Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019 Stock code: 200054 Stock Abbreviation: Jianshe Vehicle B Announcement No.: 2019-043 Chongqing Jianshe Vehicle System Co., Ltd.
The FirstQuarterly Report 2019
Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019 1 Important notes
The Board ofDirectors，the Supervisory Committee, the directors, the supervisors, and executives of the Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the Quarterly Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Quarterly Report.
Except the following directors, all the directors attended the board meeting for reviewing the annual Report.
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|-|-|-|-|
|The name of the directors absent|Positions|Reasons for the absence|Name of the consignee|
|Yan Xuechuan|Director|Business trip|Lv Hongxian|
|Hao Lin|Director|Business trip|Li Dingqing|
|Liu Zhiqiang|Independent Director|Business trip|Peng Jue|

Mr. Lv Hongxian, The Company Leader, Mr.Tan Mingxian, Chief financial officer and the Ms.Niu Yanli, the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in the report.
Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019 II. Basic Information of the Company
I.Main financial data and financial index
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□Yes√No
|||||
|-|-|-|-|
||||Changes of this period over|
||This period|Same period of last year|same period of last year|
||||（％）|
|Operation revenue（Yuan）|208,419,491.98|266,811,269.51|-21.89%|
|Net profit attributable to the shareholders|-15,704,995.56|55,789.60||
||||-28,250.40%|
|of the listed company（Yuan）||||
|Net profit after deducting of non-recurring||||
|gain/loss attributable to the shareholders of|-15,991,228.39|-275,476.62|5,704.93%|
|listed company（Yuan）||||
|Net Cash flow generated by business|29,472,232.97|18,706,058.10||
||||57.55%|
|operation（Yuan）||||
|Basic earning per share(Yuan/Share)|-0.1316|0.0005|-26,420.00%|
|Diluted gains per|-0.1316|0.0005||
||||-26,420.00%|
|share(Yuan/Share)(Yuan/Share)||||
|Net asset earning ratio（%）|-5.50%|0.02%|-5.52%|
||||Changes of this period-end|
||End of this period|End of last period|over same period-end of last|
||||year(%)|
|Gross assets（Yuan）|1,322,738,049.45|1,461,770,573.54|-9.51%|
|Net assets attributable to shareholders of||||
||277,596,454.98|293,301,450.54|-5.35%|
|the listed company（Yuan）||||

Items and amount of non-current gains and losses
√ Applicable□ Not applicable
In RMB
||||
|-|-|-|
||Amount (Year-beginning||
|Items|to the end of the report|Notes|
||period.)||
|Govemment subsidies recognized in current gain and loss(excluding those closely related to|||
||30,000.00||
|the Company’s business and granted under the state’s policies)|||

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
||||
|-|-|-|
|Other non-business income and expenditures other than the above|256,232.83||
|Total|286,232.83|--|

 For theCompany’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/itesm as defined by the information disclosure explanatory Announcement No.1- Non–recurring gain/loss in the report period.
Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019 II. Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period 1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders
In shares
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||Total preference shareholders with|||||||
|Total number of common|||||||||||
|||8,077||the voting power recovered at the||||0|||
|shareholders at the period-end|||||||||||
|||||end of the reporting period(if any)|||||||
|Shares held by the top 10 shareholders|||||||||||
||||||||Amount of||Pledging or freezing||
||Properties of|||Share|||tradable shares||||
|Shareholder name|||||Quantity||||Status of||
||shareholder|||proportion %|||with Conditional|||Quantity|
||||||||||the shares||
||||||||held||||
|China Military EquipmentGroup Co., Ltd.|State-owned legalperson|||71.13%|84,906,250||84,906,250||||
|Gu Zuocheng|Domestic naturalperson|||1.89%|2,261,000||2,218,750||||
|Hengsheng Sun Group Co., Ltd.|Domesticnon-state-owned legalperson|||1.47%|1,750,000||1,750,000||||
||||||||||Freeze|1,750,000|
|Liu Dan|Domestic naturalperson|||0.90%|1,071,751||0||||
|Xu Yuanhui|Domestic naturalperson|||0.56%|666,789||0||||
|Yu Lingfeng|Overseas naturalperson|||0.51%|612,921||0||||
|Chen Xinqiang|Domestic naturalperson|||0.51%|612,400||0||||
|Zhang Meilan|Domestic naturalperson|||0.43%|513,560||0||||
|Feng Yonghui|Domestic naturalperson|||0.42%|500,000||500,000||||
|Li Jianping|Domestic naturalperson|||0.37%|445,569||0||||
|Shares held by the Top 10 Shareholders of Non-restricted shares|||||||||||
||||Number of the|||Share type|||||
|Shareholders’ Names|||||||||||
||||non-restricted shares held|||Share type|||Quantity||
|Liu Dan|||1,071,751|||Foreign shares placed in|||||
||||||||||1,071,751||
|||||||domestic exchange|||||
|Xu Yuanhui|||666,789|||Foreign shares placed in|||||
||||||||||666,789||
|||||||domestic exchange|||||
|Yu Lingfeng|||612,921|||Foreign shares placed in|||||
||||||||||612,921||
|||||||domestic exchange|||||

Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019
|||||
|-|-|-|-|
|Chen Xinqiang|612,400|Foreign shares placed in||
||||612,400|
|||domestic exchange||
|Zhang Meilan|513,560|Foreign shares placed in||
||||513,560|
|||domestic exchange||
|Li Jianping|445,569|Foreign shares placed in||
||||445,569|
|||domestic exchange||
|CORE PACIFIC-YAMAICHIINTERNATIONAL (H.K.) LIMITED|424,550|Foreign shares placed in||
||||424,550|
|||domestic exchange||
|Chen Houping|423,561|Foreign shares placed in||
||||423,561|
|||domestic exchange||
|Liu Guosheng|345,575|Foreign shares placed in||
||||345,575|
|||domestic exchange||
|Lin Fan|303,400|Foreign shares placed in||
||||303,400|
|||domestic exchange||
||There is no affiliated relationship between the top ten non-restricted tradable|||
||shareholders and the controlling shareholder China Military Equipment Group Co.,|||
||Ltd. nor do they belong to the consistent actors stipulated in the Administrative|||
|Explanation on associated relationship among|Measures for the Acquisition of Listed Companies; it is unknown to the company|||
|the aforesaid shareholders|whether there is an affiliated relationship between the top ten non-restricted tradable|||
||shareholders as well as between the top ten non-restricted tradable shareholders and|||
||the other top ten shareholders, or whether they are included in the consistent actors|||
||stipulated in the Administrative Measures for the Acquisition of Listed Companies.|||

 Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period.
□ Yes√ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy–back agreement dealing in reporting period.
2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period
□ Applicable√Not applicable
Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019 III. Significant issues
III. Significant Issues I. Major changes of main accounting statement items and financial indicators in the reporting period, as well as reasons for the changes
√ Applicable□ Not applicable
During the reporting period, the Company's product sales and sales price decreased YOY, resulting in a loss of net profit. II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal.
√ Applicable□ Not applicable
1.Cancel the Technology Center of the branch Chongqing Jianshe Motorcycle Co., Ltd.
Chongqing Jianshe Motorcycle Co., Ltd. Branch Technology Center's business scope is motorcycle research and development, which is no longer the company's main business development direction. In order to further improve the company's business structure and reduce the level of operation, the company convened the 13th meeting of the eighth Board of Directors on January 14, 2019, and deliberated and passed the Proposal on Cancellation of Branch Technology Center (for details, see the Announcement on Cancellation of Branch Technology Center disclosed on January 16, 2019). The cancellation will not change the scope of the company's consolidated financial statements, will not affect the company's business development and sustained profitability, and will not harm the interests of the company and all shareholders.
On March 29, 2019, Chongqing Municipal Market Supervision Administration issued the Notice of Cancellation of Foreign-invested Enterprises (ZY) YZXZ Zi[2019] No. 000137, confirming that the Technology Center of the company's branch had been canceled.
2. Purchase of equity in Chongqing Jianshe HANON Automobile Thermal Management System Co., Ltd. To further highlight the development of the main business, On March 31, 2019, the company held the 15th meeting of the eighth Board of Directors to consider and pass the Proposal on the Purchase of Equity and Related Party Transactions of Chongqing Jianshe HANON Automobile Thermal Management System Co.,Ltd. On April 8, 2019, the company signed the Stock Rights Transfer Agreement with Chongqing Jianshe Mechanical and Electric Co., Ltd. to purchase24.64% equity of Jianshe Hanang held by Chongqing Jianshe Mechanical and Electric Co., Ltd. at24.64% of the appraised value, i.e. 102.7433 million yuan. On April 11, 2019, it was approved and implemented by the company's first extraordinary shareholders' meeting in 2019. On April 18, 2019, the company has already paid 102.7433 million yuan for this share transfer. After the completion of this transaction, our company and HANON respectively hold50% equity in Jianshe Hanang. According to Stock Rights Transfer Agreement, the period from the base date of this equity transfer evaluation (November 30, 2018) to the actual delivery date of the equity transfer is the transitional period of this equity transfer, during which the Company shall enjoy or bear the profits and losses arising from Jianshe HANON .
3. Joint venture Chongqing Pingshan Taikai Carburetor Co., Ltd.
In order to improve the efficiency of the use of funds, the company and other shareholders of the joint venture Pingshan Taikai reduced the registered capital of Pingshan Taikai by a total of USD 9 million, of which the
Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019 company holds50% equity in Pingshan Taikai and will recover the investment of USD 4.5 million. After the capital reduction is completed, the registered capital of Pingshan Taikai will be reduced from USD 19 million to USD 10 million US dollars. The capital reduction has been reviewed and approved by the 12th meeting of the eighth board of directors of the company on December 4, 2018, and by the 48th board meeting (temporary) of Pingshan Taikai on December 6, 2018.The industrial and commercial registration work for the capital reduction was completed on March 28, 2019.
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|-|-|-|
|Summary of material issues|Date of disclosure|Index of provisional announcement|
|Cancel the Technology Center of thebranch Chongqing JiansheMotorcycle Co., Ltd.||For details, please refer to the related announcements|
|||of the company disclosed on The Securities Times,|
||January 16,2019|Hong Kong Commercial Daily and|
|||www.cninfo.com.cn(Announcement|
|||No.:2019-001,2019-002)|
|Purchase of equity in Chongqing Jianshe HANONAutomobile Thermal Management System Co., Ltd.||For details, please refer to the related announcements|
|||of the company disclosed on The Securities Times,|
||January 16,2019|Hong Kong Commercial Daily and|
|||www.cninfo.com.cn(Announcement|
|||No.:2019-001,2019-003)|
|||For details, please refer to the related announcements|
|||of the company disclosed on The Securities Times,|
|||Hong Kong Commercial Daily and|
||April 1,2019||
|||www.cninfo.com.cn(Announcement|
|||No.:2019-014,2019-015, 2019-017, 2019-018, 2019-019 and|
|||2019-023)|
|Joint venture Chongqing Pingshan TaikaiCarburetor Co., Ltd.||For details, please refer to the related announcements|
|||of the company disclosed on The Securities Times,|
||December 5,2018|Hong Kong Commercial Daily and|
|||www.cninfo.com.cn(Announcement|
|||No.:2018-069,2018-071)|

Progress in the implementation of share repurchase
□ Applicable√ Not applicable
Progress in the implementation of the reduction of the repurchased shares by means of centralized bidding□ Applicable√ Not applicable
III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period
□ Applicable√Not applicable
No such cases in the reporting period.
Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019IV．Prediction of Business performance for January- June 2019
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason.
□ Applicable√ Not applicable
V Securities investments
□ Applicable√ Not applicable
No such cases in the Reporting Period
VI. Investment in derivatives
□ Applicable√Not applicable
No such cases in the Reporting Period
VII. The registration form of acceptance of investigation, communication and interview in the report period for future reference
√ Applicable□Not applicable
|||||
|-|-|-|-|
||Way of|||
|Reception time||Types of visitors|Basic index|
||reception|||
||||Q: what is the purpose of acquiring the equity of Construction HANON? A:|
||||Further highlight the development of the main business, broaden the company's|
|January 16,2019|By phone|Other|business scope in the field of auto parts, upgrade and expand the product|
||||technology capabilities, and achieve product and technology structure|
||||adjustment.|
||||Q: What’s the impact of the acquisition of Construction HANON's equity on the|
||||Company? A: In the early stage namely the preparation stage and product|
||||market development stage of HANON, with the scale of production and sales of|
||||the company has not yet formed, so there will be certain losses, which will affect|
|March 26,2019|By phone|Individual||
||||the investment income of the Company. However, in the long run, it will help|
||||the Company to participate in the competition in the middle and high-end|
||||market, avoiding future market competition risks and achieving a healthy|
||||development of the Company.|

VIII. External guarantee get out of line
□ Applicable√Not applicable
No such cases in the reporting period.
Chongqing Jianshe Vehicle System Co., Ltd The First Quarterly Report 2019 IX. Controlling shareholder and its related parties occupying non-business capital of the listed company□ Applicable√Not applicable
No such cases in the reporting period.