江铃B:2019年半年度报告(英文版)

Jiangling Motors Corporation, Ltd.




     2019Half-year Report

               2019-043




                                 1
Chapter I     Important Notes, Contents and Abbreviations


Important Note
The Board of Directors and its members, the Supervisory Board and its
members, and the senior executives are jointly and severally liable for the
truthfulness, accuracy and completeness of the information disclosed in the
report and confirm that the information disclosed herein does not contain any
false statement, misrepresentation or major omission.

Chairman Qiu Tiangao, CFO Li Weihua and Chief of Finance Department, Xie
Wanzhao, confirm that the Financial Statements in this Half-year Report are
truthful, accurate and complete.

Director David Johnston did not attend this meeting, and he authorized Vice
Chairman Anning Chen to represent him at this meeting, and all the other
Directors were present at the Board meeting in person.

Neither cash dividend nor stock dividend was distributed. The Board decided
not to convert capital reserve to share capital this time.

All financial data in this report are prepared under International Financial
Reporting Standards (‘IFRS’) unless otherwise specified.

The Half-year Report is prepared in Chinese and English. In case of
discrepancy, the Chinese version will prevail.




                                                                         2
                                       Contents
Chapter I      Important Notes, Contents and Abbreviations ................................ 2
Chapter II     Brief Introduction ............................................................................ 4
Chapter V      Major Events ................................................................................ 13
Chapter VI     Share Capital Changes & Shareholders ...................................... 19
Chapter VII    Preferred Shares.......................................................................... 23
Chapter VIII   Directors, Supervisors and Senior Management ......................... 24
Chapter IX     Company Bond ............................................................................ 25
Chapter X      Financial Statements ................................................................... 26
Chapter XI     Catalogue on Documents for Reference ...................................... 91

Abbreviations:
JMC, or the Company                      Jiangling Motors Corporation, Ltd.
JHC                                      Jiangling Motor Holdings Co., Ltd.
Ford                                     Ford Motor Company
CSRC                                     China Securities Regulatory Commission
JMCG                                     Jiangling Motors Company (Group)
JMCH                                     JMC Heavy Duty Vehicle Co., Ltd.
EVP                                      Executive Vice President
CFO                                      Chief Financial Officer
VP                                       Vice President




                                                                                                   3
Chapter II       Brief Introduction

1. Company’s information
Share’s name        Jiangling Motors, Jiangling B Share’s Code   000550, 200550
Place of listing     Shenzhen Stock Exchange
Company’s Chinese
                     江铃汽车股份有限公司
name
English name         Jiangling Motors Corporation, Ltd.
Abbreviation         JMC
Company legal
                     Qiu Tiangao
representative

2. Contact person and method
                                                                  Securities Affairs
                                    Board Secretary
                                                                   Representative
Name                         Wan Hong                      Quan Shi
                             No. 509, Northern Yingbin     No. 509, Northern Yingbin
Address                      Avenue, Nanchang City,        Avenue, Nanchang City,
                             Jiangxi Province, P.R.C       Jiangxi Province, P.R.C
Tel                          86-791-85266178               86-791-85266178
Fax                          86-791-85232839               86-791-85232839
E-mail                       relations@jmc.com.cn          relations@jmc.com.cn

3. Other
I. Contact methods
Changes of registered address, headquarter address, postal code, website
and e-mail
□Applicable √Not Applicable
There is no change of registered address, headquarter address, postal code,
website and e-mail. Please refer to 2018 Annual Report for details.

II. Newspapers for information disclosure, website for publication of JMC’s
half-year report and place for achieving half-year report
□Applicable √Not Applicable
There is no change of newspapers for information disclosure, website
designated by CSRC for publication of JMC’s Half-year Report and place for
achieving Half-year Report. Please refer to 2018 Annual Report for details.




                                                                        4
    4. Main accounting data and financial ratios
                                                                       Unit: RMB ‘000
                             Reporting period       Same period
                             (2019 first half)        last year            Change (%)

Revenue                             13,721,954          14,287,497                     -3.96
Profit Attributable to the
Equity Holders of the                   58,862              318,951                   -81.55
Company
Net Cash Generated
                                     1,435,202             -906,818                   258.27
From Operating Activities
Basic Earnings Per Share
                                           0.07                0.37                   -81.55
(RMB)
Diluted Earnings Per
                                           0.07                0.37                   -81.55
Share (RMB)
Weighted Average Return                                                       Down 2.15
                                         0.57%               2.72%
on Equity Ratio                                                         percentage points
                               At the end of       At the end of the
                             reporting period       previous year          Change (%)

Total Assets                        23,668,970          23,396,529                       1.16

Shareholders’ Equity
Attributable to the Equity          10,408,831          10,384,498                       0.23
Holders of the Company

    5. Accounting data difference between domestic and foreign accounting
    standards

    I. Differences in net profit and net assets disclosed respectively per IFRS and
    PRC GAAP.
    □Applicable √Not Applicable
    There is no difference between IFRS and PRC GAAP in net profit and net
    assets.

    II. Differences in net profit and net assets disclosed respectively per GAAP
    and PRC GAAP.
    □Applicable √Not Applicable
    There is no difference between GAAP and PRC GAAP in net profit and net
    assets.




                                                                                  5
Chapter III         Operating Overview

1. Company’s Core Business during the Reporting Period

JMC’s core business is production and sales of commercial vehicles, SUV
and related components. JMC’s major products include JMC series light truck,
heavy truck, pickup and light bus; Yusheng SUV; Ford-brand light bus, MPV
and SUV. The Company also produces and sells engines, castings and other
components for sales to domestic and overseas markets.

2. Major Change of Main Assets

I. Major Change of Main Assets

There’s no major change of main assets during the reporting period.

II. Main Overseas Assets
□Applicable □√Not Applicable

3. Core Competitiveness Analysis

JMC is a sino-foreign joint venture auto company with R&D, manufacturing
and sales operations. With leading position and advanced technology of
commercial vehicles, JMC is China auto industry pioneer providing excellent
products and solutions to smart logistics, which is certificated as a national
high-tech enterprise, national innovative pilot enterprise, national enterprise
technology centre, national industrial design centre, national intellectual
property demonstration enterprises, advanced quality management enterprise
and national automobile export base; and had been ranked among the top
100 most valuable global brands for consecutive years.

JMC insists on the guide of strategy, focuses on strengthening the strategy
implementation: during the reporting period, the company developed “2025
Strategy” which identified the new vision of JMC, committed to become the
industry leader of light commercial vehicle and provider of Ford products with
excellent cost performance. Commercial vehicle is positioned on city/main line
logistics products and suppliers of comprehensive service scheme. Achieve
breakthrough and great development on small/middle passenger vehicle
segment.

Centered on innovation and service, promoting structural renovation: JMC
adheres to the road of scientific/technological and management innovation.
During the reporting period, the company continued vigorous implementation
of product innovation to drive development, integrate resources, strengthen
technological innovation, promote market-oriented product innovation; deepen
transformation and adjustment, adhere to business model innovation; develop
systematic cost reduction strategies, focus on promoting the transformation of
organization and efficiency, and comprehensively enhance the core
competitiveness of products.



                                                                           6
Focusing on advantageous business and create product leadership: JMC
focuses on the core business, concentrates intensive cultivation on each
segment, insists on customer-centered, improve the market awareness of the
whole value chain, so as to actively makes the company's products the
leaders of each segment.

Collaborative integration of the industrial system, positive layout of “ASEC”:
aiming at the new trends in the development of the automotive industry, JMC
promotes the implementation of the "ASEC" development strategy of
"autonomous driving, sharing, electrification, connectivity". The company has
developed layout in the core areas such as new energy vehicles, smart
connectivity, and autonomous driving to accelerate the construction of a
future-oriented and globally competitive business ecosystem through the
overall collaboration and integration of “ASEC”.




                                                                           7
       Chapter IV            Management Discussion and Analysis

       1. Summary

       In 2019, China's economy has maintained a trend of overall stable and
       progressive development. The main macroeconomic indicators reflected the
       operation in a reasonable range, and the economic structure is constantly
       being optimized and adjusted. Total sales volume was 12.32 million units,
       decreased 12.40% compared with last year.

       During the reporting period, to cope with more severe competition, more
       stringent regulatory requirement and intensifying cost pressures, the
       Company focused on quality improvement, new product development,
       operating cost control and production efficiency enhancement. Simultaneously,
       the Company introduced series of sales policy to respond the market risk. In
       the first half of 2019, JMC achieved sales volume of 136,643 units, decreased
       7.27% compared with last year, achieved revenue of RMB 13.72 billion,
       decreased 3.96% compared with last year, achieved net profit of RMB 59
       million, decreased 81.55% compared with last year. It mainly reflects: I. the
       volume decrease of passenger vehicle in the interim period and the change of
       overall sales structure; II. Marketing expense increased to compete in the very
       challenging market. III. Continued spending on new product and technology.

       2. Core Business Analysis

       Year-over-Year Changes of Main Financial Data

                                                                      Unit: RMB ’000
                                                            YOY change
                                2019 1H       2018 1H                              Reason
                                                              (%)
Revenue                         13,721,954     14,287,497        -3.96%
Cost of sales                   11,683,969     12,277,724        -4.84%
                                                                          Due to the marketing
Distribution costs                 705,875       452,934         55.85%   expense increase for
                                                                          Territory launch.
                                                                          Due to Territory
Administrative expenses          1,274,585      1,138,530        11.95%   trademark royalty and
                                                                          labour economic.
Finance Income-net                  90,141       103,392        -12.82%
Income                                                                    Due to operating loss.
                                    -46,302       27,404       -268.96%
tax expense
Research and Development
                                   914,829       820,752         11.46%
Expenditure
Net cash generated from                                                   Due to payment of the
                                 1,435,202       -906,818       258.27%
operating activities                                                      goods decrease.
                                                                          Due to cash payment
Net cash used in investing
                                   -684,405      -442,747       -54.58%   increase for fixed assets
activities
                                                                          purchase.
                                                                          Due to the 2017 mid-term
Net cash used in financing
                                      -220     -2,000,548        99.99%   special dividend paid in
activities
                                                                          2018 Q1.



                                                                                   8
                                                                                  Due to increase of net
                                                                                  cash generated from
Net increase/(decrease)     in
                                      750,577        -3,350,113         122.40%   operating activities and
cash and cash equivalents
                                                                                  the 2017 mid-term special
                                                                                  dividend paid in 2018 Q1.

        Composition of Core Business

                                                                               Unit: RMB ’000
                                                                                             Y-O-Y
                                                                    Y-O-Y
                                                                             Y-O-Y Cost      gross
                                                      Gross       turnover
                     Turnover           Cost                                  Change        margin
                                                      Margin       change
                                                                                (%)         change
                                                                     (%)
                                                                                            (points)
By Industry

Automobile            13,540,007        11,511,538     14.98%       -4.36%        -5.32%         0.86%
Industry
By Products

Vehicle               12,327,573        10,656,459     13.56%       -3.34%        -4.31%         0.88%

By Region

China                 13,540,007        11,511,538     14.98%       -4.36%        -5.32%         0.86%


        3. Non- core business analysis
        □√Applicable □Not Applicable
                                                                               Unit: RMB ’000
                                                                                               Sustainability
              Item                 Amount        Proportion           Explanation
                                                                                                 (Y/N)
                                                             Government incentives to
  Non-operating
                                       158,387    1,261.10% support   the Company’s                   Y
  Revenue
                                                             development
                                                             financial investment such
  Investment return                     13,841       110.20%
                                                             as structural deposits




                                                                                           9
 4. Analysis of Assets and Liabilities
 I. Major changes
                                                                               Unit: RMB ’000
                                                                                        YOY
                                     June 30, 2019            December 31, 2018
           Asset item                                                                 Proportion
                                                                                       change
                                   Amount     Proportion     Amount      Proportion    (Points)
 Property, plant and
                                  7,118,181        30.07%    6,941,292       29.67%         0.40
 equipment
 Inventories                      2,173,276         9.18%    2,522,354       10.78%        -1.60
 Trade, other receivables
                                  4,054,726        17.13%    4,678,284       20.00%        -2.87
 and prepayments
 Cash and cash equivalents        8,367,457        35.35%    7,616,880       32.56%         2.79
 Trade and other payables        12,454,392        52.62%   12,195,966       52.13%         0.49

 II. The fair value of the assets and liabilities (not applicable).

 III. Restriction on Assets Rights as of the End of the Reporting Period
 There was no major restriction on assets rights as of the end of the reporting
 period.

 5. Investment
 I. Summary
 □Applicable □√Not Applicable

 II. Obtained Major Equity Investment during the Reporting Period
 □Applicable □√Not Applicable

 III. Ongoing Major Non-Equity Investment during the Reporting Period
 □√Applicable □Not Applicable
             Investment   Fixed
               Method/    Assets     Spending in     Investment
 Project
               source      (Y/N)        2019         Committed    Progress               Index
 Name
                                     (RMB Mils)      (RMB Mils)

                                                                               Announcement of this
Fushan                                                                         project (NO:2017-044) was
            Self-funded      Y                338           710       34.60%
Site                                                                           published in the website
                                                                               http://www.cninfo.com.cn
Total                                         338           710           --               --


 IV. Financial Assets Investment
 (a) Stock Investment
 □Applicable □√Not Applicable

 (b) Derivative Investment
 □Applicable □√Not Applicable

 6. Sales of Major Assets and Equity


                                                                                          10
              I. Sale of Major Assets
              □Applicable □√Not Applicable

              II. Sales of Major Equity
              □Applicable □√Not Applicable

              7. Operating Results of Main Subsidiaries and Joint-Stock Companies whose
              impact on JMC’s net profit more than 10%
                                                                           Unit: RMB ’000
  Name of     Type of                         Registered                Net                    Operating
                           Main Business                    Assets                Turnover                 Net Profit
Companies    Companies                         Capital                 Assets                   Profit
Jiangling
Motors                    Sale of vehicles,
             Subsidiary                           50,000   3,114,101    61,660    12,496,605    -250,459    -187,934
Sales Co.,                service parts
Ltd.
                          Production and
                          sale of heavy
JMC Heavy                 commercial
Duty                      vehicles,
             Subsidiary                          281,793   2,812,829   -821,670     145,829     -153,738    -145,814
Vehicle                   engines,
Co., Ltd.                 components,
                          and related
                          service

              Acquisition and disposal of the subsidiary
              □Applicable □√Not Applicable

              8. Structured Entities Controlled by JMC
              □Applicable □√Not Applicable

              9.Business performance prediction in 1-9, 2019
              □ Applicable √ Not Applicable

              10. Potential Challenges and Solutions

              In 2019, the Company will continue to face fiercer competition, more stringent
              regulatory requirements, intensifying cost pressures and a slowdown in
              China’s economic growth. To achieve steady growth, the Company will
              continue to focus on the following aspects in 2019:

              (1) Insight customer demand and improve channel capability to realize the
                  customer-centered business growth;
              (2) Accelerating product platformization, redefine product portfolio, enrich line
                  up and net connectivity configuration to better satisfy customer demand;
              (3) Optimizing company’s production system to improve efficiency and
                  product quality ;
              (4) Improve suppliers’ capability and parts quality; continue to reduce parts
                  purchasing cost ;
              (5) Sustaining the expense management and control to optimize the business
                  structure;




                                                                                                 11
(6) Establish highly capable and efficient organization through the current
    process optimization team to flexibly respond to the market change;
(7) Strengthening corporate governance and application of appropriate risk
    assessment and control mechanisms.

The Company will focus on light commercial vehicle with the support of SUV,
maximize its own advantage and fully take advantage of shareholders
resource to realize sustainable profit. Strengthen channel coverage, improve
financing service ability; promote new products development and R&D ability
improvement, to accelerate the progress of launching new competitive
products to the market; develop more proactive cost reduction plan to improve
the company’s profit ability. Guided by the new strategy, the company will
continuously implement all the specific initiatives to accelerate the strategic
target achievement.




                                                                           12
Chapter V Major Events

1. Annual and special shareholders’ meeting
I. Shareholders’ meeting during the reporting period
                                     Investors
                                                                  Announcement
Number           Name               Attending      Meeting Date                  Announcement Index
                                                                      Date
                                  Percentage (%)
                                                                            Number 2019-007,
         2019 First Special
   1                                     77.45% Feb 20, 2019                published on the website
                                                                  Feb 21, 2019
         Shareholders’ Meeting
                                                                            www.cninfo.com.cn.
                                                                            Number 2019-032,
         2018 Annual
   2                                     76.86% June 28, 2019 June 29, 2019 published on the website
         Shareholders’ Meeting
                                                                            www.cninfo.com.cn.

II. Share holders who hold vote right restored preferred shares apply to hold a
special shareholders’ meeting
□Applicable √Not Applicable

2. Proposal on profit distribution and converting capital reserve to share
capital for the reporting period
□Applicable √Not Applicable
The Company planned that neither cash dividend nor stock dividend was
distributed, and not to convert capital reserve to share capital for the first half
of 2019.

3. Commitments of actual controlling parties, shareholders, related parties,
acquirers and the Company finished in the reporting period or overdue
unfinished by the end of the reporting period
□Applicable √Not Applicable
There is no commitments of actual controlling parties, shareholders, related
parties, acquirers and the Company finished in the reporting period or
overdue unfinished by the end of the reporting period.

4. Appointment or dismissal of accounting firm
Whether the 2019 half-year report is audited?
□Yes √No
JMC 2019 half-year report is not audited.

5. Explanation of the board of directors, the supervisory board to abnormal
opinions from accounting firm for the reporting period
□Applicable √Not Applicable

6. Explanation of the board of directors to abnormal opinions from accounting
firm in 2018
□Applicable √Not Applicable

7. Related matters regarding bankruptcy
□Applicable √Not Applicable
The Company did not go bankrupt during the reporting period.

8. Litigation or arbitration


                                                                                    13
Significant litigation or arbitration
□Applicable √Not Applicable
There is no significant litigation or arbitration in the reporting period.

Other litigation
□Applicable √Not Applicable

9. Punishment
□Applicable √Not Applicable
The Company have not been punished by regulatory authorities.

10. Honesty and credit of JMC and its controlling shareholder or actual
controlling party
□Applicable √Not Applicable

11. Implementation of equity incentive plan, employee stock ownership plan
and other employee incentive method
□Applicable √Not Applicable

12. Major related transactions
I. Routine operation related party transactions
 Please refer to the note 31 “Related party Transactions” to the financial
statements for details.

II. Major related party transaction concerning transfer of assets or equity
□Applicable √Not Applicable
There was no major related party transaction concerning transfer of assets or
equity during the reporting period.

III. Related party transaction concerning outside co-investment
□Applicable √Not Applicable
There was no outside co-investment during the reporting period.

IV. Related credit and debt
√Applicable □Not Applicable
Is there non-operating related credit and debt?
□Yes √No
The Company had no non-operating related credit and debt during the
reporting period.

V. Other major related party transactions
□Applicable √Not Applicable

Please refer to the note 31 “Related party Transactions” to the financial
statements for details.




                                                                               14
Index for the Announcement of Major related party transactions:
         Announcement Title          Announcement Disclosure Date    Website for Disclosure
Jiangling Motors Corporation, Ltd.
Public Announcement on Forecast of
                                            March 28, 2019          http://www.cninfo.com.cn
the Routine Related Party
Transactions in 2019

13. Non-operating funding in the Company occupied by controlling
shareholder and its affiliates
□Applicable √Not Applicable
There was no non-operating funding in the Company occupied by controlling
shareholder and its affiliates during the reporting period.

14. Major contracts and execution
I. Entrustment, contract or lease
a. Entrustment
□Applicable √Not Applicable
There was no entrustment during the reporting period.

b. Contract
□Applicable √Not Applicable
There was no contract during the reporting period.

c. Lease
√Applicable □Not Applicable
See the note 31(b) to financial statements for lease of related parties.

Project earns more than 10% of net profit.
□Applicable √Not Applicable

Project deficits more than 10% of net profit.
□Applicable √Not Applicable

II Major guarantee
□Applicable √Not Applicable
The Company had no outside guarantee during the reporting period.

III. Other important contracts
□Applicable √Not Applicable
There was no other important contract during the reporting period.

15. Corporation social responsibilities

I. Environmental protection
Whether the Company and affiliates is the key pollution discharge unit
published by environmental protection administration?
√Yes □No




                                                                                 15
                         Emission                                                                                   Emission      Meet
   Main       Emission              Emission Outlet         Emission                                    Emission
                          Outlet                                              Emission Standard                     Standard    Standard
 Pollutants    Ways                  Distribution         Concentration                                 Amount
                         Number                                                                                     Amount       or Not
                                    3 in Mainsite, 1
                                                                             “Wastewater                COD:
Wastewater                          in Xiaolan Site,
(COD, NH- continuous                                 "COD:128.8mg/L          Discharge                  47.862t,   COD≤841.2t, Meet
                            6       1 in Cast Plant
N)         discharge                                  NH-N:12mg/L"           Standard”(GB 8978-         NH-N :    NH-N≤21.72t Standard
                                    and 1 in Axle
                                                                             1996)                       2.635t
                                    Plant
Exhaust
gas (SO2,                                              SO2: 44mg/m3, NOx :   "The Emission
                                    51 in Mainsite,
NOx,                                                   187mg/m3, solid:      Standard of Air             SO2:
                                    58 in Xiaolan
smoke,      continuous                                 63.7mg/m3, toluol :   Pollutants”,” Emission   9.856t,    SO2≤93.01t, Meet
                           148      Site, 33 in Cast
toluol,     discharge                                  1.83mg/m3,            Standard of Air             NOx :     NOx≤60.91t Standard
                                    Plant and 6 in
dimethylben                                            dimethylbenzene:      Pollutants for Boiler”    15.307t
                                    Axle Plant
zene,                                                  3.22mg/m3 .           (GB 13271-2014)
NMHC)


                 The construction and operation of environmental protection facilities
                 Since 2006, JMC has invested more than RMB 30 million to construct seven
                 wastewater treatment stations (including the wastewater treatment station in
                 the east plant area and Xiaolan wastewater treatment station), with the
                 treatment capacity as high as 9,000t/d. The treated wastewater reached the
                 national discharge standard. In 2019, the Company invested RMB 870
                 thousand to upgrade the wastewater treatment process of the wastewater
                 treatment station in Axle Plant, and enhance the treatment capacity to ensure
                 the treated wastewater will reach the national discharge standard.
                 .
                 For up-to-standard emission of waste gases, JMC has taken new control
                 measures over the years. In 2012, the Company invested RMB 10 million to
                 reconstruct the cupola furnace in the casting plant. In 2013, Xiaolan Branch
                 invested RMB 14 million to install a TNV waste gas incinerator. In 2014, JMC
                 invested RMB 14.6 million to construct the boiler coal-gas-switch project in the
                 south district. In 2017, the casting plant reconstructed the ventilation & dust
                 removal system for the smelting furnace in the large-size and middle & small-
                 sized parts workshop, and installed efficient environmental-friendly dust
                 removal equipment, effectively reducing the environmental pollution by dust.
                 From 2018 to 2019, the casting plant add electric furnace dust collectors in
                 the large-size part workshop, and reconstruct the sand shakeout & dust
                 removal system for KW moulding line, reducing the environmental pollution.

                 For noise reduction, JMC took different measures to reduce the environmental
                 impact, such as increase of protective sound-proof doors & windows,
                 establishment of noise enclosure for air blower, installation of muffler and
                 transformation of sound-proof doors & windows. All these measures can
                 make sure up-to-standard discharge of noise at the plant boundary.

                 In the process of waste management, JMC managed from the source, and
                 divided the generation of wastes. JMC established a temporary storage yard
                 for solid wastes. Warning graphic symbols have been posted at the temporary
                 storage site of hazardous wastes. Besides, signboards have been provided as
                 well, so as to remind the passer-by of probable hazards in the storage



                                                                                                                    16
process of hazardous wastes. In 2017, JMC invested RMB500 thousand to
extend Xiaolan storage yard for solid wastes. In 2018 JMC has renovated the
engine plant garbage station. In 2019, the Company plans to invest RMB600
thousand to extend Xiaolan Dangerous Waste Station. At the same time,
Qingyunpu plant actively adopt waste reduction measures and invested RMB
110 thousand to purchase primer robot waste solvent recycling device in 2019.

EIA on construction project and other administrative permits for
environmental protection
The Company strictly implements the construction project environmental
impact assessment system. With respect to new construction, expansion and
reconstruction, JMC comprehensively planned environmental protection and
evaluated the “Three Simultaneities”. From the source of design, JMC carried
out the philosophy of energy saving and low carbon all the time. The
Company carries on the environmental monitoring every year according to the
requirements, ensures the pollutant discharge meeting the requirements of
discharge permit, formulates the stricter internal control target, and strives to
reduce the impact of environmental pollution to the minimum. In 2019, the
Company obtained the environmental assessment approval of the vehicle
production expansion project, the new collision simulation laboratory project
and the project of expanding the capacity of 300 thousand vehicle parts and
components per year (Phase II).

Emergency plan on emergency environmental incidents
In order to dilute or prevent environmental risks, JMC established an
emergency preparation and response procedure and specific environmental
emergency plans which were submitted to the Environmental Protection
Bureau for the record,so as to formulate corresponding control methods for
potential accidents and emergences occurred or that may probably occur.
JMC organized emergency drills every year to ensure the efficiency of
emergency plan.

 Environmental self-monitoring scheme
In 2019, JMC’s Qingyunpu Main Plant Area (the “Plant Area”) was listed as a
key pollutant discharging organization of wastewater/hazardous wastes. The
Plant Area monitored by itself in strict accordance with the Method for Self-
monitoring and Information Disclosure of State Key Monitoring Enterprises
(Trial). Its self-monitoring schemes, monitoring results and annual monitoring
reports on pollution sources were disclosed on the “pollution source self-
monitoring reporting platform of Jiangxi Province”.

Other information related to environmental protection
JMC paid high attention to environmental protection and pollution source
control, taking resource saving and cost reduction as the primary task.
Moreover, the Company also took full advantage of 6sigma, and controlled
from the source, so as to achieve the effect of environmental improvement. In
the new expansion and reconstruction projects, JMC laid emphasis on
improving the environmental performance, strictly implemented the system of
“Three Simultaneities”, transacted the EIA procedure according to national
standards, stipulated the preventive and control measures for environmental
pollution, and reported to competent administrative departments on
environmental protection for approval.


                                                                            17
II. One-to-one poverty alleviation
a. Plan on one-to-one poverty alleviation
The Company joined the one-to-one poverty alleviation, depending on JMCG,
in Qianmo Village, Dai Jiapu Township, Suichuang County, Jiangxi Province
and Xianting Village, Songhu Town, Xinjian District, Nanchang City in
accordance with the working arrangement of Jiangxi Provincial Party
Committee and Provincial Government. The overall goal is: to help the poor
village to achieve a well-off standard of living before 2020 by cooperating with
the local government.

b. Summary of one-to-one poverty alleviation in the first half
The Company regards the realization of precision poverty relief as the basic
strategy of precision poverty alleviation. The Company continued to
consolidate efforts of one-to-one poverty alleviation in the first half of 2019.

c. Status of targeted measures in poverty alleviation
                             Item                          Unit        Amount/Progress
I. Brief Introduction                                      ——                    ——
     including:1. Funding                               RMB (‘000)              828.9
                2. Sum converted from the materials      RMB (‘000)                19.6
II. Investments                                            ——                    ——
     1. Anti-poverty depending on industry development     ——                    ——
     2. Anti-poverty depending on employment transfer      ——                    ——
     3. Anti-poverty depending on relocation               ——                    ——
     4. Anti-poverty depending on education                ——                    ——
     including:4.1 Grants in aid to poor students       RMB (‘000)              806.9
     5. Health Anti-poverty                                ——                    ——
     6. Ecological protection anti-poverty                 ——                    ——
     7. Miscellaneous provisions                           ——                    ——
     including:7.1 Investments on stay-at-home
                                                         RMB (’000)                41.6
                    children, women and elderly
     8. Social anti-poverty                                 ——                   ——
     9. Other                                               ——                   ——
III. Awards                                                 ——                   ——

16. Other major events
√Applicable □Not Applicable
JMC received government incentives about RMB 260 million appropriated by
Nanchang County Xiaolan Economic& Technological Development Zone,
Nanchang City Wanli District and Shanxi Comprehensive Reform
Demonstration Zone during the reporting period, which is to support JMC’s
development.

17. Major event of JMC subsidiary
□Applicable √Not Applicable




                                                                                   18
                 Chapter VI Share Capital Changes & Shareholders

                 1. Changes of Shareholding Structure
                 I. Changes of shareholding structure
                           Before the change                                Change (+, -)                                  After the change
                                         Proportion                         Reserve-                                                  Proportion
                                                           New     Bonus
                          Shares           of total                         converted       Others       Subtotal        Shares         of total
                                                          shares   Shares
                                         shares (%)                          shares                                                   shares (%)
I. Limited tradable A
                            786,840          0.09%             -        -           -          100            100          786,940        0.09%
   shares
1. Other domestic
                            786,840          0.09%             -        -           -          100            100          786,940        0.09%
   shares
Including:
Domestic legal
                            785,940          0.09%             -        -           -       -36,000       -36,000          749,940        0.09%
  person shares
Domestic natural
                                   900                -        -        -           -        36,100        36,100           37,000             -
  person shares
II. Unlimited tradable
                         862,427,160        99.91%             -        -           -          -100          -100       862,427,060      99.91%
    shares
1. A shares              518,307,145        60.06%             -        -           -          -100          -100       518,427,160      60.06%
2. B shares              344,000,000        39.85%             -        -           -                -              -   344,000,000      39.85%
III. Total               863,214,000       100.00%             -        -           -                -              -   863,214,000     100.00%


                 Causes of shareholding changes
                 √Applicable □Not Applicable

                 During the past three years as of June 30, 2019, the Company did not issue
                 shares and derivative securities. JMC’s total number of shares remained
                 unchanged. The change in shareholding structure was caused by the limited
                 A shares of 36,000 shares held by Shenzhen Airport Terminal Building Co.,
                 Ltd. were transferred to nature person shareholders in 2019.

                 Approval of changes of shareholding structure
                 □Applicable √Not Applicable

                 Shares transfer
                 □Applicable √Not Applicable

                 Impact on accounting data, such as the latest EPS, diluted EPS, shareholders’
                 equity attributable to the equity holders of the Company, generated from
                 shares changes
                 □Applicable √Not Applicable

                 Others to be disclosed necessarily or per the requirements of securities
                 regulator
                 □Applicable √Not Applicable

                 II. Changes of limited tradable shares
                 □Applicable √Not Applicable




                                                                                                                            19
            2. Securities issuance and listing
            □Applicable √Not Applicable

            3. Shareholders and shareholding status

Total shareholders (as of   JMC had 20,943 shareholders, including 15,772 A-share holders, and 5,171 B-share
June 30, 2018)              holders.
Top ten shareholders
                                                                                                            Shares
                                             Shareholding      Shares at                   Shares with
                             Shareholder                                     Change                         due to
    Shareholder Name                          Percentage      the End of                    Trading
                                Type                                          (+,-)                        mortgage
                                                 (%)             Year                      Restriction
                                                                                                           or frozen
Jiangling Motor Holdings    State-owned
                                                    41.03    354,176,000              0                0           0
Co., Ltd.                   legal person
                            Foreign legal
Ford Motor Company                                  32.00    276,228,394              0                0           0
                            person
China Securities
                            Other                     2.72    23,458,066              0                0           0
Corporation Limited
Shanghai Automotive Co.,    State-owned
                                                      1.51    13,019,610              0                0           0
Ltd.                        Legal person
Harvest Environmental
Protection Low Carbon       Other                     0.98     8,465,988       277,005                 0           0
Stock Investment Fund
Central Huijin Investment   State-owned
                                                      0.83     7,186,600              0                0           0
Ltd.                        legal person
JPMBLSA RE FTIF
                            Foreign legal
TEMPLETON CHINA                                       0.68     5,848,450              0                0           0
                            person
FUND GTI 5497
                            Foreign legal
GAOLING FUND, L.P.                                    0.63     5,453,086              0                0           0
                            person
National Social Security
                              Other                    0.61     5,250,455     5,250,455                0           0
Fund 504 Portfolio
INVESCO FUNDS                 Foreign legal
                                                       0.58     5,035,746              0               0           0
SICAV                         person
Notes on association among above-mentioned shareholders None.
  Top ten shareholders holding unlimited tradable shares
             Shareholder Name                      Shares without Trading Restriction            Share Type
Jiangling Motor Holdings Co., Ltd.                                          354,176,000           A share
Ford Motor Company                                                          276,228,394           B share
China Securities Corporation Limited                                         23,458,066           A share
Shanghai Automotive Co., Ltd.                                                13,019,610           A share
Harvest Environmental Protection Low
                                                                               8,465,988           A share
Carbon Stock Investment Fund
Central Huijin Investment Ltd.                                                 7,186,600           A share
JPMBLSA RE FTIF TEMPLETON CHINA
                                                                               5,848,450           B share
FUND GTI 5497
GAOLING FUND, L.P.                                                             5,453,086           B share
National Social Security Fund 504
                                                                               5,250,455           A share
Portfolio
TEMPLETON DRAGON FUND, INC.                                                    5,035,746           B share
Notes on association among above-             None.
mentioned shareholders




                                                                                                  20
Stock buy-back by top ten shareholders or top ten shareholders holding
unlimited tradable shares in the reporting period
□Yes √No
There is no stock buy-back by top ten shareholders or top ten shareholders
holding unlimited tradable shares in the reporting period.

4. Change of controlling shareholders or actual controlling parties
Change of controlling shareholders
□Applicable √Not Applicable
There was no change of controlling shareholders during the reporting period.

Change of actual controlling parties
□Applicable √Not Applicable
There was no change of actual controlling parties during the reporting period.

Subsequent events
Jiangling Motor Holdings Co., Ltd. (hereinafter referred to as “JHC”), a
controlling shareholder of Jiangling Motors Co., Ltd. (hereinafter referred to as
“JMC” or “the Company”), has been divided and separated into the new
company, Nanchang Jiangling Investment Co., Ltd. (hereinafter referred to as
“JIC”) and Jiangling Motor Holdings Co., Ltd. (as an existing company). After
the separation, JHC intends to divide its hold 41.03% equity of JMC into the
new company, JIC, and therefore, the controlling shareholder of JMC will be
changed from JHC to JIC, but actual controllers of JMC remains unchanged.

As of July 26, 2019, the 354,176,000 JMC shares, accounting for about 41.03%
of the total share capital of the Company, held by JHC, the former controlling
shareholder of the Company, have been transferred to JIC, and JHC no
longer held the shares of the Company. JIC holds 354,176.000 shares of the
Company, accounting for about 41.03% of the total share capital of the
Company, and becomes a controlling shareholder of the Company.

Shareholding relationship with JMC and the shareholders of JHC before and
after the separation are shown as follows:

    (1)Before the separation

   Chongqing Changan Automobile Co., Ltd.                     JMCG

                                         50%                  50%

                                               JHC

                                                     41.03%

                                             JMC




                                                                            21
 (2)After the separation

Chongqing Changan Automobile Co., Ltd.                  JMCG

                                    50%                    50%

                      Nanchang Jiangling Investment Co., Ltd.

                                                  41.03%

                                          JMC




                                                                 22
Chapter VII     Preferred Shares
□Applicable √Not Applicable
JMC have no preferred shares during the reporting period.




                                                            23
Chapter VIII     Directors, Supervisors and Senior Management
1. Changes of shares held by directors, supervisors and senior management
□Applicable √Not Applicable
There was no change of shares held by Directors, Supervisors and senior
management in the reporting period. Please refer to 2018 annual report for
details.

2. Changes of directors, supervisors and senior management
   √Applicable □Not Applicable

     Name          Position     Status          Date           Reason
Manto Wong        President   Appointed   March 1, 2019
Andy Ball         VP          Appointed   April 1, 2019
Luo Xiaofang      VP          Appointed   May 1, 2019
Manto Wong        Director    Elected     June 28, 2019
Jin Wenhui        Director    Elected     June 28, 2019
Milton Wong       VP          Appointed   July 1, 2019
Thomas Fann       President   Leave       March 1, 2019 Retirement.
Tim Slatter       VP          Leave       March 1, 2019 Work rotation.
Christian Chen    VP          Leave       May 1, 2019   Work rotation.
                                                        Resign from the vice
Andy Ball         VP          Leave       May 1, 2019   president position for
                                                        the personal reasons.




                                                                       24
Chapter IX        Company Bond
Whether the Company owns the corporate bond that is lists in the securities
exchange and undue or is not paid in full although it’s due.
□Yes √No




                                                                         25
Chapter X Financial Statements




JIANGLING MOTORS CORPORATION, LTD.

FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30
JUNE 2019




                                              26
JIANGLING MOTORS CORPORATION, LTD.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in thousands of RMB unless otherwise stated)

                                                                           Six Months Ended 30 June
                                                            Notes           2019#            2018#

Revenue from contracts with customers                         5             13,721,954           14,287,497
Taxes and surcharges                                                         (368,975)            (368,792)
Cost of sales                                                 6           (11,683,969)         (12,277,724)
Gross profit                                                                 1,669,010            1,640,981

Distribution costs                                            6               (705,875)           (452,934)
Administrative expenses                                       6             (1,274,585)         (1,138,530)
Net expected credit losses on financial assets              3.1(2)                 1,056               (918)
Net impairment losses on property, plant and equipment                           (3,126)            (3,607)
Other income                                                  8                 235,605            195,360
Operating (loss)/profit                                                        (77,915)            240,352

Finance income                                                9                 92,765             106,654
Finance costs                                                 9                 (2,624)             (3,262)
Finance income-net                                            9                 90,141             103,392

Share of profit of investments accounted for using the
  equity method                                              16b                   334                2,611
Profit before income tax                                                        12,560             346,355
Income tax credit/(expense)                                  10                 46,302             (27,404)
Profit for the period                                                           58,862             318,951

Profit attributable to:
Shareholders of the Company                                                      58,862            318,951

Total comprehensive income for the period                                       58,862             318,951

Total comprehensive income attributable to:
Shareholders of the Company                                                     58,862             318,951

Earnings per share for profit attributable to the
shareholders of the Company for the period
  (expressed in RMB per share)
- Basic and diluted                                           11                   0.07                 0.37

#Unaudited financial indexes
The notes on pages 32 to 90 are an integral part of these consolidated financial statements.




                                                                                                   27
JIANGLING MOTORS CORPORATION, LTD.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE SIX MONTHS ENDED 30 JUNE 2019
 (All amounts in thousands of RMB unless otherwise stated)

                                                                                 As at
                                                                                         31 December
                                                             Notes
                                                                     30 June 2019#           2018

ASSETS
Non-current assets
Property, plant and equipment                                 12         7,118,181           6,941,292
Lease prepayment                                              13           593,473             601,260
Intangible assets                                             14           288,412             246,026
Deferred income tax assets                                    17           789,091             743,096
Investments accounted for using the equity method            16b            40,446              40,112
Total non-current assets                                                 8,829,603           8,571,786

Current assets
Inventories                                                   18         2,173,276           2,522,354
Trade and other receivables and prepayments                   19         4,054,726           4,678,284
Derivative financial instruments                              3.3                -                 979
Financial assets at fair value through other
  comprehensive income                                        3.3          223,907               6,246
Cash and cash equivalents                                     20         8,367,457           7,616,880
Restricted cash                                                             20,001                   -
Total current assets                                                    14,839,367          14,824,743

Total assets                                                            23,668,970          23,396,529




                                                                                                28
JIANGLING MOTORS CORPORATION, LTD.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)
FOR THE SIX MONTHS ENDED 30 JUNE 2019
 (All amounts in thousands of RMB unless otherwise stated)

                                                                                     As at
                                                             Notes                           31 December
                                                                     30 June 2019#               2018

EQUITY
Share capital                                                 21           863,214                 863,214
Share premium                                                              816,609                 816,609
Other reserves                                                22           447,472                 447,472
Retained earnings                                                        8,281,536               8,257,203
Total equity                                                            10,408,831              10,384,498

LIABILITIES
Non-current liabilities
Contract liabilities                                           5           54,499                  38,382
Borrowings                                                    23            3,376                   3,595
Deferred income tax liabilities                               17           25,676                  26,024
Retirement benefit obligations                                24           60,777                  63,425
Provisions for statutory warranty                             25          166,251                 151,492
Other non-current liabilities                                              93,301                  60,160
Total non-current liabilities                                             403,880                 343,078

Current liabilities
Trade and other payables                                      26       12,454,356              12,195,966
Contract liabilities                                           5          188,911                 266,702
Current income tax liabilities                                                 72                     179
Borrowings                                                    23              450                     449
Derivative financial instruments                                            2,578                       -
Retirement benefit obligations                                24            4,595                   4,595
Provisions for statutory warranty                             25          205,297                 201,062
Total current liabilities                                              12,856,259              12,668,953

Total liabilities                                                      13,260,139              13,012,031

Total equity and liabilities                                           23,668,970              23,396,529

#Unaudited financial indexes
The notes on pages 32 to 90 are an integral part of these consolidated financial statements.




                                                                                                    29
 JIANGLING MOTORS CORPORATION, LTD.

 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
 FOR THE SIX MONTHS ENDED 30 JUNE 2019
 (All amounts in thousands of RMB unless otherwise stated)

                                           Share        Share      Other       Retained
                                Notes     capital    premium    reserves       earnings          Total

Balance at 1 January 2018                863,214      816,609    450,914      10,441,665    12,572,402

Profit for the six months                      -            -          -         318,951       318,951
Dividends relating to 2017                     -            -          -      (2,276,295)   (2,276,295)
Balance at 30 June 2018                  863,214      816,609    450,914       8,484,321    10,615,058

Balance at 1 January 2019                863,214      816,609    447,472       8,257,203    10,384,498

Profit for the six months                      -            -          -          58,862        58,862
Dividends relating to 2018        27           -            -          -        (34,529)      (34,529)
Balance at 30 June 2019                  863,214      816,609    447,472       8,281,536    10,408,831

 #Unaudited financial indexes
 The notes on pages 32 to 90 are an integral part of these consolidated financial statements.




                                                                                                  30
JIANGLING MOTORS CORPORATION, LTD.

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2019
(All amounts in thousands of RMB unless otherwise stated)

                                                                        Six Months Ended 30 June
                                                            Notes       2019#             2018#

Cash flows from operating activities
Cash generated from operations                               28            1,435,500            (791,761)
Interest paid                                                                  (150)                 (151)
Income tax paid                                                                (148)             (114,906)
Net cash inflow/(outflow) from operating activities                        1,435,202            (906,818)

Cash flows from investing activities
Payment for property, plant and equipment (“PPE”)                        (801,467)            (572,583)
Purchase of financial assets at fair value through profit
    or loss                                                              (4,700,000)           (3,462,000)
Other cash paid relating to investing activities                             (7,591)              (13,354)
Proceeds from disposal of PPE                                28               2,990                 2,569
Proceeds from disposal of financial assets at fair value
   through profit or loss                                                 4,700,000            3,462,000
Investment income from financial assets at fair value
   through profit or loss                                                    18,447               10,202
Interest received                                                           100,566              129,686
Other cash received from investing activities                                 2,650                  733
Net cash outflow from investing activities                                 (684,405)            (442,747)

Cash flows from financing activities
Repayments of borrowings                                                       (220)                 (207)
Dividends paid to shareholders of the Company                                      -           (1,999,237)
Other cash paid relating to financing activities                                   -               (1,104)
Net cash outflow from financing activities                                     (220)           (2,000,548)

Net increase/(decrease) in cash and cash equivalents                         750,577           (3,350,113)
Cash and cash equivalents at beginning of year                            7,616,880            11,137,723
Effects of exchange rate changes                                                   -                    -
Cash and cash equivalents at end of period                   20           8,367,457             7,787,610

#Unaudited financial indexes
The notes on pages 32 to 90 are an integral part of these consolidated financial statements.




                                                                                                   31
      JIANGLING MOTORS CORPORATION, LTD.

      FOR THE SIX MONTHS ENDED 30 JUNE 2019
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
      (All amounts in thousands of RMB unless otherwise stated)

1     General information

      Jiangling Motors Corporation, Ltd. (the “Company”) was established in the People’s Republic
      of China (the “PRC”) under the Company Law of the PRC and according to the approval of
      Hongban (1992) No. 005 of Nangchang Revolution and Authorisation Group of Company’s
      Joint Stock as a joint stock limited company to hold certain operational assets and liabilities of
      the automotive manufacturing business of Jiangxi Motors Manufacturing Factory, which was
      owned by Jiangling Motors Group Co.,Ltd (“JMCG”). The legal representative’s operating
      license of the Company is No. 913600006124469438.

      The address of the Company’s registered office is No.509, Northern Yingbin Avenue,
      Nanchang, Jiangxi Province, the PRC.

      In December 1993, the Company issued 494,000,000 domestic ordinary shares (“A share”).
      In addition, the Company issued 25,214,000 A shares as bonus shares to the existing
      shareholders in 1994. The bonus shares were issued by utilisation of the Company’s retained
      earnings.

      In 1995, the Company issued 174,000,000 domestically listed foreign shares (“B share”) and
      the Company issued 170,000,000 additional B shares in 1998.

      As at 30 June 2019, the total number of issued shares of the Company is 863,214,000
      shares, which are all listed on the Shenzhen Stock Exchange, the PRC.

      The Company and its subsidiaries (the “Group”) are principally engaged in the development,
      manufacturing and selling of automobiles, engines and automobile related parts, dies and
      tools.

      These consolidated financial statements were authorised for issue by the Board of Directors
      on 27 August 2019.

2     Summary of significant accounting policies

      This note provides a list of the significant accounting policies adopted in the preparation of
      these consolidated financial statements. These policies have been consistently applied to all
      the years presented, unless otherwise stated. The financial statements are for the Group
      consisting the Company and its subsidiaries.

2.1   Basis of preparation

      The consolidated financial statements of the Group have been prepared in accordance with all
      applicable International Financial Reporting Standards (“IFRS”). The consolidated financial
      statements have been prepared on a historical cost basis, except for certain financial assets
      and liabilities (including derivative instruments, financial assets at FVOCI and financial
      liabilities at FVPL) are measured at fair value.




                                                                                                       32
      JIANGLING MOTORS CORPORATION, LTD.

      FOR THE SIX MONTHS ENDED 30 JUNE 2019
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
      (All amounts in thousands of RMB unless otherwise stated)

2      Summary of significant accounting policies (continued)

2.1    Basis of preparation (continued)

       New and amended standards adopted by the Group

       The accounting policies adopted are consistent with those of the previous financial year and
       corresponding interim reporting period, except for the adoption of new and amended
       standards as set out below. The other standards did not have any impact on the Group’s
       accounting policies and did not require retrospective adjustments.

        IFRS 16 Leases
       IFRS 16 has been effective from 1 January 2019. As permitted under the specific transitional
       provisions in the standard, the Group has adopted IFRS 16 retrospectively, but has not
       restated comparatives for the 2018 reporting period. There is no reclassifications and
       adjustments arising from the new leasing rules need to be recognised in the opening balance
       sheet on 1 January 2019 because the leases are short-term or for which the underlying asset
       is of low value.




                                                                                                 33
      JIANGLING MOTORS CORPORATION, LTD.

      FOR THE SIX MONTHS ENDED 30 JUNE 2019
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
      (All amounts in thousands of RMB unless otherwise stated)


2      Summary of significant accounting policies (continued)

2.2    Subsidiaries

       A subsidiary is an entity (including a structured entity) over which the Group has control. The
       Group controls an entity when the Group is exposed to, or has rights to, variable returns from
       its involvement with the entity and has the ability to affect those returns through its power over
       the entity. Subsidiaries are fully consolidated from the date on which control is transferred to
       the Group. They are deconsolidated from the date that control ceases.

       The acquisition method of accounting is used to account for business combinations by the
       Group.

       Intercompany transactions, balances and unrealised gains on transactions between Group
       companies are eliminated. Unrealised losses are also eliminated unless the transaction
       provides evidence of an impairment of the transferred asset. Accounting policies of
       subsidiaries have been changed where necessary to ensure consistency with the policies
       adopted by the Group.

2.3    Associates

       An associate is an entity over which the Group has significant influence but not control,
       generally accompanying a shareholding of between 20% and 50% of the voting rights.
       Investments in associates are accounted for using the equity method of accounting, after
       initially being recognised at cost.

       The Group's share of post-acquisition profit or loss is recognised in profit or loss, and its share
       of post-acquisition movements in other comprehensive income is recognised in other
       comprehensive income with a corresponding adjustment to the carrying amount of the
       investment. Dividends received or receivable from associates and joint ventures are
       recognised as a reduction in the carrying amount of the investment. When the Group's share
       of losses in an associate equals or exceeds its interest in the associate, including any other
       unsecured receivables, the Group does not recognise further losses, unless it has incurred
       legal or constructive obligations or made payments on behalf of the associate.

       The Group determines at each reporting date whether there is any objective evidence that the
       investment in the associate is impaired. If this is the case, the Group calculates the amount of
       impairment as the difference between the recoverable amount of the associate and its
       carrying value and recognises the amount adjacent to ‘share of profit of investments
       accounted for using equity method’ in profit or loss.

       Profits and losses resulting from upstream and downstream transactions between the Group
       and its associate are recognised in the Group’s financial statements only to the extent of
       unrelated investor’s interests in the associates. Unrealised losses are eliminated unless the
       transaction provides evidence of an impairment of the asset transferred. Accounting policies of
       associates have been changed where necessary to ensure consistency with the policies
       adopted by the Group.

       Gains or losses on dilution of equity interest in associates are recognised in profit or loss.




                                                                                                        34
      JIANGLING MOTORS CORPORATION, LTD.

      FOR THE SIX MONTHS ENDED 30 JUNE 2019
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
      (All amounts in thousands of RMB unless otherwise stated)

2     Summary of significant accounting policies (continued)

2.4   Separate financial statements

      Investments in subsidiaries are accounted for at cost less impairment. Cost includes direct
      attributable costs of investment. The results of subsidiaries are accounted for by the Company
      on the basis of dividend received and receivable.

      Impairment testing of the investments in subsidiaries is required upon receiving a dividend
      from these investments if the dividend exceeds the total comprehensive income of the
      subsidiary in the period the dividend is declared or if the carrying amount of the investment in
      the separate financial statements exceeds the carrying amount in the consolidated financial
      statements of the investee’s net assets including goodwill.

2.5   Segment Reporting

      Operating segments are reported in a manner consistent with the internal reporting provided
      to the chief operating decision-maker. The chief operating decision-maker, who is responsible
      for allocating resources and assessing performance of the operating segments, has been
      identified as the executive committee that makes strategic decisions.

2.6   Foreign currency translation

(1)   Functional and presentation currency
      Items included in the financial statements of each of the Group’s entities are measured using
      the currency of the primary economic environment in which the entity operates (the “functional
      currency”). The consolidated financial statements are presented in Renminbi (“RMB”), which is
      the Company’s functional and the Group’s presentation currency.

(2)   Transactions and balances
      Foreign currency transactions are translated into the functional currency using the exchange
      rates prevailing at the dates of the transactions or valuation where items are remeasured.
      Foreign exchange gains and losses resulting from the settlement of such transactions and
      from the translation at year-end exchange rates of monetary assets and liabilities
      denominated in foreign currencies are recognised in profit or loss, except when deferred in
      equity as qualifying cash flow hedges and qualifying net investment hedges.

      Foreign exchange gains and losses are presented in profit or loss within other
      income/(expense)-net.

      Non-monetary items that are measured at fair value in a foreign currency are translated using
      the exchange rates at the date when the fair value was determined. Translation differences on
      assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For
      example, translation differences on non-monetary assets and liabilities such as equities held
      at fair value through profit or loss are recognised in profit or loss as part of the fair value gain
      or loss and translation differences on non-monetary assets such as equities classified as fair
      value through other comprehensive income are recognised in other comprehensive income.




                                                                                                          35
      JIANGLING MOTORS CORPORATION, LTD.

      FOR THE SIX MONTHS ENDED 30 JUNE 2019
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
      (All amounts in thousands of RMB unless otherwise stated)

2     Summary of significant accounting policies (continued)

2.7   Property, plant and equipment

      Property, plant and equipment is stated at historical cost less accumulated depreciation and
      any impairment losses. Historical cost includes expenditure that is directly attributable to the
      acquisition or construction of the items.

      Subsequent costs are included in the asset’s carrying amount or recognised as a separate
      asset, as appropriate, only when it is probable that future economic benefits associated with
      the item will flow to the Group and the cost of the item can be measured reliably. The carrying
      amount of the replaced part is derecognised. All other repairs and maintenance are charged to
      profit or loss during the financial period in which they are incurred.

      Depreciation is calculated using the straight-line method to allocate their cost to their residual
      values over their estimated useful lives, as follows:

      Buildings                                                                            35-40 years
      Plant and machinery                                                                  10-15 years
      Motor automobiles                                                                     6-10 years
      Moulds                                                                                   5 years
      Electronic and other equipment                                                         5-7 years

      The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end
      of each reporting period.

      An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s
      carrying amount is greater than its estimated recoverable amount (Note 2.10).

      Gains and losses on disposals are determined by comparing the proceeds with the carrying
      amount and are recognised within other income/(expense) - net in profit or loss.

      Assets under construction represent buildings under construction and plant and equipment
      pending installation, and are stated at cost. Costs include construction and acquisition costs. No
      provision for depreciation is made on assets under construction until such time as the relevant
      assets are completed and ready for intended use. When the assets concerned are brought into
      use, the costs are transferred to property, plant and equipment and depreciated in accordance
      with the policy as stated above.

2.8   Lease prepayment

      Lease prepayment represents upfront prepayment made for the land use rights, and is
      expensed in profit or loss on a straight-line basis over the period of the lease or when there is
      impairment, the impairment is expensed in profit or loss.




                                                                                                         36
      JIANGLING MOTORS CORPORATION, LTD.

      FOR THE SIX MONTHS ENDED 30 JUNE 2019
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
      (All amounts in thousands of RMB unless otherwise stated)

2     Summary of significant accounting policies (continued)

2.9   Intangible assets

(1)   Goodwill

      Goodwill arises on the acquisition of subsidiaries represents the excess of the consideration
      transferred, the amount of any non-controlling interest in the acquiree and the acquisition-
      date fair value of any previous equity interest in the acquiree over the fair value of the
      identified net assets acquired.

      For the purpose of impairment testing, goodwill acquired in a business combination is allocated
      to each of the cash-generating units (“CGUs”), or groups of CGUs, that is expected to benefit
      from the synergies of the combination. Each unit or group of units to which the goodwill is
      allocated represents the lowest level within the entity at which the goodwill is monitored for
      internal management purposes.

      Goodwill impairment reviews are undertaken annually or more frequently if events or changes
      in circumstances indicate a potential impairment. The carrying value of the CGU containing the
      goodwill is compared to the recoverable amount, which is the higher of value in use and the fair
      value less costs of disposal. Any impairment is recognised immediately as an expense and is
      not subsequently reversed.

(2)   Research and development

      Research expenditure is recognised as an expense as incurred. Costs incurred on
      development projects (relating to the design and testing of new or improved products) are
      recognised as intangible assets when the following criteria are fulfilled:

      (a) it is technically feasible to complete the intangible asset so that it will be available for use or
          sale;
      (b) management intends to complete the intangible asset and use or sell it;
      (c) there is an ability to use or sell the intangible asset;
      (d) it can be demonstrated how the intangible asset will generate probable future economic
          benefits;
      (e) adequate technical, financial and other resources to complete the development and to use
          or sell the intangible asset are available; and
      (f) the expenditure attributable to the intangible asset during its development can be reliably
          measured.

      The development cost of an internally generated intangible asset is the sum of the expenditure
      incurred from the date the asset meets the recognition criteria above to the date when it is
      available for use. The development costs capitalised in connection with the intangible asset
      include costs of materials and services used or consumed and employee costs incurred in the
      creation of the asset.

      Capitalised development costs are recorded as intangible assets and amortised from the point
      at which the asset is ready for use on a straight-line basis over its useful life.

      Other development expenditures that do not meet these criteria are recognised as an expense
      as incurred. Development costs previously recognised as an expense are not recognised as an
      asset in a subsequent period.




                                                                                                            37
       JIANGLING MOTORS CORPORATION, LTD.

       FOR THE SIX MONTHS ENDED 30 JUNE 2019
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
       (All amounts in thousands of RMB unless otherwise stated)

2      Summary of significant accounting policies (continued)

2.9    Intangible assets (continued)

(3)    Computer software

       Acquired computer software licences are capitalised on the basis of the costs incurred to acquire
       and bring to use the specific software. These costs are amortised over their estimated useful
       lives of 5 years.

(4)    Non-patent technology

       Non-patent technology is capitalised from the development cost. These costs are amortised over
       their estimated useful lives of 5 years.

2.10   Impairment of non-financial assets

       Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation
       and are tested annually for impairment, or more frequently if events or changes in circumstances
       indicate that they might be impaired. Other assets are tested for impairment whenever events or
       changes in circumstances indicate that the carrying amount may not be recoverable. An
       impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its
       recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of
       disposal and value in use. For the purposes of assessing impairment, assets are grouped at the
       lowest levels for which there are separately identifiable cash inflows which are largely
       independent of the cash inflows from other assets or groups of assets (cash-generating units).
       Non-financial assets other than goodwill that suffered an impairment are reviewed for possible
       reversal of the impairment at the end of each reporting period.

2.11   Non-current assets held-for-sale

       Non-current assets are classified as held for sale when their carrying amount is to be recovered
       principally through a sale transaction and a sale is considered highly probable. They are
       measured at the lower of their carrying amount and fair value less costs to sell, except for
       assets such as deferred tax assets, assets arising from employee benefits, financial assets
       and investment property that are carried at fair value and contractual rights under insurance
       contracts, which are specifically exempt from this requirement.

       An impairment loss is recognised for any initial or subsequent write-down of the asset to fair
       value less costs to sell. A gain is recognised for any subsequent increases in fair value less
       costs to sell of an asset, but not in excess of any cumulative impairment loss previously
       recognised. A gain or loss not previously recognised by the date of the sale of the non-current
       asset is recognised at the date of derecognition.

       Non-current assets are not depreciated or amortised while they are classified as held for sale.
       Interest and other expenses attributable to the liabilities of a disposal group classified as held
       for sale continue to be recognised.

       Non-current assets classified as held for sale and the assets of a disposal group classified as
       held for sale are presented separately from the other assets in the statement of financial
       position.




                                                                                                        38
       JIANGLING MOTORS CORPORATION, LTD.

       FOR THE SIX MONTHS ENDED 30 JUNE 2019
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
       (All amounts in thousands of RMB unless otherwise stated)

2.12   Investments and other financial assets

(1)    Classification

       The Group classifies its financial assets in the following measurement categories:
        those to be measured subsequently at fair value (either through OCI or through profit or
          loss), and
        those to be measured at amortised cost.
       The classification depends on the entity’s business model for managing the financial assets
       and the contractual terms of the cash flows.

       For assets measured at fair value, gains and losses will either be recorded in profit or loss or
       OCI. For investments in equity instruments that are not held for trading, this will depend on
       whether the Group has made an irrevocable election at the time of initial recognition to
       account for the equity investment at fair value through other comprehensive income
       (“FVOCI”).

       The Group reclassifies debt investments when and only when its business model for
       managing those assets changes.

(2)    Recognition and derecognition

       Regular way purchases and sales of financial assets are recognised on trade-date, the date
       on which the Group commits to purchase or sell the asset. Financial assets are derecognised
       when the rights to receive cash flows from the financial assets have expired or have been
       transferred and the Group has transferred substantially all the risks and rewards of ownership.

(3)    Measurement

       At initial recognition, the Group measures a financial asset at its fair value plus, in the case of
       a financial asset not at fair value through profit or loss, transaction costs that are directly
       attributable to the acquisition of the financial asset. Transaction costs of financial assets
       carried at FVPL are expensed in profit or loss.

       Financial assets with embedded derivatives are considered in their entirety when determining
       whether their cash flows are solely payment of principal and interest.

       Debt instruments
       Subsequent measurement of debt instruments depends on the Group’s business model for
       managing the asset and the cash flow characteristics of the asset. There are three
       measurement categories into which the Group classifies its debt instruments:
        Amortised cost: Assets that are held for collection of contractual cash flows where those
          cash flows represent solely payments of principal and interest are measured at amortised
          cost. Interest income from these financial assets is included in finance income using the
          effective interest rate method. Any gain or loss arising on derecognition is recognised
          directly in profit or loss and presented in other income/(expense)-net together with foreign
          exchange gains and losses. Impairment losses are presented as separate line item in the
          statement of profit or loss.




                                                                                                         39
       JIANGLING MOTORS CORPORATION, LTD.

       FOR THE SIX MONTHS ENDED 30 JUNE 2019
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
       (All amounts in thousands of RMB unless otherwise stated)

2      Summary of significant accounting policies (continued)

2.12   Investments and other financial assets (continued)

(3)    Measurement (continued)

           FVOCI: Assets that are held for collection of contractual cash flows and for selling the
           financial assets, where the assets’ cash flows represent solely payments of principal and
           interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI,
           except for the recognition of impairment gains or losses, interest income and foreign
           exchange gains and losses which are recognised in profit or loss. When the financial asset is
           derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from
           equity to profit or loss and recognised in other income/(expense)-net. Interest income from
           these financial assets is included in finance income using the effective interest rate method.
           Foreign exchange gains and losses are presented in other income/(expense)-net and
           impairment expenses are presented as separate line item in the statement of profit or loss.
           FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at
           FVPL. A gain or loss on a debt investment that is subsequently measured at FVPL is
           recognised in profit or loss and presented net within other income/(expense)-net in the
           period in which it arises.

       Equity instruments
       The Group subsequently measures all equity investments at fair value. Where the Group’s
       management has elected to present fair value gains and losses on equity investments in OCI,
       there is no subsequent reclassification of fair value gains and losses to profit or loss following the
       derecognition of the investment. Dividends from such investments continue to be recognised in
       profit or loss as other income when the Group’s right to receive payments is established.

       Changes in the fair value of financial assets at FVPL are recognised in other income/(expense)-
       net in the statement of profit or loss as applicable. Impairment losses (and reversal of impairment
       losses) on equity investments measured at FVOCI are not reported separately from other
       changes in fair value.

(4)    Impairment

       The Group assesses on a forward looking basis the expected credit losses associated with its
       debt instruments carried at amortised cost and FVOCI. The impairment methodology applied
       depends on whether there has been a significant increase in credit risk. For trade receivables,
       the Group applies the simplified approach permitted by IFRS 9, which requires expected lifetime
       losses to be recognised from initial recognition of the receivables, see Note 3.1 for further details.




                                                                                                         40
       JIANGLING MOTORS CORPORATION, LTD.

       FOR THE SIX MONTHS ENDED 30 JUNE 2019
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
       (All amounts in thousands of RMB unless otherwise stated)

2      Summary of significant accounting policies (continued)

2.13   Offsetting financial instruments

       Financial assets and liabilities are offset and the net amount reported in the statement of
       financial position where the Group currently has a legally enforceable right to offset the
       recognised amounts, and there is an intention to settle on a net basis or realise the asset and
       settle the liability simultaneously. The Group has also entered into arrangements that do not
       meet the criteria for offsetting but still allow for the related amounts to be set off in certain
       circumstances, such as bankruptcy or the termination of a contract.

2.14   Derivatives and hedging activities

       Derivatives are initially recognised at fair value on the date a derivative contract is entered into
       and are subsequently remeasured to their fair value at the end of each reporting period. The
       accounting for subsequent changes in fair value depends on whether the derivative is
       designated as a hedging instrument, and if so, the nature of the item being hedged. No
       derivative is designated as a hedging instrument by the Group, changes in the fair value of
       derivatives are recognised immediately in profit or loss and included in other
       income/(expense)-net.

2.15   Inventories

       Inventories are stated at the lower of cost and net realisable value. The cost of finished goods
       and work in progress comprises raw materials, direct labour, other direct costs and related
       production overheads, the latter being allocated on the basis of normal operating capacity.
       Cost excludes borrowing costs. Costs are assigned to individual items of inventory on the
       basis of weighted average costs. Costs of purchased inventory are determined after deducting
       rebates and discounts. Net realisable value is the estimated selling price in the ordinary
       course of business less the estimated costs of completion and the estimated costs necessary
       to make the sale.




                                                                                                          41
       JIANGLING MOTORS CORPORATION, LTD.

       FOR THE SIX MONTHS ENDED 30 JUNE 2019
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
       (All amounts in thousands of RMB unless otherwise stated)

2      Summary of significant accounting policies (continued)

2.16   Trade and other receivables

       Trade receivables are amounts due from customers for merchandise sold or services performed
       in the ordinary course of business. If collection of trade and other receivables is expected in one
       year or less (or in the normal operating cycle of the business if longer), they are classified as
       current assets. If not, they are presented as non-current assets.

       Trade and other receivables are recognised initially at fair value and subsequently measured at
       amortised cost using the effective interest method, less allowance for impairment. See Note 3.1
       for further information about the Group’s accounting for trade receivables and a description of
       the Group’s impairment policies.

2.17 Cash and cash equivalents

       In the consolidated statement of cash flows, cash and cash equivalents includes cash in hand,
       deposits held at call with banks and other short-term highly liquid investments with original
       maturities of three months or less that are readily convertible to known amounts of cash and
       which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank
       overdrafts are shown within borrowings in current liabilities in the statement of financial position.

2.18   Share capital

       Share capital consists of “A” and “B” shares.

       Incremental costs directly attributable to the issue of new shares are shown in equity as a
       deduction, net of tax, from the proceeds.

       Where any group company purchases the Company’s equity share capital (treasury shares), the
       consideration paid, including any directly attributable incremental costs (net of income taxes) is
       deducted from equity attributable to owners of the Company until the shares are cancelled or
       reissued. Where such shares are subsequently reissued, any consideration received, net of any
       directly attributable incremental transaction costs and the related income tax effects, is included in
       equity attributable to the Company’s shareholders.

2.19   Trade and other payables

       These amounts represent liabilities for goods and services provided to the Group prior to the end
       of financial year which are unpaid. The amounts are unsecured and are usually paid within 30
       days of recognition. Trade and other payables are presented as current liabilities unless payment
       is not due within 12 months after the reporting period. They are recognised initially at their fair
       value and subsequently measured at amortised cost using the effective interest method.

2.20   Borrowings

       Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are
       subsequently carried at amortised cost. Any difference between the proceeds (net of transaction
       costs) and the redemption value is recognised in profit or loss over the period of the borrowings
       using the effective interest method. Fees paid on the establishment of loan facilities are
       recognised as transaction costs of the loan to the extent that it is probable that some or all of the
       facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the
       extent there is no evidence that it is probable that some or all of the facility will be drawn down,
       the fee is capitalised as a prepayment for liquidity services and amortised over the period of the
       facility to which it relates.

                                                                                                          42
       JIANGLING MOTORS CORPORATION, LTD.

       FOR THE SIX MONTHS ENDED 30 JUNE 2019
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
       (All amounts in thousands of RMB unless otherwise stated)

2      Summary of significant accounting policies (continued)

2.20   Borrowings (continued)

       Borrowings are removed from the statement of financial position when the obligation specified in
       the contract is discharged, cancelled or expired. The difference between the carrying amount of a
       financial liability that has been extinguished or transferred to another party and the consideration
       paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or
       loss as other income/(expense)-net or finance costs.

       Borrowings are classified as current liabilities unless the Group has an unconditional right to defer
       settlement of the liability for at least 12 months after the end of the reporting period.

2.21   Borrowing costs

       General and specific borrowing costs directly attributable to the acquisition, construction or
       production of qualifying assets, which are assets that necessarily take a substantial period of
       time to get ready for their intended use or sale, are added to the cost of those assets, until such
       time as the assets are substantially ready for their intended use or sale.

       Investment income earned on the temporary investment of specific borrowings pending their
       expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

       All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

       Borrowing costs include interest expense, finance charges in respect of finance lease and
       exchange differences arising from foreign currency borrowings to the extent that they are
       regarded as an adjustment to interest costs. The exchange gains and losses that are an
       adjustment to interest costs include the interest rate differential between borrowing costs that
       would be incurred if the entity had borrowed funds in its functional currency, and the borrowing
       costs actually incurred on foreign currency borrowings. Such amounts are estimated based on
       interest rates on similar borrowings in the entity’s functional currency.

       When the construction of the qualifying assets takes more than one accounting period, the
       amount of foreign exchange differences eligible for capitalisation is determined for each annual
       period and are limited to the difference between the hypothetical interest amount for the
       functional currency borrowings and the actual interest incurred for foreign currency borrowings.
       Foreign exchange differences that did not meet the criteria for capitalisation in previous years
       should not be capitalised in subsequent years.

2.22   Current and deferred income tax

       The income tax expense or credit for the period is the tax payable on the current period’s taxable
       income based on the applicable income tax rate for each jurisdiction adjusted by changes in
       deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

(1)    Current income tax

       The current income tax charge is calculated on the basis of the tax laws enacted or substantively
       enacted at the end of the reporting period in the countries where the company and its
       subsidiaries and associates operate and generate taxable income. Management periodically
       evaluates positions taken in tax returns with respect to situations in which applicable tax
       regulation is subject to interpretation. It establishes provisions where appropriate on the basis of
       amounts expected to be paid to the tax authorities.


                                                                                                          43
       JIANGLING MOTORS CORPORATION, LTD.

       FOR THE SIX MONTHS ENDED 30 JUNE 2019
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
       (All amounts in thousands of RMB unless otherwise stated)

2      Summary of significant accounting policies (continued)

2.22   Current and deferred income tax (continued)

(2)    Deferred income tax

       Deferred income tax is provided in full, using the liability method, on temporary differences
       arising between the tax bases of assets and liabilities and their carrying amounts in the
       consolidated financial statements. However, deferred tax liabilities are not recognised if they
       arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it
       arises from initial recognition of an asset or liability in a transaction other than a business
       combination that at the time of the transaction affects neither accounting nor taxable profit nor
       loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or
       substantially enacted by the end of the reporting period and are expected to apply when the
       related deferred income tax asset is realised or the deferred income tax liability is settled.

       Deferred tax assets are recognised only if it is probable that future taxable amounts will be
       available to utilise those temporary differences and losses.

       Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset
       current tax assets and liabilities and when the deferred tax balances relate to the same taxation
       authority. Current tax assets and tax liabilities are offset where the entity has a legally
       enforceable right to offset and intends either to settle on a net basis, or to realise the asset and
       settle the liability simultaneously.

       Current and deferred tax is recognised in profit or loss, except to the extent that it relates to
       items recognised in other comprehensive income or directly in equity. In this case, the tax is also
       recognised in other comprehensive income or directly in equity, respectively.

2.23   Employee benefits

       Employee benefits refer to all forms of consideration or compensation given by the Group in
       exchange for service rendered by employees or for termination of employment relationship,
       which include short-term employee benefits, post-employment benefits, termination benefits and
       other long-term employee benefits.

(1)    Short-term employee benefits

       Short-term employee benefits include wages or salaries, bonus, allowances and subsidies, staff
       welfare, premiums or contributions on medical insurance, work injury insurance and maternity
       insurance, housing funds, union running costs and employee education costs, short-term paid
       absences and etc. The short-term employee benefits actually occurred are recognised as a
       liability in the accounting period in which the service is rendered by the employees, with a
       corresponding charge to the profit or loss for the current period or the cost of relevant assets.
       Non-monetary benefits are measured at fair value.




                                                                                                         44
       JIANGLING MOTORS CORPORATION, LTD.

       FOR THE SIX MONTHS ENDED 30 JUNE 2019
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
       (All amounts in thousands of RMB unless otherwise stated)

2      Summary of significant accounting policies (continued)

2.23   Employee benefits (continued)

(2)    Post-employment benefits

       The Group classifies post-employment benefit plans as either defined contribution plans or
       defined benefit plans. Defined contribution plans are post-employment benefit plans under
       which the Group pays fixed contributions into a separate fund and will have no obligation to
       pay further contributions; and defined benefit plans are post-employment benefit plans other
       than defined contribution plans. During the reporting period, the premiums or contributions on
       basic pensions and unemployment insurance belong to defined contribution plans; the
       premiums or contributions on supplementary retirement benefits belong to defined benefit
       plans.

(i)    Defined contribution plans

       Basic pensions

       The Group’s employees participate in the basic pension plan set up and administered by local
       authorities of Ministry of Human Resource and Social Security. Monthly payments of
       premiums on the basic pensions are calculated according to the bases and percentage
       prescribed by the relevant local authorities. When employees retire, the relevant local
       authorities are obliged to pay the basic pensions to them. The amounts based on the above
       calculations are recognised as liabilities in the accounting period in which the service has been
       rendered by the employees, with a corresponding charge to the profit or loss for the current
       period or the cost of relevant assets.

(ii)   Defined benefit plans

       The Group provides employees with some supplementary retirement benefits belong to
       defined benefit plans in addition to the social security policy prescribed by the State. The
       liability recognised in the statement of financial position in respect of defined benefit pension
       plans is the present value of the defined benefit obligation at the end of the reporting period
       less the fair value of plan assets. The defined benefit obligation is calculated annually by
       independent actuaries using the projected unit credit method. The present value of the defined
       benefit obligation is determined by discounting the estimated future cash outflows using
       interest rates of national debt that are denominated in the currency in which the benefits will
       be paid, and that have terms approximating to the terms of the related obligation.

       The net interest cost is calculated by applying the discount rate to the net balance of the
       defined benefit obligation and the fair value of plan assets. This cost is included in employee
       benefit expense in the statement of profit or loss.

       Remeasurement gains and losses arising from experience adjustments and changes in
       actuarial assumptions are recognised in the period in which they occur, directly in other
       comprehensive income. They are included in retained earnings in the statement of changes in
       equity and in the statement of financial position.

       Changes in the present value of the defined benefit obligation resulting from plan amendments
       or curtailments are recognised immediately in profit or loss as past service costs.




                                                                                                      45
       JIANGLING MOTORS CORPORATION, LTD.

       FOR THE SIX MONTHS ENDED 30 JUNE 2019
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
       (All amounts in thousands of RMB unless otherwise stated)

2      Summary of significant accounting policies (continued)

2.23   Employee benefits (continued)

(3)    Termination benefits

       The Group provides compensation for terminating the employment relationship with
       employees before the end of the employment contracts or as an offer to encourage employees
       to accept voluntary redundancy before the end of the employment contracts. The Group
       recognises a liability arising from compensation for termination of the employment relationship
       with employees, with a corresponding charge to profit or loss for the current period at the
       earlier of the following dates: 1) when the Group cannot unilaterally withdraw an employment
       termination plan or a curtailment proposal; 2) when the Group recognises costs or expenses
       for a restructuring that involves the payment of termination benefits.

(4)    Early retirement benefits

       The Group offers early retirement benefits to those employees who accept early retirement
       arrangements. The early retirement benefits refer to the salaries and social security
       contributions to be paid to and for the employees who accept voluntary retirement before the
       normal retirement date prescribed by the State, as approved by the management. The Group
       pays early retirement benefits to those early retired employees from the early retirement date
       until the normal retirement date. The Group accounts for the early retirement benefits in
       accordance with the treatment for termination benefits, in which the salaries and social
       security contributions to be paid to and for the early retired employees from the off-duty date to
       the normal retirement date are recognised as liabilities with a corresponding charge to the
       profit or loss for the current period. The differences arising from the changes in the respective
       actuarial assumptions of the early retirement benefits and the adjustments of benefit standards
       are recognised in profit or loss in the period in which they occur.

       The termination benefits expected to be settled within one year since the balance sheet date
       are classified as current liabilities.

2.24   Provisions

       Provisions, mainly warranty costs, are recognised when: the Group has a present legal or
       constructive obligation as a result of past events; it is probable that an outflow of resources will
       be required to settle the obligation; and the amount has been reliably estimated. Provisions are
       not recognised for future operating losses.

       Where there are a number of similar obligations, the likelihood that an outflow will be required in
       settlement is determined by considering the class of obligations as a whole. A provision is
       recognised even if the likelihood of an outflow with respect to any one item included in the same
       class of obligations may be small.

       Provisions are measured at the present value of the expenditures expected to be required to
       settle the obligation using a pre-tax rate that reflects current market assessments of the time
       value of money and the risks specific to the obligation. The increase in the provision due to
       passage of time is recognised as interest expense.




                                                                                                         46
       JIANGLING MOTORS CORPORATION, LTD.

       FOR THE SIX MONTHS ENDED 30 JUNE 2019
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
       (All amounts in thousands of RMB unless otherwise stated)

2      Summary of significant accounting policies (continued)

2.25   Revenue recognition

       The Group manufactures and sells a range of automobiles and automobile parts to dealers and
       ending customers. Besides, the Group also provides automobile maintenance and additional
       warranty services. The Group recognises revenue when the customer obtains control of the
       goods and services. The revenue is recognised based on the consideration to which the Group
       expects to be entitled in exchange for transferring promised goods or services to customers.

(1)    Sales of goods – Automobile and automobile parts

       The Group manufactures and sells a range of automobiles and automobile parts to dealers and
       ending customers. Sales are recognised when control of the products has transferred, being
       when the customer has the ability to direct the use of and obtain substantially all of the
       remaining benefits from the products. Control of automobiles is transferred when automobiles
       are delivered out of warehouse, being when customer has accepted the products. Control of
       automobile parts is transferred when the products out of warehouse or shipped to designated
       destination, being when customer has accepted the products.

       When the contracts include two performance obligations, selling automobiles and providing
       shipping services, the transaction price will be allocated to each performance obligation based
       on the stand-alone selling prices. Where these are not directly observable, they are estimated
       considering market information, expected cost plus margin.

       No element of financing is deemed present as the sales are made with a credit term within one
       year, which is consistent with market practice. The Group’s obligation to repair or replace faulty
       products under the statutory warranty terms prescribed by the industry law and regulations is
       recognised as a provision, see Note 2.24. For additional warranty, it is considered as a separate
       performance obligation under IFRS 15, see Note 2.25(2).

       Revenue from these sales is recognised based on the price specified in the contract, net of the
       estimated discounts. Accumulated experience is used to estimate and provide for the discounts,
       using the expected value method, and revenue is only recognised to the extent that it is highly
       probable that a significant reversal will not occur.

(2)    Rendering of services

       The Group provides service of automobile maintenance and additional warranty. Revenue is
       recognised on the basis of inputs to the satisfaction of the performance obligation relative to the
       total expected inputs to the satisfaction of that performance obligation.

       Trade receivables are recognised when the Group recognised revenue according to the
       completion process and has an unconditional right to consideration. Contract assets are
       recognised when the Group satisfies a performance obligation but does not have an
       unconditional right to consideration. The provision of trade receivables and contract assets are
       subject to expected credit loss model. Contract liabilities are recognised when the consideration
       received before the Group satisfies the performance obligation. The contract assets and
       liabilities are presented on a net basis for the some contract.




                                                                                                        47
       JIANGLING MOTORS CORPORATION, LTD.

       FOR THE SIX MONTHS ENDED 30 JUNE 2019
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
       (All amounts in thousands of RMB unless otherwise stated)

2      Summary of significant accounting policies (continued)

2.26   Earnings per share

(1)    Basic earnings per share

       Basic earnings per share is calculated by dividing: the profit attributable to owners of the
       company, excluding any costs of servicing equity other than ordinary shares by the weighted
       average number of ordinary shares outstanding during the financial year, adjusted for bonus
       elements in ordinary shares issued during the year and excluding treasury shares.

(2)    Diluted earnings per share

       Diluted earnings per share adjusts the figures used in the determination of basic earnings per
       share to take into account:
        the after income tax effect of interest and other financing costs associated with dilutive
       potential ordinary shares, and
        the weighted average number of additional ordinary shares that would have been
       outstanding assuming the conversion of all dilutive potential ordinary shares.

2.27   Leases

       Leases in which a significant portion of the risks and rewards of ownership are retained by the
       lessor are classified as operating leases. Payments made under operating leases (net of any
       incentives received from the lessor) are charged to profit or loss on a straight-line basis over the
       period of the lease.

2.28   Dividend distribution

       Dividend distribution to the Company’s shareholders is recognised as a liability in the Group’s
       financial statements in the period in which the dividends are approved by the Company’s
       shareholders, where appropriate.

2.29   Government grants

       Government grants refer to the monetary or non-monetary assets obtained by the Group from
       the government, including tax return, financial subsidy and etc.

       Government grants are recognised when the grants can be received and the Group can
       comply with all attached conditions. If a government grant is a monetary asset, it will be
       measured at the amount received or receivable. If a government grant is a non-monetary
       asset, it will be measured at its fair value. If it is unable to obtain its fair value reliably, it will be
       measured at its nominal amount.

       Government grants related to assets refer to government grants which are obtained by the
       Group for the purposes of purchase, construction or acquisition of the long-term assets.
       Government grants related to income refer to the government grants other than those related
       to assets.

       Government grants related to assets will be recorded as deferred income and recognised
       evenly in profit or loss over the useful lives of the related assets.




                                                                                                                48
       JIANGLING MOTORS CORPORATION, LTD.

       FOR THE SIX MONTHS ENDED 30 JUNE 2019
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
       (All amounts in thousands of RMB unless otherwise stated)

2      Summary of significant accounting policies (continued)

2.29   Government grants (continued)

       Government grants related to income will be recorded as deferred income and recognised in
       profit or loss in the period in which the related expenses are recognised if the grants are
       intended to compensate for future expenses or losses, and otherwise recognised in profit or
       loss for the current period if the grants are used to compensate for expenses or losses that
       have been incurred.

2.30   Interest income

       Interest income from financial assets at FVPL is included in other income/(expense)-net, see Note
       8 below.

       Interest income on financial assets at amortised cost and financial assets at FVOCI (2017 –loans
       and receivables) calculated using the effective interest method is recognised in the statement of
       profit or loss as part of finance income. Interest income is presented as finance income where it
       is earned from financial assets that are held for cash management purposes, see Note 9 below.
       Any other interest income is included in other income/(expense)-net.

       Interest income is calculated by applying the effective interest rate to the gross carrying amount
       of a financial asset except for financial assets that subsequently become credit-impaired. For
       credit-impaired financial assets the effective interest rate is applied to the net carrying amount
       of the financial asset (after deduction of the loss allowance).

3      Financial risk management

       The Group’s activities expose it to a variety of financial risks: market risk (including foreign
       exchange risk and interest rate risk), credit risk and liquidity risk. The Group’s overall risk
       management programme focuses on the unpredictability of financial markets and seeks to
       minimise potential adverse effects on the Group’s financial performance.

       The Group’s risk management is predominantly controlled by Finance Department under
       policies approved by the Board of Directors. Group Finance Department identifies, evaluates
       and hedges financial risks in close co-operation with the Group’s operating units. The board
       provides written principles for overall risk management, as well as policies covering specific
       areas, such as foreign exchange risk, interest rate risk and credit risk, use of derivative
       financial instruments and non-derivative financial instruments, and investment of excess
       liquidity.

3.1    Financial risk factors

(1)    Market risk

(i)    Foreign exchange risk

       The Group operates domestically and is exposed to foreign exchange risk arising from various
       currency exposures, primarily with respect to other payables dominated in US dollar (“USD”)
       and Euro.

       Management has set up a policy to require the Group to manage their foreign exchange risk
       against their functional currency. Foreign exchange risk arises when future commercial
       transactions or recognised assets or liabilities are denominated in a currency that is not the
       Company’s functional currency.

                                                                                                      49
        JIANGLING MOTORS CORPORATION, LTD.

       FOR THE SIX MONTHS ENDED 30 JUNE 2019
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
        (All amounts in thousands of RMB unless otherwise stated)

3       Financial risk management (continued)

3.1     Financial risk factors (continued)

(1)     Market risk (continued)

(i)     Foreign exchange risk (continued)

        Exposure

        The Group’s exposure to foreign currency risk at the end of the reporting period, expressed in
        RMB, was as follows:

                                                  30 June 2019                       31 December 2018
                                                                       Other                             Other
                                             USD         EUR        currency      USD         EUR     currency
                                          RMB’000    RMB’000      RMB’000   RMB’000    RMB’000   RMB’000


       Derivative financial instruments
         Foreign exchange forwards         (2,578)          -             -         979          -           -
       Trade and other receivables               -        266             -           -        265           -
       Borrowings                           (3,826)         -             -      (4,044)         -           -
       Trade and other payables           (202,250)   (106,365)      (4,171)   (164,599) (100,450)      (4,045)
                                          (208,654)   (106,099)      (4,171)   (167,664) (100,185)      (4,045)

        Sensitivity

        As shown in the table above, the Group is primarily exposed to changes in USD/RMB and
        Euro/RMB exchange rates.

        As at 30 June 2019, if RMB had strengthened/weakened by 10% against USD with all other
        variable held constant, the Group’s net profit for the year then ended would have been
        approximately RMB17,722,000 (2018: RMB14,187,000) higher/lower.

        As at 30 June 2019, if RMB had strengthened/weakened by 10% against Euro with all other
        variable held constant, the Group’s net profit for the year then ended would have been
        approximately RMB9,074,000 (2018: RMB8,626,000) higher/lower.

(ii)    Interest rate risk

        The Group’s income and operating cash flows are substantially independent of changes in
        market interest rates. As at 30 June 2019, a large portion of its bank deposits were at variable
        rates and all of its borrowings were at fixed rate. The Group has not used any interest rate
        swaps to hedge its exposure to interest rate risk.

        As at 30 June 2019, if the interest rate of the Group’s bank deposits had been
        increased/decreased by 10% and all other variables were held constant, the Group’s net profit
        for the year then ended would have been increased/decreased by approximately
        RMB7,313,000 (2018: RMB14,174,000).

        As at 30 June 2019, the difference between the fair value and book value of the Group’s
        borrowings with fixed rate is immaterial.




                                                                                                             50
       JIANGLING MOTORS CORPORATION, LTD.

       FOR THE SIX MONTHS ENDED 30 JUNE 2019
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
       (All amounts in thousands of RMB unless otherwise stated)

3      Financial risk management (continued)

3.1    Financial risk factors (continued)

(2)    Credit risk

       Credit risk arises from cash and cash equivalents, contractual cash flows of other financial
       instruments at fair value through comprehensive income and at fair value through profit or
       loss, favourable derivative financial instruments and deposits with banks and financial
       institutions, as well as credit exposures to customers, including outstanding receivables.

(i)    Risk management

       Credit risk is managed on a group basis. Risk control assesses the credit quality of the
       customer, taking into account its financial position, past experience and other factors.
       Individual risk limits are set based on internal or external ratings in accordance with limits set
       by the board. The compliance with credit limits by customers is regularly monitored by line
       management.

(ii)   Impairment of financial assets

       The Group has four types of financial assets that are subject to the expected credit loss
       model:
       trade receivables for sales of inventory and from the provision of services, and
       notes receivables carried at FVOCI
       other financial assets at amortised cost
       cash and cash equivalents.

       Trade receivables

       The Group applies the IFRS 9 simplified approach to measuring expected credit losses which
       uses a lifetime expected loss allowance for all trade receivables. To measure the expected
       credit losses, trade receivables have been grouped based on shared credit risk characteristics
       and the days past due.

       The expected loss rates are based on the payment profiles of sales over a period of 24 month
       before 31 December 2018 or 1 January 2018 respectively and the corresponding historical
       credit losses experienced within this period. The historical loss rates are adjusted to reflect
       current and forward-looking information on macroeconomic factors affecting the ability of the
       customers to settle the receivables. The Group has identified the GDP and the unemployment
       rate of China in which it sells its goods and services to be the most relevant factors, and
       accordingly adjusts the historical loss rates based on expected changes in these factors.

       On that basis, the loss allowance as at 30 June 2019 was determined as follows for trade
       receivables:




                                                                                                        51
         JIANGLING MOTORS CORPORATION, LTD.

         FOR THE SIX MONTHS ENDED 30 JUNE 2019
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
         (All amounts in thousands of RMB unless otherwise stated)

  3      Financial risk management (continued)

  3.1    Financial risk factors (continued)

  (2)    Credit risk (continued)

  (ii)   Impairment of financial assets (continued)

  (a)    As at 30 June 2019, receivables with amounts are subject to separate assessment for
         impairment as below:

                                                                 More than    More than      More than
                                                   1-30 days       30 days      60 days        90 days
         30 June 2019                      Current past due       past due     past due       past due      Total

         Expected loss rate                       -         -            -               -       100%          —
         Gross carrying amount – trade
           receivables                            -         -            -               -      8,633       8,633
         Loss allowance                           -         -            -               -      (8,633)    (8,633)


         As the above debtors involved in several lawsuits, the Group cannot be able to collect the
         amount under the original terms, a full provision for bad debts of that receivable were made.

  (b)    As at 30 June 2019, trade receivables have been grouped on the basis of shared credit risk
         characteristics and the days past due for the measurement of expected credit losses:

  i)     Notes receivables group

         As at 30 June 2019, all the notes receivables are bank acceptance bills of RMB6,500,000,
         which will be accepted mainly by large state-owned banks or national commercial banks. The
         Group believes that there is no significant credit losses due to the bank default.

ii)      Automobiles sales group

                                                                 More than More than More than
                                                    1-30 days      30 days  60 days   90 days
         30 June 2019                       Current past due      past due past due past due                Total

         Expected loss rate                  0.31%      0.36%        0.93%     15.58%         15.97%           —
         Gross carrying amount – trade
           receivables                    1,893,816    47,929        8,611      5,115         22,607 1,978,078
         Loss allowance                      (5,916)     (173)         (80)      (797)        (3,610)     (10,576)




                                                                                                                52
       JIANGLING MOTORS CORPORATION, LTD.

       FOR THE SIX MONTHS ENDED 30 JUNE 2019
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
       (All amounts in thousands of RMB unless otherwise stated)

3      Financial risk management (continued)


3.1    Financial risk factors (continued)


(2)    Credit risk (continued)


(ii)   Impairment of financial assets (continued)

(b)    As at 30 June 2019, trade receivables have been grouped on the basis of shared credit risk
       characteristics and the days past due for the measurement of expected credit losses
       (continued):

iii)   New energy automobiles subsidies group

                                                               More than More than   More than
                                                1-30 days        30 days   60 days     90 days
       30 June 2019                     Current past due        past due  past due    past due     Total

       Expected loss rate                 0.30%            -           -         -           -        —
       Gross carrying amount – trade
         receivables                    253,162            -           -         -           -   253,162
       Loss allowance                      (759)           -           -         -           -     (759)


iv)    Automobile parts group:

                                                          More than More than        More than
                                                1-30 days  30 days    60 days          90 days
       30 June 2019                     Current past due past due    past due         past due     Total

       Expected loss rate                 0.30%      0.30%         0.50%    0.60%       5.00%         —
       Gross carrying amount – trade
         receivables                    321,294      24,382        3,050      218       2,457    351,401
       Loss allowance                      (964)        (73)        (15)       (1)       (123)    (1,176)


       Trade receivables are written off when there is no reasonable expectation of recovery. Indicators
       that there is no reasonable expectation of recovery include, amongst others, the failure of a
       debtor to engage in a repayment plan with the Group, and a failure to make contractual
       payments.

       Impairment losses on trade receivables are presented as net impairment losses within operating
       profit. Subsequent recoveries of amounts previously written off are credited against the same
       line item.

       Financial assets at fair value through other comprehensive income

       Notes receivables carried at FVOCI are considered to have low credit risk, and the loss
       allowance recognised during the period was therefore limited to 12 months expected losses.
       Management considers ‘low credit risk’ for the instruments that the issuer has a strong capacity
       to meet its contractual cash flow obligations in the near term. JMC Heavy Duty Vehicle Co., Ltd.
       (“JMCH”), the subsidiary of the Group, held notes receivables for endorsement and presented as
       FVOCI at the statement of financial position. All the notes receivables are bank acceptable bills
       and considered as low credit risk financial instruments without significant credit risk because the

                                                                                                       53
       JIANGLING MOTORS CORPORATION, LTD.

       FOR THE SIX MONTHS ENDED 30 JUNE 2019
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
       (All amounts in thousands of RMB unless otherwise stated)

       banks have a strong capacity to meet its contractual cash flow obligations in the near term.

3      Financial risk management (continued)

3.1    Financial risk factors (continued)

(2)    Credit risk (continued)

(ii)   Impairment of financial assets (continued)

       Other financial assets at amortised cost

       Other financial assets at amortised cost include bank interest receivables and other
       receivables. The closing loss allowances for other financial assets as at 30 June 2019
       reconcile to the opening loss allowances as follows:

                                                                                    More than
                                                                     1-30 days         90 days
                                                                     past due:       past due:
                                                                     expected        expected
                                                                 credit losses   credit losses
                                                                in the next 12     throughout
                                                                       months          lifetime     Total
                                                                      RMB’000        RMB’000    RMB’000

       Opening loss allowance as at 1 January 2019                        240              203        443
       Increase in the allowance recognised in profit or loss
         during the period                                                 29               63         92
       Reverse of the allowance recognised in profit or loss
         during the period                                                (15)                -       (15)
       Closing loss allowance as at 30 June 2019                          254              266        520


       All the bank interest receivables are considered as low credit risk financial instruments without
       significant credit risk because the banks have a strong capacity to meet its contractual cash
       flow obligations in the near term.

       Net impairment losses on financial assets recognised in profit or loss

       Cash and cash equivalents

       While cash and cash equivalents are also subject to the impairment requirements of IFRS 9,
       the identified impairment loss was immaterial.




                                                                                                        54
      JIANGLING MOTORS CORPORATION, LTD.

      FOR THE SIX MONTHS ENDED 30 JUNE 2019
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
      (All amounts in thousands of RMB unless otherwise stated)

3     Financial risk management (continued)

3.1   Financial risk factors (continued)

(3)   Liquidity risk

      Cash flow forecasting is performed in the operating entities of the Group and aggregated by
      Finance Department. Finance Department monitors rolling forecasts of the Group's liquidity
      requirements to ensure it has sufficient cash to meet operational needs while maintaining
      sufficient headroom on its undrawn committed borrowing facilities (Note 23) at all times so that
      the Group does not breach borrowing limits or covenants (where applicable) on any of its
      borrowing facilities.

      The table below analyses the Group’s financial liabilities into relevant maturity groupings
      based on the remaining period at the balance sheet date to the contractual maturity date. The
      amounts disclosed in the table are the contractual undiscounted cash flows.

                                          Less than        Between 1        Between 2              Over
                                             1 year       and 2 years      and 5 years          5 years
                                           RMB’000         RMB’000         RMB’000          RMB’000

      At 30 June 2019
      Bank borrowings
       - Principals                              450              450             1,350            1,576
       - Interests                                56               49               106               47
      Trade and other payables
      (exclude payroll and welfare
      payables, other tax payables)      12,081,645                 -                 -                -
                                         12,082,151               499             1,456            1,623

      At 31 December 2018
      Bank borrowings
       - Principals                              449              449             1,348            1,798
       - Interests                                59               52               116               61
      Trade and other payables
      (exclude payroll and welfare
      payables, other tax payables)      11,658,259                 -                 -                -
                                         11,658,767               501             1,464            1,859

3.2   Capital risk management

      The Group’s objectives when managing capital are to safeguard the Group’s ability to continue
      as a going concern in order to provide returns for shareholders and benefits for other
      stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

      In order to maintain or adjust the capital structure, the Group may adjust the amount of
      dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets
      to reduce debt.

      Consistent with others in the industry, the Group monitors capital on the basis of the gearing
      ratio. This ratio is calculated as borrowings divided by total capital. Total capital is calculated
      as equity, as shown in the consolidated statement of financial position, plus borrowings. The
      Group aims to maintain the gearing ratio at a reasonable level.



                                                                                                       55
       JIANGLING MOTORS CORPORATION, LTD.

      FOR THE SIX MONTHS ENDED 30 JUNE 2019
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
       (All amounts in thousands of RMB unless otherwise stated)

3      Financial risk management (continued)

3.2    Capital risk management (continued)

       The gearing ratios at 30 June 2019 and 31 December 2018 were as follows:
                                                      30 June 2019           31 December 2018

       Total borrowings                                                 3,826                      4,044
       Total equity                                                10,408,831                 10,384,498
       Total capital                                               10,412,657                 10,388,542
       Gearing ratio                                                   0.04%                      0.04%

3.3    Fair value estimation
(1)    Fair value hierarchy
       This section explains the judgements and estimates made in determining the fair values of the
       financial instruments that are recognised and measured at fair value in the financial
       statements. The Group has classified its financial instruments into the three levels prescribed
       under the accounting standards:

      As at 30 June 2019                             Level 1          Level 2   Level 3              Total
      Financial assets
       Financial assets at FVOCI
         Notes receivables                                  -               -   223,907           223,907
       Total financial assets                               -               -   223,907           223,907
      Financial Liabilities
      Derivatives
          Foreign exchange forwards                         -           2,578          -            2,578
       Total financial liabilities                          -           2,578          -            2,578

      As at 31 December 2018                         Level 1          Level 2   Level 3              Total
      Financial liabilities
      Derivatives
         Foreign exchange forwards                          -            979           -              979
       Financial assets at FVOCI
         Notes receivables                                  -              -      6,246             6,246
      Total financial liabilities                           -            979      6,246             7,225

      There were no transfers between levels 1 and 2 for recurring fair value measurements during
      the year.

       The Group’s policy is to recognise transfers into and transfers out of fair value hierarchy levels
       as at the end of the reporting period.

       Level 1: The fair value of financial instruments traded in active markets (such as publicly
       traded derivatives, and equity securities) is based on quoted market prices at the end of the
       reporting period. The quoted market price used for financial assets held by the Group is the
       current bid price. These instruments are included in level 1.
       Level 2: The fair value of financial instruments that are not traded in an active market (for
       example, over-the-counter derivatives) is determined using valuation techniques which
       maximise the use of observable market data and rely as little as possible on entity-specific
       estimates. If all significant inputs required to fair value an instrument are observable, the
       instrument is included in level 2.
       Level 3: If one or more of the significant inputs is not based on observable market data, the
       instrument is included in level 3. This is the case for unlisted equity securities.



                                                                                                        56
      JIANGLING MOTORS CORPORATION, LTD.

      FOR THE SIX MONTHS ENDED 30 JUNE 2019
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
      (All amounts in thousands of RMB unless otherwise stated)

3     Financial risk management (continued)

3.3   Fair value estimation (continued)

(2)   Valuation techniques used to determine fair values

      Specific valuation techniques used to value financial instruments include:

      for foreign currency forwards - present value of future cash flows based on forward exchange
           rates at the balance sheet date
      for other financial instruments - discounted cash flow analysis.

(3)   Fair value measurements using significant unobservable inputs (level 3)

      The following table presents the changes in level 3 items for the periods ended 30 June 2019
      and 31 December 2018:

                                             Financial assets at
                                                FVPL- monetary        Financial assets at
                                            fund and structural            FVOCI- notes           Total
                                                       deposits              receivables

      Opening balance 1 January 2018                           -                      —              -
      Acquisitions                                   10,353,000                  102,802     10,455,802
      Disposals                                     (10,353,000)                 (96,556)   (10,449,556)
      Closing balance 31 December 2018                            -                6,246          6,246

      Opening balance 1 January 2019                          -                    6,246          6,246
      Acquisitions                                    4,700,000                  975,559      5,675,559
      Disposals                                      (4,700,000)                (757,898)    (5,457,898)
      Closing balance 30 June 2019                            -                  223,907        223,907



      There is no unrealised gains or losses recognised in profit or loss attributable to balances held
      at the end of the reporting period. The gains or losses arising from the holding of the financial
      assets measured at fair value during the financial period are recognised in other
      income/(expense)-net.

4     Critical accounting estimates and judgements

      Estimates and judgements are continually evaluated and based on historical experience and
      other factors, including expectations of future events that are believed to be reasonable under
      the circumstances.

      The Group makes estimates and assumptions concerning the future. The resulting accounting
      estimates will, by definition, seldom equal the related actual results. The estimates and
      assumptions that have a significant risk of causing a material adjustment to the carrying
      amounts of assets and liabilities within the next financial year are addressed below.




                                                                                                      57
      JIANGLING MOTORS CORPORATION, LTD.

      FOR THE SIX MONTHS ENDED 30 JUNE 2019
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
      (All amounts in thousands of RMB unless otherwise stated)

4     Critical accounting estimates and judgements (continued)

4.1   Critical accounting estimates

(1)   Measurement of expected credit losses

      The Group calculates expected credit losses according to the default risk exposure and
      expected credit loss rate, and determines the expected credit loss rate based on default
      probability and default loss rate. In determining the expected credit loss rate, the Group uses
      data such as internal historical credit loss experience, etc., and adjusts historical data based
      on current conditions and forward-looking information. When considering forward-looking
      information, the indicators used by the Group include the risk of economic downturn, the
      expected increase in unemployment rate, the external market environment, the technological
      environment and changes in customer conditions. The Group regularly monitors and reviews
      assumptions related to the calculation of expected credit losses. In the six months ended
      2019, there was no significant change in the above estimation techniques and key
      assumptions.

(2)   Impairment of long term assets

      The Group assesses whether there are indicators that the long term assets except for financial
      assets are impaired at each balance sheet date. When there are indicators that the carrying
      amounts of those long term assets are unrecoverable, an impairment test will be performed.

      When the carrying amount of the long term assets except for financial assets or the cash
      generating unit (“CGU”) is higher than its recoverable amount, which is the higher of an
      asset’s or CGU’s fair value less costs of disposal and its value in use, the impairment
      occurred.

      The Group determines the fair value less costs of disposal based on discounted future cash
      flow forecasts. The Group use the medium and long-term budgets of the business
      development plan approved by the management as a starting point when applying the present
      value technique, adjusting for market conditions.

      Key judgements are made on revenue growth rate, sales price growth rate, discount rate and
      long term growth rate when estimate the discounted future cash flow forecasts. The Group
      uses relevant accessible information, including the production and sales volumn, relevant
      market information which are based on the reasonable and supportable assumptions, to
      estimate the recoverable amount of those long term assets.

(3)   Taxation

      The Group is subject to various taxes in the PRC, including corporate income tax, value added
      tax and consumption tax. Significant judgment is required in determining the provision for
      these taxes. There are many transactions and calculations for which the ultimate tax
      determination is uncertain during the ordinary course of business. The Group recognises
      liabilities for anticipated tax issues based on estimates of whether additional taxes will be due.
      Where the final tax outcome of these matters is different from amounts that were initial
      recorded, such differences will impact the tax provisions in the period of final tax outcome.

      Deferred income tax assets relating to certain temporary differences are recognised as
      management considers it is probable that future taxable profit will be available against which
      the temporary differences can be utilised. Where the expectation is different from the original
      estimate, such differences will impact the recognition of deferred tax assets and tax in the
      periods in which such estimate is changed.

                                                                                                      58
      JIANGLING MOTORS CORPORATION, LTD.

      FOR THE SIX MONTHS ENDED 30 JUNE 2019
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
      (All amounts in thousands of RMB unless otherwise stated)

4      Critical accounting estimates and judgements (continued)

4.1    Critical accounting estimates (continued)

(3)    Taxation (continued)

       As at 30 June 2019, the Group recorded deferred tax assets of approximately
       RMB789,091,000. To the extent that it is probable that taxable profit will be available against
       which the deductible temporary differences will be utilised, deferred tax assets are
       recognised mainly for temporary differences arising from accrued expenses and retirement
       benefit obligations.

(4)    Provisions

       The Group provides statutory warranties on automobile and undertakes to repair or replace
       items that fail to perform satisfactorily based on certain pre-determined conditions.
       Management estimates the related warranty claims based on historical warranty claim
       information including level of repairs and returns as well as recent trends that might suggest
       that past cost information may differ from future claims.

       Factors that could impact the estimated claim information include the success of the Group’s
       productivity and quality controls, as well as parts and labour costs. Any increase or decrease
       in the provision would affect profit or loss in future years.

(5)    Write-down of inventory

       Inventories shall be measured at the lower of cost and the net realisable value. The net
       realisable value is estimated sales price less estimated cost to finish goods, estimated
       distribution expenses and related taxes in the daily operation.

       If management revises estimated sales price, estimated cost to finish goods, distribution
       expenses and related taxes, and revised sales price is lower than current sales price, or
       revised cost to finish goods, distribution expenses and related taxes are higher than those
       current estimation, the Group needs to consider increasing the write-down provision of the
       inventories.

       If the actual sales price, the cost to finish goods, distribution expenses and related taxes are
       higher or lower than the estimation of management, the Group will recognise the relevant
       influence in profit or loss in the relevant accounting period.

4.2    Critical accounting judgements

(1)    Classification of financial assets

       Significant judgements made by the Group in the classification of financial assets include
       business model and analysis on contractual cash flow characteristics.

       The Group determines the business model for financial assets management on the group
       basis, and factors to be considered include the methods for evaluating of the financial assets
       performance and reporting the financial assets performance to key management personnel,
       the risks relating to the financial assets performance and corresponding management
       methods, the ways in which related business management personnel are remunerated, etc.




                                                                                                      59
      JIANGLING MOTORS CORPORATION, LTD.

      FOR THE SIX MONTHS ENDED 30 JUNE 2019
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
      (All amounts in thousands of RMB unless otherwise stated)

4      Critical accounting estimates and judgements (continued)

4.2    Critical accounting judgements (continued)

(1)    Classification of financial assets (continued)

       When assessing whether contractual cash flow characteristics of financial assets are
       consistent with basic lending arrangement, key judgements made by the Group include: the
       possibility of changes in time schedule or amount of the principal during the lifetime due to
       reasons such as repayment in advance; whether interest only include time value of money,
       credit risks, other basic lending risks and considerations for costs and profits; whether the
       repayment in advance reflects the principal outstanding and corresponding interest and
       reasonable compensation paid for early termination of the contract.

(2)    Judgement on significant increase in credit risk

       Judgement made by the Group for significant increase in credit risk is mainly based on
       whether the overdue days exceed 30 days, or whether one or more of the following indicators
       change significantly: business environment of the debtor, internal and external credit rating,
       significant changes in actual or expected operating results, significant decrease in value of
       collateral or credit rate of guarantor, etc.

       Judgement made by the Group for the occurrence of credit impairment is mainly based on
       whether the overdue days exceed 90 days (i.e., a default has occurred), or whether one or
       more of the following conditions is/are satisfied: the debtor is suffering significant financial
       difficulties, the debtor is undergoing other debt restructuring, or the debtor probably goes
       bankrupt, etc.

(3)    Capitalisation of development costs

       Development costs are capitalised when the criteria in Note 2.9(2) are fulfilled. The
       assessments on whether the criteria for capitalisation of development have been met
       involves the judgements of the Group, including the technical feasibility of the project, the
       likelihood of the project generating sufficient future economic benefits and the timing to start
       capitalisation particularly. The Group makes the judgements on the capitalisation of
       development costs and recorded the process in meeting minutes based on feasibility analysis
       and regular review on the development project phase etc.

(4)    Timing of revenue recognition

       The Group sells automobiles and automobile parts to distributors and ending customers. As
       prescribed in the contract, control of automobiles is transferred to the customers when the
       good are out of the warehouse, while control of automobile parts is transferred when the
       parts are out of the warehouse or shipped to the designate destination based on the contract
       terms. The distributors and ending customers sign the delivery documents after they accept
       the products. Thereafter, the distributors or ending customers control the products and have
       the right to set the price, bear the risks of any obsolescence and loss of the products. The
       distributors and ending customers have obtained the control of the products after accepting
       the products. Therefore, the Group recognises the sales revenue of the products at the time
       when the delivery documents have been signed.




                                                                                                     60
      JIANGLING MOTORS CORPORATION, LTD.

      FOR THE SIX MONTHS ENDED 30 JUNE 2019
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
      (All amounts in thousands of RMB unless otherwise stated)

4      Critical accounting estimates and judgements (continued)

4.2    Critical accounting judgements (continued)

(5)    Sales with product warranties

       The Group provides statutory warranty for automobiles and automobile parts, and the period and
       terms of such warranty comply with the requirements of laws and regulations related to the
       products. The Group does not provide any significant additional service for this purpose, thus
       this kind of warranty does not identified as a separate performance obligation. In addition, the
       Group also offers additional warranty other than the requirements of laws and regulations, which
       identified as a separate performance obligation. The Group recognises the revenue of the
       additional warranty over time during the period when services are rendered.

5      Revenue and segment information

       The Group principally derives its turnover from the manufacture, assembly and sale of
       automobiles, related spare parts and components, and sales are made principally in the PRC.
       Revenue represents the total invoiced value of goods supplied to customers, net of value-added
       tax, returns and allowances.

       Management has determined the operating segment based on the reports reviewed by the
       strategic executive committee that are used to make strategic decisions. The committee
       considers the business from the product perspective as all the Group’s sales are made in the
       PRC. Since the Group principally derives its turnover from the sale of automobiles, the
       committee considers the automobile business as a whole in allocating resources and assessing
       performance. Accordingly, no segment information is presented.

      The revenue by product of the whole business as follows:

                                                      Six months ended 30 June 2019
                                    Automobiles      Automobile Maintenance Materials and          Total
                                                          parts     services       others

      Main business income            12,327,573       1,168,533     43,900             -    13,540,006
        -Recognition at a point
          in time                     12,327,573       1,168,533          -            -     13,496,106
        -Recognition over time                 -               -     43,900            -         43,900
      Other business income                    -               -          -      181,948        181,948
                                      12,327,573       1,168,533     43,900      181,948     13,721,954

                                                      Six months ended 30 June 2018
                                    Automobiles      Automobile Maintenance Materials and          Total
                                                          parts     services       others

      Main business income            12,753,388       1,370,722     33,762             -    14,157,872
         -Recognition at a point
           in time                    12,753,388       1,370,722          -            -     14,124,110
         -Recognition over time                -               -     33,762            -         33,762
      Other business income                    -               -          -      129,625        129,625
                                      12,753,388       1,370,722     33,762      129,625     14,287,497

      As at 30 June 2019, the expected revenue of unsatisfied performance obligations from signed
      contract is RMB103,676,000. The Group will recognise the revenue from 2019 to 2022.


                                                                                                  61
    JIANGLING MOTORS CORPORATION, LTD.

    FOR THE SIX MONTHS ENDED 30 JUNE 2019
    NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
    (All amounts in thousands of RMB unless otherwise stated)

5   Revenue and segment information (continued)

    The Group has recognised the following assets and liabilities related to contracts with customers:

                                                                 30 June 2019      31 December 2018

    Contract liabilities
       Automobiles and automobile parts                                139,734                212,246
       Maintenance services and additional warranty                    103,676                 92,838
    Total contract liabilities                                         243,410                305,084
    Less: non-current liabilities                                      (54,499)               (38,382)
    Total current contract liabilities                                 188,911                266,702


6    Expenses by nature

                                                                Six months ended 30 June
                                                                      2019                       2018

     Changes in inventories of finished goods and                    101,187                 (53,018)
       work in progress
     Raw materials and consumables used                           10,151,019               10,805,572
     Employee benefit expense (Note 7)                             1,246,623                1,118,958
     Depreciation of PPE (Note 12, 28)                               475,243                  463,097
     Repairs and maintenance expenditure on PPE                       40,473                   53,666
     Transportation expenses                                         332,654                  320,658
     Amortisation of lease prepayment (Note 13, 28)                    7,787                    7,787
     Amortisation of intangible assets (Note 14, 28)                  35,164                   25,814
     Provision of statutory warranty (Note 25)                       159,699                  123,718
     Design fees                                                     243,684                  250,316
     Sales promotion expenses                                        106,691                   94,463
     Advertising and new product planning expenses                   228,204                   89,635
     Provision for inventories write-down                              5,310                    5,195
     Others                                                          530,691                  563,327
     Total cost of sales, distribution expenses and
       administrative expenses                                    13,664,429               13,869,188




                                                                                                  62
      JIANGLING MOTORS CORPORATION, LTD.

      FOR THE SIX MONTHS ENDED 30 JUNE 2019
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
      (All amounts in thousands of RMB unless otherwise stated)

7      Employee benefit expense

                                                                  Six months ended 30 June
                                                                        2019                    2018

       Wages and salaries                                            907,635                812,503
       Social security costs                                         119,810                109,307
       Pension costs  defined contribution plans                     139,569                138,023
       Others                                                         79,609                 59,125
                                                                   1,246,623              1,118,958

       The employees of the Group participated in a retirement benefit plan organised by the
       municipal and provincial governments under which the Group was required to make defined
       contributions monthly to this plan.

       In addition, the Group also paid certain pension subsidies to certain retired employees. In
       accordance with the Group’s early retirement programs, the Group was also committed to
       make periodic benefit payments to certain early-retired employees until they reach their legal
       retirement ages.

8      Other income
                                                                  Six months ended 30 June
                                                                        2019                    2018

       Government grants (a)                                         230,279                 159,254
       Net fair value gains/(losses) on derivative
         financial instruments                                        (3,557)                   6,915
       Net loss on disposal of derivative financial
         instruments                                                  (4,940)                (12,620)
       Others                                                         13,823                  41,811
                                                                     235,605                 195,360

(a)    In the six months ended 2019, the Group received grants of approximately
       RMB230,279,000, mainly from Economic Development District Administrative Commission
       of Xiaolan and the Finance Bureau of Economic, Transformation and Comprehensive
       Reform Demonstration Zone Administrative Commission of Shanxi. Those grants were
       income related government grants to support the Group’s operation.

9      Finance income and expenses
                                                                  Six months ended 30 June
                                                                        2019                    2018
       (a) Finance income

       Interest income on bank deposits                               87,147                  95,632
       Interest income on credit sales                                 5,618                  11,022
                                                                      92,765                 106,654

       (b) Finance expenses

       Interest expense on bank loans                                   (106)                  (107)
       Bank charges and others                                        (2,518)                 (3,155)
                                                                      (2,624)                (3,262)

       Net finance income
                                                                      90,141                 103,392
                                                                                                    63
      JIANGLING MOTORS CORPORATION, LTD.

      FOR THE SIX MONTHS ENDED 30 JUNE 2019
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
      (All amounts in thousands of RMB unless otherwise stated)

10    Taxation

(i)   Corporate income tax (“CIT”)

      As the Company is qualified as a high-tech enterprise and approved by the relevant tax
      authorities in 2018, the Company is entitled to a preferential CIT rate of 15% from 2018 to
      2020 (2018: 15%). The CIT rates of JMCH, Jiangling Motor Sales Co., Ltd. (“JMCS”),
      Shenzhen Fujiang New Energy Automobile Sales Co., Ltd. (“SZFJ”), Guangzhou Fujiang New
      Energy Automobile Sales Co., Ltd. (“GZFJ”) and Xiamen Fujiang New Energy Automobile
      Sales Co., Ltd. (“XMFJ”), the subsidiaries of the Company, are 25%.

      The amounts of income tax expense charged to profit or loss represented:

                                                                  Six months ended 30 June
                                                                        2019               2018

      Current tax                                                          41              7,428
      Deferred tax (Note 17)                                         (46,343)              19,976
                                                                     (46,302)             27,404

      The difference between the actual income tax charge in profit or loss and the amounts which
      result from applying the enacted tax rate to profit before income tax can be reconciled as
      follows:

                                                                  Six months ended 30 June
                                                                        2019               2018

      Profit before tax                                               12,560             346,355

      Tax calculated at tax rates applicable to profits in
        the respective companies                                      (38,028)            29,341
      Tax concessions                                                      (9)               (69)
      Expenses not deductible for tax purposes                            294                297
      R&D costs deduction                                             (64,124)           (47,715)
      Income not subject to tax                                          (882)              (391)
      Effect of different tax rates applied for the periods
        in which the temporary differences are
        expected to reverse                                           18,925               10,116
      Utilisation of previously temporary differences for
        which no deferred income tax asset was
        recognised                                                          -             (1,764)
      Temporary differences for which no deferred
        income tax asset was recognised                                4,195                    -
      Tax losses for which no deferred income tax
         asset was recognised                                          33,327             37,589
      Tax charge                                                      (46,302)            27,404




                                                                                                64
        JIANGLING MOTORS CORPORATION, LTD.

        FOR THE SIX MONTHS ENDED 30 JUNE 2019
        NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
        (All amounts in thousands of RMB unless otherwise stated)

10      Taxation (continued)

(ii)    Value-added tax (“VAT”)

        Pursuant to the No.39, 2019 notice jointly issued from the Ministry of Finance, the State
        Administration of Taxation, the general administration of customs, the Group's taxable
        products sales income applicable VAT rate is 13% from 1 April 2019, while the VAT rate was
        16% before then. The VAT rate applicable to the Group's transportation business is 9% from 1
        April 2019, while the VAT rate was 10% before then.


(iii)   Consumption Tax (“CT”)

        The Group’s automobile sale is subject to CT at 3%, 5% or 9% on the selling price of goods.

11      Earnings per share

        Basic earnings per share is calculated by dividing the profit attributable to shareholders of the
        Company by the weighted average number of ordinary shares in issue during the year.

                                                                     Six months ended 30 June
                                                                           2019               2018

        Profit attributable to shareholders of the
         Company                                                          58,862                318,951
        Weighted average number of ordinary shares in
          issue (‘000)                                                  863,214                863,214
        Basic earnings per share (RMB)                                      0.07                   0.37

        Diluted earnings per share equals to basic earnings per share as there were no dilutive
        potential ordinary shares outstanding during the year ended 30 June 2019.




                                                                                                        65
     JIANGLING MOTORS CORPORATION, LTD.

     FOR THE SIX MONTHS ENDED 30 JUNE 2019
     NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
     (All amounts in thousands of RMB unless otherwise stated)

12   Property, plant and equipment

                                                                  Plant and         Motor                      Electronic and    Assets under
                                                   Buildings     Machinery     Automobiles        Moulds     other equipment     constructions          Total

     At 1 January 2018
     Cost                                          2,084,217      3,954,028        280,071      2,411,080           3,137,100         678,684      12,545,180
     Accumulated depreciation and impairment        (414,792)    (1,935,093)      (144,009)    (1,608,649)         (1,727,441)          (1,108)    (5,831,092)
     Net book amount                               1,669,425      2,018,935        136,062        802,431           1,409,659         677,576       6,714,088
     Year ended 31 December 2018
     Opening net book amount                       1,669,425      2,018,935        136,062        802,431          1,409,659           677,576      6,714,088
     Additions                                              -             -               -             -                   -        1,214,241      1,214,241
     Transfers                                       101,202         97,601         21,936        176,549            199,671          (596,959)             -
     Disposals                                           (56)        (1,164)         (1,188)       (5,986)              (688)               (7)        (9,089)
     Reclassification                                  2,965       (143,415)        29,462          3,871            107,117                 -              -
     Other deductions                                       -       (10,119)               -             -            (2,647)          (32,151)       (44,917)
     Impairment charge                                      -        (2,832)           (478)             -            (3,478)             (355)        (7,143)
     Depreciation charge                             (51,781)      (246,570)       (37,514)      (252,144)          (337,879)                -       (925,888)
     Closing net book amount                       1,721,755      1,712,436        148,280        724,721          1,371,755         1,262,345      6,941,292
     At 31 December 2018
     Cost                                          2,188,306      3,837,053        326,799      2,556,744           3,376,670        1,263,392     13,548,964
     Accumulated depreciation and impairment        (466,551)    (2,124,617)      (178,519)    (1,832,023)         (2,004,915)           (1,047)   (6,607,672)
     Net book amount                               1,721,755      1,712,436        148,280        724,721           1,371,755        1,262,345      6,941,292
     Six months ended 30 June 2019
     Opening net book amount                       1,721,755      1,712,436        148,280        724,721           1,371,755        1,262,345      6,941,292
     Additions                                              -             -                -            -                    -         669,832        669,832
     Transfers                                            567        49,482          13,598        80,843             107,046        (251,536)               -
     Disposals                                              -        (4,768)        (1,798)              -              (374)              (10)        (6,950)
     Other deductions                                 (1,986)        (5,481)               -             -                 (5)           (152)         (7,624)
     Impairment charge (Note 28)                            -        (2,662)            (91)             -              (373)                 -        (3,126)
     Depreciation charge (Note 6, 28)                (27,016)     (121,043)        (18,623)     (134,848)           (173,713)                 -     (475,243)
     Closing net book amount                       1,693,320      1,627,964        141,366        670,716           1,304,336        1,680,479      7,118,181
     At 30 June 2019
     Cost                                          2,186,887       3,819,204        333,327      2,626,163          3,460,597        1,681,171     14,107,349
     Accumulated depreciation and impairment       (493,567)     (2,191,240)      (191,961)    (1,955,447)        (2,156,261)            (692)     (6,989,168)
     Net book amount                               1,693,320       1,627,964        141,366        670,716          1,304,336        1,680,479       7,118,181




                                                                                                                                                                 66
       JIANGLING MOTORS CORPORATION, LTD.

       FOR THE SIX MONTHS ENDED 30 JUNE 2019
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
       (All amounts in thousands of RMB unless otherwise stated)

12     Property, plant and equipment (continued)

       For the six months ended 30 June 2019, depreciation expense of approximately
       RMB407,308,000 (the six months ended 30 June 2018: RMB404,610,000) has been charged in
       cost of sales, RMB1,639,000 (the six months ended 30 June 2018: RMB1,568,000) in
       distribution costs and RMB66,296,000 (the six months ended 30 June 2018: RMB56,919,000) in
       administrative expenses.

(i)    Temporarily idle property, plant and equipment

       As at 30 June 2019, property, plant and equipment with book value of approximately RMB
       13,170,000 (cost of RMB132,424,000) (31 December 2018: book value of approximately RMB
       2,497,000 and cost of RMB56,727,000) were temporarily idle due to product process adjustment
       and other reasons.The specific analysis is as follows:

                                                          Accumulated                                 Net
                                               Cost       depreciation        Impairment      book amount

       Plant and Machinery                 110,939             (89,092)         (11,503)            10,344
       Motor Automobiles                     2,418              (1,947)             (98)               373
       Electronic and other equipment       19,067             (15,564)          (1,050)             2,453
                                           132,424            (106,603)         (12,651)            13,170

(ii)   Property, plant and equipment not yet obtained proper certificate

                                                                                Reasons for not completing
                                                      Net book amount                    proper certificate

       Buildings                                               882,715        Procedure not yet completed

13     Lease prepayment

       Lease prepayment represents the Group’s interests in land which are held on leases of 50
       years. The movement is as follows:

                                                                   30 June 2019        31 December 2018

       Opening net book amount                                             601,260                 616,834
       Additions                                                                 -                        -
       Amortisation charge (Note 6, 28)                                     (7,787)                (15,574)

       Closing net book amount                                             593,473                 601,260

       Cost                                                                 751,626                751,626
       Accumulated amortisation                                           (158,153)               (150,366)

       Net book amount                                                     593,473                 601,260

       Amortisation expense was charged in administrative expenses.




                                                                                                      67
     JIANGLING MOTORS CORPORATION, LTD.

     FOR THE SIX MONTHS ENDED 30 JUNE 2019
     NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
     (All amounts in thousands of RMB unless otherwise stated)

14    Intangible assets

                                                          Non-patent                                       After-sale
                                                          technology        Software    Goodwill    management model     Other           Total


      Year ended 31 December 2018
      Opening net book amount                                146,556          47,842       3,462                     -        -     197,860
      Addition                                                71,814          32,152           -                     -        -     103,966
      Disposals                                                    -             (63)          -                     -        -         (63)
      Amortisation charge                                    (38,952)        (16,785)          -                     -        -     (55,737)
      Closing net book amount                                179,418          63,146       3,462                     -        -     246,026


      At 31 December 2018
      Cost                                                   254,412         152,014      89,028               36,978    1,649      534,081
      Accumulated amortisation and impairment                    (74,994)    (88,868)    (85,566)             (36,978)   (1,649)   (288,055)
      Net book amount                                        179,418          63,146       3,462                     -        -     246,026


      Six months ended 30 June 2019
      Opening net book amount                                179,418          63,146       3,462                     -        -     246,026
      Addition                                                 77,398            152           -                     -        -       77,550
      Disposals                                                     -              -           -                     -        -            -
      Amortisation charge (Note 6, 28)                       (25,002)       (10,162)           -                     -        -     (35,164)
      Closing net book amount                                231,814          53,136       3,462                     -        -     288,412


      At 30 June 2019
      Cost                                                   331,809        152,165       89,028                36,978   1,649       611,629
      Accumulated amortisation and impairment                (99,995)       (99,029)    (85,566)              (36,978)   (1,649)   (323,217)
      Net book amount                                        231,814          53,136       3,462                     -        -     288,412




                                                                                                                                    68
        JIANGLING MOTORS CORPORATION, LTD.

        FOR THE SIX MONTHS ENDED 30 JUNE 2019
        NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
        (All amounts in thousands of RMB unless otherwise stated)

14      Intangible assets (continued)

(i)     For six months ended 30 June 2019, amortisation expense of approximately RMB34,745,000
        (the six months ended 30 June 2018: RMB25,356,000) was charged in administrative
        expenses, RMB249,000 (the six months ended 30 June 2018: RMB288,000) in cost of sales
        and RMB170,000 (the six months ended 30 June 2018: RMB170,000) in distribution costs.


(ii)    Development cost of approximately RMB77,398,000 (the six months ended 30 June
        2018:RMB19,693,000) were capitalised by the Group during the six months ended 30 June
        2019.

(iii)   Impairment test for goodwill

        Goodwill arises on the acquisition of a subsidiary, and is monitored by the management at the
        cash generating unit level. The goodwill is allocated to the following cash generating unit
        (“CGU”):


                    31 December 2018            Addition            Impairment         30 June 2019

        JMCH                       3,462                 -                   -                 3,462

        The recoverable amount of the CGU is determined based on fair value less costs of disposal.
        These calculations use after-tax cash flow projections based on financial budgets approved by
        management covering a seven-year period according to the medium and long-term budgets for
        the business development plan approved by the management. Adjustments for market
        conditions are also considered for the forecast. Cash flows beyond the seven-year period are
        extrapolated using the estimated long term growth rate stated below. The long term growth rate
        does not exceed the average growth rate for the heavy duty automobile business in which the
        CGU operates.




                                                                                                69
        JIANGLING MOTORS CORPORATION, LTD.

        FOR THE SIX MONTHS ENDED 30 JUNE 2019
        NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
        (All amounts in thousands of RMB unless otherwise stated)

14      Intangible assets (continued)

(iii)   Impairment test for goodwill (continued)

        In the opinion of management, the recoverable amount of the CGU will not be lower than the
        carrying amount even if taking into account a reasonably possible change in the key
        assumptions on the calculation of recoverable amount of the CGU.

        The fair value measurement is categorised in level 3 of the fair value hierarchy.

15      Financial instruments by category

        The Group holds the following financial instruments:

        Financial assets                              Notes         30 June 2019      31 December 2018

        Financial assets at amortised cost
          Trade receivables                               19           2,570,128              2,674,650
          Notes receivables                               19               6,500                626,509
          Other receivables                               19              89,423                 84,588
          Interest receivables                            19              29,683                 37,923
          Cash and cash equivalents                       20           8,367,457              7,616,880
        Financial assets at fair value through
          other comprehensive income
          Notes receivables                                              223,907                 6,246
          Derivative financial instruments                                     -                   979
                                                                      11,287,098            11,047,775

        Financial liabilities                         Notes         30 June 2019      31 December 2018

        Liabilities at amortised cost
          Trade and other payables(exclude
             payroll and welfare payables, other
             tax payables)                                26          12,081,645            11,658,259
          Borrowings                                      23               3,826                 4,044
        Derivative financial instruments                                   2,578                     -
                                                                      12,088,049            11,662,303

        The Group’s exposure to various risks associated with the financial instruments is discussed in
        Note 3. The maximum exposure to credit risk at the end of the reporting period is the carrying
        amount of each class of financial assets mentioned above.




                                                                                                  70
       JIANGLING MOTORS CORPORATION, LTD.

       FOR THE SIX MONTHS ENDED 30 JUNE 2019
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
       (All amounts in thousands of RMB unless otherwise stated)

16a    Subsidiaries

       As at the date of this report, the Group has the following subsidiaries:

                             Place and date of           Percentage of
       Entity                    incorporation      equity interest held            Principal activities

       JMCH                      Taiyuan, PRC                                   Manufacture and sale of
                               /8 January 2013                      100%    automobiles and spare parts
       JMCS                    Nanchang, PRC                                    Sale of automobiles and
                              /11 October 2013                      100%                    spare parts
       SZFJ                    Shenzhen, PRC                                    Sale of automobiles and
                                   /3 May 2018                      100%                    spare parts
       GZFJ                   Guangzhou, PRC                                    Sale of automobiles and
                                 /15 June 2018                      100%                    spare parts
       XMFJ                       Xiamen, PRC                                   Sale of automobiles and
                                 /20 June 2018                      100%                    spare parts



16b    Investments accounted for using the equity method

(i)    Summarised financial information for immaterial associate

       The amount recognised in the consolidated statement of financial position was as follow:

                                                                   30 June 2019     31 December 2018

       Associate                                                         40,446                   40,112

       The amount recognised in the consolidated statement of comprehensive income was as follow:

                                                                     Six months ended 30 June
                                                                          2019                     2018

       Share of profit                                                     334                     2,611

       The Company holds 19.15% interest of Hanon Systems (Nanchang) Co., Ltd. (“Hanon
       Systems”) and the investment is accounted for using the equity method of accounting.

(ii)   Reconciliation of summarised financial information of the associate

                                                                      Six months ended 30 June
                                                                           2019                    2018

       At beginning of the year                                         209,460                  197,774
       Profit for the year                                                1,742                   13,634
       Dividends distributed                                                  -                        -
       At end of the year                                               211,202                  211,408
       Interest in associate                                             19.15%                   19.15%
       Carrying value                                                    40,446                   40,485




                                                                                                    71
     JIANGLING MOTORS CORPORATION, LTD.

     FOR THE SIX MONTHS ENDED 30 JUNE 2019
     NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
     (All amounts in thousands of RMB unless otherwise stated)

17   Deferred income tax

                                                                      30 June 2019           31 December 2018

     Deferred tax assets                                                    1,016,943                         926,630
     Deferred tax liabilities-can be offset                                 (227,852)                       (183,534)
     Deferred tax liabilities-cannot be offset                                (25,676)                       (26,024)

     Deferred tax assets-net                                                  789,091                           743,096
     Deferred tax liabilities-net                                             (25,676)                          (26,024)

     The gross movement on the deferred income tax account is as follows:

                                                                      30 June 2019           31 December 2018

     At beginning of the year                                                  717,072                          663,517
     Credited to profit or loss (Note 10(i))                                    46,343                           52,407
     Credited to other comprehensive income
      (Note 10(i))                                                                   -                            1,148
     At end of the year                                                        763,415                          717,072

     The movement in deferred income tax assets and liabilities during the year, without taking into
     consideration the offsetting of balances within the same tax jurisdiction, is as follows:

                                                               Accrued
                                                             expenses
                                                                   and Amortization
                                 Provision for Retirement     provision     of non-
                                impairment of    benefits for statutory   patented           Tax
     Deferred tax assets               assets obligation      warranty  technology        losses     Others         Total

     At 1 January 2018                12,149         13,543     723,387          4,505         -        4,293     757,877
     Credited/(charged) to
       profit or loss                  4,549          1,405     (18,816)         4,869 178,791          (3,193) 167,605
     Credited to other
       comprehensive income                -          1,148           -              -       -              -       1,148
     At 31 December 2018              16,698         16,096     704,571          9,374 178,791          1,100     926,630
     (Charged) /credited to
       profit or loss                 (2,528)         (397)      55,467          3,125    26,594        8,052      90,313
     Credited to other
       comprehensive income                -               -          -              -         -            -         -
     At 30 June 2019                  14,170         15,699     760,038         12,499   205,385        9,152 1,016,943

                                     Amortisation                                         Forwards
                                     of intangible            PPE          Fair value     exchange
     Deferred tax liabilities              assets      depreciation             gains      contracts                Total

     At 1 January 2018                    (3,545)          (64,079)         (26,736)                -            (94,360)
     (Charged)/credited to
       profit or loss                       (841)         (114,922)             712           (147)             (115,198)
     At 31 December 2018                  (4,386)         (179,001)         (26,024)          (147)             (209,558)
     (Charged)/credited to
                                          (1,309)          (43,156)              348               147           (43,970)
       profit or loss
     At 30 June 2019                      (5,695)         (222,157)         (25,676)                 -          (253,528)




                                                                                                                    72
     JIANGLING MOTORS CORPORATION, LTD.

     FOR THE SIX MONTHS ENDED 30 JUNE 2019
     NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
     (All amounts in thousands of RMB unless otherwise stated)



17   Deferred income tax (continued)

     The analysis of deferred tax assets and deferred tax liabilities is as follows:

                                                                 30 June 2019      31 December 2018

     Deferred tax assets:
     –Deferred tax asset to be recovered after
        more than 12 months                                           233,281               203,802
     –Deferred tax asset to be recovered
        within 12 months                                              783,661               722,828
                                                                    1,016,942               926,630

                                                                 30 June 2019      31 December 2018

     Deferred tax liabilities:
     –Deferred tax liabilities to be recovered
        after more than 12 months                                    (214,572)              (182,373)
     –Deferred tax liabilities to be recovered
        within 12 months                                              (38,956)               (27,185)
                                                                     (253,528)              (209,558)

     Deductible temporary differences and tax losses which no deferred income tax assets were
     recognised were as follows:

                                                                 30 June 2019      31 December 2018

     Deductible temporary differences                                 251,214               234,433
     Tax losses                                                       749,897               639,805
                                                                    1,001,111               874,238

     The expiry years of the tax losses are as follows:

                                                                 30 June 2019      31 December 2018

     2019                                                              36,772                36,772
     2020                                                              72,470                72,470
     2021                                                             115,820               115,820
     2022                                                             150,713               150,713
     2023                                                             240,815               264,030
     2024                                                             133,307                     -
                                                                      749,897               639,805




                                                                                                 73
     JIANGLING MOTORS CORPORATION, LTD.

     FOR THE SIX MONTHS ENDED 30 JUNE 2019
     NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
     (All amounts in thousands of RMB unless otherwise stated)


18   Inventories
                                                                 30 June 2019     31 December 2018

     Raw materials                                                   1,305,690            1,553,135
     Work in progress                                                  205,122              211,490
     Finished goods                                                    662,464              757,729
                                                                     2,173,276            2,522,354

     For the six months ended 30 June 2019, the cost of inventories recognised as expenses and
     included in cost of sales amounted to approximately RMB10,252,206,000 (the six months
     ended 30 June 2018: RMB10,752,554,000).

     Movement on the provision for inventories write-down is as follows:

                                                                 30 June 2019     31 December 2018

     At beginning of the year                                         (76,815)             (45,130)
     Provision for inventories write-down (Note
       28)                                                             (5,310)             (53,651)
     Inventories written off during the year as
       uncollectible                                                   21,192               21,966
     At end of the year                                               (60,933)             (76,815)

19   Trade and other receivables and prepayments

                                                                 30 June 2019     31 December 2018

     Trade receivables                                               2,591,273            2,696,928
     Less: Provision for impairment of trade
              receivables                                              (21,145)             (22,278)
     Trade receivables – net                                        2,570,128            2,674,650
     Notes receivables                                                    6,500             626,509
     Other receivables                                                   89,943              85,031
     Less: Provision for impairment of other
              receivables                                                (520)                 (443)
     Other receivables – net                                           89,423               84,588
     Prepayments                                                     1,192,605            1,158,303
     -Material payment in advance                                      555,268              525,777
     -Advance payment of taxes and surcharges                          637,337              632,048
     -Others                                                                 -                  478
     Deductable VAT input tax                                          166,387               96,311
     Interest receivables                                               29,683               37,923
                                                                     4,054,726            4,678,284

     Refer to Note 31 for details of receivables from related parties.

     The carrying amounts of trade and other receivables approximate their fair values.




                                                                                                74
      JIANGLING MOTORS CORPORATION, LTD.

      FOR THE SIX MONTHS ENDED 30 JUNE 2019
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
      (All amounts in thousands of RMB unless otherwise stated)

19    Trade and other receivables and prepayments (continued)

      Movement on the provision for impairment of trade and other receivables is as follows:

                                                            30 June 2019          31 December 2018

      At beginning of the year                                         (22,721)                (21,674)
      Provision for receivables impairment
        (Note 28)                                                        1,056                  (1,089)
      Receivables written off during the year as
        uncollectible                                                        -                      42
      At end of the year                                               (21,665)                (22,721)


      The other classes within trade and other receivables do not contain impaired assets.

      The maximum exposure to credit risk at the reporting date is the carrying value of each class of
      receivable mentioned above. The Group does not hold any collateral as security.

20    Cash and cash equivalents

                                                                  30 June 2019    31 December 2018

      Cash at bank and in hand                                       6,655,457               2,016,859
      Short-term bank deposits (a)                                   1,712,000               5,600,021
                                                                     8,367,457               7,616,880

      As at 30 June 2019 and 31 December 2018, all bank deposits are in RMB.

      As at 30 June 2019, the Group had cash of approximately RMB577,916,000 (2018:
      RMB833,617,000) deposited in Jiangling Motor Group Finance Company (“JMCF”) (Note 31
      (ix)). JMCF, a non-bank financial institution, is a subsidiary of JMCG.


(a)   Short-term bank deposits can be withdrawn at the discretion of the Group without any
      restriction.




                                                                                                   75
     JIANGLING MOTORS CORPORATION, LTD.

     FOR THE SIX MONTHS ENDED 30 JUNE 2019
     NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
     (All amounts in thousands of RMB unless otherwise stated)



21   Share capital

                                     Number of                     Tradable shares
                                        shares             “A” shares               “B” shares     Total
                                    (thousands)      Restricted      Non-restricted

     Year ended 31 December 2018
     Balance at 1 January 2018          863,214             907            518,307       344,000     863,214
     Transfer                                 -            (120)               120             -            -
     Balance at 31 December 2018        863,214             787            518,427       344,000     863,214

     Six months ended 30 June
       2019
     Balance at 1 January 2019          863,214             787            518,427       344,000     863,214
     Transfer                                  -              -                  -             -            -
     Balance at 30 June 2019            863,214             787            518,427       344,000     863,214


     All the “A” and “B” shares are registered, issued and fully paid shares of RMB1 each.

     All the “A” and “B” shares rank pari passu in all respects.

     After the implementation of the share reform scheme on 13 February 2006, 787,000 shares
     were still restricted as at 30 June 2019.




                                                                                                        76
      JIANGLING MOTORS CORPORATION, LTD.

      FOR THE SIX MONTHS ENDED 30 JUNE 2019
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
      (All amounts in thousands of RMB unless otherwise stated)

22    Other reserves

                                                  Statutory
                                            surplus reserve
                                                    fund (a)      Reserve fund     Others          Total

      At 1 January 2018                             431,607            18,627         680       450,914
      Other comprehensive income
      -Remeasurements of retirement
        benefit obligation, net of tax                     -                 -     (3,442)       (3,442)

      At 31 December 2018                           431,607            18,627      (2,762)      447,472
      Other comprehensive income
      -Remeasurements of retirement
        benefit obligation, net of tax                     -                 -              -            -

      At 30 June 2019                               431,607            18,627      (2,762)      447,472

(a)   In accordance with the relevant laws and regulations in the PRC and Articles of Association of
      the Company, it is required to appropriate 10% of its annual net profit, after offsetting any prior
      years’ losses as determined under the Accounting Standards for Business Enterprises in the
      PRC, to the statutory surplus reserve fund before distributing the net profit. When the balance
      of the statutory surplus reserve fund reaches 50% of the Company’s share capital, any further
      appropriation is at the discretion of shareholders. The statutory surplus reserve fund can be
      used to offset prior years’ losses, if any, and may be converted into share capital by issuing
      new shares to shareholders in proportion to their existing shareholding or by increasing the par
      value of the shares currently held by them. The fund is non-distributable except for liquidation.

      As the balance of the statutory surplus reserve fund has reached 50% of the Company’s share
      capital, no further appropriations to the statutory surplus reserve fund were provided for the six
      months ended 30 June 2019.

23    Borrowings

                                                                  30 June 2019      31 December 2018

      Current
      Bank borrowings - guaranteed (a)                                     450                      449

      Non-current
      Bank borrowings - guaranteed (a)                                    3,376                   3,595

      Total borrowings                                                    3,826                   4,044

(a)   Bank borrowings of USD557,000 (equivalent to approximately RMB3,826,000) (2018:
      USD589,000 equivalent to approximately RMB4,044,000) were guaranteed by JMCF (Note 31
      (iii)).

      The interest rate of bank borrowings is 1.50% per annum (2018: 1.50%).

      The fair value of borrowings approximates their carrying values.




                                                                                                    77
     JIANGLING MOTORS CORPORATION, LTD.

     FOR THE SIX MONTHS ENDED 30 JUNE 2019
     NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
     (All amounts in thousands of RMB unless otherwise stated)

23   Borrowings (continued)

     The maturity of non-current borrowings is as follows:

                                                                 30 June 2019     31 December 2018

     Between 1 and 2 years                                                450                   449
     Between 2 and 5 years                                              1,350                 1,348
     Over 5 years                                                       1,576                 1,798
                                                                        3,376                 3,595

     The Group has the following undrawn borrowing facilities:

                                                                 30 June 2019     31 December 2018
     Fixed rate
     - Expiring within one year                                     1,973,097             2,270,784

24   Retirement benefits obligations

     The amount of early retirement and supplemental benefit obligations recognised in the
     consolidated statement of financial position is as follows:

                                                                 30 June 2019     31 December 2018

     Present value of defined benefits obligations                      65,372               68,020

     The movement of early retirement and supplemental benefit obligations for the year ended 31
     December 2018 is as follows:

                                                                 30 June 2019     31 December2018

     At beginning of the year                                           68,020               59,184
     For the year
     -Current service cost                                                   -                1,315
     -Interest cost                                                          -                2,410
     -Payment                                                           (2,648)              (4,954)
     -Past service cost from the change of plan                              -                2,386
      -Actuarial loss                                                        -                7,679
     At end of the year                                                 65,372               68,020

     Current                                                             4,595                4,595
     Non-current                                                        60,777               63,425
                                                                        65,372               68,020

     The material actuarial assumptions used in valuing these obligations are as follows:
                                                             30 June 2019            31 December 2018
     Discount rate adopted                                              ——                     3.5%
     Inflation rate adopted                                             ——                       2%
     The salary and supplemental benefits inflation
     rate of retiree, early-retiree and employee at
     post                                                               ——                 0% to 6%




                                                                                            78
     JIANGLING MOTORS CORPORATION, LTD.

     FOR THE SIX MONTHS ENDED 30 JUNE 2019
     NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
     (All amounts in thousands of RMB unless otherwise stated)

24   Retirement benefits obligations (continued)

     Based on the assessment and IAS 19, the Group estimated that, at 30 June 2019, a provision of
     RMB65,372,000 is sufficient to cover all future retirement-related obligations.

     Obligation in respect of retirement benefits of RMB65,372,000 is the present value of the
     unfunded obligations, of which the current portion amounting to RMB4,595,000 (2018:
     RMB4,595,000) has been included under current liabilities.

25   Provisions for statutory warranty

     The movement on the statutory warranty provisions and other liabilities is as follows:

                                                                 30 June 2019       31 December 2018

     At beginning of the year                                         352,554                   374,981
     Charged for the year (Note 6)                                    159,699                   291,471
     Utilised during the year                                        (140,705)                (313,898)
     At end of the period                                             371,548                   352,554

     Analysis of total provisions:

                                                                 30 June 2019       31 December 2018

     Non-current                                                      166,251                  151,492
     Current                                                          205,297                  201,062
                                                                      371,548                  352,554

     The above represents the statutory warranty protecting customer from faults that arise after the
     product has been transferred to the customer. The statutory warranty is estimated based on prior
     years’ experience on the occurrence of such cost.




                                                                                                79
     JIANGLING MOTORS CORPORATION, LTD.

     FOR THE SIX MONTHS ENDED 30 JUNE 2019
     NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
     (All amounts in thousands of RMB unless otherwise stated)

26   Trade and other payables

                                                                 30 June 2019            31 December 2018

     Trade payables                                                 7,914,886                   7,824,908
     Payroll and welfare payables                                     356,075                     304,322
     Dividend payables                                                 41,313                       6,790
     Other tax payables                                                16,636                     233,385
     Payables of sales rebates                                      1,748,027                   1,714,485
     Payables of R&D expenses                                         930,737                     828,807
     Others                                                         1,446,682                   1,283,269
                                                                   12,454,356                  12,195,966

     Refer to Note 31 for details of amount due to related parties.

27   Dividends

     A final dividend for 2018 of RMB0.04 per share, amounting to a total dividend of approximately
     RMB34,529,000 was proposed at the Board of Directors’ Meeting on 26 March 2019, and such
     dividend is proposed at the Shareholders’ Meeting on 28 June 2019.

28   Cash generated from operations

                                                                         Six months ended 30 June
                                                                             2019               2018

     Profit before tax                                                      12,560                 346,355
     Depreciation of PPE (Note 6, 12)                                      475,243                 463,097
     Amortisation of lease prepayment (Note 6, 13)                            7,787                   7,787
     Amortisation of intangible assets (Note 6, 14)                         35,164                   25,814
     Impairment charges of PPE (Note 12)                                      3,126                   3,607
     Provision for receivables impairment (Note 19)                         (1,056)                     918
     Provision of inventories (Note 18)                                       5,310                   5,195
     (Gain)/loss on disposals of PPE                                           4,412               (34,273)
     Finance expenses (Note 9)                                                 2,170                  2,879
     Finance income (Note 9)                                               (92,765)              (106,654)
     Net foreign exchange transaction loss/(gain)                               451                   3,219
     Share of profit from investment accounted for using
        equity method (Note 16b)                                              (334)                 (2,611)
     Investment gain of finance asset investment                           (18,447)               (10,202)
     Investment loss of forwards exchange contracts                          4,940                  12,620
     Changes on fair value of forwards exchange
        contracts                                                                3,557             (6,915)
     Provisions for statutory warranty                                          18,994             (7,799)
     Changes in working capital:
     -Increase in restricted cash                                          (20,001)                        -
      - Increase in inventories                                            333,470                 (20,248)
      - Increase in trade and other receivables                            368,709                (399,396)
      - (Decrease)/increase in trade and other payables                    294,858             (1,072,349)
      - Increase/(decrease) in pensions and other
          retirement benefits                                               (2,648)                 (2,805)
     Cash generated from operations                                       1,435,500              (791,761)




                                                                                                   80
     JIANGLING MOTORS CORPORATION, LTD.

     FOR THE SIX MONTHS ENDED 30 JUNE 2019
     NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
     (All amounts in thousands of RMB unless otherwise stated)

28   Cash generated from operations (continued)

     In the cash flow statement, proceeds from disposal of PPE, lease prepayment and intangible
     assets comprise:

                                                                   Six months ended 30 June
                                                                         2019               2018

     Net book amount                                                      6,950                95,408
     (Loss) /gain on disposal of PPE                                    (4,412)                34,273
     (Decrease)/increase in trade and other payables                       452               (127,112)
     Proceeds from disposal of PPE                                        2,990                 2,569

29   Contingencies

     At 30 June 2019, the Group did not have any significant contingent liabilities.

30   Commitments

     Capital commitments

     Capital expenditure contracted for at the balance sheet date but not recognised in the financial
     statements are as follows:

                                                                 30 June 2019     31 December 2018

     Contracted but not provided for:
     Purchases of buildings, plant and machinery                      946,316              1,095,333

31   Related party transactions

     Related parties are those parties that have the ability to control the other party or exercise
     significant influence in making financial and operating decisions. Parties are also considered to
     be related if they are subject to common control.

     Jiangling Motor Holdings Co. Ltd. (“JHC”) (a), which owns 41.03% of the Company’s shares,
     and Ford Motor Company (“Ford”), which owns 32% of the Company’s shares, are major
     shareholders of the Company as at 30 June 2019. The shareholders of JHC are Chongqing
     Changan Automobile Corporation Ltd. and JMCG, and both of them hold 50% equity interest
     of JHC, respectively.

     The following is a summary of the significant transactions carried out between the Group, its
     associates, JMCG and its subsidiaries, JHC and its subsidiaries and joint venture, Ford and its
     subsidiaries and joint venture in the ordinary course of business during the six months ended
     30 June 2019.



     (a) As of July 26, 2019, JHC has transferred the total share capital of the Company to
         Nanchang Jiangling Investment Co., Ltd. (“JIC”). JHC no longer held the shares of the
         Company, the controlling shareholder of JMC will be changed from JHC to JIC.




                                                                                                 81
     JIANGLING MOTORS CORPORATION, LTD.

     FOR THE SIX MONTHS ENDED 30 JUNE 2019
     NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
     (All amounts in thousands of RMB unless otherwise stated)

31   Related party transactions (continued)

     For the six months ended 30 June 2019, related parties, other than the subsidiary, and their
     relationship with the Group are as follows:

     Name of related party                                                           Relationship

     JMCG                                                                     Shareholder of JHC
     Jiangxi Jiangling Special Purpose Vehicle Co., Ltd.                      Subsidiary of JMCG
     Jiangling Material Co.                                                   Subsidiary of JMCG
     Nanchang Gear Co., Ltd.                                                  Subsidiary of JMCG
     Jiangxi JMCG Industry Co., Ltd.                                          Subsidiary of JMCG
     Jiangxi Lingrui Recycling Resources Development Corporation              Subsidiary of JMCG
     JMCG Jingma Motors Co., Ltd.                                             Subsidiary of JMCG
     JMCG Property Management Co.                                             Subsidiary of JMCG
     Nanchang Baojiang Steel Processing Distribution Co., Ltd.                 Associate of JMCG
     Faurecia Emissions Control Technologies (Nanchang) Co., Ltd.              Associate of JMCG
     Nanchang JMCG Mekra-Lang Vehicle Mirror Co., Ltd                          Associate of JMCG
     Jiangxi JMCG Specialty Vehicles Corporation, Ltd.                         Associate of JMCG
     Jiangxi Jiangling Group Special Vehicle Co., Ltd.                         Associate of JMCG
     Nanchang Hengou Industry Co., Ltd.                                        Associate of JMCG
     Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd.                   Associate of JMCG
     Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.                            Associate of JMCG
     GETRAG (Jiangxi) Transmission Company                                     Associate of JMCG
     Jiangxi jiangling overseas automobile sales and service Co., Ltd          Associate of JMCG
     Jiangxi JMCG Motorhome Co., Ltd.                                          Associate of JMCG
     Jiangxi Jiangling Chassis Co.,Ltd.                                       Subsidiary of JMCG
     Nanchang JMCG Shishun Logistics Co., Ltd.                                Subsidiary of JMCG
     Jiangxi Lingge Non-ferrous Metal Die-casting Co., Ltd.                   Subsidiary of JMCG
     Nanchang JMCG Xinchen Auto Component Co., Ltd.                           Subsidiary of JMCG
     JMCF                                                                     Subsidiary of JMCG
     Nanchang Jiangling Hua Xiang Auto Components Co., Ltd.                Joint venture of JMCG
     Jiangxi Jiangling Lear Interior System Co., Ltd.                      Joint venture of JMCG
     Nanchang Unistar Electric & Electronics Co., Ltd.                     Joint venture of JMCG
     Nanchang Yinlun Heat-exchanger Co., Ltd.                              Joint venture of JMCG
     Jiangxi ISUZU Engine Co.,Ltd.                                         Joint venture of JMCG
     Nanchang JMCG Liancheng Auto Component Co., Ltd.                         Subsidiary of JMCG
     Nanchang Lianda Machinery Co., Ltd.                                      Subsidiary of JMCG
     Jiangling Aowei Aotomobile Spare Part Co., Ltd.                          Subsidiary of JMCG
     NC.Gear Forging Factory                                                  Subsidiary of JMCG
     Jiangxi Biaohong Engine Tappet Co., Ltd.                                 Subsidiary of JMCG
     Jiangxi JMCG Shangrao Industrial Co., Ltd.                               Subsidiary of JMCG
     JMCG Jiangxi Engineering Construction Co., Ltd.                          Subsidiary of JMCG
     Jiangxi JMCG Yichehang Second-hand Motors Sales Co., Ltd.                Subsidiary of JMCG
     Jiang ling Motor Electricity Vehicle Sales Co., Ltd                      Subsidiary of JMCG
     Ford Global Technologies, LLC                                              Subsidiary of Ford
     Ford Motor (China) Co., Ltd.                                               Subsidiary of Ford
     Ford Motor Research & Engineering (Nanjing) Co., Ltd.                      Subsidiary of Ford
     Ford Otomotiv Sanayi A.S.                                                  Subsidiary of Ford
     Auto Alliance (Thailand) Co., Ltd.                                         Subsidiary of Ford
     Ford Vietnam Limitied                                                      Subsidiary of Ford
     Changan Ford Automobile Co., Ltd.                                       Joint venture of Ford
     Jiangxi JMCG boya brake system Co., Ltd                                  Subsidiary of JMCG



                                                                                            82
      JIANGLING MOTORS CORPORATION, LTD.

      FOR THE SIX MONTHS ENDED 30 JUNE 2019
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
      (All amounts in thousands of RMB unless otherwise stated)

31    Related party transactions (continued)

(i)   Purchases and sales of goods, provision and purchases of services

                                                                       Six months ended 30 June
      Purchase of goods                                                      2019          2018

      Jiangxi Jiangling Special Purpose Vehicle Co., Ltd.                  360,407        397,028
      Nanchang Baojiang Steel Processing Distribution Co., Ltd.            356,064        464,830
      Jiangxi Jiangling Chassis Co., Ltd.                                  341,935        464,265
      Nanchang Jiangling Hua Xiang Auto Components Co., Ltd.               341,796        244,473
      GETRAG (Jiangxi) Transmission Company                                316,959        395,455
      Jiangxi Jiangling Lear Interior System Co., Ltd.                     255,709        234,271
      Ford                                                                 187,925        301,095
      Nanchang JMCG Liancheng Auto Component Co., Ltd.                     170,539        211,971
      Nanchang Unistar Electric & Electronics Co.,Ltd.                     105,848        158,560
      Faurecia Emissions Control Technologies (Nanchang) Co., Ltd.          95,764         89,486
      Hanon Systems                                                         87,086        136,338
      Nanchang JMCG Shishun Logistics Co., Ltd.                             86,296           1,406
      JMCG                                                                  53,907         58,674
      Nanchang JMCG Mekra-Lang Vehicle Mirror Co., Ltd                      50,767         51,150
      Jiangxi Lingge Non-ferrous Metal Die-casting Co., Ltd.                33,620         34,052
      Nanchang Yinlun Heat-exchanger Co., Ltd.                              32,419         23,536
      Nanchang Lianda Machinery Co., Ltd.                                   30,231         31,963
      Jiangxi JMCG Specialty Vehicles Corporation, Ltd.                     26,962         89,556
      JHC                                                                   20,879               -
      Jiangling Material Co.                                                13,022         15,044
      Jiangxi Jiangling Group Special Vehicle Co., Ltd.                     12,366         13,928
      Ford Otomotiv Sanayi A.S.                                             12,312         88,410
      Auto Alliance (Thailand) Co., Ltd.                                    11,703         53,769
      Jiangling Aowei Aotomobile Spare Part Co., Ltd.                       10,039         13,657
      Nanchang JMCG Xinchen Auto Component Co., Ltd.                         8,683           9,717
      Jiangxi ISUZU Engine Co., Ltd.                                         7,416         33,131
      Nanchang Gear Co., Ltd.                                                5,921           7,220
      Jiangxi JMCG Industry Co., Ltd.                                        5,746           5,359
      NC.Gear Forging Factory                                                3,283           6,829
      Jiangxi Biaohong Engine Tappet Co., Ltd.                               3,134           3,379
      Jiangxi Lingrui Recycling Resources Development Corporation            3,012           1,932
      Changan Ford Automobile Co., Ltd.                                      2,401           6,869
      Jiangxi JMCG boya brake system Co., Ltd                                2,114              24
      Jiangxi JMCG Shangrao Industrial Co., Ltd.                             1,459           2,248
      Nanchang JMCG Skyman Auto Component Co., Ltd. (a)                          -         39,904
      Others                                                                   152             206
                                                                         3,057,876        3,689,735


      (a) In December 2018, JHC absorbed Nanchang JMCG Skyman Auto Component Co.,Ltd.
      The Group purchased goods from related parties classified as two types: import parts and home-
      made parts.
            Purchase import parts from Ford or Ford’s suppliers, based on agreed price;
            Purchase home-made parts from other related parts, based on quotation, cost accounting
            and negotiation.




                                                                                            83
      JIANGLING MOTORS CORPORATION, LTD.

      FOR THE SIX MONTHS ENDED 30 JUNE 2019
      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
      (All amounts in thousands of RMB unless otherwise stated)

31    Related party transactions (continued)

(i)   Purchases and sales of goods, provision and purchases of services (continued)

                                                                                                                       Six months ended 30 June
      Purchase of services                                                                  Natures of transaction          2019               2018

      Nanchang JMCG Shishun Logistics Co., Ltd.                                            Truckage/Transportation       141,954           126,082
      Ford Global Technologies, LLC                                                                      Royalty fee     110,123            94,135
      Ford                                                                          Engineering service and design       106,018           134,540
      Changan Ford Automobile Co., Ltd.                                                      Service fee/Labor costs      58,387             4,959
      Ford Otomotiv Sanayi A.S.                                                     Engineering service and design        25,937            21,604
      Ford                                                                                      Secondments costs         17,446            19,647
      Jiangxi JMCG Industry Co., Ltd.                                                                  Working meal       12,669            20,196
      Nanchang Hengou Industry Co., Ltd.                                                          Packing/Truckage        12,063            19,944
      Ford Otomotiv Sanayi A.S.                                                                          Royalty fee       7,508             9,877
      JHC                                                                          Labor costs /Secondments costs          6,979               687
      Ford Motor (China) Co., Ltd.                                                        Regional personnel costs         4,461             3,784
      Ford Otomotiv Sanayi A.S.                                                                 Secondments costs          3,349            10,746
      Ford Motor Research & Engineering (Nanjing) Co., Ltd.                               Regional personnel costs         3,279             1,561
      Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd.                                          Promotion fee       2,902                  -
      Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.                                 Agent business of importation         2,439             2,167
      JMCG Property Management Co.                                                           Property management             998             1,083
      JMCG Jiangxi Engineering Construction Co., Ltd.                 Engineering construction and maintenance fee           969             4,012
      GETRAG (Jiangxi) Transmission Company                                                               Design fee         460             3,280
      Jiangxi Jiangling Group Special Vehicle Co., Ltd.                                                Promotion fee          36             1,540
      Jiangxi Jiangling Special Purpose Vehicle Co., Ltd.                                              Promotion fee           -             1,959
      Faurecia Emissions Control Technologies (Nanchang) Co., Ltd.                                        Design fee           -             1,315
      Others                                                                                                               1,401               922
                                                                                                                         519,378           484,040

      The Group purchased the service from related parties based on agreement price.




                                                                                                                                                 84
31    Related party transactions (continued)

(i)   Purchases and sales of goods, provision and purchases of services (continued)
                                                                     Six months ended 30 June
      Sales of goods                                                     2019            2018

      Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.                       474,714    566,065
      Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd.               63,909     91,265
      Jiangxi Jiangling Group Special Vehicle Co., Ltd.                     41,557     35,586
      Jiangxi Lingrui Recycling Resources Development Corporation           36,018     29,625
      Jiangxi Jiangling Chassis Co., Ltd.                                   23,932     44,476
      JMCG Jingma Motors Co., Ltd.                                          20,101     36,743
      Nanchang JMCG Liancheng Auto Component Co., Ltd.                      17,109     23,602
      Jiangxi JMCG Specialty Vehicles Corporation, Ltd.                     12,667     61,448
      Jiangxi Jiangling Special Purpose Vehicle Co., Ltd.                    9,066     57,568
      Jiangxi JMCG Yichehang Second-hand Motors Sales Co., Ltd.              7,640      7,707
      Nanchang JMCG Shishun Logistics Co., Ltd.                              4,499          -
      Jiangxi jiangling overseas automobile sales and service Co.,
                                                                             4,341           -
      Ltd
      Nanchang Hengou Industry Co., Ltd.                                     4,245      22,874
      Nanchang Jiangling Hua Xiang Auto Components Co., Ltd.                 3,385       6,996
      Jiangxi JMCG Industry Co., Ltd.                                        2,303       3,050
      Jiangxi Jiangling Lear Interior System Co., Ltd.                       1,723       2,902
      Nanchang Lianda Machinery Co., Ltd.                                    1,026          81
      JMCG Property Management Co.                                             204       3,191
      JHC                                                                       35      23,080
      JMCG Jiangxi Engineering Construction Co., Ltd.                            -       1,919
      Others                                                                 1,374         881
                                                                           729,848   1,019,059

      The Group sold goods to related parties, based on agreement price.




                                                                                     85
31      Related party transactions (continued)

(ii)    Rental

        Rental cost

        Lessor                             Category     Rental cost of six         Rental cost of six
                                                        months ended 30            months ended 30
                                                               June 2019                  June 2018

        JMCG                                 Building                2,651                     1,725
        Jiangxi Jiangling Motors Imp. &
                                                                     2,141                     2,136
        Exp. Co., Ltd.                       Building
        JMCG Property Management Co.         Building                  190                       211
                                                                     4,982                     4,072

        Rental income

        Lessee                             Category Rental income of six       Rental income of six
                                                      months ended 30            months ended 30
                                                              June 2019                  June 2018

        GETRAG (Jiangxi) Transmission
                                                                         7                          -
        Company                             Building
        JHC                                 Building                    3                          3
                                                                       10                          3

(iii)   Guarantee

        As at 30 June 2019, bank loans of USD557,000 (equivalent to approximately RMB 3,826,000)
        (2018:USD589,000, equivalent to approximately RMB4,044,000) were guaranteed by JMCF
        (Note 23).

(iv)    Sales of PPE

                                                                  Six months ended 30 June
                                                                        2019               2018

        Nanchang JMCG Shishun Logistics Co., Ltd.                            299                   -

(v)     Purchase of PPE

                                                                   Six months ended 30 June
                                                                         2019              2018

        Nanchang Jiangling Hua Xiang Auto Components Co.,
                                                                         6,337                     -
        Ltd.
        Jiangxi Jiangling Special Purpose Vehicle Co., Ltd.                  -                 5,671
        Nanchang JMCG Liancheng Auto Component Co., Ltd.                     -                   677
                                                                         6,337                 6,348




                                                                                              86
31       Related party transactions (continued)

(vi)     Provide technique sharing

                                                                   Six months ended 30 June
                                                                          2019                  2018
         Ford                                                           28,810                     -
         Ford Vietnam Limited                                            2,874                     -
                                                                        31,684                     -

(vii)    Key management remuneration

         Key management includes directors (executive and non-executive), members of the Executive
         Committee, the Company Secretary and members of the Supervisory Board. During the six
         months ended 2019, the total remuneration of the key management was approximately
         RMB6,361,000 (the six months ended 30 June 2018: RMB7,212,000).

(viii)   Interest received from cash deposit in related parties

                                                                  Six months ended 30 June
                                                                         2019                   2018

         JMCF                                                            6,771                  9,739


(ix)     Balances arising from sales/purchases of goods/services

         Trade receivables from related parties                   30 June 2019   31 December 2018

         Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.                165,281                251,236
         Jiangxi JMCG Specialty Vehicles Sales
                                                                        30,136                 32,940
         Corporation, Ltd.
         Ford                                                           17,610                      -
         JMCG Jingma Motors Co., Ltd.                                   10,499                  6,162
         Nanchang JMCG Liancheng Auto Component
                                                                         8,456                        -
         Co., Ltd.
         Jiangxi JMCG Specialty Vehicles Corporation,
                                                                         8,190                      237
         Ltd.
         Jiangxi Jiangling Group Special Vehicle Co., Ltd.               8,162                  5,726
         Jiang ling Motor Electricity Vehicle Sales Co., Ltd             5,961                  5,961
         Nanchang JMCG Shishun Logistics Co., Ltd.                       4,736                      -
         Ford Vietnam Limited                                            2,874                  5,104
         Nanchang Jiangling Hua Xiang Auto Components
                                                                         1,522                  1,899
         Co., Ltd.
         Jiangxi Jiangling Chassis Co., Ltd.                                 -                  9,803
         Others                                                          1,607                    122
                                                                       265,034                319,190




                                                                                               87
31     Related party transactions (continued)

(ix)   Balances arising from sales/purchases of goods/services (continued)


       Other receivables from related parties              30 June 2019      31 December 2018

       Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.            39,142                35,027
       Nanchang Unistar Electric & Electronics Co., Ltd.             28                     -
       Hanon Systems                                                  2                     -
       Others                                                         -                    11
                                                                 39,172                35,038

       Prepayments for purchasing of goods                 30 June 2019      31 December 2018

       Nanchang Baojiang Steel Processing Distribution
        Co., Ltd.                                               536,715               496,146
                                                                536,715               496,146

       Notes receivables from related parties              30 June 2019      31 December 2018

       Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.            15,000                     -
       JMCG Jingma Motors Co., Ltd.                                   -                41,418
                                                                 15,000                41,418

       Prepayments for construction in progress            30 June 2019      31 December 2018

       Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd.               121                       -
       Jiangxi JMCG Specialty Vehicles Corporation,
                                                                       -                    500
       Ltd.
                                                                    121                     500

       Prepayments for mould lease                         30 June 2019      31 December 2018

       Changan Ford Automobile Co., Ltd.                               -                    478

       Cash deposit in related parties                     30 June 2019      31 December 2018

       JMCF                                                     577,916               833,617




                                                                                       88
31     Related party transactions (continued)

(ix)   Balances arising from sales/purchases of goods/services (continued)

       Trade payables to related parties                   30 June 2019      31 December 2018

       Nanchang Jiangling Hua Xiang Auto
                                                                415,736               316,174
       Components Co., Ltd.
       Jiangxi Jiangling Chassis Co., Ltd.                      297,987               333,431
       Jiangxi Jiangling Special Purpose Vehicle Co.,
                                                                269,443               336,126
       Ltd.
       Jiangxi Jiangling Lear Interior System Co., Ltd.         197,031               214,139
       GETRAG (Jiangxi) Transmission Company                    167,497               275,275
       Jiangxi JMCG Specialty Vehicles Corporation,
                                                                144,038               138,209
       Ltd.
       Nanchang JMCG Liancheng Auto Component
                                                                122,978               148,483
       Co., Ltd.
       Hanon Systems                                             96,975                91,656
       Nanchang JMCG Shishun Logistics Co., Ltd.                 85,910                10,113
       Nanchang JMCG Mekra-Lang Vehicle Mirror
                                                                 62,152                48,200
       Co., Ltd
       Nanchang Unistar Electric & Electronics Co., Ltd.         61,872                96,905
       Ford                                                      55,833               151,749
       Faurecia Emissions Control Technologies
                                                                 54,896                58,966
       (Nanchang) Co., Ltd.
       JMCG                                                      40,107                68,159
       JHC                                                       23,044                26,349
       Jiangxi Lingge Non-ferrous Metal Die-casting
                                                                 22,044                19,850
       Co., Ltd.
       Nanchang Yinlun Heat-exchanger Co., Ltd.                  20,437                24,756
       Nanchang Lianda Machinery Co., Ltd.                       17,409                28,325
       Jiangxi Jiangling Group Special Vehicle Co., Ltd.          9,941                28,944
       Jiangling Aowei Aotomobile Spare Part Co., Ltd.            9,523                14,533
       Jiangxi ISUZU Engine Co., Ltd.                             8,784                 9,956
       Nanchang JMCG Xinchen Auto Component Co.,
                                                                  6,314                 6,355
       Ltd.
       Nanchang Gear Co., Ltd.                                    6,017                 6,179
       Jiangxi JMCG Industry Co., Ltd.                            6,014                 7,830
       Auto Alliance (Thailand) Co., Ltd.                         2,645                 2,151
       Jiangxi Lingrui Recycling Resources
                                                                  2,607                 1,736
       Development Corporation
       Jiangxi JMCG boya brake system Co., Ltd                    2,322                     -
       Jiangxi JMCG Shangrao Industrial Co., Ltd.                 1,883                 1,693
       Jiangxi Biaohong Engine Tappet Co., Ltd.                   1,586                 2,037
       NC.Gear Forging Factory                                    1,369                 4,173
       Ford Otomotiv Sanayi A.S.                                  1,344                 1,031
       Jiangling Material Co.                                     1,048                 1,372
       Changan Ford Automobile Co., Ltd.                              -                67,622
       Others                                                         -                    16
                                                              2,216,786             2,542,493




                                                                                       89
31     Related party transactions (continued)

(ix)   I Balances arising from sales/purchases of goods/services (continued)

        Other payables to related parties                   30 June 2019       31 December 2018

        Ford                                                      131,973                92,310
        Ford Otomotiv Sanayi A.S.                                 101,544               115,254
        Ford Global Technologies, LLC                              64,933                41,203
        Jiangxi JMCG Specialty Vehicles Sales
                                                                   41,230                31,946
        Corporation, Ltd.
        Changan Ford Automobile Co., Ltd.                          35,868                 9,776
        JMCG Jiangxi Engineering Construction Co., Ltd.            25,771                30,166
        JHC                                                        20,676                15,641
        GETRAG (Jiangxi) Transmission Company                      12,190                14,216
        Nanchang JMCG Shishun Logistics Co., Ltd.                  12,038                 7,736
        Jiangxi Jiangling Group Special Vehicle Co., Ltd.           7,303                 6,921
        Faurecia Emissions Control Technologies
                                                                    5,469                13,584
        (Nanchang) Co., Ltd.
        JMCG                                                        2,666                   623
        Jiangxi JMCG Industry Co., Ltd.                             2,486                 3,504
        Ford Motor (China) Co., Ltd.                                2,135                 4,803
        Jiangxi Jiangling Lear Interior System Co., Ltd.            1,207                 4,612
        JMCG Property Management Co.                                1,189                   748
        Ford Motor Research & Engineering (Nanjing)
                                                                    1,004                     607
        Co., Ltd.
        Nanchang Hengou Industry Co., Ltd.                            413                10,211
        Jiangxi Jiangling Special Purpose Vehicle Co.,
                                                                      250                 1,403
        Ltd.
        Nanchang Jiangling Hua Xiang Auto
                                                                         -                7,222
        Components Co., Ltd.
        Jiangxi JMCG Motorhome Co., Ltd.                                -                 1,905
        Others                                                      1,733                 2,086
                                                                  472,078               416,477


        Capital commitments                                  30 June 2019      31 December 2018

        JMCG Jiangxi Engineering Construction Co.,
        Ltd.                                                       31,940                29,456




                                                                                         90
Chapter XI         Catalogue on Documents for Reference

1. Originals of 2019 Half-year financial statements signed by Chairman, Chief
   Financial Officer and Chief of Finance Department.
2. Originals of all the documents and public announcements disclosed in
   newspapers designated by CSRC in the first half of 2019.
4. The Half-year Report in the China GAAP.

Board of Directors
Jiangling Motors Corporation, Ltd.
August 29, 2019




                                                                                91

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