Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
FAW JIEFANG GROUP CO., LTD
Semi-annual Report 2025
August 2025
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Section I Important Notes, Contents and Definitions
The Board of Directors and Board of Supervisors, as well as directors,
supervisors and senior executives of the Company guarantee that the contents
of the semi-annual report are true, accurate and complete, there is no false
record, misleading statement or major omission, and shall bear individual and
joint legal responsibilities.
Li Sheng, the person in charge of the Company, Yu Changxin, the person
in charge of the work related to accounting, and Yang Li, the person in charge
of the accounting organization (chief accountant) declare that they guarantee
the authenticity, accuracy and completeness of the financial report in this semi-
annual report.
Except for the following directors, others attended the board meeting to
review the semi-annual report in person.
Names of Positions of
Reasons for Not Name of the
Directors Not Directors Not
Present in Person Trustee
Present in Person Present in Person
Yu Changxin Director Work Li Sheng
This semi-annual report involves prospective statements such as future
plans, and does not constitute a substantial commitment of the Company to
investors. Investors and relevant individuals should maintain sufficient risk
awareness and understand the differences between plans, forecasts, and
commitments.
The Company has described in detail the possible risks and
countermeasures for its future development in the section of Management
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Discussion and Analysis. Investors are kindly requested to pay attention to
relevant contents. China Securities Journal, Securities Times and CNINFO
(http://www.cninfo.com.cn) are the designated information disclosure media
selected by the Company. All information of the Company is subject to that
published in the above selected media. Investors are kindly requested to pay
attention to investment risks.
The Company does not plan to pay cash dividends or bonus shares, or
convert reserves into share capital.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Table of Contents
Section IV Corporate Governance, Environment, and Social Responsibility .....36
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
List of Documents for Future Reference
(I) Financial statements were signed and sealed by the person in charge of the Company, the
person in charge of accounting and the person in charge of the accounting organization (chief
accountant).
(II) Originals of all company documents and announcements publicly disclosed during the
reporting period.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Interpretation
Item Refers to Definition
Company, the Company, FAW
Refers to FAW Jiefang Group Co., Ltd.
Jiefang
Jiefang Limited Refers to FAW Jiefang Automotive Co., Ltd.
FAW Jiefang Group International Automobile
Jiefang Group International Refers to
Co., Ltd.
FAW Africa Refers to FAW (Africa) Investment Co., Ltd.
Tanzania Ltd. Refers to Jiefang Motors Tanzania Ltd.
FAW Group Refers to China FAW Group Co., Ltd.
FAW Refers to China FAW Co., Ltd.
FAW Car Refers to FAW Car Co., Ltd.
FAW Bestune Refers to FAW Bestune Auto Co., Ltd.
Finance company Refers to First Automobile Finance Co., Ltd.
Board of Directors of FAW Jiefang Group Co.,
Board of Directors Refers to
Ltd.
Shareholders’ Meeting of FAW Jiefang Group
Shareholders’ meeting Refers to
Co., Ltd.
Board of Supervisors of FAW Jiefang Group
Board of Supervisors Refers to
Co., Ltd.
Ministry of Finance of the People’s Republic of
Ministry of Finance Refers to
China
China Securities Regulatory China Securities Regulatory Commission
Refers to
Commission (CSRC)
China Securities Depository and
Shenzhen Branch, China Securities Depository
Clearing Corporation Limited Refers to
and Clearing Corporation Limited
(CSDC)
Company Law of the People’s Republic of
Company Law Refers to
China
Securities Law of the People’s Republic of
Securities Law Refers to
China
Articles of Association of FAW Jiefang Group
Articles of Association Refers to
Co., Ltd.
Reporting Period Refers to January 1, 2025 - June 30, 2025
CNY, CNY 10,000, CNY 100
Refers to CNY, CNY 10,000, CNY 100 million
million
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Section II Company Profile and Main Financial Indicators
I. Company Profile
Stock abbreviation FAW Jiefang Stock code 000800
Stock exchanges on
Shenzhen Stock Exchange
which shares are listed
Chinese name of the
FAW Jiefang Group Co., Ltd.
Company
Chinese abbreviation
FAW Jiefang
of the Company
English name of the
FAW Jiefang Group Co., Ltd.
Company
English abbreviation
FAW Jiefang
of the Company
Legal representative
Li Sheng
of the Company
II. Contact Person and Contact Information
Secretary of the Board of Directors Securities Affairs Representative
Name Wang Jianxun Yang Yuxin
No.2259, Dongfeng Street, No.2259, Dongfeng Street,
Address Changchun Automobile Changchun Automobile
Development Zone, Jilin Province Development Zone, Jilin Province
Tel. 0431-80918881 0431-80918882 0431-80918881 0431-80918882
Fax 0431-80918883 0431-80918883
E-mail faw0800@fawjiefang.com.cn faw0800@fawjiefang.com.cn
III. Other Information
Whether the registered address, office address and postal code, website and e-mail address of the
Company have changed in the reporting period
□Applicable ?Not applicable
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
The registered address, office address and postal code, website and e-mail address of the
Company have not changed in the reporting period, please refer to the Annual Report 2024 for
details.
Whether the information disclosure and preparation location has changed in the reporting period
□Applicable ?Not applicable
There are no changes in the name and website of the stock exchange and media where the
Company discloses its semi-annual report, as well as the preparation location of the Company’s
semi-annual report during the reporting period. For details, please refer to the 2024 Annual Report.
Whether other relevant data has changed in the reporting period
□Applicable ?Not applicable
IV. Main Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of previous
years
?Yes □No
Reasons for the retroactive adjustment or restatement
Business combination under common control
Increase/D
ecrease in
This
Reporting
Same Period of Last Year Period
This reporting period over the
Same
Period of
Last Year
After
Before adjustment After adjustment
adjustment
Operating
income (CNY)
Net profit
attributable to
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shareholders of
the listed
company
(CNY)
Net profit
attributable to
shareholders of
the listed
company after -376,637,639.18 283,875,823.95 283,875,823.95 -232.68%
deducting non-
recurring
profits and
losses (CNY)
Net cash flows
from operating
activities
(CNY)
Basic earnings
per Share 0.0040 0.1034 0.1096 -96.35%
(CNY/share)
Diluted
earnings per
Share
(CNY/share)
Weighted
Reduced
average return 0.08% 1.93% 2.06%
by 1.89%
on equity
Increase/D
ecrease at
the End of
This
At the End of Last Year Reporting
At the End of This Period
Reporting Period over the
End of
Last Year
After
Before adjustment After adjustment
adjustment
Total assets
(CNY)
Net assets
attributable to
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shareholders of
the listed
company
(CNY)
V. Differences in Accounting Data under Domestic and Foreign Accounting Standards
simultaneously according to the international accounting standards and China accounting
standards
□Applicable ?Not applicable
In the reporting period of the Company, there is no difference in net profits and net assets in the
financial report disclosed according to the international accounting standards and China
accounting standards.
according to foreign accounting standards and China accounting standards
□Applicable ?Not applicable
In the reporting period of the Company, there is no difference in net profits and net assets in the
financial report disclosed according to foreign accounting standards and China accounting
standards.
VI. Items and Amounts of Non-recurring Profit and Loss
?Applicable □Not applicable
Unit: CNY
Item Amount Description
Profits or losses on disposal of non-
It refers to the net gain on
current assets (including the write-off
part of the provision for impairment of
assets.
assets made)
Government subsidies included in the
current profit or loss (except those
closely related to the Company’s 311,937,333.71
normal operations, conforming to the
State policies and regulations and
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
enjoyed in line with the specified
standards, and having a continuous
impact on the profit or loss of the
Company)
The reversal of impairment
Reversal of impairment provision for
provision for receivables
receivables subject to separate 1,802,060.86
subject to separate
impairment test
impairment test.
Non-operating income and expenses The net non-operating income
other than the above and expenses.
Less: amount affected by income tax 81,725,953.01
Amount affected by minority
-3,703.29
shareholder’s equity (after-tax)
Total 396,293,449.57
Specific conditions of other profit and loss items meeting the definition of non-recurring profit
and loss:
□Applicable ?Not applicable
There are no specific conditions of profit and loss items meeting definition of non-recurring profit
and loss for the Company.
Explanation on defining the non-recurring profit and loss items listed in the Explanatory
Announcement No.1 on Information Disclosure by Companies Issuing Securities Publicly - Non-
recurring Profit and Loss as recurring profit and loss items
□Applicable ?Not applicable
The Company does not define the non-recurring profit and loss items listed in the Explanatory
Announcement No.1 on Information Disclosure by Companies Issuing Securities Publicly - Non-
recurring Profit and Loss as recurring profit and loss items.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Section III Management Discussion and Analysis
I. Main Businesses of the Company in the Reporting Period
(I) Main business
The Company is a commercial vehicle manufacturer that produces heavy, medium and light
trucks, and buses, as well as core components such as engines, transmissions and axles, and has a
complete manufacturing system covering raw materials, core components, key large assemblies
and complete vehicles. The products of the Company are mainly used in market segments such as
traction, cargo carrying, dumping, special purposes, highway passenger transport, bus passenger
transport, etc., and the Company also provides standardized and customized commercial vehicle
products.
The Company is committed to becoming “China’s first and world-class” provider of green
and intelligent transportation solutions, focusing on the main production lines, insisting on
innovation-driven and reform-driven strategies, and creating a leading trend. Main business,
products, and business model of the Company were not changed significantly in the reporting
period.
(II) Industry Overview of the Company
In the first half of 2025, the market demand for medium and heavy trucks in China was about
remained basically flat. The accessible market demand for light trucks was about 321,000 units,
registering a year-on-year increase of 12.7%. Overseas demand witnessed its first decline in
recent years, dropping by 8%. The demand for new energy vehicles reached about 160,000 units,
achieving a substantial year-on-year growth of 136%. Overall, industry demand showed a
structural divergence characterized by stability in the domestic market, a slight decline overseas,
and rapid growth in new energy. Domestically, due to weak demand, price competition has
become even more intense.
The commercial vehicle industry is experiencing moderate growth, but factors such as the
competition in the saturated domestic market, the race for opportunities in fragmented markets,
the strategic competition in overseas exports, the positioning in the transition to new energy, and
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the value contest of technologies and solutions are overlapping and intertwining, indicating that
the industry is undergoing a stage of deep adjustment and unprecedented turbulence.
The Company’s products are mainly medium and heavy trucks, and light trucks. Energy
types cover diesel, natural gas, pure electric, fuel-electric, and hybrid; sales regions cover
domestic and overseas markets. Products are developed on shared platforms to meet market and
customer needs. Medium and heavy trucks include 12 main product series, such as J7, J6V, and
Yingzhen.
(III) Operation
Since the beginning of this year, competition in the commercial vehicle market has
intensified, with the industry overall entering a stage of stock-based competition. Meanwhile, the
energy structure is transitioning rapidly, and products are showing structural differentiation,
among other overlapping factors. Facing unprecedented challenges, the Company pressed forward
under pressure and overcame difficulties, actively planning and optimizing business strategies.
Following the annual work plan firmly, it fully implemented the “project-based system” and
vigorously promoted the “Seven Spirits,” achieving positive results in business operations and
reform and development. In the first half of 2025, the Company maintained the leading domestic
market share for medium and heavy trucks, while overseas exports effectively expanded toward a
more balanced market distribution.
As of June 30, 2025, the Company’s total assets amounted to CNY 79.663 billion,
representing a year-on-year increase of 9.50%, and the net assets attributable to shareholders of
the listed company were CNY 26.141 billion, representing a year-on-year decrease of 0.67%.
During the reporting period, operating revenue reached CNY 28.079 billion, a year-on-year
decrease of 23.00%; the net profit attributable to the parent company was CNY 20 million, a year-
on-year decrease of 96.12%.
Unit: CNY 100 million
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Net profit attributable to
Total assets Net Assets Operating income
shareholders of the parent company
Note: All data in the chart are in CNY 100 million.
In the second half of the year, the Company will firmly implement its strategy and annual
work plan, adhere to a customer-centric approach, pursue excellence through innovation and
quality, balance both volume and profitability, and focus on “quality-driven growth” in operations.
The Company will reform work styles, maintain composure, boost morale, mobilize all
employees for a full-scale effort, act with determination, accelerate the reversal of all adverse
situations, strive to achieve the annual business targets, and secure even greater results in the final
battle of the 14th Five-Year Plan.
II. Analysis of Core Competitiveness
The Company adheres to the corporate vision of “being the most proud commercial vehicle
enterprise and the most trustworthy commercial vehicle brand”, the mission of “becoming
China’s first and world-class provider of green and intelligent transportation solutions and
building a more prosperous society”; the Company takes products and services as the main task,
customers and employees as the foundation, innovation and reform as the driving force; the
Company focuses on industry trends and customer needs, and rapidly enhances product
competitiveness and service levels.
system for commercial vehicles. Guided by “leading technology, pioneering experience,
integrated innovation, enhanced application, and collaborative efficiency,” the Company has built
a comprehensive independent R&D system in China, covering forward-looking technologies,
engines, transmissions, axles, and complete vehicles, and has formed an efficient and
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
collaborative R&D team of over 3,000 people. The Company has the Xianhu National Key
Laboratory, an Academician Workstation, and the Wuxi Postdoctoral Workstation. It possesses
five core capabilities: technological innovation, performance development, lean design, pilot
testing, and experimental certification, and has established five technical platforms: energy-saving
and environmental protection, safety and comfort, reliability and durability, electronic control and
intelligence, and materials and processes. It is the only commercial vehicle enterprise in China
that masters the core technologies of world-class complete vehicles and the three major
powertrains, and has passed ISO9001 and IATF16949 quality system certifications. It also serves
as a national-level independent automobile product R&D and test certification base. The
Company has established Changchun as its global R&D headquarters, with R&D capabilities for
light, medium, and heavy trucks in Qingdao; engine R&D bases in Wuxi and Dalian; and
advanced technology R&D departments in Steyr, Austria and Munich, Germany, forming a global
R&D layout of “four countries and nine locations.” In recent years, by accurately understanding
the demand in segmented markets, the Company has successfully developed ten core product
technology advantages, including fuel efficiency, extended oil change intervals, lightweight
design, independent major components, autonomous electronic control, autonomous after-
treatment, new energy, intelligent driving, long-term durability, and maintenance-free features.
These achievements have enabled the Company to maintain a leading position in the highly
competitive market.
taken the lead in establishing a comprehensive marketing service system. The three sales
companies - Changchun Medium and Heavy Truck, Qingdao Medium and Heavy Truck, and
Light Truck - are supported by a nationwide marketing service network comprising nearly 1,000
dealers, over 1,800 service providers, more than 230 parts suppliers, and nearly 100 parts centers.
This network covers over 260 prefecture-level cities, with a 99% coverage rate in cities with more
than 1,000 vehicle capacity, and an average national service radius of 48.5 kilometers,
representing an industry-leading level and providing customers with 24-hour all-weather efficient
and high-quality services. The Company is committed to integrating global high-quality resources
to provide a strong guarantee for the high reliability of Jiefang trucks. In recent years, the
Company has become strategic partners with top enterprises at home and abroad, including
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Huawei, Knorr-Bremse, ZF, Shell, Bosch, CATL, VOSS, China Unicom, CATARC, and Xiamen
C&D.
system in China from raw materials to core components, from key assemblies to complete
vehicles, and its processing and manufacturing depth ranks the top in the industry. The Company
operates five major vehicle manufacturing bases in Changchun, Qingdao, Guanghan, Liuzhou,
and Foshan, with a production capacity of about 418,000 units. It also maintains three major
powertrain component manufacturing bases in Changchun, Wuxi, and Dalian, independently
controlling the core competitiveness and production capabilities of engines, transmissions, and
axles within the smart powertrain domain. The product competitiveness is at an advanced level.
Among these facilities, the Wuxi Diesel Engine Factory features three major product series -
Aowei, Bowei, and Jinwei - achieving world-class manufacturing standards. Besides, the
Company has been deeply engaged in four major fields: intelligent vehicles, new energy, Internet
of Vehicles, and the aftermarket, and has established six new business bases in Suzhou, Nanjing,
Tianjin, Wuxi, Shijiazhuang, and Foshan.
every effort to expand overseas markets. At present, its exports cover 100 countries and regions
worldwide, forming a multi-level layout with Southeast Asia, Africa, Latin America, the Middle
East, Eastern Europe and Central Asia as the foundation, while gradually penetrating Japan, South
Korea, and the high-end European markets. The Company has continued to accelerate its global
expansion, establishing FAW Jiefang International in 2024, completing the acquisitions of FAW
South Africa Investment and Tanzania Company, and in December 2024, launching the
“SPRINT2030” internationalization strategy at the Global Partners Conference. This strategy
comprehensively sets out six international initiatives: global presence, multi-brand operations,
technology leadership, business innovation, win-win cooperation, and people-oriented
development. At present, the Company has more than 120 primary distributors and nearly 300
service outlets worldwide. The Company has established overseas subsidiaries in countries such
as South Africa and Tanzania, and exports models including J7, J6, JH6, and Tiger V. Meanwhile,
the Company is continuously accelerating localized overseas operations. In 2025, it will initiate
the establishment of subsidiaries in eight countries, including Uzbekistan, Indonesia, Vietnam,
and Saudi Arabia, to fully support the implementation of its internationalization strategy.
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trucks, SPVs and buses. These product lines encompass three major technological routes: EVs,
FCVs and hybrid vehicles, achieving full coverage of key segment markets for new energy
commercial vehicles, such as steel mills, coal and slag. Product development adheres to a user-
oriented approach, aiming to meet market demand and address user pain points. It focuses on the
“three-low and one-high” core competitiveness - low cost, low self-weight, low energy
consumption, and high reliability - as well as differentiated competitiveness characterized by long
endurance, low-temperature resistance, high intelligence, and high comfort, continuously iterating
and upgrading its products and technologies. In terms of core technology, the Company has
achieved integration across three critical areas: vehicle architecture, vehicle control software, and
assembly interface. This integration significantly improves development efficiency. The
Company harnesses technologies such as efficient energy recovery and scenario-based calibration
to significantly reduce energy consumption. Moreover, the application of assembly technology
incorporates a dual-wheel drive system that combines independent core assemblies with external
high-quality social resources, enabling complementary advantages. By continuously exploring
and applying new products, technologies and processes, the Company aims to maintain a leading
position in both new energy technology and new energy products in the market. By continuously
exploring and applying new products, technologies, and processes, the Company continuously
maintains FAW Jiefang’s new energy products at a leading technical and product position in the
market.
III. Analysis of Main Business
General
See relevant contents of “I. Main Businesses of the Company in the Reporting Period”.
Year-on-Year Changes of Main Financial Data
Unit: CNY
Year-on-year
Same Period of Last
This reporting period increase and Reason for Change
Year
decrease
Operating
income
Operating
Costs
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Sales expenses 472,042,436.11 520,770,818.03 -9.36%
Administrative
expenses
Mainly due to the
decrease in interest
Financial income and the
-252,849,223.59 -410,085,699.92 38.34%
expenses increase in foreign
exchange losses in
the current period.
Income tax
-175,154,040.98 -148,541,602.52 -17.92%
expenses
R&D
investment
Mainly due to the
increase in cash
Net cash flows
received from sales
from operating 7,635,289,020.71 4,420,911,705.11 72.71%
of goods and
activities
rendering of services
in the current period.
Mainly due to an
increase in cash
Net cash flows
received from
from
-162,885,381.88 -779,697,145.28 79.11% investment gains and
investment
a decrease in cash
activities
paid for investments
during the period.
Mainly due to a
Net cash flows decrease in cash
from financing -248,323,979.67 -705,678,116.75 64.81% dividends distributed
activities during the current
period.
Mainly due to the
increase in cash
Net increase in
received from sales
cash and cash 7,231,688,786.55 2,942,820,578.09 145.74%
of goods and
equivalents
rendering of services
in the current period.
Mainly due to the
Monetary increase in cash and
capital cash equivalents in
the current period.
Financial assets Mainly due to
held for trading interest income
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accrued from
structured deposits.
Mainly due to the
decrease in bank
Notes
receivable
at the end of the
period.
Mainly due to the
Accounts decrease in bank
receivable 6,250,344,325.45 10,019,816,248.98 -37.62% acceptance bills held
financing at the end of the
period.
Mainly due to the
increase in notes
Notes payable 21,803,140,258.04 15,370,906,363.16 41.85%
payable in the
current period.
Mainly due to the
decrease in
Employee
employee
compensation 421,898,208.98 1,043,554,896.06 -59.57%
compensation
payable
payable in the
current period.
Mainly due to the
Current portion decrease in the
of non-current 12,714,703.34 29,941,701.02 -57.54% current portion of
liabilities non-current
liabilities.
Mainly due to the
decrease in lease
Lease liabilities 7,387,319.62 27,431,600.64 -73.07%
payments in the
current period.
Mainly due to the
repurchase and
cancellation under
Treasury shares 0.00 6,246,851.73 -100.00%
the restricted stock
incentive plan in the
current period.
Mainly due to the
Other increase in other
comprehensive -43,400,118.30 -96,912,346.71 55.22% comprehensive
incomes income in the current
period.
Taxes and Mainly due to the
surcharges increase in taxes and
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
surcharges in the
current period.
Mainly due to the
increase in
government grants
Other income 524,635,067.40 353,779,659.32 48.29% and additional VAT
deductions
recognized in the
current period.
Mainly due to the
Investment decrease in
-30,115,859.77 101,886,844.66 -129.56%
income investment income
in the current period.
Mainly due to the
increase in
Credit
impairment
impairment -30,655,705.99 -8,593,082.48 256.75%
provision of
loss
receivables in the
current period.
Mainly due to the
increase in
Impairment impairment
-151,608,226.07 -108,034,774.17 40.33%
loss on assets provision for
inventories in the
current period.
Mainly due to the
Income from increase in gains
assets disposal from assets disposal
in the current period.
Mainly due to the
Non-operating decrease in non-
income operating income in
the current period.
Mainly due to the
Non-operating decrease in non-
expenses operating expenses
in the current period.
Mainly due to the
Net after-tax
increase in fair value
amount of
of investments in
other 61,192,422.39 134,961.61 45,240.61%
other equity
comprehensive
instruments in the
income
current period.
Significant changes in the Company’s profit composition or source during the reporting period
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
□Applicable ?Not applicable
No significant changes in the Company’s profit composition or source during the reporting period.
Composition of operating income
Unit: CNY
This reporting period Same Period of Last Year
Year-on-
Proportion Proportion year
in in increase and
Amount Amount
Operating Operating decrease
Income Income
Total
operating 28,078,705,058.07 100% 36,465,688,621.29 100% -23.00%
income
By industries
Automob
ile 28,078,705,058.07 100.00% 36,465,688,621.29 100.00% -23.00%
industry
By products
Commer
cial 26,082,500,525.92 92.89% 34,560,180,525.91 94.77% -24.53%
vehicles
Spare
parts and 1,996,204,532.15 7.11% 1,905,508,095.38 5.23% 4.76%
others
Information on industries, products or regions accounting for more than 10% of the Company’s
operating income or operating profit
?Applicable □Not applicable
Unit: CNY
Increase/ Increase/ Increase/
Decrease Decrease Decrease
of of of Gross
Gross Operatin Operatin Profit
Operating income Operating Costs Profit g Income g Cost Rate
Rate over the over the over the
Same Same Same
Period of Period of Period of
Last Year Last Year Last Year
By industries
Autom 27,347,477,621.24 26,277,912,207.22 3.91% -23.28% -22.04% -1.53%
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obile
industr
y
By products
Comme
rcial
vehicle
s
Spare
parts
and
others
The main business data of the Company is adjusted at the end of the latest reporting period if the
statistical caliber of the Company’s main business data is adjusted in the reporting period
□Applicable ?Not applicable
IV. Analysis of Non-main Business
□Applicable ?Not applicable
V. Analysis of Assets and Liabilities
Unit: CNY
At the End of This Reporting Desc
End of Last Year
Period ripti
Increas
on
e/Decre
of
Proportio Proportio ase in Maj
Amount n in Total Amount n in Total Proport or
Assets Assets ion
Cha
nges
Monetary
capital
Accounts
receivable
Contract assets 14,535,632.85 0.02% 14,455,542.05 0.02% 0.00%
Inventories 12,268,923,565.48 15.40% 10,117,213,109.97 13.91% 1.49%
Investment
properties
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Long-term
equity 1,161,550,784.02 1.46% 1,176,288,461.09 1.62% -0.16%
investments
Fixed assets 10,608,424,359.95 13.32% 11,198,300,572.20 15.39% -2.07%
Project under
construction
Right-of-use
assets
Contract
liabilities
Lease liabilities 7,387,319.62 0.01% 27,431,600.64 0.04% -0.03%
□Applicable ?Not applicable
?Applicable □Not applicable
Unit: CNY
Profit Prov
s and ision Purc Sale
losses for hase s
from amo
impa unt amo Ot
chang Accumulated irme unt her
Item Beginning es in changes in fair in
nt in the in cha Closing balance
balance fair value through the
the curre curre nge
value equity
for the curr nt nt s
curren ent
t peri peri
od
peri
od
period od
Financi
al
assets
Investm
ent in
other 540,066,528.00 49,563,864.00 589,630,392.00
equity
instrum
ents
Total 540,066,528.00 49,563,864.00 589,630,392.00
Financi
al 0.00 0.00
liabiliti
es
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Content of other changes
Whether the measurement attribution of the Company’s main assets within the Reporting Period
was significantly changed or not
□Yes ?No
For details, please refer to Note 24 “Assets with restricted ownership or use right” in Part VII
“Notes to Items in Consolidated Financial Statements” of Section VIII - Financial Report.
VI. Investment Analysis
?Applicable □Not applicable
Investment Amount in the Investment Amount in the Same
Variation range
Reporting Period (CNY) Period of Previous Year (CNY)
□Applicable ?Not applicable
□Applicable ?Not applicable
(1) Securities investment
□Applicable ?Not applicable
The Company has no securities investment in the reporting period.
(2) Derivatives investment
□Applicable ?Not applicable
The Company has no derivative investment in the reporting period.
?Applicable □Not applicable
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(1) Use of proceeds
?Applicable □Not applicable
Unit: CNY 10,000
C
A
u
m
m
ou
ul
nt
at
of
iv
Gros pr
e
s of Perce oc
Utilizat gr Alloc
proc ntage ee
ion rate o ation
Gross of eeds of ds
as of ss and
proceeds repu cumul un
the end of Total intend
Fundr Securitie utilized Cumulative rpos ative ut
Fundraisin Gross of Net of of pr unused ed use
aising s listing during utilized ed gross ili
g method proceeds proceeds (1) reportin o gross of of
year date current proceeds (2) duri of ze
g c proceeds unuse
reporting ng proce d
period e d
period repo eds fo
(3) = e proce
rting repurp r
(2)/(1) d eds
peri osed ov
s
od er
re
tw
p
o
ur
ye
p
ar
o
s
se
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
d
The
funds
are
held
in a
dedica
ted
fundra
ising
accou
Private
October nt,
of shares
segme
nt
curren
tly
alloca
ted for
cash
mana
geme
nt.
Total -- -- 200,000 199,781.34 11,762.14 197,323.69 98.77% 0 0 0.00% 2,648.92 -- 0
Description on use of proceeds
As approved by the China Securities Regulatory Commission in its “Reply on Approving FAW Jiefang Group Co., Ltd.’s Private Placement
of Shares Registration” (CSRC Permit [2024] No.972) and with consent from the Shenzhen Stock Exchange, the Company issued 298,507,462
ordinary shares (A shares) to specific investors through the Shenzhen Stock Exchange system via the lead underwriter China International
Capital Corporation Limited (hereinafter “CICC”), at an issue price of CNY 6.7 per share. The gross proceeds totaled CNY 1,999,999,995.40,
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
and after deducting issuance expenses of CNY 2,186,599.36 (excluding VAT), the net proceeds amounted to CNY 1,997,813,396.04. The above
net proceeds have been verified by Grant Thornton Certified Public Accountants (Special General Partnership) in their “Verification Report.”
As of June 30, 2025, the Company has cumulatively invested CNY 1,973,236,858.68 of the proceeds into the fundraising projects, with a
remaining balance of CNY 26,489,160.94 (including pending payment of issuance expenses and interest income). Of this balance, CNY
On April 29, 2025, the Company held the 25th meeting of the 10th Board of Directors and the 21st meeting of the 10th Board of
Supervisors, during which the “Proposal on the Postponement of Certain Fundraising Investment Projects” was reviewed and approved. In light
of the actual construction progress of the fundraising investment projects, and with no change to the implementing entities, locations, investment
purposes, or total committed fundraising investment amounts, it was agreed to postpone the completion date of the fundraising project “FAW
Jiefang Wuxi R&D Base Construction Project” to June 30, 2026, and to postpone the completion date of the fundraising project “FAW Jiefang
Transmission Division Axle Base Construction Project and Heavy-Duty Replacement Axle Technology Upgrade (Phase I)” to April 30, 2025.
As of June 30, 2025, the following projects have been completed with no surplus funds: FAW Jiefang Commercial Vehicle 2022 New
Energy Intelligent Connected R&D Capability Enhancement Project; FAW Jiefang Qingdao Base R&D Capability Enhancement Project; FAW
Jiefang Qingdao Vehicle Division Light Vehicle Frame Business Integration and Technology Upgrade Project; FAW Jiefang Qingdao Vehicle
Division Jimo Factory Sheet Metal Stamping Capacity Expansion Project; FAW Jiefang Qingdao Vehicle Division Cab Painting Line
Environmental Protection Technology Upgrade Project; FAW Jiefang Transmission Division Integrated Heavy-duty AMT Transmission
Technology Transformation Project; New 13L and M Series Engine Shared Production Line Technology Transformation Project; and FAW
Jiefang Transmission Division Axle Base Construction Project and Heavy-Duty Replacement Axle Technology Upgrade (Phase I) Project.
(2) Proceeds allocation to committed projects
□Applicable ?Not applicable
(3) Changes to proceeds-funded projects
□Applicable ?Not applicable
The Company had no changes to proceeds-funded projects during the reporting period.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
VII. Sales of Major Assets and Equity
?Applicable □Not applicable
Relat Whet
Pr R
ionsh her
ic el Whet Whether
ip All
Net Profit in at her Impleme
with Prope
Contributed Proportion g ed All nted as
the rty
by the Asset of Net Pr P Credi Schedule
Coun Right
to the Listed Profit in ar ts d. If Not,
terpar s of
Company Contributed ci ty and Provide
Date Transaction ty the Date of
Counte Assets from the Effect of Sale on by Asset pl Tr Debts the Disclosure
of Price (CNY (Appl Asset Disclos
rparty Sold Beginning of the Company Sales to the e an Invol Reasons Index
Sale 10,000) icabl s ure
the Current Listed of sa ved and the
e to Invol
Period to the Company in A ct Have Measure
Relat ved
Date of Sale the Total ss io been s Taken
ed Have
(CNY Net Profit et n Trans by the
Party been
Trans Trans
al N d y
actio ferre
e ot
n) d
Releva This https://www
Sanhe nt expropriation is A .cninfo.com.
Sub- buildin part of ss cn/new/disc
district gs, government et losure/detail
Office, land, planning. The ap ?plate=szse
Xindu and land and pr &orgId=gss
Marc March
District ancillar buildings were ai N z0000800&
h 31, 21,506.21 15,646.77 382.87% N/A Yes Yes Yes 08,
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s faciliti meet the l 000800&an
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ment, FAW needs of the ic Id=1222743
Cheng Jiefang Chengdu Ring in 269&annou
du Autom Ecological Zone. g ncementTim
otive As a passive e=2025-03-
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Co., transaction, the 08
Ltd., Company has
located actively
in responded to the
Xindu government’s
District ecological
, protection
Cheng planning and
du cooperated with
the
implementation
of this work. It is
expected that this
will not affect the
normal
production and
operations of the
Company and
FAW Jiefang
Co., Ltd.
□Applicable ?Not applicable
VIII. Analysis on Principal Holding and Joint-stock Companies
?Applicable □Not applicable
Major subsidiaries and joint-stock companies affecting over 10% net profit of the Company
Unit: CNY 100 million
Company Company Registered Operating Operating
Main business Total Assets Net Assets Net Profit
Name Type Capital income Profit
FAW Jiefang Subsidiaries Development, 108.03 594.48 183.63 179.12 1.30 3.60
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Automotive manufacturing
Co., Ltd. and sales of
vehicles and
parts
Acquisition and disposal of subsidiaries in the reporting period
□Applicable ?Not applicable
Description of main holding and joint-stock companies: none
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
IX. Structured Entities Controlled by the Company
□Applicable ?Not applicable
X. Risks Faced by the Company and Countermeasures
(1) Market competition risk
The domestic commercial vehicle market, particularly in the heavy-duty truck segment, is
highly competitive. Leading enterprises leverage strong brand equity, robust R&D capabilities,
and extensive sales channels to continuously consolidate their advantages. They not only optimize
product performance but also meet diversified market demands by launching new energy vehicles
and intelligent connected products. Meanwhile, numerous capable companies and cross-industry
competitors are actively competing in niche markets to capture market share. In this context, the
Company faces challenges of product homogeneity and intense price competition. If differentiated
products are not launched in a timely manner, the Company may be at a disadvantage in market
competition. The likelihood of engaging in price wars increases, market share may be eroded, and
the current advantages in the market are challenged.
(2) New Energy Market Risk
The new energy commercial vehicle market is rapidly developing, with penetration
continuously increasing. The R&D of new energy commercial vehicles requires significant
investment of capital and human resources, and technologies are rapidly evolving. If the
Company cannot keep pace with industry technological developments, it may face deficiencies in
areas such as battery range, charging infrastructure, and intelligent applications, making it
difficult to meet consumers’ performance expectations for new energy commercial vehicles.
Additionally, market promotion and after-sales services for new energy commercial vehicles also
present challenges. Insufficient preparation in these areas may result in low consumer recognition
of the Company’s new energy products, adversely affecting product sales and market share, and
causing the Company to miss opportunities in the new energy market.
(3) Policy change risk
Policies at both the national and local levels for the commercial vehicle industry are
frequently adjusted. In terms of environmental regulations, the gradual implementation of the
National VII emission standards imposes higher requirements on vehicle exhaust emissions,
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
necessitating significant investment in technological upgrades to meet the new standards.
Regarding traffic rights, some cities provide greater access privileges to new energy commercial
vehicles while restricting the operating areas and times for traditional fuel commercial vehicles.
Failure to respond effectively to policy changes may result in product compliance risks, making it
impossible to sell or operate products in certain regions. Meanwhile, changes in policy subsidies
can affect the market price of new energy commercial vehicles and consumers’ purchasing
intentions, posing challenges to the Company’s sales strategies and funding costs.
(4) Overseas Market Risk
The overseas market is becoming increasingly important for commercial vehicle enterprises,
and the Company may face various obstacles in expanding abroad. First, sluggish global
economic growth and declining market demand in certain countries and regions make commercial
vehicle exports more difficult. Second, the rise of trade protectionism, with some countries
imposing trade barriers or raising tariffs, restricts the import of foreign commercial vehicles,
impacting the Company’s overseas market deployment. Third, differences in regulatory standards,
cultural habits, and market demands across countries and regions pose challenges. If the Company
fails to understand and adapt to these differences, it may struggle to meet local market
requirements in product development, marketing, and after-sales service, thereby affecting its
competitiveness in overseas markets.
To address the above risks, the Company has formulated the following measures:
reinforce specialized R&D teams, focusing on cutting-edge technologies such as new energy and
intelligent systems to develop products with unique advantages. Conduct in-depth market research
and, targeting different market segments, launch differentiated products to meet customers’
personalized needs, enhance product added value, and improve market competitiveness.
energy business, clarifying technological routes and development goals. Establish strategic
partnerships with key collaborators, optimize the supply chain system, and reduce the cost of new
energy products. Strengthen market promotion and after-sales services for new energy products,
establish a comprehensive after-sales network, promptly address issues encountered by customers,
and enhance customer satisfaction and brand reputation.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
policy developments, thoroughly interpret regulations, and proactively anticipate their impact on
the Company’s business. Adjust company strategies and product planning in a timely manner
according to policy changes to ensure products comply with regulations and to actively seek
policy support.
a thorough understanding of the target markets’ economic conditions, regulatory standards,
cultural habits, and market demands, and formulate targeted strategies. Strengthen cooperation
with local dealers and partners, fully utilize local resources, and establish localized production,
sales, and after-sales service systems to improve product adaptability and market responsiveness.
Actively address trade barriers and enhance communication and coordination with industry
associations and government authorities to safeguard the Company’s legitimate rights and
interests in overseas markets.
Company to improve work efficiency, establish a scientific management and control system, and
motivate employees’ initiative and innovation. Strengthen cost management, optimize production
processes, reduce production and operating costs, and improve the Company’s profitability and
risk resistance.
XI. Implementation Status of Market Capitalization Management System and Valuation
Enhancement Plan
Whether the Company established a market capitalization management system.
?Yes □No
Whether the Company disclosed a valuation enhancement plan.
□Yes ?No
In accordance with Article 8 of the “Regulatory Guidelines for Listed Companies No.10 -
Market Capitalization Management” issued by the China Securities Regulatory Commission,
which stipulates that “Companies included in major indices shall establish a market capitalization
management system...” As a constituent of the CSI 300 Index, the Company has formulated a
“Market Capitalization Management System” in accordance with relevant regulations. The main
contents include: General Provisions, Market Capitalization Management Organizations and
Personnel, Principal Methods of Market Capitalization Management, Monitoring and Early
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Warning Mechanisms and Emergency Measures, and Supplementary Provisions. On December
“Proposal on Establishing the ‘Market Capitalization Management System’”.
XII. Implementation of the “Improvement of Both Quality and Return” Action Plan
Whether the Company disclosed the “Improvement of Both Quality and Return” action plan.
?Yes □No
The “Improvement of Both Quality and Return” action plan is prepared in order to
implement the guiding ideologies of “activating the capital market and boosting investors’
confidence” as proposed at the meeting of the Political Bureau of the Central Committee of the
CPC and of “vigorously improving the quality and investment value of listed companies, taking
more powerful and effective measures, and focusing on market stability and confidence stability”
as proposed in the executive meeting of the State Council, safeguard the interests of all
shareholders, enhance the investors’ confidence and promote the long-term sound and sustainable
development of the Company. For details, please refer to the Announcement on the
“Improvement of Both Quality and Return” Action Plan published by the Company in the
Securities Times, China Securities Journal and CNINFO (http://www.cninfo.com.cn) on March 2,
The Company consistently prioritizes high-quality development as its core theme. It is
committed to advancing its main business and aspires to establish itself as a leading brand. The
Company places a strong emphasis on product leadership, continuously innovating and driving
reforms. It actively pursues the mastery of key core technologies, constantly striving to conquer
new frontiers. It is accelerating towards its goal of becoming “China’s first and world-class”
green and intelligent transportation solution provider, as well as a century-old national automobile
brand. The Company constantly consolidates its corporate governance structure, improves its
internal control system, promotes the standardized and efficient operation of the “shareholders’
meeting, Board of Directors and Board of Supervisors”, and gives full play to the role of various
governance subjects, thus ensuring scientific and effective decision-making. The Company
strictly abides by laws, regulations and regulatory agency provisions, continuously improves the
information disclosure quality, highlights the importance and pertinence of information disclosure,
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
fully demonstrates the intrinsic value of the Company, and provides investors with an objective
decision-making basis.
The Company actively responds to national policies to strengthen capital market
development and enhance investor returns. Taking into account the Company’s actual situation,
the 2024 annual profit distribution plan is formulated as follows: Based on 4,921,280,975 shares
of the Company, a cash dividend of CNY 0.50 (tax inclusive) will be distributed to all
shareholders for every 10 shares held, totaling CNY 246,064,048.75 (tax inclusive). The
remaining undistributed profits will be carried forward to the next accounting year. The Company
does not convert its capital reserves into share capital. The ex-dividend date for this distribution is
set for June 17, 2025.
Besides, the Company attaches great importance to investor relations management. Through
multiple channels such as public announcements, broker strategy meetings, investor
communications, interactive platforms, telephone, and email, the Company ensures effective
communication with investors and establishes a transparent and efficient communication platform.
On March 31, 2025, the Company held the 2024 annual performance communication meeting in
Beijing; on April 14, it held the 2024 annual performance briefing; and on May 27, it participated
in the “2025 Jilin Region Listed Companies Online Investor Reception Day” event. The
Company’s management addressed investors’ concerns comprehensively and showcased the
Company’s image and potential from multiple dimensions.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Section IV Corporate Governance, Environment, and Social
Responsibility
I. Changes in Directors, Supervisors and Senior Management of the Company
?Applicable □Not applicable
Name Position Type Date Reason
Yu
Director Elected March 06, 2025
Changxin
Employee Departure from Statutory
Xu Haigen March 17, 2025
Supervisor office retirement
Employee
Li Risheng Elected March 26, 2025
Supervisor
Qiao Employee
Elected March 26, 2025
Xiaobing Supervisor
Deputy
Wang
General Appointed May 26, 2025
Zhiyu
Manager
Note:
Non-independent Directors,” nominating Mr. Chang Xin as a candidate for non-independent
director of the Company. This matter was approved at the first extraordinary shareholders’
meeting of 2025 held on March 6, 2025.
Supervisors,” stating that Mr. Xu Haigen resigned from his position as Company Supervisor upon
reaching the statutory retirement age.
Employee Supervisors of the Board of Supervisors,” electing Mr. Li Risheng and Mr. Qiao
Xiaobing as Employee Supervisors of the Company’s Board of Supervisors.
the appointment of the Company’s Deputy General Manager was reviewed and approved,
appointing Mr. Wang Zhiyu as Deputy General Manager of the Company.
For details, please refer to the announcements by the Company in the Securities Times,
China Securities Journal and CNINFO (http://www.cninfo.com.cn).
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
II. Profit Distribution and Transfer from Capital Reserve to Share Capital in the Reporting
Period
□Applicable ?Not applicable
The Company does not plan to pay cash dividends or bonus shares, or convert reserves into share
capital in the first half of the year.
III. Implementation of the Company’s Equity Incentive Plan, Employee Stock Ownership
Plan or Other Employee Incentive Measures
?Applicable □Not applicable
On March 28, 2025, the Company held the 24th Meeting of the 10th Board of Directors and
the 20th Meeting of the 10th Board of Supervisors respectively, which reviewed and approved the
“Proposal on Unfulfilling Conditions for Releasing Restricted Share for the Third Release Period
of Restricted Shares Reserved for Granting in Phase I Restricted Share Incentive Plan and
Repurchase and Cancellation of Some Restricted Shares and Adjustment of Repurchase Price,”
agreeing to repurchase and cancel the restricted stocks of 30 incentive participants who did not
satisfy the release conditions, totaling 1,090,201 shares. On April 18, 2025, the proposal was
reviewed and approved at the Company’s 2024 Annual Shareholders’ Meeting. The Company has
completed the above-mentioned repurchase and cancellation of shares, and disclosed the
“Announcement on the Completion of Repurchase and Cancellation of Some Restricted Shares”
on June 10, 2025.
For details of the above proposals, please refer to the relevant announcements published by
the Company in Securities Times, China Securities Journal and CNINFO
(http://www.cninfo.com.cn).
□Applicable ?Not applicable
□Applicable ?Not applicable
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
IV. Environmental Information Disclosure
Whether the listed company and its major subsidiaries are included in the list of enterprises
required by law to disclose environmental information
?Yes □No
Number of enterprises included in the list of companies
required by law to disclose environmental information
Index for Querying Environmental
S/N Name of the Enterprise
Information Disclosure Reports
FAW Jiefang Automotive Co., Ltd. (Truck
Factory)
FAW Jiefang Automotive Co., Ltd. Transmission
Branch
FAW Jiefang Automotive Co., Ltd. Transmission
Branch (Old Axle Workshop Area)
FAW Jiefang Automotive Co., Ltd. Changchun
Intelligent Bus Branch
http://221.214.62.226:8090/Environ
mentDisclosure/enterpriseRoster/ope
nEnterpriseDetails?comDetailFrom=
http://ywxt.sthjt.jiangsu.gov.cn:1818
webapp/web/viewRunner.html?viewI
d=http%3A%2F%2Fywxt.sthjt.jiang
su.gov.cn%3A18181%2Fspsarchive-
Wuxi Diesel Engine Works of FAW Jiefang webapp%2Fweb%2Fsps%2Fviews%
Automotive Co., Ltd. 2Fyfpl%2Fviews%2FyfplEntInfo%2
Findex.js&year=2024&ticket=afb38e
sionId=DF7D0088C75C4C6C904C4
http://ywxt.sthjt.jiangsu.gov.cn:1818
webapp/web/viewRunner.html?viewI
d=http%3A%2F%2Fywxt.sthjt.jiang
Wuxi Diesel Engine Huishan Factory of FAW su.gov.cn%3A18181%2Fspsarchive-
Jiefang Automotive Co., Ltd. webapp%2Fweb%2Fsps%2Fviews%
Findex.js&year=2024&ticket=5eced
a49250740bdb947c7917c006a64&ve
rsionId=E4F8C5FCD30846819DFE
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
https://103.203.219.138:8082/eps/ind
ex/enterprise-
FAW Jiefang Automotive Co., Ltd. Sichuan more?code=91510681MABQ7AKG
Branch 4Y&uniqueCode=ef29d76e7549427
c&date=2024&type=true&isSearch=
true
https://103.203.219.138:8082/eps/ind
ex/enterprise-
FAW Jiefang Automotive Co., Ltd. Chengdu
Branch
uniqueCode=d17812444b6e628b&d
ate=2024&type=true&isSearch=true
https://sthj.deing.cn:8180/Public/Ent
er/682078508085253
V. Social Responsibility
In the first half of 2025, FAW Jiefang actively responded to the national Rural Revitalization
Strategy, thoroughly implemented designated assistance work, leveraged its resource advantages,
and focused on supporting the counterpart county - Zhenlai County in Jilin Province. Through
dispatching personnel, consumption-based assistance, talent empowerment, and other forms, the
Company promoted economic development in the assisted areas according to local conditions and
circumstances, advancing rural revitalization and creating a new rhythm of rural prosperity.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Section V Important Matters
I. Commitments Made by the Company’s Actual Controllers, Shareholders, Related Parties,
Purchasers and the Company to Interested Parties that will be Fulfilled in the Reporting
Period, and Commitments not Fulfilled by the End of the Reporting Period
?Applicable □Not applicable
Com
Commit mitm
Reasons for
Committed by ment Commitments Date ent Performance
Commitment
Type Perio
d
If I hold shares in FAW
Jiefang prior to this The transfer
restructuring, I will not procedures
reduce my FAW Jiefang for the target
shareholdings through assets
direct or indirect means involved in
from the date of the first this
Relevant directors,
disclosure of this transaction
supervisors and
transaction by FAW have been
senior officers of
Jiefang until its fully
listed companies
completion, nor do I have completed.
(Wu Bilei, Li
any plans to reduce FAW On April 28,
Sheng, Wang Hao,
Jiefang shares. During To the 2025, the
Liu Yanchang,
this period, if I receive compl Company
Commitment Deng Weigong,
Other additional shares due to Octobe etion disclosed the
s made Chen Hua, Han
commit FAW Jiefang’s issuance r 22, of “Announcem
during asset Fangming, Mao
ments of bonus shares, 2024 imple ent on the
restructuring Zhihong, Dong
conversion of capital menta Completion
Zhonglang, Li
reserves into share tion of Transfer of
Ying, Xu Haigen,
capital, or other such Target Assets
Wang Lijun, Duan
events, I will also abide in Major
Yinghui, Yu
by the aforementioned Asset
Changxin, Ji Yizhi,
arrangements. If the Disposal and
Wang Jianyu,
China Securities Related Party
Wang Jianxun)
Regulatory Commission Transaction.”
and the Shenzhen Stock The
Exchange implement new Company no
regulations regarding longer holds
share reduction, I will equity in
also strictly comply with FAW Finance
such relevant regulations. Co., Ltd.
Commitment China FAW Co., Other From the date of the first Octobe To the
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
s made Ltd. commit disclosure of FAW r 22, compl
during asset ments Jiefang’s restructuring 2024 etion
restructuring until its completion, the of
Company will not reduce imple
its FAW Jiefang menta
shareholdings, nor does it tion
have any plans to reduce
FAW Jiefang shares.
During this period, if the
Company receive
additional shares due to
FAW Jiefang’s issuance
of bonus shares,
conversion of capital
reserves into share
capital, or other such
events, I will also abide
by the aforementioned
arrangements. If the
China Securities
Regulatory Commission
and the Shenzhen Stock
Exchange implement new
regulations regarding
share reduction, the
Company will also
strictly comply with such
relevant regulations.
exercise shareholder
rights in accordance with
relevant laws,
regulations, and the
Articles of Association of
To the
the listed company,
compl
Commitment without exceeding its
Other Octobe etion
s made China FAW Co., authority to interfere in
commit r 29, of
during asset Ltd. the operation and
ments 2024 imple
restructuring management of the listed
menta
company, and without
tion
infringing upon the
interests of the listed
company;
commitment until the
completion of the listed
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
company’s current
restructuring, if the
Shenzhen Stock
Exchange issues new
regulatory provisions
regarding supplementary
return measures and their
commitments, and the
above commitments
cannot satisfy such
provisions, the Company
undertakes to issue
supplementary
commitments in
accordance with the latest
provisions of the
Exchange;
violates or refuses to
fulfill the above
commitments resulting in
losses to the listed
company, the Company
will bear legal
responsibility for
compensation, and agrees
to accept relevant
penalties or management
measures in accordance
with regulations and rules
established or issued by
the China Securities
Regulatory Commission,
the Shenzhen Stock
Exchange, and other
securities regulatory
authorities.
From the date of the first
disclosure of FAW To the
Jiefang’s restructuring compl
Commitment
Other until its completion, the Octobe etion
s made FAW Bestune Auto
commit Company will not reduce r 22, of
during asset Co., Ltd.
ments its FAW Jiefang 2024 imple
restructuring
shareholdings, nor does it menta
have any plans to reduce tion
FAW Jiefang shares.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
During this period, if the
Company receive
additional shares due to
FAW Jiefang’s issuance
of bonus shares,
conversion of capital
reserves into share
capital, or other such
events, I will also abide
by the aforementioned
arrangements. If the
China Securities
Regulatory Commission
and the Shenzhen Stock
Exchange implement new
regulations regarding
share reduction, the
Company will also
strictly comply with such
relevant regulations.
Whether the
commitment
Yes
is fulfilled on
time
If the
commitment
is not
fulfilled
within the
time limit,
the specific
N/A
reasons for
the failure
and the next
work plan
shall be
explained in
detail
II. Non-operating Occupation of Funds by Controlling Shareholders and Other Related
Parties to the Listed Company
□Applicable ?Not applicable
During the reporting period, there was no non-operating occupation of funds by controlling
shareholders and other related parties.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
III. Illegal External Guarantee
□Applicable ?Not applicable
The Company has no illegal external guarantee in the reporting period.
IV. Appointment and Dismissal of Accounting Firm
Has the semi-annual financial report been audited
□Yes ?No
The semi-annual report of the Company is not audited.
V. Description of the Board of Directors and the Board of Supervisors on the “Non-standard
Audit Report” of the Accounting Firm in the Reporting Period
□Applicable ?Not applicable
VI. Description of the Board of Directors on the “Non-standard Audit Report” of the Last
Year
□Applicable ?Not applicable
VII. Matters Related to Bankruptcy Reorganization
□Applicable ?Not applicable
The Company has no matters related to bankruptcy reorganization in the reporting period.
VIII. Litigation Matters
Major litigation and arbitration matters
□Applicable ?Not applicable
The Company has no major litigation or arbitration matter in the reporting period.
Other litigation matters
?Applicable □Not applicable
Basic Litigation Implemen
Progress
Informati Amount Estimated (Arbitrati tation of
of Date of
on about Involved liabilities on) Litigation Disclosur
Litigation Disclosur
Litigation (CNY formed or Results (Arbitrati e Index
(Arbitrati e
(Arbitrati 10,000) not and on)
on)
on) Impact Judgment
Summary Including Case not No The case
of other estimated closed significan was not
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
litigation liabilities t impact closed by
not of CNY the end of
reaching 35,026,90 the
the major 0 reporting
disclosure period
standard Judgment
has been
made or
No
Case the
closed execution
t impact
has been
complete
d
IX. Punishment and Rectification
□Applicable ?Not applicable
The Company has no punishment or rectification in the reporting period.
X. Integrity of the Company and Its Controlling Shareholders and Actual Controllers
□Applicable ?Not applicable
XI. Major Related Transactions
□Applicable ?Not applicable
No related-party transactions related to daily operations occurred during the reporting period.
□Applicable ?Not applicable
The Company has no related transactions arising from the acquisition and sale of assets or equity
in the reporting period.
□Applicable ?Not applicable
The Company has no related transactions of joint foreign investment in the reporting period.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
?Applicable □Not applicable
Whether there are non-operating related credit and debt transactions
□Yes ?No
The Company has no non-operating related credit and debt transactions in the reporting period.
?Applicable □Not applicable
Deposit Business
Amount Incurred in Current
Maximum
Period
Daily Opening Ending
Deposit Total
Related Correla Deposit Balance Total Deposit Balance
Interest Rate Withdrawal
Parties tion Limit (CNY Amount in the (CNY
Range Amount in the
(CNY 10,000) Current Period 10,000)
Current Period
(CNY 10,000)
The
First
same
Autom
ultimat
obile
e 3,000,000 0.03%-2% 887,137.51 21,083,150.88 21,093,050.85 877,237.54
Financ
controll
e Co.,
ing
Ltd.
party
Credit Granting or Other Financial Businesses
Actual Amount
Total Amount (CNY
Related Parties Correlation Business Type Incurred
(CNY 10,000)
First Automobile The same ultimate Other financial
Finance Co., Ltd. controlling party businesses
□Applicable ?Not applicable
There is no deposit, loan, credit granting or other financial businesses between the finance
companies controlled by the Company and related parties.
?Applicable □Not applicable
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
On February 18, 2025, the 22nd meeting of the 10th Board of Directors of the Company
reviewed and approved the “Proposal on the Estimated Amount of Daily Related Transactions for
for 2025,” and the “Proposal on Signing the Financial Services Framework Agreement with FAW
Finance Co., Ltd.,” which were subsequently reviewed and approved by the first extraordinary
shareholders’ meeting of the Company in 2025.
Relevant Inquiries on Disclosure Website of Interim Report of Major Related Transactions
Disclosure Date of Name of Temporary
Name of Temporary
Temporary Announcement Disclosure
Announcement
Announcement Website
Announcement on estimated
CNINFO
amount of daily related February 19, 2025
(http://www.cninfo.com.cn)
transactions in 2025
Announcement on estimated
amount of financial business with CNINFO
February 19, 2025
First Automobile Finance Co., (http://www.cninfo.com.cn)
Ltd. in 2025
Announcement on Signing
Financial Service Framework
CNINFO
Agreement and Related Party February 19, 2025
(http://www.cninfo.com.cn)
Transactions with First
Automobile Finance Co., Ltd.
XII. Major Contracts and Their Performance
(1) Trusteeship
□Applicable ?Not applicable
There is no trusteeship made by the Company in the reporting period.
(2) Contracting
□Applicable ?Not applicable
There is no contracting made by the Company in the reporting period.
(3) Lease
?Applicable □Not applicable
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Description of lease
For details of the Company’s operating leases, please refer to Notes 15 “Investment Property,” 16
“Fixed Assets,” and 20 “Right-of-Use Assets” in Part VII “Notes to Items in Consolidated
Financial Statements” of Section VIII “Financial Report,” and Note 5 “Related Party Transactions”
in Part XIII “Related Parties and Related Transactions.”
Projects that bring about profits and losses exceeding 10% of the total profit of the Company in
the reporting period
□Applicable ?Not applicable
The Company has no leasing project that brings about profits and losses exceeding 10% of the
total profit of the Company in the reporting period.
□Applicable ?Not applicable
The Company has no major guarantees in the reporting period.
?Applicable □Not applicable
Unit: CNY 10,000
Impairment
Source of Amount
Amount of Provision for
Funds for of
Entrusted Wealth Outstandin Overdue
Type Entrusted Overdue
Management g Balance Entrusted
Wealth Receivabl
Transactions Wealth
Management es
Management
Bank Wealth
Management Own Funds 2,220,000 0 0 0
Products
Total 2,220,000 0 0 0
Details of High-Risk Entrusted Wealth Management Products with Large Exposure, Low Security,
or Limited Liquidity
□Applicable ?Not applicable
Situations Where Entrusted Wealth Management Is Expected to Incur Principal Losses or Other
Events May Trigger Impairment
□Applicable ?Not applicable
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
□Applicable ?Not applicable
The Company has no other major contracts in the reporting period.
XIII. Other Major Matters to be Explained
□Applicable ?Not applicable
There are no other major matters to be explained by the Company in the reporting period.
XIV. Major Events of Subsidiaries
□Applicable ?Not applicable
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Section VI Changes in Shares and Shareholders
I. Changes in Shares
Unit: share
Before the Change Increase/Decrease Made by the Change (+, -) After the Change
Share
Issue
Transferred
of Bonus
Qty. Scale from Others Subtotal Qty. Scale
New shares
Accumulation
Shares
Fund
I. Restricted shares 300,017,695 6.09% -299,597,403 -299,597,403 420,292 0.01%
owned legal person
domestic enterprises
Including: shares held by
domestic legal person
Shares held by domestic
natural person
enterprises
Including: shares held by
overseas legal person
Shares held by overseas
natural person
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
II. Unrestricted shares 4,622,353,481 93.91% 298,507,202 298,507,202 4,920,860,683 99.99%
China
overseas
III. Total number of shares 4,922,371,176 100.00% -1,090,201 -1,090,201 4,921,280,975 100.00%
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Reasons for changes in shares
?Applicable □Not applicable
During the reporting period, the Company failed to achieve the performance assessment
objectives set for the third release period of the reserved shares under the Phase I restricted share
incentive plan, and a total of 1,090,201 shares were repurchased and canceled due to some
incentive recipients serving as employee supervisors or other reasons.
Approval of share changes
?Applicable □Not applicable
On March 28, 2025, the 24th meeting of the 10th Board of Directors and the 20th meeting of
the 10th Board of Supervisors of the Company reviewed and approved the “Proposal on the
Failure to Achieve the Conditions for the Third Release Period of the Reserved Shares under the
Phase I Restricted Share Incentive Plan, and on the Repurchase and Cancellation of Certain
Restricted Shares and Adjustment of Repurchase Price,” with a total of 1,090,201 restricted shares
repurchased and canceled. On April 18, 2025, the proposal was reviewed and approved at the
Company’s 2024 Annual Shareholders’ Meeting.
Transfer of shares changes
?Applicable □Not applicable
On June 03, 2025, the Company submitted relevant registration materials to CDSC for
CSDC issued the Confirmation of Securities Transfer Registration to the Company, and the total
share capital of the Company was reduced to 4,921,280,975 shares.
Implementation progress of share repurchase
?Applicable □Not applicable
The Company has completed the above-mentioned repurchase and cancellation of shares,
and disclosed the “Announcement on the Completion of Repurchase and Cancellation of Some
Restricted Shares” on June 10, 2025.
Implementation progress of reducing repurchased shares by centralized bidding
□Applicable ?Not applicable
Impact of changes in shares on financial indicators such as basic earnings per share and diluted
earnings per share in the latest year and the latest period, and net assets per share attributable to
shareholders with ordinary shares of the Company
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
?Applicable □Not applicable
In the reporting period, the share capital of the Company decreased by 1,090,201 shares,
which had little impact on the Company’s financial indicators such as basic earnings per share,
diluted earnings per share, and net assets per share attributable to shareholders with ordinary
shares of the Company.
Other information disclosed as deemed necessary by the Company or required by the securities
regulatory authority
□Applicable ?Not applicable
?Applicable □Not applicable
Unit: share
Number Number
Number of of of
Number of
Restricted Restricte Restricte Reason
Restricted
Name of Shares d Shares d Shares for Release
Shares at the
Shareholder Released in Increase at the Restricti Date
Beginning of
the Current d in the End of on
the Period
Period Current the
Period Period
National
Manufacturing Non-
April 21,
Transformation 67,164,179 67,164,179 public
and Upgrading offering
Fund Co., Ltd.
Lord Abbett
Non-
China Asset April 21,
Management Co., 2025
offering
Ltd.
Jilin Province Non-
April 21,
Private Equity 46,268,656 46,268,656 public
Co., Ltd. offering
Caitong Fund Non-
April 21,
Management Co., 30,447,765 30,447,765 public
Ltd. offering
AEGON-
INDUSTRIAL Non-
April 21,
Fund 25,074,626 25,074,626 public
Management Co., offering
Ltd.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Jilin Province
Yandong State- Non-
April 21,
Owned Capital 22,388,059 22,388,059 public
Investment Co., offering
Ltd.
Non-
April 21,
UBS AG 16,716,417 16,716,417 public
offering
Jilin Changbai
Mountain Private
Fund
Management Co.,
Ltd. - Jilin Non-
April 21,
Province 16,417,910 16,417,910 public
Qianheng offering
Investment
Partnership
(Limited
Partnership)
Changchun
Equity Investment
Fund
Management Co.,
Non-
Ltd. - Changchun April 21,
Changxing Equity 2025
offering
Investment Fund
Partnership
(Limited
Partnership)
The shares
held are
released
from
Other Senior restriction
Executiv
Executives and 1,510,233 1,139,099 49,158 420,292 annually in
e lockup
Personnel accordance
with
relevant
regulations
.
Total 300,017,695 299,646,561 49,158 420,292 -- --
II. Issuance and Listing of Securities
□Applicable ?Not applicable
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
III. Number of Shareholders and Shareholdings of the Company
Unit: share
Total Number of Total Number of
Shareholders with Shareholders with Preferred
Ordinary Shares at 78,324 Shares with Restored Voting 0
the End of the Rights at the End of the
Reporting Period Reporting Period
Shareholdings of Shareholders Holding More than 5% of the Shares or Top 10 Shareholders
(Excluding Shares Lent through Securities Refinancing).
Num Num Pledge,
ber ber Marking or
Natu Number of of of Freezing
Increase and
re of Share Shares Held at Rest Unre
Name of Decrease in
Shar proportio the End of the ricte strict
Shareholder the Reporting Status
ehol n Reporting d ed Qty
Period of
ders Period Shar Shar .
Shares
es es
Held Held
State
own
China FAW
ed 62.19% 3,060,649,901 0 0 0 N/A 0
Co., Ltd.
legal
pers
on
State
FAW
own
Bestune
ed 15.94% 784,500,000 0 0 0 N/A 0
Auto Co.,
legal
Ltd.
pers
on
National
State
Manufacturi
ng
own
Transformat
ed 1.36% 67,164,179 0 0 0 N/A 0
ion and
legal
Upgrading
pers
Fund Co.,
on
Ltd.
Jilin State
Province -
Private own 0.94% 46,268,656 0 0 0 N/A 0
Equity Co., ed
Ltd. legal
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
pers
on
Hong Kong Over
Securities seas
Clearing legal 0.77% 38,106,115 -22,367,578 0 0 N/A 0
Company pers
Ltd. on
Over
seas
Qu natu
Hongzhen ral
pers
on
Jilin
State
Province
Yandong
own
State-
ed 0.45% 22,388,059 0 0 0 N/A 0
Owned
legal
Capital
pers
Investment
on
Co., Ltd.
Industrial
and
Commercial
Bank of
China Co.,
Ltd.-Huatai-
Othe
PineBridge 0.36% 17,613,200 826,600 0 0 N/A 0
rs
CSI 300
Trading
Open Index
Securities
Investment
Fund
Changchun
Equity
Investment
Fund
Managemen
t Co., Ltd. - Othe
Changchun rs
Changxing
Equity
Investment
Fund
Partnership
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(Limited
Partnership)
Dom
estic
Duanmu natu
Xiaoyi ral
pers
on
Strategic investors Among the above shareholders, National Manufacturing Transformation
or general legal and Upgrading Fund Co., Ltd., Jilin Province Private Equity Co., Ltd., Jilin
persons who Province Yandong State-Owned Capital Investment Co., Ltd., and
become the top 10 Changchun Equity Investment Fund Management Co., Ltd. - Changchun
shareholders due to Changxing Equity Investment Fund Partnership (Limited Partnership),
the issuance of new among other investors, became the Company’s top ten shareholders as a
shares result of the Company’s non-public issuance of shares to specific targets.
Among the above shareholders, FAW Bestune is a holding subsidiary of
Description of FAW, and is a person acting in concert as specified in the Regulations for
correlation or the Takeover of Listed Companies. The public disclosure data indicates that
concerted action of the Company does not know whether there is a correlation between other
the above shareholders of outstanding shares, nor whether other shareholders of
shareholders outstanding shares are persons acting in concert as specified in the
Regulations for the Takeover of Listed Companies.
Description of
involvement of the
above shareholders
in
N/A
entrusting/entrusted
voting rights and
waiving voting
rights
Special description
of the existence of
repurchase
N/A
dedicated accounts
among the top 10
shareholders
Shareholding of the Top 10 Shareholders with Unrestricted Shares (Excluding Shares Lent via
Margin Trading and Locked-up Shares of Senior Executives)
Number of Type of Shares
Unrestricted Shares
Name of Shareholder
Held at the End of the Type of Shares Qty.
Reporting Period
CNY ordinary
China FAW Co., Ltd. 3,060,649,901.00 3,060,649,901.00
shares
CNY ordinary
FAW Bestune Auto Co., Ltd. 784,500,000.00 784,500,000.00
shares
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
National Manufacturing
CNY ordinary
Transformation and 67,164,179.00 67,164,179.00
shares
Upgrading Fund Co., Ltd.
Jilin Province Private Equity CNY ordinary
Co., Ltd. shares
Hong Kong Securities CNY ordinary
Clearing Company Ltd. shares
CNY ordinary
Qu Hongzhen 36,096,590.00 36,096,590.00
shares
Jilin Province Yandong State-
CNY ordinary
Owned Capital Investment 22,388,059.00 22,388,059.00
shares
Co., Ltd.
Industrial and Commercial
Bank of China Co., Ltd.-
CNY ordinary
Huatai-PineBridge CSI 300 17,613,200.00 17,613,200.00
shares
Trading Open Index
Securities Investment Fund
Changchun Equity
Investment Fund
Management Co., Ltd. -
CNY ordinary
Changchun Changxing 16,417,910.00 16,417,910.00
shares
Equity Investment Fund
Partnership (Limited
Partnership)
CNY ordinary
Duanmu Xiaoyi 15,761,031.00 15,761,031.00
shares
Description of
Related Parties or
Concerted Actions
Among the Top 10 Among the above shareholders, FAW Bestune is a holding subsidiary of
Shareholders with FAW, and is a person acting in concert as specified in the Regulations for
Unrestricted the Takeover of Listed Companies. The public disclosure data indicates that
Shares, and the Company does not know whether there is a correlation between other
Between the Top 10 shareholders of outstanding shares, nor whether other shareholders of
Shareholders with outstanding shares are persons acting in concert as specified in the
Unrestricted Shares Regulations for the Takeover of Listed Companies.
and the Top 10
Shareholders with
Shares
Description of Qu Hongzhen, an overseas natural person, holds 36,096,590 shares of the
participation in Company through the customer margin trading guaranteed securities
financing bonds account at CITIC Securities; Duanmu Xiaoyi, a domestic natural person,
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
business of the top holds 15,761,031 shares of the Company through the customer margin
with ordinary
shares
Participation in securities lending business by shareholders holding more than 5%, the top 10
shareholders, and the top 10 shareholders of unrestricted tradable shares
□Applicable ?Not applicable
Changes in the top 10 shareholders and top 10 shareholders of unrestricted tradable shares
compared to the previous period due to securities lending/return activities
□Applicable ?Not applicable
Do the top 10 shareholders with ordinary shares and the top 10 shareholders with unrestricted
ordinary shares of the Company conduct agreed repurchase transactions in the reporting period
□Yes ?No
The top 10 shareholders with ordinary shares and the top 10 shareholders with unrestricted
ordinary shares of the Company do not conduct agreed repurchase transactions in the reporting
period
IV. Changes in Shareholding of Directors, Supervisors and Senior Management
□Applicable ?Not applicable
The shareholding of the Company’s directors, supervisors, and senior executives remained
unchanged during the reporting period. For details, please refer to the 2024 Annual Report.
V Changes in controlling shareholders or actual controllers
Changes in controlling shareholders in the reporting period
□Applicable ?Not applicable
There is no change in the controlling shareholders of the Company in the reporting period.
Change of actual controller in the reporting period
□Applicable ?Not applicable
There is no change in the actual controller of the Company in the reporting period.
VI Preferred Shares
□Applicable ?Not applicable
The Company has no preferred shares in the reporting period.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Section VII Bonds
□Applicable ?Not applicable
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Section VIII Financial Report
I. Audit Report
Is the semi-annual report audited
□Yes ?No
The semi-annual financial report of the Company is not audited.
II. Financial Statements
The unit in the notes to the financial statement is CNY
Prepared by: FAW Jiefang Group Co., Ltd.
June 30, 2025
Unit: CNY
Item Ending balance Opening balance
Current assets:
Monetary capital 27,226,459,877.13 19,852,961,021.66
Settlement reserve fund
Loans to banks and other
financial institutions
Financial assets held for trading 5,102,739.73
Derivative financial assets
Notes receivable 300,000.00 2,641,582.80
Accounts receivable 8,413,701,687.51 7,067,296,142.54
Accounts receivable financing 6,250,344,325.45 10,019,816,248.98
Prepayments 153,344,659.70 128,639,159.47
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves
receivable
Other receivables 1,681,860,160.35 1,340,633,312.48
Including: interests receivable
Dividends receivable 157,707,661.77
Financial assets purchased under
agreements to resell
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Item Ending balance Opening balance
Inventories 12,268,923,565.48 10,117,213,109.97
Including: Data resources
Contract assets 14,535,632.85 14,455,542.05
Held-for-sale assets
Current portion of non-current
assets
Other current assets 1,091,164,647.41 1,413,638,174.22
Total current assets 57,472,531,954.63 50,334,962,736.23
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables 110,729,218.36 110,911,235.61
Long-term equity investments 1,161,550,784.02 1,176,288,461.09
Other equity instruments
investments
Other non-current financial
assets
Investment properties 47,178,054.55 52,835,976.31
Fixed assets 10,608,424,359.95 11,198,300,572.20
Project under construction 762,817,790.85 688,181,815.22
Productive biological assets
Oil and gas assets
Right-of-use assets 86,146,431.81 104,360,320.57
Intangible assets 2,301,506,301.83 2,337,101,200.98
Including: Data resources
Development expenditures 529,542,097.97 500,611,951.24
Including: Data resources
Goodwill
Long-term deferred expenses
Deferred Income tax assets 3,280,839,948.65 3,061,404,632.44
Other non-current assets 2,711,695,452.99 2,644,193,586.72
Total non-current assets 22,190,060,832.98 22,414,256,280.38
Total assets 79,662,592,787.61 72,749,219,016.61
Current liabilities:
Short-term loans
Borrowing from the central bank
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Item Ending balance Opening balance
Placements from banks and
other financial institutions
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable 21,803,140,258.04 15,370,906,363.16
Accounts payable 19,535,024,967.25 17,246,353,969.05
Advance receipts 662,358.34 674,009.56
Contract liabilities 2,489,872,513.67 2,430,554,164.50
Financial assets sold under
agreement to repurchase
Deposits taking and interbank
deposits
Acting trading securities
Acting underwriting securities
Employee compensation payable 421,898,208.98 1,043,554,896.06
Taxes payable 252,601,280.60 215,532,903.02
Other payables 3,237,442,886.60 4,526,208,921.23
Including: interests payable
Dividends payable 171,500.02 171,500.02
Handling charges and
commissions payable
Reinsurance accounts payable
Held-for-sale liabilities
Current portion of non-current
liabilities
Other current liabilities 192,157,579.59 217,767,924.33
Total current liabilities 47,945,514,756.41 41,081,494,851.93
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: preferred shares
Perpetual Bond
Lease liabilities 7,387,319.62 27,431,600.64
Long-term payables
Long-term employee 690,257,123.52 692,790,054.95
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Item Ending balance Opening balance
compensation payable
Estimated liabilities 1,239,330,087.42 992,714,878.02
Deferred income 2,903,353,226.50 2,936,362,847.77
Deferred income tax liabilities 430,393,079.81 423,775,650.57
Other non-current liabilities
Total non-current liabilities 5,270,720,836.87 5,073,075,031.95
Total liabilities 53,216,235,593.28 46,154,569,883.88
Owner’s equities:
Share capital 4,921,280,975.00 4,922,371,176.00
Other equity instruments
Including: preferred shares
Perpetual Bond
Capital reserves 11,956,471,332.90 11,961,480,047.74
Less: treasury shares 6,246,851.73
Other comprehensive incomes -43,400,118.30 -96,912,346.71
Special reserves 273,221,478.12 277,345,883.15
Surplus reserves 3,204,548,247.40 3,204,548,247.40
General risk provision
Undistributed profits 5,828,931,668.45 6,055,339,906.81
Total equity attributable to owners
of the parent company
Minority equity 305,303,610.76 276,723,070.07
Total owners’ equity 26,446,357,194.33 26,594,649,132.73
Total liabilities and owner’s
equities
Legal representative: Li Sheng Person in charge of accounting: Yu Changxin Person in charge of the accounting organization:
Yang Li
Unit: CNY
Item Ending balance Opening balance
Current assets:
Monetary capital 359,307,477.90 152,222,868.42
Financial assets held for trading
Derivative financial assets
Notes receivable
Accounts receivable
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Item Ending balance Opening balance
Accounts receivable financing
Prepayments
Other receivables 6,553,832,963.97 6,470,963,348.86
Including: interests receivable
Dividends receivable 156,960,226.90
Inventories
Including: Data resources
Contract assets
Held-for-sale assets
Current portion of non-current
assets
Other current assets 875,554.72 653,349.48
Total current assets 6,914,015,996.59 6,623,839,566.76
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investments 21,799,225,298.95 21,795,117,325.10
Other equity instruments
investments
Other non-current financial assets
Investment properties
Fixed assets
Project under construction
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets
Including: Data resources
Development expenditures
Including: Data resources
Goodwill
Long-term deferred expenses
Deferred Income tax assets
Other non-current assets
Total non-current assets 21,799,225,298.95 21,795,117,325.10
Total assets 28,713,241,295.54 28,418,956,891.86
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Item Ending balance Opening balance
Current liabilities:
Short-term loans
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable
Accounts payable 12,000.00 2,727,107.71
Advance receipts
Contract liabilities
Employee compensation payable
Taxes payable 240,493.68 3,164,670.01
Other payables 883,044,775.88 342,246,068.80
Including: interests payable
Dividends payable 171,500.02 171,500.02
Held-for-sale liabilities
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 883,297,269.56 348,137,846.52
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred shares
Perpetual Bond
Lease liabilities
Long-term payables
Long-term employee
compensation payable
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 883,297,269.56 348,137,846.52
Owner’s equities:
Share capital 4,921,280,975.00 4,922,371,176.00
Other equity instruments
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Item Ending balance Opening balance
Including: preferred shares
Perpetual Bond
Capital reserves 13,797,364,225.24 13,802,357,345.82
Less: treasury shares 6,246,851.73
Other comprehensive incomes 14,575,781.62 12,671,266.92
Special reserves
Surplus reserves 1,968,725,127.44 1,968,725,127.44
Undistributed profits 7,127,997,916.68 7,370,940,980.89
Total owners’ equity 27,829,944,025.98 28,070,819,045.34
Total liabilities and owner’s equities 28,713,241,295.54 28,418,956,891.86
Unit: CNY
Item Semi-annual 2025 Semi-annual 2024
I. Total operating income 28,078,705,058.07 36,465,688,621.29
Including: operating income 28,078,705,058.07 36,465,688,621.29
Interest income
Premium earned
Handling charges and commission income
II. Total operating cost 28,689,523,184.78 36,457,256,059.41
Including: operating cost 26,840,562,485.53 34,355,216,264.53
Interest expense
Handling charges and commission expense
Surrender value
Net payments for insurance claims
Net allotment of reserves for insurance
liabilities
Policy dividend expenditure
Reinsurance expenses
Taxes and surcharges 138,903,052.31 105,812,766.58
Sales expenses 472,042,436.11 520,770,818.03
Administrative expenses 605,966,739.38 749,958,633.22
R&D expenses 884,897,695.04 1,135,583,276.97
Financial expenses -252,849,223.59 -410,085,699.92
Including: interest expenses 1,611,404.27 1,431,811.40
Interest income 255,428,034.69 339,376,065.31
Add: Other incomes 524,635,067.40 353,779,659.32
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Item Semi-annual 2025 Semi-annual 2024
Investment income (loss to be listed with “-”) -30,115,859.77 101,886,844.66
Including: income from investment in
associates and joint ventures
Gains on derecognition of financial
assets at amortized cost
Foreign exchange gains (loss to be listed with “-”)
Net exposure hedging income (loss to be listed
with “-”)
Profit arising from changes in fair value (loss to
be listed with “-”)
Credit impairment loss (loss to be listed with “-”) -30,655,705.99 -8,593,082.48
Impairment loss on assets (loss to be listed with “-
-151,608,226.07 -108,034,774.17
”)
Income from assets disposal (loss to be listed with
“-”)
III. Operating profit (loss to be listed with “-”) -143,948,162.40 348,217,298.03
Add: non-operating income 11,324,153.35 28,106,223.95
Less: non-operating expenses 1,662,537.37 3,783,791.81
IV. Total profit (loss to be listed with “-”) -134,286,546.42 372,539,730.17
Less: income tax expenses -175,154,040.98 -148,541,602.52
V. Net profit (net loss to be listed with “-”) 40,867,494.56 521,081,332.69
(I) Classified by continuity of operation
be listed with “-”)
to be listed with “-”)
(II) Classified by attribution of the ownership
parent company (net loss to be listed with “-”)
“-”)
VI. Net after-tax amount of other comprehensive income 61,192,422.39 134,961.61
Net after-tax amount of other comprehensive income
attributable to the owners of the parent company
(I) Other comprehensive incomes that cannot be
reclassified into profits or losses
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Item Semi-annual 2025 Semi-annual 2024
defined benefit plan
transferred to profits or losses under the equity method
equity instruments
risk
(II) Other comprehensive incomes that will be
reclassified into profits or losses
transferred to profits or losses under the equity method
investments
other comprehensive incomes
provisions
financial statements
Net after-tax amount of other comprehensive income
attributable to minority shareholders
VII. Total comprehensive income 102,059,916.95 521,216,294.30
Total comprehensive income attributable to the owners
of parent company
Total comprehensive income attributable to minority
shareholders
VIII. Earnings per share:
(I) Basic income per share 0.0040 0.1096
(II) Diluted income per share 0.0040 0.1096
In case of business combination under common control in the current period, the net profit realized by the
combined party before the combination and that in the previous period are CNY 0.00.
Legal representative: Li Sheng Person in charge of accounting: Yu Changxin Person in charge of the accounting
organization: Yang Li
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Unit: CNY
Item Semi-annual 2025 Semi-annual 2024
I. Operating income
Less: operating costs -795,847.41 -1,270,265.34
Taxes and surcharges -496,286.41 41,580.57
Sales expenses
Administrative expenses 303,554.67 826,289.90
R&D expenses
Financial expenses -603,115.67 -2,138,135.81
Including: interest expenses 17,012.29 319,616.24
Interest income 624,863.91 2,458,998.74
Add: Other incomes 121,677.32 57,741.82
Investment income (loss to be listed with “-”) 2,203,459.15 548,393,139.83
Including: income from investment in
associates and joint ventures
Gains on derecognition of financial
assets at amortized cost (loss to be listed with“-”)
Net exposure hedging income (loss to be listed
with “-”)
Profit arising from changes in fair value (loss to
be listed with“-”)
Credit impairment loss (loss to be listed with “-”)
Impairment loss on assets (loss to be listed with “-
”)
Income from assets disposal (loss to be listed with
“-”)
II. Operating profit (loss to be listed with “-”) 3,120,983.88 549,721,146.99
Add: non-operating income 0.66 1.11
Less: non-operating expenses
III. Total profit (total loss to be listed with “-”) 3,120,984.54 549,721,148.10
Less: income tax expenses
IV. Net profit (net loss to be listed with “-”) 3,120,984.54 549,721,148.10
(I) Net profit from continuing operations (net loss to be
listed with“-”)
(II) Net profit from discontinuing operations (net loss
to be listed with “-”)
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Item Semi-annual 2025 Semi-annual 2024
V. Net after-tax amount of other comprehensive incomes 1,904,514.70 5,583,060.65
(I) Other comprehensive incomes that cannot be
reclassified into profits or losses
defined benefit plan
transferred to profits or losses under the equity method
equity instruments
risk
(II) Other comprehensive incomes that will be
reclassified into profits or losses
transferred to profits or losses under the equity method
investments
other comprehensive incomes
provisions
financial statements
VI. Total comprehensive income 5,025,499.24 555,304,208.75
VII. Earnings per share:
(I) Basic income per share
(II) Diluted income per share
Unit: CNY
Item Semi-annual 2025 Semi-annual 2024
I. Cash flows from operating activities:
Cash received from sales of goods and provision
of services
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Item Semi-annual 2025 Semi-annual 2024
Net increase in customer bank deposits due to
banks and other financial institutions
Net increase in borrowings from the central
bank
Net increase in placements from other financial
institutions
Cash from premium of original insurance
contract
Net cash received from reinsurance business
Net increase in deposits and investments from
policyholders
Cash received from interests, handling charges
and commissions
Net increase in placements from banks and other
financial institutions
Net increase in repurchase business capital
Net cash received from securities brokerage
Tax refunds received 355,567,798.16 97,674,823.55
Other cash received relating to operating
activities
Subtotal of cash inflows from operating activities 34,706,781,401.65 28,691,438,672.15
Cash paid for goods and services 22,598,319,244.50 20,212,451,175.05
Net increase in loans and advances to customers
Net increase in deposits with central bank and
other financial institutions
Cash paid for original insurance contract claims
Net increase in loans to banks and other
financial institutions
Cash paid for interests, handling charges and
commissions
Cash paid for policyholder dividend
Cash paid to and on behalf of employees 2,685,058,298.28 2,413,856,035.91
Taxes paid 636,112,769.58 677,899,797.50
Cash paid for other operating activities 1,152,002,068.58 966,319,958.58
Subtotal of cash outflows from operating activities 27,071,492,380.94 24,270,526,967.04
Net cash flows from operating activities 7,635,289,020.71 4,420,911,705.11
II. Cash flows from investment activities:
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Item Semi-annual 2025 Semi-annual 2024
Cash received from the return of investment 22,200,000,000.00
Cash received from acquirement of investment
income
Net cash received from fixed assets disposal,
intangible assets and other long-term assets
Net cash received from the disposal of
subsidiaries and other business entities
Cash received from other investment activities
Subtotal of cash inflows from investment activities 22,506,027,812.58 84,410,628.91
Cash paid to acquire fixed assets, intangible
assets and other long-term assets
Cash paid to acquire investments 22,200,000,000.00 4,900,000.00
Net increase in pledged loans
Net cash paid to acquire subsidiaries and other
business units
Other cash paid relating to investment activities
Subtotal of cash outflows from investment
activities
Net cash flows from investment activities -162,885,381.88 -779,697,145.28
III. Cash flows from financing activities:
Cash received from absorbing investment
Including: cash received by subsidiaries
absorbing minority shareholders’ investments
Cash received from borrowings
Cash received relating to other financing
activities
Subtotal of cash inflows from financing activities
Cash paid for repayment of debts
Cash paid for distribution of dividends, profits
or interest repayment
Including: dividends and profits paid to minority
shareholders by subsidiaries
Other cash paid relating to financing activities 1,227,805.50 11,981,752.58
Subtotal of cash outflows from financing activities 248,323,979.67 705,678,116.75
Net cash flows from financing activities -248,323,979.67 -705,678,116.75
IV. Effects from change of exchange rate on cash
and cash equivalents
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Item Semi-annual 2025 Semi-annual 2024
V. Net increase in cash and cash equivalents 7,231,688,786.55 2,942,820,578.09
Add: opening balance of cash and cash
equivalents
VI. Ending Balance of cash and cash equivalents 26,622,889,891.23 26,050,839,165.01
Unit: CNY
Item Semi-annual 2025 Semi-annual 2024
I. Cash flows from operating activities:
Cash received from sales of goods and provision
of services
Tax refunds received
Other cash received relating to operating
activities
Subtotal of cash inflows from operating activities 801,706,960.00 265,696,548.98
Cash paid for goods and services
Cash paid to and on behalf of employees 189,000.00 189,000.00
Taxes paid
Cash paid for other operating activities 479,889,102.72 85,037,064.99
Subtotal of cash outflows from operating activities 480,078,102.72 85,226,064.99
Net cash flows from operating activities 321,628,857.28 180,470,483.99
II. Cash flows from investment activities:
Cash received from the return of investment
Cash received from acquirement of investment
income
Net cash received from fixed assets disposal,
intangible assets and other long-term assets
Net cash received from the disposal of
subsidiaries and other business entities
Cash received from other investment activities
Subtotal of cash inflows from investment activities 156,960,226.90 353,500,000.00
Cash paid to acquire fixed assets, intangible
assets and other long-term assets
Cash paid to acquire investments
Net cash paid to acquire subsidiaries and other
business units
Other cash paid relating to investment activities
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Item Semi-annual 2025 Semi-annual 2024
Subtotal of cash outflows from investment
activities
Net cash flows from investment activities 132,551,926.37 353,500,000.00
III. Cash flows from financing activities:
Cash received from absorbing investment
Cash received from borrowings
Cash received relating to other financing
activities
Subtotal of cash inflows from financing activities
Cash paid for repayment of debts
Cash paid for distribution of dividends, profits
or interest repayment
Other cash paid relating to financing activities
Subtotal of cash outflows from financing activities 247,096,174.17 693,696,364.17
Net cash flows from financing activities -247,096,174.17 -693,696,364.17
IV. Effects from change of exchange rate on cash
and cash equivalents
V. Net increase in cash and cash equivalents 207,084,609.48 -159,725,880.18
Add: opening balance of cash and cash
equivalents
VI. Ending Balance of cash and cash equivalents 359,307,477.90 5,431,357.03
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Amount in the current period
Unit: CNY
Semi-annual 2025
Equity Attributable To Owners of the Parent Company
Other equity instruments General
Item Less: Other Minority Total owners’
Preferre Special Surplus risk Undistributed Other equity
Share capital Perpetu Other Capital reserves treasury comprehensive Subtotal equity
d reserves reserves provisio profits s
al Bond s shares incomes
Shares n
I. Ending -
Balance of the 96,912,346.
previous year 71
Add: changes
in accounting
policies
Correction of
prior period
errors
Others
II. Opening
Balance of the
current year
III.
Increase/decrea
se in amount of -
- 28,580,540.6
the current -1,090,201.00 -5,008,714.84 6,246,851. 53,512,228.41 -4,124,405.03 -176,872,479.09 -148,291,938.40
period 73
(decrease to be
listed with “-”)
(I) Total
comprehensive 53,512,228.41 19,655,810.39 73,168,038.80 101,748,579.49
income
(II) Invested
and decreased
-1,090,201.00 -5,008,714.84 6,246,851. 147,935.89 147,935.89
capital of
owners
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
shares invested
by owners
contributed by
holders of other
equity
instruments
share-based
payments
recorded in
owner’s equity
(III) Profit -
-246,064,048.75 -246,064,048.75
distribution 246,064,048.75
Appropriation
to surplus
reserves
Appropriation
to general risk
reserves
to owners (or -246,064,048.75 -246,064,048.75
shareholders)
(IV) Internal
carryover of
owners’equity
from capital
reserve to paid-
in capital (or
share capital)
from surplus
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
reserves to
paid-in capital
(or share
capital)
losses by
surplus
reserves
earnings
carried forward
from changes
in defined
benefit plans
earnings
carried forward
from other
comprehensive
income
(V) Special
-4,124,405.03 -4,124,405.03 -4,124,405.03
reserves
Appropriation 15,518,831.9
in the current 0
period
current period 3
(VI) Others
IV. Ending
Balance of the -43,400,118.30
current period
Amount of the previous year
Unit: CNY
Item Semi-annual 2024
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Equity Attributable To Owners of the Parent Company
Other equity instruments General
Less: Other Minority Total owners’
Preferre Special Surplus risk Undistributed Other
Share capital Capital reserves treasury comprehensiv Subtotal equity equity
Perpetu Other
d reserves reserves provisio profits s
al Bond s shares e incomes
Shares n
I. Ending
Balance of the -8,514,110.10
previous year
Add: changes
in accounting
policies
Correction of
prior period
errors
Others 374,018,599.99 118,685,308. 5,105,359.06 54,756,122.34 315,194,773.09 560,650,215.22
II. Opening -
Balance of the 127,199,418.
current year 40
III.
Increase/decrea
se in amount of -
- 13,927,971.4
the current -12,621,954.00 -66,657,273.11 79,884,645. 480,792.84 -9,199,833.45 -194,885,649.22 -180,957,677.82
period 54
(decrease to be
listed with “-”)
(I) Total
comprehensive 480,792.84 506,807,530.06 507,288,322.90 521,216,294.30
income
(II) Invested
and decreased
-12,621,954.00 -66,657,273.11 79,884,645. 605,418.43 605,418.43
capital of
owners
-12,621,954.00 -67,262,691.54
shares invested 79,884,645.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
by owners 54
contributed by
holders of other 605,418.43 605,418.43 605,418.43
equity
instruments
share-based
payments
recorded in
owner’s equity
(III) Profit -
-693,579,557.10 -693,579,557.10
distribution 693,579,557.10
Appropriation
to surplus
reserves
Appropriation
to general risk
reserves
to owners (or -693,579,557.10 -693,579,557.10
shareholders)
(IV) Internal
carryover of
owners’ equity
from capital
reserve to paid-
in capital (or
share capital)
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
from surplus
reserves to
paid-in capital
(or share
capital)
losses by
surplus
reserves
earnings
carried forward
from changes
in defined
benefit plans
earnings
carried forward
from other
comprehensive
income
(V) Special
-9,199,833.45 -9,199,833.45 -9,199,833.45
reserves
Appropriation
in the current
period
current period
(VI) Others
IV. Ending -
Balance of the 126,718,625.
current period 56
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Amount in the current period
Unit: CNY
Semi-annual 2025
Other equity instruments Specia
Item Less: Other
Preferre l Surplus Undistributed Other Total owners’
Share capital Perpetu Other Capital reserves treasury comprehensi
d reserve reserves profits s equity
al Bond s shares ve incomes
Shares s
I. Ending
Balance of the
previous year
Add: changes
in accounting
policies
Correction of
prior period
errors
Others
II. Opening
Balance of the
current year
III.
Increase/decrea
se in amount of -
the current -1,090,201.00 -4,993,120.58 6,246,851. 1,904,514.70 -240,875,019.36
period 73
(decrease to be
listed with “-”)
(I) Total
comprehensive 1,904,514.70 3,120,984.54 5,025,499.24
income
(II) Invested -1,090,201.00 -4,993,120.58 - 163,530.15
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
and decreased 6,246,851.
capital of 73
owners
shares invested -1,090,201.00 -4,993,120.58 -6,083,321.58
by owners
contributed by
holders of
other equity
instruments
share-based
payments
recorded in
owner’s equity
(III) Profit -
-246,064,048.75
distribution 246,064,048.75
Appropriation
to surplus
reserves
to owners (or -246,064,048.75
shareholders)
(IV) Internal
carryover of
owners’ equity
from capital
reserve to paid-
in capital (or
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
share capital)
from surplus
reserves to
paid-in capital
(or share
capital)
losses by
surplus
reserves
earnings
carried forward
from changes
in defined
benefit plans
earnings
carried forward
from other
comprehensive
income
(V) Special
reserves
Appropriation
in the current
period
current period
(VI) Others
IV. Ending 4,921,280,975. 13,797,364,225. 14,575,781.6 1,968,725,127. 7,127,997,916. 27,829,944,025.
Balance of the 00 24 2 44 68 98
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
current period
Amount of the previous year
Unit: CNY
Semi-annual 2024
Other equity Sp
O
instruments ec
t
Item Other ial
Prefe Less: treasury Undistributed h Total owners’
Share capital Ot Capital reserves comprehensiv re Surplus reserves
rred Perpetu shares profits e equity
he e incomes se
Shar al Bond r
rs rv
es s
es
I. Ending
Balance of the 4,636,485,668.00 12,171,693,342.10 86,131,497.27 863,137.93 1,859,690,555.97 7,083,209,394.76 25,665,810,601.49
previous year
Add: changes
in accounting
policies
Correction of
prior period
errors
Others
II. Opening
Balance of the 4,636,485,668.00 12,171,693,342.10 86,131,497.27 863,137.93 1,859,690,555.97 7,083,209,394.76 25,665,810,601.49
current year
III.
Increase/decre
ase in amount
of the current
-12,621,954.00 -67,262,691.54 79,884,645.54 5,583,060.65 -143,858,409.00 -138,275,348.35
period
(decrease to be
listed with “-
”)
(I) Total
comprehensive
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
income
(II) Invested
and decreased -
-12,621,954.00 -67,262,691.54
capital of 79,884,645.54
owners
shares
-12,621,954.00 -67,262,691.54 -79,884,645.54
invested by
owners
contributed by
holders of
other equity
instruments
share-based
payments
recorded in
owner’s equity
(III) Profit
-693,579,557.10 -693,579,557.10
distribution
Appropriation
to surplus
reserves
to owners (or -693,579,557.10 -693,579,557.10
shareholders)
(IV) Internal
carryover of
owners’ equity
from capital
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
reserve to
paid-in capital
(or share
capital)
from surplus
reserves to
paid-in capital
(or share
capital)
losses by
surplus
reserves
earnings
carried
forward from
changes in
defined benefit
plans
earnings
carried
forward from
other
comprehensive
income
(V) Special
reserves
Appropriation
in the current
period
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
current period
(VI) Others
IV. Ending
Balance of the 4,623,863,714.00 12,104,430,650.56 6,246,851.73 6,446,198.58 1,859,690,555.97 6,939,350,985.76 25,527,535,253.14
current period
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
III. Company Profile
FAW Jiefang Group Co., Ltd., formerly known as FAW Car Co., Ltd., is a limited liability company registered
in Changchun City, Jilin Province.
FAW Car was approved by the System Restructuring [1997] No.55 Document of the State Commission for
Restructuring the Economic Systems in 1997 and established exclusively by China FAW Group Co., Ltd. On
June 18, 1997, FAW Car was approved by the China Securities Regulatory Commission to issue shares publicly
and listed on the Shenzhen Stock Exchange for circulation.
On April 9, 2012, FAW Group invested 862,983,689 shares of FAW Car into China FAW Co., Ltd. as its
capital contribution to FAW, and received the Confirmation of Securities Transfer Registration issued by China
Securities Depository & Clearing Co., Ltd. Shenzhen Branch on the same day.
On November 28, 2019, FAW Car held the 10th meeting of the 8th Board of Directors, and reviewed and
approved the adjustment plan for major asset restructuring. After the adjustment, FAW Car transferred all its
assets and liabilities except the equity and some reserved assets of First Automobile Finance Co., Ltd. and
Sanguard Automobile Insurance Co., Ltd. to FAW Besturn (now renamed as FAW Bestune Auto Co., Ltd.).
Subsequently, FAW Car used its 100% equity in FAW Besturn as divested assets to exchange for equivalent
part of 100% equity of FAW Jiefang Automotive Co., Ltd. held by FAW. Meanwhile, FAW Car purchased
the difference between the purchased assets and the sold assets from FAW by issuing shares and paying cash.
On March 12, 2020, FAW Car received the Reply on Approving the Major Asset Restructuring of FAW Car
Co., Ltd. and Issuing Shares to China FAW Co., Ltd. for Asset Purchase (ZJXK [2020] No.352) issued by the
China Securities Regulatory Commission, and China Securities Regulatory Commission reviewed and approved
the major asset replacement, share issuance and cash payment for assets purchase and related transactions of
FAW Car.
The Capital Verification Report (XYZH/2020BJA100417) issued by ShineWing Accounting Firm (special
general partnership) indicates that, as of March 19, 2020, all proposed purchased assets, i.e. 100% equity of
Jiefang Limited, to be replaced by FAW Car to FAW by issuing shares had been transferred to FAW Car. The
industrial and commercial change registration procedures of Jiefang Limited had been completed, all proposed
assets, i.e. 100% equity of FAW Bestune, had been transferred to FAW, and the industrial and commercial
change registration procedures of FAW Bestune had been completed. The registered capital of FAW Car is
CNY 4,609,666,212.00 after this change.
In May 2020, the name of FAW Car was changed to “FAW Jiefang Group Co., Ltd.” and the stock abbreviation
was changed to “FAW Jiefang”.
On January 11, 2021, the Company held the first 2021 extraordinary shareholders’ meeting, and reviewed and
approved the Proposal on the Restricted Share Incentive Plan of FAW Jiefang Group Co., Ltd. (Draft) and Its
Abstract, the Proposal on the Regulations for the Implementation Assessment of Restricted Share Incentive Plan
of FAW Jiefang Group Co., Ltd., the Proposal on the Regulations for Restricted Share Incentive of FAW
Jiefang Group Co., Ltd., and the Proposal on Requesting the Shareholders Meeting to Authorize the Board of
Directors to Handle Matters Related to the Company’s Restricted Share Incentive Plan. On January 15, 2021,
the Company held the 12th meeting of the 9th Board of Directors, and reviewed and approved the Proposal on
Adjusting the List of the First Batch of Incentive Objects and the Number of Grants in the Phase I Restricted
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Share Incentive Plan and the Proposal on Granting Restricted Shares to the Incentive Objects of the Phase I
Restricted Share Incentive Plan for the First Time. Nine directors and senior executives, including Hu Hanjie,
Zhu Qixin, Zhang Guohua, Wang Ruijian, Shang Xingwu, Ou Aimin, Kong Dejun, Wu Bilei and Wang Jianxun,
and 310 other core employees with the title of senior director and above were granted to subscribe for
Company was changed to CNY 4,650,653,869.00. This change was verified by the Capital Verification Report
(ZTYZ (2021) No.110C000033) issued by Grant Thornton Certified Public Accountants (Special General
Partnership). On February 1, 2021, the Company disclosed the Announcement on the Completion of the First
Grant Registration of Phase I Restricted Share Incentive Plan.
On December 9, 2021, the Company held the 20th meeting of the 9th Board of Directors and the 19th meeting
of the 9th Board of Supervisors, and reviewed and approved the Proposal on Granting Reserved Part of
Restricted Shares in the Phase I Restricted Share Incentive Plan to Incentive Objects and the Proposal on
Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan
respectively. Thirty-three core technicians and management backbones, including Wang Manhong, Zhang Yu
and Qu Yi, subscribed for 3,721,601 new shares at an issue price of CNY 6.38/share, and 260,857 shares were
repurchased at a price of CNY 7.04/share from 2 employees who were no longer eligible for incentive objects.
The registered capital of the Company was changed to CNY 4,654,114,613.00. This change was verified by the
Capital Verification Report (ZTYZ (2021) No.110C000927) issued by Grant Thornton Accounting Firm
(special general partnership). On January 6, 2022, the Company disclosed the Announcement on the
Completion of Registration of the Grant of Reserved Part of Restricted Shares in the Phase I Restricted Share
Incentive Plan. On January 17, 2022, the Company disclosed the Announcement on the Completion of
Repurchase and Cancellation of Some Restricted Shares.
On August 29, 2022, the Company held the 26th meeting of the 9th Board of Directors and the 23rd meeting of
the 9th Board of Supervisors, and reviewed and approved the Proposal on Repurchase and Cancellation of
Partial Restricted Shares in the Phase I Restricted Share Incentive Plan. It was agreed to repurchase 789,711
shares at a price of CNY 6.39/share from 6 employees who are no longer qualified as incentive objects, and the
registered capital of the Company was changed to CNY 4,653,324,902.00. This change was verified according
to the Capital Verification Report (XYZH/2022CCAA2B0016) issued by ShineWing Accounting Firm (special
general partnership). On November 14, 2022, the Company disclosed the Announcement on Completion of
Repurchase and Cancellation of Some Restricted Shares.
On October 28, 2022, the Company held the 28th meeting of the 9th Board of Directors and the 24th meeting of
the 9th Board of Supervisors, and reviewed and approved the Proposal on Repurchase and Cancellation of
Partial Restricted Shares in the Phase I Restricted Share Incentive Plan, and agreed to repurchase 1,359,247
shares at a price of CNY 6.39/share from 11 employees who are no longer qualified as incentive objects. The
registered capital of the Company was changed to CNY 4,651,965,655.00. This change was verified according
to the Capital Verification Report (XYZH/2023CCAA2B0001) issued by ShineWing Accounting Firm (special
general partnership). On January 17, 2023, the Company disclosed the Announcement on Completion of
Repurchase and Cancellation of Some Restricted Shares.
On December 15, 2022, the Company held the 30th Meeting of the 9th Board of Directors and the 26th Meeting
of the 9th Board of Supervisors, and reviewed and approved the Proposal on the Achievement of Unlocking
Conditions in the First Release Period of the Restricted Shares Firstly Granted in the Phase I Restricted
Incentive Plan. The unlocking conditions in the first release period of the restricted shares firstly granted in the
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
phase I restricted incentive plan had been fulfilled. The unlocking matters of the first restriction releasing period
for restricted shares firstly granted were handled in accordance with the restricted share incentive plan. There
were a total of 311 incentive objects eligible for unlocking, and the number of restricted stocks unlocked this
time was 13,042,347, and these shares were listed on May 16, 2023. On February 3, 2024, the Company
disclosed the Indicative Announcement on the Listing and Circulation of Unlocked Shares in the First Release
Period of the Restricted Shares Firstly Granted in the Phase I Restricted Share Incentive Plan.
The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share
Incentive Plan was reviewed and approved at the 30th Meeting of the 9th Board of Directors and the 26th
Meeting of the 9th Board of Supervisors on December 15, 2022. The participants at the meeting agreed to
repurchase and cancel all or some restricted shares granted to 6 incentive objects but not yet released, totaling
was verified according to the Capital Verification Report (XYZH/2023CCAA2B0103) issued by ShineWing
Accounting Firm (special general partnership). On April 28, 2023, the Company disclosed the Announcement
on Completion of Repurchase and Cancellation of Some Restricted Shares.
On March 31, 2023, the Proposal on Unfulfilling Conditions for Releasing Restricted Sales in the Second
Period of Releasing Restricted Shares Firstly Granted and Conditions for the First Period of Releasing
Restricted Shares Reserved for Granting in Phase I Restricted Share Incentive Plan and Repurchase and
Cancellation of Some Restricted Shares was reviewed and approved at the 32nd Meeting of the 9th Board of
Directors and the 28th Meeting of the 9th Board of Supervisors. The participants at the meeting agreed to
repurchase and cancel all or some restricted shares granted to 327 incentive objects but not yet released, totaling
was verified according to the Capital Verification Report (XYZH/2023CCAA2B017) issued by ShineWing
Accounting Firm (special general partnership). On June 30, 2023, the Company disclosed the Announcement on
Completion of Repurchase and Cancellation of Some Restricted Shares.
On April 27, 2023, the Company held the 2nd Meeting of the 10th Board of Directors and the 2nd Meeting of
the 10th Board of Supervisors, respectively, and reviewed and approved the Proposal on Releasing Restriction
on Sales of Part of Restricted Shares. The Board of Directors believed that conditions for releasing restricted
sales of restricted shares in the first restriction releasing period for incentive objects Hu Hanjie, Wu Bilei,
Zhang Guohua and Wang Jianxun had been fulfilled, and agreed to release restricted sales of restricted shares in
the first restriction releasing period for them, totaling 64,954 shares. These shares were listed on May 16, 2023.
On May 15, 2023, the Company disclosed the Indicative Announcement on Sales Restriction Releasing and
Listing and Circulation of Part of Restricted Shares.
The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share
Incentive Plan was reviewed and approved at the 5th Meeting of the 10th Board of Directors and the 4th
Meeting of the 10th Board of Supervisors on August 29, 2023. The participants at the meeting agreed to
repurchase and cancel all or some restricted shares granted to 8 incentive objects but not yet released, totaling
was verified according to the Capital Verification Report (XYZH/2023CCAA2B0188) issued by ShineWing
Accounting Firm (special general partnership). On November 29, 2023, the Company disclosed the
Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares.
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The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share
Incentive Plan was reviewed and approved at the 7th Meeting of the 10th Board of Directors and the 6th
Meeting of the 10th Board of Supervisors on November 20, 2023. The participants at the meeting agreed to
repurchase and cancel all or some restricted shares granted to some incentive objects but not yet released,
totaling 512,807 shares, and the registered capital of the Company was changed to CNY 4,636,485,668. This
change was verified according to the Capital Verification Report (XYZH/2024CCAA2B0020) issued by
ShineWing Accounting Firm (special general partnership). On March 28, 2024, the Company disclosed the
Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares.
On March 28, 2024, the Company held the 11th meeting of the 10th Board of Directors and the 10th meeting of
the 10th Board of Supervisors. Subsequently, on April 25, 2024, the Company held its 2023 Annual General
Meeting of Shareholders. These meetings reviewed and approved “Proposal on Unfulfilling Conditions for
Releasing Restricted Sales in the Third Period of Releasing Restricted Shares Firstly Granted and Conditions
for the Second Period of Releasing Restricted Shares Reserved for Granting in Phase I Restricted Share
Incentive Plan and Repurchase and Cancellation of Some Restricted Shares.” The meetings approved the
repurchase and cancellation of 12,621,954 restricted shares that had been granted to plan participants but had
not yet vested. As a result, the Company’s registered capital will be changed to CNY 4,623,863,714. This
change was verified according to the Capital Verification Report (XYZH/2024CCAA2B0173) issued by
ShineWing Accounting Firm (special general partnership). On June 15, 2024, the Company disclosed the
Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares.
On March 28, 2025, the Company held the 24th meeting of the 10th Board of Directors and the 20th meeting of
the 10th Board of Supervisors, and subsequently, on April 18, 2025, the 2024 Annual General Meeting of
Shareholders. At these meetings, the “Proposal on Unfulfilled Conditions for the Third Release Period of the
Phase I Restricted Share Incentive Plan and the Repurchase and Cancellation of Some Restricted Shares, as well
as Adjustment of Repurchase Price” was reviewed and approved. The meetings approved the repurchase and
cancellation of 1,090,201 restricted shares that had been granted to incentive participants but had not yet been
released from restriction. Consequently, the Company’s registered capital will be adjusted to CNY
issued by Grant Thornton Accounting Firm (special general partnership). On June 10, 2025, the Company
disclosed the Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares.
According to the resolutions passed at the Company’s Second Extraordinary General Meeting of Shareholders
in 2023 and the Second Extraordinary General Meeting of Shareholders in 2024, and as approved by the
CSRC’s document “Reply on Approving the Registration of FAW Jiefang Group Co., Ltd.’s Non-public
Issuance of Shares” (CSRC [2024] No.972) issued on June 21, 2024, the Company conducted a non-public
issuance of 298,507,462.00 A-shares, increasing the registered capital by CNY 298,507,462.00. Consequently,
the Company’s registered capital has changed to CNY 4,922,371,176.00. This non-public issuance of shares has
been verified by the Capital Verification Report (ZTYZ [2024] No.110C000357) issued by Grant Thornton
Accounting Firm (special general partnership).
The Company has established a corporate governance structure consisting of a Shareholders’ Meeting, Board of
Directors, and Board of Supervisors. It owns two wholly-owned subsidiaries - Jiefang Limited and FAW
Jiefang Group International Automobile Co., Ltd. - and one non-wholly-owned subsidiary, FAW Africa
Investment Co., Ltd. Jiefang Limited has six wholly-owned subsidiaries: FAW Jiefang Qingdao Automotive
Co., Ltd., FAW Jiefang Lvdong Recycling Technology (Wuxi) Co., Ltd., FAW Jiefang Dalian Diesel Engine
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Co., Ltd., FAW Jiefang Austria R&D Co., Ltd., FAW Jiefang Automobile Sales Co., Ltd., and FAW Jiefang
Younida Transport Technology (Tianjin) Co., Ltd.; and one non-wholly-owned subsidiary, Jiefang Motors
Tanzania Ltd. It also has 10 associated companies, namely, Sanguard Automobile Insurance Co., Ltd., FAW
Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd., FAW Changchun Ansteel Steel
Processing and Distribution Co., Ltd., Changchun Wabco Automotive Control System Co., Ltd., Suzhou Zhito
Technology Co., Ltd., FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd., Smartlink Intelligent
Technology (Nanjing) Co., Ltd., Foshan Diyiyuansu New Energy Technology Co., Ltd., Changchun
Automotive Test Center Co., Ltd. and Diyi AESC New Energy Power Technology (Wuxi) Co., Ltd.
Additionally, it owns one joint venture company, Jiefang Times New Energy Technology Co., Ltd., while FAW
(Africa) Investment Co., Ltd. has one non-wholly-owned subsidiary, FAW Vehicle Manufacturing South Africa
Co., Ltd.
Business scope of the Company: R&D, production and sales of medium and heavy trucks, vehicles, buses, bus
chassis, medium truck deformation vehicles, automobile assemblies and parts, machining, diesel engines and
accessories (non-vehicle), mechanical equipment and accessories, instruments, technical services, technical
consultation, installation and maintenance of mechanical equipment, lease of mechanical equipment and
facilities, lease of houses and workshops, labor services (excluding foreign labor cooperation and domestic
labor dispatch), sales of steel, automobile trunks, hardware & electrical equipment and electronic products,
testing of internal combustion engine, engineering technology research and testing, advertising design,
production and release, import and export of goods and technologies (excluding publication import business and
commodities and technologies restricted or prohibited for import and export by the state); (the following items
are operated by the branch company) Chinese food production and sales, warehousing and logistics (excluding
flammable, explosive and precursor dangerous chemicals), automobile repair, tank manufacturing of chemical
liquid tanker, automobile trunk manufacturing (items subject to approval according to law can be operated only
after being approved by relevant authorities).
Registered address of the Company: No.2259, Dongfeng Street, Changchun Automobile Development Zone,
Jilin Province.
The legal representative of the Company is Li Sheng.
The financial statements and notes to the financial statements were approved for issue by the Board of Directors
of the Company on August 21, 2025.
IV. Basis of Preparation for Financial Statements
The financial statements are prepared according to the Accounting Standards for Business Enterprises issued by
the Ministry of Finance and its application guidelines, interpretations and other relevant provisions (hereinafter
collectively referred to as “ASBE”). Besides, the Company also discloses relevant financial information
according to the Rules No.15 for Preparing Information Disclosure by Companies Offering Securities to the
Public - General Provisions on Financial Reporting (2023 Revision) issued by China Securities Regulatory
Commission.
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The financial statements are presented on continuing operations.
The financial accounting of the Company is based on the accrual basis. The financial statements are prepared on
a historical cost basis except for certain financial instruments. If the assets are impaired, the corresponding
provision for impairment shall be made as specified.
V. Significant Accounting Policies and Accounting Estimates
Tips for specific accounting policies and accounting estimates:
The Company determines the depreciation of fixed assets, amortization of intangible assets, capitalization
criteria for R&D expenses, and revenue recognition policies based on its own production and operating
characteristics. For specific accounting policies, please refer to Notes 21, 24, and 31 in V “Significant
Accounting Policies and Accounting Estimates” of Section VIII – Financial Report.
The financial statements prepared by the Company met the requirements of ASBE and truly and fully reflected
the consolidated and company’s financial position of the Company as of June 30, 2025, and information such as
consolidated and company’s operating results and consolidated and company’s cash flow for 2025 H1.
The accounting period of the Company is a calendar year, namely, from January 1 to December 31 every year.
The operating cycle of the Company is 12 months.
The Company and its domestic subsidiaries use CNY as their recording currency. The Company’s overseas
subsidiaries determine their functional currency based on the currency of the main economic environment in
which they operate. The Company uses CNY to prepare the financial statements.
?Applicable □Not applicable
Item Materiality Criteria
Receivables with significant provision for bad debts 10% of the absolute value of net profit or 10% of
by individual item similar business
Write-off of significant receivables in the current 10% of the absolute value of net profit or 10% of
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period similar business
Significant changes in the book value of contractual 10% of the absolute value of net profit or 10% of
assets similar business
Major projects under construction
similar business
Significant capitalized R&D projects
similar business
control
(1) Business combination under common control
As to the business combination under common control, the assets and liabilities of the combined party
obtained by the combining party are calculated in the book value in the consolidated financial statements of the
ultimate controller by the combined party on the combination date. The capital reserve (stock premium) is
adjusted based on the difference between the book value of the combination consideration and the book value of
the net assets obtained in the combination. The retained earnings are adjusted if the capital reserve (stock
premium) is insufficient for offset.
Business combination under common control realized step-by-step through multiple transactions
The assets and liabilities of the combined party obtained by the combining party in the combination are
measured based on the book value of the ultimate controlling party in the consolidated financial statements on
the combination date. The capital reserve (share capital premium) is adjusted based on the difference between
the sum of the book value of the pre-combination investment and the book value of the newly paid
consideration on the combination date and the book value of the net assets obtained in the combination. The
retained earnings are adjusted if the capital reserve is insufficient for offset. The long-term equity investment
held before the acquisition of the combined party’s control by the combining party and the profit or loss, other
comprehensive incomes and changes in other owners’ equities that have been recognized during the period from
the date of acquisition of the original equity, or the date of common control of the combining party and the
combined entity (which is later) to the combination date shall offset against the retained opening earnings or
current profit or loss respectively during the period of comparative statement.
(2) Business combination not under common control
In case of business combination not under common control, the combination cost is the fair value of assets paid,
liabilities incurred or assumed and equity securities issued on the acquisition date for acquiring the control over
the acquiree. The assets, liabilities and contingent liabilities of the acquiree obtained are recognized as per the
fair value on the acquisition date.
Where the combination cost is greater than the fair value of identifiable net assets obtained from the acquiree,
the difference shall be recognized as goodwill and subsequently measured by deducting the accumulated
depreciation provision by cost; Where the combination cost is less than the fair value of identifiable net assets
obtained from the acquiree, the difference shall be included in current profits and losses after review.
Business combination not under common control realized step-by-step through multiple transactions
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The combination cost is the sum of the consideration paid on the acquisition date and the fair value of the
acquiree’s equity already held before the acquisition date on the acquisition date. The acquiree’s equity held
before the acquisition date shall be remeasured at the fair value of the equity on the acquisition date. The
difference between the fair value and its book value shall be included in the investment income for the current
period. If the acquiree’s equity held before the acquisition date involves other comprehensive income, changes
in other owner’s equities shall be transformed into the current profit on the acquisition date, except other
comprehensive income generated due to remeasuring the change in net liabilities or net assets of the defined
benefit plan (DBP) by the investee, and other comprehensive income related to a non-trading equity instrument
investment originally measured at fair value with its changes included in other comprehensive income.
(3) Disposal of related handling charges for business combination
The overhead for the business combination of the combining party, including the expenses for audit, legal
services, assessment, and other administrative expenses, shall be recorded in current profits and losses when
they occur. The transaction expenses of the equity securities or liability securities issued as the consideration for
the combination shall be recorded as the initial recognition amount of the equity securities or liability securities.
(1) Criteria for control
The scope of consolidated financial statements is determined on the basis of control. Control refers to the power
of the Company over the investee, with which the Company enjoys variable returns through participating in
related activities of the investee and is able to influence its amount of return with the power over the investee.
The Company will carry out re-assessment when changes in relevant facts and circumstances result in changes
in elements involved in the definition of control.
When determining whether to include structured entities in the consolidation scope, the Company assesses
whether to control the structured entity by comprehensively taking all facts and circumstances into
consideration, including assessing the purpose and design of the structured entity, identifying the types of
variable returns, and assessing whether it assumes part or all of the variability of the returns through its
participation in related activities of the entity.
(2) Preparation methods of consolidated financial statements
The consolidated financial statements are prepared by the Company based on the financial statements of the
Company and its subsidiaries and with other relevant data. The major accounting policies and accounting
periods adopted by the subsidiaries are defined as the same as those of the Company during the preparation of
the consolidated financial statements. The significant transactions and balances between companies are offset.
During the reporting period, a subsidiary or business added as a result of business combination under common
control is considered to have been included in the Company’s consolidation scope from the date when they
came under the control of the same ultimate controlling party. Their operating results and cash flows from that
date are included in the consolidated income statement and consolidated cash flow statement, respectively.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
For a subsidiary or business increased in the reporting period due to business combination not under common
control, its earnings, expenses and profits from the acquisition date to the end of the reporting period are
included in the consolidated profit statement, and its cash flows are included in the consolidated cash flow
statement.
The portion of shareholders’ equity of subsidiaries not belonging to the Company shall be listed separately
under the item “Shareholders’ Equity” in consolidated balance sheet as minority shareholders’ equity. The
portion of net profit or loss of subsidiaries in current period belonging to minority shareholders’ equity shall be
listed separately under the item “Minority Shareholders’ Profit or Loss” in the consolidated income statement. If
the loss of a subsidiary borne by minority shareholders exceeds the amount of their shares of owners’ equity in
the subsidiary at the beginning, the balance shall offset the minority equity.
(3) Purchase of minority shareholders’ equity in subsidiaries
The capital reserve (stock premium) in the consolidated balance sheet is adjusted based on the difference
between the newly acquired long-term equity investment cost from the purchase of minority equity and the
share of net assets in the subsidiary calculated constantly from the purchase date or combination date as per the
newly increased shareholding proportion, and the difference between the disposal price obtained from the
partial disposal of equity investment in the subsidiary without losing the right of control and the share of net
assets in the subsidiary calculated continuously from the purchase date or combination date corresponding to
the disposed long-term equity investment. The retained earnings are adjusted if the capital reserve is insufficient
for offset.
(4) Disposal of the loss of control over subsidiaries
If the control power on the original subsidiaries is lost due to the disposal of part of equity investment or other
reasons, the remaining equity shall be recalculated at fair value on the day when the control power is lost. The
balance from the sum of consideration obtained from the disposal of equity and the fair value of the remaining
equity minus the sum of the share of net assets book value and the goodwill of original subsidiaries calculated
continuously starting from the purchase date as per the original shareholding ratio shall be included in current
investment income at the loss of control.
Other comprehensive income in connection with equity investment of the original subsidiaries shall be subject
to accounting method on the same basis as the original subsidiary’s direct disposal of relevant assets or
liabilities upon the loss of control. Other changes in owners’ equity related to the original subsidiary that are
accounted by the equity method shall be transferred to the current profits and losses upon the loss of control.
Joint arrangement refers to an arrangement jointly controlled by two or more participants. Joint arrangements of
the Company include joint operations and joint ventures.
(1) Joint operation
Joint operation refers to the joint arrangement in which the Company enjoys related assets and bears related
liabilities.
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The Company recognizes the following items related to the interest share in the joint operation and carries out
accounting according to the ASBE:
A. Recognizing the assets held separately and the assets held jointly as per its shares;
B. Recognizing the liabilities borne separately and the liabilities borne jointly according to its shares;
C. Recognizing the income generated from the sale of shares enjoyed in the joint operation;
D. Recognizing the income generated from the sale of shares enjoyed in the joint operation as per its shares;
E. Recognizing the expenses incurred separately and the expenses arising from joint operation as per its shares.
(2) Joint ventures
Joint venture refers to a joint arrangement in which the Company only has power over the net assets of the
arrangement.
The Company conducts accounting for the investment of joint ventures according to provisions of the equity
method accounting for long-term equity investments.
Cash refers to the cash on hand and the deposits that are readily available for payment. Cash equivalents refer to
the short-term and highly liquid investments held by the Company that are readily convertible into known
amounts of cash and with low risk in value change.
(1) Foreign currency transaction
Foreign currency transactions of the Company are converted into the amount in recording currency at the
exchange rate determined by systematic and reasonable methods.
On the balance sheet date, the foreign currency monetary items are converted at the spot exchange rate on the
balance sheet date. The exchange difference arising from the difference between the spot exchange rate on the
balance sheet date and the spot exchange rate at the time of initial recognition or on the previous balance sheet
date is included in current profits and losses. Foreign currency non-monetary items measured at historical cost
are still converted at the spot exchange rate on the transaction date. Foreign currency non-monetary items
measured at fair value are converted at the spot exchange rate on the date when the fair value is determined. The
difference between the converted recording currency amount and the original recording currency amount is
included in current profits and losses or other comprehensive income according to the nature of the non-
monetary items.
(2) Translation of foreign currency financial statements
At the balance sheet date, when the foreign currency financial statements of overseas subsidiaries are translated,
the assets and liabilities of the balance sheet are translated to CNY using the spot exchange rate at the balance
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sheet date. Items of the shareholders’ equity, except for “undistributed profits”, are translated at the spot
exchange rate at the dates on which such items arose.
The income and expense items in the profit statement are translated at the exchange rate determined by
systematic and reasonable methods.
All items in the cash flow statement are translated at the exchange rate determined by systematic and reasonable
methods. As an adjustment item for influence amount of cash, exchange rate movement is independently
presented as “Influence of exchange rate movement to cash and cash equivalent” in cash flow statement.
Differences arising from the translation of financial statements are separately presented as “Other
comprehensive income” in the shareholders’ equity of the balance sheet.
During the disposal of overseas operation and upon the loss of the right of control, the conversion difference of
foreign currency statements listed under the shareholders’ equity items in the balance sheet and related to the
overseas operation is transferred to the current profits and losses of disposal in full or as per the disposal
proportion of the overseas operation.
Financial instruments refer to contracts that form the financial assets of a party, and form financial liabilities or
equity instruments of other parties.
(1) Recognition and derecognition of the financial instruments
The Company recognizes a financial asset or financial liability when it becomes a party to the contract of the
financial instrument.
If one of the following conditions is met, the financial assets are terminated:
① The contractual right to receive the cash flow of the financial asset is terminated.
② The financial asset has been transferred and is in accordance with the following conditions for derecognition.
If the current obligations of financial liability have been discharged in total or in part, derecognize all or part of
it. The Company (the Debtor) signs an agreement with the Creditor to replace the existing financial liabilities
with new financial liabilities; the existing financial liabilities are derecognized and the new financial liabilities
are recognized when the contractual terms of the new financial liabilities and those of the existing financial
liabilities are different in essence.
Financial assets transacted in a conventional way are subject to accounting recognition and derecognition on the
transaction date.
(2) Classification and measurement of financial assets
The Company classifies financial assets into the following three categories according to the business mode of
financial assets management and the contractual cash flow characteristics of financial assets at the time of initial
recognition: financial assets measured at amortized cost, financial assets measured at fair value with their
changes included in other comprehensive income, and financial assets measured at fair value with their changes
included in the current profits or losses.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Financial assets are measured at fair value upon initial recognition. For financial assets at fair value through
profit or loss, relevant transaction costs are directly included in current profits and losses; for other types of
financial assets, relevant transaction costs are included in the initially recognized amount. For receivables
arising from the sale of products or the provision of services that do not include or take into account significant
financing components, the Company takes the consideration amount entitled to receive in expectation as the
initially recognized amount.
Financial assets measured at amortized cost
The Company classifies the financial assets that meet the following conditions but are not designated to be
measured at fair value and with the changes included in current profits or losses as the financial assets measured
at amortized cost:
? The Company manages the financial assets in order to collect contractual cash flows;
? The contract terms of the financial assets stipulate that the cash flow generated on a specific date is
only the payment of the principal and the interest based on the outstanding principal amount.
After initial recognition, such financial assets are measured at amortized cost using the effective interest method.
Any gains or losses on financial assets at amortized cost that are not part of the hedging relationship are charged
to the current profit or loss at derecognition, amortization using the effective interest method, or recognition of
impairment.
Financial assets measured at fair value with their changes included in other comprehensive income
The Company classifies financial assets that meet the following conditions and are not designated to be
financial assets at fair value with their changes included in current profit or loss as financial assets at fair value
with their changes included in other comprehensive incomes:
? The Company manages the financial assets in order to collect contractual cash flows and sell the
financial assets;
? The contract terms of the financial assets stipulate that the cash flow generated on a specific date is
only the payment of the principal and the interest based on the outstanding principal amount.
After initial recognition, such financial assets are subsequently measured at fair value. Interests, impairment
losses or gains and exchange profits and losses calculated with the effective interest method are included in the
current profits and losses, and other gains or losses are included in other comprehensive income. When the
financial assets are derecognized, the accumulated profits or losses previously included in other comprehensive
income are transferred out and included in the current profits and losses.
Financial assets at fair value through profit or loss
Except for the above-mentioned financial assets measured at amortized cost and fair value through other
comprehensive income, the Company classifies all remaining financial assets as financial assets measured at
fair value through profit or loss. At the time of initial recognition, in order to eliminate or significantly reduce
accounting mismatch, the Company irrevocably designates some financial assets that should be measured at
amortized cost or fair value through other comprehensive income as financial assets measured at fair value
through current profits and losses.
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After initial recognition, such financial assets are subsequently measured at fair value, and the gains or losses
(including interest and dividend income) incurred are included in current profits and losses unless they are part
of a hedging relationship.
The business model of managing financial assets refers to how the Company manages financial assets to
generate cash flows. The business model determines whether the cash flow of financial assets managed by the
Company comes from collecting contractual cash flows, selling financial assets, or both. The Company
determines the business model for managing financial assets on the basis of objective facts and specific business
objectives for managing financial assets decided by key management personnel.
The Company evaluates the contractual cash flow characteristics of financial assets to determine whether the
contractual cash flow generated by relevant financial assets on a specific date is only the payment of principal
and interest based on the outstanding principal amount. Principal refers to the fair value of financial assets at
initial recognition; interest includes consideration for the time value of money, credit risk associated with the
amount of principal outstanding over a specific period, and other underlying borrowing risks, costs and profits.
Besides, the Company evaluates the contract terms that may cause changes in the time distribution or amount of
contractual cash flows of financial assets to determine whether they meet the requirements for the above-
mentioned contractual cash flow characteristics.
Only when the Company changes its business model for managing financial assets, can all affected related
financial assets be reclassified on the first day of the first reporting period after the change in business model;
otherwise, financial assets shall not be reclassified after initial recognition.
(3) Classification and measurement of financial liabilities
Financial liabilities of the Company are classified into financial liabilities at fair value through profit or loss and
financial liabilities measured at amortized cost upon initial recognition. For financial liabilities not classified as
those measured at fair value through profit or loss, relevant transaction costs are included in their initially
recognized amounts.
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and those
designated upon initial recognition to be measured at fair value through profit or loss. Such financial liabilities
are subsequently measured at fair value, and the gains or losses arising from changes in fair value as well as
dividends and interest expenses related to such financial liabilities are included in current profits and losses.
Financial liabilities measured at amortized cost
Other financial liabilities are subsequently measured at amortized cost using the effective interest method, and
gains or losses arising from derecognition or amortization are included in current profits and losses.
Distinction between financial liabilities and equity instruments
Financial liabilities refer to those that meet one of the following conditions:
① Contractual obligations to deliver cash or other financial assets to other parties.
② Contractual obligations to exchange financial assets or financial liabilities with other parties under
potentially adverse conditions.
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③ A non-derivative instrument contract that must or can be settled with the enterprise’s own equity instruments
in the future, and according to which the enterprise will deliver a variable number of its own equity instruments.
④ A derivative contract that must or can be settled with the enterprise’s own equity instruments in the future,
except for derivative contracts where a fixed amount of its own equity instruments is exchanged for a fixed
amount of cash or other financial assets.
An equity instrument refers to a contract that can prove the residual equity in the assets of an enterprise after all
liabilities are deducted.
If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or other
financial assets, the contractual obligation meets the definition of financial liabilities.
If a financial instrument must or can be settled with the Company’s own equity instruments, it is necessary to
consider whether the Company’s own equity instruments used for settlement of such instruments are used as
substitutes for cash or other financial assets or to enable the instrument holder to enjoy residual equity in the
assets of the issuer after deduction of all liabilities. If meets the former condition, the financial instrument
should be recognized as financial liabilities; If meets the latter condition, the financial instrument is recognized
as an equity instrument.
(4) Fair value of financial instruments
For the determination methods for the fair value of financial assets and liabilities, refer to 38 “Others” in V
“Significant Accounting Policies and Accounting Estimates” of Section VIII - Financial Report.
(5) Impairment of financial assets
The Company accounts for impairment and recognizes the loss provision for the following items on the basis of
expected credit losses:
? Financial assets measured at amortized cost;
? Receivables and debt instrument investments measured at fair value through other comprehensive
income;
? Contract assets as defined in ASBE No.14 - Revenue;
? Lease receivables;
? Financial guarantee contracts (except for those measured at fair value through profit and loss, where the
transfer of financial assets does not meet derecognition conditions or is continuously involved in the
transferred financial assets).
Measurement of expected credit losses
Expected credit loss refers to the weighted average of the credit losses of financial instruments that are weighted
by the risk of default. Credit loss refers to the difference between all contractual cash flows receivable
according to the contract and discounted by the Company at the original effective interest rate and all cash flows
expected to be collected, that is, the present value of all cash shortages.
The Company considers reasonable and reliable information about past events, current situation and forecast of
the future economic situation, weighs the risk of default, calculates the probability weighted amount of the
present value of the difference between the cash flow receivable from the contract and the cash flow expected to
be received, and recognizes the expected credit loss.
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The Company measures the expected credit losses of financial instruments at different stages respectively. For
financial instruments for which the credit risk has not significantly increased since initial recognition, they are
classified in Stage 1. The Company measures the loss provision based on expected credit losses over the next 12
months. For financial instruments in which the credit risk has significantly increased since initial recognition
but no credit impairment has occurred, they are classified in Stage 2. The Company measures the loss provision
based on the expected credit losses over the entire remaining lifetime of the instrument. For financial
instruments in which a credit impairment has occurred since initial recognition, they are classified in Stage 3.
The Company measures the loss provision based on the expected credit losses over the entire remaining lifetime
of the instrument.
The Company assumes that the credit risk of the financial instruments with a low credit risk on the balance
sheet date has not increased significantly since the initial recognition, and measures the provision for loss based
on the expected credit loss in the next 12 months.
The expected credit loss during the whole duration refers to the expected credit loss caused by all default events
that may occur during the whole expected duration of financial instruments. The expected credit loss in the next
after the balance sheet date (or the expected duration if the expected duration of financial instruments is less
than 12 months), which is a part of the expected credit loss in the whole duration.
During the measurement of expected credit losses, the maximum term to be considered by the Company is the
maximum contract term of the enterprise facing credit risk (including the option to renew the contract).
For financial instruments in the first and second stages and with low credit risk, the Company calculates interest
income according to the book balance before deducting impairment provision and the actual interest rate. For
financial instruments in the third stage, interest income is calculated according to their book balance minus the
amortized cost after impairment provision and the effective interest rate.
Notes receivable, accounts receivable and contract assets
For notes receivable, accounts receivable and contract assets, the Company always measures their loss provision
according to the amount equivalent to the expected credit loss in the whole duration no matter whether there is
any significant financing component.
If the expected credit loss of a single financial or contractual asset cannot be evaluated at a reasonable cost, the
Company divides the notes receivable, accounts receivable and contractual assets into portfolios according to
the credit risk characteristics based on the following, and calculates the expected credit loss on the basis of the
portfolios:
A. Notes receivable
? Notes receivable portfolio 1: bank acceptance bills
? Notes receivable portfolio 2: commercial acceptance bills
B. Accounts receivable
? Aging portfolio
C. Contract assets
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? Aging portfolio
The Company calculates the expected credit loss of the notes receivable and contract assets divided into
portfolios by referring to the historical credit loss experience, combining the current situation and the forecast of
the future economic situation, and based on the default risk exposure and the expected credit loss rate for the
whole duration.
For accounts receivable divided into portfolios, the Company prepares a comparison table of account receivable
aging/overdue days and expected credit loss rate for the whole duration with a reference to historical credit loss
experience and in combination with the current situation and forecast of the future economic situation, so as to
calculate the expected credit loss. The aging of accounts receivable is calculated from the date of recognition,
and the number of days overdue from the credit expiration date.
Other receivables
The Company divides other receivables into several portfolios according to the credit risk characteristics based
on the following, and calculates the expected credit loss according to the portfolios:
? Portfolio 1 of other receivables: portfolio of margin, deposit and reserve fund
? Portfolio 2 of other receivables: aging portfolio
For other receivables divided into portfolios, the Company calculates the expected credit loss through default
risk exposure and expected credit loss rate in the next 12 months or the whole duration. The aging of other
receivables divided into portfolios by aging is calculated from the date of recognition.
Long-term receivables
The Company’s long-term receivables include the receivables from sales of goods by installments.
The Company divides the long-term receivables into several portfolios according to the credit risk
characteristics based on the following, and calculates the expected credit loss on the basis of the portfolios:
? Long-term receivables portfolio 1: receivables from sales of goods by installments
? Long-term receivables portfolio 2: other receivables
The Company calculates the expected credit loss of the receivables from sales of goods by installments based
on the default risk exposure and the expected credit loss rate for the whole duration with a reference to the
historical credit loss experience, the current situation and the forecast of the future economic situation.
The Company calculates the expected credit loss of other receivables and long-term receivables divided into
portfolios other than receivables from sales of goods by installments according to the default risk exposure and
the expected credit loss rate in the next 12 months or the whole duration.
Debt investment and other debt investments
For debt investments and other debt investments, the Company calculates expected credit losses according to
the nature of the investment, various types of counterparties and risk exposures, default risk exposures and
expected credit loss rates in the next 12 months or throughout the duration.
Assessment of significant increase in credit risk
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The Company compares the risk of default of financial instruments on the balance sheet date with the risk of
default on the initial recognition date so as to determine the relative change in the default risk of financial
instruments in the expected duration and evaluate whether the credit risk of financial instruments has increased
significantly since the initial recognition.
In determining whether the credit risk has increased significantly since initial recognition, the Company
considers reasonable and well-founded information (including forward-looking information) that can be
obtained without unnecessary additional costs or efforts. The information to be considered by the Company is
as follows:
? Failure of the debtor to pay the principal and interest on the due date of the contract;
? Serious deterioration in the external or internal credit rating (if any) of the financial instrument that has
occurred or is expected;
? Serious deterioration of the debtor’s operating results that has occurred or is expected;
? Changes in the technical, market, economic or legal environment that have occurred or are expected
and their potential material adverse effect on the repayment ability of the debtor to the Company.
According to the nature of financial instruments, the Company evaluates whether the credit risk has increased
significantly on the basis of individual financial instruments or portfolios of financial instruments. When
evaluating on the basis of portfolios of financial instruments, the Company may classify the financial
instruments based on common credit risk characteristics, such as overdue information and credit risk rating.
If it is overdue for more than 30 days, the Company determines that the credit risk of financial instruments has
increased significantly.
Credit-impaired financial assets
The Company evaluates on the balance sheet date whether credit impairment has occurred on the financial
assets measured at amortized cost and on the creditor’s debt investment measured at fair value through other
comprehensive income. A financial asset becomes credit-impaired when one or more events that have an
adverse impact on its expected future cash flows occur. Evidence of credit impairment of financial assets
includes the following observable information:
? The issuer or the debtor is involved in serious financial difficulties;
? The debtor breaches the contract, such as default on or overdue repayment of interest or principal;
? The Company, for economic or contractual reasons relating to the debtor’s financial difficulty, grants
the debtor concessions that would not have been made in any other circumstances;
? There is a great possibility of bankruptcy or other financial restructuring of the debtor;
? The financial difficulties of the issuer or debtor result in the disappearance of the active market of such
financial assets.
Presentation of provision for expected credit loss
In order to reflect the changes in the credit risk of financial instruments since the initial recognition, the
Company remeasures the expected credit loss on each balance sheet date; the increased or reversed amount of
the loss provision arising therefrom shall be included in the current profits and losses as impairment losses or
gains. The loss provision of the financial assets measured at amortized cost is used to offset their book value
presented in the balance sheet. For the debt investment measured at fair value with its changes included in other
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
comprehensive income, the Company recognizes its loss provision in other comprehensive income, which will
not offset the book value of the financial assets.
Write-off
The Company writes down the book balance of the financial assets when it no longer reasonably expects that
the contractual cash flow of the financial asset can be recovered in whole or in part. Such write-down
constitutes the derecognition of related financial assets. This usually occurs when the Company determines that
the debtor has no assets or sources of income that can generate sufficient cash flows to repay the amount to be
written down. However, the written-down financial assets may still be affected by the execution activities
according to the Company’s procedures for recovering due amounts.
Any financial assets that have been previously written off and subsequently recovered are recognized as a
reversal of impairment loss and recorded in the current period’s income statement.
(6) Transfer of financial assets
Transfer of financial assets refers to the assignment or delivery of financial assets to the party (transferee) other
than the issuer of such financial assets.
The financial asset is derecognized if the Company has transferred substantially all the risks and rewards of
ownership of a financial asset to the transferee. The financial asset is not derecognized if the Company has
retained substantially all the risks and rewards of ownership of a financial asset.
If the Company neither transfers nor retains almost all risks and rewards of ownership of a financial asset, it
shall deal with them as follows: if the control over the financial asset is waived, the financial asset shall be
derecognized and the assets and liabilities incurred shall be recognized; if the control over the financial asset is
not waived, the relevant financial asset shall be recognized to the extent that it continues to be involved in the
transferred financial asset, and the relevant liabilities shall be recognized accordingly.
(7) Offset of financial assets and financial liabilities
Financial assets and financial liabilities are presented in the balance sheet with the amount after offsetting each
other when the Company has a legal right to offset the recognized financial assets and financial liabilities and
the legal right can be exercised currently, and when the Company intends either to settle on a net basis, or to
realize the financial assets and pay off the financial liabilities simultaneously. In other cases, financial assets
and financial liabilities are presented separately in the balance sheet and are not offset against each other.
Refer to 11 “Financial instruments” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
Refer to 11 “Financial instruments” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Refer to 11 “Financial instruments” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
For determination methods and accounting methods of expected credit losses of other receivables,
Refer to 11 “Financial instruments” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
Refer to 11 “Financial instruments” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
(1) Classification of inventories
The inventories of the Company are divided into raw materials, self-made semi-finished products and goods in
process, goods in stock, revolving materials, etc.
(2) Valuation method for inventories sent out
The Company’s inventories are accounted for at the planned cost when acquired. The difference between the
planned cost and the actual cost is accounted for through the cost variance account, and the cost variance that
should be borne by the inventories sent out is carried forward on schedule to adjust the planned cost to the
actual cost.
(3) Basis and method for provision of inventory depreciation reserves
On the balance sheet date, inventories are measured at the lower of cost and net realizable value. When the net
realizable value of the inventories is lower than their cost, a provision for inventory depreciation reserves is
made.
Net realizable value refers to the difference between the estimated sale price of inventory less the cost to
estimated be incurred until completion, estimated sales expenses and related taxes. The net realizable value of
inventories is determined based on the unambiguous evidence obtained as well as the consideration of the
purpose of holding inventories and the impact of events after the balance sheet date.
The Company makes provision for inventory depreciation reserves on an individual inventory item basis.
Provision for inventory depreciation reserves is made by inventory category for inventories with large quantities
and low unit prices.
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On the balance sheet date, if the factors affecting the previous write-down of inventory value have disappeared,
the inventory falling price reserves shall be reversed within the amount originally provided for.
(4) Inventory system
The Company adopts the perpetual inventory system.
Low-value consumables and packaging materials of the Company are amortized by one-off write-off method
when acquired.
Refer to 11 “Financial instruments” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
Long-term equity investments include equity investments to subsidiaries, joint ventures and associated
enterprises. The investee which may be subject to significant influence of the Company is an associated
enterprise of the Company.
(1) Recognition of initial investment cost
Long-term equity investments acquired from the business combination: For the long-term equity investment
acquired from the business combination under common control, the investment cost refers to the share of the
book value of the owner’s equity of the combined party in the consolidated financial statements of the ultimate
controlling party on the combination date; for the long-term equity investment acquired from the business
combination not under common control, the investment cost refers to the combination cost.
For long-term equity investments acquired by other methods: For those acquired with cash payment, the actual
purchase price shall be recognized as the initial investment cost; for those acquired through the issuance of
equity securities, the fair value of issued equity securities shall be recognized as the initial investment cost.
(2) Subsequent measurement and recognition of profit or loss
Investments to subsidiaries are accounted for with the cost method unless the investment meets the conditions
for held-for-sale; investments to associated enterprises and joint ventures are accounted for with the equity
method.
For long-term equity investments calculated by cost method, except for the declared but not yet released cash
dividends or profits included in the actual price or consideration paid when the investment is acquired, the
distributed cash dividends or profits declared by the investee shall be recognized as investment income and
included in current profits and losses.
For the long-term equity investments accounted for with the equity method, the investment cost is not adjusted
if the initial investment cost exceeds the share of the fair value of the investee’s identifiable net assets at the
time of the investment; the book value of the long-term equity investment is adjusted and the difference is
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
included in the current profits and losses if the initial investment cost is less than the share of fair value of the
investee’s identifiable net assets at the time of the investment.
For accounting with the equity method, the investment income and other comprehensive income shall be
recognized respectively according to the share of the net profits and losses and other comprehensive income
realized by the investee that shall be enjoyed or shared. Meanwhile, the book value of the long-term equity
investments shall be adjusted. The part of due share shall be calculated according to the distributed profit or
cash dividend declared by the investee, and the book value of the long-term equity investment shall be reduced
accordingly. For other changes in owners’ equity of the investee except net profit and loss, other comprehensive
income and profit distribution, the book value of long-term equity investment shall be adjusted and included in
capital reserve (other capital reserve). The Company recognizes its share of the investee’s net profits or losses
based on the fair values of the investee’s individual separately identifiable assets at the time of acquisition, after
making appropriate adjustments thereto in conformity with the accounting policies and accounting periods of
the Company.
The sum of the fair value of the original equity and the new investment cost is taken as the initial investment
cost calculated with the equity method on the date of conversion if it is possible to exert significant influence on
or implement joint control but not constitute control over the investee due to additional investment or other
reasons. The cumulative changes in fair value originally included in other comprehensive income related to the
original equity are transferred to retained earnings when the equity method is adopted if the original equity is
classified as a non-trading equity instrument measured at fair value through other comprehensive income.
In case the Company loses joint control of or the significant influence on the investee due to the disposal of part
of the equity investment, the residual equity after the disposal is accounted for in accordance with the
Accounting Standards for Business Enterprises No.22 - Recognition and Measurement of Financial Instruments
on the date of losing the joint control or significant influence, and the difference between the fair value and the
book value is included in the current profits and losses. Other comprehensive income recognized from the
original equity investment accounted with the equity method shall be accounted for on the same basis as the
direct disposal of relevant assets or liabilities of the investee when the equity method is terminated. Other
changes in owner’s equity related to the original equity investment shall be transferred into current profit and
loss.
In case the Company loses the right of control over the investee due to the disposal of partial equity investment
or other reasons, the equity method is applied, and it is deemed that the residual equity is adjusted with the
equity method from the time of acquisition if the residual equity after disposal can exert joint control over or
significant influence on the investee; the accounting is carried out according to the Accounting Standards for
Business Enterprises No.22 - Recognition and Measurement of Financial Instruments, and the difference
between the fair value and the book value on the date of losing control is included in the current profits and
losses if the residual equity after disposal cannot exert joint control over or significant influence on the investee.
If the shareholding ratio of the Company decreases due to capital increase by other investors, resulting in loss of
control but joint control over or significant influence on the investee, the Company’s share of net assets
increased due to capital increase and share expansion of the investee shall be recognized according to the new
shareholding ratio, and the difference from the original book value of long-term equity investment
corresponding to the decrease in shareholding ratio that shall be carried forward shall be included in current
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profits and losses. Then, adjustments are made based on the new shareholding ratio with the equity method as if
it had been used since the acquisition of the investment.
Unrealized gains and losses from internal transactions between the Company and its associated enterprises and
joint ventures that are attributable to the Company are calculated based on the shareholding ratio, and
investment profits and losses are recognized based on the offsetting of that portion. However, unrealized losses
from internal transactions incurred between the Company and its investee are not offset if they belong to
impairment losses from assets transferred.
(3) Basis for determining joint control and significant influence on the investee
Joint control refers to the control over certain arrangement under related agreements, and related activities of
the arrangement can only be determined with the unanimous consent of the parties sharing the control. During
the judgment of joint control, it is required to determine whether the arrangement is controlled collectively by
all participants or combinations of participants, and then determine whether decisions on activities related to the
arrangement must be made with the unanimous consent of those participants who collectively control the
arrangement. It is deemed that all participants or a group of participants collectively control the arrangement if
related activities of an arrangement can be decided only with the concerted action of all participants or a group
of participants. If there are two or more combinations of parties that can collectively control an arrangement,
this situation does not constitute joint control. For the determination of whether there is joint control, protective
rights are not taken into account.
Significant influence refers to the power of the investor to participate in making decisions on the financial and
operating policies of the investee, but cannot control or jointly control with other parties over the preparation of
these policies. The possibility of exerting significant influence on the investee is determined by considering the
influence of the voting shares of the investee directly or indirectly held by the investor and the influence when it
is assumed that the potential voting rights executable for the current period held by the investor and other
parties are converted into the equity of the investee, including the influence of the warrants, stock options and
corporate bonds which can be converted in the current period issued by the investee.
It is generally considered that the Company has significant influence on the investee when the Company
directly holds more than 20% (inclusive) but less than 50% of the voting shares of the investee or holds
indirectly through subsidiaries, unless there is clear evidence indicating that it cannot participate in the
production and operation decisions of the investee under such circumstances, in which case it has no significant
influence. It is generally not considered that the Company has significant influence on the investee when the
Company owns less than 20% (exclusive) of the voting shares of the investee, unless there is clear evidence
indicating that it can participate in the production and operation decisions of the investee under such
circumstances, in which case it has significant influence.
(4) Impairment test method and impairment provision methods
For investments to subsidiaries, associated enterprises and joint ventures, the method of provision for asset
impairment is described in 38 “Others” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
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Measurement mode of investment property
Measure by cost method
Depreciation or amortization method
Investment properties refer to the properties held for earning rent or capital appreciation, or both. Investment
properties of the Company include the land use rights that have already been rented, the land use rights held for
transfer after appreciation, and the buildings that have been rented.
Investment properties of the Company are initially measured as per the price upon acquisition and depreciated
or amortized on schedule as per relevant provisions on fixed assets or intangible assets.
For the investment real estate which is subsequently measured with the cost mode, the method of drawing asset
impairment is described in 38 “Others” in V “Significant Accounting Policies and Accounting Estimates” of
Section VIII - Financial Report.
The disposal income from the sale, transfer, retirement or damage of investment properties shall be included in
current profits and losses after deducting their book value and relevant taxes.
(1) Recognition conditions
Fixed assets of the Company refer to the tangible assets held for the production of goods, rendering of services,
the renting or operation and management, with a service life exceeding one accounting year.
The fixed assets can be recognized only when the economic benefits related to such fixed assets are likely to
flow into the enterprise and the cost of such fixed assets can be measured reliably.
Fixed assets of the Company are initially measured at the actual cost upon acquisition.
Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the related
economic benefits are likely to flow into the Company and the costs can be reliably measured. The daily repair
costs of fixed assets that do not meet the conditions for the subsequent expenditure of fixed assets capitalization
are included in the current profits and losses or the costs of relevant assets based on the beneficiaries at the time
of occurrence. For the replaced part, its book value is derecognized.
(2) Depreciation method
Depreciation Annual
Category Depreciation Period Residual Rate
Method Depreciation Rate
Houses and Straight-line
Buildings method
Machinery Straight-line 10 years 0-3 10.00-9.70
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equipment method
Transportation Straight-line
equipment method
Electronic Straight-line
equipment method
Straight-line
Office equipment 5 years 3-5 19.40-19.00
method
Straight-line
Others 5 years 0-5 20.00-19.00
method
The Company uses the straight-line method for depreciation. The depreciation of fixed assets starts when they
reach the expected serviceable condition and stops when they are derecognized or classified as non-current
assets held for sale. Depreciation rates are determined based on fixed asset categories, expected service life, and
estimated residual values without considering impairment provisions. However, for fixed assets with provision
for impairment, the accumulated amount of provision for impairment shall also be deducted to calculate and
determine the depreciation rate.
(3) For the impairment test methods and impairment provision methods of fixed assets, please refer to 38
“Others” in V “Significant Accounting Policies and Accounting Estimates” of Section VIII - Financial Report.
(4) The Company reviews the service life, expected net residual value and depreciation method of fixed assets
at the end of each year.
The service life of fixed assets shall be adjusted if the expected service life is different from the original
estimate, and the estimated net residual value shall be adjusted if the estimated net residual value is different
from the original estimate.
(5) Disposal of fixed assets
If a fixed asset is disposed of or if no economic benefit will be obtained from the use or disposal, the
recognition of such fixed asset is terminated. The disposal income from the sale, transfer, retirement or damage
of fixed assets shall be included in current profits and losses after deducting its book value and relevant taxes.
The cost of construction in progress of the Company is recognized according to the actual construction
expenditures, including various necessary construction expenditures incurred during the construction period,
borrowing costs that shall be capitalized before the construction reaches the expected condition for its intended
use, and other relevant expenses.
Construction in progress is transferred to fixed assets when it is ready for its intended use.
For the method of provision for asset impairment of construction in progress, refer to 38 “Others” in V
“Significant Accounting Policies and Accounting Estimates” of Section VIII - Financial Report.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(1) Recognition principles for capitalization of borrowing costs
Borrowing costs incurred by the Company that are directly attributable to the acquisition, construction, or
production of qualifying assets are capitalized and included in the cost of the related assets; other borrowing
costs are expensed as incurred and recognized in the current profit or loss. Borrowing costs begin to be
capitalized when all of the following conditions are met:
① Asset expenditures have been incurred, including cash payments, transfers of non-cash assets, or
assumptions of interest-bearing debts for the acquisition, construction or production of qualifying assets;
② Borrowing costs have been incurred;
③ Activities necessary to prepare the asset for its intended use or sale have commenced.
(2) Capitalization period of borrowing costs
The Company ceases capitalizing borrowing costs when qualifying assets have reached their intended usable or
saleable condition. Borrowing costs incurred after qualifying assets have reached their intended usable or
saleable condition are recognized as expenses based on amounts incurred and included in current profit or loss.
Capitalization of borrowing costs is suspended if the acquisition, construction, or production of qualifying
assets is abnormally interrupted for more than three consecutive months; borrowing costs during normal
interruptions continue to be capitalized.
(3) Calculation methods for the capitalization rate and amount of borrowing costs
For specific borrowings, the capitalized amount is calculated by deducting interest income earned from
depositing unused borrowed funds in banks or from temporary investments from the actual interest expense
incurred during the period; for general borrowings, the capitalized amount is determined by multiplying the
weighted average of general borrowings used by the portion of asset expenditures exceeding those financed by
specific borrowings by the capitalization rate of general borrowings. The capitalization rate is calculated based
on the weighted average interest rate of general borrowings.
During the capitalization period, all exchange differences arising from specific foreign currency borrowings are
capitalized, while exchange differences on general foreign currency borrowings are recognized in current profit
or loss.
(1) Service life and its determination basis, estimate, amortization method or review procedure
Intangible assets of the Company include land use rights, software, non-patented technologies, etc.
Intangible assets are initially measured at cost and their service life is analyzed and judged at the time of
acquisition. Where the service life is limited, the intangible asset is amortized over its expected service life,
from the time it is available, with an amortization method that reflects the expected realization of the economic
benefits associated with the asset. The straight-line method is adopted for amortization if the expected
realization mode cannot be determined reliably. Intangible assets with uncertain service life are not amortized.
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The amortization method for intangible assets with limited service life is as follows:
Category Service Life Amortization Method Remarks
Land use right 50 years Straight-line method
Software 2-10 years Straight-line method
Non-patented technology 5-10 years Straight-line method
The Company reviews the service life and amortization method of intangible assets with limited service life at
the end of each year. If it is different from the previous estimate, the original estimate shall be adjusted and
treated as a change in accounting estimates.
The book value of an intangible asset is transferred into the current profits and losses in full if it is expected that
the asset cannot bring economic benefits to the enterprise in the future on the balance sheet date.
For the method of provision for asset impairment of the intangible assets, refer to 38 “Others” in V “Significant
Accounting Policies and Accounting Estimates” of Section VIII - Financial Report.
(2) Scope of aggregation of expenditures on research and development and related accounting treatment
methods
The Company’s research and development expenditures are directly related to the Company’s research and
development activities, including research and development labor costs, test expenses, depreciation costs,
design fees, and trial production fees.
The Company divides the expenditures of internal research and development projects into expenditures at the
research stage and expenditures at the development stage.
The expenditures at the research stage are included in current profits and losses when incurred.
Expenditures at the development stage can be capitalized only when the following conditions are met
simultaneously, namely, it is technically feasible to complete the intangible assets so that they can be used or
sold; there is an intention to complete the intangible assets and use or sell them; the ways for intangible assets to
generate economic benefits include proving that there is a market for the products produced by using the
intangible assets or the intangible assets themselves, and proving their usefulness if they are to be used
internally; there are sufficient technical, financial and other resources to support the development of the
intangible assets and the ability to use or sell the intangible assets; the expenditure at the development stage of
the intangible assets can be measured reliably. The development expenditures failing to meet the above
conditions are included in current profits and losses when they occur.
The R&D projects of the Company enter the development stage after project approval by meeting the above
conditions and passing the technical feasibility and economic feasibility study.
The capitalized expenditures at the development stage are presented as development expenditures on the
balance sheet and are transferred into intangible assets from the date when the project realizes its intended use.
The capitalization conditions of specific research and development projects are as follows: The Company’s
research and development project ends with product planning, and the division point of the research and
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development stages lies in the fact that the overall plan of the development project is prepared and adopted
through deliberation and decision-making on the product project review meeting (that is, project initiation). The
expenses incurred in the planning stage before the project initiation are directly included in the current profits
and losses, and those incurred after the project initiation are included in expenditures in the development stage.
The asset impairment of long-term equity investment to subsidiaries, associated enterprises and joint ventures,
investment real estate subsequently measured by cost model, fixed assets, projects under construction, right-of-
use assets, intangible assets, etc. (except for inventories, deferred income tax assets and financial assets) is
recognized with the following methods:
The Company judges whether there is a sign of impairment to assets on the balance sheet date. If such a sign
exists, the Company estimates the recoverable amount and conducts the impairment test. Impairment tests shall
be carried out every year on goodwill resulting from business combination, intangible assets with uncertain
service life and intangible assets that have not yet reached their intended use no matter whether there is any sign
of impairment.
The recoverable amount is the net amount of the fair value of the assets after deducting the disposal expenses or
the present value of the expected future cash flow of the assets, whichever is higher. The Company estimates
the recoverable amount based on a single asset. If it is difficult to estimate the recoverable amount of a single
asset, the recoverable amount of the asset group shall be determined based on the asset group to which the asset
belongs. An asset group is determined based on the fact that the main cash inflows generated by the asset group
are independent of the cash inflows of other assets or asset groups.
When the recoverable amount of an asset or asset group is lower than its book value, the Company writes down
its book value to the recoverable amount, and the write-down amount is included in current profits and losses,
and the corresponding impairment provision of assets is made at the same time.
For the impairment test of goodwill, the book value of goodwill resulting from business combination is
amortized to relevant asset groups with reasonable methods from the acquisition date, or amortized to relevant
asset group portfolio if it is difficult to amortize it to relevant asset groups. Relevant asset groups or portfolios
of asset groups are those that can benefit from the synergies of business combination and are not greater than
the reporting segment determined by the Company.
If there is any sign of impairment in the asset group or portfolio of asset groups related to goodwill during the
impairment test, the impairment test shall be carried out on the asset group or portfolio of asset groups not
including goodwill, and the recoverable amount shall be calculated to determine the corresponding impairment
loss. Then, an impairment test is carried out on the asset group or portfolio of asset groups including goodwill to
compare its book value and recoverable amount, and determine the impairment loss of goodwill if the
recoverable amount is lower than the book value.
Once the impairment loss of assets is determined, it will never be reversed in subsequent accounting periods.
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Long-term unamortized expenses of the Company shall be valued as per actual cost and averagely amortized as
per the expected benefit period. The amortized value of the long-term deferred expenses that cannot benefit the
future accounting period is included in the current profits and losses.
The Company presents the contract assets or contract liabilities in the balance sheet according to the
relationship between the performance obligations and the customer’s payment. The Company presents the
contract assets and liabilities under the same contract on a net basis after offsetting each other.
Contractual liability refers to an obligation to transfer goods or services to a customer for which customer
consideration has been received or receivable, such as payments received by an enterprise prior to the transfer
of promised goods or services.
(1) Accounting method of short-term compensation
Employee compensation refers to various forms of remuneration or compensation given by enterprises to obtain
services provided by employees or to terminate labor relations. Employee compensation includes short-term
compensation, post-employment benefits, dismissal benefits and other long-term employee benefits. The
benefits provided by the enterprise to employees’ spouses, children, dependents, survivors of deceased
employees and other beneficiaries also belong to employee compensation.
According to liquidity, employee compensation is listed in the “employee compensation payable” and “long-
term employee compensation payable” items of the balance sheet.
Short-term compensation
In the accounting period when employees provide services, the Company recognizes the employee wages,
bonuses, social security contributions according to regulations such as medical insurance, work injury insurance
and maternity insurance as well as housing funds as liability, and includes them in current profits and losses or
relevant asset costs.
(2) Accounting method of post-employment benefits
The post-employment benefit plan includes defined contribution plan and defined benefit plan. The defined
contribution plan refers to the post-employment benefit plan that the enterprise will no longer bear the payment
obligation after paying fixed fees to independent funds. The defined benefit plan refers to the post-employment
benefit plan other than the defined contribution plan.
Defined contribution plan
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The defined contribution plan includes basic pension insurance, unemployment insurance and enterprise annuity
plan.
In the accounting period when employees provide services, the Company recognizes the amount payable to a
defined contribution plan as a liability, and includes it in the current profit or loss or relevant asset cost.
Defined benefit plan
The defined benefit plan shows that an actuarial valuation is performed by an independent actuary on the annual
balance sheet date, and the benefit cost is determined with the expected cumulative benefit unit method. The
Company recognizes the following components of employee benefits cost arising from defined benefit plans:
① Service costs include current service costs, past service costs and settlement gains or losses. Among them,
the current service cost refers to the increase in the present value of the defined benefit plan obligations due to
the provision of services by employees in the current period; the past service cost refers to the increase or
decrease in the present value of the defined benefit plan obligations related to the employee services in the
previous period due to the modification of the defined benefit plan.
② Net interest on net liabilities or assets of defined benefit plans, including interest income of plan assets,
interest expense of defined benefit plan obligations and interest affected by asset ceiling.
③ Changes arising from remeasurement of net liabilities or net assets of defined benefit plans.
The Company includes the above items ① and ② in the current profits and losses, unless other accounting
standards require or allow the cost of employee benefits to be included in the cost of assets; item ③ is included
in other comprehensive income and will not be reversed back to profit or loss in subsequent accounting periods,
and the part originally included in other comprehensive income within the equity scope is carried forward to
undistributed profit when the original defined benefit plan terminates.
(3) Accounting method of dismissal welfare
When the Company provides dismissal welfare to employees, the liabilities of the employee compensation
arising from dismissal welfare are recognized at the earlier of the following two dates and included in the
current profit or loss: the Company cannot unilaterally provide the dismissal welfare provided due to the labor
relation termination plan or the layoff suggestions; the Company recognizes the costs or expenses related to the
restructuring of termination benefits payment.
If the early retirement plan is implemented, the economic compensation before the official retirement date
belongs to dismissal welfare. The wages proposed to be paid to the early retired employee and the social
insurance premiums to be paid are included in the current profits and losses in a lump sum from the date when
the employee stops providing services to the normal retirement date. Economic compensation after the official
retirement date (such as normal pension) belongs to post-employment benefits.
(4) Accounting method of other long-term employee benefits
Other long-term employee benefits provided by the Company to the employees satisfying the conditions for
classifying as a defined contributions plan are accounted for in accordance with the above requirements relating
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to defined contribution plan. The benefits that meet the requirements of the defined benefit plan are treated in
accordance with the provisions of the plan. However, the “changes caused by remeasurement of net liabilities or
net assets of the defined benefit plan” in relevant employee compensation costs are included in current profits
and losses or relevant asset costs.
The Company recognizes the obligations related to contingencies as estimated liabilities if they meet all of the
following conditions:
(1) The obligation is the current obligation of the Company;
(2) Performance of this obligation will probably cause an outflow of economic interest of the Company;
(3) The amount of such obligation can be measured reliably.
Expected liabilities are initially measured at the optimal estimate required to perform the relevant current
obligation, in comprehensive consideration of the risks, uncertainty, time value of money, and other factors
pertinent to the Contingencies. The best estimate is determined by discounting the relevant future cash outflow
if the time value of money has a significant impact. At the balance sheet date, the book value of the estimated
liabilities is reviewed and adjusted by the Company to reflect the current best estimate.
If all or part of the expenditures necessary for clearing off the recognized provisions are expected to be
compensated by a third party or any other party, the amount of compensation shall be recognized as assets
separately only when it is basically sure that the amount can be obtained. The recognized amount of
compensation shall not exceed the book value of recognized liabilities.
(1) Types of share-based payment
The share-based payments of the Company are divided into equity-settled share-based payment and cash-settled
share-based payment.
(2) Determination methods for fair value of equity instruments
The Company recognizes the fair value of equity instruments such as granted options with an active market
according to the quotation of the active market. The Company recognizes the fair value of equity instruments
such as granted options without active market by using the option pricing model. The following factors are
considered in the selected option pricing model: A. exercise price of options; B. validity period of options; C.
current price of underlying shares; D. expected fluctuation ratio of stock price; E. expected dividends of shares;
F. risk-free interest rate within the validity period of options.
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(3) Basis for determining the optimal estimate of vested equity instruments
The Company makes the optimal estimate based on the latest follow-up information such as changes in the
number of vesting employees and corrects the expected number of vested equity instruments on each balance
sheet date within the vesting period. On the vesting date, the final estimated number of vested equity
instruments shall be consistent with the number of actual vested equity instruments.
(4) Accounting treatment related to implementation, modification and termination of share-based payment plan
Share-based payments settled by equity are measured at the fair value of the equity instruments granted to
employees. Where the equity instrument can be vested immediately upon being granted, the share-based
payment is included in relevant costs or expenses at the fair value of equity instrument on the granting date and
the capital reserve shall be increased accordingly. Where the equity instrument can not be vested until the
vesting period comes to an end or until the specified performance conditions are met, at each balance sheet date
within the vesting period, the services obtained in the current period are, based on the optimal estimate of the
number of vested equity instruments, included in relevant costs or expenses and capital reserve at the fair value
specified on the granting date of equity instruments. After the vesting date, it shall make no adjustment to the
relevant costs or expenses as well as the total amount of the owner’s equities which have been confirmed.
Share-based payments settled by cash are measured at the fair value of liabilities recognized based on shares or
other equity instruments assumed by the Company. Where the equity instrument can be vested immediately
upon being granted, the payment shall be included in the relevant costs or expenses at the fair value of the
liabilities assumed by the Company on the granting date, and the liabilities shall be increased accordingly.
Where the share-based payment settled by cash cannot be vested until the vesting period comes to an end or
until the specified performance conditions are met, on each balance sheet date within the vesting period, the
services acquired in current period are, based on the optimal estimation of the vesting right, included in costs or
expenses and corresponding liabilities at the fair value of the liabilities assumed by the Company. On each
balance sheet date and the settlement date prior to the settlement of the relevant liabilities, the fair value of the
liabilities shall be re-measured, with its changes included in the current profits and losses.
When the Company modifies the share-based payment plan, the increase in services obtained shall be
recognized based on the increase (if any) in the fair value of equity instruments; if the quantity of granted equity
instruments is increased, the fair value of the increased equity instruments shall be recognized accordingly as
the increase in the services obtained. The increase in the fair value of equity instruments refers to the difference
between the fair values of equity instruments before and after modification on the modification date. If the total
fair value of share-based payment is reduced in the modification or the terms and conditions of the share-based
payment plan are modified in other ways unfavorable to employees, the accounting treatment on acquired
services shall continue as if the change has never occurred, unless the Company has canceled part or all of the
granted equity instruments.
If, during the vesting period, the granted instruments are canceled (except for those canceled because of failure
to meet the non-market conditions of the vesting conditions), the Company shall accelerate the vesting of the
granted equity instruments, and immediately include the amount to be recognized in the remaining vesting
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period in the current profit and loss, and determine the capital reserve in the meantime. In the event that the
employees or other parties can choose to meet the non-vesting conditions but fail to meet such conditions
during the vesting period, the Company shall treat it as the cancellation of granted equity instruments.
(5) Restricted shares
The Company grants restricted shares to the incentive objects in the equity incentive plan, and the incentive
objects subscribe for the shares preferentially. If the unlocking conditions stipulated in the equity incentive plan
are not met subsequently, the Company will repurchase the shares at the price agreed in advance. If the
restricted shares issued to employees have completed capital increase procedures such as registration as
specified, the Company shall determine the share capital and capital reserve (share premium) according to the
share subscription money received from employees on the granting date, and determine the treasury shares and
other payables in terms of the repurchase obligation.
Accounting policies adopted for recognition and measurement of income disclosed by business type
(1) General principles
The Company recognizes its income when it has fulfilled its performance obligations of the contract, i.e., the
customer has obtained the control rights of the relevant goods or services.
If the contract contains two or more performance obligations, the Company shall, at the beginning date of the
contract, apportion the transaction price to each performance obligation according to the relative proportion of
the individual selling price of the goods or services promised by each performance obligation, and measure the
income according to the transaction price apportioned to each performance obligation.
In case one of the following conditions is met, the Company will perform the performance obligations within a
period of time. Otherwise, it will perform the performance obligations at a time point:
① The customer obtains and consumes the economic benefits brought by the performance of the contract by the
Company at the same time.
② The customer can control the goods under construction during the Company’s performance;
③ The goods produced during the performance of the Company are irreplaceable, and the Company has been
entitled to receive payment for the performance accumulated so far throughout the term of the contract.
For the performance obligations performed within a certain period of time, the Company shall determine the
income within that period according to the performance progress. If the performance progress cannot be
reasonably confirmed, and the costs incurred by the Company can be expected to be compensated, the incomes
shall be recognized according to the amount of costs incurred until the performance progress can be reasonably
confirmed.
For performance obligations performed at a certain time point, the Company shall confirm the income at the
time point when the customer gains control rights of the relevant goods or services. In determining whether a
customer has obtained the control rights of the goods or services, the Company shall take the following signs
into consideration:
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① The Company enjoys the right to the current collection, i.e., the customer has the obligation to pay
immediately with respect to the goods;
② The Company has transferred the legal ownership of the goods to the customer, i.e., the customer owns the
legal ownership of the goods;
③ The Company has transferred the goods to the customer in kind, i.e., the customer has possessed the goods;
④ The Company has transferred the major risks and remuneration on the ownership of the goods to the
customer, i.e., the customer has obtained the major risks and remuneration on the ownership of the goods.
⑤ The customer has accepted such goods or services.
⑥ Other signs indicate that the customer has obtained the right to control the goods.
(2) Specific methods
The Company’s specific method for recognizing revenue from sales of vehicles and their accessories is as
follows: When vehicles and their accessories are transported to the agreed delivery location as specified in the
contract, and the customer has accepted the goods and obtained control of the goods, the Company recognizes
revenue.
Situations where different operating models for similar businesses involve different revenue recognition
methods and measurement approaches: None
Situations where different operating models for similar businesses involve different revenue recognition
methods and measurement approaches
The contract cost includes the incremental cost incurred for obtaining a contract and the contract performance
cost.
Incremental costs incurred for obtaining a contract refer to the costs (such as sales commissions) that would not
have occurred if the Company had not obtained the contract. If the cost is expected to be recovered, the
Company recognizes it as a contract acquisition cost and an asset. Other expenditures incurred by the Company
for obtaining contracts other than incremental costs that are expected to be recovered are included in current
profits and losses when incurred.
If the cost incurred for contract performance is not within the scope of other accounting standards for business
enterprises such as inventories and meets the following conditions at the same time, the Company recognizes it
as an asset for the contract performance cost:
① The cost is directly related to a current or expected contract, including direct labor, direct materials,
manufacturing costs (or similar costs), the costs clearly borne by the customer, and other costs incurred only by
the Contract;
② This cost increases the Company’s resources for performing the performance obligations in the future;
③ This cost is expected to be recovered.
Assets recognized as contract acquisition costs and that recognized as contract performance costs (hereinafter
referred to as “assets related to contract costs”) are amortized on the same basis as revenue recognition of goods
or services related to the assets and are included in current profits and losses.
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When the book value of the assets related to the contract cost is higher than the difference between the
following two items, the Company will make provision for the impairment of the excess and recognize it as the
impairment loss on assets:
① The residual consideration expected to be obtained by the Company from the transfer of goods or services
related to the asset;
② The estimated costs to be incurred for the transfer of relevant goods or services.
The government subsidies shall be recognized when all the attached conditions can be satisfied and the
government subsidies can be received.
The government subsidies considered as monetary assets are measured at the amount received or receivable.
The government subsidies considered as non-monetary assets are measured based on the fair value, or the
nominal amount of CNY 1 if the fair value cannot be acquired reliably.
Asset-related government subsidies refer to those obtained by the Company and used for acquiring or forming
long-term assets in other ways; otherwise, they are regarded as income-related government subsidies.
For the government subsidies with the grant objects not expressly stipulated in the government documents, if
they can be used to form long-term assets, the government subsidies corresponding to the asset value are
deemed as the government subsidies related to assets while the rest is deemed as the one related to income; for
the government subsidies that are difficult to differentiate, the government subsidies as a whole are deemed as
income-related government subsidies.
Asset-related government subsidies are recognized as deferred income and included in profits or losses by
stages with a reasonable and systematic method within the service life of related assets. For the income-related
government subsidies, they shall be included in the current profit and loss if used to compensate for the incurred
related costs or losses; if used to compensate for the related costs or losses during future periods, they shall be
included in the deferred income, and included in the current profit and loss during the period when the related
costs or losses are recognized. Government subsidies measured at the nominal amount are directly included in
the current profit and loss. The Company adopts the same treatment for those transactions of similar
government subsidies.
The government subsidies related to daily activities shall be included in other incomes based on the substance
of business transactions. Government subsidies irrelevant to daily activities are included in non-business income.
If it is necessary to refund the government subsidies that have been recognized, the book value of the assets
which has been offset at the time of initial recognition is adjusted; the book balance of the deferred income
concerned (if any) is offset, and the excess is included in the current profits and losses; others are directly
included in the current profits and losses.
Income tax includes current income tax and deferred income tax. The income tax shall be included in the
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current profit and loss as income tax expenses, except that the deferred income taxes related to the adjustment
of goodwill due to business combination or the transactions or matters directly included in the owner's equity
are included in the owner’s equity.
The Company recognizes deferred income tax by the balance sheet liability method according to the temporary
difference between the book value of assets and liabilities on the balance sheet date and the tax base.
Relevant deferred tax liabilities shall be recognized for each taxable temporary difference, unless the taxable
temporary difference arises from the following transactions:
(1) The initial recognition of goodwill or the initial recognition of assets or liabilities incurred in a transaction
that is neither a business combination nor affects the accounting profit or taxable income at the time of the
transaction (except for individual transactions where the assets and liabilities initially recognized result in equal
amounts of taxable temporary differences and deductible temporary differences);
(2) Concerning the taxable temporary difference related to the investment of subsidiaries, joint ventures and
associated enterprises, the time of reversal of the temporary difference can be controlled and the temporary
difference is unlikely to be reversed in the foreseeable future.
The Company recognizes a deferred tax asset for the carry-forward of deductible temporary differences,
deductible losses and tax credits to subsequent periods, to the extent that it is probable that future taxable profits
will be available against which the deductible temporary differences, deductible losses and tax credits can be
utilized, except for those incurred in the following transactions:
(1) The transaction is neither a business combination nor affects the accounting profit or taxable income at the
time of the transaction (except for individual transactions where the assets and liabilities initially recognized
result in equal amounts of taxable temporary differences and deductible temporary differences);
(2) Corresponding deferred income tax assets are recognized if the deductible temporary difference associated
with investments in subsidiaries, associated enterprises and joint ventures meets all of the following conditions:
The temporary difference is likely to be reversed in the foreseeable future, and the taxable income which is used
to deduct the deductible temporary difference is likely to be obtained in the future.
The Company measures the deferred income tax assets and deferred income tax liabilities at the applicable tax
rate during the expected period for recovering the assets or paying off the liabilities on the balance sheet date
and reflects the impact on income tax from assets recovery or liability settlement on the balance sheet date.
At the balance sheet date, the Company reviews the book value of a deferred income tax asset. If it is likely that
sufficient taxable profits will not be available in future periods to deduct the benefit of the deferred tax assets,
the book value of the deferred tax assets is reduced. Any such write-down shall be subsequently reversed where
it becomes probable that sufficient taxable income will be available.
At the balance sheet date, deferred income tax assets and deferred income tax liabilities are presented by net
amount after set-off when both of the following conditions are satisfied:
(1) The taxpayer within the Company has the legal rights to settle the income tax assets and income tax
liabilities in the current period by net amount;
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(2) Deferred income tax assets and deferred tax liabilities are associated with the income taxes imposed by the
same taxation authority on the same taxpayer within the Company.
(1) Accounting treatment methods of lease with the Company as the lessee
Identification of lease
On the commencement date of the contract, the Company, as the lessee or lessor, evaluates whether the
customer in the contract is entitled to obtain almost all economic benefits arising from the use of the identified
assets during the use period, and is entitled to dominate the use of the identified assets during the use period. If
one party to the contract abalienates the right to control the use of one or more identified assets within a certain
period of time in exchange for consideration, the Company determines that the contract is a lease or includes a
lease.
The Company acting as the lessee
At the commencement of the lease term, the Company recognizes right-of-use assets and lease liabilities for all
leases, except for simplified short-term leases and low-value asset leases.
For the accounting policies of the right-of-use assets, see 38 “Others” in V “Significant Accounting Policies and
Accounting Estimates” of Section VIII - Financial Report.
Lease liabilities shall be initially measured at the present value calculated by the interest rate implicit in the
lease according to the unpaid lease payment on the commencement date of the lease term. If the interest rate
implicit in lease cannot be determined, the incremental borrowing rate shall be used as the discount rate. The
lease payment includes: fixed payment and substantial fixed payment. If there is a lease incentive, the amount
related to the lease incentive shall be deducted; variable lease payments depending on index or ratio; the
exercise price of the purchase option, provided that the lessee reasonably determines that the option will be
exercised; payments for exercising the option to terminate the lease, provided that the lease term reflects that the
lessee will exercise the option to terminate the lease; and the amount expected to be paid according to the
guaranteed residual value provided by the lessee. The interest expenses of the lease liabilities within each lease
term shall be calculated subsequently according to the fixed periodic rate, and included in the current profits and
losses. Variable lease payments not included in the measurement of lease liabilities are included in the current
profits and losses when they actually occur.
Short-term lease
Short-term lease refers to a lease with a lease term of not more than 12 months on the commencement date of
the lease term, except for the lease containing the purchase option.
The Company includes the lease payment for short-term lease into relevant asset costs or current profits and
losses by the straight-line method at each period within the lease term.
For short-term leases, the Company selects the aforementioned simplified treatment method for items that meet
short-term lease conditions by category of leased assets.
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Low-value asset lease
Low-value asset lease refers to the lease in which the value of a single new leased asset is less than CNY 40,000.
The Company includes the payment of low-value asset lease into relevant asset costs or current profits and
losses with the straight-line method in each period within the lease term.
For low-value asset leases, the Company selects the above simplified treatment method according to the specific
conditions of each lease.
Lease change
If the lease changes and meets the following conditions at the same time, the Company takes the lease change as
a separate lease for the accounting treatment: ① The lease change expands the lease scope by increasing the
right to use one or more leased assets; and ② the increased consideration is equivalent to the amount by
adjusting the separate price of the expanded lease scope according to the contract.
If the lease change is not taken as a separate lease for accounting treatment, the Company will, on the effective
date of the lease change, reallocate the consideration of the changed contract, redetermine the lease term, and
remeasure the lease liabilities according to the changed lease payment and the present value calculated by the
revised discount rate.
If the lease scope is reduced or the lease term is shortened due to the lease change, the Company will
correspondingly reduce the book value of right-of-use assets, and include relevant profits or losses of partial or
complete termination of leasing in current profits and losses.
If the lease liabilities are remeasured due to the other lease changes, the Company shall adjust the book value of
the right-of-use asset accordingly.
(2) Accounting methods of lease with the Company as the lessor
When the Company is the lessor, the lease that substantially transfers all risks and rewards related to the
ownership of the assets is recognized as a finance lease, and other leases than finance leases are recognized as
operating leases.
Finance lease
In financial lease, at the commencement of the lease term, the Company takes the net investment in a lease as
the entry value of the finance lease receivables, and the net investment in a lease is the sum of the unguaranteed
residual value and the present value of the lease receipts not yet received at the commencement of the lease
term discounted at the interest rate implicit in lease. The Company, as the lessor, calculates and recognizes
interest income in each lease term at a fixed periodic rate. The variable lease payment obtained by the Company
as the lessor and not included in the measurement of net lease investment is included in the current profits and
losses when it actually occurs.
Derecognition and impairment of finance lease receivables are accounted for according to the ASBE No.22 -
Recognition and Measurement of Financial Instruments and the ASBE No.23 - Transfer of Financial Assets.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Operating lease
Lease income from operating leases is included in current profits or losses by the Company as per the straight-
line method over the lease term. The occurred initial direct cost related to the operating lease shall be
capitalized, amortized within the lease term according to the same base with the recognition of rental income,
and included in the current profits and losses by stages. The variable lease receipts obtained by the Company
related to operating leases and not charged to the lease receipts shall be charged to the current profit and loss
when they actually occur.
Lease change
In case of any change in an operating lease, the Company carries out accounting treatment as it is a new lease
since the effective date of the change, and the advance receipts and receivables related to the lease before the
change are deemed as the receipts of the new lease.
If the financial lease changes and meets the following conditions, the Company takes the change as a separate
lease for accounting treatment: ① The change expands the lease scope by increasing the right to use one or
more leased assets; and ② the increased consideration is equivalent to the amount by adjusting the separate
price of the expanded lease scope according to the contract.
If the change of finance lease is not taken as a separate lease for accounting treatment, the Company treats the
changed lease under the following circumstances respectively: ① If the change takes effect on the
commencement date of the lease and the lease is classified as an operating lease, the Company takes it as a new
lease for accounting treatment from the effective date of the lease change, and takes the net investment in the
lease before the effective date of the lease change as the book value of the leased asset; ② if the change takes
effect on the commencement date of the lease and the lease is classified as a finance lease, the Company carries
out accounting treatment in accordance with the provisions of the
The Company continuously evaluates the significant accounting estimates and key assumptions adopted based
on historical experience and other factors, including reasonable expectations for future events. Significant
accounting estimates and key assumptions that may lead to significant adjustment risk to the book value of
assets and liabilities in the next accounting year are presented as follows:
Classification of financial assets
Major judgments involved in determining the classification of financial assets include the analysis of business
models and contractual cash flow characteristics.
The Company determines the business model of managing financial assets at the level of financial asset
portfolio, considering the way of evaluating and reporting financial asset performance to key management
personnel, the risks affecting the financial asset performance and their management methods, and the way for
the relevant business management personnel to obtain the remuneration.
When evaluating whether the contractual cash flow of financial assets is consistent with the basic loan
arrangement, the Company has the following main judgments: May the principal change in the time distribution
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
or amount in the duration due to prepayment and other reasons? Does the interest include only the time value of
money, credit risk, other basic borrowing risks, and consideration for costs and profits? For example, does the
amount of prepayment only reflect the unpaid principal and interest based on the outstanding principal, as well
as reasonable compensation paid due to early termination of the contract?
Measurement of expected credit losses on accounts receivable
The Company calculates the expected credit loss of accounts receivable through default risk exposure and
expected credit loss rate of accounts receivable, and determines the expected credit loss rate based on default
probability and loss given default. In determining the expected credit loss rate, the Company uses the internal
historical credit loss experience and other data, and adjusts the historical data according to the current situation
and forward-looking information. When the forward-looking information is considered, the indicators used by
the Company include risks of economic downturn, changes in external market environment, technological
environment and customer conditions. The Company regularly monitors and reviews the assumptions related to
the calculation of expected credit losses.
Development expenditures
In determining the capitalization amounts, the management must make assumptions on the expected future cash
flow generation of assets, discount rate to be adopted and expected benefit period.
Deferred Income tax assets
The deferred tax assets shall be recognized in respect of all unused tax losses to the extent it is highly probable
that there will be sufficient taxable profits available for offsetting the losses. This requires the management to
estimate the timing and amount of future taxable profit using large amounts of judgment and to determine the
recognized amount of deferred tax assets by referring to the tax planning strategy.
Estimated liabilities
Expected liabilities are initially measured at the optimal estimate required to perform the relevant current
obligation, in comprehensive consideration of the risks, uncertainty, time value of money, and other factors
pertinent to the Contingencies. The best estimate is determined by discounting the relevant future cash outflow
if the time value of money has a significant impact. At the balance sheet date, the book value of the estimated
liabilities is reviewed and adjusted by the Company to reflect the current best estimate.
If all or part of the expenditures necessary for clearing off the recognized provisions are expected to be
compensated by a third party or any other party, the amount of compensation shall be recognized as assets
separately only when it is basically sure that the amount can be obtained. The recognized amount of
compensation shall not exceed the book value of recognized liabilities.
(1) Change in significant accounting policies
□Applicable ?Not applicable
(2) Change in significant accounting estimates
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
□Applicable ?Not applicable
(3) Adjustment of relevant items in the financial statements at the beginning of the year after the first
implementation of the new accounting standards since 2025
□Applicable ?Not applicable
(1) Fair value measurement
Fair value refers to the price to be received for sale of an asset or to be paid for the transfer of liability by
market participants in the orderly transaction on the measurement date.
The Company measures related assets or liabilities at fair value, assuming that the sale of an asset or the transfer
of liability is conducted in major markets for relevant assets or liabilities in an orderly transaction. If the major
market is not provided, the transaction shall be assumed to be performed in the most favorable market for
relevant assets or liabilities. Major markets (or most favorable markets) are the markets where the Company can
enter on the measurement date. The Company uses the assumptions used by market participants to maximize
their economic benefits when they prices the asset or liability.
The fair value of financial assets or financial liabilities with the active market is determined based on quotations
in the active market by the Company. The fair value of financial instrument without an active market is
determined through valuation techniques.
When non-financial assets are measured at fair value, it is required to consider the ability of market participants
to use the asset for optimal purposes to produce economic benefits, or to sell the asset to other market
participants that can use such assets for optimal purposes to produce economic benefits.
The Company shall adopt the estimation technique that is applicable in the current conditions and is supported
sufficiently by available data and other information. The relevant observable input values shall be used in
priority during the application of estimation technique. Only when relevant observable value cannot be obtained
or can be obtained but is not feasible, the unobservable input value can be used.
For assets and liabilities measured or disclosed at fair value in the financial statements, the level to which the
fair value belongs is determined according to the lowest level input value that is of significance for the whole
fair value measurement: The input value for the first level refers to the unadjusted quotation of the same assets
or liabilities in the active market that can be obtained on the measurement date; the input value for the second
level refers to the input value that can be directly or indirectly observed for relevant assets or liabilities other
than that for the first level; and the input value for the third level refers to the input value that cannot be
observed for relevant assets or liabilities.
The Company reassesses the assets and liabilities successively measured at fair value recognized in financial
statements on each balance sheet date to determine the transition among fair value measurement levels.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(2) Right-of-use assets
Right-of-use assets refer to the right of the Company, as the lessee, to use the leasing assets within the lease
term.
At the commencement date of the lease term, the right-of-use assets are initially measured at cost. This cost
includes the initial measurement amount of lease liabilities, lease payments made on or before the lease
commencement date, from which any lease incentives enjoyed (if any) needed to be deducted, initial direct
costs incurred by the Company as a lessee, and the estimated costs expected to be incurred by the Company as a
lessee for dismantling and removing the leased asset, restoring the leased asset’s site, or restoring the leased
asset to the contractual conditions as stipulated in the lease agreement. The Company, as the lessee, recognizes
and measures the cost of demolition and restoration in accordance with the Accounting Standards for Business
Enterprises No.13 - Contingencies. Subsequent adjustments are made for any remeasurement of the lease
liabilities.
The Company uses the straight-line method for depreciation. If the Company, as the lessee, can reasonably
confirm that it obtains the ownership of the leasing assets at the expiration of the lease term, the depreciation
shall be drawn within the remaining service life of the leasing assets. In case of a failure to determine the
ownership of the leased assets reasonably at the end of the lease period, the depreciation shall be drawn within
the lease term or the remaining service life of leasing assets, whichever is shorter.
described in 38 “Others” in V “Significant Accounting Policies and Accounting Estimates” of Section VIII
- Financial Report.
(3) Work safety cost and maintenance & renovation cost
The Company withdraws the work safety cost month by month in an average manner by taking the method of
excess regression based on the actual operating income of the previous year according to the provisions of CZ
[2022] No.136 document. The specific standards are as follows:
For the machinery manufacturing enterprises with an operating income of not exceeding CNY 10 million,
CNY 100 million, 1.25% will be withdrawn; for the part of the operating income between CNY 100 million and
CNY 1 billion, 0.25% will be withdrawn; for the part of the operating income between CNY 1 billion and CNY
withdrawn.
For transportation enterprises, the work safety cost is withdrawn month by month in an average manner
according to the following standards based on the actual operating income in the previous year: 1% for ordinary
freight business; 1.5% for passenger transportation, pipeline transportation, dangerous goods transportation and
other special freight businesses. Work safety cost and maintenance & renovation cost are included in the cost of
relevant products or the current profit and loss when withdrawn, and are also included in the “special reserve”
account.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
For the withdrawn work safety cost and maintenance & renovation cost used within the specified scope, those
belong to expense expenditures are directly offset by specific reserves; those cost incurred via collection under
the item of “construction in progress” is recognized when the safety project completes and is ready for intended
use. Meanwhile, the Company will offset the specific reserves according to the cost that formed fixed assets and
determine the accumulated depreciation of the same amount. The fixed assets will no longer be depreciated in
subsequent periods.
(4) Repurchase of shares
Shares repurchased by the Company are managed as treasury shares before being canceled or transferred, and
all expenditures on repurchased shares are transferred to treasury share costs. Considerations in the payment for
shares repurchase and reduced owner’s equity in transaction expenses are not recognized as profits or losses
during repurchase, assignment and write-off of the Company’s shares.
The transferred treasury shares are included in the capital reserve based on the difference between the amount
actually received and the book value of the treasury shares. The surplus reserve and undistributed profits shall
be offset if the capital reserve is insufficient to offset. The canceled treasury shares are used to offset the capital
reserve based on the difference between the book balance and the face value of the canceled treasury shares by
reducing the share capital according to the face value of the shares and the number of canceled shares. The
surplus reserve and undistributed profits shall be offset if the capital reserve is insufficient to offset.
(5) Asset impairment
The asset impairment of long-term equity investment to subsidiaries, associated enterprises and joint ventures,
investment real estate subsequently measured by cost model, fixed assets, projects under construction, right-of-
use assets, intangible assets, etc. (except for inventories, deferred income tax assets and financial assets) is
recognized with the following methods:
The Company judges whether there is a sign of impairment to assets on the balance sheet date. If such a sign
exists, the Company estimates the recoverable amount and conducts the impairment test. Impairment tests shall
be carried out every year on goodwill resulting from business combination, intangible assets with uncertain
service life and intangible assets that have not yet reached their intended use no matter whether there is any sign
of impairment.
The recoverable amount is the net amount of the fair value of the assets after deducting the disposal expenses or
the present value of the expected future cash flow of the assets, whichever is higher. The Company estimates
the recoverable amount based on a single asset. If it is difficult to estimate the recoverable amount of a single
asset, the recoverable amount of the asset group shall be determined based on the asset group to which the asset
belongs. An asset group is determined based on the fact that the main cash inflows generated by the asset group
are independent of the cash inflows of other assets or asset groups.
When the recoverable amount of an asset or asset group is lower than its book value, the Company writes down
its book value to the recoverable amount, and the write-down amount is included in current profits and losses,
and the corresponding impairment provision of assets is made at the same time.
For the impairment test of goodwill, the book value of goodwill resulting from business combination is
amortized to relevant asset groups with reasonable methods from the acquisition date, or amortized to relevant
asset group portfolio if it is difficult to amortize it to relevant asset groups. Relevant asset groups or portfolios
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
of asset groups are those that can benefit from the synergies of business combination and are not greater than
the reporting segment determined by the Company.
If there is any sign of impairment in the asset group or portfolio of asset groups related to goodwill during the
impairment test, the impairment test shall be carried out on the asset group or portfolio of asset groups not
including goodwill, and the recoverable amount shall be calculated to determine the corresponding impairment
loss. Then, an impairment test is carried out on the asset group or portfolio of asset groups including goodwill to
compare its book value and recoverable amount, and determine the impairment loss of goodwill if the
recoverable amount is lower than the book value.
Once the impairment loss of assets is determined, it will never be reversed in subsequent accounting periods.
VI. Taxes
Tax Category Tax Basis Tax Rate
Taxable value-added tax (the tax
payable is calculated by multiplying
VAT taxable sales by the applicable tax rate 18%, 15%, 13%, 9%, 6%, 5%
and then deducting input tax allowed to
be deducted for the current period)
Urban maintenance and
Turnover tax actually paid 7%, 5%, 3%
construction tax
Corporate income tax Taxable income 25%
Education surcharges Turnover tax actually paid 3%
Local educational surcharges Turnover tax actually paid 2%
Land use tax Land use area CNY 9/m?, CNY 14/m?, etc.
Property residual value and rental
Property tax 1.2%, 12%
income
Disclosure of different corporate income tax rates for taxable entities
Name of Taxpayer Income Tax Rate
Jiefang Limited 15%
FAW Jiefang Dalian Diesel Engine Co., Ltd. 15%
Apart from the preferential tax rates mentioned above,
Other Organizations other organizations are subject to the local statutory tax
rates.
(1) Income tax
Jiefang Limited, a subsidiary of the Company, is recognized as a high-tech enterprise, with a validity period of
three years and an income tax rate of 15% within the validity period according to the High-tech Enterprise
Certificate (issued on October 16, 2023, with a certificate number of GR202322000922) jointly issued by the
Science and Technology Department of Jilin Province, the Department of Finance of Jilin Province and the Jilin
Provincial Tax Service of State Taxation Administration.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
FAW Jiefang Dalian Diesel Engine Co., Ltd., a subsidiary of the Company, is recognized as a high-tech
enterprise, with a validity period of three years and an income tax rate of 15% within the validity period
according to the list of the second batch of high-tech enterprises in 2024 (with a certificate number of
GR202421200987) issued by Dalian on December 24, 2024.
(2) VAT
FAW Jiefang Automotive Co., Ltd. and FAW Jiefang Dalian Diesel Engine Co., Ltd. satisfy the conditions for
advanced manufacturing enterprises and are allowed to add 5% of the current deductible input tax to offset the
amount of VAT payable from January 1, 2023 according to the Document No.43 issued by the Ministry of
Finance and the State Taxation Administration in 2023, Announcement on VAT Additional Tax Credit Policy
for Advanced Manufacturing Enterprises.
VII. Notes to Items in Consolidated Financial Statements
Unit: CNY
Item Ending balance Opening balance
Cash on hand 713,669.09 300,158.23
Bank deposit 18,431,164,870.86 10,959,276,854.87
Other monetary capital 22,205,937.18 22,157,571.16
Deposit in finance companies 8,772,375,400.00 8,871,226,437.40
Total 27,226,459,877.13 19,852,961,021.66
Including: total amount deposited
abroad
Details of restricted monetary capital are as follows:
Unit: CNY
Ending Balance of the
Item Ending balance
previous year
Security deposit for three types of personnel 27,520,214.70 28,438,604.73
Housing maintenance fund 22,205,937.18 22,157,571.16
Court freezing 214,000.00
Total 49,726,151.88 50,810,175.89
Unit: CNY
Item Ending balance Opening balance
Financial assets at fair value
through profit or loss
Total 5,102,739.73
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(1) Classified presentation of notes receivable
Unit: CNY
Item Ending balance Opening balance
Commercial acceptance notes 300,000.00 2,641,582.80
Total 300,000.00 2,641,582.80
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(2) Disclosure by the method of provision for bad debts
Unit: CNY
Ending balance Opening balance
Book balance Provision for Bad Debts Book balance Provision for Bad Debts
Category
Provision Book Value Provision Book Value
Amount Scale Amount Amount Scale Amount
proportion proportion
Including:
Notes
receivable
with
provision for
bad debts by
portfolio
Including:
Total 300,000.00 100.00% 0.00 0.00% 300,000.00 2,649,000.00 100.00% 7,417.20 0.28% 2,641,582.80
If the provision for bad debts of notes receivable is withdrawn based on the general model of expected credit losses:
?Applicable □Not applicable
Unit: CNY
Stage I Stage II Stage III
Provision for Bad Debts Expected credit loss in the Expected credit loss for the Total
Expected Credit Losses for the
duration (credit impairment has entire duration (with credit
Next 12 Months
not occurred) impairment)
Balance as of January 01, 2025 7,417.20 7,417.20
Balance on January 1, 2025 in
the current period
Provision in the current period -7,417.20 -7,417.20
Balance as of June 30, 2025 0.00 0.00
Basis for stage division and proportion of bad debt provision
Explanation of significant changes in the carrying amount of notes receivable for which loss allowances changed during the current period:
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(3) Provision for bad debts provided, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: CNY
Change in the Current Period
Opening Ending
Category Recovery or
balance Provision Write-off Others balance
reversal
Commercial
acceptance bill
Total 7,417.20 -7,417.20 0.00
Important provision for bad debts recovered or reversed in the current period:
□Applicable ?Not applicable
(1) Disclosure by aging
Unit: CNY
Aging Ending book balance Beginning Book Balance
Within 1 year (including 1 year) 7,199,626,456.71 6,872,611,350.77
Over 3 years 277,154,858.19 217,725,478.29
Over 5 years 175,543,583.45 156,491,985.96
Total 8,682,720,160.15 7,323,091,407.68
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(2) Disclosure by the method of provision for bad debts
Unit: CNY
Ending balance Opening balance
Book balance Provision for Bad Debts Book balance Provision for Bad Debts
Category Provisio
n Book Value Provision Book Value
Amount Scale Amount Amount Scale Amount
proporti proportion
on
Accounts
receivable with
provision for 176,626,199.29 2.03% 154,073,418.09 87.23% 22,552,781.20 178,969,510.25 2.44% 156,416,729.05 87.40% 22,552,781.20
bad debts on an
individual basis
Including:
Accounts
receivable with
provision for 8,506,093,960.86 97.97% 114,945,054.55 1.35% 8,391,148,906.31 7,144,121,897.43 97.56% 99,378,536.09 1.39% 7,044,743,361.34
bad debts by
portfolio
Including:
Aging portfolio 8,506,093,960.86 97.97% 114,945,054.55 1.35% 8,391,148,906.31 7,144,121,897.43 97.56% 99,378,536.09 1.39% 7,044,743,361.34
Total 8,682,720,160.15 100.00% 269,018,472.64 3.10% 8,413,701,687.51 7,323,091,407.68 100.00% 255,795,265.14 3.49% 7,067,296,142.54
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Provision for bad debts by individual category
Unit: CNY
Opening balance Ending balance
Name Provision
Provision for Provision for Reasons for
Book balance Book balance proportio
Bad Debts Bad Debts Provision
n
It is highly
probable that
Accounts
receivable 1
will not be
recovered
It is highly
probable that
Accounts
receivable 2
will not be
recovered
It is highly
probable that
Accounts
receivable 3
will not be
recovered
It is highly
probable that
Accounts
receivable 4
will not be
recovered
It is highly
probable that
Accounts
receivable 5
will not be
recovered
It is highly
probable that
Accounts
receivable 6
will not be
recovered
It is highly
probable that
Accounts
receivable 7
will not be
recovered
It is highly
probable that
Accounts
receivable 8
will not be
recovered
It is highly
probable that
Accounts
receivable 9
will not be
recovered
It is highly
Accounts
receivable 10
the amounts
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
will not be
recovered
It is highly
probable that
Accounts
receivable 11
will not be
recovered
It is highly
probable that
Accounts
receivable 12
will not be
recovered
It is highly
probable that
Accounts
receivable 13
will not be
recovered
It is highly
probable that
Other accounts
receivable
will not be
recovered
Total 178,969,510.25 156,416,729.05 176,626,199.29 154,073,418.09
Provision for bad debts by portfolio category
Unit: CNY
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Within 1 year 7,199,626,456.71 16,945,740.28 0.24%
Over 4 years 48,976,418.91 48,976,418.91 100.00%
Total 8,506,093,960.86 114,945,054.55
Description of the basis for determining this portfolio:
If the provision for bad debts of accounts receivable is withdrawn based on the general model of expected credit
losses:
?Applicable □Not applicable
Unit: CNY
Stage I Stage II Stage III
Provision for Bad Expected credit loss Expected credit loss
Expected Credit Total
Debts in the duration for the entire
Losses for the Next
(credit impairment duration (with credit
has not occurred) impairment)
Balance as of
January 01, 2025
Balance on January
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
current period
Provision in the
current period
Reversal in the
Current Period
Other changes 2,954,165.12 2,907,272.40 541,250.10 6,402,687.62
Balance as of June
Basis for stage classification and bad debt provision rates: For Stage I and Stage II, provisions are based on
aging, with rates of 0.24% for within 1 year, 1.17% for 1-2 years, 10.67% for 2-3 years, 57.65% for 3-4 years,
and 100% for over 4 years. For Stage III, the Company measures the loss allowance based on lifetime expected
credit losses for such accounts receivable.
Description of significant changes in the book balance of accounts receivable with changes in provision for loss
in the current period:
(3) Provision for bad debts provided, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: CNY
Change in the Current Period
Categ
Opening balance Recovery or Ending balance
ory Provision Write-off Others
reversal
Acco
unts
receiv
able
Total 255,795,265.14 21,427,955.98 1,802,060.86 3,804,089.92 2,598,597.70 269,018,472.64
Important provision for bad debts recovered or reversed in the current period:
Unit: CNY
Basis of
determining the
Amount
proportion of
Name of Unit Recovered or Reason for reversal Recovery Method
provision for
Reversed
original bad debts
and its rationality
Litigation has been
initiated; the
Notes and bank counterparty faces
Accounts receivable 1 727,900.00 Recovered
deposits financial
difficulties, making
recovery unlikely
Litigation has been
initiated; the
counterparty faces
Accounts receivable 2 1,074,160.86 Recovered Bank deposit
financial
difficulties, making
recovery unlikely
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Total 1,802,060.86
(4) Other accounts receivable and contractual assets from the top five borrowers classified based on the
ending balance
Unit: CNY
Ending balance
Proportion in of bad debt
total ending provision for
Ending Ending balance of
Ending Balance of balance of accounts
Name of balance of accounts
Accounts accounts receivable and
Unit contractual receivable and
Receivable receivable and impairment
assets contractual assets
contractual provision for
assets contractual
assets
Accounts
receivable 1
Accounts
receivable 2
Accounts
receivable 3
Accounts
receivable 4
Accounts
receivable 5
Total 6,812,607,027.34 6,812,607,027.34 78.32% 10,391,961.73
(1) Contractual assets
Unit: CNY
Ending balance Opening balance
Item Provision
Provision for
Book balance for Bad Book Value Book balance Book Value
Bad Debts
Debts
Contract
assets
Total 14,994,696.42 459,063.57 14,535,632.85 15,055,893.05 600,351.00 14,455,542.05
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(2) Disclosure by the method of provision for bad debts
Unit: CNY
Ending balance Opening balance
Book balance Provision for Bad Debts Book balance Provision for Bad Debts
Category
Provision Book Value Provision Book Value
Amount Scale Amount Amount Scale Amount
proportion proportion
Including:
Provision for
bad debts
made by
portfolio
Including:
Total 14,994,696.42 100.00% 459,063.57 3.06% 14,535,632.85 15,055,893.05 100.00% 600,351.00 3.99% 14,455,542.05
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Provision for bad debts by portfolio category
Unit: CNY
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Within 1 year 14,128,326.90 32,164.20 0.23%
Total 14,994,696.42 459,063.57
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses
?Applicable □Not applicable
Unit: CNY
Stage I Stage II Stage III
Provision for Bad Expected credit loss Expected credit loss
Expected Credit Total
Debts in the duration for the entire
Losses for the Next
(credit impairment duration (with
has not occurred) credit impairment)
Balance as of
January 01, 2025
Balance on January
current period
Provision in the
-557.37 -140,730.06 -141,287.43
current period
Balance as of June
Basis for stage division and proportion of bad debt provision
In the first and second stages, provisions for bad debts are made based on aging, with rates of 0.23% for
accounts aged within 1 year, 12.60% for accounts aged 1 to 2 years, and 80.22% for accounts aged 2 to 3 years.
Description of significant changes in the book balance of contractual assets with changes in provision for loss in
the current period:
(3) Provision for bad debts provided, recovered or reversed in the current period
Unit: CNY
Recovery or Charge-off/Write-
Provision in the
Item reversal in the off in the Current Reason
current period
current period Period
Impairment
Risks in payment
provision of -141,287.43
collection
contract assets
Total -141,287.43
Other description
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(1) Presentation of receivables financing by category
Unit: CNY
Item Ending balance Opening balance
Notes receivable 6,250,344,325.45 10,019,816,248.98
Total 6,250,344,325.45 10,019,816,248.98
(2) Financing of receivables endorsed or discounted by the Company at the end of the period and not yet
due on the balance sheet date
Unit: CNY
Derecognized amount at the end of Amount not derecognized at the
Item
the period end of the period
Bank acceptance bill 719,397,070.50
Total 719,397,070.50
Unit: CNY
Item Ending balance Opening balance
Dividends receivable 157,707,661.77
Other receivables 1,681,860,160.35 1,182,925,650.71
Total 1,681,860,160.35 1,340,633,312.48
(1) Dividends receivable
Unit: CNY
Item (or Investee) Ending balance Opening balance
First Automobile Finance Co., Ltd. 156,960,226.90
FAW Jiefang Fujie (Tianjin)
Technology Industry Co., Ltd.
Total 157,707,661.77
(2) Other receivables
Unit: CNY
Nature Ending book balance Beginning Book Balance
Current account 1,318,116,116.83 916,206,955.43
Claim payment 356,384,164.50 262,619,355.01
Margin, deposit 29,272,805.25 30,382,472.86
Reserve fund 16,082,531.41 9,876,260.52
Total 1,719,855,617.99 1,219,085,043.82
Unit: CNY
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Aging Ending book balance Beginning Book Balance
Within 1 year (including 1 year) 862,719,929.06 348,766,762.84
Over 3 years 42,383,252.40 18,193,947.74
Over 5 years 21,278,142.14 13,766,362.10
Total 1,719,855,617.99 1,219,085,043.82
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
?Applicable □Not applicable
Unit: CNY
Ending balance Opening balance
Book balance Provision for Bad Debts Book balance Provision for Bad Debts
Category
Provision Book Value Provision Book Value
Amount Scale Amount Amount Scale Amount
proportion proportion
Provision for
bad debts made
by individual
item
Including:
Provision for
bad debts made 1,718,300,171.58 99.91% 36,440,011.23 2.12% 1,681,860,160.35 1,216,987,304.41 99.83% 34,061,653.70 2.80% 1,182,925,650.71
by portfolio
Including:
Total 1,719,855,617.99 100.00% 37,995,457.64 2.21% 1,681,860,160.35 1,219,085,043.82 100.00% 36,159,393.11 2.97% 1,182,925,650.71
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Provision for bad debts by individual category
Unit: CNY
Opening balance Ending balance
Name Reasons
Provision for Provision for Provision
Book balance Book balance for
Bad Debts Bad Debts proportion
Provision
Other receivables 1 542,293.00 542,293.00
It is highly
probable
that the
Other receivables 2 538,200.00 538,200.00 538,200.00 538,200.00 100.00%
amounts
will not be
recovered
It is highly
probable
that the
Other receivables 3 199,194.30 199,194.30 199,194.30 199,194.30 100.00%
amounts
will not be
recovered
It is highly
probable
that the
Other receivables 4 198,000.00 198,000.00 198,000.00 198,000.00 100.00%
amounts
will not be
recovered
It is highly
probable
that the
Other receivables 5 154,539.47 154,539.47 154,539.47 154,539.47 100.00%
amounts
will not be
recovered
It is highly
probable
that the
Other receivables 6 135,000.00 135,000.00 135,000.00 135,000.00 100.00%
amounts
will not be
recovered
It is highly
probable
that the
Other receivables 7 119,600.00 119,600.00 119,600.00 119,600.00 100.00%
amounts
will not be
recovered
It is highly
probable
that the
Other receivables 210,912.64 210,912.64 210,912.64 210,912.64 100.00%
amounts
will not be
recovered
Total 2,097,739.41 2,097,739.41 1,555,446.41 1,555,446.41
Provision for bad debts by portfolio category
Unit: CNY
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Aging portfolio 1,718,300,171.58 36,440,011.23 2.12%
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Total 1,718,300,171.58 36,440,011.23
Description of the basis for determining this portfolio: None
Provision for bad debts based on the general model of expected credit losses:
Unit: CNY
Stage I Stage II Stage III
Provision for Bad Expected credit loss Expected credit loss
Expected Credit Total
Debts in the duration for the entire
Losses for the Next
(credit impairment duration (with
has not occurred) credit impairment)
Balance as of
January 01, 2025
Balance on January
current period
Provision in the
current period
Write-off in the
current period
Balance as of June
Basis for stage division and proportion of bad debt provision: For Stage I and Stage II, provisions are made
based on aging, with rates of 0.63% for Stage I and 3.63% for Stage II. For accounts in Stage III, the Company
measures the loss allowance based on the expected credit losses over the entire lifetime of such accounts
receivable.
Significant book balance changes occurred in the provision for losses in the current period
□Applicable ?Not applicable
Provision for bad debts in the current period:
Unit: CNY
Change in the Current Period
Category Opening balance Recover Ending balance
Charge-off
Provision y or Others
or write-off
reversal
Other
receivables
Total 36,159,393.11 2,378,957.53 542,893.00 37,995,457.64
(5) Other receivables written off in the current period
Unit: CNY
Item Amount Written off
Payment for goods 542,893.00
Notes on write-off of other receivables:
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Unit: CNY
Proportion in
Ending Balance
Nature of total ending
Name of Unit Ending balance Aging of Provision for
Payment balance of other
Bad Debts
receivables
Funds for land
Other
purchase and 660,862,800.00 2-3 years 38.43% 7,269,490.80
receivables 1
reserve
Other New energy
receivables 2 subsidy
Funds for land
Other
purchase and 129,042,064.00 0-6 months 7.50% 2,064,673.02
receivables 3
reserve
Other Export tax
receivables 4 rebate
Other New energy Less than 1
receivables 5 subsidy year, 1-2 years
Total 1,092,766,144.06 63.53% 16,195,500.83
(1) Presentation of advance payment by aging
Unit: CNY
Ending balance Opening balance
Aging
Amount Scale Amount Scale
Within 1 year 139,408,349.98 90.91% 118,197,236.62 91.88%
Over 3 years 79,369.15 0.05% 290,810.50 0.23%
Total 153,344,659.70 128,639,159.47
Reasons for delay in settlement of advance payment with important amounts and aging over 1 year: None
(2) Top five ending balances of advance payments classified by advance payment objects
The advance payments with the top five closing balances classified by the prepaid parties in the current period
are CNY 49,215,305.67, accounting for 32.09% of the total closing balance of advance payments.
Other description:
Does the Company need to comply with the disclosure requirements of the real estate industry: No
(1) Classification of inventories
Unit: CNY
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Ending balance Opening balance
Impairment Impairment
Provision of Provision of
Item Inventories or Inventories or
Book balance Book Value Book balance Book Value
Contract Contract
Performance Performance
Costs Costs
Raw
material
Goods in
process
Goods in
stock
Revolving
material
Goods
dispatched
Outsource
d semi-
finished
products
Others 86,137,117.47 86,137,117.47
Total 12,686,457,037.58 417,533,472.10 12,268,923,565.48 10,559,265,752.20 442,052,642.23 10,117,213,109.97
(2) Impairment provision of inventories and contract performance costs
Unit: CNY
Decrease in the Current
Increase in the Current Period
Period
Item Opening balance Ending balance
Reverse or
Provision Others Others
Charge-off
Raw material 38,992,671.09 -29,556,152.15 591,437.58 8,845,081.36
Goods in
process
Goods in
stock
Revolving
material
Outsourced
semi-finished 135,470,983.23 38,071,826.78 22,174,306.96 151,368,503.05
products
Total 442,052,642.23 151,742,987.34 176,262,157.47 417,533,472.10
Provision for inventory write-down on a portfolio basis
Unit: CNY
Item Ending balance Opening balance
Long-term receivables due within 1 year 366,794,659.02 377,668,442.06
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Total 366,794,659.02 377,668,442.06
(1) Debt investments due within one year
□Applicable ?Not applicable
(2) Other debt investments due within one year
□Applicable ?Not applicable
Unit: CNY
Item Ending balance Opening balance
Input VAT 391,233,271.32 802,923,987.38
Input VAT to be certified 699,931,376.09 610,578,724.24
Others 135,462.60
Total 1,091,164,647.41 1,413,638,174.22
Other description:
Unit: CNY
Losse Cumulat
Reason for
s ive Divi
being
includ losses dend
Cumulative designated
Gains ed in are inco
gains are as being
included in other included me
included in measured
other compr in other reco
Projec other at fair
Opening comprehensi ehensi compreh gniz Ending
t comprehensi value and
balance ve incomes ve ensive ed in balance
Name ve incomes at changes
in the incom incomes the
the end of the included in
current es in at the curr
current other
period the end of ent
period comprehen
curren the peri
sive
t current od
incomes
period period
REFI Changes in
RE fair value
Total 540,066,528.00 49,563,864.00 108,850,392.00 589,630,392.00
Other description:
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(1) Long-term receivables
Unit: CNY
Ending balance Opening balance Discou
Item Provision for Bad Provision for Bad nt Rate
Book balance Book Value Book balance Book Value Range
Debts Debts
Sales of goods by 539,669,033.39 62,145,156.01 477,523,877.38
installment
Long-term -428,204,778.91 -61,410,119.89 -366,794,659.02
receivables due -430,595,782.49 -52,927,340.43 -377,668,442.06
within 1 year
Total 111,464,254.48 735,036.12 110,729,218.36 111,464,254.49 553,018.88 110,911,235.61
(2) Disclosure by the method of provision for bad debts
Unit: CNY
Ending balance Opening balance
Book balance Provision for Bad Debts Book balance Provision for Bad Debts
Category Provisi
Provision Book Value on Book Value
Amount Scale Amount Amount Scale Amount
proportion proport
ion
Including:
Provision 539,669,033.39 100.00% 62,145,156.01 11.52%
for bad
debts made
by portfolio
Including:
Total 539,669,033.39 100.00% 62,145,156.01 11.52% 477,523,877.38 542,060,036.98 100.00% 53,480,359.31 9.87% 488,579,677.67
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Provision for bad debts by portfolio category
Unit: CNY
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Long-term receivables 539,669,033.39 62,145,156.01 11.52%
Total 539,669,033.39 62,145,156.01
Description of the basis for determining this portfolio:
Basis for stage division and proportion of bad debt provision
(3) Provision for bad debts provided, recovered or reversed in the current period
Unit: CNY
Change in the Current Period
Opening
Category Recovery or Charge-off or Othe Ending balance
balance Provision
reversal write-off rs
Long-term
receivables
Total 53,480,359.31 8,664,796.70 62,145,156.01
Other description:
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Unit: CNY
Increase/Decrease in the current period Endin
Opening
g
balance
Investment balanc
of Additi Reduc Adjustment to Impair
Opening balance gains or losses Cash dividends and Ending balance e of
Investee impairm onal ed other Changes in ment
(book value) recognized profits are declared Others (book Value) impair
ent Invest Invest comprehensive other equity Provis
under the equity to be paid ment
provisio ment ment income ion
method provisi
n
on
I. Joint ventures
Jiefang
Times New
Energy 40,983,228.82 -2,332,566.78 38,650,662.04
Technology
Co., Ltd.
Subtotal 40,983,228.82 -2,332,566.78 38,650,662.04
II. Associated enterprises
Changchun
Automotive
Test Center
Co., Ltd.
Sanguard
Automobile
Insurance
Co., Ltd.
FAW
Changchun
Ansteel
Steel
Processing
and
Distribution
Co., Ltd.
FAW
Changchun
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Baoyou
Jiefang
Steel
Processing
and
Distribution
Co., Ltd.
FAW
Jiefang
Fujie
(Tianjin) 37,096,903.44 772,158.52 1,000,000.00 36,869,061.96
Technology
Industry
Co., Ltd.
Foshan
Diyiyuansu
New
Energy
Technology
Co., Ltd.
Changchun
Wabco
Automotive
Control
System Co.,
Ltd.
Diyi AESC
New
Energy
Power 4,040,781.21 -252,889.67 3,787,891.54
Technology
(Wuxi) Co.,
Ltd.
SmartLink
Suzhou
Zhito
Technology
Co., Ltd.
Subtotal 1,135,305,232.27 20,510,724.41 1,904,514.70 -51,433.86 34,768,915.54 1,122,900,121.98
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Total 1,176,288,461.09 18,178,157.63 1,904,514.70 -51,433.86 34,768,915.54 1,161,550,784.02
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
The recoverable amount is the net amount of the fair value after deducting the disposal expenses
□Applicable ?Not applicable
The recoverable amount is the present value of the expected future cash flow
□Applicable ?Not applicable
Reason for apparent discrepancies between the foregoing information and the information used in the
impairment test or external information in the previous year: None
Reason for apparent discrepancies between the information used in the Company’s impairment test of the
previous year and the actual situation in the current year: None
Other description
(1) Investment properties measured at cost
?Applicable □Not applicable
Unit: CNY
Houses and Project under
Item Land use right Total
Buildings construction
I. Original book value
current period
(1) Purchase
(2) Transfer from
inventories/fixed
assets/construction in
progress
(3) Increase due to
business combination
current period
(1) Disposal
(2) Other transfer-out
(3) Transferred to
fixed assets
II. Accumulated
depreciation and
accumulated
amortization
current period
(1) Provision or
amortization
(2) Transfer-in of
intangible assets and 782,723.32 782,723.32
fixed assets
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
current period
(1) Disposal
(2) Other transfer-out
(3) Transferred to
fixed assets
III. Impairment
provision
current period
(1) Provision
current period
(1) Disposal
(2) Other transfer-out
IV. Book value
value
The recoverable amount is the net amount of the fair value after deducting the disposal expenses
□Applicable ?Not applicable
The recoverable amount is the present value of the expected future cash flow
□Applicable ?Not applicable
(2) Investment properties measured at fair value
□Applicable ?Not applicable
Unit: CNY
Item Ending balance Opening balance
Fixed assets 10,581,179,165.47 11,192,711,830.63
Disposal of fixed assets 27,245,194.48 5,588,741.57
Total 10,608,424,359.95 11,198,300,572.20
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(1) Details of fixed assets
Unit: CNY
Houses and Machinery Transportation Electronic Office
Item Others Total
Buildings equipment equipment equipment equipment
I. Original book value
current period
(1) Purchase 1,892,120.53 290,775.89 6,946.71 515,977.00 2,705,820.13
(2) Transfer from
construction in progress
(3) Increase due to
business combination
(4) Other increases 11,482,275.91 4,231,599.84 224,631.40 1,431,911.59 199,799.26 17,570,218.00
current period
(1) Disposal or
retirement
(2) Other decreases 8,022,683.06 736,710.36 441,807.42 319,750.63 17,078.05 44,596.03 9,582,625.55
II. Accumulated
depreciation
current period
(1) Provision 166,510,861.03 603,084,479.75 9,753,495.55 37,955,567.98 3,114,672.21 38,306,623.80 858,725,700.32
(2) Other increases 3,197,687.47 742,923.86 3,940,611.33
current period
(1) Disposal or
retirement
(2) Other decreases 8,184,194.70 3,638.65 129,017.20 298,892.13 14,499.05 4,186.79 8,634,428.52
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
III. Impairment
provision
current period
(1) Provision
current period
(1) Disposal or
retirement
IV. Book value
value
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(2) Temporary idle fixed assets
Unit: CNY
Original book Accumulated Impairment
Item Book Value Remarks
value depreciation Provision
Machinery
equipment
Transportation
equipment
Electronic
equipment
Others 4,331,562.90 2,739,438.20 1,592,124.70
Total 159,560,980.62 143,492,859.71 4,742,728.62 11,325,392.29
(3) Fixed assets leased out under operating leases
Unit: CNY
Item Ending Book Value
Warehouse and office 421,011.60
Total 421,011.60
(4) Fixed assets without property ownership certificates
Unit: CNY
Reasons for failure to obtain the
Item Book Value
certificate
The property ownership certificate
will be applied for after the final
Guanghan base project 258,760,894.39
account audit upon completion of
the project
It is a new plant, and the
Project of exiting the city and
entering the industrial park
currently being processed.
Total 295,604,108.88
Other description
(5) Impairment testing of fixed assets
□Applicable ?Not applicable
(6) Disposal of fixed assets
Unit: CNY
Item Ending balance Opening balance
Houses and Buildings 42,244.58 44,184.97
Machinery equipment 25,610,530.29 3,066,994.74
Means of transport 266,053.79 357,163.02
Electronic equipment 23,158.49
Office equipment 54,042.14 1,004,714.07
Others 1,272,323.68 1,092,526.28
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Total 27,245,194.48 5,588,741.57
Other description:
Unit: CNY
Item Ending balance Opening balance
Project under construction 762,817,790.85 688,181,815.22
Total 762,817,790.85 688,181,815.22
(1) Construction in progress
Unit: CNY
Ending balance Opening balance
Item Impairment Impairment
Book balance Book Value Book balance Book Value
Provision Provision
New and
reconstruc
ted 27,289,026.43 1,945,416.12 25,343,610.31 30,573,415.10 1,945,416.12 28,627,998.98
investmen
t project
Technical
transforma
tion 737,529,677.73 55,497.19 737,474,180.54 659,609,313.43 55,497.19 659,553,816.24
investmen
t project
Total 764,818,704.16 2,000,913.31 762,817,790.85 690,182,728.53 2,000,913.31 688,181,815.22
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(2) Changes in important construction in progress in the current period
Unit: CNY
Includin
Proporti Cum
g:
on of ulativ Capitali
Capitali
Amount Other accumul e zation
zed
transferred to Decreas ated amou rate of
Project Increase in the Project interest Capital
Budget Opening balance fixed assets in es in the Ending balance investme nt of interest
Name Current Period Progress amount source
the current Current nt in capita in
during
period Period construc lized current
the
tions to intere period
current
budget st
period
R&D
capacity
improveme
nt project Proceeds,
of FAW others
Jiefang
Qingdao
Base
FAW
Jiefang
Wuxi R&D Proceeds,
Base others
Constructio
n Project
FAW
Jiefang
Digital
Intelligenc
e
Capability
Enhanceme
nt Project
Project of
exiting the 936,068,800.00 19,204,724.39 -24,936.56 -24,936.56 19,204,724.39 71.43% 97.87% Others
city and
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
entering
the
industrial
park
Second-
generation
E/E
architectur
e 32,000,000.00 16,401,117.40 16,401,117.40 51.25% 70% Others
commercia
l vehicle
HIL
simulator
Pilot line
for heavy-
duty
electric
drive
systems
Expansion
Project of
Canteen
No.2, Jimo
Plant,
Complete 16,760,000.00 90,360.64 11,128,406.19 11,218,766.83 66.94% 70% Others
Vehicle
Division,
FAW
Jiefang
Qingdao
Total 2,159,398,790.00 593,093,983.13 143,569,919.40 60,716,747.54 675,947,154.99
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(3) Impairment testing of projects under construction
□Applicable ?Not applicable
(1) Productive biological assets measured at cost
□Applicable ?Not applicable
(2) Impairment test of productive biological assets measured at cost
□Applicable ?Not applicable
(3) Productive biological assets measured at fair value
□Applicable ?Not applicable
□Applicable ?Not applicable
(1) Right-of-use assets
Unit: CNY
Houses and Machinery
Item Land Total
Buildings equipment
I. Original book
value
current period
(1) Lease-in 1,378,304.83 1,378,304.83
(2) Other increases
the current period
(1) Lease expiration 33,769,556.90 33,769,556.90
(2) Other decreases 746,264.01 530,973.45 1,277,237.46
II. Accumulated
depreciation
current period
(1) Provision 11,883,659.72 5,339,497.33 1,091,799.08 18,314,956.13
(2) Other increases
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
current period
(1) Disposal 0.00
(2) Lease expiration 33,769,556.90 33,769,556.90
(3) Other decreases
balance
III. Impairment
provision
current period
(1) Provision
current period
(1) Disposal
IV. Book value
value
value
(2) Impairment test of right-of-use assets
□Applicable ?Not applicable
Other description:
(1) Details of intangible assets
Unit: CNY
Patent Non-patented
Item Land use right Software Total
rights technology
I. Original book
value
balance
the current 504,218.45 87,983,705.47 9,719,400.28 98,207,324.20
period
(1) Purchase 50,973.45 9,719,400.28 9,770,373.73
(2) Internal
R&D
(3) Increase due
to business
combination
(4) Other 453,245.00 453,245.00
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
increases
the current 49,079,262.60 2,732,237.75 51,811,500.35
period
(1) Disposal 48,881,314.36 2,732,237.72 51,613,552.08
(2) Other
decreases
balance
II. Accumulated
amortization
balance
the current 27,484,857.72 22,132,898.05 49,734,476.63 99,352,232.40
period
(1) Provision 27,419,487.78 22,132,898.05 49,734,476.63 99,286,862.46
(2) Other
increases
the current 15,602,856.59 1,758,652.81 17,361,509.40
period
(1) Disposal 15,602,856.59 1,758,652.81 17,361,509.40
balance
III. Impairment
provision
balance
the current
period
(1) Provision
the current
period
(1) Disposal
balance
IV. Book value
value
book value
The proportion of intangible assets formed through internal R&D to the balance of intangible assets at the end
of current period is 3.82%.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(2) Impairment testing of intangible assets
□Applicable ?Not applicable
(1) Deferred income tax assets not offset
Unit: CNY
Ending balance Opening balance
Item Deductible Deferred Income Deductible Deferred Income
temporary difference tax assets temporary difference tax assets
Impairment
provision of 775,271,486.32 158,411,872.00 797,768,103.97 148,751,169.98
assets
Unrealized
gains of internal 153,881,436.39 38,470,359.10 153,881,436.39 38,470,359.10
transactions
Deductible
losses
Accrued
expenses
Estimated
liabilities
Contract
liabilities
Deferred
income
Employee
compensation 95,382,829.89 14,643,179.62 94,430,202.39 15,390,464.58
payable
Lease liabilities 50,491,897.34 11,645,550.18 58,263,018.99 13,770,069.13
Assets
depreciation 582,203.90 174,661.17 653,809.89 196,142.97
differences
Total 18,531,031,893.89 3,280,839,948.65 16,685,694,018.37 3,061,404,632.44
(2) Deferred income tax liabilities not offset
Unit: CNY
Ending balance Opening balance
Item Taxable temporary Deferred income Taxable temporary Deferred income
difference tax liabilities difference tax liabilities
Depreciation of
fixed assets with
amortization period 1,650,544,634.92 317,169,888.18 1,833,126,166.73 337,124,836.34
longer than tax
preference period
Accrued interest
income
Right-of-use assets 31,257,902.39 7,802,186.91 43,191,229.17 10,183,212.28
Total 2,332,095,333.99 430,393,079.81 2,353,028,248.12 423,775,650.57
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(3) Deferred tax assets or liabilities presented in net amount after offset
Unit: CNY
Ending Mutual Ending balance of Opening mutual Opening balance of
Offset Amount of deferred tax assets offset amount of deferred tax assets
Item
Deferred Tax Assets or liabilities after deferred tax assets or liabilities after
and Liabilities offset and liabilities offset
Deferred Income
tax assets
Deferred income
tax liabilities
(4) Details of unrecognized deferred tax assets
Unit: CNY
Item Ending balance Opening balance
Deductible temporary difference 440,470,957.85 572,093,879.05
Deductible losses 225,388,600.72
Total 440,470,957.85 797,482,479.77
(5) Deductible losses of unrecognized deferred tax assets will be due in the following years
Unit: CNY
Year Ending amount Beginning balance Remarks
Total 103,292,350.01 225,388,600.72
Other description
Unit: CNY
Ending balance Opening balance
Impa
Impai
Item irme
rment
Book balance Book Value Book balance nt Book Value
Provi
Provi
sion
sion
Advance
payments
for 211,548,080.07 211,548,080.07 113,186,886.26 113,186,886.26
constructio
n projects
Advance
payments
for
equipment
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
and
software
Fixed
deposits
and 2,496,561,111.15 2,496,561,111.15 2,465,761,111.13 2,465,761,111.13
accrued
interest
Total 2,711,695,452.99 2,711,695,452.99 2,644,193,586.72 2,644,193,586.72
Other description:
Unit: CNY
Ending Beginning
Item Restric
Book Book Restricti Book Book Restricti
Restriction tion
balance Value on type balance Value on
type
Housing
maintena
nce fund,
Housing
security
maintenance
Moneta deposit
fund, security
ry 49,726,108.37 49,726,108.37 50,810,175.89 50,810,175.89 for three
deposit for
capital types of
three types of
personne
personnel
l and
frozen
funds
Due to the Due to
Tanzanian the
government’s Tanzania
central n
railway governm
reconstructio ent’s
n project, central
approximatel railway
y 2000 square reconstru
meters of ction
land project,
belonging to approxi
Intangi the mately
ble 2,059,491.56 1,013,790.22 Company’s 2,059,491.56 1,150,344.99 2000
assets Tanzanian square
subsidiary meters of
was land
expropriated belongin
in March g to the
no official y’s
documentatio Tanzania
n or n
notification subsidiar
has been y was
received from expropri
the Tanzanian ated in
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
authorities. March
date, no
official
documen
tation or
notificati
on has
been
received
from the
Tanzania
n
authoriti
es.
Total 51,785,599.93 50,739,898.59 52,869,667.45 51,960,520.88
Other description:
Unit: CNY
Category Ending balance Opening balance
Bank acceptance bill 21,803,140,258.04 15,370,906,363.16
Total 21,803,140,258.04 15,370,906,363.16
The total amount of notes payable due but unpaid at the end of the current period is CNY 0.00.
(1) Presentation of accounts payable
Unit: CNY
Item Ending balance Opening balance
Payment for goods 16,981,671,841.62 16,650,985,030.88
Expenses and others 2,553,353,125.63 595,368,938.17
Total 19,535,024,967.25 17,246,353,969.05
Unit: CNY
Item Ending balance Opening balance
Dividends payable 171,500.02 171,500.02
Other payables 3,237,271,386.58 4,526,037,421.21
Total 3,237,442,886.60 4,526,208,921.23
(1) Dividends payable
Unit: CNY
Item Ending balance Opening balance
Ordinary stock dividends 171,500.02 171,500.02
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Total 171,500.02 171,500.02
Other description, including the disclosure of the reasons for not paying the important dividends payable for
more than 1 year:
(2) Other payables
Unit: CNY
Item Ending balance Opening balance
Expenses payable 1,503,239,535.52 2,665,746,970.54
Margin, deposit 206,982,291.54 235,940,482.07
Project funds payable 890,356,371.39 1,188,958,861.78
Repurchase obligations of
restricted shares
Current accounts payable and
others
Total 3,237,271,386.58 4,526,037,421.21
(1) Presentation of advance receipts
Unit: CNY
Item Ending balance Opening balance
Rental fee 662,358.34 674,009.56
Total 662,358.34 674,009.56
Unit: CNY
Item Ending balance Opening balance
Payment for goods 2,048,275,372.00 2,015,193,856.18
Others 633,754,721.26 633,128,232.65
Contract liabilities are included in
-192,157,579.59 -217,767,924.33
other current liabilities
Total 2,489,872,513.67 2,430,554,164.50
(1) Presentation of employee compensation payable
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
I. Short-term
compensation
II. Post- 771,551.66 319,165,116.18 312,198,557.38 7,738,110.46
employment
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
benefits - defined
contribution plan
III. Dismissal
welfare
IV. Other benefits
due within one year
Total 1,043,554,896.06 2,193,612,035.33 2,815,268,722.41 421,898,208.98
(2) Presentation of short-term compensation
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
allowances and 626,337,023.60 1,198,425,074.31 1,824,762,097.91
subsidies
welfare expenses
premiums
Including:
medical insurance 1,236,540.25 160,346,904.88 158,900,333.39 2,683,111.74
premiums
provident fund
funds and employee 324,735,755.63 49,743,144.40 35,956,396.15 338,522,503.88
education funds
compensations
Total 954,241,602.96 1,846,712,489.99 2,459,739,584.04 341,214,508.91
(3) Presentation of defined contribution plan
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
insurance
insurance premiums
enterprise annuity
Total 771,551.66 319,165,116.18 312,198,557.38 7,738,110.46
Other description
Unit: CNY
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Item Ending balance Opening balance
VAT 61,110,032.91 34,237,788.67
Corporate income tax 146,752,057.45 136,470,856.41
Individual income tax 1,012,345.17 7,020,253.06
Urban maintenance and
construction tax
Property tax 8,532,116.81 7,843,917.34
Land use tax 4,454,304.43 4,430,820.03
Education surcharges 5,362,116.71 3,902,829.10
Other taxes 20,789,470.20 18,318,058.50
Total 252,601,280.60 215,532,903.02
Other description
Unit: CNY
Item Ending balance Opening balance
Lease liabilities due within one
year
Total 12,714,703.34 29,941,701.02
Other description:
Unit: CNY
Item Ending balance Opening balance
Taxes to be written off 192,157,579.59 217,767,924.33
Total 192,157,579.59 217,767,924.33
Other description:
Unit: CNY
Item Ending balance Opening balance
Lease payment 21,081,951.10 59,490,077.98
Unrecognized financing charges -979,928.14 -2,116,776.32
Lease liabilities due within one
-12,714,703.34 -29,941,701.02
year
Total 7,387,319.62 27,431,600.64
Other description:
(1) Long-term employee compensation payable
Unit: CNY
Item Ending balance Opening balance
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
I. Post-employment welfare - net
liabilities of defined benefit plan
II. Dismissal welfare 82,326,239.29 98,901,796.39
Long-term employee compensation
-18,373,548.69 -88,541,741.44
payable due within one year
Total 690,257,123.52 692,790,054.95
Unit: CNY
Item Ending balance Opening balance Reason
Pending litigation 35,026,870.07 23,974,831.93
Product quality assurance 1,187,076,222.06 951,513,050.80
Others 17,226,995.29 17,226,995.29
Total 1,239,330,087.42 992,714,878.02
Other description, including important assumptions and estimation descriptions related to important estimated
liabilities:
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance Reason
Current Period Current Period
Governme
nt 2,936,362,847.77 95,707,715.10 128,717,336.37 2,903,353,226.50
subsidies
Total 2,936,362,847.77 95,707,715.10 128,717,336.37 2,903,353,226.50
Other description:
Unit: CNY
Increase/Decrease (+/-)
Share
Issue Transfe
Bon
Opening balance of rred Ending balance
us
New from Others Subtotal
shar
Share Accum
es
s ulation
Fund
Total
shares
Other description:
Unit: CNY
Item Opening balance Increase in Decrease in the Ending balance
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
the Current Current Period
Period
Capital premium
(stock premium)
Other capital
reserves
Total 11,961,480,047.74 5,008,714.84 11,956,471,332.90
Other description, including increase/decrease in the current period and reasons for change:
Reasons for the decrease in capital reserve (share premium) during the period:
④ The capital reserve (share premium) decreased by CNY 4,993,120.58 due to the repurchase and cancellation
of restricted shares reserved under the Company’s Phase I restricted share incentive plan, as the performance
targets set for the third release period were not achieved.
Reason for increase in capital reserve (other capital reserve):
The Company recognized a decrease of CNY 51,433.86 and an increase of CNY 35,839.60 based on its
proportionate share of changes in investees’ equity resulting from factors other than net profit, other
comprehensive income, and profit distribution.
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
Treasury shares 6,246,851.73 6,246,851.73
Total 6,246,851.73 6,246,851.73
Other description, including increase/decrease in the current period and reasons for change:
The treasury shares decreased by CNY 6,246,851.73 in the current period due to the Company’s repurchase and
cancellation.
Unit: CNY
Amount Incurred in Current Period
Less: Less:
Curre Current
nt Retained After-
Amount Profits Earnings tax
incurred or Transferre Less: After-tax
Opening amount Ending
Item before Losse d from income amount
balance attributa balance
income tax s Other tax attributable
ble to
in the Transf Comprehe expens to parent
minority
current erred nsive es company
sharehol
period from Income ders
Other Recorded
Comp in the
rehens Previous
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
ive Period
Incom
e
Recor
ded in
the
Previo
us
Period
I. Other
comprehens
ive incomes
that cannot
be
reclassified
into profits
or losses
Including:
changes
arising from
re-
-58,350,000.00 -58,350,000.00
measuremen
t of the
defined
benefit plan
Other
comprehens
ive incomes
that cannot
be
reclassified 17,962,530.75 1,904,514.70 1,904,514.70 19,867,045.45
into profit
or loss
under the
equity
method
Changes in
fair value of
investment 108,850,392.0
in other 0
equity
instruments
II. Other
comprehens
ive incomes
that will be -115,811,405.46 2,043,849.71 2,043,849.71
reclassified
into profits
or losses
Including:
other
comprehens
ive incomes -5,354,172.83 -5,354,172.83
that can be
reclassified
into profits
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
or losses
under the
equity
method
Translation
difference in
foreign
-110,457,232.63 2,043,849.71 2,043,849.71 108,413,382.9
currency
financial
statements
Total other
comprehens -96,912,346.71 53,512,228.41 53,512,228.41 -43,400,118.30
ive incomes
Other description, including the adjustment of the effective part of cash flow hedging profit or loss transferred
to the initially recognized amount of the hedged item:
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
Work safety cost 277,345,883.15 15,518,831.90 19,643,236.93 273,221,478.12
Total 277,345,883.15 15,518,831.90 19,643,236.93 273,221,478.12
Other description, including increase/decrease in the current period and reasons for change:
Unit: CNY
Increase in the Decrease in the
Item Opening balance Ending balance
Current Period Current Period
Statutory surplus
reserve
Discretionary
surplus reserves
Total 3,204,548,247.40 3,204,548,247.40
Description of surplus reserve, including increase/decrease and reasons for change in the current period:
Unit: CNY
Item Current period Previous period
Undistributed profits at the end of
the previous period before 6,055,339,906.81 6,191,777,512.32
adjustment
Total amount of opening
undistributed profit adjusted (“+” 54,756,122.34
for increase, “-” for decrease)
Undistributed profits at the 6,055,339,906.81 6,246,533,634.66
beginning of the current period
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
after adjustment
Add: net profit attributable to
owners of parent company in the 19,655,810.39 506,807,530.06
current period
Less: ordinary stock dividends
payable
Undistributed profits at the end of
the period
Details of adjustment to undistributed profits at the beginning of the period:
regulations impacts the opening undistributed profit by CNY 0.00.
CNY 0.00.
Unit: CNY
Amount Incurred in Current Period Amount Incurred in the Previous Period
Item
Income Cost Income Cost
Main
business
Other
business
Total 28,078,705,058.07 26,840,562,485.53 36,465,688,621.29 34,355,216,264.53
Other description
Information related to the transaction price allocated to the remaining performance obligations: The income
corresponding to the performance obligations that have been signed but not yet fulfilled or completed at the end
of the reporting period is CNY 633,754,721.26, of which CNY 316,877,360.63 is expected to be recognized in
Information related to variable consideration in the contract:
Other description
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Urban maintenance and
construction tax
Education surcharges 18,229,908.19 6,239,901.02
Property tax 38,494,307.30 36,577,269.48
Land use tax 21,474,951.70 21,263,435.84
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Vehicle and vessel use tax 29,602.64 55,080.14
Stamp duty 34,150,809.65 32,360,775.27
Others 147,323.06 186,426.21
Total 138,903,052.31 105,812,766.58
Other description:
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Employee compensation 418,204,175.92 438,665,751.19
Depreciation cost 43,027,324.67 70,280,864.26
Amortization of intangible assets 36,133,463.83 43,136,807.90
Repair cost of fixed assets 30,004,846.81 74,426,351.47
Others 78,596,928.15 123,448,858.40
Total 605,966,739.38 749,958,633.22
Other description
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Employee compensation 250,320,067.23 274,429,426.12
Packing cost 52,202,077.34 63,410,413.70
Storage fee 34,918,642.20 54,530,428.75
Rental fee 31,314,967.40 29,208,643.34
Others 103,286,681.94 99,191,906.12
Total 472,042,436.11 520,770,818.03
Other description:
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Employee compensation 599,512,737.98 762,070,442.14
Depreciation amortization expense 120,745,264.01 127,558,615.73
Material expenses 66,118,813.01 63,424,023.76
Test and inspection 44,222,102.96 102,663,923.41
Others 54,298,777.08 79,866,271.93
Total 884,897,695.04 1,135,583,276.97
Other description
Unit: CNY
Item Amount Incurred in Current Period Amount Incurred in the Previous
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Period
Interest income -255,428,034.69 -339,376,065.31
Interest expense 1,611,404.27 1,431,811.40
Exchange gain or loss 55,468,039.40 -10,163,545.25
Net actuarial interest 369,016.95 395,666.67
Cash discount -53,829,494.32 -64,567,826.30
Fees and other charges -1,040,155.20 2,194,258.87
Total -252,849,223.59 -410,085,699.92
Other description
Unit: CNY
Amount Incurred in the Previous
Sources of other income Amount Incurred in Current Period
Period
Additional deduction of VAT 210,671,420.57 142,242,391.94
Refund of handling fees to
individual income tax
Government subsidies 311,937,333.71 209,501,338.40
Total 524,635,067.40 353,779,659.32
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Income from long-term equity
investments accounted for using 18,178,157.63 213,988,413.65
the equity method
Others -48,294,017.40 -112,101,568.99
Total -30,115,859.77 101,886,844.66
Other description
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Bad debt losses of notes receivable 7,417.20 21,670.17
Bad debt losses of accounts
-19,625,895.12 -26,638,370.74
receivable
Bad debt losses of other
-2,372,431.37 21,085,584.29
receivables
Bad debt losses of long-term
-8,664,796.70 -3,061,966.20
receivables
Total -30,655,705.99 -8,593,082.48
Other description
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
I. Inventory falling price loss and
contract performance cost -151,749,513.50 -107,647,732.89
impairment loss
II. Impairment loss of contract
assets
Total -151,608,226.07 -108,034,774.17
Other description:
Unit: CNY
Sources of income from assets Amount Incurred in the Previous
Amount Incurred in Current Period
disposal Period
Gains from fixed assets disposal 99,547,161.36 746,088.82
Gains from intangible assets
disposal
Others -11,273.34
Total 154,614,688.74 746,088.82
Unit: CNY
Amount included in
Amount Incurred in Amount Incurred in
Item current non-recurring
Current Period the Previous Period
profits and losses
Unpayable amount recognized 2,799,051.01 11,378,406.14 2,799,051.01
Income from compensation,
liquidated damages and fines
Gains from damage and retirement
of non-current assets
Others -992,780.31 9,710,410.31 -992,780.31
Total 11,324,153.35 28,106,223.95 11,324,153.35
Other description:
Unit: CNY
Amount included in
Amount Incurred in Amount Incurred in current non-
Item
Current Period the Previous Period recurring profits and
losses
Donation 50,000.00 2,978,920.00 50,000.00
Losses from damage and
retirement of non-current assets
Expenditure of liquidated damages 246,305.40 -208,941.12 246,305.40
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
and penalties
Others 634,979.05 24,732.00 634,979.05
Total 1,662,537.37 3,783,791.81 1,662,537.37
Other description:
(1) Statement of income tax expenses
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Current income tax expenses 37,702,597.83 128,198,474.71
Deferred income tax expense -212,856,638.81 -276,740,077.23
Total -175,154,040.98 -148,541,602.52
(2) Adjustment process of accounting profits and income tax expenses
Unit: CNY
Item Amount Incurred in Current Period
Total profits -134,286,546.42
Income tax expense calculated at statutory/applicable
-33,571,636.61
tax rate
Effect of different tax rates applied to subsidiaries 5,931,927.22
Effect of adjustment to income tax of previous periods -29,560,278.44
Profit or loss of joint ventures and associated
enterprises calculated by equity method
Tax effect of R&D expenses plus deduction -120,680,776.80
Income tax expenses -175,154,040.98
Other description
For details, please refer to 41 in VII “Notes to Consolidated Financial Statements” of Section VIII - Financial
Report.
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Bank interest 299,977,105.90 397,148,937.72
Government subsidies received 247,352,138.68 184,296,132.42
Others 181,860,797.00 193,288,400.23
Total 729,190,041.58 774,733,470.37
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Description of other cash received related to operating activities:
Other cash paid related to operating activities
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Out-of-pocket expenses 596,122,774.88 511,728,709.39
Current account 555,829,293.70 451,612,329.19
Donations 50,000.00 2,978,920.00
Total 1,152,002,068.58 966,319,958.58
Description of other cash payments related to operating activities:
(2) Cash related to financing activities
Other cash paid related to financing activities
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Amount paid to repay lease
liabilities
Total 1,227,805.50 11,981,752.58
Description of other cash payments related to financing activities:
Changes in liabilities arising from financing activities
□Applicable ?Not applicable
(1) Supplementary information to cash flow statement
Unit: CNY
Amount in the current Amount of the Previous
Supplementary information
period Period
activities:
Net Profit 40,867,494.56 521,081,332.69
Add: impairment provision of assets 182,263,932.06 116,824,153.86
Depreciation of fixed assets, depletion of oil and gas
assets and productive biological assets
Depreciation of right-of-use asset 2,018,679.42 796,214.19
Amortization of intangible assets 50,497,998.86 50,898,373.61
Amortization of long-term deferred expenses
Losses from fixed assets disposal, intangible assets
-154,614,688.74 -746,088.82
and other long-term assets (incomes to be listed with“-”)
Loss from retirement of fixed assets (incomes to be
listed with “-”)
Loss from changes in fair value (incomes to be
listed with “-”)
Financial expenses (incomes to be listed with “-”) -176,988,531.24 -121,745,551.00
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Investment losses (incomes to be listed with “-”) 30,115,859.77 -101,886,844.66
Decrease of deferred income tax assets (increase to
-219,435,316.21 -158,004,827.46
be listed with “-”)
Increases of deferred income tax liabilities (decrease
to be listed with “-”)
Decrease in inventories (increase to be listed with “-
-2,152,169,519.08 1,421,102,204.04
”)
Decrease in operating receivables (increase to be
-2,363,012,740.41 -14,968,220,063.68
listed with “-”)
Increase in operating items payable (decrease to be
listed with “-”)
Others -37,134,026.30 -31,749,279.85
Net cash flows from operating activities 7,635,289,020.71 4,420,911,705.11
involving cash deposit and withdrawal:
Conversion of debt into capital
Convertible corporate bonds within one year
Fixed assets acquired under financial lease
Ending balance of cash 26,622,889,891.23 26,050,839,165.01
Less: opening balance of cash 19,391,201,104.68 23,108,018,586.92
Add: ending balance of cash equivalents
Less: opening balance of cash equivalents
Net increase in cash and cash equivalents 7,231,688,786.55 2,942,820,578.09
(2) Composition of cash and cash equivalents
Unit: CNY
Item Ending balance Opening balance
I. Cash 26,622,889,891.23 19,391,201,104.68
II. Ending balance of cash and cash
equivalents
(1) Foreign currency monetary items
Unit: CNY
Foreign Currency
Ending Balance
Item Balance at the End of the Exchange rate
Converted into CNY
Period
Monetary capital 822,780,233.29
Including: USD 80,621,326.05 7.16 577,135,824.69
EUR 141,719.29 8.40 1,190,782.16
HKD
Rand 494,774,227.90 0.40 199,449,322.92
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Shilling 16,579,444,766.40 0.0027 45,004,303.52
Accounts receivable 461,713,776.43
Including: USD 31,701,802.20 7.18 227,602,914.60
EUR
HKD
USD 32,322,072.40 7.16 231,380,787.48
Shilling 1,021,142,542.02 0.0027 2,730,074.35
Long-term loans
Including: USD
EUR
HKD
Prepayments 1,777,197.14
Including: USD 384.67 7.18 2,761.93
USD 13,245.34 7.16 94,818.09
Shilling 663,700,340.25 0.0027 1,774,435.21
Other receivables 107,170.72
Including: USD 1,000.00 7.18 7,180.00
Shilling 37,400,000.00 0.0027 99,990.72
Accounts payable 740,340,648.44
Including: USD 102,208,784.46 7.18 733,859,032.52
USD 666,353.00 7.16 4,770,154.59
Shilling 640,145,924.31 0.0027 1,711,461.33
Other description:
(2) Description of overseas operating entities, including the disclosure of main overseas business place,
recording currency and selection basis, or changes in the recording currency (if any) for important
overseas operating entities.
?Applicable □Not applicable
Recording
Unit Business place Registered Capital
currency
FAW Jiefang Austria R&D Co., Ltd. Steyr, Austria EUR 2 million EUR
Tanzanian
Jiefang Motors Tanzania Ltd. Dar es Salaam, Tanzania 220,000 shillings
shilling
FAW Vehicle Manufacturing South South African
Johannesburg, South Africa 624,339,531.00 Rand
Africa Co., Ltd. Rand
(1) The Company acting as the lessee
?Applicable □Not applicable
Variable lease payments are not included in the measurement of lease liabilities
□Applicable ?Not applicable
Lease expenses for simplified short-term leases or low-value asset leases
□Applicable ?Not applicable
Circumstances involving sale and leaseback transactions
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Unit: CNY
Item Amount Incurred in Current Period
Short-term lease expense 27,858,103.52
Low-value asset lease expense
Variable lease payments are not included in the measurement of lease
liabilities
Total 27,858,103.52
(2) The Company acting as the lessor
Operating lease with the Company acting as the lessor
?Applicable □Not applicable
Unit: CNY
Including: income related to
Item Rental income variable lease payments not
included in the lease receipts
Rental income 2,680,952.34
Total 2,680,952.34
Financing lease with the Company acting as the lessor
□Applicable ?Not applicable
Yearly undiscounted lease receipts for the next five years
□Applicable ?Not applicable
Reconciliation of Undiscounted Lease Receivables and Net Investment in Leases
VIII. R&D Expenditures
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Including: Expensed R&D
expenditure
Capitalized R&D
expenditure
Unit: CNY
Increase in the Current Decrease in the Current
Period Period
Transfer
Item Opening balance red to Ending balance
Internal
Other Recognized as current
development
s intangible assets profits
expenditures
and
losses
A2205 23,547,997.18 9,963,042.15 33,511,039.33
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
A2206
A2207 41,535,297.80 11,332,963.49 52,868,261.29
A2208 30,524,736.25 8,095,151.50 38,619,887.75
A2209 32,047,370.79 32,047,370.79
A2305 39,500,208.40 16,578,387.62 56,078,596.02
A2306 47,071,931.70 5,534,396.13 49,287,149.29 3,319,178.54
A2307 62,451,369.97 5,728,271.43 68,179,641.40
A2308 46,948,645.47 12,675,576.95 59,624,222.42
L126 22,108,818.25 22,108,818.25
L2403 38,408.37 3,935,175.98 3,973,584.35
L2405 228,815.19 7,773,037.89 8,001,853.08
T2208 35,117,380.02 9,370,234.14 44,487,614.16
T2209 14,557,788.58 -5.80 14,557,782.78
T2303 1,611,856.86 1,611,856.86
T2402 778,994.99 778,994.99
XC2311120 8,011,745.85 8,011,745.85
XC2411020 7,488,163.90 7,488,163.90
XC2411030 7,794,198.22 7,794,198.22
XC2411098 12,152,129.50 600.00 12,434,914.16 -282,184.66
XC2411107 2,967,534.05 2,967,534.05
Z2407 12,299,822.33 3,128,750.19 15,428,572.52
Z2408 9,466,942.22 116,291.96 9,583,234.18
Z2409 9,393,773.35 380,495.69 9,774,269.04
Z2431 2,062,589.02 2,062,589.02
Z2442 32,424,484.68 14,971,354.87 47,395,839.55
Z2443 411,413.51 3,026,855.51 3,438,269.02
Z2444 132,123.81 2,240,683.48 2,372,807.29
Total 500,611,951.24 116,913,852.20 87,983,705.47 529,542,097.97
Significant capitalized R&D projects
Expected
Specific basis
generation Time point of
Expected for
Item R&D progress method of capitalization
completion time capitalization
economic starting
starting
benefits
Being adopted
by
consideration
Product November 30, Production
A2207 January 1, 2023 and decision-
validation 2026 and sales
making at the
project review
meeting
Being adopted
by
consideration
Product November 30, Production
A2208 January 1, 2023 and decision-
validation 2026 and sales
making at the
project review
meeting
Being adopted
by
consideration
Production
A2209 Trial production July 31, 2025 January 1, 2023 and decision-
and sales
making at the
project review
meeting
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Being adopted
by
consideration
Product Production
A2308 June 1, 2026 March 1, 2023 and decision-
validation and sales
making at the
project review
meeting
Being adopted
by
consideration
Production
A2306 Already SOP March 1, 2025 March 1, 2023 and decision-
and sales
making at the
project review
meeting
Being adopted
by
consideration
Product February 1, Production
A2307 March 1, 2023 and decision-
validation 2026 and sales
making at the
project review
meeting
Being adopted
by
consideration
Product February 1, Production
A2305 March 1, 2023 and decision-
validation 2026 and sales
making at the
project review
meeting
Being adopted
by
consideration
Product Production
T2208 April 30, 2026 January 1, 2023 and decision-
validation and sales
making at the
project review
meeting
Being adopted
by
Validation on
consideration
public roads December 30, Production
Z2442 June 1, 2024 and decision-
initiated via 2025 and sales
making at the
TR4
project review
meeting
Completed
validation of
Being adopted
engineering
by
prototype
consideration
vehicles and December 31, Production
Z2407 February 1, 2024 and decision-
conducted two 2025 and sales
making at the
rounds of trial
project review
assembly for
meeting
tooling
prototypes.
Being adopted
by
December 31, Production
T2209 Trial production January 1, 2023 consideration
and decision-
making at the
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
project review
meeting
Being adopted
Review of by
engineering consideration
Production
L126 prototype May 10, 2026 April 7, 2026 and decision-
and sales
fabrication and making at the
testing / TR5 project review
meeting
Being adopted
by
consideration
Product Production
A2205 June 1, 2027 December 1, 2023 and decision-
validation and sales
making at the
project review
meeting
IX. Equity in Other Entities
(1) Composition of the enterprise group
Unit: CNY
Principal Register Share proportion
Name of Nature of Way of
Registered Capital business ed Indire
subsidiary business Direct acquisition
place address ct
Business
FAW Jiefang Vehicle combinatio
Changch Changch
Automotive 10,803,012,510.01 manufacturi 100.00% n under
un un
Co., Ltd. ng common
control
Business
FAW Jiefang
Vehicle combinatio
(Qingdao)
Automotive
ng and sales common
Co., Ltd.
control
Business
FAW Jiefang Automotive
combinatio
Dalian Diesel engine
Engine Co., manufacturi
common
Ltd. ng
control
FAW Jiefang Manufacturi
Business
Lvdong ng of
combinatio
Recycling automotive
Technology components
common
(Wuxi) Co., and
control
Ltd. accessories
Business
Technology
FAW Jiefang combinatio
research and
Austria R&D 15,765,000.00 Austria Austria 100.00% n under
developmen
Co., Ltd. common
t
control
FAW Jiefang Changch Changch Vehicle Establishm
Automotive un un sales ent by
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Sales Co., investment
Ltd.
FAW Jiefang
Uni-D Technical
Establishm
Transportation services and
Technology other
investment
(Tianjin) Co., services
Ltd.
Business
Jiefang combinatio
Vehicle
Motors 1,654.00 Tanzania Tanzania 100.00% n under
sales
Tanzania Ltd. common
control
Business
FAW (Africa) combinatio
Changch Changch Vehicle
Investment 680,000,000.00 55.00% n under
un un sales
Co., Ltd. common
control
Business
FAW Vehicle
Vehicle combinatio
Manufacturin South South
g South Africa Africa Africa
ng and sales common
Co., Ltd.
control
FAW Jiefang
Group Establishm
Changch Changch Vehicle
International 200,000,000.00 100.00% ent by
un un sales
Automobile investment
Co., Ltd.
Description of the fact that the shareholding proportion in subsidiaries is different from the proportion of voting
rights: none
Basis for holding half or less of the voting rights but still controlling the investee, and for holding more than
half of the voting rights but not controlling the investee: none
Basis for control of important structured entities included in the consolidation scope: none
Basis for determining whether the Company is an agent or a principal: none
Other description: none
(1) Important joint ventures or associated enterprises
Share proportion Accounting
Treatment
Method for
Name of Joint Principal
Registered Nature of Investment
Ventures or Associated business
address business Direct Indirect in Joint
Enterprises place
Ventures or
Associated
Enterprises
Sanguard Automobile Financial Equity
Changchun Changchun 17.50%
Insurance Co., Ltd. insurance method
FAW Changchun
Industrial
Ansteel Jiefang Steel Equity
Changchun Changchun manufacturin 40.00%
Processing and method
g
Distribution Co., Ltd.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
FAW Changchun
Industrial
Baoyou Jiefang Steel Equity
Changchun Changchun manufacturin 21.81%
Processing and method
g
Distribution Co., Ltd.
Manufacturin
g of
Changchun Wabco
automotive Equity
Automotive Control Changchun Changchun 40.00%
components method
System Co., Ltd.
and
accessories
Research and
Suzhou Zhito Equity
Suzhou Suzhou experimental 25.68%
Technology Co., Ltd. method
development
Software and
FAW Jiefang Fujie
information Equity
(Tianjin) Technology Tianjin Tianjin 10.00%
technology method
Industry Co., Ltd.
services
Software and
information Equity
SmartLink Nanjing Nanjing 29.48%
technology method
services
Manufacturin
Foshan Diyiyuansu
g and Equity
New Energy Foshan Foshan 45.00%
technical method
Technology Co., Ltd.
services
Changchun
Technical Equity
Automotive Test Changchun Changchun 14.64%
services method
Center Co., Ltd.
Jiefang Times New Technical
Equity
Energy Technology Shijiazhuang Shijiazhuang services and 50.00%
method
Co., Ltd. other services
Engineering
Diyi AESC New and
Energy Power technology Equity
Wuxi Wuxi 49.00%
Technology (Wuxi) research and method
Co., Ltd. experiment
development
Explanation of the fact that the shareholding proportion in joint ventures or associated enterprises is different
from the proportion of voting rights: there is no difference between the shareholding proportion and the
proportion of voting rights.
Basis for holding less than 20% of voting rights but with significant influence, or holding 20% or more of
voting rights but without significant influence: The Company holds 17.50% of the shares of Xin’an Automobile
Insurance Co., Ltd., and according to the Articles of Association of the Company, the Company appoints
one director, thereby exercising significant influence over Xin’an Automobile Insurance Co., Ltd. The
Company holds 10.00% of the shares of Jiefang Fujie (Tianjin) Technology Industry Co., Ltd., and according to
the Articles of Association of the Company, the Company appoints three directors, thereby exercising
significant influence over Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. The Company holds 14.64% of
the shares of Changchun Automotive Test Center Co., Ltd., and according to the Articles of Association of the
Company, the Company appoints one director, thereby exercising significant influence over Changchun
Automotive Test Center Co., Ltd.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(2) Excess losses incurred by joint ventures or associated enterprises
Unit: CNY
Unrecognized Losses in Accumulated
Unrecognized Losses
Name of Joint Ventures the Current Period (or Unrecognized Losses at
Accumulated in Prior
or Associated Enterprises Net Profit Shared in the the End of the Current
Periods
Current Period) Period
Suzhou Zhito Technology
Co., Ltd.
SmartLink 19,547,758.40 -41,661,897.12 -22,114,138.72
Other description
X. Government subsidies
□Applicable ?Not applicable
Reasons for failing to receive the expected amount of government subsidies at the expected time point
□Applicable ?Not applicable
□Applicable ?Not applicable
?Applicable □Not applicable
Unit: CNY
Amount Incurred in the Previous
Account item Amount Incurred in Current Period
Period
Government subsidies 311,937,333.71 209,501,338.40
Other description:
Ⅺ. Risk Related to Financial Instruments
(1) Risk management objectives and policies
The main financial instruments of the Company include monetary capital, notes receivable, accounts receivable,
receivables financing, other receivables, non-current assets due within one year, other current assets, long-term
receivables, other equity instrument investments, notes payable, accounts payable, other payables, non-current
liabilities due within one year, and lease liabilities. Details of each financial instrument have been disclosed in
relevant notes. The risks related to these financial instruments and the risk management policies adopted by the
Company to reduce these risks are described below. The management of the Company manages and monitors
these risk exposures to ensure that the above risks are controlled within a limited range.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
The Company carries out risk management to achieve an appropriate balance between risks and benefits,
minimize the negative impact of risks on the Company’s business performance, and maximize the interests of
shareholders and other equity investors. The Company, based on the risk management objectives, adopts the
basic risk management strategy of determining and analyzing various risks faced by the Company, establishing
an appropriate baseline for risk tolerance and carrying out risk management, and supervising various risks in a
timely and reliable manner to control the risks within a limited range.
Main risks caused by financial instruments of the Company include credit risk, liquidity risk and market risk
(including exchange rate risk and interest rate risk).
① Credit risk
Credit risk refers to the risk of financial loss to the Company caused by the counterparty’s failure to perform its
contractual obligations.
The Company manages credit risks by portfolio classification. Credit risk mainly arises from bank deposits,
notes receivable, accounts receivable, other receivables, long-term receivables, etc.
The Company’s deposits are mainly deposited in state-owned banks and other large and medium-sized listed
banks and First Automobile Finance Co., Ltd., and the Company does not expect significant credit risks in its
bank deposits.
The Company makes relevant policies to control the credit risk exposure for notes receivable, accounts
receivable, other receivables and long-term receivables. The Company evaluates the credit qualification of
customers and sets the credit period based on their financial conditions, credit records and other factors such as
current market situations. The Company monitors the credit records of customers regularly, and take measures
such as written reminders, shortening of credit period or cancellation of credit period for customers with poor
credit records, so as to ensure that the overall credit risk is within a controllable range.
The debtors of the Company’s accounts receivable are customers distributed in different industries and regions.
The Company carries out continuous credit assessment on the financial condition of accounts receivable and
purchases credit guarantee insurance when appropriate.
The maximum credit risk exposure borne by the Company is the book value of each financial asset in the
balance sheet. The Company does not provide any other guarantee that may expose the Company to credit risk.
The accounts receivable of the top five customers account for 78.46% of the total accounts receivable of the
Company. Other receivables of the top five companies with debts account for 63.53% of the total other
receivables of the Company.
② Liquidity risk
Liquidity risk refers to the risk of capital shortage when the Company performs its obligations of settlement by
delivering cash or other financial assets.
The Company maintains and monitors cash and cash equivalents deemed adequate by the management during
liquidity risk management to meet the Company’s operating needs and reduce the impact of fluctuations in cash
flows. The management of the Company monitors the use of bank loans and ensures compliance with the loan
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
agreements. Meanwhile, the Company obtains commitments from major financial institutions to provide
sufficient reserve funds to meet short-term and long-term funding needs.
The sources of the Company’s working capital include funds generated from operating activities, bank loans
and other loans. As of June 30, 2025, the Company’s unused bank credit line amounted to CNY 14.442 billion.
③ Market risk
Market risk of financial instruments refers to the risk of fluctuation in fair value or future cash flow of financial
instruments due to the changes in market price, including interest rate risk, exchange rate risk and other price
risks.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to
changes in market interest rates. Interest rate risk may arise from both recognized interest-bearing financial
instruments and unrecognized financial instruments.
The risk of changes in cash flow of financial instruments caused by changes in interest rates of the Company is
mainly related to bank loans with floating interest rates. It is the policy of the Company to maintain floating
interest rates on these loans.
Sensitivity analysis on interest rate risk:
The sensitivity analysis on interest rate risk is based on the assumption that changes in market interest rates
affect interest income or expenses on variable rate financial instruments.
The Company had no interest-bearing debts such as bank loans as of June 30, 2025.
Exchange rate risk
Exchange rate risk refers to the risk of fluctuation in fair value or future cash flow of financial instruments due
to change in foreign exchange rate. Exchange rate risk may come from financial instruments denominated in a
foreign currency other than the recording currency.
The Company’s foreign exchange risk exposure is primarily related to the euro. Except for assets held by
subsidiaries established in Austria, Tanzania, and South Africa that are denominated in euros, shillings, and
rand respectively, the Company’s main business activities are priced and settled in CNY. The balance of the
Company’s assets and liabilities were all in CNY as of June 30, 2025, except a small amount of monetary
capitals including the balance in EUR. Therefore, the Company does not believe that the exchange rate risk
faced is significant.
(2) Capital management
The Company prepares capital management policy to ensure continuous operation of the Company, thus
providing returns to shareholders, benefiting other stakeholders, and maintaining the best capital structure to
reduce capital costs.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
In order to maintain or adjust the capital structure, the Company may adjust the financing method, adjust the
amount of dividends paid to shareholders, return capital to shareholders, issue new shares and other equity
instruments, or sell assets to reduce debt.
The Company monitors the capital structure based on the asset-liability ratio (i.e. total liabilities divided by total
assets). As of June 30, 2025, the Company’s asset-liability ratio is 66.80%.
(1) Classification of transfer methods
□Applicable ?Not applicable
(2) Financial assets derecognized due to transfer
□Applicable ?Not applicable
(3) Financial assets with continuous involvement in asset transfer
□Applicable ?Not applicable
Other description
XII. Disclosure of Fair Value
Unit: CNY
End-of-period fair value
Item Level I fair value Level II fair value Level III fair value
Total
measurement measurement measurement
I. Ongoing fair
-- -- -- --
value measurement
(I) Investment in
other equity 589,630,392.00 589,630,392.00
instruments
Total assets are
measured at fair
value on an ongoing
basis
II. Non-ongoing fair
-- -- -- --
value measurement
at fair value
Quotations for the same assets or liabilities in active markets (unadjusted).
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
XIII. Related Parties and Related Transactions
Shareholding
Proportion of
Proportion
Voting Rights of
Name of Parent Registered Nature of of the Parent
Registered Capital the Parent
Company address business Company in
Company in the
the
Company
Company
Production and
sales of CNY
FAW Changchun 62.19% 62.19%
automobiles and 78,000,000,000.00
parts
Description of the parent company of the Company
The ultimate controlling party of the Company is China FAW.
Other description: The registered capital of the parent company has not changed during the reporting period.
For details of subsidiaries of the Company, please refer to 1 in IX “Equity in Other Entities” of Section VIII -
Financial Report.
For details of important joint ventures or associated enterprises of the Company, please refer to 2 in IX “Equity
in Other Entities” of Section VIII - Financial Report.
Other joint ventures or associated enterprises that have related party transactions with the Company in the
current period or in the previous period, resulting in balance, are as follows:
Name of Joint Ventures or Associated Enterprises Relationship with the Company
Associated enterprise of the Company, the same
Sanguard Automobile Insurance Co., Ltd.
ultimate controlling party
Associated enterprise of the Company, the same
Changchun Automotive Test Center Co., Ltd.
ultimate controlling party
FAW Changchun Ansteel Jiefang Steel Processing and
Associated enterprise of the Company
Distribution Co., Ltd.
Changchun Wabco Automotive Control System Co.,
Associated enterprise of the Company
Ltd.
Suzhou Zhito Technology Co., Ltd. Associated enterprise of the Company
FAW Changchun Baoyou Jiefang Steel Processing and
Associated enterprise of the Company
Distribution Co., Ltd.
FAW Jiefang Fujie (Tianjin) Technology Industry Co.,
Associated enterprise of the Company
Ltd.
SmartLink Associated enterprise of the Company
Foshan Diyiyuansu New Energy Technology Co., Ltd. Associated enterprise of the Company
Jiefang Times New Energy Technology Co., Ltd. Joint venture of the Company
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Diyi AESC New Energy Power Technology (Wuxi)
Associated enterprise of the Company
Co., Ltd.
Other description
Relationship between Other Related Parties and the
Names Of Other Related Parties
Company
China FAW Group Import & Export Co., Ltd. The same ultimate controlling party
FAW Changchun Automobile Trading Service Co.,
The same ultimate controlling party
Ltd.
Changchun FAW International Tendering Co., Ltd. The same ultimate controlling party
Changchun FAW International Logistics Co., Ltd. The same ultimate controlling party
Changchun Automotive Test Center Co., Ltd. The same ultimate controlling party
Changchun Chengxin Second-hand Vehicles
The same ultimate controlling party
Distribution Co., Ltd.
FAW Asset Management Co., Ltd. The same ultimate controlling party
FAW Foundry Co., Ltd. The same ultimate controlling party
FAW Zhixing Technology (Nanjing) Co., Ltd. The same ultimate controlling party
FAW Logistics Co., Ltd. The same ultimate controlling party
FAW Logistics (Changchun Lushun) Storage and
The same ultimate controlling party
Transportation Co., Ltd.
FAW Logistics (Qingdao) Co., Ltd. The same ultimate controlling party
FAW Logistics (Chengdu) Co., Ltd. The same ultimate controlling party
FAW Mold Manufacturing Co., Ltd. The same ultimate controlling party
FAW-HONGTA Yunnan Automobile Co., Ltd. The same ultimate controlling party
FAW Harbin Light-Automobile Co., Ltd. The same ultimate controlling party
FAW Equity Investment (Tianjin) Co., Ltd. The same ultimate controlling party
Changchun Faw Service Trade Co., Ltd. The same ultimate controlling party
FAW Forging (Jilin) Co., Ltd. The same ultimate controlling party
FAW Chuxing Technology Co., Ltd. The same ultimate controlling party
Faw (Dalian) Trade and Logistics Co., Ltd The same ultimate controlling party
FAW (Dalian) International Logistics Co., Ltd. The same ultimate controlling party
Wuxi Sawane Spring Co., Ltd. The same ultimate controlling party
Qiming Information Technology Co., Ltd. The same ultimate controlling party
Hainan Tropical Automobile Test Co., Ltd. The same ultimate controlling party
Dalian Qiming Haitong Information Technology Co.,
The same ultimate controlling party
Ltd.
FAW Changchun Comprehensive Utilization Co., Ltd. Other related parties
FAW Changchun Yanfeng Visteon Electronics Co.,
Other related parties
Ltd.
FAW Changchun Communication Technology Co.,
Other related parties
Ltd.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
FAW Changchun Tianqi Process Equipment
Other related parties
Engineering Co., Ltd.
Changchun FAW United Casting Company Other related parties
Changchun FAWAY Automobile Components Co.,
Other related parties
Ltd.
Changchun FAWSN Group Co., Ltd. Other related parties
Changchun Yidong Clutch Co., Ltd. Other related parties
Changchun Sodexo Management Service Co., Ltd. Other related parties
Changchun Automotive Economic and Technological
Development Zone Environmental Sanitation and Other related parties
Cleaning Co., Ltd.
FAW Jilin Automobile Co., Ltd. Other related parties
Cinda FAW Commercial Factoring Co., Ltd. Other related parties
Wuxi CRRC New Energy Automobile Co., Ltd. Other related parties
Shandong Pengxiang Automobile Co., Ltd. Other related parties
China Unicom Intelligent Network Technology Co.,
Other related parties
Ltd.
United Fuel Cell System R&D (Beijing) Co., Ltd. Other related parties
Jilin Checheng Garden Hotel Co., Ltd. Other related parties
The Ninth Institute of Project Planning & Research of
Other related parties
China Machinery Industry (FIPPR)
Hongqi Intelligent Mobility Technology (Beijing) Co.,
Other related parties
Ltd.
Grammer Vehicle Parts (Harbin) Co., Ltd. Other related parties
Fulscience Automotive Electronics Co., Ltd. Other related parties
Fawer Auto Parts Co., Ltd. Other related parties
Dalian Qingfeng Bus Co., Ltd. Other related parties
Other description
(1) Related transactions of purchasing or selling goods and providing or receiving labor services
Statement of goods purchase/reception of labor services
Unit: CNY
Is the
Transa
Content of ction
Related Amount Incurred in Approved Amount Incurred in
Related Amoun
Parties Current Period Transaction Amount the Previous Period
Transaction t
Exceed
ed
The same Goods
ultimate purchase and 1,007,086,334.07 4,488,830,000.00 No 2,247,262,739.64
controlling reception of
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
party labor services
Goods
Other related purchase and
parties reception of
labor services
Statement of goods sales/rendering of services
Unit: CNY
Content of Related Amount Incurred in Amount Incurred in the
Related Parties
Transaction Current Period Previous Period
The same ultimate
Sales of goods 371,845,968.65 8,566,904,736.28
controlling party
Other related parties Sales of goods 1,690,043,424.43 1,299,062,853.31
Description of related transactions of purchasing or selling goods and providing or receiving labor services:
(2) Related lease
The Company, as the lessor:
Unit: CNY
Lease Income Lease Income
Name of Lessee Type of Leased Assets Recognized in the Recognized in the
Current Period Previous Period
FAW Houses and Buildings 774,875.72 774,875.72
Fawer Auto Parts Co.,
Houses and Buildings 197,702.76 197,702.76
Ltd.
FAW Changchun
Communication Land 149,552.08 22,018.35
Technology Co., Ltd.
FAW Changchun Baoyou
Steel Processing and Workshop 1,056,155.96 1,059,049.54
Distribution Co., Ltd.
Foshan Diyiyuansu New
Energy Technology Co., House 3,251,819.04 48,441.12
Ltd.
Shandong Pengxiang
Houses and Buildings 386,020.18 386,020.18
Automobile Co., Ltd.
The Company, as the lessee:
Unit: CNY
Rental
Variable Lease
Expenses for
Payments not
Simplified Interest Expense
Included in the
Short-term on Lease Increased right-
Measurement Rent Paid
leases and Low- Liabilities of-use assets
Na of Lease
value asset Incurred
me Type of Liabilities (If
Leases (If
of Leased Applicable)
Applicable)
less Assets
or Amou Amou Amou Amou Amou Amount Amou Amount Amou Amou
nt nt nt nt nt Incurred nt Incurred nt nt
Incurr Incurr Incurr Incurr Incurr in the Incurr in the Incurr Incurr
ed in ed in ed in ed in ed in Previous ed in Previous ed in ed in
Curre the Curre the Curre Period Curre Period Curre the
nt Previo nt Previo nt nt nt Previo
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Period us Period us Period Period Period us
Period Period Period
Houses
FA and 3,839,917 112,555.
W Buildin .11 99
gs
Description of related leases
(3) Remuneration of key management personnel
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Remuneration of key management
personnel
(4) Other related transactions
Amount incurred in
Content of Related Amount incurred in the
Related Parties the current period
Transaction previous period (CNY)
(CNY)
First Automobile Finance Co., Ltd. Interest income 38,106,466.96 61,055,123.68
Intercompany
First Automobile Finance Co., Ltd. 99,890,000.00
borrowing
(1) Receivables
Unit: CNY
Ending balance Opening balance
Project Related
Provision for Provision for
Name Parties Book balance Book balance
Bad Debts Bad Debts
The same
Accounts ultimate
receivable controlling
party
Accounts Other related
receivable parties
The same
Other ultimate
receivables controlling
party
Other Other related
receivables parties
Prepayments The same 5,432,571.38 49,160,771.58
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
ultimate
controlling
party
Other related
Prepayments 6,991.16 269,528.69
parties
(2) Payables
Unit: CNY
Project Name Related Parties Ending book balance Beginning Book Balance
The same ultimate
Accounts payable 1,166,377,133.68 2,138,309,238.04
controlling party
Accounts payable Other related parties 1,297,764,861.06 684,811,924.54
The same ultimate
Other payables 32,013,725.53 243,240,628.69
controlling party
Other payables Other related parties 36,698,994.48 70,246,189.48
The same ultimate
Contract liabilities 1,481,223.00 38,689,941.81
controlling party
Contract liabilities Other related parties 992,554.86 536,223,467.10
Accounts received in The same ultimate
advance controlling party
Accounts received in
Other related parties 36,698,994.48 335,560.21
advance
The same ultimate
Lease liabilities 4,058,856.90
controlling party
XIV. Share-based Payment
□Applicable ?Not applicable
?Applicable □Not applicable
Unit: CNY
Restricted shares are determined according to the
Measures for determining the fair value of equity
closing price on the grant date, and stock options are
instruments on the grant date
determined according to the B-S option pricing model.
Important parameters of fair value of equity
Quoted prices in active markets
instruments on the grant date
The Company determines the number according to the
Basis for determining the number of exercisable Proposal on the Restricted Share Incentive Plan of
equity instruments FAW Jiefang Group Co., Ltd. (Draft) and Its
Summary, the Proposal on the Regulations for the
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Implementation Assessment of Restricted Share
Incentive Plan of FAW Jiefang Group Co., Ltd., the
Proposal on the Regulations for Restricted Share
Incentive of FAW Jiefang Group Co., Ltd., and the
Proposal on Requesting the Shareholders’ Meeting to
Authorize the Board of Directors to Handle Matters
Related to the Company’s Restricted Share Incentive
Plan.
Aggregate amount of equity-settled share-based
payment charged to the capital reserve
Total expenses recognized by equity-settled share-
based payment in the current period
Other description
□Applicable ?Not applicable
?Applicable □Not applicable
Unit: CNY
Equity-settled share-based Cash-settled share-based payment
Grantee category
payment expenses expenses
Manager 17,012.29
Total 17,012.29
Other description
XV. Commitments and Contingencies
Important commitments existing on the balance sheet date
(1) Important contingencies existing on the balance sheet date
Contingent liabilities arising from pending litigation and arbitration and their financial impact
Cause of Court of Subject Amount
Plaintiff Defendant Case Progress
Action Acceptance (CNY)
FAW Jiefang Automotive Co.,
Zhao Liangxi,
Ltd., Suihua Jinhai Chao Product Beilin District
Guangdong Xian Yida
Automobile Sales Co., Ltd., liability People’s Court of 2,243,964.00 Second instance
Cold Chain Logistics
PICC Property and Casualty dispute Suihua City
Co., Ltd. Henan Branch
Company Limited Suihua
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Branch
Jilin Anrui Lifting
Gaobeidian
Zhao Qianqian, Yu Transportation Co., Ltd., Product
Municipal People’s
Xiufeng, Li Shunxi, Li Shandong Yongseng Rubber liability 1,289,951.00 First instance
Court of Hebei
Mengyuan Group Co., Ltd., and China FAW dispute
Province
Group Co., Ltd.
Wuxi Dongkai Automobile
Trading Co., Ltd., Wuxi Product Huishan District
Wuxi Leming
Zhongbang Jiefang Automobile liability People’s Court of 1,080,000.00 First instance
Transport Co., Ltd.
Sales & Service Co., Ltd. and dispute Wuxi City
China FAW Group Corporation
FAW Jiefang (Qingdao) Qilin District
Zhuang Qixian, Yang Automotive Co., Ltd., FAW- Labor People’s Court of
Xiao, Yang Yu HONGTA Yunnan Automobile dispute Qujing City,
Co., Ltd. Yunnan Province
As of June 30, 2025, the Company has no contingencies other than those mentioned above that should be
disclosed.
(2) Explanation is also required when the Company has no important contingencies to be disclosed
The Company has no important contingencies to be disclosed.
XVI. Notes to Main Items of Parent Company’s Financial Statements
Unit: CNY
Item Ending balance Opening balance
Dividends receivable 156,960,226.90
Other receivables 6,553,832,963.97 6,314,003,121.96
Total 6,553,832,963.97 6,470,963,348.86
(1) Dividends receivable
Unit: CNY
Item (or Investee) Ending balance Opening balance
First Automobile Finance Co., Ltd. 156,960,226.90
Total 156,960,226.90
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(2) Other receivables
Unit: CNY
Nature Ending book balance Beginning Book Balance
Current account 6,553,957,675.97 6,314,127,833.96
Total 6,553,957,675.97 6,314,127,833.96
Unit: CNY
Aging Ending book balance Beginning Book Balance
Within 1 year (including 1 year) 6,553,498,669.71 6,313,668,827.70
Over 3 years 459,006.26 459,006.26
Total 6,553,957,675.97 6,314,127,833.96
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Unit: CNY
Ending balance Opening balance
Book balance Provision for Bad Debts Book balance Provision for Bad Debts
Category Provision Book Value Provision Book Value
Amount Scale Amount proportio Amount Scale Amount
proportion
n
Including:
Provision for
bad debts 124,712.0
made by 0
portfolio
Including:
Aging 124,712.0
portfolio 0
Total 6,553,957,675.97 100.00% 124,712.00 0.00% 6,553,832,963.97 6,314,127,833.96 100.00% 0.00% 6,314,003,121.96
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Provision for bad debts by portfolio category
Unit: CNY
Ending balance
Name
Book balance Provision for Bad Debts Provision proportion
Provision for bad debts
made by portfolio
Total 6,553,957,675.97 124,712.00
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses:
Unit: CNY
Stage I Stage II Stage III
Provision for Bad Expected credit loss Expected credit loss
Expected Credit Total
Debts in the duration for the entire
Losses for the Next
(credit impairment duration (with
has not occurred) credit impairment)
Balance as of
January 01, 2025
Balance on January
current period
Balance as of June
Basis for stage classification and bad debt provision rates: Stage II provisions are based on aging, with a
provision ratio of 0.00% for 3 to 4 years. Significant book balance changes occurred in the provision for losses
in the current period
□Applicable ?Not applicable
Unit: CNY
Proportion in
Ending Balance
Nature of total ending
Name of Unit Ending balance Aging of Provision for
Payment balance of other
Bad Debts
receivables
FAW Jiefang
Current
Automotive 6,553,498,669.71 Within 1 year 99.99%
account
Co., Ltd.
Changchun
Committee of
Current
Municipal and 459,006.26 3-4 years 0.01% 124,712.00
account
Rural
Construction
Total 6,553,957,675.97 100.00% 124,712.00
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Unit: CNY
Ending balance Opening balance
Item Impairment Impairment
Book balance Book Value Book balance Book Value
Provision Provision
Investment in subsidiaries 21,611,015,169.73 21,611,015,169.73 21,611,015,169.73 21,611,015,169.73
Investment in associated
enterprises and joint ventures
Total 21,799,225,298.95 21,799,225,298.95 21,795,117,325.10 21,795,117,325.10
(1) Investment in subsidiaries
Unit: CNY
Ending
Ending balance (book balance of
Opening Increase/Decrease in the current period
value) impairmen
Opening balance balance of t provision
Investee
(book value) impairment
provision Additional Reduced
Impairment
Investmen Investmen Others
Provision
t t
FAW Jiefang Automotive Co., Ltd. 21,081,923,036.51 21,081,923,036.51
FAW (Africa) Investment Co., Ltd. 329,092,133.22 329,092,133.22
FAW Jiefang Group International
Automobile Co., Ltd.
Total 21,611,015,169.73 21,611,015,169.73
(2) Investment in associated enterprises and joint ventures
Unit: CNY
Open Increase/Decrease in the current period Endin
ing g
Opening balance balan Addit Redu Investment Adjustment to Chan Cash Ending balance balan
Investor Impairme
(book value) ce of ional ced gains or losses other ges in dividends Othe (book value) ce of
nt
impai Inves Inves recognized comprehensive other and rs impai
Provision
rment tment tment under the income equity profits rment
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
provi equity method are provi
sion declared sion
to be paid
I. Joint ventures
II. Associated enterprises
Sanguard
Automobile 184,102,155.37 2,203,459.15 1,904,514.70 188,210,129.22
Insurance Co., Ltd.
Subtotal 184,102,155.37 2,203,459.15 1,904,514.70 188,210,129.22
Total 184,102,155.37 2,203,459.15 1,904,514.70 188,210,129.22
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
The recoverable amount is the net amount of the fair value after deducting the disposal expenses
□Applicable ?Not applicable
The recoverable amount is the present value of the expected future cash flow
□Applicable ?Not applicable
Unit: CNY
Amount Incurred in the Previous
Item Amount Incurred in Current Period
Period
Long-term equity investment
income calculated with cost 353,500,000.00
method
Income from long-term equity
investments accounted for using 2,203,459.15 194,893,139.83
the equity method
Total 2,203,459.15 548,393,139.83
XVII. Supplementary Information
?Applicable □Not applicable
Unit: CNY
Item Amount Description
Profits or losses on disposal of non- It refers to the net gain on disposal
current assets of non-current assets.
Government subsidies included in the
current profit or loss (except those
closely related to the Company’s normal
operations, conforming to the State
policies and regulations and enjoyed in
line with the specified standards, and
having a continuous impact on the profit
or loss of the Company)
Reversal of impairment provision for The reversal of impairment
receivables subject to separate 1,802,060.86 provision for receivables subject to
impairment test separate impairment test.
Non-operating income and expenses The net non-operating income and
other than the above expenses.
Less: amount affected by income tax 81,725,953.01
Amount affected by minority
-3,703.29
shareholder’s equity (after-tax)
Total 396,293,449.57 --
Specific conditions of other profit and loss items meeting the definition of non-recurring profit and loss:
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
□Applicable ?Not applicable
There are no specific conditions of profit and loss items meeting definition of non-recurring profit and loss for
the Company.
Explanation on defining the non-recurring profit and loss items listed in the Explanatory Announcement No.1
on Information Disclosure by Companies Issuing Securities Publicly - Non-recurring Profit and Loss as
recurring profit and loss items
□Applicable ?Not applicable
Earnings per Share
Profit for the Reporting Weighted average return
Period on equity Basic earnings per Share Diluted earnings per
(CNY/share) Share (CNY/share)
Net profit attributable to
ordinary shareholders of 0.08% 0.0040 0.0040
the Company
Net profit attributable to
ordinary shareholders of
the Company after -1.44% -0.08 -0.08
deduction of non-
recurring profit and loss
(1) Differences in net profits and net assets in the financial report disclosed simultaneously according to
the international accounting standards and China accounting standards
□Applicable ?Not applicable
(2) Differences in net profits and net assets in the financial report disclosed simultaneously according to
foreign accounting standards and China accounting standards
□Applicable ?Not applicable
(3) Explanation of the reasons for accounting data differences under domestic and foreign accounting
standards shall be given, and where data audited by an overseas audit authority has been adjusted based
on the differences, the name of the overseas institution shall be indicated.
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Section IX Other Submitted Data
I. Other Significant Social Safety Issues
Whether the listed company and its subsidiaries have other significant social safety issues
□Yes ?No □Not applicable
Whether the Company was subject to administrative penalties during the reporting period
□Yes ?No □Not applicable
II. Reception, Investigation, Communication, Interview and Other Activities in the
Reporting Period Registration Form
?Applicable □Not applicable
Main
Index of
Contents of
Type of Basic
Reception Reception Reception Discussion
Receptio Reception Object Information
Time Location Mode and
n Object of
Information
Investigation
Provided
Operation
and
ChinaAMC, development
Huatai Securities, planning of
January 8, Meeting room Field Organiza
PSBC, Huashang the
Fund, PICC, Company, no
Penghua Fund relevant
http://www.c
information
ninfo.com.cn
is provided
/new/disclosu
Jt Asset
re/stock?stoc
Management Co.,
kCode=0008
Ltd., China Life Operation
Pension Company and
sz0000800&s
Limited., Jilin development
jstsBond=fals
Changbai planning of
March 31, Beijing meeting Field e#research
Others Mountain Private the
Fund Management Company, no
Co., Ltd., relevant
SHANGHAI information
KANDAO is provided
ASSETS
MANAGEMENT,
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
Northeast
Securities Co.,
Ltd., Soochow
Securities Co.,
Ltd., Dongxing
Securities
Corporation
Limited, Nanjing
Guohai Auto Parts
Co., Ltd., Sinolink
Securities Co.,
Ltd., Haitong
Securities Co.,
Ltd., Hengtai
Securities
Co.,Ltd., Huaan
Securities Co.,
Ltd., Huachuang
Securities
Co.,Ltd., Huatai
Securities Co.,
Ltd., Lianchu
Securities Co.,
Ltd., Western
Securities Co.,
Ltd., Southwest
Securities Co.,
Ltd., China
International
Capital
Corporation
Limited (CICC),
China Securities
Co., Ltd. and
CITIC Securities
Company Limited
Operation
P5w Net
Investors and
“Investor Network
participating in development
Relations platform for
April 14, FAW Jiefang 2024 planning of
Interactive online Others
Platform” communicati
Performance Company, no
（https://ir.p5w. on
Presentation relevant
net）
information
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
is provided
Operation
Investors
P5w Net and
participating in the
“Investor Network development
Online Collective
Relations platform for planning of
May 27, Performance
Interactive online Others the
Platform” communicati Company, no
Listed Companies
（https://ir.p5w. on relevant
within the
net） information
Jurisdiction of Jilin
is provided
III. Funds Transactions Between the Listed Company and Its Controlling Shareholders and
Other Related Parties
?Applicable □Not applicable
Unit: CNY 10,000
Amount Amount of
Opening Incurred in the repayments in Ending Interest Interest
Name Nature
balance reporting the reporting balance income expense
period period
First Automobile Operating
Finance Co., Ltd. transactions
China FAW
Operating
Group Import & 587,007.00 44,939.48 9,854.24 622,092.24
transactions
Export Co., Ltd.
FAW-HONGTA
Yunnan Operating
Automobile Co., transactions
Ltd.
FAW Mold
Operating
Manufacturing 3,848.78 3,848.78
transactions
Co., Ltd.
China FAW Operating
Group Co., Ltd. transactions
FAW Asset
Operating
Management Co., 553.55 504.80 48.75
transactions
Ltd.
FAW Harbin
Light- Operating
Automobile Co., transactions
Ltd.
FAW Logistics Operating
Co., Ltd. transactions
Qiming
Information Operating
Technology Co., transactions
Ltd.
China FAW Co., Operating
Ltd. transactions
FAW Forging Operating
(Jilin) Co., Ltd. transactions
FAW Logistics Operating 0.21 0.03 0.18
Full Text of Semi-annual Report 2025 of FAW Jiefang Group Co., Ltd.
(Changchun transactions
Lushun) Storage
and
Transportation
Co., Ltd.
Hainan Tropical
Operating
Automobile Test 2.50 2.50
transactions
Co., Ltd.
Sanguard
Automobile Operating
Insurance Co., transactions
Ltd.
Changchun
Operating
Automotive Test 93.36 93.36
transactions
Center Co., Ltd.
FAW Equity
Investment Operating
(Tianjin) Co., transactions
Ltd.
Total -- 1,501,079.78 21,124,422.38 21,125,334.74 1,503,978.07 3,810.65
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