income related
- Research and development
activities related subsidies 2,752,567 810,319 Income related
- Equipment purchasing-related
subsidies 1,610,714 939,583 Asset related
- Other subsidies related with
daily operation 6,520,850 33,132,873 Income related
Additional deduction of input
VAT, etc. 4,429,635 1,535,181 —
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(51) Investment income
Losses on discount of financing receivables
eligible for derecognition (Note 4(6)) (9,867,768) (15,303,265)
Losses on long-term equity investments
under equity method (9,591,118) (8,768,433)
Investment income/(loss) from forward
exchange settlement 6,757,648 (13,534,785)
Investment income from financial assets
held for trading 2,122,192 1,523,836
(10,579,046) (36,082,647)
There is no significant restriction on the remittance of investment income of the Group.
(52) Gains on changes in fair value
Derivative financial assets and derivative
financial liabilities -
(Losses)/Gains on forward exchange
contracts (3,432,004) 13,677,317
Financial assets at fair value through profit
or loss -
Structural deposits 604,877 (242,329)
(2,827,127) 13,434,988
(53) Gains on disposal of assets
Amount recognised in
non-recurring profit or
(Losses)/Gains on disposal of
assets (3,908,476) 391,369,117 (3,908,476)
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(54) Non-operating income
Amount recognised in
non-recurring profit or
Penalty income 2,016,394 3,539,296 2,016,394
Others 6,859,486 248,972 6,859,486
(55) Non-operating expenses
Amount recognised in
non-recurring profit or
Losses on scrapping
of assets 3,544,912 2,117,642 3,544,912
Donations 2,005,050 2,007,280 2,005,050
Others 491,061 357,040 491,061
(56) Income tax expenses
Current income tax calculated based
on tax law and related regulations (36,527,990) 55,769,297
Deferred income tax (229,824,580) (19,081,691)
(266,352,570) 36,687,606
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(56) 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 798,142,127 899,566,225
Income tax calculated at applicable tax rates 119,721,319 134,934,934
Effect of different applicable tax rates (327,690,005) 108,932,026
Additional deductions (211,427,507) (230,686,396)
Deductive loss and temporary differences of
the unrecognised deferred tax asset in
the current period 138,918,718 23,495,176
Tax deduction - (1,487,861)
Non-deductible investment losses 1,438,668 1,315,266
Costs, expenses and losses not deductible
for tax purposes 12,686,237 184,461
Income tax expenses (266,352,570) 36,687,606
(57) 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 1,475,597,266 915,049,168
Weighted average number of ordinary shares
outstanding issued by the Company 863,214,000 863,214,000
Basic earnings per share 1.71 1.06
(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 2023 (2022: 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 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(58) 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 570,888,569 955,101,654
Guarantees 55,489,359 60,562,160
Others 26,712,624 33,097,597
(b) Cash paid relating to other operating activities
Research and development expenses 749,170,775 816,368,325
Promotion expenses 480,783,867 476,208,872
Warranties 346,082,383 394,991,987
Advertising expenses 169,899,863 173,112,926
Maintenance expenses 89,032,387 83,223,085
Consulting fees 65,342,130 55,227,003
Trademark royalties 59,191,201 64,658,976
Guarantees 39,706,110 78,907,867
Others 531,422,650 533,553,375
(c) Cash received from disposal of investments
Cash receipts on maturity from structural
deposits 300,000,000 200,000,000
(d) Cash paid to acquire investments
Cash paid to purchase structural deposits 500,000,000 100,000,000
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(58) Notes to the cash flow statement (Cont’d)
(e) Cash received relating to other investing activities
Interest from cash at bank 236,531,137 213,506,326
Other interest 17,591,395 17,774,117
(f) Cash paid relating to other financing activities
Payment of deposit on a bank
acceptance bill 700,000,000 -
Payments of lease liabilities 35,327,443 18,852,333
Others 203,835 127,976
(59) 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 1,064,494,697 862,878,619
Add: Asset impairment losses (Note 4(48)) 345,125,558 7,242,768
Credit impairment losses (Note 4(49)) 5,964,483 12,066,846
Depreciation of fixed assets (Note 4(14)) 916,013,071 906,176,838
Amortisation of intangible assets (Note 4(17)) 303,459,508 199,424,503
Depreciation of right-of-use assets (Note 4(16)) 82,225,674 70,119,650
Losses/(Gains) on disposal of long-term assets 7,453,268 (389,251,475)
Financial income (206,132,603) (164,683,747)
Investment loss (Note 4(51)) 10,579,046 36,082,647
Losses/(Gains) on changes in fair value (Note
Increase in deferred tax assets (225,776,111) (18,386,505)
Decrease in deferred tax liabilities (4,048,469) (695,186)
Decrease/(Increase) in inventories 356,811,018 (324,847,715)
Increase in provisions 46,435,780 36,427,494
Decrease/(Increase) in operating receivables 1,243,438,837 (2,216,547,690)
Increase/(Decrease) in operating payables 639,523,406 (521,146,011)
Increase in other cash and cash equivalents (20,854,424) -
Net cash flows from/(used in) operating activities 4,567,539,866 (1,518,573,952)
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(59) Supplementary information to the cash flow statement (Cont’d)
(a) Supplementary information to the cash flow statement (Cont’d)
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the end of
the year 11,746,518,615 8,543,193,654
Less: Cash and cash equivalents at the
beginning of the year (8,543,193,654) (9,569,051,314)
Net increase/(decrease) in cash and cash
equivalents 3,203,324,961 (1,025,857,660)
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(59) Supplementary information to the cash flow statement (Cont’d)
(b) Changes in liabilities arising from financing activities
Other accounts
Bank borrowings payable Lease liabilities Others
(including the (including the (including the (including the
current portion) current portion) current portion) current portion) Total
Cash inflows from financing activities 4,278,854,833 - - 749,000,000 5,027,854,833
Cash outflows from financing activities (4,117,072,291) (367,307,955) (35,327,443) (700,203,835) (5,219,911,524)
Interest accrued in the current year 31,569,172 182,310 10,093,308 - 41,844,790
Dividends accrued in the current year - 366,002,736 - - 366,002,736
Changes that do not involve cash
receipts and payments 39,321 1,121,722 (22,004,809) 203,835 (20,639,931)
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(59) Supplementary information to the cash flow statement (Cont’d)
(c) Cash and cash equivalents
Cash at bank available for payment at any
time 10,653,646,811 7,656,947,735
Cash at finance company available for
payment at any time 1,092,871,804 886,245,919
(i) As in Note 4(1), other cash and cash equivalents of RMB20,854,424 as at 31 December
(60) Foreign currency monetary items
Amounts in
foreign Translation
currencies exchange rate Amounts in RMB
Long-term borrowings -
USD 261,937 7.0827 1,855,219
Other payables -
USD 20,292,506 7.0827 143,725,731
EUR 33,288 7.8592 261,617
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 Sales of automobiles, technical and Set up by
(Shanghai)(a) Shanghai Shanghai 200,000,000 business information consultation 51% - investment
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 2023 December 2023 at 31 December 2023
Jiangling Ford (Shanghai) 49% (411,102,569) - (365,273,118)
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) 614,328,924 334,081,469 948,410,393 1,687,054,531 6,811,204 1,693,865,735
Total
comprehensive Cash flows from
Revenue Net loss loss operating activities
Jiangling Ford (Shanghai) 643,047,862 (838,984,834) (838,984,834) 366,124,545
As of 31 December 2023, the Company and Ford Motor Company (“Ford”) have paid RMB102,000,000 and RMB98,000,000 respectively.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 joint ventures and associates by taking into account factors
such as whether the joint ventures and 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 194,206,175 194,926,320
Non-current assets 443,606,551 426,146,460
Total assets 637,812,726 621,072,780
Current liabilities 147,988,407 107,387,068
Non-current liabilities 74,039 152,778
Total liabilities 148,062,446 107,539,846
Minority interests 195,900,112 205,413,174
Equity attributable to shareholders of the
parent company 293,850,168 308,119,760
Share of net assets based on shareholding
(i) 195,900,112 205,413,174
Adjustments
- Unrealised profits arising from internal
transactions (14,425,830) (15,210,808)
- Others (ii) 20,853,323 20,853,323
Carrying amount of equity investments in
associates 202,327,605 211,055,689
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 52,305,024 92,711,191
Net loss (29,383,136) (26,440,535)
Other comprehensive
income - -
Total comprehensive loss (29,383,136) (26,440,535)
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 31,470,743 37,427,133
Aggregate of the following items based on shareholding
Net (loss)/profit (i) (863,034) 1,018,493
Other comprehensive income (i) - -
Total comprehensive (loss)/income (863,034) 1,018,493
(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 2023
(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 2023, the revenue obtained from a single customer of the Group accounted for more
than 10% of the Group’s revenue, amounting to RMB9,207,385,268, or 27.76% (2022:
(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 4(13).
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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
referred to as “Chongqing Changan”) Shareholder of JIC
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. Wholly-owned Subsidiary of JMCG
Jiangxi Lingrui Recycling Resources Development
Corporation Wholly-owned Subsidiary of JMCG
Jiangling Automobile Group (Nanchang) Fushan
Energy Co., Ltd. Wholly-owned Subsidiary of JMCG
Jiangxi JMCG Industry Co., Ltd. Wholly-owned Subsidiary of JMCG
JMCG Property Management Co. Wholly-owned Subsidiary of JMCG
JMCG Jingma Motors Co., Ltd. Wholly-owned Subsidiary of JMCG
Nanchang Gear Forging Co.,Ltd. Wholly-owned Subsidiary of JMCG
Jiangxi Jiangling Chassis Co., Ltd. Holding Subsidiary of JMCG
Nanchang JMCG Shishun Logistics Co., Ltd. Holding Subsidiary of JMCG
Jiangxi Lingge Non-ferrous Metal Die-casting Co.,
Ltd. Holding Subsidiary of JMCG
Jiangxi Mingfang Auto Parts Industry Co., Ltd. Holding Subsidiary of JMCG
JMCF Holding Subsidiary of JMCG
Nanchang Jiangling HuaXiang Auto Components
Co., Ltd. Holding Subsidiary of JMCG
Jiangxi Jiangling Lear Interior System Co., Ltd. Holding Subsidiary of JMCG
Nanchang Unistar Electric & Electronics Co., Ltd. Holding Subsidiary of JMCG
Jiangxi ISUZU Engine Co., Ltd. Holding Subsidiary of JMCG
Jiangxi ISUZU Co., Ltd. Holding Subsidiary of JMCG
Jiangxi JMCG Specialty Vehicles Co., Ltd. Holding Subsidiary of JMCG
Jiangling Motor Electricity Vehicle Co., Ltd. Holding Subsidiary of JMCG
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Holding Subsidiary of JMCG
Ford Motor Co. Thailand Ltd. Wholly-owned Subsidiary of Ford
Ford Global Technologies,LLC Wholly-owned Subsidiary of Ford
Ford Motor Research & Engineering (Nanjing) Co.,
Ltd. Wholly-owned Subsidiary of Ford
Ford Motor (China) Co., Ltd. Wholly-owned Subsidiary of Ford
Ford Trading Company, LLC Wholly-owned Subsidiary of Ford
Auto Alliance (Thailand) Co., Ltd. Holding Subsidiary of Ford
Ford Otomotiv Sanayi A.S. Holding Subsidiary of Ford
Ford Vietnam Limited Holding Subsidiary of Ford
Changan Ford Automobile Co., Ltd. Joint venture of Ford
Jiangling Material Co., Ltd. Subsidiary under indirect control of JMCG
Jiangxi Jiangling group Fuxin Auto Parts Co., Ltd. Subsidiary under indirect control of JMCG
Nanchang JMCG Xinchen Auto Component Co., Ltd. Subsidiary under indirect control of JMCG
Nanchang JMCG Liancheng Auto Component Co.,
Ltd. Subsidiary under indirect control of JMCG
Nanchang Lianda Machinery Co., Ltd. Subsidiary under indirect control of JMCG
Jiangxi JMCG Boya brake system Co., Ltd. Subsidiary under indirect control of JMCG
Jiangling Aowei Automobile Spare Part Co., Ltd. Subsidiary under indirect control of JMCG
Jiangxi JMCG Shangrao Industrial Co.,Ltd. Subsidiary under indirect control of JMCG
JMCG Jiangxi Engineering Construction Co., Ltd. Subsidiary under indirect control of JMCG
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. Subsidiary under indirect control of JMCG
Nanchang Hengou Industry Co., Ltd. Subsidiary under indirect control of JMCG
Jiangxi JMCG Specialty Vehicles Sales Corporation,
Ltd. Subsidiary under indirect control of JMCG
Jiangxi JMCG Motorhome Co.,Ltd. Subsidiary under indirect control of JMCG
China Changan Group Tianjin Sales Co., Ltd. Group Subsidiary of Chongqing Changan
Chongqing Anfu Vehicle Marketing Co., Ltd. Group Subsidiary of Chongqing Changan
Guizhou Wanfu Vehicle Sales & Service Co., Ltd. Group Subsidiary of Chongqing Changan
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(4) Information of other related parties (Cont'd)
Relationship with the Group
Beijing Baiwang Changfu Vehicle Sales & Service
Co., Ltd. Group Subsidiary of Chongqing Changan
Chengdu Wanxing Vehicle Sales & Service Co., Ltd. Group Subsidiary of Chongqing Changan
Dali Wanfu Vehicle Sales & Service Co., Ltd. Group Subsidiary of Chongqing Changan
Guizhou Wanjia Automobile Sales and Service Co.
LTD Group Subsidiary of Chongqing Changan
Beijing Beifang Changfu Vehicle Sales & Service Co.,
Ltd. Group Subsidiary of Chongqing Changan
Chongqing Anbo Vehicle Sales Co., Ltd. Group Subsidiary of Chongqing Changan
Nanchang Yinlun Heat-exchanger Co., Ltd. Joint venture of JMCG
Dibao transportation equipment (Nanchang) Co., Ltd Associate of JMCG
Magna PT Powertrain (Jiangxi) Co., Ltd. Associate of JMCG
Nanchang Baojiang Steel Processing Distribution
Co., Ltd. Associate of JMCG
Faurecia Emissions Control Technologies
(Nanchang) Co., Ltd. Associate of JMCG
Jiangxi Lingyun Automobile Industry Technology Co.,
Ltd Associate of JMCG
Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. Associate of JMCG
Jiangxi Jiangling Group Special Vehicle Co., Ltd. Associate of JMCG
Jiangling Motor Holdings Co., Ltd. Associate of JMCG
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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:
Nature of related party transactions 2023 2022
Magna PT Powertrain (Jiangxi) Co., Ltd. Purchase of automobile parts 1,234,830,816 893,746,762
Nanchang Jiangling HuaXiang Auto Components
Co., Ltd. Purchase of automobile parts 1,073,623,228 924,968,624
Nanchang Baojiang Steel Processing Distribution
Co., Ltd. Purchase of raw and auxiliary materials 742,956,579 853,482,030
Jiangxi Jiangling Lear Interior System Co., Ltd. Purchase of automobile parts 739,454,498 592,001,464
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. Purchase of automobile parts 676,134,340 591,833,347
Jiangxi Jiangling Chassis Co., Ltd. Purchase of automobile parts 671,593,708 667,746,553
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. Purchase of automobile parts 502,323,040 522,742,154
Nanchang JMCG Liancheng Auto Component Co.,
Ltd. Purchase of automobile parts 330,845,695 369,597,043
Faurecia Emissions Control Technologies
(Nanchang) Co., Ltd. Purchase of automobile parts 318,072,152 463,742,380
Nanchang Unistar Electric & Electronics Co., Ltd. Purchase of automobile parts 279,622,115 324,877,090
Ford Purchase of automobile parts 209,574,211 322,131,155
Jiangxi Lingyun Automobile Industry Technology
Co., Ltd Purchase of automobile parts 196,007,909 103,896,591
Nanchang JMCG Shishun Logistics Co., Ltd. Purchase of automobile parts 192,633,046 180,558,765
Hanon Systems Purchase of automobile parts 145,092,844 158,047,018
Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. Purchase of automobile parts 115,360,810 101,065,187
Nanchang Yinlun Heat-exchanger Co., Ltd. Purchase of automobile parts 115,311,831 102,105,085
Jiangxi Lingge Non-ferrous Metal Die-casting Co.,
Ltd. Purchase of automobile parts 69,811,815 77,843,750
Dibao Transportation Equipment (Nanchang) Co.,
Ltd. Purchase of automobile parts 60,792,520 72,666,598
Nanchang Lianda Machinery Co., Ltd. Purchase of automobile parts 36,590,311 41,535,015
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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):
Nature of related party transactions 2023 2022
Jiangxi Jiangling Group Special Vehicle Co., Ltd. Purchase of automobile parts 35,254,361 35,235,246
Jiangxi Lingrui Recycling Resources Development
Corporation Purchase of raw and auxiliary materials 34,228,198 21,762,663
Changan Ford Automobile Co., Ltd. Purchase of automobile parts 29,984,492 41,230,580
Jiangxi JMCG Specialty Vehicles Co., Ltd. Purchase of automobile parts 29,236,531 28,779,924
Auto Alliance (Thailand) Company Limited Purchase of automobile parts 23,272,017 32,471,122
Jiangling Automobile Group (Nanchang) Fushan
Purchase of raw and auxiliary materials -
Energy Co., Ltd. 21,306,073
Jiangxi JMCG Boya brake system Co., Ltd. Purchase of automobile parts 21,152,868 19,380,235
Jiangxi Jiangling Group Fuxin Auto Parts Co., Ltd. Purchase of automobile parts 12,877,795 11,199,030
Jiangling Aowei Automobile Spare Part Co., Ltd. Purchase of automobile parts 11,810,460 10,490,081
Jiangxi Mingfang Auto Parts Industry Co., Ltd. Purchase of automobile parts 10,792,593 5,568,158
Jiangling Material Co., Ltd. Purchase of raw and auxiliary materials 9,453,368 32,216,397
Nanchang JMCG Xinchen Auto Component Co.,
Ltd. Purchase of automobile parts 6,916,734 6,378,562
Ford Otomotiv Sanayi A.S. Purchase of automobile parts 6,124,706 11,853,176
Jiangxi ISUZU Engine Co., Ltd. Purchase of automobile parts 5,902,036 15,633,287
JMCG Purchase of automobile parts 5,567,401 88,653,236
Ford Motor Co. Thailand Ltd. Purchase of automobile parts 5,025,699 3,277,641
Jiangling Motor Holdings Co., Ltd. Purchase of automobile parts 4,416,533 17,697,962
Jiangxi JMCG Shangrao Industrial Co.,Ltd. Purchase of automobile parts 3,640,870 961,843
Nanchang Gear Forging Co., Ltd. Purchase of automobile parts 1,700,955 3,004,555
The Power Company Purchase of automobile parts 889,693 12,857,369
Nanchang Hengou Industry Co., Ltd. Purchase of automobile parts 808,561 3,423,048
Other related parties Purchase of automobile parts 974,591 1,140,326
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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):
The products purchased by the Group from related parties are divided into two categories: purchase of imported parts and purchase of domestic
parts.
? The pricing on imported parts purchased from Ford or its suppliers is based on the agreed price by both parties;
? The pricing on domestic accessories purchased from other related parties is determined through quotation, cost accounting, and negotiation
between the two parties, and is adjusted regularly.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 2023 2022
Nanchang JMCG Shishun Logistics Co., Ltd. Transportation, cartage fees, etc. 279,310,486 298,629,305
Trademark management fees, technology
Ford Global Technologies, LLC development 230,160,051 246,334,027
Ford Motor Research & Engineering (Nanjing) Co.,
Ltd. Design fees, personnel costs 194,494,776 14,496,038
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. Cartage fees, storage fees, etc. 80,922,767 30,384,153
Ford Technical services and personnel costs 54,350,740 204,118,407
Ford Motor (China) Co., Ltd. Design fees, personnel costs, etc. 59,693,175 21,474,039
Jiangxi JMCG Industry Co., Ltd. Meal fees 32,267,146 24,868,735
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Agency fees, advertising fees, etc. 16,523,698 15,899,222
JMCG Jiangxi Engineering Construction Co., Ltd. Engineering construction 15,415,319 -
JMCG Property Management Co., Ltd. Property fees, etc. 10,527,990 4,362,127
Technical services and technical
Ford Otomotiv Sanayi A.S. development 7,096,986 15,125,422
JMCG Labour costs, rental fees, etc. 4,843,455 1,492,519
Changan Ford Automobile Co., Ltd. Service fees, labour costs, etc. 4,654,227 8,263,784
Magna PT Powertrain (Jiangxi) Co., Ltd. Design fees, experimental costs 2,418,126 -
Chongqing Changan. Personnel costs 2,394,350 2,458,047
China Changan Group Tianjin Sales Co., Ltd. Warranty and promotion expenses 2,172,513 1,202,470
Chongqing Anfu Vehicle Marketing Co., Ltd. Warranty and promotion expenses 1,941,436 1,168,824
Guizhou Wanfu Vehicle Sales & Service Co., Ltd. Warranty and promotion expenses 1,821,952 1,276,480
Beijing Baiwang Changfu Vehicle Sales & Service
Co., Ltd. Warranty and promotion expenses 1,471,768 7,850
Chengdu Wanxing Vehicle Sales & Service Co.,
Ltd. Warranty and promotion expenses 1,375,979 1,203,126
Dali Wanfu Vehicle Sales & Service Co., Ltd. Warranty and promotion expenses 1,112,059 940,958
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 (Cont’d):
Nature of related party transactions 2023 2022
Nanchang Jiangling HuaXiang Auto Components
Co., Ltd. Repair Expense 1,000,000 -
The Power Company Consulting fees - 4,109,652
Jiangling Motor Holdings Co., Ltd. Labour costs, rental fees - 2,021,395
Other related parties 5,948,800 6,778,331
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 2023
(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 2023 2022
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Sales of vehicles and accessories, etc. 9,195,254,309 5,898,939,789
Jiangxi JMCG Specialty Vehicles Sales
Corporation, Ltd. Sales of vehicles, etc. 233,284,195 472,883,971
JMCG Jingma Motors Co., Ltd. Sales of vehicles and accessories 138,140,667 71,361,087
Jiangxi JMCG Specialty Vehicles Co., Ltd. Sales of vehicles and accessories 117,122,584 104,259,399
Jiangxi Lingrui Recycling Resources Development
Corporation Sales of waste materials, etc. 61,983,828 69,766,263
Chongqing Anfu Vehicle Marketing Co., Ltd. Sales of vehicles and accessories 59,076,555 51,437,264
Guizhou Wanfu Vehicle Sales & Service Co., Ltd. Sales of vehicles and accessories 57,023,957 47,550,057
China Changan Group Tianjin Sales Co., Ltd. Sales of vehicles and accessories 53,741,159 45,104,628
Chengdu Wanxing Vehicle Sales & Service Co.,
Ltd. Sales of vehicles and accessories 52,044,606 48,716,119
Jiangxi Jiangling Chassis Co., Ltd. Sales of accessories 41,569,726 74,175,180
Jiangxi Jiangling Group Special Vehicle Co., Ltd. Sales of vehicles and accessories 33,140,757 51,205,027
Jiangxi ISUZU Engine Co., Ltd. Sales of accessories 30,991,252 225,441
Jiangxi ISUZU Co., Ltd. Sales of accessories 30,173,657 21,171,806
Beijing Baiwang Changfu Vehicle Sales & Service
Co., Ltd. Sales of vehicles and accessories 24,605,654 9,138,891
Jiangxi Jiangling Lear Interior System Co., Ltd. Sales of accessories 20,799,067 13,331,531
Dali Wanfu Vehicle Sales & Service Co., Ltd. Sales of vehicles and accessories 20,415,905 41,230,522
Guizhou Wanjia Automobile Sales and Service
Co. LTD Sales of vehicles and accessories 19,961,873 13,260,858
Beijing Beifang Changfu Vehicle Sales & Service
Co., Ltd. Sales of vehicles and accessories 19,437,596 17,459,735
Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. Sales of accessories 16,554,633 12,877,775
Nanchang Hengou Industry Co., Ltd. Sales of accessories 13,346,388 11,141,173
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 2023 2022
Nanchang JMCG Liancheng Auto
Component Co., Ltd. Sales of accessories 11,140,167 9,721,317
Jiangxi Jiangling Special Purpose Vehicle
Co., Ltd. Sales of vehicles and accessories 8,541,781 258,768,616
Chongqing Anbo Vehicle Sales Co., Ltd. Sales of vehicles and accessories 6,378,430 27,134,967
Nanchang Jiangling HuaXiang Auto
Components Co., Ltd. Sales of accessories 3,379,221 3,317,971
Sales of accessories and waste
Jiangxi JMCG Industry Co., Ltd. materials 3,024,062 3,496,119
Sales of accessories and labour
JMCG costs 1,746,828 3,931,336
Nanchang Lianda Machinery Co., Ltd. Sales of accessories 1,517,492 1,964,144
Jiangling Motor Holdings Co., Ltd. Labour costs 1,060,073 1,150,970
Magna PT Powertrain (Jiangxi) Co., Ltd. Sales of accessories 1,036,350 941,880
Jiangxi Zhonglian Intelligent Logistics Co.,
Ltd. Sales of accessories, etc. 804,119 4,886,482
Nanchang JMCG Shishun Logistics Co.,
Ltd. Sales of vehicles, etc. 482,009 3,351,832
Other related parties 2,984,373 3,212,286
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 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Related party transactions (Cont’d)
(b) Leases
(i) The lease income recognised in the current year with the Group as the lessor:
Name of the lessee Type of the leased asset 2023 2022
Jiangling Motor Holdings Co., Ltd. Buildings 54,000 4,909
Jiangxi JMCG Motorhome Co., Ltd. Buildings - 2,945
(ii) Increase of right-of-use assets in the current year with the Group as the lessee
Name of the lessor Type of the leased asset 2023 2022
JMCG Buildings 27,245,841 -
(iii) Interest costs on lease liabilities in the current year with the Group as the lessee:
Type of the leased asset 2023 2022
JMCG Buildings 251,975 311,629
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Buildings 247,082 549,276
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Related party transactions (Cont’d)
(c) Guarantee received
Guaranteed
Guarantor amount Starting date Ending date Fully performed or not
JMCF 1,855,219 5 March 2001 30 October 2029 Not fully performed
In 2023, JMCF provided guarantees for some bank borrowings of the Group, with a maximum guarantee limit of USD2,282,123. As at 31
December 2023, JMCF provided borrowing guarantee to the bank borrowing of USD261,937, equivalent to RMB1,855,219 (31 December 2022:
USD327,421 equivalent to RMB2,280,355) for the Group.
(d) Transfer of assets
Nature of related party
transactions 2023 2022
Jiangxi Lingrui Recycling Resources
Development Corporation Sales of fixed assets 133,360 249,367
JMCG Jingma Motors Co., Ltd. Sales of fixed assets - 4,527,773
The pricing on transfer of assets between the Group and 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 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Related party transactions (Cont’d)
(e) Purchase of assets
Nature of related party transactions 2023 2022
Nanchang Jiangling HuaXiang Auto
Components Co., Ltd. Purchase of fixed assets 48,867,431 30,269,160
Jiangxi Jiangling Special Purpose Vehicle Co.,
Ltd. Purchase of fixed assets 33,005,751 19,523,883
Nanchang JMCG Liancheng Auto Component
Co., Ltd. Purchase of fixed assets 15,020,583 9,660,000
Magna PT Powertrain (Jiangxi) Co., Ltd. Purchase of fixed assets 4,050,000 -
Jiangxi Jiangling Lear Interior System Co., Ltd. Purchase of fixed assets 1,071,960 -
Jiangxi JMCG Specialty Vehicles Co., Ltd. Purchase of fixed assets 553,857 456,637
The pricing on purchase of assets between the Group and related parties is based on the agreed price by both parties.
(f) Purchase of long-term technology license
Nature of related party transactions 2023 2022
Ford Purchase of long-term technology license - 129,021,097
Ford Otomotiv Sanayi A.S. Purchase of long-term technology license - 8,392,035
- 137,413,132
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Related party transactions (Cont’d)
(g) Provision of technology sharing and distribution service
Nature of related party transactions 2023 2022
Ford Motor Research & Engineering (Nanjing)
Co., Ltd. Engineering and technical service 79,761,786 55,006,000
Ford Motor (China) Co., Ltd. Distribution and technical service 28,210,737 12,978,451
Ford Vietnam Limited Technical service 12,700,000 14,390,000
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. Technical service 12,130,959 8,155,000
Jiangxi ISUZU Co., Ltd. Technical service 3,990,000 710,000
Ford Technical service 3,313,725 18,690,000
Ford Trading Company, LLC Technical service 1,509,518 2,206,000
JMCG Jingma Motors Co., Ltd. Technical service - 190,000
The Group’s pricing on technology sharing provided 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 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(5) Related party transactions (Cont’d)
(h) Remuneration of key management
Remuneration of key management 12,564,194 11,606,369
(i) Interest income
JMCF 15,036,500 17,130,577
Cash at bank of the Group deposited with JMCF was calculated based on the bank
annual interest rate for RMB deposit of 0.455% to 2.25% over the same period (2022:
(j) Interest expenses
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. 120,000 -
Nanchang JMCG Shishun Logistics Co., Ltd. 30,000 -
JMCF - 1,250,000
(k) Purchase of CAFC credit and NEV credit
Jiangling Motor Holdings Co., Ltd. 233,811 819,000
Jiangling Motor Electricity Vehicle Co., Ltd. - 64,474,060
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(6) Receivables from and payables to related parties
Provision for bad Provision for bad
Amount debts Amount debts
Accounts receivable
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 2,681,807,388 (5,431,789) 1,809,124,109 (1,495,512)
Jiangxi JMCG Specialty Vehicles Co., Ltd. 39,985,715 (48,790) 9,109,228 (5,477)
JMCG Jingma Motors Co., Ltd. 32,388,453 (106,014) 46,820,892 (140,841)
Jiangxi ISUZU Co., Ltd. 11,507,006 (34,521) 3,650,860 (10,953)
Jiangxi ISUZU Engine Co., Ltd. 9,873,973 (29,622) 254,748 (764)
Jiangxi JMCG Specialty Vehicles Sales
Corporation, Ltd. 7,564,961 (9,076) 60,082,649 (329,953)
Jiangxi Jiangling Group Special Vehicle Co., Ltd. 5,471,828 (6,565) - -
Ford Vietnam Limited 5,320,000 (15,960) 3,250,000 (9,750)
Ford Motor (China) Co., Ltd. 4,507,064 (13,521) 1,727,858 (5,184)
Jiangxi Jiangling Lear Interior System Co., Ltd. 3,792,069 (11,376) 3,326,672 (9,980)
Nanchang JMCG Liancheng Auto Component
Co., Ltd. 2,938,482 (8,815) 1,773,035 (5,319)
Jiangxi Jiangling Special Purpose Vehicle Co.,
Ltd. 2,827,718 (144,662) 105,372,893 (963,329)
Nanchang Hengou Industry Co., Ltd. 2,114,644 (6,344) 322,458 (967)
Nanchang Jiangling HuaXiang Auto Components
Co., Ltd. 1,275,203 (3,826) 555,437 (1,666)
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. 304,992 (915) 1,340,748 (4,022)
Nanchang JMCG Shishun Logistics Co., Ltd. - - 1,735,793 (744)
Ford Motor Research & Engineering (Nanjing)
Co., Ltd. - - 21,973,800 (65,921)
Other related parties 3,463,319 (12,060) 2,767,218 (7,393)
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(6) Receivables from and payables to related parties (Cont’d)
Provision for bad Provision for bad
Amount debts Amount debts
Other receivables
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 8,636,151 (67,362) 10,231,067 (30,693)
JMCG Jingma Motors Co., Ltd. 4,614,745 (35,995) 4,614,745 (13,844)
Other related parties 245,356 (1,914) 4,000 (12)
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 Nanchang Baojiang Steel Processing
suppliers Distribution Co., Ltd. 144,390,937 233,947,199
Financing Jiangxi JMCG Specialty Vehicles
receivables Co., Ltd. 43,000,000 40,000,000
JMCG Jingma Motors Co., Ltd. 11,000,000 3,000,000
Jiangxi ISUZU Co., Ltd. 3,950,000 600,000
Jiangxi ISUZU Engine Co., Ltd. 1,264,651 -
Jiangxi Jiangling Motors Imp. & Exp.
Co., Ltd. - 50,000,000
Notes receivable Jiangxi Jiangling Motors Imp. & Exp.
Co., Ltd. - 600,000,000
Cash at bank JMCF 1,092,871,804 886,245,919
Short-term
borrowings JMCF - 200,000,000
Transactions with
JMCF JMCF 13,982,325,897 13,263,312,181
In 2023, the amount of sales and other transactions settled by JMCF was
RMB13,982,325,897 (2022: RMB13,263,312,181), of which the Group didn’t have sales
amount settled through the buyer-paid interest discounting business of electronic
commercial notes (2022: RMB169,310,000). As at 31 December 2023, the Group didn’t
have trade acceptance notes discounted but unmatured arising from the above business (31
December 2022: RMB140,330,000). The Group has transferred almost all the risks and
rewards of ownership of electronic commercial notes, which have been therefore
derecognised.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(6) Receivables from and payables to related parties (Cont’d)
Accounts Nanchang Jiangling HuaXiang Auto
payable Components Co., Ltd. 526,325,735 538,861,064
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. 393,207,678 280,456,600
Jiangxi Jiangling Lear Interior System Co., Ltd. 365,099,029 341,829,498
Magna PT Powertrain (Jiangxi) Co., Ltd. 271,344,575 295,727,129
Jiangxi Jiangling Chassis Co., Ltd. 251,320,872 287,843,287
Nanchang JMCG Liancheng Auto
Component Co., Ltd. 202,046,109 168,502,531
Jiangxi Jiangling Special Purpose Vehicle
Co., Ltd. 194,714,700 209,344,967
Nanchang JMCG Shishun Logistics Co., Ltd. 89,401,630 51,617,596
Ford 86,590,606 63,701,961
Nanchang Unistar Electric & Electronics Co.,
Ltd. 64,278,792 59,831,745
Faurecia Emissions Control Technologies
(Nanchang) Co., Ltd. 62,653,105 142,695,801
Jiangxi Lingyun Automobile Industry
Technology Co., Ltd 46,765,963 22,971,514
Nanchang JMCG SMR Huaxiang Mirror Co.,
Ltd. 34,028,487 48,052,587
Nanchang Yinlun Heat-exchanger Co., Ltd. 33,494,753 38,139,971
Jiangxi Lingge Non-ferrous Metal Die-casting
Co., Ltd. 33,447,909 29,858,865
Hanon Systems 28,561,752 52,260,989
Dibao Transportation Equipment (Nanchang)
Co., Ltd 28,378,407 29,824,381
Jiangxi JMCG Specialty Vehicles Co., Ltd. 22,470,866 48,084,822
Jiangxi Lingrui Recycling Resources
Development Corporation 19,443,919 15,959,512
Nanchang Lianda Machinery Co., Ltd. 13,769,421 15,928,121
Jiangxi Jiangling Group Special Vehicle Co.,
Ltd. 10,453,228 15,558,679
Jiangxi JMCG Boya brake system Co., Ltd. 8,114,273 6,664,021
Jiangling Aowei Automobile Spare Part Co.,
Ltd. 6,868,703 4,202,862
Jiangling Motor Holdings Co., Ltd. 6,295,798 7,254,527
Changan Ford Automobile Co., Ltd. 5,740,862 2,891,546
Jiangxi Mingfang Auto Parts Industry Co., Ltd. 3,734,394 5,244,867
Nanchang JMCG Xinchen Auto Component
Co., Ltd. 3,571,782 1,532,286
Jiangxi JMCG Shangrao Industrial Co.,Ltd. 3,108,061 466,172
Ford Motor Co. Thailand Ltd. 2,269,745 595,603
Jiangling Automobile Group (Nanchang)
Fushan Energy Co., Ltd. 2,102,733 -
JMCG 1,812,893 21,226,897
Jiangxi Jiangling Group Fuxin Auto Parts
Co., Ltd. 1,485,717 3,044,022
Auto Alliance (Thailand) Company Limited 306,304 5,080,988
Jiangling Material Co., Ltd. 31,440 1,444,482
Other related parties 3,200,812 3,223,935
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 91,949,142 190,788,653
Ford Global Technologies, LLC 66,643,015 57,966,899
JMCG Jiangxi Engineering Construction Co., Ltd. 64,113,619 73,068,908
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 44,553,591 17,583,786
Ford Motor Research & Engineering (Nanjing) Co., Ltd. 33,884,078 2,397,259
Nanchang Jiangling HuaXiang Auto Components Co.,
Ltd. 23,662,480 15,949,537
Ford Motor (China) Co., Ltd. 16,138,211 14,421,987
Nanchang JMCG Shishun Logistics Co., Ltd. 10,400,985 7,599,823
Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. 10,086,404 11,939,889
Nanchang JMCG Liancheng Auto Component Co., Ltd. 8,149,662 -
JMCG Property Management Co., Ltd. 6,473,088 22,736
Jiangxi JMCG Specialty Vehicles Co., Ltd. 5,072,940 5,156,445
Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd. 4,420,456 18,560,568
Jiangxi JMCG Industry Co., Ltd. 3,100,412 4,883,512
Jiangxi Zhonglian Intelligent Logistics Co., Ltd. 2,724,194 3,415
Jiangxi Jiangling Group Special Vehicle Co., Ltd. 2,565,523 6,064,606
JMCG 2,445,557 -
Chongqing Changan. 2,394,350 2,458,047
Guizhou Wanfu Vehicle Sales & Service Co., Ltd. 1,696,615 273,531
Ford Otomotiv Sanayi A.S. 1,425,533 4,749,574
Hanon Systems 1,283,100 1,475,000
Changan Ford Automobile Co., Ltd. 1,010,529 5,804
Nanchang Unistar Electric & Electronics Co., Ltd. 926,940 1,908,865
Nanchang Baojiang Steel Processing Distribution Co.,
Ltd. 46,121 1,121,868
Other related parties 6,188,632 5,153,305
Contract Ford Motor Research & Engineering (Nanjing) Co.,
liabilities Ltd. 23,208,214 -
Guizhou Wanfu Vehicle Sales & Service Co., Ltd. 6,142,607 1,902,370
Chengdu Wanxing Vehicle Sales & Service Co., Ltd. 1,350,217 1,056,081
Chongqing Anbo Vehicle Sales Co., Ltd. 1,098,689 1,112,609
Jiangxi Jiangling Group Special Vehicle Co., Ltd. 3,028 1,143,867
Other related parties 2,680,563 1,869,420
Lease
liabilities JMCG 17,016,922 4,732,873
Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. 1,390,961 9,542,357
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(7) Commitments in relation to related parties
Capital commitments
JMCG Jiangxi Engineering
Construction Co., Ltd. 11,134,108 -
Nanchang Jiangling HuaXiang Auto
Components Co., Ltd. - 20,786,749
Jiangxi Jiangling Special Purpose
Vehicle Co., Ltd. - 11,091,570
Nanchang JMCG Liancheng Auto
Component Co., Ltd. - 4,678,200
Magna PT Powertrain (Jiangxi) Co.,
Ltd. - 3,955,000
Guarantee of commitments in relation to related parties is set out in Note 7(5)(c).
As at 31 December 2023, 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 636,424,000 484,700,000
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 28 March 2024, the
Board of Directors proposed to distribute cash dividends of RMB0.684 per share to all
shareholders, calculated on the basis of 863,214,000 issued shares, for a total of
RMB590,438,376.
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 2023, the Group’s
borrowings denominated in foreign currencies were USD261,937, equivalent to
RMB1,855,219. The Group signed forward exchange contracts to mitigate the foreign
exchange risk(Note 4(3), Note 4(30)).
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 2023 and 31 December
USD EUR Total
Financial liabilities
denominated in
foreign currency -
Derivative financial
liabilities 459,306 - 459,306
Current portion of long-
term borrowings 463,805 - 463,805
Long-term borrowings 1,391,414 - 1,391,414
Other payables 143,725,731 261,617 143,987,348
USD EUR Total
Financial assets
denominated in
foreign currency -
Derivative financial
assets 808,826 2,163,872 2,972,698
Financial liabilities
denominated in
foreign currency -
Current portion of long-
term borrowings 456,071 - 456,071
Long-term borrowings 1,824,284 - 1,824,284
Other payables 253,263,898 247,094 253,510,992
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
As at 31 December 2023, for the financial assets and liabilities dominated in foreign
currencies, if the RMB had strengthened/weakened by 10% against the USD while all
other variables had been held constant, the Group’s net profit would have been
approximately RMB12,370,525 (31 December 2022: approximately RMB21,592,894)
higher/lower.
(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 2023, the Group’s short-term borrowings of
RMB1,300,000,000 (31 December 2022: RMB1,100,000,000) were fixed-rate borrowings,
and long-term borrowings of USD261,937 (31 December 2022: USD327,421) were fixed-
rate contracts, long-term borrowings of RMB12,849,944 (31 December 2022:
RMB19,033,773) 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 the interest costs with respect to
the Group’s outstanding floating rate borrowings, 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 2023 and 2022, the
Group did not enter into any interest rate swap agreements.
As at 31 December 2023 and 31 December 2022, 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 2023
(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 2023, the Group had no significant collateral or other credit
enhancements held as a result of the debtor’s mortgage (31 December 2022: 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
Short-term
borrowings 1,304,453,333 - - - 1,304,453,333
Derivative
financial
liabilities 459,306 - - - 459,306
Accounts
payable 9,476,215,223 - - - 9,476,215,223
Other
payables 5,944,976,093 - - - 5,944,976,093
Lease
liabilities 87,312,608 76,170,689 66,393,248 - 229,876,545
Long-term
borrowings 13,361,423 482,936 945,003 - 14,789,362
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Short-term
borrowings 1,100,000,000 - - - 1,100,000,000
Accounts
payable 9,015,978,354 - - - 9,015,978,354
Other
payables 5,672,708,511 - - - 5,672,708,511
Lease
liabilities 81,918,426 71,289,585 132,786,495 - 285,994,506
Long-term
borrowings 488,566 19,515,498 1,404,129 - 21,408,193
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(3) Liquidity risk (Cont’d)
(i) As at 31 December 2023, 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 2023, 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 deposits - 200,604,877 - 200,604,877
Financing receivables -
Notes receivable - - 123,170,062 123,170,062
- 200,604,877 123,170,062 323,774,939
As at 31 December 2023, the liabilities measured at fair value on a recurring basis by the
above three levels were analysed below:
Level 1 Level 2 Level 3 Total
Financial liabilities
Derivative financial
assets -
Forward foreign
exchange contracts - 459,306 - 459,306
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(1) Assets and liabilities measured at fair value on a recurring basis (Cont'd)
As at 31 December 2022, 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
Financing receivables -
Notes receivable - - 376,662,817 376,662,817
Derivative financial assets -
Forward foreign exchange
contracts - 2,972,698 - 2,972,698
- 2,972,698 376,662,817 379,635,515
As at 31 December 2022, the Group didn’t have liabilities measured at fair value on a
recurring basis.
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 2023.
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. The valuation models used mainly
comprise discounted cash flow model and market comparable corporate model. The inputs
of valuation technique mainly include risk-free interest rate, benchmark rate, exchange rate,
credit spreads, liquidity premium, EBITDA multiplier and liquidity lack discount.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(1) Assets and liabilities measured at fair value on a recurring basis (Cont'd)
The changes in Level 3 assets were analysed below:
Changes in unrealised
gains or losses included in
profit or loss in 2023 with
respect to assets still held
Gains as at 31 December 2023 -
Financing receivables -
Notes receivable 376,662,817 3,737,982,954 (3,991,475,709) 123,170,062 - -
Changes in unrealised
gains or losses included in
profit or loss in 2022 with
respect to assets still held
Gains as at 31 December 2022 -
Financing
receivables -
Notes receivable 201,511,670 3,664,369,012 (3,489,217,865) 376,662,817 - -
(a) Gains recognised in profit or loss are recognised in investment income in the income statement.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(2) Assets measured at fair value on a non-recurring basis
As at 31 December 2023 and 31 December 2022, 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 fair value of long-term borrowings and lease liabilities is the present value of the
contractually determined stream of future cash flows discounted at the rate of interest
applied at that time by the market to instruments of comparable credit status and providing
substantially the same cash flows on the same terms, and categorised within Level 3 of the
fair value hierarchy.
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 2023 and 31 December 2022, the Group’s equity ratio was as follows:
Total borrowings 1,314,705,163 1,121,314,128
Total shareholders’ equity 9,984,872,620 9,240,646,784
Equity ratio 13% 12%
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(1) Accounts receivable
Accounts receivable 4,674,277,592 2,444,372,969
Less: Provision for bad debts (79,901,432) (75,474,642)
(a) The aging of accounts receivable was analysed as follows:
Within 1 year 4,490,861,735 2,281,564,617
Over 1 year 183,415,857 162,808,352
As of December 31, 2023, accounts receivable with significant individual amounts and
aging exceeding three years was analysed as follows:
Balance Reason and collection risk
The Company evaluates the receivables from its
subsidiary, SZFJ, on an individual basis. Based
on the judgment of credit risk, these receivables
were not subject to significant credit risk and were
SZFJ 73,835,212 not overdue and impaired.
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
Company1 72,230,000 provision for bad debts.
(b) As at 31 December 2023, 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 4,388,156,996 (5,452,155) 94%
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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) 1,722,220,010 37% (72,230,000) 4.19%
Provision for bad debts on the
grouping basis (ii) 2,952,057,582 63% (7,671,432) 0.26%
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 419,378,082 17% (72,230,000) 17.22%
Provision for bad debts on the
grouping basis (ii) 2,024,994,887 83% (3,244,642) 0.16%
(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
Provision for bad
Amount Lifetime ECL (%) debts
Receivables from related parties
within the Group i) 1,649,990,010 - -
Receivables for
automobiles ii) 72,230,000 100% (72,230,000)
Book balance Provision for bad debts
Provision for bad
Amount Lifetime ECL (%) debts
Receivables from related parties
within the Group i) 347,148,082 - -
Receivables for
automobiles ii) 72,230,000 100% (72,230,000)
i) As at 31 December 2023, the Company’s accounts receivable from subsidiary Jiangling
Ford (Shanghai), SZFJ and JMCS were RMB1,393,390,720, RMB148,630,266 and
RMB107,969,024(31 December 2022: Nil, RMB105,318,231 and RMB241,829,851). The
Company assessed the receivables from subsidiaries individually and based on the
judgment of credit risk, the receivables from subsidiaries 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 2023
(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 2023, the Company assessed the ECL on the related accounts
receivable, and did not consider that they could be collected, therefore, full provision was
made. The related amount was RMB72,230,000 (31 December 2022: RMB72,230,000), of
which Nil (2022: RMB1,836,831) was included in profit or loss for the current period.
(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 107,010,139 0.14% (154,326)
Overdue for 1 to 30 days 14,613,810 0.29% (42,323)
Overdue for 31 to 60 days - — -
Overdue for 61 to 90 days 2,949,660 0.60% (17,698)
Overdue over 90 days 6,048,500 5.64% (341,368)
Grouping – Export sales of general automobiles:
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 2,647,787,903 0.20% (5,295,576)
Grouping - Sales of general automobiles：
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 1,574,700,311 0.04% (676,307)
Overdue for 1 to 30 days 20,338,359 0.04% (8,715)
Overdue for 31 to 60 days 7,025,162 1.07% (75,033)
Overdue for 61 to 90 days - — -
Overdue over 90 days 1,046,303 3.37% (35,212)
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 - Sales of new energy automobiles:
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Overdue over 90 days 1,563,760 80.00% (1,251,008)
Grouping - Sales of new energy automobiles (Cont’d):
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Overdue over 90 days 4,853,760 20.60% (999,805)
Grouping – Automobile parts:
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 168,672,852 0.30% (506,019)
Overdue for 1 to 30 days 1,575,377 0.30% (4,726)
Overdue for 31 to 60 days 190,620 0.50% (953)
Overdue for 61 to 90 days 563,937 0.60% (3,384)
Overdue over 90 days 1,081,024 5.00% (54,051)
Book balance Provision for bad debts
Amount Lifetime ECL (%) Amount
Not overdue 400,583,282 0.30% (1,201,749)
Overdue for 1 to 30 days 10,972,629 0.30% (32,918)
Overdue for 31 to 60 days 1,307,433 0.50% (6,537)
Overdue for 61 to 90 days 377 0.53% (2)
Overdue over 90 days 4,167,271 5.00% (208,364)
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 in the current year amounted to RMB4,426,790, of which none was
collected or reversed.
(d) There was no provision for bad debts actually written off during the year.
(e) As at 31 December 2023 and 31 December 2022, there were no accounts receivable pledged.
(2) Other receivables
Receivables from refund of social
insurance 23,958,000 -
Advance payment of gas expenses 12,769,141 12,919,400
Receivables from JMCH 9,679,410 9,679,410
Import working capital 7,000,000 10,000,000
Receivables from disposal of assets 4,604,745 4,604,745
Receivables from disposal of
subsidiaries - 60,900,000
Receivables from Jiangling Ford
(Shanghai) - 14,426,224
Others 14,165,969 16,641,683
Less: Provision for bad debts (363,359) (315,611)
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 54,408,692 55,337,691
Over 1 year 17,768,573 73,833,771
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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) 33,637,410 47% - -
Provision for bad debts on
the grouping basis (ii) 38,539,855 53% (363,359) 0.94%
Book balance Provision for bad debts
% of total Provision
Amount balance Amount ratio
Provision for bad debts on the
individual basis (i) 24,105,634 19% - -
Provision for bad debts on
the grouping basis (ii) 105,065,828 81% (315,611) 0.30%
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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
Book Provision for Book Provision for Provision for
balance bad debts balance bad debts bad debts
Decrease in the
current year (66,525,973) — - — -
Increase in the
current year - — 9,531,776 —
Bad debt provision
increased in the
current year - (47,748) - - (47,748)
As at 31 December 2023 and 31 December 2022, 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 2023 and 31 December 2022, the Company’s other receivables with
provision for bad debts on the individual basis were analysed below:
Stage 1 Book balance rates bad debts Reason
Receivables from refund of
social insurance 23,958,000 - - i)
Receivables from JMCH 9,679,410 - - ii)
Stage 1 Book balance rates bad debts Reason
Receivables from Jiangling
Ford (Shanghai) 14,426,224 - - ii)
Receivables from JMCH 9,679,410 - - ii)
i)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.
ii) The Company assessed the receivables from subsidiaries individually and based on the
judgment of credit risk, the receivables from subsidiaries 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 2023
(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 2023 and 31 December 2022, 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 2023, 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:
Advance payment of gas expenses 12,769,141 0.78% (99,406) ECL
Import working capital 7,000,000 0.78% (54,494) ECL
Receivables from disposal of
assets 4,604,745 0.78% (35,847) ECL
Others 14,165,969 1.23% (173,612) ECL
As at 31 December 2022, 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:
Receivables from disposal of
subsidiaries 60,900,000 0.30% (182,700) ECL
Advance payment of gas
expenses 12,919,400 0.30% (38,758) ECL
Import working capital 10,000,000 0.30% (30,000) ECL
Receivables from disposal of
assets 4,604,745 0.30% (13,814) ECL
Others 16,641,683 0.30% (50,339) ECL
As at 31 December 2023 and 31 December 2022, the Company had no other receivables at
stage 2 or stage 3.
(c) The provision for bad debts in the current year amounted to RMB47,748, of which none was
collected or reversed.
(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 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(2) Other receivables (Cont’d)
(e) As at 31 December 2023, the top five other receivables ranked by remaining balances were
analysed as follows:
Provision
% of total for bad
Nature Balance Aging balance debts
Receivables from
refund of social
Company 1 insurance 23,958,000 within 1 year 33% -
Advances
classified as
Company 2 expenses 12,769,141 within 1 year 18% (99,406)
Receivable from
Company 3 subsidiary 9,679,410 Over 1 year 13% -
Import working
Company 4 capital, etc. 8,636,151 within 1 year 12% (67,362)
Receivables
from disposal of
Company 5 assets, etc. 4,614,745 Over 1 year 6% (35,995)
(3) Long-term equity investments
Subsidiaries (a) 2,858,943,493 2,807,943,493
Associates (b) 228,949,338 243,633,812
Less: Provision for impairment of long-term
equity investments for subsidiaries (c) (2,301,440,553) (1,905,543,493)
Provision for impairment of long-term
equity investments for associates - -
(2,301,440,553) (1,905,543,493)
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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) 51,000,000 51,000,000 102,000,000 - - 102,000,000
(b) Associates
Movements for the current year Impairment provision
Share of net
Increase in profit/(loss) Cash Voting 31 31
The Power
Company 206,206,679 - (8,728,084) - - 197,478,595 40% 40%
Hanon
Systems 37,427,133 - (863,034) (5,093,356) - 31,470,743 19.15% 33.33% - -
Total 243,633,812 - (9,591,118) (5,093,356) - 228,949,338 - -
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(3) Long-term equity investments (Cont’d)
(c) Provision for impairment of long-term equity investments
JMCH (i) (1,905,543,493) (395,897,060) - (2,301,440,553)
(i) For this subsidiary, due to the idle of its asset group due to the termination of equity transfer transaction and the lack of clear follow-up business plans,
the present value of future cash flows cannot be reliably predicted. Therefore, the net amount of fair value minus disposal expenses was used to
determine its recoverable amount of RMB385,502,940, and a provision for impairment of long-term equity investments of RMB395,897,060 was made
based on the difference between the recoverable amount and the book value as of December 31, 2023.
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(4) Revenue and cost of sales
Revenue from main operations 31,312,349,157 27,601,273,209
Revenue from other operations 1,261,348,664 499,724,240
Cost of sales from main operations 27,119,167,317 24,557,964,422
Cost of sales from other operations 399,770,964 462,474,326
(a) Revenue and cost of sales from main operations
Cost of sales Cost of sales
Revenue from from main Revenue from from main
main operations operations main operations operations
Sales of
automobiles 29,654,470,683 25,879,653,659 25,235,142,483 22,674,692,674
Sales of
automobile
parts 1,647,789,284 1,230,177,610 2,341,764,663 1,871,646,827
Automobile
maintenance
services and
others 10,089,190 9,336,048 24,366,063 11,624,921
(b) Revenue and cost of sales from other operations
Cost of sales Cost of sales
Revenue from from other Revenue from from other
other operations operations other operations operations
Sales of
materials 331,212,485 297,451,314 367,010,370 339,961,257
Others 930,136,179 102,319,650 132,713,870 122,513,069
JIANGLING MOTORS CORPORATION, LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(4) Revenue and cost of sales (Cont’d)
The breakdown of the Company’s revenue by product and service transfer time was as
(c) follows:
Automobile
Automobile maintenance Materials
Automobiles parts services, etc. and others Total
Revenue from main
operations 29,654,470,683 1,647,789,284 10,089,190 - 31,312,349,157
Including: Recognised at a
time point 29,654,470,683 1,647,789,284 - - 31,302,259,967
Recognised
within a certain
period - - 10,089,190 - 10,089,190
Revenue from other
operations (i) - - - 1,261,348,664 1,261,348,664
Automobile
Automobile maintenance Materials
Automobiles parts services and others Total
Revenue from main
operations 25,235,142,483 2,341,764,663 24,366,063 - 27,601,273,209
Including: Recognised at a
time point 25,235,142,483 2,341,764,663 - - 27,576,907,146
Recognised
within a certain
period - - 24,366,063 - 24,366,063
Revenue from other
operations (i) - - - 499,724,240 499,724,240
(i) The Company’s revenue from other operations includes sales of materials and technical
service provided. Revenue from sales of materials is recognised at a certain time point, and
revenue from technical service provided is recognised within a certain period.
As at 31 December 2023, the amount of revenue corresponding to the performance
obligations that the Company had contracted but had not commenced or completed was
RMB29,190,915, which the Company expected that would be recognised as revenue in
(5) Investment income
Investment gain/(loss) from forward exchange
settlement 6,757,648 (13,534,785)
Losses on discount of financing receivables
eligible for derecognition (14,484,240) (12,990,879)
Losses on long-term equity investments under
equity method (9,591,118) (8,768,433)
(17,317,710) (35,294,097)
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 2023
(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 565,157,410
Gains or losses on disposal of non-current assets (7,453,268)
Fund occupation fees received from non-financial
institutions 11,289,415
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 6,052,713
Net amount of other non-operating income and
expenses 6,379,649
One-off expenses incurred due to discontinuation
of related business activities (11,097,866)
Effect of income tax (89,195,274)
Effect of gains or losses on minority interests (net
of tax) (772,350)
(1) Basis for preparation of statement of non-recurring profit or loss for 2023
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. The Group have prepared the statement of non-recurring profit
or loss for 2023 in accordance with the requirements in the 2023 Explanatory
Announcement No. 1.
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 2023
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Government grants recognised in profit or loss
for the current period 943,326,556
Gains or losses on disposal of non-current
assets 389,251,475
Fund occupation fee received from non-
financial institutions 13,827,410
Gains or losses arising from changes in fair
value of financial assets and liabilities held
at fair value through profit or loss, and
investment losses on disposal of related
financial assets and liabilities 1,424,039
Net amount of other non-operating income
and expenses 1,423,948
Reversal of provision for impairment of
receivables tested individually 110,068
Effect of income tax (204,283,363)
Effect of gains or losses on minority interests
(net of tax) (363,305)
(1) Basis for preparation of statement of non-recurring profit or loss for 2022
The Group prepared the statement of non-recurring profit or loss for 2022 in accordance
with the provisions of the 2008 Explanatory Announcement No. 1.
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 15.06% 10.28% 1.71 1.06 1.71 1.06
Net profit attributable to
ordinary shareholders
of the Company, net of
non-recurring profit or
loss 10.16% (2.58%) 1.15 (0.27) 1.15 (0.27)
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